Brokerage Oppenheimer downgraded major U.S. investment banks including Goldman Sachs and Morgan Stanley in an unusual move on Tuesday, saying current valuations leave limited room for further gains despite a favorable operating environment. Instead, it recommended investors sell large-cap investment banks and buy alternative asset managers, a group caught in a sharp selloff that many analysts view as overdone amid concerns about private-credit exposure.
* Shares of Morgan Stanley were down 1.4% in early trade, while Goldman Sachs fell about 1% after Oppenheimer downgraded both banks to "underperform" from "perform."
