Morgan Stanley swung to a third-quarter loss due to an accounting charge tied to its debt, but posted a sharp rebound in fixed-income trading revenue after some clients resumed doing business with the firm following a costly credit rating downgrade in June.

The securities firm's earnings and revenue, excluding the $2.3bn charge related to an increase in the price of its bonds, beat analysts' estimates. The results boosted Morgan Stanley's stock, which rose 1.2% to $18.72 ahead of Thursday market open. The company's shares have risen 22% year-to-date as of Thursday's close.