Morgan Stanley (MS) swung to a third-quarter loss of $91 million, or 7 cents a share, from income of about $498 million, or 39 cents a share, a year earlier. Last quarter, the bank earned $1.4 billion in profit. Morgan Stanley is the tenth largest issuer of mortgage-backed securities in the U.S., with $2.1 billion in volume last year. The bank also owns Saxon, a servicer of residential mortgages, though its market share is increasingly dwindling. The investment giant's revenue for the three months ended Sept. 30 fell 15% to $6.78 billion from $8.47 billion a year ago. Morgan Stanley said a "tightening of debt-related credit spreads" hurt third-quarter revenue, while a $229 million writedown on the sale of Revel Entertainment Group hindered earnings. The company said third-quarter income from continuing operations fell to $313 million, 5 cents a share, from $936 million, or 50 cents a share, last year. At Sept. 30, Morgan Stanley had $273 billion of assets under management, which is up 9% from $250 billion a year earlier. The company also said it is lowering its stake in FrontPoint Partners, turning over investment advisory and general partner duties to FrontPoint senior management and portfolio managers. Morgan Stanley will retain a minority stake in the Connecticut-based hedge-fund manager. Additional terms weren't disclosed and companies expect the deal to close before Dec. 31. Write to Jason Philyaw.