Morgan Stanley analyst Michael D Zezas......>

US VIEW: Morgan Stanley analyst Michael D Zezas said on US House/Senate tax

bills that "time and moderation are needed to 1) resolve differences; 2) fit the

Byrd rule. Credit risks come into focus."

- He adds there are "3 keys to timing & success: SALT, fiscal hawk reaction to

dynamic scores, shutdown showdown."

- He noted Monday, the "Chairman of the Senate Finance Committee, Orrin Hatch,

released the Senate's draft tax bill. In the House, the Ways and Means Committee

voted their tax bill out of committee and it will head to the House floor next

week. With the House and Senate bills far apart on some details," the MS analyst

noted that "the Senate is constrained by reconciliation rules, so they are in

the driver's seat. However, their current draft is not compliant with the Byrd

rule, so it is likely to be further revised, consistent with our base case of

moderate stimulus."