Morgan Stanley has made a major move in the leveraged finance market. It was the lead underwriter on more than $10 billion in junk issues this year. That's more than double its same-period performance a year ago. The boost reflects CEO John Mack's desire to become more of a risk taker. The move has certainly boost profits; the third quarter is a great example. But there are some risks involved. Most investment banks commit to lend money for a buyout themselves, and then sell that debt to investors. There is a chance that the bank could be left holding loans worth a lot less. Morgan Stanley had $18.4 billion in commitments at the end of the third quarter, up from $8.2 billion three months earlier. That's less than Goldman Sachs, which had about $25 million in commitments.

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