Morgan Stanley will do better in fixed-income and commodities trading this year after posting the biggest drop in revenue among U.S. rivals in 2013, Chief Executive Officer James Gorman said.

“For all the heat that’s being put on fixed-income and commodities, they’re going to have a better year in 2014,” Gorman said today at the World Economic Forum in Davos, Switzerland. “Last year was tough, but that’s not the end of the story.”

Morgan Stanley generated $4.2 billion from trading bonds, currencies and commodities in 2013, a 25 percent drop from a year earlier and less than half any of its biggest U.S. competitors. Gorman, 55, has said he’s concerned with the returns of the business, not the size.

“We’re not ever going to be one of the mega rates and foreign-exchange businesses like the big global commercial banks are,” Gorman said. “That doesn’t mean we can’t have a strong fixed-income and commodities business.”