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Published on 5/25/2017 in the Prospect News Structured Products Daily.

Morgan Stanley plans leveraged CMS curve securities on S&P, Russell

By Susanna Moon

Chicago, May 25 – Morgan Stanley Finance LLC plans to price leveraged CMS curve securities due Feb. 28, 2037 linked to the worse performing of the S&P 500 index and the Russell 2000 index, according to a FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Morgan Stanley.

Interest will be fixed at 9% for the first three years. After that, it will be 20 times the spread of the 30-year ICE swap rate over the two-year ICE swap rate for each day that each index closes at or above its 70% reference level, up to a maximum rate of 9% per year. Interest will be payable monthly.

The payout at maturity will be par unless either index finishes below its 50% barrier level, in which case investors will be fully exposed to the decline of the worse performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will settle on May 31.

The Cusip number is 61766YBJ9.


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