Morgan Stanley plans contingent income autocallables on 10-year CMS

By Wendy Van Sickle

Columbus, Ohio, Dec. 8 – Morgan Stanley plans to price contingent income autocallable securities due Dec. 23, 2017 linked to the 10-year Constant Maturity Swap rate, according to an FWP filed with the Securities and Exchange Commission.

If the 10-year CMS rate is at or above the reference rate strike, 80% of its initial level, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 5%.

After six months, the notes will be called at par plus the contingent coupon if the 10-year CMS rate is at or above the initial level on any monthly determination dates

If the final 10-year CMS rate is greater than or equal to the reference rate strike, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be fully exposed to the decline.

Morgan Stanley & Co. LLC is the agent, and Morgan Stanley Wealth Management is a dealer.

The notes will price in December and settle on Dec. 23.

The Cusip number is 61760QJE5.

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