Morgan Stanley plans market-linked barrier notes tied to hybrid basket

By Marisa Wong

Madison, Wis., Jan. 25 - Morgan Stanley plans to price 0% market-linked barrier notes due January 2015 linked to a hybrid basket, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the iShares MSCI Emerging Markets index fund with a 30% weight, the S&P 500 index with a 25% weight, the Russell 2000 index with a 15% weight and the Japanese yen, the euro and the Australian dollar, each with a 10% weight.

If the basket appreciates by more than the barrier level of 40% to 50% on any day during the life of the notes, the payout at maturity will be par of $10 plus 6%.

Otherwise, the payout will be par plus the basket return, subject to a maximum payout of $14 to $15 per note. Investors will receive at least par.

The exact barrier level and cap will be set at pricing.

The notes (Cusip: 61759G273) will price in January.

Morgan Stanley & Co. Inc. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.