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Published on 1/27/2016 in the Prospect News Structured Products Daily.

Morgan Stanley plans leveraged buffered notes due 2018 on index basket

By Susanna Moon

Chicago, Jan. 27 – Morgan Stanley plans to price 0% leveraged buffered notes linked to a basket of indexes, according to a 424B2 filed with the Securities and Exchange Commission.

The maturity date will be sometime between February 2018 and May 2018.

The basket consists of the Euro Stoxx 50 index with a 37% weight, the FTSE 100 index with a 23% weight, the Topix index with a 23% weight, the Swiss Market index with a 9% weight and the S&P/ASX 200 index with an 8% weight.

The payout at maturity will be par plus 1.5 times any basket gain, up to a maximum return of $1,271.50 to $1,318.00 per $1,000 principal amount.

Investors will receive par if the basket falls by up to 10% and will lose 1.1111% for every 1% decline beyond 10%.

Morgan Stanley & Co. LLC is the agent.

The notes will price in January and settle in February.

The Cusip number is 61761JV55.


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