Morgan Stanley plans leveraged CMS curve securities linked to indexes

By Toni Weeks

San Luis Obispo, Calif., June 4 – Morgan Stanley plans to price leveraged CMS curve securities due June 30, 2030 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be fixed at 10% for the first year. After that, it will equal 10 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate for each day that each index closes at or above its index reference level, 50% of its initial level. The coupon is subject to a maximum rate of 10% and a minimum rate of 0%. Interest will be payable monthly.

If each index finishes at or above its barrier level, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worst-performing index.

Morgan Stanley & Co. LLC is the agent.

The notes will settle June 30.

The Cusip number is 61760QGJ7.

© 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.