Morgan Stanley plans leveraged capped notes linked to ETF basket

By Wendy Van Sickle

Columbus, Ohio, Nov. 2 – Morgan Stanley plans to price 0% leveraged upside capped and fixed percentage buffered downside securities due June 3, 2020 linked to an exchange-traded fund basket, according to an FWP filed with the Securities and Exchange Commission.

The basket components are the SPDR S&P 500 ETF Trust with a 50% weight, iShares Russell 2000 ETF with a 15% weight, iShares MSCI EAFE ETF with a 15% weight, iShares MSCI Emerging Markets ETF with a 10% weight, PowerShares DB Commodity Index Tracking Fund with a 5% weight and Vanguard REIT ETF with a 5% weight.

If the basket return is positive, the payout at maturity will be par plus 1.5 times the basket return, subject to a maximum payout of $1,450 to $1,500 per $1,000 principal amount of notes. The exact cap will be set at pricing.

Investors will receive par if the basket declines by up to 15% and will lose 1% for every 1% decline beyond the 15% buffer.

Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the agents.

The notes will price on Nov. 30 and settle on Dec. 3.

The Cusip number is 61761JN88.

© 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.