Morgan Stanley plans multi-asset allocation notes tied to index basket

By Angela McDaniels

Tacoma, Wash., Feb. 3 - Morgan Stanley plans to price multi-asset allocation market-linked notes due February 2018 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the Barclays Capital U.S. Aggregate Bond index, the Dow Jones - UBS Commodity index and the S&P 500 index. On the determination date, the index with the best return will be given a 55% weight in the basket, the index with the second-best return will be given a 25% weight and the basket with the worst return will be given a 20% weight. The determination date will be shortly before maturity.

The payout at maturity will be par of $10 plus the basket return, subject to a minimum payout of par.

The notes (Cusip: 61760E309) will price and settle in February.

Morgan Stanley & Co. Inc. is the agent.

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