Morgan Stanley plans notes with partial protection tied to currencies

By Angela McDaniels

Tacoma, Wash., March 7 - Morgan Stanley plans to price 0% currency-linked partial principal at risk securities due March 2014 linked to the performance of a basket of currencies relative to the U.S. dollar, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the Australian dollar, the Brazilian real, the Canadian dollar, the Russian ruble and the South African rand.

If the basket appreciates relative to the U.S. dollar, the payout at maturity will be par plus 110% of the basket return.

Investors will be exposed to the decline if the basket depreciates relative to the U.S. dollar, subject to a minimum payout of $980 per $1,000 principal amount of notes.

The notes (Cusip: 617482SK1) will price and settle in March.

Morgan Stanley & Co. LLC is the agent.

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