Morgan Stanley plans enhanced buffered jump securities tied to basket

By Toni Weeks

San Diego, Jan. 17 - Morgan Stanley plans to price 0% enhanced buffered jump securities due January 2017 linked to a basket of indexes and exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the S&P 500 index with a 40% weight, the Russell 2000 index with a 20% weight, the iShares MSCI EAFE index fund with a 20% weight, the iShares MSCI Emerging Markets index fund with a 10% weight and the iShares FTSE China 25 index fund with a 10% weight.

If the final basket level is greater than the downside threshold value, the payout at maturity will be par of $10 plus the greater of the basket return and the fixed percentage, which is expected to be 14.38% to 17.38% and will be set at pricing. The downside threshold value will be 85% of the initial basket level.

If the final basket level is less than or equal to the downside threshold value, investors will lose 1% for every 1% basket decline beyond the 15% buffer.

The notes are expected to price and settle in January.

Morgan Stanley & Co. LLC is the agent.

The Cusip number is 61761M359.

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