Morgan Stanley plans trigger return optimization notes linked to ETFs

By Angela McDaniels

Tacoma, Wash., April 3 - Morgan Stanley plans to price 0% trigger return optimization securities due April 29, 2016 linked to a basket of exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the iShares MSCI EAFE index fund with a 70% weight and the iShares MSCI Emerging Markets index fund with a 30% weight.

If the basket return is positive, the payout at maturity will be par of $10 plus 1.5 times the basket return, subject to a maximum return of 36% to 42% that will be set at pricing.

If the basket return is zero or negative and the final basket level is greater than or equal to the trigger level - 75% of the initial level - the payout will be par.

If the final basket level is less than the trigger level, investors will be fully exposed to the basket's decline from its initial level.

Morgan Stanley & Co. LLC is the agent, and UBS Financial Services Inc. is acting as dealer.

The notes are expected to price April 25 and settle April 30.

The Cusip number is 61762E133.

© 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.