Morgan Stanley plans buffered participation notes linked to ETFs

By Angela McDaniels

Tacoma, Wash., May 20 – Morgan Stanley plans to price 0% buffered participation securities due Dec. 2, 2019 linked to a basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket components are the SPDR S&P 500 ETF Trust (35% weight), the iShares Russell 2000 ETF (10% weight), the iShares MSCI EAFE ETF (10% weight), the Vanguard REIT ETF (10% weight), the SPDR S&P MidCap 400 ETF (5% weight), the PowerShares QQQ Trust, Series 1 (5% weight), the Materials Select Sector SPDR Fund (5% weight), the Utilities Select Sector SPDR Fund (5% weight), the PowerShares DB Commodity Index Tracking Fund (5% weight), the Market Vectors Gold Miners ETF (5% weight) and the iShares MSCI Emerging Markets ETF (5% weight).

If the basket return is positive, the payout at maturity will be par plus the basket return. Investors will receive par if the basket return is negative but not less than negative 20% and will lose 1% for every 1% that the basket declines beyond 20%.

Morgan Stanley & Co. LLC is the agent.

The notes will price May 26 and settle May 29.

The Cusip number is 61761JZJ1.

© 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.