Morgan Stanley plans five-year buffered notes on index, fund basket

By Susanna Moon

Chicago, May 21 – Morgan Stanley Finance LLC priced $5 million of 0% buffered participation securities due May 30, 2023 linked to a basket consisting of two indexes and two exchange-traded funds, according to a 424B2 filed with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 40% weight, the Russell 2000 index with a 20% weight, the iShares MSCI EAFE ETF with a 20% weight and the iShares MSCI Emerging Markets ETF with a 20% weight.

The payout at maturity will be par plus any basket gain.

If the basket falls by up to 38%, the payout will be par.

Otherwise, investors will be exposed to any losses beyond the 38% buffer.

The notes are guaranteed by Morgan Stanley.

Morgan Stanley & Co. LLC is the agent.

The notes will price on May 24.

The Cusip number is 61768C2R7.

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