Morgan Stanley preps Japan Hedged Equity fund-linked notes; JPMorgan prices FireEye notes

By Sheri Kasprzak

New York, Sept. 24 – Amid the more interesting structured products offerings Wednesday, Morgan Stanley announced its plans to offer securities linked to the WisdomTree Japan Hedged Equity fund.

The 0% Performance Leveraged Upsized Securities have a 15-month duration and pay par plus double any fund gain up to a maximum return of 14.9%. Investors are subject to any losses, according to an FWP filing with the Securities and Exchange Commission.

Morgan Stanley & Co. LLC is the agent for the deal, which is expected to price this month and settle in October.

The fund offers investors exposure to equity securities in Japan while hedging exposure to fluctuations between the dollar and the yen.

FireEye-linked notes price

Moving to pricing action, JPMorgan Chase & Co. priced $5 million of autocallable contingent interest notes linked to the common stock of FireEye, Inc., said an SEC filing.

The notes are due Oct. 15, 2015.

If FireEye stock closes at or above the trigger price, 61.85% of the initial share price, on a quarterly review date, the issuer will pay a contingent coupon for that quarter at the rate of 17% per year. Otherwise, no coupon will be paid that quarter.

If the shares close at or above the initial price on a quarterly review date, the notes will be called at par plus the contingent coupon.

If the notes are not called and FireEye shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price. The final stock price will be the average of the closing share prices on the five trading days ending on the final review date.

J.P. Morgan Securities LLC is the underwriter.

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