Morgan Stanley has expanded its range of UK structured retail products with its first reverse convertible since 2003.
The US bank's FTSE Income Plan pays 7.5% pa over its six-year term. Capital is returned at maturity provided a 50% soft protection barrier is not breached. Otherwise, capital is returned in line with any fall in the index at maturity.
Meanwhile, FTSE Bonus Growth Plan is a six-year plan that matures early in any year when the FTSE100 is at or above its strike paying 9.5% pa (simple) for each elapsed year. It also features 50% soft protection.
"Recent spikes in market uncertainty, particularly wider corporate bond spreads, created the right environment to secure some good potential returns," said executive director Marc Chamberlain. "We expect [these products] to fill quite quickly."
Both products close on 7 July 2010. Minimum investment is £3,000.
These products are available now in Recent Additions (UK).