FVC review: Morgan Stanley’s FTSE 100 range accrual
Future Value Consultants runs the rule over a capital-at-risk range accrual from Morgan Stanley that tracks the FTSE 100. The product, which struck last month and matures in January 2021, will pay a quarterly coupon if the level of the index stays between 5,000 and 8,000
Morgan Stanley has issued a six-year product linked solely to the performance of the FTSE 100 index. The product pays a potential income of up to 1.6875% each quarter, depending on the number of times that the value of the index (observed weekly) closes between 5,000 and 8,000 points.
The income payment received will be reduced depending on how many weeks the FTSE 100 index closes outside of the range. For example, if the closing levels of the index are outside the range on eight observation
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