US Wrap: Morgan Stanley offers up airline exposure

Morgan Stanley launched two reverse convertibles in the US market yesterday, one linked to the shares of The Boeing Company. Airline stock has become an increasingly prevalent investment theme in 2009, after investment expert Jim Rogers called the bottom of the sector and launched an index linked to the industry's stocks in December. The note lasts six months, paying a monthly coupon of between 13-17% annualised, and has a stock barrier of 75%.

The issuer also introduced a reverse convertible play on the S&P 500, linking to its corresponding Financial Select Sector SPDR fund, which invests in 81 financial services firms included in the index. Natixis launched its own reverse convertible, opting as usual for the external credit of Eksportfinans and linking to energy company Sunoco.

Issuer

Product type

Underlying

Pricing date

Maturity date

Morgan Stanley

Reverse Convertible

Financial Select Sector

Apr 09 2009

Oct 15 2009

Morgan Stanley

Reverse