Singapore investors set to lose all in Pinnacle Notes
Investors in Singapore who bought Pinnacle Performance Notes Series 9 and 10, structured products arranged by Morgan Stanley, are set to lose their entire investment after a mandatory redemption event occurred. The total issue size of the Pinnacle Notes Series 9 and 10 was S$26 million, sold to about 700 retail investors.
The first-to-default notes experienced a reduction in the principal amount of the underlying assets held by the issuer, Pinnacle Performance Limited, which resulted in a principal writedown. Morgan Stanley anticipates that investors will lose their original investment.
The underlying assets, synthetic collaterised debt obligations, were rated AA by S&P but were recently downgraded to CCC. Credit
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