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Subject:  Structured products? Date:  2/11/2013  3:26 AM
Author:  folgore Number:  34771 of 36218

In my last post, I mentioned broker offerings and -- surprise, surprise -- I just ended up getting one from my Muriel Siebert account. The general description of the product is Market Linked Auto-Callable Step-Up Notes Based on the Performance of the EURO STOXX 50® Index. The final maturity date is 20 years from the end of February 2013 and the five-year interest steps are 7.00%, 8.00%, 10.00% and 15.00%. With the Euro stock 50 level at the time of issue as a start point, in order to receive regular monthly payments, the current value of the Euro Stock 50 index must be 80% or more of the start point. When below 80%, no monthly payment. These Notes are callable every five years if the current value of the index exceeds the start point.

The investor is guaranteed to get their principle back, but how many interest payments will be collected can't be predicted. Presumably, Morgan Stanley is betting that Europe is headed down in a big way.

So, does anyone here have experience with structured investments like this?
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