Exchange Traded Notes (ETNs) are senior, unsecured debt obligations of Morgan Stanley and are intended to provide access to various indices.
The Morgan Stanley Cushing MLP High Income Index ETN tracks the performance of the Cushing MLP High Income Index.
Morgan Stanley head of Equity Derivatives sales for the Americas Nikki Tippins said the MLP structure gives investors access to companies that operate in a market that has historically had high barriers to entry and growing distributions.
"We believe this ETN is differentiating in this space by referencing an index that both provides a diversified exposure to MLP issuers and whose constituents have had among the highest current yields. We anticipate launching more ETN products throughout the year," Tippins said.
According to Morgan Stanley, ETN quarterly coupon payments, if any, are linked to the cash distributions paid on the MLPs in the Index, less accrued tracking fees.
The Morgan Stanley Cushing MLP High Income Index ETNs have been approved for listing on NYSE Arca under the symbol ‘MLPY’.
The Cushing MLP High Income Index is a criteria-weighted index tracking the performance of 30 Master Limited Partnerships (MLPs) that hold energy infrastructure and related shipping assets in North America.
The Index is a proprietary index developed by Cushing MLP Asset Management, as Index sponsor, and maintained and calculated by Standard & Poor’s Financial Services, a subsidiary of the McGraw-Hill Companies (S&P), as index calculation agent.
