[FWP] Morgan Stanley Free Writing Prospectus
Royal Bank of Canada (RY) has filed a preliminary 424(b)(2) pricing supplement for three separate Capped Enhanced Return Buffer Notes maturing 4 August 2027. Each note is linked to a single equity index—Nasdaq-100 (NDX), Russell 2000 (RTY) or S&P 500 (SPX)—and will be issued in $1,000 denominations on 5 August 2025.
Upside mechanics. If the Final Underlier Value exceeds the Initial Underlier Value, investors receive 150 % of the index return, capped at a Maximum Return set on the trade date (indicative ranges: NDX 24.5-26.5 %, RTY 28-30 %, SPX 20-22 %).
Downside mechanics. A 10 % buffer protects principal as long as the index does not lose more than 10 %. Below that threshold, principal is reduced point-for-point beyond the 10 % loss. Example: a 50 % index decline produces a 40 % note loss ($600 redemption).
Key terms.
- Participation Rate: 150 % (subject to cap)
- Buffer Value: 90 % of initial index level
- Trade Date: 31 Jul 2025 | Valuation Date: 30 Jul 2027
- Maturity: 4 Aug 2027 (2-year term)
- Price to public: 100 % of face; underwriting discount 1 % (dealer concessions up to $10 per $1,000)
- Initial estimated value: $928-$979 (i.e., 92.8-97.9 % of face), below issue price
Risk highlights. The notes pay no coupons, have limited upside due to the cap, and expose investors to 1-for-1 downside beyond the 10 % buffer. They are senior unsecured obligations of Royal Bank of Canada—payments depend on the bank’s credit. The securities are intended to be held to maturity; no exchange listing is planned and secondary liquidity is expected to be thin, with bid-ask spreads and dealer mark-downs likely. The issuer’s initial estimated value—calculated using RBC’s internal funding rate—will be lower than the offering price, creating an immediate economic cost to the investor. U.S. tax treatment is uncertain; RBC expects the notes to be treated as prepaid financial contracts.
Investors seeking enhanced, but capped, equity exposure with partial downside protection may find the structure useful; however, the product’s risk/return trade-off, illiquidity, and issuer credit considerations must be carefully weighed.
Royal Bank of Canada (RY) ha presentato un supplemento preliminare 424(b)(2) per tre distinti Capped Enhanced Return Buffer Notes con scadenza il 4 agosto 2027. Ogni nota è collegata a un singolo indice azionario—Nasdaq-100 (NDX), Russell 2000 (RTY) o S&P 500 (SPX)—e sarà emessa in tagli da $1.000 il 5 agosto 2025.
Meccanismo di rialzo. Se il Valore Finale dell’Indice supera il Valore Iniziale, gli investitori ricevono il 150% del rendimento dell’indice, limitato a un Rendimento Massimo stabilito alla data di negoziazione (range indicativi: NDX 24,5-26,5%, RTY 28-30%, SPX 20-22%).
Meccanismo di ribasso. Un buffer del 10% protegge il capitale fintanto che l’indice non perde più del 10%. Oltre questa soglia, il capitale si riduce punto per punto oltre la perdita del 10%. Esempio: un calo del 50% dell’indice produce una perdita del 40% sulla nota (rimborso di $600).
Termini chiave.
- Tasso di partecipazione: 150% (soggetto a cap)
- Valore del buffer: 90% del livello iniziale dell’indice
- Data di negoziazione: 31 lug 2025 | Data di valutazione: 30 lug 2027
- Scadenza: 4 ago 2027 (durata 2 anni)
- Prezzo al pubblico: 100% del valore nominale; sconto di sottoscrizione 1% (concessioni dealer fino a $10 per $1.000)
- Valore stimato iniziale: $928-$979 (cioè 92,8-97,9% del nominale), inferiore al prezzo di emissione
Rischi principali. Le note non pagano cedole, hanno un potenziale di rialzo limitato a causa del cap, ed espongono gli investitori a una perdita 1 a 1 oltre il buffer del 10%. Sono obbligazioni senior non garantite di Royal Bank of Canada, quindi i pagamenti dipendono dalla solidità creditizia della banca. Le obbligazioni sono pensate per essere detenute fino a scadenza; non è prevista quotazione in borsa e la liquidità secondaria sarà limitata, con spread denaro-lettera e sconti da parte dei dealer probabili. Il valore stimato iniziale, calcolato usando il tasso interno di finanziamento di RBC, sarà inferiore al prezzo di offerta, generando un costo economico immediato per l’investitore. Il trattamento fiscale negli Stati Uniti è incerto; RBC prevede che le note saranno considerate contratti finanziari prepagati.
Gli investitori che cercano un’esposizione azionaria migliorata ma limitata, con protezione parziale dal ribasso, potrebbero trovare questa struttura interessante; tuttavia, è necessario valutare attentamente il rapporto rischio/rendimento, la scarsa liquidità e la solidità creditizia dell’emittente.
Royal Bank of Canada (RY) ha presentado un suplemento preliminar 424(b)(2) para tres Notas Capped Enhanced Return Buffer separadas que vencen el 4 de agosto de 2027. Cada nota está vinculada a un solo índice bursátil—Nasdaq-100 (NDX), Russell 2000 (RTY) o S&P 500 (SPX)—y se emitirán en denominaciones de $1,000 el 5 de agosto de 2025.
Mecánica al alza. Si el Valor Final del Subyacente supera el Valor Inicial, los inversores reciben el 150% del rendimiento del índice, con un límite establecido en la fecha de la operación (rangos indicativos: NDX 24.5-26.5%, RTY 28-30%, SPX 20-22%).
Mecánica a la baja. Un buffer del 10% protege el capital mientras el índice no pierda más del 10%. Por debajo de ese umbral, el capital se reduce punto por punto más allá de la pérdida del 10%. Ejemplo: una caída del 50% en el índice produce una pérdida del 40% en la nota (reembolso de $600).
Términos clave.
- Tasa de participación: 150% (sujeto a límite)
- Valor del buffer: 90% del nivel inicial del índice
- Fecha de operación: 31 jul 2025 | Fecha de valoración: 30 jul 2027
- Vencimiento: 4 ago 2027 (plazo de 2 años)
- Precio al público: 100% del valor nominal; descuento de suscripción 1% (concesiones a distribuidores hasta $10 por $1,000)
- Valor estimado inicial: $928-$979 (es decir, 92.8-97.9% del nominal), por debajo del precio de emisión
Aspectos de riesgo. Las notas no pagan cupones, tienen un potencial limitado de subida debido al límite, y exponen a los inversores a pérdidas 1 a 1 más allá del buffer del 10%. Son obligaciones senior no garantizadas de Royal Bank of Canada, por lo que los pagos dependen del crédito del banco. Los valores están diseñados para mantenerse hasta el vencimiento; no está prevista su cotización en bolsa y se espera que la liquidez secundaria sea escasa, con diferenciales de compra-venta y descuentos por parte de los distribuidores probables. El valor estimado inicial, calculado usando la tasa interna de financiación de RBC, será inferior al precio de oferta, generando un costo económico inmediato para el inversor. El tratamiento fiscal en EE.UU. es incierto; RBC espera que las notas se consideren contratos financieros prepagados.
Los inversores que buscan una exposición accionaria mejorada pero limitada, con protección parcial a la baja, pueden encontrar útil esta estructura; sin embargo, deben evaluar cuidadosamente la relación riesgo/retorno, la iliquidez y la consideración crediticia del emisor.
로열 뱅크 오브 캐나다(RY)는 2027년 8월 4일 만기되는 세 가지 별도의 Capped Enhanced Return Buffer Notes에 대한 예비 424(b)(2) 가격 보충서를 제출했습니다. 각 노트는 단일 주가지수—나스닥-100(NDX), 러셀 2000(RTY), 또는 S&P 500(SPX)—에 연결되며 2025년 8월 5일 $1,000 단위로 발행됩니다.
상승 메커니즘. 최종 기초자산 가치가 초기 기초자산 가치를 초과하면 투자자는 지수 수익률의 150%를 받으며, 거래일에 설정된 최대 수익률(예상 범위: NDX 24.5-26.5%, RTY 28-30%, SPX 20-22%)로 제한됩니다.
하락 메커니즘. 10% 버퍼가 지수가 10% 이상 하락하지 않는 한 원금을 보호합니다. 이 임계값 아래에서는 10% 손실을 초과하는 부분에 대해 1대1로 원금이 감소합니다. 예: 지수가 50% 하락하면 노트 손실은 40%가 되어 $600를 상환받습니다.
주요 조건.
- 참여율: 150% (상한 적용)
- 버퍼 값: 초기 지수 수준의 90%
- 거래일: 2025년 7월 31일 | 평가일: 2027년 7월 30일
- 만기: 2027년 8월 4일 (2년 만기)
- 공모가: 액면가의 100%; 인수 할인 1% (딜러 수수료 최대 $10/ $1,000)
- 초기 추정 가치: $928-$979 (즉, 액면가의 92.8-97.9%), 발행가 이하
위험 요약. 이 노트는 쿠폰을 지급하지 않으며, 상한으로 인해 상승 여력이 제한되고, 10% 버퍼를 초과하는 하락에 대해 투자자는 1대1 손실에 노출됩니다. 로열 뱅크 오브 캐나다의 선순위 무담보 채무로서, 지급은 은행 신용도에 달려 있습니다. 증권은 만기까지 보유하는 것을 목적으로 하며, 거래소 상장은 계획되어 있지 않고 2차 유동성은 제한적일 것으로 예상되어 매도-매수 스프레드 및 딜러 마크다운이 발생할 수 있습니다. 발행자의 초기 추정 가치는 RBC 내부 자금 조달 금리를 사용해 계산되며, 공모가보다 낮아 투자자에게 즉각적인 경제적 비용을 발생시킵니다. 미국 세금 처리는 불확실하며, RBC는 이 노트가 선불 금융 계약으로 취급될 것으로 예상합니다.
향상되었지만 상한이 있는 주식 노출과 부분적 하락 보호를 원하는 투자자에게 이 구조가 유용할 수 있으나, 상품의 위험/수익 균형, 유동성 부족 및 발행자 신용 리스크를 신중히 고려해야 합니다.
Royal Bank of Canada (RY) a déposé un supplément de tarification préliminaire 424(b)(2) pour trois Notes Capped Enhanced Return Buffer distinctes arrivant à échéance le 4 août 2027. Chaque note est liée à un seul indice boursier—Nasdaq-100 (NDX), Russell 2000 (RTY) ou S&P 500 (SPX)—et sera émise en coupures de 1 000 $ le 5 août 2025.
Mécanique à la hausse. Si la valeur finale de l’actif sous-jacent dépasse la valeur initiale, les investisseurs reçoivent 150 % du rendement de l’indice, plafonné à un rendement maximal fixé à la date de transaction (fourchettes indicatives : NDX 24,5-26,5 %, RTY 28-30 %, SPX 20-22 %).
Mécanique à la baisse. Un buffer de 10 % protège le capital tant que l’indice ne perd pas plus de 10 %. En dessous de ce seuil, le capital est réduit point par point au-delà de la perte de 10 %. Exemple : une baisse de 50 % de l’indice entraîne une perte de 40 % sur la note (rachat à 600 $).
Termes clés.
- Taux de participation : 150 % (sous réserve de plafonnement)
- Valeur du buffer : 90 % du niveau initial de l’indice
- Date de transaction : 31 juil. 2025 | Date d’évaluation : 30 juil. 2027
- Échéance : 4 août 2027 (durée de 2 ans)
- Prix public : 100 % de la valeur nominale ; escompte de souscription de 1 % (concessions aux distributeurs jusqu’à 10 $ par 1 000 $)
- Valeur estimée initiale : 928 $-979 $ (soit 92,8-97,9 % de la valeur nominale), inférieure au prix d’émission
Points clés sur les risques. Les notes ne versent pas de coupons, ont un potentiel de hausse limité en raison du plafond, et exposent les investisseurs à une perte au-delà du buffer de 10 % à raison de 1 pour 1. Ce sont des obligations senior non garanties de Royal Bank of Canada – les paiements dépendent de la solvabilité de la banque. Les titres sont conçus pour être détenus jusqu’à l’échéance ; aucune cotation en bourse n’est prévue et la liquidité secondaire devrait être faible, avec des écarts acheteur-vendeur et des décotes de distributeurs probables. La valeur estimée initiale, calculée en utilisant le taux de financement interne de RBC, sera inférieure au prix d’offre, ce qui engendre un coût économique immédiat pour l’investisseur. Le traitement fiscal américain est incertain ; RBC s’attend à ce que les notes soient considérées comme des contrats financiers prépayés.
Les investisseurs recherchant une exposition actions améliorée mais plafonnée avec une protection partielle à la baisse pourraient trouver cette structure utile ; toutefois, le compromis risque/rendement, l’illiquidité et la solvabilité de l’émetteur doivent être soigneusement évalués.
Die Royal Bank of Canada (RY) hat einen vorläufigen 424(b)(2) Preiszusatz für drei separate Capped Enhanced Return Buffer Notes mit Fälligkeit am 4. August 2027 eingereicht. Jede Note ist an einen einzelnen Aktienindex gekoppelt—Nasdaq-100 (NDX), Russell 2000 (RTY) oder S&P 500 (SPX)—und wird am 5. August 2025 in Stückelungen zu je 1.000 $ ausgegeben.
Aufwärtsmechanik. Überschreitet der Endwert des Basiswerts den Anfangswert, erhalten Anleger 150 % der Indexrendite, begrenzt durch eine am Handelstag festgelegte Höchstrendite (indikative Spannen: NDX 24,5-26,5 %, RTY 28-30 %, SPX 20-22 %).
Abwärtsmechanik. Ein 10 % Pufferschutz sichert das Kapital, solange der Index nicht mehr als 10 % verliert. Unterhalb dieser Schwelle wird das Kapital Punkt für Punkt um den Betrag des Verlusts über 10 % hinaus reduziert. Beispiel: Ein Indexrückgang von 50 % führt zu einem Verlust von 40 % auf die Note (Rückzahlung von 600 $).
Wesentliche Bedingungen.
- Partizipationsrate: 150 % (unterliegt der Obergrenze)
- Pufferwert: 90 % des Anfangsindexniveaus
- Handelstag: 31. Juli 2025 | Bewertungstag: 30. Juli 2027
- Fälligkeit: 4. August 2027 (2 Jahre Laufzeit)
- Öffentlicher Preis: 100 % des Nennwerts; Underwriting-Rabatt 1 % (Händlerprovisionen bis zu 10 $ pro 1.000 $)
- Geschätzter Anfangswert: 928 $–979 $ (d.h. 92,8–97,9 % des Nennwerts), unter dem Ausgabepreis
Risikohighlights. Die Notes zahlen keine Kupons, haben aufgrund der Obergrenze ein begrenztes Aufwärtspotenzial und setzen Anleger einem 1:1-Verlust über den 10 % Pufferschutz hinaus aus. Es handelt sich um unbesicherte Seniorverbindlichkeiten der Royal Bank of Canada – Zahlungen hängen von der Bonität der Bank ab. Die Wertpapiere sind für die Haltung bis zur Fälligkeit vorgesehen; eine Börsennotierung ist nicht geplant und die Sekundärliquidität wird voraussichtlich gering sein, mit wahrscheinlichen Geld-Brief-Spannen und Händlerabschlägen. Der geschätzte Anfangswert, berechnet unter Verwendung des internen Finanzierungssatzes von RBC, liegt unter dem Ausgabepreis, was für den Anleger sofortige wirtschaftliche Kosten bedeutet. Die US-Steuerbehandlung ist unsicher; RBC erwartet, dass die Notes als vorausbezahlte Finanzkontrakte behandelt werden.
Investoren, die eine verbesserte, aber begrenzte Aktienexponierung mit teilweisem Abwärtsschutz suchen, könnten die Struktur nützlich finden; jedoch sollten Risiko-Rendite-Verhältnis, Illiquidität und Kreditwürdigkeit des Emittenten sorgfältig abgewogen werden.
- 150 % participation on upside provides leveraged exposure relative to direct index investment—beneficial if index gains are modest.
- 10 % downside buffer offers limited principal protection against moderate market declines.
- Short 2-year tenor reduces exposure to prolonged adverse market cycles compared with longer-dated notes.
- Maximum return potential up to 30 % on RTY tranche may appeal to investors with moderate bullish outlook.
- Upside capped at 20-30 %—investors forfeit gains from larger rallies in the indices.
- No coupon payments; total return realized only at maturity, resulting in negative carry versus income-producing alternatives.
- Principal at risk beyond 10 % buffer; significant market downturns can cause substantial capital loss.
- Credit risk of Royal Bank of Canada—note holders rank as unsecured creditors.
- Illiquidity: no exchange listing, dealer market-making discretionary; exit likely at steep discounts.
- Initial estimated value 2-7 % below issue price embeds immediate negative yield for investors.
- Complex tax treatment with uncertain IRS stance on prepaid forward contracts.
Insights
TL;DR: 150 % leveraged upside with 10 % buffer, but capped gains, credit risk, illiquidity.
These notes offer moderate leverage to three widely followed U.S. equity indices. The 10 % downside buffer provides limited protection, while the hard caps (up to ~30 %) truncate returns even in robust equity markets. Because the payoff profile is asymmetric, investors effectively fund the buffer by relinquishing unlimited upside. Economic value is further reduced by a 1 % underwriting spread and an initial estimated value roughly 2-7 % below par. Secondary trading will rely on RBC; exit prices are expected to be materially below theoretical value, particularly in stressed markets. From RBC’s standpoint the structure is inexpensive funding; from an investor standpoint, risk-adjusted attractiveness hinges on one’s outlook over the two-year horizon and willingness to bear unsecured bank credit exposure.
TL;DR: Limited upside, point-for-point loss beyond 10 %, unsecured RBC credit exposure.
Principal is not fully protected: a 25 % index drop equates to a 15 % capital loss. The participation rate incents equity-bullish investors, yet the cap suppresses returns during strong rallies—historically frequent for NDX and SPX. Credit-spread widening or rating downgrades of RBC could compress secondary prices irrespective of index performance. The change-in-law acceleration clause on the NDX tranche introduces additional tail risk. Tax treatment remains unsettled, potentially affecting after-tax returns for U.S. holders. Overall, the risk profile is typical of retail structured notes: asymmetric payoff favoring the issuer unless the index ends modestly positive.
Royal Bank of Canada (RY) ha presentato un supplemento preliminare 424(b)(2) per tre distinti Capped Enhanced Return Buffer Notes con scadenza il 4 agosto 2027. Ogni nota è collegata a un singolo indice azionario—Nasdaq-100 (NDX), Russell 2000 (RTY) o S&P 500 (SPX)—e sarà emessa in tagli da $1.000 il 5 agosto 2025.
Meccanismo di rialzo. Se il Valore Finale dell’Indice supera il Valore Iniziale, gli investitori ricevono il 150% del rendimento dell’indice, limitato a un Rendimento Massimo stabilito alla data di negoziazione (range indicativi: NDX 24,5-26,5%, RTY 28-30%, SPX 20-22%).
Meccanismo di ribasso. Un buffer del 10% protegge il capitale fintanto che l’indice non perde più del 10%. Oltre questa soglia, il capitale si riduce punto per punto oltre la perdita del 10%. Esempio: un calo del 50% dell’indice produce una perdita del 40% sulla nota (rimborso di $600).
Termini chiave.
- Tasso di partecipazione: 150% (soggetto a cap)
- Valore del buffer: 90% del livello iniziale dell’indice
- Data di negoziazione: 31 lug 2025 | Data di valutazione: 30 lug 2027
- Scadenza: 4 ago 2027 (durata 2 anni)
- Prezzo al pubblico: 100% del valore nominale; sconto di sottoscrizione 1% (concessioni dealer fino a $10 per $1.000)
- Valore stimato iniziale: $928-$979 (cioè 92,8-97,9% del nominale), inferiore al prezzo di emissione
Rischi principali. Le note non pagano cedole, hanno un potenziale di rialzo limitato a causa del cap, ed espongono gli investitori a una perdita 1 a 1 oltre il buffer del 10%. Sono obbligazioni senior non garantite di Royal Bank of Canada, quindi i pagamenti dipendono dalla solidità creditizia della banca. Le obbligazioni sono pensate per essere detenute fino a scadenza; non è prevista quotazione in borsa e la liquidità secondaria sarà limitata, con spread denaro-lettera e sconti da parte dei dealer probabili. Il valore stimato iniziale, calcolato usando il tasso interno di finanziamento di RBC, sarà inferiore al prezzo di offerta, generando un costo economico immediato per l’investitore. Il trattamento fiscale negli Stati Uniti è incerto; RBC prevede che le note saranno considerate contratti finanziari prepagati.
Gli investitori che cercano un’esposizione azionaria migliorata ma limitata, con protezione parziale dal ribasso, potrebbero trovare questa struttura interessante; tuttavia, è necessario valutare attentamente il rapporto rischio/rendimento, la scarsa liquidità e la solidità creditizia dell’emittente.
Royal Bank of Canada (RY) ha presentado un suplemento preliminar 424(b)(2) para tres Notas Capped Enhanced Return Buffer separadas que vencen el 4 de agosto de 2027. Cada nota está vinculada a un solo índice bursátil—Nasdaq-100 (NDX), Russell 2000 (RTY) o S&P 500 (SPX)—y se emitirán en denominaciones de $1,000 el 5 de agosto de 2025.
Mecánica al alza. Si el Valor Final del Subyacente supera el Valor Inicial, los inversores reciben el 150% del rendimiento del índice, con un límite establecido en la fecha de la operación (rangos indicativos: NDX 24.5-26.5%, RTY 28-30%, SPX 20-22%).
Mecánica a la baja. Un buffer del 10% protege el capital mientras el índice no pierda más del 10%. Por debajo de ese umbral, el capital se reduce punto por punto más allá de la pérdida del 10%. Ejemplo: una caída del 50% en el índice produce una pérdida del 40% en la nota (reembolso de $600).
Términos clave.
- Tasa de participación: 150% (sujeto a límite)
- Valor del buffer: 90% del nivel inicial del índice
- Fecha de operación: 31 jul 2025 | Fecha de valoración: 30 jul 2027
- Vencimiento: 4 ago 2027 (plazo de 2 años)
- Precio al público: 100% del valor nominal; descuento de suscripción 1% (concesiones a distribuidores hasta $10 por $1,000)
- Valor estimado inicial: $928-$979 (es decir, 92.8-97.9% del nominal), por debajo del precio de emisión
Aspectos de riesgo. Las notas no pagan cupones, tienen un potencial limitado de subida debido al límite, y exponen a los inversores a pérdidas 1 a 1 más allá del buffer del 10%. Son obligaciones senior no garantizadas de Royal Bank of Canada, por lo que los pagos dependen del crédito del banco. Los valores están diseñados para mantenerse hasta el vencimiento; no está prevista su cotización en bolsa y se espera que la liquidez secundaria sea escasa, con diferenciales de compra-venta y descuentos por parte de los distribuidores probables. El valor estimado inicial, calculado usando la tasa interna de financiación de RBC, será inferior al precio de oferta, generando un costo económico inmediato para el inversor. El tratamiento fiscal en EE.UU. es incierto; RBC espera que las notas se consideren contratos financieros prepagados.
Los inversores que buscan una exposición accionaria mejorada pero limitada, con protección parcial a la baja, pueden encontrar útil esta estructura; sin embargo, deben evaluar cuidadosamente la relación riesgo/retorno, la iliquidez y la consideración crediticia del emisor.
로열 뱅크 오브 캐나다(RY)는 2027년 8월 4일 만기되는 세 가지 별도의 Capped Enhanced Return Buffer Notes에 대한 예비 424(b)(2) 가격 보충서를 제출했습니다. 각 노트는 단일 주가지수—나스닥-100(NDX), 러셀 2000(RTY), 또는 S&P 500(SPX)—에 연결되며 2025년 8월 5일 $1,000 단위로 발행됩니다.
상승 메커니즘. 최종 기초자산 가치가 초기 기초자산 가치를 초과하면 투자자는 지수 수익률의 150%를 받으며, 거래일에 설정된 최대 수익률(예상 범위: NDX 24.5-26.5%, RTY 28-30%, SPX 20-22%)로 제한됩니다.
하락 메커니즘. 10% 버퍼가 지수가 10% 이상 하락하지 않는 한 원금을 보호합니다. 이 임계값 아래에서는 10% 손실을 초과하는 부분에 대해 1대1로 원금이 감소합니다. 예: 지수가 50% 하락하면 노트 손실은 40%가 되어 $600를 상환받습니다.
주요 조건.
- 참여율: 150% (상한 적용)
- 버퍼 값: 초기 지수 수준의 90%
- 거래일: 2025년 7월 31일 | 평가일: 2027년 7월 30일
- 만기: 2027년 8월 4일 (2년 만기)
- 공모가: 액면가의 100%; 인수 할인 1% (딜러 수수료 최대 $10/ $1,000)
- 초기 추정 가치: $928-$979 (즉, 액면가의 92.8-97.9%), 발행가 이하
위험 요약. 이 노트는 쿠폰을 지급하지 않으며, 상한으로 인해 상승 여력이 제한되고, 10% 버퍼를 초과하는 하락에 대해 투자자는 1대1 손실에 노출됩니다. 로열 뱅크 오브 캐나다의 선순위 무담보 채무로서, 지급은 은행 신용도에 달려 있습니다. 증권은 만기까지 보유하는 것을 목적으로 하며, 거래소 상장은 계획되어 있지 않고 2차 유동성은 제한적일 것으로 예상되어 매도-매수 스프레드 및 딜러 마크다운이 발생할 수 있습니다. 발행자의 초기 추정 가치는 RBC 내부 자금 조달 금리를 사용해 계산되며, 공모가보다 낮아 투자자에게 즉각적인 경제적 비용을 발생시킵니다. 미국 세금 처리는 불확실하며, RBC는 이 노트가 선불 금융 계약으로 취급될 것으로 예상합니다.
향상되었지만 상한이 있는 주식 노출과 부분적 하락 보호를 원하는 투자자에게 이 구조가 유용할 수 있으나, 상품의 위험/수익 균형, 유동성 부족 및 발행자 신용 리스크를 신중히 고려해야 합니다.
Royal Bank of Canada (RY) a déposé un supplément de tarification préliminaire 424(b)(2) pour trois Notes Capped Enhanced Return Buffer distinctes arrivant à échéance le 4 août 2027. Chaque note est liée à un seul indice boursier—Nasdaq-100 (NDX), Russell 2000 (RTY) ou S&P 500 (SPX)—et sera émise en coupures de 1 000 $ le 5 août 2025.
Mécanique à la hausse. Si la valeur finale de l’actif sous-jacent dépasse la valeur initiale, les investisseurs reçoivent 150 % du rendement de l’indice, plafonné à un rendement maximal fixé à la date de transaction (fourchettes indicatives : NDX 24,5-26,5 %, RTY 28-30 %, SPX 20-22 %).
Mécanique à la baisse. Un buffer de 10 % protège le capital tant que l’indice ne perd pas plus de 10 %. En dessous de ce seuil, le capital est réduit point par point au-delà de la perte de 10 %. Exemple : une baisse de 50 % de l’indice entraîne une perte de 40 % sur la note (rachat à 600 $).
Termes clés.
- Taux de participation : 150 % (sous réserve de plafonnement)
- Valeur du buffer : 90 % du niveau initial de l’indice
- Date de transaction : 31 juil. 2025 | Date d’évaluation : 30 juil. 2027
- Échéance : 4 août 2027 (durée de 2 ans)
- Prix public : 100 % de la valeur nominale ; escompte de souscription de 1 % (concessions aux distributeurs jusqu’à 10 $ par 1 000 $)
- Valeur estimée initiale : 928 $-979 $ (soit 92,8-97,9 % de la valeur nominale), inférieure au prix d’émission
Points clés sur les risques. Les notes ne versent pas de coupons, ont un potentiel de hausse limité en raison du plafond, et exposent les investisseurs à une perte au-delà du buffer de 10 % à raison de 1 pour 1. Ce sont des obligations senior non garanties de Royal Bank of Canada – les paiements dépendent de la solvabilité de la banque. Les titres sont conçus pour être détenus jusqu’à l’échéance ; aucune cotation en bourse n’est prévue et la liquidité secondaire devrait être faible, avec des écarts acheteur-vendeur et des décotes de distributeurs probables. La valeur estimée initiale, calculée en utilisant le taux de financement interne de RBC, sera inférieure au prix d’offre, ce qui engendre un coût économique immédiat pour l’investisseur. Le traitement fiscal américain est incertain ; RBC s’attend à ce que les notes soient considérées comme des contrats financiers prépayés.
Les investisseurs recherchant une exposition actions améliorée mais plafonnée avec une protection partielle à la baisse pourraient trouver cette structure utile ; toutefois, le compromis risque/rendement, l’illiquidité et la solvabilité de l’émetteur doivent être soigneusement évalués.
Die Royal Bank of Canada (RY) hat einen vorläufigen 424(b)(2) Preiszusatz für drei separate Capped Enhanced Return Buffer Notes mit Fälligkeit am 4. August 2027 eingereicht. Jede Note ist an einen einzelnen Aktienindex gekoppelt—Nasdaq-100 (NDX), Russell 2000 (RTY) oder S&P 500 (SPX)—und wird am 5. August 2025 in Stückelungen zu je 1.000 $ ausgegeben.
Aufwärtsmechanik. Überschreitet der Endwert des Basiswerts den Anfangswert, erhalten Anleger 150 % der Indexrendite, begrenzt durch eine am Handelstag festgelegte Höchstrendite (indikative Spannen: NDX 24,5-26,5 %, RTY 28-30 %, SPX 20-22 %).
Abwärtsmechanik. Ein 10 % Pufferschutz sichert das Kapital, solange der Index nicht mehr als 10 % verliert. Unterhalb dieser Schwelle wird das Kapital Punkt für Punkt um den Betrag des Verlusts über 10 % hinaus reduziert. Beispiel: Ein Indexrückgang von 50 % führt zu einem Verlust von 40 % auf die Note (Rückzahlung von 600 $).
Wesentliche Bedingungen.
- Partizipationsrate: 150 % (unterliegt der Obergrenze)
- Pufferwert: 90 % des Anfangsindexniveaus
- Handelstag: 31. Juli 2025 | Bewertungstag: 30. Juli 2027
- Fälligkeit: 4. August 2027 (2 Jahre Laufzeit)
- Öffentlicher Preis: 100 % des Nennwerts; Underwriting-Rabatt 1 % (Händlerprovisionen bis zu 10 $ pro 1.000 $)
- Geschätzter Anfangswert: 928 $–979 $ (d.h. 92,8–97,9 % des Nennwerts), unter dem Ausgabepreis
Risikohighlights. Die Notes zahlen keine Kupons, haben aufgrund der Obergrenze ein begrenztes Aufwärtspotenzial und setzen Anleger einem 1:1-Verlust über den 10 % Pufferschutz hinaus aus. Es handelt sich um unbesicherte Seniorverbindlichkeiten der Royal Bank of Canada – Zahlungen hängen von der Bonität der Bank ab. Die Wertpapiere sind für die Haltung bis zur Fälligkeit vorgesehen; eine Börsennotierung ist nicht geplant und die Sekundärliquidität wird voraussichtlich gering sein, mit wahrscheinlichen Geld-Brief-Spannen und Händlerabschlägen. Der geschätzte Anfangswert, berechnet unter Verwendung des internen Finanzierungssatzes von RBC, liegt unter dem Ausgabepreis, was für den Anleger sofortige wirtschaftliche Kosten bedeutet. Die US-Steuerbehandlung ist unsicher; RBC erwartet, dass die Notes als vorausbezahlte Finanzkontrakte behandelt werden.
Investoren, die eine verbesserte, aber begrenzte Aktienexponierung mit teilweisem Abwärtsschutz suchen, könnten die Struktur nützlich finden; jedoch sollten Risiko-Rendite-Verhältnis, Illiquidität und Kreditwürdigkeit des Emittenten sorgfältig abgewogen werden.
Free Writing Prospectus to Preliminary Pricing Supplement No. 9,110
Registration Statement Nos. 333-275587; 333-275587-01
Dated July 1, 2025; Filed pursuant to Rule 433
Morgan Stanley
Worst-of INDU, SPX and RTY Buffered PLUS due August 3, 2028
This document provides a summary of the terms of the securities. Investors must carefully review the accompanying preliminary pricing supplement referenced below, product supplement, index supplement and prospectus, and the “Risk Considerations” on the following page, prior to making an investment decision.
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Terms |
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Issuer: |
Morgan Stanley Finance LLC |
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Guarantor: |
Morgan Stanley |
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Underliers: |
Dow Jones Industrial AverageSM (INDU), S&P 500® Index (SPX) and Russell 2000® Index (RTY) |
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Leverage factor: |
163% to 173% |
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Buffer amount: |
10% (90% maximum loss)1 |
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Pricing date: |
July 31, 2025 |
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Observation date: |
July 31, 2028 |
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Maturity date: |
August 3, 2028 |
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CUSIP: |
61778NCZ2 |
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Estimated value: |
$962.10 per security, or within $45.00 of that estimate |
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Preliminary pricing supplement: |
https://www.sec.gov/Archives/edgar/data/895421/000183988225035729/ms9110_424b2-19532.htm |
1All payments are subject to our credit risk
Hypothetical Payment at Maturity1
The payment at maturity will be based solely on the performance of the worst performing underlier, which could be any underlier. The payoff diagram and table below illustrate the payment at maturity for a range of hypothetical performances of the worst performing underlier over the term of the securities.
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% Change in Closing Level of the Worst Performing Underlier |
Payment at Maturity per Security |
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+60.00% |
$1,978.00* |
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+40.00% |
$1,652.00* |
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+20.00% |
$1,326.00* |
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0.00% |
$1,000.00 |
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-10.00% |
$1,000.00 |
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-11.00% |
$990.00 |
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-20.00% |
$900.00 |
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-40.00% |
$700.00 |
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-60.00% |
$500.00 |
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-80.00% |
$300.00 |
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-100.00% |
$100.00 |
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*Assumes a leverage factor of 163% |
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The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-584-6837.
Underlier(s)
For more information about the underlier(s), including historical performance information, see the accompanying preliminary pricing supplement.
Risk Considerations
The risks set forth below are discussed in more detail in the “Risk Factors” section in the accompanying preliminary pricing supplement. Please review those risk factors carefully prior to making an investment decision.
Risks Relating to an Investment in the Securities
●The securities provide for only the minimum payment at maturity and do not pay interest.
●The amount payable on the securities is not linked to the values of the underliers at any time other than the observation date.
●The market price of the securities may be influenced by many unpredictable factors.
●The securities are subject to our credit risk, and any actual or anticipated changes to our credit ratings or credit spreads may adversely affect the market value of the securities.
●As a finance subsidiary, MSFL has no independent operations and will have no independent assets.
●The rate we are willing to pay for securities of this type, maturity and issuance size is likely to be lower than the rate implied by our secondary market credit spreads and advantageous to us. Both the lower rate and the inclusion of costs associated with issuing, selling, structuring and hedging the securities in the original issue price reduce the economic terms of the securities, cause the estimated value of the securities to be less than the original issue price and will adversely affect secondary market prices.
●The estimated value of the securities is determined by reference to our pricing and valuation models, which may differ from those of other dealers and is not a maximum or minimum secondary market price.
●The securities will not be listed on any securities exchange and secondary trading may be limited.
●As discussed in more detail in the accompanying product supplement, investing in the securities is not equivalent to investing in the underlier(s).
●The U.S. federal income tax consequences of an investment in the securities are uncertain.
Risks Relating to the Underlier(s)
●Because your return on the securities will depend upon the performance of the underlier(s), the securities are subject to the following risk(s), as discussed in more detail in the accompanying product supplement.
oYou are exposed to the price risk of each underlier.
oBecause the securities are linked to the performance of the worst performing underlier, you are exposed to a greater risk of not receiving a positive return on the securities and/or sustaining a loss on your investment than if the securities were linked to just one underlier.
oAdjustments to an underlying index could adversely affect the value of the securities.
●The securities are subject to risks associated with small-capitalization companies.
Risks Relating to Conflicts of Interest
●The calculation agent, which is a subsidiary of Morgan Stanley and an affiliate of MSFL, will make determinations with respect to the securities.
●Hedging and trading activity by our affiliates could potentially adversely affect the value of the securities.
Tax Considerations
You should review carefully the discussion in the accompanying preliminary pricing supplement under the caption “Additional Information About the Securities– United States federal income tax considerations” concerning the U.S. federal income tax consequences of an investment in the securities, and you should consult your tax adviser.
FAQ
What indices underlie Royal Bank of Canada’s Capped Enhanced Return Buffer Notes?
How much upside can investors earn on the RY buffer notes?
What level of principal protection do these notes provide?
Do the notes pay periodic interest?
Can the notes be sold before maturity?
What is the initial estimated value versus the purchase price?
