<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) DECEMBER 17, 1997
BA Mortgage Securities, Inc. (as depositor under a Pooling and Servicing
Agreement to be dated as of December 1, 1997 providing for, inter alia, the
issuance of Mortgage Pass-Through Certificates, Series 1997-3)
BA Mortgage Securities, Inc.
-------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 333-34225 94-324470
---------------------------- ------------ ------------------
(STATE OR OTHER JURISDICTION (COMMISSION (I.R.S. EMPLOYER
OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
345 Montgomery Street, Lower Level #2, Unit #8152, San Francisco, CA 94104
--------------------------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (415) 622-3676
-----------------------------------------------------------
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
Exhibit Index Located on Page 2
<PAGE> 2
Items 1 through 6 and Item 8 are not included because they are not applicable.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Not applicable
(b) Not applicable
(c) Exhibits
Sequential
Numbered
Exhibit Exhibit
Number Page
- ------ ----
99.1 Collateral Term Sheet prepared by Morgan Stanley
Dean Witter in connection with Registrant's
Mortgage Pass-Through Certificates, Series 1997-3
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
BA MORTGAGE SECURITIES, INC.
By: /s/ DAVID JAMES
-----------------------------
Name: David James
Title: Vice President
Dated: December 17, 1997
<PAGE> 1
EXHIBIT 99.1
COLLATERAL TERM SHEET
<PAGE> 2
BAMS 1997-3 MORGAN STANLEY DEAN WITTER
CALIFORNIA 852 RECORDS
BALANCE:276,949,109
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Current Balance Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
200,001 - 250,000 180 42,920,173.56 15.50
250,001 - 300,000 282 77,554,856.71 28.00
300,001 - 350,000 153 49,542,437.73 17.89
350,001 - 400,000 84 31,606,618.60 11.41
400,001 - 450,000 57 24,332,137.73 8.79
450,001 - 500,000 45 21,501,069.90 7.76
500,001 - 550,000 18 9,517,454.87 3.44
550,001 - 600,000 17 9,746,871.70 3.52
600,001 - 650,000 16 10,227,488.62 3.69
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
Min: 217,689.78
Max: 649,552.68
Average: 325,057.64
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Current Coupon Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
6.501 - 7.000 2 635,023.85 0.23
7.001 - 7.500 200 67,463,229.21 24.36
7.501 - 8.000 555 181,080,599.89 65.38
8.001 - 8.500 93 27,302,279.50 9.86
8.501 - 9.000 2 467,976.97 0.17
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
Min: 6.88
Max: 8.63
WAC: 7.75
<PAGE> 3
<TABLE>
<CAPTION>
% by
Number of Current Current
Original Mortgage Principal Principal
Loan-to-Value Ratio (%) Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
20.001 - 25.000 1 300,000.00 0.11
25.001 - 30.000 1 249,645.94 0.09
30.001 - 35.000 5 1,997,241.34 0.72
35.001 - 40.000 11 3,191,140.16 1.15
40.001 - 45.000 11 3,219,012.91 1.16
45.001 - 50.000 15 5,304,425.37 1.92
50.001 - 55.000 19 6,614,899.64 2.39
55.001 - 60.000 37 11,239,835.81 4.06
60.001 - 65.000 56 18,331,061.91 6.62
65.001 - 70.000 74 25,456,009.53 9.19
70.001 - 75.000 145 48,942,761.64 17.67
75.001 - 80.000 358 118,915,964.60 42.94
80.001 - 85.000 11 3,028,222.23 1.09
85.001 - 90.000 86 24,614,123.96 8.89
90.001 - 95.000 22 5,544,764.38 2.00
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
Minimum: 23.08
Maximum: 95.00
Weighted Average by Original Balance: 73.76
Weighted Average by Current Balance: 73.76
% more than 80: 11.983
Count: more than 80 AND No PMI Coverage: 0.00
% more than 80 AND No PMI Coverage: 0.00
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Product Type Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Fixed - 30 Year 851 276,705,553.50 99.91
Fixed - 25 Year 1 243,555.92 0.09
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Property Type Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Single Family Detached 636 205,015,788.87 74.03
Planned Unit Developments 175 59,176,275.67 21.37
Condo 32 9,565,377.55 3.45
Two- to four-family units 9 3,191,667.33 1.15
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Loan Purpose Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Purchase 406 132,328,526.34 47.78
Refinance - Rate Term 352 113,675,553.68 41.05
Refinance - Cashout 94 30,945,029.40 11.17
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
<PAGE> 4
- --------------------------------------------------------------------------------
The information herein has been provided solely by the underwriter. Neither the
issuer of the certificates nor any of its affiliates makes any representation as
to the accuracy or completeness of the information herein. The information
herein is preliminary, and will be superseded by the applicable prospectus
supplement and by any other information subsequently filed with the securities
and exchange commission. The information contained herein will be superseded by
the description of the mortgage pool contained in the prospectus supplement
relating to the certificates and supersedes all information contained in any
collateral term sheets relating to the mortgage pool previously provided by the
underwriter. This memorandum is based on or derived from information generally
available to the public from sources believed to be reliable. No representation
is made that it is accurate or complete. Certain assumptions may have been made
in this analysis which have resulted in any returns detailed herein. No
representation is made that any returns indicated will be achieved. Changes to
the assumptions may have a material impact on any returns detailed. Past
performance is not necessarily indicative of future results. Price and
availability are subject to change without notice. The foregoing has
been prepared solely for informational purposes and is not an offer to buy or
sell or a solicitation of an offer to buy or sell any security or instrument or
to participate in any particular trading strategy. Morgan Stanley & Co.
Incorporated and others associated with it may have positions in, and may effect
transactions in securities and instruments of issuers mentioned herein and may
also perform or seek to perform investment banking services for the issuer of
such securities and instruments. Additional information is available upon
request. To Our Readers Worldwide: In addition, please note that this
publication has been issued by Morgan Stanley & Co. Incorporated and approved by
Morgan Stanley & Co. International Limited, a member of The Securities and
Futures Authority Limited and Morgan Stanley Japan, Ltd. We recommend that
investors obtain the advice of their Morgan Stanley & Co. International Limited
or Morgan Stanley Japan Ltd. representative about the investments concerned. NOT
FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND
FUTURES AUTHORITY.
- -------------------------------------------------------------------------------
<PAGE> 5
BAMS 1997-3 MORGAN STANLEY DEAN WITTER
CALIFORNIA 852 RECORDS
BALANCE:276,949,109
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Occupancy Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Primary 843 273,952,999.94 98.92
Second Home 7 2,500,649.81 0.90
Investment 2 495,459.67 0.18
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Documentation Level Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Full Doc -Asset and Income 475 158,976,887.03 57.40
Rapid Processing 377 117,972,222.39 42.60
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Top 10 States Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
California-Northern 467 150,889,372.64 54.48
California-Southern 385 126,059,736.78 45.52
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Top 10 Zipcodes Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
94539 14 5,110,109.20 1.85
94070 13 4,120,734.42 1.49
94002 12 4,039,810.55 1.46
90266 8 3,199,639.62 1.16
94526 11 3,076,185.33 1.11
92653 8 3,013,900.86 1.09
91302 7 2,622,290.00 0.95
92064 8 2,608,219.20 0.94
94402 7 2,557,234.97 0.92
92672 7 2,381,344.11 0.86
Other 757 244,219,641.16 88.18
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
% by
Number of Current Current
Remaining Term to Mortgage Principal Principal
Stated Maturity Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
289 - 300 1 243,555.92 0.09
301 - 312 37 9,662,803.64 3.49
313 - 324 8 2,134,640.86 0.77
349 - 360 806 264,908,109.00 95.65
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
Minimum: 296
Maximum: 360
Weighted Average: 356.3
<TABLE>
<CAPTION>
% by
Number of Current Current
Amortized Remaining Mortgage Principal Principal
Term to Maturity Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
109 - 120 1 262,041.91 0.09
253 - 264 1 311,763.67 0.11
289 - 300 1 243,555.92 0.09
301 - 312 38 9,997,589.93 3.61
313 - 324 7 1,799,854.57 0.65
325 - 336 3 851,097.60 0.31
337 - 348 4 1,321,780.98 0.48
349 - 360 794 261,377,573.58 94.38
361 more than or equal to 3 783,851.26 0.28
--- -------------- --------------
Total: 852 276,949,109.42 100.00
--- -------------- --------------
</TABLE>
Minimum: 108
Maximum: 360
Weighted Average: 355.8
<PAGE> 7
- --------------------------------------------------------------------------------
The information herein has been provided solely by the underwriter. Neither the
issuer of the certificates nor any of its affiliates makes any representation as
to the accuracy or completeness of the information herein. The information
herein is preliminary, and will be superseded by the applicable prospectus
supplement and by any other information subsequently filed with the securities
and exchange commission. The information contained herein will be superseded by
the description of the mortgage pool contained in the prospectus supplement
relating to the certificates and supersedes all information contained in any
collateral term sheets relating to the mortgage pool previously provided by the
underwriter. This memorandum is based on or derived from information generally
available to the public from sources believed to be reliable. No representation
is made that it is accurate or complete. Certain assumptions may have been made
in this analysis which have resulted in any returns detailed herein. No
representation is made that any returns indicated will be achieved. Changes to
the assumptions may have a material impact on any returns detailed. Past
performance is not necessarily indicative of future results. Price and
availability are subject to change without notice. The foregoing has
been prepared solely for informational purposes and is not an offer to buy or
sell or a solicitation of an offer to buy or sell any security or instrument or
to participate in any particular trading strategy. Morgan Stanley & Co.
Incorporated and others associated with it may have positions in, and may effect
transactions in securities and instruments of issuers mentioned herein and may
also perform or seek to perform investment banking services for the issuer of
such securities and instruments. Additional information is available upon
request. To Our Readers Worldwide: In addition, please note that this
publication has been issued by Morgan Stanley & Co. Incorporated and approved by
Morgan Stanley & Co. International Limited, a member of The Securities and
Futures Authority Limited and Morgan Stanley Japan, Ltd. We recommend that
investors obtain the advice of their Morgan Stanley & Co. International Limited
or Morgan Stanley Japan Ltd. representative about the investments concerned. NOT
FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND
FUTURES AUTHORITY.
- -------------------------------------------------------------------------------
<PAGE> 8
BAMS 1997-3 MORGAN STANLEY DEAN WITTER
N-CALIFORNIA 467 RECORDS
BALANCE:150,889,373
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Current Balance Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
200,001 - 250,000 102 24,344,365.27 16.13
250,001 - 300,000 158 43,446,040.72 28.79
300,001 - 350,000 84 27,276,627.56 18.08
350,001 - 400,000 39 14,739,739.51 9.77
400,001 - 450,000 32 13,594,940.29 9.01
450,001 - 500,000 25 11,925,002.00 7.90
500,001 - 550,000 12 6,368,115.30 4.22
550,001 - 600,000 6 3,425,301.90 2.27
600,001 - 650,000 9 5,769,240.09 3.82
--- -------------- --------------
Total: 467 150,889,372.64 100.00
--- -------------- --------------
</TABLE>
Min: 217,689.78
Max: 649,552.68
Average: 323,103.58
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Current Coupon Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
6.501 -7.000 2 635,023.85 0.42
7.001 -7.500 105 35,425,464.09 23.48
7.501 -8.000 308 99,622,765.18 66.02
8.001 -8.500 51 14,968,769.17 9.92
8.501 -9.000 1 237,350.35 0.16
--- -------------- --------------
Total: 467 150,889,372.64 100.00
--- -------------- --------------
</TABLE>
Min: 6.88
Max: 8.63
WAC: 7.76
<TABLE>
<CAPTION>
% by
Number of Current Current
Original Mortgage Principal Principal
Loan-to-Value Ratio Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
20.001 - 25.000 1 300,000.00 0.20
30.001 - 35.000 3 1,221,780.67 0.81
35.001 - 40.000 7 1,730,001.13 1.15
40.001 - 45.000 6 1,757,365.43 1.16
45.001 - 50.000 8 3,220,414.74 2.13
50.001 - 55.000 13 4,389,683.75 2.91
55.001 - 60.000 22 7,121,385.24 4.72
60.001 - 65.000 34 10,466,058.67 6.94
65.001 - 70.000 49 17,244,886.55 11.43
70.001 - 75.000 81 26,197,293.21 17.36
75.001 - 80.000 195 64,190,648.18 42.54
80.001 - 85.000 4 1,054,301.98 0.70
85.001 - 90.000 32 8,997,413.41 5.96
90.001 - 95.000 12 2,998,139.68 1.99
--- -------------- --------------
Total: 467 150,889,372.64 100.00
--- -------------- --------------
</TABLE>
Minimum: 23.08
Maximum: 95.00
Weighted Average by Original Balance: 72.64
Weighted Average by Current Balaance: 72.65
% more than 80: 8.649
Count: more than 80 AND No PMI Coverage: 0.00
% more than 80 AND No PMI Coverage: 0.00
<PAGE> 9
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Product Type Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Fixed - 30 Year 466 150,645,816.72 99.84
Fixed - 25 Year 1 243,555.92 0.16
--- -------------- --------------
Total: 467 150,889,372.64 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Property Type Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Single Family Detached 381 122,363,096.83 81.09
Planned Unit Developments 66 22,297,137.61 14.78
Condo 15 4,407,517.21 2.92
Two- to four-family units 5 1,821,620.99 1.21
--- -------------- --------------
Total: 467 150,889,372.64 100.00
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Loan Purpose Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Purchase 208 67,957,767.81 45.04
Refinance - Rate Term 197 62,162,377.78 41.20
Refinance - Cashout 62 20,769,227.05 13.76
--- -------------- --------------
Total: 467 150,889,372.64 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Occupancy Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Primary 463 149,414,558.53 99.02
Second Home 4 1,474,814.11 0.98
--- -------------- --------------
Total: 467 150,889,372.64 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Documentation Level Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Full Doc -Asset and Income 262 87,234,538.16 57.81
Rapid Processing 205 63,654,834.48 42.19
--- -------------- --------------
Total: 467 150,889,372.64 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Top 10 States Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
California-Northern 467 150,889,372.64 100.00
--- -------------- --------------
Total: 467 150,889,372.64 100.00
--- -------------- --------------
</TABLE>
<PAGE> 10
- --------------------------------------------------------------------------------
The information herein has been provided solely by the underwriter. Neither the
issuer of the certificates nor any of its affiliates makes any representation as
to the accuracy or completeness of the information herein. The information
herein is preliminary, and will be superseded by the applicable prospectus
supplement and by any other information subsequently filed with the securities
and exchange commission. The information contained herein will be superseded by
the description of the mortgage pool contained in the prospectus supplement
relating to the certificates and supersedes all information contained in any
collateral term sheets relating to the mortgage pool previously provided by the
underwriter. This memorandum is based on or derived from information generally
available to the public from sources believed to be reliable. No representation
is made that it is accurate or complete. Certain assumptions may have been made
in this analysis which have resulted in any returns detailed herein. No
representation is made that any returns indicated will be achieved. Changes to
the assumptions may have a material impact on any returns detailed. Past
performance is not necessarily indicative of future results. Price and
availability are subject to change without notice. The foregoing has
been prepared solely for informational purposes and is not an offer to buy or
sell or a solicitation of an offer to buy or sell any security or instrument or
to participate in any particular trading strategy. Morgan Stanley & Co.
Incorporated and others associated with it may have positions in, and may effect
transactions in securities and instruments of issuers mentioned herein and may
also perform or seek to perform investment banking services for the issuer of
such securities and instruments. Additional information is available upon
request. To Our Readers Worldwide: In addition, please note that this
publication has been issued by Morgan Stanley & Co. Incorporated and approved by
Morgan Stanley & Co. International Limited, a member of The Securities and
Futures Authority Limited and Morgan Stanley Japan, Ltd. We recommend that
investors obtain the advice of their Morgan Stanley & Co. International Limited
or Morgan Stanley Japan Ltd. representative about the investments concerned. NOT
FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND
FUTURES AUTHORITY.
- -------------------------------------------------------------------------------
<PAGE> 11
BAMS 1997-3 MORGAN STANLEY DEAN WITTER
N-CALIFORNIA 467 RECORDS
BALANCE:150,889,373
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Top 10 Zipcodes Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
94539 14 5,110,109.20 3.39
94070 13 4,120,734.42 2.73
94002 12 4,039,810.55 2.68
94526 11 3,076,185.33 2.04
94402 7 2,557,234.97 1.69
94114 6 2,332,562.48 1.55
94127 6 2,326,772.80 1.54
94022 5 2,303,930.34 1.53
94131 8 2,299,153.77 1.52
95120 7 2,264,256.19 1.50
Other 378 120,458,622.59 79.83
--- -------------- --------------
Total: 467 150,889,372.64 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Remaining Term to Mortgage Principal Principal
Stated Maturity Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
289 - 300 1 243,555.92 0.16
301 - 312 24 6,520,176.42 4.32
313 - 324 5 1,199,337.92 0.79
349 - 360 437 142,926,302.38 94.72
--- -------------- --------------
Total: 467 150,889,372.64 100.00
--- -------------- --------------
</TABLE>
Minimum: 296
Maximum: 360
Weighted Average: 355.8
<TABLE>
<CAPTION>
% by
Number of Current Current
Amortized Remaining Term Mortgage Principal Principal
to Maturity Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
253 - 264 1 311,763.67 0.21
289 - 300 1 243,555.92 0.16
301 - 312 25 6,778,276.16 4.49
313 - 324 4 941,238.18 0.62
325 - 336 1 254,556.17 0.17
337 - 348 2 800,596.18 0.53
349 - 360 432 141,297,571.28 93.64
361 more than or equal to 1 261,815.08 0.17
--- -------------- --------------
Total: 467 150,889,372.64 100.00
--- -------------- --------------
</TABLE>
Minimum: 255
Maximum: 360
Weighted Average: 355.4
<PAGE> 12
- --------------------------------------------------------------------------------
The information herein has been provided solely by the underwriter. Neither the
issuer of the certificates nor any of its affiliates makes any representation as
to the accuracy or completeness of the information herein. The information
herein is preliminary, and will be superseded by the applicable prospectus
supplement and by any other information subsequently filed with the securities
and exchange commission. The information contained herein will be superseded by
the description of the mortgage pool contained in the prospectus supplement
relating to the certificates and supersedes all information contained in any
collateral term sheets relating to the mortgage pool previously provided by the
underwriter. This memorandum is based on or derived from information generally
available to the public from sources believed to be reliable. No representation
is made that it is accurate or complete. Certain assumptions may have been made
in this analysis which have resulted in any returns detailed herein. No
representation is made that any returns indicated will be achieved. Changes to
the assumptions may have a material impact on any returns detailed. Past
performance is not necessarily indicative of future results. Price and
availability are subject to change without notice. The foregoing has
been prepared solely for informational purposes and is not an offer to buy or
sell or a solicitation of an offer to buy or sell any security or instrument or
to participate in any particular trading strategy. Morgan Stanley & Co.
Incorporated and others associated with it may have positions in, and may effect
transactions in securities and instruments of issuers mentioned herein and may
also perform or seek to perform investment banking services for the issuer of
such securities and instruments. Additional information is available upon
request. To Our Readers Worldwide: In addition, please note that this
publication has been issued by Morgan Stanley & Co. Incorporated and approved by
Morgan Stanley & Co. International Limited, a member of The Securities and
Futures Authority Limited and Morgan Stanley Japan, Ltd. We recommend that
investors obtain the advice of their Morgan Stanley & Co. International Limited
or Morgan Stanley Japan Ltd. representative about the investments concerned. NOT
FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND
FUTURES AUTHORITY.
- -------------------------------------------------------------------------------
<PAGE> 13
BAMS 1997-3 MORGAN STANLEY DEAN WITTER
S-CALIFORNIA 385 RECORDS
BALANCE:126,059,737
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Current Balance Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
200,001 - 250,000 78 18,575,808.29 14.74
250,001 - 300,000 124 34,108,815.99 27.06
300,001 - 350,000 69 22,265,810.17 17.66
350,001 - 400,000 45 16,866,879.09 13.38
400,001 - 450,000 25 10,737,197.44 8.52
450,001 - 500,000 20 9,576,067.90 7.60
500,001 - 550,000 6 3,149,339.57 2.50
550,001 - 600,000 11 6,321,569.80 5.01
600,001 - 650,000 7 4,458,248.53 3.54
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
</TABLE>
Min: 225,862.57
Max: 649,541.24
Average: 327,427.89
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Current Coupon Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
7.001 - 7.500 95 32,037,765.12 25.41
7.501 - 8.000 247 81,457,834.71 64.62
8.001 - 8.500 42 12,333,510.33 9.78
8.501 - 9.000 1 230,626.62 0.18
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
</TABLE>
Min: 7.13
Max: 8.63
WAC: 7.74
<TABLE>
<CAPTION>
% by
Number of Current Current
Original Mortgage Principal Principal
Loan-to-Value Ratio (%) Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
25.001 - 30.000 1 249,645.94 0.20
30.001 - 35.000 2 775,460.67 0.62
35.001 - 40.000 4 1,461,139.03 1.16
40.001 - 45.000 5 1,461,647.48 1.16
45.001 - 50.000 7 2,084,010.63 1.65
50.001 - 55.000 6 2,225,215.89 1.77
55.001 - 60.000 15 4,118,450.57 3.27
60.001 - 65.000 22 7,865,003.24 6.24
65.001 - 70.000 25 8,211,122.98 6.51
70.001 - 75.000 64 22,745,468.43 18.04
75.001 - 80.000 163 54,725,316.42 43.41
80.001 - 85.000 7 1,973,920.25 1.57
85.001 - 90.000 54 15,616,710.55 12.39
90.001 - 95.000 10 2,546,624.70 2.02
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
</TABLE>
Minimum: 25.64
Maximum: 95.00
Weighted Average by Original Balance: 75.10
Weighted Average by Current Balance: 75.09
% more than 80: 15.974
Count: more than 80 AND No PMI Coverage: 0.00
% more than 80 AND No PMI Coverage: 0.00
<PAGE> 14
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Product Type Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Fixed - 30 Year 385 126,059,736.78 100.00
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Property Type Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Single Family Detached 255 82,652,692.04 65.57
Planned Unit Developments 109 36,879,138.06 29.26
Condo 17 5,157,860.34 4.09
Two- to four-family units 4 1,370,046.34 1.09
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Loan Purpose Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Purchase 198 64,370,758.53 51.06
Refinance - Rate Term 155 51,513,175.90 40.86
Refinance - Cashout 32 10,175,802.35 8.07
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Occupancy Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Primary 380 124,538,441.41 98.79
Second Home 3 1,025,835.70 0.81
Investment 2 495,459.67 0.39
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Documentation Level Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
Full Doc - Asset and Income 213 71,742,348.87 56.91
Rapid Processing 172 54,317,387.91 43.09
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% by
Number of Current Current
Mortgage Principal Principal
Top 10 States Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
California-Southern 385 126,059,736.78 100.00
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
</TABLE>
<PAGE> 15
- --------------------------------------------------------------------------------
The information herein has been provided solely by the underwriter. Neither the
issuer of the certificates nor any of its affiliates makes any representation as
to the accuracy or completeness of the information herein. The information
herein is preliminary, and will be superseded by the applicable prospectus
supplement and by any other information subsequently filed with the securities
and exchange commission. The information contained herein will be superseded by
the description of the mortgage pool contained in the prospectus supplement
relating to the certificates and supersedes all information contained in any
collateral term sheets relating to the mortgage pool previously provided by the
underwriter. This memorandum is based on or derived from information generally
available to the public from sources believed to be reliable. No representation
is made that it is accurate or complete. Certain assumptions may have been made
in this analysis which have resulted in any returns detailed herein. No
representation is made that any returns indicated will be achieved. Changes to
the assumptions may have a material impact on any returns detailed. Past
performance is not necessarily indicative of future results. Price and
availability are subject to change without notice. The foregoing has
been prepared solely for informational purposes and is not an offer to buy or
sell or a solicitation of an offer to buy or sell any security or instrument or
to participate in any particular trading strategy. Morgan Stanley & Co.
Incorporated and others associated with it may have positions in, and may effect
transactions in securities and instruments of issuers mentioned herein and may
also perform or seek to perform investment banking services for the issuer of
such securities and instruments. Additional information is available upon
request. To Our Readers Worldwide: In addition, please note that this
publication has been issued by Morgan Stanley & Co. Incorporated and approved by
Morgan Stanley & Co. International Limited, a member of The Securities and
Futures Authority Limited and Morgan Stanley Japan, Ltd. We recommend that
investors obtain the advice of their Morgan Stanley & Co. International Limited
or Morgan Stanley Japan Ltd. representative about the investments concerned. NOT
FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND
FUTURES AUTHORITY.
- -------------------------------------------------------------------------------
<PAGE> 16
BAMS 1997-3 MORGAN STANLEY DEAN WITTER
S-CALIFORNIA 385 RECORDS
BALANCE:126,059,737
<TABLE>
<CAPTION>
% of
Number of Current Current
Mortgage Principal Principal
Top 10 Zipcodes Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
90266 8 3,199,639.62 2.54
92653 8 3,013,900.86 2.39
91302 7 2,622,290.00 2.08
92064 8 2,608,219.20 2.07
92672 7 2,381,344.11 1.89
92677 7 2,345,702.76 1.86
90275 6 2,281,988.35 1.81
92037 5 2,044,994.21 1.62
92648 5 2,009,933.54 1.59
91301 6 1,919,185.23 1.52
Other 318 101,632,538.90 80.62
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% of
Number of Current Current
Remaining Term to Mortgage Principal Principal
Stated Maturity Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
301 - 312 13 3,142,627.22 2.49
313 - 324 3 935,302.94 0.74
349 - 360 369 121,981,806.62 96.77
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
</TABLE>
Minimum: 302
Maximum: 360
Weighted Average: 356.9
<TABLE>
<CAPTION>
% of
Number of Current Current
Amortized Remaining Term Mortgage Principal Principal
to Maturity Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
109 - 120 1 262,041.91 0.21
301 - 312 13 3,219,313.77 2.55
313 - 324 3 858,616.39 0.68
325 - 336 2 596,541.43 0.47
337 - 348 2 521,184.80 0.41
349 - 360 362 120,080,002.30 95.26
361 more than or equal to 2 522,036.18 0.41
--- -------------- --------------
Total: 385 126,059,736.78 100.00
--- -------------- --------------
Minimum: 108
Maximum: 360
Weighted Average: 356.2
</TABLE>
<PAGE> 17
- --------------------------------------------------------------------------------
The information herein has been provided solely by the underwriter. Neither the
issuer of the certificates nor any of its affiliates makes any representation as
to the accuracy or completeness of the information herein. The information
herein is preliminary, and will be superseded by the applicable prospectus
supplement and by any other information subsequently filed with the securities
and exchange commission. The information contained herein will be superseded by
the description of the mortgage pool contained in the prospectus supplement
relating to the certificates and supersedes all information contained in any
collateral term sheets relating to the mortgage pool previously provided by the
underwriter. This memorandum is based on or derived from information generally
available to the public from sources believed to be reliable. No representation
is made that it is accurate or complete. Certain assumptions may have been made
in this analysis which have resulted in any returns detailed herein. No
representation is made that any returns indicated will be achieved. Changes to
the assumptions may have a material impact on any returns detailed. Past
performance is not necessarily indicative of future results. Price and
availability are subject to change without notice. The foregoing has
been prepared solely for informational purposes and is not an offer to buy or
sell or a solicitation of an offer to buy or sell any security or instrument or
to participate in any particular trading strategy. Morgan Stanley & Co.
Incorporated and others associated with it may have positions in, and may effect
transactions in securities and instruments of issuers mentioned herein and may
also perform or seek to perform investment banking services for the issuer of
such securities and instruments. Additional information is available upon
request. To Our Readers Worldwide: In addition, please note that this
publication has been issued by Morgan Stanley & Co. Incorporated and approved by
Morgan Stanley & Co. International Limited, a member of The Securities and
Futures Authority Limited and Morgan Stanley Japan, Ltd. We recommend that
investors obtain the advice of their Morgan Stanley & Co. International Limited
or Morgan Stanley Japan Ltd. representative about the investments concerned. NOT
FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND
FUTURES AUTHORITY.
- -------------------------------------------------------------------------------
<PAGE> 18
BAMS 1997-3 MORGAN STANLEY DEAN WITTER
ALL RECORDS 1,240 RECORDS
BALANCE:400,805,100
<TABLE>
<CAPTION>
% of
Number of Current Current
Mortgage Principal Principal
Current Balance Loans Balance Balance
--- -------------- --------------
<S> <C> <C> <C>
100,001 - 150,000 1 108,393.00 0.03
200,001 - 250,000 279 66,637,419.53 16.63
250,001 - 300,000 422 116,142,858.27 28.98
300,001 - 350,000 204 66,010,535.63 16.47
350,001 - 400,000 121 45,477,364.55 11.35
400,001 - 450,000 77 32,853,759.09 8.20
450,001 - 500,000 58 27,762,877.62 6.93
500,001 - 550,000 23 12,216,593.15 3.05
550,001 - 600,000 29 16,682,080.49 4.16
600,001 - 650,000 23 14,643,529.63 3.65
650,001 - 700,000 1 663,543.03 0.17
750,001 - 800,000 1 791,361.24 0.20
800,001 - 850,000 1 814,785.20 0.20
----- -------------- ------
Total: 1,240 400,805,100.43 100.00
----- -------------- ------
</TABLE>
Min: 108,393.00
Max: 814,785.20
Average: 323,229.92
<TABLE>
<CAPTION>
% of
Number of Current Current
Mortgage Principal Principal
Current Coupon Loans Balance Balance
----- -------------- --------------
<S> <C> <C> <C>
6.501 - 7.000 3 888,206.88 0.22
7.001 - 7.500 285 94,493,535.94 23.58
7.501 - 8.000 817 265,418,002.21 66.22
8.001 - 8.500 133 39,537,378.43 9.86
8.501 - 9.000 2 467,976.97 0.12
----- -------------- --------------
Total: 1,240 400,805,100.43 100.00
----- -------------- --------------
</TABLE>
Min: 6.88
Max: 8.63
WAC: 7.75
<TABLE>
<CAPTION>
% of
Number of Current Current
Original Mortgage Principal Principal
Loan-to-Value Ratio (%) Loans Balance Balance
----- -------------- --------------
<S> <C> <C> <C>
20.001 - 25.000 2 799,326.77 0.20
25.001 - 30.000 1 249,645.94 0.06
30.001 - 35.000 7 2,556,601.69 0.64
35.001 - 40.000 11 3,191,140.16 0.80
40.001 - 45.000 14 4,772,225.91 1.19
45.001 - 50.000 24 8,153,872.40 2.03
50.001 - 55.000 26 8,609,916.87 2.15
55.001 - 60.000 46 14,098,794.29 3.52
60.001 - 65.000 69 23,981,016.67 5.98
65.001 - 70.000 105 35,039,634.07 8.74
70.001 - 75.000 233 76,978,492.23 19.21
75.001 - 80.000 502 166,591,540.39 41.56
80.001 - 85.000 26 7,355,174.43 1.84
85.001 - 90.000 132 37,660,968.63 9.40
90.001 - 95.000 42 10,766,749.98 2.69
----- -------------- --------------
Total: 1,240 400,805,100.43 100.00
----- -------------- --------------
</TABLE>
Minimum: 23.08
Maximum: 95.00
Weighted Average by Original Balance: 74.29
Weighted Average by Current Balance: 74.28
% more than 80: 13.918
Count: more than 80 AND No PMI Coverage: 0.00
% more than 80 AND No PMI Coverage: 0.00
<PAGE> 19
<TABLE>
<CAPTION>
% of
Number of Current Current
Mortgage Principal Principal
Product Type Loans Balance Balance
----- -------------- --------------
<S> <C> <C> <C>
Fixed - 30 Year 1,236 399,420,543.62 99.65
Fixed - 25 Year 2 724,060.36 0.18
Fixed - 20 Year 2 660,496.45 0.16
----- -------------- --------------
Total: 1,240 400,805,100.43 100.00
----- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% of
Number of Current Current
Mortgage Principal Principal
Property Type Loans Balance Balance
----- -------------- --------------
<S> <C> <C> <C>
Single Family Detached 919 297,232,208.16 74.16
Planned Unit Developments 264 86,077,775.35 21.48
Condo 44 13,114,130.80 3.27
Two- to four-family units 12 4,151,448.24 1.04
Townhouse 1 229,537.88 0.06
----- -------------- --------------
Total: 1,240 400,805,100.43 100.00
----- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% of
Number of Current Current
Mortgage Principal Principal
Loan Purpose Loans Balance Balance
----- -------------- --------------
<S> <C> <C> <C>
Purchase 629 203,610,529.92 50.80
Refinance - Rate Term 474 152,464,343.78 38.04
Refinance - Cashout 137 44,730,226.73 11.16
----- -------------- --------------
Total: 1,240 400,805,100.43 100.00
----- -------------- --------------
</TABLE>
<PAGE> 20
- --------------------------------------------------------------------------------
The information herein has been provided solely by the underwriter. Neither the
issuer of the certificates nor any of its affiliates makes any representation as
to the accuracy or completeness of the information herein. The information
herein is preliminary, and will be superseded by the applicable prospectus
supplement and by any other information subsequently filed with the securities
and exchange commission. The information contained herein will be superseded by
the description of the mortgage pool contained in the prospectus supplement
relating to the certificates and supersedes all information contained in any
collateral term sheets relating to the mortgage pool previously provided by the
underwriter. This memorandum is based on or derived from information generally
available to the public from sources believed to be reliable. No representation
is made that it is accurate or complete. Certain assumptions may have been made
in this analysis which have resulted in any returns detailed herein. No
representation is made that any returns indicated will be achieved. Changes to
the assumptions may have a material impact on any returns detailed. Past
performance is not necessarily indicative of future results. Price and
availability are subject to change without notice. The foregoing has
been prepared solely for informational purposes and is not an offer to buy or
sell or a solicitation of an offer to buy or sell any security or instrument or
to participate in any particular trading strategy. Morgan Stanley & Co.
Incorporated and others associated with it may have positions in, and may effect
transactions in securities and instruments of issuers mentioned herein and may
also perform or seek to perform investment banking services for the issuer of
such securities and instruments. Additional information is available upon
request. To Our Readers Worldwide: In addition, please note that this
publication has been issued by Morgan Stanley & Co. Incorporated and approved by
Morgan Stanley & Co. International Limited, a member of The Securities and
Futures Authority Limited and Morgan Stanley Japan, Ltd. We recommend that
investors obtain the advice of their Morgan Stanley & Co. International Limited
or Morgan Stanley Japan Ltd. representative about the investments concerned. NOT
FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND
FUTURES AUTHORITY.
- -------------------------------------------------------------------------------
<PAGE> 21
BAMS 1997-3 MORGAN STANLEY DEAN WITTER
ALL RECORDS 1,240 RECORDS
BALANCE:400,805,100
<TABLE>
<CAPTION>
% of
Number of Current Current
Mortgage Principal Principal
Occupancy Loans Balance Balance
----- -------------- --------------
<S> <C> <C> <C>
Primary 1,225 395,949,076.57 98.79
Second Home 12 4,099,175.65 1.02
Investment 3 756,848.21 0.19
----- -------------- --------------
Total: 1,240 400,805,100.43 100.00
----- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% of
Number of Current Current
Mortgage Principal Principal
Documentation Level Loans Balance Balance
----- -------------- --------------
<S> <C> <C> <C>
Full Doc -Asset and Income 696 231,707,492.54 57.81
Rapid Processing 544 169,097,607.89 42.19
----- -------------- --------------
Total: 1,240 400,805,100.43 100.00
----- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% of
Number of Current Current
Mortgage Principal Principal
Top 10 States Loans Balance Balance
----- -------------- --------------
<S> <C> <C> <C>
California-Northern 467 150,889,372.64 37.65
California-Southern 385 126,059,736.78 31.45
Massachusetts 53 16,337,513.33 4.08
Washington 38 12,235,926.43 3.05
Oregon 30 9,752,561.57 2.43
New Jersey 27 8,021,624.75 2.00
Arizona 24 7,856,218.18 1.96
Texas 20 7,228,141.24 1.80
Connecticut 20 6,610,996.64 1.65
Michigan 20 5,482,925.66 1.37
Other 156 50,330,083.21 12.56
----- -------------- --------------
Total: 1,240 400,805,100.43 100.00
----- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
% of
Number of Current Current
Mortgage Principal Principal
Top 10 Zipcodes Loans Balance Balance
----- -------------- --------------
<S> <C> <C> <C>
94539 14 5,110,109.20 1.27
94070 13 4,120,734.42 1.03
94002 12 4,039,810.55 1.01
90266 8 3,199,639.62 0.80
94526 11 3,076,185.33 0.77
92653 8 3,013,900.86 0.75
91302 7 2,622,290.00 0.65
92064 8 2,608,219.20 0.65
94402 7 2,557,234.97 0.64
92672 7 2,381,344.11 0.59
Other 1,145 368,075,632.17 91.83
----- -------------- --------------
Total: 1,240 400,805,100.43 100.00
----- -------------- --------------
</TABLE>
<PAGE> 22
<TABLE>
<CAPTION>
% of
Number of Current Current
Remaining Term to Mortgage Principal Principal
Stated Maturity Loans Balance Balance
----- -------------- --------------
<S> <C> <C> <C>
229 - 240 2 660,496.45 0.16
289 - 300 2 724,060.36 0.18
301 - 312 37 9,662,803.64 2.41
313 - 324 10 2,616,469.05 0.65
349 - 360 1,189 387,141,270.93 96.59
----- -------------- --------------
Total: 1,240 400,805,100.43 100.00
----- -------------- --------------
</TABLE>
Minimum: 239
Maximum: 360
Weighted Average: 356.6
<TABLE>
<CAPTION>
% of
Number of Current Current
Amortized Remaining Term Mortgage Principal Principal
to Maturity Loans Balance Balance
----- -------------- --------------
<S> <C> <C> <C>
109 - 120 1 262,041.91 0.07
229 - 240 2 660,496.45 0.16
253 - 264 1 311,763.67 0.08
265 - 276 1 219,370.53 0.05
289 - 300 2 724,060.36 0.18
301 - 312 38 9,997,589.93 2.49
313 - 324 8 2,062,312.23 0.51
325 - 336 3 851,097.60 0.21
337 - 348 7 2,778,347.72 0.69
349 - 360 1,173 381,895,892.18 95.28
361 more than or equal to 4 1,042,127.85 0.26
----- -------------- --------------
Total: 1,240 400,805,100.43 100.00
----- -------------- --------------
</TABLE>
Minimum: 108
Maximum: 360
Weighted Average: 356.2
<PAGE> 23
- --------------------------------------------------------------------------------
The information herein has been provided solely by the underwriter. Neither the
issuer of the certificates nor any of its affiliates makes any representation as
to the accuracy or completeness of the information herein. The information
herein is preliminary, and will be superseded by the applicable prospectus
supplement and by any other information subsequently filed with the securities
and exchange commission. The information contained herein will be superseded by
the description of the mortgage pool contained in the prospectus supplement
relating to the certificates and supersedes all information contained in any
collateral term sheets relating to the mortgage pool previously provided by the
underwriter. This memorandum is based on or derived from information generally
available to the public from sources believed to be reliable. No representation
is made that it is accurate or complete. Certain assumptions may have been made
in this analysis which have resulted in any returns detailed herein. No
representation is made that any returns indicated will be achieved. Changes to
the assumptions may have a material impact on any returns detailed. Past
performance is not necessarily indicative of future results. Price and
availability are subject to change without notice. The foregoing has
been prepared solely for informational purposes and is not an offer to buy or
sell or a solicitation of an offer to buy or sell any security or instrument or
to participate in any particular trading strategy. Morgan Stanley & Co.
Incorporated and others associated with it may have positions in, and may effect
transactions in securities and instruments of issuers mentioned herein and may
also perform or seek to perform investment banking services for the issuer of
such securities and instruments. Additional information is available upon
request. To Our Readers Worldwide: In addition, please note that this
publication has been issued by Morgan Stanley & Co. Incorporated and approved by
Morgan Stanley & Co. International Limited, a member of The Securities and
Futures Authority Limited and Morgan Stanley Japan, Ltd. We recommend that
investors obtain the advice of their Morgan Stanley & Co. International Limited
or Morgan Stanley Japan Ltd. representative about the investments concerned. NOT
FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND
FUTURES AUTHORITY.
- -------------------------------------------------------------------------------
