According to the Monetary Authority of Singapore on Wednesday, Morgan Stanley, the arranger of the notes, has informed the central bank and the distributors of the notes that 'credit events' have occured in relation to the underlying securities of the notes.

But at the same time, Morgan Stanley has informed MAS that a mandatory redemption event has not occured, though it may shortly occur.

The terms provide for the notes to be early redeemed should a mandatory redemption event occur.

Morgan Stanley declined to comment.