Did You Invest in J.P. Morgan’s Callable Interest Rate Spread CDs linked to the 30-Year U.S. Dollar Constant Maturity Swap Rate and the 2-Year U.S. Dollar Constant Maturity Swap Rate due June 30, 2030 (CUSIP: 48125YHW7)?
According to J.P. Morgan’s prospectus on CUSIP: 48125YHW7:
The CDs are designed for investors who seek (a) periodic interest payments that (i) for the first year: at a rate of 10.00% per annum (corresponding to an Annual Percentage Yield (“APY”) of10.00%) and (ii) in Years 2 to maturity: at a variable rate per annum equal to the Multiplier multiplied by (a) the
difference, if any, of the 30-Year U.S. Dollar Constant Maturity Swap Rate (“30CMS”) minus the 2-Year U.S. Dollar Constant Maturity Swap (“2CMS”) minus (b) 0.875%, as determined on the CMS determination date at the start of the related quarterly interest payment period; subject to, for each interest payment period, the maximum of 10.00% per annum and the minimum interest rate of 0.00% per annum. The CDs provide an above-market interest rate in Year 1; however, for each period Years 2 to maturity, the CDs will not pay any interest with respect to the interest payment period if the 30CMS minus the 2CMS is equal to or less than 0.875% on the related quarterly CMS determination date.
Investors ought to be cautious with this type of investment. According to the Financial Industry Regulatory Authority (FINRA):
If you bought the structured product known as J.P. Morgan’s Callable Interest Rate Spread CDs linked to the 30-Year U.S. Dollar Constant Maturity Swap Rate and the 2-Year U.S. Dollar Constant Maturity Swap Rate due June 30, 2030 CUSIP: 48125YHW7, and it was sold to you as a safe, liquid, and/or conservative investment, and then you suffered losses, you may have a claim. Contact the attorneys at Sonn Law Group for free consultation.
Image credit: Håkan Dahlström via Flickr