J.P. Morgan’s $6,000,000 Interest Rate Spread CDs CUSIP: 48124JN53

J.P. Morgan's 7yr Capped S&P 500® Index CD CUSIP: 48128FW65Did You Invest in J.P. Morgan’s $6,000,000 Interest Rate Spread CDs Linked to the 10-Year U.S. Dollar Constant Maturity Swap Rate and 2-Year U.S. Dollar Constant Maturity Swap Rate due July 17, 2028 (CUSIP: 48124JN53)?

According to J.P. Morgan’s prospectus on CUSIP: 48124JN53:

The CDs are designed for investors who seek (a) periodic interest payments that (i) for the Initial Interest Periods are fixed at 7.00% per annum and (ii) for all subsequent Interest Periods are based on a per annum interest rate equal to the Multiplier of 4.0 multiplied by the Spread, which is equal to the 10-Year CMS Rate minus the 2-Year CMS Rate minus 0.35% and (b) the return of their initial investment at maturity. After the Initial Interest Periods, the Interest Rate is subject to the Minimum Interest Rate of 0.00% per annum and the Maximum Interest Rate of 6.50% per annum.

Investors ought to be cautious with this type of investment. According to the Financial Industry Regulatory Authority (FINRA):

FINRA-Structured-Products


If you bought the structured product known as J.P. Morgan’s $6,000,000 Interest Rate Spread CDs Linked to the 10-Year U.S. Dollar Constant Maturity Swap Rate and 2-Year U.S. Dollar Constant Maturity Swap Rate due July 17, 2028 CUSIP: 48124JN53, 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

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