JPMorgan plans callable leveraged spread CDs linked to CMS rates

By Angela McDaniels

Tacoma, Wash., Sept. 4 - JPMorgan Chase Bank, NA plans to price callable leveraged spread certificates of deposit due Sept. 25, 2023 linked to the 30-year and five-year Constant Maturity Swap rates, according to a term sheet.

Interest will be payable quarterly and will accrue at 9% per year for the first year. After that, interest will equal 12 times the spread of the 30-year CMS rate over the five-year CMS rate, subject to a floor of 0% and a maximum rate of 12% per year.

Beginning on Sept. 25, 2009, the CDs will be callable at par on any interest payment date.

If the CDs are not called, the payout at maturity will be par.

The CDs will price on Sept. 22 and settle on Sept. 25.

J.P. Morgan Securities Inc. will be the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.