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As Long Treasuries Rise, JP Morgan Chase Issues A Structured Note With A 6.50% Offer

Tuesday, June 25, 2013 - 9:08 AM
JP Morgan Chase, like Morgan Stanley and Citibank, had exited the structured note market about a year ago when long bonds rates fell so low that structured notes could no longer be structured. Monday, they returned to the market with a new 6.50% structured note.

Bank-issued structured notes should not be viewed as an equivalent to placing money in a savings account or even in a CD.  They are much more similar to a bond and can fit well in a portfolio designed to generate income with low risk.
ShorebreakShorebreak2,674 posts since
Apr 6, 2010
Rep Points: 14,510
1. Tuesday, June 25, 2013 - 1:26 PM
Chase has been hinting that they have something to offer their Preferred Clients which pay higher interest than CDs. However, they won't say what they have unless I make an appointment.  I have a feeling it must be these Structured Notes.  Am I correct in thinking that the only way to cash out of them is to have to accept whatever the rate is at the time and if it is lower, you may not get back all of your principal like a CD?  Thanks!
paoli2paoli21,400 posts since
Aug 10, 2011
Rep Points: 6,132