JPMorgan Chase Issues Debt Securities Linked to Five Major Equity Indices

JPMorgan Chase & Co has announced the issuance of Buffer Autocallable GEARS (Growth Enhanced Asset Return Securities), a new type of debt security linked to the performance of five major equity indices. The securities, issued by JPMorgan Chase Financial Company LLC and fully guaranteed by JPMorgan Chase & Co., will pay a return equal to 12% above the principal amount if the basket closes at or above the Autocall Barrier on the Observation Date.

However, investors who hold the securities until maturity may be exposed to the negative performance of the basket, subject to a buffer that limits losses to up to 90% of their initial investment. The downside market risk is in addition to the credit risk inherent in purchasing a debt obligation of JPMorgan Financial fully and unconditionally guaranteed by JPMorgan Chase & Co.

The securities have several key features, including a Call Return of 12%, an Upside Gearing feature that provides leveraged exposure to any positive performance of the basket, and a Buffered Downside Market Exposure feature that limits losses in case of negative basket performance.