JPMorgan Offers Notes with Estimated Value and Hedging Costs
JPMorgan Chase & Co. has offered notes to investors that reflect the risk-return profile and market exposure of certain assets.
The original issue price of these notes includes the estimated value, selling commissions, projected hedging profits or losses, estimated hedging costs, internal secondary market funding rates for structured debt issuances, and fees paid for third-party data analytics and/or electronic platform services.
According to the prospectus supplement, the validity of the notes and the related guarantee are subject to applicable bankruptcy, insolvency, and similar laws affecting creditors' rights. However, Davis Polk & Wardwell LLP has given an opinion that the notes will be valid and binding obligations of JPMorgan Financial and the related guarantee will constitute a valid and binding obligation of JPMorgan Chase & Co.