JPMorgan Chase Financial Company LLC has set preliminary terms for yield notes linked to the lesser-performing of Comcast Corporation’s Class A shares and the S&P 500, offering interest of at least 11.02% per annum in exchange for exposure to a trigger-based principal-loss mechanism. The notes are fully and unconditionally guaranteed by JPMorgan Chase & Co. and are expected to mature on September 21, 2028.
The two underlyings do not operate as a basket. Instead, the eventual repayment outcome depends on each underlying separately and, if the downside condition is breached, on whichever performs worse. Comcast shares have a Strike Value of $22.91 and the S&P 500 has a Strike Value of 7,637.76, both based on their September 17, 2026 closing values. The Trigger Value for each is set at 60.00% of its Strike Value: $13.746 for Comcast and 4,582.656 for the index.
That 60.00% threshold determines how principal is treated at maturity. If both underlyings finish at or above their Trigger Values on the September 18, 2028 Observation Date, each $1,000 note returns $1,000 at maturity plus the final Interest Payment. If either finishes below its Trigger Value, the trigger protection terminates and principal repayment is calculated using the return of the Lesser Performing Underlying. Under that scenario, investors would lose more than 40.00% of principal and could lose all of it.
The higher interest rate comes with the stated risk of losing some or all principal and forgoing dividend payments in exchange for the Interest Payments. The structure adds to a broader range of investment products being developed for private and wealthy investors. Each $1,000 note is expected to pay at least $9.1833 on every Interest Payment Date, equivalent to at least 0.91833% per month and at least 11.02% annually.
BofA Finance has also set preliminary terms for auto-callable market-linked securities with a minimum 19.50% Contingent Coupon Rate, using a 60.00% barrier tied to Alnylam, UnitedHealth and Eli Lilly.
The filing also illustrates the downside mechanism using a hypothetical Lesser Performing Underlying Return of -50.00%. Under that example, the maturity payment falls to $509.1833 per $1,000 note. Including prior Interest Payments, total payments amount to $720.40, equivalent to a -27.96% return.
The structure also limits the benefit from strong markets. Investors do not participate in appreciation of Comcast shares or the S&P 500 beyond the contractual Interest Payments, receive no dividends from either underlying and have no ownership rights in the referenced securities. The notes will not be listed on a securities exchange, while secondary-market prices are likely to be below the original issue price. That liquidity risk sits alongside wider movements in US fixed-income markets, where investment-grade bond funds have also been subject to changing investor flows. J.P. Morgan Securities LLC will act as agent, with selling commissions capped at $4.00 per $1,000 note.
The notes are unsecured and unsubordinated obligations of JPMorgan Chase Financial, while JPMorgan Chase & Co. provides the guarantee, leaving payments subject to the credit risk of both entities. The Securities and Exchange Commission and state securities commissions have not approved or disapproved the notes.
For U.S. federal income tax purposes, JPMorgan intends, based on advice from Davis Polk & Wardwell LLP, to treat each note as a unit comprising a cash-settled Put Option and a $1,000 Deposit, although the Internal Revenue Service or a court could adopt a different treatment.
The final Interest Rate and estimated value will be provided in the pricing supplement. The maturity outcome, however, remains tied to the lesser-performing of Comcast and the S&P 500, with the 60.00% Trigger Value determining whether full principal is returned or the investor becomes exposed to the decline of the Lesser Performing Underlying.
