JPMorgan plans periodic income CDs linked to Mozaic Fixed Income

By Angela McDaniel

Tacoma, Wash., May 6 - JPMorgan Chase Bank, NA plans to price periodic income certificates of deposit due May 29, 2020 linked to the J.P. Morgan Mozaic Fixed Income Index (USD), according to a term sheet.

Interest will be payable annually. The interest rate will be (a) the index return as of the coupon determination date for that year multiplied by (b) the index factor for that date, which will be one divided by the number of coupon determination dates that have occurred up to and including that coupon determination date.

The interest rate will be subject to a minimum of at least zero. The actual minimum coupon rate will be set at pricing.

The payout at maturity will be par.

The index is a synthetic, dynamic strategy that attempts to replicate synthetic long and/or short positions in a basket of fixed-income futures indexes in global developed markets. The index rebalances monthly across these underlying indexes using a momentum-based strategy and implements a strategy that reacts to changes in the Federal Reserve Target Rate. The index is subject to an annual fee of 0.55% deducted daily.

J.P. Morgan Securities LLC is the agent. Incapital LLC is the distributor.

The CDs are expected to price May 28 and settle May 31.

The fees are expected to be 5.15%, including 3% for selling concessions.

The Cusip number is 48124JZR2.

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