Capped buffered notes: JPMorgan (NYSE: JPM) offers $2.785M linked to S&P 500
Rhea-AI Filing Summary
JPMorgan Chase Financial Company LLC priced $2,785,000 of Capped Buffered Return Enhanced Notes linked to the S&P 500® Index, with a Strike Value of 7,108.40. The notes pay 1.50× positive Index appreciation up to a Maximum Return of 19.50%, protect the first 20.00% of index decline (buffer) and expose investors to amplified losses beyond the buffer. Observation Date is January 3, 2028 and Maturity Date is January 6, 2028. The notes are unsecured obligations of JPMorgan Financial, fully and unconditionally guaranteed by JPMorgan Chase & Co.
Positive
- None.
Negative
- None.
Key Figures
Offering size: $2,785,000
Price per note: $1,000
Estimated value per note: $997.10
+5 more
8 metrics
Offering size
$2,785,000
aggregate original issue amount
Price per note
$1,000
original issue price per principal amount note
Estimated value per note
$997.10
estimated value when terms were set
Strike Value
7,108.40
closing level of the Index on Strike Date (4/23/2026)
Maximum Return
19.50%
cap on positive return at maturity
Upside Leverage Factor
1.50
multiplier on Index appreciation
Buffer Amount
20.00%
first decline percentage protected at maturity
Maturity Date
January 6, 2028
stated maturity
Key Terms
Upside Leverage Factor, Buffer Amount, Section 871(m)
3 terms
Upside Leverage Factor financial
"return of 1.50 times any appreciation of the S&P 500® Index"
Buffer Amount financial
"Buffer Amount: 20.00% Downside Leverage Factor:"
Section 871(m) regulatory
"Section 871(m) of the Code and Treasury regulations promulgated thereunder"
A U.S. tax rule that treats certain payments from financial contracts (like options, swaps, and other instruments that mimic stock dividends) to non-U.S. investors as if they were direct dividends, requiring U.S. withholding tax. It matters to investors because it can reduce net returns on offshore trades that replicate U.S. equity income and may change pricing or counterparty behavior—think of it as a hidden sales tax that applies when a substitute payment acts like a dividend.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What are the core terms of JPM's capped buffered notes (JPM)?
Answer: The offering is $2,785,000 of notes priced at $1,000 each, with an estimated value of $997.10. The notes provide 1.50× upside up to 19.50%, a 20.00% downside buffer, Observation Date 1/3/2028 and maturity 1/6/2028.
How is the payoff calculated at maturity for these S&P 500‑linked notes?
Answer: If Final Value > Strike Value, payment = $1,000 + ($1,000 × Index Return × 1.50), capped at 19.50%. If Final Value ≤ Strike Value but within 20.00% decline, you receive $1,000. Larger declines produce losses using a 1.25 downside factor.
What credit and liquidity risks apply to these JPMorgan notes (JPM)?
Answer: The notes are unsecured obligations of JPMorgan Financial and are fully guaranteed by JPMorgan Chase & Co., exposing investors to both entities’ credit risks. The notes are not exchange-listed and secondary market liquidity depends on JPMS willingness to repurchase, which may be limited.
How does the estimated value compare to the issue price for these notes?
Answer: The estimated value per $1,000 note was $997.10, lower than the issue price of $1,000. The difference reflects structuring and hedging costs, projected affiliate profits and fees included in the original issue price and is not a guaranteed secondary market price.
What tax considerations are noted for U.S. and non‑U.S. holders of these notes?
Answer: Special counsel views the notes as open transactions potentially treated as prepaid financial contracts, producing long‑term capital gain if held over a year, but the IRS may disagree. For Non‑U.S. Holders, the pricing supplement discusses Section 871(m) and concludes it should not apply, subject to IRS review.