JPMorgan Chase & Co. (JPM) sold $35 million of one-year notes linked to the price of gold, the bank’s largest offering tied to the precious metal in at least three years.
The securities, issued Jan. 2, yield three times the gains of the price of gold in London up to 15.6 percent, with no protection against losses and all capital at risk, according to a prospectus filed with the U.S. Securities and Exchange Commission. The metal’s price increased 8.3 percent last year in London.
The bank sold $82.4 million of notes tied to gold in eight offerings last year, according to data compiled by Bloomberg. New York-based JPMorgan issued $27.8 million of one-year securities on Oct. 26, the next-largest deal since 2010, when Bloomberg began collecting comprehensive data on U.S. structured notes.
Elizabeth Seymour, a spokeswoman for JPMorgan Chase, declined to comment on the latest offering or future gold notes.
Banks create structured notes by packaging debt with derivatives to offer customized bets to retail investors while earning fees and raising money. Derivatives are contracts whose value is derived from stocks, bonds, commodities and currencies, or events such as changes in interest rates or the weather.
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