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Apple Stock Slide Endangers $241 Million of Structured Notes

More than $241 million of structured notes tied to Apple Inc. face losses after a 27 percent drop in the stock of the world’s most valuable company eroded built-in cushions that protect investors.

Banks issued 76 U.S. notes linked to Apple stock during the seven weeks starting Aug. 20 when the company was valued at $650 a share or more, according to data compiled by Bloomberg. Sixty-three percent of the securities absorb as much as 20 percent of stock price declines before investors are at risk of losing principal or coupon payments, Bloomberg data show.