JPMorgan plans callable accrual CDs linked to S&P 500, CMS rates

By Marisa Wong

Madison, Wis., Oct. 7 – JPMorgan Chase Bank, NA plans to price callable accrual certificates of deposit due Oct. 31, 2029 linked to the S&P 500 index, the 30-year U.S. Dollar Constant Maturity Swap rate and the two-year U.S. Dollar CMS rate, according to a term sheet.

Interest will accrue at 5% for each day that the spread of the 30-year CMS rate minus the two-year CMS rate is greater than or equal to zero and the index closes at or above the 75% minimum level. Interest will be payable quarterly and cannot be less than 0% or greater than 5%.

The payout at maturity will be par.

The CDs will be callable at par on any interest payment date beginning Oct. 31, 2015.

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

The CDs are expected to price on Oct. 28 and settle on Oct. 31.

The Cusip number is 48125TA21.

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