Structured Products commentary on BofA notes analysis corrected

New York, June 8 – A front-page story in the June 6 edition of the Prospect News Structured Products Daily relating to notes issued by BofA Finance LLC included an incorrect statement attributed to Steven Jon Kaplan, founder and portfolio manager at True Contrarian Investments.

The statement should have been: “For the note to outperform, the price would have to rise between 0% and 11%.”

Originally, the statement had pointed to a range between 0% and 11% but the wording was imprecise, inferring a decline in the price of the ETF would lead to a maximum gain.

The story related to BofA Finance’s $5.8 million of 0% Accelerated Return Notes due July 28, 2023 linked to the SPDR S&P Metals & Mining ETF.

The notes offer triple any ETF gain on the upside, capped at par plus 34%.

However, there is full exposure if the ETF declines.

Kaplan had noted that once the price rises above 11% over the 14-month period, investors will see their upside limited to the cap.

He further stated that “Only if the price moves within that narrow range does the note make sense.”

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