Risk Considerations

Risk Considerations

This section describes some of the risk considerations that should be evaluated with respect to structured investments. While we have attempted to compile a general overview, this should by no means be considered a complete list of all possible risks associated with the multitude of structured investments that are currently available in the marketplace.

Among the risks involved in owning structured notes and CDs, these four are often mentioned:

  • For non-principal protected notes, a major risk is potential loss of principal.
  • For principal protected notes and CDs, investors risk principal in the event they sell the notes prior to maturity (liquidity risk). There may not be a liquid secondary market for the notes or the value of the investment may be worth less than the principal amount prior to maturity.
  • In the case of a principal protected note or CD, the creditworthiness of an issuer must be considered.
  • There is a legal risk involved with holding complex instruments, where regulatory or tax considerations may change during the term of the investment.

Please note additional factors when determining risk/reward profiles of specific securities.

Full disclosure of the risk factors for each product is available from the relevant term sheets and prospectuses or offering documents. Investors should consult their Financial Advisor for investment advice and read all applicable offering documents before investing. Investors should carefully review the risk factors section in the relevant offering documents. Documents filed with the SEC are available on the SEC website at sec.gov. Any agent or dealer participating in the applicable product offering will also arrange to send investors these documents on request. Incapital makes no recommendations concerning any structured investment or the suitability thereof.
New Issues*

JP Morgan Chase
Classic 06/17/2010

JP Morgan Chase
Classic 09/17/2010

UBS
Classic 09/20/2010

JP Morgan Chase
Classic 03/17/2011

Union Bank, N.A.
Participating Index Linked 03/31/2014

Wells Fargo Bank, N.A.
Participating Index Linked 03/31/2014

JP Morgan Chase Bank, N.A.
Participating Index Linked 03/31/2015

Union Bank, N.A.
Participating Index Linked 03/31/2015

JP Morgan Chase Bank, N.A.
Participating Index Linked 03/31/2016

Union Bank, N.A.
Participating Index Linked 03/31/2016

Wells Fargo Bank, N.A.
Participating Index Linked 03/31/2016

Harris National Association
Callable Index Linked 03/31/2015

Wells Fargo Bank, N.A.
Yield Curve Steepener 03/19/2020

JP Morgan Chase Bank, N.A.
Yield Curve Steepener 03/31/2025

JP Morgan Chase Bank, N.A.
Range 03/26/2025

Union Bank, N.A.
Cliquet 09/30/2013

JP Morgan Chase Bank, N.A.
Cliquet 03/31/2016

Wells Fargo Bank, N.A.
Cliquet 03/31/2016

JP Morgan Chase Bank, N.A.
Income Generator 03/31/2016

Bank of America Corp.
CPI Linked 03/19/2020

Goldman Sachs Group, Inc.
Yield Curve Steepener 03/31/2025

JP Morgan Chase
Step-Up Callable 03/26/2020

Bank of Montreal
Step-Up Callable 03/30/2022

Bank of America Corp.
Step-Up Callable 03/12/2025

Goldman Sachs Group, Inc.
Step-Up Callable 03/24/2025

JP Morgan Chase
Buffered Return Enhanced Note 03/30/2012

Goldman Sachs Group, Inc.
Buffered Return Enhanced Note 09/30/2011

JP Morgan Chase
Contingent Review 09/30/2011

Goldman Sachs Bank USA
Participating Index Linked 10/01/2015

JP Morgan Chase Bank, N.A.
Participating Index Linked 03/31/2014

JP Morgan Chase Bank, N.A.
Income Generator 03/28/2013

JP Morgan Chase
Buffered Return Enhanced Note 09/30/2011

*Please see important disclaimers regarding these offerings.