Half the loss
JP Morgan launched a two-year structured product based on property, homebuilding and financial institutions not long before the bankruptcy of Lehman Brothers. Capital was, of course, lost, but the cost would have been far greater on a direct investment
This two-year investment product, linked to iShares Dow Jones US Real Estate Index, SPDR S&P Homebuilders and Financial Select Sector SPDR Fund, was first reviewed in Structured Products in May 2008. The respective weightings were 60%, 20% and 20%. The product offered potential accelerated returns from a 200% market-participation rate, which was subject to 42% maximum return in addition to the principal amount. The principal was not protected at maturity if the basket of funds fell by more than
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