Bank of America note swaps protection for higher returns

Six-year Market Index Target-Term Securities link to Dow Jones Industrial Average and cap upside participation at 50–60%

Bank of America has launched the Market Index Target-Term Securities, a six-year product linked to the performance of the Dow Jones Industrial Average Index. The note is a partially protected growth product and pays a proportion of invested capital plus returns proportional to any rise in the underlying.

The product will pay at least 90% of the principal amount at maturity regardless of the performance of the underlying. Returns will equal the rise in the index - for example, if index growth at