Bank of America Contingent Income Auto-Callable Yield Notes Could Result in Investor Risk
The White Law Group is investigating potential securities claims on behalf of investors involving structured notes issued by BofA SPDR® S&P®
The product in question—Contingent Income Auto-Callable Yield Notes linked to the Least Performing of the SPDR® S&P® Biotech ETF, SPDR® S&P® Regional Banking ETF, and Technology Select Sector SPDR® Fund (CUSIP: 09709UNL8)—was issued on July 28, 2021, with a face value of $25,361,000. These notes offered high-yield income but exposed investors to significant downside risk based on ETF performance.
Details of the Investment – BofA SPDR® S&P®
Issue Date: July 28, 2021
Linked Securities:
• SPDR® S&P® Biotech ETF (XBI)
• SPDR® S&P® Regional Banking ETF (KRE)
• Technology Select Sector SPDR® Fund (XLK)
Product Type: Contingent Income Auto-Callable Yield Note
Face Value: $25,361,000
Final Payout: Based on the performance of the worst-performing ETF as of the final observation date
Payout Conditions:
? If all ETFs ? 70% of their initial values on an observation date: $1,000 + $31.25 quarterly coupon
? If any ETF < 70% and not auto-called: Principal loss based on decline of worst ETF (full downside risk)
Estimated Value at Pricing: $958.90 per $1,000 note
Coupon Rate: 1.3125% per quarter (5.25% annually)
Why Could Investors Lose Money?
- If any of the 3 ETFs fall below 70% of their starting value, investors could lose a significant portion—or all—of their principal
- No coupon is paid if the worst ETF closes below its downside threshold
- The note is automatically called if all ETFs are at or above their initial values on any call date
Risks to Consider
- Full downside exposure to the weakest-performing ETF
- Performance is based on equity indices from volatile sectors (biotech, banking, tech)
- No guarantee of coupon or return of capital
- Credit risk of Bank of America
- Not FDIC insured
FAQs – BofA SPDR® S&P®
Q: What is this note linked to?
A: The performance is based on the lowest return among three ETFs: XBI, KRE, and XLK.
Q: How do I earn income from this note?
A: A 1.3125% coupon is paid quarterly—only if all three ETFs stay above 70% of their starting value.
Q: What if the worst ETF drops below 70%?
A: No coupon is paid, and if the note is not called early, you could face a significant loss of your invested principal at maturity.
Q: Can the note be redeemed early?
A: Yes. If all three ETFs close at or above their initial values on a quarterly observation date, the note will be called and you’ll receive your principal plus the last coupon.
Q: What is the worst-case scenario?
A: You could lose your entire investment if the worst ETF drops significantly below its starting value and the note is not called.
Free Consultation
The White Law Group is reviewing claims involving these notes. If you believe you were misled or the investment was unsuitable for your risk profile, call (888) 637-5510 or visit whitesecuritieslaw.com for a free case review.
