BofA Finance Launches Auto-Callable Notes Linked to MU, AMZN, LLY with 2029 Maturity
π BofA Finance LLC filed a prospectus for auto-callable notes linked to AMZN, Micron, and Eli Lilly maturing in October 2029.
π The securities utilize a 'worst-of' structure where performance is determined by the lowest-performing stock among the three underlying assets.
π° A minimum contingent coupon rate of 18.65% applies if the lowest-performing stock stays above 60% of its starting price.
π Monthly calculation days occur on the 23rd of each month from November 2026 through October 2029.
β οΈ Investors face potential losses exceeding 40% or total principal loss if the lowest-performing stock drops below its threshold price at maturity.
π Bank of America Corporation provides a full and unconditional guarantee for these market-linked securities issued by BofA Finance LLC.
- AMZN is included in a high-yield auto-callable note offering a minimum contingent coupon rate of 18.65% annually, providing potential income to investors if the stock performs well relative to peers.
- The inclusion of AMZN in this structured product indicates continued institutional interest and liquidity for its common stock as an underlying asset for complex derivatives.
- AMZN faces downside risk exposure in this 'worst-of' structure, where the note's value is tied to the lowest-performing stock among AMZN, Micron, and Eli Lilly.
- Investors holding these notes linked to AMZN could face losses exceeding 40% or total loss of principal if AMZN becomes the lowest performer and falls below its threshold price by maturity.