Comments on: JP Morgan Asia Confidence Notes

By: lioninvestor

lioninvestor — Tue, 20 Oct 2009 14:09:30 +0000

Hi David,

The high chance in my post is with reference to what happens to the principal after scenario 4 occurred.

IF scenario 4 happens, the principal will be more or less wiped out.

As to what are the chances of scenario 4 occurring, I can’t really give you any numbers now.

By: david goo

david goo — Tue, 20 Oct 2009 13:37:06 +0000

so sorry!? Somthing happens before I finished my reply, so let me continue,,: ) I happen to share Chee’s comment, so base on his comment what would your high chance prediction be. More over I can only think of the only high chance of losing my principal is putting with the Singapore pools. Plse advise thx
wmt rgds

By: david goo

david goo — Tue, 20 Oct 2009 13:23:47 +0000

Hi,

I would consider selected single premium insurance products as low risk as well. The lowest risk free product would be Singapore governement bonds.

By: chee

chee — Tue, 20 Oct 2009 02:53:18 +0000

Hi Lioninvestor ,

For JPMorgan AsiaConfidence Note-Series1, so far there is no Trigger event and the worst is already over i.e. it is not likely to have Trigger event by end of 2010.
Hence, most likely , the Scenario 2 will be applied.

rgds

Chee

By: lioninvestor

lioninvestor — Mon, 19 Oct 2009 23:24:21 +0000

Hi David,

I am referring to the case of scenario 4 (refer to page 11).

In that event, the investor will end up with only the coupon payments and very little (almost nil) of his capital.

So that is the worst case scenario for this product.

I would consider selected single premium insurance products as low risk as well. The lowest risk free product would be Singapore governement bonds.