Range Accrual And Steepener Structured Notes – Risks & Loss Potential for Investors

Range accrual notes are structured debt securities that pay interest only when a reference rate—such as SOFR, a Constant Maturity Swap (CMS) rate, or an equity index—stays within a predefined range on each observation day. They are issued by major investment banks including J.P. Morgan, Citigroup, Barclays, and Morgan Stanley, and sold through broker-dealers and financial advisors to retail investors seeking yields above what traditional bonds offer.