Summary by Moomoo AI
Citigroup Global Markets Holdings Inc., a subsidiary of Citigroup Inc., has issued a new financial product called Trigger Jump Securities, which are linked to the performance of Microsoft Corporation's common stock. These unsecured debt securities, which do not pay interest and offer no fixed principal repayment at maturity, provide a payment at maturity that varies based on Microsoft's stock performance. The securities offer a fixed return if Microsoft's stock price does not fall below a certain threshold, but expose investors to the full downside if the stock depreciates by more than 20% from the initial share price. The securities, with an aggregate principal amount of $7,835,000, were priced on April 24, 2024, and are due on April 29, 2026. Citigroup Inc. guarantees all payments due on the securities, which are not listed on any securities exchange, thus may have limited liquidity. The offering includes a potential conflict of interest since Citigroup Global Markets Inc., an affiliate of the issuer, is acting as the underwriter and may profit from hedging activities related to the offering.