HSBC plans limited loss notes tied to AI Powered US Equity index 6

By Sarah Lizee

Olympia, Wash., April 13 – HSBC USA Inc. plans to price 0% limited loss notes with upside participation due Jan. 17, 2025 linked to the AI Powered US Equity index 6, according to an FWP filing with the Securities and Exchange Commission.

The index is a rules-based excess return index owned by EquBot Inc. that dynamically allocates exposure to a diversified portfolio of U.S. equities including reinvested dividends. It adjusts its exposure to a diversified portfolio of U.S. equities, between 0% and 150%, on each trading day with the goal of achieving a target level of risk that is equivalent to 6% volatility.

If the index return is greater than zero, the payout at maturity will be par plus 1 to 1.2 times the index return. The participation rate will be set at pricing.

If the index return is less than or equal to zero, investors will be exposed to the index’s decline, subject to a minimum payout of 90% of par.

HSBC Securities (USA) Inc. is the agent.

The notes are expected to price April 14.

The Cusip number is 40438CDJ7.

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