HSBC plans buffered return enhanced notes on tech fund

By Emma Trincal

New York, Oct. 1 – HSBC USA Inc. plans to price 0% buffered return enhanced notes due Oct. 28, 2022 linked to the Technology Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

If the final ETF return is positive, the payout at maturity will be par plus 2 times the gain, capped at par plus at least 30.6%. The exact cap will be set at pricing.

If the final level of the ETF declines by up to 10%, the payout will be par. Investors will lose 1.1111% for each 1% decline beyond 10%.

The final level will be the average of the ETF closing prices of the five trading days preceding the maturity date.

JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.

The notes will price on Oct. 27 and settle on Oct. 30.

The Cusip number is 40438CXG1.

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