Published on 10/11/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $7.89 million barrier capped market participation notes on mixed basket
By William Gullotti
Buffalo, N.Y., Oct. 12 – HSBC USA Inc. priced $7.89 million of 0% barrier capped market participation securities due Oct. 2, 2023 linked to a weighted basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index with a 40% weight, the iShares MSCI EAFE ETF with a 30% weight, the S&P MidCap 400 index with a 20% weight and the Russell 2000 index with a 10% weight.
If the basket return is positive, the payout at maturity will be par plus the basket return, capped at par plus 26%.
Investors will receive par if the basket falls by up to 20%.
Otherwise, investors will be fully exposed to the basket’s decline from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Barrier capped market participation securities
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Underlying assets: | S&P 500 index (40% weight), iShares MSCI EAFE ETF (30% weight), S&P MidCap 400 index (20% weight), Russell 2000 (10% weight)
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Amount: | $7,885,000
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Maturity: | Oct. 2, 2023
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If return of the basket is positive, par plus the basket return capped at 26%; par if the basket falls by up to 20%; otherwise, full exposure to the basket’s decline from its initial level
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Initial levels: | 4,443.11 for S&P 500, $80.25 for ETF, 2,723.45 for S&P MidCap, 2,281.003 for Russell
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Barrier levels: | 80% of initial basket level
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Pricing date: | Sept. 27
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Settlement date: | Sept. 30
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.65%
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Cusip: | 40439JLS2
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