HSBC plans to price income opportunity securities linked to six ETFs

By Angela McDaniels

Tacoma, Wash., Nov. 4 - HSBC USA Inc. plans to price semiannual income opportunity securities due Nov. 24, 2014 linked to a basket of exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.

The basket includes the iShares MSCI Emerging Markets index fund, Market Vectors Gold Miners ETF, iShares Dow Jones U.S. Real Estate index fund, PowerShares QQQ trust, series 1, Energy Select Sector SPDR fund and Financial Select Sector SPDR fund.

The notes will pay a coupon in May and November of each year equal to the average of the ETFs' returns, subject to a floor of zero. The return of each ETF will be subject to a cap of 3% to 4% that will be set at pricing.

The payout at maturity will be par.

The notes will price Nov. 19 and settle Nov. 24.

HSBC Securities (USA) Inc. is the agent.

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