Published on 3/29/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $16.42 million buffered performance notes linked to index, fund basket
By Toni Weeks
San Diego, March 29 - HSBC USA Inc. priced $16.42 million 0% buffered performance securities due Sept. 30, 2014 linked to a basket of two indexes and an exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying basket components are the S&P 500 index, with a 33.34% weight, the iShares MSCI Emerging Markets index fund, with a 33.33% weight, and the Euro Stoxx 50 index, with a 33.33% weight.
The payout at maturity will be par of $10.00 plus any basket gain. Investors will receive par if the basket falls by up to 15% and will lose 1% for every 1% decline beyond 15%.
HSBC Securities (USA) Inc. is the agent. It will use its fees to pay a selling concession to Morgan Stanley Smith Barney LLC.
Issuer: | HSBC USA Inc.
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Issue: | Buffered performance securities
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Underlying components: | S&P 500 index, weighted at 33.34%, iShares MSCI Emerging Markets index fund, weighted at 33.33%, Euro Stoxx 50 index, weighted at 33.33%
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Amount: | $16,418,840
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Maturity date: | Sept. 30, 2014
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus basket gain, par if basket falls up to 15%, 1% loss for every 1% basket decline beyond 15%
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Initial values: | 1,313.80 for the S&P 500, $47.34 for Emerging Markets, 2,911.33 for Euro Stoxx
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Pricing date: | March 25
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Settlement date: | March 30
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Agent: | HSBC Securities (USA) Inc., paying selling concessions to Morgan Stanley Smith Barney LLC
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Fees: | 3%
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Cusip: | 40432R112
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