Published on 11/20/2012 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.05 million knock-out buffer notes tied to currency basket
By Susanna Moon
Chicago, Nov. 20 - HSBC USA Inc. priced $1.05 million of 0% knock-out buffer notes due May 23, 2014 linked to a basket of four currencies, equally weighted, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying currencies are the Indian rupee, Indonesian rupiah, Korean won and Malaysian ringgit.
A knock-out event occurs if the basket falls by more than 10%.
If a knock-out event does not occur, the payout at maturity will be par plus the greater of any index gain and a contingent minimum return of 9.5%.
Otherwise, the payout will be par plus the index return, with exposure to any losses.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as placement agent.
Issuer: | HSBC USA Inc.
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Issue: | Knock-out buffer notes
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Underlying basket: | Indian rupee, Indonesian rupiah, Korean won and Malaysian ringgit, equally weighted
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Amount: | $1,047,000
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Maturity: | May 23, 2014
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If basket falls by up to 10%, par plus any gain, floor of 9.5%; otherwise, par plus return with full exposure to any losses
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Knock-out event: | If basket closes finishes below trigger level
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Initial levels: | 54.9915 for rupee, 9,626 for rupiah, 1,089.30 for won and 3.0728 for ringgit
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Pricing date: | Nov. 16
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Settlement date: | Nov. 26
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Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
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Fees: | 1.25%
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Cusip: | 40432X3M1
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