HSBC plans trigger return optimization securities tied to fund basket

By Susanna Moon

Chicago, Jan. 3 - HSBC USA Inc. plans to price 0% trigger return optimization securities due Jan. 29, 2016 linked to a basket of funds, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the SPDR S&P 500 exchange-traded fund trust with a 40% weight, the iShares MSCI EAFE index fund with a 40% weight and the iShares MSCI Emerging Markets index fund with a 20% weight.

The payout at maturity will be par plus 1.5 times any basket gain, up to a maximum return of 32% to 38%.

If the basket finishes at or above the 70% trigger level, the payout will be par.

Otherwise, investors will be fully exposed to any losses.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.

The notes will price on Jan. 28 and settle on Jan. 31.

The Cusip number is 40433T463.

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