Published on 7/29/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.33 million leveraged buffered notes linked to low volatility ETF
By Angela McDaniels
Tacoma, Wash., July 29 – HSBC USA Inc. priced $2.33 million of 0% leveraged buffered uncapped market participation securities due July 29, 2019 linked to the PowerShares S&P 500 Low Volatility Portfolio exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the ETF return is greater than zero, the payout at maturity will be par plus 110% of the ETF return. Investors will receive par if the ETF falls by 20% or less and will lose 1% for every 1% that the ETF declines beyond 20%.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Leveraged buffered uncapped market participation securities
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Underlying ETF: | PowerShares S&P 500 Low Volatility Portfolio ETF
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Amount: | $2,327,000
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Maturity date: | July 29, 2019
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If ETF return is greater than zero, par plus 110% of ETF return; par if ETF falls by 20% or less; 1% loss for every 1% that ETF declines beyond 20%
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Initial share price: | $35.29
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Pricing date: | July 24
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Settlement date: | July 29
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40433BGM4
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