Published on 3/20/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.81 million barrier notes tied to peso vs. euro
By Toni Weeks
San Luis Obispo, Calif., March 20 – HSBC USA Inc. priced $1.81 million of 0% barrier notes with step-up digital return due April 6, 2016 linked to the Mexican peso relative to the euro, according to a 424B2 filing with the Securities and Exchange Commission.
If the currency return is greater than 4%, the payout at maturity will be $1,194 per $1,000 principal amount of notes.
If the currency return is positive but less than or equal to 4%, the payout will be $1,040 per $1,000 principal amount.
If the currency return is zero or negative but greater than or equal to negative 10%, the payout will be par.
Otherwise, investors will be fully exposed to losses.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as agent.
Issuer: | HSBC USA Inc.
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Issue: | Barrier notes with step-up digital return
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Underlying currency: | Mexican peso relative to euro
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Amount: | $1,807,000
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Maturity: | April 6, 2016
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If currency return is greater than 4%, $1,194 per $1,000 principal amount; if currency return is positive but less than or equal to 4%, $1,040 per $1,000 principal amount; if currency return is zero or negative but equal to or greater than negative 10%, par; otherwise, full exposure to losses
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Initial spot rate: | 16.4248
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Pricing date: | March 18
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Settlement date: | March 23
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Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as agent
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Fees: | 1%
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Cusip: | 40433BJ90
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