Published on 3/25/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.92 million leveraged buffered notes on low-volatility ETF
By Marisa Wong
Madison, Wis., March 25 – HSBC USA Inc. priced $1.92 million of 0% leveraged buffered uncapped market participation securities due March 26, 2020 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 125% of the ETF return. Investors will receive par if the ETF falls by 15% or less and will lose 1% for every 1% that the ETF declines beyond 15%.
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: | $1,923,000
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Maturity: | March 26, 2020
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 125% of any ETF gain; par if ETF falls by up to 15%; 1% loss for every 1% that ETF declines beyond 15%
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Initial share price: | $38.54
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Pricing date: | March 23
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Settlement date: | March 26
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40433BE20
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