HSBC plans trigger return optimization securities tied to fund basket

By Marisa Wong

Madison, Wis., March 26 – HSBC USA Inc. plans to price 0% trigger return optimization securities due March 29, 2018 linked to a global fund basket, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the iShares MSCI Emerging Markets index fund with a 15% weight, the WisdomTree India Earnings fund with a 5% weight, the iShares MSCI Mexico Capped ETF with a 5% weight, the SPDR Euro Stoxx 50 ETF with a 25% weight, the iShares Russell 2000 ETF with a 10% weight, the S&P Midcap 400 ETF trust with a 10% weight, the Energy Select Sector SPDR fund with a 10% weight, the Financial Select Sector SPDR fund with a 10% weight and the Technology Select Sector SPDR fund with a 10% weight.

The payout at maturity will be par plus 1.5 times any gain in the basket, up to a maximum return of 37%.

If the basket finishes at or above the 80% trigger level, the payout will be par.

Otherwise, investors will be fully exposed to the basket decline.

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

The notes will price March 27 and settle March 31.

The Cusip number is 40434G742.

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