HSBC plans buffered uncapped notes on PowerShares low volatility ETF

By Tali Rackner

Norfolk, Va., Sept. 29 – HSBC USA Inc. plans to price 0% buffered uncapped market participation securities due Oct. 30, 2018 linked to the PowerShares S&P 500 Low Volatility Portfolio exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus any fund gain.

Investors will receive par if the fund falls by 11% or less and will lose 1% for every 1% decline beyond 11%. The exact buffer will be set at pricing but will be at least 11%.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price Oct. 27 and settle Oct. 30.

The estimated initial value of the notes on the pricing date is expected to be between $930 and $970 per $1,000 principal amount.

The Cusip number is 40433UAZ9.

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