HSBC plans callable notes with contingent return tied to S&P, Russell

By Devika Patel

Knoxville, Tenn., Dec. 19 – HSBC USA Inc. plans to price callable notes with contingent return due June 29, 2018 linked to the PowerShares QQQ Trust, series 1 and the Financial Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 5% if each fund closes at or above its 65% trigger level on the observation date for that quarter.

The notes are callable at par on any quarterly review date.

The payout at maturity will be par plus the final coupon unless either fund closes below its 65% trigger level, in which case investors will lose 1% for each 1% decline of the worse-performing fund.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40433UF43) will price on Dec. 23 and settle on Dec. 30.

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