Published on 1/29/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $167,000 three-year SelectInvest notes on diversified basket
By Marisa Wong
Madison, Wis., Jan. 29 - HSBC USA Inc. priced $167,000 of 0% SelectInvest debt securities due Jan. 30, 2017 linked to a basket of indexes and exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index with a 40% weight, the Russell 2000 index with a 20% weight, the iShares MSCI EAFE exchange-traded fund with a 30% weight and the iShares MSCI Emerging Markets ETF with a 10% weight.
If the basket return is greater than zero, the payout at maturity will be par plus the basket return, subject to a maximum return of 18.5%. If the basket declines by 15% or less, the payout will be par. If the basket declines by more than 15%, investors will lose 1% for every 1% that the basket return is below negative 15%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | SelectInvest debt securities
|
| Underlying basket: | S&P 500 index (40% weight), Russell 2000 index (20% weight), iShares MSCI EAFE ETF (30% weight) and iShares MSCI Emerging Markets ETF (10% weight)
|
| Amount: | $167,000
|
| Maturity: | Jan. 30, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket return is greater than zero, par plus basket return, subject to a maximum return of 18.5%; if basket declines by 15% or less, par; if basket declines by more than 15%, investors will lose 1% for every 1% that basket return is below negative 15%
|
| Initial levels: | 1,781.56 for S&P, 1,127.73 for Russell, $38.09 for iShares EM, $64.55 for iShares EAFE
|
| Pricing date: | Jan. 27
|
| Settlement date: | Jan. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
| Cusip: | 40432XQ87
|
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