Published on 3/26/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $199,000 three-year SelectInvest notes tied to diversified equity basket
By Marisa Wong
Madison, Wis., March 26 - HSBC USA Inc. priced $199,000 of 0% SelectInvest debt securities due March 27, 2017 linked to a basket of three indexes and one exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The debt securities are referred to as Selections and are offered under HSBC's SelectInvest Program for March 2014.
The basket consists of the S&P 500 index with a 40% weight, the Russell 2000 index with a 20% weight, the Euro Stoxx 50 index with a 30% weight and the iShares MSCI Emerging Markets exchange-traded fund 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 19%. 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), Euro Stoxx 50 index (30% weight) and iShares MSCI Emerging Markets ETF (10% weight)
|
| Amount: | $199,000
|
| Maturity: | March 27, 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 19%; if basket declines by 15% or less, par; otherwise, investors will lose 1% for every 1% that basket return is below negative 15%
|
| Initial levels: | 1,857.44 for S&P, 1,178.24 for Russell, 3,052.91 for Euro Stoxx and $39.36 for EM fund
|
| Pricing date: | March 24
|
| Settlement date: | March 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
| Cusip: | 40432XV40
|
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