Published on 10/27/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $160,000 SelectInvest notes linked to indexes, ETF
By Angela McDaniels
Tacoma, Wash., Oct. 27 – HSBC USA Inc. priced $160,000 of 0% SelectInvest debt securities due Oct. 28, 2015 linked to a basket of one exchange-traded fund and three indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the S&P 500 index with a 40% weight, the Euro Stoxx 50 index with a 30% weight, the Russell 2000 index with a 20% 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 5.5%. If the basket declines by 10% or less, the payout will be par. If the basket declines by more than 10%, investors will lose 1% for every 1% that the basket return is below negative 10%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | SelectInvest debt securities
|
| Underlying basket: | S&P 500 index (40% weight), Euro Stoxx 50 index (30% weight), Russell 2000 index (20% weight) and iShares MSCI Emerging Markets ETF (10% weight)
|
| Amount: | $160,000
|
| Maturity: | Oct. 28, 2015
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket return is greater than zero, par plus basket return, subject to maximum return of 5.5%; if basket declines by 10% or less, par; otherwise, 1% loss for every 1% that basket return is below negative 10%
|
| Initial levels: | 1,950.82 for S&P 500; 3,044.30 for Euro Stoxx 50; 1,116.486 for Russell 2000; $40.73 for iShares MSCI Emerging Markets
|
| Pricing date: | Oct. 23
|
| Settlement date: | Oct. 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40433BPV4
|
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