HSBC plans contingent income autocallables linked to Russell, S&P 500

By Susanna Moon

Chicago, Nov. 10 – HSBC USA Inc. plans to price contingent income autocallable securities due Nov. 16, 2021 linked to the worse performing of the Russell 2000 index and the S&P 500 index, 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 8.4% if each index closes at or above its 75% coupon barrier on the determination date for that quarter.

The notes will be called at par if each index closes at or above its initial level on any determination date beginning with the fourth date.

The payout at maturity will be par unless either index finishes below its 75% downside threshold level, in which case investors will be fully exposed to any losses of the worse performing index.

HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the dealer.

The notes will price on Nov. 11 and settle on Nov. 16.

The Cusip number is 40433UZZ2.

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