Published on 9/24/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $349,000 barrier enhanced participation notes on index, ETF basket
By Marisa Wong
Morgantown, W.Va., Sept. 24 – HSBC USA Inc. priced $349,000 of 0% barrier enhanced participation notes due Sept. 6, 2023 linked to a basket of three indexes and one exchange-traded fund, 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 Euro Stoxx 50 index with a 20% weight and the iShares MSCI Emerging Markets ETF with a 20% weight.
The payout at maturity will be par plus 1.4 times any basket gain.
Investors will receive par if the basket falls by up to 40% and will be fully exposed to the decline if it finishes below the 60% barrier level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier enhanced participation notes
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| Underlying basket: | S&P 500 index (40% weight), Russell 2000 index (20% weight), Euro Stoxx 50 index (20% weight) and iShares MSCI Emerging Markets ETF (20% weight)
|
| Amount: | $349,000
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| Maturity: | Sept. 6, 2023
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| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 1.4 times any basket gain; par if the lesser-performing index falls by up to 40%; full exposure to the decline if basket falls by more than 40%
|
| Initial values: | 2,901.52 for S&P, 1,740.753 for Russell, 3,392.90 for Stoxx and $43.17 for ETF
|
| Pricing date: | Aug .31
|
| Settlement date: | Sept. 6
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.625%
|
| Cusip: | 40435FV79
|
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