HSBC plans barrier enhanced participation notes tied to Dow, Russell

By Sarah Lizee

Olympia, Wash., Oct. 25 – HSBC USA Inc. intends to price 0% barrier enhanced participation notes due Oct. 31, 2024 linked to the lesser performing of the Dow Jones industrial average and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

If each index finishes at or above its initial level, the payout at maturity will be par plus at least 125% of the gain of the worse performing index. The exact participation rate will be set at pricing.

Investors will receive par if each index falls by no more than 50% and will be fully exposed to any losses of the worse performing index if it finishes below the 50% barrier level.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40435UZZ0) will price on Oct. 28.

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