Published on 5/9/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.76 million buffered jump securities linked to ETF, indexes
By Angela McDaniels
Tacoma, Wash., May 9 - HSBC USA Inc. priced $3.76 million of 0% buffered jump securities due Nov. 14, 2016 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 Euro Stoxx 50 index with a 50% weight, the S&P 500 index with a 30% weight, the Russell 2000 index with a 10% weight and the iShares MSCI Emerging Markets ETF with a 10% weight.
If the basket finishes above its initial level, the payout at maturity will be par of $10 plus the greater of the basket return and 10%, subject to a maximum return of 25%. Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered jump securities
|
| Underlying basket: | Euro Stoxx 50 index (50% weight), S&P 500 index (30% weight), Russell 2000 index (10% weight) and iShares MSCI Emerging Markets ETF (10% weight)
|
| Amount: | $3,759,180
|
| Maturity: | Nov. 14, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket finishes above initial level, par plus greater of basket return and 10%, subject to maximum return of 25%; par if basket declines by 10% or less; 1% loss for every 1% that basket declines beyond 10%
|
| Initial levels: | 1,878.21 for S&P 500; 3,159.67 for Euro Stoxx 50; 1,108.549 for Russell 2000; $41.79 for iShares MSCI Emerging Markets
|
| Pricing date: | May 7
|
| Settlement date: | May 12
|
| Agent: | HSBC Securities (USA) Inc.
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.25%
|
| Cusip: | 40434C642
|
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