By Angela McDaniels
Tacoma, Wash., April 27- HSBC USA Inc. priced $700,00 of 0% buffered performance plus securities due April 30, 2015 linked to the S&P 500 Low Volatility index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is greater than or equal to zero, the payout at maturity will be par plus the greater of the index return and 20%. Investors will receive par if the index declines by 10% or less and will lose 1% for every 1% that the index declines beyond 10%.
The S&P 500 Low Volatility index is made up of the 100 least-volatile stocks over the previous year in the S&P 500 index. The volatilities of all S&P 500 constituents are calculated using daily standard deviation data for roughly the past year, and the weight for each index constituent is set inversely proportional to its volatility (higher weightings are assigned to the least volatile stocks). The index is rebalanced in February May, August and November of each year
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered performance plus securities
|
| Underlying index: | S&P 500
|
| Amount: | $700,000
|
| Maturity date: | April 30, 2015
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus greater of 20% and index return if index return is greater than or equal to zero; par if index falls by up to 10%; 1% loss for every 1% that index declines beyond 10%
|
| Initial index level: | 4,309.91
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 4042K1F73
|
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