By William Gullotti
Buffalo, N.Y., Aug. 4 – HSBC USA Inc. priced $344,000 of 0% buffered uncapped market participation securities due July 6, 2027 tied to the AI Powered US Equity Adjusted Total Return index, according to a 424B2 filing with the Securities and Exchange Commission.
The index tracks the total return of a notional portfolio of shares selected by a rules-based equity strategy powered by IBM Watson, which utilizes artificial intelligence techniques to process market signals. The index is subject to an adjustment factor of 5% per annum, accrued and deducted on a daily basis, and a monthly rebalancing fee of 0.01%. The index will only increase if the portfolio’s aggregate performance exceeds 5%.
If the index return is positive, the payout at maturity will be par plus 1.925 times the return.
Investors will receive par if the index falls by up to 20% and will lose 1% for every 1% decline in the index beyond 20%.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Buffered uncapped market participation securities
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| Underlying index: | AI Powered US Equity Adjusted Total Return index
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| Amount: | $344,000
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| Maturity: | July 6, 2027
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If index return is positive, par plus 1.925 times the return; par if index falls by up to buffer; otherwise, 1% loss for every 1% decline in index beyond 20%
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| Initial index level: | 5,311.4
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| Buffer level: | 80% of initial level
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| Pricing date: | June 30
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| Settlement date: | July 6
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.75%
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| Cusip: | 40439J6V2
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