Published on 3/29/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $336,000 dual directional barrier notes on three funds
By Kiku Steinfeld
Chicago, March 29 – HSBC USA Inc. priced $336,000 of 0% dual directional barrier notes due March 18, 2024 linked to the least performing of the Utilities Select Sector SPDR fund, the Technology Select Sector SPDR fund and the Industrial Select Sector SPDR fund, according to a 424B2 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 2.35 times the return of the worst performing index.
If either index falls but neither finishes below the 70% knock-in level, the payout will be par plus the absolute value of the return of the worst performing index.
Otherwise, investors will lose 1% for each 1% decline of the worst performing index.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Dual directional barrier notes
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Underlying indexes: | Utilities Select Sector SPDR fund, Technology Select Sector SPDR fund and Industrial Select Sector SPDR fund
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Amount: | $336,000
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Maturity: | March 18, 2024
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If each index gains, par plus 2.35 times gain of worst performing index; if either index falls but neither falls by more than 30%, par plus absolute value of return of worst performing index; otherwise, 1% loss for each 1% decline of worst performing index
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Initial levels: | $62.41 for Utilities, $131.41 for Technology, $96.77for Industrial
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Knock-in levels: | 70% of initial levels
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Pricing date: | March 12
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Settlement date: | March 17
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.75%
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Cusip: | 40438C3N9
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