Published on 3/2/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.13 million barrier capped market participation notes on Dow, Nasdaq
By Kiku Steinfeld
Chicago, March 2 – HSBC USA Inc. priced $1.13 million of 0% barrier capped market participation securities due Nov. 25, 2024 tied to the Dow Jones industrial average and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the return of each index is positive, the payout at maturity will be par plus three times the return of the lesser performing index, capped at par plus 38.5%.
Investors will receive par if either index falls by up to 20%.
Otherwise, investors will be fully exposed to the lesser performing index’s decline from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier capped market participation securities
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| Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index
|
| Amount: | $1,134,000
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| Maturity: | Nov. 25, 2024
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| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If return of each index is positive, par plus three times the return of the lesser performing index, capped at par plus 38.5%; par if either index falls by up to 20%; otherwise, full exposure to the lesser performing index’s decline from its initial level
|
| Initial levels: | 33,700.28 for Dow, 11,553.45 for Nasdaq
|
| Barrier levels: | 80% of initial levels
|
| Pricing date: | Nov. 21, 2022
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| Settlement date: | Nov. 25, 2022
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
| Cusip: | 40441XUN8
|
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