HSBC plans income stream CDs tied to HSBC Vantage5 (USD) Excess Return

By Angela McDaniels

Tacoma, Wash., Sept. 11 – HSBC Bank USA, NA plans to price income stream certificates of deposit due Sept. 30, 2024 linked to the HSBC Vantage5 Index (USD) Excess Return, according to a term sheet.

Each year, the CDs will pay a coupon equal to the index return divided by the number of years elapsed since the settlement date, subject to a minimum interest rate of 0.4% per year.

The payout at maturity will be par plus the final coupon.

The index uses modern portfolio theory principles and the related concept of efficient frontier, aiming to maximize returns for a given level of risk. It has a volatility target of 5%.

HSBC Securities (USA) Inc. is the agent. Incapital LLC is distributor.

The CDs will price Sept. 25.

The Cusip number is 40434YPP6.

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