HSBC plans performance securities with contingent protection linked to MSCI Emerging Markets

By Susanna Moon

Chicago, Jan. 11 - HSBC USA Inc. plans to price 0% performance securities with contingent protection due Jan. 21, 2011 linked to the MSCI Emerging Markets index, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus any gain on the index times a participation rate that is expected to be 110%.

If the final index level is less than the initial level but the index does not close below its trigger level - 25% of the initial level - during the life of the notes, the payout will be par.

Beyond a 25% drop, investors will lose 1% for each 1% decline in the index.

The notes are expected to price on Jan. 15 and settle on Jan. 18.

UBS Financial Services Inc. and HSBC USA Inc. will be the underwriters.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.