By Toni Weeks
San Diego, March 29 - HSBC USA Inc. priced $868,000 of 0% leveraged buffered uncapped market participation securities due April 1, 2015 linked to the S&P 500 Low Volatility index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index return is positive, the payout at maturity will be par plus 115% of the gain.
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%.
The S&P 500 Low Volatility index is made up of the 100 least-volatile stocks over the previous year in the S&P 500 index. The volatilities of all S&P 500 constituents are calculated using daily standard deviation data for roughly the past year, and the weight for each index constituent is set inversely proportional to its volatility (higher weightings are assigned to the least volatile stocks). The index is rebalanced in February May, August and November of each year.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Leveraged buffered uncapped market participation securities
|
| Underlying index: | S&P 500 Low Volatility
|
| Amount: | $868,000
|
| Maturity: | April 1, 2015
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index return positive, par plus 115% of index gain; par if index falls by up to 20%; exposure to losses beyond 20% buffer
|
| Initial level: | 4,307.81
|
| Pricing date: | March 27
|
| Settlement date: | March 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.2%
|
| Cusip: | 4042K1ZJ5
|
© 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.
