By Jennifer Chiou
New York, May 1 - HSBC USA Inc. priced $5,996,000 of 0% currency-linked trigger jump securities due May 2, 2014 linked to a long and short currency basket, each equally weighted, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of two emerging market currencies and five developed market currencies, relative to the U.S. dollar.
The long basket consists of the Brazilian real, Australian dollar, Russian ruble and Canadian dollar, each with a 25% weight. The short basket consists of the euro, U.S. dollar and the Japanese yen, each with a 33.3333% weight.
If the basket finishes above the initial level, the payout at maturity will be par plus a fixed upside rate of 36%.
Investors will receive par if the basket falls by up to 10% and will be exposed to any losses beyond 10%.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Smith Barney LLC as distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Currency-linked trigger jump securities
|
| Underlying assets: | Long basket with Brazilian real, Australian dollar, Russian ruble and Canadian dollar, each with a 25% weight; short basket with euro, U.S. dollar and Japanese yen, each with a 33.3333% weight
|
| Amount: | $5,996,000
|
| Maturity: | May 2, 2014
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 36% if basket finishes above the initial level; par if basket declines by 10% or less; 1% loss for every 1% drop beyond 10%
|
| Initial levels: | Real at 1.8852; Australian dollar at 1.0462; ruble at 29.4333; Canadian dollar at 0.98095; euro at 1.3238 and yen at 80.375
|
| Pricing date: | April 27
|
| Settlement date: | May 2
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 4042K1E74
|
© 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.
