HSBC plans barrier leveraged tracker notes on S&P 500 Low Vol ETF

By Jennifer Chiou

New York, Sept. 3 – HSBC USA Inc. plans to price 0% barrier leveraged tracker notes due September 2018 linked to the PowerShares S&P 500 Low Volatility Portfolio exchange-traded fund, according to an FWP with the Securities and Exchange Commission.

If the fund return is greater than zero, the payout at maturity will be par plus at least 140% of the fund return. The exact upside participation rate will be set at pricing.

Investors will receive par if the fund falls by up to 20% and will be fully exposed to losses from the initial level if the fund falls below the 80% barrier level.

The notes (Cusip: 40433BNJ3) will price and settle in September.

HSBC Securities (USA) Inc. is the underwriter.

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