HSBC plans barrier leveraged tracker notes tied to low volatility ETF

By Angela McDaniels

Tacoma, Wash., Oct. 22 – HSBC USA Inc. plans to price 0% barrier leveraged tracker notes due October 2016 linked to the PowerShares S&P 500 Low Volatility Portfolio exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

If the ETF return is greater than zero, the payout at maturity will be par plus at least 115% of the ETF return. The exact upside participation rate will be set at pricing. Investors will receive par if the ETF falls by 10% or less and will be fully exposed to the ETF’s decline from its initial level if it falls by more than 10%.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price and settle in October.

The Cusip number is 40433BRN0.

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