HSBC plans trigger performance securities tied to Vanguard FTSE EM ETF

By Marisa Wong

Madison, Wis., Nov. 6 – HSBC USA Inc. plans to price 0% trigger performance securities due Nov. 30, 2018 linked to the Vanguard FTSE Emerging Markets exchange-traded fund, according to an FWP with the Securities and Exchange Commission.

If the fund return is positive, the payout at maturity will be par of $10 plus 135% to 145% of the gain, with the exact participation rate to be set at pricing.

If the fund return is zero or negative but the final fund share price is greater than or equal to the trigger price, 75% of the initial price, the payout will be par. If the final price is less than the trigger price, investors will have full exposure to the fund’s decline.

HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.

The notes will price on Nov. 24 and settle on Nov. 28.

The Cusip number is 40434D129.

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