Goldman prices $21.47 million dollar/euro notes; HSBC readies PLUS linked to oil, gas ETF

By Sheri Kasprzak

New York, Oct. 7 – Heading up the day’s pricing action, Goldman Sachs Group Inc. offered $21.47 million of zero-coupon leveraged currency-linked notes tied to the U.S. dollar relative to the euro, said a filing with the Securities and Exchange Commission.

Payout at maturity will be par plus 1.36 times any currency gain up to a maximum payout of $2,360 per $1,000 principal of notes. Investors share in any losses if the currency return is negative with a minimum payout of zero.

The currency return is positive if the final exchange rate is less than the initial exchange rate, meaning it will take fewer dollars to purchase one euro at the final exchange rate compared to the initial rate.

Goldman Sachs & Co. is the underwriter for the deal

HSBC sets PLUS

Looking to upcoming deals, HSBC USA Inc. is set to price zero-coupon Performance Leveraged Upside Securities linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund.

The PLUS pay par of $10 plus 300% of the fund return, subject to a maximum return of 37%, if the final share price is greater than the initial share price. If the final share price is less than the initial share price, investors will have one-to-one exposure to the decline.

The securities are due Jan. 20, 2017.

As of Sept. 30, the ETF has lost 13.73% on a monthly basis. Quarter-to-date, the fund is down 29.32%, and year-to-date, the fund has lost 30.49%.

Pricing is scheduled for Oct. 16.

HSBC Securities (USA) Inc. is the agent for the deal with distribution through Morgan Stanley Wealth Management.

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