HSBC plans contingent income autocallables on Russell 2000, S&P 500

By Devika Patel

Knoxville, Tenn., Nov. 29 – HSBC USA Inc. plans to price contingent income autocallable securities due Dec. 14, 2026 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to an FWP filed with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon if each index closes at or above its coupon barrier level, 60% of its initial level, on the determination date for that month. The contingent interest rate is expected to be at least 7.13% per year and will be set at pricing.

The notes will be automatically called at par of $10 plus the contingent coupon if each index closes at or above its initial level on Dec. 9, 2021, Dec. 9, 2022, Dec. 11, 2023, Dec. 9, 2024 or Dec. 9, 2025.

If each index finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final contingent coupon, if applicable. If the final level of any index is less than its downside threshold level, investors will lose 1% for each 1% decline of the lesser-performing index.

HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.

The notes (Cusip: 40433UA48) will price on Dec. 9 and settle on Dec. 14.

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