Published on 3/28/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $40,000 buffered market participation notes tied to basket
By Devika Patel
Knoxville, Tenn., March 28 – HSBC USA Inc. priced $40,000 of 0% buffered market participation securities due April 1, 2019 linked to a basket of two indexes and two exchange-traded funds, according to an FWP filing with the Securities and Exchange Commission.
The basket components are the S&P 500 index with a 40% weight, the Russell 2000 index with a 20% weight, the iShares MSCI EAFE exchange-traded fund with a 30% weight and the iShares MSCI Emerging Markets exchange-traded fund with a 10% weight.
The payout at maturity will be par plus any basket gain.
Investors will receive par if the basket falls by up to 13% and will lose 1% for every 1% decline beyond the buffer.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Buffered market participation securities
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Underliers: | S&P 500 index with a 40% weight, the Russell 2000 index with a 20% weight, the iShares MSCI EAFE exchange-traded fund with a 30% weight and the iShares MSCI Emerging Markets exchange-traded fund with a 10% weight
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Amount: | $40,000
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Maturity: | April 1, 2019
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus basket gain; par if basket falls by up to 13%, otherwise full exposure to declines beyond 13%
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Initial share prices: | 2,035.94 for S&P 500, 1,079.537 for Russell 2000, $56.35 for EAFE, $33.36 for Emerging Markets
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Pricing date: | March 24
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Settlement date: | March 30
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Agent: | HSBC Securities (USA) Inc.
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Fees: | None
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Cusip: | 40433UJZ0
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