Published on 5/19/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.28 million two-year CARS linked to four Asian currencies
By Toni Weeks
San Diego, May 19 - HSBC USA Inc. priced $1.28 million of 0% Asian Currency Accelerated Return Securities due May 23, 2013 linked to a basket of currencies, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes equal weights of the Philippine peso, the Malaysian ringgit, the Indonesian rupiah and the Singapore dollar.
The payout at maturity will be par plus 120% of any basket appreciation relative to the U.S. dollar.
Investors will be exposed to any basket depreciation, subject to a minimum payout of $900 per $1,000 principal amount of notes.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Asian Currency Accelerated Return Securities
|
| Underlying currencies: | Philippine peso, Malaysian ringgit, Indonesian rupiah, Singapore dollar, equally weighted and each relative to the dollar
|
| Amount: | $1,275,000
|
| Maturity: | May 23, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket return is positive, par plus 120% of basket return; if basket return is zero or negative, par plus basket return, subject to minimum payout of $900 per $1,000 of notes
|
| Initial spot rates: | 43.191 for peso, 3.0326 for ringgit, 8,554 for rupiah, 1.2423 for Singapore dollar
|
| Pricing date: | May 18
|
| Settlement date: | May 23
|
| Underwriters: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 4042K1HR7
|
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