Published on 3/5/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.4 million performance allocator notes on U.S., Europe, Asia baskets
By Sarah Lizee
Olympia, Wash., March 5 – HSBC USA Inc. priced $1.4 million of 0% of performance allocator notes due March 7, 2022 linked to three baskets of regional indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The U.S. basket consists of the S&P 500 index and the Russell 2000 index. The Europe basket consists of the Euro Stoxx 50 index and the FTSE 100 index. The Asia Pacific basket consists of the S&P/ASX 200 index and the Nikkei 225 index.
Each index will have a 50% weight within its respective basket. An allocated return of the baskets will be calculated based on the performance of all three baskets, with the best performing basket to be given a 60% weight, the second best a 30% weight and the worst a 10% weight.
If the allocated return is positive, the payout at maturity will be par plus the gain.
If the allocated return falls by up to 15%, the payout will be par.
Otherwise, investors will lose 1% for each 1% decline of the allocated return beyond 15%.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Performance allocator notes
|
| Underlying baskets: | U.S. basket, consisting of S&P 500 index and Russell 2000 index, 50% weights each; Europe basket, consisting of Euro Stoxx 50 index and FTSE 100 index, 50% weights each; Asia Pacific basket, consisting of S&P/ASX 200 index and Nikkei 225 index, 50% weights each
|
| Amount: | $1,404,000
|
| Maturity: | March 7, 2022
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If allocated return is positive, par plus the gain; if allocated return is at least negative 15%, par; otherwise, 1% loss for each 1% beyond 15%
|
| Allocated return: | Composite return of underlying baskets, based on their performance, with 60% weight for best performing basket, 30% for second best basket, 10% for worst basket
|
| Initial levels: | 2,784.49 for S&P, 1,575.549 for Russell, 3,298.26 for Stoxx, 7,074.73 for FTSE, 6,168.992 for S&P/ASX and 21,385.16 for Nikkei
|
| Pricing date: | Feb. 28
|
| Settlement date: | March 5
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
| Cusip: | 40435UEX8
|
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