HSBC to price 18-month buffered AMPS tied to SPDR S&P Homebuilders

By Toni Weeks

San Luis Obispo, Calif., Feb. 1 - HSBC USA Inc. plans to price buffered Accelerated Market Participation Securities due Aug. 28, 2014 linked to the SPDR S&P Homebuilders exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus double any fund gain, subject to a maximum return of 15% to 19%. The exact cap will be set at pricing.

Investors will receive par if the fund falls by up to 10% and will lose 1% for every 1% decline beyond 10%.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40432XAU5) will price Feb. 25 and settle Feb. 28.

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