HSBC eyes buffered uncapped market participation notes tied to basket

By Devika Patel

Knoxville, Tenn., July 21 – HSBC USA Inc. plans to price 0% buffered uncapped market participation securities due Aug. 9, 2021 linked to a basket of two exchange traded funds and three indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket components are the iShares MSCI Emerging Markets ETF with a 4% weight, the iShares MSCI EAFE ETF with a 15% weight, the S&P MidCap 400 index with an 8% weight, the Russell 2000 index with a 3% weight and the S&P 500 index with a 70% weight.

The payout at maturity will be par plus 1.17 to 1.23 times any gain in the basket. The exact participation rate will be set at pricing.

Investors will receive par if the basket falls by up to 15% and will lose 1% for every 1% decline beyond 15%.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40435FCM7) will price on Aug. 4 and settle on Aug. 9.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.