HSBC plans barrier leveraged tracker notes linked to fund basket

By Jennifer Chiou

New York, Nov. 14 – HSBC USA Inc. plans to price 0% barrier leveraged tracker notes due November 2017 linked to an equally weighted basket of exchange-traded funds, according to an FWP with the Securities and Exchange Commission.

The basket consists of the WisdomTree India Earnings Fund, the iShares MSCI Mexico Capped ETF and the iShares China Large-Cap ETF.

If the basket return is greater than zero, the payout at maturity will be par plus at 150% of the return, with a maximum return of at least 40%. The exact cap will be set at pricing.

Investors will receive par if the basket falls by 15% or less and will be fully exposed to the ETF’s decline from its initial level if it falls by more than 15%.

The notes (Cusip: 40433BTV0) will price and settle in November.

HSBC Securities (USA) Inc. is the underwriter.

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