HSBC plans seven-year leveraged performance notes on HSBC Vantage5

By Marisa Wong

Morgantown, W.Va., June 26 – HSBC USA Inc. plans to price 0% leveraged performance securities due June 28, 2024 linked to the HSBC Vantage5 Index (USD) Excess Return, according to an FWP with the Securities and Exchange Commission.

The payout at maturity will be par plus at least 2.6 times any index gain, with the exact participation rate to be set at pricing. If the index falls, the payout will be par.

The index strategy dynamically allocates its weightings each month to a basket of 13 exchange-traded funds and cash, aiming to deliver a volatility of 5%. The strategy uses caps on single assets as well as group caps on asset classes to maintain diversification.

The excess return index reflects the return of the selected portfolio in excess of the ICE Libor USD three-month interest rate and is subject to an index fee of 0.85% per year, deducted daily.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on June 27.

The Cusip number is 40433U6P6.

© 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.