Published on 5/26/2011 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $914,000 of two-year CARS linked to four currencies
By Jennifer Chiou
New York, May 26 - HSBC USA Inc. priced $914,000 of 0% Currency Accelerated Return Securities due May 30, 2013 linked to a basket of currencies, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes equal weights of the Brazilian real, Australian dollar, Norwegian krone and Canadian dollar.
The payout at maturity will be par plus 160% of any basket appreciation relative to the U.S. dollar.
Investors will be exposed to any basket depreciation, subject to a minimum payout of $900 per $1,000 principal amount of notes.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Currency Accelerated Return Securities
|
| Underlying currencies: | Brazilian real, Australian dollar, Norwegian krone and Canadian dollar, equally weighted and each relative to the U.S. dollar
|
| Amount: | $914,000
|
| Maturity: | May 30, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If basket return is positive, par plus 160% of basket return; if basket return is zero or negative, par plus basket return, subject to minimum payout of $900 per $1,000 of notes
|
| Initial spot rates: | 1.6297 for real, 1.0511 for Australian dollar, 5.5746 for krone, 0.9771 for Canadian dollar
|
| Pricing date: | May 24
|
| Settlement date: | May 31
|
| Underwriters: | HSBC Securities (USA) Inc.
|
| Fees: | 2.3%
|
| Cusip: | 4042K1GR8
|
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