Published on 2/26/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $889,000 dual directional buffered notes on S&P, Russell
By Kiku Steinfeld
Chicago, Feb. 27 – HSBC USA Inc. priced $889,000 of 0% dual directional buffered notes due May 28, 2024 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index finishes above its initial level, the payout at maturity will be par plus 1.1 times the return of the least performing index capped at 37%.
If any index falls but none finish below the 90% buffer level, the payout will be par plus the absolute value of the return of the worst performing index.
Otherwise, investors will lose 1% for each 1% decline of the worst performer beyond 10%.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Dual directional buffered notes
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Underlying indexes: | S&P 500 index, Russell 2000 index
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Amount: | $889,000
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Maturity: | May 28, 2024
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If each index gains, par plus 1.1 times gain of least performing index, subject to a maximum payout of par plus 37%; if any index falls but none fall by more than 10%, par plus the absolute value of return of worst performer; otherwise, 1% loss for each 1% decline of worst performer below 10%
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Initial levels: | 3,949.94 for S&P, 1,839.141 for Russell
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Buffer levels: | 90% of initial levels
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Pricing date: | Nov. 21, 2022
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Settlement date: | Nov. 25, 2022
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.5%
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Cusip: | 40441XUQ1
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