By Kiku Steinfeld
Chicago, Jan. 17 – HSBC USA Inc. sold $30,000 of 0% buffered uncapped market participation securities due Dec. 22, 2026 tied to the AI Powered US Equity Adjusted Total Return index, according to a 424B2 filing with the Securities and Exchange Commission.
The index tracks the total return of a notional portfolio of shares selected by a rules-based equity strategy powered by IBM Watson, which utilizes artificial intelligence techniques to process market signals. The index is subject to an adjustment factor of 5% per annum, accrued and deducted on a daily basis, and a monthly rebalancing fee of 0.01%. The index will only increase if the portfolio’s aggregate performance exceeds 5%.
The payout at maturity will be par plus 1.9 times any index gain.
Investors will receive par if the index falls by up to 20% and will lose 1% for each 1% decline beyond 20%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered uncapped market participation securities
|
| Underlying index: | AI Powered US Equity Adjusted Total Return
|
| Amount: | $30,000
|
| Maturity: | Dec. 22, 2026
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 1.9 times any index gain; par if index falls by up to 20%; 1% loss for each 1% decline beyond 20%
|
| Initial level: | 6,800.25
|
| Buffer level: | 80% of initial level
|
| Pricing date: | Dec. 17
|
| Settlement date: | Dec. 22
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40439JUB9
|
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