HSBC Structured Investments provide an alternative or complement to traditional long-only investments, and can offer unique risk-return profiles to address investment objectives, such as risk management, periodic income, and the potential for enhanced returns.

New Tools for a New World

In today's dynamic and ever-changing financial markets, investors face a growing number of challenges in achieving their investment objectives.

How do you successfully:

Manage risk Generate yield Gain access to new markets Diversify your portfolio

Structured Investments can address these common wealth management concerns, helping you stay engaged in the markets and keeping your portfolio working for you.

Within this site you'll find details of past HSBC offerings as well as useful resources to help you better understand the many investment opportunities available to you, how various products work and the risks related to various products.

What are Structured Investments?

A large and growing market Issued in the form of Certificates of Deposit and registered notes Enhancements to a traditional asset allocation
Over USD47 billion in issuance in the U.S. in 2013, and over USD208 billion in issuance since 2010.

Source: Structured Retail Products, February 2014

Forego the interest payment on a traditional bond in exchange for a market linked return Use them as a complement or alternative to traditional stock and bond holdings

Why use Structured Investments?

Structured Investments allow you to access the potential of the markets in a way that suits you.

Yield enhancement Risk management Potential outperformance
Yield enhancement Risk management Potential outperformance
  • Potential to earn above-market interest payment in a low interest environment, as compared to traditional fixed income investments
  • Explore new asset classes with varying levels of minimum repayment, subject to issuer credit risk
  • Used to express bullish, bearish, or range-bound views
  • Tactical
Examples
A depositor, frustrated with the low yields on traditional CDs, seeks the potential to earn a higher return while getting the FDIC protection offered by a CD. He purchases a Market-Linked CD tied to a broad US equity index that provides a small minimum interest payment each year as well as the potential for a larger payment at maturity based on the performance of an underlying index.

Like a traditional CD, it will repay the original amount invested at maturity, subject to issuer credit risk, and is eligible for FDIC insurance up to statutory limits. Redemption prior to maturity may result in loss of principal.
A retiree who is generally bullish on international equity markets but concerned about potential loss of principal purchases a Note linked to a basket of global equity indices.

At maturity, the Note provides for repayment of principal, subject to issuer credit risk, as well as degree of upside participation in the underlying basket of indices. Redemption prior to maturity may result in loss of principal. Index-Linked Notes are senior unsecured debt obligations of the issuer, HSBC USA Inc.
An investor is interested in participating in the potential growth of emerging economies but is also concerned about entering into new and unfamiliar markets without any downside protection.

He purchases a Buffered Accelerated Market Participation Security linked to a broad emerging markets equity index that provides for a degree of downside protection and also leveraged upside participation, subject to a maximum return cap and the credit risk of the issuer. Redemption prior to maturity may result in loss of principal. Index-Linked Notes are senior unsecured debt obligations of the issuer, HSBC USA Inc.

When choosing an issuer, size and strength matter

With assets totalling USD2.671 trillion as of December 31 2013, HSBC is one of the world's largest banking and financial services organizations and its truly international network of approximately 6,300 offices spans 75 countries and territories across the globe.

Market Capitalization in USD billions HSBC's global presence

Market Capitalisation in USD billions

HSBC's global presence

Source: Bloomberg, As of December 2013

HSBC in the US

HSBC structured investments issued in the U.S. are backed by either HSBC Bank USA, N.A. or HSBC USA Inc., both of which are wholly owned subsidiaries of HSBC Holdings plc and have the following credit ratings*:

S&P HSBC Bank USA, N.A. HSBC USA Inc
Long Term Local Issuer Credit Rating AA- A+
Fitch HSBC Bank USA, N.A. HSBC USA Inc
Long Term Bank Deposits Rating AA- n/a
Senior Unsecured Debt Rating AA- AA-
Moody's HSBC Bank USA, N.A. HSBC USA Inc
Issuer Rating A1 n/a
Long Term Bank Deposits Rating A1 n/a
Senior Unsecured Debt Rating A1 A2

Source: Bloomberg, as of February 2014

*A credit rating reflects the creditworthiness of the respective entity and is not indicative of the market risk associated with any investment nor is it a recommendation to buy, sell or hold any investment, and it may be subject to revision or withdrawal at any time by the assigning rating organization. Each rating should be evaluated independently of any other rating.

HSBC Structured Investments Team

With an emphasis on superb client service, HSBC's Structured Investment platform is built on a multi-asset class offering (equities, FX, rates, and precious metals), and a focus on leveraging HSBC's strong and unique global reach into domestic, international, and emerging markets.

Our one-stop-shop approach means that our large team of experienced sales professionals will work with you to help you understand the benefits and risks of our offerings – offerings that span across asset classes and come in the form of vehicles like: Certificates of Deposit, Registered Notes, or Medium Term Notes.

Risks Related to Investing in Structured Investments

Investing in our Structured Investments involves risks. You should consider carefully the risks and all of the information contained in or incorporated by reference in the relevant offering documents for the Structured Investments before deciding whether to purchase any Structured Investment. In addition, you should carefully consider, among other things, the matters discussed under 'Risk Factors' in HSBC USA Inc.'s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and in other documents that it subsequently files with the SEC.

Advisor Center

Dedicated to Helping You Build Your Business

Providing you with resources to complement your investment practice and help you answer your clients' questions. You will find:

  • HSBC Performance Reports
  • HSBC Previous Offerings
  • Insights Center with straight-forward educational content

Advisor Center is only available for investment professionals.

Performance Sheets

Please click on the link below to access HSBC Performance Sheets.

Performance Sheets are only available for investment professionals.

For more information, please contact us at 1-855-472-2967.

Answer Your Clients' Questions

Today's investors use new tools to stay engaged in the market

Learn more about how various types of Structured Investments may be used to pursue objectives such as risk management, enhanced income, or efficient access.

Brochures

Buffered Strategies brochure (PDF 838KBKB)

Buffered Strategies Brochure

Market Linked CD Brochure (PDF 2MB)

Market Linked CD Brochure

HSBC Market-Linked CDs provide investors with investment strategies to address portfolio risk and diversification.

The Right Bank (PDF 976KB)

The Right Bank

Read our new brochure about HSBC in the United States. Our brochure offers an overview of HSBC's 150 years in the United States and our continued focus on maintaining strong retail deposits.

Links

Primer on FDIC Insurance

Like traditional deposits, Market-Linked CDs are FDIC insured up to applicable limits. Please note that registered notes are not FDIC insured.

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For the Base Disclosure Statement for CD offerings, please call us at 1-855-472-2967.

Find out more about Structured Investments in the United States