HSBC Bank USA, N.A. - FatWallet

More documents

Recommendations

Info

$(AMC\256 Movie Watcher) - FatWallet$

Example 3: The securities performance generally declines over the term of the CDs. Closing Price per Reference Security on the Applicable Valuation Dates Securities Initial Share Price Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Reference Security 1 100.00 104.00 113.00 101.00 101.00 87.00 113.00 Reference Security 2 100.00 95.00 90.00 93.00 94.00 95.00 94.00 Reference Security 3 100.00 102.00 115.00 113.00 108.00 96.00 110.00 Reference Security 4 100.00 90.00 85.00 87.00 78.00 72.00 86.00 Reference Security 5 100.00 88.00 84.00 65.00 88.00 89.00 88.00 Reference Security 6 100.00 105.00 89.00 90.00 96.00 95.00 94.00 Reference Security 7 100.00 88.00 65.00 84.00 75.00 76.00 69.00 Reference Security 8 100.00 95.00 96.00 96.00 97.00 91.00 99.00 Reference Security 9 100.00 99.00 98.00 99.00 100.00 97.00 99.00 Reference Security 10 100.00 96.00 97.00 99.00 100.00 92.00 99.00 Reference Security 11 100.00 103.00 112.00 99.00 99.00 91.00 112.00 Reference Security 12 100.00 94.00 69.00 92.00 93.00 94.00 93.00 Reference Security Returns Securities Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Reference Security 1 10.00% 10.00% 10.00% 10.00% -13.00% 10.00% Reference Security 2 -5.00% -10.00% -7.00% -6.00% -5.00% -6.00% Reference Security 3 10.00% 10.00% 10.00% 10.00% -4.00% 10.00% Reference Security 4 -10.00% -15.00% -13.00% -22.00% -28.00% -14.00% Reference Security 5 -12.00% -16.00% -30.00% -12.00% -11.00% -12.00% Reference Security 6 10.00% -11.00% -10.00% -4.00% -5.00% -6.00% Reference Security 7 -12.00% -30.00% -16.00% -25.00% -24.00% -30.00% Reference Security 8 -5.00% -4.00% -4.00% -3.00% -9.00% -1.00% Reference Security 9 -1.00% -2.00% -1.00% 10.00% -3.00% -1.00% Reference Security 10 -4.00% -3.00% -1.00% 10.00% -8.00% -1.00% Reference Security 11 10.00% 10.00% -1.00% -1.00% -9.00% 10.00% Reference Security 12 -6.00% -30.00% -8.00% -7.00% -6.00% -7.00% Average of the Reference Security Returns -1.25% -7.58% -5.92% -3.33% -10.42% -4.00% Coupon Rate for the Applicable Period: 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% *Reference Security Returns highlighted in bold would otherwise be below the Floor Rate. In this example, on any Coupon Valuation Date, the average of the Reference Security Returns on each Coupon Payment Date is negative. Therefore, the Coupon Rate for those Coupon Payment Dates will be equal to zero, and on the Maturity Date, the depositor will receive only the Principal Amount. 16
Example 4: One of the securities is delisted in Year 2. Closing Price per Reference Security on the Applicable Valuation Dates Securities Initial Share Price Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Reference Security 1 100.00 80.00 0.00 0.00 0.00 0.00 0.00 Reference Security 2 100.00 105.00 111.00 113.00 113.00 113.00 126.00 Reference Security 3 100.00 108.00 113.00 115.00 116.00 116.00 114.00 Reference Security 4 100.00 110.00 104.00 87.00 95.00 110.00 110.00 Reference Security 5 100.00 108.00 112.00 114.00 118.00 122.00 147.00 Reference Security 6 100.00 105.00 108.00 92.00 94.00 100.00 132.00 Reference Security 7 100.00 109.00 111.00 112.00 115.00 112.00 128.00 Reference Security 8 100.00 107.00 110.00 111.00 99.00 105.00 102.00 Reference Security 9 100.00 110.00 117.00 118.00 120.00 117.00 117.00 Reference Security 10 100.00 107.00 115.00 81.00 92.00 110.00 91.50 Reference Security 11 100.00 99.00 94.00 87.00 90.00 102.00 112.00 Reference Security 12 100.00 104.00 110.00 114.00 112.00 112.00 125.00 Reference Security Returns Securities Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Reference Security 1 -20.00% -30.00% -30.00% -30.00% -30.00% -30.00% Reference Security 2 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% Reference Security 3 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% Reference Security 4 10.00% 10.00% -13.00% -5.00% 10.00% 10.00% Reference Security 5 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% Reference Security 6 10.00% 10.00% -8.00% -6.00% 10.00% 10.00% Reference Security 7 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% Reference Security 8 10.00% 10.00% 10.00% -1.00% 10.00% 10.00% Reference Security 9 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% Reference Security 10 10.00% 10.00% -19.00% -8.00% 10.00% -8.50% Reference Security 11 -1.00% -6.00% -13.00% -10.00% 10.00% 10.00% Reference Security 12 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% Average of the Reference Security Returns 6.58% 5.33% -1.08% 0.00% 6.67% 5.13% Coupon Rate for the Applicable Period: 6.58% 5.33% 0.00% 0.00% 6.67% 5.13% *Reference Security Returns highlighted in bold would otherwise be below the Floor Rate. In this example, one of the Reference Securities is delisted in Year 2. In this case, the Calculation Agent may deem a zero value for such Reference Security during Year 2 and for the remainder of the CD terms, in which case the Reference Security Return of such Reference Security would be the Floor Rate of -30.00% for each of these years. If such a determination is made the by Calculation Agent, the likelihood of a depositor receiving a Coupon Payment Amount for such years following any such delisting may be materially limited, despite the generally positive performance of the remaining Reference Securities. However, such treatment of the Reference Security in the event of a delisting represents only one such potential treatment of a delisting by the Calculation Agent. The Calculation Agent, in its reasonable discretion, may also use other methodologies to adjust the terms of the CDs to reflect the economic impact of such delisting on the value of the CDs and is not required to follow any specific course of action to effect this result. 17
Page 1 and 2: HSBC Bank USA, N.A. Annual Income O
Page 3 and 4: HSBC Bank USA, N.A. 6 Year Annual I
Page 5 and 6: HSBC BANK USA, NATIONAL ASSOCIATION
Page 7 and 8: SUMMARY OF TERMS Set forth in these
Page 9 and 10: January 26, 2016 January 29, 2016 O
Page 11 and 12: QUESTIONS AND ANSWERS What Are the
Page 13 and 14: RISK FACTORS Purchasing the CDs is
Page 15 and 16: Adverse Economic Interests to Depos
Page 17 and 18: Market Disruption Events If a Marke
Page 19: Example 2: The securities performan
Page 23 and 24: other entity treated as a partnersh
Page 25 and 26: previously made on the CDs as refle
Page 27 and 28: Amazon.com, Inc. Amazon.com, Inc. i
Page 29 and 30: Bank of America Corporation Bank of
Page 31 and 32: Exelon Corporation Exelon Corporati
Page 33 and 34: Gilead Sciences, Inc. Gilead Scienc
Page 35 and 36: Newmont Mining Corporation Newmont
Page 37 and 38: Verizon Communications Inc. Verizon

HSBC Bank USA, N.A. - FatWallet

Create successful ePaper yourself

Delete template?

Save as template?