$20,550,790 Trigger Autocallable Contingent Yield Notes $20,550,790 Notes Linked to the Least Performing of the EURO STOXX 50 Index and the EURO STOXX Banks Index due February 03, 2021, priced on January 29, 2018, were issued by HSBC USA Inc. The pricing supplement for this note (CUSIP: 40435J422) can be found here. The notes had a $10 face value and paid a quarterly coupon of $0.20, so long as the notes had not been called and and EURO STOXX Banks Index all closed above 65% of their January 29, 2018 closing prices on a determination date. If and EURO STOXX Banks Index closed below 65% of their January 29, 2018 closing prices on a determination date, the notes did not pay a coupon. If not previously called, at maturity, the notes returned $10 in principal if and EURO STOXX Banks Index all closed on the final determination date on January 29, 2021 and above 65% of their January 29, 2018 closing prices. If on January 29, 2021 and EURO STOXX Banks Index closed below 65% of their January 29, 2018 closing prices, the notes paid reduced principal euqal to $10 multiplied by the lowest ratio of and EURO STOXX Banks Index January 29, 2021 closing prices to their January 29, 2018 closing prices. The notes have matured. They paid two coupons totaling $1.40 and $4.92 repayment per $10 note. Investors thus suffered capital losses of $5.08 and net losses of $3.68.† In the aggregate, investors in this note suffered $10,435,578 in capital losses and $7,558,467 in net losses. See Table 1 and Figure 1.
For nearly 25 years, SLCG Economic Consulting, LLC ("SLCG") has provided consulting services to individuals, corporations and state and federal agencies mostly related to finance and economics. SLCG professionals include professionals with substantial academic and government experiences who conduct ongoing publishable research. SLCG is a wholly owned subsidiary of McCann Yan Holdings, Inc., a Virginia incorporated company based in Northern Virginia.