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HSBC Issued $28,133,960 Contingent Income Auto-Callable Securities
April, 2025

$28,133,960 Contingent Income Auto-Callable Securities due October 04, 2024, priced on October 01, 2021, were issued by HSBC USA Inc. The pricing supplement for this note (CUSIP: 40439K151) can be found here.

The notes had a $10 face value and paid a quarterly coupon of $0.425, so long as the notes had not been called and and Affirm all closed above 50% of their October 01, 2021 closing prices on a determination date. If and Affirm closed below 50% of their October 01, 2021 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 Affirm all closed on the final determination date on October 01, 2024 and above 50% of their October 01, 2021 closing prices. If on October 01, 2024 and Affirm closed below 50% of their October 01, 2021 closing prices, the notes paid reduced principal euqal to $10 multiplied by the lowest ratio of and Affirm October 01, 2024 closing prices to their October 01, 2021 closing prices.

The notes have matured. They paid one coupon totaling $0.425 and $3.27 repayment per $10 note. Investors thus suffered capital losses of $6.73 and net losses of $6.31. In the aggregate, investors in this note suffered $18,947,751 in capital losses and $17,752,057 in net losses. See Table 1 and Figure 1.

Table 1



Figure 1




SLCG estimated these losses based on publicly available information. The issuer ultimately determines the amounts paid which may differ from our estimates. Our reference to capital loss and net loss does not imply SLCG's view of how these losses are treated for tax purposes.


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SLCG Economic Consulting, LLC

SLCG Economic Consulting, LLC ("SLCG") provides finance, economics, and investment management consulting services. Our clientele includes law firms, banks, brokerage firms, and individuals embroiled in complex litigation, for whom we offer expert witness services. Our team consists of highly qualified professionals holding PhD and MA-level degrees, with extensive experience across academia, industry, and government. We have provided expert testimony in state and federal courts, and in arbitration forums.

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