News Release
HSBC LAUNCHES INVESTMENT PRODUCT RANGE LINKED TO STANDARD & POOR'S COMMODITY TRENDS INDICATOR
13 June 2007
HSBC CIBM today announces the launch of a range of investment products linked to the Standard & Poor's Commodity Trends Indicator ('S&P CTI'), an index that delivers long and short exposure to commodity markets.
The S&P CTI is an investible long/short strategy that enables investors to gain exposure to commodities. The S&P CTI has demonstrably lower volatility than traditional commodity investments and provides investors with the potential to benefit from both rising and declining market trends in commodities.
Steven Phan, Global Head of Structured Fund Products, HSBC Bank PLC, said: "Investors are recognizing the value of commodities for diversification purposes and we are very pleased to be able to offer investors this low volatility long/short product. The historically favorable risk/return profile of this innovative strategy presents unique opportunities for both institutional investors and certain retail distributors."
The S&P CTI is comprised of 16 commodity futures grouped into 6 sectors - energy, industrial metals, precious metals, livestock, grains and 'softs' (coffee, cocoa, cotton and sugar). The components of the S&P CTI are chosen based on liquidity and production levels. It positions its components either long1 or short using a rules-based methodology.
HSBC is launching globally a range of innovative investment products linked to the S&P CTI: Tracker Notes to give direct exposure to the index; Leveraged Notes to generate the potential for enhanced return; and Principal Protected Notes to provide security.
Notes:
A detailed outline of the S&P CTI methodology and implementation is located at: http://www2.standardandpoors.com
Bloomberg tickers: Total Return - SPTICDT / Price Return - SPTICDP
Media inquiries to:
Donal McCarthy
donal.mccarthy@us.hsbc.com
1. Except energy which is long or flat
HSBC Holdings plc
HSBC Holdings plc serves over 125 million customers worldwide through some 10,000 offices in 82 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of USD 1,861 billion at 31 December 2006, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.
HSBC Corporate, Investment Banking and Markets (CIBM) provides tailored financial products and services to major government, corporate and institutional clients. Within client-focused business lines, Global Banking and Global Markets, CIBM offers a full range of capabilities, including foreign exchange, fixed income, equities, derivatives, risk advisory, corporate and investment banking, equity sales and trading, and equity and debt capital markets. For more information on CIBM, please visit www.hsbcnet.com.
Securities mentioned herein may be provided through HSBC Securities (USA) Inc., a member of NYSE, NASD and SIPC, registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary of HSBC Holdings plc. Products and services offered by HSBC Securities (USA) Inc., are: Not a deposit or other obligation of the bank or any of its affiliates; Not FDIC insured or insured by any federal government agency of the United States; Not guaranteed by the bank or any of its affiliates; and are subject to investment risk, including possible loss of principal invested."
