Fixed income products | HSBC

The information has been prepared for informational purposes only and is subject to change without notice. All investments involve risk including the loss of principal. It is not intended to provide and should not be relied on for financial, accounting, legal, or tax advice. You should consult your financial, tax or legal advisor regarding such matters. We believe the information provided herein is reliable but should not be assumed to be accurate or complete. The views and strategies described may not be suitable for all investors.

Investment and Annuity products are provided by Registered Representatives and Insurance Agents of HSBC Securities (USA) Inc., member NYSE/FINRA/SIPC, a registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc., and an indirectly wholly-owned subsidiary of HSBC Holdings plc. In California, HSBC Securities (USA) Inc., conducts insurance business as HSBC Securities Insurance Services. License #: 0E67746. Insurance Agents of HSBC Insurance Agency (USA) Inc., a wholly-owned subsidiary of HSBC Bank USA, N.A., and an indirectly wholly-owned subsidiary of HSBC Holdings plc, offers Insurance products issued by third-party insurance carriers. Products and services may vary by state and are not available in all states. California license #: 0D36843.

All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.

United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their U.S. and non-U.S. accounts - including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts ("FBAR")). U.S. persons should consult a tax adviser for more information.

¹ Fixed income products are subject generally to interest rate, credit, liquidity and market risks, to varying degrees.

² Investments subject to the credit risk of the issuer are generally the obligations of the issuer and are not, either directly or indirectly, an obligation of any third party. Any payment to be made on the investments with credit risk, including any return of principal or coupon payable at maturity, if applicable, depends on the ability of the issuer to satisfy its obligations as they come due. As a result, the actual and perceived creditworthiness of an issuer may affect the market value of an investment with such credit risk and, in the event an issuer were to default on its obligations, you may not receive the amounts owed to you under the terms of the investment.

³ Municipal bonds: Investors should consider the investment objectives, risks and charges and expenses associated with municipal securities before investing. Further information about municipal securities is available in the issuer's official statement. The official statement should be read carefully before investing.

⁴ U.S. Treasuries are guaranteed as to the payment of principal and interest by the U.S. Government

⁵ Foreign securities can be subject to greater risks than U.S. investments, including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws or monetary policy. These risks are likely to be greater for emerging markets than in developed markets. Prices of securities in emerging markets can fluctuate more significantly than the prices of companies in more developed countries. Securities of emerging market issuers generally have more risk than securities issued by issuers in more developed markets. The less developed the country, the greater affect the risks may have in an investment, and as a result, an investment may exhibit a higher degree of volatility than either the general domestic securities market or the securities markets of developed foreign countries.

⁶ Investors should be aware that the fund's yield and the value of its portfolio fluctuate and can be affected by changes in interest rates, general market conditions and other political, social and economic developments. Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. Investments in bond funds are subject to possible loss due to the financial failure of the underlying securities and their inability to meet their current obligations. These risks may increase the funds share price volatility.

⁷ All CDs are FDIC insured together with all other deposits you may have with the issuing bank, up to the current maximum amount of $250,000 per depositor. For further guidance on FDIC insurance coverage, please visit www.FDIC.gov.

An investment in a bond fund should be preceded or accompanied by an effective prospectus and investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus of a fund contains this and other important information about the investment company. Investors should read the prospectus carefully before investing in a fund.