Structured products - Market-Linked CDs and Registered Structured Notes | HSBC
What are structured products?
Structured products1 are investment vehicles based on or derived from a single security, a basket of securities, an index, a commodity, a debt issuance and/or a foreign currency. Structured products have a fixed maturity date and are designed to offer specific risk-return tradeoffs, with pre-set formulas for both the potential risk and potential return. However, these calculations are often complex.
Some structured products offer protection of the principal–when held to maturity, subject to issuer credit risk, thus offering a lower risk than investing in the underlying asset directly. Others do not guarantee principal, but may provide a partial buffer against loss or offer the potential for enhanced returns.
Principal Protected Market-Linked Certificates of Deposit (CD) from HSBC2
A Market-Linked CD is a bank deposit product with returns tied to an underlying asset type.
In addition to providing an efficient means of portfolio diversification, the variety of market-linked CDs issued by HSBC Bank USA, N.A. and made available through HSBC Securities (USA) Inc. offer:
- A degree of upside exposure to the potential price appreciation in a variety of underlying assets3
- A range of terms to match your investing timeline
- 100% principal protection if held to maturity, subject to the issuer's credit risk2
- The security of FDIC insurance4
- Access to various U.S. and international markets5
To learn more about our Market-Linked CDs and other structured products, call 866.586.4722 or schedule a consultation online.
Registered Structured Notes from HSBC
HSBC offers Registered Structured Notes6 ("Notes"), which may be an alternative to traditional investing. Notes may be linked to a broad–based equity index or particular regions, sectors, or individual stocks. Notes have a variety of risk–return profiles that may address individual wealth management needs and objectives such as risk management, income enhancement, and portfolio diversification.
Registered Structured Notes primarily differ from Market-Linked CDs in that they are not FDIC insured and are registered with the Securities Exchange Commission as a securities product1. Structured notes are not a liquid investment and are designed to be held to maturity.
HSBC is a leader in the structured investments space and has, for the third consecutive year, secured the #1 ranking in the Greenwich Associates U.S. Retail Structured Products Survey, ranking first in both Overall Service Quality as well as Overall Market Penetration.7
To learn more about our Registered Structured Notes and other structured products,call 866.586.4722 or schedule a consultation online.
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.
|Investment, Annuity and Insurance Products:|
|ARE NOT A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES||ARE NOT FDIC INSURED||ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY||ARE NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES||MAY LOSE VALUE|
All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.
1 Structured Certificates of Deposit are provided by Registered Representatives 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. Structured CD Products are: Bank deposits; obligations of the issuing bank; FDIC insured within applicable limits; not a liquid investment; and are designed to be held to maturity. Structured CDs are subject to investment risk and any early repayment could result in a loss of principal investment.
Structured Notes are provided by Registered Representatives 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. Investing in Structured Notes may result in a loss. The return on the notes is linked to the performance of the underlying asset, which may be negative, and involves risks specific to the relevant underlying asset. Structured notes are not a liquid investment and are designed to be held to maturity.
2 Market–Linked Certificates of Deposit are provided by Registered Representatives 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. Market–linked CD Products are: Bank deposits; obligations of the issuing bank; FDIC insured within applicable limits; not a liquid investment; and are designed to be held to maturity. Market–linked CDs are subject to investment risk and any early repayment could result in a loss of principal investment. In the U.S. market–linked CDs are offered by HSBC Bank USA, N.A. Member FDIC.
3 Market-Linked CDs are linked to the performance of specific underlying assets and are not equivalent to investing directly in that asset. It is important to note that Market-Linked CDs may have features such as a maximum return cap or averaging, which could result in the performance of the CD differing from a direct investment in the underlying index or reference asset. Furthermore, the return on a Market-Linked CD, if any, often may not be paid until at maturity.
4 FDIC Insurance. A Market-Linked CD is FDIC insured, currently up to $250,000 per depositor. Any funds deposited with the issuing bank (including other CDs issued by such bank) in excess of these limits will not be eligible for FDIC insurance, so you should consider and inform your Financial Advisor, if you have other deposits at the issuing bank. For more detailed information regarding FDIC insurance coverage, you may contact the FDIC Call Center at (877) 275-3342 or refer to the FDIC public website at www.fdic.gov, where you can obtain a copy of the FDIC's brochure, "Your Insured Deposits, FDIC's Guide to Deposit Insurance Coverage".
5 Foreign securities carry special risks, such as exposure to currency fluctuations, less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, volatility and, potentially, less liquidity. International investing including emerging markets involves a greater degree of risk and increased volatility that is heightened when investing in emerging markets. 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. Economies in Emerging Markets generally are heavily dependent upon international trade and, accordingly, have been and may continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. These economies also have been and may continue to be affected adversely by economic conditions in the countries in which they trade.
6 Registered Notes may be suitable for investors who are willing to forego dividends or other distributions paid to holders of stocks comprising the relevant Reference Asset, or the Reference Asset itself, as applicable, do not seek current income from their investment, do not seek an investment for which there is an active secondary market, are willing to hold the securities to maturity and are comfortable with the creditworthiness of HSBC, as issuer of the securities.
7 Source: 2009-2011 U.S. Retail Structured Products Study, Greenwich Associates
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