What are structured products?
Structured products are packaged investments that may offer the potential to earn returns based on the performance of an underlying security - such as a single stock, multiple stocks or an index - along with some degree of downside protection. Structured products are not liquid investments, designed to be held to maturity, and are subject to credit risk of the issuer. [@structuredproducts]
Why invest in structured products with us?
Key investment products
Principal-protected market-linked certificates of deposit (CD)
A market-linked CD [@marketlinkedcds] is a bank deposit product with returns tied to an underlying asset, such as an index or an individual stock. In addition to providing 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. may offer:
- A degree of upside exposure to the potential price appreciation in a variety of underlying assets[@marketlinkedcdsperformance]
- A range of maturity dates to align with your investment time-horizon
- 100% principal protection if held to maturity, subject to the issuer's credit risk[@marketlinkedcds]
- The security of FDIC insurance[@fdicinsurance]
- Access to various U.S. and international markets
Principal-protected market-linked certificates of deposit are not a liquid investment and are designed to be held to maturity.
Structured notes with principal protection
A principal protected structured note is a structured product with returns tied to an underlying asset, such as an index or an individual stock. In addition to providing means of portfolio diversification, the variety of Principal Protected Notes issued by HSBC Securities (USA) Inc. and select third parties may offer:
- A degree of upside exposure to the potential price appreciation in a variety of underlying assets
- A range of maturity dates to align with your investment time-horizon
- 100% principal protection if held to maturity, subject to the issuer's credit risk
- Access to various U.S. and international markets
Principal protected structured notes are not a liquid investment, are designed to be held to maturity, and are not FDIC insured.
Structured notes with principal at risk
A registered structured note offers 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.
In addition to providing means of portfolio diversification, the variety of notes issued by HSBC Securities (USA) Inc. and select third parties may offer:
- Enhanced upside exposure to the potential price appreciation in a variety of underlying assets or enhanced yield as compared to traditional fixed income investments
- A range of maturity dates to align with your investment time-horizon
- Buffers or barriers may provide a level of protection against possible negative performance
- Access to various U.S. and international markets
Notes are not a liquid investment, are designed to be held to maturity, and are not FDIC insured.
Things to know
Who can invest?
Anyone can invest in structured products. However, it's important to understand there are risks associated with investing and you may experience losses or returns.
Ready to invest in structured products?
Already an HSBC client?
Log on to online banking to schedule an appointment with your Wealth Relationship Manager.
New to HSBC?
For more information on structured products, give us a call.
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