The Callable Leveraged Steepener is 100% capital guaranteed at maturity and, as a CD, is eligible for up to $250,000 Federal Deposit Insurance Corp protection. The product pays quarterly coupons, with the annualised rate fixed at 13% for the first year. Subsequent coupons are capped at 12%, with a leverage of 10 multiplied by 30-year minus five-year CMS.
If that figure is negative, then no coupon is paid but capital is still protected. HSBC can call the notes quarterly, redeeming principal an
The week on Risk.net, July 14–20, 2017Receive this by email