HSBC Subordinated Notes with IncomeBoost is a structured investment issued under a Deferred Purchase Agreement (DPA), offering leveraged exposure to investment-grade bank capital. Investors contribute $10,000 equity per unit, gaining $50,000 exposure to HSBC's 10NC5 Tier 2 subordinated note issued in March 2025. The remaining $40,000 per unit is funded via an 80% Limited Recourse Investment Loan at a fixed interest rate of 5.1525% p.a. The product pays a net return on equity of 8.00% p.a., distributed semi-annually in arrears.
