HSBC Bank to price callable leveraged steepener CDs linked to CMS rates

By Jennifer Chiou

New York, Oct. 31 - HSBC Bank USA, NA plans to price callable leveraged steepener certificates of deposit due Nov. 20, 2023, according to a term sheet.

Interest will accrue at 13% per year for the first year. After that, interest will equal 10 times the spread of the 30-year Constant Maturity Swap rate over the five-year CMS rate, subject to a floor of 0% and a cap of 12% per year. Interest will be payable quarterly.

Beginning Nov. 20, 2009, the CDs will be callable at par on any interest payment date.

The CDs will price on Nov. 17 and settle on Nov. 20.

HSBC Securities (USA) Inc. is the agent. Incapital LLC is the distributor.

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