HSBC Bank to issue yield curve steepener CDs linked to CMS rates

By Angela McDaniels

Tacoma, Wash., Dec. 14 - HSBC Bank USA, NA plans to issue yield curve steepener certificates of deposit due Dec. 28, 2019 linked to the 10-year and two-year Constant Maturity Swap rates, according to a term sheet.

The CDs will carry a fixed interest rate of 7% for the first year. After that time, interest will equal four times the spread of the 10-year CMS rate over the two-year CMS rate minus 0.25%, subject to a floor of zero and a cap of 7% per year in each interest period. Interest will be payable quarterly.

The payout at maturity will be par.

The CDs will be callable at par on Dec. 29, 2014.

The CDs will settle Dec. 28.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.