New Issue: HSBC prices $1 million buffer notes linked to global index basket

By Laura Lutz

Des Moines, March 29 - HSBC USA Inc. priced a $1 million issue of international equity buffer notes due March 31, 2011 linked to a basket of four indexes.

The basket includes equal weights of the Nikkei 225 index, the Hang Seng China Enterprises index, the Dow Jones Euro Stoxx 50 index and the iShare MSCI Brazil Index Fund.

If the index performance is positive, investors will receive par plus the return on the index. If the index declines by less than 20%, the payout will be par. Investors will lose 1% for each 1% that the index declines beyond 20%.

HSBC Securities (USA) Inc. will be the underwriter.

Issuer:	HSBC USA Inc.
Issue:	International equity buffer notes
Underlying basket:	Nikkei 225 index, Hang Seng China Enterprises index, Dow Jones Euro Stoxx 50 index, iShare MSCI Brazil Index Fund.
Amount:	$1 million
Maturity:	March 31, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus return on index if index return is positive; par if index declines by less than 20%; investors will lose 1% for each 1% that the index declines beyond 20%
Initial index levels:	17,254.73 for Nikkei; 9,483.13 for Hang Seng China; 4,128.2 for Stoxx; 47.72 for iShares Brazil
Pricing date:	March 28
Settlement date:	March 30
Agent:	HSBC Securities (USA) Inc.
Fees:	3.6%

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