HSBC to sell return optimization notes tied to iShares MSCI EAFE fund

By E. Janene Geiss

Philadelphia, Sept. 4 - HSBC USA Inc. plans to price 0% return optimization securities with partial protection due March 31, 2011 linked to the iShares MSCI EAFE index fund, according to an FWP filing with the Securities and Exchange Commission.

HSBC USA Inc. is the agent.

The payout at maturity will be par of $10 plus double any gain in the fund, up to a maximum return of 21% to 24%. The exact cap will be set at pricing.

If the price of the fund declines by 10% or less, the payout will be par. Investors will lose 1% for every 1% the fund declines beyond 10%.

The notes are expected to price on Sept. 25 and settle on Sept. 30.

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