New Issue: HSBC sells $34.14 million knock-out buffer notes on S&P 500 via JPMorgan

By Susanna Moon

Chicago, March 2 - HSBC USA Inc. priced $34.14 million of 0% knock-out buffer notes due Aug. 30, 2011 based on the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.

A knock-out event occurs if the index falls by more than the 20% buffer during the life of the notes.

If a knock-out event occurs, the payout at maturity will be par plus the index return, up to a maximum return of 30%. Investors will be exposed to any losses.

If a knock-out event does not occur, the payout will be par plus the index return, with a cap of 30% and a contingent minimum return of 10.4%.

J.P. Morgan Securities Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying index:	S&P 500
Amount:	$34,144,000
Maturity:	Aug. 30, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	If index falls by more than 20% during life of notes, par plus index return with exposure to losses; otherwise, par plus index return, floor of 10.4%; in either case, cap of 30%
Initial level:	1,104.49
Pricing date:	Feb. 26
Settlement date:	March 3
Agent:	J.P. Morgan Securities Inc.
Fees:	1.25%
Cusip:	4042K0R23

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