New Issue: HSBC sells $540,000 8% callable yield notes tied to fund, two indexes

By Susanna Moon

Chicago, March 26 - HSBC USA Inc. priced $540,000 of 8% callable yield notes due March 29, 2011 based on the performance of the iShares MSCI Emerging Markets index fund, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The notes are callable at par on any interest payment date.

If the notes are not called, the payout at maturity will be par unless either underlying index or fund falls to or below its knock-in level - 70% of its initial level - during the life of the notes, in which case investors will receive par plus the return of the worst-performing component, up to a maximum payout of par.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Callable yield notes
Underlying components: iShares MSCI Emerging Markets index fund, Russell 2000 index and S&P 500 index
Amount:	$540,000
Maturity:	March 29, 2011
Coupon:	8%, payable quarterly
Price:	Par
Payout at maturity:	If any underlying component falls to or below its knock-in level during the life of the notes, par plus the return of the worst-performing underlying component, capped at par; otherwise, par
Call option:	At par on interest payment dates
Initial levels:	$41.01 for MSCI EM; 1,167.72 for S&P; 683.68 for Russell
Pricing date:	March 24
Settlement date:	March 29
Underwriter:	HSBC Securities (USA) Inc.
Fees:	2.57%
Cusip:	4042K0S97

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