New Issue: HSBC prices $959,000 11% callable yield notes linked to gold, mining ETFs

By Angela McDaniels

Tacoma, Wash., Feb. 1 - HSBC USA Inc. priced $959,000 of 11% callable yield notes due Feb. 2, 2012 linked to the Market Vectors Gold Miners exchange-traded fund and the SPDR S&P Metals & Mining ETF, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The payout at maturity will be par unless either underlying ETF closes below its trigger price - 72.5% of its initial share price - during the life of the notes, in which case the payout will be par plus the return of the worst-performing ETF, subject to a maximum payout of par.

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

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Callable yield notes
Underlying ETFs:	Market Vectors Gold Miners ETF and SPDR S&P Metals & Mining ETF
Amount:	$959,000
Maturity:	Feb. 2, 2012
Coupon:	11%, payable quarterly
Price:	Par
Payout at maturity:	If either underlying ETF closes below its trigger price during the life of the notes, par plus the return of the worst-performing ETF, subject to a maximum payout of par; otherwise, par
Call option:	At par on any interest payment date
Initial share prices:	$54.20 for Market Vectors Gold and $67.61 for SPDR S&P Metals & Mining
Trigger price:	72.5% of initial share price
Pricing date:	Jan. 28
Settlement date:	Feb. 2
Agent:	HSBC Securities (USA) Inc.
Fees:	2.1%
Cusip:	4042K1CP6

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