HSBC plans trigger jump securities tied to long, short currency basket

By Susanna Moon

Chicago, April 5 - HSBC USA Inc. plans to price 0% currency-linked trigger jump securities due May 2, 2014 linked to a long and short currency basket, each equally weighted, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of two emerging market currencies and five developed market currencies, relative to the U.S. dollar.

The long basket consists of the Brazilian real, Australian dollar, Russian ruble and Canadian dollar, each with a 25% weight. The short basket consists of the euro, U.S. dollar and the Japanese yen, each with a 33.3333% weight.

If the basket finishes above the initial level, the payout at maturity will be par plus a fixed upside rate of 36% to 40%. The exact percentage will be set at pricing.

Investors will receive par if the basket falls by up to 10% and will be exposed to any losses beyond 10%.

HSBC Securities (USA) Inc. is the underwriter, and Morgan Stanley Smith Barney LLC will handle distribution.

The notes will price on April 27 and settle on May 2.

The Cusip number is 4042K1E74.

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