HSBC plans 10.4% callable yield notes tied to Brazil ETF, Russell 2000

By Angela McDaniels

Tacoma, Wash., Jan. 14 - HSBC USA Inc. plans to price 10.4% callable yield notes due Jan. 31, 2012 linked to the Russell 2000 index and the iShares MSCI Brazil index fund, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

A trigger event will occur if either underlying component closes below its trigger value - 60% to 65% of its initial level - on any day during the life of the notes. The exact trigger value will be set at pricing.

If a trigger event does not occur, investors will receive par at maturity.

If a trigger event occurs and the return of the worst-performing underlying component is positive, investors will receive par.

If a trigger event occurs and the return of the worst-performing underlying component is negative, investors will share in the decline.

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

The notes (Cusip: 4042K1CK7) are expected to price Jan. 26 and settle Jan. 31.

HSBC Securities (USA) Inc. is the agent.

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