HSBC Bank USA plans absolute return CDs linked to S&P 500

By Susanna Moon

Chicago, June 10 - HSBC Bank USA, NA plans to issue 0% absolute return certificates of deposit due June 30, 2010 linked to the S&P 500 index, according to a term sheet.

If the index stays within its barriers, the payout at maturity will be par plus the absolute value of the index return. Otherwise, the payout will be par.

The upper barrier will be 130% to 132% of the initial level, and the lower barrier will be 84% of the initial level. The exact barrier levels will be set at pricing.

The securities will price on June 25 and settle on June 30.

HSBC Securities (USA) Inc. will be the agent.

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