New Issue: HSBC Bank prices $2 million steepener CDs linked to 10-year, two-year CMS rates

By Jennifer Chiou

New York, Aug. 28 - HSBC Bank USA, NA priced $2 million of callable leveraged steepener certificates of deposit due Sept. 12, 2023, according to a term sheet.

The CDs will pay a quarterly contingent coupon that will be fixed at 10% for the first year. After that, the interest rate will be reset quarterly and will equal 10 times the spread of the 10-year Constant Maturity Swap rate over the two-year CMS rate, subject to a cap of 15% and a minimum interest rate of 0%.

The CDs are callable at par on each interest payment date beginning Sept. 12, 2009.

HSBC Bank USA is the agent.

Issuer:	HSBC Bank USA, NA
Issue:	Callable leveraged steepener certificates of deposit
Amount:	$2 million
Maturity:	Sept. 12, 2023
Coupon:	10% through the first year; 10 times the spread of the 10-year CMS rate over the two-year CMS rate after that, capped at 15% with a floor of 0%; payable quarterly
Price:	Par
Call:	At par on each interest payment date beginning Sept. 12, 2009
Payout at maturity:	Par plus accrued interest
Pricing date:	Aug. 22
Settlement date:	Sept. 12
Agent:	HSBC Bank USA

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