HSBC plans bullish skewed absolute return CDs linked to Russell 2000

By Jennifer Chiou

New York, Nov. 13 - HSBC Bank USA, NA plans to price 0% bullish skewed absolute return certificates of deposit due Sept. 28, 2011 linked to the Russell 2000 index, according to a term sheet.

If the index does not close above the upper barrier or below the lower barrier during the life of the notes, 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 125% to 135% of the initial index level, and the lower barrier will be 85% of the initial level. The exact upper barrier will be set at pricing.

The CDs will be putable on Nov. 30, 2010. The redemption amount will be determined by the calculation agent and may be less than par.

The CDs will price on Nov. 23 and settle on Nov. 27.

HSBC Securities (USA) Inc. is the agent.

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