HSBC Bank plans to price absolute return CDs linked to Russell 2000

By Angela McDaniels

Tacoma, Wash., June 8 - HSBC Bank USA, NA plans to price 0% bullish skewed absolute return certificates of deposit due Oct. 28, 2011 linked to the Russell 2000 index, according to a term sheet.

If the index never closes above the upper barrier or below the lower barrier, 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 140% to 150% 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 specified early redemption dates. The redemption amount may be less than par.

The CDs are expected to price June 24 and settle June 29.

HSBC Securities (USA) Inc. is the agent.

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