HSBC to price 22-month absolute return CDs linked to Russell 2000

By Angela McDaniels

Tacoma, Wash., March 2 - HSBC Bank USA, NA plans to price 0% bullish skewed absolute return certificates of deposit due Jan. 26, 2012 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 117% to 124% 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 March 28, 2011. The redemption amount will be the current market value of the CDs.

The CDs will price March 23 and settle March 26.

HSBC Securities (USA) Inc. is the agent.

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