HSBC Bank USA plans ratchet-up CD linked to global index basket via JVB

By Jennifer Chiou

New York, Nov. 2 - HSBC Bank USA NA plans to issue a global opportunity ratchet-up CD due Nov. 29, 2010 linked to the S&P 500, Nikkei 225 and Dow Jones Euro Stoxx 50 indexes via JVB Financial Group LLC, according to a term sheet.

The indexes will be equally weighted.

At maturity, the CD will pay the greater of the average of three final ratcheted average index returns and a minimum return of par.

The ratchet average index level will be calculated as the average of eight fixing levels on the observations dates, which fall on the 22nd day of each May and November beginning from May 22, 2007 up to and including the valuation date, Nov. 22, 2010.

Holders have the option to put the CDs back in whole on Nov. 30, 2007, Nov. 28, 2008 or Nov. 30, 2009.

The CD will price on Nov. 22 and settle on Nov. 29.

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