New Issue: HSBC Bank prices $1 million steepener CDs linked to 30-year, 10-year CMS rates

By Jennifer Chiou

New York, July 6 - HSBC Bank USA NA, New York Branch priced $1 million of steepener certificates of deposit due July 11, 2022, according to a term sheet.

The CDs will pay a quarterly contingent coupon that will be fixed at 10% for the first two years. After that, the interest rate will be reset quarterly and will equal 50 times the spread of the 30-year Constant Maturity Swap (CMS) rate over the 10-year CMS rate, subject to a cap of 25% and a minimum interest rate of 0%.

The CDs are callable at par on each interest payment date beginning July 11, 2008.

Incapital LLC is the agent.

Issuer:	HSBC Bank USA NA, New York Branch
Issue:	Steepener certificates of deposit
Amount:	$1 million
Maturity:	July 11, 2022
Coupon:	10% through the second year; 50 times the spread of the 30-year CMS rate over the 10-year CMS rate after that, capped at 25% with a floor of 0%; payable quarterly
Price:	Par
Call:	At par on each interest payment date beginning July 11, 2008
Payout at maturity:	Par plus accrued interest
Pricing date:	June 26
Settlement date:	July 11
Underwriter:	Incapital LLC

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