HSBC USA to 0% price performance securities linked to index basket

By Jennifer Chiou

New York, May 1 - HSBC USA Inc. plans to price 0% performance securities with partial protection due May 28, 2010 linked to an international index basket, according to an FWP filing with the Securities and Exchange Commission.

The basket will include equal weights of the Dow Jones Euro Stoxx 50, Nikkei 225, Swiss Market Index, FTSE 100 and MSCI Emerging Markets indexes.

The payout at maturity will be par plus 110% to 120% of any positive return on the basket. If the basket declines by 20% or less, the payout will be par. If the basket falls by more than 20%, investors will lose 1% for each 1% the basket declines beyond 20%.

The securities will price on May 24 and settle on May 31.

UBS Financial Services Inc. and HSBC USA will be the underwriters.

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