New Issue: HSBC sells $4.08 million 95% protected notes on four currencies via JPMorgan

By Jennifer Chiou

New York, Dec. 23 - HSBC USA Inc. priced $4.08 million of zero-coupon 95% principal-protected notes due Dec. 22, 2011 based on the performance of a basket of equally weighted currencies relative to the U.S. dollar, according to a 424B2 filing with the Securities and Exchange Commission.

J.P. Morgan Securities Inc. is the agent.

The underlying currencies are the Brazilian real, Australian dollar, Norwegian krone and Canadian dollar.

The payout at maturity will be $950 plus 1.62 times any basket gain, up to a maximum return of 15%.

Investors will receive at least $950.

Issuer:	HSBC USA Inc.
Issue:	95% principal-protected notes
Underlying currencies:	Brazilian real, Australian dollar, Norwegian krone and Canadian dollar, equally weighted
Amount:	$4,077,000
Maturity:	Dec. 22, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	$950 plus 162% of any basket gain, capped at 15%; floor of 95% of par
Initial spot rates:	1.7879 for real, 1.12771 for Australian dollar, 5.86515 for krone and 1.0673 for Canadian dollar
Pricing date:	Dec. 18
Settlement date:	Dec. 23
Agent:	J.P. Morgan Securities Inc.
Fees:	1.5%

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