New Issue: HSBC prices $5.02 million bearish return optimization securities linked to Russell 2000

By Angela McDaniels

Tacoma, Wash., Aug. 24 - HSBC USA Inc. priced $5.02 million of 0% bearish return optimization securities due May 26, 2010 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus triple the absolute value of any index decline, subject to a maximum return of 19.5%. Investors will receive par minus the index return if the index advances.

UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.

Issuer:	HSBC USA Inc.
Issue:	Bearish return optimization securities
Underlying index:	Russell 2000
Amount:	$5,020,350
Maturity:	May 26, 2010
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 3% for every 1% index decline, up to maximum return of 19.5%; par minus 1% for every 1% index gain
Initial index level:	568.68
Pricing date:	Aug. 20
Settlement date:	Aug. 25
Underwriters:	UBS Financial Services Inc. and HSBC USA Inc.
Fees:	0.9%

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