New Issue: HSBC prices $3.5 million knock-out buffer notes linked to gold via JPMorgan

By E. Janene Geiss

Philadelphia, Sept. 29 - HSBC USA Inc. priced $3.5 million of 0% knock-out buffer notes due March 30, 2010 linked to the price of gold, according to a 424B2 filing with the Securities and Exchange Commission.

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

If the price of gold falls below the knock-out level - 87% of the initial level - during the life of the notes, the payout at maturity will be par plus the return. Otherwise, the payout will be par plus the greater of the price return and 5%, subject to a maximum return of 15%.

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying index:	Price of gold
Amount:	$3,495,000
Maturity:	March 30, 2010
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus any return if the price of gold falls by more than 13% during life of notes; otherwise, par plus greater of index return and 5%
Initial price:	$991.50
Pricing date:	Sept. 25
Settlement date:	Sept. 30
Agent:	J.P. Morgan Securities Inc.
Fees:	0.5%

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