New Issue: HSBC prices $1.98 million 10% callable yield notes tied to index, two ETFs

By Angela McDaniels

Tacoma, Wash., Dec. 2 - HSBC USA Inc. priced $1.98 million of 10% callable yield notes due Dec. 5, 2011 linked to the Russell 2000 index, the iShares FTSE/Xinhua China 25 index fund and the iShares MSCI Brazil index fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

If any of the underlying components closes below its trigger value - 50% of its initial value - on any day during the life of the notes, the payout at maturity will be par plus the return of the worst-performing underlying component, subject to a maximum payout of par. Otherwise, the payout will be par.

The notes will be callable at par on any interest payment date.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Callable yield notes
Underlying components:	Russell 2000 index, iShares FTSE/Xinhua China 25 index fund and iShares MSCI Brazil index fund
Amount:	$1,975,000
Maturity:	Dec. 5, 2011
Coupon:	10%, payable quarterly
Price:	Par
Payout at maturity:	If any underlying component closes below 50% of its initial value during life of notes, par plus return of worst-performing underlying component, capped at par; otherwise, par
Call option:	At par on any interest payment date
Initial values:	727.01 for Russell 2000; $43.34 for China ETF; $74.87 for Brazil ETF
Pricing date:	Nov. 30
Settlement date:	Dec. 3
Agent:	HSBC Securities (USA) Inc.
Fees:	0.6%
Cusip:	4042K1AM5

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