HSBC plans buffered AMPS linked to S&P 500, iShares Emerging Markets

By Angela McDaniels

Tacoma, Wash., Jan. 19 - HSBC USA Inc. plans to price 0% buffered Accelerated Market Participation Securities due Aug. 8, 2013 linked to a basket holding the S&P 500 index with an 85% weight and the iShares MSCI Emerging Markets index fund with a 15% weight, according to an FWP filing with the Securities and Exchange Commission.

If the basket return is positive, the payout at maturity will be par plus 150% of the basket return, subject to a maximum return of at least 26%. The exact cap will be set at pricing. Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

The notes (Cusip: 4042K1VU4) are expected to price Feb. 3 and settle Feb. 8.

HSBC Securities (USA) Inc. is the underwriter.

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