HSBC to price seven-year leveraged steepener CDs tied to CMS rates

By Marisa Wong

Morgantown, W.Va., Feb. 8 – HSBC Bank USA, NA plans to price leveraged steepener certificates of deposit due Feb. 28, 2025, according to a term sheet.

Interest will accrue at 4.25% per year for the first year. After that, the interest rate will be 5 times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate, with a floor of zero. Interest will be payable quarterly.

HSBC Securities (USA) Inc. is the agent. Incapital LLC is the distributor.

The CDs will price Feb. 23.

The Cusip number is 40434YUK1.

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