HSBC Bank USA N A Trade and Supply

HSBC Bank USA, N. A. Trade and Supply Chain International Payment Methods Prepared For: Global Supply Chain Management Conference

HSBC OVERVIEW 2

HSBC Group – Global Network n Global Network supporting our clients and their suppliers Largest Asian Branch Network Local Decision Making Trade legacy dating back to 1865 Local Customer and Marketing support Europe Armenia Austria Belgium Channel Islands Cyprus Czech Republic France Georgia Germany Greece Hungary Ireland Isle of Man Italy Luxembourg Malta Monaco Netherlands Poland Russia Slovakia Spain Sweden Switzerland Turkey United Kingdom Offices 10 1 2 35 1 3 440 1 13 27 11 14 8 3 4 54 2 1 17 6 4 4 3 18 304 1, 654 Asia-Pacific Australia Bangladesh Brunei Darussalam China Hong Kong Special Administrative Region India Indonesia Japan Kazakhstan Korea, Republic of Macau Special Administrative Region Malaysia Maldives New Zealand Pakistan Philippines Singapore Sri Lanka Taiwan Thailand Vietnam Offices 34 9 12 124 334 72 90 10 2 15 6 48 1 10 9 26 26 15 55 1 4 Services are provided by about 9, 500 offices in 85 countries and territories Associated companies are included in the network of offices As of August 4, 2008 3 Americas Argentina Bahamas Bermuda Brazil British Virgin Islands Canada Cayman Islands Chile Colombia Costa Rica El Salvador Honduras Mexico Nicaragua Panama Paraguay Peru United States of America Uruguay Venezuela Offices 247 8 15 1, 673 3 299 13 2 33 40 84 86 1, 625 3 83 6 11 1, 627 5 1 Middle East/Africa Algeria Bahrain Egypt Iran Iraq Israel Jordan Kuwait Lebanon Libya Mauritius Oman Palestinian Autonomous Area Qatar Saudi Arabia South Africa United Arab Emirates Offices 2 6 55 1 13 3 3 1 6 2 12 6 1 7 86 5 18

HSBC Group Strength in North America – full coverage in all three markets Canada l Largest foreign bank in Canada (7 th of all) l 299 offices with over 6, 000 employees l Fully integrated corporate, investment banking, and global markets platform United States Canada l One of the largest financial institution in the US with 53, 000 employees l Fully integrated corporate, investment banking, and global markets platform l > 400 bank branches & > 1, 300 Consumer branches in 48 states USA Mexico l 3 rd Largest bank in Mexico 1, 625 bank branches, 4500 ATMs. l Full range of services Mexico Other North America l 15 branches in Bermuda, 8 in the Bahamas, 3 in BVI, and 13 in the Cayman Islands 4|

HSBC Group Strength in South and Central America – full coverage in key economies Central America. Mexico l El Salvador: 84 offices / branches l Honduras: 86 offices / branches l Costa Rica: 40 offices / branches l Nicaragua: 3 office / branch Honduras El Salvador l Panama: 83 offices / branches Nicaragua Venezuela Costa Rica Brazil Panama l 4 th largest branch network with 1, 673 branches / Columbia 5, 000 ATMS, with Banistmo + 1, 690 branches l Assets of USD 10 Bn and largest consumer finance company with 14 M customers Argentina Peru Brazil Paraguay l 6 th largest bank, 247 offices and branches and largest insurance company Remaining South America Chile Uruguay l Peru: 11 offices / branches l Chile: 2 offices / branches Argentina l Uruguay: 5 offices / branches l Columbia: 33 offices / branches l Venezuela: 1 office / branch 5|

HSBC Group Strength in Europe – full coverage in key economies Strength in all three of Europe’s major economies—leader in the UK & France Number of offices/ branches Armenia Austria Belgium Channel Islands Cyprus Czech Rep. France Germany Georgia Greece Hungary Ireland Isle of Man Italy Luxembourg Malta Monaco Netherlands Poland Russia Slovakia Spain Sweden Switzerland Turkey United Kingdom 6| 10 1 2 35 1 3 440 13 1 27 11 14 8 3 4 54 2 1 17 6 4 4 3 18 304 1, 654

HSBC Group Strength in Asia – unparalleled coverage and capabilities Strength in all Asian Economies – leader in HK and leading foreign bank in China and India Number of offices/ branches Australia Bangladesh Brunei Darussalam 34 9 12 China Hong Kong SAR India Indonesia Japan Kazakhstan Korea, Republic of Macau SAR Malaysia Maldives New Zealand Pakistan Philippines Singapore Sri Lanka Taiwan Thailand Vietnam 7| 124 334 72 90 10 2 15 6 48 1 10 9 26 26 15 55 1 4

HSBC Group Strength in the Middle East– growth through acquisition True Local Presence l HSBC has experience dealing with the Middle East since 1889. Since then, our correspondent and subsidiary network have expanded extensively. Turkey Lebanon Israel Egypt l HSBC Amanah trade products support the increasing Jordan Iraq demand for Islamic banking; tailored to the needs of customers who conduct operations according to Shariah principles Iran Acquistions Strengthen HSBC’s Offering Kuwait Qatar Saudi Arabia l A 40% stake in Saudi British Bank Bahrain UAE l A 46. 5% stake in British Arab Commercial Bank Oman (BACB) l HSBC-Bank Egypt merger (94. 5% HSBC Stake) l A 70% purchase of Dar Es Salaam Investment Bank in Iraq Long-Standing Correspondent Relationships l Correspondent relationships with over 150 local and international banks 8|

MAJOR RISKS 9

Major Risks ► Political Risk War, civil disturbance, or revolution Expropriation Inconvertibility of local currency into dollars or other hard currency. (Transfer Risk) ► Commercial Risk/Business Risk Disputes between buyer and seller. Controlling title to goods pending payment. Customer illiquidity or insolvency Inability to finance company “investment” in export accounts receivable Control of quality of goods. Working capital tied up Increasing reliance on bank debt. ► Documentary Risk ► Interest Rate Risk ► Foreign Exchange Risk 10

Trade and Supply Chain & HSBC ► Banks major role in International Trade is to assist clients in Mitigating risk Effecting Payment Providing a level of trust and integrity to the transaction between two parties that are frequently not well known to each other ► In any trade arrangement, a conflict of wants exists between: Supplier Wants payment for the goods Wants payment prior to shipment of the goods Buyer Wants to receive the correct goods Wants goods at the right time May want credit terms ► Trade and Supply Chain assists in bridging the gap between these conflicting wants 11

METHODS OF PAYMENT 12

Payment Methods ► The choice of payment is determined by: Buyer’s Credit Standing Supplier’s Financial Condition Competition for the Sale Industry Practice Amount of the Transaction Regulatory Environment ► Primary Payment Methods: 13 Payment in Advance Open Account Documentary Collections Documentary Letter of Credit

What is Trade Finance About? Risk Management 14

Relying on Counterparty risk PAYMENT IN ADVANCE OPEN ACCOUNT 15

Payment In Advance/ Open Account ► Payment in Advance: Buyer remits funds before the goods are shipped Supplier ships after the funds are received Buyer at risk: Non-shipment by the seller Quality of goods shipped Exchange controls frustrating payment Negative impact on cash flow ► Open Account Goods dispatched directly to Buyer pays on receipt/ after a specified period Supplier at risk: Non-payment by Buyer Exchange controls may frustrate payment Negative impact on Supplier’s cash flow 16

DOCUMENTARY COLLECTIONS 17

What is Trade Finance About? Risk Management 18

Documentary Collections ► Definition A payment mechanism initiated by the Exporter, using the services of a bank, to collect payment from the Importer This is done by forwarding documents, most importantly title documents, through agreed banking channels ► Types of Payment D/P: Release of Documents against Payment- Documents are not released until payment is made by the Importer D/A: Release of Documents against Acceptance- Documents released upon the promise of payment at a future date as evidenced by a draft drawn on and accepted by the Buyer 19

Documentary Collections 1. Sales Contract Importer Exporter (Drawee) 6. Drawee makes payment (Drawer) 2. Goods Shipped 5. Drawee notified of arrival of documents 8. Payment less charges 3. Documents Presented with Collection Order 7. Payment less charges Collecting Bank Remitting Bank 4. Documents sent to Collecting Bank 20

Documentary Collections- Risk Profile 21

LETTERS OF CREDIT 22

What is Trade Finance About? Risk Management 23

Documentary Letters of Credit ► Definition A written undertaking by a bank Given to the Supplier at the Buyer’s request Promising to effect payment of a stated amount at a stated time Against presentation of documents in compliance with the terms and conditions stated in the Credit ► Types of Payment Sight LC Usance LC 24

Documentary Letters of Credit 1. Sales Contract Importer Exporter (Applicant) 2. LC Application 5. Goods Shipped 8. Payment / Documents Released 10. Payment to Beneficiary (Beneficiary) 6. Documents Presented 9. Payment by Issuing Bank Advising Issuing Bank 7. Documents Presented to Issuing Bank 3. LC Issued 25 Bank 4. LC Advised

Letters of Credit- Risk Profile SELLER Benefits: 1) The exporter has the Issuing Bank’s undertaking to pay against compliant documents regardless of the financial capacity of the Buyer. 2) Ability to Confirm and/or Discount drafts. Key Risks: 1) A high percentage of presentations made under LCs are discrepant therefore making the payment obligation of the issuing entity null and void. 2) Depending on the country the goods are being shipped to, Country & Bank Risk can negate a major protective factor of LC’s. **Two key factors for discrepancies are poor documentation and late shipment/presentation. 26

Documentary Letters of Credit ► Remember- Banks deal in Documents, not goods! Importer must still pay if exporter’s documents comply with letter of credit. ► Governed by the following regulations: Uniform Customs & Practice for documentary credits ICC No. 600 (2007 revision) International Chamber of Commerce- Publication Number 600 (1 JUL 07) 27

TERMINOLOGY 28

Terminology ► Applicant Buyer/ Importer/ Account Party ► Beneficiary Seller/ Exporter/ Drawer ► Issuing Bank Importer’s bank Guarantees payment against correct documents ► Advising Bank Correspondent Bank- close to seller, but not always seller’s bank ► Confirming Bank Located in beneficiary’s country Adds “guarantee” of payment ► Negotiating Bank 29 Correspondent Bank Close to Seller Often advising bank Always the confirming bank (if any) Sometimes the paying bank Checks and processes documents

Terminology ► Paying Bank May be the negotiating bank May be the advising bank May be the issuing bank ► Accepting Bank Usance Letter of credit Drawee of draft 30

Incoterms ► Group E EXW Ex Work FCA Free Carrier Main Carriage FAS Free Alongside Ship Unpaid FOB Free on Board CFR Cost and Freight Main Carriage CIF Cost, Insurance and Freight Paid CPT Carriage Paid To CIP Carriage and Insurance Paid To DAF Delivered at Frontier DES Delivered Ex Ship DEQ Delivered Ex Quay DDU Delivered Duty Unpaid DDP Delivered Duty Paid Departure ► Group F ► Group C ► Group D Arrival 31

Incoterms ► Any Mode of Transport EXW Ex Work (…named place) Including Multimodal FCA Free Carrier (…named place) CPT Carriage Paid To (…named place of dest. ) CIP Carriage and Insurance Paid To (named place of dest. ) DAF Delivered at Frontier (…named place) DDU Delivered Duty Unpaid (…named place of dest. ) DDP Delivered Duty Paid (…named place of dest. ) ► Air Transport. FCA ► Rail Transport FCA Free Carrier (…named place) ► Sea and Inland FAS Free Alongside Ship(…named port of dest. ) ► Waterway Transport FOB Free on Board (. . named port of dest. ) CFR Cost of Freight …named port of dest. ) CIF Cost, Insurance and Freight (…named port of dest. ) DES Delivered Ex Ship (…named port of dest. ) DEQ 32 Free Carrier (…named place) Delivered Ex Quay (…named port of dest. )

Export Letter of Credit- Key Requests ► Request: Irrevocable (confirmed) letter of credit ► Advise to: Full address of bank’s foreign trade department ► Negotiation: Freely negotiable ► Reimbursement: Must be on a bank in the USA and authority must be given to HSBC Bank to claim reimbursement by CABLE or debit account ► Charges: All banking charges in the USA are for account of the buyer/seller. All banking charges outside the USA are for account of the buyer/seller. In case of time draft, any discount and acceptance charges are for the account of buyer/seller. ► Domestic LC: Ask the applicant to request their issuing bank to send letter with authorized signatures to negotiating bank. ► Other considerations: Confirmation, latest shipment date, expiration date/ what counter, partial shipment, inspection certificate, boycott clause 33

Common Discrepancies ► Credit expired ► Late presentation of documents ► Late shipment ► Short shipment ► Credit amount exceeded ► Shipment from/to incorrect ports ► Presentation of incorrect insurance ► Insurance coverage not in credit currency ► Under-insured ► Inconsistent documents ► Description of goods differ on credit and invoice ► Draft and invoice amounts differ ► Consequences: Confirmation, if any, is voided Guarantee to pay by issuing bank is voided Result: lost protection of the letter of credit 34

Importers- Key Points ► On the application: Beneficiary section: telephone number of exporter Control the shipment with latest shipment & presentation date Terms of sale Inspection Certificate Bank charges, specify for whose account ► REMEMBER- BANKS ONLY DEAL WITH DOCUMENTS! IMPORTERS MUST PAY IF EXPORTER’S DOCUMENTS COMPLY WITH THE LC. 35

BEYOND THE BASICS 36

Trade Cycle Exporter 37 Importer

Confirmed Letter of Credit ► When a bank, other than the Issuing Bank, adds its undertaking to pay under the Letter of Credit Usually the exporter’s own bank is the Confirming Bank ► Why is a Confirmation necessary? Beneficiary doubts the Issuing Bank’s ability to pay (e. g. bank risk, country risk, or exchange controls) Beneficiary needs payment on presentation of documents Beneficiary wants “without recourse” financing 38

Confirmed Documentary Letters of Credit 1. Sales Contract Importer Exporter (Applicant) 2. LC Application 5. Goods Shipped 8. Payment / Documents Released 10. Payment to Beneficiary (Beneficiary) 6. Documents Presented 9. Payment by Issuing Bank Advising/ Confirming Bank Issuing Bank 7. Documents Presented to Issuing Bank 3. LC Issued 39 4. LC Advised

Confirmed Letters of Credit (cont’d) ► Used to mitigate issuing bank risk and country risk ► Structure the letter of credit to ensure that documents are presented correctly against the letter of credit. We typically work with our clients to secure a “sample” letter of credit from the foreign bank to review the terms before the letter of credit is issued. ► Discounting of the drafts If the Buyer is asking for extended terms, and is located in an area with high interest rates (ex. - Latin/South America), may have the opportunity to offer them 30/60/90/180 day terms (in select countries we may have an opportunity to offer even longer terms) HSBC would discount the drafts using US interest rates- extremely attractive to the Buyer ► In a program such as this, the Exporter would be offering its customers a low interest rate loan while reducing Exporter letter of credit costs. By getting HSBC involved early enough in the process, we may have a relationship with either the Buyer in country, or a correspondent relationship with the Buyer’s bank. In either case, we may have the opportunity to finance them directly. Commonly referred to as a Banker’s Acceptance, this form of finance is a time draft drawn on and accepted by the exporter. The bank’s acceptance of the draft is a formal acknowledgement of the bank’s unconditional promise to pay at its maturity. 40

Direct Documentary Collections ► Service that facilitates payment for international shipments utilizing both HSBC as the collecting bank and the Buyer’s bank as payment agents. Both banks act as intermediary collection agents. This is a low cost alternative to letters of credit. ► Under a Documentary Collection, the drafts and documents are forwarded to the bank for processing. Under a Direct Collection documents are sent out directly by the Supplier or Supplier’s Freight Forwarder Supplier is sent a receipt to then track the payment. ► Used when there is a high level of trust and confidence between the Buyer and the Supplier. ► Advantages to Exporter: Enhances competitive position because collections are low cost and there is no credit exposure to buyer. Banks monitor the collection and automatically send out periodic tracers. Goods don’t exchange hands until payment from buyer’s bank is received. More secure than open account. Documents are controlled by agent banks until payment or the draft is accepted Governed by internationally accepted rules and regulations. ► Disadvantage to Exporter: Less secure than a letter of credit or cash in advance terms Documents are not reviewed for discrepancies. 41

Direct Collections 1. Sales Contract Importer Exporter (Drawee) 5. Drawee makes payment 4. Drawee notified of arrival of documents Collecting Bank 42 2. Goods Shipped 3. Documents Presented with Collection Order 6. Payment less charges (Drawer) 7. Payment less charges Remitting Bank

Direct/Documentary Collections with an AVAL ► Exporter may require that its customer’s bank provide an “ Aval” The “Aval” is the act of subscribing one’s signature at the bottom of a promissory note or bill of exchange: this is an act of surety ship by the party signing, in favor of the party to whom the note or bill is given. ► Advantages to the Exporter: More secure because supported by the availability under the customer’s line of credit, at no additional cost to the Exporter. The cost to the customer is typically less than that of a letter of credit. ► Disadvantage to the Exporter: Less secure than cash or a letter of credit from a highly rated bank. 43

Open Account-Enhanced By Export Insurance ► Through our trade services team and our partnership with Euler Hermes, HSBC can help identify which of your customers in certain geographic regions qualify for open account terms secured by export insurance. At times this alternative can be a cost effective. ► Advantage to the Exporter: Ability to customize a program in which the country and level of coverage can be matched with your desired exposure levels. ► Disadvantage to the Exporter: The cost of insurance is borne by Exporter, and must be passed on to the customer through some form of price increase. 44

Standby Letters of Credit ► Any Letter of Credit, which represents an obligation to the beneficiary on the part of the issuer to make payment on default by A/C party to repay money borrowed by A/C party to make payment on buyers indebtedness ► Aim is NOT to draw against the Standby ► Trade Uses: 45 Bid Bond Performance Bond Overseas Bank Guarantees Trade Credit Support

Shared Client ► In situations where we have a mutual customer relationship, HSBC may be able to leverage its global presence, either in country or through an affiliate/partner bank. ► In some cases we may be able to provide financing directly to the exporter’s customer, either on a recourse, partial recourse, or non-recourse basis. As in all of our alternatives, your trade finances representative would work directly with your organization in the coordination of these types of programs. 46

Import Core Trade Products n Strength in Traditional Trade products n Leveraging local foreign expertise to deliver superior service n Global reach – our importer’s suppliers are often our customers overseas Import Commercial Letter of Credit Documentary Collections · Issuance and Document Examination services to the highest standards · Shipping Guarantees and Airway Release Bills- assist in the prompt release of merchandise when the actual goods arrive in advance of the Commercial Documents · Documents Against Payment · Documents Against Acceptance Delivery Channel Other Frequently Requested Services 47 · HSBCnet platform – Provides the ability to issue LCs electronically user friendly, flexible, provides a view into all trade transactions · Instant Advice- email notification of LC issuance, amendments, and payments · Bankers Acceptances - A self-liquidating, fixed rate method of re-financing short term trade transactions; typically negotiable instrument · Global reach- our importer’s suppliers are often our customers overseas; also gives us the ability to give advice as we collaborate with overseas affiliates

Export Solutions n Strength in Traditional Trade products n Leveraging local foreign expertise to deliver competitive risk mitigation n Innovation and client collaboration; working together to deliver alternate and custom solutions Export Commercial Letter of Credit Delivery Channels · · Competitive pricing and risk mitigation structures Advising, and Document handling services to the highest standards Confirmation and Discounting services of foreign bank risk Silent confirmation for sensitive markets and commercial situations · Electronic LC Advising (Instant @dvice) · HSBCnet platform – integrated Global Transaction Banking platform · Worldwide Forfait desk network with appetite foreign corporate, government, and bank risk · Project and Export Finance for long term capital projects · Short term working capital programs with Exim Bank EXIM Working Capital Guarantee Program · · Other Frequently Requested Services 48 Forfaiting and Project/Export Finance · Ability to discount bank avalised drafts in markets dominated by collections · Handling of Transferable Letters of Credit, Deferred Payments and Back-to. Back letters of Credit · Standby Letters of Credit – Bid and Performance Bonds HSBC has delegated authority for up to $5 MM Product must be at least 50% US content Generally 1 year or less Must be fully collateralized via monthly borrowing base

APPENDIX 49

Key Trade and Supply Chain Clients Commercial Letter of Credit Issuer Structured Open Account Solutions Risk Mitigation And Export Solutions ******* This Notice Appears as a Matter of Record Only Structured Open Account Solutions Commercial Letter of Credit Issuer Structured Open Account Solutions Risk Mitigation And Export Solutions ******* This Notice Appears as a Matter of Record Only Risk Mitigation And Export Solutions ******* ******* This Notice Appears as a Matter of Record Only This Notice Appears as a Matter of Record Only Commercial Letter of Credit Issuer Risk Mitigation And Export Solutions ******* This Notice Appears as a Matter of Record Only Risk Mitigation Risk Mitiation And Export Solutions ******* ******* This Notice Appears as a Matter of Record Only This Notice Appears as a Matter of Record Only Structured Open Account Solutions Commercial Letter of Credit Issuer ******* This Notice Appears as a Matter of Record Only ******* Commercial Letter of Credit Issuer Structured Open Account Solutions ******* This Notice Appears as a Matter of Record Only Commercial Letter of Credit Issuer 50 | Commercial Letter of Credit Issuer

Key Global Awards Best Online Trade Finance Bank 2008 Best International Trade Bank in China 2008 Best International Trade Bank in Malaysia 2008 Best International Trade Bank in Pakistan 2008 Best Trade Bank in the Middle East and North Africa 2006 – 2008 Best Structured Trade Bank 2007 Best Trade Documentation Bank 2007 Best Factoring House 2007 Best Online Trade Finance Provider 2007 Best Hardware/ Software Provider Bank in Asia 2007 Best Trade Bank in Asia 2004 – 2006 Best Trade Bank in Central Asia 2007 Trade Finance Best Global Supply Chain Finance Provider 2008 Best Supply Chain Provider in the Middle East 2008 Best Pre-Shipment Financing Solution 2008 Best Trade Finance Provider in the UK 2006 -2009 Best Trade Finance Provider in HK 2002 -2009 Best Trade Finance Bank in Asia 2002 – 2007 Best Trade Finance Bank in the Middle East 2007 Best Trade Finance Services (Internet Banking) 2006 Best Trade Finance Provider in Saudi Arabia 2009 Global Finance Best Bank Asia 2007: Supply Chain Finance Treasury Management International Leading Trade Services Bank in Asia Pacific, the Middle East & North Africa 2007 Leading Bank for Documentary Processing 2007 Global Trade Review Best Trade Finance Bank in Asia 2003 – 2008 Best Trade Finance Bank in HK 2007 -2009 Best Structured Trade Solution 2009 Best Trade Finance Bank in Taiwan 2008 Best Trade Finance Bank in Vietnam 2008 -2009 Best Trade Finance Bank in Malaysia 2009 The Asset Best Trade Finance Bank in Asia 1997 – 2007 Best Trade Finance Bank in Japan 2007, 2009 Finance. Asia 51 | Deal of the Year 2007 Trade & Forfaiting Review Deal of the Year 2009 Global Trade Review Best Global Bank Best Global Transaction Banking House Euromoney

Disclaimer PRODUCTS AND SERVICES ARE OFFERED BY EITHER HSBC BANK USA, N. A. , MEMBER FDIC; OR HSBC SECURITIES (USA) INC. A REGISTERED BROKER DEALER AND A REGISTERED FUTURES COMMISSION MERCHANT. HSBC SECURITIES (USA) INC. IS A MEMBER OF THE NEW YORK STOCK EXCHANGE, NASD AND SIPC AND REGULATED BY THE SFA FOR THE CONDUCT OF INVESTMENT BUSINESS IN THE UNITED KINGDOM. HSBC BANK USA, N. A. AND HSBC SECURITIES (USA) INC. ARE MEMBERS OF THE HSBC GROUP. ANY MEMBER OF THE HSBC GROUP MAY FROM TIME TO TIME UNDERWRITE, MAKE A MARKET OR OTHERWISE BUY OR SELL AS PRINCIPAL SECURITIES OR OTHER INSTRUMENTS MENTIONED HEREIN, OR TOGETHER WITH THEIR DIRECTORS, OFFICERS AND EMPLOYEES MAY HAVE EITHER A LONG OR SHORT POSITION IN THE SECURITIES, COMMODITIES CURRENCIES OR OTHER INSTRUMENTS MENTIONED IN THIS REPORT OR FUTURES OR OPTIONS CONTRACTS CONVERTIBLE INTO SECURITIES OR OTHER INSTRUMENTS MENTIONED IN THIS REPORT, OR MAY PERFORM OR SEEK TO PERFORM INVESTMENT BANKING SERVICES FOR THOSE COMPANIES MENTIONED HEREIN. THE INFORMATION IN THIS REPORT IS DERIVED FROM A VARIETY OF SOURCES WE BELIEVE TO BE RELIABLE; HOWEVER, WE CANNOT GUARANTEE ITS ACCURACY OR COMPLETENESS, NOR SHALL WE BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL LOSSES OR DAMAGES INCLUDING BUT NOT LIMITED TO ERRORS (INCLUDING ERRORS OF TRANSMISSION), INACCURACIES, OMISSIONS, CHANGES IN MARKET FACTORS OR CONDITIONS, OR ANY OTHER CIRCUMSTANCES BEYOND OUR CONTROL. THE INFORMATION, ANALYSIS AND OPINONS CONTAINED HEREIN CONSTITUTE OUR PRESENT JUDGEMENT WHICH IS SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE. THIS REPORT IS INTENDED SOLELY FOR THE INFORMATION OF THE SPECIFIED ADDRESSEE, IS FOR PRIVATE CIRCULATION AND NOT INTENDED FOR USE BY PRIVATE CLIENTS AS DEFINED BY THE SFA. THIS IS NOT A RECOMMENDATION , OFFER OR SOLICITATION TO PURCHASE OR SELL ANY SECURITY, COMMODITY, CURRENCY OR OTHER INSTRUMENT. THIS REPORT DOES NOT CONSIDER SPECIFIC OBJECTIVES, CIRCUMSTANCES OR NEEDS OF INDIVIDUAL RECIPIENTS OF THIS REPORT SHOULD SEEK FINANCIAL ADVICE REGARDING THE APPROPRIATENESS OF INVESTING IN ANY SECURITY, COMMODITY, CURRENCY OR DERIVATIVE INSTRUMENT OR STRATEGY CONTAINED HEREIN. SECURITIES, SPOT AND FORWARD FOREIGN EXCHANGE, CURRENCY OPTOINS, COMMODITIES AND CERTAIN OTHER PRODUCTS DISCUSSED HERIN ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF HSBC BANK USA, N. A. , ARE NOT GUARANTEED BY HSBC BANK USA, N. A. ; AND ARE SUBJECT TO INVESTMENT RISKS INCLUDING POSSIBLE LOSS OF PRINCIPAL. 52 |