Bonds

A great way to diversify your portfolio, bonds can provide you with a regular fixed income that could even be tax-free! Bonds are loans made to corporations or governments, and are rated on the issuer's ability to make payments. The lower the rating, the greater the risk and the higher the interest rate.

HSBC Securities (USA) Inc. offers investors a variety of choices, including:

• Municipal Bonds - If you seek income free of federal and, in many cases, state and local income taxes. HSBC provides convenient access to virtually the entire universe of municipal bonds, a market with over $100 billion in new issues each year.
• U.S. Government Bonds - Treasury bonds, bills and notes with the lowest risk of any fixed income investment, because their interest and principal payments are backed by the full faith and credit of the U.S.Government.
• Agencies - Issued by various U.S. Government sponsored agencies, but not direct obligations of the U.S. A highly rated, low risk security.
• Corporate Bonds - Long-term secured debts of major U.S. and worldwide corporations, they are a good source of predictable cash flow and distribution of principal at maturity.
• Foreign Bonds - A wide range of foreign bonds including sovereigns (government backed issues) and corporate issues can be U.S. or non U.S. denominations.

An HSBC Securities representative will be happy to discuss these investments with you and the potential risks and returns they offer. Just call 1-888-800-HSBC (4722) to take advantage of our worldwide resources and connections right where you bank.