RNS Number : 2032X
HSBC Holdings PLC
26 August 2015
 



Securitisation exposures and other structured products

The following table summarises the carrying amount of our asset-backed securities ('ABS's) exposure by categories of collateral and includes assets held in the GB&M legacy credit portfolio with a carrying value of $19bn (30 June 2014: $27bn; 31 December 2014: $23bn).

At 30 June 2015, the available-for-sale reserve in respect of ABSs was a deficit of $818m (30 June 2014: $951m; 31 December 2014: $777m). For 2015, the impairment write-back in respect of ABSs was $90m (30 June 2014: $203m; 31 December 2014: $276m).

Representations and warranties related to mortgage sales and securitisation activities

We have been involved in various activities related to the sale and securitisation of residential mortgages that are not recognised on our balance sheet. These activities are set out on page 162 of the Annual Report and Accounts 2014.

There have been no significant changes in the liabilities recognised in respect of various representations and warranties regarding the origination and sale by HSBC Bank USA of mortgage loans, primarily to government sponsored entities, nor repurchase demands outstanding since 31 December 2014.


 

Carrying amount of HSBC's consolidated holdings of ABSs


              Trading


           Available               for sale


                Held to  maturity


       Designated
      at fair value 
through
     profit or loss


          Loans and        receivables


                    Total


            Of which
    held through  
consolidated

                       SEs



                       $m


                       $m


                       $m


                       $m


                       $m


                       $m


                       $m
















Mortgage-related assets


2,343


23,469


14,140


-


742


40,694


7,047

- sub-prime residential


114


2,571


-


-


164


2,849


1,884

- US Alt-A residential


88


2,353


9


-


85


2,535


2,247

- US Government agency and sponsored enterprises:















MBSs


158


14,611


14,131


-


-


28,900


-

- other residential


1,279


1,181


-


-


205


2,665


660

- commercial property


704


2,753


-


-


288


3,745


2,256
















Leveraged finance-related assets


263


3,001


-


-


191


3,455


2,092

Student loan-related assets


250


3,271


-


-


95


3,616


3,057

Other assets


1,602


973


-


13


212


2,800


683
















At 30 June 2015


4,458


30,714


14,140


13


1,240


50,565


12,879
















Mortgage-related assets


1,117


29,863


1,022


-


1,477


33,479


11,587

- sub-prime residential


150


3,231


-


-


394


3,775


3,041

- US Alt-A residential


96


3,214


18


-


128


3,456


2,738

- US Government agency and sponsored enterprises:















MBSs


136


16,739


1,004


-


-


17,879


-

- other residential


266


1,737


-


-


362


2,365


1,336

- commercial property


469


4,942


-


-


593


6,004


4,472
















Leveraged finance-related assets


298


4,836


-


-


242


5,376


4,209

Student loan-related assets


227


3,654


-


-


123


4,004


3,546

Other assets


1,375


1,245


-


22


1,051


3,693


995
















At 30 June 2014


3,017


39,598


1,022


22


2,893


46,552


20,337
















Mortgage-related assets


1,882


21,350


13,447


-


1,264


37,944


7,992

- sub-prime residential


122


3,081


-


-


308


3,511


2,075

- US Alt-A residential


96


3,022


11


-


110


3,239


2,411

- US Government agency and sponsored enterprises:















MBSs


82


10,401


13,436


-


-


23,919


-

- other residential


928


1,220


-


-


330


2,478


652

- commercial property


654


3,627


-


-


516


4,797


2,854
















Leveraged finance-related assets


172


3,660


-


-


218


4,050


2,526

Student loan-related assets


242


3,545


-


-


119


3,906


3,284

Other assets


1,264


1,114


-


19


646


3,043


758
















At 31 December 2014


3,560


29,670


13,447


19


2,247


48,943


14,560


 


This information is provided by RNS
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