HSBC’s rate-hedge reset to generate $1bn bond loss

Unwind of lower-yielding bonds costs $578m in Q3, with another $400m expected by year-end

HSBC is on course to swallow almost $1 billion in crystallised mark-to-market losses this year as it purges its treasury of older and devalued bonds in an effort to catch up with the yield curve.

The bank booked a $578 million loss after disposing of bonds held at fair value in the third quarter, and expects another $400 million hit in Q4 as it wraps up the operation.

In its latest earnings release, HSBC described the sale as a repositioning of its hold-to-collect-and-sell portfolio, a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here