Interim Report - 16 of 24

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

 

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