HSBC Holdings PLC on Tuesday said that its subsidiaries HSBC Finance Corp and HSBC Bank USA NA sold a portfolio of predominantly US second lien residential mortgage loans to a subsidiary of Credit Suisse Group AG.
The sale was agreed for $1.50 billion (£1.22 billion) in total, with the proceeds to be used to pay down long-term debt and for general corporate purposes.
HSBC said the carrying value of the loan portfolio as at the end of December was $1.50 billion (£1.22 billion), and gross assets were $1.64 billion (£1.34 billion). The disposal of the portfolio is expected to generate a pretax loss on sale, after associated costs, of around $51 million (£41.57 million).
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