Personal Finance

HSBC sells predominantly US residential mortgage loans for $1.50 billion (£1.22 billion)

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).

Risk Warning:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Comment here

seven + 8 =