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).
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Getting Money Wise. The information provided on Getting Money Wise is intended for informational purposes only. Getting Money Wise is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.