HSBC 2008 Annual Report Download - page 188

HSBC HOLDINGS PLC
Report of the Directors: Impact of Market Turmoil (continued)
SPEs > SIVs and conduits > Maximum ex
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HSBC’s maximum exposure to unconsolidated SPEs Securitisations1 Money market funds1 Non-money market funds1
HSBC originated assets
Non-HSBC originated assets2
CNAV funds
Enhanced VNAV funds
VNAV4 funds
Specialist funds
Local funds3,4
Multi- manager funds
Other Total
US$bn US$bn US$bn US$bn US$bn US$bn US$bn US$bn US$bn US$bn
At 31 December 2008
Total assets ..................................................................... 0.6 13.5 28.2 2.0 26.6 82.5 93.1 21.0 20.9 288.4
Funding provided by HSBC ........................................... – 0.2 – – 0.3 – 1.0 – 8.3 9.8
MTNs .......................................................................... – 0.2 – – – – – – 8.3 8.5
Investments in funds .................................................. – – – – 0.3 – 1.0 – – 1.3
Total maximum exposure to unconsolidated SPEs ........ –
0.2 – – 0.3 – 1.0 – 4.1 5.6
At 31 December 2007
Total assets ..................................................................... 0.9 16.0 56.8 6.2 22.6 131.0 123.3 30.4 23.5 410.7
Funding provided by HSBC ........................................... – 0.4 1.3 1.3 0.3 0.1 2.6 0.1 7.2 13.3
MTNs .......................................................................... – 0.3 – – – – – – 7.2 7.5
Mezzanine notes ......................................................... – 0.1 – – – – – – – 0.1 Investments in funds .................................................. – – 1.3 1.3 0.3 0.1 2.6 0.1 – 5.7
Total maximum exposure to unconsolidated SPEs ........ – 0.4 1.3 1.3 0.3 0.1 2.6 0.1 4.5 10.6
1 HSBC’s financial investments in off-balance sheet money market funds and non-money market funds have been classified as available-for-sale securities, and measured at fair value. HSBC’s financial
investments in off-balance sheet securitisations have been classified as trading assets and available-for-sale securities, and measured at fair value.
2 In the US, HSBC has established securitisation programmes where term-funded SPEs are used to securitise third-party originated mortgages, mainly sub-prime and Alt-A residential mortgages. The
majority of these SPEs are not consolidated by HSBC as it is not exposed to the majority of the risk and rewards of ownership in the SPEs. No liquidity facility has been provided by HSBC.
3 Local investment management funds. 4 Total assets for 2007 have been restated as a result of reclassifying assets amounting to US$17 billion from VNAV funds to local funds.