HSBC 2012 Annual Report Download - page 476

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
29 – Debt securities in issue / 30 – Liabilities of disposal groups / 31 – Liabilities under insurance contracts
474
HSBC Holdings
At 31 December
2012 2011
US$m US$m
Debt securities in issue (Note 29):
– owed to third parties .......................................................................................................................... 8,577 5,753
Subordinated liabilities (Note 33):
– owed to third parties .......................................................................................................................... 10,358 11,443
– owed to HSBC undertakings ............................................................................................................. 4,260 3,955
23,195 21,151
The carrying amount at 31 December 2012 of financial liabilities designated at fair value was US$3,199m more than
the contractual amount at maturity (2011: US$722m more). The cumulative amount of the change in fair value
attributable to changes in credit risk was a loss of US$164m (2011: gain of US$2,096m).
29 Debt securities in issue
At 31 December
2012 2011
US$m US$m
Bonds and medium-term notes ................................................................................................................. 155,661 151,367
Other debt securities in issue .................................................................................................................... 48,207 61,830
203,868 213,197
Of which debt securities in issue reported as:
– trading liabilities (Note 27) ............................................................................................................... (31,198) (29,987)
– financial liabilities designated at fair value (Note 28) ...................................................................... (53,209) (52,197)
119,461 131,013
Certain debt securities in issue are managed on a fair value basis as part of HSBC’s interest rate risk management
policies. The debt securities being hedged are presented within the balance sheet caption ‘Financial liabilities
designated at fair value’, with the remaining debt securities included within ‘Trading liabilities’. The following table
analyses the carrying amount of bonds and medium-term notes in issue at 31 December with original maturities
greater than one year:
Bonds and medium-term notes
HSBC
At 31 December
2012 2011
US$m US$m
Fixed rate
Secured financing:
0.01% to 3.99%: until 2056 ................................................................................................................. 7,514 8,259
4.00% to 4.99%: until 2013 ................................................................................................................. 231 1,307
5.00% to 5.99%: until 2019 ................................................................................................................. 189 332
8.00% to 9.99%: until 2028 ................................................................................................................. 252 276
Other fixed rate senior debt:
0.01% to 3.99%: until 2078 ................................................................................................................. 48,620 38,346
4.00% to 4.99%: until 2046 ................................................................................................................. 18,722 15,515
5.00% to 5.99%: until 2041 ................................................................................................................. 14,766 17,525
6.00% to 6.99%: until 2046 ................................................................................................................. 5,207 7,056
7.00% to 7.99%: until 2026 ................................................................................................................. 713 3,083
8.00% to 9.99%: until 2036 ................................................................................................................. 199 379
10.00% or higher: until 2028 ............................................................................................................... 108 437
96,521 92,515
Variable interest rate
Secured financings – 0.01% to 13.99%: until 2068 ................................................................................. 7,897 7,279
FHLB advances – 0.01% to 0.99%: until 2036 ........................................................................................ 1,000 1,000
Other variable interest rate senior debt – 0.01% to 12.99%: until 2057 .................................................. 43,104 47,393
52,001 55,672