HSBC 2008 Annual Report Download - page 422

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 28, 29 and 30
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The carrying amount at 31 December 2008 of financial liabilities designated at fair value was US$969 million less
than the contractual amount at maturity (2007: US$130 million less). At 31 December 2008, the cumulative amount
of the change in fair value attributable to changes in credit risk was a gain of US$2,638 million (2007: gain of
US$548 million).
28 Debt securities in issue
2008 2007
US$m US$m
Bonds and medium-term notes .......................................................................................................... 160,927 221,767
Other debt securities in issue ............................................................................................................. 85,023 108,083
245,950 329,850
Of which debt securities in issue reported as:
– trading liabilities (Note 26) ......................................................................................................... (31,288) (44,684)
– financial liabilities designated at fair value (Note 27) ............................................................... (34,969) (38,587)
179,693 246,579
Certain debt securities in issue are managed on a fair value basis as part of HSBC’s interest rate risk management
policies. The hedged portion of these debt securities is presented within the balance sheet caption ‘Financial liabilities
designated at fair value’, with the remaining portion included within ‘Trading liabilities’. The following table
analyses the carrying amount of bonds and medium-term notes in issue at 31 December with original maturities
greater than one year:
2008 2007
US$m US$m
Fixed rate
Secured financing:
1.14% to 3.99%: due 2009 to 2013 ............................................................................................... 767 115
4.00% to 4.99%: due 2009 to 2016 ............................................................................................... 1,590 1,409
5.00% to 5.99%: due 2009 to 2017 ............................................................................................... 2,754 13,002
6.00% to 6.99%: due 2008 ............................................................................................................ – 459
7.00% to 8.99%: due 2009 to 2025 ............................................................................................... 14 521
9.00% to 9.99%: due 2009 to 2028 ............................................................................................... 462 –
Other fixed rate senior debt:
0.01% to 3.99%: due 2009 to 2069 ............................................................................................... 21,790 28,322
4.00% to 4.99%: due 2009 to 2046 ............................................................................................... 13,088 20,909
5.00% to 5.99%: due 2009 to 2036 ............................................................................................... 22,357 18,511
6.00% to 6.99%: due 2009 to 2036 ............................................................................................... 11,176 15,400
7.00% to 7.99%: due 2009 to 2032 ............................................................................................... 4,995 4,037
8.00% to 9.99%: due 2009 to 2036 ............................................................................................... 1,822 1,666
10.00% or higher: due 2009 to 2017 ............................................................................................. 884 867
81,699 105,218
Variable interest rate
Secured financings – 1.00% to 9.99%: due 2009 to 2023 ................................................................ 27,741 47,404
FHLB advances – 5.00% to 5.99%: due 2009 to 2036 ..................................................................... 3,156 5,500
Other variable interest rate senior debt – 2.16% to 9.99%: due 2008 to 2057 ................................. 43,849 56,244
74,746 109,148
Structured notes
Interest rate linked ............................................................................................................................. 348 770
Equity, equity index or credit-linked ................................................................................................. 4,134 6,631
4,482 7,401
Total bonds and medium-term notes ................................................................................................. 160,927 221,767