Buyers welcome HSBC's holding company debt

New York

A STRONG response to HSBC's US$7 billion senior holding company bond earlier this week is expected to encourage other foreign banks to tap the US market to meet new regulatory requirements.

HSBC's deal, its largest ever in dollars, will count towards its Total Loss Absorbing Capacity (TLAC) requirements, which were laid down by the Financial Stability Board last October. The bank announced the self-led transaction just a few days after it said that it needed to raise US$60 billion-80 billion of TLAC debt by 2018, well in excess of its US$51 billion maturities over the same period.