HSBC expected to tap US dollar sweet spot

New York

HSBC could bring a large Additional Tier 1 trade as early as next week, potentially following Barclays into the US dollar market after its successful subordinated bond, market sources told IFR.

If HSBC chooses to issue in dollars, the deal would be the year's first AT1 issue from a UK bank in that currency.

With the UK set to vote on whether or not to leave the European Union in June, bankers and investors said a trade next week would be well timed. "Bonds are back up at their highs for the range, and spreads have come in materially," said Phil Jacoby, chief investment officer at Spectrum Asset Management, a buyer of bank capital. "It'…