HSBC set to pass Lloyds as Europe's biggest issuer of CoCo bonds

London

HSBC Holdings will surpass Lloyds Banking Group this year as Europe's biggest issuer of the riskiest bank bonds, say some of region's biggest debt investors.

HSBC will sell about US$4 billion of additional Tier 1 notes, a type of contingent capital bond designed to absorb losses, to bring its total of such securities to almost US$10 billion, said Laurent Frings at Aberdeen Asset Management and Steve Hussey at AllianceBernstein Holding.