HSBC spins around on disco bonds

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By Jasper Cox
06 Aug 2019

HSBC will grandfather its discounted perpetual (disco) bonds after all. Its decision last year to declare the securities to be fully eligible as tier two capital angered some investors: it has now backtracked after the introduction of new capital rules, although they will lose eligibility at a later date.

Some $9bn of tier two securities HSBC had previously thought to be fully eligible under the EU’s Capital Requirements Regulation (CRR) are now grandfathered to June 2025 under CRR 2, the bank said in a fixed income presentation on Monday. CRR 2 was introduced earlier this ...

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