HSBC 2010 Annual Report Download - page 343

341
Overview Operating & Financial Review Governance Financial Statements Shareholder Information
29 Financial liabilities designated at fair value
HSBC
2010 2009
US$m US$m
Deposits by banks and customer accounts ............................................................................................... 6,527 6,586
Liabilities to customers under investment contracts ................................................................................ 11,700 10,865
Debt securities in issue (Note 30) ............................................................................................................. 46,091 38,208
Subordinated liabilities (Note 34) ............................................................................................................ 19,395 20,180
Preferred securities (Note 34) ................................................................................................................... 4,420 4,253
88,133 80,092
The carrying amount at 31 December 2010 of financial liabilities designated at fair value was US$1,631m more than
the contractual amount at maturity (2009: US$1,346m more). The cumulative amount of the change in fair value
attributable to changes in credit risk was a gain of US$1,279m (2009: gain of US$1,510m).
HSBC Holdings
2010 2009
US$m US$m
Subordinated liabilities (Note 34):
– owed to third parties .......................................................................................................................... 12,029 12,549
– owed to HSBC undertakings ............................................................................................................. 4,259 4,360
16,288 16,909
The carrying amount at 31 December 2010 of financial liabilities designated at fair value was US$855m more than
the contractual amount at maturity (2009: US$769m more). The cumulative amount of the change in fair value
attributable to changes in credit risk was a gain of US$439m (2009: gain of US$191m).
30 Debt securities in issue
2010 2009
US$m US$m
Bonds and medium-term notes ................................................................................................................. 162,948 160,295
Other debt securities in issue .................................................................................................................... 62,270 62,401
225,218 222,696
Of which debt securities in issue reported as:
– trading liabilities (Note 28) ............................................................................................................... (33,726) (37,592)
– financial liabilities designated at fair value (Note 29) ...................................................................... (46,091) (38,208)
145,401 146,896
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: