HSBC 2007 Annual Report Download - page 420

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 28, 29 and 30
418
The carrying amount at 31 December 2007 of financial liabilities designated at fair value was US$130 million less
than the contractual amount at maturity (2006: US$551 million more). At 31 December 2007, the accumulated
amount of the change in fair value attributable to changes in credit risk was a gain of US$548 million (2006: loss of
US$335 million).
28 Debt securities in issue
2007 2006
US$m US$m
Bonds and medium term notes .......................................................................................................... 221,767 203,404
Other debt securities in issue ............................................................................................................. 108,083 94,203
329,850 297,607
Of which debt securities in issue reported as:
– trading liabilities (Note 26) ......................................................................................................... (44,684) (34,115)
– financial liabilities designated at fair value (Note 27) ............................................................... (38,587) (33,167)
246,579 230,325
Certain debt securities in issue are managed on a fair value basis as part of HSBC’s interest rate risk management
policies. The hedged portion of these debt securities is presented within the balance sheet caption ‘Financial liabilities
designated at fair value’, with the remaining portion included within ‘Trading liabilities’. The following table
analyses the carrying amount of bonds and medium term notes in issue at 31 December with original maturities
greater than one year:
2007 2006
US$m US$m
Fixed rate
Debentures – 8.375%: due 2007 ........................................................................................................ – 100
Secured financing:
1.14% to 3.99%: due 2008 to 2009 ............................................................................................... 115 195
4.00% to 4.99%: due 2008 to 2010 ............................................................................................... 1,409 1,730
5.00% to 5.99%: due 2008 to 2012 ............................................................................................... 13,002 6,096
6.00% to 6.99%: due 2008 ............................................................................................................ 459 –
7.00% to 8.99%: due 2008 to 2025 ............................................................................................... 521 313
Other fixed rate senior debt:
0.01% to 3.99%: due 2008 to 2066 ............................................................................................... 28,322 17,326
4.00% to 4.99%: due 2008 to 2046 ............................................................................................... 20,909 17,759
5.00% to 5.99%: due 2008 to 2024 ............................................................................................... 18,511 34,191
6.00% to 6.99%: due 2008 to 2033 ............................................................................................... 15,400 16,196
7.00% to 7.99%: due 2008 to 2032 ............................................................................................... 4,037 6,692
8.00% to 9.99%: due 2008 to 2017 ............................................................................................... 1,666 1,665
10.00% or higher: due 2008 to 2017 ............................................................................................. 867 399
105,218 102,662
Variable interest rate
Secured financings – 1.00% to 9.99%: due 2008 to 2017 ................................................................ 47,404 23,212
FHLB advances – 5.00% to 5.99%: due 2008 to 2036 ..................................................................... 5,500 5,000
Other variable interest rate senior debt – 2.16% to 9.99%: due 2008 to 2049 ................................. 56,244 63,504
109,148 91,716
Structured notes
Interest rate linked ............................................................................................................................. 770 379
Equity, equity index or credit linked ................................................................................................. 6,631 8,647
7,401 9,026
Total bonds and medium term notes .................................................................................................. 221,767 203,404