HSBC 2011 Annual Report Download - page 164

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Risk > Liquidity and funding > HSBC Holdings // Market risk > In 2011 / Trading and non-trading portfolios
162
HSBC Holdings
(Audited)
During 2011, HSBC Holdings continued to have full
access to debt capital markets at market rates and
issued US$5.3bn of senior debt (2010: nil). The
eligibility requirements for non-equity instruments
under Basel III rules have not been clearly defined in
the UK, so HSBC Holdings issued no capital
instruments in 2011 (2010: US$5.0bn).
The balances in the following table do not agree
directly with those in the balance sheet of HSBC
Holdings as the table incorporates, on an
undiscounted basis, all cash flows relating to
principal and future coupon payments (except
for trading derivatives).
In addition, loan and other credit-related
commitments and financial guarantees and similar
contracts are generally not recognised on the balance
sheet. Trading derivatives are included in the ‘On
demand’ time bucket, and not by contractual
maturity, because trading derivatives are typically
held for short periods of time. The undiscounted
cash flows potentially payable under financial
guarantees and similar contracts are classified on
the basis of the earliest date they can be called.
Cash flows payable by HSBC Holdings under financial liabilities by remaining contractual maturities
(Audited)
On
demand
Due
within 3
months
Due
between
3 and 12
months
Due
between
1 and 5
years
Due
after 5
years
US$m US$m US$m US$m US$m
At 31 December 2011
Amounts owed to HSBC undertakings ................... – 1,174 17 1,428 –
Financial liabilities designated at fair value ............ – 281 3,530 4,987 28,988
Derivatives ............................................................... 1,067 – – – –
Debt securities in issue ............................................ – 35 104 1,975 1,490
Subordinated liabilities ............................................ – 216 649 3,461 27,558
Other financial liabilities ......................................... – 1,460 – – –
1,067 3,166 4,300 11,851 58,036
Loan commitments .................................................. 1,810 – – – –
Financial guarantees and similar contracts ............. 49,402 – – – –
52,279 3,166 4,300 11,851 58,036
At 31 December 2010
Amounts owed to HSBC undertakings ................... – 163 1,332 1,453 –
Financial liabilities designated at fair value ............ – 219 658 5,810 24,215
Derivatives ............................................................... 827 – – – –
Debt securities in issue ............................................ – 35 106 2,110 1,559
Subordinated liabilities ............................................ – 219 657 3,504 28,670
Other financial liabilities ......................................... – 1,782 – – –
827 2,418 2,753 12,877 54,444
Loan commitments .................................................. 2,720 – – – –
Financial guarantees and similar contracts ............. 46,988 – – – –
50,535 2,418 2,753 12,877 54,444