HSBC plans structured risk transfer deals for about $7 billion of U.S. and Asian corporate loans

HSBC is working on structured risk transfer (SRT) transactions that would cover roughly $7 billion of corporate loans, split between $3 billion in the United States and $4 billion in the Asia‑Pacific region. The deals are being arranged with undisclosed counterparties, according to sources. HSBC has not disclosed the expected fees or timing of the transactions.

If the SRTs are executed, HSBC could earn significant fee revenue and reduce its credit exposure, which may improve its balance‑sheet risk profile. The size of the deals suggests a material impact on the bank’s loan‑distribution business.

  • 1HSBC is planning SRTs tied to about $7 billion of corporate loans.
  • 2The loan portfolio is split into roughly $3 billion in the United States and $4 billion in Asia‑Pacific.

Sources