The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

RMBS: HSBC seeks economies of scale

HSBC has transferred all of its UK mortgage assets into a single pool, which should cut costs for its new covered bond and RMBS programmes.

HSBC managing director Dominic Swan The cost savings are substantial
Dominic Swan

HSBC became the latest UK mortgage lender to overhaul the way in which it funds this business with the launch of its inaugural covered bond in October. But the new issuer has taken an innovative approach to its wider funding needs by placing all of its mortgage assets into a single pool, which will feed both its covered bond and future RMBS funding programmes. HSBC revealed its plans to tap both markets in Euromoney’s April issue. However, the funding requirements and regulatory capital position of the bank mean that it is likely to favour covered bonds over RMBS. HSBC managing director Dominic Swan told Euromoney at the time that “covered bond issuance will have the biggest impact on senior unsecured term debt issuance by UK banks”.

The concept of a single asset pool was first mooted internally around 18 months ago. However, the building out of a single IT platform constrained the launch of the two programmes until now (the bank was advised on the scheme by Clifford Chance).

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree