Question · Q4 2025
Ivan Zubo (UBS Group AG) requested an update on HSBC's legacy position, specifically regarding the 5844s, and a broader overview of the bank's strategy for managing its legacy stack.
Answer
Group Treasurer Faisal Yousaf clarified that HSBC has no current intention to call the 5844s, which are legacy make-whole call Tier 1 instruments, having previously decided against calling them in 2024 due to economic optimality. He stated that the bank regularly monitors this. More broadly, Mr. Yousaf expressed satisfaction with the progress in reducing the legacy stack by approximately half from over $14 billion in 2022, including a liability management exercise in 2025 for New York law instruments. He affirmed that HSBC will continue to seek opportunities to reduce the stack, provided it is proportionate in terms of cost and complexity.
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