Household HSBC Watch

HSBC is heavily exposed to credit card assets. In that light, it is similar to Capital One, which earlier this year slashed its earnings estimates by over 20 percent due to high default rates and building losses. We see potential for a negative impact to HSBC’s earnings from this exposure as well. HSBC credit […]

Should the government investigate current conditions? Will a free economy poison itself, and the rest of the world, as it did with subprime mortgages? Are banks and institutional investors trying to recap $385 Billion dollars (USD) in collaterized debt obligation losses? These questions and many more are being discussed at Crazy Speculators (www.crazyspeculators.com) and we […]

On July 19, 2007, S&P cut ratings on 75 U.S. collateralized debt obligations made up of subprime mortgage derivatives. CDOs are fixed-income securities that repackage bonds, loans, derivatives and even other CDOs into new bonds. Subprime mortgages are loans to borrowers with poor or limited credit histories.

“I don’t think anyone knows enough about the […]

Although many claim HSBC already knows what their quarterly results might be, publishing the information is another story. The Securities and Exchange Commission is also looking at subprime mortgages. The worry at HSBC is HSBC Finance, formerly Household International, and HSBC USA.

Rising interest rates, combined with falling home prices, have caused many subprime […]

HSBC’s subprime earnings may take a bigger hit than previously thought. While HSBC claims to have losses under control at HSBC Finance others are taking note. Their CFO, Simon Penny, is no longer on the job. It is HSBC USA, however, that finances and packages much of the debt from HSBC Finance Corporation. […]