(Jan 14): HSBC Holdings plc is gauging investor demand for a significant risk transfer (SRT) tied to a portfolio of about €2 billion (US$2.3 billion or RM9.5 billion) of investment-grade corporate loans. Banks use SRT as a way to insure loans against default, typically obtaining protection for between 5% and 15% of the loan value. HSBC is working on a potential SRT while finalising a US$14 billion takeover of Hang Seng Bank Ltd, the bank’s biggest acquisition in more than a decade. The purchase would reduce the lender’s common equity tier 1 ratio, a key metric of financial strength, by 125 basis points. Toronto-Dominion Bank, Erste Group Bank AG and BNP Paribas SA are among banks that are in discussions or have recently completed SRT transactions.

Source: The Edge Markets January 14, 2026 09:31 UTC