#hsbc #saudiarabia #principles #investment_banking

HSBC и (а)моральные принципы.

⚖️ HSBC became top Saudi Arabia's top investment bank

You are the wind beneath my wings...
That's the message from Saudi Arabia to HSBC whenever it needs a big bank, according to the WSJ. Founded in Hong Kong and now HQ'd in London, HSBC is a banking beast (#7 globally). And despite Saudi Arabia's 2018 killing of Washington Post journalist Jamal Khashoggi and its controversial Yemen war, HSBC is standing by.

$65M in banking fees over two years... That's how HSBC is being rewarded for its loyalty. Since the Khashoggi murder, many banks and corporations have cut off business with Saudi Arabia. HSBC has turned its head and opened up its wallet.

Investment banking: The Saudi state-owned oil company Aramco (aka the most valuable company in the world) got its bonds structured by HSBC this year.
https://t.iss.one/markettwits/36269

More I-Banking: HSBC helps the government issue bonds — Basically IOUs from the government — to help it handle inconsistent revenue from its giant oil business.
Retail banking: After an expected merger, HSBC will own 29% of the 3rd biggest bank for basic Main Street-style banking in the Kingdom.

THE TAKEAWAY
+ Higher risk = higher potential reward... Banks are in the business of calculated risks. There are conventional risks and unconventional ones, and HSBC is showing it's willing to take on both to make some $$$.

+ "Credit risk": Banks lend money, taking on the risk they won't get paid back.

+ "Investment risk": They also drop money into startups and new ventures, knowing they might completely fail.

+ "Reputational risk": HSBC is on speed dial with Saudi Arabia, knowing it could be labeled an accomplice to murder in the court of public opinion.

Via Robinhood

🌎#бонды #мир #riskoff #qeqt

🇺🇸#бонды #сша #история #макро
доходность по 10ти-леткам США с 1786г!

Собственно, вот аналитики уже считают, сколько банкам придется зарезервирвать из-за нефтянки - почти 4 млрд, и это только 8 крупнейших (назовем так) банков.
https://t.iss.one/markettwits/70743

Via Yahoo Finance:

The largest U.S. banks have provided additional industry credit exposure in their annual reports.

• J.P. Morgan Chase’s JPM, -12.741% oil and gas loan exposure was 7% of TCE as of Dec. 31, according to KBW. In its annual report (on page 110 of its 10-K filing), the largest U.S. bank said total credit exposure to the oil and gas industry was $41.57 billion, or 4.4% of wholesale credit exposure, net of hedges, and 22.1% of TCE.

• Bank of America BAC, -14.800% had total oil and gas loan exposure of 10% of TCE as of Dec. 31, according to KBW. But the bank said on page 65 of its 10-K that total credit and committed credit exposure to the energy industry was $36.33 billion, or 3.5% of total commercial credit exposure and 21.2% of TCE.

• Citigroup’s C, -15.168% oil and gas loan exposure was 15% of TCE as of Dec. 31, according to KBW. On page 70 of the company’s 10-K, Citi said energy and commodities credits made up 8% of its total corporate credit portfolio as of Dec. 31. The company only provided that percentage, and not a dollar total for industry exposure. However, 8% of its total corporate credit exposure of $692 billion would be $55.36 billion, or 37% of its $148.81 billion in TCE. Citi also said 9% of its $35.2 billion in hedge protection for its corporate credit portfolio was for energy and commodities credits. That would be $3.27 billion in hedge protection for credit exposure to energy and commodities, for net exposure of $52.1 billion, or 35% of TCE.

• Wells Fargo WFC, -11.486% had oil and gas loan exposure of 10% of TCE as of Dec. 31, according to KBW. On page 61 of its 10-K, the bank said its total loan portfolio for the oil, gas and pipeline industries totaled $13.56 billion, or 1% of total loans.

Еще про нефтяников и их долги:
"Energy companies are the biggest issuers of junk bonds, accounting for more than 11% of the U.S. high-yield market." - The Axios

#неблокчейн_chart А теперь смотрим на junkи - они уже в полной ж.:
https://t.iss.one/markettwits/70741

Ну и еще немного драматизма.
"Debt-servicing problems have been “moving down the chain,” from exploration and production companies to oil-field services, support transportation, and midstream pipeline companies."
Вся цепочка проклята.

https://www.axios.com/newsletters/axios-markets-5e593d65-265a-4741-a722-dc4a86008a64.html?chunk=3&utm_term=emshare#story3

#неблокчейн_chart #бонды

Сейчас не самая актуальная вещь, но пройти мимо такого исторического графика доходностей 15Y Tsy notes решительно невозможно.

Via Barron's