HSBC is looking to repackage its loans sold in the Middle East , the Middle East and Africa as bonds and selling them to its US investor base, in a bid to improve investment banking profits, along with shedding credit risk and arbitrage capital requirements. The bank's US division made a profit of $282m in the first six months of 2015 but has been under pressure to boost income. HSBC also plans to boost profitability in Mexico and leverage the NAFTA strategic opportunity. While HSBC has mostly used an "originate and hold" approach to loans, it has been moving towards the "originate to distribute" model, as evidenced in the 12-month period up to April 2015 , where it had distributed 7 of the loans. The Mexico remains an important market for HSBC given the importance of the dollar for clearing its trading business as well as providing access to US companies.
HSBC is looking to repackage its loans sold in the Middle East , the Middle East and Africa as bonds and selling them to its US investor base, in a bid to improve investment banking profits, along with shedding credit risk and arbitrage capital requirements. The bank's US division made a profit of $282m in the first six months of 2015 but has been under pressure to boost income. While HSBC has mostly used an "originate and hold" approach to loans, it has been moving towards the "originate to distribute" model, as evidenced in the 12-month period up to April 2015 , where it had distributed 7 of the loans. The Mexico remains an important market for HSBC given the importance of the dollar for clearing its trading business as well as providing access to US companies.