US404280DT33 HSBC 8% Perpetual

[Joewads]

I'm rather new to this business, looking excitedly at this bond. It seems to good to be true...

They aim to maintain a coupon 3.5% about US Treasury 5Y

Forever? Unless HSBC go out of business

Is it really that simple, that good?

Surely there's something my inexperience is missing?

Thanks for any views on this.

[Dod101]

Minimum Investment Quantity $200,000.

Dod

[mc2fool]

I take it you're in the UK ... which broker have you found that will let you trade this?

[Lootman]

Is it callable at par?

Sounds a tad junky to me.

[88V8]

Is it really that simple, that good?

Leaving aside the 200k clip, there has to be some reason that a sub with a 2bn issue size from a major bank is yielding 8%.
If the nominal spread is to be believed, it's not even very liquid.
One would need to read the t&c to find out, but in answer to your question, probably not.

V8

[jvbrad]

It's a subordinated contingent convertible (coco). I'm apparently not allowed to post a link to the prospectus, but do a search on the ISIN and you'll find it on the HSBC website.

[Lootman]

It's a subordinated contingent convertible (coco).

That might just be the most impressively laconic first post by anyone on this site. Welcome to TLF.

[BondSquared]

Is it callable at par?

Sounds a tad junky to me.

Par call from 07/2028 onwards.

And @Joewads, defo not a case of

Forever? Unless HSBC go out of business

Is it really that simple, that good?

it's a Coco, so going concern capital - no need for HSBC to go out of business to lose your money, just ask CS Coco investors.

Fairly priced imv.

[jvbrad]

It's a subordinated contingent convertible (coco).

That might just be the most impressively laconic first post by anyone on this site. Welcome to TLF.

Haha, I thank you. I hadn't realised that it was my first post (long-time lurker) - if I had, I would have made more of a literary effort!