HSBC Focuses on ‘Jewel of the Crown’ After Investment-Bank Cuts-OxBig News Network

(Bloomberg) — HSBC Holdings Plc’s US operation is zeroing in on what it sees as key investment-banking units after getting out of mergers and acquisitions and equity capital markets in the region. 

“We can support clients in financing — that’ll be debt capital markets and leveraged finance — and the global transaction banking,” a business where clients are supported with payments and foreign exchange, Lisa McGeough, chief executive officer of HSBC US, said in a Bloomberg Television interview Tuesday. “These are really amazing, sort of jewel of the crown type of businesses.”

HSBC Holdings CEO George Elhedery is finalizing an investment-banking review worldwide that’s part of the firm’s biggest restructuring in at least a decade. Across New York, London and continental Europe, staffers have been cut as the bank focuses on key businesses that are more profitable.

“It’s simplified, it’s agile, it’s more client-focused,” McGeough said of the bank’s larger strategy. 

Speaking in her first television interview since taking the helm at the US division at the start of January, McGeough said she’s committed to the investment-banking businesses of debt underwriting and leveraged finance as HSBC looks to reorient the firm to areas where it’s more competitive.

HSBC has jumped two spots to No. 10 in US investment-grade bond underwriting, according to data compiled by Bloomberg. For US leveraged loans, the bank has climbed four places to No. 17, the data show.

“We have the balance sheet and we have the ability to support clients in our multiple lending products, which is highly correlated to the capital markets,” McGeough said. “Those are our power allies, and can help us on the international side.”

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