Investor Presentaiton
HSBC SFH
Programme features - Amortisation Test
The Amortisation Test 31 32 is designed to ensure that the Issuer has the capacity to meet its commitments following
the enforcement of the Borrower Event of Default. Compliance with the Amortisation Test requires compliance with
the Amortisation Ratio (RA)
Amortisation Ratio
Whereby
Transferred
Aggregate Asset
Amount
||
Transferred Aggregate Asset Amount
Aggregate Covered Bond Outstanding Principal Amount
Sum of all:
Transferred Home Loan Outstanding
Principal Amount¹
X
M
(M=1 if loan less than 3 months in arrears;
M=0.7 if loan 3 months or more in arrears)
Less
Plus
IV
Cash
+
Aggregate
Eligible Substitution
Assets Amount
+
Aggregate Value of
Permitted Investments
Weighted Average Maturity x Covered Bond Outstanding Principal Amount x Carrying Cost
30
1View entire presentation