Long-Term Debt

The composition of long-term debt is presented in the following table. Interest rates on floating rate notes are determined periodically by formulas based on certain money market rates or, in certain instances, by minimum interest rates as specified in the agreements governing the issues. Interest rates and maturity dates in effect at December 31, 2014 are shown in the below table.



			At December 31,
	Maturity date(s)	Interest Rate(s)	2014		2013
			(in millions)
Issued or acquired by HSBC USA:
Senior debt:
Fixed-rate notes	2015-2024	1.30% - 3.50%	$	8,224	$	4,497
Floating-rate notes	2015-2019	0.50% - 1.59%	5,196		4,249
Structured notes	2015-2044	0.00% - 2.56%	6,379		5,424
Total senior debt			19,799		14,170
Subordinated fixed-rate notes	2020-2097	5.00% - 9.50%	1,170		1,319
Junior subordinated fixed-rate debentures issued to capital trusts	2026-2027	7.75% - 8.38%	560		560
Total issued or acquired by HSBC USA			21,529		16,049

Issued or acquired by HSBC Bank USA and its subsidiaries:
Senior debt:
Floating-rate notes	2019-2036	0.15% - 2.03%	6		12
Structured notes	2015-2040	0.00% - 2.31%	259		294
FHLB advances - floating-rate	2036	0.32%	1,000		1,000
Other			—		39
Total senior debt			1,265		1,345
Subordinated fixed-rate notes	2017-2039	4.88%-7.00%	4,638		5,361
Long term debt issued by VIE - fixed-rate	2018	17.20%	92		92
Total issued or acquired by HSBC Bank USA and its subsidiaries			5,995		6,798
Total long-term debt			$	27,524	$	22,847

The table above excludes $900 million of subordinated long-term debt at December 31, 2014 and 2013, due to us from HSBC Bank USA. Of this amount, the earliest note is due to mature in 2022 and the latest note is due to mature in 2097.

Foreign currency denominated long-term debt was immaterial at December 31, 2014 and 2013.

At December 31, 2014 and 2013, we have elected fair value option accounting for some of our structured notes and certain subordinated debt. See Note 16, "Fair Value Option," for further details. At December 31, 2014 and 2013, structured notes totaling $6,612 million and $5,693 million, respectively, and subordinated debt totaling $2,179 million and $1,893 million, respectively, were carried at fair value.

The Junior Subordinated Debentures due 2026-2027 were issued to and held by three capital funding trusts organized by us. The trusts issued preferred stock collateralized by the debentures which are guaranteed by us. The trusts also issued common stock, all of which is held by us and recorded in other assets. The debentures issued to the capital funding trusts, less the amount of their common stock we hold, qualified as Tier 1 capital at December 31, 2013. Although the capital funding trusts are VIEs, our investment in the common stock does not expose us to risk as it does not require funding from us and therefore, is not considered to be equity at risk. Under Basel III capital requirements, these securities are required to be phased out of Tier 1 capital by January 1, 2016, with 50 percent of these capital securities includable in 2014 and 25 percent includable in 2015. The trust preferred securities excluded from Tier 1 Capital may be included fully in Tier 2 Capital during those two years, but must be phased out of Tier 2 Capital by January 1, 2022. As we hold no other interests in the capital funding trusts and therefore are not their primary beneficiary, we do not consolidate them.

As a member of the Federal Home Loan Bank of New York ("FHLB") and the Federal Reserve Bank of New York, we have secured borrowing facilities which are collateralized by loans and investment securities. At December 31, 2014 and 2013, borrowings from the FHLB facility totaled $1,000 million which is included in long-term debt. Based upon the amounts pledged as collateral under these facilities, we were allowed access to further borrowings of up to $16,017 million at December 31, 2014.

Maturities of long-term debt at December 31, 2014 were as follows:



	(in millions)
2015	$	8,347
2016	778
2017	2,932
2018	3,145
2019	2,808
Thereafter	9,514
Total	$	27,524