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, 2016 are shown in the below table.



				At December 31,
	Maturity Date Range	Interest Rate Range	Interest Rate Weighted Average	2016		2015
				(in millions)
Issued or acquired by HSBC USA:
Senior debt:
Fixed-rate notes	2017-2024	1.30% - 3.50%	2.20%	$	11,423	$	11,412
Floating-rate notes	2017-2019	1.24% - 1.88%	1.48%	1,748		2,747
Structured notes	2017-2045	.85% - 3.29%	1.75%	7,849		7,071
Total senior debt				21,020		21,230
Subordinated debt:
Fixed-rate notes	2020-2097	5.00% - 9.30%	6.15%	1,171		1,170
Floating-rate notes	2025	3.13%	3.13%	850		850
Total subordinated debt				2,021		2,020
Mark-to-market adjustment on fair value option debt				337		(62		)
Total issued or acquired by HSBC USA				23,378		23,188
Issued or acquired by HSBC Bank USA and its subsidiaries:
Senior debt:
Floating-rate notes	2019-2036	.74% - 2.62%	2.37%	4,031		6
Structured notes	2017-2040	.92% - 2.35%	1.25%	218		262
FHLB advances - floating-rate	2017-2036	1.06% - 1.51%	1.28%	5,700		5,600
Total senior debt				9,949		5,868
Subordinated fixed-rate notes	2017-2039	4.88% - 7.00%	5.86%	4,103		4,201
Long term debt issued by VIE - fixed-rate	2018	17.20%	17.20%	79		92
Mark-to-market adjustment on fair value option debt				230		160
Total issued or acquired by HSBC Bank USA and its subsidiaries				14,361		10,321
Total long-term debt				$	37,739	$	33,509

At December 31, 2016 and 2015, we have elected fair value option accounting for all of our structured notes and certain subordinated debt. See Note 15, "Fair Value Option," for further details. At December 31, 2016 and 2015, structured notes totaling $8,372 million and $7,164 million, respectively, and subordinated debt totaling $2,012 million and $2,007 million, respectively, were carried at fair value.

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, 2016 and 2015, borrowings from the FHLB facility totaled $5,700 million and $5,600 million, respectively, which is included in long-term debt. Based upon the amounts pledged as collateral under these facilities, we were allowed access to further overnight borrowings of up to $13,597 million at December 31, 2016.

During 2015, HSBC USA exercised the option to call $560 million of junior subordinated debentures previously issued by HSBC USA to HSBC USA Capital Trusts I, II and III at the contractual call prices of 100.781 percent, 100.84 percent and 100.732 percent, respectively, which resulted in a net loss on extinguishment of approximately $11 million. The trusts used the proceeds to redeem the trust preferred securities previously issued to third party investors.

Maturities of long-term debt at December 31, 2016 were as follows:



	(in millions)
2017	$	4,870
2018	9,436
2019	4,569
2020	6,353
2021	3,448
Thereafter	9,063
Total	$	37,739