Long-Term Debt

12 Months Ended

Dec. 31, 2020

Long-term Debt, Unclassified [Abstract]

Long-term Debt

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, 2020 are shown in the below table.

				At December 31,
	Maturity Date Range	Interest Rate Range	Interest Rate Weighted Average	2020		2019
				(in millions)
Issued or acquired by HSBC USA:
Senior debt:
Fixed-rate notes	2024-2025	3.50% - 4.20%	4.01%	$	2,990	$	6,231
Structured notes	2021-2045	.15% - 2.54%	.76%	7,938		7,995
Total senior debt				10,928		14,226
Subordinated debt:
Fixed-rate notes	2021-2097	7.20% - 9.30%	8.09%	422		1,172
Floating-rate notes	2025	2.43%	2.43%	850		850
Total subordinated debt				1,272		2,022
Mark-to-market adjustment on fair value option debt				1,344		1,195
Total issued or acquired by HSBC USA				13,544		17,443
Issued or acquired by HSBC Bank USA and its subsidiaries:
Senior debt:
Fixed-rate notes				—		5,124
Floating-rate notes	2024-2040	.03% - .94%	.39%	42		29
Structured notes	2021-2027	(.55)% - 3.04%	1.14%	394		192
FHLB advances - fixed-rate	2021	.80% - 1.12%	.92%	3,250		—
FHLB advances - floating-rate	2036	.30%	.30%	1,000		1,000
Total senior debt				4,686		6,345
Subordinated fixed-rate notes	2034-2039	5.63% - 7.00%	6.36%	1,441		2,685
Mark-to-market adjustment on fair value option debt				308		224
Total issued or acquired by HSBC Bank USA and its subsidiaries				6,435		9,254
Total long-term debt				$	19,979	$	26,697

During 2020, $5.0 billion of long-term debt borrowings from HSBC North America were recharacterized as time deposits. See Note 23, "Related Party Transactions," for additional information.

At December 31, 2020 and 2019, we had structured notes totaling $9,695 million and $9,388 million, respectively, and subordinated debt totaling $1,030 million and $959 million, respectively, for which we have elected fair value option accounting and are therefore carried at fair value. See Note 16, "Fair Value Option," for further details. During 2019, HSBC Bank USA repurchased $1,269 million of its outstanding subordinated debt that was designated under fair value option and recorded a net pre-tax gain on extinguishment of $84 million.

As a member of the 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, 2020 and 2019, borrowings from the FHLB facility totaled $4,250 million and $1,000 million, respectively, which is included in long-term debt. Based upon the amounts pledged as collateral under these facilities, we have additional borrowing capacity of up to $12,458 million at December 31, 2020.

Maturities of long-term debt at December 31, 2020 were as follows:

	(in millions)
2021	$	6,480
2022	2,886
2023	1,521
2024	1,457
2025	3,854
Thereafter	3,781
Total	$	19,979