{"text":[[{"start":9.65,"text":"HSBC is yet to invest billions of dollars into its own private credit strategy almost a year after announcing the move as Europe’s largest lender reels from a $400mn hit linked to an Apollo-owned credit fund."}],[{"start":22.65,"text":"The London-listed bank said in early June last year that it would inject $4bn into its own asset manager’s range of private credit funds. "}],[{"start":31.75,"text":"However, no funds have yet been transferred and there were no current plans to do so, according to two sources familiar with the decision-making process."}],[{"start":39.85,"text":"The private credit allocation was initially billed as a way for HSBC to leverage its $3.2tn balance sheet to muscle its way to the top table of alternative lending alongside private capital giants such as Apollo and Blackstone."}],[{"start":54.55,"text":"When discussing the commitment last year, HSBC’s head of asset management Nicolas Moreau told Reuters that “we see this as an arms race”."}],[{"start":63.8,"text":"The pause comes at a time in which the multitrillion-dollar non-bank lending industry has been shaken by alleged frauds by borrowers and questions over underlying asset valuations as well as a wave of retail and wealth withdrawals from funds including those managed by Blue Owl."}],[{"start":80.15,"text":"One person familiar with HSBC’s failure to deliver on the commitment said that executives had grown wary of the investment amid wobbles in the US private credit market."}],[{"start":89.9,"text":"HSBC said it was “committed to our asset management’s offering in private credit funds”."}],[{"start":96.65,"text":"HSBC suffered a $400mn charge related to back-leverage financing to a unit of Apollo in the first quarter. Shares fell more than 6 per cent after the bank revealed the hit in its annual results on May 5. Nonetheless, they have gained 12 per cent since the start of the year."}],[{"start":114.85000000000001,"text":"The charge surprised analysts as HSBC, unlike rivals Barclays and Santander, had not lent directly to Market Financial Solutions, the collapsed UK mortgage lender. "}],[{"start":126.60000000000001,"text":"Administrators overseeing the insolvency of MFS have accused the collapsed lender’s owner, Paresh Raja, of misappropriating at least £1.3bn."}],[{"start":137.45000000000002,"text":"HSBC’s indirect exposure via one of Apollo’s private-credit units makes it one of the banks hit hardest by the collapse of MFS."}],[{"start":146.10000000000002,"text":"The bank said that in the first quarter its private markets exposure was only 2 per cent of its total $1tn loan book, with “pure” private credit at just $6bn."}],[{"start":165.35000000000002,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778886441_7916.mp3"}