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The world's local bank
The world's local bank
Bankers’ Acceptances are non-interest bearing notes sold in bearer form at a discount to their face value and redeemed at maturity for the full face value. The notes are issued by a borrower and are stamped “accepted” by a financial institution such as HSBC Bank Canada. By accepting the draft, HSBC Bank Canada assumes an irrevocable liability for the underlying debt. There is an established secondary market which allows investors to sell the Bankers’ Acceptances prior to maturity.
Bankers’ Acceptances have the benefit of two commitments to repay the debt: the underlying borrower and HSBC Bank Canada.
Key Features & Benefits:
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Negotiable
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Issued at a discount to face value
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Issued in bearer form
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Available in a variety of maturity dates up to a maximum of one year
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Minimum investment amount of $100,000.
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Issued in multiples of $1,000
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Available in US and Canadian dollars
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Occasionally inventory is available for BAs issued by other Banks
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Excellent investment alternative to HSBC Bank Canada term deposits, guaranteed investment certificates or bearer deposit notes
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Great option for clients who prefer to invest in short-term, marketable, Bank guaranteed non-interest bearing notes.
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Well established secondary market
