That’s not the view of FT Alphaville but the banking team at Morgan Stanley who have published a detailed report on HSBC on Wednesday. And it really does not pull any punches.
Having lifted the lid on HSBC’s balance sheet, analysts Michael Helsby in London and Anil Agarwal in the far east, conclude that it is not as strong as the market thinks.
With $12bn of surplus capital carried at the group level has almost gone, HSBC’s Asian franchise is not as well capitalised as they previously assumed and $10bn of losses coming from HSBC’s US business and Available For Sale (AFS) portfolio, they reckon a cash call is inevitable.
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