NEW YORK, Nov 17 (Reuters) - The cost to insure the debt of HSBC Finance Corp, the U.S. consumer lending arm of HSBC Holdings PLC, jumped on Monday following a report that HSBC is mulling options for the lender.
U.K. newspaper The Observer on Sunday reported that HSBC is mulling options including spinning off the unit, running off much of its business and a possible debt for equity swap with bondholders.
The cost to insure HSBC Finance's debt with credit default swaps jumped to 600 basis points on Monday, or $600,000 per year for five years to insure $10 million in debt, from 390 basis points on Friday, according to Phoenix Partners Group.
(Reporting by Karen Brettell; Editing by Walker Simon) Keywords: HSBC SWAPS/

(karen.brettell@thomsonreuters.com; +1 646 223 6274; Reuters Messaging: karen.brettell.reuters.com@reuters.net )

COPYRIGHT

Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.