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Market Scan
HSBC Loses Its Sheen
Vidya Ram , 10.24.08, 2:10 PM ET

LONDON - HSBC 's huge presence in fast-growing Asian economies had placed it in an ivory tower, away from the financial market turmoil. But on Friday it fell to earth, as those markets lost their appeal. Investors focused on the bank's exposure to the American mortgage market and the impact that rising corporate defaults could have on their credit derivative exposure.

Shares of HSBC (nyse: HBC - news - people ) had tumbled 13.5% at the end of trading Frida

I'll let the picture do the talking here. Taken from Calculated Risk, we see continued rising delinquencies across the board in Residential Real Estate, Commercial Real Estate, and Consumer Credit cards.

How to play it:

• Today's recommendation is in the banking sector - a revisit to a name we've dealt with before, HSBC Holdings (HBC), which just released earnings results for the first half of 2008 (see conference call transcript). Globally, the bank did alright, however in the North American market, reserves for subprime mortgages, in which the company is the largest market participant due to its