Leeds re-opens sterling covered bond market
Leeds Building Society re-opened the sterling covered bond market this week with the first UK domestic issue in four years. The transaction uncovered demand from UK life funds positioning themselves in response to planned favourable treatment of the asset class as part of Solvency II, a new capital adequacy regime for the European insurance industry.
The deal a £250m 10 year issue priced at 175bp over mid-swaps via Barclays Capital and HSBC also marked the building societys debut in the public covered bond market, after it privately placed a five year issue earlier this year.
The transaction is also the first
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