Nationwide blazes trail, Lloyds TSB could be up next

Nationwide Building Society’s £750m 15 year sterling denominated covered bond was remarkable, not just for it being the longest duration of any covered bond issued this year, but for the sheer scale of demand emanating from UK insurance companies. Changes to Solvency II made last year meant that covered bonds were likely to be much more attractive as investments — but up until now no one had tested the water.