U.K. thrift Nationwide has entered an interest rate swap on the back of a USD400 million three-year bond issue and is considering converting the proceeds to sterling. Sarah Hill, senior trader in Northampton, said, "We may enter a currency swap at a later date. We monitor our short-term assets on a daily basis."
Lehman Brothers and Deutsche Bank were the bookrunners on the bond, but Hill declined to reveal the swap counterparty or the rates it pays and receives in the swap. She said the firm looks for the best pricing on swaps and it does not automatically choose underwriters as swap counterparties.
