Guarantees cause a stir

Banks have demonstrated they can issue unguaranteed bonds over recent weeks but this week Yorkshire Building Society and Caja de Ahorros de Valencia Castellon y Alicante (Bancaja) took advantage of their respective government guarantee schemes. YBS issued the first public euro deal for five weeks, while Bancaja is the first Spanish bank to issue a five year bond since the Spanish government extended the maturity for the guarantee up to that maturity. Does this herald a flurry of guaranteed issuance before year end? Read EuroWeek on Friday.