All material subject to strictly enforced copyright laws. © 2022 Euromoney Institutional Investor PLC group

U.K. Thrift Enters Interest Rate Swap

Nationwide Building Society has entered interest rate swaps to convert two recent fixed-rate U.S. dollar notes into synthetic floating-rate liabilities. Sarah Hill, senior trader in the treasury, declined to reveal how much of the issues it converted, but said, "The two fixed rate issues were swapped back into floating to fit our current funding profile."

The building society is looking to increase its U.S. dollar funding portfolio, which is why it issued the notes in dollars.

The thrift issued a 10-year USD225 million bond that pays 5.25% and a six-year USD300 million note that pays 4%. It also issued a three-year USD700 million floating-rate note that pays LIBOR plus 12 basis points.

Hill said "The short term desk will monitor the U.S. dollar position on a daily basis and we may make the decision to swap some of the dollars into sterling at a future date."

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree