Morning Wrap: January 20

After three floating rate sterling covered bonds in a week, demand may be approaching exhaustion, for now at least. Lloyds has therefore decided to move to the other end of the curve, mandating BNP Paribas, Lloyds, RBS, Santander and UBS for a sterling deal with at least a 10 year maturity that will be launched on Friday. The transaction comes amidst an appreciably more positive credit backdrop, suggesting Eurozone issuers might be tempted to return next week.