Nationwide shows relevance of mutual-friendly CCDS

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By Tyler Davies
07 Sep 2017

Nationwide Building Society came out of nowhere to tap its rare and very popular issue of core capital deferred shares (CCDS) this week, piquing the interest of a good many bank credit investors. Nearly every building society can get along nicely without this innovative substitute for equity, but Nationwide’s efforts to keep the product relevant could well make it a viable option for the rest of the mutual sector, writes Tyler Davies.

Nationwide pioneered the use of CCDS in November 2013, when it sold £550m of the notes to pay a targeted distribution of 10.25% to investors. And the UK building society was back on Thursday, tapping the notes for a further £500m following two years of outstanding performance in ...

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