TSB pulls covered bond as Brexit volatility weighs in

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By Bill Thornhill
15 Nov 2018

Despite offering an attractive premium, TSB Bank was unable to garner enough interest for its five year sterling covered bond on Thursday, forcing it to postpone the deal. The decision followed a high level UK government resignation that caused considerable market volatility in the UK banking sector.

After marketing its first Sonia-linked five year earlier this week, TSB Bank had planned launching the deal on via joint leads Lloyds, NatWest Markets, Nomura and Sabadell. 

Lead managers opened order books on Thursday with guidance of 65bp area over Sonia but by midday decided to ...

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