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Lloyds leads with highest Covered BondMarker score

By Bill Thornhill
29 Apr 2019

Lloyds Bank’s €1.5bn five year has achieved the highest score of any covered bond issued this year in BondMarker and UBS has, on average, worked on the highest quality deals this year.

With a covered bond score of 10, Lloyds Bank’s €1.5bn five year achieved the highest mark of the year so far.

BondMarker is a new tool for the covered bond market, exclusive to GlobalCapital. It rates the success of covered bonds on a scale of zero to 10 across a range of criteria: timing, pricing and distribution. 

Half of the mark is derived from a survey based on the average score given by market participants.  The other half is automatically calculated using a range of metrics — such as the deal’s subscription ratio, its performance, the granularity of the order book and the transaction’s size.

The score for each deal can be found in the priced deals database.

Transactions from Rabobank and Intesa Sanpaolo, with respective scores of 9.6 and 9.5, rank in second and third place for all deals issued so far this year.   

Muenchener Hypo’s €500m 15 year is considered the best German deal, while Société Générale’s €1bn eight year is the best French covered bond. 

Among the Canadian banks, Toronto Dominion’s €1.75bn five year is leading the way.

UBS is best bank YTD

The Covered BondMarker league table ranks banks based on the average score of deals they have worked on.

Year-to-date, UBS has displaced BNP Paribas as the best lead arranger for banks that have arranged 10 or more deals. It worked on 10 eligible deals with an average score of 8.78 — including those from Lloyds, TD and SEB.

BNP Paribas is in second place with an average score of 8.59 for the 13 deals it worked on year to date, while DZ Bank is in third place with a score of 8.17 for the 12 deals that it has worked on.

On a rolling quarterly basis, BNP Paribas is leading the way, followed by Deutsche Bank and HSBC.  

By Bill Thornhill
29 Apr 2019