Nationwide Building Society priced the tightest UK covered bond this year on Wednesday and still managed to issue in a good size. The deal was well timed to take advantage of recent spread tightening with little hint of investor hesitation, even though Brexit concerns are set to mount.
Nationwide mandated leads and opened order books on Wednesday for a five year euro benchmark with initial guidance of 13bp area over mid-swaps. The bonds were quick to attract demand with the first €1.5bn rolling in during the first hour.
Orders hit €2.3bn after two hours enabling a spread