Moody’s gives thumbs up to Lloyds’ covered conversion
Moody’s said on Wednesday that investors’ approval of Lloyds Bank’s request to convert the interest basis on a covered bond from Libor to Sonia was credit positive for the issuer and bodes well for the rest of covered bond and structured finance markets, which must transition to Sonia before 2022.
On October 7, 99.84% of voting investors in Lloyds’ covered bonds series 2018-3 consented to convert the applicable interest basis from Libor to Sonia.
This agreement was notable for being the first conversion in the UK covered bond or structured finance markets.Moody’s said the agreement is credit ...
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