Lloyds tracks RBC into soaring Sonia mart

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By Bill Thornhill
27 Jan 2020

Lloyds Bank returned to the sterling covered bond market on Monday with its first deal of 2020. It capitalised on the scarcity of short-dated Sonia supply with the first three year bond from a UK issuer in six months, which helped it to price its deal marginally inside fair value.

The £1bn three year sterling covered bond was priced on Monday at 37bp over Sonia, from 40bp area initially, and with demand of £1.8bn. 

Barclays, HSBC, Lloyds Banking Group and RBC Capital Markets were the joint lead maangers.

The issuer’s outstanding March 2023s were bid at ...

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