Lloyds tracks RBC into soaring Sonia mart

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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