10 year UK Sonia appeal questioned

Question mark
By Bill Thornhill
18 Feb 2021

This week’s ground-breaking 10 year Sonia index-linked covered bond transaction from Nationwide is most likely to appeal to other UK Building Societies, as opposed to the large UK commercial banks who have a larger proportion of suitable assets to access central bank funding.

The £1bn sterling covered bond issued by Nationwide on Tuesday was notable for being the first 10 year deal linked to Sonia issued by any institution and the first linked to the Bank of England’s new Sonia index. It was also the first sterling covered bond of ...

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