Distribution by investor type:
Asset managers 84%
Central banks 5%
Banks 5%
Insurance/pension funds 4%
Others 2%
Geographical distribution:
UK 85%
Asia 4%
Switzerland 4%
Germany 3%
France 2%
Others 2%
Market appraisal:
"...a successful deal. People had half an eye on where it swapped back to euros. It’s traded up a bit in secondaries. £500m was a good sized print, because investors in that part of the curve always looks for decent liquidity.
"If you look at some of the other outstanding names in sterling, the levels they get there are not that attractive compared to the euro equivalent. Nordea is one of the few that has levels close to euros. Over time, others may try to take the space [left by UK banks using the Funding for Lending Scheme instead of the sterling market] but right now it depends too much on the basis swap."
"...impressive. They started at 125bp over Gilts and then moved down to 120bp, and the size was probably past their expectations. They planned to do less than that but got a £1bn book.
"It’s strong for the UK market, it’s enjoying positive momentum. With the FLS, people think there will be less supply in sterling from UK banks, so that opens the door for non-UK names. There’s good depth in the UK market and you have to put your money somewhere."
