AA’s juicy spread ensures fat book for £250m WBS return

AA logo for new website
By Jon Hay
16 Apr 2014

The Automobile Association, the UK car breakdown assistance and insurance provider, issued on Friday April 11 its sixth bond since it inaugurated its whole business securitization last June, and found a very strong response from UK investors that love the extra spread it offers.

The AA is one of the widest-trading of investment grade sterling corporate bond issuers, mainly because, one banker said, it is a rare credit: a whole business securitization of a company whose business is not based on the ownership of specific property. The company’s senior secured bonds are ...

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