Sterling

Issuer clears £500m deal 3bp above where NatWest issued on Monday

Borrowers raise total of £400m from quiet market

◆ Improved dynamics in the sterling market have lured issuers across senior and covered markets this week ◆ Lloyds' offering is among the rare deals from top UK borrowers ◆ Issuers funds with 5bp NIP

Leeds Building Society is lining up a similar five year deal for £500m

◆ Issuer hits sterling market days after similar dollar foray ◆ Tight price, short maturity pushes off some investors ◆ 'Price over size' aspiration achieved

Issuer sees blowout demand for long dated sterling debt

◆ ‘A great, great trade,’ say rival bankers ◆ Investors ‘under-supplied’ in sterling

◆ BPM raises new euro debt with no NIP as investors pile in ◆ 'Periphery is the new core' thinking powers primary ◆ KBC debuts sterling tier two to feed bond-starved investors

Although investors want sterling risk, issuers are not queueing up to issue

◆ Nationwide to grow asset size by a quarter ◆ Affords to pay 38% premium thanks to top ranking CET1 ratio in Europe ◆ Strong rally of Virgin Money bonds suggest acquisition likely to proceed

Pent-up demand for first sterling covered deal in three months fuelled the tight outcome

◆ ‘Rare beast’ of a spread drives demand ◆ Deal increased as order book swelled ◆ Cross-currency basis has kept issuance at bay