UK financials pilot £4bn Sonia bond switch

Lloyds, Santander UK and Nationwide follow ABP with legacy bond transition

Bit by bit, bond issuers and investors are chipping away at the £62 billion stack of Libor-linked sterling notes due to mature after the end of 2021, when the discredited benchmark will be left to die.

Last June, holders of a £65 million ($84 million) floating rate note issued by Associated British Ports voted to re-hitch the bond to Sonia, the risk-free rate set to replace Libor in sterling markets. While the move was seen as a landmark step in ushering legacy bonds towards the new overnight

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