The UK’s largest mortgage lender, HBOS, will this month launch the UK’s inaugural covered bond, via lead managers Citigroup, Dresdner Kleinwort Wasserstein and Goldman Sachs.
HBOS Treasury Services will launch a deal in the region of €2 billion with a maturity in the five to 10 year part of the curve. Initial spread guidance is in the 50bp–100bp range. The bond is backed by a pool of prime-quality residential mortgages and is expected to receive triple-A ratings. Bankers say that the