Nationwide: ABS markets need more than warm words

"There does seem to be this sense in which covered bonds are innocent until proven guilty"

Andy Townsend, Nationwide

At first glance, the European version of Basel III's liquidity coverage ratio (LCR) makes happy reading for bank treasury departments with covered bond programmes. The rules upgraded covered bonds to level 1 assets, meaning they can comprise up to 70% of a bank's liquid asset buffer, which should guarantee healthy demand.

Andy Townsend, group treasurer at Nationwide in Swindon, however, is conflicted. As a covered bond issuer, it's great news as these products are the building society's cheapest

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: