Banks weigh the costs of sterling issuance

Why the sun hasn’t set on RMBS | Will mutuals issue mutually?

HBOS is the only UK issuer to have so far issued a covered bond in sterling. “We will issue in sterling if we feel the market is there or, in the particular case of the social housing covered bond [HBOS issued a sterling-denominated covered bond backed by its social housing mortgage portfolio in December 2004], where we felt the long-dated sterling investor had a better feel for the underlying asset class than a European investor,” says Robert Plehn, head of securitization and covered bonds at HBOS.