The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

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.

Abbey might eventually follow suit. “There is the possibility of a sterling bond coming from us in the future and US dollars will certainly offer some exciting possibilities,” says Chris Fielding, the bank’s head of securitization. “There is the potential for reverse enquiry placement in any liquid currency.”

Several non-UK issuers have also issued in sterling: Depfa (asset covered securities), Dexia and CFF (obligations foncières) and Eurohypo (lettres de gages and mortgage Pfandbrief).

Volumes in the currency are expected to remain subdued, although with the potential for non-euro issuance firmly focused on the US dollar market.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree