U.K. regulators are seeing some success as they try to shift the sterling bond market away from scandal-hit LIBOR.
Five all-new floating-rate pound notes have come to market this year, and all of them have been tied to the Sterling Overnight Interbank Average (SONIA) rather than LIBOR. FMS Wertmanagement, Lloyds Banking Group Plc, and International Finance Corp. were the latest names to join the offering list.
The five deals, totaling at least 3.5 billion pounds (US$4.5 billion), suggest bankers are paying attention after the Financial Conduct Authority urged them to abandon LIBOR ahead of the benchmark's official retirement in 2021. It also shows that investors have come to grips with SONIA's complexity following a trickle of 2018 sales by issuers including European Investment Bank, Lloyds, and Santander UK Plc.
See also:
- LIBOR's 2021 Demise Means More Work for Treasury
- SONIA Is Too Complex
- Goldman Sachs Anticipates 'Really Painful Transition' Away from LIBOR
- LIBOR to End in 2021
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
