Few investors were tempted to take part in Lloyds Bank’s latest covered bond tender. Most investors that wanted to hand back bonds will have already done so and those holding on to paper are likely to be fearful over the meagre outlook for UK supply and a dearth of positive yielding alternatives in which to reinvest their proceeds.
Lloyds Bank announced on Monday that it had bought a nominal £72,000 of its outstanding £1bn February 2023s which were launched in January at 37bp over Sonia.
The paltry sum follows a more successful buy-back in which the bank tendered 17 outstanding bonds in May.
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