Lloyds Pays Less on Mortgage Bonds as UK Home Market Recovers
While this report attempts to connect two dots in the headline, it proves to be somewhat of a bait-and-switch, with little proof of a UK home market recovery. Nonetheless, great investor sentiment and indication of upcoming flow: "Lloyds Banking Group is selling $2.4bn of mortgage-backed bonds at yields less than it offered on debt issued four months ago, tapping investor demand spurred by signs the worst of the UK housing slump is over. The sale includes 600m euros ($845m) of five- year notes that will yield about 125 basis points more than benchmark rates, said Sara Evans, a London-based spokeswoman at Lloyds. That compares with 170 basis points the bank paid on similar notes issued in September, according to data compiled by Bloomberg."