HBOS sets 15-year covered bond price talk

HBOS, the owner of top British mortgage lender Halifax, plans to sell a 15-year euro-denominated covered bond at mid-swaps plus 13-15 basis points, a source close to the deal said Monday.
"Pricing is expected later this week," the source said.
This is the bank's fourth covered bond sale under its 14 billion euro covered bond programme, which is rated triple-A by all three major credit rating agencies, Standard & Poor's, Moody's Investors Service and Fitch Ratings.
This 15-year issue will offer investors the longest maturity available to date in a UK covered bond.
Covered bonds, developed in Germany to fund the country's mortgage lenders, are backed with mortgages from an issuing bank's balance sheet, and bondholders have direct recourse to the issuer in the event of an default.
CDC IXIS CM, Citigroup and Dresdner Kleinwort Wasserstein will jointly lead manage this latest benchmark-size deal.