The trickle of Sonia issuance in securitization markets has become a full stream less than two months after Nationwide Building Society's debut in the format, with the benchmark now the new standard for sterling markets. The development comes not a moment too soon, as UK banks try to structure their funding around repayment of central bank schemes. Mortgage deals in the market this week from Charter Court Financial Services and Shawbrook show the benchmark works away from the largest master trust issuers, while announced deals from Bank of Ireland and Clydesdale underline the extent to which Sonia is the new normal. “ABS has certainly lagged ...
SONIA-linked issuance in securitisation markets is beginning to build. The government has also been trying to get banks and insurance companies to take on more risk by offering them a share of the proceeds from future sales of residential mortgage-backed securities (MBS) that are Mortgage deals from Charter Court Financial and Shawbrook evidence that adoption reaches beyond the largest lenders, and announced deals from Bank of Ireland and Clydesdale further illustrate the extent to which SONIA is the new normal.