.HBOS was in the market with its third go in the newly established U.K. covered bond market, topping its two deals issued at the second half of last year. The latest deal will be €3 million (US$ 3.75 million)  in size and has been rated ‘AAA’ by Standard & Poor’s and Fitch Ratings. 

According to figures released by Commerzbank last week, jumbo covered bond issuance is expected to see a 25% increase to €145 billion (US$181.70 billion) this year, with at least €20 billion  (US$ 25.06 billion) comprising of structured covered bonds. Talks of other lending houses following in HBOS' footsteps were confirmed last week. Both Northern Rock and Bradford & Bingley announced their forthcoming plans to issue their first covered bond issue in 2004.

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