PRICING THE IMPOSSIBLE

摘要

Nationwide achieved what many thought was impossible in 2014. As the UK's largest building society, the firm was in a unique position to test the sterling Additional Tier 1 market. By the time Nationwide emerged in March (via Citigroup, Deutsche Bank, RBS and UBS) with its £1bn 6.875% perpetual, investors were prepared. Many of them had been thoroughly educated in Nationwide's business model the previous November when it set out to sell the first core capital deferred shares, an instrument that would provide the backing to the ATI. Both the £500m CCDS and the £1bn ATI help the issuer meet demands from the Prudential Regulatory Authority that it beef up its leverage ratio ahead of the 2019 Basel deadline.