Yorkshire Building Society extended the nascent sterling floating rate note market to four years with a £500m deal this (Friday) morning, after BNP Paribas and ANZ wrapped up euro and Aussie dollar deals in the past 24 hours and Cajamar closed a covered bond and ABS buyback.

For Yorkshire’s deal, leads Credit Suisse, HSBC and RBC went out with initial guidance of the 180bp over three month Libor area before revising guidance to 175bp-180bp over and fixing the spread at 175bp.

The leads built a book of £800m with 40-45 accounts, according to a syndicate banker on the deal. Books were closed at 1230 London time.

The lead syndicate banker said he had compared the deal against the grouping of UK names with floating rate notes.

“If you look at the shorter dated floaters, they are pretty tight,” he said.

According to a syndicate official away from the leads a Nationwide January 2015 floater was trading at 140bp over Libor on the bid side and a Barclays January 2015 floater at around 130bp. He said Yorkshire’s pricing was very fair and it looked like a nice deal.

“It’s good that they are opening up the four year sector,” he added, noting that this maturity had been largely ignored.

“Because we started with the three year, everyone followed suit,” he added.

The lead syndicate official said Yorkshire’s view was that it would try for a longer maturity than the three year.

“There was the question mark over whether there were the investors,” he said, “but this trade highlights there is good depth. It went super-well.”

Yorkshire held a roadshow ahead of the transaction.

BNP Paribas Home Loan SFH was in the market yesterday with a Eu1bn 10 year no-grow at 85bp over that a syndicate official at one of the leads called “an insane blowout”.

Leads ABN Amro, BNP Paribas, Commerzbank and Natixis built a book of Eu4.6bn with 166 accounts.

“Pricing through secondaries shows how robust the market is,” said the syndicate official.

He said the leads priced the deal with a flat to negative new issue premium compared with an outstanding BNP Paribas July 2021 that was at 89bp at the time the deal launched.

“The market sentiment is so robust that we were able to do that,” he said, adding that yields had backed up about 20bp form where they were a week before.

“We took a very strategic view,” he said. “We had been watching the markets for a while.

He added that the deal was trading at about 78bp on the bid side, about 7bp tighter than pricing.

France took 32%, the UK and Ireland 21%, Germany and Austria 20%, the Benelux 9%, Italy 6%, Switzerland 4%, Nordics 3%, southern Europe 2%, US 2%, Asia 1%, and other Europe 1%. Investment managers were allocated 24%, banks and other financial institutions 24%, insurance companies 12%, and central banks and other official institutions 7%.

Australia & New Zealand Banking Group issued its first domestic covered bond today, a A$3bn two tranche four year issue. Leads ANZ, JP Morgan, NAB and Westpac priced a A$1bn fixed rate tranche at 95bp over BBSW, equivalent to 159.5bp over the June 2016 Commonwealth Government Bond, and a A$2bn floating rate tranche at a margin of 95bp, whereas initial price talk for the deal had been the 100bp over mid-swaps area.

Cajamar is buying back Eu24.6m of a Eu1.1bn 3.5% 2014 covered bond included in an exchange offer that closed on Wednesday.

The Spanish bank said that it was aiming to buy back Eu300m of covered bonds and asset backed securities included in the liability management exercise. However, although a combined Eu302.5m of bonds were tendered, Cajamar accepted for purchase only Eu111.5m, Eu86.9m of which were from four of six ABS transactions included in the exercise.