Barclays and Danske launched sterling three year floating rate notes this (Monday) morning after Nordea Eiendomskreditt issued a £500m (Eu627m) deal in the same maturity and format last Thursday, with the competing supply expected to be easily absorbed, if not ideal.

According to a syndicate official away from both the Danish and UK deals, Danske announced its plans for a new issue first, only for Barclays to enter the market shortly afterwards.

“Danske would have perhaps been a little upset to see Barclays run over it,” he said.

He said that this was particularly the case given that he saw Barclays’ pricing as “fairly cheap”, with initial price thoughts in the low 20s. Nordea Eiendomskreditt, the Nordic group’s Norwegian issuer, priced its deal last Thursday at 19bp over Libor, which he said was 1bp wide of the bid side of where Lloyds and Nationwide were trading.

“I don’t understand why Barclays was so far back,” said the syndicate official.

Barclays revised the IPTs to guidance of 20bp plus or minus 1bp.

Danske, Lloyds and RBS meanwhile went out with initial price thoughts of the low to mid-20s over mid-swaps, then opened books with guidance of the 22bp area, according to a syndicate official at one of the leads. The deal was announced as a benchmark, which he said could suggest £250m, but that the issuer could hopefully size its deal towards what Nordea achieved last week given that orders were in excess of £800m.

He played down Barclays’ deal having any significant impact on Danske.

“There is room for both,” said the syndicate banker.

The syndicate official away from the leads said that Barclays might nevertheless have constrained how tight Danske could price its issue. However, he said that it was understandable that there was good supply in the sterling market given the amount of cash around, particularly at the short end, from bank treasuries, asset managers, money market funds and retail.

The lead syndicate banker meanwhile said that the bout of sterling issuance could be explained by the overall very favourable market conditions and with the sterling market in particular now offering competitive levels versus euros for issuers.

Barclays and Danske launched sterling three year floating rate notes this (Monday) morning after Nordea Eiendomskreditt issued a £500m (Eu627m) deal in the same maturity and format last Thursday, with the competing supply expected to be easily absorbed, if not ideal.

According to a syndicate official away from both the Danish and UK deals, Danske announced its plans for a new issue first, only for Barclays to enter the market shortly afterwards.

“Danske would have perhaps been a little upset to see Barclays run over it,” he said.

He said that this was particularly the case given that he saw Barclays’ pricing as “fairly cheap”, with initial price thoughts in the low 20s. Nordea Eiendomskreditt, the Nordic group’s Norwegian issuer, priced its deal last Thursday at 19bp over Libor, which he said was 1bp wide of the bid side of where Lloyds and Nationwide were trading.

“I don’t understand why Barclays was so far back,” said the syndicate official.

Barclays revised the IPTs to guidance of 20bp plus or minus 1bp.

Danske, Lloyds and RBS meanwhile went out with initial price thoughts of the low to mid-20s over mid-swaps, then opened books with guidance of the 22bp area with indications of interest having reached £700m, according to a syndicate official at one of the leads. The deal was announced as a benchmark, which he said could suggest £250m, but that the issuer could hopefully size its deal towards what Nordea achieved last week.

He played down Barclays’ deal having any significant impact on Danske.

“There is room for both,” said the syndicate banker.

The syndicate official away from the leads said that Barclays might nevertheless have constrained how tight Danske could price its issue. However, he said that it was understandable that there was good supply in the sterling market given the amount of cash around, particularly at the short end, from bank treasuries, asset managers, money market funds and retail.

The lead syndicate banker meanwhile said that the bout of sterling issuance could be explained by the overall very favourable market conditions and with the sterling market in particular now offering competitive levels versus euros for issuers.