Our Fixed Income Analyst, Lyubomir Dilov, examines Alphabet’s rare multi-tranche sterling issuance and what it reveals about relative value across the GBP investment-grade universe. Comparing the newly established Google GBP curve against the Housing Associations (HA) A1–A3 spread curve, Lyubomir finds some compelling opportunities hiding in plain sight.
Despite Alphabet’s higher Aa2 rating, the analysis makes the case that HAs deserve serious consideration, supported by a robust regulatory framework, stable financials, and consistent oversight from the Regulator for Social Housing. The spread differential – running 40–50bps in the short-to-medium term – may be wider than the credit fundamentals justify.
