---
title: "Focus on Credit: Primary market update on senior unsecured bank bonds"
url: https://www.helaba.com/en/focus-credit-primary-market-update-senior-unsecured-bank-bonds-0
type: dd_research
language: en
updated: 2026-09-28
keywords: Credit, Credit Special
---

# Focus on Credit: Primary market update on senior unsecured bank bonds

Focus on: Credit 8 January 2025 © Helaba | Research & Advisory | 8 January 2025 1 of 4 Research & Advisory Senior unsecured bank bonds: Primary market update Q4 2024 The primary market for senior unsecured bank bonds in euro-denominated benchmark for- mat slowed down significantly in the fourth quarter of 2024. At EUR 24 billion, the volume of new issuance fell to around half of that placed in Q3 2024 and was 28 % down on the fourth quarter of 2023. Compared to the average of the final quarters of the last six years, primary market volume in Q4 2024 was approximately 21 % lower. For 2024 as a whole, new issuance volume amounted to EUR 181 billion, with a very solid opening quarter and a weak second quarter followed by a strong third quarter. Overall, while there was no repeat of the previous two years' record levels, it was still a strong year for issuance. With rising maturities as the principal driver, the need to refinance the high level of TLTRO funds repaid to the ECB in 2023 also contributed to this performance. Regulatory requirements continue to be a key factor: The volume of senior non-preferred bonds (SNP bonds) grew by a further 6 % year-on-year to EUR 111 billion in 2024, while preferred issues fell by 31 % to EUR 70 bil- lion. Consequently, the share of SNP bonds as a proportion of total issuance rose from 51 % in 2023 to 61 % in 2024. Higher SNP maturities were likely a major factor in this regard. In terms of banks' business activity, the slug- gish growth in deposits due to more attractive alternatives at higher interest rates, had a supportive effect on pri- mary market activity - while lacklustre demand for credit had the opposite effect. In terms of geographical distribution, high volumes were mainly issued by banks in France, Spain and the United Kingdom. Topping the rankings as usual were French banks, which have a very active presence on the capital mar- kets and are subject to stringent capital requirements due to their size, closely followed by Spanish institutions. A striking observation is the proportion of floating-rate notes (19 %) and the increase in maturities, both of which we believe are a result of the current interest rate environment. Dr Susanne Knips Senior Credit Analyst T +49 69/91 32-32 11 EUR benchmark issues\* Q4 2024: Little activity EUR benchmark issuance volume (unsecured, fixed and floating) in EUR (billions) \*issuance volume of at least EUR 500 million Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Focus on: Credit © Helaba | Research & Advisory | 8 January 2025 2 of 4 Based on our analysis, 2025 is set to be another strong year for issuance of senior unsecured bank bonds in euro-denominated benchmark format. Our projections suggest a volume of around EUR 200 billion, with the main impetus coming from a further rise in maturities. In addition, growth in customer deposits is likely to re- main fairly muted as alternative investment opportunities become more attractive again. Beyond this, having pre- viously bottomed out, we expect a rebound in demand for credit at lower interest rates. At the same time, regula- tory requirements will remain an important factor for SNP issuance. Although the minimum MREL ratios have been reached, a high level of maturities here has also become a key driver and is leading to higher refinancing ac- tivity. While the introduction of a general depositor preference across the EU should have only a limited impact on the credit quality of preferred bonds, institutions may issue additional preferred debt to offset this (see our publica- tion Large European banks: Revision to insolvency ranking of preferred bonds). Continued high spread levels on covered bonds may prove favourable for opportunistic PS issuance, as the latter's risk premium relative to cov- ered bonds has narrowed considerably. However, TLTRO redemptions will no longer play any role – the final tranche was repaid to the ECB on 18 December 2024. Although a part of the 2025 maturities has already been pre-financed, it is likely that pre-financing activity will in- crease once again, at the latest from the second quarter of 2025, due to a further rise in maturities in 2026. Fix-to- float bonds maturing in 2026 are relevant even now as they can be called before they lose their eligibility to count towards the Minimum Requirement for Own Funds and Eligible Liabilities (MREL) one year before maturity (see our publication Regulatory call option for non-preferred bonds becoming standard). The share of primarily regulatory-driven SNP bonds as a proportion of the total issuance volume could reach around 50 %. In a market environment that remains volatile amid ongoing crises, finding the right timing will continue to pose a challenge. Even at elevated spread levels, banks will make full use of any windows of oppor- tunity that arise. Share of non-preferred bonds rises significantly to 61 % French and Spanish banks dominate issuance EUR benchmark issuance volume by payment rank in EUR (billions) EUR benchmark issuance volume 2024 by country Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 Non-preferred Preferred FR 12% SP 11% EN 11% US 9% GE 8% IT 8% NE 7% CA 7% DE 3% SW 3% others 21% Focus on: Credit © Helaba | Research & Advisory | 8 January 2025 3 of 4 Significance of longer maturities on the rise Stable rating mix EUR benchmark issuance volume by maturity in EUR (billions) EUR benchmark issuance volume by rating\* in EUR (billions) Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory \*Moody’s rating at time of issuance Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 1Y-3Y 3Y-5Y 5Y-7Y 7Y-10Y 10Y-15Y 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 AA A BBB BB others Slightly higher share of green issues High level of maturities in 2025\* EUR benchmark issuance volume by ESG criterion in EUR (billions) EUR benchmark maturity volumes in EUR (billions) Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory \*slight deviation from new issues Sources: Bloomberg, Helaba Research & Advisory 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 Classic Green Social Sustain 10% 12% 12% 24% 25% 26% 27% - 20 40 60 80 100 120 140 160 180 200 220 240 260 0 20 40 60 80 100 120 140 160 180 200 220 240 260 2022 2023 2024 2025 2026 2027 2028 Floaters become more attractive again Regulatory call option remains popular EUR benchmark issuance volume by coupon type in EUR (billions) EUR benchmark issuance volume by maturity type in EUR (billions) Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 Fix Floating 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 Fixed-to-float Bullet Focus on: Credit © Helaba | Research & Advisory | 8 January 2025 4 of 4 Publisher and editor Helaba Research & Advisory Editor: Stefan Rausch Publisher: Dr. Gertrud R. Traud Chief Economist/ Head of Research & Advisory Neue Mainzer Str. 52-58 60311 Frankfurt am Main Germany T +49 69 / 91 32 – 20 24 Internet: www.helaba.com Disclaimer This publication was very carefully re- searched and prepared. However, it con- tains analyses and forecasts regarding cur- rent and future market conditions that are for informational purposes only. The data are based on sources that we consider relia- ble, though we cannot assume any respon- sibility for the sources being accurate, com- plete, and up to date. All statements in this publication are for informational purposes. They must not be taken as an offer or rec- ommendation for investment decisions. Sign up for our newsletter here: https://news.helaba.de/research/

Despite slowdown in 4th quarter, primary market volume reaches EUR 181 billion for 2024 as a whole. High level of maturities remains principal driver. Preferred senior debt recently becomes comparatively attractive for issuers. We expect new issuance volume for 2025 of around EUR 200 billion.