---
title: "Primary market update EUR benchmark bank bonds: Q2 2024"
url: https://www.helaba.com/en/primary-market-update-eur-benchmark-bank-bonds-q2-2024
type: dd_research
language: en
updated: 2026-09-28
keywords: Credit, Credit Special
---

# Primary market update EUR benchmark bank bonds: Q2 2024

Focus on: Credit 4 July 2024 Research & Advisory © Helaba | Research & Advisory | 4 July 2024 1 of 6 Primary market update EUR benchmark bank bonds: Q2 2024 sk/ The primary market for senior unsecured bank bonds was very solid in the second quarter of 2024, despite the recent slowdown due to the stressed market environment. Total issuance reached around EUR 40bn, down 33% from the very strong second quarter of 2023 but in line with the long-term average. In the first half of 2024, issu- ance totalled around EUR 109bn, 22% below the record level of the previous year but 13% above the average of the last eight years. Issuance in the preferred segment was particularly strong, with a 40% year-on-year decline. Issuance in the non- preferred rank was relatively stable, with the share of total new issuance rising from just under 50% in the first half of 2023 to just over 60% in the first half of 2024. We see this as evidence that the transactions required by the regulators are still easy to execute. At the same time, TLTRO refinancing no longer plays a significant role for pre- ferred issuance now that the programme at the ECB has been largely repaid. French banks, which are very active on the capital markets and have high capital requirements due to their size, dominated as usual, closely followed by Spanish institutions. In addition, US and UK issuers took advantage of the relatively favourable euro funding conditions. We also noticed an increase in the proportion of floating-rate issues (23% most recently) and a lengthening of maturities, both of which we believe reflect the changed interest rate environment. Due to the somewhat weaker first half of 2024, we are reducing our forecast for issuance in 2024 as a whole by EUR 20 bn to EUR 180 bn. This is still a relatively high level. Extensive maturities remain the main driver. In addi- tion, customer deposits are declining as higher interest rates make investment alternatives more attractive. Regu- latory requirements continue to drive senior non-preferred issues. In the case of fixed-to-floating bonds, maturi- ties in 2025 are also likely to be relevant, as the securities can be called before they lose their eligibility for the regulatory minimum capital ratio MREL one year before maturity (see our publication “Regulatory call option for non-preferred bonds becomes standard”). Timing remains a challenge in the volatile and crisis-ridden market environment, and open market windows will be actively used, even at wider spread levels. cs/ After a benchmark covered bond issuance volume of EUR 75 billion in the first quarter, primary market activity in the second quarter was, as expected, lower at EUR 38.2 billion, partly due to lower repayments under the ECB's liquidity programmes and lower maturities. In addition, new issues were generally very well received by the mar- ket, as reflected in the mostly high oversubscription rates and overall low new issue premiums (NIPs). However, EUR benchmark issuance\* Q2 2024: Solid activity levels EUR billions (fixed and variable rate, covered and senior unsecured issuance volume) \* issuance volume of at least EUR 500 million Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 50 100 150 200 250 300 350 400 0 50 100 150 200 250 300 350 400 2018 2019 2020 2021 2022 2023 2024 Q3 Q1 Q2 Q4 Focus on: Credit – Primary Market Update Banks © Helaba | Research & Advisory | 4 July 2024 2 of 6 this was at the expense of the secondary market, where overall demand lost momentum. With the summer break approaching, the decline in primary market activity should lead to lower bid/ask ratios and hence tighter spreads. The annual performance of covered bonds may have peaked and will at best move sideways for the rest of the year. In the second quarter Germany was the undisputed leader with a 22% share of issuance. France followed at a distance with 17%. At 10%, the share of covered bonds with a sustainability component in the first half of 2024 is still above the figure for 2023 (8%). We maintain our forecast of EUR 160bn in issuance for the year. 1. Senior unsecured bonds Q2 2024: Slight decline at high level French banks remain in the lead EUR billions (cumulative benchmark issuance volume) EUR billions (benchmark issuance volume by country, H1 2024) 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 Q1 H1 9M FY FR 14% ES 13% US 12% GB 11% IT 9% DE 7% CA 6% NL 5% DK 4% andere 19% Non-preferred share rising to 61 % Regulatory call option on the decline EUR billions (benchmark issuance volume by payment rank) EUR billions (benchmark issuance volume by maturity type) 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 H1 2024 Non-preferred Preferred 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 H1 2024 Fixed-to-float Bullet Focus on: Credit – Primary Market Update Banks © Helaba | Research & Advisory | 4 July 2024 3 of 6 Longer maturities gain in importance Stable rating mix EUR billions (benchmark issuance volume by maturity) EUR billions (benchmark issuance volume by rating\*) 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 H1 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 H12024 AA A BBB BB others Share of green emissions stable High level of maturities in 2024\* EUR billions (benchmark issuance volume by ESG instrument indicator) EUR billions (benchmark maturity volumes) 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 H1 2024 Classic Green Social Sustain 10% 12% 12% 24% 25% 25% 23% 0 50 100 150 200 250 0 50 100 150 200 250 2021 2022 2023 2024 2025 2026 2027 Floaters regain in attractiveness EUR billions (benchmark issuance volume by coupon type) 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 H1 2024 Fix Floating Focus on: Credit – Primary Market Update Banks © Helaba | Research & Advisory | 4 July 2024 4 of 6 2. Covered Bonds Aaa ratings continue to dominate Sustainable covered bonds: slight increase EUR billions (benchmark issuance volume by rating\*) EUR billions (benchmark issuance volume by ESG instrument indicator) \*Moody’s rating at time of issuance Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 2017 2018 2019 2020 2021 2022 2023 H1 2024 Aaa Aa1 Aa2 Aa3 Others 0 40 80 120 160 200 240 280 2018 2019 2020 2021 2022 2023 H1 2024 Classic Green Social Sustain 12 % 13 % 13 % 9 % 8 % 10 % 8 % Issue volume in H1 2024 almost at 2022 level 2024 maturities lower than last year (EUR 135.7bn) EUR billions (cumulative benchmark issuance volume) EUR billions (benchmark maturity volumes by country) Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 40 80 120 160 200 240 2018 2019 2020 2021 2022 2023 2024 Q1 H1 9M FY 0 5 10 15 20 25 30 35 0 5 10 15 20 25 30 35 2024 2025 2026 Total Volume: 2024: EUR 120,7bn 2025: EUR 139,2 bn 2026: EUR 157,3 bn Germany continues to play a leading role Maturities of 6-10 years en vogue % (of benchmark issuance volume by country, H1 2024) % (of benchmark issuance volume by maturity) Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory DE 22% Others 30% FR 17% AT 8% FI 6% CA 3% IT 7% NO 4% NL 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 0% 10% 20% 30% 40% 50% 60% 0-3Y 4-5Y 6-10Y 11Y+ 2022 2023 2024 Focus on: Credit – Primary Market Update Banks © Helaba | Research & Advisory | 4 July 2024 5 of 6 3. ECB’s targeted longer-term refinancing operations TLTRO III: Holdings being run down Overview of ECB’s targeted longer-term refinancing operations Allocation Settlement Earliest volun- tary repayment (settlement) Maturity Allocated amount (EUR bn) Outstanding amount (EUR bn) TLTRO-III.9 23.09.2021 29.09.2021 29.06.2022 25.09.2024 97.6 42.2 TLTRO-III.10 16.12.2021 22.12.2021 29.06.2022 18.12.2024 51.9 34.2 Sources: Deutsche Bundesbank Eurosystem, ECB Eurosystem, Bloomberg, Helaba Research & Advisory Focus on: Credit – Primary Market Update Banks © Helaba | Research & Advisory | 4 July 2024 6 of 6 Authors Publisher and editor Helaba Research & Advisory Editor Stefan Rausch Corporate Research & Advisory Publisher Dr. Gertrud R. Traud Chief Economist / Head of Research & Advisory Neue Mainzer Str. 52-58 60311 Frankfurt am Main Germany Tel. +49 69/91 32-20 24 Internet: https://www.helaba.com/int/ Disclaimer This publication was very carefully re- searched and prepared. However, it con- tains analyses and forecasts regarding current and future market conditions that are for informational purposes only. The data are based on sources that we con- sider reliable, though we cannot assume any responsibility for the sources being accurate, complete, and up to date. All statements in this publication are for in- formational purposes. They must not be taken as an offer or recommendation for investment decisions. Sign up for our newsletter here: https://news.helaba.de/research/ Dr. Susanne Knips (sk) Senior Credit Analyst T +49 69/91 32-32 11 Christian Schmidt (cs) Covered Bond & SSA Analyst T 069/91 32-23 88

Primary market volume for both, Covered and Senior Unsecured Bonds, declining on high levels. Share of non-preferred paper in total senior unsecured volume increasing to above 60%. New issues of covered bonds very well perceived by the market in H1 2024.