---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-2
type: dd_research
language: en
updated: 2026-09-28
keywords: Renten, Weekly Market Update_englisch
---

# SSAs and Financials: Weekly Market Update

Focus on: SSAs & Financials 13 June 2024 © Helaba | Research & Advisory | 13 June 2024 1 of 7 Research & Advisory Weekly Market Update Primary market environment: In the US, the Federal Reserve unsurprisingly left its key interest rate range unchanged at 5.00-5.25%. The central bankers had previously called for patience and indicated that they were in no hurry to turn the tide on interest rates, especially as inflation re- mains high despite a slight decline in May and the labour market is robust. The market environment has clouded over in a short space of time. The clear red colouring of our heat map illus- trates this. It remains to be seen how long the increased risk aversion will last.. Primary market barometer Last weekend's European elections left their mark on the SSA segment. French government bonds were par- ticularly affected, with spreads wid- ening significantly in some cases. Primary market sentiment is likely to remain subdued for the time being. Given the political environment, it is not surprising that no EU issuers came to market in covered format this week. Only a rare guest to the primary mar- ket - the UK's Skipton Building Society - was active, issuing a EUR 500m benchmark. The dampening effect that the EU elec- tions have had on the market environment is also clearly evident in this segment. Since the beginning of the week there has only been one non-preferred issue. The fact that issuance has been very active since the beginning of the year is now pay- ing off. Issuers can wait and see for now, with the summer break just around the corner anyway. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Risk aversion on the rise Relative\* ASW spread change \* ASW levels standardized and 2T-smoothed Sources: LSEG, Helaba Research & Advisory IBOXX EURO 1 day 1 week 4 week 13 weeks 52 weeks 104 weeks Germany -0,05 -0,14 0,08 0,07 2,12 3,72 European Union 0,10 0,08 0,20 0,07 0,97 2,38 Germany Covered 0,01 0,00 -0,03 -0,28 1,81 2,63 EU Covered 0,05 0,05 0,03 -0,42 1,06 2,60 Banks senior preferred 0,01 0,10 0,12 -0,12 -0,55 -0,74 Banks senior bail-in (SNP) 0,01 0,13 0,15 -0,09 -0,82 -1,33 Banks subordinated 0,06 0,18 0,05 -0,19 -1,16 -1,75 Supranational 0,10 0,06 0,15 0,07 1,12 2,44 Agencies 0,16 0,32 0,46 0,39 2,27 3,80 Sub-Sovereigns Germany 0,05 -0,02 0,01 0,00 0,88 1,47 Sub-Sovereigns 0,12 0,10 0,21 0,12 1,26 2,21 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 13 June 2024 2 of 7 SSAs After very quiet weeks with manageable volumes, the SSA market was caught off guard by the results of the European elections over the weekend and saw some significant spread widening due to the underperformance of French government bonds. Once again, EU bonds at the longer end were the hardest hit as they are the most liquid and therefore the first to be sold. However, European names were also affected, although the widening was limited. Since Monday, some bonds have traded around 10bp higher than on Friday last week and there is a fear that the high volatility will continue and further underperformance can be expected. Another factor we have seen since Tuesday is that liquidity has dried up and bid/offer spreads have widened massively, ex- acerbating the moves. On Monday, the Province of British Columbia successfully increased its bond maturing in July 2034 on the pri- mary market by EUR 600 million with an order book of around EUR 1 billion. The spread of MS+ 44 bps remained unchanged compared to the marketing. With a bookbuilding of around EUR 40bn, the EU successfully completed the issue of a EUR 6bn benchmark bond with a term of 15 years on Tuesday. The final spread was set at MS+ 52 basis points, 1 bp tighter than the marketing, but the market had expected a more significant tightening. The investment bank of the State of Brandenburg followed suit on Wednesday. The 8-year bond (EUR 500m, WNG) struggled to meet its funding target. The longer tenor was probably just one of the reasons. The spread re- mained unchanged from the marketing and was fixed at MS + 19bp. Today, the State of Hesse was active with a floater (EUR 500m, 4 years, WNG) and Ville de Paris with a social bond (EUR 400m, 24 years). The Ville de Paris issue went well, while no order book was announced for Hesse. Outlook: The issuance environment has clouded over due to the recent high volatility. It is difficult to assess how long this situation will last. However, we expect the states to remain active in the primary market next week. Covered Bonds It is clear that French covered bonds are particularly exposed at the moment. In terms of maturities, spreads are highest at the long end, as expected. This suggests that a steeper spread structure curve is in order ahead of upcoming new issues and is probably also necessary to encourage buying. The general uncer- tainty coupled with high event risks (economic, but especially geopolitical) is likely to keep general market volatil- Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,000% British Columbia Aaa /AA+ 0,600bn  24.07.2034 ms +44 bps 10.06.2024 1,000bn ms +44 area 3,375% European Union Aaa /- 6,000bn 04.10.2039 ms +52 bps 11.06.2024 37,000bn ms + 53 area 3,000% IB Brandenburg Aaa /- 0,500bn 18.06.2032 ms +19 bps 12.06.2024 0,350bn ms + 19 6m€ +0 Bp Hessen - /- 0,500bn 20.06.2028 ms -1 bps 13.06.2024 not disclosed 6m€-1 area 3,750% Ville de Paris Aa2 /- 0,400bn 25.05.2048 FRTR +25 Bp  13.06.2024 0,800bn FRTR +25 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 10 June 2024 "Starting with developments in France, events have spread to other countries in the semi-core and, in some cases, peripheral universe. Even the secondary covered bond market, which is already slightly affected in terms of spreads, has not remained unaffected. It is important to understand that the "French mix" is not the trigger for the movements in the secondary covered bond market, but "only" another negative factor for valu- ations versus swaps. Even without the current risk event, the market was at best in a consolidating mood, with spreads widening slightly. In this respect, the French issue came at an absolutely inopportune time and added to the pressure to adjust in the cash register." Comment from Helaba’s trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 13 June 2024 3 of 7 ity high. The fact that the French elections will take place towards the end of the first half of the year should pre- vent many players from leaning too far out of the window. And then there is the fateful autumn for the western world with the US elections. On Tuesday, Skipton Building Society issued its first euro-covered bond since 2019 (EUR 500m, 5 years, WNG). However, Skipton's successful issue - the order book totalled EUR 785m - did not match the results of recent UK issues by Santander UK, Nationwide and Yorkshire Building Society, which were on average 3.2 times oversub- scribed. Outlook: Issuance activity is likely to be subdued, at least in the short term, given the increased volatility. How- ever, future projects are in the pipeline. Australia's Bendigo & Adelaide Bank (BMK, 5 years) started a roadshow this week (last date in London is 20 June) to gauge market sentiment. The earliest issue date is likely to be 24 June, but depending on investor feedback, the transaction could take place after the summer holidays. Českoslov- enská obchodná banka, a.s. (CSOB), the Slovak financial institution subsidiary of KBC Bank NV, is also on a road- show for a 5-year covered bond (EUR 500m, WNG). Banca Dell'Alto Adige is also in the pipeline with a sub-bench- mark and could hit the screens on 17 June. Senior Unsecured Political uncertainty in France following the EU elections and the war in Ukraine are weighing on the market environment. US interest rate projections are also dampening sentiment. Credit spreads widened significantly compared to the previous week. The movement in French bonds has been particularly strong. In this environment, the primary market for senior unsecured bank bonds cooled off abruptly. Only the Polish "national champion", PKO Bank Polski, issued a senior non-preferred benchmark bond. On a transaction size of EUR 500m, the initial spread target was narrowed by 25bp to a final MS+155bp. Outlook: The fact that issuance has been very active since the beginning of the year is now paying off. Issuers can wait and see for now, as the summer break is just around the corner anyway. However, given the large number of maturities, there is still a strong need for issuance through to the end of the year, so market windows are likely to remain active. Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,250% Skipton Building Society Aaa /- 0,500bn 18.06.2029 ms +38 bps 11.06.2024 0,785bn ms + 40 Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 10 June 2024 Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication none Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 10 June 2024 „The EU elections have dealt a significant blow to markets and the positive sentiment that had prevailed for weeks, and political uncertainty in Europe has increased massively. In particular, the snap elections in France at the end of June are causing strong movements in the rates and credit sectors this week. The iTraxx indices widened after several weeks of tight trading around series lows. The political uncertainty in France and the gradual escalation of the geopolitical situation in Eastern Europe are definitely dampening sentiment.“ Comment from Helaba’s trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 13 June 2024 4 of 7 Chart of the Week The outcome of the Euro- pean elections has caused turbulence in the markets. In particular, the news from France (dissolution of parlia- ment, snap elections at the end of June/beginning of July and rumours of Mac- ron's possible resignation in the event of a right-wing populist victory) led to a re- pricing of the French market. French sovereign and agency spreads quickly jumped to multi-month highs, accompanied by neg- ative comments from some rating agencies. Overall, these events led to a widening of the spread differential be- tween French government bonds (dark blue curve) and covered bonds. The fact that the risks of government bonds are weighted higher than those of covered bonds is not a new phenomenon, but over the last two years or so, higher yields have been achieved on covered bonds. In this respect, French covered bond issuers are likely to find it more difficult to place new issues with yield-oriented investors. Based on past "trend phases", this situation could be prolonged. Short news 6/12 New Covered Bond Label Member: The Covered Bond Label Foundation (CBLF) is pleased to announce that Equitable Bank, Canada’s Challenger Bank™ and 7th largest bank by assets, is the latest Canadian bank and the 145th issuer to join the Covered Bond Label, marking the 182nd covered pool lo- cated in 25 jurisdictions. 6/12 Project Viridis - a climate risk platform for financial authorities: Central banks recognise that climate change and the transition to a low-carbon economy are sources of financial risks. In response to these challenges, the Bank for International Settlements (BIS) launched Project Viridis to explore the development of a climate risk platform that could help identify material climate-related financial risks. 6/7 ESAs Joint Annual Report for 2023: The Joint Committee of the European Supervisory Authorities (ESAs) published its 2023 Annual Report, providing an account of the joint work completed over the past year. Through the Joint Committee the ESAs explore and monitor potential emerging risks for financial markets partici- pants and the financial system as a whole. 6/7 BdB - Transition is becoming increasingly important: Initially, the EU legal framework for sustainable finance focused on which economic activities were considered green through the EU taxonomy. It soon became clear that this approach was not sufficient. According to the Association of German Banks (BdB), the focus is therefore in- creasingly shifting to how companies and thus the entire economy can become more sustainable - the transition. Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,500% PKO Bank Polski SA Baa3 /BBB 0,500bn 18.06.2029 ms +155 bps 11.06.2024 1,100bn ms + 180 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 10 June 2024 European elections and France's rating downgrade leave their mark ASW spread differential between government bonds and covered bonds in bp. Sources:LSEG, Helaba Research & Advisory -30 -20 -10 0 10 20 30 40 -30 -20 -10 0 10 20 30 40 50 Jun. 20 Aug. 20 Okt. 20 Dez. 20 Feb. 21 Apr. 21 Jun. 21 Aug. 21 Okt. 21 Dez. 21 Feb. 22 Apr. 22 Jun. 22 Aug. 22 Okt. 22 Dez. 22 Feb. 23 Apr. 23 Jun. 23 Aug. 23 Okt. 23 Dez. 23 Feb. 24 Apr. 24 Jun. 24 Diff France Covered France Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 13 June 2024 5 of 7 6/7 Banks say growing reliance on Big Tech for AI carries risks: The boom in artificial intelligence (AI) will in- crease banks' dependence on big U.S. tech firms, creating new risks for the industry, European banking executives said. As reported by Reuters, excitement around using artificial intelligence in financial services has soared since the launch of OpenAI's viral chatbot ChatGPT in late 2022. \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 198 -0,47% -2,92% iBoxx € Cov. Germany 25,6 -0,3 -0,7 iTraxx Senior Financial 61,3 2,8 3,3 10Yr-Yield 2,54 0,04 0,11 iBoxx € Cov. Bonds 31,3 0,3 0,0 iBoxx € Supranational 32,8 1,1 1,5 Swap 10J 2,83 0,08 0,13 iBoxx € Banks PS 68,3 1,8 2,6 iBoxx € Agencies 20,0 2,8 3,8 iBoxx € Germany -14,59 -2,05 1,49 iBoxx Banks NPS 88,9 2,7 4,0 iBoxx € Sub-Sov. Germany 24,0 -0,1 -0,1 iBoxx € EU 39,90 1,82 2,64 iBoxx Banks Subordinated 143,3 7,3 2,5 iBoxx € Sub-Sovereign 41,2 1,5 2,3 Leisure tip for the weekend: Petting zoos in the NRW region Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.nrw-tourismus.de There are many free zoos and wildlife enclosures in NRW where the four- legged inhabitants can not only be visited, but also petted and fed. Both the Alsdorf Zoo near Aachen and the Weeze Zoo on the Lower Rhine are fun for the whole family. The Olderdissen Wildlife Park in Bielefeld is also a worthwhile destination for night owls: the site, which is home to bison, tar- pans, wolves, lynx, wild cats and eagle owls, is open daily until 10 pm. Find out more: Alsdorf, Weeze, Olderdissen Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 13 June 2024 6 of 7 Chartbook SSAs, Covered Bonds, Senior Unsecured Senior Unsecured: Primary volumes Senior Unsecured: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW spread, bp Sources: Bloomberg, Helaba Research & Advisory Sources: LSEG, Helaba Research & Advisory 0 20 40 60 80 100 120 0 20 40 60 80 100 120 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2023 Senior Non-preferred 2023 Senior Preferred 2024 Senior Preferred 2024 Senior Non-preferred 0 50 100 150 200 250 300 0 50 100 150 200 250 300 06/23 08/23 10/23 12/23 02/24 04/24 06/24 Banks Subordinated Banks Senior Bail-in Banks Senior Preferred Covered Bonds: Primary volumes Covered Bonds: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW spread, bp Sources: Bloomberg, Helaba Research & Advisory Sources: LSEG, 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 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2023 2022 2024 0 5 10 15 20 25 30 35 40 0 5 10 15 20 25 30 35 40 06/23 08/23 10/23 12/23 02/24 04/24 06/24 EUR Covered Covered Germany SSAs: Primary volumes SSAs: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW spread, bp Sources: Bloomberg, Helaba Research & Advisory Sources: LSEG, Helaba Research & Advisory 0 50 100 150 200 250 300 350 400 0 50 100 150 200 250 300 350 400 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2022 2024 2023 -5 5 15 25 35 45 -5 5 15 25 35 45 06/23 08/23 10/23 12/23 02/24 04/24 06/24 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 13 June 2024 7 of 7 News from Research & Advisory  Focus on Credit: Primary market update EUR benchmark bank bonds Q1 2024  Focus on Credit: Corporate Schuldschein - Primary market Q1 2024  Focus on Credit: EUR Corporate bonds – Primary market Q1 2024  Focus on Covered Bonds: APAC Covered Bonds - Popular instruments with limited sup- ply  Focus on Credit – Major European Banks:- Heading into 2024 with strong credit risk buffers  Focus on: Credit – European banks: The sharpening contours of ESG disclosure  Markets & Trends 2024 – Global economy in a transition game Please feel free to contact us Publisher and editorial office Helaba Research & Advisory Editor: Sabrina Miehs Corporate Research & Advisory Responsible: Dr. Gertrud R. Traud Chefvolkswirtin/ Head of Research & Advisory Neue Mainzer Str. 52-58 60311 Frankfurt am Main T +49 69 / 91 32 – 20 24 Internet: www.helaba.com Disclaimer This publication has been prepared with the greatest care. However, it contains only non-binding analyses and forecasts of current and future market conditions. The information is based on sources which we consider to be reliable, but for whose accuracy, completeness or up-to-dateness we cannot assume any liability. All state- ments made in this publication are for information purposes only. They must not be understood as an offer or recommendation for investment de- cisions. Here you can subscribe to our newsletter: https://news.helaba.de/research/ Dr. Susanne Knips Senior Credit Analyst T 069/91 32-32 11 Sabrina Miehs, CESGA Head of FI & SSA Research Senior Advisor Sustainable Finance T 069/91 32-48 90 Christian Schmidt Covered Bond & SSA Analyst T 069/91 32-23 88

SSAs: Significant spread widening in some cases . Covered bonds: No EU issuers in covered format. Senior Unsecured:Issuers with a wait-and-see attitude . Chart of the week: European elections and France's rating downgrade leave their mark.