---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-10
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 18 April 2024 © Helaba | Research & Advisory | 18 April 2024 1 of 7 Research & Advisory Weekly Market Update Primary market environment: Rising tensions in the Middle East are weighing on sentiment and affecting risk parameters: Bund swap spreads have widened, for example, and US VIX implied volatility has risen to its highest level since February 2018. Primary markets remain constructive, although issuance volumes have eased somewhat recently. The green in our heat map has weakened somewhat recently. This is particularly true for Senior Unsecured. This is where the spread tightening has been most pronounced. Primary market barometer Despite an overall constructive pic- ture in the SSA segment, Euro issu- ance was manageable this week. However, more activity was seen in GBP and USD. We expect activity to pick up next week. The primary market for covered bonds continues to be very receptive. The majority of issues are characterised by significant oversubscription of the or- der book and tightening spreads. The uncertainty surrounding market de- velopments at the beginning of the week, related to the conflict in the Middle East, has eased somewhat. The market environment remains en- couragingly receptive, but the presen- tation of quarterly reports and the as- sociated blackout period result in rel- atively low activity in the primary mar- ket in this segment. With the earnings season now in full swing, there is un- likely to be any significant pick-up next week. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Mostly positive trend 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 -0,04 -0,21 -0,32 0,48 1,93 3,28 European Union -0,03 -0,17 -0,14 0,20 0,91 2,76 Germany Covered -0,03 -0,03 -0,18 0,23 2,13 2,77 EU Covered -0,02 -0,05 -0,28 -0,26 1,25 2,67 Banks senior preferred 0,02 0,06 -0,09 -0,53 -0,26 0,92 Banks senior bail-in (SNP) 0,04 0,18 0,02 -0,44 -0,58 0,36 Banks subordinated 0,04 0,25 0,08 -0,30 -0,77 0,38 Supranational -0,03 -0,12 -0,11 0,24 1,06 2,82 Agencies -0,05 -0,15 -0,03 0,27 1,92 3,46 Sub-Sovereigns Germany -0,01 -0,04 -0,02 0,19 0,84 1,11 Sub-Sovereigns -0,02 -0,11 -0,07 0,23 1,09 2,19 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 April 2024 2 of 7 SSAs The lower supply, combined with the recent widening of the bund/swap, has led to liquid SSAs be- coming more expensive versus swaps. This is particularly true for EUs, some of which are trading 5bps higher (vs swaps) than a week ago. A similar trend can be seen in other E names, although the movement is much less pronounced. For the time being, however, this general movement seems to have run its course, as the market is already anticipating the next wave of EU supply and other names are likely to consider new issues. The EUR primary market remained very quiet until Wednesday. Then the state of Baden-Württemberg livened things up a bit with a 2-year FRN (EUR 250m, WNG). The issue was priced at EUR 6m -7bp. Today the Norwegian agency Kommunalbanken successfully issued a EUR 500m 5-year green bond (WNG). The book was 4.6x oversub- scribed and the spread eventually tightened by 3bp to MS +11bp. Overall, a number of SSA issuers took advantage of the constructive market environment to issue benchmarks, e.g. in USD such as EIB 5 years, MuniFin 3 years, Ontario 10 years, SFIL 3 years or GBP the KfW (6 years). Outlook: The EU is likely to set the tone next week. We also expect several states to become active again in the near future. Covered Bonds At the very beginning of the week, the French Compagnie de Financement Foncier S.A. (CFF) issued a dual tranche which was successfully placed on the primary market. This was despite the renewed escalation in the Middle East conflict over the weekend. Uncertainty about market developments initially delayed the opening of the order book. In the end, however, market conditions were little changed from Friday. The shorter tranche (EUR 1.25bn, 3 years) was around 2.5 times oversubscribed and the longer eight-year tranche (EUR 750m) was 2.9 times oversubscribed. Spreads tightened by 8 bps to MS +16 bps and MS +36 bps respectively. On Tues- day, Banca Monte dei Paschi di Siena, Equitable Bank (EUR 500m, 3 years, WNG, Social) and LBBW were active with a dual tranche (EUR 500m, 3 years, WNG and EUR 750m, 7 years). All reached their target size without any problems. The Monte dei Paschi bond was placed with around 60 investors, with a final order book of EUR 2.3bn. LBBW and Equitable Bank together attracted just under EUR 2.4bn and EUR 4bn respectively. The final spreads were tightened by 9 bps, 5 bps (LBBW) and 2 bps (Equitable) over Monte dei Paschi's target. The next day saw the debut of Sparkasse Bremen (EUR 250m, 7 years, WNG) and UniCredit Bank GmbH (BMK, 4 years short). Sparkasse impressed with a 4.8x oversubscription and the final spread narrowed by 7bp to MS + 43bp. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 6m€ +0 Bp Baden-Württemberg Aaa /AA+/- 0,250bn 23.04.2026 ms -7 bps 16.04.2024 not disclosed 6m€ -7 area 2,875% Kommunalbanken AS Aaa /AAA/- 0,500bn 25.04.2029 ms +11 bps  18.04.2024 2,300bn ms +14 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 15 April 2024 "Another current geopolitical hotspot adds to the case for subdued secondary market activity! Rising ten- sions in the Middle East have led to a significant widening of bund/swap spreads. At the same time, interest rates in the eurozone and across the Atlantic are moving in opposite directions, at least verbally! In this mixed situation, the dynamics of secondary spreads tend to slow down. In addition, asset managers in par- ticular are saying that covered bonds no longer look so cheap". Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 April 2024 3 of 7 Asset managers play a central role in secondary market demand, so their view is very important for the evolution of spreads. Against the backdrop of the aforementioned bund/swap widening, covered bonds have recently "natu- rally" become cheaper; compared to government bonds and SSAs, the picture is mixed at best. Convergence trends between euro core and semi-core/periphery countries are also well advanced. The pros and cons of further spread widening seem more balanced, suggesting a sideways movement in the coming weeks. In any case, there are currently no signs of a selling impulse on the part of market participants that would lead to a repricing. Outlook: Further issuance is likely to be in the pipeline, especially as the primary market traffic light is still green. However, there are no publicly known mandates as yet. Senior Unsecured Since the beginning of the week, the only senior unsecured bank bond in EUR benchmark format has been Banco Santander's two tranche deal. The new issue is non-preferred. The terms of the two tranches with maturities of 5 and 10 years were attractive for the issuer and investors: Order books were well filled and spreads tightened significantly compared to the initial announcement. The issuer raised a total of EUR 2.0 billion. The current blackout period is having the greatest impact on senior issuance. US banks traditionally kicked off the reporting season with their first quarter results. Once again, the institutions surprised with strong figures: Revenues - including from bond trading and commissions - were relatively high and credit risk costs remained un- der control. However, after a period of strong growth in net interest income, we are seeing the first signs of a flat- tening out, and the outlook for net interest income given by management was rather cautious. We feel confirmed in our expectation that net interest income will flatten out as the year progresses (see our Outlook Report from 16 January 2024). Outlook: The first banks have already filed their quarterly reports and can resume issuance. Some US banks have already issued in USD. Overall, however, the quarterly reporting season will peak over the next two weeks, mean- ing that primary market activity in the senior unsecured segment is likely to remain relatively subdued.. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,125% CFF Aaa /AAA/AAA 1,250bn 24.04.2027 ms +16 bps 15.04.2024 2,200bn ms + 24 area 3,000% CFF Aaa /AAA/AAA 0,750bn 24.04.2032 ms +36 bps 15.04.2024 2,000bn ms + 44 area 3,000% LBBW Aaa /-/- 0,500bn 26.04.2027 ms +13 bps 16.04.2024 1,350bn ms +18 area 3,000% LBBW Aaa /-/- 0,750bn 26.04.2031 ms +30 bps 16.04.2024 1,200bn ms +35 area 3,500% Equitable Bank - /-/AA 0,500bn 28.05.2027 ms +58 bps 16.04.2024 4,000bn ms +70 area 3,250% Banca Monte dei Paschi di Siena S.p.A Aa3 / -/AA- 0,750bn 23.04.2029 ms +68 bps 16.04.2024 2,400bn ms +77 area 3,125% Sparkasse Bremen - /-/AA+ 0,250bn 24.04.2031 ms +43 bps 17.04.2024 1,200bn ms +50 area 3,125% UniCredit Bank GmbH Aaa /-/- 0,750bn 24.02.2028 ms +25 bps 17.04.2024 1,200bn ms +30 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 15 April 2024 Issuer Date Issuer Date DNB BANK ASA 4/23 DEUTSCHE BANK AG-REGISTERED 4/25 LLOYDS BANKING GROUP PLC 4/24 BNP PARIBAS 4/25 CREDIT SUISSE GROUP AG-REG 4/24 SWEDBANK AB - A SHARES 4/25 SVENSKA HANDELSBANKEN-A SHS 4/24 SPAREBANKEN MORE-CAP CERT 4/25 SKANDINAVISKA ENSKILDA BAN-A 4/24 NATWEST GROUP PLC 4/26 BARCLAYS PLC 4/25 DANSKE BANK A/S 4/26 SPAREBANK 1 SR BANK ASA 4/25 Sources: Bloomberg, Helaba Research & Advisory Reporting dates of selected banks Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 April 2024 4 of 7 Chart of the Week The current reporting season for banks is focusing, among other things, on their net interest in- come. These have risen rapidly since the turnaround in interest rates. Banks are passing on some of the higher interest rates to their customers (de- posit beta). We expect net inter- est income to plateau this year (see our Annual Outlook of 10 January 2024). With the pro- spect of interest rate cuts by the ECB and a stable outlook for banks’ earnings, deposit prod- ucts and long-term financing products are starting to see first small reductions in customer interest rates. Short news 4/17 VÖB positions for the 2024 European Election: The Association of German Public Banks (VÖB) published its positions for the 2024 European Election. The VÖB is advocating for a strong banking and financial sector to finance Europe's transformation and ensure its competitiveness. The proposals Coupon Issuer Rating (M/S&P/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 15 April 2024 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,875% Banco Santander Baa1 /A-/A- 1,250bn 22.04.2029 ms +110 bps 15.04.2024 1,700bn ms +130 area 4,125% Banco Santander Baa1 /A-/A- 0,750bn 22.04.2034 ms +140 bps 15.04.2024 1,200bn ms +160 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 15 April 2024 „New geopolitical risks in the Middle East and credit weakness! The potential escalation of the Israeli-Iranian conflict remains a major source of instability for the region as a whole, with massive implications for the oil price, global supply chains and, consequently, inflation. The latest data from the US continues to show rising inflation, strong economic data and a firm labour market. None of this is a reason for the Fed to cut rates in the near future, so markets have been given a cold shower and are now expecting both later and fewer rate cuts. The ECB, on the other hand, maintained its verbal commitment to a June cut at last Thursday's meet- ing, and ECB officials backed this up in subsequent speeches.” Comment from the Helaba trading floor Bank customer interest rates pass peak Customer interest rates in the Euro zone (new business), in % Sources: LSEG Datastream, Helaba Research & Advisory Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 April 2024 5 of 7 relate to “Regulation and Supervision”, “Efficient Capital Markets as a Source of Financing”, “Promoting, Funding, Financing” and “Digital Ecosystems to Strengthen European Sovereignty”. 4/16 Fitch Ratings: UK 'AAA' Covered Bond Ratings Resilient Despite Sluggish Economic Outlook Fitch-rated UK covered bonds are well protected against potential cover pool deterioration arising from higher refinancing costs, persistent core inflation and a subdued housing market, the agency says in two new reports. This is thanks to the large buffers against IDR downgrades (three to six notches), prime quality of cover assets and large overcol- lateralization levels. 4/16 European banks call for classification as a "strategic" sector: European banks are calling on the EU to de- clare them a "strategic" sector, warning that the sector's competitiveness is at stake due to high regulatory re- quirements in international comparison. The lobby called for a review of current regulation to assess its impact not only on stability, but also on competitiveness and growth. 4/15 BdB position paper on securitisation: In a position paper, the Bundesverband deutscher Banken (BdB) ex- amines the starting points for a revival of the securitisation market in Europe. In particular, it emphasises that a single regulatory measure will not bring the desired success in reviving the securitisation market. It therefore con- siders that a comprehensive assessment of the entire securitisation process is necessary. To meet the expected challenges of sustainable and digital transformation, the focus should be on portfolios that are useful for transfor- mation. 4/12 Annual EBA assessment of banks’ internal approaches for the calculation of capital requirements: The European Banking Authority (EBA) today published its 2023 Reports on the annual market and credit risk benchmarking exercises. These exercises aim at monitoring the consistency of risk weighted assets (RWAs) across all EU institutions authorised to use internal approaches for the calculation of capital requirements. Read more \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 188 -3,36% 1,65% iBoxx € Cov. Germany 26,7 -0,1 -2,0 iTraxx Senior Financial 69,9 7,3 5,1 10Yr-Yield 2,47 0,04 0,04 iBoxx € Cov. Bonds 32,4 -0,2 -3,0 iBoxx € Supranational 30,2 -1,2 -1,6 Swap 10J 2,77 0,06 0,06 iBoxx € Banks PS 69,3 2,4 -2,5 iBoxx € Agencies 16,1 -0,9 -0,2 iBoxx € Germany -19,59 -2,46 -3,85 iBoxx Banks NPS 92,3 6,2 -0,1 iBoxx € Sub-Sov. Germany 23,3 -0,1 -0,4 iBoxx € EU 36,07 -2,34 -2,36 iBoxx Banks Subordinated 153,2 10,7 0,6 iBoxx € Sub-Sovereign 38,5 -0,8 -0,9 Leisure tip for the weekend: Landgrave Castle Marburg (Hesse) Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.uni-marburg.de/de/museum/landgrafenschloss A visit to the landgrave's castle in Marburg offers a tour of special rooms and an encounter with numerous objects from the cultural history of the Philipps University of Marburg: the magnificent Fürstensaal is considered one of the most beautiful secular Gothic halls in Germany; the palace chapel, consecrated in 1288, captivates with its medieval frescoes and multi-coloured interior. Find out more: Landgrave Castle Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 April 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 -5 5 15 25 35 45 -5 5 15 25 35 45 04/23 06/23 08/23 10/23 12/23 02/24 04/24 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany 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 04/23 06/23 08/23 10/23 12/23 02/24 04/24 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 04/23 06/23 08/23 10/23 12/23 02/24 04/24 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 April 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 Covered Bonds: APAC Covered Bonds: "Popular securities, limited supply"  Focus on Credit – MayorEuropean Banks: Heading into 2024 with strong credit risk buffers  Focus on: Credit - Primary market update bank bonds  Focus on: Credit – Primary market update corporate bonds  Focus on: Credit – Primary market update Schuldschein  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: SSAs have become more expensive versus swaps. Covered bonds: Oversubscriptions mostly high. Senior Unsecured: Earnings season in full swing. Chart of the week: Bank retail rates pass peak.