---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-11
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 11 April 2024 © Helaba | Research & Advisory | 11 April 2024 1 of 8 Research & Advisory Weekly Market Update Primary market environment: The DAX takes a breather after recent record highs. Gold consoli- dates at high levels. As expected, the ECB leaves interest rates unchanged. In the US, monthly inflation rose more than expected, raising doubts about the Fed's expected path of rate cuts. Pri- mary markets continue to show impressive absorptive capacity. The play of colours on our heat map is shifting further towards green. This appears to be a trend towards tighten- ing of the spread Primary market barometer The picture for euro SSAs is un- changed: spreads over swaps remain wide and client purchases in the sec- ondary market are mostly limited, as the majority of new investments are made in the primary market. Despite the limited window due to the ECB meeting, the primary market picked up as expected this week. A to- tal of 7 transactions with a volume of EUR 4.75bn were successfully issued. A highlight was Hypo NOE with one of the strongest order books in Austria in recent years. In line with expectations, the primary market for senior unsecured bank bonds was noticeably stronger after the Easter break. The market environ- ment remained supportive and trans- actions were successfully completed. Relatively little issuance is expected in the coming weeks due to the up- coming quarterly reporting season. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Spread tightening trend continues 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 -0,02 -0,06 -0,13 0,63 2,34 3,62 European Union -0,04 -0,07 -0,07 0,27 1,20 2,94 Germany Covered -0,05 -0,08 -0,14 0,12 2,27 2,85 EU Covered -0,05 -0,11 -0,27 -0,36 1,38 2,72 Banks senior preferred -0,04 -0,12 -0,22 -1,02 -0,67 1,08 Banks senior bail-in (SNP) -0,03 -0,12 -0,15 -1,02 -1,16 0,43 Banks subordinated -0,03 -0,14 -0,19 -0,90 -1,46 0,25 Supranational -0,04 -0,05 -0,04 0,27 1,31 2,96 Agencies -0,07 -0,16 0,06 0,25 2,21 3,49 Sub-Sovereigns Germany -0,02 0,01 0,02 0,17 0,93 1,11 Sub-Sovereigns -0,04 -0,06 -0,03 0,23 1,26 2,29 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 April 2024 2 of 8 SSAs After two weeks of very quiet trading in the Euro SSA segment, primary market activity has picked up as expected since Monday. The State of Lower Saxony led the way with a EUR 500m increase in its 3/2029 bond. This was followed on Tuesday by the Council of Europe Development Bank (CoE) with a 7-year so- cial bond (EUR 1.25bn), the Canadian province of Alberta (EUR 1.5bn, 10 years) and Bpifrance (EUR 1.25bn, 8 years). Demand for the Bpifrance issue was very strong, with an order book of around EUR 15bn. This may have been due to the lack of supply from French agencies. The final spread was set at OAT + 23bps, 6bps tighter than at launch. The CoE spread tightened by 30 bps to MS+60 bps and Alberta was priced 4 bps tighter at MS+48 bps. For Alberta, this was the first EUR issue in a public format since 2020. The total primary market volume of Canadian SSAs this year is close to EUR 11bn. No further issuance was seen ahead of Wednesday's US CPI data and, in particular, today's (Thursday) ECB rate decision. Outlook: Our expectations for the SSA segment remain neutral until there are real opportunities for a tactical long in the primary market towards the summer. A new EU offer is expected in the week starting 22 April. The market is expecting a new bond in the 15 year range. Covered Bonds The primary market was relatively quiet around the Easter holidays. This week started relatively dy- namically. On Monday, Westpac Banking Corp. issued a EUR 1.5bn 7-year covered bond. With an or- der book of over EUR 2.5bn, the final spread tightened by 6bp to MS +42bp over marketing. Nordea also took ad- vantage of the constructive environment on the same day. The EUR 1bn 10-year issue saw demand of around EUR 1.75bn and was priced at MS+ 33bp, 7bp below marketing. This was followed on Tuesday by Bausparkasse Schwäbisch-Hall (EUR 500m, 9.6 years, WNG, green), S-Bank (EUR 500m, 6 years) and Yorkshire Building Society (EUR 500m, 7 years, WNG). With demand totalling EUR 2.26bn, EUR 2.3bn and EUR 1.5bn respectively, they all eas- ily reached their target volumes. Bausparkasse Schwäbisch Hall thus successfully printed its second "green" Mort- gage Pfandbrief this year. Investor interest continued right up to the booking deadline, so that the final spread of MS + 36 bp was 7 bp tighter than at the time of marketing. On Wednesday, Austria's Hypo NOE (EUR 500m, 8 years, WNG, public sector) and Landesbank Berlin (EUR 250m, 10 years, WNG) successfully used the available is- suance window. Hypo NOE's order book was more than five times oversubscribed. With demand totalling around EUR 2.6 billion and 119 investors subscribing, this was a record for the bank. Landesbank Berlin also easily met its target volume with a bid-to-cover ratio of 2.6. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,625% Niedersachsen - /-/AAA 0,500bn  15.03.2029 ms +7 bps 08.04.2024 0,930bn ms +7 area 2,750% Council of Europe Development Bank Aaa /AAA/AAA 1,250bn 16.04.2031 ms +13 bps  09.04.2024 3,300bn ms +15 area 2,875% Bpifrance Financement Aa2 /-/AA- 1,250bn 31.01.2032 OAT +23 Bp 09.04.2024 15,000bn OAT +29 area 3,125% Province of Alberta AA2 /AA-/AA- 1,500bn 16.04.2034 ms +48 bps 09.04.2024 6,600bn ms +52 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 8 April 2024 „After two short weeks of trading due to Easter, the market is split in two: The primary market is back in full swing and, as usual this year, is showing good to very good results (order book dynamics, final reoffer re- sult, hardly any NIPs). The secondary market is much slower than a few weeks ago, and the much-vaunted follow-up performance of primary transactions is rather sluggish. Demand for secondary assets is less buoy- ant and the pace of tightening has slowed accordingly.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 April 2024 3 of 8 Given the strong overall performance of covered bonds in 2024 so far, the slowdown in the secondary market is on the one hand not surprising and on the other a possible indication of a more balanced relationship between supply and demand. The cross-country convergence between core and peripheral euro area countries and be- tween semi-core and non-euro area bonds also tends to remain intact. The example of this week's NDAFH 04/34 issue (priced at I+33bp and thus flat to German secondary Pfandbriefe) shows how far this trend has already pro- gressed. The interesting question, which cannot yet be answered conclusively, is therefore Is there already enough volume in the market among the more speculative investor groups to play the relative value trade from the other side again? In any case, the somewhat cooler secondary demand suggests a less euphoric trading ap- proach. Outlook: A number of issuance projects are likely to be in the pipeline. These include the Equitable Bank issue mandated last week. Senior Unsecured In the senior segment, the primary market picked up noticeably this week compared to the previous weeks, which were dominated by the Easter holiday. A total of EUR 6.1bn was issued in four pre- ferred and three non-preferred transaction cones. Order books were well oversubscribed and spread premiums were favourably tightened during the bookbuilding process. US banks kick off the reporting season tomorrow. Among other things, banks' net interest income is likely to be in the spotlight. Since the turnaround in interest rates, banks' net interest income has risen rapidly. We expect this to continue as the year progresses (see our Outlook Report from 16 January 2024). In the ECB's latest bank lend- ing survey, euro area banks reported a slight further tightening of their lending standards for corporate loans in the first quarter of 2024. Demand for loans from enterprises was particularly surprising, as it continued to fall sharply (-28%), contrary to expectations that it would stabilise. Nevertheless, banks reported a moderate easing of lending standards for loans to households for the first time since Q4 2021. Competition for customer deposits is intensifying and banks are under increasing pressure to pass on higher interest rates to customers (so-called deposit beta). Balance sheet quality should also be closely monitored: According to the recently published EBA Risk Dash- board, the problem loan ratio remained at a low level as of December 2023, although there were first signs of a deterioration in credit quality. However, capital ratios are at historically high levels and banks therefore have very good risk buffers. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,000% Nordea Aaa /-/- 1,000bn 12.04.2034 ms +33 bps 08.04.2024 1,250bn ms +40 area 3,131% Westpac Aaa /-/AAA 1,500bn 15.04.2031 ms +42 bps 08.04.2024 2,500bn ms +48 area 3,000% Bausparkasse Schwäbisch Hall Aaa /-/- 0,500bn 16.10.2033 ms +36 bps  09.04.2024 2,270bn ms +43 area 3,000% S-Bank - /AAA/- 0,500bn 16.04.2030 ms +42 bps 09.04.2024 1,500bn ms +50 area 3,000% Yorkshire Building Society Aaa /-/AAA 0,500bn 16.04.2031 ms +40 bps 09.04.2024 2,300bn ms +47 area 3,000% HYPO NOE Aa1 /-/- 0,500bn 16.04.2032 ms +47 bps 10.04.2024 2,600bn ms +55 area 3,000% Landesbank Berlin Aaa /-/- 0,250bn 17.04.2034 ms +36 bps 10.04.2024 0,650bn ms +42 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 8 April 2024 Issuer Date Issuer Date JPMORGAN CHASE & CO 4/12 BANK OF AMERICA CORP 4/16 CITIGROUP INC 4/12 NORDEA BANK ABP 4/18 WELLS FARGO & CO 4/12 BANKINTER SA 4/18 GOLDMAN SACHS GROUP INC 4/15 Sources: Bloomberg, Helaba Research & Advisory Reporting dates of selected banks Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 April 2024 4 of 8 The exit from TLTRO III had a slightly negative impact on banks' liquidity positions. However, given the very high repayments since November 2022 and the comparatively low residual amounts of TLTRO III, banks reported only a minor impact on their overall funding conditions and a neutral effect on credit conditions. (For the current out- standing TLTRO volumes, see our primary market update from 3 April 2024. Outlook: Due to the publication of quarterly reports and the associated blackout period, primary market activity for senior unsecured bank bonds is expected to be relatively low in the coming weeks. Chart of the Week In the ECB’s April 2024 bank lending survey (BLS), euro area banks reported a small further tightening of their credit standards for loans to enterprises in the first quarter of 2024 (net percentage of banks of 3%). This was less than banks had expected in the previous round (9%). The net tightening figure reflected tight- ening in Germany and a few smaller countries, while all other jurisdictions reported net unchanged credit standards. Banks’ risk perceptions were the main driver of the net tightening. The substantial cumulative tight- ening since 2022 has contributed, together with a pro- longed weakening in loan demand, to the strong fall in the growth of loans to firms. Expectations are for a moderate net tightening for the second quarter of 2024 (6%). Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3m€ +35 Bp UBS AG London Branch Aa3 /A+/AA- 1,500bn 12.04.2026 ms +35 bps 08.04.2024 not disclosed 3m€ + 60 area 4,750% BFF Bank SpA Ba2 /-/- 0,300bn 20.03.2029 ms +190 bps 08.04.2024 0,425bn ms + 210 area 3m€ +60 Bp Intesa Sanpaolo S.p.A. Baa1 /BBB/BBB 1,000bn 16.04.2027 ms +60 bps 09.04.2024 2,000bn 3m€ +100 area 3,625% Intesa Sanpaolo S.p.A. Baa1 /BBB/BBB 1,000bn 16.10.2030 ms +107 bps  09.04.2024 2,500bn ms +145 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 8 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% Jefferies Financial Group Inc Baa2 /BBB/BBB+ 0,750bn 16.04.2026 ms +70 bps 09.04.2024 1,250bn ms + 100 area 4,000% Jefferies Financial Group Inc Baa2 /BBB/BBB+ 0,500bn 16.04.2029 ms +130 bps 09.04.2024 1,000bn ms + 155 area 3,500% Bank of Nova Scotia A2 /A-/AA 1,000bn 17.04.2029 ms +75 bps  10.04.2024 1,900bn ms +105 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 8 April 2024 „Investor flows have remained below average, although the primary market has become more active again. ETF funds have turned from buyers to sellers, while real money accounts are active in both directions, buy- ing recently issued longer-dated bonds whose secondary performance is still catching up. Overall, however, there is now a trend reversal towards more sellers in the market.” Comment from the Helaba trading floor Lending standards for companies remain relatively strict Change Share of positive vs. negative values\*, in % \* Positive values are tightening/increasing, negative values are easing/decreasing Sources: ECB, Helaba Research & Advisory -50 -20 10 40 70 100 -50 -20 10 40 70 100 05/16 11/16 05/17 11/17 05/18 11/18 05/19 11/19 05/20 11/20 05/21 11/21 05/22 11/22 05/23 11/23 05/24 bank lending standards for enterprises corporate demand for loans Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 April 2024 5 of 8 Firms’ net demand for loans continued to decline substantially in the first quarter of 2024, in contrast to the ex- pectations of stabilisation reported in the previous round (net percentage of -28%). The decline in loan demand was mainly driven by higher interest rates reported by banks in all four large euro area countries, and lower fixed investment. While the net percentage of banks reporting a decrease remained smaller than its all-time low in the second quarter of 2023 (-42%), the decline added to the substantial net decreases in loan demand since the fourth quarter of 2022. The strong decline in net demand contrasted with banks’ expectations of a slight increase. Banks expect a small net decrease in demand for loans to firms for the second quarter of 2024. Short news 4/10 EU hints at relaxing global bank rules in face of US delays: EU has signaled it could relax the way it pushes through controversial international banking standards if it believes that's what's needed to better compete with the rest of the world. The European Commission “stands ready to act if necessary” in light of “the uncertainty around the implementation of the standards in other jurisdictions and the importance of having an international level-playing field,” a spokesperson told POLITICO. 4/10 China faces credit rating downgrade: Fitch today downgraded the outlook for China's credit rating to nega- tive. This means that the People's Republic is at risk of a lower credit rating. However, Fitch currently maintains China's rating at 'A+'. The agency cited increasing risks to the country's budget as the reason for the lower out- look. (DiePresse) 4/10 IMF warns of cyber attacks on banks: The International Monetary Fund (IMF) sees cyber attacks as a growing threat to financial stability. Attacks on banks are a particular concern. According to a report published today by the IMF, the number of cyber attacks has almost doubled since before the coronavirus pandemic. The financial sector accounts for nearly one in five attacks. Major attacks could potentially lead to a loss of confidence in the sector and disrupt key services, the IMF warned. A proper strategy is needed to fend off attacks. "Data collection on cyber in- cidents must become a global priority." The financial sector needs to share lessons learned to become more resili- ent. (DerStandard) 4/8 EU leaders to call for harmonised EU bankruptcy, corporate tax laws: European Union leaders will call next week for a harmonisation of the 27-nation bloc's bankruptcy and corporate tax laws to attract more private capital for the EU shift to renewable energy and a more digital economy, a draft document showed. Draft conclusions of a summit of EU leaders scheduled for April 17-18, seen by Reuters, also showed leaders would call for the develop- ment of a European securitisation market and for better supervision of cross-border financial market actors. 4/8 ECB - Tightening of financing conditions moderates: The European Central Bank (ECB) reports that the re- sults of the 30th round of the Survey on the Access to Finance of Enterprises (SAFE) suggest that euro area firms’ financing conditions tightened further in the first quarter of 2024, but less so than in the fourth quarter of 2023. 4/8 UBS prepares for Switzerland’s ‘too big to fail’ regulation: UBS’s intervention in rescuing Credit Suisse a year ago has raised concerns among Switzerland’s regulators about the stability of the country’s financial sector. As reported by The Banker, the Swiss government is due to publish its proposals for regulating banks this month that are deemed “too big to fail”, potentially subjecting UBS, as the country’s only remaining big bank, to stricter operational standards. 4/5 Euro area bank interest rate statistics: February 2024: The ECB published the Euro area bank interest rate statistics for February 2024. The findings show that the composite cost-of-borrowing indicator for new loans to corporations decreased to 5.12%, driven by interest rate effect. Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 April 2024 6 of 8 4/4 Will the EU’s securitisation revival bring more capital relief for banks?: The European banking industry is readying itself for regulatory changes that will allow the revitalisation of the securitisation market, which has stag- nated following the global financial crisis, despite growth in other regions. Securitisation, supporters argue, could widen the scope of funding instruments for banks, move risks away from their balance sheets, and free up capital for lending to the real economy, The Banker reports. \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 194 0,72% 6,74% iBoxx € Cov. Germany 26,9 -0,8 -2,1 iTraxx Senior Financial 62,6 -1,1 4,2 10Yr-Yield 2,43 0,03 0,07 iBoxx € Cov. Bonds 32,7 -1,2 -3,5 iBoxx € Supranational 31,4 -1,0 -1,4 Swap 10J 2,71 0,03 0,09 iBoxx € Banks PS 66,9 -3,4 -4,6 iBoxx € Agencies 17,0 -1,7 -0,2 iBoxx € Germany -17,13 -0,62 -2,84 iBoxx Banks NPS 86,1 -3,5 -3,1 iBoxx € Sub-Sov. Germany 23,4 -0,3 -0,7 iBoxx € EU 38,41 -1,51 -1,97 iBoxx Banks Subordinated 142,5 -6,6 -6,1 iBoxx € Sub-Sovereign 39,2 -1,2 -1,3 Leisure tip for the weekend: Wiehl stalactive cave (NRW) Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.wiehl.de/tourismus/sehenswürdigkeiten/tropfsteinhoehle The temperature in the Wiehl Cave is a constant 8 degrees Celsius. After 26 steps you reach the entrance hall, 7 metres below ground. Hanging, mostly slender dripstones (stalactites) and somewhat clumsy-looking stalagmites, growing from the bottom up, pave the way. Thick cascades, pillars, columns and other structures full of beautiful shapes, glittering and bright colours, ranging from shiny white to bright red, amaze the visitor. Find out more: Cave Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 April 2024 7 of 8 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 04/23 06/23 08/23 10/23 12/23 02/24 04/24 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 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 | 11 April 2024 8 of 8 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: Stefan Rausch 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: Unchanged picture for Euro SSAs. Covered bonds: Continued high oversubscription rates. Senior Unsecured: Net interest income and balance sheet quality in the focus of the upcoming reporting season. Chart of the week: Lending to companies remains restrictive.