---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-15
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 14 March 2024 © Helaba | Research & Advisory | 14 March 2024 1 of 8 Research & Advisory Weekly Market Update Primary market environment: The DAX exceeds 18,000 points for the first time. The ECB main- tains its system of excess liquidity; the spread between the deposit rate and the main refinanc- ing rate will fall from 50 bp to 15 bp in September. The US Federal Reserve is playing for time with interest rate cuts. The environment in the primary markets remains favourable. Once again, the colour scheme has changed significantly over the course of the week. Our heat map shows signifi- cant improvement in all segments. Given the recent volatility, this is only a snapshot in time. Primary market barometer The primary market in the SSA seg- ment was relatively active this week, with most issues attracting very good demand. Investors had a wide range of maturities and jurisdictions to choose from. The primary market for covered bonds remains constructive, so it is not sur- prising that issuers are taking ad- vantage of the opportunities before the Easter holidays. Overall, non-core eurozone issues are attracting partic- ularly strong interest. Despite the extremely favourable mar- ket environment, primary market ac- tivity in the unsecured segment is subdued. Issuers are concentrating on the covered segment. The FED meet- ing next week will also have a damp- ening effect. Transaction volumes should then pick up again before the Easter break. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Significant improvement in sentiment on a weekly basis 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 0,08 0,15 0,65 1,35 2,79 3,63 European Union 0,02 -0,08 0,20 0,60 0,98 3,09 Germany Covered 0,02 -0,16 0,03 0,88 2,36 3,04 EU Covered 0,00 -0,16 0,00 0,32 1,52 2,90 Banks senior preferred -0,12 -0,32 -0,42 -0,31 -0,62 0,49 Banks senior bail-in (SNP) -0,14 -0,35 -0,47 -0,43 -1,38 -0,05 Banks subordinated -0,13 -0,33 -0,43 -0,30 -1,28 -0,10 Supranational 0,02 -0,09 0,22 0,57 1,08 3,11 Agencies 0,02 -0,09 0,22 0,81 2,06 3,46 Sub-Sovereigns Germany 0,01 -0,07 0,13 0,28 0,80 0,76 Sub-Sovereigns 0,01 -0,10 0,25 0,53 1,08 2,07 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 March 2024 2 of 8 SSAs This week the Junta de Andalucia (EUR 750m) opened the primary market with a 10-year sustaina- ble bond, the ESM (EUR 2bn, 5 years, WNG), the Auckland Council (EUR 600m, 10 years, green) and the state of Lower Saxony (EUR 1bn, 8 years). The order books of Andalusia and ESM were very full at EUR 2.4 bil- lion and EUR 10 billion respectively, while Lower Saxony only had a sufficient volume of EUR 1.1 billion. This was the first syndicated transaction for the ESM this year. The size of the issue means that one third of this year's fund- ing target has already been achieved. Due to the large number of data releases this week, the ESM opted for an intraday execution. This approach has proven successful in the past. The Asian Development Bank (ADB) (EUR 1bn, 3 years, WNG), which was priced at MS - 2bp unchanged from the marketing, and the EUR 250m increase in BNG Bank's September 2038 went smoothly on Tuesday. The state of Baden-Württemberg completed the range of transactions on the same day with a EUR 250m 5-year FRN. In the middle of the week, the State of North Rhine- Westphalia (EUR 1bn, 30 years, WNG) and Sächsische Aufbaubank (EUR 250m, 7 years, WNG) were also active in the primary market on Wednesday. While the NRW issue was 3.5 times oversubscribed, the Aufbaubank's order book was ultimately below target. The success of NRW shows that high coupon products are in high demand. Outlook: The next EU syndicated issue is scheduled for next week. Other states are also likely to sound out an is- sue. Covered Bonds Compared to the previous week, there has been more issuance and the momentum is remarkable. There are currently no new issue premiums to be paid. However, average oversubscriptions are ex- tremely high. The Korean KHFC issue (EUR 500m, WNG), mandated the previous week, was very successfully com- pleted on Monday with a bookbuilding of over EUR 1.5bn. Also at the beginning of the week, Caffil's social covered bond (EUR 500m, WNG) crossed the finish line with a bookbuilding of EUR 2.9bn. The same was true of the San- tander UK issue (EUR 1.5bn, 5 years). In the end, the order book exceeded EUR 5bn. Overall, there was very strong demand for covered bonds from issuers outside the eurozone, which allowed tight pricing. Eika Boligkreditt (EUR 500m, 5 years, WNG) also took advantage of the favourable market conditions on Tuesday, with the order book oversubscribed 6.8 times. At MS +28bp, the final spread was 9bp tighter than the fixed rate. On Wednesday, VUB Banka (EUR 500m, 7 years, WNG) and DKB (EUR 500m, 12 years, Social, WNG) successfully completed two more issues with bid-to-cover ratios of 5 and 2 respectively. Spreads tightened by 15bp and 6bp respectively compared to guidance. In the case of DKB, it is worth noting that there was hardly any premium to be paid for the long ma- turity compared with 10-year maturities. Today, Sparkasse Dortmund with the first sub-benchmark (EUR 250m, 7 years, WNG), BPER Banca (EUR 500m, 7 years short), Stadshypothek (EUR 750m, 5 years) and Caisse de Re- financement de l'Habitat SA (CRH) (EUR 1.75bn, 7 years) successfully completed this week's offering. Secondary market prices continue to be strongly influenced by monetary policy. Demand for non-core covered bonds remains strong and the general trend towards tighter spreads for peripheral bonds continues. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,625% ESM Aaa /AAA/AAA 2,000bn 18.09.2029 ms +6 bps 11.03.2024 10,500bn ms + 8 area 2,625% Niedersachsen - /-/AAA 1,000bn 18.03.2032 ms +14 bps 11.03.2024 1,100bn ms + 14 area 3,400% Junta de Andalucía Baa2 /BBB+/- 0,750bn 30.04.2034 ms +27 bps  11.03.2024 2,400bn SPGB + 31bps 3,450% Ile de France Mobilites Aa3 /-/A+ 1,000bn 25.06.2049 FRTR +34 Bp  11.03.2024 9,500bn FRTR +38 area 3,000% Auckland Council Aa2 /AA/- 0,600bn 18.03.2034 ms +50 bps  11.03.2024 0,800bn ms + 50 area 6m€ + 0 Bp Baden-Württemberg Aaa /AA+/- 0,250bn 19.03.2029 6m€ + 0 Bp 12.03.2024 not disclosed 6m€ +0 2,800% Asian Development Bank Aaa /AAA/AAA 1,000bn 19.03.2027 ms -2 bps 12.03.2024 1,300bn ms - 2 area 3,500% BNG Aaa /AAA/AAA 0,500bn  27.09.2038 ms +52 bps 12.03.2024 0,660bn ms + 53 area 2,750% Sächsische Aufbaubank - Förderbank - /-/- 0,250bn 20.03.2031 ms +18 bps 13.03.2024 0,160bn ms + 18 area 3,000% NRW Aa1 /AA/AAA 1,000bn 20.03.2054 ms +74 bps 13.03.2024 3,300bn ms + 76 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 11 March 2024 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 March 2024 3 of 8 Outlook: Strong issuance is expected to continue, although we are not aware of any new mandates to date. Senior Unsecured The market environment remains very supportive and spreads have continued to tighten signifi- cantly in recent days. Credit curves have also flattened further in the current risk-on mode. Spreads tightened across all regions, with German bonds outperforming and making up for some of the underperformance of previous weeks. Good results from Deutsche Pfandbriefbank and LBBW should have contributed to the positive sentiment. The primary market has been subdued so far this week despite the favourable environment. Market activity is cur- rently focused more on the covered segment. The Fed meeting next week is also having a dampening effect. Since Monday we have only seen three transactions, all in non-preferred format. As expected, the transactions were very well received by the market, with spreads tightening significantly during the bookbuilding and further good per- formance in the subsequent secondary trading. Finland's Nordea Bank was active with a EUR 1bn 10-year bench- mark. The issue spread tightened by 30bp to ms +105bp at the close of the book and demand was very solid at EUR 2.6bn. Italy's Mediobanca launched a EUR 500m long 5-year issue at ms +130bp, which also attracted over EUR 2bn of demand. The maturity spectrum was rounded off by a EUR 750m 3-year issue from Virgin Money UK, which attracted an impressive EUR 8bn orderbook and was tightened by 50bp to ms +120bp during the bookbuild- ing. Outlook: Next week's FED meeting may again dampen primary market activity in the unsecured segment. Thereaf- ter, the number of transactions is likely to pick up noticeably given the high volume of maturities this year, before the Easter holiday brings a dip in activity. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,000% CaFFiL Aaa /AA+/AAA 0,500bn 19.03.2036 ms +45 bps  11.03.2024 2,800bn ms + 53 area 3,000% Santander UK plc Aaa /AAA/AAA 1,500bn 12.03.2029 ms +40 bps 11.03.2024 4,900bn ms + 47 area 3,124% Korea Housing Finance Corporation Aaa /AAA/- 0,500bn 18.03.2029 ms +48 bps  11.03.2024 2,800bn ms + 60 area 2,875% EIKA Boligkreditt AS Aaa /-/- 0,500bn 19.03.2029 ms +28 bps 12.03.2024 3,400bn ms + 37 area 2,875% Deutsche Kreditbank AG Aaa /-/- 0,500bn 21.03.2036 ms +36 bps  13.03.2024 1,000bn ms + 42 area 3,250% Vseobecna Uverova Banka Aa1 /-/- 0,500bn 20.03.2031 ms +70 bps 13.03.2024 2,500bn ms + 85 area 3,250% BPER Banca S.p.A. Aa3 /-/- 0,500bn 22.01.2031 ms +62 bps 14.03.2024 4,400bn ms 75 area 3,000% Sparkasse Dortmund - /-/AAA 0,250bn 21.03.2031 ms +45 bps 14.03.2024 0,650bn ms +52 area 2,875% Stadshypotek AB Aaa /-/- 0,750bn 21.03.2029 ms +26 bps 14.03.2024 1,950bn ms +32 area 2,875% Caisse de Refinancement de l’Habitat Aaa /-/AAA 1,750bn 25.03.2031 ms +33 bps 14.03.2024 3,700bn ms +42 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 11 March 2024 „Credit sentiment remains strong! The markets are not letting anything spoil their mood at the moment, so much so that all economic data (US non-farm payrolls, US CPI) with potential headwinds for spreads are be- ing completely ignored and equity indices have continued to climb to new highs. Volatility on the interest rate side remains high, reflecting the level of nervousness. Central banks have been sounding mostly dovish lately, which means that the first rate cut is expected in the summer - usually in June - and will further fuel the rally that has been going on for weeks. The iTraxx indices are at contract lows on the eve of the series changeover and are also trading strongly supported by positive market sentiment. Investor flows have been below average despite the strong spread movement, as real money has been very cautious in light of the ECB meeting, Powell's Congressional testimony and the US jobs data." Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 March 2024 4 of 8 Chart of the Week The Korean covered bond market is very small, accounting for less than 1% of the global EUR vol- ume outstanding (2022). How- ever, activity is growing. Shinhan Bank, for example, expanded the issuer base with its debut EUR issue on 22 January 2024. Korea Housing Finance (KHFC) contin- ues to dominate the market with a market share of 72% of out- standing covered bonds and was back on the primary market this week. KEB Hana and Kookmin Bank together account for around a quarter of covered bonds outstanding. As Shinhan Bank has launched a covered bond programme with a volume of up to USD 5bn, we expect the bank to gradually increase its previously small market share of 5% following its successful debut in the EUR benchmark format. The Korean programmes are characterised by very low average weighted non-indexed loan-to-value ratios of between 40% (Shinhan) and 57% (Kookmin). The nominal excess cover ratios are very ade- quate, ranging from around 28% in the lowest case to 278% (as of 31 January 2024) in the highest case. More information on APAC covered bonds is available in our publication: APAC Covered Bonds: "Popular securi- ties, limited supply. Short news 3/13 Bank climate group to report capital markets emissions: A U.N.-backed banking climate coali- tion on Wednesday released updated guidance for members requiring them to disclose more about how they plan to cut carbon emissions, including from their capital markets activities. The Net-Zero Banking Alli- ance, whose members oversee $74 trillion in capital, said the guidelines will also require data disclosure on transi- tion planning and climate-related advocacy by the banks, notes Reuters. 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 11 March 2024 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,625% Nordea Bank Abp A3 /A/AA- 1,000bn 15.03.2034 ms +105 bps 11.03.2024 2,600bn ms + 135 area 3,875% Mediobanca SpA Baa3 /BBB-/BBB- 0,500bn 04.07.2029 ms +130 bps 12.03.2024 2,100bn ms + 160/165 area 4,000% Virgin Money UK Baa1 /BBB-/BBB+ 0,750bn 18.03.2027 ms +120 bps 13.03.2024 8,000bn ms + 170 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 11 March 2024 KHFC sets standards Market share based on outstanding covered bonds as of 12.03.2024, in % Sources: Bloomberg, Helaba Research & Advisory KEB Hana 10% Kookmin Bank 13% KHFC\* all programms 72% Shinhan Bank 5% Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 March 2024 5 of 8 3/13 Fitch Ratings: Portuguese Covered Bonds benefit from CVB Directive: Fitch Ratings has upgraded Portu- guese covered bonds because of their enhanced liquidity protection following their conversion to the Obrigacoes Cobertas (ObC) framework that implements the EU Covered Bonds Directive in Portugal. This, coupled with the sovereign upgrade to ‘A-‘ and the upgrades of most issuers, supported higher covered bonds ratings in Portugal in 2023, ranging from ‘AA-‘ to ‘AAA’. 3/13 Energy Performance Building Directive: On Tuesday, the Parliament adopted plans already agreed with the Council to help reduce energy consumption and greenhouse gas emissions from buildings. The directive still needs to be formally approved by the Council of Ministers before it can come into force. The requirements, which still need to be transposed into national law, include that all new buildings should be zero-emission by 2030. For new buildings occupied or owned by public authorities, this should apply from 2028. For residential buildings, Member States must take appropriate measures to reduce average primary energy used by at least 16% by 2030 and by at least 20-22% by 2035. In addition, Member States must renovate 16% of the non-residential buildings with the worst energy performance by 2030 and 26% by 2033 and ensure that they meet minimum energy perfor- mance requirements. Where technically and economically feasible, Member States must progressively install solar panels in public and non-residential buildings, depending on their size, and in all new residential buildings by 2030. 3/11 ECB Governing Council leaning towards keeping reserve requirement at 1%: According to a Bloomberg report, the Governing Council of the ECB is apparently leaning towards not changing the amount of the minimum reserve that banks deposit with it without interest for the time being. The report cites insiders with knowledge of the matter. This would mean that a potential hit to the currently buoyant interest income of euro banks would be off the table for the time being. 3/11 French banks hopeful of lending income recovery after 2023 slump according to S&P Global Market Intel- ligence: According to S&P Global Market Intelligence, net interest income (NII) headwinds that prevented BNP Paribas, Crédit Agricole and Société Générale from profiting from higher rates are expected to ease. "For 2024, we expect revenues to increase by more than 5%, largely thanks to the strong rebound in NII in France", said SocGen CFO Claire Dumas. 3/11 Capital market union - Eurogroup president confident of CMU agreement: Eurogroup President Paschal Donohoe said he’s sure European finance chiefs will reach an agreement on a roadmap to take the bloc toward a capital markets union (CMU). “I’m very confident today that we will get a plan agreed,” he told Bloomberg on Mon- day. There are repeated calls for a CMU, particularly to finance the climate transition. 3/8 ECB paper on public guarantees and evidence from the COVID-19 crisis: A new ECB paper shows that public guaranteed loans (PGL) increase credit availability improving real effects, but private banks’ incentives imply that weaker banks shift riskier corporate loans to taxpayers. It exploits credit register data during the COVID-19 shock in Spain, and a stylized model guides the empirics. 3/8 BIS revises assessment framework for global systemically important banks: The Basel Committee on Bank- ing Supervision of the Bank for International Settlements (BIS) has issued a public consultation on potential measures to address "window-dressing" behaviour by some banks in the context of the framework for global sys- temically important banks (G-SIB). Such regulatory arbitrage behaviour seeks to temporarily reduce banks' per- ceived systemic footprint around the reference dates used for the reporting and public disclosure of the G-SIB scores. Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 March 2024 6 of 8 \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 182 2,25% 8,22% iBoxx € Cov. Germany 29,0 -1,1 0,3 iTraxx Senior Financial 58,4 -4,0 -9,8 10Yr-Yield 2,36 0,02 0,01 iBoxx € Cov. Bonds 36,2 -1,3 0,0 iBoxx € Supranational 32,8 -0,9 2,8 Swap 10J 2,62 0,00 -0,07 iBoxx € Banks PS 71,5 -10,3 -12,6 iBoxx € Agencies 17,2 -0,7 2,0 iBoxx € Germany -14,29 2,44 9,97 iBoxx Banks NPS 89,2 -14,0 -17,0 iBoxx € Sub-Sov. Germany 24,1 -0,9 2,1 iBoxx € EU 40,37 -0,99 3,35 iBoxx Banks Subordinated 148,7 -18,6 -23,1 iBoxx € Sub-Sovereign 40,5 -1,0 2,8 Leisure tip for the weekend: El Dorado the western town, Templin (Brandenburg) Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Sources: www.stadtlandtour.de/www.eldorado-templin.de Just outside Berlin lies a veritable Eldorado for families with children: The Western town of Templin lies in the middle of the forest on the shores of Lake Röddelin, about 70 kilometres from Berlin. Little Indians, cowboys and squaws can live out their dreams in this El Dorado of saloons, ranches and Indian villages. Stunt shows simulate bandit attacks, Indian raids and bounty hunts. If you feel like it, you can paddle across “Lake Silver” or try your hand at the Morse transmitter. The highlight for the little ones will be the gold pond, where you can sift real gold nuggets. Find out more: El Dorado Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 March 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 03/23 05/23 07/23 09/23 11/23 01/24 03/24 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 03/23 06/23 09/23 12/23 03/24 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 -10 0 10 20 30 40 50 -10 0 10 20 30 40 50 03/23 05/23 07/23 09/23 11/23 01/24 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 March 2024 8 of 8 News from Research & Advisory  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: Investors can choose from a wide range. Covered bonds: Non-core Euroland of particular interest. Senior Unsecured: Subdued activity in a very favourable market environment. Chart of the week: KHFC sets standards.