---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-41
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 17 August 2023 © Helaba | Research & Advisory | 17 August 2023 1 of 7 Research & Advisory Weekly Market Update Primary market environment: Primary markets are gradually picking up after the summer break. According to the FOMC minutes, the majority of Fed members see upside risks to infla- tion. The tightening of the balance sheet could continue if rate cuts become necessary. The Nor- wegian central bank raised its key rate by 0.25% to 4%. The current sentiment is clearly souring, as our Risk Trend Indicator shows with a clear red tinge. In our view, there is no short-term relief in sight. Primary market barometer In the SSA segment, the summer break appears to be continuing, alt- hough the state of Schleswig-Hol- stein did issue last week. There was no primary market activity this week. The picture should change signifi- cantly in the coming weeks. Berlin Hyp "traditionally" ended the summer break. Its issue - a social benchmark Pfandbrief - met with very good demand, as did DZ Hyp's subse- quent placement in the green format. In our view, the success of both trans- actions indicates that the market is receptive. The summer break is also slowly com- ing to an end in this segment. This week, SR-Bank was the only EUR is- suer to enter the stage with a senior non-preferred benchmark in green format. We expect primary activity to pick up significantly over the next two weeks. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Rising risk aversion Relative\* ASW spread change \* ASW levels standardized and 2T-smoothed Sources: Refinitiv, Helaba Research & Advisory IBOXX EURO 1 day 1 week 4 week 13 weeks 52 weeks 104 weeks Germany 0,02 0,22 0,09 0,31 1,99 -0,13 European Union 0,02 0,06 0,04 -0,28 1,69 1,62 Germany Covered 0,02 0,15 0,03 0,36 0,90 1,38 EU Covered 0,01 0,08 0,00 0,15 0,83 1,34 Banks senior preferred 0,08 0,22 0,18 -0,07 0,58 1,93 Banks senior bail-in (SNP) 0,08 0,20 0,15 -0,38 0,15 1,59 Banks subordinated 0,04 0,10 0,00 -0,34 0,24 2,13 Supranational 0,02 0,06 -0,04 -0,17 1,50 1,45 Agencies 0,04 0,22 0,09 0,20 1,78 0,46 Sub-Sovereigns Germany 0,01 0,02 -0,08 0,01 0,54 -0,74 Sub-Sovereigns 0,03 0,06 -0,08 -0,17 0,87 0,12 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 17 August 2023 2 of 7 SSAs For the federal state of Schleswig-Holstein, a summer lull of more than two weeks without primary market transactions came to a brief end on 9 August. The Landeschatzanweisung (EUR 750 million) with a 10-year maturity met demand in the amount of EUR 890 million. The final spread tightened by 1 bp to the final MS flat versus the marketing. However, the SSA segment remained quiet this week. Outlook: The quiet period in the primary market should end soon. The EFSF has already sent out RfPs. In addition, we believe that other issuers will try to take advantage of the constructive market environment. Covered Bonds After the summer break - the last transaction was priced on 18 July - Berlin Hyp opened the primary market on Wednesday with a 5-year social covered bond (EUR 500 million, WNG). The "undivided" attention of investors was rewarded with corresponding order volumes. The issue was 3.6 times oversubscribed and the final spread tightened by 4 bps to MS+6 bps compared to the marketing, implying a new issue premium of around 3 bps. On Thursday, DZ Hyp unsurprisingly followed suit, another German Pfandbrief issuer that regularly appears on the primary market. The 4.5 year green benchmark (EUR 500m, WNG) saw very strong demand, as evi- denced by the 4.8x oversubscription of the order book and the tightening of the spread from 5bp to the final MS +4bp. Outlook: The primary market is gradually picking up again. Overall, covered bonds will play an important role in banks' funding plans, especially as they seek to optimise their funding costs. 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 € SSAs issues week of 14 August 2023 Kupon Emittent Rating (M/S&P/F) Volumen in € Tap Fälligkeit Begebungs- Spread zu Swaps ESG Begebung Orderbuch erste Spread- indikation 3,375% Berlin Hyp AG Aaa /-/- 0,500 Mrd. 23.08.2028 ms +6 Bp  16.08.2023 1,600 Mrd. ms +10 area 3,375% DZ HYP AG Aaa /AAA/- 0,500 Mrd. 31.01.2028 ms +4 Bp  17.08.2023 2,400 Mrd. ms + 9 area Quellen: Bloomberg, Helaba DCM € Covered Bond Emissionen in der Woche vom 14. August 2023 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 17 August 2023 3 of 7 Chart of the Week The summer break in the primary market is usually ended by German issuers. In particular, Berlin Hyp (BHH) is in the spotlight. It is the undis- puted leader and has been giv- ing the starting signal for the 'reopening' without interruption since 2019. DZ Hyp and MüHyp share second place, at least if the recent past is taken into ac- count. Commerzbank has the same number of issues, but this goes back to 2016 (a double) and 2017. Norwegian issuers belong to the extended group of "early starters", while issues from France often take place in September, probably due to the later end of the summer holidays. Senior Unsecured The Italian government has softened the bank tax issue by setting a cap. Meanwhile, concerns about the state of the Chinese economy are weighing on markets. US interest rate hike fantasies have re- cently resurfaced in the face of mixed price data. The combination of economic news and illiquid "summer dol- drums" trading is causing volatility in the market. For example, the iTraxx Senior Financial traded below 80bp last week and is currently above 83bp. Among the underperformers have been French preferred bonds and peripheral debt, especially Italian, with spreads widening by more than 10bp in some cases. Scandinavian bonds, on the other hand, performed solidly, widening by 1-3 bps. The picture was similar for non-preferred bonds. SR Bank's green senior non-preferred issue today (EUR 500m, WNG) was successful. The spread tightened by 15bps to a final MS+150bps compared to the marketing. Outlook: High maturities and stringent bail-in capital requirements remain the main drivers of primary market activity this year. 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 14 August 2023 “Investor activity is currently below average. Some asset managers have made small portfolio adjustments while real money accounts are sitting on the sidelines. Trading activity is expected to pick up over the next 2 weeks.” Comment from the Helaba trading floor German Pfandbrief issuers are the first to return from summer break Top 3 new issues after the summer break by issuer and year \* Includes WL Bank issues in August 2016 and 2017 Sources: EBA: Helaba Research & Advisory 0 1 2 3 4 5 6 2023 2022 2021 2020 2019 2018 2017 2016 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 17 August 2023 4 of 7 Short news 8/14 Bank levy 2023: German institutions pay €2.63bn to Single Resolution Fund. As the national resolution authority for the Single Resolution Fund of the Banking Union (SRF), BaFin has collected the bank levy of EUR 2.63 billion from German institutions for the contribution year 2023. 8/9 Fich: Canadian Covered Bond Ratings not Impacted by Canadian Wildfires Fitch’s ratings on the Canadian covered bonds are not impacted by the Canadian wildfires. This is due to the fact that the wildfires have not been located in heavily populated areas and have not caused a great deal of property damage to date. Furthermore, seven out of the nine rated programs benefit from the Canadian bail-regimes in place. A unique feature of OSFI and AMF’s bail-in regimes is they do not carve out an exemption in a case where the covered bonds would be un- dercollateralized. 8/4 Global Ratings discontinues ESG scores: The agency announced that it will no longer include ESG Credit Indi- cators, which summarise the relevance of ESG factors to rating analysis, in reports on rated companies. Since Sep- tember 2021, the agency has presented these alphanumeric ESG credit indicators on a scale of 1 (positive) to 5 (strongly negative). At the time, S&P said that the indicators would not have an impact on credit ratings, but were intended to complement the qualitative findings on the impact of ESG factors on creditworthiness in rating re- ports. Now, the agency says it has determined that the qualitative descriptive paragraphs are the most effective way to provide detail and transparency on ESG credit factors for credit ratings, and that these paragraphs will re- main an essential part of the reports. We are not aware of any official justification for this move. According to some market reports, the agency's withdrawal from ESG ratings may reflect concerns about ESG transparency and the impact of recent increased anti-ESG sentiment in the US. S&P's separate products related to ESG ratings are not expected to be affected by this move. End of July: Credit Agricole Financement de l'habitat SFH, the Group's third covered bond entity was created on 14 December 2022 for liquidity purposes (p. 20) and received its licence at the end of July. It is thus the Group's third covered bond entity, alongside CA Home Loan SFH and CA Public Sector SCF. According to Moody's (rating: Aaa), the cover pool (mortgage loans) has a volume of approximately EUR 115 billion. The covered bonds have a total volume of EUR 82 billion. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication t.b.d. SpareBank 1 SR-Bank Baa1 /-/- 0,500bn 24.08.2028 ms +150 bps  17.08.2023 0,825bn ms + 165-170 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 14 August 2023 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 17 August 2023 5 of 7 \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory, \* ASW-Spreads Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 157 -1,63% -2,13% iBoxx € Cov. Germany 9,5 1,4 0,2 iTraxx Senior Financial 83,9 1,4 4,6 10Yr-Yield 2,64 0,18 0,25 iBoxx € Cov. Bonds 22,6 1,5 0,0 iBoxx € Supranational 15,8 1,2 -0,1 Swap 10J 3,24 0,15 0,23 iBoxx € Banks PS 79,2 6,2 6,2 iBoxx € Agencies 0,9 2,5 1,4 iBoxx € Germany -45,77 2,74 0,99 iBoxx Banks NPS 107,9 7,3 7,4 iBoxx € Sub-Sov. Germany 9,7 0,8 -0,8 iBoxx € EU 19,83 1,31 0,85 iBoxx Banks Subordinated 188,8 5,6 3,0 iBoxx € Sub-Sovereign 23,5 1,3 -0,4 Leisure tip for the weekend: Xanten South and North Sea Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.reisereporter.de/ Mediterranean flair in North Rhine-Westphalia - that's what you get in Xan- ten on the Lower Rhine, where two large lakes were joined until 1994. The nearby leisure centre has become a mecca for water sports enthusiasts. The northern side of the lake is known as the North Xanten Lake and the southern side as the South Xanten Lake. There are two marinas in the dis- tricts of Wardt and Vyne. For holidaymakers, the small beach paradise at the FZX natural swimming pool will leave nothing to be desired. More information: Leisure centre Xanten Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 17 August 2023 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: Bloomberg, 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 2022 Senior Preferred 2022 Senior Non-preferred 0 50 100 150 200 250 300 0 50 100 150 200 250 300 08/22 10/22 12/22 02/23 04/23 06/23 08/23 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: 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 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2023 2022 2021 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 08/22 10/22 12/22 02/23 04/23 06/23 08/23 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: Bloomberg, 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 2021 2023 -25 -15 -5 5 15 25 35 -25 -15 -5 5 15 25 35 08/22 10/22 12/22 02/23 04/23 06/23 08/23 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 17 August 2023 7 of 7 News from Research & Advisory  Focus on Credits: Primary market update EUR benchmark bank bonds H1 2023  Focus on Credits: EUR Corporate bonds: Primary market Q2 2023  Video: Sustainable Finance – ICMA & Helaba Talk 2023  Focus on Credits: Social and sustainability bonds: ICMA Principles - the freestyle element makes all the difference  European banks: An optimistic outlook for 2023  Focus on: Corporate Schuldschein: Burgeoning diversity creates new options for investors  FOCUS ON CREDITS - BASEL III AND THE EU COUNCIL'S POSITION ON THE LEGISLATIVE PACKAGE  FOCUS ON: SUSTAINABLE FINANCE - THE RENDEZVOUS CLAUSE Team of authors 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: Summer slump continues. Covered bonds: Berlin Hyp and DZ Hyp with successful re-openings. Senior unsecured: Significant primary market recovery foreseeable. Chart of the week: German Pfandbrief issuers first back from summer break