---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-45
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 29 June 2023 © Helaba | Research & Advisory | 29 June 2023 1 of 7 Research & Advisory Weekly Market Update Primary market environment: The air seems to have been let out of the primary markets. Ac- cording to ECB chief Lagarde, the central bank is not considering pausing to raise interest rates as there is insufficient evidence of falling core inflation. Fed chief Powell believes that US inter- est rates are restrictive, but perhaps not restrictive enough. The positive signals from our Risk Trend Indicator in recent weeks are gradually diminishing. This suggests that risk aversion is on the rise. Primary market barometer In the SSA segment, only 4 new bonds have been issued since Mon- day for a volume of EUR 3bn (just un- der 42% of the previous week). Many issuers are already well advanced in their refinancing plans for this year. This is probably one of the reasons for this development. Primary market activity was manage- able with only 2 transactions this week. Overall, there is a sense that the air is running out. With issuance so far this year some 14% ahead of last year's record, a slower pace seems understandable. The primary market for senior unse- cured bank bonds continues to be re- ceptive, even if investors remain com- paratively selective in terms of credit quality and spread premium. Despite the onset of summer vacations in Eu- rope, we expect continued issuance activity next week given a constructive market environment. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Is the mood changing again? 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 0,00 -0,19 0,15 0,19 1,28 -0,90 European Union -0,09 -0,30 -0,17 -0,13 1,81 1,45 Germany Covered 0,03 0,03 0,22 0,12 0,94 1,10 EU Covered 0,01 0,01 0,10 0,06 0,82 1,06 Banks senior preferred -0,01 0,00 0,03 0,00 -0,51 1,90 Banks senior bail-in (SNP) -0,01 0,05 -0,09 -0,08 -0,61 1,75 Banks subordinated -0,01 0,09 0,03 -0,03 -0,64 2,22 Supranational -0,04 -0,17 -0,03 -0,06 1,68 1,34 Agencies 0,01 -0,08 0,12 -0,01 1,21 -0,09 Sub-Sovereigns Germany 0,02 0,03 0,09 0,00 0,74 -0,40 Sub-Sovereigns -0,02 -0,09 -0,05 -0,16 0,99 0,28 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 29 June 2023 2 of 7 SSAs The SSA segment needed a bit of a boost this week. On Monday the primary market remained quiet, but on Tuesday the first transaction by the State of Hesse took place. The EUR 1 bn Green Bond was finally issued at MS-1 bp, 3 bp tighter than at the start of the marketing. The issue was 2 times oversubscribed. Also on Tuesday, the Official Credit Institute (ICO) was active with a EUR 500m social bond. The 5-year issue was priced at SPGB +15bps, 5bps tighter than the marketing. On Wednesday, the autonomous region of Castilla y Leon followed with a EUR 500m 10-year short sustainable bond. The final pricing was SPGB +31bps, no spread tightening was achieved. In addition to the transactions, the EU was in the spotlight with the announcement of the planned issuance volume. This is to be significantly reduced for the second half of the year, with only 4 syndicated bonds to be issued. Outlook: Several states are likely to be in the pipeline. In addition, the EFSF has already issued requests for pro- posals (RfPs) for an upcoming transaction. Covered Bonds The covered primary market started the new week with issues from the south. Intesa Sanpaolo started the week with a 5-year covered issue. The EUR 1.25bn issue was ultimately priced at MS+ 50, 3bps tighter than the target. The order book saw peak demand of more than EUR 2bn. The latest deals brings the total issuance by Italian issuers since 7 June to EUR 6 bn. Portugal's Banco BPI followed on Tuesday, for the first time in more than 4 years with a 5-year benchmark. With a book of around EUR 700m, the final spread was tight- ened by 2bp to MS+58bp over the benchmark. In the secondary market, pressure is now coming not only from trading accounts but also increasingly from some investors who are reducing their positions. It is notable that the focus is on the core sector (including Germany). This may be driven by structural or strategic considerations. Adding to the market's psychology is the fact that, according to the media, there is renewed talk of accelerated QT (quantitative tightening). This is despite the fact that it is often argued that the side effects of such measures will not have a negative impact on the market due to the small size of the covered part of the programmes. Our trading takes a more nuanced view due to the current fragile long position and the aforementioned market psychology, especially as the recent new issues are not showing any performance despite increasingly higher new issue premiums. In this respect, we expect the current trend to continue. Outlook: The various projects are still in the pipeline. However, it remains to be seen when they will actually be issued. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,875% Hessen - /AA+/- 1,000bn 04.07.2033 ms -1 bps  27.06.2023 2,400bn ms + 2 area 3,250% ICO Baa1 /A/A- 0,500bn 31.10.2028 SPGB + 15  27.06.2023 2,000bn SPGB + 20 area 3,500% Junta de Castilla y Leon Baa1 /-/- 0,500bn 30.04.2033 SPGB + 31  28.06.2023 0,500bn SPGB + 31 area 0,750% KFW Aaa /AAA/AAA 1,000bn 15.01.2029 ms -7 bps 08.01.2019 8,300bn ms -6 Bp area Sources: Bloomberg, Helaba DCM € SSAs issues week of 26 June 2023 "On Tuesday the EU announced a significant reduction in its planned issuance for the rest of the year. The secondary market reacted impressively with a sharp tightening versus swaps. What does this have to do with covered bonds? Surely it shows what factors are influencing the market mechanics - mainly the supply side. Of course, a concerted statement of a general shortage of supply was not to be expected, but a reduction in issuance would certainly "take pressure off the boiler" Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 29 June 2023 3 of 7 Senior Unsecured The primary market for senior unsecured bank bonds continues to be receptive. Since the beginning of the week, five benchmark bonds with a total volume of EUR 2.7 billion have been successfully placed. Two transactions had a volume of EUR 750 million (Royal Bank of Canada and Bank of Ireland Group) - the deal size thus increased again noticeably compared to the previous week, when many second-tier names had shown up. In particular, good credit ratings are currently being readily taken up by investors, who are rewarded by good secondary market performance based on attractive new issue premiums. Royal Bank of Canada and Bank of Ireland Group both brought non-preferred paper to market, with maturities of 5 and 8 years respectively. They achieved oversubscription rates of 1.7x and 2.0x, respectively. Santander Con- sumer Bank even achieved an oversubscription rate of 2.8x with its EUR 500m transaction in preferred rank at a relatively high spread premium. Only Caixa Central de Credito Agricola Mutuo offered too low a premium for its EUR 200 m transaction to fill the book more than 1.1x, measured by creditworthiness and name recognition. Outlook: The summer vacations have already begun in parts of Germany and in Scandinavia, and all over Europe activity is now becoming increasingly quiet. However, high maturities and strict bail-in capital requirements will continue to drive primary market activity for senior unsecured bank bonds this year. In a constructive market envi- ronment, issuance activity should therefore continue in the coming week. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,625% Intesa Sanpaolo S.p.A. // 1,250bn 30.06.2028 ms +50 bps 26.06.2023 2,000bn ms + 53 area 3,625% Banco BPI S.A. Aa2 /-/- 0,500bn 04.07.2028 ms +58 bps 27.06.2023 0,700bn ms + 60 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 26 June 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,500% Santander Consumer Bank AG A2 /A/A 0,500bn 30.06.2026 ms +100 bps 26.06.2023 1,400bn ms + 135 area 8,375% Caixa Central de Credito Agricola Mutuo Ba2 /-/- 0,200bn 04.07.2027 ms +0 bps  27.06.2023 0,220bn 8.375-8.500% na BPCE SA A1 /A/AA- 0,500bn 10.07.2028 ms +0 bps 29.06.2023 0,000bn ms + 120 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 26 June 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,125% Royal Bank of Canada A1 /A/AA- 0,750bn 05.07.2028 ms +105 bps 26.06.2023 1,240bn ms + 125 area 5,000% Bank of Ireland Group plc A3 /BBB-/BBB 0,750bn 04.07.2031 ms + 205  27.06.2023 1,500bn ms + 225 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 26 June 2023 “Summertime! The first German state has started its summer vacations, and the Scandinavian countries are also in the month-long summer break. It is now noticeable on the markets that from now on rather sluggish weeks are in store. The stock markets are consolidating at a high level after the last negative surprises from the PMI and Ifo index. Interest rates are showing considerable volatility and the Bund yield curve is becoming more and more inverse, i.e. 2-10 years currently at over 75 bps inversity. The iTraxx indices are trending mar- ginally north in this weaker environment. Recent new issues are all trading 2-6 bps tighter and are also the most traded bonds on both the platform and street. Flows are currently well balanced, but below average.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 29 June 2023 4 of 7 Chart of the Week Spreads of Financials bonds have recently widened noticea- bly for long maturities, while they have remained compara- tively stable for short maturi- ties. According to our observa- tions, the main drivers for this are likely to be the deteriorating economic outlook among mar- ket participants and the in- creased uncertainty in the longer term. Some bonds with longer maturities now offer rela- tively attractive risk premiums again. Short news 6/28 TLTRO repayment: ECB banking supervision chief Andrea Enria told before a hearing at the Eu- ropean Parliament's Economic and Monetary Affairs Committee, referring to an ECB review: "The re- sults show that all the banks we examined have a strategy in place to replace their TLTRO funding, although some of them may face challenges in the current fragile market environment." (Finanznachrichten) As of Wednesday, more than EUR500 billion in TLTRO funding had been repaid to the ECB by Europe's banks. (see our Market Weekly, 6/22/2023) 6/28 Australian and New Zealand cover pools are unlikely to be affected by rising interest rates, according to Fitch. This is due to contractual provisions such as a maximum indexed loan-to-value (LTV) ratio of 80% and the exclu- sion of defaulted loans and late payment arrears from the asset coverage test. The low indexed LTV of the cover pools also provides a buffer against the decline in property prices. 6/28 Fitch on savings bank covered bond programmes: According to Fitch, the utilised overcollateralisation (OC) is significantly higher than the break-even OC levels calculated for the six Fitch-rated Savings Bank Pfandbrief pro- grammes, providing significant buffers against a potential deterioration in asset quality. 6/27 Covered Bond Label: The Covered Bond Label Foundation (CBLF) announced that two more issuers, Barclays Bank UK PLC and Bendigo and Adelaide Bank Limited, have joined the label. This brings the total to 130 issuers and 171 cover pools in 24 countries. 6/27 Provisional agreement reached on the implementation of Basel III reforms: The EU is about to boost the resilience of banks operating in the Union and strengthen their supervision and risk management by finalising the implementation of the globally agreed Basel III regulatory reforms. Negotiators from the Council presidency and the European Parliament reached a provisional agreement on amendments to the Capital Requirements Regula- tion and the Capital Requirements Directive. Negotiators have agreed on how to implement the so-called 'output floor' and to make improvements to the areas of credit risk, market risk, and operational risk. 6/26 Standards for climate risk reporting are taking shape: The global standard setter ISSB has taken the first major step toward creating a uniform language for reporting on the impact of climate-related risks and opportuni- ties for companies. ISSB Vice President Sue Lloyd emphasizes that the new ISSB standards were developed in Long maturities offer higher spreads again ASW spread in bps Quellen: Refinitiv, Helaba Research & Advisory 0 10 20 30 40 50 60 70 80 90 0 10 20 30 40 50 60 70 80 90 22-07 22-08 22-09 22-10 22-11 22-12 23-01 23-02 23-03 23-04 23-05 23-06 iBoxx EUR financials AA 7-10 Y ASW iBoxx EUR financials AA 1-3 Y ASW difference between AA 7- 10 Y and AA 1-3 Y ASW Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 29 June 2023 5 of 7 close consultation with the European standard setter to avoid unnecessary duplication of effort for companies. Börsen-Zeitung 6/22 BdB report on the role of banks in Germany: Banks make a significant contribution to economic growth and employment. According to the Association of German Banks (BdB), 73 billion euros is the gross value created by the financial sector in Germany with more than 540,000 people employed by the German banking industry. 6/22: EU banks expand risk scenarios with climate change: European banks are building out their risk models to better prepare for the fallout from climate change, as reported by Bloomberg. New areas of concern include busi- ness liquidity as well as interest-rate risk in the banking book. \* 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 152 -1,55% 4,57% iBoxx € Cov. Germany 7,1 -0,6 0,6 iTraxx Senior Financial 89,9 -0,4 -3,0 10Yr-Yield 2,31 -0,1 0,0 iBoxx € Cov. Bonds 20,7 -0,6 0,6 iBoxx € Supranational 16,4 -1,98 -0,86 Swap 10J 2,95 -0,1 0,0 iBoxx € Banks PS 81,2 -0,4 -0,3 iBoxx € Agencies -2,2 -1,22 1,05 iBoxx € Germany -50,22 -3,5 2,2 iBoxx Banks NPS 115,5 1,0 -3,7 iBoxx € Sub-Sov. Germany 10,3 0,07 0,84 iBoxx € EU 20,42 -3,8 -2,6 iBoxx Banks Subordinated 201,7 3,9 1,5 iBoxx € Sub-Sovereign 24,2 -1,10 -1,05 Leisure tip for the weekend: Swimming in the Twistsee, Bad Arlosen (North Hesse) Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.ffh.de/freizeit/100-dinge.html Bright blue skies, a white sandy beach and a huge lake in front of you.... Daughter and mum work on their tan while dad and son let off steam with a game of beach volleyball. Or the whole family can try their hand at stand- up paddling. There really is a lot to do around Lake Twistesee. The highlight is the water-skiing facility. Even beginners can fly over the water at 30 km/h. Extreme adrenaline! More information: Swimming in the Twistsee Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 29 June 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 06/22 08/22 10/22 12/22 02/23 04/23 06/23 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 06/22 08/22 10/22 12/22 02/23 04/23 06/23 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 06/22 08/22 10/22 12/22 02/23 04/23 06/23 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 29 June 2023 7 of 7 News from Research & Advisory  Video: Sustainable Finance – ICMA & Helaba Talk 2023  Focus on Credits: Primary market update EUR benchmark bank bonds Q1 2023"  Focus on Credits: EUR Corporate bonds: Primary market Q1 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: EU announces reduction in planned issuance volume. Covered bonds: Air running out. Senior unsecured: Primary market still receptive. Chart of the week: Long maturities offer higher spreads again