---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-48
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 9 June 2023 © Helaba | Research & Advisory | 9 June 2023 1 of 7 Research & Advisory Weekly Market Update Primary market environment: There continues to be huge new issuance activity in the primary markets. This is putting increasing pressure on the secondary markets. Recent sentiment indi- cators in the euro area have been largely disappointing. According to ECB Governing Council member Knot, inflation in the euro area could remain high for a long time. Our Risk Trend Indicator currently shows a mixed picture. While sentiment continues to improve in the very short term, there is no clear trend in the medium term. Primary market barometer The majority of the large SSA names enjoyed good demand. Accordingly, pre-market activity in the segment is likely to continue, although there is a trend towards increased price sensi- tivity and some issuers are already "ahead" of their pro-rata funding plan. The primary market continues to op- erate at high speed. Once again, there was good demand for 10-year covered issues, provided the right deal structure was used. Unicredit SpA and Credit Agricole Italia were the first Italian issuers in more than a year. The primary market for senior unse- cured bank bonds remains extremely active. Recently, however, issuers have been making concessions re- garding new issue premiums. Open market windows will be further tapped before the summer break and the next quarterly reporting season. . Covered Bonds Senior Unsecured SSAs Risk trend indicator: Inconsistent picture 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 -0,01 0,35 0,40 0,80 1,01 -0,86 European Union -0,01 0,04 0,04 -0,10 1,99 1,77 Germany Covered -0,03 0,13 0,02 0,12 1,02 1,08 EU Covered -0,01 0,04 -0,01 0,05 0,86 0,99 Banks senior preferred -0,04 0,10 -0,01 -0,50 0,76 2,06 Banks senior bail-in (SNP) -0,04 -0,01 -0,19 -0,86 0,51 1,84 Banks subordinated -0,02 -0,03 -0,38 -0,50 0,34 2,12 Supranational -0,01 0,04 0,00 -0,11 1,94 1,52 Agencies 0,02 0,22 0,11 0,21 1,08 0,04 Sub-Sovereigns Germany -0,01 -0,01 -0,08 -0,10 0,57 -0,49 Sub-Sovereigns 0,00 0,01 -0,06 -0,18 1,15 0,36 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 June 2023 2 of 7 SSAs Once again, the SSA segment saw strong issuance this (shortened) week, led by the EU and KfW (EUR 5 bn tap). As usual, the EU was heavily oversubscribed, with the EUR 3 bn tap maturing in 2029 10.4 times oversubscribed and the EUR 4 bn tap maturing in 2042 11.2 times oversubscribed. Ile-de-France Mobilitès had a full order book and was ultimately 9 times oversubscribed for its EUR 500m green bond maturing in 2028. However, not every new issue attracts sufficient investor interest, as recently demonstrated by the EUR 500m is- sue of the Land of Berlin. Overall, there are now clear signs of a gradual saturation of the primary markets. Outlook: We are gradually entering the round before the summer break. Saxony-Anhalt has completed a social bond roadshow and is expected to come to market next week. The state of Baden-Württemberg is informing inves- tors about a green benchmark. Overall, many issuers in the SSA segment are already well "ahead of schedule", i.e. ahead of the pro-rata funding budget. The state of North Rhine-Westphalia, for example, has almost reached its funding target for the current year. Covered Bonds Last week, 3 new issues were placed and this week, despite a holiday on Thursday, a total of 8. Com- merzbank started with a dual tranche of 2.5 and 10 years. Both were able to tighten 2bp from guid- ance. However, demand was somewhat lower than we had expected. A high number of senior transactions at the same time may have contributed to this. In the end, the issuer had to accept a new issue premium of 6-7bps. Once again, 10-year maturities have shown that they can attract buyers if the deal is properly structured, which means that covered issuance in this area could continue to gain momentum. On Tuesday, Unicredit was the first Italian issuer to return to the primary market following the recent completion of the implementation of the new legal framework for the issuance of Italian OBGs (Obbligazioni Bancarie Gar- antite). The issuer's first issue after an absence of around 7 years was also the first covered issue from Italy for more than a year and attracted considerable attention. The covered dual tranche, with a 3-year and a 7-year soft bullet format, generated total issue proceeds of EUR 3 billion and was able to narrow the initial spread on both tranches by a remarkable 8 basis points due to strong investor demand. Unicredit's strong performance is likely to have paved the way for other Italian issuers to follow suit. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,625% EU Aaa /AA/AAA 5,000bn  04.12.2029 ms -21 bps 11.10.2022 16,500bn ms - 20 area 3,375% EU Aaa /AA/AAA 4,000bn  04.11.2042 ms +52 bps 14.02.2023 51,000bn ms + 54 area 2,875% KFW Aaa /AAA/AAA 5,000bn 29.05.2026 ms -28 bps 06.06.2023 14,500bn ms - 27 area 3,700% Ile-de-France Mobilités Aa3 /-/A+ 0,500bn 14.06.2038 FRTR + 45 bp  07.06.2023 4,500bn FRTR +48 area 3,000% Berlin Aa1 /-/AAA 0,500bn  04.05.2028 ms -9 bps 07.06.2023 not disclosed ms - 9 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 5 June 2023 "In the secondary market, the days of the "free lunch" are finally over! With the primary focus increasingly on longer maturities and generally generous NIPs, it was initially hoped that further momentum would be gener- ated thereafter. Unfortunately, the opposite has been the case. At best, spreads are treading water at ele- vated levels. What is more, the transactions are far from complete; there is still plenty of free float that is diffi- cult to sell. Admittedly, a certain degree of saturation in the market speaks in favour of this performance (too much material in too short a time). Moreover, the gradual withdrawal of the official purchase programmes (announced by the ECB) is not only a material problem, but also a subconscious psychological one for the market (especially the market makers)". Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 June 2023 3 of 7 Natixis' sub-benchmark Pfandbrief issue, on the other hand, struggled, possibly due to pricing that was too expen- sive in the eyes of the market. The arrangers at Natixis Pfandbriefbank were unable to narrow the initial spread target of MS+3 bp or to publish an order book for the 2.5-year EUR 250 million (no grow) mortgage Pfandbrief is- sue. Wednesday saw another OBG issuer, Credit Agricole Italia. The EUR 1bn 6-year covered issue was priced at MS+59bp versus MS+63bp in the market. Both Eika Boligkreditt (EUR 500 mn, WNG, 10 years) and Münchener Hypo (EUR 500 mn, WNG, 7 years, green) saw their final spreads pricing 2 bpsinside guidance. Although all of Wednesday's new issues were successful, order book dynamics and oversubscription were rather disappointing. Outlook: After a quiet end to the week due to the holiday, primary market activity is likely to continue next week, especially with a number of projects already in the pipeline. Meanwhile, the upcoming central bank meetings are increasingly coming into focus. Senior Unsecured The primary market for senior unsecured bank bonds continued to be very active. At the start of the week alone, the order books were opened for six senior unsecured transactions in EUR benchmark format, with a combined volume of EUR 5.35 billion. In the course of the week so far, the issuance volume totaled EUR 7.95 billion, despite the public holiday on Thursday. This compares with cumulative investor interest of EUR 14.9 billion. Of the 11 issues, six were on preferred rank. As many as four transactions were green bonds. However, the high order books were partly achieved by noticeable concessions in new issue premiums. At the same time, the secondary market is coming under increasing pressure. Outlook: High maturities and strict bail-in capital requirements are driving primary market activity in senior unse- cured bank bonds. Friendly market windows are actively exploited by issuers, especially as the summer vacations begin in the Scandinavian countries at the end of June. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,375% Commerzbank AG Aaa /-/- 0,750bn 12.12.2025 ms -2 bps 05.06.2023 0,935bn ms flat area 3,125% Commerzbank AG Aaa /-/- 0,750bn 13.06.2033 ms +20 bps 05.06.2023 0,900bn ms + 22 area 3,375% NATIXIS Pfandbriefbank AG Aaa /-/- 0,250bn 15.12.2025 ms +3 bps 06.06.2023 not disclosed ms + 3 area 3,375% UniCredit S.p.A. Aa3 /-/- 1,750bn 31.01.2027 ms +27 bps 06.06.2023 2,700bn ms + 35 area 3,500% UniCredit S.p.A. Aa3 /-/- 1,250bn 31.07.2030 ms +57 bps 06.06.2023 2,100bn ms + 65 area 3,250% EIKA Boligkreditt AS Aaa /-/- 0,500bn 14.06.2033 ms +35 bps 07.06.2023 0,800bn ms + 37 area 3,500% Credit Agricole Italia Aa3 /-/- 1,000bn 15.01.2030 ms +59 bps 07.06.2023 1,300bn ms + 62 area 3,000% Münchener Hypothekenbank eG Aaa /-/- 0,500bn 14.08.2030 ms +8 bps  07.06.2023 0,620bn ms + 10 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 5 June 2023 “The good sentiment opened the window for new issues. French issuers in particular took advantage of the opportunity. A rarity and surprise was the first green issue from the US banking sector, from Bank of America. Secondary performance was positive on average. Outperformer with a tightening of 11 bps to the ReOffer is the 34 non-preferred fixed to float bond of BPCE. Investor flows over the past 7 days continue to be well mixed.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 June 2023 4 of 7 Chart of the Week The widening of the spread dif- ferential between Senior Pre- ferred (SP) and Covered Bonds, which started in February, has continued recently. In our view, this is due to the huge number of SP primary market transac- tions. (The difference in issu- ance volumes between the two asset classes can also be seen graphically in the slope of the issuance curves in the bottom two charts on the left-hand side of page 6). On the basis of trend-following models, we be- lieve that this trend is likely to continue. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,250% Banco Santander, S.A. A2 /A+/A 1,000bn 12.06.2030 ms +125 bps 05.06.2023 1,700bn ms + 150 area 3,875% Belfius Bank SA/NV A1 /A/- 0,750bn 12.06.2028 ms +90 bps  05.06.2023 1,500bn ms + 110/115 area 3m€ +45 Bp SEB Aa3 /A+/AA 1,250bn 13.06.2025 ms +45 bps 05.06.2023 1,800bn 3m€ + 60/65 area 3m€ +55 Bp National Bank of Canada A3 /BBB+/A+ 0,500bn 13.06.2025 ms +55 bps 06.06.2023 0,575bn 3m€ +65 area 4,000% OP Corporate Bank plc Aa3 /AA-/- 0,650bn 13.06.2028 ms +93 bps 06.06.2023 0,900bn ms + 110 area 5,375% Cassa Centrale Raiffeisen Baa2 /-/- 0,200bn 16.06.2028 ms +240 bps 07.06.2023 0,260bn ms + 250 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 5 June 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,750% BPCE SA Baa1 /BBB+/A+ 0,750bn 14.06.2034 ms +183 bps 05.06.2023 2,400bn ms + 210 area 4,492% Sumitomo Mitsui Financial Group A1 /A-/- 0,600bn 12.06.2030 ms +150 bps 05.06.2023 1,300bn ms + 170 area 4,134% Bank of America Corporation A2 /A-/AA- 1,000bn 12.06.2028 ms +105 bps  05.06.2023 2,500bn ms + 140 area 4,750% Kutxabank, S.A. Baa2 /-/BBB+ 0,500bn 15.06.2027 ms +155 bps  06.06.2023 0,650bn ms + 170 area 6,000% Banco BPM S.p.A. Ba2 /-/BB+ 0,750bn 14.06.2028 ms +280 bps  07.06.2023 1,300bn ms + 300 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 5 June 2023 Spread differential between Covered and Senior Preferred wide ASW Sources: Refinitiv, Helaba Research & Advisory 0 20 40 60 80 100 120 0 20 40 60 80 100 120 Banks Senior Preferred EUR Covered Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 June 2023 5 of 7 Short news 6/5 Central banks successfully test 'quantum resistant' communications channel: A secure com- munication channel to protect financial data against future threats from quantum computers has been successfully established by the BIS Innovation Hub Eurosystem Centre, in concert with Banque de France and Deutsche Bundesbank. The BIS says the experiment acts as a blueprint for the financial system to build a complete chain of trust for central bank applications in the post-quantum world, Finextra reports. 6/1 Responsible Banking - What does PRB mean for banks: The UNEP FI's Principles for Responsible Banking (PRB) aim to mobilize private finance to address the nature, climate, and pollution crises. Mete Feridun, Chair of the EMU Centre for Financial Regulation and Risk explores the requirements for signatory banks in a blog pub- lished by Finextra. \* 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 3,46% 2,93% iBoxx € Cov. Germany 7,3 0,2 -0,4 iTraxx Senior Financial 87,9 -2,2 -16,1 10Yr-Yield 2,4 0,2 0,2 iBoxx € Cov. Bonds 20,7 0,0 -0,7 iBoxx € Supranational 18,3 -0,57 -0,48 Swap 10J 3,0 0,1 0,1 iBoxx € Banks PS 85,5 0,1 -0,2 iBoxx € Agencies 0,0 1,67 1,05 iBoxx € Germany -46,9 4,5 6,0 iBoxx Banks NPS 119,9 -2,1 -5,4 iBoxx € Sub-Sov. Germany 9,4 -0,62 -1,59 iBoxx € EU 24,3 -0,7 -0,1 iBoxx Banks Subordinated 199,5 -3,3 -17,2 iBoxx € Sub-Sovereign 25,8 -0,41 -1,00 Leisure tip for the weekend: Treetop path Bad Camberg Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.baumwipfelweg-bad-camberg.de A 600 metre walk through the crowns of the Hintertaunus in Bad Camberg. The path leads over ramps and stairs to a height of 28 metres with wonder- ful views. More information: Treetop walk Bad Camberg Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 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 Jun.22 Aug.22 Okt.22 Dez.22 Feb.23 Apr.23 Jun.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 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 Jun.22 Aug.22 Okt.22 Dez.22 Feb.23 Apr.23 Jun.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 Jun. 22 Aug. 22 Okt. 22 Dez. 22 Feb. 23 Apr. 23 Jun. 23 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 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: European banks: Déjà vu in a crisis environment?  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: Primary Market update EUR Benchmark Bank Bonds Q4 2022  Focus on: Singaporean Covered Bonds - Top credit quality made in Asia  Markets and Trends 2023  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

SSA – Many issuers are already well ahead of their pro-rata funding plan. Covered: The days of the "free lunch" in the secondary market are finally over. Senior Unsecured: Primary market remains very buoyant with attractive new issue premiums. Chart of the week: Spread widening between Covered and Senior Preferred