---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-10
type: dd_research
language: en
updated: 2026-09-28
keywords: Renten, Weekly Market Update_englisch
---

# SSA and Financials: Weekly Market Update

Focus on: SSAs & Financials 9 March 2023 © Helaba | Research & Advisory | 9 March 2023 1 of 8 Research & Advisory Weekly Market Update Primary market environment: Given a constructive environment, primary markets - both in terms of number of transactions and issuance volume - are currently humming. Fed Chairman Powell has underpinned the need for further rate hikes. Due to inflationary pressures, the cen- tral bank is prepared to accelerate the pace of rate hikes if necessary. The trend towards greater risk aversion on the part of investors, which has been observed for some time, is also reflected in the increasing red colouring of our risk trend indicator. Primary market barometer Issuers are making good use of the current constructive market environ- ment, so that the momentum in the SSA segment is continuing. The offer is diverse. From the EU to agencies as well as sustainability and green bonds, there was something for eve- ryone this week. This week, the issue volume ex- ceeded EUR 10 billion for the fifth time this year. The Canadian TD Bank, which was responsible for a dual tranche of EUR 5 billion, played a ma- jor role in this. At EUR 11 billion, the primary market was extremely active. At the same time, the market environment contin- ues to be characterised by uncertainty and increased volatility. Based on the latest development of the iTraxx Sen- ior Financial, a spread widening seems likely in the short term. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Sentiment is steadily deteriorating Relative\* ASW spread change \* ASW levels standardized and 2T-smoothed Sources: Refinitiv, Helaba Research & Advisory IB OXX EUR O 1 day 1 week 4 week 13 weeks 52 weeks 104 weeks Germany -0,06 0,30 0,28 0,99 2,14 -0,40 European Union 0,02 0,11 0,03 0,55 2,72 2,67 Germany Covered -0,01 0,17 0,16 0,21 0,82 1,07 EU Covered 0,00 0,06 0,04 0,10 0,68 0,80 Banks senior preferred -0,02 0,18 0,41 -0,01 0,13 1,31 Banks senior bail-in (SNP) 0,01 0,10 0,56 -0,19 0,17 1,33 Banks subordinated -0,01 0,02 0,45 -0,08 -0,05 1,30 Supranational 0,02 0,11 0,04 0,51 2,29 2,15 Agencies -0,01 0,26 0,13 0,37 1,47 0,30 Sub-Sovereigns Germany 0,01 0,11 -0,06 -0,12 -0,32 -0,43 Sub-Sovereigns 0,02 0,20 0,08 0,18 0,83 0,72 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 March 2023 2 of 8 SSAs As expected, activity in the SSA primary market continued this week. The Investitionsbank des Landes Brandenburg kicked off with a 7-year benchmark issue (EUR 500m, WNG), successfully taking advantage of the current constructive market environment. Brisk demand made it possible to narrow the initial spread requirement to 2 bps. The new issue premium of 1 bps was low. As usual, a lot of attention was also paid to the EU. The book of the EUR 6 billion, 11-year bond of EUR 54.5 billion was oversubscribed about 9 times. The spread was narrowed by 2 bps to MS+13 bps compared to the marketing. The Andalucìa region successfully placed a 10-year sustainability bond (EUR 600 million) at SPGB + 29 bps. Swedish Kommunin-vest issued a green 4-year benchmark (EUR 500 m), WNG. KfW, another German issuer, also entered the primary market stage. The EUR 5 bil- lion bond with a 7-year maturity was easily sold with an oversubscribed order book of around 5.2 times. The final spread was 2 bps below the initial target at MS-8. BayernLabo's 12-year sub-benchmark issue also went through well, although it was not possible to narrow the initial spread compared to the target. Outlook: More projects are already in the pipeline, so issuance activity will continue in the coming week. However, activity is likely to be limited to the first part of the week in view of the ECB interest rate decision due on Thursday. Covered Bonds Compared to the previous week, primary market activity in the covered bond segment was more dy- namic right from the start. With CFF (8.5 years, EUR 1.75 billion) and Toronto Dominion Bank (TD Bank), two issuers were already active on Monday. TD Bank set a clear exclamation mark with a dual tranche. The 3-year issue was the largest ever publicly syndicated covered bond tranche on the European debt capital markets. The volume of this bond amounted to € 3.5 billion and recorded a strong order book of € 4.6 billion. The 7-year paper (€ 1.5 billion) was also successfully placed. After France and Germany, which together account for almost half of the covered issue volume since the beginning of the year, Canada now ranks third with € 7.75 billion. Another highlight was Landsbankinn's first euro-denominated issue, a EUR 300 million (no-grow) sub-benchmark. This was also the first Icelandic new issue to carry a premium covered bond label. Other issues such as those by RBI, Alands-banken, Mortgage Society of Finland, Nationwide Building Society or the 5-year covered by Westpac Securities went through relatively smoothly in a constructive market environment. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,250% Investitionsbank des Landes Brandenburg - /-/AAA 0,500bn 13.03.2030 ms +2 bps 06.03.2023 1,000bn ms + 3 area 3,250% EU Aaa /AA+/AAA 6,000bn 04.07.2034 ms +13 bps 07.03.2023 54,500bn ms + 15 area 3,950% Junta de Andalucía Baa2 /BBB+/- 0,600bn 30.04.2033 SPGB +29 bp  07.03.2023 1,000bn SPGB +32 area 3,250% Bayerische Landesbodenkreditanstalt Aaa /-/- 0,250bn 15.03.2035 ms +11 bps 08.03.2023 0,215bn ms + 11 (+/-1) WPIR 3,375% Kommuninvest I Sverige AB Aaa /AAA/- 0,500bn 15.03.2027 ms -8 bps  08.03.2023 4,000bn ms - 4 area 3,125% KFW Aaa /AAA/AAA 5,000bn 07.06.2030 ms -8 bps 08.03.2023 25,800bn ms - 6 area 3,750% Communauté française de Belgique A2 /-/- 0,700bn 22.06.2033 BGB +43 bp 09.03.2023 1,300bn BGB +45 area 3,500% Rheinland-Pfalz /AAA/- 0,750bn 16.06.2025 n/a 09.03.2023 n/a n/a Sources: Bloomberg, Helaba DCM € SSAs issues week of 6 March 2023 "The dual tranche issued at the beginning of the week by Toronto Dominion (3y MS+22/7y MS+40) with a total volume of EUR 5 billion clearly shows that Canadian bonds are currently very attractive in the covered bond universe. Above all, the follow-up performance of 3-4 bps. (3y) and 2 bps. (7y) shows that investors are pri- marily and secondarily positive. Overall, the picture remains constructive, supported by private demand away from continued central bank buying."" Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 March 2023 3 of 8 Outlook: In the short maturity segment, the flirtation of 2y swap rates with the 4% mark is fuelling the willingness to buy. There is currently no fundamental disruptive fire in sight, so the trend towards tighter swap valuations should continue. Moreover, covereds remain cheap compared to other asset classes (credits/SSAs/LSAs). Chart of the week According to Statistics Canada, the total value of build- ing permits in Canada fell 4% to $9.8 billion in January 2023 from the previous month, following an upwardly revised 7.7% decline the month before. The residential construction sector contracted 6.6% to $6.1 billion in January as permits for multi-family homes fell 8.3%. The decline was most pronounced in British Columbia (-27.9 %), while single-family building projects fell by 4.4 %. Quebec (-13.5 %) contributed most to the latter decline. Meanwhile, the total value of non-residential building permits rose slightly by 0.7% to $3.7 billion in January, with gains in the commercial component (5.4%) offsetting losses in the industrial (-3.9%) and institutional (-5.9%) components. Currently, Canadian covered bonds have an average overcollateralisation of around 58% on the basis of 8 selected programmes, so that there is currently nothing standing in the way of new covered bond issuance. However, in view of the development described above, less cover assets could be available in the future and thus have an impact on new issuance activities. According to rating agency Fitch, Canada's covered bond ratings proved resilient in 2022 despite falling housing prices, inflation and rising interest rates. All eight programmes rated by Fitch have maintained their original as- signed ratings and continue to have a stable rating outlook. In addition, the agency stressed that the programmes consist of prime loans underwritten in accordance with B-20 guidelines. It said the overall characteristics of the collateral pool were very good, including that the loans had a current loan-to-value (LTV) ratio of less than 50% and delinquencies for all Canadian mortgages were at record lows (less than 0.20%). Senior Unsecured The senior unsecured segment continued to be influenced by inflation data and the associated inter- est rate fears, combined with high volatility. In his speech, Fed Chairman Powell underlined the ne- cessity of further interest rate hikes. Due to inflationary pressures, the central bank was prepared to accelerate the pace of interest rate hikes if necessary. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,375% CFF Aaa /AAA/- 1,750bn 16.09.2031 ms +26 bps 06.03.2023 2,500bn ms + 31 area 3,879% Toronto-Dominion Bank Aaa /-/- 3,500bn 13.03.2026 ms +22 bps 06.03.2023 4,600bn ms + 25 area 3,715% Toronto-Dominion Bank Aaa /-/- 1,500bn 13.03.2030 ms +40 bps 06.03.2023 2,200bn ms + 43 area 3,875% Bank of Åland Plc - /AAA/- 0,250bn 16.03.2026 ms +22 bps 07.03.2023 0,410bn ms+ 23 area 3,875% Raiffeisen Bank International AG Aa1 /-/- 0,500bn 16.03.2026 ms +34 bps 07.03.2023 1,400bn ms + 40 area 3,625% Nationwide Building Society - /AAA/AAA 1,000bn 15.03.2028 ms +24 bps 08.03.2023 2,100bn ms + 28 area 3,625% M ortgage Society of Finland - /AAA/- 0,300bn 15.09.2028 ms +32 bps 08.03.2023 0,300bn ms + 32 area 3,750% Westpac Securities NZ Limited, Ldn Branch Aaa /-/AAA 0,750bn 20.04.2028 ms +44 bps 08.03.2023 2,250bn ms + 50 area 3,500% CaFFiL Aaa /AA+/- 0,750bn 16.03.2032 ms +27 bps 09.03.2023 0,985bn ms + 30 area 4,250% Landsbankinn hf - /A/- 0,300bn 16.03.2028 ms +90 bps 09.03.2023 0,325bn ms + 90 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 6 March 2023 Building permits in Canada decline Bn. CAD Sources: Statistics Canada, Trading Economics, Helaba Research & Advisory 2 3 4 5 6 7 8 9 10 Jul 22 Aug 22 Sep 22 Okt 22 Nov 22 Dez 22 Jan 23 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 March 2023 4 of 8 On the secondary market, Italian preferred securities were able to escape quite well with an average widening of 1- 2 bps. On the other hand, the risk premiums of Scandinavian and French financials widened strongly by 5-7 bps. In the case of non-preferred bonds (non-prefs), it was mainly bonds of German banks that fared worse with a spread increase of 8 bps. The iTraxx Senior Financial has also been susceptible to fluctuations recently. After an interim high of around 90 points, it initially fell to around 83. In the meantime, the index is trading again at around 87. The recent higher in- terim low compared to the beginning of February increases the probability of a continuation of the spread widen- ing trend in the short term. On the primary market, the activity in preferred issues picked up compared to the previous week. Issuers who had recently been conspicuous by their absence on the primary market also made an appearance. Volksbank Wien, for example, ended its two-year absence from the market by issuing a green senior bond (EUR 500 million). Medio- banca was able to narrow the initial spread by 23 bps to MS+137 bps on the back of a EUR 1.3 billion book for its EUR 750 million 5NC4 SR Pref, although the picture clouded again somewhat in secondary trading (+3 bps). DNB Bank placed a 6NC5 SR pref bond in green. The green label certainly played a role in the spread development (MS+65 after originally MS+90). Hamburg Commercial Bank successfully placed a 2-year SR pref bond at MS+100, 20 bps below the marketing spread. Non prefs were successfully placed by HSBC as a dual tranche (EUR 1.5 & 1.25 bn) with maturities until 2028 and 2032 at 2.1 and 2.4 times oversubscription rates, respectively. Much attention was paid to the 5NC4 Women-led Social Bond issued by NatWest. The issuer intends to use the net proceeds of the bonds to finance and/or re- finance loans to businesses that are classified as women-led. The book was 2.8 times oversubscribed, with the fi- nal spread fixed at MS+120 after MS+145 bps in marketing. Outlook: Although the bulk of the issuance this week went through relatively well, the impression is that the air is getting a little thinner and investor uncertainty is also increasing. Fastmoney accounts are still trying their luck with new issues. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,750% M ediobanca SpA Baa1 /BBB/BBB 0,750bn 14.03.2028 ms +137 bps 07.03.2023 1,300bn ms + 160 area 4,000% DNB Bank ASA Aa2 /AA-/- 1,000bn 14.03.2029 ms +65 bps  07.03.2023 1,600bn ms + 90 area 4,875% Hamburg Commercial Bank AG A3 /-/- 0,750bn 17.03.2025 ms +100 bps 08.03.2023 1,500bn ms + 125 area 4,750% Volksbank Wien AG A3 /-/- 0,500bn 15.03.2027 ms +135 bps 08.03.2023 0,650bn ms + 145 area 4,500% ASB Bank Limited A1 /AA-/- 0,500bn 16.03.2027 ms +110 bps 08.03.2023 1,400bn ms + 125/130 area 3m€+63 Bp Intesa Sanpaolo S.p.A. Baa1 /BBB/BBB 1,500bn 17.03.2025 ms +63 bps 09.03.2023 2,300bn 8500,000% Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 6 March 2023 „Last week's new issues continue to perform well. Morgan Stanley's 6nc5 is now trading 12bps tighter to the reoffer. Credit Agricole's DualTranche also managed to hold its own at 3bps. (Fix 7y) and 2.5 bps. (FRN 2y) on the secondary market. This was joined last Friday by the new BFCM 4 ⅛ 03/13/29, which trades unchanged to 1bps further to the reoffer." Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 March 2023 5 of 8 Short news 8/3 Moodys: RMBS & Covered Bonds – Australia Poor housing affordability will remain an ongo- ing risk for home loan borrowers: Housing affordability for new Australian homebuyers, which worsened over 2022, will remain poor over 2023. Poor housing affordability increases the risk of delinquencies and defaults for new mortgages, which is credit negative for residential mortgage-backed securities (RMBS) and covered bonds backed by such loans. 3/7 Fitch Ratings: Climate-Policy Risk for Residential Homes: Discussion Paper - As climate policies in the housing sector become more vigorous, the agency expects climate protection and adaptation measures to target emission levels and the overall physical properties of individual buildings (e.g. insulation, heating, lighting). Fitch believes that energy efficiency is becoming an increasingly important consideration for borrowers in many coun- tries when purchasing a home, both from an environmental perspective and in terms of the cost of living. There- fore, the agency is reviewing the relevance of energy performance certificate (EPC) data for calibrating ge-stresst sales assumptions of properties that serve as collateral for loans in RMBS transactions or in cover pools. Fitch be- lieves that such adjustment would reflect the increasing impact of energy efficiency on residential property prices in different markets. 3/2 Fitch Ratings: Covered Bonds Protected Against Worsening Mortgage Outlook. Covered bonds will not di- rectly suffer from projected asset performance deterioration in 2023, Fitch Ratings says. This is due to the dual recourse nature of the instrument, to the issuing bank and to the cover pool, their protection mechanism, comfort- able buffers against issuer downgrade and ample over-collateralisation (OC).Fitch expects mortgage loans perfor- mance to deteriorate in 2023. This will not affect covered bond payments while the issuing bank is solvent, as it must meet its liabilities regardless of the cover assets’ actual cash flows. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,752% HSBC Holdings PLC A3 /A-/A+ 1,500bn 10.03.2028 ms +120 bps 06.03.2023 3,100bn ms + 145 area 4,787% HSBC Holdings PLC A3 /A-/A+ 1,250bn 10.03.2032 ms +150 bps 06.03.2023 3,000bn ms + 175 area 4,699% NatWest Group Plc A3 /BBB/A 0,500bn 14.03.2028 ms +120 bps  07.03.2023 1,400bn ms + 145 area 4,625% UBS Group AG - /A-/A+ 1,500bn 17.03.2028 ms +115 bps 09.03.2023 3,600 Mrd. ms + 140 area 4,750% UBS Group AG - /A-/A+ 1,250bn 17.03.2032 ms +160 bps 09.03.2023 3,400bn ms + 180 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 6 March 2023 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 March 2023 6 of 8 \* 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 168 0,40% 3,26% iBoxx € Cov. Germany 7,5 0,6 1,7 iTraxx Senior Financial 85,2 -3,1 0,6 10Yr-Yield 2,6 -0,1 0,3 iBoxx € Cov. Bonds 20,2 0,6 1,2 iBoxx € Supranational 19,2 0,70 1,07 Swap 10J 3,2 -0,1 0,3 iBoxx € Banks PS 71,8 3,0 8,2 iBoxx € Agencies 3,1 2,05 1,42 iBoxx € Germany -41,1 3,0 2,5 iBoxx Banks NPS 107,4 2,7 16,2 iBoxx € Sub-Sov. Germany 10,3 1,17 -0,17 iBoxx € EU 25,5 0,7 1,0 iBoxx Banks Subordinated 176,9 0,2 21,7 iBoxx € Sub-Sovereign 27,7 1,78 1,48 Leisure tip for the weekend: Railroad Museum in Bochum Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: eisenbahnmuseum-bochum.de The small exhibition "Railways in Bochum" shows excerpts from over 160 years of Bochum's railroad history. Mining town, car town, university town - but railroad town? Although the railroad has shaped the structures of the city for over 160 years, Bochum is not considered a railroad city. In addition, on weekends there is the possibility to take a ride in one of the historic trains on a trip through the Ruhr area. The wagons were built be- tween 1920 and 1960 and let you experience what it meant to travel by train 70 years ago. What would you like? Fine fabric upholstery, squeaky imitation leather or orthopedic wooden benches – they offer something for everyone! Further information: Railroad Museum in Bochum Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 March 2023 7 of 8 Chartbook SSAs, Covered Bonds, Senior Unsecured Senior 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 Mrz.22 Mai.22 Jul.22 Sep.22 Nov.22 Jan.23 Mrz.23 Banks Subordinated Banks Senior Bail-in Banks Senior Preferred Covered 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 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 Mrz.22 Mai.22 Jul.22 Sep.22 Nov.22 Jan.23 Mrz.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 Mrz. 22 Mai. 22 Jul. 22 Sep. 22 Nov. 22 Jan. 23 Mrz. 23 Sub-Sovereigns Agencies Supranational Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 9 March 2023 8 of 8 News from Research & Advisory  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  Credits: Corporate Schuldschein: Primary market 2022  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  FOCUS ON: CREDITS – BANK AND COVERED BOND PROFILES GERMANY  FOCUS ON: SSAS – GERMAN AGENCIES  FOCUS ON: COVERED BONDS – EUROPEAN COVERED BONDS: CENTRAL WEBSITE PROVIDES CLARITIY 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: Diverse primary market offering. Covereds: TD Bank volume outstanding. Senior Unsecured: Market environment marked by increased volatility. Chart of the week: Canadian building permits decline.