---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-17
type: dd_research
language: en
updated: 2026-09-28
keywords: Renten, Weekly Market Update_englisch
---

# SSA and Financials: Weekly Market Update

Focus on: SSA & Financials 19 January 2023 © Helaba | Research & Advisory | 19 January 2023 1 of 7 Research & Advisory Weekly Market Update Primary market environment: The flood of issuance in the primary markets continues una- bated, although there are signs of increasing differentiation among issuers. The Bank of Japan left its key interest rate and yield curve management policy unchanged. In the US, firms are pes- simistic about economic growth, according to the Fed. In the short term, the picture of our risk trend indicator has brightened somewhat. Especially for senior unsecured bank bonds, the market environment seems comparatively friendly. However, it is still too early to sound the all- clear.. Primary market barometer This week, 6 issuers from the SSA segment showed up. Medium maturi- ties, such as the 6 years chosen by Brandenburg, are solid. For longer maturities, the issuer name is of great importance. The flood of issues that has been tak- ing place since the beginning of the year continued on the primary mar- ket this week. The maturity band cho- sen by issuers continues to play an important role in the success of an is- sue. Smaller issuers are also finding it increasingly difficult to place new bonds. In this segment, banks have placed a record volume of issues since the be- ginning of the year, albeit with slight signs of fatigue recently. In the next few days, the big US banks will return after completing quarterly releases, in Europe however the blackout period will slowly begin. Covered Bonds Senior Unsecured SSA Risk trend indicator: Slight signs of relaxation 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 -0,07 0,14 0,41 1,53 0,41 -0,63 European Union 0,06 0,40 0,57 1,24 2,81 3,05 Germany Covered 0,04 0,27 0,21 0,90 1,35 0,69 EU Covered 0,02 0,11 0,12 0,46 0,82 0,63 Banks senior preferred -0,07 -0,09 0,34 -0,99 1,78 1,60 Banks senior bail-in (SNP) -0,08 -0,16 0,16 -1,15 1,74 1,66 Banks subordinated -0,05 -0,20 -0,03 -1,33 1,46 1,41 Supranational 0,05 0,39 0,55 1,42 2,36 2,33 Agencies -0,05 0,15 0,23 1,29 0,80 0,28 Sub-Sovereigns Germany 0,05 0,22 0,30 1,05 0,02 -0,36 Sub-Sovereigns 0,02 0,31 0,45 1,09 1,08 0,76 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 January 2023 2 of 7 SSA This week's issue volume totalled EUR 4.25 billion. The strong result of the previous week (15 trans- actions with a volume of €25.75 billion) could not be achieved. As in the other asset classes, the is- suer names and the selected maturities play a central role. In the case of "national champions" such as KfW (Tap), the issues crossed the finish line without any problems; WIBank was able to successfully place a 10-year bench- mark security (EUR 600 m, order book > EUR 3.2 bn) at MS+8, while Quebec with the same maturity had to accept MS+41. Medium maturities such as the 6 years chosen by Brandenburg are running very solidly. The trend towards widening ASW spreads continued recently. With the exception of the agencies, new trend-confirming multi-year highs were marked this week. Outlook: There are several projects in the pipeline. The EU has already sent out RfPs (Request for Proposals). A dual tranche is expected to be placed next week and possibly the long end will be tested. If the test is successful, this could encourage other issuers to make similar attempts. Issuers from the country segment will probably also show up. The AIIB (Asian Infrastructure Investment Bank) is going on a roadshow for the possible issue of a EUR debut sustainable development bond. Covered Bonds The "issuance train" continues to run at full steam. Since Monday, a relatively high number of new issues with a volume of EUR 5.8 billion have been placed. On the one hand, the very extensive matur- ities, especially in January, and the chance to profit from the ECB as a buyer play a significant role. On the other hand, the valuations are relatively attractive compared to other asset classes. In addition, bonds are now generat- ing the highest yields in more than a decade and are becoming more attractive compared to equities - especially if the economic environment continues to deteriorate. Yields on German Pfandbriefe currently average 2.81% for AAA ratings, 2.85% for AA+ and 3.18% for A+. The motto for this week's issues was: the shorter the maturity, the better. Thus, transactions with maturities of up to 3 years stood out in particular. Dekabank and Münchener Hypotheken-bank successfully took advantage of the current trend and benefited from the search for short-dated assets with narrow spreads. Conversely, there was less demand for maturities of 7 years and longer. For example, the spreads of NIBC and Bausparkasse Schwäbisch Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,000% Quebec Aa2 /AA-/AA- 2,250bn 24.01.2033 ms +41 bps 17.01.2023 3,100bn ms + 42 area 2,750% Nederlandse Watershapsbank Aaa /AAA/- 0,500bn 17.12.2029 ms +5 bps  17.01.2023 0,425bn ms + 5 area 0,125% KFW Aaa /AAA/AAA 1,000bn  09.01.2032 ms -15 bps 07.07.2022 1,100bn ms - 15 area 2,500% Brandenburg Aaa /-/- 0,500bn 25.01.2029 ms -5 bps 18.01.2023 0,900bn ms - 4 area 2,625% WIBank - /AA+/- 0,600bn 26.01.2033 ms +8 bps 19.01.2023 3,200bn ms + 11 area 2,500% Nordic Investment Bank Aaa /AAA/- 0,500bn 30.01.2030 ms -5 bps  19.01.2023 0,875bn ms - 3 area Sources: Bloomberg, Helaba DCM € SSA issues week of 16 January 2023 "In summary, it can be said: New week, old trading pattern! The primary market sets the price points for sec- ondary activity. Although there is a lack of significant central market activity, turnover is relatively high. How- ever, the overall widening of swap spreads increasingly raises the question of "higher for longer" or a buying opportunity after all. What is certain is that valuations look quite cheap relative to other asset classes." Comment from the Helaba trading floor Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 January 2023 3 of 7 Hall no longer tightened during the marketing process. Medium maturities function very solidly, as the three Aus- trian issuers of the week proved. Pfandbriefe from the neighbouring country thus already add up to a volume of EUR 5.15 billion. We assume that a substantial part of the issuance planned for 2023 has already been completed, especially since the demand for mortgage loans has also decreased significantly in Austria. Further information can be found in our Focus Austria - Economic Slippage. Apart from maturities, there is currently also a differentiation between issuers. Big names are preferred, which is probably also related to the credit lines available to them. The secondary market continues to be dominated by the primary market, especially since new issue premiums (NIPs) remain relatively high. At least there were some secondary follow-on purchases after the new placements. In addition, we believe that the spread levels that have now been reached should calm down somewhat, even though volatility is high. Outlook: In our view, primary market activity will continue dynamically in the coming weeks, especially as the ECB will remain active on the buy side until the end of February. Senior Unsecured In the senior unsecured segment, banks have placed a record volume of issues since the beginning of the year, although slight signs of fatigue have been observed in recent days: From Monday to Tuesday of this week, at least eight senior unsecured transactions in the EUR benchmark format came to the mar- ket, compared with more than 20 deals in the previous week. Issuers are taking advantage of the high risk appetite of investors as well as tighter spreads and are wasting no time in fulfilling their extensive refinancing plans (see our publication "Primary market update EUR benchmark bank bonds" of Jan. 5, 2023). This week again saw a number of successful transac- tions with both Senior Preferred and Non-preferred ranks. The dual tranche concept continues to be used, e.g. by BFCM as a senior non-preferred transac- tion with different maturities (5 and 10 years) and BPCE S.A. with a senior preferred tranche (5 years) and a tier 2 bond (12NC7). Depending on volume and spread, longer maturities can also be placed encour- agingly well. Outlook: While the major US banks have already pre- sented their Q4 2022 results, the reporting season in Europe gets going the week after next. The black-out period that begins here could therefore slow down is- suance somewhat. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,000% RLB Vorarlberg Aaa /-/- 0,300bn 25.01.2027 ms +23 bps 16.01.2023 0,710bn ms + 26 area 2,875% LBBW Aaa /-/- 1,000bn 23.03.2026 ms -5 bps 16.01.2023 3,400bn ms flat area 3,000% RLB Tirol AG Aaa /-/- 0,500bn 24.01.2028 ms +29 bps 17.01.2023 0,695bn ms + 32 area 2,875% Bausparkasse Schwäbisch Hall Aaa /-/- 0,500bn 24.06.2032 ms +17 bps 17.01.2023 0,580bn ms + 17 area 2,875% NIBC Bank N.V. - /AAA/- 0,500bn 24.01.2030 ms +28 bps 17.01.2023 0,765bn ms + 28 area 3,000% DekaBank Aaa /-/- 0,250bn 27.01.2025 ms -11 bps 17.01.2023 1,900bn ms -5 area 3,000% Caja Rural de Navarra Aa1 /-/- 0,500bn 26.04.2027 ms +36 bps  18.01.2023 1,400bn ms + 40 area 2,875% Oberösterreichische Landesbank AG (HYPO Oberösterreich) - /AA+/- 0,250bn 25.08.2027 ms +27 bps 18.01.2023 0,455bn ms + 30 area 2,750% Münchener Hypothekenbank eG Aaa /-/- 1,000bn 24.09.2025 ms -9 bps 18.01.2023 3,450bn ms - 3 area 2,750% OP Mortgage Bank Aaa /-/- 1,000bn 25.01.2030 ms +20 bps 18.01.2023 1,250bn ms + 21 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 16 January 2023 Inverse yield curve determines hedging strategies Redemption yield, % Sources: Refinitiv, Helaba Research & Advisory -2 -1 0 1 2 3 -2 -1 0 1 2 3 01/21 07/21 01/22 07/22 01/23 yield curve 10Y - 2Y BD benchmark 10Y government yield BD benchmark 2Y government yield Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 January 2023 4 of 7 Short news 1/16 EBA published annual quantitative monitoring report on minimum requirement for own funds and eligible liabilities: The European Banking Authority (EBA) published its annual quanti- tative Report on minimum requirement for own funds and eligible liabilities (MREL) with data as of December 2021. The Report shows progress in closing MREL shortfalls, albeit at a lower rate for smaller banks and concludes that the impact of MREL on banks’ profitability is manageable, although heterogeneous across types of banks and Member States. 1/13 ECB urges banks to fix risks in trades with hedge funds: The European Central Bank (ECB) has warned Eu- rope’s lenders they will face regulatory intervention unless they urgently fix “material shortcomings” in managing risks from trading counterparties such as hedge funds, family firms, and commodity traders, as reported by the Financial Times. 1/13 The liquidity coverage ratio of EU banks declined in the first half of 2022 but is still well above the mini- mum requirement: The European Banking Authority (EBA) published its Report on liquidity measures. The re- port found that the liquidity coverage ratio (LCR) declined to 166% in June 2022. EU banks hold materially lower liquidity buffers in foreign currencies, which requires enhanced monitoring by banks and supervisors. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,500% BPCE SA A1 /A/AA- 1,250bn 25.01.2028 ms +90 bps 16.01.2023 1,750bn ms + 110/115 area 3,750% SpareBank 1 SR-Bank A1 /-/- 1,000bn 23.11.2027 ms +110 bps  17.01.2023 1,380bn ms + 130/135 area 4,750% Raiffeisen Bank International AG A2 /-/- 1,000bn 26.01.2027 ms +195 bps 18.01.2023 2,800bn ms + 230 area 7,125% Eurobank S.A. Ba3 /B+/B+ 0,500bn 26.01.2029 ms +440 bps 19.01.2023 1,450bn . Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 16 January 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,625% AIB Group PLC A3 /BBB-/BBB 0,750bn 23.07.2029 ms +195 bps  16.01.2023 3,900bn ms + 225 area 3,875% BFCM A3 /A-/A+ 1,000bn 26.01.2028 ms +130 bps 17.01.2023 1,300bn ms + 150 area 4,000% BFCM A3 /A-/A+ 0,500bn 26.01.2033 ms +150 bps 17.01.2023 0,900bn ms + 170 area 3,750% National Bank of Canada A3 /BBB+/A+ 0,500bn 25.01.2028 ms +125 bps 18.01.2023 1,000bn ms + 145 area 5,750% Crelan SA/NV Baa3 /-/- 0,500bn 26.01.2028 ms +315 bps 19.01.2023 0,950bn ms + 325 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 16 January 2023 Issuer Date SKANDINAVISKA ENSKILDA BAN-A 01/26 SPAREBANKEN M ORE-CAP CERT 01/26 Sources: Bloomberg, Helaba Research & Advisory Reporting dates of selected banks „Turnover is at a high level, but it is mainly concentrated on the new bonds, which are recording good vol- umes on the trading platforms for both the buy and sell side. Outstanding bonds are sold much less to relieve the lines than in previous years. This shows that many real money investors still took increased profits during the spread rally in Q4 2022 and currently have high cash holdings.” Comment from the Helaba trading floor Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 January 2023 5 of 7 1/13 TLTRO repayments: According to the repayment notice of Jan. 13, 2023 (settlement Jan. 25), the total re- payment amount is only EUR 62.7 billion, compared with consensus estimates of an average of around EUR 213 billion (the range was between EUR 75 and 450 billion). In November and December, EUR 744 billion was already repaid to the ECB. 1/12 EBA risk dashboard: EBA Risk Dashboard shows that capital and liquidity ratios remain robust. \* 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 155 2,24% 9,58% iBoxx € Cov. Germany 7,5 2,6 1,4 iTraxx Senior Financial 86,7 -2,4 -17,0 10Yr-Yield 2,0 -0,2 -0,3 iBoxx € Cov. Bonds 20,8 3,0 2,6 iBoxx € Supranational 20,2 4,33 5,79 Swap 10J 2,6 -0,2 -0,4 iBoxx € Banks PS 78,8 -3,4 8,6 iBoxx € Agencies 3,3 1,74 3,07 iBoxx € Germany -44,9 2,1 6,8 iBoxx Banks NPS 116,6 -7,3 4,3 iBoxx € Sub-Sov. Germany 15,4 3,55 4,84 iBoxx € EU 26,4 4,8 6,7 iBoxx Banks Subordinated 181,2 -11,4 -2,5 iBoxx € Sub-Sovereign 30,3 3,51 5,45 Leisure tip for the weekend: Neanderthal Museum Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www. Neandertal.de Neandertal World of Adventure, Talstr. 300, 40822 Mettmann The Neandertal World of Adventure includes the museum and five other highlights that you can discover during your day trip to us. Here you can spend a varied day with the whole family, find an extraordinary extracurric- ular place of learning with your school class, celebrate an unforgettable children's birthday party or meet for a great team event in an impressive setting! Experience the history of mankind and the Stone Age by seeing, hearing, touching and participating! More information: Neandertal World of Experience Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 January 2023 6 of 7 Chartbook SSA, 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 Jan.22 Mrz.22 Mai.22 Jul.22 Sep.22 Nov.22 Jan.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 Jan.22 Mrz.22 Mai.22 Jul.22 Sep.22 Nov.22 Jan.23 EUR Covered Covered Germany SSA: Primary volumes SSA: 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 Jan. 22 Mrz. 22 Mai. 22 Jul. 22 Sep. 22 Nov. 22 Jan. 23 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 January 2023 7 of 7 News from Research & Advisory  European banks: An optimistic outlook for 2023  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  FOCUS ON: CREDITS – LIVE DEALS – A USEFUL INDICATOR FOR PLANNING ISSUANCE  FOCUS ON: CREDITS – EUROPEAN BANKS: CLIMATE RISK STRESS TEST HIGHLIGHTS NEED FOR FURHTER ACTION  EUROPEAN BANKS: ACTIVITIES BECOMING EVER GREENER Team of authors Publisher and editorial office Helaba Research & Advisory Editor: Stefan Rausch 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: Medium maturities easy to place. Covered Bonds: Greater differentiation between issuers. Senior Unsecured: Slight signs of fatigue after record start to the year.