---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-31
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 23 September 2022 © Helaba | Research & Advisory | 23 September 2022 1 of 8 Research & Advisory Weekly Market Update Primary market environment: The market environment continues to hold various challenges in store. Influencing factors such as high energy prices, inflation and economic concerns domi- nate, especially as these are underpinned by the latest data. Based on the central banks' state- ments, further interest rate hikes can be considered likely. The recently started The recently started Trend towards spread widening is continuing. The increasing red colour- ing of our spread trend indicator underlines this impression. Primary market barometer Sources: Helaba Research & Advisory With an issuing volume of EUR 10.55 billion, the music clearly played in the SSA segment this week. Cades (EUR 5 billion) and the ESM (EUR 2 billion) contributed significantly to this. Only two of the eight new place- ments narrowed the final spread vs. the initial indication. Compared to previous weeks, issu- ance was limited this week, which may be due to the absence of many market participants at the ECBC con- ference and the increasingly difficult market environment. Conditions in the highly volatile mar- ket environment remain difficult, alt- hough the primary market for senior unsecured bank bonds continues to be receptive. Issuers are taking ad- vantage of open market windows as soon as those show up, albeit at ele- vated spread levels. Covered Bonds Senior Unsecured SSA Spread widening tends to increase Spread trend indicator\*, ASWspread change versus … \*ASW levels standardized and 2T-smoothed, since 14.2.22 changed calculation of ASW levels by Markit. Sources: Refinitiv, Helaba Research & Advisory IBOXX EURO 1 day 1 week 4 week 13 weeks 52 weeks 104 weeks Germany -0,03 0,35 0,87 0,10 -1,91 -2,65 European Union 0,08 0,21 0,31 0,33 0,64 -0,37 Germany Covered 0,04 0,07 0,21 0,18 0,44 -0,20 EU Covered 0,01 0,01 0,06 0,08 0,25 0,06 Banks senior preferred -0,03 0,21 0,57 -0,72 2,19 1,02 Banks senior bail-in (SNP) -0,03 0,24 0,43 -0,48 2,38 0,94 Banks subordinated 0,06 0,28 0,57 -0,28 2,38 1,04 Supranational 0,06 0,12 0,19 0,12 0,25 -0,55 Agencies -0,02 0,07 0,16 -0,23 -0,88 -1,35 Sub-Sovereigns Germany 0,05 0,03 0,04 -0,12 -1,29 -1,74 Sub-Sovereigns 0,04 0,10 0,19 -0,12 -0,49 -1,39 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 23 September 2022 2 of 8 SSA With its rate hike of 75 bps, the US Federal Reserve underpinned market participants' expectations of further interest rate increases late on Wednesday. In wise foresight, almost all SSA transactions in the run-up to the Fed were carried out in the first half of the week. Most of the issues were well oversubscribed. For the first time this week, three development banks also issued a social bond together, analogous to the German federal states. The 7-year transaction by ILB Brandenburg (30%), IFB Hamburg (35%) and ISB Rheinland -Pfalz (35%) had a volume of EUR 500 million. Outlook: We expect another high issue volume in the coming week. One or the other SSA issuer is in the pipeline. Overall, however, uncertainties remain and with the inverted curve the demand focus is likely to be on short to me- dium maturities. Covered Bonds Most recently, we have referred to the deteriorating market conditions. From the 5-year maturity band onwards it becomes challenging and new issues require higher new issue premiums to be suc- cessful. On the other hand, short and medium maturities are sought after, the curves become flatter and flatter and an interest rate advantage in the longer maturity band is virtually non-existent. Swap decoupling continues and the performance of high-quality German Pfandbriefe in particular speaks for itself. For example, the HESLAN 2 ⅜ 09/21/26 has narrowed by a whopping 7 basis points within a week since the new issue. Outlook: A large part of the covered bond community met for the ECBC conference in Vienna. After this "time out" and with a view to the security character of the asset class, which was also emphasised in many cases at the con- ference, as well as the still outstanding financing needs, we expect a few more issues in the coming weeks. Representatives of the ECB, such as Kazaks, have taken a clear position that interest rates will continue to rise. In the meantime, central banks are also accepting a recession in order to counter inflation. For issuers with capital needs, refinancing will become even more expensive. The upcoming election in Italy is also a source of tension. Giorgia Melonie seems to be on a very good path to be- coming the new prime minister. Her alliance Fratelli d'Italia (FDI), which belongs to the right-wing camp, is clearly Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,750% CADES Aa2 /AA/- 5,000 Mrd. 25.11.2032 FRTRs +35 bp  20.09.2022 11,500 Mrd. FRTRs +36 area 1,000% ESM Aaa /AAA/AAA 2,000 Mrd. 23.09.2025 ms -33 Bp 20.09.2022 26,000 Mrd. ms - 30 area 1,125% KFW Aaa /AAA/AAA 1,000 Mrd. 15.09.2032 ms -21 Bp 20.09.2022 4,500 Mrd. ms - 19 area 3,000% Ville de Paris - /AA/AA- 0,300 Mrd. 27.09.2042 FRTRs +36 Bp 20.09.2022 0,845 Mrd. FRTRs +38 area 2,500% CCCIF Aa2 /-/AA 0,500 Mrd. 29.09.2027 FRTRs +48Bp 21.09.2022 0,720 Mrd. FRTRs +50 area 3,125% Action Logement Services Aa2 /-/AA 0,750 Mrd. 28.09.2037 FRTRs +53 Bp 21.09.2022 0,770 Mrd. FRTRs +53 area 2,650% ICO Baa1 /A/A- 0,500 Mrd. 31.01.2028 SPGB +14 Bp  21.09.2022 1,100 Mrd. SPGB +16 area 2,500% Gemeinsame Landesförderinstitute - /-/AAA 0,500 Mrd. 28.09.2029 ms -7 Bp 22.09.2022 0,173 Mrd. ms - 7 area Sources: Bloomberg, Helaba DCM €-SSA-Issues week of 19 September 2022 " Short and medium maturities remain on fire! Due to the recent movements on the interest rate curve in gen- eral and the swap curve in particular, there is currently no difference in absolute terms between 2-year and 8- year maturities. Therefore, the attractiveness of short duration is increasing for investors who want or need to invest liquidity!." Comment from the Helaba trading floor Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 23 September 2022 3 of 8 ahead according to the polls. Although she has pledged to maintain Mario Draghi's fiscal stance, she may give in to pressure from coalition partners to increase spending to cushion the impact of the energy crisis on Italians. Senior Unsecured Conditions on the primary market for senior unsecured bank bonds remain extremely difficult. On top of the burdensome geopolitical news flow, this week - once again - saw 'time-outs' caused by public holidays (on Monday in the UK) and interest rate decisions (led by the FED on Wednesday). At its meeting, the US Federal Reserve raised the key interest rate band by 75 bps to 3.00-3.25% and holds out the prospect of further rate hikes. In this environment, spreads on senior unsecured bank bonds widened further compared with the previous week. The comparatively high spreads of bonds from Italy were surprisingly stable, while bonds from US banks in particular suffered to an above-average extent from the interest rate hike fantasy triggered by the Fed. On Tuesday, Banco Santander came to the market with a EUR 1.5 billion 4NC3 preferred bond, which it successfully executed on books of over EUR 2 billion and a new issue premium of 20 bps. The day before, Finnish Oma Saasto- pankki placed a sub-benchmark bond - also in preferred rank - with a volume of EUR 150 million, but had to offer a generous spread premium to fill the books. Outlook: This week again confirmed that conditions in the highly volatile environment are becoming increas- ingly difficult. Issuers expect interest rates to rise fur- ther and are taking advantage of market windows that present themselves to fill their issuance plans, which have been expanded by high maturities and credit growth, as quickly as possible. They are thus encoun- tering increasingly selective investors. After all, the report on banks' funding plans recently published by the EBA once again shows that institutions have a high demand for capital market issues in the coming years, and are focusing on bail-in capable non-pre- ferred paper. Even though the underlying data are from the end of 2021, we believe that this picture should not have changed in principle. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,375% LBBW Aaa /-/- 1,000 Mrd. 26.02.2027 ms -4 Bp 19.09.2022 2,900 Mrd. ms + 1 area 2,875% Raiffeisen Bank International AG Aa1 /-/- 0,500 Mrd. 28.09.2026 ms +24 Bp 20.09.2022 0,500 Mrd. ms + 24 area 2,625% UniCredit Bank AG Aaa /-/- 0,500 Mrd. 27.04.2028 ms +0 Bp 20.09.2022 3,250 Mrd. ms + 6 area 2,625% Stadshypotek AB Aaa /-/- 1,000 Mrd. 27.09.2029 ms +12 Bp 20.09.2022 1,450 Mrd. ms + 16 area Sources: Bloomberg, Helaba DCM €-Covered Bond-Issues week of 19 September 2022 Banks aim to reduce central bank funding Banks’ growth expectations for selected liability classes \* original maturity < 1 year Sources: EBA report on banks funding plans, Helaba Research & Advisory -50% -40% -30% -20% -10% 0% 10% 20% 30% Deposits from central banks Short-term debt securities issued\* Long-term secured debt securities issued Long-term unsecured debt securities issued 2022F 2023F 2024F Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 23 September 2022 4 of 8 Short news 9/22 Interest rate environment: Further central banks raise key interest rates, including the Bank of England, the Swiss National Bank and the Norwegian central bank. 9/21 Interest rate environment: The U.S. Federal Reserve raises the key interest rate band by 75 bps to 3.00- 3.25% and holds out the prospect of further rate hikes. (see our daily) 9/19 ECB supervision and energy sector risks: The ECB’s supvervisory body is urging credit insitiutions to scruti- nize their exposure to energy-intensive industries. Andrea Enria, who leads the ECB’s supervisory board reiterated his call for banks to factor in a potential “severe” economic downturn in their projections of how capital ratios will evolve. (Bloomberg) 9/19 Moody's takes rating actions on Czech covered bonds: Moody's Investors Service has upgraded (1) to Aa1 from Aa2 the ratings of the mortgage covered bonds issued by Raiffeisenbank a.s., (2) to Aa2 from Aa3 the ratings of the mortgage covered bonds issued by UniCredit Bank Czech Republic and Slovakia, a.s. 9/19 Single Resolution Board Annual Conference: At the seventh annual conference of the Single Resolution Board (SRB), its Chair Elke König speaks about bank resolvability and reiterates that promoting financial stability by ensuring a robust bank resolution regime in uncertain times is key. 9/15 EBA report on banks' funding plans in the period 2022 - 2024: The EBA has published its annual report on banks' funding plans. In 2021, customer deposits and central bank refinancing (TLTRO) in particular had risen strongly. The banks probably expect a noticeable decline in deposit growth and plan to increase their funding via the capital market. However, the latter will not fully replace the expiring central bank refinancing (TLTRO). Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,625% Banco Santander, S.A. A2 /A+/A 1,500bn 27.09.2026 ms +105 bps 20.09.2022 2,000bn ms +125 arera Sources: Bloomberg, Helaba DCM €-Senior Preferred-Issues week of 19 September 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication keine Sources: Bloomberg, Helaba DCM €-Senior Non-Preferred-Issues week of 19 September 2022 "- Here today and gone tomorrow - it is said for bonds from Germany and France, which have given up their gains of the past week again. Underperformers, however, are by far U.S. bonds, which, driven by inflation and economic data and the resulting interest rate hike fantasies on the part of the FED, extended over the entire curve. Fast-money accounts continue to be sellers in the new issues. Insurers and asset managers are again following events from the sidelines. Even yields above 5 % are not enticing at present.." Comment from the Helaba trading floor Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 23 September 2022 5 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 131 -2,24% 3,87% iBoxx € Cov. Germany 3,2 0,0 1,4 iTraxx Senior Financial 137,7 20,6 22,3 10Yr-Yield 1,98 0,25 0,66 iBoxx € Cov. Bonds 11,7 -0,1 1,6 iBoxx € Supranational 2,3 0,73 2,17 Swap 10J 2,77 0,21 0,57 iBoxx € Banks PS 81,0 3,3 12,3 iBoxx € Agencies -17,8 0,03 1,96 iBoxx € Germany -68,4 3,77 13,93 iBoxx Banks NPS 126,0 4,0 10,8 iBoxx € Sub-Sov. Germany -1,0 -0,24 0,46 iBoxx € EU 4,2 1,88 3,71 iBoxx Banks Subordinated 226,3 16,1 33,6 iBoxx € Sub-Sovereign 13,7 0,42 2,08 Leisure tip for the weekend: Drachenfels in Königswinter near Bonn Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.keltenwelt-glauberg.de The Drachenfels between Königswinter and Bad Honnef is popular for day trips. At an altitude of 321 meters, it offers a unique view over the Rhine Val- ley. The ruins of the Drachenfels Castle, dating back to 1167, are enthroned on the top. This place has always fascinated people, and numerous stories, legends and myths have grown up around it. It can be reached by hiking or by rack railroad. On the way, you will pass by Drachenburg Castle, which can be visited. Nearby are the publicly accessible Hotel Petersberg (former govern- ment guesthouse) and Rhöndorf (Bad Honnef), the former residence of Kon- rad Adenauer. More information: Der Drachenfels Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 23 September 2022 6 of 8 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 0 20 40 60 80 100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2021 Senior Preferred 2022 Senior Preferred 2021 Senior Non-preferred 2022 Senior Non-preferred 0 50 100 150 200 250 300 0 50 100 150 200 250 300 Sep.21 Nov.21 Jan.22 Mrz.22 Mai.22 Jul.22 Sep.22 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 0 20 40 60 80 100 120 140 160 180 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2022 2020 2021 -4 -2 0 2 4 6 8 10 12 14 16 -4 -2 0 2 4 6 8 10 12 14 16 Sep.21 Nov.21 Jan.22 Mrz.22 Mai.22 Jul.22 Sep.22 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 2020 2021 2022 -25 -15 -5 5 15 25 -25 -15 -5 5 15 25 Sep. 21 Nov. 21 Jan. 22 Mrz. 22 Mai. 22 Jul. 22 Sep. 22 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 23 September 2022 7 of 8 News from Research & Advisory  FOCUS ON: CREDITS – BANK AND COVERED BOND PROFILES GERMANY  FOCUS ON: SSAS – GERMAN AGENCIES  FOCUS ON: CREDITS – EUROPEAN BANKS: NET INTEREST INCOME RISES SHARPLY IN Q2 2022  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 – PRIMARY MARKET UPDATE EUR BENCHMARK BANK BONDS: Q2 2022  FOCUS ON: CREDITS – EUROPEAN BANKS: CLIMATE RISK STRESS TEST HIGHLIGHTS NEED FOR FURHTER ACTION  EUR CORPORATE BONDS: PRIMARY MARKET Q2 2022  EUROPEAN BANKS: ACTIVITIES BECOMING EVER GREENER  IMPLEMENTATION OF THE EU COVERED BOND DIRECTIVE: SPAIN VERSUS FRANCE AND GERMANY (VIDEO)  IMPLEMENTATION OF THE EU COVERED BOND DIRECTIVE – STATE OF PLAY: AUSTRIA VERSUS FRANCE AND GERMANY (VIDEO)  IMPLEMENTATION OF THE EU COVERED BOND DIRECTIVE – STATE OF PLAY IN FRANCE AND GERMANY (VIDEO)  COVERED-BOND-LAWS: IMPLEMENTATION OF THE EU REGULATION (VIDEO) 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 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 Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 23 September 2022 8 of 8

SSA: Most issues were well oversubscribed. Covered Bonds: New issues need higher premiums to be successful. Senior unsecured: Primary market conditions for senior unsecured bank bonds remain extremely difficult