---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-33
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 8 September 2022 © Helaba | Research & Advisory | 8 September 2022 1 of 8 Research & Advisory Weekly Market Update Primary market environment: The overall market environment remains tense, significant jumps in volatility illustrate the nervousness of market participants. Politicians are trying to cushion some of the burdens that have arisen in the wake of high energy prices - especially as the wave of insolvencies is gathering pace. The ECB raised its key interest rate by 75 basis points today. Compared to the previous week, the picture of our spread indicator is much friendlier. This is despite the fact that the negative factors have not changed significantly. The search for safe assets is on. Primary market barometer Sources: Helaba Research & Advisory Unsurprisingly in the current envi- ronment, the search for quality and safety continues. However, the pres- sure from the primary market is hav- ing an impact on the required new is- sue premiums (NIP). These are in- creasing noticeably in the SSA seg- ment. The primary market environment is very constructive. A large number of issuers took advantage of the favour- able environment ahead of today's ECB meeting. Others will still proba- bly follow next week. The activity on the primary market for senior unsecured bank bonds defies the market environment burdened by the bad news and continues to be lively. With the market window still open, we expect transactions to con- tinue in the coming week. Covered Bonds Senior Unsecured SSA More than a temporary relaxation? 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 0,07 -0,14 -0,16 -0,95 -2,83 -3,68 European Union -0,09 -0,20 -0,02 -0,38 0,26 -0,71 Germany Covered -0,12 -0,21 -0,41 0,09 0,29 -0,55 EU Covered -0,03 -0,05 -0,09 0,08 0,20 -0,05 Banks senior preferred 0,01 0,21 0,48 -0,38 1,90 0,90 Banks senior bail-in (SNP) -0,05 0,00 0,60 -0,19 2,10 0,99 Banks subordinated -0,02 0,24 0,55 0,00 2,08 0,99 Supranational -0,07 -0,18 -0,20 -0,29 0,01 -0,75 Agencies -0,05 -0,18 -0,24 -0,61 -1,15 -1,65 Sub-Sovereigns Germany -0,03 -0,16 -0,46 -0,28 -1,40 -1,73 Sub-Sovereigns -0,03 -0,15 -0,35 -0,34 -0,75 -1,55 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 8 September 2022 2 of 8 SSA Safe forms of investment continue to be very popular with investors. Issuers took advantage of the market's continued good absorption capacity, placing bonds with a volume of EUR 2.85 billion this week. The African Development Bank took the biggest slice of the cake with a EUR 1.25 billion tranche. The Wallonne region (EUR 1 billion) and the Austrian ASFINAG (EUR 600 million) also came forward. All three have in common that the final spreads could be nar- rowed compared to the initial indications - most signif- icantly at ASFINAG (-4 bps.). The Walloon Region had to accept the highest new issue premium (NIP) of 10 bps for its paper maturing in 2038. In general, there is a trend in the SSA segment towards listening to NIPs, es- pecially as the new issue pressure continues Today's ECB decision and the prospect of further nor- malisation of interest rates indicate that refinancing costs will continue to rise and that issuing conditions will not become easier. Outlook: In view of today's ECB meeting, the books have already been closed for this week, and further transac- tions are already emerging for the coming week. The issuance round will continue as long as the market allows. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,125% ASFINAG Aa1 /AA+/- 0,600bn 13.09.2028 ms -12 bps 06.09.2022 7,000bn ms - 8 area 2,250% African Development Bank Aaa /AAA/AAA 1,250bn 14.09.2029 ms -3 bps  07.09.2022 2,300bn ms - 2 area 2,875% Région Wallonne A3 /-/- 1,000bn 14.01.2038 BGBs +39 bp 07.09.2022 1,400bn BGBs +40 area Sources: Bloomberg, Helaba DCM €-SSA-Issues week of 5 September 2022 3M-Euribor-Future: Trend continues to point upwards % Sources: Refinitiv, Helaba Research & Advisory "The trend of narrowing swap spreads in the SSA universe continues at the short end. Quality securities such as E-names and KfW remain very sought-after in this segment, especially maturities of up to 18 months. De- spite the very negative spreads compared to swap, new issues of small names in short maturities continue to be very sought-after. The best example is ASFINAG 2 ⅛ 09/13/2028, which came onto the market yesterday at a mid-swap of -12 and is already trading at I-18.5. A very fast performance which again emphasises the lack of quality goods. With French agencies such as Cades and Unedic, the spreads over benchmarks and OATs are widening. Comment from the Helaba trading floor Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 8 September 2022 3 of 8 Covered Bonds In view of the ECB's interest rate decision today, this week's issuing activity was concentrated on the period from Monday to Wednesday. Covered bonds with a volume of EUR 7.73 billion changed hands. The high number of transactions - as many as eight covered bonds were issued in this short time window - shows that every opportunity to become active is currently being used. The first issue this week was made by the French Compagnie de Financement Foncier (CFF) on Monday. The cov- ered issue was successfully placed with a 7.5-year maturity, a volume of EUR 1.25 billion and with a 1.28-fold over- subscription. The initial spread was narrowed from MS+15 to MS+11. ING-Diba's 8-year covered bond also met with lively investor interest. A significant premium over Bunds as well as the green label and a 100% residential mortgage cover pool contributed to this. The Royal Bank of Canada successfully came to market with a 5-year covered (EUR 1.5 billion). The initial spread was narrowed from MS+20 to MS+17 and the book was 1.3 times over- subscribed. Nordea placed a 10-year benchmark covered (EUR 1 billion) at MS+14, secured by a newly established pool of 100% prime Finnish cover assets. Aareal was also successful with the issuance of a Pfandbrief (7 years, EUR 625 million). The final spread was set at MS+11 (vs. initial MS+13). Overall, it is noteworthy that new issue premiums this week were below 3 bps compared to the previous two weeks and thus below average. In principle, market participants expected a higher issuance volume in September, but the current high momen- tum is surprising; our primary market forecast for the year for EUR-denominated covered bonds has already been exceeded. The covered bond portfolio (CBPP3) declined by EUR 101 m in the last reporting week, in line with our expecta- tions, after the portfolio increases in August (see Weekly Market Update of 1st September 2022). Outlook: Primary market activity will continue in the coming week. Especially since the issuance window will be somewhat larger due to the lack of restrictions - cue ECB meeting and holiday in the USA. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,375% CFF Aaa /AAA/- 1,250 Mrd. 15.03.2030 ms +11 Bp 05.09.2022 1,600 Mrd. ms + 15 area 2,375% Bausparkasse Schwäbisch Hall Aaa /-/- 0,500 Mrd. 13.09.2029 ms +2 Bp 06.09.2022 1,100 Mrd. ms + 6 area 2,375% ING-DiBa AG Aaa /-/- 1,000 Mrd. 13.09.2030 ms +2 Bp 06.09.2022 1,600 Mrd. ms + 6 area 2,375% Royal Bank of Canada Aaa /-/AAA 1,500 Mrd. 13.09.2027 ms +17 Bp 06.09.2022 2,020 Mrd. ms +20 area 2,125% Danske Mortgage Bank Plc Aaa /-/- 1,250 Mrd. 16.09.2025 ms +0 Bp 06.09.2022 3,300 Mrd. ms + 5 area 2,375% Aareal Bank AG Aaa /-/- 0,625 Mrd. 14.09.2029 ms +11 Bp 07.09.2022 0,710 Mrd. ms + 13 area 2,500% Nordea Mortgage Bank Plc Aaa /-/- 1,000 Mrd. 14.09.2032 ms +11 Bp 07.09.2022 1,400 Mrd. ms + 14 area 2,574% Macquarie Bank Limited Aaa /-/AAA 0,600 Mrd. 15.09.2027 ms +30 Bp 07.09.2022 0,775 Mrd. ms + 32 area Quellen: Bloomberg, Helaba DCM €-Covered Bond-Issues week of 5 September 2022 "The turbulence in short-dated 1st quality government bonds is also causing additional tension in short cov- ered bonds! The short end has been the SWEETSPOT in investors' favour for many months now. With the fuss about investment money of public institutions amounting to EUR 280 bn lying with the Bundesbank and bearing interest at a maximum of 0% and increasingly looking for better alternatives with higher yields, the already scarce material is becoming even scarcer and thus ever more expensive vs. swaps! The expression of this is the Schatz/ASW spread at "Lehman levels" of approx. 120 Bps! This situation has direct consequences for high-quality alternative products such as LSAs, but also for short-dated covered bonds.” Comment from the Helaba trading floor Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 8 September 2022 4 of 8 Senior Unsecured The primary market for senior unsecured bank bonds again proved to be very robust in the past few days and was thus not distracted by the crisis-driven newsflow. After the break on Monday, which was partly due to the Labor Day holiday in the USA, three well-known issuers appeared on the market with EUR benchmark transactions on Tuesday: Banque Fédérative du Crédit Mutuel (BFCM) with a 5- and 10-year dual tranche, the Finnish OP Corporate Bank (3.25 years) and the Italian Banco BPM (4 years); Spanish ABANCA (6 years) followed on Wednesday. The focus was clearly on senior preferred issues with only BPM issuing its new bond in the non-preferred rank. The books were well oversubscribed in all transactions, with the best performance coming from BFCM's 10-year tranche with a 2.8 x subscription rate. In principle, investors continue to show strong buying interest, albeit at still higher spread levels. The new issue premiums were around 15 to 20 bp. In contrast, the picture was somewhat weaker for Banco BPM's non-preferred transaction - despite a new issue premium of around 65 bp. In general, shorter maturities and good qualities remain in demand. Outlook: Due to the ECB decision, the primary market in this segment also took a break today. The lively activity of the past few days, however, once again proves that the need for issuance continues to be extensive and that there is a gratifyingly high demand for investment on the part of investors. Little should change in the coming week. The issuance plans of the institutions are still quite extensive for this year, not least driven by high maturities and reg- ulatory requirements. However, market prices remain very volatile and crisis-related risks high. Despite the pres- sure of slowly rising new issue premiums, the issuers' fear of possibly finding even more difficult issuing condi- tions in the future prevails, so that they accept the currently increased spread levels. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,125% BFCM Aa3 /A/AA- 1,500bn 14.09.2027 ms +90 bps 06.09.2022 2,600bn ms + 115 area 3,625% BFCM Aa3 /A/AA- 0,750bn 14.09.2032 ms +120 bps 06.09.2022 2,100bn ms + 145 area 2,875% OP Corporate Bank plc Aa3 /Aa-/- 1,250bn 15.12.2025 ms +65 bps 06.09.2022 1,950bn ms + 85-90 bp 5,250% ABANCA Corporación Bancaria, S.A.Baa3 /-/BBB- 0,500bn 14.09.2028 ms +305 bps 07.09.2022 1,200bn ms + 325 area Sources: Bloomberg, Helaba DCM €-Senior Preferred-Issues week of 5 September 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 6,000% Banco BPM S.p.A. Ba2 /-/BB+ 0,500bn 13.09.2026 ms +385 bps  06.09.2022 0,900bn ms + 400 area Sources: Bloomberg, Helaba DCM €-Senior Non-Preferred-Issues week of 5 September 2022 “Investor flows were average and mostly balanced last week, but there was a significant overhang of inquiries on the money side on widening days at Fast Money. New issues, in particular, generate a lot of selling of the outstanding bonds of the respective issuer. At the short end, there were buyers and sellers, but Real Money accounts are increasingly appearing there as sellers for maturities through 2022-2024. ETF funds are pre- dominantly active in new issues and non-preferred bonds from the periphery and France.” Comment from the Helaba trading floor Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 8 September 2022 5 of 8 Short news 9/7 Bafin head sees risks especially in real estate and corporate loans: Bafin President Mark Bran- son expresses concern at the banking summit because many debtors have to pay more than half of their income to repay real estate loans. In addition to the "perennial problem of the real estate market", Branson considers corporate loan defaults and the interest rate turnaround to be the biggest challenges facing the German banking sector. (Handelsblatt) 9/7 ECB supervision on climate risks: According to an article by Kerstin af Jochnick, member of the Supervisory Board of the ECB, for Eurofi Magazine, climate change poses an increasing risk to banks and the European finan- cial system as a whole. 9/7 Introduction of covered bonds in Marocco: Morocco allows lenders and public companies to issue covered bonds. The regulations, which take effect upon their publication, allow banks, local councils and public firms to issue covered bonds when licensed to do so by the central bank, according to a royal decree published on the offi- cial gazette Tuesday. (Bloomberg) 9/6 Portugal/ Novo Banco Mortgage Covered Bonds: Moody’s has upgraded to Aa3 from A2 on review for up- grade the rating of the covered bonds issued by Novo Banco. The upgrade of the covered bonds rating follows the upgrade of Novo Banco’s CR assessment to Baa2(cr) from B1(cr) and the clarification from the issuer on the over- collateralisation commitment 9/6 EU taxonomy – minimum safeguards: On 6th September the call for feedback on the draft report by the Platform on Sustainable Finance (PSF) on minimum safeguards ended. The minimum safeguards set out in Article 18 of the Taxonomy Regulation require that companies implement procedures to comply with OECD Guide- lines for multinational enterprises and the UN guiding principles on business and human rights. The report on minimum safeguards aims to provide advice on how compliance with minimum safeguards could be assessed. Af- ter considering the stakeholders’ input, the Platform will submit a final report with their advice to the Commission in September 2022. The Commission will analyse and consider these reports and will assess the possible need for additional guidance regarding the application of Article 18 of the Taxonomy Regulation. 9/5 Bearingpoint study on Eurpean banks’ profitability: According to a study by Bearingpoint, banks are operat- ing more efficiently than at any time since 2013, return on equity has risen significantly to pre-crisis levels twelve months later following a low point in the 2020 corona year, and profit before tax has more than doubled. However, not all institutions benefited to the same extent from the progress. (Handelsblatt) 9/5 Credit quality in Italy: UniCredit sets out $8 billion aid package for Italy clients hit by surging prices, accord- ing to Reuters. 9/5 EU’s sustainable finance rule book: The EU’s rule book on sustainable investing was meant to bring transpar- ency to the descriptions of asset managers’ funds. But some disclosure requirements draw on data that either does not yet exist or that companies will only be required to publish from next year. According to the Financial Times (FT), many investors cannot yet fully meet these disclosure requirements because important information is missing. Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 8 September 2022 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 124 -0,78% -6,22% iBoxx € Cov. Germany 2,0 -1,7 -3,4 iTraxx Senior Financial 125,9 -4,2 20,2 10Yr-Yield 1,57 0,04 0,69 iBoxx € Cov. Bonds 10,5 -1,6 -3,3 iBoxx € Supranational 0,0 -2,43 -3,02 Swap 10J 2,43 0,01 0,67 iBoxx € Banks PS 77,4 1,4 11,5 iBoxx € Agencies -21,2 -3,34 -4,09 iBoxx € Germany -81,4 -2,27 -0,72 iBoxx Banks NPS 123,2 -3,5 18,4 iBoxx € Sub-Sov. Germany -2,3 -2,55 -7,23 iBoxx € EU 0,2 -2,82 -1,21 iBoxx Banks Subordinated 216,2 8,9 33,5 iBoxx € Sub-Sovereign 11,3 -2,12 -4,87 Leisure tip for the weekend: 30th Erfurt Wine Festival Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.erfurt.de From September 08 to September 11, 2022, the annual Erfurt Wine Festival will take place, which celebrates its 30th anniversary this year. Wine producers from the most diverse wine regions of Germany will bring their best wines to the old town of Erfurt. In addition to the wide range of offered wines, the festival will be completed by an adequate offer of food and music. For wine connoisseurs a wine passport is offered, with which a selected wine can be tasted to 0.1l each at the stands. The passport costs 35 € and is available at the stands themselves. On Saturday and Sunday, the festival is com- pounded by an art and creative market. Here artists and craftsmen have also set up their booths in Erfurt's old town. The wine festival starts on Thursday (08.09.) at 2 pm. More information: 30th Erfurt Wine Festival The Euromoney/ECBC Covered Bond Congress Join us at the largest gathering of the global covered bond community on 22nd September 2022 in Vienna. We are gold sponsor and look forward to meet you at our stand. You can register via this Link. Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 8 September 2022 7 of 8 Chartbook SSA, Covered Bonds, Senior Unsecured Senior Primary volumes SSA: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW in bp Sources: Bloomberg, Helaba Research & Advisory Sources: Bloomberg, Helaba Research & Advisory 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2021 SP 2020 SP 2022 SP 2020 SNP 2021 SNP 2022 SNP 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 in bp Sources: Bloomberg, Helaba Research & Advisory Sources: Bloomberg, Helaba Research & Advisory 0 20 40 60 80 100 120 140 0 20 40 60 80 100 120 140 160 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 Senior Unsecured: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW spread in 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 | 8 September 2022 8 of 8 News from Research & Advisory  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: 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 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: Primary market pressure pushes up new issue premiums. Covered Bonds: Short end remains secondary market sweet spot. Senior Unsecured: Good quality preferred