---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-35
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 25 August 2022 © Helaba | Research & Advisory | 25 August 2022 1 of 7 Research & Advisory Weekly Market Update Primary market environment: Bonjour tristesse! Risk aversion continues to increase in the markets. Gas and electricity prices are going through the roof, exacerbating inflationary pres- sures. Rising interest rates, economic risks, a weakening euro, geopolitical dangers and ongo- ing supply chain problems are weighing on sentiment. The darker clouds gathering over the overall market are leading to a flight into safe assets. Spreads are narrowing as a result, so that the colour green dominates our spread indicator in the short term. In the case of senior unse- cureds, risk premiums ran high in the past trading week and widened significantly in all segments on a weekly ba- sis despite recent tightening. Primary market barometer Sources: Helaba Research & Advisory Safety is the trump card! In the face of a number of extensive stress fac- tors, it is not surprising that the search for so-called safe assets con- tinues. The renewed success of the ESFS in issuing a dual tranche pro- vides only one indication of this the- sis. Once again, the majority of investors were happy to subscribe to new pri- mary market securities this week. This documents the continued recep- tiveness of the market, and on the other hand, it seems that longer ma- turities can be placed again. The first signs of life are coming from the primary market, but the week shows that some issues only just crossed the finish line. Investors are scrutinizing issuance conditions more closely and the market for transactions is not getting any easier. Covered Bonds Senior Unsecured SSA Senior unsecured spreads knew only one direction 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 0,11 0,33 -0,15 -0,47 -2,14 -3,21 European Union 0,03 -0,12 -0,36 0,30 -0,07 -0,81 Germany Covered 0,08 -0,21 -0,10 0,51 0,47 -0,50 EU Covered 0,01 -0,05 -0,02 0,18 0,23 -0,05 Banks senior preferred 0,09 -0,08 -0,73 -0,39 1,48 0,42 Banks senior bail-in (SNP) 0,13 -0,09 -0,59 -0,32 1,55 0,44 Banks subordinated 0,05 -0,08 -0,86 -0,21 1,38 0,32 Supranational 0,02 -0,15 -0,23 0,47 -0,04 -0,64 Agencies 0,04 0,03 -0,23 -0,16 -0,82 -1,32 Sub-Sovereigns Germany -0,01 -0,18 -0,14 -0,03 -1,29 -1,51 Sub-Sovereigns 0,00 -0,11 -0,29 0,08 -0,62 -1,32 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 25 August 2022 2 of 7 SSA The SSA segment is currently enjoying great popularity. First and foremost, the security concept plays an important role in the investment decision and ensures solid investor demand. The market- ing spreads generally narrowed noticeably during the book-building phase. In addition to the dual tranche of the EFSF, which was in particularly high demand, the Developbank of Japan (EUR 600 million) and BPIFrance (EUR 500 million) were active. Outlook: Overall, the market is very receptive, so that further transactions can be expected on the primary market in the coming days. This expectation is also supported by the impression that the placement risk for issuers can be assessed as relatively low in view of the favourable framework conditions - e.g. the tendency towards spread tightening. After a longer period of abstinence, promotional banks are likely to appear on the pri- mary market again soon. Overall, however, it must be assumed that the issue volume in 2022 will not reach that of the previous year. The federal states have been heard to say that some of them may no longer need to issue this year in view of their good capitalisation. Covered Bonds The primary market is currently very active. The issues are usually met with very good demand, as the example of BayernLB's 9-year public Pfandbrief (EUR 500 million, WNG) shows. More than EUR 1.5 billion in order volume was recorded, and the original spread narrowed from MS+7 to MS+3. It remains to be said that as long as the market does not fall into a "pricing euphoria", there is definitely a chance for further con- structive weeks. Today, Commerzbank (EUR 1 billion) and Raiffeisen-Landesbank Niederösterreich-Wien (EUR 750 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,500% EFSF Aaa /AA/AA 4,000 Mrd. 15.12.2025 ms -26 Bp 29.08.2022 19,100 Mrd. ms - 24 area 2,375% EFSF Aaa /AA/AA 1,500 Mrd. 21.06.2032 ms -6 Bp 29.08.2022 4,500 Mrd. ms - 5 area 1,125% KfW Aaa /AAA/AAA 1,000 Mrd. 31.03.2037 ms -3 Bp 24.08.2022 3,000 Mrd. ms - 2 area 2,125% Development Bank of Japan A1 /A/- 0,600 Mrd. 01.09.2026 ms +20 Bp 01.09.2022 3,500 Mrd. ms + 23 area 1,750% CADES Aa2 /AA/- 3,000 Mrd. 25.11.2027 FRTRs +37 bp 31.08.2022 5,500 Mrd. FRTRs +38 area 1,875% BNG Aaa /AA/AA 0,750 Mrd. 13.07.2032 ms -1 Bp 31.08.2022 1,000 Mrd. ms - 1 area 2,000% BPIFrance Aa2 /-/AA 0,500 Mrd. 02.09.2030 FRTRs +40 bp 02.09.2022 0,550 Mrd. FRTRs +40 area Sources: Bloomberg, Helaba DCM €-SSA-Issues week of 22 August 2022 "In the current market phase, there are two decisive factors: On the one hand, the security-driven demand for high-quality assets remains high. The yield advantages of covered bonds are very high due to unabated high premiums of the swap curves compared to Bunds/Core EGBs. As a result, this continues to attract buyers, es- pecially for maturities up to 5Y. The second aspect is the activity on the primary markets, which got back on the track early after an unusually short summer break. Here it can be noted that the new issue premiums of- fered to investors are still good (4-6 bps on average). " Comment from the Helaba trading floor „The summer drought in SSAs is long forgotten and the market has been flooded with new issues since last Wednesday. The issues so far have mainly been in the 3 to 10-year range, mostly with good NIPs. Despite the very negative spreads compared to swaps, most of the new issues have performed relatively fast and well in the secondary market. The best example is the new EFSF 1 ½ 12/15/25, which came onto the market on Mon- day with MS-26 and has since risen by around 5 bp. The ASWs, which have been running out since Monday, should continue to support this tightening trend for the time being.“ Einschätzungen aus dem Handelsraum der Helaba Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 25 August 2022 3 of 7 million) were both successful with 10-year benchmark placements. At Commerzbank, the spread tightened from MS+13 (guidance) to MS+9 (books were over EUR 1.65 bn), RLB issued at MS+24. Outlook: Issuance activity will continue in the coming days. Macquarie Bank has already mandated a 5-year covered. Moreover, autumn promises to be very active, not least due to the fact that the ECB will have to re- place many maturities in September. In this respect, many issuers want to escape the expected squeeze on the capital market by realising their issuance plans early. The ECB also remains active: Within the framework of the APP, it increased its covered bond portfolio (CBPP3) by EUR 183 million in the last week. Senior Unsecured The reporting season was followed by several new issues this week, showing the tension of the mar- ket. For example, Deutsche Pfandbriefbank - despite a defensive maturity of four years and a "green" design - was unable to narrow the initial spread target of MS+250 basis points during the marketing phase. After all, the sustainable use of funds ensured an extremely granular and stable order book. After the spread widening and the lack of new issues on Tuesday and Wednesday, the illiquidity in the secondary market was high with a nevertheless high number of buyers, which may also explain the tightening of risk premi- ums in the meantime. Today, however, the curves already came under pressure again due to the new issues of BNP Paribas and Deutsche Bank and widened. Outlook: Although many issuers still want to become active this calendar year, the latest emissions are anything but encouraging. We repeat: the market remains volatile and timing remains a challenge. And so many market par- ticipants are probably waiting for a Tier 1 issuer with higher transaction security. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,000% Fédération des Caisses Desjardins du Québec Aaa /AAA/AAA 0,750 Mrd. 30.08.2026 MS+13 bp 22.08.2022 1,300 Mrd. MS+16 2,125% Credit Agricole Aaa /AAA/AAA 1,000 Mrd. 07.01.2030 MS+12 bp 23.08.2022 1,900 Mrd. MS+16 2,347% National Australia Bank Aaa /-/- 0,750 Mrd. 30.08.2029 MS+28 bp 23.08.2022 0,900 Mrd. MS+30 2,125% Bayerische Landesbank Aaa /-/- 0,500 Mrd. 01.09.2031 MS+3 bp 24.08.2022 2,400 Mrd. MS+7 2,375% RLB Niederösterreich-Wien AG Aaa /-/- 0,750 Mrd. 31.08.2032 MS+24 bp 25.08.2022 0,920 Mrd. MS+24 2,250% Commerzbank AG Aaa /-/- 1,000 Mrd. 01.09.2032 MS+9 bp 25.08.2022 1,900 Mrd. MS+13 Quellen: Bloomberg, Helaba DCM €-Covered Bond-Issues week of 22 August 2022 “Apart from new issues, secondary flows continue to be driven by small volumes of ETF funds. Asset managers and real money accounts are mainly focusing on new issues and are putting further pressure on cash with sales of old holdings. This is not expected to change in the near future, which is why spread widening is ex- pected to continue. It is unlikely that the end of the "summer hole" will be able to counteract this.” Comment from the Helaba trading floor Dutch Natural Gas Future EUR/MWh Sources: Bloomberg, Helaba Research & Advisory 50 100 150 200 250 300 350 Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 25 August 2022 4 of 7 Short news 25.8. Portuguese Covered Bonds: According to Moody’s Portugal's new covered bond law includes credit positive provisions. The new law has several positive provisions, including a requirement for covered bonds to hold a 180 day liquidity buffer and measures to reinforce supervisory powers. Furthermore, the new law defines extendable maturities for covered bonds and regulates certain aspects of maturity extension triggers. Removal of minimum OC requirement for residential mortgage covered bonds is negative. The new law removes the previous requirement for residential mortgage covered bond programmes to hold minimum OC of 5.26%, a credit negative change. 24.8. Implementation of the Covered Bond Directive: According to a report by Moody's, as of mid-August 2022, the relevant EU website listed the national implementation measures of all countries. In addition, Norway had also implemented the new rules, the agency writes. However, discussions with market participants in some countries indicated that the new rules are not yet final in all respects and that there are likely to be some transition delays and uncertainties in the coming months. Uncertainties arise in part from the transitional provisions of the new rules and how they will work when grandfathered and nongrandfathered bonds are issued under the same program. The biggest uncertainties would be for Spanish paper. 23.8. Austrian Covered Bonds: Moody's rating agency comments on the new legal framework for covered bonds created by Austria under the EU Covered Bond Directive, effective July 8, 2022 (As a reminder, the new Pfandbrief Act combines three previous covered bond laws into a single regulation). Features that Moody's categorizes as strong include strong protection against legal risks following issuer default. For example, the law prevents a bank moratorium from preventing payments to covered bondholders. Among the weaker features, the agency notes that there are no specific provisions for dealing with future interest rate mismatches between the cover pool and covered bonds, although issuers are required to monitor such risks. However, the law would require the issuer's risk management department to have systems in place to identify and assess interest rate risks. 23.8 Basel III: According to a press release, the Association of German Pfandbrief Banks (vdp) takes a fundamentally positive view of the proposed amendments to the banking package submitted by members of the European Parliament and recently published. Representatives of the EPP and Renew Europe groups, in particular, advocated the consideration of specific European market structures in the implementation, e.g. in real estate financing. Thus, on the one hand, there would be support for appropriate equity treatment of residential real estate financing if the credit institution can demonstrate a low-risk real estate financing business. On the other hand, an extension to equally low-risk commercial real estate financing would be brought into play. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,375% Deutsche Pfandbriefbank AG - /BBB+/- 0,500 Mrd. 28.08.2026 ms +250 Bp 22.08.2022 0,568 Mrd. ms + 250 area 2,625% Svenska Handelsbanken AB Aa2/AA-/AA+ 0,750 Mrd. 05.09.2029 ms +65 Bp 25.08.2022 2,600 Mrd. ms + 85 area Sources: Bloomberg, Helaba DCM €-Senior Preferred-Issues week of 22 August 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 5,000% Deutsche Bank AG Baa2/BBB-/BBB+ 1,500 Mrd. 05.09.2030 ms +295 Bp 25.08.2022 4,500 Mrd. ms + 315 area 3,625% BNP Paribas SA Baa1/A-/A+ 1,500 Mrd. 01.09.2029 ms +160 Bp 25.08.2022 3,000 Mrd. ms + 190 area Sources: Bloomberg, Helaba DCM €-Senior Non-Preferred-Issues week of 22 August 2022 Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 25 August 2022 5 of 7 \* 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 126 -4,39% 0,97% iBoxx € Cov. Germany 1,6 -2,7 -1,8 iTraxx Senior Financial 117,2 9,9 -3,5 10Yr-Yield 1,36 0,28 0,42 iBoxx € Cov. Bonds 9,8 -2,6 -1,8 iBoxx € Supranational -0,1 -1,29 -2,11 Swap 10J 2,26 0,38 0,51 iBoxx € Banks PS 68,0 1,8 -9,0 iBoxx € Agencies -20,7 -4,39 -6,14 iBoxx € Germany -82,2 -7,63 -6,05 iBoxx Banks NPS 113,2 7,5 -2,0 iBoxx € Sub-Sov. Germany -1,7 -3,88 -6,04 iBoxx € EU 0,5 0,52 -0,81 iBoxx Banks Subordinated 191,0 10,3 -14,6 iBoxx € Sub-Sovereign 11,0 -3,45 -6,56 Leisure tip for the weekend: Museumsuferfest Frankfurt am Main Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.museumsuferfest.de On the weekend of August 26-28, 2022, the Frankfurt Museumsuferfest will take place again after a two-year Corona break. Located in the heart of the city, with the skyline in the background, the event attracts around 2 million visitors every year. The festival offers a combination of art/culture, music and culinary delights. Among the extraordinary program points of Frankfurt's mu- seums are various stage productions and shows. A special highlight is the firework display on the banks of the Main River, which takes place on Sunday at 10 p.m. and is the grand finale of the festival weekend. The schedule of events can be viewed at the following link: Program. More information: Museumsuferfest 2022 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 | 25 August 2022 6 of 7 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 Aug.21 Okt.21 Dez.21 Feb.22 Apr.22 Jun.22 Aug.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 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 Aug.21 Okt.21 Dez.21 Feb.22 Apr.22 Jun.22 Aug.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 -20 -10 0 10 20 30 -20 -10 0 10 20 30 Aug. 21 Okt. 21 Dez. 21 Feb. 22 Apr. 22 Jun. 22 Aug. 22 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 25 August 2022 7 of 7 News from Research & Advisory  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

SSA: EFSF impressed - Agencies ante Portas? Covered Bonds: One successful issue beckons the next. Senior Unsecured: Window for issuances sought