---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-36
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 18 August 2022 © Helaba | Research & Advisory | 18 August 2022 1 of 7 Research & Advisory Weekly Market Update Primary market environment: Volatility and risk aversion are on the rise again on the markets. Energy prices continue to rise, coal is at a record high, economic fears are doing the rounds and inflation concerns persist. According to ECB Director Schnabel, the outlook has not improved compared to July, so she favours another big rate hike in September. The short-term increase in market volatility and risk aversion can also be seen in our spread indicator. However, most recent spread movements also reflect the recent significant revival of the primary market. Primary market barometer Sources: Helaba Research & Advisory It seems that issuers and investors alike have returned to the market strengthened from the shorter-than- expected summer break. KfW's issue met with a very good response. A NRW municipal bond (mid swap +25, bid-to-cover ratio 1.2) was also placed. The summer break in the covered bond segment ended faster than ex- pected. This week's issues met with lively investor interest, resulting in high oversubscription rates. The mar- ket thus once again underlines its ab- sorptive capacity. The reporting season has largely come to an end, and the summer break seems to be over relatively early. In the senior sector, there was some new material this week. Issuers will probably continue to take ad- vantage of market windows for trans- actions in the coming week. Covered Bonds Senior Unsecured SSA Uncertainties increase again in the short term 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 | 18 August 2022 2 of 7 SSA Summer temperatures continue to domi- nate. However, the summer break in the SSA segment already seems to be over. On the one hand, it can be assumed that many SSA addresses still have refinancing needs; on the other hand, recently tighter spread levels and lower interest rates com- pared to the interim yield highs in June are playing a role. This week, the 10-year NRW city bond (EUR 125 million, MS+24) and the KfW 5-year bond (EUR 5 bil- lion, MS-31) (books > EUR 22.5 billion) were success- fully placed. Outlook: We expect further transactions in the coming days. While the federal states are currently quiet, the EFSF has already sent out RfPs (Request for Pro- posals), so we currently expect a placement on Tues- day. Covered Bonds The summer break also ended impressively in the covered bond segment. This week, no less than seven covereds, three today alone, were very successfully brought to the market. As in previous years, Berlin Hyp heralded the end of the dormant phase and issued a 3-year green bond with a volume of EUR 1 billion at MS-4. The deal was 4.5 times oversubscribed and attracted more than 100 orders. At the same time, the Norwegian SR Boligkreditt became active. A bond with EUR 1 billion and a maturity until March 2028 was placed at MS+12, 3 bps below guidance. On Wednesday, Landesbank Berlin followed with a sub-benchmark (3 years, EUR 300 m, MS -3) and Bawag (10 years, MS+20) with a jumbo covered bond. Such a high placement volume has never been seen before for a covered bond from Austria. Today Münchener Hyp issued a 10-year benchmark (MS+5, books > EUR 1.7 bn), Jyske Realkredit (MS+14) came with a 7-year tranche and SpareBank 1 Boligkreditt (EUR 1.25 bn, MS+10, books > EUR 2 bn) was on the primary market with a 5-year covered. For all of them, the final spread was narrowed compared to the first forecast. In addition to the activities on the primary market, papers from Scan- dinavia, Australia and Canada recently moved back into focus in secondary trading. From a relative value perspec- tive, Spanish covereds have looked more attractive again than bonos for quite some time. However, according to our trading colleagues, liquidity is relatively thin overall, so it will be difficult to gain ground here. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,950% NRW Staedteanleihe No. 7 - /-/- 0,125bn 24.08.2032 ms +25 bps 16.08.2022 0,150bn ms + 25 area 1,250% KFW Aaa /AAA/AAA 5,000bn 30.06.2027 ms -31 bps 17.08.2022 22,500bn ms - 29 area Sources: Bloomberg, Helaba DCM €-SSA-Issues week of 15 August 2022 "The summer holidays in the covered bond market were quite short this year. After only two weeks, we have seen increased market activity from issuers over the course of this week. The still well-supported market and the search for quality core product continues. Therefore, it is not surprising that so far all transactions are going well to very well and that, in addition, no distortions can be observed on the secondary markets. The "sweet spot", which has been described here several times, is now also extending to other geographical re- gions of the world, with Scandinavian, Canadian and Australian securities also picking up on a weekly basis! " Comment from the Helaba trading floor Long-term interest rates recently declining again Government bonds (yields), % Quellen: Refinitiv, Helaba Research & Advisory Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 August 2022 3 of 7 Outlook: For the further trend development, the activity on the primary market must be kept an eye on. In addi- tion, possible seasonal distortions (with a view to the end of the year) as well as the many uncertainties must be included in the assessment. From a trading perspective, cautious action at the long/ultralong end does not seem to be the worst option. The coming days and weeks promise to remain very busy overall. On the one hand, high maturities will make their contribution, on the other hand, the market recently underlined its good absorption ca- pacity. The ECB also remains active: Within the framework of the APP, it increased its covered bond portfolio (CBPP3) by EUR 315 million in the last reporting week. Senior Unsecured Due to the public holiday (Assumption Day), markets remained closed in many European countries on Monday. Thereafter, however, an impressive revival of the primary market for senior unsecured bank bonds was observed. The blackout period due to the reporting season has largely ended and the summer break also seems to lose influence as a limiting factor earlier than usual. As expected, the market showed receptiveness, so that on Wednesday senior non-preferred transactions in EUR benchmark format from Landesbank Hessen-Thüringen, Lloyds Banking Group and Nordea Bank were successfully placed. Earlier, Swedbank had created good sentiment with the issuance of a Tier 2 bond. Issues in other curren- cies (USD, AUD) also continued to come to the market. Long maturities seem to be possible again, as evidenced by the issues of Nordea (10Y) and Lloyds (8NCY). Today, KBC Group (8Y) and Santander UK (6Y) are in the market with further senior non-preferred transactions, and Crédit Agricole (7Y) and Luminor Bank (1Y) with preferred bonds. The outlook for the profits of European banks is bur- dened by inflation and recession concerns. In the now largely completed reporting season for Q2 2022, the institutions at least showed encouragingly robust credit ratings. Profits were quite stable; the results of most banks were even above the consensus expecta- tions surveyed by Bloomberg. It is particularly encour- aging that the outperformance was driven by high- quality earnings components and persistently low problem loan ratios. In particular, net interest income was driven by rising interest margins in the changed interest rate environment and continued buoyant loan demand. (see our publication "European banks – Net interest income rises sharply in Q2 2022” of August 16, 2022). Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,250% Berlin Hyp AG Aaa /-/- 1,000 Mrd. 25.08.2025 ms -4 Bp  16.08.2022 5,800 Mrd. ms + 1 area 1,625% SR-Boligkreditt AS Aaa /-/- 1,000 Mrd. 15.03.2028 ms +12 Bp 16.08.2022 1,650 Mrd. ms + 15 area 1,500% Landesbank Berlin Aaa /-/- 0,300 Mrd. 15.05.2026 ms -3 Bp 17.08.2022 1,600 Mrd. ms + 2 area 2,000% BAWAG P.S.K. Aaa /-/- 1,250 Mrd. 25.08.2032 ms +20 Bp 17.08.2022 2,200 Mrd. ms + 24 area 1,875% Jyske Realkredit A/S - /AAA/- 0,500 Mrd. 01.10.2029 ms +14 Bp 18.08.2022 0,625 Mrd. ms + 16 area 1,875% Münchener Hypothekenbank eG Aaa /-/- 1,000 Mrd. 25.08.2032 ms +5 Bp 18.08.2022 2,200 Mrd. ms + 9 area 1,750% SpareBank 1 Boligkreditt Aaa /-/- 1,250 Mrd. 25.05.2027 ms +9 Bp 18.08.2022 1,900 Mrd. ms + 14 area Quellen: Bloomberg, Helaba DCM €-Covered Bond-Issues week of 15 August 2022 Unexpectedly strong jump in net interest income EUR (billions) EUR (billions) \*selection of European banks (Banco Santander, BBVA, Commerzbank, Deutsche Bank, ING Group, Nordea, Unicredit, SEB, Swedbank) Sources: Bloomberg, Helaba Research & Advisory 2 3 4 5 6 7 8 9 10 15 17 19 21 23 25 27 29 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 net interest income (lhs) credit risk provision expenses (rhs) Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 August 2022 4 of 7 Outlook: In the coming week, the summer break is likely to play an even smaller role. Institutions have not yet ful- filled their issuance plans for this year. High maturities and strict regulatory requirements for bail-in capital are creating further refinancing needs. However, the market remains volatile and the right timing a challenge. If the market environment remains stable, we expect further senior unsecured issues in the coming days. Short news 8/17 Commercial real estate financing: The ECB's banking regulator published an article reporting on the CRE on-site review campaign that has been ongoing since 2018 and the CRE targeted review of commercial real estate financing launched in 2021. 8/16 New UK covered bond bank: Perenna, a London-based fintech company building the UK's first covered bond bank, has announced that it has received its banking licence, with restrictions, from the Prudential Regulation Au- thority and the Financial Conduct Authority. Perenna is now an authorised bank and, once the restrictions are lifted and its banking infrastructure confirmed, will offer long-term fixed rate loans and eventually a full range of mortgage products. 8/15 European bailout fund: Financial institutions in Germany will have to pump more money into the European bailout fund for ailing banks, Handelsblatt reported, citing German financial supervisory authority BaFin. The bank levy, paid by a total of 1,319 financial institutions in Germany, will rise to 3.38 bn EUR in 2022 from 2.49 bn EUR in 2021, BaFin said. 8/15 Russia exposure: A number of global banks including U.K.-based Barclays PLC and Germany's Deutsche Bank AG have in recent days offered to facilitate transactions in Russian government and corporate bonds after the U.S. Treasury allowed debt holders to wind down their positions, Reuters reported. Approximately 40 bn USD of Rus- sian sovereign bonds were outstanding before its invasion of Ukraine and about half of those were held by foreign funds. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,500% Credit Agricole SA Aa3 /A+/AA- 1,000bn 29.08.2029 ms +77 bps 18.08.2022 1,500bn ms + 95 area 5,000% Luminor Bank AS Baa1 0,300bn 29.08.2023 ms +375 bps 18.08.2022 0,450bn 5,25% area Sources: Bloomberg, Helaba DCM €-Senior Preferred-Issues week of 15 August 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,625% Helaba A2 /-/A+ 0,650bn 24.08.2027 ms +100 bps  17.08.2022 0,800bn ms + 115 area 2,875% Nordea Bank Abp A3 /A/AA- 0,750bn 24.08.2032 ms +110 bps 17.08.2022 0,835bn ms + 125 area 3,125% Lloyds Banking Group plc A3 /BBB+/A 1,000bn 24.08.2030 ms +150 bps 17.08.2022 2,400bn ms + 170 area 3,000% KBC Group N.V. Baa1 /A-/A 0,750bn 25.08.2030 ms +125 bps 18.08.2022 1,000bn ms + 135 area t.b.d. Santander UK PLC Baa1 /BBB/A 0,750bn 25.08.2028 ms +185 bps 18.08.2022 1,300bn ms + 200 area Sources: Bloomberg, Helaba DCM €-Senior Non-Preferred-Issues week of 15 August 2022 “The summer break ended relatively early this year: in the covered bond segment, new issuance started again this week, and there is also some new material in the senior segment. Sentiment is positive and the market appears receptive. Investors have accumulated enough cash to look forward to the new issues. It will be excit- ing to see how the new issues develop in the coming days. Comment from the Helaba trading floor Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 August 2022 5 of 7 8/12 Covered Bond Rating Alpha Bank: Fitch Ratings has placed Alpha Bank S.A.'s (Alpha, B/Positive/B) covered bonds' 'BBB-' rating on Rating Watch Positive 8/12 Ukraine rating downgrades: S&P Global Ratings and Fitch Ratings downgraded Ukraine's foreign currency ratings to ‘selective default’ and ‘restricted default’ respectively, with both rating agencies saying they consider the country's recent debt restructuring as distressed. Ukraine's foreign creditors recently approved its request to defer payments on international bonds worth almost $20 billion for two years, which will help the country save $6 billion on payments, Reuters noted. 8/12 BaFin on creditworthiness in Germany: German banks may face serious headwinds as loan defaults are likely to increase faster than expected amid the rapid rise in interest rates and inflationary pressures, Raimund Röseler, executive director of financial supervisory authority BaFin, told Handelsblatt. 8/12 Russia/ Ukraine: A European bank has agreed to unblock a payment for the transit of Russian oil through Ukraine to central Europe after the deliveries were suspended earlier in August due to unpaid transit fees, Reu- ters reported. The flows of Russian oil to the Czech Republic resumed Aug. 12 after the payment was unblocked, and flows to Hungary and Slovakia were relaunched a few days earlier, the news agency noted. 8/12 Russia/ Ukraine: Ukraine is urging the U.S. administration to impose sanctions on all Russian private banks, Oksana Markarova, Ukraine's ambassador to the U.S., told Bloomberg News in an interview. Ukraine wanted the U.S. to add a couple of banks every week to its sanctions list, Markarova said. The U.S. has so far sanctioned about 80% of the total banking assets in Russia, a government official told Bloomberg. \* 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 132 -0,02% 6,80% iBoxx € Cov. Germany 4,3 -1,2 -0,5 iTraxx Senior Financial 128,8 -2,2 9,6 10Yr-Yield 1,08 0,20 -0,18 iBoxx € Cov. Bonds 12,4 -1,3 -0,3 iBoxx € Supranational 1,2 -1,80 -2,68 Swap 10J 1,88 0,12 -0,16 iBoxx € Banks PS 66,3 0,3 -12,4 iBoxx € Agencies -16,3 0,86 -4,08 iBoxx € Germany -74,6 6,10 -3,21 iBoxx Banks NPS 105,7 0,9 -9,7 iBoxx € Sub-Sov. Germany 2,2 -2,77 -2,20 iBoxx € EU -0,1 -1,47 -4,11 iBoxx Banks Subordinated 180,7 -2,1 -44,2 iBoxx € Sub-Sovereign 14,5 -1,71 -4,17 Leisure tip for the weekend: Zeiss-Planetarium Jena Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.planetarium-jena.de The Zeiss-Planetarium in Jena is the world's oldest planetarium and opened in 1926. It is a projection planetarium on whose inside planets and fixed stars are projected. In addition to star projections, the program includes astronom- ical themes, educational and family programs, as well as music shows. In addi- tion, there are regularly changing special events such as concerts, audio plays and lectures. The centerpiece is the Model VIII "Universarium" star projector, which was installed in 1996 and reproduces the firmament in a deceptively re- alistic way. Opening hours and admission prices can be found under the fol- lowing link: Prices Zeiss-Planetarium More information: Zeiss-Planetarium Jena Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 August 2022 6 of 7 Chartbook SSA, Covered Bonds, Senior Unsecured SSA: 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 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 -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 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 -4 -2 0 2 4 6 8 10 12 14 Aug.21 Okt.21 Dez.21 Feb.22 Apr.22 Jun.22 Aug.22 EUR Covered Covered Germany Senior 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 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 Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 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: NRW City Bond and KfW end short summer break. Covered Bonds: Back to Business. Senior Unsecured: Primary market clearly revived after the end of the reporting season.