---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-45
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 May 2022 © Helaba | Research & Advisory | 19 May 2022 1 von 7 Research & Advisory Weekly Market Update Primary market environment: Fear of further increases in interest rates, high inflation figures, economic worries and the uncertainties caused by the war in Ukraine are determining market sentiment. Market volatility remains high. A reassessment of the risks is emerging, although there continued to be high oversubscriptions, particularly in the SSA market. Within a week, the colours of our spread indicator have changed. In particular, the increasing red colour shows that there was an increase in spread widening. Apart from covered bonds, senior non-preferred and subordinated bank bonds were remarkably excluded. Primary market barometer Source: Helaba Research & Advisory Overall, the primary environment in the SSA segment can still be de- scribed as good, although the trend towards spread tightening has been interrupted in the recent past. Issu- ers such as the ESM or EIB were able to show high oversubscriptions. In recent days, it has once again be- come apparent that covered bonds with longer maturities, especially if they go beyond 10 years, are difficult to print. On the other hand, the shorter maturity window remains “en vogue” from a risk perspective. After new issues in this segment came to a standstill last week, issuers again made lively use of the opening market window this week. In view of the foreseeable rise in interest rates, higher risk premiums were accepted. Covered Bonds Senior Unsecured SSA Changing play of colors 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 0,79 0,07 -0,22 -2,75 -2,61 European Union 0,00 0,11 -0,12 -0,10 -0,86 -1,31 Germany Covered -0,08 0,02 -0,10 -0,03 0,00 -1,39 EU Covered -0,02 0,01 -0,02 0,01 0,03 -0,41 Banks senior preferred -0,03 0,24 1,20 0,91 1,35 -1,78 Banks senior bail-in (SNP) -0,01 0,00 0,92 0,72 1,25 -1,83 Banks subordinated -0,04 -0,08 0,55 0,42 0,88 -0,74 Supranational -0,04 0,01 -0,13 -0,18 -0,65 -1,07 Agencies 0,00 0,25 -0,05 -0,22 -0,93 -1,26 Sub-Sovereigns Germany -0,02 0,05 -0,14 -0,63 -0,85 -1,91 Sub-Sovereigns -0,02 0,13 0,02 -0,32 -0,65 -1,65 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 May 2022 2 von 7 SSA The SSA segment was dominated by the "E" names, ESM and EIB. Both issues met with brisk demand, so that the issues were oversubscribed 6.4 and 5.8 times respectively. The example of the Export- Import Bank of Korea showed that not every new issue is a sure self-runner. While the 2- and 3-year tranches were placed with slight oversubscriptions (1.2 and 1.3 times), a third issue with a 7-year maturity could not be printed. A corresponding attempt was aborted. Meanwhile, the federal state of Baden-Württemberg invited investors to a presentation of its green issuance programme (23 and 24 May). All in all, the recent dominant trend towards spread tightening has been interrupted, at least temporarily. Outlook: As in the entire bond market, risk aversion is also increasing somewhat in SSAs. Covered Bonds "Demand for covered bonds also declined. It is noticeable that investors are differentiating signifi- cantly more in the issues than was the case in the recent past. It should be emphasized, however, that ten covered bond issues with a volume of EUR 6.1 billion were completed this week alone, including two green bonds (Unicredit Austria (Debut) and BPCE) as well as a social bond from Caffil (EUR 500 million, 12-year maturity). The example of Caffil shows that even an ESG label no longer necessarily ensures high demand: the book was comparatively small with a 1.4-fold oversubscription. On the one hand, the willingness of investors to subscribe to maturities over 10 years is declining again. On the other hand, the issue was in competi- tion with two sub-benchmark transactions (Raiffeisen- verband Salzburg and the Canadian Equitable Bank). The very brisk primary activity this week is probably also to be seen in connection with the ECB’s activity. Many issuers fear that the central bank will further re- duce the purchase programme as of June. With a view to the secondary market, the slightly larger widening trend in peripheral spreads is currently noticeable (see chart). As an example, the development of the Spanish covered bond spreads is noteworthy. In this context, it is worth mentioning in our view that the most important reference interest rate for Spanish mortgages, the Euribor Hipotecario, climbed back into positive territory at the beginning of May for the first Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,000% ESM Aa1 /AAA/AAA 2,000bn 23.06.2027 ms -25 bps 16.05.2022 12,700bn ms - 22 area 1,500% EIB Aaa /AAA/AAA 4,000bn 15.06.2032 ms -19 bps 17.05.2022 23,000bn ms - 17 area 3m€ +100 Bp Export-Import Bank of Korea Aa2 /AA/AA- 0,550bn 24.05.2024 ms +15 bps 17.05.2022 0,650bn 3m€ +20 area 1,375% Export-Import Bank of Korea Aa2 /AA/AA- 0,950bn 24.11.2025 ms +20 bps 17.05.2022 1,200bn ms + 25 area n/a Export-Import Bank of Korea Aa2 /AA/AA- cancelled 24.05.2029 cancelled 17.05.2022 n/a ms + 45 area Source: Bloomberg, Helaba DCM €-SSA-Benchmark-Issues week of 16 May 2022 "This week's primary volume met with only moderate demand. This also left its mark on the secondary mar- ket. From a maturity of 5Y/6Y, the covered bond market is clearly tending towards weakness. Even longer- dated green/social bonds, until recently a safe bank, are no longer a sure self-runner. The swap curves of the periphery continue to trade far too flat. Only demand at the short end continues and is very popular with in- vestors. We are sticking to our cautious assessment". Assessments from the Helaba trading room Periphery spreads with widening tendency ASW-Spreads, iBoxx € Covereds Sources: Refinitiv, Helaba Research & Advisory -1 0 1 2 3 iBoxx € Austria iBoxx € France iBoxx € Germany iBoxx € Netherlands iBoxx € Norway iBoxx € Sweden iBoxx € UK iBoxx € Ireland iBoxx € Italy iBoxx € Portugal iBoxx € Spain iBoxx € weekly change monthly change Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 May 2022 3 von 7 time since 2016. In Spain, as in Italy, mortgage loans are mostly have variable interest rates, although this tends to change for new contracts. Senior Unsecured The primary market for senior unsecured bank bonds has recently picked up surprisingly strongly. After issuance activity had come to a standstill last week due to the significant widening of spreads for the bonds, activity was recently boosted by the tightening of synthetic indices in conjunction with the incipient stabilization of secondary market spreads. This week, a volume of around EUR 10.7 bn has already been issued, albeit at spreads that are markedly up since the beginning of the year due to the unsettled market environment. With the attractive risk premiums on offer and still relativley short maturities, a broader investor base is also mak- ing a determined grab. Outlook: The transaction pipeline is well filled, which is mainly due to the high maturities, high regulatory require- ments for bail-in capital and, last but not least, the upcoming voluntary repayments of the ECB's targeted longer- term refinancing operations (TLTRO III). However, the market environment has noticeably deteriorated again since Wednesday afternoon, but issuers will continue to make use of opening market windows for transactions against the backdrop of foreseeable rising interest rates. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,500% Raiffeisen Bank International AG Aa1 /-/- 0,500bn 24.05.2027 ms +23 bps 16.05.2022 1,300bn ms + 25 area 1,500% UniCredit Bank Austria AG Aaa /-/- 0,500bn 24.05.2028 ms +6 bps  17.05.2022 1,300bn ms + 10 area 1,625% Achmea Bank N.V. - /AAA/- 0,500bn 24.05.2029 ms +11 bps 17.05.2022 0,790bn ms + 13 area 1,750% BPCE SFH Aaa /AAA/- 1,000bn 27.05.2032 ms +9 bps  17.05.2022 1,950bn ms + 13 area 1,500% HSBC Bank Canada Aaa /-/AAA 1,000bn 15.09.2027 ms +13 bps 17.05.2022 1,100bn ms + 13 area 1,750% Banco de Sabadell SA Aa1 /-/- 1,000bn 30.05.2029 ms +16 bps 18.05.2022 1,150bn ms + 18 area 1,375% Hamburg Commercial Bank AG A2 /-/- 0,500bn 27.05.2025 ms +22 bps 18.05.2022 0,625bn ms + 23 area 1,875% CaFFiL Aaa /AA+/- 0,500bn 25.05.2034 ms +12 bps  18.05.2022 0,700bn ms + 14 area 1,500% Raiffeisenverband Salzburg Aaa /-/- 0,300bn 25.05.2027 ms +11 bps 18.05.2022 0,470bn ms + 13 area 1,375% Equitable Bank - /-/AA 0,300bn 27.05.2025 ms +20 bps 18.05.2022 0,300bn ms + 20 area Source: Bloomberg, Helaba DCM €-Covered Bond-Benchmark-Issues week of 16 May 2022 “Despite increasing investors’ interest, also from the real money accounts, it was a quiet and cautious sec- ondary market week. The sell-off phase may have been interrupted, but the current flashpoints remain un- changed in the minds of investors. Ongoing attractive entry opportunities with yields above 3.25 % are used only hesitantly. The wait for further new issues is continuing and is leading to restraint on the secondary mar- kets”. Assessments from the Helaba trading room Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 May 2022 4 von 7 Short news 5/19 Brexit and banks: An exercise by the European Central Bank (ECB), known as “desk mapping,” found that some of the world’s biggest banks haven’t moved enough senior staff into the European Union after Brexit. The ECB will likely urge banks to relocate more senior roles into the EU or take other measures that strengthen local management, people familiar with the process heard by Bloomberg said. 5/19 Banks in Russia: Société Générale closed the sale of Russian unit Rosbank and its insurance businesses in the country to Interros Capital amid Russia's ongoing invasion of Ukraine. SocGen said the sale will lead to a net loss of roughly €3.2 billion, which will reflect in its second-quarter financial statements, and a residual impact of roughly 7 Bp. on its capital ratio from the transaction. 5/18 ECB and Ukraine war: Faced with clouded economic prospects in the wake of the ongoing Ukraine conflict, the ECB urges banks to be prudent, Reuters reported. The European Central Bank's top banking supervisor, An- drea Enria, told the newspaper "Repubblica" on Wednesday that the institutions have been called upon to put their expectations to the test. 5/18 Corporate lending: According to a study by research house Barkow, demand for corporate loans in February 2022 picked up more strongly than at any time since the financial crisis, as reported by Börsenzeitung. According to the authors, this should be primarily driven by the imminent rise in interest rates. 5/16 European Green Bond Standard: In the Committee on Economic and Monetary Affairs, the Members of the European Parliament adopted their negotiating position on the regulation on "European Green Bonds" (EUGBs). The text contains numerous changes compared to the Commission proposal and is significantly stricter. Our as- sessment: Ahead of the trilogue negotiations starting in the coming weeks the Parliament is signalling with the proposal, that there should be only one way forward for EUGBs: a gold standard that better regulates the entire green bond market, instead of just introducing the EuGB label and that reduces so-called "green washing". (see our publication „European banks: Activities becoming ever greener”, dated 29 April 2022) 5/17 EBA with report on NPLs: The European Banking Authority (EBA) published its peer review of how pruden- tial and consumer protection authorities supervise the management of non-performing exposures (NPE) by insti- tutions. The EBA has not identified any significant concerns regarding the supervision practices but makes some general recommendations for further improvements. 5/16 S&P Global Ratings with outlook for European banks: .Europe's 13 global systemically important banks are expected to post "solid but unspectacular" results in 2022 and 2023, according to S&P Global Ratings. This is due Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2.125% National Australia Bank Aa3 /AA-/- 1.000bn 24.05.2028 ms +72 bps 17.05.2022 2.350bn ms + 95 area 2.100% Swedbank AB Aa3 /A+/AA- 1.000bn 25.05.2027 ms +70 bps 18.05.2022 1.550bn ms + 90 area 1.750% BBVA A3 /A-/A- 1.250bn 26.11.2025 ms +60 bps 18.05.2022 1.850bn ms + 80 area 3m€ +100 Bp BBVA A3 /A-/A- 0.500bn 26.11.2025 ms +64 bps 18.05.2022 0.500bn 3m€ +80 area 3.375% BPER Banca S.p.A. Ba3 /-/BB+ 0.500bn 30.06.2025 ms +245 bps 18.05.2022 0.850bn ms + 265 area Source: Bloomberg, Helaba DCM €-Senior Preferred-Benchmark-Issues week of 16 May 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2.500% Nordea Bank Abp A3 /A/AA- 1.000bn 23.05.2029 ms +105 bps 16.05.2022 2.100bn ms + 125 area 2.125% ING Groep N.V. Baa1 /A-/A+ 1.500bn 23.05.2026 ms +110 bps  16.05.2022 3.000bn ms + 135 area 3.250% Deutsche Bank AG Baa2 /BBB-/BBB+ 0.500bn 24.05.2028 ms +193 bps 17.05.2022 3.000bn ms + 215 area 2.750% BNP Paribas SA Baa1 /A-/A+ 1.500bn 25.07.2028 ms +137 bps 18.05.2022 3.500bn ms + 160 area Source: Bloomberg, Helaba DCM €-Senior Non-Preferred-Benchmark-Issues week of 16 May 2022 Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 May 2022 5 von 7 to the banks' geographic and business diversification, their coming through COVID-19 largely unscathed and their having adequate buffers in place. 5/15 Banks‘ activities in Russia: Both UniCredit and Citigroup are looking at potential asset swaps with financial companies in Russia to avoid incurring hefty losses on their local operations as they aim to exit the country, the Financial Times reported, citing people with knowledge of the matter. \* 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 87,25 3,47% -3,78% iBoxx € Cov. Germany\* -1,02 0,19 -1,94 iTraxx Senior Financial 106,4 2,70% 21,48% 10J-Yield 1,01 0,01 0,15 iBoxx € Cov. Bonds\* 4,68 0,33 -1,85 iBoxx € Supranational 103,8 0,84% -0,97% Swap 10J 1,74 -0,04 0,18 iBoxx € Banks PS 91,94 -0,01% -1,34% iBoxx € Agencies 97,7 0,19% -0,66% iBoxx € Germany 101,59 -0,1% -1,2% iBoxx Banks NPS 94,02 0,3% -1,8% iBoxx € Sub-Sov. Germany 99,0 0,56% -0,65% iBoxx € EU 101,04 0,99% -1,29% iBoxx Banks Subordinated 84,84 0,41% -2,27% iBoxx € Sub-Sovereign 97,4 0,53% -1,12% Leisure tip for the weekend: Japan-Days Düsseldorf Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.japantag-duesseldorf-nrw.de/en With the slogan "Together for Peace and Friendship", the unique Japan Day will take place in Düsseldorf on 21 May 2022. Guests can expect a diverse range of music, dance, sports and culinary delights as well as numerous infor- mation and hands-on tents along the Rhine promenade. Traditional Japan as well as modern Japanese pop culture and typical sports will be presented on three stages. Finally, the spectacular fireworks on the Rhine can be enjoyed in the late evening. More information: Japan-Days Düsseldorf Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 May 2022 6 von 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 Mai. 21 Jul. 21 Sep. 21 Nov. 21 Jan. 22 Mrz. 22 Mai. 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 0 20 40 60 80 100 120 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 -4 -2 0 2 4 6 8 Mai.21 Jul.21 Sep.21 Nov.21 Jan.22 Mrz.22 Mai.22 EUR Covered Covered Germany Senior Primary volumes Senior Unsecured: 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 0 20 40 60 80 100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2022 Senior Non- Preferred 2021 Senior Non-Preferred 2022 Senior Preferred 2021 Senior Preferred 0 50 100 150 200 0 50 100 150 200 Mai.21 Jul.21 Sep.21 Nov.21 Jan.22 Mrz.22 Mai.22 Banks Subordinated Banks Senior Bail-in Banks Senior Preferred Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 19 May 2022 7 von 7 News from Research & Advisory  WOCHENAUSBLICK (ERSCHEINT AM FREITAG ZWISCHEN 12 - 14 UHR)  MÄRKTE UND TRENDS MAI 2022 (VIDEO)  MÄRKTE UND TRENDS MAI 2022 (PUBLIKATION)  IM FOKUS: GOLD  IM FOKUS: IMMOBILIEN – WIE ROBUST IST DER DEUTSCHE IMMOBILIENMARKT  EUROPÄISCHE BANKANLEIHEN: AKTIVITÄTEN WERDEN IMMER GRÜNER  FINANZPLATZ: BANKBESCHÄFTIGUNG IN FRANKFURT NÄHERT SICH WENDEPUNKT  IM FOKUS: BUNDESLÄNDER "REGIONALES WACHSTUM ERHOLT SICH NUR LANGSAM  IM FOKUS: LÄNDERRATING UND NACHHALTIGKEIT  IM FOKUS: POLEN: KONJUNKTUR IM SCHATTEN DES KRIEGS  IM FOKUS: ITALIEN: CHANCEN MÜSSEN GENUTZT WERDEN  IM FOKUS: EUROPÄISCHE BANKEN: UKRAINE-KRISE BELASTET AUSBLICK VOR ALLEM INDIREKT  COVERED-BOND-GESETZ IN ÖSTERREICH (VIDEO)  COVERED-BOND-GESETZ IN FRANKREICH UND DEUTSCHLAND (VIDEO)  COVERED-BOND-GESETZE: UMSETZUNG DER EU-REGELUNGEN (VIDEO) Team of authors Publisher and editorial office Helaba Research & Advisory Editor: Sabrina Miehs, CESGA 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: Not every issue is a sure-fire success any more. This week's new covered bond issues met with only moderate demand. Primary market for senior unsecured bank bonds: momentum in the sun.