---
title: "Focus on Credit: Primary market update on senior unsecured bank bonds"
url: https://www.helaba.com/en/focus-credit-primary-market-update-senior-unsecured-bank-bonds
type: dd_research
language: en
updated: 2026-09-28
keywords: Credit, Credit Special
---

# Focus on Credit: Primary market update on senior unsecured bank bonds

Focus on: Credit 3 April 2025 © Helaba | Research & Advisory | 3 April 2025 1 of 4 Research & Advisory Senior unsecured bank bonds: Primary market update Q1 2025 Euro-denominated senior unsecured bank bonds in benchmark format closed out the first quarter of 2025 with a record issuance volume of around € 83 billion - topping even the previous peak in Q1 2023 and representing a 21 % increase over the same period of the previous year. It exceeded the average figure of the last seven opening quarters by almost 50 %. The key drivers for the particularly brisk primary market activity were, in our view, a high level of maturities and a favourable market environment amid considerable uncer- tainty over broader prospects going forward. Regulatory requirements also remained a decisive factor, with the volume of senior non- preferred (SNP) bonds rising by 19 % year-on-year to € 51.4 billion in Q1 2025, maintaining their stable share of just over 60 %. It is likely that SNP maturities, which have meanwhile grown significantly, con- tributed to this. Another factor that arguably had a supportive effect on primary market activity was muted growth in deposits within an environment of higher interest rates. However, TLTROs no longer play a role in banks' refi- nancing activities, with the last tranche having been repaid to the ECB on 18 December 2024. In a country breakdown, US banks accounted for the largest share of new issuance volume in the first quarter of 2025, closely followed by banks from the UK, France, Germany and the Netherlands. The principal drivers here were banks that are particularly active on capital markets and subject to tougher capital requirements due to their size. Another notable trend is the increasing proportion of floating-rate notes (26 % in Q1 2025 vs. 19 % in 2024 as a whole). As a result of the current yield curve, issues were concentrated on medium-term durations. We are confident in our expectation that 2025 will be another strong year for senior unsecured bank bond is- suance in euro benchmark format and adhere to our forecast of a total volume of around € 200 billion for the year as a whole (see our Primary Market Update of 7 January 2025). This is likely to be fuelled, in particular, by a sig- nificant uptick in maturities. Additional impetus will be provided by slower growth in customer deposits given Dr. Susanne Knips Senior Credit Analyst T +49 69/91 32-32 11 EUR benchmark issues\* Q1 2025: A record-breaking quarter EUR benchmark issuance volume (unsecured, fixed and floating) in EUR (billions) \*issuance volume of at least EUR 500 million Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 2025 Q1 Q2 Q3 Q4 Focus on: Credit © Helaba | Research & Advisory | 3 April 2025 2 of 4 the re-emergence of alternative investment opportunities offering more attractive returns. Furthermore, having already bottomed out, we anticipate that demand for loans will rise as interest rates decline. At the same time, regulatory requirements remain an important factor for SNP issues. While minimum ratios for total regulatory capital have been met, a high level of maturities - and their corresponding refinancing - have meanwhile become a key determinant here, as well. Due to a more rapid increase in maturities in 2026, it is conceivable that banks will again seek to pre-fund maturities from the second half of 2025 at the latest. In a volatile, crisis-hit market environ- ment, getting the timing right remains a challenge and any open windows in the market will be actively ex- ploited, even at higher spread levels. Non-preferred issues maintain stable 62 % share US banks the largest issuers EUR benchmark issuance volume by payment rank in EUR (billions) EUR benchmark issuance volume in Q1 2025 by country Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 Q1 2025 Non-preferred Preferred US 13% UK 11% FR 9% GE 10% NE 9% CA 7% SW 6% SP 5% IT 5% DE 4% other 21% Floating-rate issues more interesting again Popularity of regulatory call option falls EUR benchmark issuance volume by coupon type in EUR (billions) EUR benchmark issuance volume by maturity type in EUR (billions) Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 Q1 2025 Fix Floating 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 Q1 2025 Fixed-to-float Bullet Focus on: Credit © Helaba | Research & Advisory | 3 April 2025 3 of 4 Medium-term durations dominate maturities Ratings reflect strong asset quality EUR benchmark issuance volume by maturity in EUR (billions) EUR benchmark issuance volume by rating\* in EUR (billions) Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 Q1 2025 1Y-3Y 3Y-5Y 5Y-7Y 7Y-10Y 10Y-15Y 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 Q1 2025 AA A BBB BB other Noticeable decline in share of green issuance High level of maturities in 2025\* EUR benchmark issuance volume by ESG criterion in EUR (billions) EUR benchmark maturity volumes in EUR (billions) wohl Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory \* slight deviation in database from new issues Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 2018 2019 2020 2021 2022 2023 2024 Q1 2025 Classic Green Social Sustain 10% 12% 12% 24% 25% 26% 19% 27% - 20 40 60 80 100 120 140 160 180 200 220 240 260 0 20 40 60 80 100 120 140 160 180 200 220 240 260 2022 2023 2024 2025 2026 2027 2028 Focus on: Credit © Helaba | Research & Advisory | 3 April 2025 4 of 4 Publisher and editor Helaba Research & Advisory Editor: Stefan Rausch Corporate Research & Advisory Publisher: Dr. Gertrud R. Traud Chief Economist/ Head of Research & Advisory Neue Mainzer Str. 52-58 60311 Frankfurt am Main Germany T +49 69 / 91 32 – 20 24 Internet: www.helaba.com Disclaimer This publication was very carefully re- searched and prepared. However, it con- tains analyses and forecasts regarding cur- rent and future market conditions that are for informational purposes only. The data are based on sources that we consider relia- ble, though we cannot assume any respon- sibility for the sources being accurate, com- plete, and up to date. All statements in this publication are for informational purposes. They must not be taken as an offer or rec- ommendation for investment decisions. Sign up for our newsletter here: https://news.helaba.de/research/

New issuance volume in Senior Unsecured Bank bonds reached new record in Q1 2025. Both high maturities and favorable market environment were main drivers. We feel confirmed in our projection of an issuance volume of roughly 200 bn EUR in fiscal year 2025.