--- title: "Primary market update on senior unsecured bank bonds Q3 2024" url: https://www.helaba.com/en/primary-market-update-senior-unsecured-bank-bonds-q3-2024 type: dd_research language: en updated: 2026-09-28 keywords: Credit, Credit Special --- # Primary market update on senior unsecured bank bonds Q3 2024 Focus on: Credit 4 October 2024 © Helaba | Research & Advisory | 4 October 2024 1 von 3 Research & Advisory Senior unsecured bank bonds Primary market update 3rd quarter 2024 The primary market for senior unsecured bank bonds in EUR benchmark format was very strong in Q3 2024 despite the summer break. Total new issuance reached almost EUR 50 billion, an increase of 21% sequentially and 46% compared to Q3 2023. Compared to the average of the last six years, it was more than half as high. In the first nine months of 2024, the volume of new issuance totalled EUR 157 billion and was therefore only 10% below the previous year's record figure, but 18% above the average of the last six years. The primary market for non-preferred senior bonds was particularly active in Q3 2024. At around EUR 32 billion, new issuance volumes in this segment doubled compared to the same quarter last year. At around EUR 17 billion, preferred transactions in Q3 2024 were roughly in line with the same quarter last year. We see this as evidence that regulatory-driven non-preferred transactions continue to be well received by investors. At the same time, TLTRO funding no longer plays a significant role as the programme has been largely repaid to the ECB. By country, banks from the UK, Spain and the Netherlands were particularly active during the quarter. There was also a relatively high volume of activity from Germany. The French banks, which are very active on the capital markets and are subject to high capital requirements due to their size, issued comparatively little, probably be- cause they had already extensively executed their issuance plans in the first quarter. We have also noticed an in- crease in the proportion of floating-rate issues (20% most recently) and a lengthening of maturities, both of which we believe reflect the changed interest rate environment. Our issuance forecast of EUR 180 billion for the full year 2024 could be exceeded following the strong third quar- ter. Long maturities remain the main driver for another strong year of senior unsecured bank issuance. In addition, customer deposits continue to decline as more attractive investment alternatives become available. Regulatory requirements remain a major driver of drive non-preferred issuance. In the case of fixed-to-float bonds, maturities Dr. Susanne Knips Senior Credit Analyst T 069/91 32-32 11 EUR benchmark issuance\* Q3 2024: Ready for take off EUR billions (senior unsecured issuance volume, fix and floating) \* 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 Q3 Q1 Q2 Q4 Focus on: Credit © Helaba | Research & Advisory | 4 October 2024 2 von 3 in 2025 are also likely to become relevant, as the bonds can be called before they lose their MREL eligibility one year before maturity (see “Regulatory call option for non-preferred bonds becomes standard“). Non-preferred share rising to 62 % French banks still in the lead EUR billions (benchmark issuance volume by payment rank) EUR billions (benchmark issuance volume by country, 9M 2024) 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 9M 2024 Non-preferred Preferred SP 13% FR 11% EN 10% US 10% IT 8% GE 8% NE 7% CA 6% DE 3% SW 3% others 21% Floaters regain in attractiveness Regulatory call option on the decline EUR billions (benchmark issuance volume by coupon type) EUR billions (benchmark issuance volume by maturity type) 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 9M 2024 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 9M 2024 Fixed-to-float Bullet Longer maturities gain in importance Stable rating mix EUR billions (benchmark issuance volume by maturity) EUR billions (benchmark issuance volume by rating\*) Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory \*Moody’s rating at time of issuance 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 9M 2024 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 9M 2004 AA A BBB BB others Focus on: Credit © Helaba | Research & Advisory | 4 October 2024 3 von 3 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 Tel. +49 69/91 32-20 24 Internet: https://www.helaba.com/int/ Disclaimer This publication was very carefully re- searched and prepared. However, it con- tains analyses and forecasts regarding current and future market conditions that are for informational purposes only. The data are based on sources that we con- sider reliable, though we cannot assume any responsibility for the sources being accurate, complete, and up to date. All statements in this publication are for in- formational purposes. They must not be taken as an offer or recommendation for investment decisions. Share of green issuance stable High level of maturities in 2024\* EUR billions (benchmark issuance volume by ESG instrument indicator) EUR billions (benchmark maturity volumes) Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory \*slight deviation from new issues Sources: Bloomberg, 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 9M 2024 Classic Green Social Sustain 10% 12% 12% 24% 25% 26% 25% 0 50 100 150 200 250 0 50 100 150 200 250 2021 2022 2023 2024 2025 2026 2027 Sign up for our newsletter here: https://news.helaba.de/research/ Strong issuance activity in Q3 2024 driven by non-preferred transactions. Banks from the UK, Spain, the Netherlands and Germany in particular very active. Our issuance forecast of EUR 180 billion for the full year 2024 should be easily achievable.