---
title: "Primary Market Update EUR benchmark bank bonds: Q1 2024"
url: https://www.helaba.com/en/primary-market-update-eur-benchmark-bank-bonds-q1-2024
type: dd_research
language: en
updated: 2026-09-28
keywords: Credit, Credit Special
---

# Primary Market Update EUR benchmark bank bonds: Q1 2024

Focus on: Credit 3 April 2024 Research & Advisory © Helaba | Research & Advisory | 3 April 2024 1 of 6 Primary market update EUR benchmark bank bonds: Q1 2024 sk/ The volume of EUR benchmark senior unsecured bank bonds issued in the first quarter of 2024 fell by 14% year-on-year to EUR 68bn. However, 2023 was a record year. Compared to the average of the last eight years, the primary market volume in the first quarter of 2024 was around 30% higher. The year-on-year decline was driven by preferred issuance, which was around 40% lower than in the first quarter of 2023. In contrast, non-preferred issuance increased by a further 14% compared to the already very strong previous year, reaching a record level. While preferred issuance in January this year was well below the very strong level of last year and was particularly weak in February and March 2024, non-preferred issuance was comparatively robust in February and March. As a result, the proportion of fixed-to-floating securities driven by regulation rose from 43% in 2023 to 67% in the first quarter of 2024. As usual, the market was dominated by French banks, which are very active on the capital markets and have high capital requirements due to their size. It is also worth noting the rising proportion of floating-rate bonds (19% at last count) and the increase in years to maturity, both of which we believe reflect the changed in- terest rate environment. For 2024 as a whole, we now expect issuance of up to EUR 200 bn (2023: EUR 206 bn). This is slightly lower than in our last primary market update in January (EUR 220bn), but still comparatively high. High maturities remain the main driver. In addition, customer deposits are declining as higher interest rates make investment alternatives more attractive. TLTRO refinancing is unlikely to play a major role now that the programme has largely been repaid to the ECB, as evidenced by the low level of preferred issues in the first quarter of 2024. For senior non-preferred issues, on the other hand, regulatory requirements will remain key. In the case of fixed-to-floating bonds, the ma- turities in 2025 are also likely to be relevant, as the bonds can be called before they lose their eligibility for the regulatory minimum capital ratio MREL one year before maturity (see Regulatory call option for non-preferred bonds becomes standard). Timing remains a challenge in the volatile and still crisis-ridden market environment, and open market windows will be actively used even at wider spread levels. cs/ Covered bonds with a high volume of around EUR 75 bn were issued in the first quarter (same quarter last year: EUR 89 bn). This represents almost 47% of our annual forecast of EUR 160bn. This impressive quarterly result was not expected by many market participants, including ourselves. A key reason for this is likely to have been the pre- ferred use of collateralised paper by issuers following the redemption of bonds from the central banks' liquidity EUR benchmark issuance\* Q1 2024: Another strong start to the year EUR billions (fixed and variable rate, covered and senior unsecured issuance volume) \* issuance volume of at least EUR 500 million Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 50 100 150 200 250 300 350 400 0 50 100 150 200 250 300 350 400 2018 2019 2020 2021 2022 2023 2024 Q3 Q1 Q2 Q4 Focus on: Credit – Primary Market Update Banks © Helaba | Research & Advisory | 3 April 2024 2 of 6 programmes. The void left by the end of quantitative easing has been excellently filled by global asset managers. Overall, it is worth noting that the high number of new issues was well received by the market. A key theme was also the strong interest shown by buyers in bonds outside the "core" countries. Germany was the leading issuer with a share of 26%, followed by France (18%). Issuance from Italy (8%) increased, while Spain's performance was weaker than in the same period last year. The share of bonds with a sustainability component in the first quarter of 2024 was 10%, up from 8% in 2023. Primary market momentum is likely to slow in the second quarter, as has been the case regularly in recent years. 1. Senior unsecured bonds Q1 2024: Slight decline at a high level French banks remain in the lead EUR billions (cumulative benchmark issuance volume) EUR billions (benchmark issuance volume by country, Q1 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 2024 Q1 H1 9M FY FR 21% ES 14% US 10% DE 9% GB 8% NL 8% IT 7% CA 4% Others 19% Non-preferred share rising to 63 % Regulatory call option dominates EUR billions (benchmark issuance volume by payment rank) 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 Q1 2024 Non-preferred Preferred 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 Q1 2024 Fixed-to-float Bullet Focus on: Credit – Primary Market Update Banks © Helaba | Research & Advisory | 3 April 2024 3 of 6 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 Q1 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 Q1 2024 AA A BBB BB Others Share of green emissions drops to 6% 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 Q1 2024 Classic Green Social Sustain 10% 12% 12% 24% 25% 25% 6% 0 50 100 150 200 250 0 50 100 150 200 250 2021 2022 2023 2024 2025 2026 2027 Floaters regain their attractiveness EUR billions (benchmark issuance volume by coupon type) 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 Q1 2024 Fix Floating Focus on: Credit – Primary Market Update Banks © Helaba | Research & Advisory | 3 April 2024 4 of 6 2. Covered Bonds Aaa ratings clearly in the majority Sustainable covered bonds: slight increase EUR billions (benchmark issuance volume by rating\*) EUR billions (benchmark issuance volume by ESG instrument indicator) \*Moody’s rating at time of issuance Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Aaa Aa1 Aa2 Aa3 Others 0 40 80 120 160 200 240 280 2018 2019 2020 2021 2022 2023 Q1 2024 Classic Green Social Sustain 12 % 13 % 13 % 25 % 8 % 10 % 8 % Issue volume surprisingly high in Q1 2024 Maturities lower than last year (EUR 135.7bn) EUR billions (cumulative benchmark issuance volume) EUR billions (benchmark maturity volumes by country) Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 40 80 120 160 200 240 2018 2019 2020 2021 2022 2023 2024 Q1 H1 9M FY 0 5 10 15 20 25 30 35 0 5 10 15 20 25 30 35 2024 2025 2026 Total Volume: 2024: EUR 120,7bn 2025: EUR 139,2 bn 2026: EUR 157,3 bn Germany continues to set the tone Maturities of 6-10 years preferred % (of benchmark issuance volume by country, Q1 2024) % (of benchmark issuance volume by maturity) Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory DE 26% Others 22% FR 18% AT 11% IT 8% NL 5% FI 4% NO 3% CA 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 0% 10% 20% 30% 40% 50% 60% 0-3Y 4-5Y 6-10Y 11Y+ 2022 2023 2024 Focus on: Credit – Primary Market Update Banks © Helaba | Research & Advisory | 3 April 2024 5 of 6 3. ECB’s targeted longer-term refinancing operations TLTRO III: Holdings being run down Overview of ECB’s targeted longer-term refinancing operations Allocation Settlement Earliest volun- tary repayment (settlement) Maturity Allocated amount (EUR bn) Outstanding amount (EUR bn) TLTRO-III.8 17.06.2021 24.06.2021 29.06.2022 26.06.2024 109.8 47.7 TLTRO-III.9 23.09.2021 29.09.2021 29.06.2022 25.09.2024 97.6 56.7 TLTRO-III.10 16.12.2021 22.12.2021 29.06.2022 18.12.2024 51.9 36.9 Sources: Deutsche Bundesbank Eurosystem, ECB Eurosystem, Bloomberg, Helaba Research & Advisory Focus on: Credit – Primary Market Update Banks © Helaba | Research & Advisory | 3 April 2024 6 of 6 Authors Publisher and editor Helaba Research & Advisory Editor Sabrina Miehs 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. Sign up for our newsletter here: https://news.helaba.de/research/ Dr. Susanne Knips (sk) Senior Credit Analyst T +49 69/91 32-32 11 Christian Schmidt (cs) Covered Bond & SSA Analyst T 069/91 32-23 88

High level of senior unsecured bank bond issuance slightly below previous year's record. Continued increase in non-preferred issuance. Covered bond issuance almost halfway to our EUR 160bn forecast for the year.