---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update
type: dd_research
language: en
updated: 2026-09-28
keywords: Renten, Weekly Market Update_englisch
---

# SSAs and Financials: Weekly Market Update

Focus on: SSAs & Financials 4 July 2024 © Helaba | Research & Advisory | 4 July 2024 1 of 7 Research & Advisory Weekly Market Update Primary market environment: The ECB's Stournaras believes that two more rate cuts are justi- fied this year. In the US, rate cut fantasies have been on the rise recently as the latest data give little cause for economic optimism. However, central bankers are sounding more cautious. The second round of the French election will be in focus over the weekend. Sentiment has brightened briefly, but the positive trend has already started to fade. This is highlighted by the higher proportion of red in our heat map. Primary market barometer Turnover in the SSA segment remains low. Rentenbank was the only bench- mark issuer this week. In the coming week, EU primary market activity may provide a bit more impetus. After a very constructive start to the year, issuance has recently slowed. However, the primary market has be- come more receptive. Investors' focus has shifted from 7 to 10 years back to medium maturities as interest rate hike fantasies have faded. While the summer break is approaching, the primary market in this segment is once again very active. Four non-preferred transactions with a total volume of EUR 3.25 billion were successfully completed this week. However, the next few weeks are likely to be quieter due to the holiday period. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Mood improvement only short-term? Relative\* ASW spread change \* ASW levels standardized and 2T-smoothed Sources: LSEG, Helaba Research & Advisory IBOXX EURO 1 Tag 1 Woche 4 Wochen 13 Wochen 52 Wochen 104 Wochen Germany 0,07 0,43 -0,08 0,24 2,24 4,23 European Union 0,04 0,23 0,39 0,35 1,40 2,76 Germany Covered 0,08 0,05 0,11 -0,03 1,67 2,45 EU Covered 0,09 0,07 0,30 0,07 1,10 2,52 Banks senior preferred -0,01 -0,09 0,09 0,03 -0,45 -0,94 Banks senior bail-in (SNP) -0,02 -0,11 0,05 0,00 -0,78 -1,54 Banks subordinated -0,04 -0,16 0,16 -0,03 -1,27 -2,34 Supranational 0,06 0,19 0,32 0,31 1,37 2,71 Agencies 0,08 0,12 0,52 0,48 2,31 3,95 Sub-Sovereigns Germany 0,06 0,01 0,00 0,00 0,77 1,41 Sub-Sovereigns 0,07 0,11 0,29 0,28 1,42 2,24 stark mittel schwach unverändert schwach mittel stark Spreadausweitung\* Spreadeinengung\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 4 July 2024 2 of 7 SSAs Trading in the SSA market continues to be very quiet, especially as the summer break slowly but surely approaches. The recent rally in OATs vs. Bunds has not contributed to a general recovery in E- names, which are still trading close to their highs for the year vs. swaps. The primary market took a break at the beginning of the week before Rentenbank (EUR 1.25bn, 7 years) came to market on Tuesday. With an order book of EUR 1.55 bn, the final spread tightened by 1 bp to MS +12 bp. The is- suer clearly prioritised volume over price in this transaction. Overall, the deal was seen as a good test for the cur- rent environment. Outlook: On the primary side, another large EU issue is expected early next week. Expectations are for a new 7- year issue and a rise at the long end in the 2044 area. In addition, some states are still likely to have issuance needs. The second part of the French legislative elections, which will take place next weekend, is also likely to be a determining factor. Covered Bonds Fears of a right-wing majority in the French parliamentary elections did not materialise. As a result, volatility declined somewhat. On Tuesday, Austria's largest building society, Raiffeisen Bauspar- kasse, used the available issuance window with a sub-benchmark bond (EUR 300m, 5 years, WNG) and DZ Hyp (EUR 500m, WNG, 4.2 years, green). Both issues were significantly oversubscribed (3.7x and 4.9x respectively) and spreads narrowed by 10bp and 6bp to MS +55bp and MS +20bp respectively. It is worth noting that the order book for the Raiffeisen issue remained relatively stable after the spread was fixed. Münchener Hyp (EUR 500m, 7 years, WNG) successfully complemented the primary market offering today. With a book of over EUR 1.7bn, the funding target was easily met. The final spread tightened by 6bp to MS + 24 compared to the marketing. The key trend for all markets in 2024, bund/swap tightening, is likely to continue, albeit in a non-linear fashion. This trend is likely to have a significant valuation impact on covered bonds as an asset class. When isolated from other specific valuation factors (cover pools, supply outlook, post-QE liquidity distortions, etc.), they become structurally less attractive than EGBs. This is particularly true for eurozone ultra-core. In times of quantitative li- quidity shortages, national and international investors are likely to be more selective, especially as the growing financing needs of not only governments but also their segregated funds and the "e-family" will have to compete for investors. Outlook: The results underline the receptiveness of the market and may encourage other issuers to get active be- fore the summer break. Also in the pipeline are Australia's Bendigo & Adelaide Bank and Italy's Banca Popolare Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,875% Landwirtschaftliche Rentenbank Aaa /AAA 1,250bn 09.07.2031 ms +12 bps 02.07.2024 1,580bn ms + 13 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 1 July 2024 „After the first round of the French election, general risk aversion has fallen back noticeably! In addition to the countermovement in OAT/Bund spreads, the main indication of this is the significant rollback in Bund/Swap spreads (especially from 10Y)! Traders who were offered covered cash last week and hedged against con- tracts were able to make substantial profits. This is also in light of the fact that the cash side of the broker market was dominated at the start of the week". Einschätzungen aus dem Handelsraum der Helaba Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 4 July 2024 3 of 7 dell' Alto Adige with a sub-benchmark, which were mandated two weeks ago. With the summer holidays starting in many countries, issuance is likely to remain manageable into August. Senior Unsecured Sentiment has brightened considerably and the primary market for senior unsecured bank bonds came back to life just before the summer break. A total of EUR 3.25bn was raised in four non- preferred transactions. Oversubscription was substantial in some cases and spreads tightened significantly both during the bookbuilding process and in the subsequent secondary market.. On Tuesday, Canadian Imperial Bank opened the round with a EUR 500m 5-year non-preferred bond. On Wednes- day, Deutsche Bank issued a non-preferred dual tranche (4NC3 and 11NC10) with a total volume of EUR 1.75bn. On the same day, Bank of Montreal issued a EUR 1bn non-preferred bond (6NC5). Deutsche Bank's issue in particular was heavily oversubscribed, with spreads narrowing from initial indications. With maturities ranging from 4 to 11 years, the issues have been predominantly in the longer-term range. Outlook: This week's activity shows once again that opportunities can be well exploited. Given the high level of maturities, there is still some refinancing to be done this year, even if issuers are not under too much pressure to move forward with transactions given the high level of activity since the beginning of the year. For now, however, the summer break is just around the corner. Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,000% Münchener Hypothekenbank Aaa /- 0,500bn 11.07.2031 ms+24 04.07.2024 1,300bn ms+ 30 Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 1 July 2024 Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,375% DekaBank Aa1 /- 0,500bn 02.07.2027 ms +45 bps 24.06.2024 0,950bn ms + 65 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 24 June 2024 Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,807% Canadian Imperial Bank of Commerce A2 /AA- 0,500bn 09.07.2029 ms +90 bps 02.07.2024 0,725bn ms + 110-115 4,000% Deutsche Bank Baa1 /A- 0,500bn 12.07.2028 ms +95 bps  03.07.2024 6,400bn ms +130 area 4,500% Deutsche Bank Baa1 /A- 1,250bn 12.07.2028 ms +170 bps 03.07.2024 6,400bn ms +200 area 3,750% Bank of Montreal A2 /A- 1,000bn 10.07.2030 ms +100 bps 03.07.2024 2,000bn ms +120/125 Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 1 July 2024 „Despite the end of the first half, investor flows remained below average. It was not until the general sense of relief following the first round of the French elections that market participants ventured to take cover again. Understandably, French securities and peripheral bonds in particular played a leading role. ETF funds contin- ued to move on both sides of the money. Asset managers, meanwhile, ventured back into longer maturities, which were traded in both directions. Elsewhere, new issues and FRNs were back in focus for investors. “ Comment from Helaba’s trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 4 July 2024 4 of 7 Chart of the Week An amendment to the legal framework governing banks' crisis management introduced in the wake of the financial crisis is on the horizon, a key aspect of which will be the establishment of a general depositor preference through- out Europe. This will have an impact on the ranking of senior preferred bank bonds. However, financial institutions enjoy substantial risk buffers and will be able to mitigate any negative effects by issuing additional preferred notes. As a result, we expect the implications for the ratings of preferred bonds issued by large European banks to be limited. For details see our report "Large European Banks: Revision to insolvency ranking of preferred bonds" dated 2 July 2024. Short news 7/2VDP updates minimum standards for Green Pfandbriefe: Together with the issuers of green Pfandbriefe, the Association of German Pfandbrief Banks (VDP) has updated the minimum stand- ards for green mortgage Pfandbriefe and green public sector Pfandbriefe. The changes to the minimum standards will apply from 1 January 2025, but member institutions are free to apply them before this date on a voluntary ba- sis. Accordingly, the minimum standards in force at the time of issue will apply to Pfandbrief issues already out- standing. The main changes to the Minimum Standards for Green Mortgage Pfandbriefe relate to the criteria for eligible assets. 7/2 EBA: Call for caution amid rising geopolitical risks for the EU/EEA banking sector: The European Banking Authority (EBA) today published the spring edition of its risk assessment report (RAR). The report covers the EBA’s common risk assessment as well as the analysis of banks’ asset encumbrance and funding plan data, which had previously been published in two separate reports. It also includes specific chapters dedicated to EU/EEA banks’ Commercial Real Estate (CRE) exposures and EU/EEA banks’ interconnections with non-bank financial inter- mediaries (NBFIs). 7/1 Sparkassen Mortgage Pfandbriefe Well-Protected Against Property Price Correction: The relied-upon over- collateralisation (OC) levels are well above the respective break-even OC levels for the Mortgage Pfandbrief ratings of the seven Fitch-rated Sparkassen Pfandbriefe programmes, creating significant buffers against potential asset performance deterioration and property price correction, Fitch Ratings says. 6/27 ECB A roadmap for strategic investment in Europe: Europe needs trillions of euros to manage climate change, become digital and defend itself. How can we support these projects? The ECB Blog discusses the options in times of low growth and high public debt levels. Revision to insolvency ranking of preferred bonds New hierarchy of claims in Germany according to the proposal by the EU Council Source: Helaba Research & Advisory Covered deposits pursuant to Deposit Guarantee Scheme (up to EUR 100,000) Deposits from private and SME customers > EUR 100,000 Other deposits > EUR 100,000 Senior preferred Derivatives Senior non-preferred Tier 2 AT 1 CET 1 Hierarchy of claims Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 4 July 2024 5 of 7 \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory With this report, the Weekly Market Update bids you farewell for the summer. We wish our readers a pleasant and hopefully sunny holiday. Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 199 2,14% 0,12% iBoxx € Cov. Germany 27,2 1,3 1,4 iTraxx Senior Financial 62,3 -10,5 3,8 10Yr-Yield 2,56 0,11 0,06 iBoxx € Cov. Bonds 34,1 1,5 3,1 iBoxx € Supranational 36,5 3,6 4,8 Swap 10J 2,82 0,03 0,07 iBoxx € Banks PS 67,6 -2,2 1,0 iBoxx € Agencies 22,2 1,8 5,0 iBoxx € Germany -13,25 6,82 -0,72 iBoxx Banks NPS 86,0 -3,2 -0,2 iBoxx € Sub-Sov. Germany 24,6 1,4 0,4 iBoxx € EU 45,06 4,81 6,98 iBoxx Banks Subordinated 140,2 -7,4 4,2 iBoxx € Sub-Sovereign 43,9 2,6 4,2 Leisure tip for the weekend: Cascade Gorge, Rhön, Hesse Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.hessenschau.de/freizeit The Rhön is famous for its unique landscape, its biosphere reserve - and its many hiking trails. One of the most beautiful is the Kas-kaden Gorge, a mile and a half walk from the car park on the outskirts of Gersfeld-Sandberg (Fulda). The trail leads through dense beech forest along the Feldbach stream. The walls of the Kaskadenschlucht gorge are very rugged in places. Sturdy footwear is recommended as the path leads over many small bridges and steps. Find out more: Cascade Gorge Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 4 July 2024 6 of 7 Chartbook SSAs, Covered Bonds, Senior Unsecured Senior Unsecured: Primary volumes Senior Unsecured: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW spread, bp Sources: Bloomberg, Helaba Research & Advisory Sources: LSEG, 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 2023 Senior Non-preferred 2023 Senior Preferred 2024 Senior Preferred 2024 Senior Non-preferred 0 50 100 150 200 250 300 0 50 100 150 200 250 300 07/23 09/23 11/23 01/24 03/24 05/24 07/24 Banks Subordinated Banks Senior Bail-in Banks Senior Preferred Covered Bonds: Primary volumes Covered Bonds: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW spread, bp Sources: Bloomberg, Helaba Research & Advisory Sources: LSEG, 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 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2023 2022 2024 0 5 10 15 20 25 30 35 40 0 5 10 15 20 25 30 35 40 07/23 09/23 11/23 01/24 03/24 05/24 07/24 EUR Covered Covered Germany SSAs: Primary volumes SSAs: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW spread, bp Sources: Bloomberg, Helaba Research & Advisory Sources: LSEG, 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 2022 2024 2023 -5 5 15 25 35 45 -5 5 15 25 35 45 07/23 09/23 11/23 01/24 03/24 05/24 07/24 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 4 July 2024 7 of 7 News from Research & Advisory  Focus on Credit: Primary market update EUR benchmark bank bonds Q2 2024  Focus on Credit: EUR corporate bonds: Primary market Q2 2024  Focus on Credit: Mayor European banks: Well prepared for Basel IV  Focus on Credit: Primary market update EUR benchmark bank bonds Q1 2024  Focus on Credit: Corporate Schuldschein - Primary market Q1 2024  Focus on Credit: EUR Corporate bonds – Primary market Q1 2024  Focus on Covered Bonds: APAC Covered Bonds - Popular instruments with limited sup- ply  Focus on Credit – Major European Banks:- Heading into 2024 with strong credit risk buffers  Focus on: Credit – European banks: The sharpening contours of ESG disclosure  Markets & Trends 2024 – Global economy in a transition game Please feel free to contact us 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 24 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 Christian Schmidt Covered Bond & SSA Analyst T 069/91 32-23 88 Dr. Susanne Knips Senior Credit Analyst T 069/91 32-32 11

SSAs: Sales remain low. Covered bonds: Primary market proves receptive. Senior Unsecured: Lively activity before the summer break. Chart of the week: Revision to insolvency ranking of preferred bonds.