---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-0
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 27 June 2024 © Helaba | Research & Advisory | 27 June 2024 1 of 7 Research & Advisory Weekly Market Update Primary market environment: Both the European Central Bank and the US Federal Reserve are basing future interest rate decisions on economic and inflationary developments. Mr Rehn, a member of the ECB's Governing Council, believes it is reasonable to expect two more rate cuts from the ECB this year. The primary markets continue to operate with the handbrake on. Sentiment has brightened recently, although market participants remain cautious. Our heat map shows that there is also a differentiation between asset classes. Primary market barometer The SSA segment continues to be characterised by low turnover and few primary market transactions. The gloomy mood following the Euro- pean elections persists. In addition, issuers remained cautious ahead of the French legislative elections. Deutsche Kreditbank and Českoslov- enská obchodná banka were two issu- ers active this week. Both were able to meet their funding targets. The trans- actions were also seen as a sentiment test. However, given the summer holi- days in many countries, primary mar- ket activity is likely to remain limited. In a more favourable market environment, three EUR benchmark transactions have come to the market this week. Issuers are not under pressure but are taking ad- vantage of refinancing opportunities as they arise. For now, however, the summer break is just around the corner. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Sentiment brightens Relative\* ASW spread change \* ASW levels standardized and 2T-smoothed Sources: LSEG, Helaba Research & Advisory IBOXX EURO 1 day 1 week 4 week 13 weeks 52 weeks 104 weeks Germany 0,03 -0,02 -0,50 -0,25 2,01 3,47 European Union 0,00 -0,05 0,27 0,06 1,25 2,55 Germany Covered 0,01 0,02 0,08 -0,15 1,83 2,43 EU Covered 0,03 0,06 0,30 -0,12 1,22 2,50 Banks senior preferred -0,02 -0,09 0,31 -0,01 -0,44 -1,08 Banks senior bail-in (SNP) -0,03 -0,10 0,30 0,00 -0,83 -1,67 Banks subordinated -0,04 -0,11 0,41 -0,02 -1,17 -2,08 Supranational 0,00 -0,04 0,25 0,08 1,28 2,53 Agencies 0,00 -0,13 0,61 0,20 2,46 3,84 Sub-Sovereigns Germany 0,00 -0,05 0,06 0,00 0,80 1,42 Sub-Sovereigns 0,00 -0,08 0,36 0,12 1,39 2,17 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 June 2024 2 of 7 SSAs A very quiet trading week so far in the Euro SSA market with continued low turnover, although the market in general has been somewhat divided in terms of flows. We have seen better buying in KfWs and in this move KfWs have become slightly more expensive versus swaps while E names have traded in the wake of French government bonds with spreads almost unchanged. The primary market barely picked up this week. KfW successfully issued a 3-year benchmark (EUR 4bn). The book was 2.6x oversubscribed and the spread was set at MS - 5bp versus MS - 3bp in the marketing. Canada's PSP Capi- tal issued a EUR 750m 10-year bond. The Nordic Investment Bank today issued a EUR 500 million 3-year bond. The issue was successfully completed with a bookbuilding of EUR 1.2 billion. The European Commission has published its financing plans for the second half of the year. It plans to issue a to- tal of EUR 65 billion in long-term EU bonds through six auctions and four to five syndicated transactions. The funds raised will be used to meet payments related to the NextGenerationEU programme and additional payment needs from other EU bond-financed policy programmes, including financial assistance to Ukraine, the Western Balkans Reform and Growth Facility and macro-financial assistance programmes. Outlook: Parliamentary elections will be held in France on 30 June. Polls show a weakening of President Macron's camp and point to a significant increase in votes for the Rassemblement National (RN). It remains to be seen how the outcome of the election will affect market sentiment. In addition, the holiday season is just around the corner and it is quite possible that one or two states will become active before the summer break. There is one EU trans- action on the agenda for the week commencing 8 July. Covered Bonds After the previous week's lack of issuance in the primary market, one issuer did step up to the plate this week: The covered bond, limited in advance to EUR 500 million, has a maturity of 6 years. With an order book of EUR 970m, the issue was a success. The spread tightened by 4bp against the marketing to MS +27bp. The issue was seen as a test for the market as a whole, particularly in terms of spread evolution. As a reminder, the last public sector transaction was executed by LBBW at the beginning of June and priced at MS +20bp. Československá obchodná banka (CSOB) successfully debuted on Wednesday with a five-year benchmark (EUR 500m, WNG). With the order book 2.6 times oversubscribed, the final spread was tightened by 8 bps to MS + 57 bps over the target. The success of the transaction shows that the market is open and remains receptive pro- vided a reasonable spread is paid. Outlook: The outcome of the French election will also be closely watched in the covered bond segment. Australia's Bendigo & Adelaide Bank and Italy's Banca Popolare dell' Alto Adige are also in the pipeline with a sub-benchmark, all of which were mandated two weeks ago. The start of the summer holidays in many countries is beginning to cast its shadow. This will be clearly felt by 14 July at the latest. Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,750% KFW Aaa /AA+ 4,000bn 01.10.2027 ms -5 bps 25.06.2024 12,900bn ms - 3 area 3,250% PSP Capital Inc Aaa /- 0,750bn 02.07.2034 ms +53 bps 25.06.2024 1,200bn ms + 53 area 2,875% Nordic Investment Bank Aaa /- 0,500bn 04.07.2027 ms -5 bps 27.06.2024 1,200bn ms -4 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 24 June 2024 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 June 2024 3 of 7 Senior Unsecured The primary market for senior unsecured bank bonds has opened its window again. On Monday, Deka Bank came to market with a 3-year fixed preferred bond. Despite the current tensions, the premium for this issue was also relatively low, which meant that it traded more favourably in the secondary market than at the re-offer. This was followed on Tuesday by a green 4NC3 FRN in non-preferred rank from Royal Bank of Canada. Ceska Sporitlena issued another non-preferred fixed coupon bond. Based on a generous spread, it was oversubscribed by a remarkable 3.2x. Outlook: With heavy issuance since the beginning of the year, issuers are not under too much pressure to move forward with their transactions. However, this week's activity shows that opportunities can be well exploited. There is still some refinancing to be done this year, given the large number of maturities. 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% Deutsche Kreditbank AG Aaa /- 0,500bn 02.07.2030 ms +27 bps 25.06.2024 1,100bn ms + 31 area 3,375% Československá obchodná banka Aaa /- 0,500bn 03.07.2029 ms +57 bps 26.06.2024 1,250bn ms + 65 area Sources: Bloomberg, Helaba DCM € Covered Bond 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 3,375% 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 4,570% Ceska Sporitelna AS - /A 0,500bn 03.07.2031 ms +180 bps 25.06.2024 1,600bn ms + 215 area 3m +60 Bp Royal Bank of Canada A1 /AA- 1,000bn 02.07.2028 ms +60 bps  25.06.2024 1,570bn 3m€ + 80 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 24 June 2024 „After two mixed weeks, the cash register has recovered for the first time. Preferred bonds were able to tighten by an average of 1-2 bp. They benefited from recovery effects in French, Italian and Spanish securities, which fell 3-5 bp, but still traded 5-10 bp higher on a longer-term comparison. Underperformers of the rank with an average 1-2 bp. widening have been Scandinavian bonds. The situation is similar for non-preferred bonds. Outperformers are the French bonds, which have recently come under pressure, and those from the periphery, which have narrowed by 11 bps and 5-7 bps respectively. On average, the rank is trading 4bps tighter. “ Comment from Helaba’s trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 June 2024 4 of 7 Chart of the Week On 15 June, the Governing Council confirmed that the rein- vestment of assets in the APP will cease from July 2023. Since then, the holdings have been continuously reduced. For ex- ample, covered bonds held un- der the CBPP3 were reduced by EUR 32.3 billion to EUR 267.2 billion by mid-June 2024. The expected reduction in cov- ered bonds in the second half of the year is around EUR 11.75 bn. The loss of the ECB as a major buyer has had a significant, though not exclusive, impact on the spread environment. This is because quantitative easing (QE) was a key driver of spread tightening during its existence. The ECB's activities have contributed both directly and indirectly to an elementary supply shortage and thus ultimately to sometimes deeply negative spreads. Although this was not the purpose of QE, it was an important "side effect". After the successive withdraw- als by the central bank, a demand gap was created virtually overnight, which had to be filled by the private sector. And these "private parties", mainly international asset managers, demanded a price for their involvement in the form of higher spreads, to put it bluntly. By withdrawing, the ECB has therefore indirectly influenced the current spread landscape. At present, however, the central bank no longer has any measurable influence on spread move- ments. However, the aftereffects on market liquidity are still clearly noticeable, particularly due to the large num- ber of bonds held to maturity on the ECB's books. Short news 6/26 SRB document on bail-in approach in the Banking Union: The Single Resolution Board (SRB) has published a document for banks, investors and other stakeholders on executing its bail-in deci- sion, as well as links to national resolution authorities’ mechanics for bail-in. 6/25 Fitch Ratings: Nominal OC Still Well Above Legal Minimum for Spanish Mortgage Covered Bonds: The nominal over-collateralisation (OC) levels maintained by Spanish mortgage covered bonds (‘cédulas hipotecarias’, CH) issuers have continued to average about 50% since June 2023 despite the flexibility introduced last summer by Decree Law 5/2023 permitting the removal of excess cover pool assets over the 5% legal minimum, Fitch Rat- ings says. The range of nominal OC levels maintained has been between 17% and 121% across the 10 CH issuers that Fitch monitors. 6/25: European banking’s biggest takeover battle enters new territory: BBVA, the Spanish bank facing obstacles in its €10bn hostile bid for Banco Sabadell, is arguing the deal would still be worthwhile even if it only gets half of what it wants — owning Sabadell without being able to merge with it. According to the Financial Times, Spain’s Socialist-led government is firmly opposed to the proposed acquisition of the TSB owner, which would be the big- gest transaction in European banking this year. 6/21 Less complexity in regulation brings more growth: "But when the forest of signs on the road becomes in- creasingly dense and confusing, people lose their orientation." BaFin President Mark Branson recently used these words, reported by the Association of German Banks (BdB), to describe the state of the current regulatory framework and at the same time call for changes. ECB net asset purchases under the APP programme EUR bn Sources: ECB, Helaba Research & Advisory Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 June 2024 5 of 7 6/21 Foreign banks face stricter EU requirements with Basel III: According to The Banker, foreign banks operat- ing in the EU face stricter requirements by the end of next year under finalised Basel III rules, as the bloc looks to harmonise capital requirement rules across member countries. \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 195 0,00% -2,58% iBoxx € Cov. Germany 25,9 -0,4 0,1 iTraxx Senior Financial 72,8 0,4 13,4 10Yr-Yield 2,45 0,05 -0,23 iBoxx € Cov. Bonds 32,6 0,0 2,1 iBoxx € Supranational 32,9 -1,2 2,6 Swap 10J 2,79 0,05 -0,14 iBoxx € Banks PS 69,7 -2,3 6,5 iBoxx € Agencies 20,4 -1,6 5,0 iBoxx € Germany -20,08 -0,54 -8,43 iBoxx Banks NPS 89,2 -3,1 7,7 iBoxx € Sub-Sov. Germany 23,2 -1,5 0,2 iBoxx € EU 40,25 -1,62 3,80 iBoxx Banks Subordinated 147,6 -5,2 16,8 iBoxx € Sub-Sovereign 41,3 -1,7 3,9 Leisure tip for the weekend: Sculpture tours, Viersen (NRW) Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.travellersarchive.de/ausflugsziele-hessen The Städtische Galerie im Park in Viersen, on the Lower Rhine, is an indoor and outdoor exhibition of art for all ages, set in a neo-classical villa and ad- jacent sculpture park. A thematic focus is on art in public spaces, and works by renowned contemporary sculptors such as Cragg, Heerich and Matta can be admired, as well as temporary projects. A total of 700 works by well- known and lesser-known artists can also be seen in public spaces in other parts of North Rhine-Westphalia. Find out more: Sculpture Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 June 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 06/23 08/23 10/23 12/23 02/24 04/24 06/24 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 06/23 08/23 10/23 12/23 02/24 04/24 06/24 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 06/23 08/23 10/23 12/23 02/24 04/24 06/24 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 June 2024 7 of 7 News from Research & Advisory  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: Low turnover. Covered bonds: Two issuers active. Senior Unsecured: Window opened a crack again. Chart of the week: ECB net asset purchases through APP programme..