---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-1
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 20 June 2024 © Helaba | Research & Advisory | 20 June 2024 1 of 7 Research & Advisory Weekly Market Update Primary market environment: Risk aversion in the financial markets has not increased further recently and the widening of spreads in the EMU has come to a halt. Overall, however, uncer- tainty among market participants persists and is unlikely to change until the French parliamen- tary elections at the end of June. The generally gloomy market environment persists. This is reflected in our heat map. There are only a few bright spots in the senior unsecured segment. Primary market barometer Two Länder and KommuneKredit ventured into the primary market this week with an increase. The order books were slightly oversubscribed for the total issue volume of EUR 2.25bn. Nevertheless, all reached their funding targets. No, the primary market was not closed. Rather, issuers have been re- luctant due to the current gloomy sen- timent. As a result, planned and new issues were postponed. Here too, issuers are holding back due to the gloomy sentiment. We do not expect a significant recovery before the summer break. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Risk aversion continues 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 0,04 -0,35 -0,36 -0,16 1,83 3,24 European Union 0,01 0,13 0,35 0,15 1,08 2,53 Germany Covered 0,03 0,04 0,01 -0,20 1,85 2,45 EU Covered 0,05 0,12 0,16 -0,23 1,18 2,47 Banks senior preferred -0,04 0,16 0,32 0,04 -0,35 -0,79 Banks senior bail-in (SNP) -0,07 0,14 0,34 0,04 -0,68 -1,33 Banks subordinated -0,06 0,25 0,43 0,05 -0,97 -1,67 Supranational 0,02 0,11 0,27 0,13 1,19 2,53 Agencies 0,06 0,21 0,64 0,49 2,50 3,93 Sub-Sovereigns Germany 0,02 0,06 0,05 0,02 0,87 1,48 Sub-Sovereigns 0,03 0,17 0,40 0,21 1,40 2,26 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 20 June 2024 2 of 7 SSAs After last week's turbulence and the sometimes massive widening of spreads, the market environ- ment has eased somewhat in recent days and spreads have recovered at least some of their losses. The widening of the bund/swap, combined with further levels of SSA paper versus swaps, has attracted buying in- terest, but also short covering, which has provided good support to the SSA market. Overall, however, the market remains fragile and in the wake of French government bonds. This is likely to continue until the French elections. The primary market was opened this week by the state of Schleswig-Holstein with a 5-year benchmark (EUR 750m). With an order book of EUR 840m, the issue was oversubscribed and the final spread remained unchanged at MS + 8bp over the marketing. The increase in KommuneKredit (EUR 500m, green) was priced at the same spread level on Tuesday. Another German state, Baden-Württemberg (EUR 1bn, 7 years, WNG), followed on Wednesday. The issue closed with an order book of EUR 1.2bn. The spread remained unchanged at MS + 12bp. Outlook: On Wednesday, the next EU auction was scheduled for next Monday. The market expects an increase in the 2 and 10 year maturities. The EU issuance calendar for the second half of the year will also be announced in the coming days. Covered Bonds A week without a primary market transaction is a rarity. The negative impact of the French malaise continues unabated. A quick solution is not to be expected before the election date, if at all. Alt- hough this mixed situation does not directly affect the covered bond market, the overall picture is not supportive. With French covered bonds now trading almost in line with OATs, they lack an additional selling point at the mo- ment. One can react calmly to structurally similar phenomena in the periphery - these are traditionally often traded through local govies - but in the case of France as a core/semicore location, this is more of an extreme sce- nario. Bonds are trading accordingly with a widening bias versus swaps, especially at the long end. In the secondary market, buying has become much more selective and is likely to be one of the key themes throughout the trading year. Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,875% Schleswig-Holstein - /AAA 0,750bn 25.06.2029 ms +8 bps 17.06.2024 0,840bn ms + 8 area 1,500% KommuneKredit Aaa /- 0,500bn 16.05.2029 ms -5 bps  31.05.2022 0,975bn ms -3 area 2,875% Baden-Wuerttemberg Aaa /- 1,000bn 26.06.2031 ms +12 bps 18.06.2024 1,350bn ms + 12 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 17 J une 2024 "The primary market is reacting to the current events by postponing new issues, which means that no addi- tional material is being pushed onto the markets from this side, which would depress spreads given the cur- rent reluctance to buy. In this respect, we can speak of a certain sideways trend in risk premiums. However, there is currently a lack of imagination for a sustained and broad-based resumption of spread tightening, which is unlikely to improve significantly over the remainder of the year given the increased event risks. The decline in interbank liquidity (low volumes in broker quotes, lack of interest in switching bond pairs as the last attempt to generate actionism) is also a clear indicator that markets are in a wait-and-see mode." Comment from Helaba’s trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 20 June 2024 3 of 7 Outlook: We continue to believe that issuance will be slow to recover given the gloomy conditions. Issuers still in the pipeline include Australia's Bendigo & Adelaide Bank and Italy's Banca Popolare Dell' Alto Adige with a sub- benchmark. Senior Unsecured The cautious mood among market participants led to a wait-and-see attitude among issuers of senior unsecured bank bonds. There was no activity in EUR benchmark format this week. Outlook: The fact that issuance has been very active since the beginning of the year is now paying off. Issuers can wait and see for now, as the summer break is just around the corner anyway. However, given the large number of maturities, there is still a strong need for issuance through to the end of the year, so market windows are likely to remain active. Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication none Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 17 June 2024 Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication none Sources: Bloomberg, Helaba DCM Coupon Issuer Rating (M/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication none Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 17 June 2024 € Senior Non-preferred issues week of 17 June 2024 „Investor flows remain at reasonable levels, but continue to be characterised by selling. ETF funds in particu- lar have been consistent sellers. Maturities longer than 5 years, especially French and peripheral bonds, are being offered. Meanwhile, real money has returned to risk-on mode since Monday and is buying opportunisti- cally. However, dealers with inventory are reluctant to cash in last week's extensions, leading to extremely wide quotes in some cases. At the short end, however, they are unimpressed by the latest events. FRNs and fixed maturities up to 1 year continue to trade in both directions. “ Comment from Helaba’s trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 20 June 2024 4 of 7 Chart of the Week At the end of May this year, the EU Council adopted the out- standing legislative amend- ments for the full implementa- tion of Basel IV. This completes a multi-year overhaul of the central framework for banks at EU level. The aim is to make the sector even more resilient to potential economic shocks. While the new version of the framework did not contain any surprises, institutions now have more regulatory clarity. The long lead time has allowed them to prepare well for the changes. European banks also have high capital ratios. This is helped by the fact that banks are once again gener- ating strong profits on the back of the changed interest rate environment, allowing them to increase their capital buffers. High dividend payments and share buyback programmes reflect this. Recently, there has been repeated talk of postponing some rules. The EU Commission has the power to grant relief from market risk capital requirements for up to three years in order to create a level playing field (Article 461a CRRIII). This is in response to differences in the pace of implementation of Basel IV, particularly in the US. Rumours in the press about the possible postponement of regulatory components refer only to this passage. In our publication "Major European Banks: Well prepared for Basel IV" of 18 June 2024, we highlight the main changes and the background. Short news 6/20 Fitch Ratings Finalises Structured Finance and Covered Bonds Country Risk Rating Criteria Fitch Ratings has published its updated Structured Finance and Covered Bonds Country Risk Rating Criteria and an associated Feedback Report following the completion of our formal criteria exposure draft pro- cess.The final criteria are unchanged from the published Exposure Draft. 6/18 Targeted consultation on AI in the financial sector: The European Commission is launching a targeted consultation to identify the key use cases, benefits, barriers and risks of Artificial Intelligence (AI) in finance. The targeted consultation will gather input from all financial services stakeholders including companies and consumer associations. Once again, it is clear that the relevance of AI to the industry is growing rapidly. 6/17 ECB's Lane downplays need to intervene in French bond market: A senior ECB official has dismissed the idea that it could start buying Eurozone government bonds after the announcement of a snap French parliamen- tary election caused a sell-off in the country’s debt. “What we are seeing is a repricing but it is not in the world of disorderly market dynamics right now” the chief economist of the ECB Philip Lane said as quoted by the Financial Times (FT). 6/14 French banks warned of greenwashing risks: French banks have been warned of greenwashing litigation and public backlash if they fail to comply with existing EU sustainability regulations. As reported by The Banker, Major European banks: Well prepared for Basel IV Dec 14 = 100 % Sources: EBA, Helaba Research & Advisory 10% 11% 12% 13% 14% 15% 16% 17% 90 100 110 120 130 140 150 160 12/14 06/15 12/15 06/16 12/16 06/17 12/17 06/18 12/18 06/19 12/19 06/20 12/20 06/21 12/21 06/22 12/22 06/23 12/23 Risk exposure amount (lhs) CET1 ratio (rhs) CET1 capital (lhs) Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 20 June 2024 5 of 7 the warning comes as national political favours may turn after France’s right-wing Reassemblement National party gained ground in the EU parliamentary elections. \* 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 -1,52% -3,64% iBoxx € Cov. Germany 26,3 0,7 -0,2 iTraxx Senior Financial 72,4 11,1 14,1 10Yr-Yield 2,40 -0,13 -0,13 iBoxx € Cov. Bonds 32,6 1,4 1,3 iBoxx € Supranational 34,2 1,3 3,2 Swap 10J 2,74 -0,09 -0,05 iBoxx € Banks PS 72,0 3,7 7,2 iBoxx € Agencies 22,0 2,0 5,5 iBoxx € Germany -19,54 -4,95 -6,01 iBoxx Banks NPS 92,3 3,4 9,1 iBoxx € Sub-Sov. Germany 24,7 0,7 0,5 iBoxx € EU 41,86 1,96 5,29 iBoxx Banks Subordinated 152,8 9,5 18,0 iBoxx € Sub-Sovereign 43,0 1,8 4,6 Leisure tip for the weekend: Wortreich in Bad Hersfeld (Hesse) 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 Bad Hersfeld is home to an unusual museum in Hessen. Wortreich is a 1200 square metre hands-on adventure world dedicated to language and communication. Here you can not only experience language at first hand, but also practise it. A fun and educational outing - not just for German and linguistics stu- dents. Find out more: Wortreich Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 20 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 | 20 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 Sabrina Miehs, CESGA Head of FI & SSA Research Senior Advisor Sustainable Finance T 069/91 32-48 90 Christian Schmidt Covered Bond & SSA Analyst T 069/91 32-23 88

SSAs: Three issuers venture into the primary market. Covered bonds: Issuance standstill. Senior Unsecured: Wait-and-see market participants. Chart of the week: Major European banks: Well prepared for Basel IV.