---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-6
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 16 May 2024 © Helaba | Research & Advisory | 16 May 2024 1 of 8 Research & Advisory Weekly Market Update Primary market environment: Interest rate cuts remain the dominant driver in the markets. Yes- terday's US inflation figures came in slightly below market expectations, supporting hopes for rate cuts in the near future. The environment for primary market transactions remains support- ive. While senior unsecured bonds continue to perform relatively well over the longer term, covered bonds and the SSA segment are also looking increasingly optimistic. Primary market barometer Total issuance in the SSA segment in- creased significantly this week to EUR 12.5bn. Particular attention was paid to the new 30-year EU bench- mark, which alone accounted for EUR 6bn and was placed very suc- cessfully. We expect activity in this segment to remain buoyant. The covered bond segment has also picked up significantly. The market environment has been characterised by narrowing spreads for several weeks. Investors were able to choose from a wide range of new issues. Here, too, we expect the primary market to remain buoyant. The picture was similar in senior unse- cured. In total, more than EUR 6bn of benchmark securities were issued in 10 transactions, with the volume of preferred bonds increasing signifi- cantly after the subdued activity of previous weeks. Things could remain lively ahead of the next central bank meetings. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Senior unsecured bonds increasingly expensive Relative\* ASW spread change \* ASW levels standardized and 2T-smoothed Sources: LSEG, Helaba Research & Advisory IB OXX EUR O 1 day 1 week 4 week 13 weeks 52 weeks 104 weeks Germany -0.05 0.06 0.31 0.47 2.41 3.66 European Union 0.04 0.02 0.00 -0.03 0.85 2.80 Germany Covered -0.05 -0.03 -0.08 -0.33 1.93 2.76 EU Covered -0.06 -0.06 -0.16 -0.56 1.04 2.67 Banks senior preferred -0.02 -0.01 -0.15 -0.66 -0.78 -0.19 Banks senior bail-in (SNP) -0.02 -0.01 -0.25 -0.55 -1.28 -0.75 Banks subordinated -0.01 -0.03 -0.32 -0.65 -1.60 -0.98 Supranational 0.02 0.00 0.02 0.04 1.03 2.94 Agencies -0.04 0.03 -0.04 0.06 1.88 3.57 Sub-Sovereigns Germany -0.01 -0.03 0.01 0.09 0.86 1.26 Sub-Sovereigns 0.00 -0.03 -0.02 0.07 1.05 2.13 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 May 2024 2 of 8 SSAs There has been a lot of activity in the SSA segment this week. In total there have been eight transac- tions so far with a volume of EUR 12.5bn. Particular attention was paid to the new EU 30-year benchmark issue on Tuesday, which alone accounted for EUR 6bn. Marketing started at MS +91bp. This spread was apparently so attractive to investors that the order book eventually grew to a very impressive EUR 86bn and the issue was placed at MS +88 bp. However, the volatility of the EU curve did not diminish. In addition to the June auction, the next important date for the EU is the issuance plan for H2 2024, which is due to be published at the end of June. Another topic this week was the inclusion of the EU in various credit indices. MSCI is now the second index pro- vider to consider inclusion in September, October or November, and thus in several steps. Inclusion in an index should have a long-term positive impact on demand for EU bonds. However, major index providers such as Bloom- berg, FTSE or S&P Markit are still missing. German states and development banks (Brandenburg, IFBH) remain active in 10-year bonds. After very strong supply in this maturity in recent weeks, demand appears to be easing somewhat. Today, Thursday, the State of Hesse successfully placed a 'short' 5-year bond at MS+6bp with an order book of over EUR 3.3bn. Outlook: The market environment for SSA issuance remains positive. We expect active activity at least until the summer break. A new EFSF benchmark is in the pipeline. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3.375% EU Aaa /AA+/AAA 6.000bn 05.10.2054 ms +88 bps 14.05.2024 86.000bn ms + 91 area 3.296% Galicia Baa1 /A/- 0.500bn 30.04.2031 ms +22 bps 14.05.2024 1.500bn SPGB + 27 area 3.400% British Columbia Aaa /AA/AA+ 1.500bn 24.05.2039 ms +60 bps 14.05.2024 4.000bn ms + 62 area 2.875% African Development Bank Aaa /AAA/AAA 0.500bn 23.05.2028 ms +2 bps 15.05.2024 3.200bn ms + 5 area 2.875% Brandenburg Aaa /-/- 0.500bn 23.05.2034 ms +16 bps 15.05.2024 0.475bn ms + 16 area 2.875% Hamburgische Investitions- und Förderbank - /-/AAA 0.250bn 24.05.2034 ms +23 bps 16.05.2024 0.320bn ms + 23 area 2.875% Asian Infrastructure Investment Bank Aaa /AAA/AAA 1.000bn 23.05.2031 ms +17 bps 16.05.2024 5.600bn ms + 21 area 2.875% Hessen - /AA+/- 2.250bn 12.03.2029 ms +6 bps 16.05.2024 3.400bn ms + 6 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 13 May 2024 „Asset managers, the most important driver of spread tightening for the time being, are slowing down their secondary buying. This should not be a cause for concern or fuel fears of repricing. Absolute valuations are certainly not overly expensive in a historical context, even after the distance already covered this year. Alt- hough the gap with other asset classes is narrowing, there is no sign of outright overheating (yet). However, it is clear that the continued high number of primary market transactions is currently more than satisfying play- ers' appetite for investment, resulting in fewer follow-on purchases than in Q1. On the positive side, almost no new bond is trading wider than at re-offer, but some bonds are struggling to trade tighter from the original level. On the supply side, it may help that the market is about to enter the seasonal summer lull, which will also balance out the supply side.“ Comment from Helaba’s trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 May 2024 3 of 8 Covered Bonds With a total issue volume of EUR 7 billion, the covered bond segment experienced a significant re- vival. The range of securities on offer was remarkable. From short floaters (UBS Switzerland, San- tander UK) to 10-year bonds (BPCE SFH, ING Bank N.V.), there was something for every investor this week. There was also a wide spread in terms of jurisdictions. The aforementioned names were joined by Nordic issuers (Spare- banken Vest Boligkreditt, Aktia Bank). The good subscription rates and low to slightly negative new issue premi- ums are striking. Spreads, which were initially very attractive, narrowed by up to 8 bp during the marketing phase (Sparebanken Vest & Aktia Bank). Outlook: The 'newcomer' to the covered bond market, Standard Chartered Bank (Singapore), already has a 3-5 year EUR benchmark in the pipeline. The Bank of Queensland is also planning a transaction. The environment re- mains constructive and further issuance is likely in the pipeline. Senior Unsecured The primary market for senior unsecured bank bonds also picked up noticeably. The end of the re- porting season and thus the blackout period contributed to this, while the market environment re- mained encouragingly receptive. A total of 10 transactions were successfully completed for a total volume of EUR 6.2 billion. In terms of preferred issues, it was one of the strongest weeks since the beginning of the year, with a volume of EUR 3.7 billion in 7 transactions. As with covered bonds, a wide range of terms (maturity, coupon) was offered. Oversubscriptions remained solid and spread tightening of more than 20bp during bookbuilding was the rule rather than the exception. Outlook: We expect primary market activity to remain buoyant in this segment next week. On the one hand, the quarterly reporting season is now over and on the other, the market environment remains receptive. Issuers still have refinancing needs in view of this year's high maturities (see our Primary Market Update EUR Benchmark Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3m€ +23 Bp UBS Switzerland - /-/AAA 0.750bn 21.04.2027 ms +23 bps 13.05.2024 1.300bn 3m€ + 28 area 3.146% UBS Switzerland - /-/AAA 1.000bn 21.06.2031 ms +36 bps 13.05.2024 1.900bn ms + 43 area 3m€ +18 Bp Santander UK plc Aaa /AAA/AAA 0.500bn 12.05.2027 ms +18 bps 13.05.2024 1.000bn 3m€ + 25 area 3.125% Santander UK plc Aaa /AAA/AAA 1.000bn 12.05.2031 ms +35 bps 13.05.2024 1.500bn ms + 40 area 3.125% BPCE SFH Aaa /AAA/- 1.500bn 22.05.2034 ms +37 bps 13.05.2024 6.000bn ms + 44 area 3.000% Sparebanken Vest Boligkreditt Aaa /-/- 0.500bn 31.07.2029 ms +22 bps 14.05.2024 1.700bn ms + 30 area 3.000% ING Bank N.V. Aaa /AAA/AAA 1.250bn 21.05.2034 ms +32 bps 14.05.2024 1.700bn ms + 38 area 3.000% Aktia Aaa /-/- 0.500bn 22.10.2029 ms +25 bps 15.05.2024 1.900bn ms + 33 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 13 May 2024 „The credit segment is stable, with positive sentiment reflected in the iTraxx indices, which are close to series lows. Cash is tightening by 2-3bps on average. German banks' non-preferred bonds (-6 bp) and peripheral bonds (-5 bp) are outperforming. Investor flows are below average due to the holidays. However, good 2-way flows in size are possible at the short end with real money. Money managers tend to trade the remaining ma- turities and especially FRNs on the money side as space is created for future new issues. ETF funds and fast money accounts have also been selling recently.“ Comment from Helaba’s trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 May 2024 4 of 8 Bank Bonds dated 3 April 2024). The upcoming central bank meetings at the beginning of June could have a dampening effect. Chart of the Week Since mid-January the spreads between covered bonds and senior preferred bonds have converged significantly. While the difference was still around 53bp on 18 January, it was around 34bp on 15 May. In our view, this development is not only spread supportive for covered bonds in general, but has also led to increased un- derlying demand for covered bonds from asset managers in the first few months of the year. In our view, this is a very significant devel- opment, as this group of investors has been instrumental in filling the demand gap following the end of central bank pur- chases. Although banks, as regulatory buyers, continued to use the primary market extensively, the high supply in the first few months would probably not have been absorbed without asset managers. As a result, covered bond spreads have remained "stable", i.e. unstable to a limited extent. At present, the continued high level of supply in the primary market, coupled with declining demand from asset managers, leaves little appetite for follow-up pur- chases. As a result, the potential for further tightening in the future is likely to be limited. For investors, a differentiated view of the cover pool and the issuer (credit buyer) is once again clearly in the foreground. In relative terms, cov- ered bonds may still appear attractive to some investors. However, it remains to be seen how asset managers will position themselves and when supply will diminish. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3m€ +40 Bp ANZ New Zealand (Int’l) Ltd., London Branch Aa2 /AA-/A+ 1.500bn 21.05.2027 ms +40 bps 13.05.2024 1.750bn 3m € +65/70 4.625% Arion Banki A3 /-/- 0.300bn 21.11.2028 ms +175 bps 13.05.2024 2.500bn ms + 220 area 5.150% Raiffeisen Bank Zrt Baa3 /-/- 0.300bn 23.05.2030 ms +225 bps 14.05.2024 2.000bn ms + 275 area 3m€ + 100 Bpp Banque International Luxembourg A2 /-/- 0.300bn 24.05.2027 ms +100 bps 15.05.2024 0.325bn 3m € +100 area 4.000% BPER Banca S.p.A. - /BBB-/BBB 0.500bn 22.05.2031 ms +125 bps 15.05.2024 2.250bn ms + 155 area 3.500% SpareBank 1 SMN Aa3 /-/- 0.500bn 23.05.2029 ms +72 bps 16.05.2024 0.800bn ms + 95-100 5.375% LHV Group Baa3 /-/- 0.300bn 24.05.2028 ms +240 bps 16.05.2024 1.300bn ms + 300 area Sources: Bloomberg, Helaba DCM Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3.755% HSBC Holdings PLC A3 /A-/A+ 1.250bn 20.05.2029 ms +80 bps 13.05.2024 2.200bn ms + 115 area 3m€ + 80 Bp U.S. Bancorp A3 /A/A 0.500bn 21.05.2028 ms +90 bps 14.05.2024 0.500bn 3m € +90 area 4.009% U.S. Bancorp A3 /A/A 0.750bn 21.05.2032 ms +120 bps 14.05.2024 0.750bn ms + 135 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 13 May 2024 € Senior Non-preferred issues week of 13 May 2024 Little room for spread tightening ASW in bp ASW in bp Sources: LSEG (iboxx EUR indizes), Helaba Research & Advisory 0 20 40 60 80 100 120 0 20 40 60 80 100 120 Banks Senior Preferred EUR Covered Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 May 2024 5 of 8 Short news 5/16 2024 MREL policy and latest MREL dashboard: Today, the Single Resolution Board (SRB) publishes its 2024 minimum requirement for own funds and eligible liabilities (MREL) policy. This new policy takes into account a public consultation held between 14 December 2023 and 13 February 2024. 5/15 Consumer credit: who’s applying for loans now?: Despite rising interest rates, more consumers are apply- ing for loans. This demand comes mainly from households with lower income. The ECB Blog takes a closer look into credit applications and how they affect banks’ credit standards and credit issuance to households. 5/15 BNP Paribas CEO dampens hopes for EU bank M&A revival: The boss of the euro zone's most valuable lender BNP Paribas played down expectations for a revival of M&A activity in European banking, saying the eco- nomics of cross-border and even some domestic deals rarely made sense. According to Reuters, Eurozone regula- tors have long wanted more consolidation to boost financial stability and lenders, many of which have smaller market values than they did during the global financial crisis and even some domestic deals rarely made sense. (Reuters) 5/15 Danish Banks are financing climate-friendly activities: Finans Danmark is taking stock of the financial sec- tor's contribution to supporting the sustainable transition of society. The results show that the financial sector has already met its own expectations for financing climate-friendly activities by 2030 and set greenhouse gas reduc- tion targets for large parts of its investments and lending. 5/14 BdB: Simplify financial market regulation at last: "Mark Branson's call to simplify financial market regula- tion and remove overlaps is an important and correct impulse,’ says Heiner Herkenhoff, Managing Director of the Association of German Banks (BdB). ‘To ensure that Germany and Europe remain competitive in the future, it is high time for efficient, smart regulation. Existing contradictions must be resolved and the entire framework must become more consistent. This must be one of the key tasks not only for the German government, but above all for the next EU Commission". 5/13 The ECB's pressure on banks to take account of climate risks is clearly having an effect: last year, 55% of banks took account of climate risks in their loan loss provisions, compared with 16% in the previous year, accord- ing to a presentation. The number of European banks taking environmental risks into account in their loan loss provisions has more than tripled in one year. This is an early success for regulators in their efforts to prepare for climate change. (Bloomberg) \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 204 1.32% 8.53% iBoxx € Cov. Germany 26.3 -0.3 -0.4 iTraxx Senior Financial 57.9 -1.6 -12.0 10Yr-Yield 2.42 -0.04 -0.05 iBoxx € Cov. Bonds 31.3 -0.5 -1.1 iBoxx € Supranational 31.3 0.9 1.1 Swap 10J 2.70 -0.04 -0.07 iBoxx € Banks PS 65.8 0.2 -3.5 iBoxx € Agencies 16.2 0.6 0.1 iBoxx € Germany -16.08 -0.01 3.50 iBoxx Banks NPS 84.9 0.1 -7.5 iBoxx € Sub-Sov. Germany 24.1 0.0 0.8 iBoxx € EU 37.26 1.70 1.19 iBoxx Banks Subordinated 140.8 -0.8 -12.4 iBoxx € Sub-Sovereign 38.9 0.5 0.5 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 May 2024 6 of 8 Leisure tip for the weekend: Glieniker Bridge (Brandenburg) Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.komoot.com/de-de/guide/209995/ausflugsziele-in-brandenburg The Glienicke Bridge was built in 1907 to link Berlin and Potsdam. Together with the surrounding palaces and parks, it has been a UNESCO World Herit- age Site since 1990. Glienicke Bridge formed the border between East and West Berlin from 1945, and was closed to allied troops from 1953. The bridge and gardens of Glienicke Palace are open to the public. Find out more: Glieniker Bridge Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 May 2024 7 of 8 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 05/23 07/23 09/23 11/23 01/24 03/24 05/24 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 05/23 07/23 09/23 11/23 01/24 03/24 05/24 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 05/23 07/23 09/23 11/23 01/24 03/24 05/24 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 May 2024 8 of 8 News from Research & Advisory  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: Sabrina Miehs 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: EU issuance dominates a generally strong week, Covered Bonds: Broad spectrum, Senior unsecured: End of reporting season clearly felt, Chart of the week: Little potential for tightening