---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-14
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 21 March 2024 © Helaba | Research & Advisory | 21 March 2024 1 of 8 Research & Advisory Weekly Market Update Primary market environment: The DAX closes above the 18,000 mark for the first time on Wednesday. In Japan, interest rates are raised for the first time since 2007. This means that in- terest rates there are also moving back into positive territory. As expected, the US Federal Re- serve has left key interest rates at 5.25-5.50 %. The primary market remains favourable. In the short term, the colour scheme of our heat map is shifting further into the green. In the medium term, senior unsecured in particular has improved significantly. Primary market barometer 5 issuers were active in the SSA pri- mary market this week. Demand was again very strong for most issues. The EU accounted for the largest share of the weekly volume of EUR 12.75 bn, with EUR 7 bn. The upcom- ing Easter holidays are likely to dampen activity in the short term. Only two issues were placed this week. However, they were very successful. As the inversion of the swap curve be- comes more apparent, the current sweet spot of demand is shifting back towards the medium maturities of 5-7 years. As expected, issuance picked up sharply from the previous week, as is- suers take advantage of the favoura- ble market environment before the Easter break leads to less activity. The trend towards non-preferred issuance is noticeable. The new iTraxx S41 se- ries was launched on Wednesday, which explains the jump in levels.. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Sustained improvement in mood 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 -0,05 -0,02 0,48 1,34 2,51 3,42 European Union -0,04 -0,10 0,10 0,41 0,90 2,84 Germany Covered -0,04 0,01 -0,08 0,72 2,37 3,06 EU Covered -0,05 -0,04 -0,11 0,16 1,50 2,90 Banks senior preferred 0,01 -0,06 -0,42 -0,38 -0,84 0,65 Banks senior bail-in (SNP) 0,02 0,01 -0,31 -0,45 -1,19 0,15 Banks subordinated 0,03 -0,02 -0,41 -0,30 -1,60 0,19 Supranational -0,04 -0,05 0,14 0,43 1,06 2,99 Agencies -0,06 -0,05 0,13 0,72 1,99 3,14 Sub-Sovereigns Germany -0,02 0,00 0,10 0,22 0,84 0,80 Sub-Sovereigns -0,04 -0,07 0,16 0,38 1,00 2,01 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 21 March 2024 2 of 8 SSAs Euro SSAs continue to move sideways. However, there are signs of a bottoming out. Most new issues now appear to be well supported and a slight tightening of spreads can be seen, especially in the longer maturities. The primary market was quiet at the start of the week. Tuesday saw a revival. The EU issued a green bond, the first since 2022 (under the NextGenerationEU framework), with a maturity of 25 years and a volume of EUR 7bn. The issue was more than 12 times oversubscribed. The Instituto di Credito Oficial (ICO) (EUR 500m, 7 years, WNG, green), guaranteed by the Spanish state, and the Province of Québec (EUR 2.25bn, 10 years) had books of EUR 3.9bn and EUR 2.9bn respectively. ICO's spread thigtened by 3 bps and Quebec's by 1 bps compared to guidance, with Quebec presumably preferring to optimise the size of the issue. On Wednesday, the Flemish Community fol- lowed with a double tranche (EUR 1.25bn, 10-year and EUR 1.25bn, 20-year sustainable) - both with a bid-to-cover ratio above 7 - and the Free Hanseatic City of Bremen (EUR 500m, 10-year, WNG). The latter reached its funding target for the Landesschatzanweisung with an order book of over EUR 600m. The final spread of MS+ 19bp was in line with the target. With the Fed meeting in the evening, issuers were cautious about further transactions. Outlook: The Easter holidays and the approaching end of the quarter are likely to dampen primary market activity over the next two weeks. Fundamentally, conditions remain supportive and issuers are likely to continue to take advantage of opportunities as they arise. Covered Bonds Covered bond issuers were conspicuous by their absence on Monday. It was not until Tuesday that the first transactions took place. France's Crédit Mutuel (EUR 1.25bn, 6 years) and the Netherlands' de Volksbank (EUR 500m, 7 years, WNG) had no trouble filling their order books, which were significantly over- subscribed at EUR 2.3bn and EUR 1.8bn respectively. Spreads tightened by 9bps and 6bps over target, respec- tively. There were no issues on Wednesday, certainly due to the Fed meeting in the evening. The Fed meeting caused the placement volume to fall to its second lowest level of the year. Nevertheless, a trend is emerging: with the swap curve clearly inverting (5y10y - 7.5 bp after +6 bp in January), the current sweet spot of demand is more in the medium maturity range of 5 to 7 years. Outlook: The upcoming Easter holidays and school holidays in many European countries are likely to reduce activ- ity in the primary market over the next two weeks. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,125% Quebec Aa2 /AA-/AA- 2,250bn 27.03.2034 ms +46 bps 19.03.2024 3,900bn ms +47 area 3,050% ICO Baa1 /A/A- 0,500bn 30.04.2031 SPGB+11  19.03.2024 3,900bn SPGB +17 3,250% EU Aaa /AA+/AAA 7,000bn 04.02.2050 ms +80 bps  19.03.2024 86,500bn ms +82 area 2,875% Bremen - /-/AAA 0,500bn 27.03.2034 ms +19 bps 20.03.2024 0,600bn ms +19 area 3,125% Flemish Community - /-/AA 1,250bn 22.06.2034 OLO +32 Bp 20.03.2024 9,000bn OLO +37 area 3,500% Flemish Community - /-/AA 1,250bn 22.06.2045 OLO +26 Bp  20.03.2024 9,000bn OLO +31 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 18 March 2024 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,000% de Volksbank N.V. Aaa /-/AAA 0,500bn 26.03.2032 ms +32 bps 19.03.2024 1,750bn ms +38 area 3,000% Credit Mutuel Home Loan SFH Aaa /AAA/AAA 1,250bn 28.10.2030 ms +31 bps 19.03.2024 2,300bn ms +40 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 18 March 2024 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 21 March 2024 3 of 8 Senior Unsecured The primary market environment for senior unsecured bank bonds remains very constructive. As ex- pected, issuance activity has picked up significantly compared to the previous week as issuers take advantage of the favourable market environment before the Easter break leads to less activity. Market participants are still in risk-on mode; the widening of the iTraxx Financial spread from Tuesday to Wednes- day is purely technical: a new iTraxx series is launched twice a year, on 20 March and 20 September. The new S41 series was therefore launched on Wednesday. Sweden's Swebank was added to the Financial (and therefore the Main) series, replacing the Dutch insurance group Aegon, which moved its headquarters to Bermuda and is there- fore no longer eligible for the index. This reduces the number of insurance companies in the index, which com- prises 30 issuers, to nine. The new composition of the portfolio improves the theoretical value of S41 in Senior Financial by 0.5 bp. Maturity extension (S40 = 20 December 2028, S41 = 20 June 2029) accounts for around 5 bp. The calculated roll S40/S41 in the Senior Financial is therefore 5.5 bp, which is also reflected in the change of the index spread. There have been 11 senior unsecured transactions so far this week. The trend towards non-preferred issuance is striking: Eight of the transactions since Monday are in this tier. In addition to the increase in the non-preferred segment, capital issues (AT1, Tier 2) are also enjoying good demand. Credit investors are still looking for interest- ing investment alternatives, although swap activity (outstanding issues for new issues) has increased in the sec- ondary market. The follow-on performance of most new issues is not as strong as it was a few weeks ago. Outlook: As the central banks' decisions have been finalized now, there is more clarity for issuers and investors. However, the Easter holiday is just around the corner. Over the next few days, issuers are likely to take advantage of the benign market environment before the Easter holiday leads to a slowdown in transactions. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,625% Islandsbanki hf. - /A3/BBB 0,300bn 27.03.2028 ms +185 bps 19.03.2024 1,700bn ms +230 area 3m€ +40 OP Corporate Bank plc Aa3 /-/AA- 0,500bn 28.03.2027 3m€ +40  21.03.2024 2,500bn 3m€ +70/75 3,625% Credit Mutuel Arkea Aa3 /-/AA- 0,750bn 03.10.2033 ms +98 bps 21.03.2024 1,950bn ms +130 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 18 March 2024 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 5,750% Saxo Bank A/S - /BBB-/- 0,150bn 25.03.2028 ms +275 bps 18.03.2024 0,725bn ms +310 area 3m€ +65 Morgan Stanley A1 /A-/A+ 1,500bn 19.03.2026 ms +65 bps 18.03.2024 3,950bn 3m€ +95 area 3,790% Morgan Stanley A1 /A-/A+ 1,500bn 21.03.2030 ms +100 bps 18.03.2024 3,750bn ms +130 area 3,955% Morgan Stanley A1 /A-/A+ 2,000bn 21.03.2035 ms +125 bps 18.03.2024 5,500bn ms +160 area 3,761% JPM Chase & Co A1 /A-/AA- 2,000bn 21.03.2034 ms +105 bps 18.03.2024 6,200bn ms +135 area 3,875% Nykredit Realkredit A/S - /BBB+/A 0,500bn 09.07.2029 ms +120 bps 19.03.2024 0,875bn ms +145-150 4,500% PKO Bank Polski SA Baa3 /-/- 0,500bn 27.03.2028 ms +160 bps 20.03.2024 1,300bn ms +200 area 4,250% KBC Group N.V. Baa1 /A-/A 0,500bn 28.11.2029 ms +130 bps 20.03.2024 0,850bn ms + 155 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 18 March 2024 „With the Fed meeting, investors went into reverse gear, looking to reduce the risk that had built up in their books in recent weeks and take profits, some of which were very attractive. Across all jurisdictions, everyone from fast money and ETFs to real money accounts is selling at the long end, especially in the 2024 new is- sues. Released capital is only partially reinvested at the short end or in floaters, if at all. A 180 degree turna- round from two weeks ago. While trading desks were still struggling to cope with the onslaught of investors, in recent days they have been on standby to absorb the latest wave." Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 21 March 2024 4 of 8 Chart of the Week The spread between German Pfandbriefe and covered bonds from other countries, especially Norway, has tightened signifi- cantly recently. What are the rea- sons for this? We believe it is due to a preference for covered bonds over German Pfandbriefe. This is probably due to the emer- gence of "new" investors in the covered bond market, attracted by the combination of the very high credit quality of these bonds and the now high yields. While German Pfandbriefe con- tinue to have a very strong de- mand base in Germany, the large international issuers are attracting investors with a higher risk premium for a comparable rating/risk. In addition, the large covered bond issuers from other countries are likely to be less acces- sible to the "new investors" than, for example, a savings bank Pfandbrief. Furthermore, we cannot rule out the pos- sibility that the convergence of spreads in the covered bond market is also due - albeit to a lesser extent - to the high volume of Pfandbrief issuance and the harmonisation of the European market through the Covered Bond Di- rective. Short news 3/20 EBA updates list of institutions involved in the 2024 supervisory benchmarking exercise: The European Banking Authority (EBA) published an updated list of institutions, which have a re- porting obligation for the purpose of the 2024 EU supervisory benchmarking exercise. The EBA will be conducting the 2024 benchmarking exercise on a sample of 110 institutions from 16 countries across the EU and the Euro- pean Economic Area. The EBA runs this exercise leveraging on established data collection procedures and formats of regular supervisory reporting and assists Competent Authorities in assessing the quality of internal approaches used to calculate risk weighted exposure amounts. 3/20 BIS enables climate risk analysis using AI: The Bank for International Settlements (BIS) has announced the development of an AI application which enables analysis of climate-related risks in financial system. As reported by the Banker, Project Gaia aims to create a tool to search corporate climate-related disclosures and extract data, reducing the effort involved in climate assessments. (The Banker) 3/19 Enviromental Finance: Commission to delay review of GAR for banks: The European Commission is to post- pone a review of the much-maligned Green Asset Ratio (GAR) reporting indicator for banks. According to Andrei Gurin, team leader of the European Commission’s Sustainable Finance Unit, responsible for EU taxonomy and re- porting, speaking on a webinar hosted by the European Banking Federation (EBF). "We should look at something like 2025 for a proper review" he said. 3/18 Reducing the reporting burden on banks: The European Central Bank (ECB) and the European Banking Au- thority (EBA) signed a Memorandum of Understanding to establish the Joint Bank Reporting Committee, with the Spread gap to German Pfandbriefe shrinks ASW Sources: Bloomberg, Helaba Research & Advisory 10 20 30 40 50 60 70 0 10 20 30 40 50 60 70 France Covered Germany Covered Italy Covered Norway Covered Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 21 March 2024 5 of 8 aim of harmonising and integrating statistical, supervisory and resolution data reporting in the banking industry. (ECB press release) 3/16 Moody's raises ratings of Landesbanken due to new bailout pot: The rating agency Moody's has upgraded the credit ratings of the major leading institutions in the German savings bank sector. The move relates to NordLB, Helaba, BayernLB, LBBW and DekaBank, according to announcements made on Saturday night. One of the reasons given for the upgrade was the reorganisation of the institutional protection scheme (IPS) of the public banking sector, which makes mutual support for the affiliated institutions even more likely in the event of a crisis. (Bloom- berg) 3/15 TLTRO III voluntary repayment notice: redemption notice: According to the ECB's repayment notice of 15.3.2024, the total amount of TLTRO III funds that European banks will repay to the ECB on 27 March 24 is around EUR 251 billion. It consists of maturing funds of around EUR 215 billion and early repayments of amounts maturing between June 2024 and December 2024 of EUR 36 billion. The total amount of funds raised under the programme will therefore decrease from EUR 2.2 trillion in March 2022 to EUR 0.14 trillion at the end of March 2024. The programme therefore no longer plays a significant role in banks' funding plans. 3/14 Banks must tackle climate and environmental risks: Banks must identify, measure and manage climate- related and environmental risks. They can draw on growing examples of good practice to ensure they meet super- visory expectations by our end-2024 deadline, said European Central Bank (ECB) Supervisory Board Vice-Chair Frank Elderson at the EBF Executive Committee meeting. (ECB) 3/14 ECB to increase bank lending: The European Central Bank (ECB) has announced significant changes to its operational framework for implementing monetary policy, with the aim of increasing lending to commercial banks while reducing its extensive bond portfolio. As reported by the Banker, this decision follows years of the ECB in- jecting liquidity into the eurozone’s banking system through bond buying, and reflects a broader trend among major central banks to reassess their liquidity provision and reduce the size of their balance sheets. (The Banker) Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 21 March 2024 6 of 8 \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 185 1,48% 8,15% iBoxx € Cov. Germany 28,7 -0,3 -0,6 iTraxx Senior Financial 58,6 0,2 -7,7 10Yr-Yield 2,44 0,08 0,00 iBoxx € Cov. Bonds 35,4 -0,7 -1,0 iBoxx € Supranational 31,8 -1,1 1,7 Swap 10J 2,71 0,09 -0,08 iBoxx € Banks PS 71,7 0,3 -10,2 iBoxx € Agencies 16,3 -0,9 0,9 iBoxx € Germany -15,74 -1,45 6,39 iBoxx Banks NPS 92,4 3,2 -8,8 iBoxx € Sub-Sov. Germany 23,8 -0,3 1,8 iBoxx € EU 38,43 -1,94 1,50 iBoxx Banks Subordinated 152,7 4,0 -16,6 iBoxx € Sub-Sovereign 39,3 -1,2 1,9 Leisure tip for the weekend: Panarbora Nature Adventure Park, Waldbröl (NRW) Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.nrw-tourismus.de/ungewoehnlich-uebernachten#schlafenimbaumhaus The Panarbora Nature Adventure Park in Waldbröl in the Bergisches Land region offers a special nature and sleep experience: visitors can spend the night in tree houses. Those with a head for heights can also spend the night in African huts, Asian yurts and South American stilt houses. And the next day, a walk along the 1.6 kilometre accessible treetop path with its 40 metre high observation tower is in order. Find out more: Nature Adventure Park Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 21 March 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 03/23 05/23 07/23 09/23 11/23 01/24 03/24 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 03/23 06/23 09/23 12/23 03/24 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 1013161922252831343740434649 2022 2024 2023 -5 5 15 25 35 45 -5 5 15 25 35 45 03/23 05/23 07/23 09/23 11/23 01/24 03/24 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 21 March 2024 8 of 8 News from Research & Advisory  Focus on Covered Bonds: APAC Covered Bonds: "Popular securities, limited supply"  Focus on Credit – MayorEuropean Banks: Heading into 2024 with strong credit risk buffers  Focus on: Credit - Primary market update bank bonds  Focus on: Credit – Primary market update corporate bonds  Focus on: Credit – Primary market update Schuldschein  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: EU outperforms all. Covered bonds: Second lowest issuance volume of the year. Senior Unsecured: New iTraxx Financial Series 41 launched. Chart of the week: Spread gap to German Pfandbriefe shrinks.