---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-18
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 15 Febuary 2024 © Helaba | Research & Advisory | 15 Febuary 2024 1 of 8 Research & Advisory Weekly Market Update Primary market environment: The DAX is still eyeing record highs. Inflation in the US has disap- pointed recently with high figures, somewhat dampening hopes of rapid interest rate cuts. For Nagel at the ECB, the worst thing would be to cut rates too quickly. The primary market environ- ment remains constructive and issuance is expected to continue through the Easter holidays. The colour palette of our heat map has brightened a little. Overall sentiment for senior unsecured bank bonds re- mains relatively strong. Primary market barometer The momentum in the SSA primary market seems to have slowed some- what, at least temporarily. Neverthe- less, the majority of recent issues have enjoyed very strong investor demand, with exceptionally high oversubscription rates. Further is- sues are already in the pipeline. Momentum in the primary covered bond market has slowed somewhat. Timing and pricing are all the more important for the success of transac- tions. We expect the primary market to remain active until the Easter holi- days. Overall, the market environment for senior unsecured issues remains con- structive. Many banks have now re- ported their quarterly results and we expect primary market activity in this segment to pick up. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Relatively good sentiment for unsecured bank bonds 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 0.02 0.09 0.10 0.68 1.27 2.41 European Union 0.00 -0.05 0.15 0.41 0.86 2.98 Germany Covered 0.03 0.14 0.25 1.01 2.52 3.30 EU Covered 0.02 -0.03 -0.09 0.41 1.60 3.06 Banks senior preferred 0.00 0.03 -0.38 -0.11 0.73 1.56 Banks senior bail-in (SNP) -0.03 -0.05 -0.38 -0.20 0.30 0.96 Banks subordinated -0.01 -0.02 -0.27 -0.50 0.19 0.83 Supranational 0.01 -0.04 0.10 0.46 0.98 2.88 Agencies 0.04 0.02 -0.03 0.64 1.55 2.92 Sub-Sovereigns Germany 0.03 -0.01 0.03 0.36 0.70 0.55 Sub-Sovereigns 0.02 -0.04 0.03 0.45 0.95 1.77 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 Febuary 2024 2 of 8 SSAs The SSA primary market took a break on Monday and the overall momentum seems to have slowed, at least temporarily, after the strong activity of recent weeks. It was not until Tuesday that we saw the first transactions from KfW. The development bank increased its February 2031 issue by EUR 4bn and its April 2039 issue by EUR 1bn. There was strong demand for the tranches, which were 5.5 times oversubscribed. NRW- Bank (EUR 750m, 4 years) and Investitionsbank Schleswig-Holstein (EUR 500m, 10 years, WNG) followed on Wednesday. With order books totalling EUR 925 million and EUR 840 million respectively, both easily met their funding targets. Today, WIBank (EUR 500 million, 10 years) joined this week's successful issuers with an order book of EUR 718 million. The majority of recent issues have been very well received by investors, with exceptionally high oversubscription rates, even after the strong increase in issuance volumes in January. Demand is currently so strong that some transactions are being priced below the fair value of the relevant secondary market curves. The average new issue premium this year is only 2.6 basis points. The high level of new issue activity makes pricing much easier and the initial spread can be set within a very thight range. The final spread is then only a few basis points away. In antici- pation of falling interest rates, investors are focusing on long-dated bonds. Outlook: Momentum in the primary market has slowed somewhat recently, but the environment remains con- structive. More issuance is likely in the pipeline, with further activity expected from development banks and sover- eigns in particular. The EU has already sent out RfPs for an issue scheduled for next week. In addition to bonds and bills, the ESM (European Stability Mechanism) has launched a EUR 20bn STEP (Short- Term European Paper) compliant euro commercial paper programme. The ESM will use the programme as a bal- ance sheet management tool among other things. The minimum size of the programme is EUR 25 million. Maturi- ties will range up to 1 year, with a focus on 1 week to 2 months. Issuance could reportedly start in the first quarter of this year. Covered Bonds Primary market activity continued this week, albeit at a slower pace than in previous weeks. The im- portance of picking the right issue window is illustrated by the example of Norwegian heavyweight SR-Boligkreditt. While Germany, the most important market for EUR-denominated covered bonds, was celebrat- ing carnival, SR-Boligkreditt opened the order books for a EUR 500m eight-year covered bond issue. The unques- tionable quality of the issuer was easily recognised by the market. Only on Thursday did the Italian Banco BPI fol- low with a benchmark (EUR 500m, 6.1 years, WNG). Core eurozone bonds are currently lagging somewhat in terms of performance. In the view of our trading room, this does not mean that previous new issues from this region have been a flop. Rather, it is due to subsequent per- formance and demand, particularly from foreign investors, for whom these bonds are not necessarily the first choice, despite the comparatively high premiums. One reason for this could be the currently rather subdued over- all picture of the German economy. The fact that the price action across the universe of new issues showed a de- Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2.750% KFW Aaa /AAA/AAA 4.000bn 20.02.2031 ms +10 bps 13.02.2024 22.000bn ms + 12 area 0.875% KFW Aaa /AAA/AAA 1.000bn  04.07.2039 ms +29 bps 13.02.2024 5.500bn ms +30 area 2.875% Investitionsbank Schleswig-Holstein - /-/AAA 0.500bn 21.02.2034 ms +21 bps 14.02.2024 0.880bn ms + 23 area 2.750% NRW.BANK Aa1 /AA/AAA 0.750bn 21.02.2028 ms +5 bps 14.02.2024 0.925bn ms + 6 area 2.875% WIBank /AA+/ 0.500bn 22.02.2034 ms +22 bps 15.02.2024 0.718bn ms + 23 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 12 February 2024 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 Febuary 2024 3 of 8 cline in new issue premiums was initially due to a certain amount of courage on the part of investors, whose tradi- tional crowd has probably been joined by an increasing number of speculative accounts. And the reference to sup- posed secondary curve points was not always helpful, especially as the market has lacked resilient liquidity across the board for years. Not least since the free float dried up as a result of QE. In addition, significant holdings are in the hands of static investors. Reading resilience levels based on steady flows into secondary bonds should there- fore be taken with a pinch of salt and leads to a distorted view of what is - according to our trading room. Rather, the "through-the-secondary-curve pricing" is a reflection of investors' generally more positive view at present, also relative to higher yield differentials, e.g. versus credits and/or EGBs (European government bonds). The latter are becoming less meaningful as bund/swap spreads thighten. Based on current conditions, supply/demand ra- tios, risk sentiment and volatile interest rate expectations, our trading team expects spreads to widen moderately at best and performance prospects for non-core assets to improve. Outlook: The news surrounding the US regional banks continues to cause uncertainty, but we expect the primary market to remain active until the Easter holidays. The end of blackout periods should also help. Senior Unsecured Primary market activity in senior unsecured bank bonds has been relatively low recently. In addition to the current reporting season, the carnival season may have contributed to this. However, the few transactions that have taken place have attracted strong investor interest, resulting in high levels of oversubscrip- tion in the books and a continuation of the trend towards low bid spreads. In the uncovered segment, Italy's BPER impressed on Tuesday with an impressive green 6NC5 senior preferred debut issue with an initial size capped at EUR 500m. The order book peaked at EUR 3.35bn, allowing the initial spread target to be narrowed by 40bp to a final MS+160bp during bookbuilding. Raiffeisen Bank International today launched a 5.5NC4.5 Senior Non-Preferred Bond with a volume of EUR 500m and achieved a 4x oversub- scribed book with an initial spread target of MS+235bp. They were joined by Mizuho Financial Group with a 10.25 year non-preferred bond - again the book reached more than EUR 2bn with an initial spread indication of MS-165-170bp and was therefore likely to have been well oversubscribed. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,125% SpareBank 1 SR-Bank Aaa /-/- 0,500bn 19.02.2032 ms +44 bps 12.02.2024 1,005bn ms+48 area 3,250% Banco BPI S.A. Aaa // 0,500bn 22.03.2024 ms +64 bps 15.02.2024 2,850bn ms +70 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 12 February 2024 „In recent trading weeks, a creeping underperformance of German covered bonds has become apparent. Valuations have reached new extremes since concerns about US regional banks and CRE exposures resur- faced this year. Trading patterns showed clear signs of stress (selling focused on shorter maturities, flat spread curves, spread widening of up to 40 bps). Smaller institutional and retail buying has provided some calm, although Street bid/offer spreads are far from tight at up to 20bp.". Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 Febuary 2024 4 of 8 Outlook: The quarterly reporting season for banks is drawing to a close, which means that the blackout periods for issuers are also coming to an end. The refinancing needs of European banks will remain high in 2024, mainly due to long maturities and declining customer deposits (see our Primary Market Update EUR Benchmark Bank Bonds dated 11 January 2024). We expect primary market activity to pick up in the coming days. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4.250% BPER Banca S.p.A. Ba1 /BBB-/BBB 0.500bn 20.02.2030 ms +160 bps  13.02.2024 2.400bn ms + 200 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 12 February 2024 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,625% Raiffeisen Bank International AG Baa2 // 0,500bn 21.08.2024 ms +195 bps 15.02.2024 3,800bn ms +235 area 3,980% Mizuho Financial Group, Inc. A1 //A- 0,750bn 21.05.2034 ms +130 bps 15.02.2024 2,650bn ms +165-170 Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 12 February 2024 Issuer Date Issuer Date CREDIT SUISSE GROUP AG-REG 2/16 HSBC HOLDINGS PLC 2/21 NATWEST GROUP PLC 2/16 LLOYDS BANKING GROUP PLC 2/22 BARCLAYS PLC 2/20 STANDARD CHARTERED PLC 2/23 Sources: Bloomberg, Helaba Research & Advisory Reporting dates of selected banks „The mood in the credit segment is tense, but still surprisingly stable. Equity markets are currently looking a little beaten up, trading nervously not far from recent all-time highs. Yesterday's inflation data from the US underlined this once again, while at the same time putting the market's still high interest rate expectations to the test. As a result, interest rate volatility remains above average. The iTraxx indices are trading tighter on a weekly basis, showing that the regional banking problems surrounding real estate lenders in Germany are having little impact on the overall market.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 Febuary 2024 5 of 8 Chart of the Week According to the Bank Lending Survey (BLS) recently published by the Deutsche Bundesbank, banks in Germany continued to tighten their lending standards in all credit segments in 2023, albeit at a slower pace over time. The degree of tightening has varied across economic sectors. According to the experts, de- mand for loans from companies continued to fall, although the rate of decline also slowed. The main reason for the decline in demand was the higher general level of interest rates until the third quarter of 2023. Demand for corporate loans also fell as a result of declining investment in fixed assets. According to the BLS, banks expect demand for corporate loans to remain broadly unchanged in the first quarter of 2024. Short news 2/14 ESG ratings - Council and Parliament reach agreement: The Council and European Parliament reached a provisional agreement on a proposal for a regulation on environmental, social, and gov- ernance (ESG) rating activities, which aims to boost investor confidence in sustainable products. 2/12 SRB MREL dashboard for Q3 2023: The Single Resolution Board (SRB) published its Minimum requirement for own funds and eligible liabilities (MREL) dashboard for Q3 2023. The dashboard presents the evolution of MREL targets and shortfalls for resolution and non-resolution entities as well as the level and composition of re- sources of resolution entities in the quarter. 2/9 What to expect for sustainable finance in 2024: 2023 was not a stellar year for some segments of the sus- tainable finance market, writes The Banker. After 2 years of mild growth, will 2024 see sustainable finance turn a corner, or will geopolitics and a lack of ‘courage’ among investors continue to dampen uptake? 2/9 The state of cybercrime in the financial sector: Digital innovation continues to accelerate, but modernization also offers a fertile breeding ground for cybercriminals. In this article, Finextra discusses the most common cyberattacks threatening the financial sector, the impact of attacks on financial institutions and banks, as well as the biggest cyber breaches over the past year. 2/8 Agreement on postponing adoption deadlines for certain ESRS: The European Commission welcomes the political agreement between the European Parliament and the Council on the proposal to postpone by two years the deadline for adopting sector-specific European Sustainability Reporting Standards (ESRS). (see our publication European banks: The sharpening countours of ESG disclosure dated 30. Nov. 2023) 2/8 BVR Chief Economist Bley expects rising insolvency figures: According to a study published on 8 February, the Federal Association of German Cooperative Banks (BVR) expects the number of corporate insolvencies to rise by 7.8% year-on-year to around 19,300 cases in 2024. The number of consumer insolvencies is expected to rise by 6.5% to around 71,400 cases. (finanzen.net) Corporate lending business shows signs of stabilisation Bank Lending Survey Germany \* Positive values are tightening, negative values are loosening \*\* Positive values represent an increase, negative values a decrease in loan demand Quellen: Refinitiv, Deutsche Bundesbank, Helaba Research & Advisory -50 -30 -10 10 30 50 70 -50 -30 -10 10 30 50 70 03/14 08/14 01/15 06/15 11/15 04/16 09/16 02/17 07/17 12/17 05/18 10/18 03/19 08/19 01/20 06/20 11/20 04/21 09/21 02/22 07/22 12/22 05/23 10/23 03/24 corporate demand for loans expected for the next quarter\*\* bank lending standards for enterprises\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 Febuary 2024 6 of 8 2/8 German banks plan to tighten lending standards, Bundesbank says: Financial institutions in Germany are planning to tighten their lending standards again in the current quarter, according to the Bundesbank, after hav- ing eased them in the second half of last year in a wide range of areas, with the exception of the real estate sector. These are the findings of the Bundesbank's Bank Lending Survey (BLS) published today. The weak economic en- vironment and stricter regulatory requirements on sustainability were cited as reasons. For the current first quar- ter, banks expect demand for corporate loans to remain largely unchanged. However, demand for residential mort- gages is expected to pick up. \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 168 0.37% 2.85% iBoxx € Cov. Germany 28.7 1.4 3.2 iTraxx Senior Financial 68.2 -3.5 -4.4 10Yr-Yield 2.35 0.05 0.08 iBoxx € Cov. Bonds 36.2 0.2 0.2 iBoxx € Supranational 30.1 -0.1 1.8 Swap 10J 2.69 -0.01 0.00 iBoxx € Banks PS 84.1 0.6 -9.8 iBoxx € Agencies 15.3 0.6 0.2 iBoxx € Germany -24.26 1.92 1.76 iBoxx Banks NPS 106.2 -1.9 -13.0 iBoxx € Sub-Sov. Germany 22.0 0.4 1.2 iBoxx € EU 37.02 -0.47 2.59 iBoxx Banks Subordinated 171.8 -1.1 -13.5 iBoxx € Sub-Sovereign 37.7 0.0 1.0 Leisure tip for the weekend: Mathildenhöhe Darmstadt Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Sources: www.traveloptimizer.de/www.mathildenhoehe.eu/homepage/ The Mathildenhöhe in Darmstadt is an artists' colony founded at the end of the 19th century. Today it is an important cultural and historical site that attracts visitors from all over the world. The artists' colony was built on a hill named after the Grand Duchess Mathilde of Hesse-Darmstadt. A wide range of cultural events take place here every year. You can find out more about the history and development of the Artists' Colony at the Artists' Col- ony Museum. The museum has a collection of art and furniture from the Art Nouveau period. Find out more: Mathildenhöhe Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 Febuary 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 02/23 04/23 06/23 08/23 10/23 12/23 02/24 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 02/23 04/23 06/23 08/23 10/23 12/23 02/24 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 -10 0 10 20 30 40 -10 0 10 20 30 40 02/23 04/23 06/23 08/23 10/23 12/23 02/24 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 Febuary 2024 8 of 8 News from Research & Advisory  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: Sabrina Miehs, CESGA 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: Recent issues with exceptionally high oversubscriptions. Covered bonds: Timing and pricing are key. Senior Unsecured: Trend towards low new issue premiums continues. Chart of the week: Corporate lending business shows signs of stabilisation.