---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-19
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 22 Febuary 2024 © Helaba | Research & Advisory | 22 February 2024 1 of 8 Research & Advisory Weekly Market Update Primary market environment: The DAX hit a new record high and the Japanese Nikkei reached its highest level in around 35 years. In the US, the FOMC minutes do not point to a rapid rate cut and according to Barkin of the Fed, the current data underlines the ongoing price pressures. The primary market environment remains constructive and issuance is likely to remain strong. Our heat map shows a slight improvement in sentiment since the last update. However, it is too early to give the all-clear. Primary market barometer New issues in the SSA segment con- tinue to meet their targets easily. Once again the EU stands out with an order book of EUR 67bn. Given the constructive environment and the fact that new issue premiums are cur- rently low, we expect issuance to re- main buoyant. Portugal's Novo Banco's covered bond issue met with exceptionally strong demand of around EUR 5bn. All other issuers this week also had no prob- lems meeting their funding targets. New issues have been well received in the primary market. Some have seen the best performance in weeks. As the banks’ quarterly reporting season draws to a close, we expect primary market activity in this segment to pick up further. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Slight mood enhancement 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 0,02 0,15 0,32 0,97 1,49 3,12 European Union 0,00 0,00 0,25 0,42 0,83 3,02 Germany Covered 0,00 0,13 0,53 1,07 2,61 3,38 EU Covered 0,00 0,07 0,13 0,44 1,68 3,13 Banks senior preferred -0,02 -0,06 -0,01 -0,09 0,58 1,08 Banks senior bail-in (SNP) -0,02 -0,15 -0,15 -0,28 -0,05 0,43 Banks subordinated 0,00 -0,04 0,03 -0,46 -0,12 0,35 Supranational 0,00 0,02 0,23 0,47 0,98 2,91 Agencies 0,01 0,03 0,18 0,69 1,60 3,08 Sub-Sovereigns Germany 0,00 0,03 0,11 0,37 0,77 0,61 Sub-Sovereigns 0,00 0,01 0,16 0,45 0,95 1,72 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 February 2024 2 of 8 SSAs The SSA primary market started this week without a "Monday break" as the State of Lower Saxony increased the size of its September 2034 bond by EUR 500m (WNG). The deal was successfully over- subscribed twice. On Tuesday, the EU issue (EUR 7bn, 10 years) met with strong investor demand. Bookbuilding totalled over EUR 67bn. The spread tightened by 2 bps to MS+29 bps. Despite strong competition in the EU pri- mary market, the Autonomous Community of Madrid also ventured onto the trading floor on Tuesday with a sus- tainability bond. The EUR 1bn (10 years) issue was ultimately 4.2 times oversubscribed. The spread tightened by 6bp to SPGB + 16bp compared to the marketing. BayernLabo (EUR 500m, 7 years, social, WNG) and Erste Abwick- lungsanstalt (EAA) (EUR 500m, 3 years, WNG) easily met their issuance targets on Wednesday. Outlook: The SSA primary market remains constructive and there is currently little or no need to pay new issue premiums. Covered Bonds Momentum in the primary market has picked up again this week. On Monday, Arkea Public Sector SCF was the first issuer to take the stage. Out of a bookbuilding of EUR 2.2bn, the issuer decided to print EUR 750m. The final spread was 7bps tighter than at the time of marketing. Austria's Bawag PSK followed successfully on Tuesday with a 7-year benchmark (EUR 750m). Portugal's Novo Banco (EUR 500m, 3 years, WNG) issued its first benchmark covered bond on Wednesday. Follow- ing the successful issuance of Banco Santander Totta and Banco BPI this month, the issue went exceptionally well with an order book of EUR 5bn. The order book catapulted the issue to the top of the year alongside Argenta Spaarbank. However, with a bid-to-cover ratio of 9.8, the Novo Banco issue was the sole leader. Hamburger Spar- kasse (EUR 500m, 7 years, WNG) and Hypo Tirol with a sub-benchmark (EUR 250m, 5 years, WNG) were also suc- cessful, albeit with lower oversubscriptions of 1.6 and 1.9 times respectively. Crédit Agricole Home Loan SFH rounded off Wednesday's primary activity. The benchmark issue (EUR 1.25bn) with a maturity of 6.75 years achieved a volume of EUR 2.7bn and the issue spread tightened by 8bp to MS+39bp compared to the marketing. Outlook: Despite ongoing uncertainties, the primary market looks favourable. We therefore expect the primary market to remain buoyant. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,625% Niedersachsen - /-/AAA 0,500bn  09.02.2034 ms +17 bps 19.02.2024 0,850bn ms+18 area 3,125% EU Aaa /AA+/AAA 7,000bn 04.12.2034 ms +29 bps 20.02.2024 60,000bn ms + 31 area 3,462% Madrid Baa1 /A/- 1,000bn 30.04.2034 SPGB+16  20.02.2024 3,900bn SPGB + 22 area 2,875% Erste Abwicklungsanstalt Aa1 /AA/AAA 0,500bn 01.03.2027 ms +4 bps 21.02.2024 1,150bn ms +5 area 2,875% Bay. Landesbodenkreditanstalt Aaa /-/- 0,500bn 28.02.2031 ms +17 bps  21.02.2024 0,850bn ms + 18 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 19 February 2024 „Last week brought no new trends in the secondary market. German Pfandbriefe remained the underper- former in an otherwise quite constructive picture. Inflows tended to move from the euro core countries to the European periphery, notably Italy, Spain and the revived Portuguese market. Bonds from our western neighbour France also continue to be in greater demand. The main drivers are coming from abroad. Domes- tic investors are still providing some support for German securities, but even here a more cautious approach can be observed". Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 February 2024 3 of 8 Senior Unsecured The banks’ reporting season is drawing to a close and the primary market is starting to pick up again. So far this week, two preferred and three non-preferred EUR benchmark bonds have been issued. The transactions met with strong investor demand, with order books typically around 5 times oversubscribed. French cooperative group Crédit Agricole impressed with a 12-year transaction on Monday, with the order book for the non-preferred bond reaching over EUR 6.2bn. The spread narrowed by 35bp during the bookbuilding pro- cess and tightened further in subsequent trading. Interest in significantly shorter maturities was met by Danish Nykredit Realkredit, which launched both a fixed and a floating rate tranche at the beginning of the week. Alt- hough the order sizes of EUR 1.4bn and EUR 2.1bn were not in the same league as Crédit Agricole’s, the no grow sizes of EUR 300m and EUR 500m resulted in impressive coverage ratios of 4.7x and 4.2x respectively. Rarely seen Banca IFIS from Italy also saw strong investor demand for its EUR 400m preferred issue, with a 50 Bp. spread tightening during the bookbuilding followed by a further -26bp in the secondary market. 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 further 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 3,111% Arkéa Public Sector SCF Aaa /-/- 0,750bn 28.02.2029 ms +33 bps 19.02.2024 2,200bn ms + 40 area 3,125% BAWAG P.S.K. Aaa /-/- 0,750bn 27.02.2031 ms +52 bps 20.02.2024 1,300bn ms + 58 area 3,000% Hamburger Sparkasse AG Aaa /-/- 0,500bn 28.02.2031 ms +34 bps 21.02.2024 0,820bn ms + 38 area 3,250% Hypo Tirol Bank AG Aa1 /-/- 0,250bn 28.02.2029 ms +54 bps 21.02.2024 0,530bn ms + 60 area 3,000% Credit Agricole Home Loan SFH Aaa /AAA/AAA 1,500bn 01.12.2030 ms +39 bps 21.02.2024 3,058bn ms + 47 area 3,250% Novo Banco SA Aaa /-/- 0,500bn 01.03.2027 ms +45 bps 21.02.2024 4,900bn ms +55 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 19 February 2024 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 5,500% Banca IFIS S.p.A. Baa3 /-/BB+ 0,400bn 27.02.2029 ms +290 bps 20.02.2024 2,000bn ms + 340 area 3m€ +35 Bp KBC Ifima A1 /A+/A+ 1,000bn 04.03.2026 ms +35 bps 22.02.2024 2,500bn 3m€ +55 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 19 February 2024 „The market continues to move sideways, with the iTraxx Financial currently back at the lower end of the spread range. However, a catalyst for a breakthrough is still missing. There is risk appetite, however, not for banks in Europe. Investors are taking a closer look and differentiate. After an overarching spread rally since November 2023, the market would be susceptible to a correction, but it remains very stable across the board. However, poor figures from individual companies are being severely penalised, as we know from the stock market. However, there is no contagion." Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 February 2024 4 of 8 Chart of the Week The Single Resolution Board (SRB) published its Minimum re- quirement for own funds and eli- gible liabilities (MREL) dash- board for Q3 2023 recently. The dashboard presents the evolu- tion of MREL targets and short- falls for resolution and non-reso- lution entities as well as the level and composition of resources of resolution entities in the quarter. The very large majority of banks under the SRB remit closed their MREL shortfalls ahead of the final deadline of 1st Janu- ary 2024. The MREL shortfall against final targets (including the Countercyclical Buffer Requirement) of resolution entities was equal to EUR 8.9 bn, corresponding to only 0.1% the Total Risk Exposure Amount (TREA). This amount corresponds to 14 banks, of which 11 have a longer transitional period to meet their final targets ending, in most cases, in 2024-2025. The level of own funds and eligible liabilities (MREL resources) was equal to EUR 2,520 bn (33.8% TREA). For banks with capital markets access, the issuance of senior non-preferred bonds plays an im- portant role to meet their MREL requirements. (SRB MREL dashboard Q3 2023) Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,125% Credit Agricole SA A3 /A-/A+ 1,250bn 26.02.2034 ms +135 bps 19.02.2024 6,000bn ms + 170 area 3m€ +65 Bp Nykredit Realkredit A/S - /BBB+/A 0,300bn 27.02.2026 ms +65 bps 19.02.2024 1,400bn 3mE + 100 area 3,875% Nykredit Realkredit A/S - /BBB+/A 0,500bn 05.07.2027 ms +105 bps 19.02.2024 2,100bn ms + 145 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 19 February 2024 Issuer Date Issuer Date CREDIT SUISSE GROUP AG-REG 2/23 ERSTE GROUP BANK AG 2/29 STANDARD CHARTERED PLC 2/23 AAREAL BANK AG 2/29 BANK OF IRELAND GROUP PLC 2/26 Sources: Bloomberg, Helaba Research & Advisory Reporting dates of selected banks MREL relies strongly on non-preferred senior bonds MREL composition by bank category Sources: SRB, Helaba Research & Advisory Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 February 2024 5 of 8 Short news 2/21 BaFin signals tough stance on banks’ bail-in bonds: Germany’s top official for winding down failing banks said lenders must keep selling bonds that can absorb losses. While higher rates make it more expensive to replace maturing notes, banks will still need to meet a minimum requirement for securities such as AT1 bonds and subordinated debt, Bloomberg reports. 2/21 New Covered Bond Label Members: The Covered Bond Label Foundation (CBLF) is pleased to announce that Bank of New Zealand and TSB Bank has joined the Covered Bond Label, which now counts a total of 142 issuers and 178 cover pools in 25 jurisdictions. 2/21 The European Covered Bond Council (ECBC) publishes the 2024 update of its Global Concept Note on Third Country Equivalence for Covered Bonds. The ECBC Global Issues Working Group, developed the Global Concept Note in early 2023 to provide a roadmap aimed at helping regulators and national supervisory authorities outside of the EEA, and stakeholders in covered bond markets more generally, to act in the covered bond sphere by meeting the requirements and align policy and market best practices to achieve equivalence with the Covered Bond Di- rective. The third country equivalence regime offers a chance to harmonise policies and enhance regulatory treat- ment. This updated 2024 version of the Note aims to catalyse the ongoing harmonisation of the covered bond asset class at both EU and global levels. 2/19 A stronger crisis framework in a financial world always in motion: The Single Resolution Board (SRB) has published a speech by Dominique Laboureix, Chair of the SRB, on the lessons learned after the 2023 bank failures in the US and Switzerland, and the new risks that we may be facing. "The Basel III package, the Banking and Capital Markets Unions packages are good examples of reforms that have been pending for a long time and that would improve our financial systems," he says. 2/19 Europe’s largest banks top €100 Billion profit for first time: Europe’s largest banks exceeded €100 billion in profit for the first time last year as the lift from rising interest rates handed most of them record earnings. Three-quarters of the lenders in the group achieved the highest profit in their history, data compiled by Bloom- berg shows. The surge in profitability has allowed banks to ratchet up the amount of money they are returning to investors. 2/16 Provisional deal with Parliament on crisis preparedness: The Council and the European Parliament reached a provisional agreement on the regulation for a single market emergency instrument (SMEI), which after the agreement will be renamed Internal Market Emergency and Resilience Act (IMERA). 2/16 ECB and Climate transition risk in the banking sector: Climate-related risks are due to increase in coming years and can pose serious threats to financial stability. This European Central Bank paper, by means of a DSGE model including heterogeneous firms and banks, financial frictions and prudential regulation, shows the need of climate-related capital requirements in the prudential framework. 2/16 Droughts and heatwaves could dent Spanish banks' capital: Severe droughts and heatwaves in Spain could have a persisting impact on the domestic lenders' solvency by slowing down the economy and leading to more loan losses, says Pablo Hernandez de Cos, Governor of the Bank of Spain, according to Reuters. Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 February 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 171 1,54% 1,53% iBoxx € Cov. Germany 29,3 0,7 4,0 iTraxx Senior Financial 66,2 -1,9 -1,9 10Yr-Yield 2,44 0,09 0,11 iBoxx € Cov. Bonds 36,4 0,2 0,7 iBoxx € Supranational 30,0 0,0 1,9 Swap 10J 2,79 0,10 0,06 iBoxx € Banks PS 82,0 -2,1 -0,5 iBoxx € Agencies 15,4 0,1 1,0 iBoxx € Germany -22,13 2,13 4,65 iBoxx Banks NPS 101,2 -5,0 -5,0 iBoxx € Sub-Sov. Germany 21,9 -0,1 1,2 iBoxx € EU 36,93 -0,09 2,85 iBoxx Banks Subordinated 169,3 -2,5 0,9 iBoxx € Sub-Sovereign 37,4 -0,3 1,1 Leisure tip for the weekend: Explorata, Zella-Mehlis (Thuringia) 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/ In the Explorata hands-on world, explorers of all ages can discover the se- crets of physical phenomena. The name says it all: explore - discover, in- vestigate, examine. Over 100 experimental stations on 1,300 m² are wait- ing to be tried out and understood. There is no "no touching" here. Partici- pation and hands-on experience are expressly encouraged. Families, school classes, tour groups or with friends, there's something for everyone at Explorata. Find out more: Explorata Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 February 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 | 22 February 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: New issues continue to meet their targets easily. Covered bonds: Novo Banco with exceptional demand. Senior Unsecured: Transactions show good spread performance. Chart of the week: MREL relies strongly on non-preferred senior bonds.