---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-21
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 1 Febuary 2024 © Helaba | Research & Advisory | 1 Febuary 2024 1 of 8 Research & Advisory Weekly Market Update Primary market environment: As expected, the US Federal Reserve left the key interest rate range unchanged at 5.25-5.50% and showed no signs of being in a hurry to change the key in- terest rate. The primary markets are currently in very good shape. Bonds with long maturities can also be issued without any problems for the most part. Our heat map showed a higher proportion of green last week. This temporary development already seems to be over again. Primary market barometer With an issue volume of EUR 71 bil- lion, January was a very successful month. The most active issuer was KfW. The primary market remains in good shape and there is no end in sight to the brisk issuing activity for the time being. Most order books are significantly oversubscribed and new issue premi- ums are trending downwards, em- phasising the current good state of the primary market. Less regular is- suers, such as the Australian NAB, are also pleased with the lavish order books, in this case over EUR 4bn. The current quarterly reporting sea- son for banks means that primary market activity is relatively low. How- ever, the transactions that have taken place show that the market environ- ment is currently very favourable. More and more banks are reporting and therefore able to come back to the primary market again.. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Change in Sentiment only temporary? 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 -0,05 0,31 0,50 1,34 1,69 European Union 0,04 0,07 0,07 0,11 0,75 2,78 Germany Covered 0,05 0,07 0,40 0,91 2,37 3,27 EU Covered 0,04 0,02 0,20 0,51 1,63 3,18 Banks senior preferred -0,01 -0,22 -0,37 -0,61 0,31 1,55 Banks senior bail-in (SNP) 0,01 -0,18 -0,46 -0,65 0,02 1,07 Banks subordinated 0,00 -0,15 -0,22 -1,00 -0,06 1,03 Supranational 0,04 0,07 0,13 0,27 0,91 2,84 Agencies 0,02 0,00 0,24 0,45 1,39 2,37 Sub-Sovereigns Germany 0,03 0,05 0,11 0,38 0,61 0,32 Sub-Sovereigns 0,03 0,05 0,10 0,34 0,87 1,64 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 Febuary 2024 2 of 8 SSAs As in the previous week, the SSA primary market only started with activities on Tuesday. The Walloon Region, NRW.Bank (EUR 1bn, 5 years) and the EIB (EUR 3bn, 15 years) made the start. The Belgian region even issued a dual tranche, consisting of a 6-year bond (EUR 700 million, OLO + 45 bp) and an increase in the social bond maturing in March 2043 (EUR 800 million, OLO + 43 bp). The 15-year term of the EIB bond was also a rarity; the last time the institution issued such a long-term bond was in 2021. All issues met with keen investor interest, with the EIB standing out with an order volume of EUR 45 billion. The state of Saxony-Anhalt (EUR 500 million, 30 years, WNG) and Joint Länder (EUR 1 billion, 7 years, WNG) also successfully utilised the ongoing con- structive market environment. Investitionsbank Berlin (EUR 500 million, 5.25 years, WNG) was no less successful today with investor demand totalling EUR 960 million. The largest issuer in January was KfW with an issue volume of EUR 12.35bn, spread over 5 tranches. It was fol- lowed by the EIB (EUR 10.15bn, 3 tranches), the EU (EUR 8bn, 2 tranches) and the EFSF (EUR 7bn, 2 tranches). Outlook: Primary market activities are likely to continue in the coming weeks. The EFSF has already sent RfPs (Re- quest for Proposal) to banks for an upcoming transaction. Further issues by federal states are expected. Covered Bonds As expected, the brisk issuing activity also continued in the covered bond segment this week. Almost every issue is currently generating impressive order books and has managed to significantly reduce the initial spread requirement in bookbuilding. It is particularly pleasing that there is also strong demand for longer maturities again. The required new issue premiums are also gradually dwindling. Arkea Arkea Home Loan SFH (Bmk, 10 years), Hypo NOE (EUR 500 million, 6 years, WNG) and National Australia Bank (NAB) (EUR 1.25 bil- lion, 7 years) kicked off the primary market on Monday. NAB last issued a EUR benchmark in January 2023 and again opted for this early point in the year. Its books, which were bulging with EUR 4bn, proved it right. The final spread was set at MS +58 bps, which corresponds to a tightening of 8 bps compared to the marketing spread. It is not only the success of this transaction that emphasises that covered bonds are currently very popular. The over- subscription rates of the two parallel transactions were also impressive at 2.4 and 2.6 times respectively. This was followed on Tuesday by Argenta Spaarbank with a ten-year green benchmark (EUR 750m) and Helaba with a public sector covered bond (EUR 1.25bn), also with a ten-year maturity. With the order book very well over- subscribed, pricing was 7 bps below guidance at MS+33 bps. The order books are characterised by low spread sen- sitivity and high granularity (Argenta >140, Helaba >80 investors involved). The lively activity on the primary mar- ket continued unabated on Wednesday. The offerings of Berlin Hyp (EUR 500m, 3 years, green, WNG) and Achmea Bank (EUR 500m, 10 years, WNG) also met with impressive demand, with order books of EUR 4bn and EUR 2.2bn respectively. Belfius Bank today successfully issued a covered bond (EUR 500m) with a maturity of 7 years. With an order book of EUR 2.2bn, the final spread was MS+38bp, 8bp below marketing. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,000% EIB Aaa /AAA/AAA 3,000bn 15.02.2039 ms +38 bps 30.01.2024 45,000bn ms +40 area 2,625% NRW.BANK Aa1 /AA/AAA 1,000bn 06.02.2029 ms +8 bps 30.01.2024 2,800bn ms +11 area 3,000% Région Wallonne A3 /-/- 0,700bn 06.12.2030 BGB +45 Bp  30.01.2024 2,450bn BGB +48 area 3,500% Région Wallonne A3 /-/- 0,800bn  15.03.2043 BGB +43 bp  30.01.2024 2,800bn BGB +45 area 2,625% Länder 64 - /-/AAA 1,000bn 07.02.2031 ms +12 bps 31.01.2024 1,450bn ms +12 area 3,150% Sachsen-Anhalt Aa1 /-/AAA 0,500bn 06.02.2054 ms +71 bps 31.01.2024 1,650bn ms +74 area 2,625% Investitionsbank Berlin - /-/AAA 0,500bn 08.05.2029 ms +10 bps 01.02.2024 0,960bn ms + 11 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 29 J anuary 2024 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 Febuary 2024 3 of 8 On the secondary market, the "spread laggards" will certainly attract the interest of one or two investors in a mar- ket environment that is expected to remain generally favourable. However, it remains to be seen whether this will be enough to improve performance. Outlook: There are currently hardly any signs of weakness in the primary market. It can therefore be assumed that the brisk issuing activity will continue. Senior Unsecured As expected, the primary market for senior unsecured bank bonds has cooled significantly in recent trading days. This is due to the ongoing quarterly reporting season for banks and the associated blackout period. However, the transactions that have been completed have been very successful, indicating a friendly market environment. Italy's Iccrea Banca's new EUR 0.5bn 5-year preferred bond was 7.5 times oversub- scribed during the bookbuilding process. The spread narrowed by 45bp compared to the first indiation, and at re- offer was ms +180bp and thus close to the issuer curve. In the secondary market, the bond however continued to perform well. The quarterly bank results have been quite mixed so far. The US banks were able to report encouraging figures (see our Weekly Market Updates from last week). SEB, on the other hand, was much more cautious in its outlook for net interest income, but optimistic about commission income if interest rates fall again. The first major loan Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,000% HYPO NOE Aa1 /-/- 0,500bn 05.02.2030 ms +51 bps 29.01.2024 1,300bn ms + 57 area 3,072% Arkéa Home Loans SFH Aaa /AAA/AAA 1,000bn 07.02.2034 ms +45 bps 29.01.2024 2,380bn ms + 53 area 3,146% National Australia Bank Aaa /-/AAA 1,250bn 05.02.2031 ms +58 bps 29.01.2024 4,000bn ms + 66 area 3,125% Argenta Spaarbank NV - /AAA/- 0,750bn 06.02.2034 ms +58 bps  30.01.2024 4,900bn ms +68 area 2,875% Helaba Aaa /-/- 1,250bn 06.02.2034 ms +33 bps 30.01.2024 2,150bn ms +40 area 3,000% Achmea - /AAA/- 0,500bn 07.02.2034 ms +47 bps 31.01.2024 2,850bn ms +55 area 2,750% Berlin Hyp AG Aaa /-/- 0,500bn 07.05.2027 ms +14 bps  31.01.2024 3,200bn ms + 21 area 2,875% Belfius Bank SA/NV - /AAA/AAA 0,500bn 12.02.2031 ms +38 bps 01.02.2024 2,200bn ms + 47 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 29 January 2024 „Flows increased again, as is customary for the monthly rebalancing. In the medium maturity range (4-6y), real money accounts and ETF funds were increasingly seen as sellers. In contrast, shorter maturities, the lat- est floaters from the Landesbanken and Deutsche Bank, as well as lower-risk names such as those from Scandinavia and the Benelux countries, were in demand. In anticipation of the upcoming central bank meet- ings, the majority of investors will return to the sidelines.” Comment from the Helaba trading floor „The increasing prospects of key interest rate cuts in the near future are fuelling the markets. Covered bonds are also benefiting from this. The positive interactions between the primary and secondary markets are continuing and are causing final new issue premiums to fall increasingly (compared to the start of the year). The attractive yield differential between financials/credits and covered bonds from an investor's per- spective also does not yet appear to have been exhausted. In terms of geographical preferences, "off-core" continues to be favoured. Germany and Austria are still lagging somewhat behind the general trend, alt- hough a slight buying sentiment has also been observed here recently". Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 Febuary 2024 4 of 8 defaults had to be absorbed in isolated cases. The burden of bank levies remains high. This week, the Spanish banks BBVA and Banco Santander reported strong Q4 results and both expect profits to rise further in 2024. To- day, however, French sector leader BNP Paribas surprised market participants with a 50% drop in profits com- pared to last year and a reduction in profit targets for this year and next. Among other things, revenues from in- surance and asset management fell. ING Group's more cautious outlook was also negatively received today, while Deutsche Bank's outlook was upbeat and it announced further dividends and share buybacks. (For the outlook to 2024, see our publication European Big Banks: Heading into 2024 with high risk buffers of 10 January 2024).. Outlook: European banks' funding needs will remain high in 2024, mainly due to long maturities and declining customer deposits (see our Primary Market Update EUR Benchmark Bank Bonds dated 9 January 2024). How- ever, the current quarterly reporting season is at its peak. While many institutions are therefore in the blackout period, more and more banks have already submitted their reports and are able to take advantage of the favoura- ble market environment for issuance. Issuer Date Issuer Date BAWAG GROUP AG 2/1 BANCA MONTE DEI PASCHI SIENA 2/6 DEUTSCHE BANK AG-REGISTERED 2/1 SVENSKA HANDELSBANKEN-A SHS 2/7 SPAREBANKEN VEST 2/1 BANCO BPM SPA 2/8 BNP PARIBAS 2/1 SPAREBANK 1 SR BANK ASA 2/8 ING GROEP NV 2/1 SOCIETE GENERALE SA 2/8 DANSKE BANK A/S 2/2 CREDIT AGRICOLE SA 2/8 UNICREDIT SPA 2/5 KBC GROUP NV 2/8 NORDEA BANK ABP 2/5 CREDIT SUISSE GROUP AG-REG 2/9 INTESA SANPAOLO 2/6 SPAREBANKEN SOR 2/9 UBS GROUP AG-REG 2/6 BPCE SA 2/9 UBS GROUP AG-REG 2/6 Sources: Bloomberg, Helaba Research & Advisory Reporting dates of selected banks Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,733% Iccrea Banca S.p.A. - /BB/BB- 0,500bn 05.02.2029 ms +180 bps  29.01.2024 3,750bn ms + 225 area 3,250% DekaBank Aa2 /A/- 0,500bn 08.02.2029 ms +75 bps 30.01.2024 1,750bn ms +105 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 29 January 2024 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3m€ +70 bps LBBW A2 /-/A- 1,500bn 09.11.2026 ms +70 bps  01.02.2024 2,500bn 3mE + 100 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 29 January 2024 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 Febuary 2024 5 of 8 Chart of the Week The market for covered bonds is in very good shape, particularly in terms of investor commitment at the longer end of the curve. In contrast to the second half of 2023, issues with a term of 10 years can be issued very well again, as the examples of the Helaba and Argenta issues show. In this respect, it is not surpris- ing that many issuers are cur- rently taking advantage of the opportunity that presents itself, especially as we believe there is likely to be pent-up demand. The latent steepening tendencies of the yield curve also make long-term issues with the given spreads increasingly interesting and offer interesting absolute yields in perspective. The percentage share of issues in January with maturities of 10 years and more in the total volume is significantly higher this year, with the exception of the SSA segment. In the case of SSAs, however, it should be noted that the absolute number of issues in this maturity band has risen significantly to 23 compared to 9 in the previous year. Short news 1/31 International banking statistics and global liquidity indicators: The Bank for International Settlements (BIS) published the BIS international banking statistics and global liquidity indica- tors as of the end of September 2023. According to the figures, cross-border bank credit to advanced economies expanded. 1/29 Fitch Ratings: Excess Spread reduces for Italian Covered Bonds. According to the agency the excess spread available to Italian covered bond programmes (Obbligazioni Bancarie Garantite, OBG) is shrinking, particularly for programmes with a high proportion of unhedged fixed-rate assets originated at low interest rates and new issues with higher coupons, says Fitch Ratings. In 2023, the widening interest rate mismatch between assets and liabili- ties will increase the loss from asset-liability mismatch, resulting in a higher break-even over-collateralisation (OC) for any given timely payment rating level above the issuer's rating. 1/29 EBA on classification methodologies for exposures to ESG risks: The European Banking Authority (EBA) launched an industry survey to receive input from credit institutions on their methodologies to classify expo- sures to environmental, social, and governance (ESG) risks, as well as on the accessibility and availability of ESG data for this purpose. The deadline to respond to the industry survey is 29 March 2024. 1/29 Spanish banks' 2023 tax bill forecast to climb almost a quarter to €12Bn: Spain's largest lenders will pay almost a quarter more into state coffers for 2023 as the country's recently introduced bank tax and higher reve- nues boost government takings. The country's six largest lenders are expected to pay more than €12 billion in ag- gregate tax for 2023, an increase of 22.9% from 2022, S&P Global Market Intelligence reports. Longer terms back in vogue Share of issues in January with maturities of 10 years and more in the total issue volume in % Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 11,6 3,6 9,1 62,2 20,2 27,3 19,4 58,5 0 10 20 30 40 50 60 70 0 10 20 30 40 50 60 70 Covereds SP SNP SSA 2023 2024 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 Febuary 2024 6 of 8 1/26 Banks should check client sustainability despite due diligence carveout: Banks should be forced to check the environmental and human rights impacts of their clients, according to a draft EU statement seen by Euronews. Lawmakers and governments are set to push for further legislation to cover the financial sector after it was carved out from the Corporate Sustainability Due Diligence Directive. (Finextra) 1/25 Conference on shortening the securities settlement cycle in the EU: The European Commission hosted a roundtable on accelerating the securities settlement cycles in the EU. Most major financial markets operate on a T+2 settlement cycle. With the growing digitalization of finance and international moves to accelerate cycles, there is growing momentum towards a shorter settlement cycle. 1/23 ECB report on risks of misalignment of banks’ financing with the EU climate objectives: The ECB pub- lished a report focusing on the transition risks stemming from banks’ credit portfolios. As a key takeaway from the report, risks in relation to the transition towards a decarbonised economy can have a significant effect on the credit portfolio of a financial institution. It is thus vital for financial institutions to assess the risks arising from the transition towards a decarbonised economy according to the report. (blog network) Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 171 1,41% 1,22% iBoxx € Cov. Germany 26,3 1,0 4,1 iTraxx Senior Financial 70,3 2,1 -4,0 10Yr-Yield 2,16 -0,17 0,15 iBoxx € Cov. Bonds 36,3 0,6 2,7 iBoxx € Supranational 29,0 0,9 1,9 Swap 10J 2,57 -0,16 0,13 iBoxx € Banks PS 77,3 -5,2 -12,0 iBoxx € Agencies 14,3 -0,1 2,2 iBoxx € Germany -28,32 -1,55 3,59 iBoxx Banks NPS 101,3 -4,8 -19,4 iBoxx € Sub-Sov. Germany 21,9 1,2 2,6 iBoxx € EU 35,05 0,98 1,10 iBoxx Banks Subordinated 162,8 -5,6 -13,4 iBoxx € Sub-Sovereign 37,2 0,9 1,5 Leisure tip for the weekend: German Mining Museum Bochum Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.bergbaumuseum.de The German Mining Museum Bochum, founded in 1930, is a Leibniz Re- search Museum for Georesources and is dedicated to collecting, preserv- ing, researching, exhibiting and communicating the material heritage of mining. We fulfil this mission above and below ground, locally in Bochum, regionally, nationally and internationally. Our credo is Disseminate knowledge - Experience mining. And we do it all under one roof. Find out more: Mining Museum Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 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 01/23 03/23 05/23 07/23 09/23 11/23 01/24 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 01/23 03/23 05/23 07/23 09/23 11/23 01/24 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 01/23 03/23 05/23 07/23 09/23 11/23 01/24 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 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  FOCUS on Credit: ESG ratings: Relevance, regulation and responses  Video: Sustainable Finance – ICMA & Helaba Talk 2023  Focus on Credit: Social and sustainability bonds: ICMA Principles - the freestyle ele- ment makes all the difference 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: Issue volume in January high at around EUR 71bn. Covered bonds: Primary market remains in very good shape. Senior Unsecured: New bond from Italian Iccrea Banca in high demand. Chart of the week: Long maturities back in vogue