---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-22
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 25 January 2024 © Helaba | Research & Advisory | 25 January 2024 1 of 8 Research & Advisory Weekly Market Update Primary market environment: The DAX's peak remains in sight. In the US, the Fed is taking steps to prevent abuse of the Bank Term Funding Programme. As expected, the ECB left interest rates unchanged at its meeting today. The primary market remained very active. The large num- ber of long-dated issues was notable, and most of these crossed the finish line. Our heat map has recently shifted significantly towards the green. Whether this is a sustainable development re- mains to be seen. Primary market barometer With a cumulative order book of EUR 160bn, the EU dwarfed all other is- sues this week. The strength of the primary market was also reflected in the other issues, most of which were very successful. Issues in the covered bond segment continue to perform very well and new issue premiums are gradually falling. This week has also shown that long maturities are also attracting great interest from investors. Shin- han Bank, a Korean issuer with a EUR benchmark, was also active. The current quarterly reporting sea- son for banks means that primary market activity is lower, although the market remains receptive. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Picture brightens 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 0,01 -0,07 0,54 0,74 1,53 1,81 European Union -0,02 -0,11 0,06 0,24 0,63 2,74 Germany Covered -0,03 -0,16 0,32 0,87 2,22 3,22 EU Covered -0,02 -0,14 0,14 0,47 1,48 3,12 Banks senior preferred -0,05 -0,43 0,05 -0,28 0,50 1,90 Banks senior bail-in (SNP) -0,04 -0,39 0,00 -0,44 0,08 1,40 Banks subordinated -0,03 -0,34 0,08 -0,87 -0,04 1,28 Supranational -0,02 -0,11 0,07 0,38 0,76 2,76 Agencies -0,01 -0,17 0,41 0,62 1,44 2,40 Sub-Sovereigns Germany -0,02 -0,06 0,00 0,42 0,43 0,29 Sub-Sovereigns -0,03 -0,12 0,07 0,44 0,72 1,52 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 25 January 2024 2 of 8 SSAs The SSA primary market took a break on Monday before the EU took centre stage on Tuesday with the issuance of a dual tranche. The December 2030 was taped by EUR 3bn and the March 2053 by EUR 5bn. Order books exploded, reaching a cumulative total of EUR 160bn. Final spreads tighended by 3bp and 2bp respectively. Ile de France (10 years, Sustainable), Province of Ontario (10 years) and KommuneKredit (EUR 500 million, 15 years, WNG) also had no problems filling their order books. The Land of Bremen (EUR 750m, 8 years, WNG) had a slightly more difficult time, but eventually crossed the finishing line with a book of EUR 810m. Outlook: The primary market environment remains constructive and the overall momentum in the SSA segment is likely to continue. Several projects are already in the pipeline for the coming weeks, including further sovereign issues. Covered Bonds The brisk issuance activity in the covered bond segment continues unabated. On Monday, Olden- burgische Landesbank (OLB) (EUR 500m, 8 years, WNG), Credit Mutuel Home Loan SFH (BMK, 7 years) and Korea's Shinhan Bank (EUR 500m, 3 years, WNG, green) opened the primary market. CM Home Loan stood out with an order book of over EUR 2.8bn and a spread tightening of 8bp over target. The new issue pre- mium of only 2bp also underlines the success of the issue. The other two transactions also had impressive order books of EUR 1.25bn for OLB and EUR 1.75bn for Shinhan. According to the bank, the green covered bonds are the first of their kind in Korea. The effects of the turmoil in the Red Sea have reached the covered bond market. On the one hand, they are in- creasing the cost of ships and insurance, and on the other, they are making it more difficult for shipowners to bor- row. Hamburg Commercial Bank felt this when it issued a two-year Pfandbrief backed by ship loans. The final pric- ing of MS+73bp was 23bp higher than SocGen's 12-year covered bond. The transaction was very lucrative for in- vestors, as evidenced by the huge bookbuilding of over EUR 4bn for the EUR 500m issue. SocGen's transaction, a dual tranche, also included a 3-year covered bond. Rabobank and MüHyp (EUR 500m, WNG, green) both opted for long maturities of 10 years, which were also very well placed. The books were well Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,125% EU Aaa /AAA/AAA 2,203bn  04.12.2030 Auction 23.10.2023 2,696bn Auction 3,000% EU Aaa /AA+/AAA 5,000bn  04.03.2053 ms +86 bps 24.01.2023 51,900bn ms + 88 area 2,750% Bremen - /-/AAA 0,750bn 31.01.2032 ms +13 bps 24.01.2024 0,810bn ms + 13 area 3,100% Ontario Aa3 /A+/AA- 1,250bn 31.01.2034 ms +44 bps 24.01.2024 2,900bn ms + 45 area 3,200% Region Ile de France Aa2 /-/AA 0,800bn 25.05.2034 FRTR +36  24.01.2024 2,350bn FRTRs + 39 area 3,125% KommuneKredit Aaa /AAA/- 0,500bn 24.11.2038 ms +45 bps 24.01.2024 1,000bn ms +47 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 22 January 2024 „The trend of tightening covered bond swap spreads that has prevailed over the past two weeks remains intact. The increasingly full issue pipeline and narrowing NIPs cannot (for the time being) stop this trend. There is clearly a positive interaction between the primary market (high participation in bookbuilding even with significantly tighter re-offer levels) and the secondary market (good follow through of the new bonds averaging 3 bp - spreads of 1 to 10 bp). Both sides are feeding off each other, creating constructive momen- tum and leading to lower levels compared to the starting point at the end of 2023/beginning of 2024. The fact that the trend is by no means homogeneous and that individual consideration is absolutely necessary can be summed up by the key word "selection".". Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 25 January 2024 3 of 8 oversubscribed at just around EUR 3bn each and the final spreads tightened by 6bp and 7bp respectively com- pared with the marketing. Nordea Mortgage Bank Plc's three-year EUR covered bond floater also attracted strong investor interest, achiev- ing a final price of €3+20bp (start €3+25bp) with an order book of over €3bn. Outlook: The current momentum in the covered bond segment is likely to continue. The successful issuance of long-dated covered bonds should encourage other issuers to follow suit. Senior Unsecured The primary market for senior unsecured bank bonds has become noticeably quieter due to the cur- rent reporting season and the associated blackout periods. Some second-tier issuers and compa- nies that report relatively late are taking advantage of the receptive market environment for transactions. In total, the volume of new EUR benchmark issuance so far this week has reached EUR 4.1bn. This brings the total since 1 January to EUR 34.1 bn, well below the EUR 47.4 bn seen in the first four weeks of last year. After last week's clear predominance of non-preferred bonds, this week's issuance is evenly split between preferred and non-pre- ferred bonds. With the exception of the Rabobank transaction, the week was dominated by relatively small deals, with the total volume of EUR 4.1bn spread across 7 new issues. While the new Rabobank issue has a maturity of 10.5 years, the preferred maturities ranged between 2 and 5 years, shorter than in the early weeks of 2024. The high oversubscriptions in this week's transactions are striking. Examples include Erste & Steiermark Bank at 7.3 times and Ibercaja Banco at 9.8 times. The initial spread indication for both was very attractive, so the bid spreads were significantly lower but still quite attractive, as can be seen from the good secondary market perfor- mance. After US banks kicked off the Q4 reporting season two weeks ago, Swedbank and SEB from Sweden, among others, followed suit this week. The results were mixed, but the banks' net interest income remained strong. JP Morgan, for example, once again gave a surprisingly good outlook for net interest income in 2024, while SEB was much Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,125% Oldenburgische Landesbank AG Aa1 /-/- 0,500bn 29.01.2032 ms +59 bps 22.01.2024 1,300bn ms + 65 area 3,000% Credit Mutuel Home Loan SFH Aaa /AAA/AAA 1,500bn 03.02.2031 ms +40 bps 22.01.2024 2,600bn ms + 48 area 3,320% Shinhan Bank Aaa /-/AAA 0,500bn 29.01.2027 ms +54 bps  22.01.2024 2,000bn ms + 62 area 3,625% Hamburg Commercial Bank AG Aa3 /-/- 0,500bn 30.01.2026 ms +73 bps 23.01.2024 4,000bn ms + 83 area 3,000% Societe General SFH Aaa /-/AAA 1,250bn 01.02.2027 ms +20 bps 23.01.2024 3,500bn ms + 27 area 3,125% Societe General SFH Aaa /-/AAA 1,000bn 01.02.2036 ms +50 bps 23.01.2024 2,300bn ms + 57 area 3,064% Rabobank Aaa /-/- 1,500bn 01.02.2034 ms +37 bps 23.01.2024 3,000bn ms + 43 area 3,000% Münchener Hypothekenbank eG Aaa /-/- 0,500bn 01.02.2034 ms +34 bps  24.01.2024 2,900bn ms + 41 area 3m€ +20 bps Nordea Mortgage Bank Plc Aaa /-/- 0,750bn 31.01.2027 ms +20 bps 24.01.2024 3,700bn 3m€ + 25 area 3,000% Nordea Mortgage Bank Plc Aaa /-/- 1,000bn 31.01.2031 ms +35 bps 24.01.2024 1,800bn ms + 41 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 22 January 2024 „In the primary market, issuance in the senior segment continued to decline. On Monday, Rabobank suc- cessfully launched a 10.5 year non-preferred. This new issue was also able to tighten by 3-4bp on the sec- ondary side. Overall, the performance of this year's new issues remains strong. In particular, those with ma- turities beyond 2031 have already tightened by around 15bp on average. However, the performance of re- cent floaters is also impressive with an average tightening of 7bp. The outperformer is Deutsche Bank's 2- year preferred floater with a tightening of 11bp. Investors continue to focus on the primary market.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 25 January 2024 4 of 8 more cautious in its outlook for net interest income, but quite optimistic about commission income if interest rates fall again. The first major loan defaults had to be absorbed in isolated cases. The burden of bank levies re- mains high. Outlook: The refinancing needs of European banks will remain high in 2024. This is mainly due to long maturities and declining customer deposits. However, due to the ongoing publication of quarterly reports and the associated blackout period, activity in the primary market for senior unsecured bonds is likely to be relatively low in the com- ing weeks. Chart of the Week The trend towards tighter bund/swap spreads that has pre- vailed for some time is still in- tact, although there are signs that the momentum is slowing, especially as the main tightening move is well underway. This could lead to an easing in swap- based valuations as yield spreads over European govern- ment bonds have gradually tightened. In this situation, cov- ered bond exposure and its sometimes significant spread premiums are very attractive to investors, as the example of HCOB shows. Conversely, this could lead market participants to believe that the widening trend in covered bonds versus swaps (as an inverse function of the tightening of bund/swap spreads) also appears to be maturing. Issuer Date Issuer Date BBVA 1/30 DEUTSCHE BANK 2/1 DNB BANK 1/31 SPAREBANKEN VEST 2/1 BANCO SANTANDER 1/31 BNP PARIBAS 2/1 RAIFFEISEN BANK INTERNATIONA 1/31 ING GROEP 2/1 BAWAG GROUP 2/1 DANSKE BANK 2/2 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 4,875% Erste & Steier. Bank („E. B. Croatia”) - /-/A- 0,400bn 31.01.2028 ms +220 bps  22.01.2024 3,000bn ms + 280/290 area 4,500% National Bank of Greece S.A. Ba1 /-/- 0,600bn 29.01.2029 ms +0 bps 22.01.2024 2,200bn 5,000% 4,375% Ibercaja Banco, S.A. Baa2 /-/BBB- 0,500bn 30.07.2028 ms +165 bps  23.01.2024 4,900bn ms + 210 area 5,000% OTP Bank Nyrt. Baa3 /-/- 0,600bn 31.01.2028 ms +230 bps 23.01.2024 1,300bn ms + 260 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 22 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 Bp Canadian Imperial Bank of Commerce A2 /A-/AA- 0,500bn 29.01.2027 ms +70 bps  22.01.2024 2,400bn 3m€ +100 3,750% Rabobank A3 /A-/A+ 1,000bn 26.07.2034 ms +115 bps 22.01.2024 6,500bn ms + 150 area 3m€ +57 bps Bayerische Landesbank A2 /-/A- 0,500bn 31.01.2026 ms +57 bps 24.01.2024 2,400bn 3m€ + 85 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 22 January 2024 Bund Swap-Spread: Is the tightening trend over? ASW in bps Sources: Bloomberg, Helaba Research & Advisory 30 35 40 45 50 55 60 65 70 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 25 January 2024 5 of 8 However, the correlation between bund/swap spreads and swap-based valuations of covered bonds is only one aspect of the explanation for the sharp widening of spreads over the past year. Structural issues such as oversup- ply coupled with the unwinding of quantitative easing or a lack of market liquidity, to name but a few, have cer- tainly played their part. Short news 1/24 Green Asset Ratio: Europe’s banks are asking investors not to pay too much attention to a new green metric due to be published in in the coming weeks. Denisa Avermaete, senior policy adviser for sustainable finance at the European Banking Federation (EBF), says the number will “be a single digit number and probably lower than 7%.” In a fresh analysis seen by Bloomberg, the EBF warns against taking the figure at face value. The ratio is based on only a portion of each balance sheet. (On the Green Asset Ratio and other recent transparency regulations on ESG, see also our publication "The sharpening contours of ESG disclosure" from 30 November 2023) 1/23 New Covered Bond Label-Member: The Covered Bond Label Foundation (CBLF) is pleased to announce that Banca Popolare di Sondrio S.p.A. has joined the Covered Bond Label, which now counts a total of 139 issuers and 175 cover pools in 24 jurisdictions. 1/23 BaFin increasingly focuses on IT risks: From BaFin's perspective, cyber attacks or IT breakdowns are one of the biggest risks for the financial sector. These disruptions do not even have to occur at banks or insurers them- selves. Sudden problems at service providers commissioned by them can also affect the entire system. This is ac- cording to the report "Risks in the focus of BaFin 2024". 1/23 Euro Bank lending survey results – Q4 2023: Credit standards for firms tightened moderately further with more tightening expected in early 2024, according to the results of the bank lending survey by the European Cen- tral Bank (ECB). Loan demand by firms and households continued to decline substantially, but less steeply. 1/22 S&P Global Market Intelligence: Italian bank profits to outperform European rivals in 2024: Banks in Italy are likely to surpass their European peers in terms of profitability in 2024, S&P Global Market Intelligence reports. The weighted average return on average common equity for rated Italian banks is expected to hit roughly 14% for the year, according to Mirko Sanna, lead analyst for financial institutions at S&P Global Ratings. 1/19 EU tells banks to put capital at center of transition plans: European bank regulators are preparing a set of ESG rules that focus squarely on capital adequacy, amid persistent evidence that the industry is failing to address growing risks from climate change. The authority has previously recommended that banks integrate ESG into risk management. The industry has until April 18 to respond, Bloomberg says. 1/18 The EBA consults on Guidelines on the management of ESG risks: The European Banking Authority (EBA) launched a public consultation on draft Guidelines on the management of Environmental, Social and Governance (ESG) risks. The draft Guidelines set out requirements for institutions for the identification, measurement, man- agement and monitoring of ESG risks, including through plans aimed at addressing the risks arising from the tran- sition towards an EU climate-neutral economy. The consultation runs until 18 April 2024. Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 25 January 2024 6 of 8 Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 168 2,87% -0,50% iBoxx € Cov. Germany 25,3 -0,1 3,0 iTraxx Senior Financial 68,2 -4,4 0,9 10Yr-Yield 2,34 0,06 0,44 iBoxx € Cov. Bonds 35,7 -0,3 1,6 iBoxx € Supranational 28,1 -0,2 0,8 Swap 10J 2,73 0,04 0,35 iBoxx € Banks PS 82,5 -11,5 0,9 iBoxx € Agencies 14,4 -0,7 3,9 iBoxx € Germany -26,77 -0,75 8,16 iBoxx Banks NPS 106,2 -13,0 -0,3 iBoxx € Sub-Sov. Germany 20,7 0,0 -0,1 iBoxx € EU 34,08 -0,36 0,97 iBoxx Banks Subordinated 168,3 -17,0 3,5 iBoxx € Sub-Sovereign 36,3 -0,4 0,8 Leisure tip for the weekend: Torchlight hike in Vogelsberg Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.ffh.de/www.vogelsberg-touristik.de When the winter nights are long and dark, you can go on a torch hike in the Vogelsberg. With someone who knows the area and a bright torch in hand, this adventure is great fun! Take the Hoherodskopf tour for example: on a starry night you can look out over the fields into the Wetterau and see the Frankfurt skyline! Torchlight walks are available on request. The Hoherodskopf Information Centre can arrange them. Find out more: Torchlight hike Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 25 January 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 | 25 January 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: EU overshadows all other issues this week. Covered bonds: Long maturities in demand. Senior Unsecured: Quarterly reporting season gets into full swing. Chart of the week: Bund swap spread: Tightening trend stalls?