---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-23
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 18 January 2024 © Helaba | Research & Advisory | 18 January 2024 1 of 8 Research & Advisory Weekly Market Update Primary market environment: Dwindling hopes of a rapid interest rate cut in the US weighed on sentiment. Tensions in the border region between Iran and Pakistan threatened to escalate. De- spite this, the primary market remained very active, although the high volumes of the previous week were not matched. The red colouring of our heat map has intensified. Volatility is likely to continue. Primary market barometer The primary market in the SSA seg- ment continues to be very active, alt- hough the high issuance volumes of the previous week have not been re- peated. Since Monday, three German states have taken to the stage. All had no problems with successful is- suance. Covered bond issuance has also been a success this week. Both spreads and new issue premiums were at high levels. Long maturities, such as Caffil's 10-year covered bond, are also back in demand. The primary market in this segment has been very active since the begin- ning of the year, albeit with a slight downward trend recently. In the next few days the major US banks will re- turn after their quarterly releases, while in Europe the blackout period is beginning. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Sentiment remains subdued 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 0,08 0,30 0,59 0,98 1,23 1,66 European Union 0,01 0,04 0,26 0,46 0,64 2,90 Germany Covered 0,01 0,30 0,66 1,16 2,34 3,45 EU Covered 0,02 0,18 0,39 0,70 1,58 3,26 Banks senior preferred 0,07 0,13 0,50 0,15 0,54 2,24 Banks senior bail-in (SNP) 0,07 0,04 0,43 -0,04 -0,02 1,77 Banks subordinated 0,06 0,03 0,40 -0,57 0,00 1,68 Supranational 0,01 0,08 0,27 0,59 0,79 2,91 Agencies 0,06 0,31 0,62 0,95 1,31 2,50 Sub-Sovereigns Germany 0,01 0,09 0,13 0,52 0,41 0,40 Sub-Sovereigns 0,02 0,11 0,27 0,66 0,61 1,68 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 January 2024 2 of 8 SSAs The SSA primary market is less dynamic this week than last. A total of 10 bonds were issued with a total volume of more than EUR 7.8bn. Last week, the figure was already over EUR 20bn in the middle of the week and over EUR 28bn at the end. On Monday, two transactions were completed with the State of Saxony-Anhalt and Rentenbank, with an increase (EUR 1bn) in the 2032 bond. Saxony-Anhalt's issue went smoothly and KfW also crossed the finish line with a total book of EUR 1.15bn. On Tuesday, the Japan Finance Organisation for Municipales (EUR 500m, 5 years, green) was twice oversubscribed with a final price of MS+34bp. The State of Berlin was very successful with a seven-year is- sue. With an order book of EUR 2.2bn, the issuer ultimately decided to issue EUR 1.5bn. The spread was MS+12 bp, unchanged from the guidance. The State of Hesse was active the week before with a EUR 1.5bn issue and followed up today with a four-year floater (EUR 500m, WNG). Outlook: The primary market environment remains constructive and the SSA segment is expected to continue its generally brisk issuance activity. Next week's programme includes the next EU issue. Covered Bonds As expected, the momentum in the primary covered bond market continued this week. Aalands- banken led the way on Monday with a sub-benchmark (EUR 300m, 3.5 years) and Banca Popolare di Sondrio (EUR 500m, 5.5 years, WNG). The covered transaction generated an order book of more than EUR 900 mil- lion and was priced at MS+77bp after MS+80bp in the market. Spread tightening was thus less than in the previous week's OBGs. Coverages at this spread level are attractive to many investors, so there was more international demand for OBGs than in the past. Another OBG transaction fol- lowed on Wednesday with Banco BPM. The six-year, EUR 750m covered bond was also priced at MS+77bp, 6bp tighter than the marketing. Raiffeisenlandesbank Niederösterreich (EUR 500m, 3 years, WNG) was already successful with an issue on Tues- day. With the order book three times oversubscribed, the initial spread of MS+57bp was eventually narrowed to MS+50bp. However, this was not the end of the issuance round. Raiffeisenverband Salzburg (EUR 250m, 5 years) easily crossed the finishing line with demand totalling EUR 550m. Of particular note was the transaction by Caffil, which was able to place over EUR 3bn in the order book for its 10- year issue at a spread of MS+47bp. Thanks to this strong bookbuilding, the issue spread was reduced by 7bp com- pared with the target. All transactions were well oversubscribed, but current NIPs and spreads remain high at 8-12bp. The example of Caffil has shown that 10 year maturities can be well issued again. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,750% Sachsen-Anhalt Aa1 /AA/AAA 0,750bn 23.01.2034 ms +15 bps 15.01.2024 0,835bn ms + 15 area 2,750% Landwirtschaftliche Rentenbank Aaa /AAA/AAA 0,500bn  16.02.2032 ms +10 bps 15.01.2024 not disclosed ms + 10 area 2,875% Japan Finance Org. for Municipalities A1 /A+/- 0,500bn 23.01.2029 ms +34 bps  16.01.2024 1,000bn ms +36 area 2,875% KfW Aaa /AAA/AAA 1,000bn  29.05.2026 ms -16 bps 16.01.2024 not disclosed ms -16 area 2,625% Berlin Aa1 /AAA/AAA 1,500bn 24.01.2031 ms +12 bps 17.01.2024 2,200bn ms+12 area 3,000% British Columbia Aaa /AA/AA+ 1,250bn 24.07.2034 ms +44 bps 17.01.2024 1,800bn ms +44 area 2,625% Nordic Investment Bank Aaa /AAA/- 0,500bn 24.01.2031 ms +6 bps 17.01.2024 1,150bn ms +8 area 6m€-0 Bp Hessen - /AA+/- 0,500bn 25.01.2028 ms -7 bps 18.01.2024 not disclosed 6m€ -7 area 3,125% OMERS Finance Trust Aa1 /AA+/AAA 0,750bn 25.01.2029 ms +60 bps 18.01.2024 5,900bn ms +65 area 3,375% Communaute francaise de Belgique A2 /-/- 0,600bn 22.06.2034 OLO +46 18.01.2024 1,100bn OLO +48 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 15 January 2024 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 January 2024 3 of 8 Our traders are slightly more positive about the mood in the secondary market. One reason for this is likely to be some easing of pressure from the primary market, which is still very active but not as concentrated as in the first two weeks of 2024. In addition, the new issue premiums on offer are helping to generate sufficient demand. All in all, current swap spreads have risen to multi-year highs. Conditions therefore appear sufficiently attractive. How- ever, trading activity is by no means homogeneous and the overall picture of country and single name selection remains intact. At a country level, German and Austrian equities are lagging somewhat, while French, Dutch and Italian equities are more dynamic. The emerging trend towards a structurally steeper curve should make the long end more at- tractive in the long term, regardless of whether the curve spreads out from the short end due to ongoing expecta- tions of rate cuts or whether the long end remains under pressure from record levels of government agency/insti- tutional borrowing. On the other hand, the unbroken trend towards tighter bund/swap spreads is more of a nega- tive for swap-based valuations, with the yield gap to EGB benchmarks narrowing almost automatically. Outlook: Further projects are already in the pipeline. Of particular note is the ship mortgage bond issued by Hamburg Commercial Bank (HCOB) (EUR 500m, 2 years, WNG), which is expected to be issued next week. The last German Ship Pfandbrief issue was in May 2022, also issued by HCOB. Senior Unsecured The primary market for senior unsecured bank bonds remained quite active this week despite the ap- proaching quarterly reporting season and the associated blackout period. However, compared to last week's very strong week, the number of transactions halved to 7 and the volume fell by 60% to EUR 6.5bn. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,000% Bank of Åland Plc - /AAA/- 0,300bn 22.07.2027 ms +45 bps 15.01.2024 0,750bn ms + 50 area 3,250% Banca Popolare di Sondrio - /-/AA 0,500bn 22.07.2029 ms +77 bps 15.01.2024 0,900bn ms + 80 area 3,000% RLB Niederösterreich-Wien AG Aaa /-/- 0,500bn 23.09.2027 ms +50 bps 16.01.2024 1,150bn ms +57 area 3,125% Raiffeisenverband Salzburg AAA /-/- 0,250bn 24.01.2029 ms +60 bps 17.01.2024 0,550bn ms +65 area 3,375% Banco BPM S.p.A. Aa3 /-/- 0,750bn 24.01.2030 ms +77 bps 17.01.2024 1,500bn ms +83 area 3,125% CaFFiL Aaa /AA+/AAA 1,000bn 24.11.2033 ms +47 bps 17.01.2024 2,650bn ms +54 area 3,375% Cajamar Caja Rural SCC - /AA+/- 0,600bn 25.07.2029 ms +78 bps 18.01.2024 0,920bn ms 80 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 15 January 2024 „The issuance volume remains strong and the issuances are also performing better and better in the sec- ondary market. Credit spreads are widening slightly due to the new issues and in the shadow of the weaker equity and interest rate markets. Against the backdrop of a very strong December performance, this is not a cause for concern so far, but rather a consolidation. On the secondary market, asset managers and insurers are acting as sellers to make room for new bonds. At the short end, there were good 2-way flows in large sizes. The fast money accounts are focussing on new issues and taking their profits quickly. New bonds are also in demand among ETF funds, but at the same time they are acting as sellers driven by sentiment due to the spread widening at the start of the year.” Comment from the Helaba trading floor „There is a slightly constructive mood in the secondary market. This trend started in the middle of last week and is likely to continue for some time. Broker activity and market maker quotes tend to be dominated by the bid side. As a result, a large number of bonds, especially those issued since the beginning of the year, can boast a decent spread performance relative to swaps. On average, a tightening of 3 to 5 basis points can be observed". Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 January 2024 4 of 8 6 of the new issues were non-preferred. The only senior preferred to be seen was Crédit Agricole, which raised EUR 1.5bn with a 10-year maturity. The transaction was priced at MS +115bp and ended with a sizeable order book of almost EUR 6bn. The non-preferred bonds were also successfully placed. The new 7-year UniCredit issue was relatively lightly oversubscribed at 1.5x, although the spread premium tightened significantly during the book- building process. The secondary market performance of the new issues is pleasingly strong in the majority of cases. Com- merzbank's 8-year non-preferred bond from last week stands out in particular. The new UniCredit bond was still somewhat caught up in negative market sentiment yesterday, but the spread also narrowed today. Some US banks have opened the reporting season for Q4 2023 as usual. The results are quite varied, but the in- stitutions’ net interest income remains high. JP Morgan, for example, once again gave a surprisingly good out- look for net interest income in 2024. The quarterly results are burdened by special levies to the deposit insurance fund FDIC as a result of the bank rescues last year. (see our publication Major European banks: Heading into 2024 with strong credit risk buffers from 10 January 2024) Outlook: The funding requirements of banks in Europe could be even greater in 2024 than in the record year of 2023, mainly due to high maturities and declining customer deposits (see our publication Primary market update EUR benchmark bank bonds from 9 January 2024). After the lively activity since the beginning of the year, how- ever, the primary market for senior unsecured bonds is likely to become quieter in the coming weeks due to the quarterly reports and the associated blackout period. Issuer Date SWEDBANK AB - A SHARES 1/24 BANKINTER SA 1/25 SKANDINAVISKA ENSKILDA BAN-A 1/25 SPAREBANKEN MORE-CAP CERT 1/25 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 3,750% Credit Agricole SA Aa3 /A+/AA- 1,500bn 22.01.2034 ms +115 bps 15.01.2024 5,900bn ms + 140/145 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 15 January 2024 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4.824% Česká spořitelna, a.s. - /A-/A 0.500bn 15.01.2030 ms +225 bps 08.01.2024 2.050bn ms + 275 area 3.875% ABN AMRO Bank NV Baa1 /BBB/A 1.000bn 15.01.2032 ms +140 bps 09.01.2024 3.800bn ms + 175 area 3m€+55 Bp CCDJ A1 /A-/AA- 1.000bn 17.01.2026 ms +55 bps 10.01.2024 2.450bn 3m€+80 area 4.875% Banco BPM Baa3 /BB+/BB+ 0.750bn 01.07.2030 ms +235 bps  10.01.2024 3.000bn ms +270 area 4.625% Commerzbank AG Baa2 /BBB-/- 0.750bn 17.01.2031 ms +210 bps 10.01.2024 8.250bn ms +240 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 8 January 2024 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,750% Belfius Bank SA/NV Baa2 /BBB+/- 0,500bn 22.01.2029 ms +130 bps 15.01.2024 2,900bn ms + 165 area 4,300% UniCredit S.p.A. Baa3 /BBB-/BBB- 1,000bn 23.01.2030 ms +180 bps 16.01.2024 1,500bn ms + 210 area 5,250% Crelan SA/NV Baa3 /-/- 0,750bn 23.01.2032 ms +275 bps  16.01.2024 2,000bn ms +300 area 3m€ +65 Helaba A2 /-/A+ 1,000bn 23.01.2026 ms +65 bps 16.01.2024 2,000bn 3m€ +90 area 3,527% ANZ New Zealand (Int’l) Ltd. A1 /AA-/A+ 0,500bn 24.01.2028 ms +95 bps 16.01.2024 2,200bn ms +125 area 3,875% BPCE S.A. A1 /A/A+ 1,250bn 25.01.2036 ms +130 bps 16.01.2024 4,300bn ms +160 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 15 January 2024 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 January 2024 5 of 8 Chart of the Week The European Banking Authority (EBA) last Friday published its Q3 2023 quarterly Risk Dash- board (RDB) together with the Risk Assessment Questionnaire (RAQ). The publication also in- cludes information on minimum requirement for own funds and eligible liabilities (MREL). EU/EEA’s banks remained highly profitable, well capitalised and maintained robust liquidity. Banks expect the asset quality to deteriorate as higher interest rates affect borrowers. However, the problem loan ratios have re- cently been at a low level. (see also our publication Major European banks: Heading into 2024 with strong credit risk buffers from 10.1.2024) Short news 1/17 ECB on Cyber resilience of financial infrastructures: "Our financial system is only as strong as its weakest link," says European Central Bank Executive Board member Piero Cipollone. In an envi- ronment of growing cyber threats, cybersecurity is a common good. "We must stay one step ahead of attackers, take a system-wide approach, and keep working together," he adds. 1/16 Allianz sees cyber attacks as the biggest risk: According to the Allianz Risk Barometer, cyber attacks could become a top global risk in 2024. (See also our publication Major European banks: Heading into 2024 with strong credit risk buffers) 1/15 Fund managers urge European regulators to mirror US move to T+1: Asset managers have warned of a “major and serious risk” to European capital markets if regulators do not copy the US and cut settlement cycles to one day, the Financial Times reports. According to the European Fund and Asset Management Association (EFAMA), there is “a compelling case” for the EU to move to T+1. A timely transition to T+1 in the EU should be done in lockstep with the UK to avoid further settlement misalignment. 1/15 Scope 3 emissions a ‘best guess’ for financial services: Scope 3 emissions disclosure is becoming a regula- tory requirement, but financial services firms are struggling with reporting and are concerned they are at risk of unintentional greenwashing. According to a survey seen by The Banker, fewer than half of financial services or- ganizations are “confident” they can accurately report on Scope 3 emissions while more than two-thirds feel Scope 3 reporting is a “best-guess” measurement. 1/12 EBA reveals ruling that prompted BNP to rejig capital: The EU's banking watchdog said that millions of eu- ros of capital used by BNP Paribas in its safety buffers were ineligible and must be removed. As reported by Reu- ters, the European Banking Authority (EBA) said the complexity of discos could hamper how a bank is wound down in a crisis and must be replaced by a simpler, more readily available form of capital that complies with EU rules. EU banks maintain high level of capital December 2014 = 100 % Sources: EBA, Helaba Research & Advisory 0% 2% 4% 6% 8% 10% 12% 14% 16% 90 100 110 120 130 140 150 160 Dez 14 Apr 15 Aug 15 Dez 15 Apr 16 Aug 16 Dez 16 Apr 17 Aug 17 Dez 17 Apr 18 Aug 18 Dez 18 Apr 19 Aug 19 Dez 19 Apr 20 Aug 20 Dez 20 Apr 21 Aug 21 Dez 21 Apr 22 Aug 22 Dez 22 Apr 23 Aug 23 total risk exposure amount (lhs) CET1 capital (lhs.) CET1 ratio (rhs) Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 January 2024 6 of 8 Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 164 -4,09% -2,27% iBoxx € Cov. Germany 25,5 1,5 4,9 iTraxx Senior Financial 72,6 4,0 4,0 10Yr-Yield 2,27 0,06 0,30 iBoxx € Cov. Bonds 36,0 0,9 3,5 iBoxx € Supranational 28,3 0,2 2,6 Swap 10J 2,69 0,03 0,26 iBoxx € Banks PS 93,9 3,6 13,1 iBoxx € Agencies 15,1 2,2 5,4 iBoxx € Germany -26,02 3,89 8,95 iBoxx Banks NPS 119,2 2,2 14,1 iBoxx € Sub-Sov. Germany 20,8 0,8 1,4 iBoxx € EU 34,44 -0,16 3,20 iBoxx Banks Subordinated 185,3 3,0 20,0 iBoxx € Sub-Sovereign 36,7 0,7 2,6 Leisure tip for the weekend: Iberg stalactite cave and museum Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.hoehlen-erlebnis-zentrum.de/start/en The famous Iberg dripstone cave is millions of years old. Since 1874 it has been one of the most visited sights in the Harz, attracting visitors from near and far. Its rare formations make it a unique show cave and of particu- lar interest to scientists from all over the world. You can experience the cave on a guided tour. This is included in the price. Closed or in-depth geological tours and walks can also be booked. Find out more: Cave Experience Center Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 18 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 1013161922252831343740434649 2023 2022 2024 0 5 10 15 20 25 30 35 0 5 10 15 20 25 30 35 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 | 18 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: Continued active primary market. Covered Bonds: Both spreads and new issue premiums continued to be high. Senior unsecured: Less activity during the quarterly reporting season. Chart of the week: EU banks' capital ratios remain high