---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-38
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 7 September 2023 © Helaba | Research & Advisory | 7 September 2023 1 of 8 Research & Advisory Weekly Market Update Primary market environment: According to Ignazio Visco, the ECB has almost reached the point where it needs to stop raising interest rates, although monetary policy should remain suffi- ciently restrictive. Primary markets are becoming increasingly differentiated and we believe that the repricing of covered bonds is in full swing. Sentiment has been dampened recently. The pronounced red colouring of our Risk Trend Indicator shows that all asset classes (considered here) have been affected. Primary market barometer The majority of issues are still doing very well. However, the example of the Council of Europe Development Bank shows that there is more differ- entiation between issuers and that pricing plays an important role. Primary market conditions are be- coming increasingly gloomy. There is no end in sight to the spread widen- ing trend and issues are not neces- sarily self-perpetuating. The second- ary market is dominated by the sup- ply side. The primary market remains very ac- tive in this segment. The high propor- tion of lower tier issuers is striking. They are taking advantage of the fa- vourable market environment, while their larger competitors are increasingly turning to the USD mar- ket. We expect this trend to continue for the time being. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Risk aversion intensifies Relative\* ASW spread change \* ASW levels standardized and 2T-smoothed Sources: Refinitiv, Helaba Research & Advisory IBOXX EURO 1 day 1 week 4 week 13 weeks 52 weeks 104 weeks Germany 0,10 0,23 0,42 0,20 2,69 -0,15 European Union 0,02 0,03 0,15 -0,29 1,67 1,95 Germany Covered 0,04 0,12 0,19 0,29 1,14 1,45 EU Covered 0,02 0,06 0,12 0,14 0,99 1,46 Banks senior preferred 0,04 -0,01 0,25 -0,13 0,10 1,85 Banks senior bail-in (SNP) 0,04 -0,02 0,24 -0,20 -0,45 1,55 Banks subordinated 0,03 0,01 0,31 0,06 -0,38 2,35 Supranational 0,02 0,01 0,08 -0,23 1,55 1,58 Agencies 0,07 0,13 0,29 0,19 2,33 0,50 Sub-Sovereigns Germany 0,01 -0,01 -0,01 -0,01 0,78 -0,60 Sub-Sovereigns 0,03 0,01 0,09 -0,15 1,18 0,31 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 September 2023 2 of 8 SSAs Primary market activity in the SSA segment picked up significantly this week. The EIB issue (EUR 3 bn, 5 years, WNG) stood out, with the order book 7.6 times oversubscribed. The final spread was fixed at MS-13 bps vs. MS-11 bps in marketing. The World Bank's 15-year sustainability bond saw a very good order book for a long tenor at EUR 4.8bn. Investitionsbank Berlin (EUR 500m, 5 years, social, WNG) also per- formed well. The Council of Europe Development Bank's (CoE) EUR 1bn issue met with modest demand. The De- velopment Bank of Japan (DBJ) fared much better with its sustainability bond, just over a year after an almost identical issue. The issue was significantly oversubscribed at 12.80x (5.8x in 2022). Outlook: The EU is already in the pipeline for next week. The market expects a transaction in the 7-year range. Covered Bonds Despite a US holiday on Monday, the primary market was surprisingly active at the start of the week. Spain's Banco Santander Totta kicked off with a 3 year and France's BPCE SFH with a 5.5 year bench- mark. Banco di Desio e della Brianza (EUR 400m, 4 years) followed on Tuesday after a primary market abstinence of around 4 years. The example of Banco Desio and Volksbank Wien's issue last week, also after a long break, shows that "old issuers" are increasingly returning to the primary market. Banco Desio came to the market with the announcement that it wanted to issue at least EUR 300 million. With an order book of EUR 900 million, the is- suer ultimately opted for a volume of EUR 400 million. YTD issuance by Italian issuers totals around EUR 7 bn. Landesbank Berlin was also active on Tuesday with a sub-benchmark (EUR 250 million, 5.5 years). The targeted volume was difficult to achieve and the final spread (MS+ 17bps) was unchanged compared to the marketing. Overall, we believe that repricing in the covered bond segment is in full swing. Given the weak performance of pri- mary issues, the possibility of tightening the initial spread target during bookbuilding is diminishing, while new issue premiums are rising steadily. Outlook: The market is moving to ever higher spread levels, especially as many players in the view of our trading continue to anticipate increased supply. Liquidity is likely to remain rather thin, given the imminent end of quanti- tative easing by the major central banks. The few remaining buyers will set the levels. The ECBC events and con- ference days in Munich on 12-14 September are just around the corner. On these days, primary market activity in the covered bond segment is likely to be close to zero, while on the other days of the week it will be somewhat more pronounced. 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 3,000 Mrd. 15.11.2028 ms -13 Bp 05.09.2023 23,000 Mrd. ms - 11 area 3,450% IBRD Aaa /AAA/- 2,500 Mrd. 13.09.2038 ms +29 Bp  05.09.2023 4,800 Mrd. ms + 30 area 3,125% Investitionsbank Berlin - /-/AAA 0,500 Mrd. 13.09.2028 ms -1 Bp  06.09.2023 0,830 Mrd. ms - 1 area 3,125% Council of Europe Development Bank Aaa /AAA/AAA 1,000 Mrd. 13.09.2028 ms -7 Bp 06.09.2023 not disclosed ms - 7 area 3,500% Development Bank of Japan A1 /A/- 0,500 Mrd. 13.09.2027 ms +22 Bp  06.09.2023 6,400 Mrd. ms+ 25 area 2,875% KFW Aaa/AAA/AAA 1,000 Mrd.  07.06.2033 ms +0 Bp 07.09.2023 0,925 Mrd. ms flat Sources: Bloomberg, Helaba DCM € SSAs issues week of 4 September 2023 “There seems to be no end in sight to the expansionary pressure on cover. Supply and demand are out of bal- ance and the end of QE has a significant negative side effect. This process is painful and is likely to continue for some time. Secondarily, the weakness of core names (especially DE) has been noticeable for some days now, especially compared to the peripherals. It is also worth noting that the sometimes high premiums on new issues are not generating any follow-on momentum.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 September 2023 3 of 8 Senior Unsecured The primary market for senior unsecured bank bonds continues to be very active, undeterred by the US Labour Day holiday at the beginning of the week. It is noticeable that relatively many lower tier issuers are taking advantage of the favourable market environment. Larger issuers with access to the USD market are currently finding more attractive conditions there. After months of expensive pricing in USD earlier this year, the market dynamics have now shifted in favour of the currency. In the absence of activity from top tier issuers in the EUR market, investors have also been active in weaker credits. The transactions this week have all been quite successful, as evidenced by the well oversubscribed order books. Yields seem to be more important to investors at the moment than credit ratings. The average maturity of the new issues was 5.5 years. A total of 12 senior unsecured fixed coupon transactions have been successfully placed so far this week. 6 of these bonds are non-preferred, 9 are rated BBB or even BB. Three banks, Unicaja Banco (Spain), Landsbankinn (Iceland) and Banca IFIS (Italy), issued as little as EUR 300m. The average issue size was EUR 800 million. No less than 5 bonds were issued in sustainable format. Outlook: The primary market for senior unsecured bank bonds remains driven by high maturities. Many banks have already made good progress against their issuance plans, but pre-funding is already gaining in importance given the benign market environment. We expect primary market activity to remain fairly buoyant in the coming weeks, although timing remains challenging given the upcoming central bank decisions and volatile markets. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,375% BPCE SFH Aaa /AAA/- 1,000 Mrd. 13.03.2029 ms +29 Bp 04.09.2023 1,900 Mrd. ms + 33 area 3,750% Banco Santander Totta, S.A. Aa2 /-/AA- 0,850 Mrd. 11.09.2026 ms +40 Bp 04.09.2023 1,250 Mrd. ms + 40 area 3,375% Landesbank Berlin Aaa /-/- 0,250 Mrd. 12.03.2029 ms +17 Bp 05.09.2023 not disclosed ms + 17 area 4,000% Banco di Desio e della Brianza - /-/AA 0,400 Mrd. 13.03.2028 ms +75 Bp 05.09.2023 0,900 Mrd. ms + 80 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 4 September 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 6,375% Landsbankinn hf - /BBB/- 0,300 Mrd. 12.03.2027 ms +313 Bp  05.09.2023 1,500 Mrd. 7.000% area 7,500% Banco de Credito Social Cooperativo (Grupo Cooperativo Cajamar) - /BB+/- 0,650 Mrd. 14.09.2029 ms +426 Bp  05.09.2023 1,350 Mrd. 7.875% area 4,125% Belfius Bank SA/NV A1 /A/- 1,000 Mrd. 12.09.2029 ms +95 Bp 05.09.2023 2,000 Mrd. ms + 120 area 6,875% Banca IFIS S.p.A. Baa3 /-/BB+ 0,300 Mrd. 13.09.2028 ms +370 Bp 06.09.2023 0,345 Mrd. 6.875% area 4,375% Santander Consumer Bank AG A2 /A/A 0,750 Mrd. 13.09.2027 ms +115 Bp 06.09.2023 1,600 Mrd. ms + 140 area 4,125% BFCM Aa3 /A+/AA- 0,750 Mrd. 18.09.2030 ms +100 Bp  07.09.2023 2,500 Mrd. ms + 130 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 4 September 2023 “The interest rate environment remains volatile after the summer. The iTraxx indices and cash bonds are trad- ing slightly higher on a weekly basis. The September central bank meetings are now in the rear-view mirror and new statements from central bankers are being added on a daily basis, creating a very mixed picture. In cash bonds, widening is taking place in both preferreds and non-preferreds as new issuance continues to add data points and with solid new issue premiums of mostly 10bps, there is a shift in the curves and investor switching is also triggering a slight widening. The trading desks are absorbing the volumes well so far.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 September 2023 4 of 8 Chart of the Week In a study published this week, the German Banking Association concludes that the Green Asset Ratio (GAR), which banks will publish from 2024, will reflect the sustainability profile of the institutions to a very limited ex- tent. This is due to the fact that the industry is only at the begin- ning of its transformation. The share of taxonomy-eligible reve- nue in the 450 companies ana- lyzed in the study is only 30%. Of these, only 7% were taxon- omy-compliant. However, the figures vary widely from sector to sector: In real estate, for ex- ample, the taxonomy eligibility rate is around 95%, while in sec- tors such as telecommunications and pharmaceuticals it is zero. Furthermore, project companies, often used for wind farms or commercial property, are also excluded. According to the assessment, GRAs are likely to be in the low single dig- its. However, the capital expenditure ratios are higher, at around 46% for taxonomy eligibility and 20% for taxon- omy compliance, which would indicate an increase in the GRAs in the coming years. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 5,750% BPER Banca S.p.A. Ba1 /-/BBB- 0,500 Mrd. 11.09.2029 ms +260 Bp 04.09.2023 1,300 Mrd. ms + 285 area 6,500% Unicaja Banco, S.A. - /-/BB+ 0,300 Mrd. 11.09.2028 ms +325 Bp  04.09.2023 1,350 Mrd. ms + 350 area 4,875% Mediobanca SpA Baa3 /BBB-/BBB- 0,500 Mrd. 13.09.2027 ms +145 Bp  06.09.2023 2,000 Mrd. ms + 170 area 8,375% mBank - /BB+/BBB- 0,750 Mrd. 11.09.2027 ms +507 Bp  06.09.2023 1,500 Mrd. 8.750% area 4,875% Bankinter S.A. Baa2 /BBB/- 0,500 Mrd. 13.09.2031 ms +175 Bp 06.09.2023 1,250 Mrd. ms + 200 area 6,000% Raiffeisen Bank International AG Baa2 /-/- 0,500 Mrd. 15.09.2028 ms +275 Bp 07.09.2023 1,200 Mrd. ms + 300 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 4 September 2023 Taxonomy profile varies widely by sector share in % share in % Sources: German Banking Association, Helaba Research & Advisory 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.8 5.7 2.1 1.4 4.0 0.6 4.8 10.6 25.4 14.3 7.2 12.1 39.8 7.7 18.4 0 20 40 60 80 100 telecom equipment (7) medical equipment (23) personal goods (12) pharmaceuticals & biotech (23) aerospace & defence (9) food producers (10) telecom services (17) general industrials (8) industrial materials (5) oil & gas (15) chemicals (18) technology hardware & equipment (16) software & computer services (31) industrial engineering (23) electronic & electrical equipment (13) utilities (29) construction & materials (24) industrial transportation (20) industrial metals & mining (12) alternative energy (6) automobile & parts (19) real estate (26) taxonomy-compliant taxonomy-eligible 94.9 82.9 75.0 65.5 64.6 46.4 35.8 26.1 19.7 19.1 18.7 16.5 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 September 2023 5 of 8 Short news 9/5 7/5 Bausparkasse Schwäbisch Hall and Cassa di Risparmio di Bolzano SpA new members of the Covered Bond Label: The Covered Bond Label Foundation is pleased to welcome Bausparkasse Schwäbisch Hall and Cassa di Risparmio di Bolzano SpA as new members. In total, 132 issuers with 174 cover pools from 24 countries are represented. 9/6 Climate stress test: The European Central Bank's (ECB) second climate stress test shows that accelerating the transition to a greener economy would be cheaper than delaying it. As Reuters reports, the ECB said that despite higher initial costs, banks' annual credit losses on this path would peak at €13bn in 2026, before falling to €6.6bn by 2030 due to lower energy costs and financial risks. 9/4 Limitations of the Green Asset Ratio according to a study by the Association of German Banks: According to the Banking Association’s analysis of the taxonomy ratios of 450 companies, the Green Asset Ratio (GAR) does not adequately reflect the sustainability profiles of banks. The taxonomy only covers around 30 %of the economy. For banks, the GRA is to describe the sustainable share of the balance sheet total as a key indicator from 2024. (Banking Association) 9/3 Green bond standard: Global green bond sales are likely to accelerate thanks to supportive EU policy and a more stable interest rate. "The urgency of the climate transition has given increased impetus to both corporates in relation to their energy transitions and the global banking sector which continues to finance an increasing number of green projects," Amelia Rice, capital markets managing associate at Linklaters told S&P Global Market Intelli- gence. (Bloomberg) 9/3 Italy’s windfall tax on banks: Italy's new tax on bank profits can be improved on, economy minister Giancarlo Giorgetti said, denying that the levy is unjust. As reported by Reuters, Italy's government dealt a surprise blow to banks by imposing a one-off 40% tax on lenders' profits resulting from higher interest rates, after reprimanding lenders for failing to reward deposits. 9/1 €28.2bn of property loans committed in the second quarter: In the second quarter of 2023, vdp member banks committed €28.2bn of loans for residential and commercial property, a decrease of 38.2% compared to the same quarter of the previous year. Compared with the first quarter of 2023, loan commitments increased by 10.2%, but were still at a low level. 9/1 Reforms to be carried out after the takeover of Credit Suisse: In a report, the expert group “Banking Stabil- ity” examines the question of the reforms to be carried out after the takeover of Credit Suisse by UBS. The Swiss Bankers Association (SBA) notes that the report makes a valuable contribution to the in-depth analysis of the cri- sis at Credit Suisse, especially regarding liquidity and the provision of liquidity. (Swiss Banking) Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 September 2023 6 of 8 \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory, \* ASW-Spreads Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 154 -3,13% -3,40% iBoxx € Cov. Germany 10,6 1,9 2,5 iTraxx Senior Financial 82,9 3,2 0,4 10Yr-Yield 2,66 0,12 0,19 iBoxx € Cov. Bonds 23,8 1,8 2,7 iBoxx € Supranational 16,6 1,1 2,0 Swap 10J 3,20 0,08 0,10 iBoxx € Banks PS 80,5 1,6 7,5 iBoxx € Agencies 2,6 2,6 4,3 iBoxx € Germany -41,04 4,89 7,48 iBoxx Banks NPS 109,6 1,2 8,9 iBoxx € Sub-Sov. Germany 9,9 0,9 1,1 iBoxx € EU 21,58 1,31 3,05 iBoxx Banks Subordinated 199,3 2,5 16,1 iBoxx € Sub-Sovereign 24,5 1,2 2,3 Leisure tip for the weekend: Invictus Games in Düsseldorf Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.invictusgames.de Initiated in 2014 by Prince Harry, The Duke of Sussex, the Invictus Games will be held in Germany for the first time in 2023, from 9-16 September in Düsseldorf. Under the motto "A Home for Respect", around 500 competitors from 21 nations and around 1,000 family members and friends are expected to compete in ten disciplines. More information: Invictus Games Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 September 2023 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: Bloomberg, 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 2022 Senior Preferred 2022 Senior Non-preferred 0 50 100 150 200 250 300 0 50 100 150 200 250 300 09/22 11/22 01/23 03/23 05/23 07/23 09/23 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: Bloomberg, 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 2021 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 09/22 11/22 01/23 03/23 05/23 07/23 09/23 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: Bloomberg, 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 2021 2023 -25 -15 -5 5 15 25 35 -25 -15 -5 5 15 25 35 09/22 11/22 01/23 03/23 05/23 07/23 09/23 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 September 2023 8 of 8 News from Research & Advisory  Focus on Credits: Primary market update EUR benchmark bank bonds H1 2023  Focus on Credits: EUR Corporate bonds: Primary market Q2 2023  Video: Sustainable Finance – ICMA & Helaba Talk 2023  Focus on Credits: Social and sustainability bonds: ICMA Principles - the freestyle ele- ment makes all the difference  European banks: An optimistic outlook for 2023 Team of authors Publisher and editorial office Helaba Research & Advisory Editor: Sabrina Miehs 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: Increasing issuer differentiation. Covered Bonds: New issue premiums continue to rise. Senior Unsecured: Lower tier issuers seize their opportunity. Chart of the Week: Taxonomy profile varies widely by sector.