---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-42
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 20 July 2023 © Helaba | Research & Advisory | 20 July 2023 1 of 7 Research & Advisory Weekly Market Update Primary market environment: Primary markets are in a summer mood, with little to report this week. Interest rate expectations for the European Central Bank are subdued, partly due to dov- ish comments from central bank officials. Expectations for the US Federal Reserve have also fallen. In the case of our Risk Trend Indicator, the recent predominantly positive signals are already weakening. In our view, the volatility shows how difficult it is to identify clear trends at the moment. Primary market barometer In the SSA segment, the summer break seems to have begun. There were no primary market transactions this week. The coming weeks are likely to be similar. Société Générale (two tranches) and RBC were two issuers in the primary market. Both transactions were very well received by investors, even though the issuers had to offer an at- tractive premium. We expect the coming weeks to be relatively quiet due to the summer holidays. In this segment, too, the summer break is now clearly apparent. Only one sub-benchmark issuance from the periphery was observed this week. The quarterly reporting season and the associated blackout periods at banks are also causing little activity.. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Volatility persists 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 -0,03 -0,05 -0,03 0,38 1,75 -0,35 European Union 0,00 0,04 -0,43 -0,30 1,31 1,45 Germany Covered 0,00 0,02 0,23 0,31 0,77 1,29 EU Covered 0,00 0,02 0,09 0,14 0,73 1,20 Banks senior preferred -0,04 -0,11 -0,30 -0,14 -0,27 1,76 Banks senior bail-in (SNP) -0,05 -0,14 -0,39 -0,35 -0,55 1,43 Banks subordinated -0,04 -0,08 -0,20 -0,28 -0,93 2,01 Supranational 0,00 0,04 -0,25 -0,15 1,27 1,31 Agencies -0,05 0,00 0,06 0,18 1,28 0,25 Sub-Sovereigns Germany 0,00 0,06 0,02 0,03 0,48 -0,60 Sub-Sovereigns -0,01 0,07 -0,12 -0,12 0,60 0,16 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 20 July 2023 2 of 7 SSAs The summer break was already clearly evident in the SSA segment. There was no primary market ac- tivity this week. Outlook: The primary market is likely to remain quiet over the next few weeks. Nevertheless, it is conceivable that issuers will come forward if a favourable issuance constellation emerges. However, we do not expect any signifi- cant revival until the end of August.  Summer holidays! The Weekly Market Update is also taking a break. The next issue will be published on 17.08.2023  Covered Bonds Société Générale SFH opened the primary market this week with a benchmark dual tranche. While the shorter-dated 3-year covered bond was 2.3 times oversubscribed, the longer-dated 7-year was slightly less oversubscribed at 2.0 times. Final spreads tightened by 5bps (MS+8 / MS+29bps) for both compared to marketing. Royal Bank of Canada (RBC) followed with a 5-year benchmark on Tuesday. The final volume of EUR 1.5bn generated an order book of over EUR 2bn. The final spread of MS+34bps was 4bps tighter than the market- ing. The last time a Canadian issuer was active prior to RBC was on 23 May. Canadian issuance since the beginning of the year stands at a respectable EUR 14.55 bn. Outlook: Summer holidays have started in many countries. This has already had an impact on the primary market. We expect primary business to pick up towards the end of August. In particular, the "new start" promises to be ex- citing, especially as issuers could expect a holiday-related drop in demand, leading to lower premiums compared to recent issues. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication none Sources: Bloomberg, Helaba DCM € SSAs issues week of 17 July 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,625% Societe Generale SFH Aaa /-/AAA 1,250bn 31.07.2026 ms +8 bps 17.07.2023 2,750bn ms + 13 area 3,375% Societe Generale SFH Aaa /-/AAA 1,250bn 31.07.2030 ms +29 bps 17.07.2023 2,350bn ms + 34 area 3,500% Royal Bank of Canada Aaa /-/AAA 1,500bn 25.07.2028 ms +34 bps 18.07.2023 2,000bn ms + 38 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 17 July 2023 „For covered bonds, it remains a buyer's market for the time being, both in the secondary and primary mar- kets. In an attempt to generate turnover, the buy side is setting the tone on terms (i.e. spreads). The ongo- ing supply backlog and position-rich trading books continue to have an impact. Demand is strong at the short end of the curve and the bottleneck, i.e. the inverted yield curve inflection points, are being pushed further out, i.e. over 3 years. In the general evaluation of the asset class, the "fair value" is used as an active price point of any yield curve office (Lfz.) and/or issuer/jurisdiction, especially in the pricing of primary mar- ket transactions, in order to derive new price points.“ Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 20 July 2023 3 of 7 Chart of the Week A glimmer of hope! A little-no- ticed statistic from the European Banking Authority (EBA) shows the share of non-performing real estate loans at banks on a quar- terly basis ("non-performing ex- posures to real estate activi- ties"). At 1.7%, the European av- erage was little changed from the previous quarter, although many observers had expected an increase. German banks are well below the average at 0.7%, and the increase of 0.1 percentage points is negligible. In countries such as France or the Nether- lands, there was a small decline, and in Poland an even larger one. Senior Unsecured The summer break is now clearly noticeable in this segment as well. In addition, the blackout periods associated with the publication of quarterly reports are having a dampening effect on banks' primary market activities. Only the Bank of Cyprus issued a sub-benchmark bond in the preferred rank and achieved a 2.7 times oversubscribed order book based on a relatively attractive spread. At the end of last week, the major US banks started the reporting season for Q2 2023, followed this week by the market-leading Scandinavian banks, among others. Overall, the sector can once again boast relatively solid credit ratings. Net interest income continues to rise and loan losses remain low, even if the picture in the USA was some- what more mixed than in Europe. In particular, the advisory business with mergers and acquisitions weakened, which had a comparatively strong impact on Citigroup and Goldman Sachs, the latter also had to take extensive write-downs. Next week, the quarterly reporting season for banks really gets going. The focus is likely to be on net interest in- come, credit quality, new lending business and margins. Outlook: Due to summer time and quarterly reporting, primary market activity is expected to be low in the next three weeks. High maturities and strict bail-in capital requirements will continue to drive primary market activity this year. Issuer Date Issuer Date DANSKE BANK A/S 7/21 CREDIT SUISSE GROUP AG-REG 7/27 UNICREDIT BANK AG 7/25 BARCLAYS PLC 7/27 OP CORPORATE BANK PLC 7/25 BNP PARIBAS 7/27 UNICREDIT SPA 7/26 STANDARD CHARTERED PLC 7/28 LLOYDS BANKING GROUP PLC 7/26 BANCO BILBAO VIZCAYA ARGENTA 7/28 BANCO SANTANDER SA 7/26 NATWEST GROUP PLC 7/28 DEUTSCHE BANK AG-REGISTERED 7/26 INTESA SANPAOLO 7/28 Sources: Bloomberg, Helaba Research & Advisory Reporting dates of selected banks NPLs: More positive than expected % Sources: EBA: Helaba Research & Advisory 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 2017 2018 2019 2020 2021 2022 2023 AT DE FR NL PL EU Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 20 July 2023 4 of 7 Short news 7/19 S&P: Rising Rates Test Covered Bonds Asset Performance. European banks will continue to issue significant amounts of wholesale debt in 2023 and 2024, with a further increase in covered bonds issuance as they seek to optimize funding costs, said S&P Global Ratings in a report (Covered Bonds Out- look Midyear 2023: Rising Interest Rates Will Test Asset Performance) published yesterday. 7/18 The EBA is collecting institution’s data on environmental, social and governance risks to set up a moni- toring system: The European Banking Authority (EBA) published the Decision on an ad hoc data collection of institutions’ ESG data. The Decision will provide competent authorities and the EBA with the necessary data and tools to fulfil their monitoring functions and ESG-related mandates by collecting the information that is already available to institutions as part of their Pillar 3 disclosure obligations with respect to ESG risks. 7/17 EBA notes a decrease in EU banks’ asset encumbrance ratio during 2022: The European Banking Authority (EBA) published its annual asset encumbrance Report. The Report highlights that banks have limited the use of central bank funding in 2022. As a result, the overall encumbrance ratio decreased by 3.3 percentage points in 2022 to 25.8%. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 7,375% Bank of Cyprus Ba3 /BB-/- 0,350bn 25.07.2028 ms +408 bps 18.07.2023 0,950bn 7,750% area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 17 July 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication none Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 17 July 2023 “Meanwhile, US banks have kicked off the reporting season and for the most part have been able to shine. De- spite softening economic data from China, markets continue to trade at elevated levels. The iTraxx EUR Finan- cials Senior dipped below 80bp at the end of last week. Cash indices ares not only able to keep up with this movement, but also to exceed it. Bonds in the non pref segment have benefited particularly strongly, with an average tightening of 10bps on a weekly basis. Once again Italian financials were the outperformers with a tightening of 17bp. Recent new issuances also performed very well in secondary trading, tightening by up to 10bp on the day of issue.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 20 July 2023 5 of 7 \* 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 160 1,79% 4,13% iBoxx € Cov. Germany 9,4 0,0 1,6 iTraxx Senior Financial 79,3 -0,2 -11,0 10Yr-Yield 2,40 -0,15 -0,03 iBoxx € Cov. Bonds 22,6 0,1 1,3 iBoxx € Supranational 15,9 -0,3 -2,5 Swap 10J 3,01 -0,16 -0,03 iBoxx € Banks PS 73,1 -2,5 -8,5 iBoxx € Agencies -0,5 -0,5 0,4 iBoxx € Germany -46,76 -0,31 -0,07 iBoxx Banks NPS 100,6 -4,6 -14,0 iBoxx € Sub-Sov. Germany 10,5 0,3 0,2 iBoxx € EU 18,99 -0,20 -5,18 iBoxx Banks Subordinated 185,8 -2,7 -12,1 iBoxx € Sub-Sovereign 23,9 0,0 -1,4 Leisure tip for the weekend: Bad Homburg Summer Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.museum-folkwang.de/ An absolute highlight is the Bad Homburg Summer Weeks, with dozens of free events - theatre, classical music, rock, jazz and pop, a huge flea market and children's activities. In the Kurpark, in the city centre and in the dis- tricts. The festival closes with a traditional performance by the Johann Strauss Orchestra Wiesbaden and a spectacular fireworks display. Bad Homburger Sommer Bad Homburg v.d. Höhe takes place from 14.07.2023 to 05.08.2023. More information: Bad Homburg Summer Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 20 July 2023 6 of 7 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 07/22 09/22 11/22 01/23 03/23 05/23 07/23 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 07/22 09/22 11/22 01/23 03/23 05/23 07/23 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 07/22 09/22 11/22 01/23 03/23 05/23 07/23 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 20 July 2023 7 of 7 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 element makes all the difference  European banks: An optimistic outlook for 2023  Focus on: Corporate Schuldschein: Burgeoning diversity creates new options for investors  FOCUS ON CREDITS - BASEL III AND THE EU COUNCIL'S POSITION ON THE LEGISLATIVE PACKAGE  FOCUS ON: SUSTAINABLE FINANCE - THE RENDEZVOUS CLAUSE 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: Under the sign of the summer break. Covered bonds: A buyer's market for now. Senior unsecured: Quarterly reporting season gathers momentum. Chart of the week: NPLs: More positive than expected.