---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-43
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 14 July 2023 © Helaba | Research & Advisory | 14 July 2023 1 of 7 Research & Advisory Weekly Market Update Primary market environment: Primary market issuance slowed this week. The summer break is becoming increasingly noticeable. Fed officials Daly and Waller argue for two more rate hikes this year. China's central government sees no risk of deflation in the second half of the year. The positive signals clearly predominate in our Risk Trend Indicator. The recent positive sentiment for senior un- secured bank bonds has strengthened further. Primary market barometer The majority of the issuances in the SSA segment were again well re- ceived. The EU order book was 18 times oversubscribed. However, the summer holidays are likely to in- creasingly limit activity. The two new issuances this week went very well. Aareal Bank's bench- mark stood out with a 6x oversub- scribed order book. In terms of ma- turities, the 3 year range remains the sweet spot. With the start of the sum- mer break, primary market activity is likely to be lower in the coming weeks. Despite both summer time and the start of the quarterly reporting sea- son, four new issuances in EUR bench- mark format have hit the market so far this week. The blackout period how- ever is likely to keep activity low, even though the market remains receptive. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Traffic light turns green 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 -0,07 -0,03 -0,17 0,14 1,88 -0,52 European Union -0,01 -0,16 -0,50 -0,35 1,22 1,39 Germany Covered -0,04 0,05 0,14 0,28 0,57 1,26 EU Covered -0,02 0,02 0,04 0,12 0,61 1,16 Banks senior preferred -0,10 -0,15 -0,34 -0,07 -0,44 1,71 Banks senior bail-in (SNP) -0,11 -0,18 -0,39 -0,24 -0,80 1,46 Banks subordinated -0,11 -0,23 -0,22 -0,08 -1,18 1,98 Supranational -0,02 -0,11 -0,30 -0,19 1,13 1,26 Agencies -0,04 0,02 -0,07 0,06 1,10 0,15 Sub-Sovereigns Germany 0,00 0,00 0,00 0,00 0,33 -0,58 Sub-Sovereigns -0,01 -0,05 -0,21 -0,18 0,40 0,14 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 July 2023 2 of 7 SSAs The SSA segment opened on Tuesday with an EU issue - the 2052 (2.5%) was topped up. The order book was oversubscribed by more than 18 times at over EUR 70bn. The limited size of the issue from the outset certainly contributed to the very high oversubscription. However, the issue also showed that there is demand at the long end of the curve, provided the is- suer can compensate for the inversion of the curve. At the same time, the state of Baden-Württemberg en- tered the market with a 6-year floater (EUR 500m, no grow, local currency), which was well received. On Thursday, the State of Brandenburg placed a 10-year benchmark (EUR 500 m, WNG). The bid-to-cover ratio was good at 2 and the final spread of MS+1 bp was in line with the target. Shortly after the end of the first half, we would like to take stock: In the first half of 2023, 154 deals were is- sued with a volume of around EUR 228bn. The figures for the same period last year (EUR 126/196.7bn) were exceeded, but the comparable figures for 2021 (EUR 156/239.3bn) were just missed. Some issuers are already well advanced with their full-year funding plans. KfW, for example, has already raised EUR 54bn in the first half of the year, almost two-thirds of its annual funding target. In our view, it will therefore be difficult to beat the 2021 result (EUR 382 bn) in the current year. Outlook: In our view, the primary market will gradually become quieter due to the summer holidays. Covered Bonds Aareal Bank entered the primary market on Tuesday with a EUR 500 million (WNG) covered bond. For its third issue this year, the issuer chose a 3-year tenor, which had already been very successful the previous week. The issue hit the sweet spot of demand. Once the re-offer spread was set, the order book doubled again to EUR 3bn by the close of the book. The bond was priced at a final spread of MS+13bps, 3bps tighter than at marketing. The new issue premium was 10 bps. On Wednesday, Landesbank Berlin followed with a sub-benchmark (EUR 250m, WNG, 4 years). This issue was also successful, with the final spread fixed at MS+10bps, 3bps tighter than the benchmark. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,500% EU Aaa /AA/AAA 0,500bn  04.10.2052 ms +66 bps 07.12.2022 10,000bn ms + 68 area 6m€ +0 Bp Baden-Württemberg Aaa /AA+/- 0,500bn 19.07.2029 ms -15 bps 11.07.2023 not disclosed 6m€ -15 area 3,000% Brandenburg Aaa /-/- 0,500bn 20.07.2033 ms +1 bps 13.07.2023 1,000bn ms + 1 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 10 July 2023 SSAs: Values already above previous year's level EUR bn / Number of Benchmark-Issues Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 239,3 196,7 228,5 156 126 154 0 50 100 150 200 250 300 350 400 0 50 100 150 200 250 300 350 400 H1 2021 H1 2022 H1 2023 Volume Number of Issues „Swap spread valuations continue to drift sideways on moderate secondary turnover. For now, the balance of sustainable supply and opportunistic demand seems to be in place. With 10-year Bund yields having bro- ken through resistance at 2.50% (currently 2.61% for February 33 and 2.64% for the new August 33 Bund) and with outright levels at short maturities also elevated, the demand side seems to be getting a bit bolder again. The short maturities in particular are once again the sweet spot!“ Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 July 2023 3 of 7 Outlook: The primary market continued to be receptive recently, especially in the short maturities. Given the sum- mer break, issuance is expected to be rather low in the coming weeks. There are currently no mandates for next week. Chart of the Week With the start of ECB tightening in early 2022, spreads started to reassess and widen steadily. The lack of demand from the ECB and the resulting demand gap appears to be currently be- ing filled by banks (Treasuries and trading books). The ques- tion of whether the end of spread widening has been reached at current levels cannot be answered conclusively. In our view, there is still some room to the upside. A higher than ex- pected primary market supply in the second half of the year could contribute to spread widening. However, with the widening so far, a large part of the repricing should be com- pleted. Senior Unsecured This week, three issuers took advantage of the favourable market environment to offer senior unse- cured bank bonds in EUR benchmark format: Spain's CaixaBank issued a dual tranche with 6 and 10- year maturities of EUR 1 bn and EUR 0.5 bn, respectively, Norway's DNB Bank placed EUR 1 bn with a 5-year ma- turity and Canada's Toronto-Dominion Bank came to the market with a volume of EUR 1 bn and a 2-year maturity. The volume of new issuance, all of which is non-preferred, totalled EUR 3.5 billion, which we consider quite re- spectable in view of the quarterly reporting season and the summer season. Long-dated transactions also did well, with the order books for shorter maturities seeing noticeably more demand. DNB Bank reported its Q2 2023 results on Wednesday - ahead of the US banks, which start the reporting season today - and surprised with a profit of NOK 9.5 billion. The increase in net interest income continued and net fee and commission income was also extremely strong. Next week, the Scandinavian banks Nordea, SEB and Swedbank will publish their results. Attention is likely to focus on the development of net interest income, credit quality, new lending business and margins. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,875% Aareal Bank AG Aaa /-/- 0,500bn 18.05.2026 ms +13 bps 11.07.2023 3,000bn ms + 16 area 3,500% Landesbank Berlin Aaa /-/- 0,250bn 19.04.2028 ms +10 bps 12.07.2023 0,480bn ms + 13 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 10 July 2023 Covered bonds: Spread widening before the end? ASW in Bps. \* Sources: Refinitiv, Helaba Research & Advisory -10 -5 0 5 10 15 20 25 30 35 40 -10 -5 0 5 10 15 20 25 30 35 40 EUR Covered Germany Covered Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 July 2023 4 of 7 Outlook: The primary market for senior unsecured bank bonds continues to be encouragingly receptive, even if activity will be lower in the coming weeks due to the summer vacations and the upcoming quarterly reporting sea- son. High maturities and strict bail-in capital requirements remain fundamental drivers of primary market activity this year. Short news 7/13 EBA published its Q1 2023 quarterly Risk Dashboard (RDB): The EU/EEA banking sector shows rising profitability according to the report. The publication presents the results of the Euro- pean Banking Authority (EBA’s) latest risk assessment questionnaire (RAQ), which was conducted among 85 banks in spring this year. It also includes information on minimum requirement for own funds and eligible liabilities (MREL). Banks’ profitability continued to increase, and their capital, funding and liquidity ratios remain strong. 7/11 Supervisors of banks are making progress in the fight against financial crime: The European Banking Authority (EBA) published the findings from its 2022 review of competent authorities’ approaches to tackling money laundering and terrorist financing (ML/TF) risks in the banking sector. For this Report, the EBA staff as- sessed 12 competent authorities from nine Member States. Issuer Date Issuer Date NORDEA BANK ABP 7/17 GOLDMAN SACHS GROUP INC 7/19 BANK OF AMERICA CORP 7/18 BAWAG GROUP AG 7/19 SKANDINAVISKA ENSKILDA BAN-A 7/18 SVENSKA HANDELSBANKEN-A SHS 7/19 SWEDBANK AB - A SHARES 7/18 BANKINTER SA 7/20 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 none Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 10 July 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 5,000% CaixaBank, S.A. Baa3 /BBB/BBB+ 1,000bn 19.07.2029 ms +165 bps 11.07.2023 2,400bn ms + 190 area 5,125% CaixaBank, S.A. Baa3 /BBB/BBB+ 0,500bn 19.07.2034 ms +195 bps 11.07.2023 0,790bn ms + 195 bp 4,500% DNB Bank ASA A3 /A/- 1,000bn 19.07.2028 ms +100 bps  12.07.2023 2,100bn ms + 125 area 3m€ +45 Bp Toronto-Dominion Bank A1 /A/AA- 1,000bn 21.07.2025 ms +45 bps 12.07.2023 1,550bn 3m€+60 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 10 July 2023 “Despite high temperatures, the markets are still active and the classic summer slump is not yet in sight. The central banks are preparing their next interest rate steps for the end of July and perhaps also in September and the stock markets are reacting more nervously at their still high levels. Today, the US banks JP Morgan, Citigroup and Wells Fargo start the reporting season, and it will become clear how the Fed's interest rate hikes will affect the economy and what impact this will have on bank balance sheets. Yields have been falling again recently, while the iTraxx indices have been able to quickly narrow to new lows.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 July 2023 5 of 7 7/10 IFRS to Take Over Responsibilities of the TCFD: The IFRS Foundation’s International Sustainability Standards Board (ISSB) will take over responsibility for monitoring progress of companies’ climate-related dis- closures from the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD) as of next year, following a request from the FSB. The transfer of responsibilities marks a significant step in the ongoing consolidation of sustainability reporting standards, following the publication last month of the ISSB’s global standards for sustainability and climate reporting. 7/7 ESG – EC presents 2023 Strategic Foresight Report: The European Commission (EC) presented the 2023 Stra- tegic Foresight Report, which analyses how to put ‘sustainability and people's wellbeing at the heart of Europe's Open Strategic Autonomy' and suggests ten concrete actions to achieve this aim. Read more \* 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 159 4,42% 3,95% iBoxx € Cov. Germany 8,8 1,7 -0,1 iTraxx Senior Financial 80,3 -9,3 -10,0 10Yr-Yield 2,47 -0,16 -0,04 iBoxx € Cov. Bonds 22,0 1,6 -0,5 iBoxx € Supranational 15,2 -0,3 -4,3 Swap 10J 3,08 -0,17 -0,01 iBoxx € Banks PS 73,3 -3,3 -10,3 iBoxx € Agencies -0,8 1,3 -2,0 iBoxx € Germany -47,74 -0,18 -4,26 iBoxx Banks NPS 101,3 -6,0 -15,2 iBoxx € Sub-Sov. Germany 9,7 1,4 -1,1 iBoxx € EU 18,14 -1,17 -7,30 iBoxx Banks Subordinated 184,6 -11,7 -14,2 iBoxx € Sub-Sovereign 23,1 0,6 -3,4 Leisure tip for the weekend: Museum Folkwang (Essen) 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/ The Folkwang idea, coined by Karl Ernst Osthaus at the beginning of the 20th century, comprises three central guidelines: the dialogue between the arts and cultures, the museum as a place of exchange and cultural educa- tion, and the unity of art and life. Conscious of its own museum and collection history, the Museum Folkwang carries this idea into the present and the future. More information: Museum Folkwang Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 14 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 | 14 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: EU order book 18 times oversubscribed. Covered bonds: Short maturities again the sweet spot. Senior unsecured: Attention turns to quarterly reporting season. Chart of the week: Covered bonds: Spread widening before the end?