---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-46
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 22 June 2023 © Helaba | Research & Advisory | 22 June 2023 1 of 8 Research & Advisory Weekly Market Update Primary market environment: There is both light and shade in the primary markets. According to Fed Chairman Powell, there is still a long way to go to reach the 2% inflation target, a further 50bp hike by the end of the year is a good estimate. The SNB raised rates by 25bps to 1.75% to- day. The BoE announced a 50bp hike to 5%. Our Risk Trend Indicator has been sending out positive signals recently. In the short term, however, the good mood has been somewhat dampened. Primary market barometer From Tuesday onwards, the primary market picked up speed. The high proportion of ESG transactions was noticeable. Overall, most issues did well, but Cades stood out with an or- der book that was 4 times oversub- scribed. The covered bond segment was very busy on the primary market this week. The large number of new is- sues is proving increasingly challeng- ing for some issuers. For the first time this year, a transaction already in progress had to be postponed. The primary market environment for senior unsecured bank bonds remains pleasingly robust. Investors' willing- ness to take on higher risks in ex- change for attractive spreads was also exploited to an increasing extent by second-tier issuers this week. This pattern should continue for the time being. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Confidence wanes Relative\* ASW spread change \* ASW levels standardized and 2T-smoothed Sources: Refinitiv, Helaba Research & Advisory IB OXX EUR O 1 day 1 week 4 week 13 weeks 52 weeks 104 weeks Germany -0,07 -0,06 0,25 0,38 1,27 -0,84 European Union -0,02 0,01 0,11 0,07 1,91 1,67 Germany Covered -0,05 -0,01 0,10 0,08 0,82 1,11 EU Covered -0,02 0,00 0,04 0,05 0,78 1,05 Banks senior preferred -0,01 -0,04 0,05 -0,59 -0,33 1,86 Banks senior bail-in (SNP) 0,00 -0,01 -0,15 -0,80 -0,50 1,66 Banks subordinated 0,01 0,05 -0,13 -0,83 -0,59 2,08 Supranational -0,02 0,04 0,11 0,05 1,68 1,52 Agencies -0,04 -0,03 0,04 0,02 1,13 -0,05 Sub-Sovereigns Germany 0,00 0,07 0,06 0,06 0,69 -0,42 Sub-Sovereigns -0,01 0,02 0,04 -0,09 1,00 0,33 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 June 2023 2 of 8 SSAs The SSA segment was the most popular with investors this week. In most cases, order books were well above the targeted issue size. One reason for this may have been the conspicuously high pro- portion of ESG issues. Correspondingly, new SSA issues enjoyed a positive secondary market performance. Primary market activity picked up from Tuesday onwards. With the possible exception of CCCIF (EUR 630m, 5 years), issuers were still cautious in view of the US holiday on Monday. Bpifrance was active with a 10-year green bond. The German state of Baden-Württemberg (EUR 600m (WNG), 10 years) and the Belgian region of Wallonia (EUR 700m, 15 years) also opted for a green issue. The French state-owned agency Cades, whose mission is to finance and repay the debts of the social security system, successfully issued a social bond (EUR 3bn, 8 years). Other issuers this week were the Portuguese Azores (EUR 230m, 5 years), Madrid (EUR 600m, (WNG), 5 years) and Sächsische Aufbaubank Förderbank (EUR 250m, 10 years). No order book was published for the latter transaction - often a sign of in- sufficient demand. With this latest bond, Cades has increased its issu- ance volume this year to EUR 12 bn and ranks 4th in the SSA issuer ranking with a share of 5.3%. The chart shows that the top 5 SSA issuers alone account for around 53% of the total volume since the beginning of the year. . Outlook: The environment is largely favourable. Recently, however, there has also been an increasing differentia- tion between issuers and maturities. On 28 June the EU is planning an investor call to present its financing plans for the second half of the year. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,250% CCCIF Aa2 /-/AA 0,630bn 26.06.2028 FRTRs +41bp 19.06.2023 4,900bn FRTRs +45 area 3,000% Baden-Württemberg Aaa /AA+/- 0,600bn 27.06.2033 ms -1 bps  20.06.2023 4,900bn ms + 2 area 3,125% Bpifrance Financement Aa2 /-/AA 1,000bn 25.05.2033 FRTR + 29 bp  20.06.2023 17,800bn FRTR + 34 area 3,362% Madrid Baa1 /A/BBB+ 0,600bn 31.10.2028 SPGB +21 bp  20.06.2023 2,600bn SPGB +26 area 3,720% Region of Azores Ba1 /-/- 0,230bn 17.10.2028 PGB +85 bp 20.06.2023 0,225bn PGB + 85 area 3,000% CADES Aa2 /AA/- 3,000bn 25.11.2031 FRTR +26 bp  21.06.2023 11,600bn FRTR +28 area 3,000% Sächsische Aufbaubank - Förderbank - /-/- 0,250bn 29.06.2033 ms +8 bps 21.06.2023 not disclosed ms + 8 area 3,750% Région Wallonne A3 /-/- 0,700bn 22.04.2039 BGB + 44bp  21.06.2023 1,100bn BGB + 45 area 3,375% Sagess /AA-/ 0,500bn 29.06.2030 OAT + 58 bp 22.06.2023 7,700bn OAT + 68 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 19 June 2023 Top 5 SSA issuers responsible for 53% of volume %, rounded Sources: Bloomberg, Helaba Research & Advisory 52,8 24 12,4 6,6 5,3 4,4 0 10 20 30 40 50 60 0 10 20 30 40 50 60 Top 5 total EU KfW EIB Cades EFSF Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 June 2023 3 of 8 Covered Bonds The primary market was already busy on Monday with three transactions: CRH printed a EUR 1bn covered issue with a 9-year maturity. With a book of over EUR 1.25 bn, the final spread was tightened by 2 bps to MS+31 bps versus the default. The order book for Raiffeisen-Landesbank Steiermark's EUR 500m 3- year (WNG) was even two times oversubscribed. The final spread was tightened by 3 bps to MS+27 bps compared with the marketing. LBBW's dual tranche (EUR 500 m, 4.25 years / EUR 500 m, 10 years, both WNG) was similarly mixed. While the short-dated part, a Green Mortgage Pfandbrief, generated an order volume of EUR 650 million, which was well received by investors, the long-dated public sector Pfandbrief was only just below this at EUR 625 million. On Tuesday, Bank of New Zealand (EUR 750 m, 5.5 years) - the first deal in around a year - Hamburg Commercial Bank (EUR 500 m (WNG), 4.6 years) and Banco BPM (EUR 750 m, 5 years) made good use of the remaining issu- ance window before the summer break. Bausparkasse Schwäbisch-Hall (BSH) (EUR 500 m (WNG), 10 years) also started the issuance process, but not with the desired end: . The issuer was the first this year to postpone an ongo- ing issue. Whether the long maturity, a target spread that was too low or the general oversupply of covered bonds (line utilisation by investors) was the main reason for this remains open. In any case, we rule out the absence of ECB purchases as an explanation. A combination of the above reasons seems more plausible to us. Finally, the Dutch Aegon managed to cross the finish line on Wednesday. The final spread (MS+32bp) on the EUR 500m (WNG) 7 year covered bond could not be narrowed compared to the marketing. The secondary market would benefit from a reduction in issuance. Given the advanced stage of the year, this hope seems justified. For peripheral covered bonds, the constructive picture for the underlying government bonds (e.g. BTPs) is currently supportive. The yield pick-up in recently issued OBGs compared with BTPs seems to have been well received and, at least in this area, has led to some pleasing follow-through. Outlook: Today was the last chance to issue with a value date in Q2. We expect issuance to slow in the coming days. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,250% LBBW Aaa /-/- 0,500bn 27.09.2027 ms -1 bps  19.06.2023 0,650bn ms + 3 area 3,250% LBBW Aaa /-/- 0,500bn 27.06.2033 ms +19 bps 19.06.2023 0,620bn ms + 19 area 3,750% RLB Steiermark AG Aaa /-/- 0,500bn 26.06.2026 ms +27 bps 19.06.2023 1,000bn ms + 30 area 3,375% Caisse de Refinancement de l’Habitat Aaa /-/AAA 1,000bn 28.06.2032 ms +31 bps 19.06.2023 1,250bn ms + 33 area 3,708% Bank of New Zealand Aaa /-/AAA 0,750bn 20.12.2028 ms +53 bps 20.06.2023 0,900bn ms + 55 area 3,375% Hamburg Commercial Bank AG Aa1 /-/- 0,500bn 01.02.2028 ms +20 bps 20.06.2023 not disclosed ms + 20 area 3,750% Banco BPM S.p.A. Aa3 /-/- 0,750bn 27.06.2028 ms +55 bps 20.06.2023 1,300bn ms + 60 area 3,375% Aegon Bank N.V. - /AAA/- 0,500bn 28.06.2031 ms +32 bps 21.06.2023 0,700bn ms + 32 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 19 June 2023 "It is clear that the secondary market is currently struggling to generate positive momentum. Although premi- ums remain high in the main, it is difficult to generate significant 'follow through' buying. As a result, spreads remain around reoffer levels, sometimes with initial support bids slightly above, sometimes slightly below. However, this does not help to sustainably compress spreads, regardless of market direction. Cash tends to come out second and gradually push the spread frame upwards. The question is when and what will break this trend. A slowdown in issuance would certainly help. Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 June 2023 4 of 8 Senior Unsecured The primary market environment for senior unsecured bank bonds continues to be very robust. So far this week, five bonds have been issued in EUR benchmark format. Investors' willingness to take on higher risks in return for attractive spreads was also exploited by second-tier issuers. Investors were re- warded with good secondary market performance. Alpha Bank was thus the first Greek bank to return to the market after the banking turmoil in March, issuing a EUR 500 million preferred bond. Based on the impressive yield of 7% at 6-year maturity (6NC5), the order book reached a respectable oversubscription rate of 2.4x. Nova Ljubljanska Banka from Slovenia was even able to gen- erate a 4 times oversubscribed order book with its 4NC3 preferred bond in the volume of EUR 500 million at a yield of 7.1%; the green format may have contributed to the lively interest of investors. The momentum was used by Česká Spořitelna, which followed with a non-preferred bond - also in the volume of EUR 500 million with a 4-year maturity (4NC3); here, the order book was 2.6 times oversubscribed. Also worth mentioning is the new Tier 2 bond of Dutch Achmea with a maturity of 20.5NC10.5, which was likewise well re- ceived by investors. With SBAB Bank and SEB, two well-established names from Sweden also appeared on the market, both with me- dium maturities and green structures, albeit at significantly more ambitious spread premiums. Spreads tightened noticeably on all new issues this week as a result. Outlook: High maturities and strict bail-in capital requirements are driving primary market activity in senior unse- cured bank bonds. However, the summer break is just around the corner. In the next week, though, the primary market environment for senior unsecured transactions is likely to remain constructive. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 7,125% Nova Ljubljanska banka d.d. - /BBB/- 0,500bn 27.06.2027 ms +357 bps  20.06.2023 2,000bn 7,875% area 6,875% Alpha Bank SA Ba3 /BB-/- 0,500bn 27.06.2029 ms +376 bps 20.06.2023 1,200bn 7,25% area 4,125% SEB Aa3 /A+/AA 1,000bn 29.06.2027 ms +80 bps  21.06.2023 1,650bn ms + 100 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 19 June 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,875% SBAB Bank AB Baa1 /BBB+/- 0,500bn 26.06.2026 ms +115 bps  19.06.2023 0,745bn ms + 130/135 bp 5,943% Česká spořitelna, a.s. - /A-/A 0,500bn 29.06.2027 ms +240 bps 21.06.2023 1,300bn ms + 275 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 19 June 2023 “During the week, there were more and more signals that it was still too early to even think about an 'interest rate pause'. The markets were unimpressed and remained at high levels. Only this week the euphoria could be stopped somewhat, the responsible sourpuss is the uncertainty about the economic development in China. The iTraxx Senior Financial turned at its low of 87bps and is now trading back at 90bps.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 June 2023 5 of 8 Chart of the Week According to the ECB’s repay- ment notice of 6/16/2023, the volume of TLTRO III loans Euro- pean banks will return to the ECB as of 6/28/2023 totals 506 bn EUR. It comprises a ma- turing amount of 477 bn EUR and early repayments of amounts maturing between September 2023 and December 2024 of just under 30 bn EUR. The Governing Council had de- cided at its meeting on Oct. 27, 2022, to change the previously extremely attractive terms of the program; at the same time, the participating institutions were given the opportunity to return their borrowed amounts for the first time on Nov. 23, 2022, and thereafter on a monthly basis. The total amount of funds raised under the program will thus decrease from 2.2 tn EUR in March 2022 to EUR 0.59 tn per end-of June 2023. This is in line with our ex- pectations (see Market Weekly of Nov. 24, 2022). Given the high level of excess liquidity held at the ECB, we as- sume that most banks will be able to reduce the funds without any significant burden on their liquidity ratios. The program is now unlikely to play a significant role for banks' refinancing plans any more, and the repayment notice had no noticeable impact on the money market either. Short news 6/20 Moody's places ratings of 11 Austrian banks on review for upgrade: Moody's Investors Ser- vice has placed the deposit, issuer, and senior unsecured ratings of 11 Austrian banks and banking groups – where applicable – on review for upgrade. The review for upgrade reflects a potential change in Moody's assessment of the likelihood of the Government of Austria (Aa1 stable) providing support to banks or banking groups, which Moody's possibly or likely considers to be of systemic relevance. As the Austrian central govern- ment opted for exceptional measures related to an ailing institution in 2014 and 2015, thereby also voiding re- gional government deficiency guarantees, the rating agency has viewed the likelihood of government support to be 'low' for all Austrian banks since 2015, irrespective of their size or importance for the Austrian banking system. 6/20 Strong issuance of benchmark Pfandbriefe in the first five months of 2023: However, the mood on the cap- ital market is now clouding over somewhat according to the results of the second survey conducted by the Associ- ation of German Pfandbrief Banks (vdp) among capital market experts from its member institutions ("vdp issuance climate"). Potential factors weighing on the issuance of both Pfandbriefe and unsecured bank bonds include the lack of growth in lending business and the announcement by the European Central Bank (ECB) that it will cease its reinvestments under the asset purchase programs. The outlook for the second half of 2023 thus remains subdued. 6/19 ECB prepares banks for tougher stress test result: The European Central Bank (ECB) has told banks that performed well in the first round of this year's stress test that the final results could be less positive, according to Bloomberg. As reported today with reference to insiders, the central bank hinted to the financial institutions that they would have to prepare for adjustments. TLTRO refinancing losing relevance TLTRO III outstanding volume in tn. EUR tn. EUR \* post maturities Sources: ECB, Helaba Research & Advisory 0,0 0,5 1,0 1,5 2,0 2,5 0,0 0,5 1,0 1,5 2,0 2,5 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 (p)\* Dec 23 (p)\* Mar 24 (p)\* Jun 24 (p)\* Sep 24 (p)\* Dec 24 (p)\* 67 41 281 70 91 43 Maturities (Bn. EUR): Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 June 2023 6 of 8 6/16 Early TLTRO III Repayments: According to the ECB’s repayment notice of 6/16/2023, the repayment as of 6/28/2023 totals around 506 billion EUR. It comprises a maturing amount of around EUR 477 billion and early re- payments of amounts maturing between September 2023 and December 2024 of just under EUR 30 billion. (see “Chart of the Week”) 6/15 EBA report on LCR and NSFR implementation in the EU in the context of the TLTRO: The European Banking Authority (EBA) published today its third Report on the monitoring of liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) implementation in the EU. This Report assesses the potential impact on LCR and NSFR levels of the upcoming central bank funding repayment (mainly repayments of the targeted longer-term refi- nancing operations - TLTRO) as well as of a potential scenario of higher liquidity risk, particularly affecting govern- ment bonds, derivatives and repo markets, in the context of a higher interest rate environment, inflation and re- cession risks. \* 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 0,04% 3,49% iBoxx € Cov. Germany 7,7 0,5 0,8 iTraxx Senior Financial 90,3 0,9 -7,4 10Yr-Yield 2,43 0,0 0,0 iBoxx € Cov. Bonds 21,3 0,4 0,8 iBoxx € Supranational 18,4 0,48 0,94 Swap 10J 3,04 0,0 -0,1 iBoxx € Banks PS 81,6 -0,7 0,6 iBoxx € Agencies -1,0 -0,38 0,43 iBoxx € Germany -46,69 -1,1 3,9 iBoxx Banks NPS 114,5 0,0 -5,5 iBoxx € Sub-Sov. Germany 10,2 1,19 0,78 iBoxx € EU 24,17 0,2 1,1 iBoxx Banks Subordinated 197,8 2,8 -7,7 iBoxx € Sub-Sovereign 25,3 0,22 0,05 Leisure tip for the weekend: Farbglashuette Lauscha (Thuringia) Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.farbglashuette-lauscha.de ELIAS Glashütte-Farbglashuette Lauscha is one of the last commercial glassworks still open to the public. The craftsmanship of the young glass- makers and the fascination of the glowing glass never cease to amaze, astonish and inspire respect for this ancient craft. More information: Farbglashuette Lauscha Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 June 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 Jun.22 Aug.22 Okt.22 Dez.22 Feb.23 Apr.23 Jun.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 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 Jun.22 Aug.22 Okt.22 Dez.22 Feb.23 Apr.23 Jun.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 Jun. 22 Aug. 22 Okt. 22 Dez. 22 Feb. 23 Apr. 23 Jun. 23 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 22 June 2023 8 of 8 News from Research & Advisory  Video: Sustainable Finance – ICMA & Helaba Talk 2023  Focus on Credits: Primary market update EUR benchmark bank bonds Q1 2023"  Focus on Credits: EUR Corporate bonds: Primary market Q1 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: Primary Market update EUR Benchmark Bank Bonds Q4 2022  Focus on: Singaporean Covered Bonds - Top credit quality made in Asia  Markets and Trends 2023  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: High proportion of ESG issues. Covered bonds: Large number of new, increasingly sophisticated issues. Senior unsecured: Tier 2 issuers seize the opportunity. Chart of the week: TLTRO refinancing losing relevance