---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-1
type: dd_research
language: en
updated: 2026-09-28
keywords: Renten, Weekly Market Update_englisch
---

# SSA and Financials: Weekly Market Update

Focus on: SSAs & Financials 11 May 2023 © Helaba | Research & Advisory | 11 May 2023 1 of 7 Research & Advisory Weekly Market Update Primary market environment: The primary market environment is largely favourable. According to Schnabel, the ECB is unlikely to cut rates before the end of the year. In the US, there has been no progress on the debt ceiling issue. US inflation eased slightly in April. Nevertheless, the level is still far too high and argues against interest rate cuts by the Fed in the short term. Our Risk Trend Indicator again confirms the cautious stance that investors have been taking for some time. News such as the lack of progress on the US debt ceiling is likely to contribute to this.. Primary market barometer Despite favourable primary market conditions, issuers in the SSA seg- ment have been cautious. Only the EU has been active this week. In our view, activity is unlikely to pick up in the coming days, especially as the is- suance window is narrower than usual due to the holiday season. As expected, issuance activity has picked up considerably this week. Sparkasse Pforzheim Calw's success- ful debut last week was followed by the Hanover and Hamburg savings banks. Overall, a large number of is- suers took advantage of the favoura- ble market conditions. This week saw an increase in primary market activity compared to the previ- ous week. Negative sentiment to- wards the US banking market had lit- tle or no impact. Accordingly, we ex- pect the market to remain receptive in the week ahead. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Risk aversion continues 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 -0,02 0,14 -0,08 -0,60 1,77 -1,52 European Union -0,01 -0,09 0,21 -0,13 2,76 2,04 Germany Covered -0,01 -0,02 0,14 0,04 1,14 1,18 EU Covered 0,00 -0,01 0,06 0,06 0,94 1,03 Banks senior preferred 0,01 0,25 0,09 0,88 0,93 1,93 Banks senior bail-in (SNP) 0,00 0,30 0,14 0,96 0,72 1,91 Banks subordinated -0,01 0,23 0,22 1,17 0,67 2,34 Supranational -0,01 -0,08 0,17 -0,08 2,43 1,83 Agencies -0,01 0,03 0,04 -0,25 1,68 -0,19 Sub-Sovereigns Germany 0,00 -0,06 0,05 -0,05 0,55 -0,27 Sub-Sovereigns 0,00 -0,06 0,08 -0,06 1,43 0,55 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 May 2023 2 of 7 SSAs After a quiet start to the week, the primary market picked up pace, driven mainly by EU activity. A EUR 5bn 3-year issue was placed and the 2053 issue was increased by EUR 4bn. Together, the two transactions generated an order book of more than EUR 88bn and were heavily oversubscribed. In addition, issu- ers were reluctant to issue, which may also have been partly due to the smaller issuance windows caused by the holidays. Outlook: The ESM (European Stability Mechanism) is in the pipeline, with requests for proposals (RfPs) having been issued. In addition, Dortmund has mandated an 8-year municipal bond (EUR 100m). Covered Bonds Primary market conditions in the covered bond segment are generally good, as long as the price is right for investors. Short maturities remain in demand. Issuance activity picked up considerably from Tuesday. Unicredit (Munich) (4 years, EUR 750 m), Hamburger Sparkasse (5 years, EUR 500 m, WNG), CFF (6 years, EUR 1 bn) and Hypo Vorarlberg (4 years, EUR 500 m) were four issuers on stage. On Wednesday, Sparkasse Hanno- ver (7 years, EUR 250m, WNG), SEB (2.5 years, EUR 1.75bn) and Deutsche Bank followed with a double tranche. The latter attracted a lot of attention. In addition to a 3.5 year, there was also a covered 10 year, EUR 500m each, no- grow. With a guidance of MS+26bp, the spread on the long tranche was well above what market participants had expected, so the order book climbed above the EUR 3bn mark and the reoffer spread was ultimately fixed at MS+20bp. Other issuers may well see this as a litmus test for comparable issues from their houses. We expect other Tier 1 issuers to selectively consider the long end for refinancing. Bausparkasse Wüstenrot (AT) and Sparebank1 Boligkreditt's green covered issues today were 1.9x and 2.4x over- subscribed respectively. Outlook: Overall, the primary market environment remains constructive. We expect the strong issuance activity to continue 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 2,750% EU Aaa /AA+/AAA 5,000bn 05.10.2026 ms -27 bps 09.05.2023 29,000bn ms - 25 area 3,000% EU Aaa /AA+/AAA 4,000bn 04.03.2053 ms +86 bps 24.01.2023 51,900bn ms + 88 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 8 May 2023 "Swap spreads continue to tread water. Secondary activity is tepid and only picks up on days with increased primary activity. It seems pointless to point out the relative spread attractiveness that has been in place for months, especially as secondary impulses for a sustained tightening of spreads have so far failed to material- ise. The widening gap between demand and official purchasing programmes is undoubtedly leaving its mark. The longstanding "no brainer" - buy primarily at spread "X" and sell over time at spread "Y" - is definitely over. This is certainly a turning point, to use the words of our Chancellor. The structure of the curve is playing its part and this does not appear to be changing in the medium term.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 May 2023 3 of 7 Senior Unsecured Primary market activity in senior unsecured bonds was relatively low last week in view of the interest rate decisions. This week the picture is a little more mixed. Overall, senior issues - both preferred and non-preferred at post-Credit Suisse levels - were well received by the market. First, Caixa Bank (senior non- preferred) placed a social bond (EUR 1bn, 4NC3) and NatWest Group placed a EUR 1bn, 5.75NC4.75 fixed rate bond, both in benchmark format. However, as the news surrounding the US banking sector (see also Chart of the Week) was mostly negative, their performance in the secondary market was lacklustre. On Wednesday, Abanca Corporaciòn Bancaria (3NC2) and Islandsbanki HF (3 years, EUR 300m, WNG) each successfully took the stage with a senior preferred bond. We see it as a strength of the market that even smaller and less frequent issuers are able to refinance themselves at a reasonable size, provided they make the appropriate spread concessions.Today, Banca Commerciala Romana SA followed with a green EUR benchmark senior non-preferred (4NC3) and Credit Mu- tuel Arkea with a social bond (EUR 500m, senior preferred). The cash market also continues to trade in line with circumstances. With the latest widening of 1 to 2 bps, the av- erage weekly widening in the preferred segment is 10 bps. The peripherals remained the underperformers with an average widening of 16bp. while Dutch bonds fared quite well with a widening of 2-3 bps. One rank lower, how- ever, the picture is more balanced. Unclear central bank forecasts are keeping market participants on the sidelines as observers. Risky names such as Societe Generale, Banco Santander or Deutsche Bank have been swapped for bonds issued by major US banks or names generally considered safe havens such as ABN Amro. Outlook: A number of issuance plans are still outstanding. As most banks have now reported their quarterly re- sults, overall issuance should pick up. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,250% Hypo Vorarlberg Bank AG Aaa /-/- 0,500bn 16.02.2028 ms +27 bps 09.05.2023 0,850bn ms + 31 area 3,000% UniCredit Bank AG Aaa /-/- 0,750bn 17.05.2027 ms +7 bps 09.05.2023 0,770bn ms +7 area 3,000% Hamburger Sparkasse AG Aaa /-/- 0,500bn 15.09.2028 ms +7 bps 09.05.2023 0,840bn ms + 10 area 3,125% CFF Aaa /AAA/AAA 1,000bn 17.05.2029 ms +27 bps 09.05.2023 1,110bn ms + 28 area 3,125% Sparkasse Hannover - /-/AAA 0,250bn 17.05.2030 ms +18 bps 10.05.2023 0,330bn ms + 18 area 3,250% SEB Aaa /-/- 1,750bn 04.11.2025 ms +5 bps 10.05.2023 2,000bn ms + 8 area 3,125% Deutsche Bank AG Aaa /-/- 0,500bn 19.10.2026 ms +5 bps 10.05.2023 1,500bn ms + 10 area 3,125% Deutsche Bank AG Aaa /-/- 0,500bn 19.05.2033 ms +20 bps 10.05.2023 2,600bn ms + 26 area 3,250% Bausparkasse Wüstenrot AG - /AAA/- 0,250bn 19.05.2027 ms +32 bps 11.05.2023 0,480bn ms + 35 area 3,000% SpareBank 1 Boligkreditt Aaa /-/- 0,750bn 19.05.2030 ms +25 bps  11.05.2023 1,850bn ms + 30 area 3,125% Danske M ortgage Bank Plc Aaa /-/- 0,500bn 12.01.2027 ms +12 bps  11.05.2023 0,650bn ms + 12 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 8 May 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 5,500% ABANCA Corporación Bancaria, S.A. Baa3 /-/BBB- 0,500bn 18.05.2026 ms +225 bps 10.05.2023 0,950bn ms + 240 area 7,375% Íslandsbanki hf. - /BBB/- 0,300bn 17.05.2026 ms +420 bps 10.05.2023 0,770bn 7,750% area 3,875% Crédit Mutuel Arkéa Aa3 /-/A 0,500bn 22.05.2028 ms +103 bps 11.05.2023 1,500bn ms + 120-125 bp Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 8 May 2023 "Several US regional banks are back in the spotlight. New names continue to emerge among the smaller US financial institutions struggling with the current "banking crisis 2.0". Fears about the global banking system remain in the forefront of investors' minds. While equity markets in general are still holding up relatively well, the widening of the iTraxx Senior Financials confirms these concerns. " Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 May 2023 4 of 7 Chart of the Week Last weekend, First Republic be- came the third bank to be res- cued by a takeover, this time by JP Morgan. The company's debt and preferred shares were not taken over. After Washington Mutual, which collapsed in 2008, First Republic is the sec- ond largest bank failure in US history. A look at the KBW Re- gional Bank Index illustrates the unbroken downward trend and sour sentiment in the sec- tor. As the index has fallen be- low several technical support levels, such as the 61.8% Fibonacci retracement, we believe there is a relatively high probability that it will retest the March 2020 low of 55.12. All in all, this development illustrates the current environment in the US, which is dominated by negative news. Short news 5.10 House prices in Germany continued to fall in the first quarter. The decline was 3.3% com- pared with the first quarter of 2002 and 2.3% compared with the previous quarter, according to the property price index of the Verband deutscher Pfandbriefbanken (VDP). On both an annual and quarterly basis, these are the sharpest declines since the index began recording data in 2003. The entire property market has been in turmoil since mid-2010. This is particularly evident in property prices," said Jens Tolckmitt, Managing Di- rector of the VDP, on Wednesday. "The many negative factors such as inflation, rising interest rates and uncer- tainty are leading to a price correction in all property classes." 5.5 Spanish 'windfall tax' takes a heavy toll: The Financial Times reported that CaixaB-ank said the special tax on big banks and energy companies had cost it €373 million. Ana Botín, chief executive of Santander, has called for any tax increases to be 'the same for all companies'. She has also argued that rising profits are a sign of a return to normal business conditions for banks. 5.4 Central bank decisions on the APP: Along with its interest rate decisions, the ECB announced that it would accelerate the reduction of its balance sheet. The focus is on the approximately EUR 3.2 trillion of securities held under the Asset Purchase Programme (APP). The central bank plans to stop reinvesting completely from July. (Capital) Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,771% NatWest Group Plc A3 /BBB+/A 1,000bn 16.02.2029 ms +175 bps 09.05.2023 1,750bn ms + 190/195 bp 4,625% CaixaBank, S.A. Baa3 /BBB/BBB+ 1,000bn 16.05.2027 ms +150 bps  09.05.2023 1,750bn ms + 170 area 7,625% Banca Comercială Română S.A. Baa2 /-/BBB+ 0,700bn 19.05.2027 ms +455 bps 11.05.2023 1,750bn 8-8,25% area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 8 May 2023 US KWB Regional Banks Index\*: Downward trend continues Indexpoints % \*Previous day's closing price Sources: Bloomberg, Helaba Research & Advisory 70 80 90 100 110 120 130 70 80 90 100 110 120 130 10.11.2022 10.01.2023 10.03.2023 10.05.2023 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 May 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 148 1,30% -0,58% iBoxx € Cov. Germany 7,5 0,6 1,7 iTraxx Senior Financial 103,0 -0,3 5,4 10Yr-Yield 2,3 0,0 -0,1 iBoxx € Cov. Bonds 21,1 0,6 1,8 iBoxx € Supranational 18,3 0,13 2,67 Swap 10J 3,0 0,0 0,0 iBoxx € Banks PS 86,9 5,7 2,9 iBoxx € Agencies -1,3 1,27 1,03 iBoxx € Germany -52,5 2,3 -1,6 iBoxx Banks NPS 127,4 8,1 4,6 iBoxx € Sub-Sov. Germany 10,4 0,07 1,81 iBoxx € EU 23,8 -0,1 3,4 iBoxx Banks Subordinated 219,4 9,1 12,6 iBoxx € Sub-Sovereign 26,2 0,30 1,91 Leisure tip for the weekend: Ruhr Festival, Recklinghausen Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.ruhrfestspiele .de/en The Ruhr Festival is one of the oldest, largest and most prestigious theatre festivals in Europe. During the annual festival season from 1 May to mid- June, Recklinghausen is transformed into an international cultural and the- atre metropolis. International drama and dance theatre, co-productions with major German-speaking theatres, literature, outstanding productions by the New Circus and selected children's and youth theatre productions form the core of the contemporary programme. Further information: Ruhr Festival Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 May 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 Mai.22 Jul.22 Sep.22 Nov.22 Jan.23 Mrz.23 Mai.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 Mai.22 Jul.22 Sep.22 Nov.22 Jan.23 Mrz.23 Mai.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 Mai. 22 Jul. 22 Sep. 22 Nov. 22 Jan. 23 Mrz. 23 Mai. 23 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 11 May 2023 7 of 7 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: European banks: Déjà vu in a crisis environment?  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: Stefan Rausch 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 single issuer. Covered bonds: Good primary market conditions, provided the price is right for investors. Senior unsecured: Issues in both preferred and non-preferred formats are well received by the market. Chart of the week: US KWB Regional Bank Index: Downward trend continues