---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-3
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 27 April 2023 © Helaba | Research & Advisory | 27 April 2023 1 of 8 Research & Advisory Weekly Market Update Primary market environment: Mixed results from European banks and deposit outflows from US regional bank First Republic weighed on sentiment this week. However, the primary market for bank bonds remained fairly buoyant. SSA and covered bond issuers were again very active as bund/swap spreads widened. Although agencies still appear to be benefiting from the flight to safety, overall risk premiums are under pressure and have continued to widen slightly. Primary market barometer The SSA segment continued to shine with strong issuance volumes this week, setting an exclamation point with EUR 8.75bn. The steady demand for safe assets is likely to continue, although we expect less supply next week after the drumbeat of the last few days. The covered bond segment is run- ning like clockwork and one wonders where it is going. This week again saw a colourful array, including two issuers from Sweden. In general, there is no sign of a slowdown in is- suance, but the Fed and ECB deci- sions are limiting issuance for the time being. Despite subdued sentiment and the blackout period due to the quarterly reporting season, there were still six issues of senior unsecured bank is- sues in EUR benchmark format this week. Banks still have strong issuance needs this year and are therefore making active use of open market win- dows. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Depressed mood 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 -0,28 -0,02 -0,35 1,39 -1,06 European Union 0,03 0,01 -0,05 -0,08 2,55 2,50 Germany Covered 0,05 0,03 0,00 0,22 1,07 1,25 EU Covered 0,02 0,01 0,00 0,10 0,88 1,01 Banks senior preferred 0,07 0,07 -0,76 0,35 0,99 1,65 Banks senior bail-in (SNP) 0,08 0,09 -0,83 0,41 0,68 1,60 Banks subordinated 0,12 0,24 -0,74 0,76 0,83 2,09 Supranational 0,03 0,02 -0,05 -0,03 2,25 2,16 Agencies -0,03 -0,10 -0,08 -0,31 1,21 0,04 Sub-Sovereigns Germany 0,02 0,03 0,06 -0,07 0,35 -0,19 Sub-Sovereigns 0,02 0,01 -0,10 -0,08 1,19 0,81 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 April 2023 2 of 8 SSAs Demand for safe assets remains strong, although we are seeing different levels of demand depend- ing on the issuer. Investors remain active and willing to participate in interesting new issues. How- ever, both the maturity offered and the spread must be right. Setting the initial spread target with an appropriate new issue premium is a prerequisite for a successful transaction. The 15-year EU benchmark has shown that, at least in the SSA segment, investors are open to maturities beyond 10 years at reasonable yields. Outlook: We would not be surprised to see issuance taper off somewhat after these strong weeks. At least next week, the Fed and ECB decisions are likely to slow down primary market activity. Covered Bonds For covered bonds, the trend of recent weeks is continuing. Short and medium maturities are the "sweet spot" of demand, but the average bid/cover ratio and the pace of order book filling are declin- ing, probably also due to the discussions about reducing the balance sheet total and scaling back the ECB's pur- chase programmes. Two Swedish issues dominated the primary market this week: SCBC and Länsförsäkringar Hypothek successfully placed their first covered EUR bonds this year, joining Swedbank, Stadshypotek and SEB on the list of Swedish is- suers for 2023. Will the missing Swedish issuer, Nordea Hypotek, also appear on the primary market soon? In any case, investors were able to welcome the second South Korean issuer this week, KEB Hana Bank. It placed its second social bond with a carefully selected maturity of 3 years, based on its Sustainability Financing Frame- work (updated in March 2022, not available to us). In fact, with KEB Hana and two other issuers, South Korea is set- ting the pace for social/sustainable covered bond issuance globally. Outlook: The primary market backdrop remains constructive. In view of the central bank meetings, the number of transactions should remain manageable next week. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,375% EU Aaa /AA+/AAA 7,000bn 04.10.2038 ms +32 bps 25.04.2023 63,500bn ms + 34 area 3,000% Berlin Aa1 /-/AAA 0,500bn 04.05.2028 ms -9 bps 26.04.2023 0,430bn ms - 9 area 3,125% UNEDIC Aa2 /-/AA 1,000bn 25.04.2033 FRTRs +20 bp  26.04.2023 13,000bn FRTRs + 24 area 3,250% Landwirtschaftliche Rentenbank Aaa /AAA/AAA 0,500bn  06.09.2030 ms -9 bps 30.03.2023 0,000bn ms - 9 area 1,500% BNG Aaa /AAA/AAA 0,250bn  29.03.2038 ms +30 bps 26.04.2023 not disclosed ms + 30 area 2,750% KFW Aaa /AAA/AAA 1,000bn  15.03.2028 ms -22 bps 27.04.2023 3,000bn ms - 21 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 24 April 2023 "Covered bonds are currently holding their swap spread levels, but without much turnover. Recent primary market transactions are still solid on the surface, but the days of huge oversubscriptions seem to be over for the time being! A small tightening in Canadian Covereds was triggered by institutional buying at the end of last week (spreads averaged -2/-3bps) and has since moved sideways. The Swedish SCBC 5y MS+18 bond that came to market on Tuesday has a good NIP as usual at the moment! The yield advantage over SEB 3 ¼ 05/04/28 Corp is 4-5 bps.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 April 2023 3 of 8 Senior Unsecured New issues in the senior segment are heavily dependent on the "day shape" of the market. This seg- ment remains the most volatile with the various trouble spots. There were six deals this week, five of which were preferred. While US banks had kicked off the quarterly reporting season with strong results in recent weeks, more mixed re- sults from European banks dampened sentiment this week. Banco Santander beat earnings expectations but dis- appointed with relatively high deposit outflows in Spain and comparatively weak net interest income in some re- gions. UBS gave a weak outlook for wealth management net interest income and provided few details on the CS merger. In addition, US regional bank First Republic suffered massive deposit outflows. At least SEB was able to report a strong result, pleasing market participants with a strong increase in net interest income and a further de- cline in credit risk costs. The reporting season for Euro- pean banks continues unabated next week. The focus will continue to be on the development of net interest income and problem loan ratios. In addition, we expect bank executives to comment on busi- ness activities that are particularly affected by rising interest rates. Outlook: Issuance plans for the year are still a long way off, given the long maturities and stringent regulatory re- quirements for total bail-in capital. However, the ECB meeting and blackout periods due to the quarterly reporting season are likely to dampen primary market activity next week. 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 /-/- 0,750bn 04.11.2026 ms -4 bps 24.04.2023 1,700bn ms - 1 area 3,250% SCBC Aaa /-/- 1,000bn 03.05.2028 ms +18 bps 25.04.2023 1,500bn ms + 22 area 3,375% BAWAG P.S.K. Aaa /-/- 0,750bn 04.05.2026 ms +16 bps 26.04.2023 1,250bn ms + 20 area 3,750% KEB Hana Bank - /AAA/AAA 0,600bn 04.05.2026 ms +47 bps  26.04.2023 0,750bn ms + 50 area 3,250% Länsförsäkringar Hypotek AB Aaa /AAA/- 0,500bn 04.05.2029 ms +22 bps 26.04.2023 0,800bn ms + 26 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 24 April 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,375% Bankinter S.A. Baa1 /A-/- 0,500bn 03.05.2030 ms +120 bps 24.04.2023 1,700bn ms + 145 area 4,000% La Banque Postale A2 /A+/A+ 1,000bn 03.05.2028 ms +85 bps 25.04.2023 1,200bn ms + 105 area 3m€+43 Bp Bank of Nova Scotia A2 /A-/AA- 1,000bn 02.05.2025 ms +43 bps 26.04.2023 1,300bn 3m€ +60 area 4,125% Santander Consumer Finance S.A. A2 /A/A 0,500bn 05.05.2028 ms +115 bps 26.04.2023 0,900bn ms + 130 area 3,750% Svenska Handelsbanken AB Aa2 /AA-/AA+ 1,250bn 05.05.2026 ms +53 bps 27.04.2023 2,300bn ms + 75 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 24 April 2023 "There has been little change in investor demand. Investor activity has been limited this week as well. The bulk of flows have been in new issues. With renewed concerns about the banking sector, our bids have seen increased demand from all investor groups, although it is too early to talk of panic. ETF funds are active on both sides, with FastMoney accounts looking to use current levels as a cheap entry point." Comment from the Helaba trading floor Issuer Date Issuer Date ERSTE GROUP BANK AG 4/28 OP CORPORATE BANK PLC 5/3 NATWEST GROUP PLC 4/28 SPAREBANKEN VEST 5/4 UNICREDIT BANK AG 5/2 SPAREBANK 1 SR BANK ASA 5/4 HSBC HOLDINGS PLC 5/2 RAIFFEISEN BANK INTERNATIONA 5/5 LLOYDS BANKING GROUP PLC 5/3 INTESA SANPAOLO 5/5 UNICREDIT SPA 5/3 SPAREBANKEN SOR 5/5 BNP PARIBAS 5/3 Sources: Bloomberg, Helaba Research & Advisory Reporting dates of selected banks Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 April 2023 4 of 8 Chart of the Week In the current reporting season for European banks, market par- ticipants are particularly inter- ested in commercial real estate (CRE) activities. In addition to outstanding volumes, further de- tails - such as regional and sector distribution, collateralisation, maturities, etc. - are being sought. According to EBA data, the total volume of commercial real estate financing recently amounted to around EUR 1.4 trillion. EUR. This represented to 6.4% of all loans. The ECB recently announced that it intends to take a closer look at banks' expo- sure to CRE, as this is one of the areas most affected by the COVID 19 pandemic. Moreover, it has attracted signifi- cant investment during the period of low interest rate. Swedish lenders are relatively the most exposed to this sec- tor, accounting for 12.3% of total loans, followed by Greece, Norway and Austria. In absolute terms, lenders from France and Germany are the most exposed in absolute terms, with around EUR 260 bn per country. The rating agency Fitch recently said that rising interest rates and falling market valuations will not lead to outsized loan de- faults for German banks, at least in the short term, citing in particular to the adequate collateralisation, long aver- age maturities and predominantly fixed-rate oans. Short news 4/26 MMB SCF: S&P Places 'AAA'-Covered Bond Ratings on CreditWatch Negative. TAccording to the agency, the CreditWatch negative placements follow the rating action for My Money Bank. On 4/19, S&P had placed the bank rating on CreditWatch Negative due to less certain acquisition of HSBC CE's retail business in France. Since the 'AAA' ratings of covered bonds do not benefit from a rating buffer (so-called "unused rating steps") according to agency criteria, any rating action on the parent bank results in a rating action on the covered bonds. The CreditWatch rating is expected to be removed once S&P hits the CreditWatch placement on My Money Bank is resolved. 4/25 ESAs Call for vigilance in the face of mounting financial risks: The European Supervisory Authorities (ESAs) issued their Spring 2023 Joint Committee Report on risks and vulnerabilities in the EU financial system. While not- ing that EU financial markets remained stable, they are calling on national supervisors, financial institutions and market participants to remain vigilant in the face of mounting risks. (EBA) 4/25 Bond asset valuations: The European Central Bank is gathering data on eurozone banks' bond portfolios to determine whether unrealized bond losses caused by rapidly rising interest rates could erode their capital base in Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,840% Raiffeisen Schweiz Genossenschaft - /A/A+ 0,500bn 03.11.2028 ms +170 bps 25.04.2023 0,750bn ms + 180 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 24 April 2023 Focus on Commercial Real Estate Lending Bn EUR (Outstanding Commercial Real Estate Lending) % Sources: EBA, Bloomberg, Helaba Research & Advisory 0 3 6 9 12 15 0 50 100 150 200 250 300 FR DE NL IT ES SE BE AT FI NO DK Commercial Real Estate lending (lhs) Share in total outstanding lending volume (rhs) Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 April 2023 5 of 8 the event of a crisis, the Financial Times reported, citing supervisory board Chair Andrea Enria. The regulator is seeking information on banks' hedging strategies as part of the bloc's upcoming stress test. 4/24 Bundesbank on ESG risks: In its latest monthly report, the Deutsche Bundesbank has commented in detail on the supervisory treatment of sustainability risks. In doing so, it also addresses the development of a top-down climate stress test. 4/24 Fraud in retail payments and over-indebtedness as key issues affecting consumers: The European Bank- ing Authority (EBA) published its Consumer Trends Report for 2022/23, which summarises trends observed for the products and services under the EBA’s consumer protection mandate. The Report has also identified two is- sues facing consumers in the EU: fraud in retail payments and over-indebtedness and arrears. 4/24 Bankers slam excessive ESG bill that ratchets up legal risks: The Corporate Sustainability Due Diligence Directive (CSDDD) just cleared a hurdle in EU Parliament but the finance industry is preparing to fight the passage of an ESG bill, according to Bloomberg. The current wording of CSDDD “doesn’t adequately consider the chal- lenges that banks will face in implementing the requirements in practice,” Oliver Moullin, sustainable finance gen- eral counsel at the AFME said. 4/21 Updates in the list of institutions involved in the EBA’s 2023 supervisory benchmarking exercise: The European Banking Authority (EBA) published an updated list of institutions, which have a reporting obliga- tion for the purpose of the 2023 EU supervisory benchmarking exercise. The EBA will be conducting the 2023 benchmarking exercise on a sample of 117 institutions from 16 countries across the EU and the European Eco- nomic Area. 4/21 ECB says 16 eurozone banks fall short of climate demands: Sixteen eurozone banks are still failing to dis- close enough information about their exposure to climate risk and may face fines or higher capital requirements from the European Central Bank (ECB), according to Reuters. While this was an improvement from a year ago, the ECB said lenders needed to make "further improvements" to meet the requirements. (ECB report) 4/21 S&P with rating action for Greece: S&P Global Ratings lifted the outlook on Greece's credit ratings to posi- tive from stable, citing the country's recent strong track record of implementing structural reforms and the faster- than-expected closure of its fiscal deficit. Its long- and short-term local and foreign currency sovereign credit rat- ings were affirmed at BB+/B. Separately, the rating agency affirmed the stable outlook on Italy, saying it expects the country's budgetary deficits to gradually decline, specifically as EU fiscal constraints are set to be reestab- lished in 2024. Its BBB/A-2 unsolicited long-and short-term foreign and local currency sovereign credit ratings were affirmed. 4/27 ICMA invites Members and Observers of the Principles (GBP, SBP, SBG and SLBP) to take part to the 2023 Annual General Meeting at 14 CEST. The Executive Committee of the Principles and ICMA will present in detail the work carried out over the last year by the Executive Committee, the Working Groups, as well as report back on the activities of the Advisory Council. In the context of the expected update of the ICMA Principles in June, we would like to refer to the conversation on Sustainable Finance "ICMA and Helaba Talk" between Sabrina Miehs and Simone Utermarck, Director, Sustain- able Finance, ICMA. The ICMA Principles have become the global standard for green, social, sustainable and sustainable-linked bonds. But what might change in future? How is the revision process organized? In our video on sustainable finance Sa- brina Miehs asked Simone Utermarck, Director, Sustainable Finance, at ICMA to give us some insights.  ICMA’s role in the sustainable finance space (1:28)  Alignment of sustainable bond issuance with the ICMA Principles (2:31) Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 April 2023 6 of 8  How are the ICMA Principles reviewed and what is taken into account? (4:07)  Will the Social Taxonomy arrive soon? (8:15)  How can the ICMA Social Bond Principals contribute to the expectation of additionality? (10:17)  Will current recommendations within the ICMA Principles become core components? (14:31)  When can we expect next editions of the ICMA Principles and updates to related guidance? (18:07)  EU Green Bond Standard: How was the preliminary agreement received? Will it impact the ICMA Green Bond Principles? (19:40)  ICMA’s sustainable finance updates for the market (28:10) If you want to learn more about social bonds, then please read our study "Social and sustainability bonds: ICMA Principles - the freestyle element that makes all the difference“ (link see last page “News from Research & Advi- sory”) \* 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 150 -3,45% 3,74% iBoxx € Cov. Germany 7,8 1,2 0,9 iTraxx Senior Financial 101,2 8,5 -5,7 10Yr-Yield 2,4 -0,1 0,1 iBoxx € Cov. Bonds 21,2 1,1 0,9 iBoxx € Supranational 17,8 0,71 -0,05 Swap 10J 3,1 -0,1 0,1 iBoxx € Banks PS 79,7 4,6 -15,6 iBoxx € Agencies -1,8 -0,44 -0,66 iBoxx € Germany -52,5 -3,7 -0,8 iBoxx Banks NPS 116,1 6,1 -22,3 iBoxx € Sub-Sov. Germany 10,5 1,04 1,29 iBoxx € EU 23,0 0,6 -0,2 iBoxx Banks Subordinated 205,8 17,6 -28,1 iBoxx € Sub-Sovereign 25,7 0,61 -0,75 Leisure tip for the weekend: Duisburg-North Landscape Park Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.landschaftspark.de/en/ A disused ironworks has been transformed into a metropolitan oasis. To- day, the blast furnace setting is a well-known natural and cultural land- scape as well as a top event location. The Duisburg-Nord Landscape Park is one of the most popular natural and cultural landscapes in NRW. Leisure, recreation and sport are the main attractions on the 180-hectare site. Diving, climbing, hiking or simply enjoying the view from blast furnace 5 - the extensive grounds with their gardens, meadows and water areas of- fer just the right thing for everyone. You can go on a discovery tour on your own or have industrial history explained to you on a guided tour. Further information: Duisburg-North Landscape Park Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 April 2023 7 of 8 Chartbook SSAs, Covered Bonds, Senior Unsecured Senior 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 Apr.22 Jun.22 Aug.22 Okt.22 Dez.22 Feb.23 Apr.23 Banks Subordinated Banks Senior Bail-in Banks Senior Preferred Covered 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 Apr.22 Jun.22 Aug.22 Okt.22 Dez.22 Feb.23 Apr.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 Apr. 22 Jun. 22 Aug. 22 Okt. 22 Dez. 22 Feb. 23 Apr. 23 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 27 April 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: 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: Light and shade Covered Bonds: Conditions remain good Senior Unsecured: Lively activity despite blackout period due to quarterly reporting season Chart of the Week: Focus on Commercial Real Estate Financing