---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-6
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 6 April 2023 © Helaba | Research & Advisory | 6 April 2023 1 of 8 Research & Advisory Weekly Market Update Primary market environment: After the recent period of market turbulence, normality is gradu- ally returning to the primary market. In the US, the ISM non-manufacturing index unexpectedly fell significantly in March. US initial jobless claims were higher than expected. Once again, our risk trend indicator shows that the mood is brightening only in the very short term at best. Moreo- ver, the overriding picture is one of nervousness. Primary market barometer The SSA primary market has recently been receptive. However, investors are showing increased price sensitiv- ity with regard to oversubscription rates. Issuer heavyweights from the euro- zone returned to the primary market this week. Once again, shorter matur- ities dominated. The issue of the Slo- vakian VUB showed that issuances by smaller market participants are also possible. This week, BNP Paribas ended the shock freeze, which had set in with the bank turmoil on March 10, with the is- suance of a green benchmark bond. We expect further activity next week, with some issuers likely to seize the opportunity again before the quar- terly reporting season. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Risk aversion still present 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 0,04 0,01 -0,71 -0,38 0,99 -0,96 European Union 0,03 -0,10 -0,20 0,08 2,20 2,64 Germany Covered -0,03 -0,01 0,03 0,26 0,96 1,15 EU Covered -0,02 0,00 0,05 0,13 0,78 0,93 Banks senior preferred 0,09 -0,60 0,43 -0,03 1,73 1,76 Banks senior bail-in (SNP) 0,09 -0,67 0,38 -0,17 1,46 1,75 Banks subordinated 0,18 -0,69 0,56 0,18 1,55 2,01 Supranational 0,02 -0,06 -0,10 0,18 2,04 2,17 Agencies 0,00 -0,04 -0,34 -0,27 0,65 0,07 Sub-Sovereigns Germany -0,01 0,09 0,09 -0,04 0,13 -0,24 Sub-Sovereigns 0,01 -0,02 -0,04 0,00 1,03 0,83 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 6 April 2023 2 of 8 SSAs Our assessment that safe haven assets remain in demand has not changed this week. 5 issuers en- tered the primary market this week. A total volume of EUR 5.5 billion was successfully placed. Only Hamburgische Investitions- und Förderbank was not able to narrow the final issue spread compared to the mar- keting. In contrast, the Develop-ment Bank of Japan was able to narrow its spread by 3 bps. - thanks to a 2.6-fold oversubscription of the order book. A look at the development of spreads in this segment (see chart on page 7) shows that they seem to be tending to widen again after a temporary consolidation. Outlook: The SSA primary market continues to be receptive. However, the varying development of the order books reveals that investors are sensitive to pricing and in particular to the new issue premiums offered. Chart of the week The different market phases ob- served in the SSA segment so far this year are aptly reflected in our graphical summary of the first quarter. In particular, the recent lower swings in new is- sue premiums are remarkable and reflect the attractiveness of save haven assets at this time. The same applies to the bid-to- cover ratios. The higher the market volatility, the lower this ratio tends to be. A trend to- wards increased issuance of green bonds is also discernible. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,125% Development Bank of Japan A1 /A+/- 1,000bn 13.04.2028 ms +23 bps 04.04.2023 2,600bn ms + 26 area 3,250% Swedish Export Credit Corporation Aa1 /AA+/- 1,250bn 13.04.2026 ms +3 bps 04.04.2023 2,100bn ms + 5 area 2,875% Council of Europe Development Bank Aa1 /AAA/AA+ 1,000bn 13.04.2030 ms -3 bps 04.04.2023 1,900bn ms - 1 area 2,875% Hamburgische Investitions- und Förderbank - /-/AAA 0,250bn 14.04.2033 ms +5 bps 05.04.2023 0,260bn ms + 5 area tbd IBRD Aaa /AAA/- 2,000bn 14.04.2038 ms +25 bps 05.04.2023 2,600bn ms + 26 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 4 April 2023 SSAs issuance in Q1 - new issue premiums down EUR Bn. (left Axis, Bp. right Axis) per week \* Sources: Bloomberg, Helaba DCM, Helaba Research & Advisory 0 2 4 6 8 10 0 5 10 15 20 25 30 1 2 3 4 5 6 7 8 9 10 11 12 13 Vol. ESG share Issuance Volume NIP (Bp) Avg. Bid/Cover Ratio Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 6 April 2023 3 of 8 Covered Bonds In the previous week, issuers from core Europe were conspicuous by their absence. This week the picture changed and established heavyweights from the Eurozone made an impressive return to the primary markets. BPCE SFH was able to point to the highest demand for a covered bond since 2010, despite the fact that it was already the fourth issue this year. Orders with a volume of EUR 4.65 billion from more than 135 in- vestors were received at the end. Needless to say, the issue was very successful and the issuer placed EUR 2 bil- lion, the largest covered bond in its history. The final spread was narrowed by 4 bps to MS+23 compared to the marketing. The high number of individual orders beyond the EUR 100 million mark was also remarkable. Austrian Erste Group Bank attracted more than EUR 1.5 bn of demand for its 4.5-year covered bond, enabling the issuer to issue a total of EUR 1.0 bn at a reoffer spread of Ms +20 bps and a new issue premium of 4 bps. The suc- cessful issue of a 7.5-year covered by Credit Agricole Home Loan SFH proved that it is possible for established is- suers to also operate in this maturity segment. However, it appears that smaller order books have to be accepted compared to 3-5-year maturities. This is mainly due to the inverse nature of the swap curve. The secondary market is dominated by range trading. Overall, we continue to see higher secondary market levels for covered bonds and a new issue premium of 4 bps can be considered fair in our view. Overall, inflation fears, favoured by recently rising oil prices, and economic concerns continue to alternate. Trading in this mixture of fac- tors is a great challenge, so that many market participants are riding on sight. Short maturities remain the first choice for investors. Outlook: Overall, this week can be seen as an important milestone for the opening of further primary markets. If the market environment does not change significantly, we believe that the week after Easter will also be very ac- tive. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,500% Všeobecná úverova banka, a.s. Aa1 /-/- 0,500bn 13.10.2026 ms +55 bps 04.04.2023 0,715bn ms + 57 area 3,250% BPCE SFH Aaa /AAA/- 2,000bn 12.04.2028 ms +23 bps 04.04.2023 4,600bn ms + 27 area 3,000% DZ HYP AG Aaa /AAA/- 0,500bn 29.10.2027 ms +3 bps 04.04.2023 2,690bn ms + 8 area 3,125% Erste Group Bank AG Aaa /-/- 1,000bn 14.10.2027 ms +20 bps 05.04.2023 1,500bn ms + 24 area 3,125% Credit Agricole Home Loan SFH Aaa /AAA/AAA 1,250bn 18.10.2030 ms +28 bps 05.04.2023 1,475bn ms + 30 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 4 April 2023 "The secondary market continues to tread water in terms of spread development. Even in view of the compar- atively favourable valuations, the recent increase in primary market activity is sufficient to meet investor de- mand, but without generating any significant follow-up momentum. In addition, the ECB's inventory-main- taining purchases, which continue to be made as part of its strategy, did not result in any tightening momen- tum.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 6 April 2023 4 of 8 Senior Unsecured The market environment has calmed down further, and this week the primary market for senior unse- cured bank bonds re-opened again. BNP Paribas issued a green benchmark bond on Tuesday, ending the shock freeze that set in on March 10 with the bank turmoil. The EUR1.0 billion 8NC7 transaction in with non- preferred rank met demand of EUR1.85 billion. However, with a new issue premium of only 2 basis points, the pa- per was relatively tightly priced compared to the conventional secondary market curve. Following its own very successful covered bond transaction and the successful transaction of BNP Paribas, BPCE followed suit on Wednesday by issuing a three-year senior preferred bond with a volume of EUR 1.0 billion. Initial guidance of 95 basis points over mid-swap was reduced to 70 basis points over mid-swap, resulting in an order books of EUR 2.7 billion. Outlook: Given high maturities and stringent regulatory requirements for total bail-in capital, issuance plans for this year are far from realized. We expect further activity next week; some issuers are likely to use the opportunity again before the reporting season starts. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,625% BPCE SA A1 /A/AA- 1,000bn 17.04.2026 ms +70 bps 05.04.2023 2,700bn ms + 95 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 4 April 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,250% BNP Paribas SA A2 /A-/- 1,000bn 13.04.2031 ms +137 bps  04.04.2023 1,850bn ms + 160 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 4 April 2023 „Even with the switch back to risk off mode, the weekly performance in the cash is still respectable. In the Pre- ferreds/OpCos we saw an average tightening of 20bps across all countries. Especially Financials from Ger- many and Spain outperformed with 30 to 32bps. With a tightening of only 2 to 3bps, it is the bonds from Nor- way that pull down the overall average." Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 6 April 2023 5 of 8 Short news 4/5 Bank turbulences and money market funds: American bank customers are shifting their sav- ings to money market funds that entice them with yields of over 4 %. This could further exacerbate the crisis in the US financial system according to an article by the German newspaper Handelsblatt. 4/5 S&P Global Market Intelligence on Banking Turbulence and Challenges for Regulators: The collapse of Sili- con Valley Bank and the emergency takeover of Credit Suisse Group AG by UBS Group AG will force European bank- ing authorities to develop more effective measures to prevent and stop digitally driven bank runs, S&P Global Market Intelligence shows. 4/4 EBA Risk Dashboard: The European Banking Authority (EBA) today published its quarterly Risk Dashboard (RDB). Banks’ capital and liquidity ratios remain strong and profitability continues to increase. 4/3 (Bloomberg) Funds investing in commercial real estate pose a threat to financial stability after growing sig- nificantly over the past decade, according to the European Central Bank. The net asset value of real estate funds has more than tripled to over €1 trillion in the past 10 years, increasing their interconnectedness with real estate markets, the ECB said in its macroprudential bulletin on Monday. The ECB warned of an imbalance as investors often have the ability to withdraw money while the assets themselves are quite illiquid. This could make the vehi- cles vulnerable to a sell-off, as seen recently in the financial system. Instability in this area "could therefore have systemic implications" for commercial real estate, "which in turn could affect the stability of the broader financial system" and the real economy, the ECB said. 3/31 EU on single resolution mechanism and deposit guarantees: According to Bloomberg, the European Union wants to make it easier to wind down medium-sized banks that fail by tapping national deposit guarantee systems for funding. In a proposal due around mid-April, the European Commission (EC) would facilitate using these funds to bridge gaps at banks that don’t have sufficient reserves and avoid tapping uninsured depositors. 3/30 Europe’s markets regulator probing CDS after bank turmoil: The European Securities and Markets Author- ity (ESMA) said it is scrutinizing the market for credit default swaps after recent trading activity amplified turmoil for banking stocks. “ESMA, together with the national regulators, has been looking into the recent market move- ments, including in the CDS market,” a spokesman said in response to Bloomberg. 3/30 EU distances itself from Credit Suisse bond writedowns: Dominique Laboureix, Chair of the Single Resolu- tion Board (SRB), had a clear message for investors in an exclusive interview with CNBC. EU regulators distance themselves from the Swiss decision to wipe out $17 billion of Credit Suisse’s bonds in the wake of the bank’s res- cue, saying they would write down shareholders’ investments first. 3/30 Banking turmoil: According to ECB Director Schnabel, euro area banks have not yet experienced an outflow of deposits. The comment provided some reassurance on the markets. (Bloomberg) 3/30 The White House Proposes Tougher Bank Rules: President Joe Biden’s administration is pressing regula- tors to tighten the rules for mid-sized banks, its strongest step yet in response to the banking crisis that led to the failure of a pair of regional lenders. (Bloomberg) Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 6 April 2023 6 of 8 \* 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 146 1,03% -13,09% iBoxx € Cov. Germany 7,5 0,6 0,0 iTraxx Senior Financial 107,0 0,1 21,8 10Yr-Yield 2,2 -0,1 -0,5 iBoxx € Cov. Bonds 21,0 0,7 0,8 iBoxx € Supranational 18,1 0,28 -1,07 Swap 10J 2,8 -0,1 -0,4 iBoxx € Banks PS 83,9 -11,4 12,2 iBoxx € Agencies -1,2 0,01 -4,30 iBoxx € Germany -51,8 -0,1 -10,8 iBoxx Banks NPS 121,4 -17,0 14,0 iBoxx € Sub-Sov. Germany 11,6 2,34 1,30 iBoxx € EU 23,1 -0,2 -2,4 iBoxx Banks Subordinated 210,6 -23,3 33,7 iBoxx € Sub-Sovereign 27,2 0,72 -0,59 Leisure tip for the weekend: Monastery in Chorin Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.visitberlin.de/de/event/34-oster-kloster-fest-chorin The monastery in Chorin celebrates Easter with the most beautiful and tra- ditional medieval festival in Germany. The Easter days with the Easter mar- ket, where you can find handicrafts; garden plants, garden accessories and early bloomers, invite you to a nice excursion into the countryside. The spring hustle and bustle is complemented by the best organic gastronomy from the region. Families with children can go on an Easter egg hunt, rediscover old Easter traditions and make their own creative souvenirs. Guided tours and the permanent exhibition provide insights into the history of the monastery. Further information: Monastery Chorin Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 6 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 | 6 April 2023 8 of 8 News from Research & Advisory  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: 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: Increased price sensitivity among investors. Covered Bonds: Issuer heavyweights from the Eurozone come back to the fore. Senior Unsecured: Market reopens after several weeks break. Chart of the Week: SSAs issuance in Q1 - new issue premiums down.