---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-7
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 30 March 2023 © Helaba | Research & Advisory | 30 March 2023 1 of 8 Research & Advisory Weekly Market Update Primary market environment: Canada's CIBC got the covered bond segment off the ground. Overall, interest rate and bank sensor rain continue. The business climate in Germany continues to brighten: The ifo business climate index rose again in March to 93.3 points, after 91.1 in Feb- ruary. The Institute of the German Economy (IW) expects stagflation in 2023. Our risk trend indicator shows that sentiment has brightened somewhat recently and risk aversion is easing. How- ever, from our point of view it seems advisable not to overweight the short-term development. Primary market barometer In the SSA segment, issuance is pick- ing up a little more momentum again, especially since the risk aver- sion of market participants has re- cently eased somewhat. In the com- ing weeks, SSAs should remain sought-after as safe haven assets. Primary market activity picked up no- ticeably this week. Issuers from vari- ous jurisdictions, including Canada, Sweden, Japan, Australia, followed the CICB, which initiated the re- launch on Monday. However, issuers from Germany were not among them. In the senior unsecured segment, no issuers have yet ventured out of hid- ing following the recent market turbu- lence. Should the recent constructive market environment consolidate, we believe that senior transactions will also be possible again from next week. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Slight improvement in mood noticeable 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 0,11 -0,02 -0,41 -0,44 0,86 -0,90 European Union -0,04 -0,15 0,00 0,27 2,25 2,68 Germany Covered 0,03 -0,01 0,21 0,29 1,01 1,16 EU Covered 0,01 -0,01 0,11 0,16 0,78 0,91 Banks senior preferred -0,02 0,13 1,21 0,61 2,23 2,34 Banks senior bail-in (SNP) -0,05 0,33 1,15 0,53 2,27 2,36 Banks subordinated -0,07 0,29 1,26 0,89 2,22 2,62 Supranational -0,01 -0,10 0,08 0,33 2,11 2,20 Agencies 0,05 0,00 -0,03 -0,30 0,83 0,11 Sub-Sovereigns Germany 0,00 -0,06 0,11 -0,08 -0,05 -0,33 Sub-Sovereigns 0,00 -0,09 0,18 0,08 1,07 0,84 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 30 March 2023 2 of 8 SSAs Safe haven assets currently remain the first choice. Nevertheless, primary market activity was mod- est in the previous two weeks for well-known reasons. Currently, market activity is increasingly pick- ing up. As expected, the EU came up with a tap of the bond, which matures in 2048. The tap, which was limited to EUR 6 billion, was more than 9 times oversubscribed, so that the final spread tightened by 2 bps to MS+68. NRW.Bank successfully entered the stage with a 10-year social bond (MS+3). 60 % of the EUR 1 billion volume was placed with investors from Germany, 36 % went to other European countries. The State of Berlin also crossed the finish line without any problems with the issue (EUR 1 billion, MS-7) of a 6-year benchmark bond. Outlook: The capacity of the SSA primary market to absorb new issues has recently been demonstrated. In this respect, issuing activity is likely to continue unabated in the coming weeks. Covered Bonds Prior to the re-launch in the covered bond segment initiated by Canadian Imperial Commercial Bank (CIBC), the Cafill issue on 9 March represented the last primary market transaction before the col- lapse of Silicon Valley Bank caused an extended pause. CIBC took advantage of being the only issuer on Monday. The issue was successful despite the fact that the bond was not marketed in advance. With an order book of EUR 1.8 billion, the original spread at MS+35 was tightened to MS+32. A larger tightening would have been possible, but the issuer decided to optimise the deal in terms of size. In the end, EUR 1.5 billion was placed. The transaction showed that the market is back and encouraged Bank of Montreal, ANZ Bank and Stadshypotek to issue covered bonds with maturities of 3.25, 2 and 5 years on Tuesday, the latter in a green format. Swedbank (5.25 years, MS+18) and Westpac (2 years, MS+15) followed on Wednesday. All of these issues performed very well. Japan's Sumitomo Mitsui Trust Bank was also active in the primary market. The structured covered bond with a 3-year maturity (EUR 500 million, WNG, Book over EUR 820 million) went through without any problems. Due to the purely contractual nature of the covered bond, the issuer had to accept a higher spread (MS+45) for this type of covered bond, for example compared to Australia, Canada and especially Europe. The bond generated good de- mand and it showed that it is possible to bring more "exotic" covereds to the market despite the recent challeng- ing market environment. Covered bonds from the APAC region generally do well whenever the market environ- ment is in order. The positive signal from the success of this transaction could encourage other issuers to return to the primary market as well. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,625% EU Aaa /AA+/AAA 6,000bn  04.02.2048 ms +68 bps  28.03.2023 73,000bn ms + 70 area 2,875% Berlin Aa1 /-/AAA 1,000bn 05.04.2029 ms -7 bps 29.03.2023 1,200bn ms - 7 area 2,875% NRW.Bank Aa1 /AA/AAA 1,000bn 05.04.2033 ms +3 bps 29.03.2023 1,200bn ms + 3 area 3,700% Société du Grand Paris Aa2 /-/AA 1,000bn 25.05.2053 FRTR +52 Bp 29.03.2023 1,800bn FRTR +53 area 3,250% Flemish Community - /-/AA 1,250bn 05.04.2033 BGBs +41 Bp 29.03.2023 3,500bn BGBs +45 area 3,250% Landwirtschaftliche Rentenbank Aaa /AAA/AAA 0,500bn  06.09.2030 ms -9 bps 30.03.2023 0,500bn ms - 9 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 27 March 2023 "In line with a slight easing on the credit side, the secondary market stabilised at elevated swap spread lev- els. The new issues printed in large numbers at the beginning of the week were well received given the se- lected maturities and NIPs. This can be taken as an indication that the covered bond market is seen as robust. Especially also against the background of favourable relative valuations compared to other asset classes. However, nothing has changed in the big picture and overall market liquidity is not yet at the level seen be- fore the outbreak of the SVB/Credit Suisse turmoil. Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 30 March 2023 3 of 8 The general market volatility, the yield curves and last but not least the approaching end of the quarter were no support for the secondary market. Thus, longer maturities, also in the absence of recent new issues with current coupons, tend to remain on the defensive, especially in terms of turnover. In this respect, the challenge is to de- fine resilient price points. Outlook: Issuers from Europe have recently been conspicuous by their absence. However, it must be noted that there has already been relatively little issuance from this region in the current year. The current further spread level should also ensure restraint. In our opinion, the chances of a return to "pre-crisis levels" are good. At the lat- est then and after the blackout periods have expired, issuers from Core Europe will also show up on the market again. Chart of the week Most covered bonds have ade- quate overcollateralisation. In addition to this size, the buffer to the issuer reference rating is also a very good quality bench- mark. As the chart shows, most covered bonds in the countries we selected have several rating buffer notches and thus offer a high degree of security. Covered bonds from Austria, for exam- ple, are characterised by buffers of at least 2 and a maximum of 5 rating levels. The majority of covered bond programmes, however, have a buffer of 2 or 3 rating grades (box). Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,250% Canadian Imperial Bank of Commerce Aaa /-/AAA 1,500bn 31.03.2027 ms +33 bps 27.03.2023 1,800bn ms + 35 area 3,437% Australia and New Zealand Banking Group Ltd. Aaa /-/AAA 1,500bn 04.04.2025 ms +15 bps 28.03.2023 1,900bn ms + 18 area 3,375% Bank of M ontreal Aaa /-/AAA 2,000bn 04.07.2026 ms +28 bps 28.03.2023 2,400bn ms + 32 area 3,125% Stadshypotek AB Aaa /-/- 1,000bn 04.04.2028 ms +16 bps  28.03.2023 1,900bn ms + 20 area 3,125% Swedbank M ortgage AB Aaa /AAA/- 1,000bn 05.07.2028 ms +18 bps 29.03.2023 1,600bn ms + 21 area 3,629% Sumitomo M itsui Trust Bank Aaa /-/- 0,500bn 06.04.2026 ms +45 bps 29.03.2023 0,820bn ms + 50 area 3,457% Westpac Banking Corporation Aaa /-/AAA 1,250bn 04.04.2025 ms +15 bps 29.03.2023 1,500bn ms +15-17 (wpir) t.b.d. Korea Housing Finance Corporation - /AAA/- 0,500bn 11.04.2027 ms +55 bps 30.03.2023 0,575bn ns + 55 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 27 March 2023 Covered bonds characterised by high rating stability Distribution\* of rating buffers in selected covered bond markets \*Graph shows the lowest and the highest rating buffer (Moody's) of a country's covered bonds. The box corresponds to the range in which the middle 50% of the data lies. Sources: Moody’s, Helaba Research & Advisory AUT F D IT SP SE CA Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 30 March 2023 4 of 8 Senior Unsecured The primary market for senior unsecured bonds remains in a state of shock. Gradually, however, the turbulent events of the last week seem to be digested (see our commentary European banks: Déjà vu in a crisis environment? of 27.3.2023). The cash market shows a very special picture in the last trading week, as the multitude of bad news as well as ru- mors around some banks in the previous week led to a widening of 50-200 bps and also a significant underperfor- mance of several jurisdictions took place. In particular, the turmoil surrounding Deutsche Bank weighed on the bonds of other German institutions, taking them down. Other banks that are more likely to be classified as high beta, such as SocGen, also widened very significantly. As the situation calmed down at least somewhat during the past trading days, many issuers narrowed quickly. The on paper strong weekly performance thus gives a deceptive picture of strength after erratic movements dur- ing the week and a large illiquidity in the market. As the market calms down, issues such as inflation and interest rate hikes will come back into focus. In addition, the primary market will also gradually revive in the senior finan- cial sector. Market participants are very aware of this risk. New bonds need to pay generous issuance premiums, and there should not be too much new material coming in a short period of time to ensure performance. Outlook: Given large maturities and stringent regulatory requirements for total bail-in capital, issuance plans for this year are still a long way off. If the recent constructive market environment solidifies, we believe senior trans- actions are possible again starting next week. 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 27 March 2023 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 Non-preferred issues week of 27 March 2023 „After the turmoil surrounding the U.S. regional banks, the distress sale of Credit Suisse and most recently the rumors surrounding Deutsche Bank, nervousness and volatility in the markets remain very pronounced. Equity markets have recovered quite quickly from the negative sentiment and the course lows, as well as the Bund swap spreads have returned from the current highs. Credit markets continue to act battered. The iTraxx indices were able to break away from the wide levels, but are still at much higher levels than before the tur- moil. In addition, the spread between Main and Senior Financial is still at "crisis" levels. Despite performance, the cash is very sluggish and illiquid." Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 30 March 2023 5 of 8 Short news 03/28 Regulators should review CDS market after bank turmoil according to the ECB: Global fi- nancial regulators should take a closer look at credit default swaps after relatively small transactions in the market amplified last week’s banking turmoil, according to the European Central Bank (ECB)’s top oversight official. As reported by Bloomberg, European regulators have sought to underline that they have a close watch on risks and that their banks are on a sounder footing. 03/28 U.S. banks and deposit insurance: The U.S. Deposit Insurance Corporation is considering a high special levy for large banks. (Handelsblatt) 03/28 (Dow Jones) The European Central Bank (ECB) sees its own balance sheet affected by climate risks and wants to make provisions to limit them. The ECB said in the results of a climate stress test that it wants to inte- grate climate change into its own risk assessment and provisioning models and "build up financial buffers over time." The current stress test examined climate risks emanating from corporate bonds, covered bonds, ABS and collateralized credit operations, with corporate bonds proving to be the main contributors to such risks. As in the 2022 bank climate stress test, the ECB examined the so-called physical risks of climate change and the risks ema- nating from the transition to a low-carbon economy. 03/24 EU deposit insurance: The European Central Bank reassured EU leaders that eurozone banks were safe but called on them to push on with an EU deposit insurance scheme, officials heard by Reuters said. ECB head Chris- tine Lagarde called for a Capital Markets Union in Europe for better access to funds as companies have to compete with China and the US in "green" technologies to fight climate change. Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 30 March 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 144 -2,51% -13,63% iBoxx € Cov. Germany 6,9 0,4 0,0 iTraxx Senior Financial 106,9 8,7 18,5 10Yr-Yield 2,3 0,0 -0,4 iBoxx € Cov. Bonds 20,3 0,5 0,6 iBoxx € Supranational 17,9 -0,76 -0,65 Swap 10J 3,0 0,0 -0,3 iBoxx € Banks PS 95,3 6,4 26,5 iBoxx € Agencies -1,2 0,31 -2,26 iBoxx € Germany -51,7 1,2 -7,6 iBoxx Banks NPS 138,4 13,8 33,6 iBoxx € Sub-Sov. Germany 9,2 -0,47 0,14 iBoxx € EU 23,2 -1,5 -1,5 iBoxx Banks Subordinated 233,9 25,7 57,2 iBoxx € Sub-Sovereign 26,4 -0,53 0,47 Leisure tip for the weekend: Chocolate Museum in Cologne Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.nrw-tourismus.de/a-schokoladenmuseum In the museum, there is not only the story, but also delicious samples of the beloved sweet. The Chocolate Museum is devoted entirely to the sweet sin and explains its entire history to visitors, from the "ambrosia" of the Az- tecs to the modern industrial product. The highlights of the exhibition include a walk-in tropical house with a co- coa tree and tropical climate, as well as a glass chocolate factory that pro- duces small chocolate bars. And so that visitors to the Cologne Chocolate Museum can experience chocolate with all their senses, there are always small tastings in between. Further information: The Chocolate Museum Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 30 March 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 Mrz.22 Mai.22 Jul.22 Sep.22 Nov.22 Jan.23 Mrz.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 Mrz.22 Mai.22 Jul.22 Sep.22 Nov.22 Jan.23 Mrz.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 Mrz. 22 Mai. 22 Jul. 22 Sep. 22 Nov. 22 Jan. 23 Mrz. 23 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 30 March 2023 8 of 8 News from Research & Advisory  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  Credits: Corporate Schuldschein: Primary market 2022  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: In the SSA segment, issuance picks up a little more speed again. Covered Bonds: Re-launch successful. Senior Unsecured: Shock rigidity slowly dissolves. Chart of the Week: Covered bonds marked by high rating stability.