---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-13
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 16 February 2023 © Helaba | Research & Advisory | 16 February 2023 1 of 7 Research & Advisory Weekly Market Update Primary market environment: The primary markets seamlessly continued the dynamic develop- ment of the previous week. This trend is expected to continue for the time being. In the USA, consumer prices rose by 0.5 % in January compared to the previous month, the annual rate fell to 6.4 % from 6.5 %. US retail sales rose 3% in January vs. previous month. Our risk trend indicator continues to show clearer swings in both directions. The picture brightened in the short term, but the longer maturities show contradictory signals. Primary market barometer The SSA segment is currently very popular with both issuers and inves- tors. Significant oversubscription rates in most cases and relatively low new issue premiums underpin this interpretation. Issuers made lively use of what was probably the last chance for ECB par- ticipation on the primary market this week. Covereds with short maturities were again easier to place, although moderate improvements were seen at the longer end. After the strong issuance activity so far this year, the primary market showed noticeable signs of fatigue this week. Given the somewhat weaker market environment, issuers can af- ford to adopt a wait-and-see approach for the time being, however, the envi- ronment remains receptive. Covered Bonds Senior Unsecured SSAs Risk trend indicator: Risk aversion decreases in the short term 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 0,00 0,16 0,06 1,05 1,09 -0,47 European Union -0,02 0,04 -0,10 0,99 2,67 2,95 Germany Covered 0,01 0,15 -0,04 0,52 1,02 1,01 EU Covered 0,00 0,04 -0,03 0,22 0,74 0,75 Banks senior preferred -0,04 0,17 -0,61 -1,00 0,94 1,09 Banks senior bail-in (SNP) -0,01 0,26 -0,70 -1,17 0,70 1,11 Banks subordinated 0,00 0,20 -0,41 -1,04 0,59 1,12 Supranational -0,01 0,05 -0,12 0,93 2,16 2,29 Agencies -0,01 0,04 -0,17 0,58 0,96 0,17 Sub-Sovereigns Germany -0,02 0,01 -0,28 0,32 -0,12 -0,19 Sub-Sovereigns -0,03 0,04 -0,32 0,46 0,86 0,76 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 February 2023 2 of 7 SSAs The music continues to play in the SSA segment. The EU plans to raise around EUR 80 billion by June. As part of this, the bonds maturing in December 2029 and November 2042 were increased by EUR 3 and 4 billion respectively. Once again, these two transactions met with enormous demand of more than EUR 93 billion. The search for safe haven assets contributed to the success of the issue, as did the fact that the second- ary market is drying up somewhat. The state of Lower Saxony successfully placed a state treasury bond running until 2028. Remarkable was, on the one hand, the high issue volume of EUR 1.5 billion - the largest since 2006 - and, on the other hand, the fact that this was already the third bond placement this year. More than 70 customers, the majority from Germany, subscribed to the issue. The defensive maturity of 5 years probably contributed to the success. Furthermore, the autonomous region of Madrid successfully placed a 10-year Sustainable Benchmark at SPGB + 22. In total, 9 transactions were executed with average bid/cover ratios of 5.5 vs. an oversubscription rate of 6.7 in the previous week. It is also worth noting that ultra-long maturities are increasingly being successfully placed again, as shown by the transactions in the Wallonia region and Action Logement Services. Outlook: The ESM has already sent out RfPs and is expected to carry out a transaction in the coming week. Covered Bonds The primary market for covered bonds is still buzzing. The segment started this week with a lot of momentum. With Société Générale SFH (dual tranche), Credit Mutuel Home Loan SFH, Nordea and Unicredit, a remarkably high number of issuers were active for a Monday. The EUR7 billion in issuance volume placed by them generated robust demand of EUR12 billion. Once again it became apparent that the short end is the best to place, although there are also signs of improvement at the long end. At least Tier 1 issuers can place maturities of up to ten years in benchmark volume at relatively low new issue premiums. The majority of this week's issues went through well, with an average oversubscription rate of 2.0 after 3.6 in the previous week. Given the volume issued so far this year, it seems likely that primary activity will shift down a gear over the coming quar- ters. Provided that there is no substantial change in the big picture (policy rate developments, overall economic picture, yield curve structure), the constructive undertone should be maintained. The ECB participation rate was 10%. In view of various regional holidays in the course of the carnival, primary mar- ket activity will only pick up again from next Tuesday. If the valutas are not shortened, they would fall in March, so Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,875% Niedersachsen - /-/AAA 1,500bn 18.04.2028 ms -9 bps 13.02.2023 2,200bn ms - 8 area 2,750% NRW.Bank Aa1 /AA/AAA 0,500bn 21.02.2029 ms -8 bps 13.02.2023 not disclosed ms - 8 bp 1,625% EU Aaa /AA/AAA 5,000bn  04.12.2029 ms -21 bps 11.10.2022 16,500bn ms - 20 area 3,375% EU Aaa /AA/AAA 4,000bn  04.11.2042 ms +52 bps 14.02.2023 51,000bn ms + 54 area 3,596% Madrid Baa1 /A/BBB 1,000bn 30.04.2033 SPGB +22 bp  14.02.2023 6,000bn SPGB +28 area 3,000% Municipality Finance Plc Aa1 /AA+/- 1,000bn 25.09.2028 ms -3 bps  15.02.2023 2,000bn ms - 1 area 3,375% Japan Finance Org. for Municipalities A1 /A+/- 0,500bn 22.02.2028 ms +31 bps  15.02.2023 1,600bn ms + 35 area 5,125% Bank Gospodarstwa Krajowego - /-/A- 0,750bn 22.02.2033 ms +215 bps 15.02.2023 2,100bn ms + 240 area 3,000% BNG Aaa /AAA/AAA 1,500bn 23.02.2028 ms -3 bps 16.02.2023 2,350bn ms - 1 area Sources: Bloomberg, Helaba DCM € SSA issues week of 13 Febuary 2023 "The unbroken good to very good demand for covered bonds can be seen in the bulging order books and NIPs are also on the retreat. In addition, there are comparatively few swaps - the sale of old bonds in favour of new issues. There is much to suggest that fresh liquidity is flowing into the asset class. Overall, the market seems to be confident that there will be no major distortions after the ECB's primary market buying freeze." Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 February 2023 3 of 7 that the ECB will then no longer play a role. The central bank's changed approach can already be seen. The ECB, which was still expanding its CBPP3 holdings by EUR 1.3 billion through net purchases in January, now seems to have made a clear change of direction. In the reporting period from 3 to 10 February, the holdings were reduced significantly by around EUR 2 billion. Outlook: Primary market activity will be lower in the next few days due to various regional holidays and is not ex- pected to pick up again until the middle of next week. Chart of the week The development of the real es- tate markets is of great interest to covered bond investors. As the chart shows, approved housing loans in France de- clined since the interim peak in 2021 and again more signifi- cantly since mid-2022. On 1 February, the Banque de France started calculating the "taux d'usure" - the maximum per- missible interest rate for home loans on a monthly basis in- stead of quarterly as before. This will bring mortgages more in line with market rates in the coming months. The step taken by the Banque de France can help boost lending and stop the downward trend. The change should allow French banks to expand their covered bond transactions while reducing the interest rate risk of the paper. Meanwhile, the rating agency Fitch sees covered bonds (in gen- eral) well protected against rising interest rates. This is justified, among other things, by large overcollateralisa- tion cushions. On the basis of 10 French mortgage-covered bonds, this amounts to an average of around 32%, according to the latest available data. Senior Unsecured A good EUR 58 billion of senior unsecured bank bonds in EUR benchmark format have already been placed this year, around half more than in the same period last year. In view of this record volume, issuers were able to adopt a wait-and-see approach this week with spreads rising slightly, especially as the re- porting season and blackout periods also kept many houses away from the primary market. Since Monday, only five bonds with a volume of EUR 2.7 billion have been issued, making it the weakest week so far this year. In addition, concessions had to be made in terms of spreads and volumes to fill the order books. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,125% Societe Generale SFH Aaa /-/AAA 0,750bn 24.02.2026 ms -1 bps 13.02.2023 2,600bn ms + 5 area 3,125% Societe Generale SFH Aaa /-/AAA 1,500bn 24.02.2032 ms +27 bps 13.02.2023 2,250bn ms + 31 area 3,000% Nordea Mortgage Bank Plc Aaa /-/- 1,000bn 20.02.2030 ms +16 bps 13.02.2023 1,600bn ms + 18 area 3,125% UniCredit Bank AG Aaa /-/- 1,250bn 20.08.2025 ms -7 bps 13.02.2023 2,000bn ms - 2 area 3,125% Credit Mutuel Home Loan SFH Aaa /AAA/AAA 1,750bn 22.06.2027 ms +15 bps 13.02.2023 2,750bn ms + 19 area 3,125% Credit Mutuel Home Loan SFH Aaa /AAA/AAA 0,750bn 22.02.2033 ms +32 bps 13.02.2023 1,250bn ms + 35 area 3,125% KBC Bank NV Aaa /-/AAA 1,000bn 22.02.2027 ms +6 bps 14.02.2023 2,100bn ms + 11 area 3,125% UniCredit Bank Austria AG Aaa /-/- 0,750bn 21.09.2029 ms +26 bps  14.02.2023 1,000bn ms + 28 area 3,125% NORD/LB - /AA+/- 0,500bn 20.02.2026 ms -1 bps 14.02.2023 2,000bn ms + 3 area 3,125% Wüstenrot Bausparkasse AG - /AAA/- 0,500bn 22.02.2030 ms +14 bps 15.02.2023 0,650bn ms + 14 area 3,250% Oberbank AG - /AAA/- 0,250bn 23.08.2030 ms +33 bps 15.02.2023 0,530bn ms + 37 area 3,375% Raiffeisenverband Salzburg Aaa /-/- 0,325bn 24.02.2028 ms +33 bps 16.02.2023 0,450bn ms + 34 area Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 13 Febuary 2023 French housing loans - new business clearly declining Mio. EUR Sources: Banque de France, Helaba Research & Advisory 0 2.000 4.000 6.000 8.000 0 2.000 4.000 6.000 8.000 Dez 17 Jun 18 Dez 18 Jun 19 Dez 19 Jun 20 Dez 20 Jun 21 Dez 21 Jun 22 Dez 22 Housing loans granted to domestic individuals monthly flows 3-month moving average Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 February 2023 4 of 7 Credit Suisse, London Branch stood out positively with an oversubscription rate of 2x. Also noteworthy is the sig- nificant spread tightening of Mizuho Financial Group's new non-preferred bond in the secondary marekt. The reporting season continues to be quite encouraging: Rising interest income and stable low credit risk costs supported banks' results. (see our Credit publication "European Banks – An optimistic outlook for 2023" of Jan. 11, 2023). Outlook: The quarterly reporting season of the banks is now clearly heading towards its end, so that the blackout periods will also fall away. In view of the extensive maturities in 2023 and regulatory requirements for total bail- inable capital (MREL/TLAC), we expect continued brisk primary market activity in a friendly market environment. Short news 2/13 Russland Exposures: Russian banks and exports set to be hit in new EU sanctions: The EU is set to hit Moscow with new financial sanctions, trade curbs and a ban on Russian nationals serving on boards of critical European infrastructure companies, EU diplomats and officials told POLITICO. Brussels is set to include new financial sanctions against four Russian banks including the country's largest private bank, Alfa- Bank. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 5,125% Unicaja Banco, S.A. Baa3 /-/BBB- 0,500bn 21.02.2029 ms +215 bps 13.02.2023 1,750bn ms + 215-220 area 5,500% Credit Suisse AG (London Branch) A3 /A-/BBB+ 0,500bn 20.08.2026 ms +235 bps 15.02.2023 2,750bn ms + 260 area 4,625% FinecoBank S.p.A. - /BBB/- 0,300bn 23.02.2029 ms +150 bps 16.02.2023 3,750bn ms + 175 area 3,875% BNP Paribas SA Aa3 /A+/AA- 1,000bn 23.02.2029 ms +78 bps 16.02.2023 4,750bn ms + 90 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 13 Febuary 2023 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,157% Mizuho Financial Group, Inc. A1 /-/A- 0,600bn 20.05.2028 ms +105 bps 15.02.2023 0,800bn ms + 120-125bp 4,416% Mizuho Financial Group, Inc. A1 /-/A- 0,750bn 20.05.2033 ms +140 bps 15.02.2023 1,000bn ms + 155-160bp Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 13 Febuary 2023 Issuer Date Issuer Date NATWEST GROUP PLC 2/17 AAREAL BANK AG 3/2 HSBC HOLDINGS PLC 2/21 BANK OF IRELAND GROUP PLC 3/7 LLOYDS BANKING GROUP PLC 2/23 DEUTSCHE PFANDBRIEFBANK AG 3/9 ERSTE GROUP BANK AG 2/23 Sources: Bloomberg, Helaba Research & Advisory Reporting dates of selected banks „The dam is broken, for the first time in 2023, cash trades wider this week across the board. In the prefered segment, particularly Spanish and French stocks had to lose ground. In both countries thus almost half of the good performance of the past month is offset. Scandinavian bank stocks are outperformers of the rank with an average gain of 2 bps. The situation is similar for non-preferred bonds. Turnover has decreased again with the emerging uncertainty. Only retail desk activity in 1,000-denomination has remained unbroken. Real money accounts and ETF funds have scaled back their activities. There is also no clear trend toward maturity ranges. Short to medium maturities are traded more actively on both buy and sell side, which in turn opened up very good opportunities for 2-way flows.” Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 February 2023 5 of 7 2/13 EBA seeks input from credit institutions on green loans and mortgages: The European Banking Authority (EBA) launched an industry survey to receive input from credit institutions on their green loans and mortgages as well as market practices related to these loans. The purpose of the survey is to collect both quantitative and qualitative information the EBA can use to advise the European Commission. The work is part of the Commission’s Strategy for financing transition to a sustainable economy. 2/10 TLTRO repayments: According to the repayment notice of Feb. 10, 2023 (settlement Jan. 22), the total re- payment amount in January is only EUR 36.6 billion, down from EUR 62.7 billion in January 2023. In November and December, EUR 744 billion of the targeted long-term refinancing funds had already been repaid to the ECB. Early repayment is voluntary for banks. However, the ECB has set strong incentives for institutions to repay the loans early. The monetary guardians had changed the interest rates of these loans, which were very lucrative for the banks during the low-interest phase, from November 2022. (see, among others, our Weekly Market Update of Dec. 8, 2022). 2/10 ECB consolidated banking data for end-September 2022: The ECB publishes consolidated banking data for end-September 2022. Data shows the total assets of EU credit institutions increased to € 32.67 trillion in Sep- tember 2022 while EU non-performing loans ratio dropped by 0.35 PP year on year to 1.83 % in September 2022. 2/10 Sustainable Finance - Investors call on five EU banks to end new oil and gas finance: European banks risk jeopardizing the path to net-zero carbon emissions and the growth of renewable energy unless they stop directly financing new oil and gas fields this year, ShareAction said. As reported by Reuters, ShareAction said it had made the demand in letters sent to the heads of Barclays, BNP Paribas, Credit Agricole, Deutsche Bank, and Societe Gen- erale. \* 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 163 0,46% 5,37% iBoxx € Cov. Germany 6,7 0,9 -0,8 iTraxx Senior Financial 84,9 0,3 -1,8 10Yr-Yield 2,5 0,1 0,5 iBoxx € Cov. Bonds 19,6 0,6 -1,2 iBoxx € Supranational 18,5 0,37 -1,67 Swap 10J 3,0 0,1 0,4 iBoxx € Banks PS 65,2 1,7 -13,7 iBoxx € Agencies 1,5 -0,23 -1,85 iBoxx € Germany -42,9 0,7 2,0 iBoxx Banks NPS 97,1 6,0 -19,5 iBoxx € Sub-Sov. Germany 10,4 -0,06 -5,02 iBoxx € EU 24,8 0,3 -1,6 iBoxx Banks Subordinated 163,3 8,2 -17,9 iBoxx € Sub-Sovereign 26,4 0,12 -3,88 Leisure tip for the weekend: Large carnival parade through Frankfurt city centre Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.frankfurt-tipp.de/specials/fastnacht-in-frankfurt.html Carnival procession on Sunday, 19.02.2023 from 12:21 p.m. The big parade starts with a pre-move party at the Römer from 11 am, "until de Zuch comes". Afterwards, the participating clubs will parade from Untermainkai through the city centre to Römerberg, where the procession can be greeted from the grandstand. Further information: Carnival Parade Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 February 2023 6 of 7 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 Feb.22 Apr.22 Jun.22 Aug.22 Okt.22 Dez.22 Feb.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 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 Feb.22 Apr.22 Jun.22 Aug.22 Okt.22 Dez.22 Feb.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 Feb. 22 Apr. 22 Jun. 22 Aug. 22 Okt. 22 Dez. 22 Feb. 23 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 16 February 2023 7 of 7 News from Research & Advisory  European banks: An optimistic outlook for 2023  Fokus 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  FOCUS ON: CREDITS – BANK AND COVERED BOND PROFILES GERMANY  FOCUS ON: SSAS – GERMAN AGENCIES  FOCUS ON: COVERED BONDS – EUROPEAN COVERED BONDS: CENTRAL WEBSITE PROVIDES CLARITIY  FOCUS ON: CREDITS – LIVE DEALS – A USEFUL INDICATOR FOR PLANNING ISSUANCE  FOCUS ON: CREDITS – EUROPEAN BANKS: CLIMATE RISK STRESS TEST HIGHLIGHTS NEED FOR FURHTER ACTION  EUROPEAN BANKS: ACTIVITIES BECOMING EVER GREENER 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: Music keeps playing. Covereds: Fresh liquidity flows into the asset class. Senior Unsecured: Taking a break. Chart of the Week: French housing loans - new business declining.