---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-32
type: dd_research
language: en
updated: 2026-09-28
keywords: Renten, Weekly Market Update_englisch
---

# SSA and Financials: Weekly Market Update

Focus on: SSA & Financials 15 September 2022 © Helaba | Research & Advisory | 15 September 2022 1 of 7 Research & Advisory Weekly Market Update Primary market environment: Despite slight signs of easing - gas and oil prices have decreased recently - the market environment is challenging. High inflation remains an issue, thus further interest rate steps are likely. According to ECB Governing Council member Scicluna, the central bank could tighten further. After a brief easing in the previous week, our spread indicator illustrates the renewed increase in risk aversion. Primary market barometer Sources: Helaba Research & Advisory The funding needs of the federal states, for example, are lower than usual this year. SSAs with refinancing needs have therefore recently found a receptive environment. This week we saw a veritable fire- works display of new issuance activity in the covered bond segment. One transaction followed the other. How- ever, the issuing environment is get- ting rougher, thus issuers are in- clined to jump at the chance. The primary market for senior unse- cured bank bonds continues to be re- ceptive, but conditions in the highly volatile environment are becoming more difficult. Issuers are taking ad- vantage of open market windows, but investors are becoming increasingly selective. Covered Bonds Senior Unsecured SSA Back to risk-off mode Spread trend indicator\*, ASWspread change versus … \*ASW levels standardized and 2T-smoothed, since 14.2.22 changed calculation of ASW levels by Markit. Sources: Refinitiv, Helaba Research & Advisory IBOXX EURO 1 day 1 week 4 week 13 weeks 52 weeks 104 weeks Germany -0,07 0,51 0,03 -0,62 -2,32 -3,20 European Union 0,01 0,09 0,18 -0,03 0,48 -0,68 Germany Covered 0,02 0,05 -0,15 0,01 0,34 -0,49 EU Covered 0,01 0,01 -0,03 0,05 0,22 -0,02 Banks senior preferred -0,06 -0,04 0,52 -0,61 1,91 0,92 Banks senior bail-in (SNP) 0,02 -0,20 0,48 -0,46 2,00 0,89 Banks subordinated 0,00 -0,13 0,51 -0,30 2,03 0,89 Supranational 0,01 0,05 0,01 -0,09 0,10 -0,77 Agencies -0,04 0,15 -0,12 -0,38 -0,98 -1,49 Sub-Sovereigns Germany 0,02 0,02 -0,26 -0,16 -1,39 -1,84 Sub-Sovereigns -0,01 0,08 -0,17 -0,22 -0,65 -1,56 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 September 2022 2 of 7 SSA The SSA segment was somewhat overshadowed this week by the flood of covered bond issues. Nevertheless, all issuers managed a successful market appearance. First and foremost the EU, whose syndicated dual-tranche bond issue, limited from the outset to a volume of 12 bn EUR, met with almost ten times greater investor demand. After the final spread was fixed, the respective new issue premium was around 2 bp. The impressive success of this issue should provide tailwind for the EU's further funding projects. After all, the EU has announced a total volume of 50 bn EUR for the second half of the year. The EIB issue also met with great investor interest. The book-to-cover ratio of 8.3x impressively underlines this. Today, the state of Schleswig-Holstein came to the market with a 10-year benchmark at MS-13 - the initial spread was priced at MS-12. Outlook: The covered bond community is mostly in Vienna next week (see below), this "absence" could benefit SSAs. Issuers and investors alike have the opportunity to focus on this. Covered Bonds The high number of new issues continued unabated this week. Several issues came to the market every day, thus initial expectations for the annual issue volume have already been clearly exceeded. This week, the issue volume totalled 8.8 bn EUR. The focus was on issuers from core Europe (Germany, Austria, Netherlands), supplemented by other issuers from Iceland, Norway, Finland and the UK. The extremely high volume of covered issues is now leading to a normalisation of oversubscription rates, while at the same time new issue premiums are climb- ing to 2 to 4 bp. Helaba was the non plus ultra this week with an order book of 3.7 bn EUR for its four- year mortgage Pfandbrief and an issue volume of 1.5 bn EUR. With UniCredit Bank Austria and Erste Bank, issuers from Austria were also active. Looking at the development of spreads, it is noticeable that they are increasingly widening compared to German bonds (see chart). On the one hand, this is probably due to the regional proximity to Eastern Europe - keyword Ukraine war - and the existing exposures in these countries. On the other hand, the Austrian issuance volume this year is comparatively high at around 30 bn EUR (the average of the last five years was 11.6 bn EUR), so that the opportunities for investors to take fur- ther newly placed bonds on their books have probably been exhausted. After a build-up in August, the ECB recently reduced its covered bond portfolio (CBPP3) further significantly, by 442 m EUR in the last reporting week. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,125% Agence Francaise de Developpement - /AA/AA 0,400bn  02.03.2037 FRTRs +36 bp 12.09.2022 0,500bn FRTRs +36 area 0,750% Cassa Depositi e Prestiti S.p.A. BBB /BBB/BBB- 0,500bn 30.06.2029 BTPS +12 bp  23.06.2021 3,750bn BTPS +30 bparea 2,000% EU Aaa /AA/AAA 7,000bn 04.10.2027 ms -28 bps 13.09.2022 60,000bn ms - 26 bp area 2,500% EU Aaa /AA/AAA 5,000bn 04.10.2052 ms +45 bps 13.09.2022 54,500bn ms + 47 bp area 0,000% KFW Aaa /AAA/AAA 1,000bn 30.09.2026 ms -46 bps 13.09.2022 not disclosed ms - 46 bp 2,250% EIB Aaa /AAA/AAA 4,000bn 15.03.2030 ms -17 bps 14.09.2022 33,000bn ms - 15 area t.b.d. Schleswig-Holstein - /-/AAA 0,750bn 22.09.2032 ms -13 bps 15.09.2022 1,980bn ms - 12 area Sources: Bloomberg, Helaba DCM €-SSA-Issues week of 12 September 2022 Spread difference between German and Austrian covered bonds ASW Sources: Refinitiv, Helaba Research & Advisory 0 2 4 6 8 10 12 0 2 4 6 8 10 12 Sep18 Dez18 Mrz19 Jun19 Sep19 Dez19 Mrz20 Jun20 Sep20 Dez20 Mrz21 Jun21 Sep21 Dez21 Mrz22 Jun22 Sep22 Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 September 2022 3 of 7 Outlook: The primary market will probably take a break in the coming week. On 22 September the Euro- money/ECBC Covered Bond Congress will take place in Vienna. A large part of the market participants will be on site, thus existing issuance projects have been postponed. However, a timely realisation of the plans seems likely, as the general conditions - the reasons for which are well known - are tending to cloud over. Senior Unsecured The market environment remains extremely volatile: Following the ECB monetary authorities' deci- sion on the 0.75% interest rate step last Thursday, the iTraxx EUR Finanicals Senior Spread trended only briefly higher, but then quickly narrowed again. The development in the Ukraine over the weekend and the decline in gas futures provided further relief in the markets at the beginning of the week. Only the U.S. inflation figures clouded the picture again, so that the spread widened by 20 bps from Tuesday to Wednesday. The primary market for senior unsecured bank bonds mirrored this development: Eight issues came to market on Monday and Tuesday alone. It is striking that the individual transactions were comparatively small in volume, even though the total issue volume for the two days amounted to 5.75 bn EUR and the order books were well filled with a total of two subscriptions. With seven transactions, the focus was also clearly on the better ranked senior preferred paper, and the new issue premiums offered were also comparatively high, with relatively little constriction afterwards. DNB Bank ASA, a very well-established issuer, was able to complete the largest transaction (1.25 bn EUR) at the lowest new issue pre- mium (7 bps). Outlook: The ambiguous picture is solidifying: the market continues to show receptiveness, but conditions in the highly volatile environment are becoming increasingly difficult. Issuers continue to take advantage of market win- dows that present themselves to fill their issuance plans, which have been expanded by high maturities and credit Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,250% Deutsche Bank AG Aaa /-/- 1,000 Mrd. 20.09.2027 ms +4 Bp 12.09.2022 1,900 Mrd. ms + 8 area 2,500% Deutsche Bank AG Aaa /-/- 0,500 Mrd. 20.09.2032 ms +12 Bp 12.09.2022 1,500 Mrd. ms + 14 area 2,250% NORD/LB - /AA+/- 0,500 Mrd. 20.09.2027 ms +1 Bp 12.09.2022 2,600 Mrd. ms + 6 area 2,500% Erste Group Bank AG Aaa /-/- 0,750 Mrd. 19.09.2030 ms +16 Bp 12.09.2022 1,400 Mrd. ms + 19 area 3,000% Íslandsbanki hf. - /A/- 0,300 Mrd. 20.09.2027 ms +70 Bp 12.09.2022 0,320 Mrd. ms + 70 bp 2,500% DZ HYP AG - /AAA/- 0,750 Mrd. 28.11.2031 ms +7 Bp 13.09.2022 0,870 Mrd. ms + 10 area 2,375% UniCredit Bank Austria AG Aaa /-/- 0,500 Mrd. 20.09.2027 ms +10 Bp 13.09.2022 0,800 Mrd. ms + 13 area 2,625% POP Mortgage Bank Plc - /AAA/- 0,250 Mrd. 22.09.2025 ms +26 Bp 13.09.2022 0,517 Mrd. ms + 30 area 2,625% Coventry Building Society Aaa /AAA/AAA 0,500 Mrd. 07.12.2026 ms +27 Bp 13.09.2022 0,950 Mrd. ms + 30 area 2,375% Helaba Aaa /-/- 1,500 Mrd. 21.09.2026 ms -3 Bp 14.09.2022 3,700 Mrd. ms + 2 area 2,500% Sparebanken Vest Boligkreditt Aaa /-/- 0,750 Mrd. 22.09.2027 ms +10 Bp 14.09.2022 1,200 Mrd. ms + 14 area 2,500% ING Bank N.V. Aaa /AAA/AAA 1,000 Mrd. 21.02.2030 ms +9 Bp 14.09.2022 1,400 Mrd. ms + 11 area t.b.d. EIKA Boligkreditt AS Aaa /-/- 0,500 Mrd. 22.09.2028 ms +12 Bp 15.09.2022 1,900 Mrd. ms + 17 area Quellen: Bloomberg, Helaba DCM €-Covered Bond-Issues week of 12 September 2022 "Since the beginning of the week, covereds in the secondary market have been showing slight signs of fa- tigue. The never-ending stream of new issues plays a role here, which have to be digested in view of the still very volatile and burdened overall market sentiment. Behind this is certainly the fact that the dreaded "QT" word has wafted into the market! All sorts of "sources" are reporting that in addition to the rate hike path, the ECB may take further highly effective measures to combat rampant inflation and an impending slippage in medium-term inflation expectations. " Comment from the Helaba trading floor Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 September 2022 4 of 7 growth, as quickly as possible. Due to the expectation of further rising interest rates, they are also seeking pre- funding. Investors, on the other hand, are becoming increasingly selective and are focusing on high quality and shorter to medium maturities. This overall picture should not change in the coming week. Short news 9/13 ECB study on sustainability ratings: The ECB has published a study examining how credit rat- ing agencies accepted by the Eurosystem incorporate climate change risk in their credit ratings. It also analyses how rating agencies disclose their assessments of climate change risks to rating users. 9/13: Major banks continue share buybacks: Europe's banks continue to distribute capital to their shareholders despite recession worries. Switzerland's UBS increased its full-year dividend by 10 % and announced that its share buyback program would exceed its 5 bn USD target. Italy's UniCredit recently announced that the European Cen- tral Bank had approved the second tranche of its share buyback program, allowing it to repurchase 1 bn USD worth of shares. (Reuters) 9/12 ESAs warn of rising risks: The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) issued their Autumn 2022 joint risk report. The report highlights that the deteriorating economic outlook, high infla- tion and rising energy prices have increased vulnerabilities across the financial sectors. The ESAs advise national supervisors, financial institutions and market participants to prepare for challenges ahead. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,375% BBVA A3 /A/A- 1,250bn 20.09.2027 ms +115 bps 12.09.2022 4,000bn ms + 140/145 area 2,875% SpareBank 1 SR Bank A1 /-/- 0,500bn 20.09.2025 ms +70 bps 12.09.2022 0,850bn ms + 90 area 3,273% Mitsubishi UFJ Financial Group A1 /A-/A- 1,300bn 19.09.2025 ms +100 bps 12.09.2022 2,000bn ms + 115-120 bp 6,375% Iccrea Banca S.p.A. - /BB/BB- 0,350bn 20.09.2027 ms +407 bps 12.09.2022 0,600bn 6,5% area 4,875% Arion Bank hf Baa1 /-/- 0,300bn 21.12.2024 ms +265 bps 13.09.2022 0,300bn ms + 265 area 3,125% DNB Bank ASA Aa2 /AA-/- 1,250bn 21.09.2027 ms +77 bps 13.09.2022 2,300bn ms + 100 area 8,000% Banco de Credito Social Cooperativo (Grupo Cooperativo Cajamar) - /BB/- 0,500bn 22.09.2026 ms +567 bps 13.09.2022 0,950bn Low 8% area t.b.d. Sparebank 1 SMN A1 /-/- 0,500bn 22.12.2025 ms +72 bps 15.09.2022 0,750bn ms + 90 area Sources: Bloomberg, Helaba DCM €-Senior Preferred-Issues week of 12 September 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 5,375% Crelan SA/NV Baa3 /-/- 0,300bn 31.10.2025 ms +310 bps 13.09.2022 0,350bn ms + 310 area 4,625% Commerzbank AG Baa2 /BBB-/- 0,600bn 21.03.2028 ms +220 bps 14.09.2022 1,100bn ms + 240 area t.b.d. Goldman Sachs Group A2 /BBB+/A 1,000bn 21.09.2029 ms +160 bps 15.09.2022 2,000bn ms + 175/180 Bp t.b.d. Citigroup nc. A3 /BBB+/A 1,000bn 22.09.2028 ms +125 bps  15.09.2022 2,400bn ms + 145 area t.b.d. Citigroup nc. A3 /BBB+/A 1,000bn 22.09.2033 ms +160 bps 15.09.2022 2,100bn ms + 175 area Sources: Bloomberg, Helaba DCM €-Senior Non-Preferred-Issues week of 12 September 2022 “The flows are currently driven by the new issues. Fast-money accounts are living up to their name and are sometimes still selling on the same day with small profit-taking or even with a loss. In contrast, insurance companies and asset managers are trying to increase their allocations somewhat, which in turn has made two-way flows in medium volumes possible. It can be said that the summer slump has come to an end and hardly anyone is still following the events from the sidelines.” Comment from the Helaba trading floor Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 September 2022 5 of 7 9/9 ECB intensifies review of banks' exposure to gas crisis: The ECB is intensifying discussions with banks over their readiness for a potential surge in company defaults and a drying-up of energy-market liquidity, amid the worsening stand-off over Russian gas supplies. (Bloomberg) 9/8 ECB monetary policy: The ECB raises its three key interest rates by 75 bp each, which also brings its key de- posit rate to 0.75 % as of Sept. 14. After years of negative interest rates, banks will thus again receive positive re- muneration for their excess liquidity held at the ECB. As a result, the two-tier system for paying interest on excess reserves would also no longer be necessary and would thus be suspended. Maturing paper from the Pandemic Emergency Purchase Program (PEPP) would be flexibly reinvested at least until the end of 2024. Maturities from the Asset Purchase Program (APP) are to be carried out "as long as necessary" to ensure ample liquidity. \* 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 132 6,40% -0,20% iBoxx € Cov. Germany 2,3 0,2 -2,0 iTraxx Senior Financial 116,3 -9,5 9,0 10Yr-Yield 1,69 0,12 0,61 iBoxx € Cov. Bonds 10,8 0,3 -1,6 iBoxx € Supranational 0,2 0,23 -0,99 Swap 10J 2,54 0,11 0,66 iBoxx € Banks PS 75,3 -2,1 9,0 iBoxx € Agencies -19,7 1,55 -3,40 iBoxx € Germany -76,3 5,06 -1,76 iBoxx Banks NPS 117,6 -5,6 11,9 iBoxx € Sub-Sov. Germany -2,2 0,10 -4,36 iBoxx € EU 1,0 0,82 1,08 iBoxx Banks Subordinated 208,2 -8,0 27,5 iBoxx € Sub-Sovereign 11,7 0,41 -2,76 Leisure tip for the weekend: Celtic World at Glauberg Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.keltenwelt-glauberg.de The Celt World at Glauberg is an archaeological museum and research center in the municipality of Glauberg in Hesse. The focus is on the Celtic period, and the facility includes, among other things, an archaeological park. The park is directly attached to the museum in the form of a 370,000-square-meter out- door area. On the present park area there is the former Celtic hilltop settle- ment as well as a medieval town complex. The permanent exhibition focuses on the "Celtic Prince of Glauberg" and also presents original finds from previ- ous excavations in a historical and scientific context. The visitor center is rounded off by a café with a wide window front offering a view over the exhibi- tion site. More information: Celtic World Glauberg The Euromoney/ECBC Covered Bond Congress Join us at the largest gathering of the global covered bond community on 22nd September 2022 in Vienna. We are gold sponsor and look forward to meet you at our stand. You can register via this Link. Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 September 2022 6 of 7 Chartbook SSA, Covered Bonds, Senior Unsecured Senior Primary volumes Senior Unsecured: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW in bp Sources: Bloomberg, Helaba Research & Advisory Sources: Bloomberg, Helaba Research & Advisory 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 50 60 70 80 90 100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2021 SP 2020 SP 2022 SP 2020 SNP 2021 SNP 2022 SNP 0 50 100 150 200 250 300 0 50 100 150 200 250 300 Sep.21 Nov.21 Jan.22 Mrz.22 Mai.22 Jul.22 Sep.22 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 in bp Sources: Bloomberg, Helaba Research & Advisory Sources: Bloomberg, Helaba Research & Advisory 0 20 40 60 80 100 120 140 0 20 40 60 80 100 120 140 160 180 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2022 2020 2021 -4 -2 0 2 4 6 8 10 12 14 16 -4 -2 0 2 4 6 8 10 12 14 16 Sep.21 Nov.21 Jan.22 Mrz.22 Mai.22 Jul.22 Sep.22 EUR Covered Covered Germany SSA: Primary volumes SSA: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW spread in 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 2020 2021 2022 -25 -15 -5 5 15 25 -25 -15 -5 5 15 25 Sep. 21 Nov. 21 Jan. 22 Mrz. 22 Mai. 22 Jul. 22 Sep. 22 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 15 September 2022 7 of 7 News from Research & Advisory  FOCUS ON: SSAS – GERMAN AGENCIES  FOCUS ON: CREDITS – EUROPEAN BANKS: NET INTEREST INCOME RISES SHARPLY IN Q2 2022  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 – PRIMARY MARKET UPDATE EUR BENCHMARK BANK BONDS: Q2 2022  FOCUS ON: CREDITS – EUROPEAN BANKS: CLIMATE RISK STRESS TEST HIGHLIGHTS NEED FOR FURHTER ACTION  EUR CORPORATE BONDS: PRIMARY MARKET Q2 2022  EUROPEAN BANKS: ACTIVITIES BECOMING EVER GREENER  IMPLEMENTATION OF THE EU COVERED BOND DIRECTIVE: SPAIN VERSUS FRANCE AND GERMANY (VIDEO)  IMPLEMENTATION OF THE EU COVERED BOND DIRECTIVE – STATE OF PLAY: AUSTRIA VERSUS FRANCE AND GERMANY (VIDEO)  IMPLEMENTATION OF THE EU COVERED BOND DIRECTIVE – STATE OF PLAY IN FRANCE AND GERMANY (VIDEO)  COVERED-BOND-LAWS: IMPLEMENTATION OF THE EU REGULATION (VIDEO) 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 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

SSA: EU bond highly sought after. Covered Bonds: Fireworks of new issuance activity. Senior unsecured: Very solid in a difficult environment.