---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-34
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 1 September 2022 © Helaba | Research & Advisory | 1 September 2022 1 of 7 Research & Advisory Weekly Market Update Primary market environment: High inflation, driven by energy prices, remains a determining factor on the markets. Thus, the ECB is under immense pressure to act. Despite concerns about an economic slowdown, a large rate hike (75 bps) is likely this month. In China, the Caixin manu- facturing index slipped into contraction territory. Various negative factors and the associated uncertainties are influencing the overall market. This is also ex- pressed in our spread indicator by a clear red colour in the short-term range. Primary market barometer Sources: Helaba Research & Advisory After a subdued start to the week, the trend - the search for safe assets - continued in midweek with a verita- ble fireworks display. The SSA seg- ment offered everything the heart desires - a multitude of issuers and a maturity range of 5-15 years. This week's primary market results are very positive for the covereds. Al- most all transactions recorded a high order book dynamic, so that the ini- tial spread specifications could be narrowed significantly. In the senior unsecured segment, the primary market has recently seen a surprisingly strong revival. Investors have high investment needs, but re- main very selective. Next week will see the ECB's interest rate decision. We expect a slowdown in new issues. Covered Bonds Senior Unsecured SSA Spread indicator underpins increasing risk aversion 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 0,18 0,06 -0,03 -1,20 -2,67 -3,50 European Union 0,08 0,19 0,13 0,16 0,28 -0,53 Germany Covered 0,09 0,25 -0,01 0,39 0,49 -0,40 EU Covered 0,02 0,06 0,00 0,15 0,24 -0,02 Banks senior preferred 0,21 0,14 0,19 0,31 1,73 0,83 Banks senior bail-in (SNP) 0,19 0,26 0,56 0,75 2,12 1,21 Banks subordinated 0,14 0,15 0,27 0,33 1,79 0,85 Supranational 0,08 0,17 0,01 0,31 0,13 -0,59 Agencies 0,08 0,13 -0,11 -0,37 -0,97 -1,44 Sub-Sovereigns Germany 0,06 0,09 -0,32 -0,07 -1,30 -1,63 Sub-Sovereigns 0,10 0,12 -0,28 0,00 -0,65 -1,43 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 September 2022 2 of 7 SSA The demand for safe forms of investment continues. Since Wednesday, a large number of new issues have been placed by attractive issuers for which a positive interim balance can be drawn, both for the Oder books and for the narrowing of spreads compared to the default. In the 5-year ma- turity range, the Korean development bank "KDB" and the Japanese municipal financier Japan Finance Or- ganization for Municipalities were active. Investi- tionsbank Schleswig-Holstein opted for an eight-year maturity. The Danish municipal financier Kom- muneKredit, as well as the French central oil stock- holding agency (SAGESS), chose 10-year issues. The regional development bank of the German state of North Rhine-Westphalia as well as the international development organisation International Development Association came to the market with long maturities of 15 years. The former was also structured according to social aspects (with a focus on housing promotion, job creation and education initiatives). In the case of the German promotional banks, federal and state guarantees offer maximum security and keep risk premiums comparatively low. Today, BGK followed with a EUR benchmark (EUR 600 million, 5-year, MS+180), JFM (5-year, MS+21) and Finnvera (EUR 1 billion, 5-year, MS-8). Outlook: Issuance activity is likely to continue in the coming week, but will be concentrated in the days leading up to the ECB meeting. Covered Bonds The primary market continues to enjoy great interest. This leads to oversubscribed order books and consequently the initial spreads can be narrowed without exception. This week, 5 bonds, including a Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,125% Investitionsbank Schleswig-Holstein - /-/AAA 0,500bn 06.09.2030 ms -10 bps 30.08.2022 0,980bn ms - 9 area 2,500% International Development Association Aaa /AAA/- 2,000bn 15.01.2038 ms +10 bps 30.08.2022 2,900bn ms + 10 area 2,375% KommuneKredit Aaa /AAA/- 1,000bn 15.09.2032 ms +4 bps 30.08.2022 2,000bn ms + 6 area 2,500% NRW.BANK Aa1 /AA/AAA 1,000bn 07.09.2037 ms +6 bps 31.08.2022 3,700bn ms +8 area 2,625% Korea Developement Bank Aa2 /AA/AA- 0,500bn 08.09.2027 ms +38 bps 31.08.2022 0,620bn ms +45 area 2,125% Japan Finance Org. for Municipalities A1 /A+/- 1,250bn 08.09.2027 ms +21 bps 01.09.2022 3,300bn ms +24 area t.b.d. Finnvera Aa1 /-/AA+ 1,000bn 08.03.2028 ms -8 bps 01.09.2022 4,400bn ms -5 area t.b.d. Bank Gospodarstwa Krajowego - /-/A- 0,600bn 08.09.2027 ms +180 bps 01.09.2022 1,000bn ms +190 area Sources: Bloomberg, Helaba DCM €-SSA-Issues week of 29 August 2022 "Since the end of last week, the coordinates have shifted towards possibly stricter tightening measures. Of course, this does not leave the covered bond market unaffected. Once again, the market is eagerly awaiting the setting of price points by primary transactions. After a subdued start to the week, the market shot out of all cylinders yesterday! The initial price concessions are to be expected in view of the feared rise in overall market yields. Santander, for example, offered a dual tranche of 5 and 10 years with initial NIPs of approx. 15 bps after a long absence." Comment from the Helaba trading floor Agencies also benefit from wide Bund swap level ASW in Bp. Quellen: Bloomberg, Helaba Research & Advisory Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 September 2022 3 of 7 dual tranche of Banco Santander, were successfully placed with an exceptionally high issue volume of EUR 3.5 bil- lion. HSBC SFH France kicked off with a EUR 500 million benchmark. The order book was 3.8 times oversubscribed and the initial spread was narrowed from MS+30 to MS+25. When assessing the issue spread, it is important to note that the covered bond issuer HSBC France SFH is to be sold to My Money Bank Group (MMG). The higher spread level can be explained by the anticipation of the change in ownership and the comparatively poorer MMG rating. Hypo NOE (EUR 500 million, WNG, 8 years, MS+20) was active today. Compared to the other issues this week, the oversubscription rate was relatively low. Unsurprisingly, the ECB also remains active: Within the frame- work of the APP, it increased its covered bond portfolio (CBPP3) by EUR 331 million in the last reporting week. We assume that these purchases are an anticipation of the high September maturities of EUR 6.8 bn and that the lat- ter will not be fully replaced. Outlook: Issuance activity will undoubtedly continue in the coming days, although this is likely to be limited to the first few days of the week given the ECB meeting on Thursday. Senior Unsecured In the senior unsecured segment, too, the primary market has recently picked up strongly after the summer break. Last week, market conditions here seemed almost as favorable as in the other two bond classes we monitor: In principle, investors are keen to buy, albeit at still elevated spread levels. On Wednesday and Thursday of this week in particular, a respectable number of deals in EUR benchmark format were successfully accommodated, including, for example, Raiffeisen Bank International, where the Russian activi- ties are currently causing plenty of uncertainty about the strategic targets of the institution. For the most part, spreads on the transactions were narrowed encouragingly during the book building process. However, the market environment remains volatile: iBoxx Financials spreads were clearly affected by expectations of interest rate hikes and gas supply stops and widened noticeably compared to the previous week. Secondary market spreads for the new bonds mentioned above were also unable to escape this trend. Outlook: The institutions' issuance plans for this year are still quite extensive, driven not least by high maturities and regulatory requirements. Any favorable market conditions will therefore continue to be actively used for sen- ior unsecured issues. Investors are particularly looking for good qualities. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,625% HSBC SFH Aaa /AAA/- 0,500 Mrd. 07.09.2032 ms +25 Bp 31.08.2022 1,900 Mrd. ms +30 area 2,375% Banco Santander, S.A. Aa1 /-/AA 2,250 Mrd. 08.09.2027 ms +20 Bp 31.08.2022 4,000 Mrd. ms +25 area 2,750% Banco Santander, S.A. Aa1 /-/AA 1,250 Mrd. 08.09.2032 ms +42 Bp 31.08.2022 2,000 Mrd. ms +45 area 2,250% DekaBank Aaa /-/- 0,250 Mrd. 08.09.2028 ms -3 Bp 31.08.2022 1,100 Mrd. ms +2 area 2,500% HYPO NOE Aa1 /-/- 0,500 Mrd. 28.06.2030 ms +19 Bp 01.09.2022 0,680 Mrd. ms + 20 area Quellen: Bloomberg, Helaba DCM €-Covered Bond-Issues week of 29 August 2022 Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 September 2022 4 of 7 The market environment remains challenging for the time being and transaction risks high in view of geopolitical tension and event-driven news. For example, another ECB meeting is scheduled for next week. The pace of new issues is therefore likely to tend to slow in the coming days. Short news 9/1 The European Covered Bond Council has published the new edition of the Covered Bond Fact Book. 8/30 Chinese banks: China's industry leader Industrial and Commercial Bank of China (ICBC) joined the trend of mid-single-digit profit growth among China's major state-controlled banks with a 4.9% rise in after-tax profits to 171.5 billion yuan (just over 24.5 billion euros) in the first half of the fiscal year. Nevertheless, increased credit de- fault risks related to weak property market soundness and deteriorating creditworthiness among Chinese real es- tate developers are creeping in. ICBC had to increase loan loss provisions in the real estate sector by 15%, with the NPL ratio climbing from 4.79% to 5.4%. (Börsen-Zeitung) 8/30 Italian banks. Italy's central bank Banca d'Italia, the government and the private banks' deposit guarantee fund FITD are apparently working to create a new aid fund to support small banks in difficulty. This was reported by the business newspaper "Il Sole 24 Ore" with reference to an alleged meeting of the parties involved in early August in Rome. (Börsen-Zeitung) 8/30 Foreign banks in Germany: Citigroup launches new corporate banking business in Germany and targets internationally active SMEs. 8/29 ECB monetary policy: Speculation on 75 bps interest rate step gains momentum – the probability increased from 24 % to 67 %. (Handelsblatt) 8/29 Customer loans: The city of Vienna apparently needs an emergency loan worth billions because of a utility company. (NZZ) Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,125% Raiffeisen Bank International AG A2 /-/- 0,500bn 08.09.2025 ms +200 bps  31.08.2022 1,750bn ms +230 area 3,750% CaixaBank, S.A. Baa1 /A-/A- 1,000bn 01.09.2029 ms +155 bps 31.08.2022 1,700bn ms +175 area Sources: Bloomberg, Helaba DCM €-Senior Preferred-Issues week of 22 August 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,067% Natwest Group Plc Baa1 /BBB/A 1,000bn 06.09.2028 ms +185 bps 30.08.2022 2,300bn ms + 210 area 4,750% Intesa Sanpaolo S.p.A. Baa3 /BBB-/BBB- 1,000bn 06.09.2027 ms +250 bps 30.08.2022 2,300bn ms + 270/275 bp 3,490% Mizuho Financial Group, Inc. A1 /-/A- 0,800bn 05.09.2027 ms +123 bps 30.08.2022 1,100bn ms + 145 area 4,029% Mizuho Financial Group, Inc. A1 /-/A- 0,500bn 05.09.2032 ms +160 bps 30.08.2022 0,750bn ms + 180 area 5,375% Banco Sabadell - /BB+/BBB- 0,500bn 08.09.2026 ms +325 bps 31.08.2022 0,825bn ms +330 area Sources: Bloomberg, Helaba DCM €-Senior Non-Preferred-Issues week of 29 August 2022 “Yields and significantly wider iTraxx indices are pushing to ever higher levels. Turnover is picking up and we are seeing increased activity in real money accounts as sellers. At the same time, the latter are active in the secondary market following new issues. Fast Money is taking primary market gains. ETF funds are currently sellers, encountering weak supply. Trading desks have been preparing for the current flood of new issuance over the summer and can therefore act, even though there is relatively low risk appetite.” Comment from the Helaba trading floor Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 September 2022 5 of 7 8/29 Customer loans: Uniper fully utilizes its KfW credit line and intends to raise a further 4 bn EUR. 8/28 New lending: Lending to companies in the Euro zone rised by 7.7% in July, the strongest increase since 2009. (ECB) 8/25 Russia exposures: Citigroup intends to wind down its consumer and local commercial banking businesses in Russia. \* 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 125 -1,11% -3,78% iBoxx € Cov. Germany 3,7 2,1 0,8 iTraxx Senior Financial 130,0 12,9 20,3 10Yr-Yield 1,54 0,18 0,67 iBoxx € Cov. Bonds 12,0 2,2 1,1 iBoxx € Supranational 2,4 2,50 1,32 Swap 10J 2,42 0,16 0,73 iBoxx € Banks PS 76,0 8,0 7,4 iBoxx € Agencies -17,9 2,78 -0,95 iBoxx € Germany -79,1 3,09 -1,09 iBoxx Banks NPS 126,7 13,5 19,2 iBoxx € Sub-Sov. Germany 0,3 1,97 -3,57 iBoxx € EU 3,0 2,56 2,94 iBoxx Banks Subordinated 207,3 16,3 20,9 iBoxx € Sub-Sovereign 13,4 2,41 -2,42 Leisure tip for the weekend: Xanten in North Rhine-Westphalia Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.xanten.de Xanten is a town in North Rhine-Westphalia with about 22,000 inhabitants, which is known for its Roman history and the numerous sights from this time. Therefore, the medium-sized district city of the district of Wesel is not only known domestically, but also popular with international tourists. Among the most famous sights of the city are undoubtedly the Archaeological Park, the Roman Museum, the Cathedral of St. Victor and the Castra Vetera (reliefs of a Roman base camp). In addition to the city itself, Xanten's surroundings are also attractive for exploration and relaxation excursions. For example, there are several nature reserves and lakes near the Rhine and in the direction of Wesel. More information: Xanten 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 | 1 September 2022 6 of 7 Chartbook SSA, Covered Bonds, Senior Unsecured Senior Primary volumes SSA: 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 Aug.21 Okt.21 Dez.21 Feb.22 Apr.22 Jun.22 Aug.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 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 Aug.21 Okt.21 Dez.21 Feb.22 Apr.22 Jun.22 Aug.22 EUR Covered Covered Germany SSA: Primary volumes Senior Unsecured: 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 Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 1 September 2022 7 of 7 News from Research & Advisory  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: Everything your heart desires Covered Bonds: Transactions recorded high order book momentum Senior Unsecured: Slowdown in new issues likely