---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-42
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 7 July 2022 © Helaba | Research & Advisory | 7 July 2022 1 of 7 Research & Advisory Weekly Market Update Primary market environment: Risk aversion dominates, which is not surprising in view of the existing fears of recession and inflation, supply bottlenecks for gas, rising interest rates, contin- uing interrupted supply chains, the ongoing Ukraine war and a renewed threat of a trade dis- pute between the USA and China. Safe investments are accordingly in focus. Market sentiment is largely influenced by risk aversion. As our spread indicator shows, the so-called "safe haven assets" are benefiting, while senior unsecured bonds are in a difficult market environment. Primary market barometer Sources: Helaba Research & Advisory In view of the risk aversion prevailing on the market, the SSA segment is currently attracting one or the other investor. The search for security plays a role here. In addition, many of these securities are currently rela- tively attractive compared to Bunds. More and more market participants are taking their leave for the summer break. Accordingly, the remaining is- suance window is getting smaller and smaller. In the course of the bund/swap spread widening, histori- cally favourable valuations of covereds against bunds can currently be found. In the difficult market environment, primary market activity has come to a virtual standstill. This is compounded by the blackout period ahead of the Q2 2022 reporting season and the upcoming summer break. Covered Bonds Senior Unsecured SSA No uniform trend 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 -0,63 -1,04 -0,60 -2,83 -3,50 European Union -0,11 0,00 -0,13 0,26 -0,35 -0,66 Germany Covered -0,24 -0,02 0,10 0,05 0,11 -0,77 EU Covered -0,05 0,01 0,06 0,07 0,11 -0,14 Banks senior preferred -0,16 0,04 1,35 2,43 2,71 1,08 Banks senior bail-in (SNP) -0,14 0,11 1,30 2,19 2,69 0,97 Banks subordinated -0,03 0,23 0,96 1,64 2,16 0,92 Supranational -0,11 0,00 0,12 0,24 -0,28 -0,40 Agencies -0,09 -0,01 -0,12 -0,16 -0,81 -1,10 Sub-Sovereigns Germany -0,08 0,04 -0,04 -0,47 -1,21 -1,62 Sub-Sovereigns -0,06 0,07 0,14 0,08 -0,53 -1,17 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 July 2022 2 of 7 SSA As mentioned at the beginning, the SSA segment currently has a certain attractiveness, which is not least reflected in increased activity on the primary market. Yesterday, for example, the state of Schleswig-Holstein placed a 5-year bond with a volume of EUR 1 billion at MS-17. The Dutch BNG Bank came to the market with a new 10-year Sustainable Bond at MS-1. The Austrian Kontrollbank was even able to point to a roughly 8-fold oversubscription of the book. Although the placement of the latter paper went extremely well, it remains to be said that only the big names succeed in generating sufficient buyers, sometimes with difficulty and a new issue premium. How difficult this is for other players is shown by the examples of SAGESS, whose issue was postponed last week, or the IDF region, which is still waiting after announcing it. A fundamental improvement and thus a turnaround does not seem to be in sight for the time being. Covered Bonds Overall, market sentiment is strongly influenced by the prevailing risk aversion. Safe assets are being sought accordingly. The primary market environment for covered bonds, however, is clear and threatens to fall asleep. A central role is played by the fact that market volatility is currently extremely high and traders are not willing to take new positions on the books. In addition, new issue premiums have risen from around 5 bps in the near past to around 10 bps on average and oversubscription rates are significantly lower. As a result, there is virtually no "tightening" against the "guidance" any more. With regard to maturities, the sweet spot is currently around 5 years. In the second quarter this was, somewhat surprisingly at first, an average of 6.8 years. The explanation may lie partly in the flood of issuance from the particularly popular core countries: The past Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 0,500% EIB Aaa /AAA/AAA 1,000bn  13.11.2037 ms +3 bps 04.07.2022 1,600bn ms + 4 area 1,750% Hessen - /AA+/- 0,300bn 12.07.2029 ms -14 bps 04.07.2022 not disclosed ms - 14 area 0,600% CADES Aa2 /AA/- 1,500bn  25.11.2029 FRTR +31 bp 04.07.2022 2,800bn FRTR +32 area 1,900% Rentenbank Aaa /AAA/AAA 1,000bn 12.07.2032 ms -11 bps  05.07.2022 3,300bn ms - 9 area 2,661% Région Nouvelle-Aquitaine - /-/- 0,100bn 12.07.2042 FRTRs +30 bp  05.07.2022 0,120bn FRTRs +30 area 1,500% Oesterreichische Kontrollbank AG Aa1 /AA+/- 0,500bn 13.07.2027 ms -9 bps  06.07.2022 3,900bn ms -6 area 1,875% BNG Aaa /AAA/AAA 1,000bn 13.07.2032 ms -1 bps  06.07.2022 1,250bn ms flat area 1,375% Schleswig-Holstein - /-/AAA 1,000bn 14.07.2027 ms -17 bps 06.07.2022 2,350bn ms -16 area 0,250% Corp. Andina de Fomento Aa3 /A+/A+ 1,250bn 04.02.2026 ms +75 bps 28.01.2021 1,900bn ms + 80 area 0,125% KFW Aaa /AAA/AAA 1,000bn  09.01.2032 ms -15 bps 07.07.2022 1,100bn ms - 15 area Sources: Bloomberg, Helaba DCM €-SSA-Issues week of 4 July 2022 "The secondary market, in view of ultra-high volatilities in absolute yields and historically high intraday trad- ing spreads, understandably cannot show any change in one direction or the other! Spreads vs. swaps tend to remain elevated and valuations vs. EGBs are at long-term highs anyway (Bund/swap spread 10Y currently >90 bps). It can be assumed that in the summer weeks, with the generally thin market liquidity, no one will be found who will use these levels to reverse the trend in the long term!" Assessments from the Helaba trading room "Some players dare to buy again on certain new issues. The big agencies and sup-ras manage to get their deals over the line with effort and attractive NIPs. Thus, either no or only a slight performance can be ob- served for these names in the secondary market. However, this should not be misinterpreted. The appetite in the secondary market is still very small, especially for the long end. Duration remains taboo and smaller SSA names are currently struggling in this environment." Assessments from the Helaba trading room Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 July 2022 3 of 7 quarter was dominated by issuers from Austria (19). France (16) and Germany (15) followed in the places. Canada (8) slipped from the top position in the first quarter to fourth place. Outlook: The window for new issuance is likely to narrow as more and more market participants head off for their summer holidays. No significant revival is to be expected before the end of August. The ECB meeting on the agenda next week will also ensure restraint. In addition to the market topics, the focus must also be on the national covered bond laws of the countries that will only implement the EU Covered Bond Directive in the coming weeks. Some countries such as Germany, France, Austria and Spain had already ratified it in 2021 or at the beginning of 2022, but other member states have not yet reported any or only partial implementation measures to the EU Commission. According to market sources, the Dutch law is supposed to have been implemented and applied in time. However, we do not yet have any further information. The application period ends on 8 July 2022. If the provisions of the EU directive have not been ap- plied by then, newly issued securities will lose their regulatory privileges (see video "Implementation of the EU regulation on the harmonisation of covered bonds"). Senior Unsecured The primary market for senior unsecured bank bonds has come to a virtual stand- still. In addition to the extremely uncomfortable gen- eral conditions (especially recession and interest rate fears), the beginning of the vacation season and the blackout period in the run-up to the Q2 2022 report- ing season have added to this. The willingness of dealers to take positions on the books has declined noticeably in the volatile market environment (see also Bund swap spread in our chart). In the wake of this, private placements are also proving difficult due to the lack of anchor points for determining prices. Outlook: Many issuers are postponing planned trans- actions in the hope that the capital market environment will ease after the summer season in September. Accord- ing to our expectations, the primary market in the senior unsecured segment is going to remain subdued in the coming weak. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,625% Deutsche Bank AG Aaa /-/- 0,200bn  30.06.2037 ms +24 bps 05.07.2022 0,350bn ms + 24 bp tbd. Westpac Securities NZ Limited, Ldn Branch Aaa /-/AAA 0,750bn 14.01.2026 ms +30 bps 07.07.2022 1,000bn ms + 30 bp Sources: Bloomberg, Helaba DCM €-Covered Bond-Issues week of 4 July 2022 "More buyers are venturing back into the market, with the buyer/seller ratio of inquiries still unbalanced. As- set managers and insurers try to lock in the high yields of partly over 4 %. The phenomenon of non-tradable screen prices is now making itself felt on the offer side. This shows how illiquid the market has become and that bid/ask spreads have also widened continuously." Assessments from the Helaba trading room Rising interest rates and risk perception EUR SWAP vs Govt Bond 10Y, bps Quellen: Bloomberg, Helaba Research & Advisory 0 20 40 60 80 100 0 20 40 60 80 100 05/06 05/09 05/12 05/15 05/18 05/21 Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 July 2022 4 of 7 Short news 7/4 ECB interest rate policy: The European Central Bank (ECB) is looking at ways to stop banks earn- ing billions of euros of extra profit from the ultra-cheap lending scheme it launched during the pan- demic once it starts to raise interest rates. According to the Financial Times, one option could be for the ECB to change the terms of the loans to reduce the chance for banks to make an automatic return on the money. 7/4 Covered Bonds in Czeck Republic and Hungary: Payment continuity risk in covered bond programmes will be reduced in the Czech Republic and Hungary through the introduction of a mandatory 180-day liquidity buffer and the formalisation of potential maturity extension clauses under the EU Covered Bond Directive, Fitch Ratings said. Such provisions already exist in Poland and Slovakia, but will be further aligned with the other countries. 7/1 Consolidated financial statements of the Eurosystem: The European Central Bank (ECB) has published the consolidated financial statement of the Eurosystem as at 1 July 2022. 7/1 EBA risk dashboard: EBA risk dashboard points to high capital and liquidity ratios and indicates first signs of deterioration in asset quality not least related to geopolitical tensions. 7/1 Sustainability reporting: The trilogue parties have reached a preliminary agreement on the CSRD proposal for sustainability reporting at corporate level. According to this, small and non-complex institutions (SNCI) may report at a later date (for the first time for the 2026 financial year) and also to a lesser extent. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 5,500% OTP Bank Nyrt. - /BBB/- 0,400bn 13.07.2025 ms +0 bps  05.07.2022 0,000bn 5,5% area Sources: Bloomberg, Helaba DCM €-Senior Preferred-Issues week of 4 July 2022 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 4 July 2022 Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 July 2022 5 of 7 \* 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 75,93 -8,27% -16,31% iBoxx € Cov. Germany\* 1,59 0,15 0,93 iTraxx Senior Financial 133,5 4,62% 33,90% 10J-Yield 1,16 -0,35 -0,19 iBoxx € Cov. Bonds\* 9,31 0,51 2,16 iBoxx € Supranational 100,3 2,31% 0,04% Swap 10J 2,01 -0,34 -0,06 iBoxx € Banks PS 90,74 1,40% -0,37% iBoxx € Agencies 96,6 1,84% 0,66% iBoxx € Germany 99,82 2,5% 1,2% iBoxx Banks NPS 91,90 1,7% -1,1% iBoxx € Sub-Sov. Germany 96,9 2,04% 0,57% iBoxx € EU 96,50 2,72% 0,12% iBoxx Banks Subordinated 82,14 1,02% -1,97% iBoxx € Sub-Sovereign 94,7 2,04% 0,00% Leisure tip for the weekend: Villa Hügel Essen & Lake Baldeney Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.villahuegel.de, baldeneysee.de From 1873 to 1945, the Krupp family of entrepreneurs lived at Villa Hügel in the Bredeney district of Essen. The estate was built by Alfred Krupp and is the family's former residence and representative building. The grounds are situ- ated above the Ruhr valley in the middle of the 28-hectare hill park. In addi- tion to various guided tours and exhibitions through the former premises of the Krupp family, the associated park, which is also known as the "green treasure chamber", can be fully explored. Not far from Villa Hügel is Lake Baldeney, the largest of a total of six Ruhr reservoirs. More information: Villa Hügel, Lake Baldeney Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 July 2022 6 of 7 Chartbook SSA, Covered Bonds, Senior Unsecured SSA: 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 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 -20 -10 0 10 20 30 -20 -10 0 10 20 30 Jun. 21 Aug. 21 Okt. 21 Dez. 21 Feb. 22 Apr. 22 Jun. 22 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany 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 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 -4 -2 0 2 4 6 8 Jun.21 Aug.21 Okt.21 Dez.21 Feb.22 Apr.22 Jun.22 EUR Covered Covered Germany Senior 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 20 40 60 80 100 0 20 40 60 80 100 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2022 Senior Non-preferred 2021 Senior Non-preferred 2022 Senior Preferred 2021 Senior Preferred 0 50 100 150 200 0 50 100 150 200 Jun.21 Aug.21 Okt.21 Dez.21 Feb.22 Apr.22 Jun.22 Banks Subordinated Banks Senior Bail-in Banks Senior Preferred Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 7 July 2022 7 of 7 News from Research & Advisory  EUR CORPORATE BONDS: PRIMARY MARKET Q2 2022  EUROPEAN BANKS: ACTIVITIES BECOMING EVER GREENER  FOCUS ON: CREDITS - EUROPEAN BANKS: WAR IN UKRAINE CLOUDS OUTLOOK  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: Sabrina Miehs, CESGA 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 securities currently relatively attractive compared to Bunds. Covered bonds: Historically favourable valuations against Bunds. Senior unsecured: Difficult market environment.