---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-44
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 2 June 2022 © Helaba | Research & Advisory | 2 June 2022 1 of 7 Research & Advisory Weekly Market Update Primary market environment: Interest rate and inflation fears, associated economic concerns and the effects of the Ukraine war - keyword energy supply - continue to dominate sentiment. The short-term greater willingness to take risks on the stock and credit markets should there- fore not be interpreted as a fundamental change in sentiment. In our spread indicator, the colour red has a large share which makes the overall risk aversion on the markets visi- ble. Valuations of senior unsecured bonds recovered somewhat last week. Primary market barometer Sources: Helaba Research & Advisory In the last few days, a large part of the SSA spreads have tightened against OAT/Bund spreads, especially at the long end. The lack of appetite for duration is one of the main fac- tors behind the weak performance of SSAs. Furthermore, it is confirmed that shorter maturities are much easier to issue than their longer-dated coun- terparts. In the recent past, the 10- year maturity band represented the "magic" threshold, but this now seems to be around 7 years. The lull in the primary market for sen- ior unsecured bonds is not just due to public holidays. Issuers have al- ready made extensive use of the capi- tal market this year and are adopting a wait-and-see approach in the cur- rent weak market environment. Covered Bonds Senior Unsecured SSA The trend towards widening spreads continues 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 0,08 0,35 0,79 0,74 -2,34 -2,81 European Union 0,13 0,22 0,48 0,37 -0,30 -0,79 Germany Covered 0,10 0,14 0,12 -0,08 0,04 -1,10 EU Covered 0,02 0,04 0,05 0,01 0,05 -0,26 Banks senior preferred -0,02 -0,31 0,57 -0,08 1,28 -0,49 Banks senior bail-in (SNP) -0,01 -0,42 0,25 -0,05 1,18 -0,55 Banks subordinated -0,01 -0,13 0,19 0,03 0,99 -0,23 Supranational 0,08 0,13 0,19 0,10 -0,43 -0,59 Agencies 0,05 0,06 0,23 0,12 -0,73 -1,08 Sub-Sovereigns Germany 0,01 -0,05 -0,17 -0,89 -1,04 -1,66 Sub-Sovereigns 0,03 -0,02 0,08 -0,33 -0,62 -1,32 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 2 June 2022 2 of 7 SSA In the SSA segment, there has recently been a lack of large new issues from the "heavyweights". KfW was able to increase its 15-year benchmark from March by € 1 billion to the target volume of a "real" KfW benchmark of € 3 billion. However, demand for maturities longer than 10 years remains rather subdued, which was also evident in this transaction. The state of Baden-Württemberg recently updated its Green Bond Framework and successfully placed its second green issue. In the pipeline is the state of North Rhine-Westphalia with a 10-year sustainability benchmark. Depending on market conditions, a 30-year sustainability benchmark could also follow. Outlook: A number of uncertainty factors continue to affect demand for longer maturities, and the upcoming ECB meeting is also casting its shadow. Covered Bonds For covereds the following still applies, the shorter the maturity, the better. The example of UniCredit-Bank AG shows this impressively: the EUR 500 million bond with a 5-year maturity was placed with a premium of only 2 bps to the secondary market curve, despite good demand. The issuers of BAWAG P.S.K. (7.75 years) and Royal Bank of Canada (7 years), on the other hand, had to offer investors a much higher in- centive, in both cases the NIP was around 7 bp. Danish Ship Finance supported its new issue with a simultaneous repurchase offer for two outstanding covered bonds. Ultimately, however, the issue was postponed until further notice. So far, the primary market offering has already exceeded the previous year's volume by more than EUR 10 billion. Last but not least, this market segment with its constant flow of new transactions contributes to the defen- sive activity in the secondary market. This interplay is particularly sensitive these days. A stabilising effect comes from the (still) quite decent participation through the ECB's official purchase programmes. Most recently, covered bond purchases within the framework of CBPP3 have increased again, although the rate of increase was signifi- cantly lower compared to the previous week. Today and tomorrow the celebrations for the platinum jubilee of Queen Elizabeth II will take place in the UK, which will have a noticeable impact on primary market activity. The coming week will be significantly influenced by Thursday's ECB meeting and interest rate decision. It is possible that issuers will try to take advantage of the time window before this "event". Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,625% DZ HYP AG Aaa /AAA/- 0,750bn 30.05.2031 ms +5 bps 23.05.2022 0,860bn ms + 7 area 1,625% Credit Agricole Home Loan SFH Aaa /AAA/AAA 1,000bn 31.05.2030 ms +10 bps 23.05.2022 1,475bn ms + 11 area 1,375% Länsförsäkringar Hypotek AB Aaa /AAA/- 0,500bn 31.05.2027 ms +6 bps 23.05.2022 1,200bn ms + 10 area 1,750% Landesbank Saar - /-/AAA 0,250bn 31.05.2032 ms +11 bps 24.05.2022 0,340bn ms + 12 area 1,625% Oberösterreichische Landesbank AG (HYPO Oberösterreich) - /AA+/- 0,250bn 01.06.2029 ms +15 bps 24.05.2022 0,300bn ms + 15 area 1,750% Credito Emiliano SpA Aa3 /-/AA 0,500bn 31.05.2029 ms +22 bps 24.05.2022 0,500bn ms + 20/22 bp WPIR 1,375% Swedbank Mortgage AB Aaa /AAA/- 1,000bn 31.05.2027 ms +6 bps 24.05.2022 1,500bn ms + 9 area 1,375% UniCredit Bank AG Aaa /-/- 0,500bn 07.06.2027 ms +0 bps 30.05.2022 0,935bn ms + 5 area 1,839% Bank of Queensland Aaa /-/AAA 0,600bn 09.06.2027 ms +30 bps 31.05.2022 0,665bn ms + 30 area 1,750% BAWAG P.S.K. Aaa /-/- 0,750bn 08.03.2030 ms +14 bps 31.05.2022 1,100bn ms + 15 area 1,750% Royal Bank of Canada Aaa /-/AAA 1,000bn 08.06.2029 ms +16 bps 31.05.2022 1,300bn ms + 18 area n/a Danish Ship Finance - /A/- cancelled 09.06.2027 cancelled 01.06.2022 n/a ms + 37 area Sources: Bloomberg, Helaba DCM €-Covered Bond-Benchmark-Issues weeks of 23 and 30 May 2022 "With a certain amount of frustration, the markets have to acknowledge that they are trapped by the all-dom- inant theme of further rising inflation rates! As a result, market participants are becoming increasingly cau- tious about taking new positions. Spread valuations tend to run away upwards. Providing liquidity for client requests in general and trading activities in particular increasingly has its price in the form of increased bid/offer spreads!". Assessments from the Helaba trading room Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 2 June 2022 3 of 7 Senior Unsecured In addition to the recent difficult market environment, the holi- days in the US (Memorial Day) and Great Britain (platinum ju- bilee of Queen Elizabeth II) left their mark on the primary mar- ket. The more negative senti- ment was most noticeable in the primary market for senior unsecured issues, where activ- ity has almost come to a stand- still. So far this week, there have been only two preferred issues. However, the successful subordinated transaction in EUR benchmark format of Erste Group Bank AG and the brisk issuance activity of European banks in the USD mar- ket, e.g. HSBC and Nordea, are noteworthy. Outlook: We do not expect the primary market for senior unsecured bank bonds to pick up significantly in the coming week. Once again, there are public holidays in the UK (June 2, 3) and in large parts of Europe (June 6). There is still a need for refinancing, which is mainly due to the high maturities, high regulatory requirements for bail-in capital and, last but not least, the upcoming repayment options in the ECB's targeted longer-term refinanc- ing operations (TLTRO III). However, issuers have already made extensive use of the capital market this year and can therefore adopt a rather wait-and-see approach in the current weak market environment. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,250% Berlin Aa1 /-/AAA 0,650bn 01.06.2028 ms -18 bps 23.05.2022 0,750bn ms - 18 area 1,875% Bayerische Landesboden-Kreditanstalt Aaa /-/- 0,250bn 02.06.2042 ms +13 bps 24.05.2022 0,315bn ms +14 bp (+/-2) WPIR 1,300% ICO Baa1 /A/A- 0,500bn 31.10.2026 SPGB +9 bp  24.05.2022 1,100bn SPGB +12 area 3,000% Bank Gospodarstwa Krajowego - /-/A- 0,500bn 30.05.2029 ms +155 bps 24.05.2022 0,550bn ms + 155 area 1,500% Japan Bank for International Cooperation A1 /A+/- 1,000bn 01.06.2029 ms +12 bps 25.05.2022 1,300bn ms + 12 area 1,125% KFW Aaa /AAA/AAA 1,000bn 31.03.2037 ms -8 bps 30.05.2022 1,250bn ms - 8 area 1,650% Baden-Württemberg Aaa /AA+/- 0,350bn 08.06.2032 ms -12 bps 31.05.2022 0,610bn ms - 10 area 1,500% KommuneKredit Aaa /AAA/- 0,500bn 16.05.2029 ms -5 bps 31.05.2022 0,975bn ms -3 area 2,400% Junta de Andalucía Baa2 /BBB+/BBB- 0,500bn 30.04.2032 SPGB +25 Bp  31.05.2022 0,795bn SPGB +28 area 2,000% Asian Development Bank Aaa /AAA/AAA 1,000bn 10.06.2037 ms +3 bps 01.06.2022 1,100bn ms + 3 area Sources: Bloomberg, Helaba DCM €-SSA-Benchmark-Issues weeks of 23 and 30 May 2022 “A holiday-related quiet week lies behind and ahead of us. Certainly, the recovery of the past week looks good, but caution is still required. The open discussions of some ECB Council members on possible interest rate increases, still worry market participants. Furthermore, recoveries at low turnover levels are rarely stable. Risk and duration aversion are still in vogue.” Assessments from the Helaba trading room Strong Corporate Lending growth driven by pre-funding Loans to non-financial corporations, annual growth in % Sources: Refinitv, ECB, Helaba Research & Advisory -4 -2 0 2 4 6 8 -4 -2 0 2 4 6 8 04/12 04/13 04/14 04/15 04/16 04/17 04/18 04/19 04/20 04/21 04/22 Germany Euro area Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 2 June 2022 4 of 7 Short news 6/1 Fitch Ratings: Covered bond ratings are not expected to be materially affected by the economic impact of the Ukraine war, thanks to significant uplifts above their issuers’ rating and substantial over-collateralisation (OC), Fitch Ratings says. In an adverse macroeconomic scenario, Fitch expects that covered bonds will experience a “mild to modest impact” on asset performance and “virtually no impact” on rating perfor- mance. (Source: Bloomberg) 5/31 Swedish regulator on Financial Stability: The Swedish regulator Finansinspektionen (FI) comments in its latest financial stability report that banks' credit risk costs have fallen to pre-pandemic low levels, but overall financial stability risks have increased, e.g. due to rising interest rates in real estate markets. 5/30 Russia sanctions: EU leaders reached an agreement on a sixth package of sanctions to be imposed on Russia over its ongoing invasion of Ukraine, including cutting Sberbank of Russia off from the SWIFT international finan- cial messaging system, Reuters reported, citing European Council President Charles Michel's statements on Twit- ter. 5/30: Russia / Ukraine: The Central Bank of Russia imposed several restrictions on the local subsidiaries of Italian banks UniCredit SpA and Intesa Sanpaolo SpA, including barring Italian individuals and companies with accounts at the lenders' Russian units from withdrawing funds without permission from local management and limiting the size of cash transfers for certain accounts, sources told Bloomberg News. 5/25 Financial Stability: ECB publishes bi-annual Financial Stability Review. According to the report, Euro area banks show resilience, but profitability prospects worsen as asset quality concerns resurface. 5/25 EBA Transparency exercise – timeline: The European Banking Authority (EBA) will be launching its annual 2022 EU-wide Transparency exercise in September and expects to release the information on banks’ exposures and asset quality at the beginning of December, along with the EBA Risk Assessment Report. 5/24 BoE asks banks to take climate action now or face profit hit: Banks and insurers that fail to manage climate risks as a "first-order" issue could face a 10% to 15% hit to annual profits and higher capital requirements, the Bank of England (BoE) said. As reported by Reuters, in the most severe scenario posed by the BoE, where no addi- tional measures are taken to reduce the rise in global temperatures, banks and insurers tested could face total losses of 334 bn. GBP over three decades. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,500% Société Générale A1 /A/A 1,000bn 30.05.2025 ms +60 bps 23.05.2022 1,300bn ms + 80 area 2,625% Société Générale A1 /A/A 1,000bn 30.05.2029 ms +110 bps 23.05.2022 1,300bn ms + 125 area 2,125% Credit Suisse AG (London Branch) A1 /A/A- 1,000bn 31.05.2024 ms +120 bps 23.05.2022 1,600bn ms +135 area 3m€ +123 Bp Credit Suisse AG (London Branch) A1 /A/A- 0,750bn 31.05.2024 ms +123 bps 23.05.2022 1,000bn 3m€ +138 area 1,625% DNB Bank ASA Aa2 /AA-/- 0,750bn 31.05.2026 ms +58 bps 24.05.2022 0,825bn ms + 75 area 1,625% Industrial and Commercial Bank of China Ltd. A1 /A/- 0,300bn 01.06.2025 ms +50 bps  24.05.2022 not disclosed ms + 70 area 4,375% Eurobank S.A. B1 /B+/B+ 0,500bn 09.03.2025 4,375% 31.05.2022 0,650bn 4,5% area 1,875% SBAB Bank AB A1 /A/- 0,750bn 10.12.2025 ms +53 bps  01.06.2022 1,300bn ms + 70 area Sources: Bloomberg, Helaba DCM €-Senior Preferred-Benchmark-Issues weeks of 23 and 30 May 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,375% ABN AMRO Bank NV Baa1 /BBB/A 0,750bn 01.06.2027 ms +110 bps  24.05.2022 1,000bn ms + 120 area 3,000% ABN AMRO Bank NV Baa1 /BBB/A 0,750bn 01.06.2032 ms +135 bps 24.05.2022 1,200bn ms + 150 area 2,885% Barclays PLC Baa2 /BBB/A 1,000bn 31.01.2027 ms +168 bps 25.05.2022 2,300bn ms + 190 area Sources: Bloomberg, Helaba DCM €-Senior Non-Preferred-Benchmark-Issues weeks of 23 and 30 May 2022 Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 2 June 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 91,03 0,45% 6,49% iBoxx € Cov. Germany\* 1,25 2,24 2,22 iTraxx Senior Financial 98,5 -5,98% -3,85% 10J-Yield 1,18 0,23 0,20 iBoxx € Cov. Bonds\* 7,67 2,47 3,02 iBoxx € Supranational 101,8 -1,81% -1,76% Swap 10J 1,90 0,20 0,14 iBoxx € Banks PS 91,64 -0,41% -0,59% iBoxx € Agencies 96,8 -1,07% -0,70% iBoxx € Germany 99,82 -1,9% -2,0% iBoxx Banks NPS 93,76 -0,2% -0,5% iBoxx € Sub-Sov. Germany 97,5 -1,41% -1,33% iBoxx € EU 98,21 -2,39% -2,72% iBoxx Banks Subordinated 84,40 -0,36% -0,73% iBoxx € Sub-Sovereign 95,9 -1,44% -1,42% Leisure tip for the weekend: Wäldchestag Frankfurt Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.frankfurt-tourismus.de After a two-year break, the Frankfurt City Festival, traditional since 1792, will take place again from 04.06. to 07.06.2022. Around 120 rides, food and sales stands offer entertainment for every taste. This year, the focus of the tradi- tional festival will be the open beer garden on the large fairground at Ober- forsthaus. In order to make the pleasant mixture of folk festival and cool greenery an experience for everyone, the public transport system offers an extended train and bus schedule. More information: Wäldchestag Frankfurt Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 2 June 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 0 20 40 60 80 100 120 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 | 2 June 2022 7 of 7 News from Research & Advisory  EUROPEAN BANKS: ACTIVITIES BECOMING EVER GREENER  PRIMARY MARKET UPDATE BENCHMARK BONDS: Q1 SEES RECORD ACTIVITY  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)  FOCUS ON: CREDITS - EUROPEAN BANKS: WAR IN UKRAINE CLOUDS OUTLOOK  COVERED-BOND-LAW IN SPAIN (VIDEO)  COVERED BOND LAW IN AUSTRIA (VIDEO)  COVERED-BOND-LAW IN FRANCE (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: Spreads are tightening - especially at the long end. Covered Bonds: the shorter the maturity, the better. Senior unsecured bonds: Weak primary market activity not just due to public holidays.