---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-46
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 12 May 2022 © Helaba | Research & Advisory | 12. May 2022 1 von 6 Research & Advisory Weekly Market Update Primary market environment: Interest rate and inflation trends as well as economic con- cerns continue to be the driving topics. While spreads continue to widen for both, senior unse- cured bonds and the periphery, covered bond spreads are relatively stable. SSA issuances re- cently picked up somewhat. Based on our spread trend indicator, we can see that the trends for SSAs and covered bonds, can still be described as stable. In the case of senior unsecured bonds, the repricing continues driven by the changed interest rate and risk environment. Primary market barometer Sources: Helaba Research & Advisory After the lull in issuance in the previ- ous week, the SSA segment picked up again this week. Among others, the EU successfully launched a dual tranche. Bonds from MuniFin (green), Unedic (social) and Lower Saxony also met with great investor interest. Issuers with longer maturities are in- creasingly appearing on the primary market. However, it should be noted that Nationwide's 15-year issue achieved a rather small oversubscrip- tion rate. On the other hand, shorter- dated covereds continue to enjoy strong demand. The market environment remains challenging for senior unsecured bonds. Furthermore, issuers have al- ready made extensive use of the pri- mary market at the beginning of the year and are therefore ahead of their issuance plans. Covered Bonds Senior Unsecured SSA Safe haven still sought after by investors 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 -0,04 -0,32 -0,74 -1,40 -3,46 -3,22 European Union -0,04 -0,08 -0,35 -0,25 -0,52 -1,40 Germany Covered -0,01 -0,05 -0,20 -0,07 0,06 -1,46 Covered 0,00 -0,01 -0,05 0,00 0,04 -0,48 Banks senior preferred 0,01 0,49 1,08 0,99 1,18 -2,16 Banks senior bail-in (SNP) -0,08 0,42 1,06 1,02 1,37 -2,12 Banks subordinated -0,04 0,25 0,66 0,65 1,02 -0,68 Supranational -0,03 -0,06 -0,24 -0,23 -0,34 -1,22 Agencies -0,03 -0,16 -0,45 -0,52 -1,06 -1,56 Sub-Sovereigns Germany -0,02 -0,13 -0,37 -0,73 -0,80 -2,04 Sub-Sovereigns -0,01 -0,09 -0,24 -0,43 -0,56 -1,88 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 12 May 2022 2 von 6 SSA Last week, issuers were conspicuous by their absence. This changed this week. Among others, the EU placed a dual tranche with 3- and 29-year maturities, although the latter was a tap. The volumes were EUR 6 and 3 billion respectively. Both were very suc- cessful, so that the order books were extremely high. Remarkable is currently also the development of the Bund swap spread, which recently marked an all-time high. Effects of this "trend" are noticeable in the case of Länderanleihen such as the one of the state of Lower Saxony. High demand was driven by international inves- tors being attracted by the high pick up versus German Bund. So far, the SSA segment has been stable and has not (yet) been affected by the widening of spreads seen in other areas. Looking ahead, Bund swap spreads are expected to remain elevated and existing risks may be reassessed. What will the new week bring? After the EU is before the ESM. The latter is in the starting blocks with an issue. Corresponding requests for proposals have al- ready been sent out. Covered Bonds "The stock market is not a one-way street" is an old saying. This can currently be applied to covered bonds. Apart from temporary widening of the ASW spreads on the iBoxx EUR Covered, peaking at over 8 points, little has changed since the beginning of the year. This is despite the continued high market volatil- ity and the existing uncertainties. Support continues to come from the central banks, which last week even in- creased its holdings of covered bonds by EUR 984 million, after having mainly replaced their maturities in the pre- vious two weeks. Recently, issuers have also succeeded in issuing covered bonds with longer maturities. However, it is apparent that the momentum is being lost somewhat, also on the secondary market. This is despite the fact that "real money investors" are still available as buyers if opportunities arise. Meanwhile, the short maturity segment re- mains the undisputed favorite. Green-labeled bonds, both primary and secondary, are meeting solid demand! So far this week, seven covereds have been brought to market - including Bausparkasse Schwäbisch Hall and NN Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1.500% Niedersachsen - /-/AAA 1.000bn 17.10.2029 ms -17 bps 10.05.2022 2.600bn ms - 15 area 1.750% UNEDIC Aa2 /-/AA 1.000bn 25.11.2032 FRTRs +23 Bp  10.05.2022 4.200bn FRTRs +25 area 1.500% Municipality Finance Plc Aa1 /AA+/- 0.500bn 17.05.2029 ms -11 bps  10.05.2022 1.500bn ms - 8 area 0.800% EU Aaa /AA/AAA 6.000bn 04.07.2025 ms -41 bps 11.05.2022 48.000bn ms - 38 area 0.700% EU Aaa /AA/AAA 3.000bn  06.07.2051 ms +22 bps 11.05.2022 37.000bn ms + 24 area t.b.d. Agence Francaise de Developpement - /AA/AA 1.500bn 25.05.2032 FRTR +33 Bp  12.05.2022 2.200bn FRTR +34 area Source: Bloomberg, Helaba DCM €-SSA-Benchmark-Issues week of 9 May 2022 "Widening credit spreads (index and bonds) and the widening of peripheral bonds (Italy vs. bunds around 200 bps) are increasingly raising questions about the medium-term valuation of covereds. In particular, whether it will be possible to maintain the currently quite stable trend in valuations in view of these developments. Some investors are already considering switch options". Assessments from the Helaba trading room High Bund swap spread supports demand EUR SWAP vs Govt Bond 10Y, bps Sources: 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 | 12 May 2022 3 von 6 Bank with their green debut paper - breaking the magic EUR 100 billion mark in issuance volume on Thursday. Looking ahead, it seems reasonable to consider an increasingly defensive positioning. Especially as the influenc- ing factors mentioned above make it increasingly difficult to define the right time for a trade. Short maturities will probably remain the first choice for investors, not least from a risk perspective. Senior Unsecured sk/ Primary market conditions for senior unsecured issues have further deteriorated. A major burden is the changing interest rate environment according to our perception. Furthermore, spillover effects from the Ukraine war and China's pandemic problems are difficult to assess. The asset swap spread indicated by the iBoxx EUR Banks Senior index has widened by more than 40 bps year to date. However, issuers had extensively used the friendly market environment at the beginning of the year for pre-funding transactions and can therefore afford a wait-and-see attitude for the time being. According to our expectations, no recovery is thus to be ex- pected next week either. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2.250% Nationwide Building Society - /AAA/AAA 0.500bn 16.05.2037 ms +22 bps 09.05.2022 0.650bn ms + 22 area 1.875% Nationale-Nederlanden Bank N.V. - /AAA/- 0.500bn 17.05.2032 ms +7 bps  10.05.2022 2.200bn ms + 12 area 2.000% Bausparkasse Schwäbisch Hall Aaa /-/- 0.500bn 17.05.2034 ms +6 bps 10.05.2022 0.630bn ms + 8 area 1.500% Oma Saastopankki Oyj - /AAA/- 0.350bn 18.12.2026 ms +8 bps 11.05.2022 0.600bn ms + 10 area 1.688% Luminor Bank AS Aa1 /-/- 0.500bn 14.06.2027 ms +22 bps 11.05.2022 0.600bn ms + 24 area t.b.d. EIKA Boligkreditt AS Aaa /-/- 0.500bn 19.05.2030 ms +13 bps 12.05.2022 0.650bn ms +13 area t.b.d. ING Belgium SA/NV Aaa /-/AAA 1.000bn 19.05.2029 ms +5 bps 12.05.2022 1.400bn ms + 9 area Source: Bloomberg, Helaba DCM €-Covered Bond-Benchmark-Issues week of 9 May 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication no transactions Source: Bloomberg, Helaba DCM €-Senior Preferred-Benchmark-Issues week of 9 May 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication no transactions Source: Bloomberg, Helaba DCM €-Senior Non-Preferred-Benchmark-Issues week of 9 May 2022 “Investors are searching for bid prices. Real money investors continue to increase their cash holdings and are buying short maturities and floating rate notes. ETF funds’ ongoing selling pressure is causing additional spread widening. The trading desks are currently unwilling to establish or expand further positions. The actu- ally traded bid/ask spreads are therefore significantly below the quoted spreads shown on the screens. We stand by our statement that the current yield and spread level offers good entry opportunities for courageous investors". Assessments from the Helaba trading room Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 12 May 2022 4 von 6 Short news 5/9 Property prices: Property prices in Germany rose by 8.8% in the first quarter of 2022 compared with the first quarter of 2021, with the property price index of the Association of German Pfand- brief Banks (vdp) once again reaching a new high of 190.8 points (base year 2010 = 100 points). 5/9 Russia-Ukraine war and consequences: Germany's economy should prepare for "strong headwinds" from the consequences of the Russia-Ukraine war, with banks likely to increase risk provisions, according to a speech by Commerzbank’s CEO Manfred Knof prepared ahead of the bank's May 11 annual general meeting, cited by Han- delsblatt. 5/9 Russia sanctions: The U.S. Treasury Department imposed new sanctions on Russia over its invasion of Ukraine, targeting executive board members of Sberbank of Russia, and members of Gazprombank's board of directors. 5/9 Russland-Ukraine war and consequences: Banks in the U.S. and Europe are setting aside more than USD 10 bn to cover expected losses on their operations in Russia, the Financial Times reported, citing its own cal- culations. Western banks have USD 86 bn of exposure and nearly 40,000 staff in Russia, according to the FT. \* 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 84,33 -1,35% -4,07% iBoxx € Cov. Germany\* -1,22 -0,25 -2,55 iTraxx Senior Financial 103,6 1,11% 17,18% 10J-Yield 1,00 0,02 0,23 iBoxx € Cov. Bonds\* 4,36 -0,29 -2,84 iBoxx € Supranational 102,9 -0,61% -2,50% Swap 10J 1,78 0,03 0,30 iBoxx € Banks PS 91,95 -0,25% -1,57% iBoxx € Agencies 97,5 0,01% -1,08% iBoxx € Germany 101,65 -0,2% -1,8% iBoxx Banks NPS 93,79 -0,5% -2,6% iBoxx € Sub-Sov. Germany 98,5 -0,34% -1,64% iBoxx € EU 100,05 -0,90% -3,21% iBoxx Banks Subordinated 84,49 -0,62% -2,93% iBoxx € Sub-Sovereign 96,9 -0,42% -2,20% Leisure tip for the weekend: PRINCELY PLEASURE AT WASSERBURG ANHOLT Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.wasserburg-anholt.de/index.php/de/ Wasserburg Anholt is one of the most impressive castles in Westphalia. The magnificent castle park with its maze and generous water features borders di- rectly on Anholt Castle. Nature lovers will get their money's worth in the bio- tope Wildpark Anholt Schweiz with its replica of Lake Lucerne and various ani- mal enclosures. Ambitious sportsmen can also enjoy the magnificent park landscape on the 18 holes of the Wasserburg Golf Club. More information: Wasserburg Anholt Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 12 May 2022 5 von 6 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 Mai. 21 Jul. 21 Sep. 21 Nov. 21 Jan. 22 Mrz. 22 Mai. 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 Mai.21 Jul.21 Sep.21 Nov.21 Jan.22 Mrz.22 Mai.22 EUR Covered Covered Germany 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 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 Mai.21 Jul.21 Sep.21 Nov.21 Jan.22 Mrz.22 Mai.22 Banks Subordinated Banks Senior Bail-in Banks Senior Preferred Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 12 May 2022 6 von 6 News from Research & Advisory  WOCHENAUSBLICK (ERSCHEINT AM FREITAG ZWISCHEN 12 - 14 UHR)  EUROPÄISCHE BANKANLEIHEN: AKTIVITÄTEN WERDEN IMMER GRÜNER  FINANZPLATZ: BANKBESCHÄFTIGUNG IN FRANKFURT NÄHERT SICH WENDEPUNKT  MÄRKTE UND TRENDS APRIL 2022 (VIDEO)  MÄRKTE UND TRENDS APRIL 2022 (PUBLIKATION)  IM FOKUS: BUNDESLÄNDER "REGIONALES WACHSTUM ERHOLT SICH NUR LANGSAM  IM FOKUS: LÄNDERRATING UND NACHHALTIGKEIT  IM FOKUS: POLEN: KONJUNKTUR IM SCHATTEN DES KRIEGS  IM FOKUS: ITALIEN: CHANCEN MÜSSEN GENUTZT WERDEN  IM FOKUS: EUROPÄISCHE BANKEN: UKRAINE-KRISE BELASTET AUSBLICK VOR ALLEM INDIREKT  COVERED-BOND-GESETZ IN ÖSTERREICH (VIDEO)  COVERED-BOND-GESETZ IN FRANKREICH UND DEUTSCHLAND (VIDEO)  COVERED-BOND-GESETZE: UMSETZUNG DER EU-REGELUNGEN (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: High Bund swap spread supports demand. Covered Bonds: Investors‘ willingness to buy remains stable. Senior: Primary market environment remains subdued. Senior Unsecured: In risk-off mode.