---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-47
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 5 May 2022 © Helaba | Research & Advisory | 5. May 2022 1 von 6 Research & Advisory Weekly Market Update Primary market environment: This week, the central bank decisions attracted a lot of at- tention. The last time the Fed raised interest rates by 50 bps was in 2000. In addition, the famil- iar uncertainty factors set the tone. Demand for covered bonds remains strong, while spreads on senior unsecured bonds continue to widen. Overall, market sentiment in the asset classes we cover has improved recently, as the changes in our spread trend indicator based on standardised ASW levels show compared to the previous week. For senior bank bonds, the wid- ening at least no longer falls into the range described as strong. Primary market barometer Sources: Helaba Research & Advisory The SSA segment has been quieter recently, although spreads have tightened somewhat. One reason for this development is that covered bonds currently offer a relatively higher value for investors compared to European SSAs. Covered bonds are currently enjoying great popularity. This applies equally to investors and issuers. Spreads have recently tightened somewhat, while yields are tending to rise. Ac- cordingly, longer maturities are also in demand again. The primary market for senior unse- cured paper could pick up slightly next week as the quarterly reporting season draws to a close. Overall, in- vestors remain cautious, and transac- tions are only taking place at signifi- cantly higher spreads. Covered Bonds Senior Unsecured SSA A colourful potpourri of uncertainty factors continues to exist, yet spreads on a weekly basis can mostly pull in 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 0,02 -0,07 -0,55 -1,26 -2,82 -2,71 European Union -0,03 -0,08 -0,34 -0,35 -0,20 -1,34 Germany Covered -0,08 -0,02 -0,10 0,22 0,08 -1,58 Covered -0,02 0,00 -0,03 0,06 0,05 -0,57 Banks senior preferred 0,07 0,02 0,65 0,51 0,77 -2,44 Banks senior bail-in (SNP) 0,07 0,02 0,69 0,68 1,05 -2,17 Banks subordinated 0,04 0,06 0,47 0,44 0,79 -0,80 Supranational -0,03 -0,05 -0,18 -0,21 -0,15 -1,23 Agencies -0,01 -0,08 -0,43 -0,49 -0,82 -1,44 Sub-Sovereigns Germany -0,01 -0,10 -0,36 -0,74 -0,72 -1,93 Sub-Sovereigns 0,00 -0,06 -0,23 -0,40 -0,41 -1,82 strong middle weak unchanged weak middle strong spread widening spread tightening Im Fokus: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 5. May 2022 2 von 6 SSA In the past few days, issuing activity in the SSA segment came to a complete standstill. This was partly due to the fact that covered bonds currently represent a higher relative value for investors. However, the FOMC meeting and the publication of the non-farm payrolls undoubtedly also caused restraint. In this respect, it can be assumed that activity will increase again in the coming week. The EU is in the starting blocks with an issue - very likely in the coming week - and corresponding request for proposals (RFPs) have already been sent out. The current trend towards spread tightening should also have a positive influence. Sources: Bloomberg, Helaba Research & Advisory Covered Bonds In an environment characterised by uncertainty, the shorter end continues to be the "hot spot" in view of increased volatilities and balanced risk/reward profiles. For example, absolute returns of just under 1% can be achieved in 2-year maturities. This means that the premiums in the core countries remain high compared to European government bonds. Overall, market participants should not become too carefree in view of the ECB's monetary policy reassessment. Recently, ECB Director Schnabel stressed that the ECB must act on infla- tion and not just talk. She considers the termination of bond purchases at the end of June and an interest rate hike in July is possible. In addition, the geopolitical, economic and inflationary risks must be sufficiently appreciated. On the one hand, there is a risk of a change of direction in spreads and, on the other, market partici- pants could start to realise their outperformance. So far, however, demand in the primary market has been lurid. The new issues placed this week included everything an investor's heart could desire. Maturities of 3-10 years, a debut green paper from La Banque Postale Home Loan and a debut social bond from Berlin Hyp. The offerings of Austrian issuers also attracted great demand. Raiffeisen Landesbank Vorarlberg, for example, had a full order book of almost EUR 2 billion for its EUR 300 million sub-benchmark covered. Also worth noting is the current strong tightening for this segment after the initial price talk (IPT) of up to five basis points. In the coming week, issuers will continue to take advantage of the opportunities currently available. Accordingly, issuing activity is ex- pected to continue. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication €-SSA-Benchmark-Issues week of 2 May 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,750% Berlin Hyp AG Aaa /-/- 0,750bn 10.05.2032 ms +2 bps  03.05.2022 2,800bn ms + 6 area 1,750% SCBC Aaa /-/- 1,250bn 10.02.2032 ms +11 bps 03.05.2022 2,100bn ms + 15 area 1,625% Hypo Vorarlberg Bank AG Aaa /-/- 0,500bn 11.05.2028 ms +8 bps 04.05.2022 1,645bn ms + 13 area 1,750% SpareBank 1 Boligkreditt Aaa /-/- 1,000bn 11.05.2032 ms +11 bps 04.05.2022 1,300bn ms + 14 area 0,000% La Banque Postale - /AAA/- 0,750bn 12.05.2032 ms +4 bps 04.05.2022 3,500bn ms + 9 area 1,750% Arkéa Home Loans SFH Aaa /-/AAA 0,750bn 16.05.2032 ms +7 bps 05.05.2022 1,100bn ms + 12 area 1,625% HYPO NOE Aa1 /-/- 0,500bn 11.05.2029 ms +9 bps 05.05.2022 1,000bn ms + 13 area Source: Bloomberg, Helaba DCM €-Covered Bond-Benchmark-Issues week of 2 May 2022 "In recent trading days, stable valuations have been recorded in the secondary market for covereds (basis: swap spreads). Even if the liquidity situation is not really encouraging for most maturities, we are still seeing decent turnover. In view of the continuing uncertainties on the overall market, this is definitely an encourag- ing signal. The primary markets are also doing their part. NIP's are respectable and new issues with current coupons are generating interest (e.g. 1.75%s on 10Y)." Assessments from the Helaba trading room Im Fokus: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 5. May 2022 3 von 6 Senior Unsecured sk/ In the case of senior unsecured bonds, the week was characterized by a wait-and-see attitude on the part of market partici- pants in view of the Fed's interest rate decision on Thursday. Furthermore, the blackout period during the quarterly reporting season caused a pause on the primary market. The latter is slowly coming to an end, in the coming week issuers could thus show up on the market again sporadically. A very solid start was made yesterday by SEB, which issued a senior pre- ferred bond in EUR benchmark format with a 4.5-year maturity and was able to tighten the spread by 18 bps to 42 bps compared to the first indication. The quarterly reports of the banks could actually give cause for optimism - the institutions showed very solid results for the most part, and loan loss provision expenses were in some cases even lower than expected. Furthermore, the turnaround in interest rates is fuelling hopes of a return to rising interest margins, especially for customer deposits. However, news on the geopolitical and economic environment remained dominant, and concerns about rising credit risks and lower new business volumes in the coming quarters are weighing on the market environment. New Helaba report on ESG in banks, with current market trends and a concise regulatory overview: "European Bank Bonds: Activities are getting greener" Sources: Bloomberg, Helaba Research & Advisory Sources: Bloomberg, Helaba Research & Advisory Short news 4/29-5/5. Banks' quarterly reports: The banks are mostly confident. So far, they have posted very solid results for the first quarter of 2022. Credit quality remains very stable, which is even a positive surprise. However, the outlook is burdened by geopolitical and growth risks. Nevertheless, the industry is well po- sitioned and enters this uncertain period with strong equity and liquidity ratios. Another focus of the reporting season has been on the interest rate turnaround, which is expected to support earnings. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,750% SEB Aa3 /A+/AA 1,000bn 11.11.2026 ms +42 bps 04.05.2022 1,350bn ms + 60 area €-Senior Preferred-Benchmark-Issues week of 2 May 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,103% Morgan Stanley A1 /BBB+/A 1,500bn 08.05.2026 ms +88 bps 05.05.2022 2,750bn ms + 110 area 2,950% Morgan Stanley A1 /BBB+/A 1,500bn 07.05.2032 ms +123 bps 05.05.2022 2,600bn ms + 145 area Source: Bloomberg, Helaba DCM €-Senior Non-Preferred-Benchmark-Issues week of 2 May 2022 Banks: Rising deposit margins in sight % Sources: Refinitiv, Helaba Research & Advisory -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 -0.1 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 04/12 04/14 04/16 04/18 04/20 04/22 Interest on deposits, private households, German banks 12M EURIBOR “Compared to last Wednesday, benchmarks have widened in general. Scandinavian preferred securities got off lightly with an average of up to +3 bps. This contrasts with the changes in French, Italian and Spanish non- preferred bonds, which widened on average 10 to 20 bps - on an individual security basis even up to 30 bps. So the risk-off mode continues. When an offer is sought, the short end is in demand." Assessments from the Helaba trading room Im Fokus: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 5. May 2022 4 von 6 5/3 Russia sanctions: New EU sanctions are set to target Russian oil and more banks. Reuters reports that the latest round of sanctions would also affect Sberbank, Russia's largest credit institution, which would have to join the ranks of banks already excluded from the SWIFT messaging system. 5/3 Credit quality: Three and a half weeks after KfW announced new billion-euro aid for companies, the program is taking shape: In order to provide companies affected by the Ukraine war or sanctions with favorable credit, the state-owned development bank is setting up new financing programs, as the banking group announced on Tues- day together with the Federal Ministries of Finance and Economic Affairs and Climate Protection. 5/3 Banking union: According to the Börsenzeitung, the further development of the banking union remains con- troversial among the euro states. According to the report, a new draft for a work plan by Eurogroup head Pa-schal Donohoe, which is to run for several years, did not meet with approval during a video conference on Tuesday. 5/3 Bafin on the consequences of the Ukraine war: According to Reuters, the financial supervisory authority Bafin warns of the consequences of the Ukraine war for the banking industry and sees an increased risk of cyberattacks on German financial companies. Although the financial system is stable and the direct effects of the war and the sanctions against Russia and Belarus can be absorbed as of now, the second- and third-round effects, which are difficult to assess, could become problematic. 5/2 ESG risks and capital: The European Banking Authority (EBA) published a discussion paper on the considera- tion of environmental risks within the capital requirements for credit institutions and investment firms. The subse- quent consultation runs until 2.8.2022. 4/29 Capital requirements: The European Banking Authority (EBA) published its recommendations on simplifying and further harmonizing the macroprudential framework. Among other things, it advocates a return to stricter re- quirements for regulatory capital buffers, which had been relaxed due to the Corona crisis. 4/29 Lending: According to ECB data, the year-on-year growth rate for loans to companies weakened slightly from 4.5% in February 2022 to 4.2% in March 2022. Due to increasing concerns about an economic slowdown, credit growth is under particular scrutiny. 4/28 Covered Bonds/Soft Bullet: The shift in covered bond markets from predominantly hard maturities to mostly 12-month extendible maturities ("soft-bullet") is improving payment continuity for many Fitch-rated programs, the agency said in its report. As more European countries adopt the extension feature as part of their implementa- tion of the 180-day liquidity rule of the covered bond directive, this trend will continue. \* 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 85,48 0,23% -1,57% iBoxx € Cov. Germany\* -0,97 -1,09 -1,43 iTraxx Senior Financial 102,4 4,59% 18,33% 10J-Yield 0,98 0,17 0,33 iBoxx € Cov. Bonds\* 4,65 -1,05 -1,71 iBoxx € Supranational 103,6 -1,23% -3,02% Swap 10J 1,76 0,19 0,43 iBoxx € Banks PS 92,18 -0,67% -1,72% iBoxx € Agencies 97,5 -0,92% -1,61% iBoxx € Germany 101,87 -1,2% -2,5% iBoxx Banks NPS 94,27 -0,9% -2,7% iBoxx € Sub- Sov. Germany 98,8 -0,97% -2,17% iBoxx € EU 100,96 -1,51% -3,68% iBoxx Banks Subordinated 85,02 -0,84% -2,92% iBoxx € Sub- Sovereign 97,3 -1,16% -2,71% Leisure tip for the weekend: ANIMAL ADVENTURE HIKE Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.erlebniswanderungen-odenwald.de "She-e-e-e-p, Donkey & More" is the motto for this weekend. Families or small groups can explore nature in the Odenwald together with a long-eared four- legged friend of their choice. In addition to the donkeys, sheep and herding dogs also look forward to their extensive petting sessions. From children's birthday parties to yoga with don- keys, there is something for everyone here. On request, sufficient catering is also provided. More information: Adventure Hikes Odenwald Im Fokus: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 5. 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 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 -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 Bonds: 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 Unsecured: 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 Im Fokus: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 5. 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: No new issue this week - but improvement in sight. Covered Bonds: The shorter end represents the hot spot. Senior: Primary market environment remains subdued.