---
title: "SSA and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssa-and-financials-weekly-market-update-48
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 28 April 2022 © Helaba | Research & Advisory | 28 April 2022 1 von 7 Research & Advisory Weekly Market Update Primary market environment: While the primary market environment is excellent for cov- ered bonds as "safe haven asset", senior unsecured securities are under selling pressure. A number of uncertainty factors such as the Ukraine conflict, inflation, and the ECB’s action plan, are weighing on the market. The SSA segment also performed very well recently. On a one-week view, the largest relative movements were observed at senior financials. On the basis of standard- ized ASW levels, this can be clearly seen from our spread trend indicator. In SSAs, the trend towards spread tight- ening continues, most recently also in the short-term time frame. This is particularly true for agencies and supras, while sub-sovereigns are lagging somewhat behind. Primary market barometer Source: Helaba Research & Advisory High issuance activity after the Easter and vacation days meet a con- ducive environment in the primary market. For example, 7-year Län- deranleihe #62 has fared very well. The environment for covered bonds is excellent. Even paper with longer maturities - the focus has been on the 4-5 year range most recently - is again meeting with good demand. It is also worth noting that "lost inves- tors" are returning to the market. The primary market for senior unse- cured paper is currently character- ized by high volatility. Added to this is the blackout period due to the quarterly reports. Nevertheless, there are frequently some transaction win- dows, albeit at significantly higher spreads. Covered Bonds Senior Unsecured SSA Russia-Ukraine conflict with major impact on spread movements Spread trend indicator\*, ASW spread 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 -0,11 -0,33 -0,61 -1,52 -2,68 -2,48 European Union -0,01 -0,07 -0,31 -0,15 -0,03 -1,24 Germany Covered 0,01 -0,05 -0,05 0,24 0,16 -1,71 Covered 0,00 -0,01 -0,02 0,07 0,06 -0,62 Banks senior preferred 0,10 0,46 0,52 0,75 0,73 -2,38 Banks senior bail-in (SNP) 0,10 0,48 0,83 0,89 1,00 -1,98 Banks subordinated 0,08 0,30 0,40 0,55 0,72 -0,89 Supranational -0,01 -0,03 -0,13 -0,06 -0,05 -1,30 Agencies -0,01 -0,05 -0,26 -0,43 -0,68 -1,33 Sub-Sovereigns Germany -0,01 0,04 -0,35 -0,73 -0,57 -1,97 Sub-Sovereigns 0,00 0,05 -0,15 -0,32 -0,27 -1,94 strong middle weak unchanged weak middle strong spread widening spread tightening Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 28 April 2022 2 von 7 SSA The SSA segment performed very well after the previous week's poor performance. The overall good mood can be seen in the new issues. The 7-year Länderanleihe #62 benchmark paper was significantly oversubscribed and the MS-14 spread was even narrowed by another basis point. The placement of the Country Community Bond was the most successful issue in this format since 2015, with 74% of the shares going to bank treasuries. The foreign share was 45% in total. Since Monday, securities with a volume of EUR 16.6 billion have been brought to the market to date. In principle, the more liquid the securities are, the better. Today, KfW was successfully active with a 10-year bond and was able to point to a Bid to cover ratio of 9.7. Looking ahead, little is expected to change in the current favorable environment for the time being. Sources: Bloomberg, Helaba Research & Advisory Covered Bonds In an environment characterized by uncertainty, covered bonds and their security are in de- mand. It is also worth noting that longer maturities are again meeting with demand. Another supportive factor is that the trading portfolios of market markers do not appear to be particularly high. How- ever, it remains to be seen to what extent one can speak of a general revaluation in view of the current devel- opment. In any case, it is positive that "lost investors" are returning to the market. Insurers, for example, who had been pushed out by years of low yields, have recently returned to the buying side. The sustainable segment was also served in this busy week: DKB issued its third social Pfandbrief today. In 2018, it issued its first social paper, followed by a so-called blue social Pfandbrief in 2019. Under the social bond pro- gram, DKB can issue so-called social bonds, which are used to refinance loans with added social value. The cus- tomer groups concerned are social housing, public utilities, health & care, education & research and inclusion. To- day's social bond is aimed at financing municipal enterprises and social housing in Berlin. The issuance volume of EUR 500 million was matched by books of > EUR 2.5 billion - this despite the fact that the bond has a recently little estimated maturity of 10 years. Thus, it can be stated that the market for covered bonds remains very constructive. In the coming week, the issu- ance window will be somewhat smaller. In the UK, there is a holiday on Monday, and the Fed meeting is on the agenda on Wednesday, which usually ensures a certain restraint. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,750% International Development Ass Aaa /AAA/- 2,000bn 05.05.2037 ms +7 bps  26.04.2022 2,700bn ms + 8 area 1,850% Ontario Teachers' Finance Trus Aa1 /AA+/- 1,250bn 03.05.2032 ms +32 bps 26.04.2022 2,700bn ms + 33 area 1,500% CADES Aa2 /AA/- 5,000bn 25.05.2032 FRTR +25 Bp  26.04.2022 25,000bn FRTR +27 area 1,625% Communauté française de Belg A2 /-/- 0,600bn 03.05.2032 BGBs +32 Bp  26.04.2022 0,825bn BGBs +34 area 0,500% EIB Aaa /AAA/AAA 0,250bn  13.11.2037 ms -8 bps  26.04.2022 not disclosed ms -8 Bp 1,250% Länder 62 - /-/AAA 1,000bn 04.05.2029 ms -14 bps 27.04.2022 2,600bn ms -13 area 1,500% SFIL Aa3 /AA/- 1,000bn 05.03.2032 FRTRs +26 Bp 27.04.2022 2,350bn FRTRs +29 area t.b.d. KFW Aaa /AAA/AAA 3,000bn 07.06.2032 ms -21 bps  28.04.2022 29,000bn ms -19 area €-SSA-Benchmark-Issues week 25th April 2022 „There are increasing signs of spread stabilisation in the secondary market. In view of the continuing high uncertainties on the money market and from the geopolitical side, covered bonds radiate a certain security. Investors are tentatively becoming more courageous and are showing buying interest in paper with 2030 to 2034 maturities, predominantly from the euro area, but also of Scandinavian/Canadian and Australian origin. “ Assessments from the Helaba trading room Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 28 April 2022 3 von 7 Sources: Bloomberg, Helaba Research & Advisory Senior Unsecured The disturbance on the capital markets is also reflected in the primary market for senior unsecured bank bonds. After issues had been postponed in an unfriendly market environment, a transaction window recently opened up again, albeit at higher costs. The blackout period due to the current quarterly reports is causing less activity. Recent new issues have widened by around 5 to 10 basis points in the secondary market. Some transactions were al- ready struggling during placement and spreads could not be reduced at all (DEVOBA) or only slightly (BFCM) compared to the first price indications. For the coming week, we expect further difficult issu- ance conditions. Issuers are likely to remain rather wait-and-see ahead of the Fed's interest rate decision. In addition, news on the geopolitical and economic environment is likely to remain a major driver. At least issuers are showing solid quarterly reports, but concerns about rising credit risks due to the geopolitical situation and higher costs in the inflationary environment are increasing. Sources: Bloomberg, Helaba Research & Advisory Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 1,500% Oberbank AG - /AAA/- 0,250bn 03.05.2029 ms +10 bps 26.04.2022 0,800bn ms + 15 area 1,375% Societe Generale SFH Aaa /-/AAA 1,750bn 05.05.2028 ms +4 bps 26.04.2022 4,750bn ms + 9 area 1,750% Societe Generale SFH Aaa /-/AAA 1,250bn 05.05.2034 ms +13 bps 26.04.2022 2,800bn ms + 17 area 1,250% RLB Tirol AG Aaa /-/- 0,300bn 05.05.2027 ms +9 bps 27.04.2022 0,725bn ms +13 area 1,375% Aareal Bank AG Aaa /-/- 0,750bn 01.02.2029 ms +3 bps 27.04.2022 1,250bn ms +7 area t.b.d. Deutsche Kreditbank AG Aaa /-/- 0,500bn 05.05.2032 ms +3 bps  28.04.2022 2,500bn ms +8 area €-Covered Bond-Benchmark-Issues week 25th April 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3m€ +10 Banco Santander A2 /A+/A- 2,000bn 05.05.2024 ms +43 bps 28.04.2022 2,600bn 3m€ +55 area €-Senior Preferred-Benchmark-Issues week 25th April 2022 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,375% de Volksbank N.V. Baa2 /-/A- 0,500bn 04.05.2027 ms +120 bps  26.04.2022 0,650bn ms + 120 area 2,625% BFCM A3 /A-/A+ 1,000bn 06.11.2029 ms +120 bps 26.04.2022 1,400bn ms +130 €-Senior Non-Preferred-Benchmark-Issues week 25th April 2022 Risk costs have recently risen again significantly ASW-Spreads in bp Sources: Refinitiv, Helaba Research & Advisory 0 50 100 150 200 0 50 100 150 200 Subordinated Senior Non-preferred Senior Preferred Covered Bonds “Traders currently have large stocks and therefore little further appetite for risk. Overall, market participants are mostly sellers and are acting very nervously. Investors are disillusioned and the search for the bid is pre- dominant in real money and ETF funds, which are seeing significant outflows. Only short maturities, a few Landesbank bonds and bank FRNs are seeing some buying interest. Many bonds are currently trading at in- teresting spread levels and offer corresponding yields for investors who have some courage." Assessments from the Helaba trading room Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 28 April 2022 4 von 7 Short news 21- 28 April - Reporting season: According to the quarterly reports published so far, the opening quarter was quite solid (e.g. Santander, SEB, Deutsche Bank). However, the focus is on the increased geopolitical and growth risks, which have not yet materialized. Despite continued stable low problem loan ratios, many banks are building manual overlays to cover any resulting loan defaults, while continuing to release Corona- related provisions. (Upcoming results: 29 April: BBVA, Erste Group Bank, 3 May: BNP Paribas, 4 May: Unicredit Bank, RBI, 5 May: Unicredit Group, Société Générale, Crédit Agricole, 6 May: Intesa, ING Groep, 11 May: Aareal Bank, Deutsche Pfandbriefbank, 12 May: Commerzbank, 18 May: ABN AMRO) 28 April ECB/bond purchases: Via Bloomberg, we learn that ECB President Lagarde sees a possible end to ECB bond purchases in July and has commented on interest rate hikes:. The third quarter would then be the time to "look at interest rates and an increase in those rates." The decision would be made in the ECB Governing Council on the basis of the data that should be available by the next Council meeting in June. 27 April Real estate markets: Real estate markets: According to the EMF's quarterly report, European real estate markets have reached a record high in view of the changing economic environment. 25 April Banking supervision on Russia-Ukraine situation: EBA Director Gyntelberg considers the consequences of the sanctions and possible counter-sanctions for the financial system as a whole to be manageable. A regular stress test should be pursued in 2023 again. 22 April EU-Green Bond Standard: After the Council of the European Union agreed on a common position on the proposal for a regulation on EU Green Bonds on Wednesday, April 13, 2022, ahead of the upcoming trilogue negotia- tions with the European Parliament and the European Commission, the vote in the ECON Committee, which is leading the dossier, now appears to be scheduled for April 28 (it was originally scheduled for March 31), according to its web- site. 22 April Covered Bonds/NN Bank: On April 8, 2022, the bondholder meeting approved the conversion of NN Bank's Conditional Pass-Through (CPT) Covered Bonds to Soft Bullet Covered Bonds and their transfer from the CPT program to the Soft Bullet Covered Bond program. On April 22, S&P affirmed the AAA rating and a stable outlook for the soft bullet covered bond program and for all 11 covered bonds now outstanding. S&P discontinued the 'AAA' rating for the CPT program. 22 April EBA report on bail in capital: The European Banking Authority (EBA) published today its annual report on minimum requirements for own funds and eligible liabilities (MREL). The report shows progress in closing MREL shortfalls, as of December 2020, which was mostly driven by largest institutions while smaller institutions lagged somewhat behind. 21 April ECB on financial stability: At theIWF Spring Meetings, Christine Lagarde comments, among other things, on developments in the euro area banking sector. She says that financial stress has been limited so far, as the financial sector's direct exposure to Russia and Ukraine is low. The war, however, poses a number of challenges. 21 April Russia exposures: France's Société Générale could sell its Russian subsidiary Rosbank to Russian investment group Interros, according to Bloomberg. The price quoted ranges between EUR 450 million and EUR 680 million. 20 April ECB on Russia exposures: The eurozone's big banks would be able to cope well with a complete write- down of their Russia exposures, ECB supervisory chairman Andrea Enria said. For the nine most exposed banks, there would be a burden on their common equity tier 1 ratio of up to 90 bps on average, with a maximum decline of 200 bps, he said. Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 28 April 2022 5 von 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 Banken 85,28 -5,95% -8,31% iBoxx € Cov. Germany\* 0,12 -0,80 0,16 iTraxx Senior Financial 97,9 11,87% 20,18% 10J-Rendite 0,81 -0,05 0,15 iBoxx € Cov. Bonds\* 5,70 -0,84 -0,12 iBoxx € Supranational 104,9 0,04% -2,22% Swap 10J 1,57 0,01 0,30 iBoxx € Banks PS 92,80 -0,41% -1,04% iBoxx € Agencies 98,4 0,06% -0,92% iBoxx € Germany 103,14 0,3% -1,4% iBoxx Banks NPS 95,14 -0,7% -2,1% iBoxx € Sub- Sov. Germany 99,8 0,11% -1,53% iBoxx € EU 102,51 0,15% -2,65% iBoxx Banks Subordinated 85,74 -1,23% -2,21% iBoxx € Sub- Sovereign 98,4 -0,05% -1,99% Leisure tip for the weekend: CLIMBING IN THE WATER Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: https://www.ffh.de/freizeit/100-dinge.html Climbing is only possible with a harness, rope and carabiner. Actually. Be- cause if the climbing wall is in a swimming pool, a bathing suit will do. At a climbing wall made of Plexiglas at the Aqua Mar swimming pool in Mar- burg, you can climb up to six meters out of the water. Without a harness or rope. You can test the most adventurous holds, because even slipping down is fun here. You'll just fall into the water. More information: Sport- und Freizeitbad AquaMar | Stadt Marburg Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 28 April 2022 6 von 7 Chartbook SSA, Covered Bonds, Senior Unsecured SSA: Issuances SSA: Spread development EUR benchmark issue volume cumulative by weeks, Mrd. 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 Apr. 21 Jun. 21 Aug. 21 Okt. 21 Dez. 21 Feb. 22 Apr. 22 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Covered Bonds: Issuances Covered Bonds: Spread development EUR benchmark issue volume cumulative by weeks, Mrd. 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 Apr.21 Jun.21 Aug.21 Okt.21 Dez.21 Feb.22 Apr.22 EUR Covered Covered Germany Senior Unsecured: Issuances Senior Unsecured: Spread development EUR benchmark issue volume cumulative by weeks, Mrd. 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 2020 2021 2022 0 50 100 150 200 0 50 100 150 200 Apr.21 Jun.21 Aug.21 Okt.21 Dez.21 Feb.22 Apr.22 Banks Subordinated Banks Senior Bail-in Banks Senior Preferred Focus on: SSA & Financials – Weekly Market Update © Helaba | Research & Advisory | 28 April 2022 7 von 7 News from Research & Advisory  PRIMARY MARKET UPDATE BENCHMARK BONDS: Q1 SEES RECORD ACTIVITY  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: Most successful placement of a German “Gemeinschaftliche Länderanleihe” since 2015. Covered bonds sought as a "save haven asset" - "lost investors" return. Primary market for senior unsecured bonds in difficult waters.