CUSIP Global Services Projects Decline in U.S. Corporate and Muni Bond Issuance
Possible Turning Point in International Markets
NEW YORK, Oct. 10, 2013 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for September 2013. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests declining volume in U.S. corporate and municipal bond issuance over the next 30-90 days. Meanwhile, international markets have shown signs of a turning point, with requests for international identifiers growing sharply in September.
CUSIP requests for new U.S. corporate equity and debt issues posted a 2.2% monthly decline in September, with 1,635 new CUSIP IDs requested over the course of the month. Across all categories of domestic CUSIP volume – corporate debt, equity and CDs – monthly CUSIP request volume declined by 1.1% in September, with a total of 3,587 new requests for the month. This was fourth consecutive monthly decline in domestic CUSIP request volume. On a year-over-year basis, domestic CUSIP volume is still up 4.1%.
Municipal CUSIP requests also declined in September with 827 new ID requests for the month, down 15.2% from August. This was the lowest monthly volume of municipal ID requests since February 2011 and the third consecutive month in which municipal ID requests failed to top the 1,000 mark. On a year-over-year basis, request volume for new municipal bond identifiers is down 17.9% through September. On a regional basis, New York State, with 154 orders, represented the most frequent location of municipal CUSIP requests last month.
Internationally, debt and equity CUSIP International Numbers (CINS) requests showed early signs of a turning point. After several months of volatility, international equity CUSIP requests jumped to 311, marking the best showing for identifier activity in this asset class so far this year. International debt CINS requests also increased, brining the asset class to one of the strongest advances of the year, with a 31% year-over-year increase.
"In the U.S., uncertainty around the future of interest rates and the ongoing drama unfolding in Washington is clearly starting to have an effect on new corporate and muni debt issuance," said Richard Peterson, Director, Global Markets Intelligence, S&P Capital IQ. "However, we have been seeing early signs that the international markets may be starting to come out of hibernation as the economic situation gradually begins to improve."
To view a copy of the full CUSIP Issuance Trends report, please click here.
To view a video commentary of this month's CUSIP Issuance Trends with Richard Peterson, please click here.
Following is a breakdown of new CUSIP identifier requests by asset class year-to-date through September 2013:
| Asset Class |
2013 ytd |
2012 ytd |
YOY Change |
| Int'l Debt1 |
2,284 |
1,947 |
30.9% |
| Int'l Equity2 |
2,284 |
1,974 |
17.3% |
| CDs > 1 yr Maturity |
6,489 |
5,609 |
15.7% |
| Long Term Note s |
504 |
445 |
13.3% |
| US Corporates |
16,483 |
15,827 |
4.1% |
| Private Placement |
2,202 |
2,171 |
1.4% |
| Short Term Notes |
1,075 |
1,169 |
-8.0% |
| CDs < 1 yr Maturity |
2,588 |
2,886 |
-10.3% |
| Municipals |
10,387 |
12,646 |
-17.9% |
The CUSIP Global Services trends report is issued to the marketplace on a monthly basis. For more information, please visit www.cusip.com.
About CUSIP Global Services
For 40 years CUSIP Global Services has provided a unique common language for identifying financial instruments across institutions, exchanges and nations, enabling financial services firms to benefit from improved operating efficiencies and substantially reduced administrative costs. CUSIP Global Services is operated by the CUSIP Service Bureau (CSB). CSB is managed on behalf of the American Bankers Association by S&P Capital IQ. For more information, visit www.cusip.com.
About The American Bankers Association
The American Bankers Association represents banks of all sizes and charters and is the voice for the nation's $13 trillion banking industry and its 2 million employees. Learn more at www.aba.com.
1 "International" Debt refers to market requests for CUSIP International Numbers ("CINS") for non-U.S. debt offerings
2 "International" Equity refers to market requests for CUSIP International Numbers ("CINS") for non-U.S. equity offerings
SOURCE CUSIP Global Services
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