CUSIP ID Request Volume Projects Possible Slowdown in U.S. and International Corporate Securities Issuance
Municipal Bond Issuance Indicator Showing Improvement
NEW YORK, Sept. 15, 2014 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for August 2014. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests a possible hiccup in new global corporate securities issuance and increases in municipal bond issuance over the next several weeks.
Total CUSIP requests for new U.S. and Canadian corporate equity and debt issues posted a 5.9% monthly decline in August versus July, with a total of 2,027 new identifiers requested over the course of the month. On a year-over-year basis, corporate CUSIP request volume for August was up 2.3% versus the same period in 2013.
Municipal CUSIP volume increased slightly in August after experiencing a decline in July. A total of 1,375 municipal bond IDs were requested in August, up 1.7% from July totals. On a year-over-year basis, municipal identifier demand is down 14.3% through August of 2014.
International debt and equity CUSIP International Numbers (CINS) requests saw declines last month. Total requests for new international equity CINS declined 34.1% while international debt CINS requests decreased 34.8% from July to August. On a year-over-year basis, international equity requests are up 65% and international debt CUSIP requests are up 25% in 2014.
"One interesting trend we've been watching unfold over the last several months has been the strong rebound in municipal bond activity following a slow start to the year," said Gerard Faulkner, Director of Operations for CUISIP Global Services. "The trend is attributable to continued strength in partial refunding issues, commercial paper, short-term notes, derivatives (tender option bonds) and secondarily insured issues among municipal issuers."
"Though we've seen some noteworthy declines in requests for new corporate bond issues in the US and international markets in August, it could be attributable to a seasonal blip," said Richard Peterson, Director, Global Markets Intelligence, S&P Capital IQ. "However, with major monetary policy decisions looming at the Fed and European Central Bank, we will have to watch the CUSIP indicator closely over the next several months for signs of a changing tide in new capital creation."
To view a copy of the full CUSIP Issuance Trends report, please click here.
Following is a breakdown of new CUSIP identifier requests by asset class year-to-date through August 2014:
| Asset Class |
2014 ytd |
2013 ytd |
YOY Change |
| International Equity1 |
3,255 |
1,973 |
65.0% |
| International Debt2 |
1,801 |
1,440 |
25.1% |
| CDs < 1 yr Maturity |
2,415 |
2,266 |
6.6% |
| Short Term Notes |
963 |
939 |
2.6% |
| U.S. & Canada Corporates3 |
16,961 |
16,582 |
2.3% |
| Private Placement Notes |
1,905 |
1,870 |
1.9% |
| CDs > 1 yr Maturity |
5,611 |
5,704 |
-1.6% |
| Long Term Notes |
439 |
463 |
-5.2% |
| Municipal Bonds |
8,104 |
9,460 |
-14.3% |
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
The financial services industry relies on our unrivaled experience in uniquely identifying instruments and entities to support efficient global capital markets. Our extensive focus on standardization over the past 45 years has helped us earn the reputation for being the trusted originator of quality identifiers and descriptive data, ensuring that essential front- and back-office functions run smoothly. CGS is managed on behalf of the American Bankers Association (ABA) by S&P Capital IQ, with a Board of Trustees that represents the voices of leading financial institutions. 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" Equity refers to market requests for CUSIP International Numbers ("CINS") for non-U.S. equity offerings
2 "International" Debt refers to market requests for CUSIP International Numbers ("CINS") for non-U.S. debt offerings
3 "U.S. & Canada Corporates" totals reflect requests for both equity and debt identifiers
SOURCE CUSIP Global Services
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