CUSIP ID Request Volume Projects Slowdown in U.S. Corporate and Municipal Securities Issuance
International Issuance Indicator Showing Improvement
NEW YORK, Oct. 14, 2014 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for September 2014. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests a possible slowdown in U.S. corporate securities and municipal bond issuance and increases in international securities issuance over the next several weeks.
Total CUSIP requests for new U.S. and Canadian corporate equity and debt issues posted a 1% monthly decline in September versus August, with a total of 2,008 new identifiers requested over the course of the month. On a year-over-year basis, corporate CUSIP request volume for August was up 3% versus the same period in 2013.
Municipal CUSIP volume decreased noticeably in September after experiencing an increase in volume in August. A total of 896 municipal bond IDs were requested in September, down 17% from August totals. On a year-over-year basis, municipal identifier demand is down 13% through September of 2014.
International debt and equity CUSIP International Numbers (CINS) requests both saw increases in volume last month. Total requests for new international equity CINS increased 10% while international debt CINS requests increased 80% from August to September. On a year-over-year basis, international equity requests are up 60% and international debt CUSIP requests are up 30% in 2014.
"While we did see a notable decline in overall U.S. volume in September, we have seen continued steady issuance for IPOs, CLOs, ETFs and structured products in the corporate sector and for notes, commercial paper and pre-refundings in the municipal market," said Gerard Faulkner, Director of Operations for CUSIP Global Services. "Currently, the global interest rate environment is creating big opportunities for several different types of financial instruments."
"The issuance trend in the U.S. is starting to look less like a seasonal blip and more like a signal from issuers that they will soon start slowing their pace of new capital creation," said Richard Peterson, Director, Global Markets Intelligence, S&P Capital IQ. "Internationally, however, it looks like the appetite for new issuance activity really starting to grow."
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 October 2014:
| Asset Class |
2014 ytd |
2013 ytd |
YOY Change |
| International Equity1 |
3,656 |
2,284 |
60.0% |
| International Debt2 |
2,103 |
1,622 |
29.7% |
| CDs < 1 yr Maturity |
2,706 |
2,558 |
5.8% |
| U.S. & Canada Corporates3 |
18,969 |
18,422 |
3.0% |
| Short Term Notes |
1,104 |
1,075 |
2.7% |
| Private Placement Notes |
2,217 |
2,202 |
0.7% |
| CDs > 1 yr Maturity |
6,360 |
6,489 |
-2.0% |
| Long Term Notes |
485 |
504 |
-3.8% |
| Municipal Bonds |
9,000 |
10,287 |
-12.5% |
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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