CUSIP ID Requests Forecast Slowdown in Corporate Debt Issuance, but Surge in New Muni Activity

NEW YORK, June 15, 2011 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for May 2011.  The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests a coming slow-down in U.S. and international corporate debt issuance over the next 30-90 days, and a resurgence of new issuance in the municipal bond market.  

In the U.S., domestic corporate CUSIP requests slipped to 1667 in May from April's total of 1691 but identifier requests are still up 8.6% year-to-date. Meanwhile, certificate of deposit identifier requests for shorter maturities increased 11.3% year-over-year, while those for intermediate maturities decreased (-11.5%).  

Municipal debt CUSIP requests bounced back in May with 1222 orders for identifiers, up from 943 CUSIP requests made in April. However, year-to-date figures still remain down (-20.1%) from 2010. Both long term and short term notes saw declines in identifier requests with long term note CUSIP identifiers off (-40.1%) and short term notes down (-15.1%) from last year's figures.

Internationally, debt and equity CUSIP activity retreated in May with only 311 international equity orders and 153 for international debt. Despite the recent monthly declines, international equity CUSIP requests are up 15.2% and international debt CUSIP requests are up 45.9% for the first five months of 2011 compared with 2010.

"Reflecting recent market anxiety, CUSIP volumes for several asset classes took a dip in May but overall, year-over-year growth remains strong signaling the markets tempered but still healthy appetite for corporate debt issuance in the U.S. and abroad," said Richard Peterson, Director, S&P Valuation and Risk Strategies.  "Meanwhile, the slowing muni requests trend stalled this month, suggesting that municipalities are gearing up for a surge of new issuance in coming months."

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 May 2011:

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 Standard & Poor's. 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.

For More Information:
Michael Privitera
Vice President, Public Affairs
Standard & Poor's
(212) 438-6679
[email protected]

SOURCE CUSIP Global Services

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