CUSIP ID Requests Foreshadow Surge in Corporate and Municipal Debt Issuance
US Corporate Issuance Up 29% and Muni Issuance Up 11%; International Debt Issuance Up 67%
NEW YORK, Nov. 9, 2010 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for October 2010. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests strong, continued growth in US corporate and municipal bond and international corporate debt issuance over the next 30-90 days.
According to the report, requests for new US corporate security identifiers increased 29 percent year-over-year, with 1,723 new issuer requests made through October. In the municipal sector, a total of 1,747 identifier requests were made in October, making it the busiest month of the year for new muni ID requests and the most active period since October 2008. Currently, municipal bond identifier requests are up 11 percent over last year's volume. This upward trajectory of muni requests represents a reversal of the longer-term trend of declining municipal bond identifier issuance.
Outside of the US, a total of 130 new CUSIP ID requests were made for corporate debt securities through October, an increase of 67 percent over the same period last year. Additionally, CUSIP ID requests for international equity are up 25 percent year-over-year.
"We've seen corporate debt issuance trending upward for a few months now, but this month's increase in requests for municipal bond identifiers marks real inflection point," said Richard Peterson, Director, S&P Valuation and Risk Strategies. "It makes logical sense that municipalities would take advantage of the current rate environment, but this is one of the first indicators we are seeing of a nationwide surge in new municipal debt issuance. We will continue to monitor the trend."
Following is a breakdown of new CUSIP identifier requests by asset class year-to-date through October 2010:
Asset Class |
2010 ytd |
2009 ytd |
YOY Change |
|
Int'l Debt(1) |
1150 |
689 |
66.9% |
|
US Corporates |
16009 |
12410 |
29.0% |
|
Int'l Equity(2) |
3061 |
2445 |
25.2% |
|
Municipals |
13160 |
11836 |
11.1% |
|
Private Placement |
1805 |
1627 |
10.9% |
|
Short Term Note |
1436 |
1434 |
-0.1% |
|
Long Term Note |
680 |
690 |
-1.4% |
|
CDs > 1 yr Maturity |
7760 |
11309 |
-31.4% |
|
CDs < 1 yr Maturity |
3058 |
6416 |
-52.3% |
|
(1) "International" Debt refers to market requests for CUSIP International Numbers ("CINS") for non-U.S. debt offerings |
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(2) "International" Equity refers to market requests for CUSIP International Numbers ("CINS") for non-U.S. equity offerings |
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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 |
|
SOURCE CUSIP Global Services
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