CUSIP Request Volume Shows 'No End in Sight' to Frenetic Pace of New Bond Issuance
Requests for New Municipal Bond Identifiers Increase at Fastest Rate Since 2012
NEW YORK, May 14, 2015 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for April 2015. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests a notable increase in corporate and municipal debt issuance over the next several weeks.
"Using pre-trade CUSIP request volume as an early warning indicator, we have accurately forecast the current frenzy of corporate and municipal bond issuance," said Gerard Faulkner, Director of Operations for CUSIP Global Services. "Based on our current readings – particularly in the municipal and corporate debt markets – the pace of new issuance does not appear to be letting up any time soon."
Municipal CUSIP request volume surged for the fourth straight month in April, increasing 10% over March totals, with a total of 1,579 new identifier requests made over the course of the month. This was the highest level of municipal CUSIP request activity since June 2012. On a year-over-year basis, municipal bond identifier requests are up 53% through April. Texas has led the way among municipal bond issuers, with a total of 657 new CUSIP requests made in the first four months of the year.
Total CUSIP requests for new U.S. and Canadian corporate equity and debt increased 5% in April, with a total of 2,347 new identifiers requested over the course of the month. On a year-over-year basis, corporate CUSIP request volume was down 4.6%, reflecting a sharp slowdown in early 2015.
International debt and equity CUSIP International Numbers (CINS) orders showed mixed results in April. Requests for new international debt CINS decreased 4% in April, while requests for new equity CINS increased 25%.
"As long as the Fed continues to keep rates low, bond issuers in particular are going to take advantage of what might be the last hurrah to get into the markets at such low rates," said Richard Peterson, Senior Director of Global Markets Intelligence, S&P Capital IQ. "While the CUSIP indicator is still telling us that the pace of new issuance will not slow down anytime soon, it will be very interesting to watch for signs of a change in sentiment as the macroeconomic situation evolves."
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 April 2015:
| Asset Class |
2015 ytd |
2014 ytd |
YOY Change |
| Municipal Bonds |
5268 |
3440 |
53.1% |
| International Debt1 |
1021 |
871 |
17.2% |
| International Equity2 |
1760 |
1593 |
10.5% |
| CDs < 1 yr Maturity |
1061 |
1005 |
5.6% |
| CDs > 1 yr Maturity |
2561 |
2461 |
4.1% |
| U.S. & Canada Corporates3 |
8091 |
8479 |
-4.6% |
| Short Term Notes |
300 |
328 |
-8.5% |
| Private Placement Notes |
967 |
863 |
-10.8% |
| Long Term Notes |
139 |
112 |
-19.4% |
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. Relied upon worldwide as the industry standard provider of reliable, timely reference data, CGS is also a founding member and co-operates the Association of National Numbering Agencies (ANNA) Service Bureau, a global security and entity identifier database for over 25 million publicly trade instruments, contributed by 89 national numbering agencies and 27 partner agencies representing 123 different countries. 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" 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
3 "U.S. & Canada Corporates" totals reflect requests for both equity and debt identifiers
SOURCE CUSIP Global Services
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