Corporate and International Debt Issuance Poised to Increase in Second Half of 2011
Muni Market Prepares for Increased Investor Appetite as Identifier Requests Reach New Highs
NEW YORK, July 12, 2011 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for June 2011. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests strong growth in US corporate debt issuance over the next 30-90 days, and a steady surge of new issuance in the municipal bond market.
In the US, domestic corporate CUSIP requests increased to 1713 in June from May's total of 1667. Identifier requests are up 7% from the first half of 2010 with a total of 9835 identifiers sought in the first six months of this year. Meanwhile, certificate of deposit identifier requests for intermediate maturities have decreased (-17.3%) year-over-year, while those for short-term maturities have remained flat at 0.4%.
Municipal debt CUSIP requests continued to surge in June with 1385 new identifiers sought, up from 1222 CUSIP requests made in May, making it the best monthly showing since December 2010. However, year-to-date figures still remain down (-18%) from 2010, reflecting a significant slow-down in the first quarter of 2011. Both long term and short term notes saw declines in identifier requests with long term note CUSIP identifiers off (-45.7%) and short term notes down (-9.8%) from last year's figures.
Internationally, debt and equity CUSIP activity have continued to slide for the third month in a row with only 271 international equity requests and 129 requests for international debt identifiers. Despite the recent monthly declines, international equity CUSIP requests are up 7.1% and international debt CUSIP requests are up 4% for the first half of 2011 compared with 2010.
"Despite the ever-present market anxiety, CUSIP volumes for most asset classes remain strong and the first half of 2011 sets the stage for healthy levels of debt issuance over the next several months," said Richard Peterson, Director, S&P Valuation and Risk Strategies. "We're particularly intrigued by the activity in the muni market, which appears to be gearing up for a wave of fresh offerings in the 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 June 2011:
Asset Class |
2011 ytd |
2010 ytd |
YOY Change |
|
Int'l Debt(1) |
974 |
681 |
43.0% |
|
Private Placement |
1171 |
1032 |
13.5% |
|
Int'l Equity(2) |
1905 |
1779 |
7.1% |
|
US Corporates |
9855 |
9212 |
7.0% |
|
CDs < 1 yr Maturity |
1777 |
1769 |
0.4% |
|
Short Term Note |
690 |
765 |
-9.8% |
|
CDs > 1 yr Maturity |
4114 |
4972 |
-17.3% |
|
Municipals |
6026 |
7341 |
-18.0% |
|
Long Term Note |
196 |
361 |
-45.7% |
|
(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 |
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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
[email protected]
SOURCE CUSIP
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