CUSIP ID Requests Forecast Continued Rise in US Corporate Debt and Municipal Bond Issuance US Corporate Issuance up 7.4% and Muni Issuance up 14% from August 2011's Totals; International Debt Issuance Ends 5 Month Slide
NEW YORK, Oct. 11, 2011 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for September 2011. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests continued growth in US corporate debt issuance over the next 30-90 days.
In the US, domestic corporate CUSIP requests totaled 1988 in September, an increase of 7.4% from August figures. This marks the best monthly showing for domestic corporate security requests in more than three years, when May 2008 saw 2092 identifier requests. On a year-over-year basis, identifier requests are up 7.2% from 2010, with a total of 15308 identifiers sought so far this year. Certificate of deposit identifier requests for intermediate maturities have decreased (-13.4%) year-over-year, while those for short-term maturities held steady at 2.0%.
Municipal debt CUSIP requests continued to rebound for the second straight month with 1255 identifiers sought in September, representing the second best monthly showing for 2011 and a 14% rise from the August total of 1101. However, year-to-date figures still remain down (-18.1%) from 2010. Long term and short term notes continued to decline year-over-year with long term note CUSIP identifiers requests were off (-48.3%) and short term notes down (-1.5%) from 2010's figures.
The international securities market had a mixed month with international equity market demand for CUSIP requests dropping by (-21.5%) with only 255 identifier requests sought. Requests for international debt identifiers ended a five-month slide with 71 CUSIP requests made. Year-over-year, international equity CUSIP requests are now slightly down (-00.3%) and international debt CUSIP requests are up 16.5% for 2011.
"We're continuing to see a strong demand for domestic corporate identifiers as companies seize upon the favorable interest rate environment," said Richard Peterson, Director, S&P Capital IQ. "Municipal CUSIP requests are also showing strength as we enter the fourth quarter, but international firms are clearly finding themselves limited by the economic uncertainty in Europe."
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 September 2011:
CDs < 1 yr Maturity
Short Term Note
CDs > 1 yr Maturity
Long Term Note
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:
Vice President, Public Affairs
Standard & Poor's
(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
SOURCE CUSIP Global Services