CUSIP ID Requests Forecast Surge in US Corporate Debt and Municipal Bond Issuance; Declines in International Debt Issuance

US Corporate Issuance up 14.6% and Muni Issuance up 13.5% from July 2011's Totals; International Debt Issuance Slumps to Slowest Pace Since April 2009

Sep 12, 2011, 08:45 ET from CUSIP Global Services

NEW YORK, Sept. 12, 2011 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for August 2011.  The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests a surge in US corporate debt issuance over the next 30-90 days.

In the US, domestic corporate CUSIP requests climbed 5.7% for the period between May and August 2011 with 1851 identifier requests made in August alone. This marked the best monthly showing for 2011 and the strongest monthly count since March 2010 when 1915 identifier requests were received.  On a year-over-year basis, identifier requests are still up 5.9% from 2010, with a total of 13322 identifiers sought so far this year. Certificate of deposit identifier requests for intermediate maturities have decreased (-14.3%) year-over-year, while those for short-term maturities hold steady at 1.1%.  

Municipal debt CUSIP requests rebounded 13.5% from July's totals with 1101 new identifier requests made. However, year-to-date figures still remain down (-18.6%) from 2010. Long term and short term notes continued to decline with long term note CUSIP identifiers requests were off (-48.4%) and short term notes down (-3.4%) from 2010's figures.

In the international equity market, demand CUSIP requests snapped back with 42.5% over July's numbers with 325 identifier requests made. CUSIP requests for international debt however have continued to fall with only 60 identifiers requested in August, the lowest monthly count since April 2009. Year-over-year, international equity CUSIP requests are still up 1.4% and international debt CUSIP requests are up 28.2% for 2011.

"We're seeing a very interesting dynamic emerge in the global markets. With interest rates in the US practically at zero, companies will continue to borrow as much as they can for the foreseeable future," said Richard Peterson, Director, S&P Valuation and Risk Strategies.  "The same cannot be said for firms in Europe where continued uncertainty seems to have put many corporate debt issuers on hold."

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 August 2011:

Asset Class


2011 ytd


2010 ytd


YOY Change

Int'l Debt(1)


1117


871


28.2%

Private Placement


1518


1372


10.6%

US Corporates


13322


12581


5.9%

Int'l Equity(2)


2458


2424


1.4%

CDs < 1 yr Maturity


2390


2363


1.1%

Short Term Note


1087


1125


-3.4%

CDs > 1 yr Maturity


5480


6393


-14.3%

Municipals


8097


9943


-18.6%

Long Term Note


277


537


-48.4%








(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



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
Michael_Privitera@standardandpoors.com

SOURCE CUSIP Global Services



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