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CUSIP ID Requests Signal Slowdown in Corporate and Muni Bond Issuance

Hurricane, holidays and market uncertainty conspire to curb new identifier requests in November

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NEW YORK, Dec. 17, 2012 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for November 2012.  The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests a slowdown in new market volume globally over the next 30-60 days, with US corporates, municipals and international debt and equity all signaling a pull-back in new issuance. 

CUSIP requests for US corporate securities decreased 9% in November, with 1,568 new CUSIP IDs requested in the month, versus 1,717 in October.  Total US corporate CUSIP requests are still up 1.3% on a year-over-year basis. 

Municipal CUSIP requests slumped 2% in November, with a total of 1,568 new IDs requested industry-wide, led by a sharp drop in sort term municipal note volume.  Excluding note and other security types, municipal CUSIP activity notched a 4% increase in month-over-month volume in November.  On a year-over-year basis, municipal CUSIP demand is still up by more than 27.8%, representing one of the strongest advances in CUSIP requests this year across all asset classes.

Internationally, debt and equity CUSIP requests pulled back during the month of November, decreasing 21% and 9%, respectively.  For the year-to-date period, international equity requests are off by more than -26%, while international debt CUSIP requests show a 20.6% gain.

"Whether it was the result of Hurricane Sandy's disruption of financial markets, a holiday-shortened month or continued uncertainty surrounding the fiscal cliff, the month of November saw declines in identifier requests across a number of security classes," said Richard Peterson, Director, Global Markets Intelligence, S&P Capital IQ.  "It is not yet clear if this is a one-time anomaly or a sign of a more substantial slowdown in capital markets issuance, but it is a set of data we are watching very closely."

To view a copy of the full CUSIP Issuance Trends report, please click here.

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 November 2012:

Asset Class     

    2012 ytd

2011 ytd

YOY Change

Long Term Note     

536

363

47.7%

Municipals    

15,406

12,056

27.8%

Int'l Debt[1]     

1,643

1,362

20.6%

Private Placement     

2.645

2.284

15.8%

CDs < 1 yr Maturity    

3,600

3,448

4.4%

US Corporates       

19,112

18,876

1.3%

CDs > 1 yr Maturity     

6,719

7,272

-7.6%

Short Term Note   

1,401

1,547

-9.4%

Int'l Equity[2]     

2,391

3,239

-26.2%

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 S&P Capital IQ. 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

SOURCE CUSIP Global Services



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http://www.cusip.com

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