CUSIP Request Volume Forecasts Slowdown in Corp and Muni Debt Issuance
Demand for New Identifiers Slowed in July in US and International Markets
NEW YORK, Aug. 15, 2011 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for July 2011. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests stalled growth in US corporate debt issuance over the next 30-90 days, and a slowdown in new issuance in the municipal bond market.
In the US, domestic corporate CUSIP requests slipped to 1614 in July from June's total of 1713, a (-5.8%) drop. On a year-over-year basis, identifier requests are still up 5.5% from 2010 with a total of 11469 identifiers sought so far this year. Certificate of deposit identifier requests for intermediate maturities have decreased (-16.4%) year-over-year, while those for short-term maturities have dipped (-3.1%).
Municipal debt CUSIP requests fell (-30%) from June's totals with only 970 new identifiers sought. This compares with 1385 CUSIP requests made in June, marking the slowest start to the third quarter in recent years. Year-to-date figures still remain down (-19%) from 2010, reflecting a significant slow-down in the 2011. Both long term and short term notes saw declines in identifier requests with long term note CUSIP identifiers off (-45.5%) and short term notes down (-2.8%) from last year's figures.
Internationally, requests for debt and equity CUSIPs have continued to fall for the fourth straight month, with only 228 international equity requests and 83 requests for international debt identifiers. Despite the monthly declines, international equity CUSIP requests are still up 2.3% and international debt CUSIP requests are up 34.3% year-over-year for 2011.
"As ongoing concerns over the trajectory of the Asian, US, and European markets pushed market anxiety to new heights in July, CUSIP volumes for most asset classes slowed significantly," said Richard Peterson, Director, S&P Valuation and Risk Strategies. "We will be closely monitoring the pace of identifier requests in the coming weeks as the marketplace reacts to continued volatility."
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 July 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.
(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
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.
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