CUSIP Request Volume Shows Third Consecutive Monthly Decline Among Corporate and Municipal Bond Issuers

U.S. Corporate Issuers Show Signs of Increased Activity

Aug 11, 2015, 14:55 ET from CUSIP Global Services

NEW YORK, Aug. 11, 2015 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for July 2015.  The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests a possible slow-down in new corporate and municipal bond issuance over the next several weeks.

The volume of requests for new municipal CUSIP identifiers declined for the third straight month, decreasing 19% in July, with a total of 1,233 new identifier requests made over the course of the month.  This followed a 1% decline in June and a 3% decline in May.  On a year-over-year basis, municipal bond identifier requests are still up 36% through July, reflecting a surge in activity during the first half of the year.

Regionally, municipal bond issuers in Texas, New York and California demanded the highest volume of new CUSIP identifiers in July, together accounting for 35% of all municipal bond activity during the month.

Total CUSIP requests for new U.S. and Canadian corporate equity and debt increased 13% in July, with a total of 2,048 new identifiers requested over the course of the month. On a year-over-year basis, corporate CUSIP request volume was down 5.4%.

"The most interesting trend we're seeing in the CUSIP issuance data is the downward trajectory of new municipal bond volume for the third consecutive month," said Gerard Faulkner, Director of Operations for CUSIP Global Services.  "While, on a year-over-year basis, we're still seeing growth overall, we are definitely seeing a clear signal that the tide is starting to turn for municipal bond issuance."

International debt and equity CUSIP International Numbers (CINS) showed declines in July. Requests for new international debt CINS were down 21%, while requests for new equity CINS decreased 15%. 

"While corporate issuers are continuing to rally while rates are still low, the municipal bond market is sending clear signals of a forthcoming slowdown in new issuance," said Richard Peterson, Senior Director of Global Markets Intelligence, S&P Capital IQ. "We expect to continue to see volatility in the CUSIP volume data for the next several months as issuers around the world keep a close eye on U.S. interest rates."

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

Following is a breakdown of New CUSIP Identifier requests by asset class year-to-date, through July 2015:

Asset Class

2015
ytd

2014
ytd

YOY
Change





Municipal Bonds

9541

7020

35.9%

International Debt1

1853

1634

13.4%

International Equity2

3098

2890

7.2%

CDs > 1 yr Maturity

4934

4795

2.9%

CDs < 1 yr Maturity

2130

2105

1.2%

Short Term Notes

770

785

-1.9%

Private Placement Notes 

1853

1649

-4.6%

U.S. & Canada Corporates3

14,128

14,934

-5.4%

Long Term Notes

236

374

-36.9%

About CUSIP Global Services

The financial services industry relies on our unrivaled experience in uniquely identifying instruments and entities to support efficient global capital markets. Our extensive focus on standardization over the past 45 years has helped us earn the reputation for being the trusted originator of quality identifiers and descriptive data, ensuring that essential front- and back-office functions run smoothly.  Relied upon worldwide as the industry standard provider of reliable, timely reference data, CGS is also a founding member and co-operates the Association of National Numbering Agencies (ANNA) Service Bureau, a global security and entity identifier database for over 25 million publicly trade instruments, contributed by 89 national numbering agencies and 27 partner agencies representing 123 different countries. CGS is managed on behalf of the American Bankers Association (ABA) by S&P Capital IQ, with a Board of Trustees that represents the voices of leading financial institutions. 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 
3 "U.S. & Canada Corporates" totals reflect requests for both equity and debt identifiers

 

SOURCE CUSIP Global Services



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