CUSIP ID Requests Forecast Slower Growth in US Corporate Debt Issuance

NEW YORK, Nov. 10, 2011 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for October 2011.  The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests slower growth in US corporate debt issuance over the next 30-90 days.

In the US, domestic corporate CUSIP requests dropped by more than 17% from September's totals, representing the sharpest monthly decline since January 2010. Despite the recent drop, year-to-date volume for domestic corporate issuance is up more than 10% with 16953 identifier requests made in October. Certificate of deposit identifier requests for intermediate maturities have decreased (-13.6%) year-over-year, while those for short-term maturities held steady at 1.8%.  

Municipal debt CUSIP requests remained unchanged in October. The 1255 requests matched the second strongest month of 2011 but marked the end of a two-month stretch of increased identifier orders. Year-over-year volume remains down (-19.4%). Long-term notes dropped again in October leaving year-over-year volume at nearly half of 2010 figures with only 345 identifier requests made in 2011. Short term notes remain steady with 2010's figures.

International equity CUSIP volume declined in October to 211 identifier requests, the slowest monthly count for the year and the slowest pace of identifier requests since May 2009. Meanwhile, international debt CUSIPs moved higher in October marking the first back-to-back monthly gains since September-October 2009. Year-over-year, international equity CUSIP requests are now slightly down (-4.5%) and international debt CUSIP requests are up 9.8% for 2011.

"We're seeing the fever pitch of new corporate debt issuance start to slow as we get to the end of the year," said Richard Peterson, Director, S&P Capital IQ.   "While requests for new CUSIP identifiers are still showing strong volume in domestic and international corporate debt, the pace has slowed on a month-to-month basis as uncertainty about the US and European economies continues to weigh on issuers.

"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 October 2011:

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.

SOURCE CUSIP Global Services