CUSIP ID Requests Forecast Sustained Growth in US and International Corporate Debt Issuance and Slowdown in New Muni Issuance
US Corporate Issuance Up 10.5%; International Debt Issuance Up 53.8%; Muni Issuance Down 21.1% Year-Over-Year
May 09, 2011, 01:19 ET
NEW YORK, May 9, 2011 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for April 2011. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests strong, continued growth in US and international corporate debt issuance over the next 30-90 days, and a slowdown in the municipal bond market.
In the US, 1691 domestic corporate CUSIP requests were made in April, a decline (-4.6%) from March figures but a 10.5% year-over-year increase. Certificate of deposit identifier requests for shorter maturities increased 13.4% year-over-year, while those for intermediate maturities decreased (-6.7%).
Internationally, debt and equity CUSIP activity remained strong in April despite slight month-to-month declines from March totals. International equity CUSIP requests increased 16.8% and international debt CUSIP orders were up 53.8% for the first four months of 2011 compared with 2010.
Municipal CUSIP requests have declined (-21%) from last year's figures with just 943 CUSIP requests made in April. Both long term and short term notes saw declines in identifier requests with long term note CUSIP identifiers off (-34.9%) and short term notes down (-17.5%) from last year's figures.
"While we saw demand for corporate CUSIPs slip a bit on a monthly basis, the year-over-year growth figures are still signaling a robust pace for corporate debt issuance in the US and abroad," said Richard Peterson, Director, S&P Valuation and Risk Strategies. "Meanwhile, the trend of slowing muni demand persists, confirming the tenuous nature of the US municipal market for the near term."
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 April 2011: |
||||
Asset Class |
2011 ytd |
2010 ytd |
YOY Change |
|
Int'l Debt(1) |
692 |
450 |
53.8% |
|
Int'l Equity(2) |
1323 |
1133 |
16.8% |
|
CDs < 1 yr Maturity |
1282 |
1131 |
13.4% |
|
Private Placement |
804 |
719 |
11.8% |
|
US Corporates |
6475 |
5860 |
10.5% |
|
CDs > 1 yr Maturity |
2923 |
3132 |
-6.7% |
|
Short Term Note |
344 |
417 |
-17.5% |
|
Municipals |
3419 |
4331 |
-21.1% |
|
Long Term Note |
112 |
172 |
-34.9% |
|
(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 |
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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
[email protected]
SOURCE CUSIP Global Services