CUSIP Request Volume Projects Slowdown in New U.S. Corporate Debt, Muni Issuance

NEW YORK, Jan. 14, 2015 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for December 2014.  The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests a possible slowdown in U.S. corporate debt and municipal bond issuance and an increase in international issuance over the next several weeks.

Total CUSIP requests for new U.S. and Canadian corporate equity and debt fell 3% in December, with a total of 1,897 new identifiers requested over the course of the month. Within those totals, domestic corporate debt CUSIP demand fell to just 598 in December, the lowest monthly count of the year for the asset class. On a year-over-year basis, corporate CUSIP request volume is still up by 3.9%.

Municipal CUSIP volume also saw a drop off, once again displaying heavy volatility. Orders fell 2% to 1197 for the month of December. This is the second month in a row of month-to-month declines, following a sharp increase in request volume for the month of October.  On a year-over-year basis, municipal bond CUSIP orders were down 3.1%.

International debt and equity CUSIP International Numbers (CINS) showed the strongest growth of all asset classes throughout 2014.  Total requests for new international equity CINS increased 71% in December, while international debt CINS requests decreased 34% from November to December.  On a year-over-year basis, international equity requests are up 50% and international debt CUSIP requests were up 21% in 2014.

"Factoring the two-week holiday break into the December totals, we're still seeing steady overall CUSIP issuance across all asset classes, with a notable interest in equity derivatives, mutual funds and corporate actions," said Gerard Faulkner, Director of Operations for CUSIP Global Services. "That said, the categories that have shown growth despite the headwind of a smaller number of trading days are certainly the ones to watch as we turn the corner into 2015."

"Much like the market environment we've been living in, CUSIP issuance volumes have shown a fair amount of volatility over the course of 2014," said Richard Peterson, Director of Global Markets Intelligence, S&P Capital IQ. "This activity suggests a cautious start to the new year when it comes to issuers creating new debt and capital vehicles."

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 December 2014:

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. 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.

SOURCE CUSIP Global Services

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