CUSIP Request Volume Projects Volatility in Global Securities Issuance

NEW YORK, Dec. 18, 2014 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for November 2014.  The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests forthcoming volatility in U.S. corporate securities, international securities and municipal bond issuance over the next several weeks.

Total CUSIP requests for new U.S. and Canadian corporate equity and debt fell 10% in November, with a total of 1,959 new identifiers requested over the course of the month. Within those totals, domestic corporate equity CUSIP demand fell below 1000 for the first time since June. 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 12% to 1392 for the month of November. This is following a sharp increase in request volume for the month of October.  On a year-over-year basis, municipal bond CUSIP orders are down 5.9%.

International debt and equity CUSIP International Numbers (CINS) also trailed off in November.  Total requests for new international equity CINS decreased 13.5% while international debt CINS requests decreased 11.6% from October to November.  On a year-over-year basis, international equity requests are up 54.4% and international debt CUSIP requests are up 27.3% in 2014.

"Despite the drop-offs in November, we are still seeing steady volume in structured products for equity and index-linked securities and collateralized loan obligations (CLOs), including re-securitizations, asset-backed securities and funds," said Gerard Faulkner, Director of Operations for CUSIP Global Services. "Municipals continue to show volatility, but we are seeing a high volume of pre-refundings as issuers refinance at lower rates."

"We're starting to see the early signs of issuers preparing for a rising interest rate environment," said Richard Peterson, Director of Global Markets Intelligence, S&P Capital IQ. "While we definitely saw some drop off in November, the trend for the year is one of continued strength. Issuers' activity is showing their confidence in exploiting market conditions as they evolve."

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 November 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.

¹  "International" Equity refers to market requests for CUSIP International Numbers ("CINS") for non-U.S. equity offerings
² "International" Debt refers to market requests for CUSIP International Numbers ("CINS") for non-U.S. debt offerings
³ "U.S. & Canada Corporates" totals reflect requests for both equity and debt identifiers

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SOURCE CUSIP Global Services

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