CUSIP Request Volume Reverses 5-Month Slump, Forecasts Surge in U.S. Corporate and Municipal Bond Issuance

New Corporate Volume Hits 2015 High

Nov 12, 2015, 13:06 ET from CUSIP Global Services

NEW YORK, Nov. 12, 2015 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for October 2015.  The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests a surge in new corporate and municipal bond issuance over the next several weeks.

The volume of requests for new municipal CUSIP identifiers, roared back in October following five steady months of decline.  A total of 1,111 new municipal bond identifier requests were made over the course of the month, a 20% increase over September.  On a year-over-year basis, municipal bond identifier requests are up 22.2% through October, 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 October, accounting for 30% of all municipal bond activity during the month.

Total CUSIP requests for new U.S. and Canadian corporate equity and debt also increased this month, with a total of 1,755 new identifiers requested over the course of the month, a 3% increase over September totals. Overall, corporate CUSIP requests reached their highest monthly volume of the year in October, driven largely by growth in federal agency program offerings. On a year-over-year basis, corporate CUSIP request volume was still down -8.3%.

"Several factors have driven the turn-around in new CUSIP request volume this month, including the start of the fourth quarter and a new fiscal year for municipal issuers," said Gerard Faulkner, Director of Operations for CUSIP Global Services.  "Guidance from the Federal Reserve has also played a role, giving issuers a clearer window of opportunity to issue new debt while interest rates remain low."

International debt and equity CUSIP International Numbers (CINS) both declined in October. Requests for new international debt CINS were down 4%, while requests for new equity CINS decreased 22%. 

"What we're seeing in the current CUSIP issuance numbers is a 'dash for debt' among U.S. corporate and municipal issuers who are looking to raise fund ahead of an interest rate increase from the Fed," said Richard Peterson, Senior Director of Global Markets Intelligence, S&P Capital IQ. "CUSIP request volumes will be instructive as we draw closer to a rate rise, offering us an early look at how capital markets might respond in a rising rate environment."

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 October 2015:

Asset Class

2015 ytd

2014 ytd

YOY Change

Municipal Bonds

12,618

10,328

22.2%

International Debt[1]

2472

2353

5.1%

CDs < 1 yr Maturity

3076

3010

2.2%

CDs > 1 yr Maturity

7233

7197

0.5%

Short Term Municipal Notes

1203

1256

-4.2%

International Equity[2]

3798

4025

-5.6%

U.S. & Canada Corporates[3]

19,395

21,155

-8.3%

Private Placement Securities

2249

2515

-10.6

Long Term Municipal Notes

315

534

-41.0%

 

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 and SNL, 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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