CUSIP Request Volume Shows Second Consecutive Monthly Decline Among Corporate and Municipal Bond Issuers

New Bond Issuance 'Frenzy' May Be Slowing Down

Jul 09, 2015, 12:07 ET from CUSIP Global Services

NEW YORK, July 9, 2015 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for June 2015.  The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests a possible slow-down in new corporate and municipal bond issuance over the next several weeks.

Total CUSIP requests for new U.S. and Canadian corporate equity and debt decreased 16% in June, with a total of 1,819 new identifiers requested over the course of the month.  This was the second consecutive monthly decline in requests for new corporate identifiers following an 8% decline in the month of May. On a year-over-year basis, corporate CUSIP request volume was down 5.5%.

"On the whole for this year, requests for new corporate identifiers are now trending downward," said Gerard Faulkner, Director of Operations for CUSIP Global Services.  "While volume is still generally strong on a long term historical basis, these may be the first signals of an end to the corporate bond issuance frenzy that had characterized much of 2014 and early 2015."

Municipal CUSIP request volume also declined for the second straight month, decreasing 0.9% in June, with a total of 1,513 new identifier requests made over the course of the month.  This followed a 3% decline in May.  On a year-over-year basis, municipal bond identifier requests are still up 38% through June.

International debt and equity CUSIP International Numbers (CINS) also showed declines in June. Requests for new international debt CINS were down 1%, while requests for new equity CINS decreased 6%. 

"It's no coincidence that the first signs of a slowdown in the pace of new bond issuance are coinciding with signals from the Federal Reserve that interest rates will be rising soon," said Richard Peterson, Senior Director of Global Markets Intelligence, S&P Capital IQ. "However, we expect to see continued volatility in these numbers in the coming months as the capital markets continue to watch the Fed and the global market environment closely for signs of when rates may rise."

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 June 2015:

Asset Class

2015 ytd

2014 ytd

YOY Change





Municipal Bonds

8308

6009

38.3%

International Debt[1]

1618

1378

17.4%

International Equity[2]

2707

2336

15.9%

CDs < 1 yr Maturity

1744

1728

0.9%

CDs > 1 yr Maturity

3992

4045

-1.3%

Short Term Notes

584

606

-3.6%

Private Placement Notes 

1376

1424

-3.4%

U.S. & Canada Corporates[3]

12,080

12,779

-5.5%

Long Term Notes

183

270

-32.2%

 

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, 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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