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CUSIP Request Volume Ebbs in July, Signaling Slowdown in New Security Issuance

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CUSIP Request Volume Ebbs in July, Signaling Slowdown in New Security Issuance

Municipal, Corporate Equity and Corporate Debt Pre-Market Activity Slows

PR Newswire

NEW YORK, Aug. 8, 2018 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for July 2018. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, found across-the-board declines in monthly request volume for new municipal, corporate equity and corporate debt identifiers in July. This is suggestive of a possible slowdown in new security issuance.

(PRNewsfoto/S&P Global Market Intelligence)

CUSIP identifier requests for the broad category of U.S. and Canadian corporate offerings, which includes both equity and debt, totaled 4,197 in July, down 16.6% from June. On a year-over-year basis, corporate identifier request volume through July 2018 is 2.8% higher than the same period in 2017. The monthly decline in corporate request volume was driven by a 19.2% decrease in requests for corporate debt identifiers and an 11.1% decrease in requests for corporate equity identifiers.

Municipal CUSIP requests also declined in July, following a four month run of consecutive volume increases. The aggregate total of all municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – logged a 28.9% decrease from June levels. On a year-over-year basis, total municipal identifier request volume is down 15% versus the same period last year.

"It should not come as a big surprise that the four-month streak of monthly CUSIP request volume increases would come to an end in July," said Gerard Faulkner, Director of Operations for CUSIP Global Services. "Seasonality is clearly a factor as CUSIP requests historically tend to slow in the summer months, but we're also staring down the prospect of rising interest rates, which could have a more lasting impact on new issuance as the year progresses."

International debt and equity CUSIP International Numbers (CINS) both decreased in July. International equity CINS were down 21.2% during the month, while international debt CINS decreased 16.2% during the month. On a year-over-year basis, international equity requests were up 23.3% and international debt requests were up 5.7%, reflecting continued volatility in international markets.

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 July 2018:

Asset Class

2018 ytd

2017 ytd

YOY Change

CDs < 1 yr Maturity

4571

3591

27.3%

International Equity

1365

1107

23.3%

Long Term Municipal Notes

427

380

12.4%

CDs > 1 yr Maturity

5490

4928

11.4%

International Debt

2378

2249

5.7%

Short Term Municipal Notes

619

651

-4.9%

U.S. & Canada Corporates 

14,998

15,880

-5.6%

Private Placement Securities

1593

1781

-10.6%

Municipal Bonds

5945

7125

-16.6%

About CUSIP Global Services

The financial services industry relies on CGS' unrivaled experience in uniquely identifying instruments and entities to support efficient global capital markets. Its extensive focus on standardization over the past 50 years has helped CGS earn its reputation as a 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 34 million public and privately traded instruments, contributed by 92 national numbering agencies and 27 partner agencies representing 255 different countries. CGS is managed on behalf of the American Bankers Association (ABA) by S&P Global Market Intelligence, 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.

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SOURCE CUSIP Global Services

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