09.13.2016

U.S. Corporate And Municipal Debt Issuance Poised to Climb, CUSIP Data Shows

PRNewswire – NEW YORK – CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for August 2016. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, shows an increase in corporate and municipal volume throughout the month of August.

CUSIP identifier requests for U.S. and Canadian corporate offerings were up 12% in August, driven largely by demand for new equity identifiers.  Requests for new identifiers for domestic equity offerings climbed to 1,078 for the month, the highest monthly total since April of 2015. Orders for domestic corporate debt CUSIPs were up slightly, climbing 0.6% on a month-to-month basis in August. On a year-over-year basis, corporate debt and equity CUSIP requests for the Americas was down 8.6% through August.

Municipal bond requests also surged in August, climbing 7% after experiencing a significant decline in July. Total requests for new municipal bond identifiers reached 1,306 in August, marking a return to the strong pace of new CUSIP activity among municipal issuers.  On a year-over-year basis, CUSIP requests for new municipal bond identifiers was up 3.4% through August.

Texas continued to lead the way among individual municipal bond issuers, reaching a total of 1,414 new CUSIP ID requests so far this year.  Texas was followed by New York State, with 1,093, and then California, with 836.

“Outside of a few seasonal and market-driven blips in request volume, we’ve continued to see incredibly strong demand for CUSIP identifiers for new securities so far this year,” said Gerard Faulkner, Director of Operations for CUSIP Global Services. “Based on the August data, we expect to see a sustained pace of new security issuance through the next several months.”

International debt and equity CUSIP International Numbers (CINS) volume was mixed in August.  International equity CINS fell 6%, while international debt CINS increased 8% during the month. On a year-over-year basis, international equity requests were down 59% and international debt requests were down 23%.

“Though we continue to see ongoing economic and political instability on a global basis, overall CUSIP request volume is suggesting a fairly robust pace of new issuance as we exit the summer doldrums,” said Richard Peterson, Senior Director, S&P Global Market Intelligence. “This metric will continue to be a fascinating indicator of overall issuer sentiment as we head into the U.S. election and wrestle with ongoing debate over the future of monetary policy around the world.”

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 August 2016:

Asset Class

2016 ytd

2015 ytd

YOY Change

Long Term Municipal Notes

363

271

33.9%

CDs < 1 yr Maturity

2945

2419

21.7%

Municipal Bonds

10938

10581

3.4%

CDs > 1 yr Maturity

5468

5736

-4.7%

Private Placement Securities

1728

1866

-7.4%

U.S. & Canada Corporates1

14752

15938

-8.6%

Short Term Municipal Notes

780

920

-15.2%

International Debt

1582

2058

-23.1%

International Equity2

1394

3379

-58.7%

 

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