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CUSIP Request Volume Signals Slowdown in Q4 Corporate Equity and Muni Bond Issuance

NEW YORK, Oct. 12, 2017 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for September 2017. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, found mixed results this month. Pre-trade requests for new municipal bond and corporate equity identifiers decreased in September, while requests for new corporate debt identifiers increased during the month. This is suggestive of a possible decrease in new municipal bond and corporate equity issuance and an increase in new corporate debt issuance in the fourth quarter of 2017.

CUSIP identifier requests for the broad category of U.S. and Canadian corporate offerings, which includes both equity and debt, totaled 4,121 in September down 2% from August, driven primarily by a 15% decline in requests for new corporate equity identifiers. By contrast, requests for corporate debt identifiers increased 7% during the month of September, logging the second-highest monthly count for new corporate debt CUSIP requests so far in 2017. So far this year, demand for new CUSIPs for both corporate debt and equity offerings are up 21% over the same period in 2016.

Municipal CUSIP requests declined in September. A total of 934 municipal bond identifier requests were made during the month, a decrease of 18% from August. On a year-over-year basis, municipal request volume was down 25% through the end of September 2017, reflecting ongoing volatility in municipal issuance volumes over the course of this year.

"Month-to-month CUSIP request volume has been volatile this year as issuers continue to tread carefully in an uncertain marketplace," said Gerard Faulkner, Director of Operations for CUSIP Global Services. "Taken as a whole, the first three quarters of this year have been consistent with a healthy volume of new securities issuance, but the persistent ebbs and flows in volume do underscore the cautious stance of many market participants."

International debt and equity CUSIP International Numbers (CINS) volume both saw increases in September. International equity CINS increased 31% and international debt CINS increased 4% during the month. On a year-over-year basis, international equity requests were down 14% and international debt requests were up 53%, reflecting continued volatility in international markets.

"New security issuers are clearly watching interest rates closely as pre-market issuance activity continues to rise and fall in tandem with expectations for another Fed rate move," said Richard Peterson, Senior Director, S&P Global Market Intelligence. "Given the current level of geopolitical and market uncertainty, this kind of volatility in CUSIP request volume is to be expected."

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 September 2017:

Asset Class

2017 ytd

2016 ytd

YOY Change

International Debt

2897

1893

53.0%

CDs < 1 yr Maturity

4679

3321

40.9%

U.S. & Canada Corporates

20,244

16,717

21.1%

Long Term Municipal Notes

489

413

18.4%

Private Placement Securities

2233

1948

14.6%

Short Term Municipal Notes

904

899

0.6%

CDs > 1 yr Maturity

6396

6192

3.3%

International Equity

1403

1625

-13.7%

Municipal Bonds

9,200

12,215

-24.7%

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 45 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