CUSIP Request Volume Signals Sluggish Pace of Corporate and Muni Bond Issuance

NEW YORK, Nov. 14, 2017 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for October 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 corporate debt identifiers decreased in October, while requests for new corporate equity and municipal bond identifiers saw some increases. This is suggestive of a continued sluggish pace of new security 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 4,114 in October, down 0.2% from September, driven primarily by a 19% decline in requests for new corporate debt identifiers. By contrast, requests for corporate equity identifiers increased 36% during the month of October. So far this year, demand for new CUSIPs for both corporate debt and equity offerings are up 20% over the same period in 2016.

Municipal CUSIP requests increased in October. A total of 1,018 municipal bond identifier requests were made during the month, an increase of 9% from September. On a year-over-year basis, however, municipal request volume was down 25% through the end of October 2017, reflecting ongoing volatility in municipal issuance volumes over the course of this year.

"While we are seeing some month-to-month pockets of growth in municipal bond and corporate equity asset classes, the overall pace of pre-market activity in October is best categorized as sluggish," said Gerard Faulkner, Director of Operations for CUSIP Global Services. "This pattern of on-again/off-again monthly volume ebbs and flows has been consistent this year amid a great deal of macroeconomic and geopolitical uncertainty."

International debt and equity CUSIP International Numbers (CINS) volume were also mixed in October. International equity CINS were essentially flat, growing 1.2% during the month, and international debt CINS increased 13% during the month. On a year-over-year basis, international equity requests were down 12% and international debt requests were up 46%, reflecting continued volatility in international markets.

"There is an alchemy to new security issuance that involves equal parts macroeconomics, politics, and routine funding needs of corporations and municipalities," said Richard Peterson, Senior Director, S&P Global Market Intelligence. "As those three variables continue to fluctuate over the course of the year, we're seeing those same undulations in the pre-trade market where issuers are readying new instruments to bring to market. We expect that general sense of cautiousness to pervade new issuance activity for the near-term."

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 2017:

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.

SOURCE CUSIP Global Services