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