CUSIP Requests Stay Strong in June Signaling Growth in New Securities Issuance

CUSIP Global Services (CGS)  announced the release of its CUSIP Issuance Trends Report for June 2017. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, found a surge in the pre-trade market for  municipal  issues while overall corporate requests increased despite a slight decline in equity and debt issuance in June. This increased demand for new CUSIP IDs for corporate and municipal bonds is suggestive of a possible uptick in new security issuance volume over the coming weeks.

CUSIP identifier requests for U.S. and Canadian corporate offerings totaled 4,757 in June, up 9% from May with strong certificate of deposit issuance outpacing declines in debt and equity requests. So far this year, demand for new CUSIPs for both corporate debt and equity offerings are up 31% over the same period in 2016.

Municipal requests also increased in June. A total of 1,715 muni identifier requests were made during the month, an increase of 21% over May. This made June the most active month so far in 2017 for new requests for municipal CUSIPs. Despite this growth, municipal request volume was down 21% through the end of June 2017 on a year-over-year basis, reflecting some volatility in municipal issuance volumes over the course of this year.

“The fact that CUSIP request volume continues to remain strong even in the face of climbing interest rates is a reflection of issuers’ intent to stay active in the markets in the coming months,” said Gerard Faulkner, Director of Operations for CUSIP Global Services. “It speaks to a larger perception among market participants that this is still a viable market for raising new capital and introducing new equity and debt offerings.”

International debt and equity CUSIP International Numbers (CINS) volume also saw incremental volume increases in June.  International equity CINS increased 9% and international debt CINS increased 15% during the month. On a year-over-year basis, international equity requests were down 9% and international debt requests were up 69%, reflecting continued volatility in international markets.

“Despite some month-to-month choppiness in CUSIP request volume, overall, we’re seeing every indication that 2017 is shaping up to be a year of healthy new security issuance volume,” said Richard Peterson, Senior Director, S&P Global Market Intelligence. “When all is said and done, we may be down a few notches in some asset classes and up in others, but the big picture outlook is for a strong volume of issuance in the coming weeks and months.”

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 June 2017:

 

Asset Class 2017 ytd 2016 ytd YOY Change
International Debt 1921 1139 68.7%
Long Term Municipal Notes 299 226 32.3%
CDs < 1 yr Maturity 3038 2137 42.2%
U.S. & Canada Corporates  13,663 10,411 31.2%
CDs > 1 yr Maturity 4206 4081 3.1%
Private Placement Securities 1461 1274 14.7%
Short Term Municipal Notes 528 552 -4.3%
Municipal Bonds 6299 8414 -25.1%