CUSIP Request Volume Continues Downward Trend in 2016, Forecasts Continued Volatility in Corporate and Municipal Bond Issuance
New Municipal Bond Activity Down 12% vs. December 2015 Totals
NEW YORK, NY, February 15, 2016 – CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for January 2016. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests a continued slowdown in new corporate and municipal bond issuance over the next several weeks.
Total CUSIP requests for new U.S. and Canadian corporate equity decreased 5% from December 2015 to January 2016, with a total of 1,487 new identifiers requested over the course of the month. On a year-over-year basis, corporate CUSIP request volume was down 12% for January 2016 versus January 2015.
The volume of requests for new municipal CUSIP identifiers also saw month-to-month declines in January. A total of 910 new municipal bond identifier requests were made over the course of the month, a 12% decrease from December 2015. On a year-over-year basis, municipal bond identifier requests were down 4% in January.
Regionally, municipal bond issuers in Texas demanded the highest volume of new CUSIP identifiers in January, accounting for a total of 125 identifier requests during the month.
“The early indications we were seeing in the second half of 2015, which warned of a slowdown in new municipal and corporate debt issuance, are being realized as we kick off 2016,” said Gerard Faulkner, Director of Operations for CUSIP Global Services. “While there is still some ambiguity in the marketplace regarding the future of interest rate increases, issuers are clearly taking a more reserved approach in the early part of this year.”
International debt and equity CUSIP International Numbers (CINS) both saw steep declines in January. Requests for new international debt CINS were down 14%, while requests for new equity CINS were down 49%. On a year-over-year basis international debt CINS were down 24% and international equity CINS were down 63% through January 2016.
“While the uncertainty of the Fed’s timing on interest rate increases certainly drove some year-end surges in new debt issuance last year, the trend is now clear for the next several weeks that we expect to see a decrease in new security issuance,” said Richard Peterson, Senior Director, S&P Global Market Intelligence. “With new CUSIP request volume trending down in virtually every major asset class this January, we expect the pace of new securities coming to market to follow suit.”
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 January 2016:
| Asset Class | 2016 ytd | 2015 ytd | YOY Change |
| Short Term Note | 83 | 54 | 53.7% |
| CDs < 1 yr Maturity | 369 | 255 | 44.7% |
| CDs > 1 yr Maturity | 677 | 471 | 43.7% |
| Municipal Bonds | 910 | 949 | -4.1% |
| Private Placement Securities | 156 | 172 | -9.3% |
| U.S. & Canada Corporates[1] | 1487 | 1697 | -12.4% |
| International Debt[2] | 134 | 177 | -24.3% |
| Long Term Municipal Notes | 13 | 21 | -38.1% |
| International Equity[3] | 143 | 383 | -62.7% |
About CUSIP Global Services
The financial services industry relies on our unrivaled experience in uniquely identifying instruments and entities to support efficient global capital markets. Our extensive focus on standardization over the past 45 years has helped us earn the reputation for being the 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 25 million publicly trade instruments, contributed by 89 national numbering agencies and 27 partner agencies representing 123 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.
[1] “U.S. & Canada Corporates” totals reflect requests for both equity and debt identifiers
[2] “International” Debt refers to market requests for CUSIP International Numbers (“CINS”) for non-U.S. debt offerings
[3] “International” Equity refers to market requests for CUSIP International Numbers (“CINS”) for non-U.S. equity offerings
