U.S. Corporate and Municipal Debt Issuance Poised to Climb, CUSIP Data Shows
Corporate CUSIP Requests Up 12%, Municipal Bond Requests Up 7% in August
NEW YORK, NY, SEPTEMBER 12, 2016 – CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for August 2016. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, shows an increase in corporate and municipal volume throughout the month of August.
CUSIP identifier requests for U.S. and Canadian corporate offerings were up 12% in August, driven largely by demand for new equity identifiers. Requests for new identifiers for domestic equity offerings climbed to 1,078 for the month, the highest monthly total since April of 2015. Orders for domestic corporate debt CUSIPs were up slightly, climbing 0.6% on a month-to-month basis in August. On a year-over-year basis, corporate debt and equity CUSIP requests for the Americas was down 8.6% through August.
Maverick USA was down 3.3% for the second quarter, while Maverick Levered was down 2.1%. Maverick Long Enhanced was up 8%. Year to date, Maverick USA is up 31.8%, while Maverick Levered has gained 49.3%. Maverick Long Enhanced has returned 9.9% for the first six months of the year. Maverick Capital is a long/ short Read More
Municipal bond requests also surged in August, climbing 7% after experiencing a significant decline in July. Total requests for new municipal bond identifiers reached 1,306 in August, marking a return to the strong pace of new CUSIP activity among municipal issuers. On a year-over-year basis, CUSIP requests for new municipal bond identifiers was up 3.4% through August.
Texas continued to lead the way among individual municipal bond issuers, reaching a total of 1,414 new CUSIP ID requests so far this year. Texas was followed by New York State, with 1,093, and then California, with 836.
“Outside of a few seasonal and market-driven blips in request volume, we’ve continued to see incredibly strong demand for CUSIP identifiers for new securities so far this year,” said Gerard Faulkner, Director of Operations for CUSIP Global Services. “Based on the August data, we expect to see a sustained pace of new security issuance through the next several months.”
International debt and equity CUSIP International Numbers (CINS) volume was mixed in August. International equity CINS fell 6%, while international debt CINS increased 8% during the month. On a year-over-year basis, international equity requests were down 59% and international debt requests were down 23%.
“Though we continue to see ongoing economic and political instability on a global basis, overall CUSIP request volume is suggesting a fairly robust pace of new issuance as we exit the summer doldrums,” said Richard Peterson, Senior Director, S&P Global Market Intelligence. “This metric will continue to be a fascinating indicator of overall issuer sentiment as we head into the U.S. election and wrestle with ongoing debate over the future of monetary policy around the world.”
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 August 2016:
Municipal Bond Requests
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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 “U.S. & Canada Corporates” totals reflect requests for both equity and debt identifiers
 “International” Equity refers to market requests for CUSIP International Numbers (“CINS”) for non-U.S. equity offerings