CUSIP Request Volume Dips in December

Traders Magazine Online News, January 17, 2019

John D'Antona Jr.

CUSIP Global Services (CGS) announced the release of its CUSIP Issuance Trends Report for December 2018. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity over the next quarter, found significant monthly volume decreases in requests for new corporate and municipal identifiers.  

CUSIP identifier requests for the broad category of U.S. corporate offerings, which includes both equity and debt, decreased 25% from November. On a year-to-date basis, corporate identifier request volume through December 2018 is 12.4% lower than 2017 totals.

Municipal CUSIP requests also declined in December. The aggregate total of all municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – saw a 23.8% decrease versus November. On a year-to-date basis, total municipal identifier request volume is down 16.9% versus 2017.

"The second half of 2018 has been marked by a great deal of month-to-month volatility in CUSIP request volume, which is consistent with market uncertainty over the future of interest rates," said Gerard Faulkner, Director of Operations for CUSIP Global Services. "On the whole for 2018, total CUSIP request volumes trended down from the previous year, consistent with new security issuance activity over the course of the year."

Request for new international debt and equity CUSIP International Numbers (CINS) also decreased on an annualized basis in 2018, though the monthly results were mixed in December. International equity CINS were up 4.6% during the month, while international debt CINS fell 51.8% during the month. On a year-over-year basis, international equity requests were down 7.9% and international debt requests were down 3.4%.

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 December 2018:

 

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