CUSIP Request Volume Ebbs in September

CUSIP Global Services (CGS) announced the release of its CUSIP Issuance Trends Report for September 2018. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, found declines in monthly request volume for new municipal, corporate equity and corporate debt identifiers in September. This is suggestive of a possible slowdown in new security issuance.

CUSIP identifier requests for the broad category of U.S. and Canadian corporate offerings, which includes both equity and debt, totaled 4,213 in September, down 21.1% from the record volume of CUSIP request activity logged in August. On a year-over-year basis, corporate identifier request volume through September 2018 is 3.5% higher than the same period in 2017.

Municipal CUSIP requests also slowed in September, following a record surge in August. The aggregate total of all municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – saw a 9.6% decrease versus August. On a year-over-year basis, total municipal identifier request volume is down 13.2% versus the same period last year.

The monthly decline were seeing in CUSIP request volume this September looks dramatic when compared with the significant surge in volume we saw in August, but, the month did follow historically normal volume trends, said Gerard Faulkner, Director of Operations for CUSIP Global Services. It is notable, however, that the September slowdown coincided with historic high yields on U.S. Treasuries, possibly indicating that the rising rate environment will crimp the growth of new security issuance in the months to come.

Request for new international debt and equity CUSIP International Numbers (CINS) also declined in September. International equity CINS were down 53.3% during the month, while international debt CINS declined 9.4% during the month. On a year-over-year basis, international equity requests were up 18.4% and international debt requests were up 3.9%.

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 2018:

Asset Class

2018 ytd

2017 ytd

YOY Change

CDs < 1 yr Maturity

6176

4657

32.6%


International Equity


1651


1394


18.4%

Long Term Municipal Notes

562

487

15.4%


CDs > 1 yr Maturity

7219

6355

13.6%

International Debt

2988

2875

3.9%

Private Placement Securities

2195

2222

-1.2%

Short Term Municipal Notes

873

903

-3.3%

U.S. & Canada Corporates

19,201

21,016

-8.6%

Municipal Bonds

7803

9158

-18.4%