CUSIP ID Requests Project High Volume US Corporate Debt Issuance in Early 2012
NEW YORK, Jan. 11, 2012 /PRNewswire/ — CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for December 2011. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests strong volume in US corporate debt issuance over the next 30-90 days.
In the US, December marked the second busiest month in 2011 for domestic corporate CUSIP requests with a total of 1,770. Overall, 2011′s total figure of 20,646 new CUSIP identifier requests represented a 4.4% year-over-year increase when compared with 2010. This was also the first year since 2008 when full year CUSIP request totals exceeded the 20,000 mark. Meanwhile, certificate of deposit identifier requests for intermediate maturities have decreased (-18.3%) year-over-year, while those for short-term maturities decreased (-5.1%).
Despite a strong fourth quarter, municipal debt CUSIP requests declined (-18%) in 2011 with only 13,317 made for the calendar year. Short term notes increased 2% in 2011 compared with 2010 figures while long-term notes continued to slide with only 382 identifier requests made this year pushing year-over-year volume down (-49.8%) from 2010.
International equity CUSIP volume slowed in December with only 201 requests made, the slowest month since June 2009. International debt CUSIP orders remained tepid, failing to top the 100 mark for the sixth consecutive month. Year-over-year, international equity CUSIP requests are down (-8.7%) and international debt CUSIPs increased 2.1% from 2010 figures.
“Mirroring the ongoing anxiety and heightened volatility in the European financial markets, international debt and equity CUSIP activity slowed in the second half of 2011, but we’re continuing to see serious demand among US corporate debt issuers,” said Richard Peterson, Director, S&P Capital IQ. “Like most economic indicators, our CUSIP Issuance Trends data is painting a cautiously optimistic picture for capital markets activity in the first quarter of 2012; we will continue to monitor the situation closely.”
To view a video commentary of this month’s CUSIP issuance trends with Richard Peterson, please click here.
Following is a breakdown of new CUSIP identifier requests by asset class year-to-date through December 2011:
Asset Class 2011 ytd 2010 ytd YOY Change Private Placement 2474 2264 9.3% US Corporates 20646 19768 4.4% Int'l Debt 1433 1403 2.1% Short Term Note 1668 1634 2.1% CDs < 1 yr Maturity 3778 3981 -5.1% Int'l Equity 3440 3769 -8.7% Municipals 13317 16277 -18.2% CDs > 1 yr Maturity 7693 9416 -18.3% Long Term Note 382 761 -49.8%
The CUSIP Global Services trends report is issued to the marketplace on a monthly basis. For more information, please visit www.cusip.com.
About CUSIP Global Services
For 40 years CUSIP Global Services has provided a unique common language for identifying financial instruments across institutions, exchanges and nations, enabling financial services firms to benefit from improved operating efficiencies and substantially reduced administrative costs. CUSIP Global Services is operated by the CUSIP Service Bureau (CSB). CSB is managed on behalf of the American Bankers Association by Standard & Poor’s. 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 http://www.aba.com/.
 “International” Debt refers to market requests for CUSIP International Numbers (“CINS”) for non-U.S. debt offerings
 “International” Equity refers to market requests for CUSIP International Numbers (“CINS”) for non-U.S. equity offerings
SOURCE CUSIP Global Services