Corporate Debt Volumes Slow
NORWALK, Conn., Sept. 21, 2023 (GLOBE NEWSWIRE) — CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for August 2023. 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 a significant monthly increase in request volume for new municipal identifiers, while corporate volumes declined on a monthly basis.
North American corporate requests totaled 5,517 in August, which is down 6.4% on a monthly basis. On a year-over-year basis, North American corporate requests closed the month up 18.5% over year ago totals. The monthly volume decrease was driven by a 10.0% decrease in requests for U.S. corporate debt and a 26.3% decrease in requests for Canadian corporate identifiers. Request volumes for short-term certificates of deposit (CDs) with maturities less than one year were flat, while long-term CD (maturities longer than one year) request volume rose 4.3%.
Municipal request volume rose sharply this month after slowing in July. The aggregate total of identifier requests for new municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – rose 25.7% versus July totals. On a year-over-year basis, overall municipal volumes are down 11.4%. Texas led state-level municipal request volume with a total of 252 new CUSIP requests in August, followed by New York (137) and California (69).
“While we continue to see some month-to-month volatility in CUSIP request volumes, overall activity has been solid throughout this prolonged period of rising interest rates,” said Gerard Faulkner, Director of Operations for CGS. “We may, however, be starting to see the end of the party in the CD market where the steady monthly flow of double- and triple-digit increases in volume have started to subside.”
Requests for international equity CUSIPs rose 15.2% in August while international debt CUSIP requests rose 4.1%. On an annualized basis, international equity CUSIP requests are down 12.5% and international debt CUSIP requests are down 21.9%.
To view the full CUSIP Issuance Trends report for August, please click here.
Following is a breakdown of new CUSIP Identifier requests by asset class year-to-date through August 2023:
|Asset Class||2023 YTD||2022 YTD||YOY Change|
|CDs < 1-year Maturity||7,845||3,226||143.2%|
|Short-Term Municipal Notes||839||543||54.5%|
|CDs > 1-year Maturity||6,176||4,391||40.7%|
|U.S. Corporate Debt||13,213||10,401||27.0%|
|Canada Corporate Debt & Equity||3,396||3,545||-4.2%|
|U.S. Corporate Equity||6,516||7,434||-12.3%|
|Private Placement Securities||2,245||2,918||-23.1%|
|Long-Term Municipal Notes||279||397||-29.7%|
About CUSIP Global Services
CUSIP Global Services (CGS) is the global leader in securities identification. 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 50 plus years has helped CGS earn its reputation as the industry standard provider of reliable, timely reference data. CGS is also a founding member of the Association of National Numbering Agencies (ANNA) and co-operates ANNA’s hub of ISIN data, the ANNA Service Bureau. CGS is managed on behalf of the American Bankers Association (ABA) by FactSet Research Systems Inc., 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 is the voice of the nation’s $24 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $19.9 trillion in deposits and extend $11.4 trillion in loans.
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