US and international markets signal increases in new issuance volume
CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for May 2013. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, suggests increasing volume in US corporate and municipal bond issuance and international bond and equity issuance over the next 30-90 days.
CUSIP requests for new US corporate equity and debt issues surged 20.0% from the previous month, with 2,212 new CUSIP IDs requested in April. This was the highest monthly volume of CUSIP ID requests since May of 2012, bringing the total annual volume of corporate CUSIP request volume up 2.1% on a year-over-year basis.
Municipal CUSIP requests also jumped ahead in May, with 1,500 new ID requests made during the month. This was the best monthly showing of the year and the strongest showing of muni volume since June 2012. On a year-over-year basis, requests for new muni bond CUSIP IDs are still down 12.7% over 2012 totals, reflecting a significant slowdown in volume over the first quarter of 2013.
Internationally, debt and equity CUSIP requests reversed direction again in May, this time swinging into positive territory. International equity CUSIP requests increased 15.9% in May, while international debt identifier requests increased 16.5% during the month. On an annualized basis, international equity CUSIP requests are up 3.9% so far in 2013 while international debt CUSIP requests are up by over 38.0%.
"The dual trend of low interest rates and a slowly improving economy is creating a perfect storm for new debt issuance," said Richard Peterson, Director, Global Markets Intelligence, S&P Capital IQ. "The jury is still out on how long that environment will last, but for now, all signs are pointing to increases in issuance over the next several weeks."
Following is a breakdown of new CUSIP identifier requests by asset class year-to-date through May 2013:
Asset Class 2013 ytd 2012 ytd YOY Change
Long Term Note 214 146 46.6%
Int'l Debt(1) 974 706 38.0%
Int'l Equity(2) 1,253 1,206 3.9%
Private Placement 1,165 1,123 3.7%
US Corporates 9,317 9,125 2.1%
CDs > 1 yr Maturity 3,236 3,179 1.8%
CDs < 1 yr Maturity 1,326 1,442 -8.0%
Short Term Note 431 472 -8.7%
Municipals 6,323 7,242 -12.7%
The CUSIP Global Services trends report is issued to the marketplace on a monthly basis.