Slowdown Led by Lull in New Corporate Debt and Certificate of Deposit Issuance
NORWALK, Conn., Aug. 14, 2024 (GLOBE NEWSWIRE) — CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for July 2024. 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 slowdown in request volume for new corporate and municipal identifiers for a second consecutive month.
North American corporate requests totaled 6,391 in July, which is down 2.6% on a monthly basis. On a year-over-year basis, North American corporate requests closed the month up 7.9%. The monthly volume decline was driven by a 15.6% decrease in request volume for U.S. corporate debt and a 21.1% decrease in volume for Canadian corporate securities. Request volumes for short-term certificates of deposit (-10.1%) and longer-term certificates of deposit (-10.2%) also slowed in July.
The aggregate total of identifier requests for new municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – fell 18.1% versus June totals. On a year-over-year basis, overall municipal volumes are up 7.6%. Texas led state-level municipal request volume with a total of 180 new CUSIP requests in July, followed by New York (161) and California (67).
“While new issuance volume is still up year-over-year across the majority of asset classes, we are starting to see more frequent slowdowns on a month-to-month basis,” said Gerard Faulkner, Director of Operations for CGS. “The jury is still out on whether that monthly volatility represents a significant trend or just a mid-summer blip in activity. We will continue to monitor CUSIP request volumes closely for any signals.”
Requests for international equity CUSIPs fell 1.7% in July and international debt CUSIP requests rose 14.8%. On an annualized basis, international equity CUSIP requests are down 4.8% and international debt CUSIP requests are up 113.3%.
To view the full CUSIP Issuance Trends report for July, please click here.
Following is a breakdown of new CUSIP Identifier requests by asset class year-to-date through July 2024:
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Asset Class |
2024 YTD |
2023 YTD |
YOY Change |
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International Debt |
3,538 |
1,659 |
113.3% |
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Long-Term Municipal |
387 |
247 |
56.7% |
|
Private Placement |
2,441 |
1,951 |
25.1% |
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U.S. Corporate Debt |
14,410 |
11,825 |
21.9% |
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U.S. Corporate Equity |
6,677 |
5,599 |
19.3% |
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Canada Corporate |
3,513 |
3,014 |
16.6% |
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Syndicated Loans |
1,575 |
1,474 |
6.9% |
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Municipal Bonds |
5,523 |
5,194 |
6.3% |
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International Equity |
853 |
896 |
-4.8% |
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Short-Term Municipal |
652 |
694 |
-6.1% |
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CDs > 1-year Maturity |
4,856 |
5,407 |
-10.2% |
|
CDs < 1-year Maturity |
5,802 |
6,994 |
-17.0% |
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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 approximately 2.1 million people, safeguard $19 trillion in deposits and extend $12.4 trillion in loans.
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