Corporate CUSIP Request Volume Gets off to Slow Start in 2021

Municipal Volumes on Pace with 2020 Levels

February 11, 2021 11:00 AM EST

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NEW YORK, Feb. 11, 2021 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for January 2021. 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 monthly decrease in request volume for new corporate and municipal identifiers. On a year-over-year basis, total CUSIP request volume for corporate securities declined, while municipal volumes were roughly flat with 2020 levels.

CUSIP identifier requests for the broad category of U.S. and Canadian corporate equity and debt totaled 2,322 in January, down 44.4% from last month. On a year-over-year basis, corporate CUSIP requests were down 41.5%. The decrease in January volumes was driven largely by U.S. corporate equity requests, which decreased 20.9% and corporate debt identifier requests, which decreased 14.3%, versus the previous month.

Monthly municipal volume also decreased in January. The aggregate total of all municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – fell 22.4% versus December totals. On an annualized basis, municipal CUSIP identifier request volumes were up 0.6% through January. On a state-by-state basis, issuers in Texas requested 93 new municipal identifiers in January, followed by California with 71 and New York with 70.

"Overall CUSIP request volumes tend to be muted in January, but the marked declines we're seeing in domestic corporate debt and equity identifier request volume is significant beyond the seasonal trend," said Gerard Faulkner, Director of Operations for CGS. "With so much uncertainty persisting in the broad economy, it appears that corporate issuers are approaching 2021 with caution."

Requests for international equity and debt CUSIPs were mixed in January. International equity CUSIP requests were down 3.7% versus December. International debt CUSIPs increased by 12.8% on a monthly basis. Syndicated loan requests were down 31.1% on a monthly basis and 8.1% year over year.

To view the full CUSIP Issuance Trends report for January, click here.

Following is a breakdown of new CUSIP Identifier requests by asset class year-to-date through January 2021:

 

Asset Class

 

2021 YTD

2020 YTD

YOY Change

 

International Equity

 

260

69

276.8%

 

Long-Term Municipal Notes

 

26

11

136.4%

 

Canada Corporate Debt & Equity

 

436

254

71.7%

 

U.S. Corporate Equity

 

 

952

 

738

 

29.0%

Private Placement Securities

 

256

219

16.9%

Municipal Bonds

 

791

765

3.4%

 

International Debt

 

 

308

 

309

 

-0.3%

 

Syndicated Loans

 

 

193

 

210

 

-8.1%

 

Short-Term Municipal Notes

 

56

83

-32.5%

 

U.S. Corporate Debt

 

641

1124

-43.0%

CDs > 1-year Maturity

 

150

382

-60.7%

CDs

 

51

462

-89.0%

About CUSIP Global ServicesThe 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 years has helped CGS earn its reputation as a trusted originator of quality identifiers and descriptive data, ensuring that essential front- and back-office functions run smoothly. Relied upon worldwide as the industry standard provider of reliable, timely reference data, CGS is also a founding member and co-operates the Association of National Numbering Agencies (ANNA) Service Bureau, a global security and entity identifier database for over 34 million public and privately traded instruments, contributed by 91 national numbering agencies and 25 partner agencies representing 120 different countries. CGS is managed on behalf of the American Bankers Association (ABA) by S&P Global Market Intelligence, with a Board of Trustees that represents the voices of leading financial institutions. For more information, visit www.cusip.com.

About The American Bankers AssociationThe 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 www.aba.com.

For More Information:

Farhan Husainfarhan.husain@spglobal.com    212-438-3271

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/corporate-cusip-request-volume-gets-off-to-slow-start-in-2021-301227057.html

SOURCE CUSIP Global Services



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