.jpg)
CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for October 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 monthly decline in request volume for new corporate identifiers, while municipal volumes grew on a monthly basis.
North American corporate requests totaled 5,664 in October, which is down 17.0% on a monthly basis. On a year-over-year basis, North American corporate requests closed the month up 17.0% over year ago totals. The monthly volume decrease was driven by a 26.2% decrease in request volume for corporate debt and a 15.9% decrease in requests for U.S. corporate equity identifiers. October also saw a 15.2% decrease in request volume for short-term certificates of deposit (CDs) with maturities of less than one year, and a 5.9% decrease in request volumes for long-term CDs (maturities greater than one year).
Municipal request volume rose this month after declining in September. The aggregate total of identifier requests for new municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – climbed 7.4% versus September totals. On a year-over-year basis, overall municipal volumes are down 7.2%. Texas led state-level municipal request volume with a total of 163 new CUSIP requests in October, followed by New York (93) and New Jersey (60).
“It might not be a coincidence that we’ve seen a significant decline in corporate debt and CD request volumes at the same time that the Fed has signaled its intent to extend its interest rate pause,” said Gerard Faulkner, Director of Operations for CGS. “Overall CUSIP request volumes have been strong throughout the rising rate environment, but this month’s reading suggests we may be starting to see the beginning of a slowdown.”
Requests for international equity CUSIPs fell 16.1% in October while international debt CUSIP requests fell 15.7%. On an annualized basis, international equity CUSIP requests are down 15.8% and international debt CUSIP requests are down 14.4%.
To view the full CUSIP Issuance Trends report for October, please click here.
Following is a breakdown of new CUSIP Identifier requests by asset class year-to-date through October 2023:
| Asset Class | 2023 YTD | 2022 YTD | YOY Change | |
CDs < 1-year Maturity |
9,523 |
4,914 |
93.8% |
|
Short-Term Municipal Notes |
1,118 |
764 |
46.3% |
|
CDs > 1-year Maturity |
7,783 |
5,751 |
35.3% |
|
U.S. Corporate Debt |
16,135 | 12,462 | 29.5% | |
| Syndicated Loans | 2,320 | 2,048 | 13.3% | |
Canada Corporate Debt & Equity |
4,299 |
4,253 |
1.1% |
|
U.S. Corporate Equity |
8,127 |
8,870 |
-8.4% |
|
Municipal Bonds |
7,764 |
8,569 |
-9.4% |
|
| International Debt | 2,549 | 2,979 | -14.4% | |
International Equity |
1,256 |
1,491 |
-15.8% |
|
Private Placement Securities |
2,778 |
3,756 |
-26.0% |
|
Long-Term Municipal Notes |
314 | 463 | -32.2 | |
