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SOURCE CUSIP Global Services
Municipal Volumes Trending Down Following Tax Reform
NEW YORK, Feb. 22, 2018 /PRNewswire/ -- CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for January 2018. The report, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity, found an increase in CUSIP request volume for new U.S. corporate equities and debt, but sharp decreases in the municipal bond market. This is suggestive of as strong pace of new corporate issuance and a slowdown in new muni issuance in the early weeks of 2018.
CUSIP identifier requests for the broad category of U.S. and Canadian corporate offerings, which includes both equity and debt, totaled 4,728 in January, up 12% from December, driven by an 8% increase in requests for new U.S. corporate equity identifiers and a 10% increase in new U.S. corporate debt identifiers. Requests for Canadian corporate debt and equity identifiers declined 19% in January, bringing the year-over-year performance for the combined category to a 2% decline.
By contrast, municipal CUSIP requests were more than halved in January, falling 57% from December volumes, with just 732 new muni identifiers requested during the first month of the year. On a year-over-year basis, muni request volume was down 36% versus January 2017.
"We're still seeing fallout from the Tax Cuts & Jobs Act in our muni request volumes," said Gerard Faulkner, Director of Operations for CUSIP Global Services. "While lawmakers are currently reviewing a new bill that would restore the tax exemption for advance refunding bonds, for now, the marketplace is reacting to the tax reform by dramatically curtailing their pre-trade activity."
International debt and equity CUSIP International Numbers (CINS) were mixed in January. International equity CINS were down 26% during the month, while international debt CINS increased 29% during the month. On a year-over-year basis, international equity requests were up 29% and international debt requests were up 37%, reflecting continued volatility in international markets.
To view a copy of the full CUSIP Issuance Trends report, please click here.
Following is a breakdown of New CUSIP Identifier requests by asset class year-to-date, through January 2018:
CDs < 1 yr Maturity
CDs > 1 yr Maturity
Private Placement Securities
Short Term Municipal Notes
U.S. & Canada Corporates
Long Term Municipal Notes
About CUSIP Global Services
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 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 92 national numbering agencies and 27 partner agencies representing 255 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 Association
The 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.
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