Municipal CUSIP request volumes climb for fifth straight month

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CUSIP Global Services' (CGS) CUSIP Issuance Trends Report for June 2021, which tracks the issuance of new security identifiers as an early indicator of debt and capital markets activity over the next quarter, has revealed a significant monthly increase in request volume for new municipal identifiers and a slight decline in request volume for new corporate identifiers.

CUSIP identifier requests for the broad category of US and Canadian corporate equity and debt declined 3.3 per cent in June from last month. The monthly decrease was driven largely by US corporate debt identifier requests, which declined by 5.7 per cent. On a year-over-year basis, corporate CUSIP requests were down 6.4 per cent.

Monthly municipal volume increased for a fifth straight month in June. The aggregate total of all municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper – rose 14.3 per cent versus May totals. On an annualised basis, municipal CUSIP identifier request volumes were up 7.2 per cent through June. New York led state-level municipal request volume with a total of 226 new CUSIP requests in June, followed by Texas with 211 and California with 108.

"Municipalities continue to issue new debt offerings at a rapid clip, especially during the peak short-term notes season, suggesting opportunistic capital raising in a largely favorable rate environment," says Gerard Faulkner, Director of Operations for CGS. "The recent slowdown in corporate activity has been notable, however, and will be important to watch over the course of the coming months."

Requests for international equity and debt CUSIPs were mixed in June. International equity CUSIP requests were down 9.2 per cent versus May. International debt CUSIPs increased by 14.3 per cent on a monthly basis.