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Corporate And Municipal Bond Issuers Ramp Up Pre-Market Activity In June - Municipal CUSIP Request Volume Surges For Third Straight Month

CUSIP Global Services (CGS) today announced the release of its CUSIP Issuance Trends Report for June 2020. 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 significant surge in request volume for new corporate and municipal debt identifiers.

CUSIP identifier requests for the broad category of U.S.- and Canada-issued equity and debt totaled 5,072 in June, up 17.3% from last month. On a year-over-year basis, corporate CUSIP requests are up 9.1%. The June 2020 monthly volume increases were focused in U.S. corporate equity, which grew 38.8% versus May 2020, and U.S. corporate debt, which was up 15.5%.

Municipal CUSIP request volume grew for the third straight month in June. The aggregate total of all municipal securities – including municipal bonds, long-term and short-term notes, and commercial paper

– climbed 14.7% versus May totals. This comes on top of a significant 53.1% increase the previous month. On an annualized basis, municipal CUSIP identifier request volumes are up 7.6% through June.

“We’ve been seeing continued signs of healthy liquidity in the municipal bond market for three straight months now, which is a clear indication that municipal borrowers are entering the market in a big way,” said Gerard Faulkner, Director of Operations for CGS. “The corporate market has been quite a bit more volatile throughout the COVID-19 crisis, but we may now be seeing signs of pent-up demand, particularly in corporate equities, where we’re tracking a surge in volume for new equity CUSIPs.”

Requests for international equity and debt CUSIPs both grew in June for the second straight month. International equity CUSIP requests were up 60% in June and up 106.9% on a year-over-year basis. International debt CUSIPs increased 2.4% on a monthly basis and declined 5.9% on a year-over-year basis.

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

Following is a breakdown of new CUSIP Identifier requests by asset class year-to-date through June 2020:

 

 

Asset Class

 

2020 YTD

 

2019 YTD

 

YOY Change

 

 

International Equity

 

1192

 

576

 

106.9%

 

 

U.S. Corporate Debt

 

6,745

 

5,345

 

26.2%

Long-Term Municipal Notes

 

274

 

221

 

24.0%

 

 

Municipal Bonds

 

6,016

 

5,411

 

11.2%

 

 

CDs > 1-year Maturity

 

4,154

 

4,219

 

-1.5%

 

 

U.S. Corporate Equity

 

5,211

 

5,379

 

-3.1%

 

 

International Debt

 

1,600

 

1,701

 

-5.9%

 

 

Private Placement Securities

 

1,496

 

1,755

 

-14.8%

 

 

Canada Corporate Debt & Equity

 

1,848

 

2,193

 

-15.7%

 

 

Syndicated Loans

 

985

 

1,240

 

-20.6

 

 

CDs < 1-year Maturity

 

3,105

 

4,922

 

-36.9%

 

 

Short-Term Municipal Notes

 

487

 

785

 

-38.0%

 

                 
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