January Sees Notable Decline in CUSIP Requests Across Sectors
An Overview of CUSIP Request Trends in January
CUSIP Global Services (CGS) recently published its CUSIP Issuance Trends Report for January 2025, highlighting a significant drop in the volume of new corporate and municipal identifier requests. Though January traditionally marks the start of a new year, the current trends indicate an unexpected slowdown compared to the bustling activity seen in late 2024.
Corporate CUSIP Requests Decline
During January, North America recorded a total of 4,505 corporate CUSIP requests, reflecting a considerable decline of 36.9% month-over-month. This statistic is even more concerning when viewed in the context of January 2024, where requests had already fallen by 24.2%. The most notable reductions were observed in U.S. corporate debt identifier requests, which fell by 32.6%. Additionally, both short-term and long-term certificates of deposit experienced decreased requests, down 27.1% and 14.8% respectively.
Municipal Security CUSIP Requests
Municipal security requests also dipped, with an overall decrease of 14.1% from December. However, while there was a month-to-month drop, year-over-year statistics showed a modest 1.8% increase in overall municipal volumes, showcasing slight resilience in a challenging market. Among states, Texas led with 78 new municipal CUSIP requests, followed closely by California and New York, each contributing 59 new requests.
Insights from CGS Director Gerard Faulkner
Gerard Faulkner, Director of Operations for CGS, addressed the concerning trends: “While monthly CUSIP request volume may appear slow compared to the strong volumes we saw in the latter half of the previous year, several major asset classes are still witnessing progress in comparison to last year.” Faulkner also noted the uncertainties surrounding interest rates and the broader economy, suggesting that issuers are likely to enter the markets at a robust pace.
International CUSIP Requests Varied
International equity CUSIP requests witnessed a substantial decline of 19.5% in January, whereas international debt CUSIP requests recorded a remarkable 14.0% increase. On a year-over-year basis, international equity requests dropped by 13.0%, contrasting sharply with a notable rise of 33.3% in international debt requests. This divergence illustrates the varying investor appetites for different asset classes across borders.
A Closer Look at CUSIP Identifier Requests by Asset Class
Breaking down the CUSIP Identifier requests by asset class gives a clearer picture of the trends:
- Long-Term Municipal Notes: 37 requests, a steep increase of 362.5% year-over-year.
- Canada Corporate Debt & Equity: 562 requests, up by 48.7% from the previous year.
- International Debt: 520 requests, reflecting a 33.3% year-over-year growth.
- U.S. Corporate Equity: 1,161 requests, marking a 27.0% increase.
- U.S. Corporate Debt: 1,605 requests, a slight growth of 4.2% from last year.
Understanding the Role of CUSIP Global Services
CUSIP Global Services (CGS) plays a critical role in the global financial arena, serving as the premier provider of security identification. The organization has built a robust reputation over the past 50 years for efficient and reliable reference data, a cornerstone for facilitating capital market transactions. CGS is a founding member of the Association of National Numbering Agencies (ANNA) and collaborates closely with FactSet Research Systems Inc. to maintain its high standards.
About the American Bankers Association
The American Bankers Association represents the collective interests of the banking industry, which encompasses a diverse range of institutions. With a focus on enhancing the industry’s voice and operational efficiency, the ABA continuously champions the needs of banks varying in size and scope.
Frequently Asked Questions
What does the CUSIP report for January indicate?
The report reveals a significant decrease in corporate and municipal CUSIP requests, suggesting slower market activity.
Which state had the highest municipal CUSIP requests?
Texas led with 78 new municipal CUSIP requests for the month of January.
How did international CUSIP requests perform in January?
International equity CUSIP requests fell by 19.5%, while international debt requests rose by 14.0%.
What is the purpose of CUSIP Global Services?
CUSIP Global Services provides essential identification services for securities, helping to streamline capital market transactions.
How significant is the change in the long-term municipal notes?
Long-term municipal notes requests surged by 362.5% year-over-year, indicating a strong rise in this asset class.
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