Monday, January 18, 2010

Bet You Never Heard of This Little Noticed Indicator

If you don't work in the investment industry, you probably never heard the term 'CUSIP number.'  The CUSIP is an identifier for all manner of securities, from bonds to stocks to funds.  An issuer must get a CUSIP number assigned before the security can be put out and sold on the market,

It is interesting to note that, for the first time since early 2008, the issuance of CUSIP numbers rose year over year for two months in a row in November and December.

Why is this potentially significant and important to know?

It could mean that we are seeing the beginning stages of a release of pent up demand for new issuance of securities.  This would have avery positive impact on a number of Wall Street firms.

This could be a nifty early warning buy signal, largely overlooked in all the brouhaha over banker's bonuses.

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