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Not for Pub 1 ica t ioiDECONTROLLED AFTER SIX MOUTHS, CAPITAL MARKETS DEVELOPMENTS IN THE UNITED STATES SEP 1 3 .jod FECIAL RESERVE BANK ' September 16, 1968. 0 ^AD(]AJ V V (TlOihMjJr OF R I C H M O N D Corporate and municipal bond markets. Long-term bond offerings should total over $1 billion this week. Although the volume of new, publicly-offered, corporate securities is expected to be well below the average weekly volume over the past year, municipal offerings will be almost twice their weekly average and other issuers will be in the market for an additional $0.5 billion., The largest tax-exempt offering will be Beauregard Parish's $105 million of industrial revenue bonds; the two outsized issues offered by others will be $250 million of World Bank bonds and $250 million of F.N.M.A. bonds. There will be no corporate offerings of notable size. 1/ Long-term Public Security Offerings (In millions of dollars) Coriaorate New Capital Refunding State and local Government New Capital [ Refunding Sold: 294 52 week avg. 1 — 279 September 6 r/162 September 13 275 244 20 120 527 1 r/214 — Scheduled; September 1/ — Federal Reserve estimates are based upon published reports of issues sold and scheduled for offering; corporate rights offerings are included as of date subscription rights expire. Yields on new and seasoned corporate bonds were unchanged to slightly higher last week — the small drop in the new issue series was caused solely by a shift in the volume of issues carrying call protection. New issues met with a very cool reception and, as a result, the volume of bonds still in syndicate rose quite sharply. Yields on municipals were unchanged to somewhat lower last week, while new issues met with only a fair reception. By the end of the week 77 per cent had been sold. Underwriters succeeded in reducing somewhat their extremely large volume of holdings -- but only at a considerable loss — by releasing from syndicate several issues offered around the middle of August. In free market trading, the yields on these issues advanced 25 to 30 basis points. H. 14 -2- Yields on Security Markets High-Grade Notes and Bonds Change from preceding week Corporate New Seasoned 6.33 5.95 U.S. Government Long-term 3-5 year + + 5.12 5.36 State and local Gov't. Moody's Aaa Std. & Poor's high grade 4.25 4.43 Money Market Federal funds Treasury bills 3-month 6-month 5.70 - 24 5.28 5.31 + + 7 9 Corporate Bonds Still in Syndicate ' Date Offered Amount (millions of $) 9/5• 25.0 9/10 25.0 9/10 60.0 9/9 125.0 Issuer Reoffering Yield Rating Estimated proportion sold Michigan Consolidated Gas, 7's - 1993 6.80 30% Metropolitan Edison, 7's - 1998 6.85 25% Tenneco, 7's - 1988 7.00 Baa 50% New England Tel. & Tel., 6-3/8's - 2008, 6.35 Aaa 25% Blue List of Municipal Dealers' Advertised Inventories Latest Week 669(9/10/68) End of Previous Week 707 1968 High 849(8/28/68) H. 14 Stock prices. Common stock prices experienced a slight decline last week, while trading volume was fairly heavy. At the close Friday, Standard & Poor's index of 500 stocks stood at 100.86, down 0.34 from the previous Friday. Trading volume averaged 12.8 million shares a day. More detailed information concerning recent capital market developments is presented in the attached exhibits. Capital Markets Section, Division of Research and Statistics, Board of.Governors of the Federal Reserve System. EXHIBIT A. Port 1 LONG-TERM BOND YIELDS, HIGH-GRADE C O R P O R A T E Ala U.S. G O V E R N M E N T ___r STATE A N D LOCAL G O V E R N M E N T Aaa 1966 1967 Exhibit A — Corporate Aaa If Date 1959-60 - High 1966 - High - Low 1967 - High - Low 1968 - Aug. 4o61(1/29/60) j 5.52(9/9) 4.73(1/7) 6.24(12/29) 5.00(2/10) 16 23 30 Sept. 6 13 £ f 6.00 5.98 5.97 5.95 5.95 fare, xx State and U.S. Govt. | local long-term 27, government Aaa 3/ (per cent) 4.42(1/8/60) 4.87(9/2) 4.42(1/7) 5.49(11/17) 4.37(2/3) 3.65(9/24/59) 4.04(8/25) 3.39(1/13) 4.15(12/28) 3.25(2/9) 5.06 5.09 5.06 5.07 5.12 4.00 4.05 4.25 4.25 4.25 Spread between U.S. Govt, and State and Corporate local Aaa Aaa .59(8/5/60) .84(12/30) .14(2/18) .92 .44 1.06 .89 .91 .88 .83 .92(4/22/60) 1.19(2/11) .77(9/2) 1.51 .74 1.06 1.04 .81 .82 .87 j>/ Preliminary, 1/ Weekly average of daily figures. Average term of bonds included is 22-24 years. 2/ Weekly average of daily figures. The series includes bonds due or callable in 10 years or more. 3/ Thursday figures. Only general obligation bonds are included; average term is 20 years. Note--Highs and lows are for individual series and may be on different dates for different series. For spreads, high refers to widest, and low to narrowest- STATE AND LOCAL G O V E R N M E N T Baa •Moody's Exhibit B -- Part II Date State and local govt. Baa 3/ Corporate Baa 1/ Spread between Aaa and Baa State and Corporate local aovt. (per cent) 1959-60 - High Year end- 1965 1966 - High Low 1967 - High Low 5.36(2/12/60) 5.04 6.18(12/30) 5.05(1/14) 6.97(1/29) 5.81(4/14) 6.82 16 6.80 23 6.79 30 6.79 Sept. 6 6.80 13p/ Note: For footnotes see Exhibit A. j>/ Preliminary. 1968 - Aug. 4.46(1/7/60) 3.79 4.55(8/25) 3.78(1/20) 4.73(12/28) 3.85(4/13) .84 .31 .81 .31 .82 .63 4.70 4. 70 4.80 4.80 4.80 .82 .82 .82 .84 .85 1.08 .39 .62 .31 .81 .37 .70 .65 .55 .55 .55 EXHIBIT C, Port I S H O R T - A N D INTERMEDIATE-TERM INTEREST RATES GOVERNMENT Weekly 6 - M O N T H BILLS Market Yields 3-5 YEAR ISSUES F.R. DISCOUNT RATE New York 3-MONTH BILLS M a r k e t YieIds 1 1 •' I I 1 I 1 11 I I I 1 ri I I I I I I I 1963 1964 1965 I I I I I I I III I i i i i • , i i i i i ill i i i i i i i i • ! 1966 1967 1968 Exhibit C -- Part II Discount rate 1/ 1959-60 - High Year end - 1965 1966 1966 - High Low 1967 - High Low 1968 - Aug. Sept. 4.00 4.50 4.50 4.50 4.50 4.50 4.00 5.50 5.50 5.25 5.25 5.25 3-month bills 1J | 1 4.59(1/8/60) 4.47 4.80 5.52(9/23) 4.39(6/24) 4.99(12/29) 3.41(6/9) 5.11 5.15 5.18 5.21 , 5.28 Yields 6-month # bills ZJ (per cent) 5o 07(1/8/60) 4.66 4.92 5.92(9/23) 4.53(6/24) 5.50(12/12) 3.74(6/2) 5.29 5.24 5.26 5.22 5,31 3-5 year issues U Spread between yields on 3-mo. bills and yields on 6-mo. bills|3-5 vr. issues 5.00(12/24/59) 4.90 4.86 5.83(9/2) 4.80(4/8) Preliminary. 1.81 .52 .09 .78 .43 .06 .12 .01 5.80(11/10) .62 .01 1.61 .02 5.35 5.36 5.33 5.30 5.36 .18 .24 4.36(4/7) 2/ Harket'yieId; weekly averages computed from daily closing bid prices. 2/ .79 .19 .09 .08 .01 .03 Series of 3-5 .21 .15 .09 .68 EXHIBIT D, Port 1 S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES, B A N K S AND OTHER PRIVATE B O R R O W E R S PRIME RATE r FINANCE C O M P A N Y PAPER Directly placed F.R. DISCOUNT RATE FEDERAL FUNDS 1963 1964 1965 1966 1967 Exhibit D — Prime rate 1/ Date Part II Finance company paper 2/ Spread between 3-mo. bills and Federal funds 3/ finance co. paper (per cent) 5.00 4.50 5.00 6.00 5.00(3/4) 6.00(12/29) 5.50(12/1) 1959-60 - High Year end- 1964 1965 1966 1966 - Low 1967 - High Low 1968 - Aug. 16 23 30 Sept. 6 13 £ r 6.50 6.50 6.50 6.50 6.50 5.13(1/22/60) 4.06 4.75 5.88 4.75(1/7) 5.75(1/6) 4.38(6/23) 5.75 5.75 5.63 5.63 5.63 4.00(5/13/60) 4.00 4.63 5.63 з.55(1/21) и , 6.13 5.95 5.93 5.94 5.70 - 1.02 .23 .28 1.08 .20 1.33 .21 .64 .60 .45 .42 .35 rate is that a £ £ * * z* 4- o f onrl 1/ weeKiy race snown ib luch. — r , , . ... . - charged by large banks on short-term loans to business borrowers of the highest 2/ ~~ 3/ - Average of daily rates published by finance companies for directly placed paper for varying maturities in the 90-179 day range. ^ Weekly average of daily effective rate, which is the rate for the heaviest volume of purchase and sale transactions as reported to the Federal Reserve Note!-Highs N and Y lows are for individual series and may be on different dates for different series. For spreads, high refers to widest, and low to narrowest. £/ Preliminary. EXHIBIT E, Port 1 STOCK MARKET 1941-43 ov'eroge=10 PRICES 100 ^ STOCK MARKET CREDIT CHANGE IV (SERIES i Millions el tk«r«t VOLUME YIELDS 1964 1965 1966 1967 1968 Exhibit E — Date 1961-62 - High Low 1966 - High Low 1967 - High Low 1968 - July Aug. Stock price index 1/ Common stock yields 2/ (per cent) Part II Stock market customer credit Trading Customers Bank volume 3/ debit bal- loans to Total (millions "others"5/ ances 4/ of shares) (In millions of dollars) 72.04(12/8/61) 52.68(6/22/62) 93.77(2/11) 73.20(10/7) 97.26(1/6) 83.18(1/6) 2.82 3.96 3.01 3.97 3.01 3.58 10.1 2.4 10.7 5.0 12.3 6.9 5,602(12/61) 4,424(1/61) 7,997 7,302 10,347(12/67) 7,345(1/6) .00.30 2.98 3.09 14.3 10.9 11,270 n. a. 98.11 4,259(12/61) 3,253(1/61) 5,835 5,169 7,883(12/67) 5,280(1/67) 8,854 n. a. 1,418(5/9/62) 1,161(3/8/61) 2,241(7/6) 2,097(12/14) 2,057(11/1) 2,055(1/25) 2,424 n. a. r/2,487 9.6 3.08 1968 - Aug. 30 98.86 n. a. r/2,494 11.4 3.01 L01.20 Sept. 6 n. a. 12.8 3.02 13p/ LOO.86 n.a. Not Available. £/ Preliminary, r / R e v i s e d . 1/ Standard and Poor's composite index of 500 common stocks, weekly closing prices, 1941-43=10. ~ Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are for Friday's data only. . 1 2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing ~ prices by Federal Reserve. Yields shown are for dates on which price index reached its high 3/ ~~ 4/ "" 5/ ~ Averages of daily trading volume on the New York Stock Exchange. Year-end figures are averages of daily figures for the year. End of month figures for member firms of the New York Stock Exchange which carry margin accounts excludes balances secured by U. S. Government obligations. Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying U.S. Government securities. Weekly reporting banks account for about 70 per cent of loans to others. For further detail see Bulletin. FEDERAL NATIONAL ' SECONDARY MARKET MORTGAGE ASSOCIATION ^ OPERATIONS ',1 .'loll'if % 400 " • ' OFFERINGS 300 1 PURCHASES V SALES 1962 1968 Exhibit F - Part TT Purchases Estim,ited offerings to FNMA by Immediate I Standby Total FNMA purchase I commitment Sales by FNMA (In millions of dollars) 1967 - June July Aug. Sept. Oct. Nov. Dec. 1968 - Jan. Feb. Mar. Apr. May June 229.1 232.8 261.0 168.2 260.6 228.8 232.6 260.6 167.9 260.1 .3 26.9 .4 .3 .5 .6 198.3 192.4 215.1 186.9 ,2 324.1 324.7 2.8 206.6 209.4 .5 212.0 212.6 .4 164.0 164.4 .7 212.2 212.9 4.2 210.1 214.3 1.2 103.6 104.8 (See Exhibit P Part III) 81.2 6.0 .9 , .8 .2 .3 .1 'wma 200.1 274.9 245.2 188.9 185.7 176.7 r/172.8_ Exhibit F - Part III FNMA Weekly "Auction" Results Week ended 'May Amounts (In millions of dollars) Accepted Offered 9061 total Total Day Month Year ' 6 13 20 27 "173 .'4 168.8 176.8 206.8 40.3 49.9 49.5 51.6 19.7 15.6 10.5 6.1 18.3 27.4 28.3 35.5 2.4 6.9 10.7 10.0 June 3 10 17 24 231.8 179.7 145.3 135.4 60.7 74.6 80.2 80.4 7.7 14.4 15.1 15.9 40.0 44.8 49.8 50.4 July 1 8 15 22 29 148.0 157.2 172.2 158.6 148.4 89.0 88.5 80.4 65.8 70.& 16.3 11.2 9.6 8.6 7.1 121.8 108.4 93.1 99.3 66.3 60.2 54.7 51.1 9.8 9.8 10.3 7.5 Aug. 5 • 12 19 26 | Yields - 90- 6- Day Month [ 1 1 Year 7.12 7.11 7.39 7.38 7.49 7.47 7.54 . 7.54 7.07 7.33 7.40 7.49 13.1 15.4 15.3 14.1 7.63 7.68 7.69 7.62 7.65 7.71 7.69 7.60 7.59 7.64 7.63 7.55 60.5 65.9 57.3 47.4 53.7 12.2 11.3 13.5 9.8 9.2 7.51 7.42 7.36 7.33 7.32 7.48 7.40 7.35 7.32 7.33 7.47 7.37 7.32 7.31 7.33 49.7 43.4 37.4 37.0 6.8 7.0 7.0 6.6 7.31 7.29 7.27 7.25 7.32 7.31 7.27 7.24 7.29 7.25 7.23 7.31 Sept. 3 90.0 51.7 5.7 37.6 8.3 7.26 7.23 7.21 10 (50.0) 7.21 Note* Total accepted shown in parenthesis fortiidstrecent week indicates FNMA announced limit before the "auction" date. Average secondary market yields are gross -- before deduction of 50 basis point fee paid by investors to services. They reflect the average accepted bid price for Governmentunderwritten mortgages after allowance for FNMA commitment fees and FNMA stock purchase requirements, assuming a prepayment period of 15 years for 30-year loans. One-year commitments are for new homes only. r/ Revised. EXHIBIT YIELDS O N NEW AND 1964 SEASONED CORPORATE G, Port 1 BONDS 6.5 A d j u s t e d to Aaa Basis N E W ISSUES CO 5.5 5.0 SEASONED Aaa Moody i 4.5 1965 1966 4.0 1967 1968 Exhibit G - II Yields on New Corporate Bond Issues Adjusted to an Aaa basis Number of Monthly averages: 1968 - Jan. Feb. Mar. Apr. May June July Aug. 13 13 10 7 11 13 7 8 Am ' t. of issues Average included (mill. yield (per cent) of dollars) 567.0 564.0 350.0 415.0 W 531.0 872.0 552.0 267.0 , 6.24 6.29 6.56 6.52 6.66 6.65 6.54 6.26 Number |Am't. of issues Average of included (mill. yield issues 1 of dollars) (per cent) Aug. 2 9 16 23 30 Sept. 6 13 £ f 1 1 1 3 2 12.0 15.0 110.0 67.0 75.0 6.36 6.46 6.13 6.26 6.36 2 2 45.0 150.0 6.40 6.33 Weekly averages: 6.83(5/24/68) High 6.13(8/16/68) Low Note: Aa, and A by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline and foreign companies, and bonds guaranteed by the Federal Government) weighted by size of offering. Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual reoffering yield the excess of the weekly average yield for seasoned bonds of the appropriate industry-quality group over the composite average for seasoned Aaarated bonds (Moody's). Averages considered unrepresentative because of special characteristics of the offerings included are denoted by an asterisk. j>/ Preliminary. tb Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) Capital January February March April May June July August September 1967P/ I*** 1968p/ 1,706 1,568 1,740 1,648 1,398 2,317 1,302 1,237 2,446 1,133 1,147 1,384 1,482 1,196 1,438 1,383 1,824 2,335 1,973 1,474 2,611 1,553 1,058 2,364 1,298 1,117 1,354 1,229 1,497 1,111 1,193 901 1,141 e/2,225 e/1,500 2,457 2,407 1,723 1,039 1,670 1,382 _g/l,400 e/1,700 e/1,500 943 858 1,330 701 773 1,020 2,289 1,467 2,336 829 1,085 1,635 974 1,,400 1,,182 755 969 940 5,014 5,542 e/5,450 5,364 6,058 6,584 6,092 4,985 4,975 4,091 3,550 3,665 3,769 4,600 4 : ,119 3,,837 3 j,131 3 a,556 2,911 3,235 2,494 2,664 10,556 e/16,456 11,421 18,007 24,098 9,959 14,050 17,601 7,434 .2,034 7,,956 11,,087 14,,643 6,146 8,640 11,304 e/1,725 October November December 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year Excluding finance companies 3/ 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 4,943 5,265 Year e/ State and local i/ 1967P/ 1968P/ Estimated by Federal Reserve. 5,207 5,913 6,338 5,657 4,924 4,884 3,969 ] 3,188 23,115 17,269 1,188 858 865 Exhibit I New Coroorate Security Issues, Type of Issue and Issuer (In millions of dollars) Quarter Total Month Net proceeds Gross proceeds for new capital for new capital 1/ 2/ and Common Memo: Bonu s Other Mfg. Public CommuniForeign Publicly Privately and Utility cations Issuers pfd. issues Offered Placed stock included 1,382 543 997 2,442 60 390 1,811 3,263 1,228 548 3,014 1,268 65 726 1,465 4,017 1,976 595 2,792 1,219 234 678 1,551 4,604 2,040 269 1,255 2,527 93 1,051 2,137 3,107 1967 - I II III: IV 5,464 6,208 6,833 6,294 1968 - I II 5,178 5,705 2,465 3,105 1,724 1,644 989 956 313 172 1,855 1,653 1,394 1,201 411 529 1,356 2,159 1967 - Aug. Sept. Oct. Nov. Dec. 2,481 1,763 2,409 1,500 2,385 1,813 902 1,375 645 1,087 412 647 566 551 1,020 250 214 469 304 278 13 8 34 19 30 1,229 637 —906 512 1,109 509 265 573 404 278 356 200 119 82 68 313 619 690 469 - 881 903 796 766 719 1,046 1,340 1,260 615 546 585 593 438 521 685 600 600 322 226 441 271 300 385 450 350 16 61 236 31 89 52 n.a. n. a. 537 556 761 353 550 750 965 600 417 546 431 178 549 474 200 365 186 147 78 189 103 237 235 70 566 321 469 663 622 874 825 465 1,771 1968 - Jan. 1,607 Feb. 1,800 Mar. ,1,428 Apr. + 1,867 May 2,418 June July e/ 2,310 Aug. e/ 1,565 ; ' r « e/ Estimated by Federal Reserve, n. a. Not available. 1/ Gross proceeds exceed net proceeds by the cost of flotation. 2/ For total see Exhibit H; other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. SOURCE: Securities and Exchange Commission. Exhibit J Other Security Offerings (In millions of dollars) Gross Long-term 1/ F e d e r a l Agency 3/ F o r e i g n Government 2/ 1967 "Tofifl ^^967 im. January February March April "May June July August September October November^ December Jan. - June 127 49 107 75 142 7 307 Year January February March AprilMay June July August September October. November December 223 27 13 170 22 586 193 66 142 18 629 12 40 40 66 69 .76 72 7 50 23 74 68 303 1,656 597 196 999 550 1,370 225 744 779 4,667 1,251 783 750 650 810 650 407 250 599 708 710 612 4,894 503 410 392 699 1,030 1,084 799 400 450 800 239 3,034 8,180 6,806 New short-term 4 / F e d e r a l Agency State and local Government 5/ -179 490 103 179 300 -552 436 39 387 89 -454 -593 -319 -594 -604 -559 580 681 827 3 109 121 462 515 490 , 27 93 -334 -187 -378£/ 457 -158 -103 20 539£/ -262 270 593 1,407 -161 32 606 -48 414 573 503 49 36 -570 -514 1,700 1,619 428 1,147 439 Mm Jan. - July 1966 Year Reserve. 1,127 '' .531 660 3/ 308 -24 450 718 85 284 -590 -270 -652 -555 -283 219 1,231 310 H. 14 Exhibit K Large Long-term Public Security Issues for New Capital (Other than U. S. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) Comotiite Bonds (other than Convertible bonds i Total 1967 - July Aug. Sept. Oct. Nov. Dec. 1968 - Jan. Feb. Mar. Apr. May June July Aug. 1,340 1,705 794 1,458 826 978 904 757 788 696 1,009 1,461 1,243 665 890 1,288 473 897 461 460 652 575 415 500 656 1,161 650 405 State and local governments Stocks 133 67 65 276 215 81 85 77 238 73 70 180 98 117 317 350 257 285 150 437 168 105 135 723 283 120 495 143 483 473 847 505 865 633 785 591 736 794 571 758 864 1,165 Other 7J 85 V 221 400 50 845 627 1,095 389 1,030 370 145 500 . 920 70 Large Individual Issues Offered Sept. 3 through Sept. 13, 1968. Issuer C9TP9m« Condec Corporation Michigan Consolidated - Gas Company South Carolina Elec.& Gas Miles Laboratories Natomas Kane-Miller Corporation Tenneco Inc. Metropolitan Edison New England Tel. & Tel. Type 2/ Amount (millions of dollars) Maturity Coupon rate or net interest cost Offering yield Rating Conv. sub. debs . 20.0 1993 5 5.00 1st mtg. bds. 25.0 1st & ref. mtg bds. 20.0 Com. stk. 22.5 Com. stk. 15.0 Com. stk. 15.0 1st mtg. p,l. bds. 60.0 1st mtg. bds. 31.0 Debs. 125.0 1993 7 6.80 A 1998 6-1/2 6.50 A 1988 1998 2008 7 7 6-3/8 7.00 6.85 6.35 Baa A Aaa G.O. G.O. G.O. G.O. G.O. G.O. G.O. 1977-81 1970-83 1969-78 1970-2007 1970-93 1970-94 1970-94 4.30 4.06 3.83 4.56 4.89 4.60 4.23 B State & local Government Jacksonville, Florida... Portland, Oregon State of Ohio Columbus, Ohio Philadelphia, Pennsylvania Fairfax County, Virginia Mecklenburg Co., N.C. 30.0 12.5 100.0 10.0 30.0 12.4 20.3 4 00-4.25 3.20-4.20 3.00-3.95 3.25-4.70 3.50-5.00 3.40-5.20 3.20-4.25 Aa Aa Aa Aa Baa-1 Baa Aa Large Individual Issues Offered Sept. 3 through Sept. 13, 1968. (Cont'd) Issuer Type 3/ Amount (millions of dollars) Maturity Coupon rate or Offernet intering yield est Cost Rating State & local Govt, (Cont'd) State of Oregon State or Oregon State of South Carolina Ardmore Development Authority, , Oklahoma Ardmore Development Authority, Oklahoma G.O. G.O. G.O. Rev. -Rent. Rev. -Rent. ; 10.0 25.0 10.5 1971-98 1982-84 1970-83 4.28 4.20 3.90 3.35-5.50 3.10-4.25 3.15-3.90 59.0 1993 n. a. 5.50 14.0 1971-78 n.a. 4.40-5.00 Aa Aa Aaa -- — Other NONE * V Rights offering. Includes corporate and other security offerings of $15 million and over; State and local security offerings of $10 million and over. If Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. 3/ In the case of State and local Government Securities, G.O. denotes general obligations; Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut.; revenue bonds secured only by income from quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-R6nt.revenue bonds secured solely by lease payments. -Z-! H. 14 Exhibit L Forthcoming Large Long-term Public Security Offering for New Capital (Other than U.S. Treasury) 1/ Expected Proceeds from Forthcoming Large Issues (In millions of dollars) During month following date shown State and Corporate Other 2/ local govt. 1967 - July 31 Aug. 31 Sept.30 Oct. 31 Nov. 30 Dec. 31 1968 - Jan. 31 Feb. 29 Mar. 31 Apr. 30 May 31 June 30 July 31 1,261 694 534 1,357 826 968 531 873 758 1,103 1,193 1,068 619 512 783 768 505 865 633 449 683 494 695 485 597 1,071 100 65 50 845 402 60 130 15 45 500 75 70 Corporate 1,576 1,335 1,090 2,694 2,129 1,892 736 1,105 935 1,612 1,403 1,380 679 Subsequent to date shown State and local govt. 575 903 889 743 1,684 1,076 937 1,079 624 1,069 640 1,042 1,307 Other 2/ 150 159 126 260 875 502 75. 265 125 60 515 110 85 Forthcoming Large Offerings as of September 13, 1968. Type Issuer Corporate Eckerd Drugs Fibreboard Corporation General Tel. of Michigan New York State Elec. & Gas Belco Petroleum Corporation Allegheny Airlines Harris Trust & Savings Bank Commonwealth Edison Cleveland Elec. Illuminating Co. Transcontinental Gas Pipeline Detroit Edison Columbia Gas System Consolidated Edison of New York Jersey Central Power & Light Co. Wisconsin Public Service Chesapeake & Potomac Tel. Co. of Maryland Northern Indiana Public Service Company Conv. sub. debs. Conv. debs. Debs. 1st mtg. bds. Conv. debs. Conv. debs. Conv. cap. notes l-s£~mtg. bds. 1st mtg. bds. Debs. 1st mtg. bds. Debs. 1st mtg. bds. 1st mtg. bds. Pfd. stk. Amount (millions of dollats) 15.0 30.0 22.0 30.0 25.0 15.0 25.0 75.0 50.0 50.0 150.0 40.0 60.0 26.0 15.0 Approximate date of offering September September September September September September September September September September September October October October October Debs. 75.0 October 1st mtg. bds. 20.0 October . 16 17 17 18 19 23 23( r t s . exji) 24k 24 25 26 3 8 8 8 L-2 Forthcoming Large Offerings as of September 13, 1968. (Cont'd) Issuer Corporate (Cont'd) National Industries Alexander's Dept, Stores King Resources Computer Applications, Inc. *Penzoil United *Ceco Corporation Canal Electric *Eastern Airlines Type Conv. sub. debs. Com. stk. Conv. sub. debs. Conv. debs. Debs. Conv. debs. 1st mtg. bds. . Conv. sub. debs. Amount (millions of dollars) 1 25 .0 20 .0 20 .0 15 .0 75 .0 15.0 19 .0 50 .0 Approximate date of offering Indefinite Indefinite Indefinite Indefinite Indefinite Indefinite Indefinite Indefinite State & local Government Alabama Highway Authority Rev.-S. T. Cleveland, Ohio G.O. Los Angeles, California G.O. Beauregard Parish, Louisiana Rev. -Rent. Houston, Texas Rev. -Ut. New Orleans, Louisiana G.O. .State of Pennsylvania G.O. Southeastern Pa. Transportation Authority, Philadelphia Rev. -Rent. *State of Hawaii G.O. ; Kings Co., Washington G.O. Pennsylvania State Highway & Bridge Authority Rev. -Q. -Ut. Maryland State Roads Comm. Rev. -Q. -Ut. Detroit, Michigan . G. 0. *Genesee Co., Michigan G.O. Los Angeles Flood Control Dist., California G.O. Seattle, Washington G.O. Washington Sub. Sani. Dist., Md. G.O. State of Ohio G.O. *State of Alaska G.O. *Alachva Co, Sp. Tax Sch. Dist.#!, Rev.-S.T. Florida • San Frahcisco B.A.R.T. G.O. SanDiego, California Rev. -Ut. *Canton, Ohio Rev.-Rent. Rev.-Rent. Port of Astoria Tampa Hillsborough Co. Expressway Authority Rev.-Q.-Ut. Kentucky Turnpike Authority Rev.-Q.-Ut. Hillsborough Aviation Auth., Tampa, Florida Rev.-Rent. Eelco Petroleum Corporation Conv. debs. 25 .0 22 .0 25 .2 105,.0 250,.0 20,.0 88.5 September September September September September September September 17 17 17 18 18 18 18 55..0 38.,0 39.,1 September September September 19 24 24 75. 0 225. 0 15. 0 23. 3 September September October October 25 1 1 45. 0 10. 0 22. 0 25. 0 10. 5 October October October October October 1 1 8 8 9 12. 8 70. 0 10.0 45. 0 115. 0 October October October October October 10 10 10 46. 0 120. 0 Indefinite Indefinite 41. 0 25. 0 Indefinite Indefinite - ? Forthcoming Large Offerings as of September 13, 1968 (Cont'd) Issuer Type Amount (millions of dollars) 4 Approximate date of offering Other World Bank *FNMA * Province o f New Brunswick Canadian Utilities, Ltd. Bonds Debs. S.F. debs. S.F. debs, w/wts. 250.0 250.0, 20.0 15.0 September 16 September 19 September 19 Indefinite *--Included in table for first time. 1/ Includes corporate and other issues of $15 million and over; State and local Government issues of $10 million and over. " 2/ Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. Exhibit M- Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Date Amount (millions of dollars) Issuer and Description of Issue A. May 15 -20.0 May 21 25.0 • May 28 Public Offerings Sold: May 1 through Sept. 13, 1968. Montreal Catholic School Commission—7-1/2% S.F. debs, maturing 1993, reoffered to yield 7.88%. Newfoundland and Labrador Power Commission—7-3/4% S.F. debentures, maturing 1993, reoffered to yield 8%. Canada, Government of, 6-7/8% bonds maturing 1988, reoffered to yield 6.90%. 100.0 July 23 20.1 Province of Ontario, 7-1/8% debentures maturing 1998, reoffered to yield 7.19%. Husky Oil Canada Ltd. July 25 25.0 Province of Nova S c o t i a — debentures. July' 10 75.0 B. Indefinite - September 19 ** *** - 15.0 20.0 Prospective Offerings Canadian Utilities, Ltd., -- S.F. debs, with warrants. Province of New Brunswick, S.F. debentures. Included in table for first time. Issues sold to investors outside Issue subject to interest equalization tax. M-2 PART II: Date Reported 6/68 Private Placements -- Reported May 1 through Sept.13, 1968. Amount (millions of dollars) Issuer and Description of Issue 29.4 Seaboard Finance Co. of Canada, Ltd., Sr. notes maturing 1983, take down at various dates through 1969. 7/1/68 25.0 Argentina, Government of — June, 1973. 7/1/68 1.4 7/1/68 .5 external bonds maturing British Columbia Forest Products, Ltd. -- 20 year secured notes. British Columbia Forest Products, Ltd. — secured notes. 8/20/68 75.0 Bell Telephone Company of Canada -6.90% 1st mortgage bonds maturing 1998. 8/21/68 40.0 Placer Development Ltd., Vancouver 9/9/68 2.0 10 year Caribbean Finance Company (Puerto Rico) Senior notes maturing July, 1983. NOTE: For retrospective data on aggregate foreign corporate and government security offerings in the United States see Exhibits I and J. There is no simple relationship between the data shown in the Exhibit and that shown in Exhibits I and J because the latter includes privately placed securities in the period in which funds are actually taken down but only in the amount of takedown while the placements shown in this exhibit are included when reported, frequently with little or no information concerning timing of takedown. Full or partial takedown may take place both prior and subsequent to the date a placement is reported. z %
@FedFRASER