Full text of H.16 Capital Market Developments : August 29, 1966

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Not for Publication?^'^^^ 1 ^'^
library

f

I
I

1

2
Fi Dt.nAL

1

SIX

MONTHS

August 29, 1966

I

#66

l

R E S ^ v c SANK 1

MV ••'1CV.MOHD

/CAPITAL M A R K E T S / D E V E L O I M E N T S

1

L—

IN

THE UNITED STATES

Corporate and municipal bond markets. New security offerings
of corporations this week will total more than the average for such
issues over the past year. Almost four-fifths of the volume is
accounted for by the Standard Oil of Indiana debenture offering ($175
million). The new municipal volume will be relatively light.
Long-term Public Security Offerings 1/
(In millions of dollars)
Corporate
State and local Goverment
New Capital I Refunding New Capital| Refunding
Sold:
52 week avg.

187

207

Aug. 19
Aug. 26

270
175

205
150

225

130

Scheduled:
Sept. 2

1/ Federal Reserve estimates based upoh published reports of issues
sold and scheduled for offering; corporate rights offerings are
included as of the date subscription rights expire.

New and seasoned corporate bond yields advanced further
last week. Southern California Edison Co. 1 s $80 million bond
issue received only a fair initial reception at its reoffering
yield of 6.05%. Underwriters terminated price restrictions last
week on three slow-moving issues; free market trading resulted in
upward yield adjustments of 18 to 37 basis points.
Municipal yields continued to advance last week, while
new issues were accorded a good reception by investors. The Blue
list total of dealer's advertised inventories declined to less
than $400 million.




H. 14

Yields in Security Markets
Change from
preceding week

Level Latest Week
High-Grade
Notes and Bonds
Corporate
New
Seasoned

5.92
5.37

+24
+2

4.87
5.79

+18

4.04
4.24

+10
+4

5.58

+45

5.01
5.40

-5
+3

U.S.,Government
Long-term
3-5 year

+6

State and loc. govt.
Moody's Aaa
Std. & Poor's high grade
Money Market
Federal funds
Treasury bills
3-month
6-month

Corporate Bonds Still in Syndicate
(In millions of dollars)

Offered

Amount
(millions of $)
80.0

8/24

Southern California Edison Co.,
1st mtg. bds., 6-1/8, 1991

Reoffering
Yield

Rating

6.05

Aa

Blue List of Municipal Dealer's-Advertised Inventories
(In millions of dollars)
Latest Date
390

(8/24)




End of Previous Week
404

Recent High
636

(2/17)

Est. proportion sold
1/2

H. 14

Mortgage yields and conventional mortgage loans. Yields on
5-3/4 per cent, 30-year, FHA-insured mortgages sold in the secondary
market continued upward in July. The average of 6.51 per cent was 6
basis points higher than in June and 105 basis points above the
plateau which had still been prevailing at this time a year earlier.
Yields on comparable 25-year, FHA-insured mortgages also rose in
July--to 6.58 per cent.
While the increase in contract rates for conventional first
mortgages for home purchase has been substantial since early last
autumn,the amount of rise thus far has been less pronounced than for
FHA-insured mortgage yields according to the Federal Home Administration.
In July conventional interest rates reached 6.45 per cent in the case
of loans for new home purchase and 6.55 per cent in the case of
loan to purchase existing homes, both about 65-70 basis points higher
than a year earlier.
Offering yields on new corporate bonds rose sharply further
in July. Consequently, the spread between such yields and those on
30-year, FHA-insured mortgages was reduced again, to 89 basis points.
This compared with a recent narrowing to 77 basis points -last December
and a temporary broadening to more than 100 basis points during the
previous May and June.
Nonrate terms for conventional home loans were relatively much
less liberal for loans to purchase new homes than for loans on existing
homes according to data available from the Federal Home Loan Bank Board
for June. F6r loans on existing homes, maturities in June declined
to an average of 20.0 years (compared to 20.6 years a year earlier) and
loan-to-value price ratios dropped 70.6 years, nearly a low for the
series which began in late 1962. For new home loans, by contract,
loan-to-price ratios turned upward again, along with maturities in
June", and, moreover, loan amounts reached a new high of $19.6 thousand-13 per cent above the average a year earlier.
Stock Market.
Common stock prices declined sharply last
week in active trading. Standard and Poor's 500 stock index fell
3.21 points for the week--to 76.41. Trading volume averaged 8.1
million shares a day.
More detailed information concerning recent capital market
developments can be found in the attached exhibits.

Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




L O N G - T E R M B O N D YIELDS, H I G H - G I A D !

5.5

5.0

CORPORATE A u
4.5

4.0

U.S. G O V E R N M E N T

3.5

3.0
STATE AND LOCAL GOVERNMENT A n

2.5
1961

1962

1963
Exhibit A

Corporate

Date

Aaa 1 /

1959-60 - High
1962-63 - L o w
1965 - L o w
1966 - High
- Low

Aug.

29
5
12
19
ik/

1965

1964

U.S. G o v t ,
long-term 2/

—

1966

Part II

State and
local
government
A a a 3/

Spread b e t w e e n
U . S. G o v t , and
Corporate
State and
Aaa
local A a a

.59 (8/5/60)
. 2 1 (12/27/63)
.22

4 . 6 1 (1/29/60)
4.19 ( 3 / 2 9 / 6 3 )
4.41 ( 3 / 1 2 )

3 . 6 5 (9/24/59)
4.42 ( 1 / 6 / 6 0 )
3.85 ( 1 2 / 2 6 / 6 2 ) 2 . 8 8 ( U / e / 6 2 )
4.13
(6/25)
2 . 9 4 (a/31)

5.37 (8/26)
4.73(1/7)

4.87(8/26)
4.42(1/21)

4.04(8/25
3.39(1/13)

.54
.14

5.22
5.24
5.25
5.35
5.37

4.72
4.73
4.73
4.81
4.87

3.78
3.79
3.87
3.94
U.OU

.50
.51
.52
.54
.50

. 9 2 (4/22/60)
. 8 0 (1/5/62)
.94
1.19
.83

.94
.94
.86
.87
.83

5/ Weekly average of dally figure*• Average term of bonds included is 22-24 years,
TJ Weekly average o f daily figures# The series includes bonds due or callable i n 10 years o r m o r e .
¥ / Thursday figures. Only general obligation bonds are included; average term is 20 years,
Sote.—fllgns and lows are for individual series and may be on different dates for different
series. F o r spreads, high refers to widest, and low to narrowest.




(IHIIir I. fori I
LONG-TERM BONO YIELDS, LOWER GRADE

—

5.5

C O R P O R A T E Baa

S T A T E A N D L O C A L G O V E R N M E N T Baa

1961

1963

1962

1964

1965

1966

Exhibit B -- Part II

Corporate
Baa JL/

Date

State and
local govt.
Baa I f

Spread between
Aaa and Baa
State and
Corporate
local govt.

(per cent)
1959-60 - High
Year end - 1962
1964
1965
1966 - High
Low

Aug.

Motel

5
12
19 ,
26B./

5.36 (2/12/60)
4.93
4.80
5.04
5.90(8/26
5.05(1/14)

.84
.70
.37
.31
.54
.31

1.08

3.57
3.51
3.79
4.55(8/25
3.78(1/20)

5.75
5.78
5.85
5.90

4.34
4.46
4.50
4.55

.51
.53
.50
.53

.55
.59
.56
.51

for footnotes eee exhibit A.




4.46 (1/7/60)

.63
.52
.39
.62 '
.38

n
SHORT- AND INTIBM1DIATI-T11M INTIB1ST RATKS
GOVERNMENT

f.r Itml

W..kl»

5

4

3

2

1861

1862

1863

1864

1888

1866

Exhibit C -- Part II

Date

1959-60 - High
Year end - 1961
1962
1963
1964
1965
1966 - High
Low

Discount
rate
bill# 2/
It

4.00
3.00
3.00
3.50
4.00
4.50
4.50
4.50

29
5
12
19
26p/

Yield#
6-month
bill# 2 1
(per cent)

4.59 ( W # > ) 5.07 (3/B/60)
2.66
2.90
2.89
2.93
3.52
3.64
3.83
3.93
4.66
4.47
5.06(8/19) 5,40(8/26)
4.39(6/24) 4.53(6/24)

Spread between yield# on 3m a s t h bill# and vield# on
,
6-mo. bill#13-5 vr. issues
,

5.0Q(lZ/aV*»)
3.81
3.41
4.07
4; 07
4.90 .
5.79(8/26)
4.80(4/8)

.79
.24
.04
.13
.10
.19

1.81
1.15
.52
.55
.24
.43

>30
.09

.78
.21

4.50
4.73
4.89
5.25
,16
.52
4.50
4.81
4.99
5.32
18
.51.
4.50
4.87
5.13
5.40
26
.53
4.50
5.06
5.37
5.60r/
31
.55
5.79
4.50
r3?
5,01
•i.4ft
.76
Weekly rate shorn le that In effect at end of period at the Federal Reserve Bank of Mew Y e * ,
Market yield! weekly averages computed from daily oloiing bid prioee, Series of 3-8 year issues
ooosists of selected notes and bonds,
*ote#—Sigh» and lew# are for individual eerie* and may be on differsnt dates for different eerie#*
for spread!, high refers to widest, and low to narrowest.
Aug.

F




SliOliT- A N D I N T E R M E D I A T E - T E R M I N T E R E S T
B A N K S A N D OTHER PRIVATE B O R R O W E R S

RATES,

F.R. D I S C O U N T R A T E

1961

Da te

Prime ra te

1959-60 - High
Year end - 1961
1962
1963
1964
1965
1966 - High
Low

Aug.

y

1962

29
5
12
19
262/

1963
1964
Exhibit D -- Part II

1/

5.00
4.50
4.50
4.50
. 4.50
5.00
6.00 (8/19)
5.00 (3/4)
5.75
5.75
5.75
6.00
6.00

1965

Finance
company
Federal funda 2/
paper
2/
(per cent)

1966

Spread between
3-mo. bills and
finance co. paper

5.13 (1/23/60)
3.00
3.19
3.88
4.06
4.75
5.63(8/19)
4.75(1/7)

4.00 (5/13/60)
2.88
3.00
3.50
4.00
4.63
5.73(8/12)
3.55(1/21)

1.02
.34
.30
.36
.23
.28
.99
.20

5.58
5.63
5.63
5.63
5.63

5.65
5.60
5.73
5.15r/
5.58

.85
.82
.76
.57
.62

Weekly rate shown la that In effeot at end of period. Prime rate la that charted by large banks
on abort-term loans to business borrowers of the highest credit standing.

2 / Average of daily rates published by finance companies for directly placed paper for varying

maturities in the 90-179 day range,
3/ Weekly average of daily effective rate, whioh is the rate for the heaviest volume of purchase and
sale transactions as reported to the Federal Reserve Bank of Hew York*
Notet—-Sighs and low* are for individual series and may be on different dates for different series.
For spreads, high refers to widest, and low to narrowest.




STOCK

MARKET

PRICES

STOCK M A R K E T CREDIT
C H A N G E IN S E R I E S

1

.

VOLUME
i V T V A / ^

1

1

YIELDS

1961

1 II 1 1 II
1 i1 il i i i i i i 1!.1 i1 i1 1 M

l 1 M

1111111M111
1962

1965

1964

1963

1 1 l II

1966

ExhibJLt E -- Part II

Common
Stock price
index 1/

yields 2/
(per cent)

Trading
volume £/
(millions
of shares)

Stock market customer credit
Customers 1
Bank
debit bal
loans to
ances 4/
"others" 5/

Total

(In millions of dollars)
1961-62 - High
Low
Nov. 1963
J u l y 1965
1966 - H i g h
Low

72.04(12/8/61)
52.68(6/23/62)
72.62
84.91
93.77(2/11)
79.62(8/19)

2.82
3.96

10.1
2.4

3.14
3.09
3.02
3. 8 0

5.3
4.1
10.7
5.1

5,60*12/61) 4,259(12/61)
4,424(1/61) 3,253(1/61)
7,298
6,833
7,997
7,726

5,586
4,863
5,835
5,551

1,418(5/9/62)
1,161(3/8/61)
1,712
1,970
2,241(7/6)
2,137(5/27)

8,001r/
5,77 Or/
86.06
3.36
6.4
2,231
6.0
7,871
85.83
3.37
5,668
2,203
6.0
3.45
84.00
5
2,216
3.49
12 83.17
5,7
2,228
3.64
19 / 7 9 . 6 2
6.5
26p 76.41
3.80
8.1
a-fc.—Not available* jg/ Preliminary.
1/ Standard and Poor's oomposite 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 fer
Friday's data only.
tj Standard and Poor's composite stock yield based on Wednesday data converted to weekly eloslag
prices by Federal Reserve, Yields shown are for dates on which price index reached its high
1966-June
July
Aug.

3/ Averages of daily trading volume on the New York Stock Exchange. Yeaxv-end figures are averages of
daily figures for the year*
4/ End of month figures far member firms of the New York Stock Exchange which carry margin account*|
excludes balances secured by U. 3. Government obligations.
5/ 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.




MORTGAGE AND

BOND

YIELDS

HOME MORTGAGES

i

k Aaa C O R P O R A T E B O N D S

Exhibit P

Part II

Aaa Corporate
Conven- Spread between yields
tional
on
conv.
&
mort™5/
25-year 30-year gage* 3 / FHA mort- .
sage,
itf
FHA

m o r t g a g e s 2/

1956
1957 - High
1958 -Low
1959-60 -High
1961-65
High
1966

1966 May
June
July
V

J/

3/

Af
5/
%J

4.68
5.63
5.35
6.24
5.43
6.58
5.72

5.44
6.51
5.70

5.20
6.00
5.55
6.30
5.*0
6.45
6.00

6.37
6.51
6.58

6.32
6.45
6.51

6.30
6.40
6.45

.47
.47
.15
.23
.25
.30
.02

3.08
4.94
3.65
5.25
4.1%
5. 62
4.84

3.08
4.12
3.57
4.61
4.19
5.16
4.74

-.02
-.05
-.06

5.21
5.38
5.62

4.98
5.07
5.16

a5/

Spread between
yields on new corporate bonds and
FHA mtge.ISeasoned
4/
I bonds
.76
1.58
.88
1.69
.77
1.11
.73

1.03
.05
.73
-.16
.35
.09

1.11
1.07
.89

.23
.31
.46

Neither mortgage nor bond yields take Into aocount sei-rioing oosts.whioh are mnoh higher f a r mortgeges
than bonds. Generally, bonds pay Interest send-annually! mortgagee, monthly. Mortgage yields. If
computed as equivalent to a send-annual Interest Investment, x>nld be slightly higher the* given Is
the table.
Based en IBA<-^ield-«ffioe opinions about average bid prices In the private secondary market fbr newhome mortgages for Immediate delivery. Separate data available for 23-year and- beginning July 196 lr—
30-year mortgages with minimum downpaymsnts, weighted by probable voless ef transactions. Yields d e puted by TELL, assuming prepayment period of 12 years for 2 3 — y u a r mortgages and IS years for 3 0 year mortgages. Over the period for whloh they oan be compared, the movement of the two mortgage
yield series has bean similar. Dashad lines Indicate periods of adjustment to changes la contractual
Interest rates.
Based on J U t field office opinion on typioal Interest rates (rounded) on conventional'first mortgagee
prevailing in the market areas of insuring office cities. Beginning with ipril I860, rate relates
only to new-hone mortgages; prior to that date, rate related to both new a s well as existing-ho*
mortgages. Dashed line indicates this change in the series.
IHJL mortgage yield data are for 29-year mortgagee through June 1961; 30-year mortgages thereafter,
See note for JDchiblt Q.
Moody's Investor Service. Monthly averages ef daily data. See Xadxlblt A .




C O N V E N T I O N A L M O R T G A G E TERMS
MONIMtt
MATURITY

L O A N PRICE / RATI O

EXISTING

1964
Exhibit F

__

Part IV

N<sw Homes
Con- Fees &
tract Charges Maturity
Rate (Per
(Years)
cent)
(Per
cent)
2/

Loan/ Loan
Price aot.
ratio (Thous.)
(Per
cent)

5.76
5.77
5.76
5.75
5.75
5.80
5.78

73.9
75.0
73.8
73.7
73.8
74.9
74.0

Exititing Horn
Fees &
tract Charges Maturity
Rate (Per
(Years)
cent)
(Per
cent)
2/

Loan/ Loan
Price amt.
ratio (Thous.)
(Per
cent)

1

1965
June
July
Aug.
Sept.
Oct.
Nov*
Dec;

.49
.55
.50
.56
.53
.54
.58

24.6
25.0
24.5
24.9
24.8
25.0
24.8

17.5
18.3
18.2
18.1
18.3
18.5
18.4

5.86
.49
5.86
.49
5.86
.46
5.89
.47
5.87 . .48
.50
5.91
5.91
.51

20.6
20.6
20.4
20.1
19.9
20.4
20.6

1

72.1
72.5
72.1
71.6
71.3
72.0
72.4

14.3
14.5
14.1
13.7
13.9
13.9
14.5

1966
20.6
73.4
18.0
.49
72.6
14.3
24.6
5.97
18.8
5.97
.51
20.3
73.2
72.0
14.4
24.6
6.01
.53
20.9
74.3
18.9
72.5
14.7
24.7
6.09
20.6
73.9
.54
14.5
18.2
72.2
24.6
6.16
.56
20.6
73.4
19.2
71.8
14.7
24.7
20.0
70.6..
$
+
0
2
.
,
6.18
.47
—
1
W
.
.57
24.8
,
74.4
19.7
Junt
( \J Compiled by Ttltnl Horn* LOAD. Bank Board LA cooperation with Federal Deposit Insurance Corporation,
are weighted average# based en probability sample survey of characteristic# of conventional first
mortgagee originated by major institutional lender groups, (including mortgage companies) for purchase
of single family homes. Data exclude loans for refinancing, reconditioning, or modernisation;
donstruetlon loans to home builder#; and—in this exhibit-—permanent loans which are coupled with
construction lose# to owner-builders. Data are still in a developmental stage and may reflect
seasonal influences which cannot yet be measured because the series go back only to end of 1902*
Belated series on conventional mortgage rates only, based on unweighted opinions of regional-office
directors of the federal Housing Administration, are available somewhat sooner then the results of
fHLBB-TDIC survey, m d are included—in the case of new home mortgage rates—in exhibit T, Parts I
Jan*
Feb!
Mar.
Apr.
May

5.81
5.85
5.90
5.99
6.02

.51
.55
.56
.57
.57

7j fees end charges—expressed as a percentage of the principal mortgage amount—Include loan oomissions,
fees, discounts, and other charges which provide added income to the lender end are paid by the
borrower. They exclude any closing costs related solely to transfer of property ownership.




1

YIELDS O N

NEW

AND

SEASONED

CORPORATE

BONDS

NEW

ISSUES

SEASONED

1962

1963

1964
Exhibit G

Yields

on New Corporate Bond

Number Aa't
of
issues
Monthly
1965

1966

of

Included

issues
(mil.

of dollars)

Aaa

1965

- Part

II

Issues Adjusted

to an Aaa basis
Number Am't

Average

of

yield
(per cent)

issues

of

Issues

Included

(mil.

of dollars)

Average
yield
( p e r cent).

averages:
- Oct.

108.0

4.69

50.0

5.36

Nov.

267.0

4.72

46.0

5.34

80.0'

5.43

Dec.

212.0

- Jan.

300.0

4.84

Feb.

304.5

4.98

Mar.

5 13.0

5.13

Apr.

4.85

452.3

5.08

May

341.0

5.21

July

596.0
155.0

5.38
5.62

370.0
July

Aug.

5.32

50.0

5.64*

90.0

5.63

65.0
280.0

5.62
5.58

Aug.
Weekly

145.0

averages;
High

5.63

(7/15)

4.82

(1/7)

80.0

5.65r/
5.92

Sept.

Hotel Averages of offering yield# on *11 n e w issues of publicly offered oorporate bonds rated A a a . A *
A. by Moody's Investors Service (except serial and convertible is sues, offerings of natural gas pipeline
and foreign companies, and bonds guaranteed by the Federal Government) weighted by else of offering.
Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from t h e aotual
reoffering yield t b excess of the w e e k l y average yield f o r seasoned tends of the appropriate industryquality group over t h e composite a v e n g e f o r seasoned Aaa-rated bonis (Moody's). Averages considered
unrepresentative because of special characteristics of the offerings included are denoted by a n asterisk;




Exhibit H

H. 14

Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

New Caoital
1966

C o m orate
1965

State and local 2/
1966
1965 £ /
1964

1964

January
February
March

1,302
1,237
2,446

795
746
1,197

938
700
778

2/1,183
£/
900
E./ 868

804
872
904

947
776
810

April
May
June

1,553
1,058
2,364

1,152
1,691
1,946

2,237
1,095
1,405

|> / 1 , 1 8 6
£/
918
2/1,094

826
924
972

1,242
667
903

e/1,245
e/1,600

1,290
850
1,392

812
680
1,130

e/
e/

986
648
966

906
780
892

924
1,325
1,496

953
669
1,642

794
1,021
754

801
529
948

|

4,985
4,974

2,738
4,789
3,533
3,745

2,416
4,738
2,621
3,264

P/2,952
EL/3,197

2,580
2,722
2,600
2,569

2,533
2,811
2,578
2,278

;
*
%

9,959

7,527
11,060
14,805

7,153
9,775
13,038

2.76,148

5,302
7,902
10,471

5.345
7,923
10,201

July
August
September
October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

650
900

Excluding finance companies 3/
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

Year
e/
!>/
JL/
2/
3/

2,547
4,348
3.283
3,188

2,043
4,258
2,477
2,997

13,366

11,775

Estimated by Federal Reserve.
Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance companies.




;•

Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)

Quarter
Month

Gross proceeds for new capital
and refunding 1/
Total
Bonds
Common Memo:
Publicly Privately
and Foreign
Offered
Placed
pfd. issues
stock included

Net proceeds
for new capital
Mfg.

Public CommuniUtility cations

1/ 2/
Other
Issuers

1964 - I
II
III
IV

2,548
4,965
2,876
3,568

978
1,312
792
531

1,269
1,755
1,590
2,629

300
1,890
494
408

29
105
94
277

429
723
559
1,061

438
856
642
509

273
1,666
59
135

1,275
1,492
1,361
1,559

1965 - I
II
III
IV

3,007
5,043
3,912
4,030

905
1,864
1,575
1,226

1,673
2,259
1,955
2,264

429
920
383
540

243
215
263
300

1,072
1,679
1,119
1,145

541
609
786
610

91
255
323
177

1,034
2,246
1,304
1,815

1966 - I
II
III
1965 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec,

5,094
5,115

1,774
1,941

2,586
2,083

734
1,090

345
168

1,860
2,205

969
960

602
392

1,553
1,418

1,233
1,773
2,038
1,443
930
1,538
986
1,398
1,646

422
694
748
542
369
664
287
613
326

648
630
980
780
468
706
574
529
1,161

162
449
309
122
93
168
124
257
159

33
49
134
27
87
150
99
101
99

540
698
441
399
307
414
273
402
470

176
248
184
202
297
287
158
209
243

15
143.
98
102
25
196
92
43
43

422
602
1,223
587
222
495
401
671
741

1,339
1,273
2,482
1,582
1,10 6
2,427
1,285

460
560
753
628
481
832
460

692
583
1,311
743
556
784
600

187
130
417
210
69
811
125

93
118
133
86
33
49

353
530
977
692
376
1,137
500

388
241
340
364
274
322
230

141
160
301
76
60
276
40

1966 - Jan. 2/
Feb.
Mar.
Apr.
May
June
Julye/
Aug.
Sept.
£/
e/
1/
2/

420
306
827
421
*68
629
475

Preliminary.
Estimated by Federal Reserve.
Gross proceeds exceed net proceeds by the cost of flotation.
For total see Exhibit H; other issuers are extractive, railroad and other transportation,
real estate and finance, and commercial and other.
3/ Does not include U.S. Steel $600 million conversion of preferred stock to debentures.
Source: Securities and Exchange Commission.




Exhibit J
Other Security Offerings
(In millions of dollars)

--f-prm 1 /
Fnre-i gn flnvprnmpnt- 2/
1Q66
January
February
March
April
May
June
July
August
September
October
November
December
Jan.-June

12
40
40
66
69
76

303

Year

x

1Q66
4
82
69
30
75
26
20
13
7
180
72
58

218
38
73
91
33
74
5
52
75
2
420

286

661

103
39
-319
580
E/ 462
j>/-360

Jan.-June

E/505

Year

238
91
-458
647
204
-82
119
408
152
59
274

3,034

636

,

103
236
-407
442
81
-80
-9
127
176
7
-15
-208

640

375

1,286

453

129
185
325

503
410
392
699
1,030

New short-term 4/
State and local Goverment 5/
January
February
March
April
May
June
July
August
September
October
November
December

Federal Aoenrv 1/
IQfiS
1QA4

308
-24
450
718
85
284

1,821

---

—

775

275
260
160

239
150
375
375
179

510

1,414

275

2,732

1,205

-mm

»m

Federal Agency 3/
-137
-174
117
-11
509
237
132

-308
23

,

97 v
183 1
239
-333

206

167

105
-309

1
525

202

113

-76

-3

541

-102

m

'

-336

368

differ from those in Exhibit H in that refunding issues, as well as new capital issues,
are included. Long-term securities are defined as those maturing in more than one year.
2/ Includes securities offered in the U.S. by foreign governments and their political
subdivisions and international organizations. Source: Securities and Exchange Commission.
3/ Issues not guaranteed by U.S. Government. Source: Long-term, Securities and Exchange
Commission; short-term, Treasury Dept. & Fed. Reserve.
4/ These data differ from those
in Exhibit H and above in that they represent new offerings less retirements, whether
from the proceeds or refunding issues or from other funds. Data include only issues with
original maturity of one year or less.
Principally tax and bond anticipation notes,
warrants, or certificates and Public Housing Auth. notes. In some instances PHA notes
included may have a somewhat longer maturity than 1 year. Source; Bond Buyer & Federal
Reserve.




:

f
'?
I
1

\

i 7

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)

Total

1965 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1966 - Jan.
Feb.
Mar.
Apr.
May
June
July

C o n o r *ite
Bonds
Convertible
(other than
bonds
convertibles)

477
299
530
246
736
262
485
545
890
643
401
1,317
402

455
211
530
190
559
212
370
391
544
481
351
636
170

22
62
40
33
50
-84
75
55
50
20
182

State
and
local
governments

Stocks

20
50
170
43
95
---

655
312
563
409
538
413
787
424
399
720
466
582
338

26;
16
144
115
70
271
106
661
50

Other

—

55
60
275
15

Large Individual Issues Offered August 1 through 26

Issuer

Type y

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
net interest cost

Offering
yield

Rating

Corporate
30.0
Jersey Central Pwr.&Lt.Co. 1st mtg. bds.
Deb.
250.0
American Tel. & Tel.
Notes
75.0
Household Fin. Co.
Conv. deb.
Northeast Airlines
22.0
Conv. sub. deb.
25.0
Continental Tel. Co.
Conv. sub . deb. 175.0
Pan Amer. World Airways
Pfd. stk.
20,0
Air Products & Chem. Inc.
Management Assistance, Inc .ColL tr. cert.
27.0
1st
mtg.
1
bds.
20.0
Northern Illinois Gas Co.
Conv. pfd . stk. 15.0
North American Car Corp.
125.0
Pittsburgh Plate Glass Co. S. F. deb.
Conv. sub , deb. 25.0
G. C. Computer Corp.
Com. stk.
10.0
Cum. pfd. stk.
35.0
Duke Power Co.
80.0
Southern Calif. Edison Co. 1st mtg. bds.
40.0
1st mtg. bds.
Trunkline Gas Co.




6.00
5.58
6.25
6.50
5.25
4.50

A
Aaa

1996
1995
1969
1986
1986
1986

6-1/8
5-5/8
6
6-1/2
5-1/4
4-1/2

1966-70
1991

6

1991
1986

5-5/8
6

5.63
n. a.

Aa

199 L
1986

6-1/8
6-1/2

6.05
6.50

Aa
A

7-1/4-8-1/4 7.25-8 .25
5.85

B
B
Ba
-Aa

K-2

Large Individual Issues Offered August 1 through 26 (Cont'd)

Issuer

Type

2/

Amount
(Millions
of
dollars)

Coupon
Offerrate or
Maturity net inter- ing
est cost
Yield

Rating

State and local Government
Nashville & Davidson Co.
Metro. Govt., Tenn.
N.Y. State Dorm. Auth.
Dela. City Ind. Deb. Corp.
Detroit-Wayne Jt. Bldg. Auth.
Orange Co. Civic Center Auth.
Pa. State General Auth.
Ga. State Sch. Bldg. Auth.
State of California
State of Mississippi
Winchester, Ky.
Wash. Sub. San. Dist., Md.
Arizona Board of Regents
Chicago, Illinois

G.O.
Rev. -Rent.
Rev. -Rent.
Rev. -Rent.
Rev. -Rent.
G.O.
Rev. -Rent.
G.O.
G.O.
Rev. -S.T.
Rev. -Rent.
Rev. -Rent.
Rev. -Q.-Ut.
Rev. -Rent.
G.O.

15.9
19.8
17.0
14.5
22.2
50.0
32.1
100.0
3.5
7.0
9.1
28.9
10.0
25.0
25.0

1968-97
1970-98
1968-87
1970-96
1969-93
1969-93
1968-89
1967-87
1967-2001
1971-86
1968-76
1991
1967-96
1969-96
1969-86

3.94
4.58
n.a.
4.79
4.78
4.36
4.30
4.32
4.47
4.62
5.61
4.47
4.96
4.49

3 .75-3.90
4 .50
4,.00-4.40
4,.60-4.70
4..60
4..25
4.,00-4.20
4.,00-4.20
4. 35-4.40
4. 40-4.50
5. 00-5.10
5. 50
4. 20-4.40
4. 75
4. 30-4.35

Aa
--

Baa
A
—

Aa
Aa
A
A
--

A
A
A

Other
None

*--Rights offering.
n.a.--not available.
1/ Includes corporate and other security offerings of $15 million and over; State and
local government security offerings of $10 million and over.
2/ 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 revenue from quasi-utilities; Rev.-S.T., revenue bonds
secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely
by lease payments.




H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for Hew Capital
(Other than U.S. Treasury) ]J
Expected Proceeds from Forthcoming Large Issues
(In millions of dollars)
During month following
dste shown
State and
Corporate
Other 2/
local govt.
1965 - July 30
Aug. 31
Sept.30
Oct. 29
Nov. 30
Dec. 31
1966 - Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 31
June 30
July 29

193
312
206
412
297
553
530
828
489
248
1,261
317
677

248
404
269
343
398
501
340
366
253
399
584
337
403

--

15
25
20
20
20
--

30
15

Corporate
340
636
303
489
344
676
931
1,176
606
1,034
1,261
619
697

Subsequent to
date shown
State and
local k o v t .

353
450
331
578
458
582
461
504
334
546
584
353
403

| Other 2/
--

15
25
20
20
20
90
55
55
85
50
35

Forthcoming Large Offerings as of August 26

Issuer

Type

Amount
(millions
of
dollars)

Approximate date of
offering

forpgmf
Natural Gas Pipeline Co.
Std. Oil Co. (Ind.)
•Atchison, Topeka & Santa Fe Ry.
Northwestern Bell Tel. Co.
Aluminum Co. of America
Burlington Industries, Inc.
Boeing Co.
Iowa Elec. Lt. & Pwr. Co.
Cameron Iron Works, Inc.
•Southern Bell TeL & Tel. Co.
Cenco Instruments Corp.
LTV Aerospace Corp.
Consolidated Cigar Corp.




1st mtg. pi. bds.
Deb.
Eq. tr. cert.
Deb.
Conv. deb.
Conv. sub. deb.
Conv. sub. deb.
1st mtg. bds.
Conv. sub. deb.
Deb.
Conv. deb.
Sub. deb.
S.F. deb.

40.0
175.0
50.0
50.0
125.0
40.0
130.1
15.0
25.0
100.0
15.0
50.0
15.0

August 31
August 31
August 31
September 8
September 13
September 13
Sept. 14 (rts. exp.)
September 14
September 15
September 28
September
September
Indefinite

/p

L-2
Forthcoming Large Offerings as of August 26 (Cont'd)

I

Issuer

Type

Amount
(Millions of
1
dollars)

i

| Approx. date of offering

State and local Government
Los Angeles, California
Baltimore, Md.
Colleges of the State of
Texas, Austin
Pittsburgh, Pa.
La. Cap. Const. & Imp. Comm.
Memphis, Tenn.
PHA
*Santa Monica Unif. S.D.,
Calif.
New Jersey Turnpike Auth.
Ga. State Hosp. Auth.
Los Angeles Dept. of Water
and Power
Oklahoma Turnpike Auth.

G.O.
G. 0.

30.0
31.

August 30
August 30

G.O.
G.O.
G.O.
G.O.
Bonds

33.4
13.3
15.0

119.9

August
September 8
September 8
September 13
September 14

G.O.
Rev.-Q.-Ut.
Rev.-Rent.

14.8
180.0
15.0

September 14

Rev. -Q. -Ut.
Rev.-Q.-Ut.

30.0
160.0

September 21
Indefinite

20.0

September 15
September 21

Other
*Quebec Hydro. Elec. Comm.
*Govt. of New Zealand
Republic of Ireland
Nippon Tel. & Tel. Pub.
Corp.

Deb.
Bonds
Bonds

40.0
15.0
20.0

September
Indefinite
Indefinite

Bonds

15.0

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.
Note:

Deletions for reasons other than sale of issue:
1
issue--bids rejected.




Cleveland, Ohio; $15.0 million

f
't.
f
%
<

i t

H. 14

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.
6/2

6/6

Public Offerings

Sold June 1 through August 26

30.0

City of Montreal, Canada--5-5/8% debentures; maturing
1991, reoffered to yield 5.88%.

20.0

Industrial Development Bank of Israel--Cum. pref. stk.

6/28

175.0

6/29

50.0

British Columbia Hydro and Power Auth.--5-5/8% S.F.
bonds, maturing 1991, reoffered to yield 5.78%.

7/7

15.0

Govt, of Mexico—6-7/8%. bonds, maturing 1981 reoffered
to yield 7.26%.

International Bank for Reconstruction and Development-5-3/8% bonds, maturing 1991, reoffered to yield 5.39%.

B.

Prospective Offerings

Indefinite

20.0

Republic of Ireland--bonds.

Indefinite

15.0

Nippon Telegraph and Telephone Public Corp.--Bonds

*-- Included in table for first time.
**--Issue sold to investors outside of OTS.
***.Issues subject to interest equalization tax.




m-2

Part II:

Date Reported

Private Placements - Reported June I through August Z-:<

Amount
(millions
of
dollars)

Issuer and Description of Issue

6/1

14.0

Govt, of the Bahama Islands—bonds, maturing 1981, no
information available on takedown.

7/6

31.0

Steep Rock Iron Mines, Ltd.--6% 1st mtg. bds. , maturing
1987--no information available on takedown.

7/26

50.0

Great Canadian Oil Sands, L t d . —
% notes, maturing 199.1-no information available on takedown.

Note: For retrospective data on aggregate foreign corporate and government security offer- 4
ings 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 takendown jbut only in the amount of takedown while the placements shown in this exhibit are..iacluder
when reported, frequently with little or no information concerning timing of takedown
Full or partial takedowns may take place both prior and subsequent to the data a placement
is reported.




;