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Not for Publication?^'^^^ 1 ^'^ library f I I 1 2 Fi Dt.nAL 1 SIX MONTHS August 29, 1966 I #66 l R E S ^ v c SANK 1 MV ••'1CV.MOHD /CAPITAL M A R K E T S / D E V E L O I M E N T S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. ;