Full text of H.16 Capital Market Developments : August 8, 1966
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n DECONTROLLED AFTER SIX MONTHSI Not for Publication August 83 1966. H. 14 I I CA PI TAfir MA3rK£-TS_ &£y "fN THE UNITED STATES Corporate and municipal bond markets. The volume of new expected in both the corporate and municipal markets will be above this week. Almost three-fourths of the total new corporate volume accounted for by Pan American's $175 million convertible debenture issues average is offering. Long-term Public Security Offerings 1/ (In millions of dollars) Corporate New Capital | Refunding State and local Government New Capital | Refunding Sold: 52 week avg. July Aug. 175 29 5 140 390 12 235 3 205 4 251 153 Scheduled: Aug. ? / n Y- 0 1 Dfirfira v-t • 220 KrtoaH tinAn mil k 1 -1 n Tnrsi-7 v/anAt»f r\ -f -1 f cnflff oa! and scheduled for offering; corporate rights offerings are included as of the date subscription rights expire. New and seasoned corporate bonds yields advanced further last week. While the new issue series shows a decline of 4 basis points, this is due largely to a shift in the composition of issues included and should not be interpreted as representative of new issue yields for the past week. Virtually all issues included in compiling this series for last week carried 5 years of call protection and consequently may be marketed w l a lower yield than issues without such protection. American Telephone and Telegraph1, s $250 million Aaa rated debenture offering was reportedly over two-tbirds sold bv week-end. This issue was reoffered to investors to yield 5,58/': -Ul basis points above a simi 1 a r offering in March. Municipal bond yields advanced slightly during the past week. A $50,0 million negotiated offering by the Puerto Rico Water and Sewer Authority expected in * he market last week was postponed due to "general market conditions." New security offerings The volume of new security offerings in the corporate market during July aggregated $1 = 3 billion-about the same as a year ago. New municipal H. 14 Yields in Security Markets Change from preceding w e e k Level Latest W e e k High-Grade Notes and Bonds Corporate New Seasoned 5.58 5.24 +2 4.73 5.32 +7 3.79 4.01 +6 -4 U.S. Government Long-term 3-5 year +1 State and loc. Govt. M o o d y 1 s Aaa Std. & Poor's high grade +1 Money Market >-3 5, 60 Federal funds Treasury bills 3-month 6-month +8 4.81 4.99 +10 Corporate Bonds Still in Syndicate Date Offered Amount (mi11inns of $) 7/28 8/4 45.-0 250.0 Issuer Reoffering Yield Rating Estimated proportion sold Northern State Pwr. Co. 5.76 1st mtg. bds., 5-7/8's, 1996 A.T. & T. debs., 5-578's, 1995 5.58 1/2 Aaa 2/3 Blue List of Municipal Dealer's Advertised Inventories (In millions of dollars) Latest Date 473 (8/3) End of Previous W e e k 480 Recent High 636 (2/17) -3- H. 14 offerings totaled $.7 billion, or almost $.3 billion less than a year earlier. In August, however, preliminary estimates indicate an increased volume of issues--as compared to August 1965--in both the corporate and municipal markets. Gross corporate security offerings are likely to total nearly $1.6 billion, or three-fourths more than a year ago. Of this total, over half is accounted for by publicly offered corporate bonds, thereby making the August public debt calendar the heaviest month this year. Municipal volume in August is currently expected to aggregate $.9 billion, an increase of over $.2 billion from a year ago. Stock prices. Common stock prices advanced slightly last week in moderate trading. Standard and Poor's index of 500 stocks rose 0.40 points to m a r k the first advance in three weeks. Trading volume averaged 6.0 million shares per 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, LONG-TERM BOND YIELDS, H I G H - G R A D E 5.0 CORPORATE Aaa 4.0 U.S. GOVERNMENT 3.5 ARJ S T A T E AND LOCAL GOVERNMENT A a a 2.5 1961 1962 1963 1964 Exhibit A Date Corporate Aaa y U.S. Govt. long-term 2/ — 1965 Part II State and local government Aaa 3/ 1959-60 - High 1962-63 - Low 1965 - L o w 1966 - High - Low July - 8 15 22 29 lugust - 5 ]>/ 4.61 4.19 4.41 5.24 4.73 (1/29/60) (3/29/63) (3/12) (8/5) (1/7) 5.12 5.14 5.17 5.22 5.24 4 . 4 2 (1/8/60) 3 . 8 5 (12/28/62) 4.13 (6/25) 4.78 (7/15) 4.42 (1/21) 4.72 4.78 4.75 4.72 4.73 3 . 6 5 (9/24/59) 2 . 8 8 (12/9/62) 2 . 9 4 (2/11) 3.79 (8/4) 3.39 3.77 3.77 3.77 3.78 3.79 1966 (1/13) Spread between U. S. G o v t , and Corporate S t a t e and Aaa local A a a .59 (8/S/60) .21 (12/27/63) .22 .51 .14 .40 .36 .42 .50 .51 .92 (4/22/60) . 8 0 (1/3/62) .94 1.19 .94 .95 1.01 .98 .94 .94 ft/ P r e l i m i n a r y . j/ Weekly average of dally figures. Average term of bonds Included it 22-24 years. y Weekly average of daily figures. The series includes bonds due or callable in 10 years or more* i/ Thursday figures. Only general obligation bonds are included* average term is 20 years. $ote # —fllgns 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. LONG-TERM BOND YIELDS, LOWER GRADE 6.0 CORPORATE Baa 5.0 AA . v ' 1 V a , / — I I I M I II I I I 1961 J S T A T E A NO LOCAL G O V E R N * I E N T B a a 1 12 ~ V ^ I I I I I I I1I1IIII 1I 1 1 11 I1 1II11 1 1 1 1 1 1 1963 1964 1965 1966 Exhibit B -- Part II Corporate Baa 1/ Da te State and local govt. Baa 3/ Spread between Aaa and Baa State and Corpora te local govt. (per cent) 1959-60 - High tar end - 1962 1964 1965 1966 - High Low July August Hotel - 8 5.36 (a/U/60) 4.46 (3/7/60) 4.93 3.57 4.80 3.51 5.04 .84 .70 .37 .31 1.08 .63 .52 .39 5.75 (8/5) 3.79 4.34 (8/4) .54 5.05 (1/14) 3.78 (1/20) .31 .38 .51 .53 5.63 4.30 .62 ' 15 22 5.68 4.30 .54 .53 5.69 4.30 .52 .53 29 5.72 4.33 .50 .55 5.75 4.34 .51 .55 - 5 £/ Tor footnotes see Exhibit A. . n SHORT- AND INTERMEDIATE.TERM INTEREST RATES GOVERNMENT 3 - 5 YEAR I S S U E S 6 - MONTH B I L L S F. R. D I S C O U N T RATE 3-MONTH BILLS 1962 1961 1963 1964 Exhibit C — Discount ra te 3-month bills 2/ V Date 1959-60 •• High Year end - 1961 1962 1963 1964 1965 1966 - High Low July August - - 1966 1965 Part II Yields 6-month bills 2/ (per cent) ar;, Spread between yield* on 3aonth bills and vields on 6 - m o . b l l l s l 3 - 5 vr. issues 4.00 3.00 3.00 3.50 4.00 4.50 4.59(1/9/60) 2.66 2.89 3.52 3.63 4.47 5.07(1/8/60) 2.90 2.93 3.64 3.93 4.66 4.50 4.89 (7/22) 5.00 (7/15) 5.32 <8/5) .24 . 64 4.50 4.39 (6/24) 4.53 (6/24) 4.80 (4/8) .09' .21 5.00(12/24/59) 3.81 3.41 4.07 4i07 4.90 . .79 .24 .04 .13 .10 .19 1.81 1.15 .52 .55 .24 .43 8 4.50 4.67 4.82 5.14 .15 15 22 4.50 4.85 5.00 5.24 .15 .39 4.50 4.89 4.99 5.22 .10 .33 29 4.50 4.73 4.89 5.25 .16 .52 4.50 4.81 4.99 5.32 .18 .51 5 £/ .47 Market yields weekly a n r u g e e computed I y e a r issues consists of selected notes sad bonds. Note*—tiighs and low* are f o r individual series and m a y be on different dates for d i f f e w n t series, f o r spreads, high refers t o w i d e s t , and low to narrowest. I S H O R T - A N D IN T ER M ED I AT E-T E R M I N T E R E S T R A T E S , B A N K S A N D OTHER PRIVATE B O R R O W E R S FINANCE COMPANY PAPER F.R. DISCOUNT RATE 1962 1961 1963 1964 1965 1966 Exhibit D -- Part II Date Prime rate 1959-60 - High Year end - 1961 1962 1963 1964 1965 1966 - High Low July - August - 8 15 22 29 5 £./ . 5.00 4.50 4.50 4.50 4.50 5.00 5.75 1/ Finance company Federal funds 3/ paper 2/ (per c e n t ) 5.13 (1/23/60) 3.00 3.19 3.88 4.06 4.75 5.58 (8/5) 4.00 (5/13/60) 2.88 3.00 3.50 4.00 4.63 5.65 (7/29) 5.00 4.75 (1/7) 3.55 5.75 5.75 5.75 5.75 5.75 5.50 5.50 5.50 5.58 5.63 5.26 5.28 4.40 (1/21) Spread between 3-mo. bills and finance co. paper 1.02 .34 .30 .36 .23 .28 .99 .20 5.65r/ .83 .65 .61 .85 5.60 .82 Weekly rate shown ia that In effect at end of period. Prime rate is that charged by large banks on short-term loans to business borrowers of the falsest credit standing, Average of daily ratds published by finance companies for direotly placed paper for varying maturities in the 90-179 day range. 3/ Weekly average of daily effective rite, which is the rate for the heaviest volume of purchase and sale transactions as reported to the federal Reserve Bank of New York. Notet—Sighs 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. y STOCK MARKET PRICES STOCK MARKET CREDIT CHANGE IN SERIES M X A / h V V v YIELDS 1 1 1961 1962 1963 1964 Exhibit E -- Pare II Common Da t e Stock price index \J yields 2/ (oer cent) Trading volume J/ (millions of shares) 1965 1966 Stock mar ket customer credit Customers' Bank Idana to debit balTotal "others" 5/ (In millions of dollars) 1961-62 - High Low Nov. 1963 July 1965 1966 - High Low 1966 J u n e July July 22 29 Aug. 5 2.82 3.96 10.1 2.4 84.91 93.77 (2/11) 3.14 3.09 3.02 5.3 4.1 10.7 83.60 (7/29) 86.06 3.46 3.36 5.1 6.4 85.83 85.41 83,60 83.93 3.37 3.37 3.46 6.0 5.9 6.3 6.0 72.04(12/8/61) 52.68(6/22/62) 72.61 3.45 5,60% 1%/ai) 4,424(1/61) 7,298 6,833 7,997 4,259 (12/61) 3,253(1/61) 5,586 4,863 5,835 7,726 5,551 7,997 5,766 .... 1,418(5/9/62) 1,161(3/9/61) 1,712 1,970 2,241 (7/6) 2,137 (5/27) 2,231 2,203 2,217 2,203 n.a.—Not available. jJ Preliminaxy7 y Standard and Poor** composite Index of 500 oooroon stooks, weekly closing prices, 194L-A3»10. Monthly data are average of dally figures rather than or Friday's only* Highs and lews are for Friday's data only* 7j Standard and Poor's composite stook yield based on Wednesday data converted to weekly olosing prices by Federal Reserve* Yields shewn are for dates on wbioh price Index reached Its high 3/ Averages of dally trading volume on the Hew York Stook exchange. Year-end figures are averages of daily figures for the year* 4/ End of month figures far member firms of the Hew York Stook Exchange which carry margin accounts J excludes balances secured by 0* 3* Government obligations* 5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying U. S, Cove n a m t securities* Weekly reporting banks account for about 70 per cent of loans to others. For further detail see Bulletin. M O R T G A G E AND B O N O YIELDS HOME MORTGAGES Aaa C O R P O R A T E B O N O S 1957 1958 1959 1960 1961 Exhibit F FHJI m o r t m 3«ee 2/ Conventional mort25-year 30-year gagee y 1956 1957 1958 1959-60 1961-65 1966 - Low " High -Low - High High Low 1966 May June July 4.68 5.63 5.35 6.24 5.43 6.37 5.72 5.44 6.32 5.70 6.37 6.51 6.32 6. 45 1962 Part II 1963 1964 Aaa Coirporate Spread bepoiida tween yield* on conv. & Nev^ Seasoned FHA mortSf K a«es .47 .47 .15 .23 .25 .30 .02 3.08 4.94 3.65 5.25 4.12 5.27 4.84 6.30 -.02 6.40 -.05 5.21 5.38 4.98 5.07 5.62 5.16 5.20 6.00 5.55 6.30 5.80 6.30 6.00 3.08 4.12 3.57 4.61 4.19 5.07 4.74 1965 1966 Spread between yields on new corporate bonds and FHA mtgs.1Seasoned 4/ I bonds .76 1.58 .88 1.03 .05 1.69 .77 1.11 .73 .35 .09 1.11 1.07 .23 .31 .46 bijber f or mortfagei M t h e r mortgage nor bond yields take Into account servlelng oeets .whloh are a than boa&e. Generally, bonds pay interest semi-annually* mortgagee, monthly, Mortgage yields ' -* t•, i f elightly higher t h w given la oomputed as equlrelwi to a send-annual interest investmsnt, w m i d be» I Based en THAr-flelA-offioe opinions about average bid prices in the private secondary market ( b r u » > home mortgages for immediate delivery* Separate data available for 25-year and—beginning W s r 1961— 30-year mortgages with minium downpaymants, weighted by probable to lose of translations* Yields oom puted by rai, assuming prepayment period of 12 years far 23—year mortgages and 13 years for S O — year mortgages# Orer the period for which they oan be compared, the movement ef the two mortgage yield series has bean etmllar* Dashed lines indicate periods of adjustment to changes in oeniraotnal Interest rates* Based on TEA, field office opinion on typloal interest ratee (rounded) on convent!onal.first mortgages prevailing In the market areas of insuring office cities. Beginning with April 1060, rate relates only to new-*one mortgages; prior to that date, rate related to both new as well as #listing-home mortgages* Dashed line Indicates thie change In the eerlee, TEA mortgage yield data are for 2S-*year mortgages through June 1961; 30-year mortgages thereafter. See note for Exhibit Q , Moody's Investor Service* Monthly averages of dally data* See Exhibit A* C O N V E N T I O N A L M O R T G A G E TERMS 'Z EXISTING LOAN P R I C E / R A T I O NEW EXISTING 1962 65 1964 Exhibit F Part IV 1966 New Homes Exi stins Homes Fees & Fees & Loan/ Loan tract Charges Maturity tract Charges Maturity Price amt. Rate (Per (Years) ratio (Thous.) Rate (Per (Years) ratio (Thous.) (Per cent) (Per (Per cent) (Per cent) cent)1 2/ cent) 2/ cent) 1965 June July Aug. Sept. Oct. Nov, Dec. 5.76 5.77 5.76 5.75 5.75 5.80 5.78 .49 .55 .50 .56 .53 .54 .58 24.6 25.0 24.5 24.9 24.8 25.0 24.8 73.9 75.0 73.8 73.7 73.8 74.9 74.0 17 .5 18,.3 18,.2 18,,1 18..3 18.,5 18.,4 5.86 5.86 5.86 5.89 5.87 5.91 5.91 .49 .49 .46 .47 .48 .50 .51 20.6 20.6 20.4 20.1 19.9 20.4 20.6 72.1 72.5 72.1 71.6 71.3 72.0 72.4 I 1 I 14.3 14.5 14.1 13.7 13.9 13.9 14.5 1966 5.97 Jan. 5.81 73.4 18. 0 20.6 .51 24.6 .49 72.6 14.3 Feb! 5.85 .55 73.2 18. 8 5.97 .51 24.6 20.3 72.0 14.4 5.90 .56 6.01 Mar. 74.3 18. 9 .53 20.9 24.7 72.5 14.7 . 5.99 73.9 18. 2 6.09 Apr. 24.6 .54 .57 20.6 72.2 14.5 6.02 6.16 May 73.4 .56 19. 2 20.6 .57 24.7 71.8 14.7 June 6.07 6.16 . .47 74,4 19. 7 20.0 .57 . 24,8 70.6 14.7 | J/ Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation* Data are weighted averages based on probability sample surrey of characteristics 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 modernization; construction loans to home—builders j and—in this exhibit—permanent loans lAich are coupled with construction Ions to owners-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 1962. Related series on conventional mortgage rates only, based on unweighted opinions of regional-office directors of the Federal Housing Administration, are available somewhat sooner than the results of FHLBB-FDIC survey, and are included—in the case of new home mortgage rates—in Exhibit F, Parts I 2j Fees and charges—expressed as a percentage of the principal mortgage amount—include loan oonsaissions,. fees, discounts, and other charges which provide added income to the lender and are paid by the borrower. They exclude any closing costs related solely to transfer of property ownership. YIELDS O N N E W A N D S E A S O N E D C O R P O R A T E B O N D S NEW ISSUES SEASONED Aaa i-LLJ-i Li 1. L-L 1 A... I I I I I I I I i—LJ-J 1964 Kxhlblt 0 - Part II Y i e l d s o n Mew C o r p o r a t e Bond Issues Adjusted to e n A e e b e s t s N u m b e r i a ' t o f Issues A v e r a g e of Included (mil. yield (per c e n t ) Issues o f d o l l a r s ) M o n t h l y averages; 1965 - Oct. 5 6 Nov. Dec. 4 1966 - Jan. 8 10 Feb. 9 Mar. Apr. 13 May 7 1] 5 July Aug. W e e k l y averages; High 108.0 267.0 212.0 300.0 304.5 5 13.0 452.3 341.0 596.0 155.0 5.63 4.82 N u m b e r A m ' t o f Issues A v e r a g e Included (all, of yield (per cent). of dollars^ l##ues 4.69 4.72 4.85 4.84 4.98 5.13 5.08 5.21 5.38 5.62 (7/15) (1/7) July 1 2 3 4 1 50.0 46.0 80.0 370.0 50.0 2 90.0 5.63 Aug. 3 2 65.0 280.0 5.62 5.58 5.36 5.34 5.43 5.32 5.64* Sept. Not*iAverages of offering yield# on all new issues of publioly offired ooip orate bonds rated Ana. Aa and A by Moody's Investors Serrioe (except serial and convertible is sues, offerings of natural gas pipeline and foreign companies, and bonds guaranteed by the Inderal Government) weighted b y «Lso 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 b e n d s of the appropriate industryquality gxoup over the composite average for seasoned Aaa-rated bonds (Moody's), Averages considered unrepresentative beoawe « special oharaoteristies of the offerings included are denoted by an asterisk* Exhibit H H. 14 Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) New Capital 1966 Coroorate 1965 State and local 2/ 1964 1966 1965 ji/ 1964 1,302 1,237 2,446 795 746 1,197 938 700 778 £/1,183 £/ 857 e/ 857 804 872 904 947 776 810 April May June 2/1,554 p/1,002 e/2,400 1,152 1,691 1,946 2,237 1,095 1,405 2/1,150 £/ 887 e/1,075 826 924 972 1,242 667 903 July August September 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 2,738 4,789 3,533 3,745 2,416 4,738 2,621 3,264 2/2,897 e/3,112 2,580 2,722 2,600 2,569 2,533 2,811 2,578 2,278 7,527 11,060 14,805 7,153 9,775 13,038 e/6,009 5,302 7,902 10,471 5,345 7,923 10,201 January February March October November December 1st 2nd 3rd 4th quarter quarter quarter quarter 1st half Three quarters Year 4,985 e/4,956 e/9,941 - 700 900 • Excluding finance companies 3/ 1st 2nd 3rd 4th quarter quarter quarter quarter Year e/ B./ 1/ 2J 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. \H Exhibit I New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) Quarter or Month Gross proceeds for new capital and refunding 1/ Total Bonds Common Memo: Publicly Privately and Foreign Offered Placed pfd. issues included stock Net proceeds for new capital Mfg. Public CommuniUtility cations 1/ 2/ Other Issuers ' 1964 - I II i 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 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 25: 323 177 1,034 2,246 1,304 1,815 5,094 5 ,038 1,774 1,909 2,586 2,051 734 1,077 345 148 1,860 969 602 1,553 2,253 967 393 1,674 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 1,592 1,026 2,420 1,285 460 560 753 628 481 800 460 692 583 1,311 754 477 820 600 187 130 417 209 68 800 125 93 118 133 55 33 60 353 530 977 653 400 1,200 500 388 241 340 361 256 141 160 301 76 420 306 827 465 309 570 475 / HI IV 1966 - I II III 1965 - Apr. May June July Aug. Sept. Oct. Nov. Dec. 1966 - Jan.3/ Feb. Mar. Apr. 2 / May £/ ' Junee/ Julye/ Aug. Sept. £/ e/ 1/ 2/ 550 230 37 280 40 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. \b Exhibit J Other Security Offerings (In millions of dollars) (Irnss Tinngj-rprm 1/ FnrMgn 1966 January February March April May June July August September October November December 12 40 40 66 69 n.a. Jan. - June n. a. Year nnvprnmpnf 2/ 1965 1964 218 4 82 69 30 75 26 20 13 7 180 72 58 38 73 91 33 74 5 52 75 2 420 286 661 636 Federal Agency 3/ 1965 1964 503 410 392 699 n. a. January February March April May June July August September October November December Jan. - June 238 91 -458 647 204 -82 119 408 152 59 274 103 236 -407 442 81 -80 -9 127 176 7 -15 -208 E/534 640 375 --- 275 260 160 775 239 150 375 375 179 n. a. New short-term 4/ State and local Goverment 5/ 103 39 -319 580 2/462 P/-331 129 185 325 308 -24 450 85 n. a. n. a. -- 510 -- 1,414 275 2,732 1,205 Federal Agency 3/ -137 -174 117 -11 509 23 7 132 206 105 -309 202 -76 541 -308 -336 23 97 183 239 -333 167 : 1 525 113 -3 -102 368 1,286 453 801 Year 2./ Preliminary, e/ Estimated by Federal Reserve, n.a. --Not available. 1/ These data 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. 5/ 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. ; 17 H. 14 Exhibit K Large Long-term Public Security Issues for New Capital (Other th-n U. S. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) Total July Aug. Sept. Oct „ Ncv = Dec, Jan. Feb. Mar. Apr. May June July 47 7 299 530 246 736 262 485 545 890 643 401 1,317 402 Corooriite Bonds Convertible (other than bonds convertibles) 22 455 62 211 530 40 i90 33 559 50 212 370 84 391 75 544 55 481 50 351 20 636 182 170 Stocks -- 26 16 144 115 70 271 106 661 50 State and local governments 655 312 563 409 538 413 787 424 399 720 466 582 338 Other 20 50 1 ,0 43 95 55 60 2; 5 15 Large Individual Issues Offered August 1 thr ugh 5 "• Issuer Type £/ 1 Amount (millions of dollars) Coupon rate or net interest cost Offering vield 1996 1995 1969 1986 6-1/8 5-5/8 6 6-1/2 6.00 5.58 6.25 6.50 Maturity Rating ZEXSSKTIS Jersey Central Twr. & Ll. CO. American Tel. & Tel., ..Household Fin, Co. Uortheast Airlines 1st raig. bds. De b o Notes Conv. deb. 30.0 2 50.0 75.0 22.0 A Aaa 5 ptate and local Govt. Mashville & Davidson Co, Metro, govt., Tenn. N.Y. State Dorm. Auth. Delaware City Ind. Dev. Corp. G.O. Rev. -Rent. 15.9 19.8 1968-97 1970-98 3.94 4.58 3 .75-3.90 4.50 Rev.-Rent. 17.0 1968-87 n. c.. 4.00-4.40 Other None Aa FOOTNOTES; K-2 * — R i g h t s 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 Bahk 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 sdlely by lease payments. H. 14 Exhibit L Forthcoming Large Long-term Public Security Offering for New Capital (Other than U.S. Treaaury) JJ Expected Proceeds from Forthcoming Large laauea (In millions of dollars) During month following date shown State and Corporate Other 2/ local govt. % 1965 - July 30 Aug. 31 | Sept „ 30 | Oct c 29 | Nov. 30 I Dec. 31 ^1966 - Jan. 31 1 Feb- 28 ^ Mar. 31 I Apr, 30 | May 31 t June 30 July 29 193 312 206 412 297 553 530 828 489 248 1,261 317 677 248 404 269 3^3 398 501 340 366 253 399 584 337 403 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 govt. 353 450 331 578 458 582 461 504 334 546 584 353 403 Other if 15 25 20 20 20 90 55 55 85 50 35 Forthcoming Large Offerings as of August 5 Issuer Type Amount (millions of dollars) Approximate date of offering Cvnwwf Continental Tel. Cc. Pan Am. W:rId Airways . Air Ir:ducts & O.em. Inc. •Management Assistance, Inc. '• Northern Illinois Gas = Co. ' Southern Calil. Edlsen Cc. •Natural Gas Pipeline Cc. *G.C. Computer Corpc *Elec„ Storage Battery Co. -^Northwestern Bei1 Tel. Co. *LTV Aerospace Corp. '•* Duke Power Co. Conv. sub. deb. Ccnv. sub. deb. Pref. stk. Notes 1st - mtg. bds. 1st. mtg. bds. isto mtg. pi. bds Conv. sub. deb„ Conv. sub. deb. deb. sub« deb» Cum. pfd. stk. 40.0 25.0 21.3 50-0 50,0 35.0 A_g:;St 9 August 11 August i6 August 16 august. V August 2U August 31 August Se.pt o 2 (rts Sept. 8 indefinite indefinite 14, 5 22 „ 0 August 9 August 9 25 o 0 175.0 20.0 27.0 20.0 80.0 State and local Government Detroit-Wayne Jt Bldg Auth. Orange Cc. Civic Center Auth. Rev,-Rent. Rev. -Rent. e xp, ) 1 0 L-2 Forthcoming Large Offerings as of August 5 (Cont'd) Issuer Type Amount (millions of dollars) Approx. date of offering I State and local Govt.(Cont.) Fa. State Gen. Authority State of Georgia Denver, Colorado Tulsa, Oklahoma State of California *Wash. Sub. San. Dist.. Md. •^Cleveland, Ohio *Arizona Board of Regents Chicago, Illinois *Los Angeles, California Colleges of the State of Texas, Austin ^Oklahoma Turnpike Auth. G.O. G.O. G.O. G.O. G.O. Rev.-Q.-Ut. G.O. Rev.-Rent. G.O. G.O. 50.0 32.0 14.4 18 c 2 100.0 10.0 15.0 25.0 25,0 30,0 August August August August August August August August August August 9 10 11 16 17 23 23 25 25 30 G.O. Rev.-Q.-Ut. 33.4 185,0 August Indefinite 20.0 15.0 Indefinite Indefinite Other Republic of Ireland Nippon Tel. & Tel. Pub t Corp. Bonds Bonds. Included in table for first time. _!/ Includes corporate and other issues of $15 million and ever; 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; G.O.. 50.0 mil lion--postponed. Puerto Rico Water & Sewer Aut.h = ' i « ; n Exhibit M H.14 Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Date Public Offerings Amount (millions of dollars) Issuer and Description of Issue A. Sold June 1 through August 5 6/2 30.0 City of Montreal, C a n a d a — 5 - 5 / 8 % debentures, maturing 1991, reoffered to yield 5.88%. 6/6 20.0 Industrial Development Bank of Israel--Cum, pref. stk, International Bank for Reconstruction and Development-5-3/8% bonds, maturing 1991, reoffered to yield 5.397. 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%. B. Indefinite 20.0 Indefinite 15.0 Prospective Offerings „ Republic of Ireland--bonds. Nippon Telegraph and Telephone Public Corp.--Bonds Included in table for first time. * * — I s s u e sold to investors outside of 07S. ***-Issues subject to interest equalization tax. M-2 Part II: Date Reported Private Placements - Reported June 1 through August 5 Amount (millions of dollars) Issuer and Description of Issue 6/1 14.0 Govt, of the Bahama Is lands--bonds, maturing 1981 3 information available on takedown. no 7/6 31.0 Steep Rock Iron Mines, Ltd,--6% 1st mtg. bds, 3 maturing 1987--no information available on takedown. 7/26 50.0 Great Canadian Oil Sands, L t d , — % notes, maturing no information available on takedown, 1991- ¥ I 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 takendown but only in the amount of takedown while the placements shown in this exhibit are..include 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 placemen is reported.