Full text of H.16 Capital Market Developments : May 29, 1967
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Not for Publication H. 14 DECONTROLLED AFTER SIX MONTHS May 29, 1967. CAPITAL MARKETS DEVELOPMENTS IN THE UNITED STATES . Corporate and!municipal bond markets. The volume of publiclyoffered new corporate and municipal securities expected during this holidayshortened week will be far below the average weekly volume over the past year. Montgomery. Ward Credit Corporation's $50 million of debentures will account for almost half the small corporate volume, while no municipal offering will be more than $10 million. The week's volume will be supplemented by the Quebec Hydroelectric Commission's $50 million of debentures. '-' v Long-term Public Security Offerings (In millions of dollars) Corporate New Capital | Refunding State & local Government New Capital | Refunding Sold: 52 week avg. May May 19 26 255 r /165 470 231 r/313 344 — 6 . -- Scheduled: June 2 107 -- I 75 1/ Federal Reserve estimates are based upon published reports of issues sold and scheduled for offerings; corporate rights offerings are included as of date subscription rights expire, Yields on new and seasoned corporate bonds advanced last week and further shifting of offering dates took place in the new issue sector. Textron's $100 million offering was postponed again, Montgomery Ward Credit Corporations 1 s $50 of debentures did not appear, and Atlantic Richfield chopped $50 million from its planned $150 million offering. Bristol-Myers, meanwhile, accelerated its $50 million offering, bringing it to market with a yield 7 basis points higher than the essentially comparable Atlantic Richfield one. As a result, Atlantic Richfield's offering made the worst showing among the week's generally well-received issues. Yields on municipals were also up last week. The Blue List of advertised inventories declined slightly and what new issues there were received a fair reception. The two largest offerings expected last week -one for $96.2 million by New York City and another for $68.4 million by the New York State Housing Finance Agency -- were postponed indefinitely, however, because of market conditions. The former, now plans a smaller offering in June to tide it over until more favorable conditions exist. H. 14 .-2-. Yields in Security Markets Level Latest Week Change from preceding week High-Grade . Notes and Bonds Corporate New Seasoned 5.73 5.31 + + 3 5 4.83 4.76 + + 4 7 3.78 3.96 + + 3 1 U.S. Government Long-term 3-5 year State.and local Govt. Moody's Aaa Std.- & Poor's high grade Money Market Federal Funds Treasury bills 3-month 6-month • Date Offered - 3.50 3.74 100.0 5/24 60.0 35.0 5.63 Aa 407= Chesapeake & Potomac Tel & Tel of Maryland 5-7/8's - 2004 5.80 Aaa 70% Michigan Consolidated Gas 6-1/2's - 1992 6.35 30.0 Kansas City P. & L. 5-2/4's - 1997 5.72 5/16 17.0 Interstate Power 6 - 1 / 8 ' s - 1997 6.10 Flying Tiger (Equip.Tr.) 6.60's-1980 6.60 51.0 Estimated proportion sold Atlantic Richfield 5-5/8's - 1997 5/16 5/9 9 4 Corporate Bonds Still in Syndicate Amount Reoffering (millions of$) Issuer Yield Rating 5/24 5/23 13 3.90 85% Aaa 70% Baa Blue List o f Municipal Dealers' Advertised Inventories Latest Week http://fraser.stlouisfed.org/ 64.6 Federal Reserve Bank of St. Louis End of Previous Week 655 50% Recent High 849(4/26/67) 85% H. 14 Home mortgage interest rates and other loan terms. Secondary market yields on certain FHA-insured new home mortgages declined further in April, but by less than in previous months, as demands for funds in the capital markets remained strong and as the yield spread favoring mortgages over corporate or government bonds narrowed further. Unofficial reports, however, suggest the possibility that mortgage yields rose in May contrary to their unusually large drop since the November peak. Although April marked the fifth consecutive month of decline in the FHA secondary-market series, the 6 basis points drop (to 6.29 per cent) was less than those in the previous three months. While the April average was 52 basis points below the high reached last November, it was still some 85 basis points above the 1963-65 low. Interest rates on conventional loans on new and existing homes also declined further in April, as reported in both the FHA and the Federal Home Loan Bank Board series. FHA, which estimates conventional home loan interest rates rounded to the nearest 5 basis points, reported declines of 5 basis points in loans on both new and existing homes. This was the same amount of decline as in March, but less than the 10 basis points drop in February. ' The FHLBB series, which tends to lag the FHA series and to be less reflective of current market conditions, showed declines in April of 4 and 8 basis points, respectively, on new and existing homes. These declines were the largest since these series turned down last January, and they came at a time when other market indicators suggested a slowdown rather than an acceleration in the rate of mortgage market easing/ Other conventional loan terms changed little in April, according to the FHLBB series. Loan-to-price ratios, maturities, and loan amounts generally maintained their March averages, which in most cases seem to be little changed from year-ago levels, although data prior to December 1966 are not strictly comparable to those currently being reported. Stock prices. Common stock prices are now back to where they were in mid-April. Standard & Poor's index of 500 stocks declines 1.09 points over the week to 90.98 by the close Friday. Trading volume averaged 9.3 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 1964 CORPORATE Aaa Moody's U.S. GOVERNMENT Long-term ,'V S T A T E AND LOCAL G O V E R N M E N T A a a Moody's 1965 • • 1968 Exhibit A -- ParL II ' Date • | • 1959-60 - High 1966 - High Low 1967 - High Low Apr. May 28 5 12 19 26 £ / i Corporate Aaa 1/ \ i 4.61(1/29/60) | 5.52(9/9) 4.73(1/7) 5.38(1/6) 5.00(2/10) 5.11 5.16 5.19 5.26 5.31/ ' 1 State and U.S. Govt. | local long-term 2/| government Aaa 3/ (per cent) 4.42(1/8/60) 4.87(9/2) 4o 42(1/7) 4.83(5/26) . 4.37(2/3) 4.62 4.67 4.75 4.79 4.83 / 1/ Weekly^verage of daily figures. 2/ Weekly average of daily figures. 3/ Thursday figures. 3.65(9/24/59) 4.04(8/25) 3.39(1/13) 3.78(4/25) 3.25(2/9) 3.55 3.65 3.65 3.75 3.78/ Spread between U.S. Govt, and State and Corporate local Aaa Aaa .59(8/5/60) .84(12/30) .14(2/18) .92(4/22/60) 1;19(2/11) .77(9/2) .92 .44 1.16 .74 .49 .49 .44 .47 .48 1.07 1.02 1.10 1.04 1.05 . Average term of bonds included is 22-24 years. The series includes bonds due or callable in 10 Only general obligation bonds are included; average term is 20 EXHIBIT B, P o r t 1 L O N G - T E R M B O N D YIELDS, LOWER GRADE Weekly CORPORATE B a a Moody S T A T E AND LOCAL GOVERNMENT B a a Moody's 1964 1965 1966 1967 1968 Exhibit B -- Part II Date State and local govt. Baa 3/ Corporate Baa 1/ „ (per cent) 1959-60 - High Year end- 1965 1966 - High Low 1967 - High Low Apr. May 28 5 12 19 V26£/ Note: 5.36(2/12/60) 5.04 6.18(12/30) 5.05(1/14) 6.15(1/6) 5.81(4/14) 4.46(1/7/60) 3.79 4.55(8/25)., 3.78(1/20) 4.27(5/25) 3.85(4/13) 5.85 5.89 5.92 5.96 6.03 ^ 3.97 4.15 4.25 4.25 4.27 For footnotes see Exhibit A, Spread between Aaa and Baa State and Corporate local govt. .84 .31 .81 ,31 .82 .69 .74 .73 .73 .70 .72 1.08 .39 .62 .31 .65 .37 .42 .50 .60 .50 .49 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 R A T E S kr, GOVERNMENT W..kl» 6-MONTH BILLS Market 3 - 5 YEAR I S S U E S http://fraser.stlouisfed.org/ 1963 Federal Reserve Bank of St. Louis Yields F.R. DISCOUNT RATE New York 3-MONTH BILLS Market Yields 1966 1967 1968 Exhibit C -- Part II Discount rate _ 1 L 1959-60 - High Year end - 1965 1966 1966 - High Low 1967 - High Low 4.00 4.50 4.50 4.50 4.50 Apr. May 4.00 4.00 28 5 12 4.50 4.00 4.00 4.00 J&R/ 4.00 v 3-month bins y 4.59(1/8/60) 4.47 4c 80 5.52(9/23) 4.39(6/24) 4.81(1/13) 3.50(5/26) 3.72 3.72 3.65 3.59 . 3.50 ^ Yields 6-month bills 1/ (per cent) 3-5 year issues U Spread between yields on 3-mo. bills and yields on 6-mo. bills I 3-5 yr. issues .79 .19 ,12 o 512 .09 1.81 .43 .06 .78 .01 4.82(1/6) 4.36(4/7) .24 .01 1.26 .02 4.58 4.62 4.67 4.69 4.76 .09 .14 .18 .19 .24 .86 .90 1.02 1.10 1.26 5.07(1/8/60) 4.66 4.92 5.92(9/23) 4.53(6/24) 5.00(12/24/59) 4.90 4.86 5.83(9/2) 4.80(4/8) 4.88(1/6) 3.74(5/26) 3.81 3.86 3.83 3.78 3.74/ 1/ Weekly rate s h L n Is that in effect at end of period at the Federal Reserve Bank of 2/ Marke° r yield; weekly averages computed from daily closing bid prices. Series of 3-5 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 HATES B A N K S A N D OTHER PRIVATE B O R R O W E R S o w **kly PRIME RATE FINANCE COMPANY PAPER Directly placed F.R. DISCOUNT RATE FEDERAL FUNDS Effective Rate 1965 1967 1968 Exhibit D — Prime rate 1/ Date Finance company paper 2/ I 1959-60 - High Year end- 1964 1965 1966 1966 - Low 1967 - High Low Apr. May 28 5 12 19 26|>/ 5.00 4.50 5.00 6.00 5.00(3/4) 6.00(1/6) 5.50(5/26) 5.50 5.50 5.50 5.50 5.50 Part II (per cent) 5.13(1/22/60) 4.06 4.75 5.88 4.75(1/7) 5.75(1/6) 4.38(5/26) 4.38 4.38 4.38 4.38 4.38 Spread between 3-mo. bills and Federal funds 3/ finance co. paper 4.00(5/13/60) 4.00 4.63 5.63 3.55(1/21) 5.25(1/6) 3.75(5/12) 4.00 4.05 3.75 4.03 3.90 1.02 .23 .28 1.08 . 20 .88 .52 .66 .66 .73 .79 .88 •? c • ofo 1/ Weekly rate shown is that in effect at end of period. Prime rate is that ~~ charged by large banks on short-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, which is the rate for the heaviest volume of purchase and sale transactions as reported to the Federal Reserve Bank of New York. 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. EXHIBIT E, Part 1 STOCK MARKET Billion* of 1941-43 dollars a v e r o g e = 10 PRICES 10 100 8 / STOCK MARKET CREDIT 6 * CHANGE IN SERIES 4 , , ' •' Millions of M i l l I ' VOLUME - /||\J\ \ \ YIELDS i i i i ti i i i i i M 1963 i ' i i i' i i i I i 1964 ' 1 II Y\ 1 Mill 1965 i i i n i i i i i i 1966 I I II 1 1 I 1 1 1 1 1967 ; II II 7 1968 shares Exhibit E — Date 1961-62 - High Low 1966 - High Low • 1967 - High Low Mar, Apr, May 12 19 26£/ Stock price index V Common stock yields 2/ (per cent) Part II Stock market customer credit Trading Bank Customers' 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) : 94.44(5/5) 82.18(1/6) 2.82 3,96, 3.01 3.97 3.10 3.58 10.1 2.4 10.7 5.0 11.3 6.9 89.42 90.96 93.48 92.07 90.98 3.27 3.22 3.14 3.19 3.21 10.2 9.4 10.5 9.9 9.3 5,602(12/61) 4,424(1/61) \7,997 7,302 7,969 7,345 7,808 7,969 n.a. n.a. 4,259(12/61) 3,253(1/61) 5,835 5,169 5,819 5,290 1,418(5/9/62) 1,161(3/8/61) 2,241(7/6) 2,097(12/14) 2,151(5/24) 2,055(2/1) 5,718 5,819 n.a. n.a. n.a. 2,090 2,150 2,135 2,151 n.a. Not Available. p/ Preliminary. 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. 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 or low. 3/ Averages of daily trading volume on the New York Stock Exchange. Year-end figures are averages of daily figures for the year. 4/ 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. 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. H EXHIBIT F, Port I MORTGAGE AND BOND YIELDS T11 I I I I I I I ll.l I I I II j 7 HOME MORTGAGES: Aaa CORPORATE BONDS: 111111 n 1957 1958 ,959 I960 1961 1962 1963 1964 1965 11 1 ii1ri1M1111 3 1966 / tr Exhibit F Part II - Conventional mort25-year 30-year gages 3/ FHA 2/ mortgages —' 1957 1958 1959-60 1961-66 1966 1967 1967 17 1/ 3/ .4/ 5/ 6/ - High Low High Low High High Low 5.63 5.35 6.24 5.43 6.73 —— -- 1 - Jan. | n. a. Feb. | n. a. Mar. I n. a. Apr. n. a Spread between yields on conv. & FHA mort-^, gages Aaa Corporate Bonds Spread between yields on new cor6/ porate bonds and New"^ Seasoned FHA mtgs. Seasoned 4/ bonds 5.44 6.81 6.62 6.29 6.00 5.55 6.30 5.80 6.70 6.60 6.40 .47 .15 .23 .25 .30 .11 .02 4.94 3.65 5.25 4.12 5.82 5.39 5.20 4.12 3.57 4.61 4.19 5.49 5.20 5.03 1.58 .88 1.69 .77 1.11 1.26 .90 1.03 .05 .73 -.16 .46 .28 .17 6.62 6.46 6.35 6,29 * 6.60 6.50 6.45 y 6.40 Z .02 .04 .10 .11 5.38 5.20 5.31 5.39 5.20 5.03 5.13 5.11 1.24 1.26 1.04 .90 .18 .17 .18 .28 — — Neither mortgage nor bond yields take into account servicing costs which are much higher for mortgages than bonds. Generally, bonds pay interest semi-annually; mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the table. Based on FHA-field-office opinions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Separate data available for 25-year and--beginning July 1961--30-year mortgages with minimum downpayments, weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgagee. Over the period for which they can be compared, the movement of the two mortgage yield series has been similar. Dashed lines indicate periods of adjustment to changes in contractual interest rates. Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities. Beginning with April 1960, rate relates only to new-home mortgages; prior to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series. FHA mortgage yield data are for 25-year mortgages through June 1961; 30-year mortgages thereafter. See note for Exhibit G. Moody's Investor Service. Monthly averages of daily data. See Exhibit A. EXHIBIT F. Port IE C O N V E N T I O N A L M O R T G A G E MONTHLY TERMS ^ ^ MATURITY N E W E X I S T I N G LOAN PRICE/RATI O N E W E X I S T I N G 1964 1966 * C H A N G E IN SERIES I 1 Exhibit F New Homes Con- Fees & tract Charges Maturity (Years) Rate (Per cent) (Per 2/ cent) 1966 Apr. May June July Aug. Sept. Oct. Nov. Dec. Dec.* Loan/ Loan Price amt. ratio (Thous.) (Per cent) Existing Homes Loan/ Loan Con- Fees & tract Charges Maturity Price amt. (Years) ratio (Thous.) Rate (Per (Per cent) (Per cent) 2/ cent) 20.1 74.0 19.0 71.1 19.2 71.0 71.5 ; 18.7 18.6 71.4 72.3 18.5 6.09 6.16 6.18 6.24 6.35 6.40 6.49 6.50 6.52 6.55 19,.3 72.2 14.5 71.8 14.7 14.7 14.3 14.7 14.0 14.1 14.1 13.8 14.7 6.12 6.18 6.22 6.32 6.40 6.44 6.49 .89 .91 1.26 6.47 1.17 23.,8 73.3 6.54 .78 20.6 71.4 15..2 6.44 6.41 6.38 1.07 1.06 23.,6 23.,6 LOO 23.,7 6.49 18..0 73.8 6.44 74.1 - a s ..7 18- 7 . 6.36 73.4 .75 .77 .73 20.4 21.1 20.9 71.7 71.8 7-2.2 15..2 15..4 1.1. 6.07 .80 72.1 18.2 19.2 19.7 19.3 20.6 20.6 20.0 24.6 24.7 24.8 24.2 25.4 24.3 23.6 23.6 23.2 23.3 6.02 73.9 73.4 74.4 .54 .57 .57 .57 .67 .83 .83 5.99 1967 Jan. Feb. Mar. r/ Apr. Part IV .56 .47 .52 .61 .64 .71 .74 .70 .81 19.9 19.8 19.4 19.2 19.5 19.1 20.2 70.6 70.5 70.6 69.5 69.5 69.5 69.4 70.8 1/ C o m p i l e d ^ Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender groups-, (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning, or modernization; construction ;oan<= to home-builders; a n d - i n this, exhibit-permanent loans which are coupled with construction loans 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 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 and II. 2/ Fees and charges--expressed as a percentage of the principal mortgage amount-include loan commissions, 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 NEW AND SEASONED CORPORATE BONDS Weekly Adjusted lo Aaa Basis NEW I S S U E S I SEASONED A a a Moody's i i i i i i i i i i i I i i i 1964 1965 1966 1967 i i ii 1968 i i i i I 4.0 Exhibit G - II Yields on New Corporate Bond Issues Adjusted to an Aaa basis Number of * Number of issues Am't. of issues Average yield included (mill. (oer cent) of dollars) Monthly averages: 1967 Jan. Feb. Mar. Apr. Weekly averages: High Low 6 7 20 20 496.0 481.0 1073.0 916.0 5.38 5.20 5.31 5.39 May 5.73(5/26) 5.11(2/10) on all ne of the offerings included are denoted by an asterisk. Am't. of issues Average yield included (mill. (per cent) of dollars) 70.0 118.0 77.0 305.0 5.58 5.62 5.70 5.73- 2 P Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) New Capital 1967 Corporate 1966 1965 1,302 1,237 2,446 795 746 1,197 1,553 1,058 2,364 1,152 1,691 1,946 July August September 1,039 1,670 1,382 October November December January February March April May June 1st 2nd 3rd 4th ; Quarter Quarter Quarter Quarter y 1,648 1,399 / 2,317 z e/2,100 e/2,000 e/2,200 5,363/ 1st half Three quarters Year 2/1967 State and local 2/ 1966 1965 1,461 1,174 1,425 1,188 858 865 804 872 904 e/1,000 e/l,100 e/1,200 1,194 902 1,141 826 924 972 1,290 850 1,392 im 773 1,074 986 648 966 829 1,096 1,635 924 1,325 1,496 747 967 940 794 1,021 754 4,985 4,974 4,091 3,550 2,738 4,7&9 3,533 3,745 2,911 3,237 2,548 2,654 2,580 2,722 2,600 2,569 9,959 14,050 17,601 7,527 11,060 14,805 6,148 8,696 11,350 5,302 7,902 10,471 4,060 Excluding finance companies 3j 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year ej jV JL/ 2/ 3/ 4,924 4,884 3,969 3,492 2,547 4,348 3,283 3,188 17,269 13,366 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 Z I Exhibit I New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) Quarter or Month Total 375 392 567 417 1,418 1,309 918 ,811 390 60 2,442 997 543 1,382 628 481 832 440 1,140 676 499 569 980 743 556 784 535 435 657 256 435 555 210 69 811 110 137 67 137 111 127 86 33 49 69 22 62 66 27 24 692 376 1,137 397 518 643 331 228 673 364 274 322 263 313 81 254 320 409 76 40 276 52 318 198 97 168 152 421 368 629 327 522 745 900 1,618 1,355 848 362 601 600 91 156 143 200 35 10 15 n.a. 624 563 1,254 1,265 220 274 503 400 293 105 145 85 511 456 415 350 2,083 1,090 247 I II 5,464 3,263 1966 - Apr. May June July Aug. Sept. Oct. Nov. Dec. 1,582 1,1Q6 2,427 1,085 1,712 1,400 892 1,115 1,661 1967 - Jan. Feb. Mar. Apr.e/ May June 1,684 1,418 2,362 2,155 SOURCE: Other Public CommuniUtility cations Issuers 960 657 984 1,941 2,256 2,047 I Mfg. 2,205 1,558 1,232 5,115 4,197 3,669 1967 2 / 168 154 117 II III IV 1966 Net proceeds Gross proceeds for new capital and refunding 1/ Common Memo: Bono s Foreign Publicly Privately and pfd. issues Offered Placed stock included Securities and Exchange Commission. . - 460 147 369 401 Exhibit J Other Security Offerings (In millions of dollars) Gross Long-term 1/ Federal Agency 3/ Foreign Government 2/ 1965 1966 1967 1965 1966 1967 130 114 12 40 40 66 69 76 72 7 50 74 68 1,251 783 750 n.a. 218 38 73 91 33 74 . 5 52 75 2 158 329 598 661 n. a. 503 410 392 699 1,030— 1,084 799 400 . 450 800 239 639 2,732 M M Reserve. 422 518 1,286 n.a. — 239 150 375 375 179 1,305 New-short-term 4/ Federal Agency 308 -179 -24 -552 450 -454 718 n.a. 85 284 -590 -270 -652 -555 -283 219 403 — 775 6,806 State and local Government 5/ 238 103 W 1 7 9 91 39 £/ 351 • -458 -319 £/-678 647 580 £/ 818 204 462 -82 , -334 119 -103 408 270 152 -161 59 -48 274 503 -366 -570 £/ 670 129 185 325 3/ -137 -174 117 -11 509 237 132 206 105 -309 202 -76 1,452 -205 -748 801 H.14 Exhibit K Large Long-term Public Security Iseuea for New Capital (Other than U. 8. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) Total |1966- Apr. J . May y June July % Aug. & Sept. £ Oct. 'I Nov. 1 Dee. 41967- Jan. % Feb. Mar. # Apr. | & | - .643 401 1,317 402 1,189 627 523 510 1,177 681 842 1,638 1,311 Corporate Bonis Convertible (other than bonds convertibles) 9 Stocks 106 55 50 20 182 257 340 116 97 118 30 40 140 213 481 351 636 170 862 287 352 363 990 611 709 1,435 956 State and local governments 661 50 80 -- 55 50 68 40 93 63 142 2/ 60 720 466 582 338 410 611 387 464 669 947 675 779 512 -- Other — 275 15 -- 50 55 60 230 530 1,000 540 Large Individual Issues Offered May 1 through 26 Issuer Type 2/ 1 1 Corporate |Tenneco Corporation ,Pa. Pwr. & Lt. Co. gMichigan Wise. P.L. Co. Amount (millions of S*F. deb. Com. stk. 1st mtg. p.l. bds. 1 Potomac Elec. Pwr. Co. 1st mtg. bds. Western Union Telegraph Ca Conv. pfd. stk. iLTV Electrosysterns, Inc. Coirv. sub,, deb. [Central 111. Pub. Serv. Ca 1st mtg. bds. Public Service Co., New Mexico 1st mtg. bds. Flying Tiger Line, Inc. Equip, tr. cert. Cutler-Hammer, Inc. S.F. deb. Texas Electric Service Co. 1st mtg. bds. Southern Calif. Edison Co. lst&ref.mtg.bds. Continental Air Lines Conv. sub. deb. Kansas City Pwr.&Llght Co- 1st mtg. bds. Connecticut Pwr.&Light Co. lst&ref.mtg.bds. Interstate Power Co. 1st mtg. bds. Eastern Associated Coal Deb. Maturity Coupon rate or net interest cost Offering vield Rating 50.0 18.6 1987 6-1/2 6.50 Ba 45.0 35.0 25.1 20.0 15.0 1987 2002 6-3/4 5-7/8 6.50 5.75 A Aa 1992 1997 4-1/2 5-7/8 4.50 5.72 Aa 20.0 51.0 20.0 18.0 80.0 35.0 30.0 30.0 17.0 25.0 1997 1980 1992 1997 1992 1987 1997 1997 1997 1987 5-7/8 6.60 5-3/4 6-1/8 5-7/8 3-1/2 5-3/4 6 6-1/8 6-1/2 5.77 6.60 5.70 5.95 5.78 3.50 5.73 5.90 6.10 6.50 A Baa A Aa Aa Ba Aaa Aaa A Baa Large Individual Issues Offered May 1 through 26 (Cont'd) Issuer Type 31 Amount (millions of dollars) Maturity Coupon 1 1 rate or |Offer- | net inter-jing est cost 1vield 1 Rating Corporate (Cont'd) Burroughs Corporation Michigan Console Gas Co. Carborundum Corporation Chesapeake & Potomac Tel. Co. of Maryland * Atlantic Richfield Company Bristol-Myers Company Deb. 1st mtg. bds. Deb. Deb. S.F. deb. S.F. deb. 30.0 35.0 30.0 1996 1987 1992 6 6-3/4 6 6.00 6.75 6.00 A Baa A 60.0 100.0 50.0 2004 1997 1992 5-7/8 5-5/8 5.70 5.80 5.63 5.70 Aaa Aa Aa 4/ 3 .30-4.752 .50-3.65 2 .50-3.75 2 .80-4.25 3 .00-3.75 2,,75-4.00 2,,60-3.97 . 2,,90-3.90^/ 2,,60-4.07 2,,50-3.70 2..60-4.00 3c,00-4.50 2.,70-4.00 3.,00-4.00 2.,55-3.90 2. 60-4.00 2. 60-4.00 3. 50-4.25 Aaa Aa A A A Aa Aa A Aaa Aa Baa Aa A Aa A A State and local Government Illi State University Hartford, Connecticut Kansas City Sch. Dist., Mo. Baltimore County, Md. State of Rhode Island New Orleans, Louisiana State - of California Pa. St. Hwy c & Bridge Auth. Tenn. St. Sch. Bond Auth. State of Connecticut Georgia Education Auth. State of Alaska Georgia Bldg. Authority State of Hawaii' Cincinnati, Ohio Philadelphia, Pennsylvania Pittsburgh Sch. Dist., Pa. State of Mississippi Rev.-Rent. G.O. G.O. G.O. G.O. G.O. G.O. Rev. -Q. -Ut. Rev.-Rent. G.O. Rev.-Rent. G.O. Rev.-Rent. G.O. G.O. G.O. G.O. Rev.-S.T. 15.2 14.6 10.0 14.0 15.8 17.8 100.0 60,0 43.8 62.5 22.0 16.5 13.7 20.0 12.3 17.2 20.0 10.5 1969-2007 1968-87 1968-87 1969-97 1969-82 1968-91 1.968-92 1968-88 1968-2007 1968-87 1968-93 • 1968-92 1968-92 1970-87 1968-97 1968-92 1968-92 1972-87 4.78 3.56 3.65 3.90 3.70 3.96 3.89 3.79 4.09 3.58 3.93 4.50 3.91 3.88 3.76 3.93 3.91 4.19 Consol. farm loan bds. Notes 341.0 50.0 1969 1967 4-3/4 n.a. -- a ' * i. n i Other Federal Land Banks Tennessee Valley Auth. n.a. n.a. -- ^--Rights offeringo n.a. - -Not available. V Includes corporate and other security offerings of $15 million and over; State and local, 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. iv, 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.-Rent., revenue bonds secured solely by lease v payments. 4/ Bonds due 2007 not publicly reoffered. 5/ Bonds due 1988 not publicly -% .reoffered. Bonds due 1992 not publicly reoffered. 3 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 Ieeuee (In millions of dollars) During month following date shown State and Other 2/ Corporate local 1966 • Apr. 30 May 31 June 30 July 29 Aug. 31 Sept.30 Oct. 31 Nov. 30 Dec. 30 61967 - Jan. 31 Feb. 28 Mar. 31 Apr» 30 399 584 337 403 515 300 140 496 939 780 508 227 326 248 1,261 317 677 662 687 397 1,098 656 486 1,410 767 963 30 15 40 80 530 250 70 Corporate Subsequent to data ahown State and local govt. 1,034 1,261 619 697 853 767 457 1,133 811 706 1,534 905 1,262 546 584 353 403 685 390 175 571 1,154 851 528 247 346 Other 2/ 55 85 50 35 90 35 35 65 95 545 .265 15 85 Forthcoming Large Offerings as of May 26; (millions Approximate date of offering dollars) I Corporate |c.IoT= Financial Corporation !Arizona Public Service fwickes Corporation :Kerr-McGee Corporation jUnited Utilities J Mid-Continent Telephone ' Humble Pipe Line ?Northern States Power Company ! Texas Gas Transmission Corp. [ Lone Star Gas Company 1 Southwestern Bell Telephone Co. Pennsylvania Electric Company Union Tank Car Automatic Sprinkler Consolidated Electronics State Loan and Finance Deb, 1st mtg. bdso Deb, Conv. debo Comm. stko Conv. deb. Deb. 1st mtg. bdso Deb. S.F. debo 1st mtg. bds. 1st mtgo bds. Equip, trust cert. Conv. sub. debo Convo deb. Debo 75 o0 25.0 15o0 95.5 35.0 20.0 30.0 30.0 40.0 30.0 150.0 26o0 30.0 23.0 30.0 35.0 June June June June June June June June June June June June June June June June 1 1 1 6 (rtso exp») 6 6 6 7 7 8 8 9 12 12 12 12 expo) L-2 Forthcoming Large Offerings as of May 26 (Cont'd) Amount (millions of dollars) Issuer Approximate date of offering Corporate (Cont'd) . Great -Western Financial Conv. deb. 18.0 Mountain Fuel Supply Deb. 20.0 Ohio Power Company 1st mtg. bds. 50.0 Ohio Power Company Deb. 20.0 Puget Sound 5 Power & Light 1st mtgo bds. 20.0 *United Shoe 1 Machinery S.F. deb* 25.0 20.0 Washington Gas Light, 1st mtgo bds. 23.0 Orange & Rockland Utilities 1st mtgo bdSo Public Service.Elec. & Gas 1st mtg. bdSo 75.0 Boston Edison 1st mtgo bdSo 40.0 *Pub. Serv. Co. of New Hampshire 1st mtg. bds. 15.0 1st mtgo bds. 125.6 *Illinois Bell Telephone 1st mtg. bds. Sierra Pacific Power 15.0 Conv. deb. 25.0 Broadway-Hale Stores Conv. sub. deb. 30.0 LTV Okanite Comm. stk. Continental Oil 180.0 Deb. 50.0 ' Montgomery Ward Credit Corp. 250.0 Deb. American Telo & Tel." SoF. deb. 100.0 Textron, Incorporated 20.0 Conv. deb. *Airlift International 25.0 Deb. *Pet, Incorporated . 1st mtg. bdso 75.0 Philadelphia Elec. Company Conv. sub. deb. 41.0 S.S. Kre'sge 25.0 Conv. sub. deb. Scientific Data Systems 1st 5c ref. mtg. bds.. 15.0 South Carolina Elec. & Gas . June 12 June 13 June 13 June 13 * June 13 June 14 June 15 June 16 June 21 June 22 June 22 June 28 June 29 June June June (rts. exp.) June August 1 Indefinite Indefinite Indefinite Indefinite Indefinite (rts. Indefinite June 14 State and local Government Ala. Corrections Institution Fin. Autho, Montgomery Harris County, Texas Metro. Water Dist., of So. Calif 0 Wyoming University *City of New York, New York *New York State Dorm. Auth. South Louisiana Port Comm c Housing Assistance Admin. PaQ General State Auth., Harrisburg State of Maryland Rev.-S.T. Rev.-S.T. 10.0 10.0 Rev.-Uto Rev.-Rent. G.Oo Re.Vo-Rent = ReVo-Qo-Uto Bonds 100.0 24.8 28.9 14.9 11.0 116.7 Rev.-Rent, G.Oo 75.0 34.7 May 31 June 5 June June June June June June 6 6 6 6 7 7 June 20 June 20 •2 7 L-3 Forthcoming Large Offerings as of May 26 (Cont'd) Issuer Type Amount (millions of dollarsV Approximate date of offering State and local Govt. (Cont'd) •Dallas IoS.D., Texas *Los Angeles City U.S.D., Calif. *San Francisco BARTS, Calif. *Los Angeles Dept. of Water & Power, California Metro; St. Louis Sewer Dist., Mo. 20.0 G.O. G.O, G.O. 30.0 70.0 Rev. -Ut. G.O. 20.0 12.0 May 31 Indefinite Bonds 50.0 June Bonds Bonds 50.0 15.0 June Indefinite June 27 June 28 June 28 Other Quebec Hydro-Electric Comm. British Columbia Hydro & Power Commission Nippon Telo & Tel« Pub. Corp* 1 *—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; New York City, New York's $96.0 million issue and New York State Housing Finance Agency's $68.0 million issue -- postponed. <r6 Exhibit M Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Amount (millions of dollars) Sale Date. Issuer and Description of Issue A. / Public Offerings Sold March 1 through May 26 International Bank for Reconstruction and Development -5-3/8% debentures maturing 1992, reoffered to yield 5.35%. 3/14 250.0 " 3/21 75.0 Province of O n t a r i o — 5-5/8% debentures maturing 1997, reoffered to yield 5.625%. 4/20 25.0 Government of Mexico — 7% external sinking fund bonds maturing 1982, reoffered to yield 7.11%. , % B. Prospective Offerings June 1 50.0 Quebec Hydro-Electric Commission -- Bonds June 50.0 British Columbia Hydro & Power Commission — Indefinite 15.0 Nippon Telegraph and Telephone Public Corp. — *—Included in table for first time. **—Issue sold to investors outside of U.S. ***--Issue subject to interest equalization tax. Bonds Bonds M-2 PART II: Date Reported ' H. 14 Private Placements - Reported March 1 through May 26 Amount (millions of dollars) Issuer and Description of Issue 3/1 45.0 Province of Quebec — 5-7/8% bonds, maturing 1997 — no information available on takedown. 4/17 15.0 Northern and Central Gas Company — 6% debentures with warrants maturing — n o information • available on takedown. 4/17 6.0 Ralston Purina of Canada, Ltd. — 6-3/4% debentures maturing 1987 — no information available on takedown. 5/8 25.0 British Columbia School Districts Capital Financing Authority — % (U.S.) guaranteed debentures maturing 1987 — no information available on takedown. 5/8 5.1 . Sorenco Ltd. — % secured notes maturing 1987 — information available on takedown. no 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.