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I
Not for Publication DECONTROLLED AFTER SIX MONTHS
September 23, 1968.
JL
\
CAPITAL MARKETS DEVELOPMENTS
IN THE UNITED STATES
A,
n/iaAAJut
\ -l" r ,y bv '-Corpor^jes and municipal bond markets. The volume of new corporate
\securjjbiee-^5cpected to be offered this week will approximate the average volume ,
rotr<such issues over the past year. Dominating the new issues is a $150 million
negotiated bond offering by Detroit Edison Company. State and local government
offerings expected this week will be substantially below average with no issues
of outstanding size.
Long-term Public Security Offerings —^
(In millions of dollars)
Corporate
New Capital | Refunding
State and local Government
New Capital | Refunding
Sold;
52 week avg.
295
1
277
September
13
r/263
r/280
September
20
120
527
27
320
1
—
—
Scheduled:
September
If
—
148
—
Federal Reserve estimates are based upon published reports of
issues sold and scheduled for offering; corporate rights offerings
are included as of date subscription rights expire.
Yields on new corporate bonds declined last week - - t h e first
weekly decline since early in August. Investor response accorded the sole
straight-debt issue last week was good, with about four-fifths of the issue
sold-out the close on Friday. Underwriters reported some success last week
in reducing the volume of unsold bonds in'syndicate.
Municipal bond yields were mixed last week but, on balance, declined
slightly. The huge'volume of new issues that entered the market last week was
well received by investors and about 90 per cent were spoken for by week-end.
Private housing starts and permits. Seasonally adjusted private
housing starts, which had risen sharply in July from a reduced May-June rate,
dipped only 2 per cent in August to an annual rate of 1,508 thousand. Single
family starts dropped after an initial fillip in July -- by 5 per cent -- to
one of the lowest rates this year and were also below a year earlier. However,
multifamily starts advanced 3 per cent further and were not far from the recent
peak of last April.
H. 14
,r
ields on Security Markets
Change from
preceding week
High-Grade
Notes and Bonds
Corporate
6.24
5.97
New
Seasoned
U.S. Government
5.08
5.27
Long-term
3-5 year
State and local Gov't.
Moody's Aaa
Std. & Poor's high grade
4.21
4.45
Money Market
Federal funds
Treasury bills
3-month
6-month
10
5.60
5.18
5.25
-
10
-
6
Corporate Bonds Still in Syndicate
Date
Offered
Amount
(millions of $)
Issuer
Reoffering
Yield ' Rating
Estimated pro*
portion sold'^
9/19
30.0
New York State Elec.. & Gas,
6-1/2's - 1988
6.40
Aa
80%
9/10
60.0
Tenneco,
7's - 1988
7.00
Baa
80%
New England Tel. & Tel.,
6-3/8's - 2008
6.35
Aaa
35%
125.0
9/9
Blue List of Municipal Dealers' Advertised Inventories
Latest Week
634(9/17/68)
End of Previous Week
652
1968 High
849(8/28/68)
H. 14
Regionally, there was a drop of one-fifth in the Northeast,
which had played a major part in the rise in July, induced in part by a
long-anticipated upward adjustment in usury-ceiling rates in New York
and New Jersey. And starts in the North Central states also turned down
in August. But those in the West -- the only region which had not shared
in the July advance. -- turned upward by a fifth to a new high for the year,
and starts in the South also rose.
Government-underwritten shares accounted for 19 per cent of total
starts in August. This compared with 18 per cent a year earlier and 17 per
cent in 1966 and other recent years.
Seasonally adjusted building permits — revised upward by 4 per
cent for July -- dipped 3 per cent in August. Although all of the decline
was concentrated in permits for miltifamily structures, altogether, the
rate of total permits in August was relatively low - - a t 1,246 thousand
more than a tenth below the recent peak reached last March.
Stock prices. Common stock prices advanced last week in active
trading. Standard and Poor's composite index of 500 stocks closed on Friday
at 101,66 — a week-to-week gain of 0.80 points. Trading volume averaged
14.8 million shares per day, 2 million shares above the week earlier trading
pace.
More detailed information concerning recent capital market develop
ments is presented 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 BOND YIELDS, H I G H - G R A D E
CORPORATE A l l
U.S. GOVERNMENT
_r
STATE AND LOCAL GOVERNMENT A l l
1963
1964
1965
1967
\
Exhibit A -- Faru II
•
Date
! Corporate
; Aaa 1/
i
1
1959-60 - High
1966 - High
- Low
1967 - High
- Low
4.61(1/29/60)
5.52(9/9)
4.73(1/7)
6.24(12/29)
5.00(2/10)
1 State and
U.S. Govt. |
local
long-term 2/, government
Aaa 3/
(per <:ent)
4.42(1/8/60)
4.87(9/2)
4.42(1/7)
5.49(11/17)
4.37(2/3)
|
I
|
3.65(9/24/59)
4.04(8/25) '
3.39(1/13)
4.15(12/28)
3.25(2/9)
L
Spread between
U.S. Govt, arid
State and
Corporate
local Aaa
Aaa
.59(8/5/60)
.84(12/30)
.14(2/18)
o92(4/22/60)
1.19(2/11)
.77(9/2)
.92
.44
1.51
.74
,
1968 - Aug.
2./
1/
2/
3J
23
.89
1.04
4.05
5.09
5.98
5.06
.81
4.25
.91
30
5.97
.88
.82
5.07
4.25
Sept. 6
5.95
4 ..25
.83
.87
5.12
13
5.95
.89
4-21
5.08
.87
20P1Z 5. 97
Preliminaryo
Weekly average of daily figures. Average term of bonds included is 22-24 years.
Weekly average of daily figures. The series includes bonds due or callable in 10
years or more.
Thursday figures. Only general obligation bonds are included; average term is 20
years.
Note--Highs and lows are for individual series and may be on different dates for
different series. For spreads, high refers to widest, and low to narrowest.
EXHIBIT B. Port 1
L O N G - T E R M B O N D Y I E L D S , LOWER GRADE
Weekly
CORPORATE Baa
STATE AND LOCAL GOVERNMENT Baa
1964
1965
1966
1967
1968
Exhibit B -- Part II
Date
State and
local govt.
Baa 3/
Corporate
Baa 1/
(per cent)
Spread between
Aaa and Baa
State and
Corporate
local Rovt.
1959-60 - High
Year end- 1965
1966 - High
Low
1967 - High
Low
5.36(2/12/60)
5.04
6.18(12/30)
5.05(1/14)
6.97(1/29)
5.81(4/14)
4.46(1/7/60)
3.79
4.55(8/25)
3.78(1/20)
4.73(12/28)
3.85(4/13)
.84
.31
.81
.31
.82
.63
1.08
.39
.62
.31
.81
.37
1968 - Aug.
6.80
6.79
6.79
6.80
6.79
4.70
4.80
4.80
4.80
4.78
.82
.82
.84
.85
.82
.65
.55
.55
.55
.57
23
30
Sept. 6
13
20 £ Z
Note: For footnotes see Exhibit A.
£/ Preliminary.
EXHIBIT
C, Port 1
SHORT- A N D INTERMEDIATE-TERM INTEREST RATES
GOVERNMENT
6-MONTH BILLS
Market Yields
3-5 YEAR ISSUES
F.R. DISCOUNT RATE
3 MONTH BILLS
Market Y i e l d i
1963
Exhibit C —
Discount
rate
1/
1959-60 - High
Year end - 1965
, 1966
1966 - High
Low
. 1967 - High
Low
1968 - Aug.
23
30
Sept. 6
13
20 £ /
4.00
4.50
4.50
4.50
4.50
4. 50
4.00
5.50
5.25
5.25
5.25
5.25
Yields
6-month
bills U
(per cent)
3-month
bills y
4.59(1/8/60)
4.47
4=80
5.52(9/23)
4.39(6/24)
4.99(12/29)
3.41(6/9)
5.15
5.18
5.21
5.28
5.18
Part II
i'
5.07(1/8/60)
4.66
4.92
5.92(9/23)
4.53(6/24)
5.50(12/12)
3.74(6/2)
5.24
5.26
5.22
5.31
5.25
3-5 year
issues U
Spread between yields on
3-mo. bills and yields on
6-mo. bills 13-5 yr. issues
5.00(12/24/59)
4.90
4.86
5.83(9/2)
4.80(4/8)
5.80(11/10)
4.36(4/7)
5.36
5.33
5.30
5.36
5.27
.79
.19
.12
o 52
.09
.62
.01
1.81
.43
.06
.78
.01
1.61
.02
.09
.08
.01
.03
.07
1/ Weekly rate shown Is that in effect at end of period at the Federal Reserve Bank of
2/ Marklt r yield; weekly averages computed from daily closing bid prices.
£/
Preliminary.
Series of 3-5
.21
.15
.09
.08
.09
EXHIBIT
D, Port 1
S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES,
B A N K S A N D OTHER P R I V A T E BORROWERS
Weekly
PRIME RATE
FINANCE COMPANY PAPER
Directly ploced
—
F.R. DISCOUNT RATE
FEDERAL FUNDS
1963
1965
1966
Exhibit D —
Date
Prime rate 1/
Part XI
Finance
company
paper 2/
Federal funds 3/
Spread between
3-mo. bills and
finance co. paper
(per cent)
1959-60 - High
Year end- 1964
1965
1966
1966 - Low
1967 - High
Low
5.00
4.50
5.00
6.00
5.00(3/4)
6.00(12/29)
5.50(12/1)
6.50
23
6.50
30
Sept. 6
6.50
6.50
13
20p f 6. 50
1968 - Aug.
5.13(1/22/60)
4.06
4.75
5.88
4.75(1/7)
5.75(1/6)
4.38(6/23)
5.75
5.63
5.63
5.63
5.63
4.00(5/13/60)
4.00
4.63
5.63
3.55(1/21)
5.25(1/6)
3.40(10/27)
5.95
5.93
5.94
5.70
5.60
/
1.02
.23
.28
1.08
.20
1.33
.21
.60
.45
.42
.35
.45
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.
37 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.
j>/ Preliminary.
EXHIBIT
E, Port 1
STOCK MARKET
. Billions
of
1941-43
dollar*
ov*rag«-)0
100
PRICES
STOCK MARKET CREDIT
* CHANGE IN .SERIES
VOLUME
YIELDS
1964
1965
1966
1967
1968
Exhibit E —
Date
Stock price
index 1/
Common
stock
yields 2/
(per cent)
Part II
Trading
Stock market customer credit
volume 3/
Customers'
Bank
(millions
Total
debit bal- loans to
of shares)
ances^/
others"5/
(In millions of dollars)
1961-62 - High
Low
1966 - High
Low
1967 - High
Low
72.04(12/8/61)
52.68(6/22/62)
93.77(2/11)
73.20(10/7)
97.26(10/67)
82.18(1/6)
2.82
3.96
3.01
3.97
3.01
3.58
10.1
2.4
10.7
5.0
12.3
6.9
5,602(12/61)
4,424(1/61)
7,997
7,302
10,347(12/67)
7,345(1/6)
4,259(12/61)
3,253(1/61)
5,835
5,169
7,883(12/67)
5,280(1/67)
1,418(5/9/62)
1,161(3/8/61)
2.241(7/6)
2,097(12/14)
2,057(11/1)
2,055(1/25)
1968 - July
Aug.
100.30
98.11
2.98
3.09
14.3
10.9
11,270
n.a.
8,854
n. a.
2,424
n. a.
1968 - Sept. 6
101.20
13
100.86
20j>/ 101.66
3.01
3.02
2.97
11.4
12.8
, 14.8
n. a.
n. a.
n. a.
n. a.
n. a.
n. a.
2,494
r/2,497
n.a. Not Available, p,/ Preliminary, r/ Revised.
'
—
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
6
or low.
3/ Averages of daily trading volume on the New York Stock Exchange.
of daily figures for the year.
0
Year-end figures are averages
5
4/ End of month figures for member firms of the New York Stock Exchange which carry margin accountsexcludes 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.
PRIVATE H O U S I N G STARTS A N D
PERMITS
2.0
SEASONALLY
ADJUSTED
DATA
HOUSING STARTS
BUILDING PERMITS
PER C E N T O F
60
T
U N A D J U S T E D T O T A L STARTS
MULTI-FAMILY
GOVERNMENT UNDERWRITTEN
1961
1962
1963
1964
1965
1966
1967
1968
Exhibit P - Part II
Building
permits
Unadjusted
Type of financing Tvpe of housing (seasonally
adjusted
Seasonally adjustMulti1-2
Unadjusted
annual
Other family family
ed annual rate
FHA
VA
rate) 2/
Starts
Total
Date
1967 - Augi
Sept.
Oct.
Nov.
- Dec.
1968 - Jan.
Feb.
Mar.
I Apr.
May
June
July
Aug.
1,407
1,445
1,496
1,590
1,250
1,456
1,537
1,511
1,591
1,364
r/1,365
r/1,532
1,508
(Thousaiids oiE unitts)
6
17
105
16
5
101
5
19
111
15
99
4
16
61
4
63
14
3
64
17
4
20
5
102
23
5
134
6
20
115
20
5
111
5
19
116
5
21
110
127
122
135
118
80
81
85
127
162
141
r/138
140
136
87.8
82.0
86.7
72.3
50.2
47.8
58.8
83.5
101.7
91.0
r/86.4
90.5
85.5
39.5
39.8
48.7
46.1
29.9
32.7
25.8
43.0
60.3
49.9
r/51.2
49.4
50.3
1,161
1,192
1,221
1,194
1,358
1,148
1,392
1,416
1,340
1,280
1,281
1,289
1,246
1/ Total starts are Census estimates including farm for both permit-issuing and
non-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time. FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Capehart military housing units are excluded. Other starts are
derived as a residual, although total and FHA and VA starts are not strictly
comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
2/ Building permits before January 1963 are Census estimates for about 10,000 areas
identified as having a local building permit system in 1959. Estimates beginning
January 1963, are for approximately 12,000, or all known, permit-issuing places.
Unlike starts, seasonally adjusted building permits reflect direct adjustment
for differences in the number of working days per month, as well as other diff^
erences in timing and coverage.
r/ Revised.
]>/ Preliminary.
EXHIBIT
G, Part 1
YIELDS O N N E W A N D SEASONED C O R P O R A T E B O N D S
6.5
A d j u s t e d to
Aaa
Boi
NEW ISSUES
6.0
1.8
5.0
SEASONED Aaa
4.5
4.0
1964
1965
1966
1967
Exhibit G - II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number
of
Monthly averages:
1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Weekly averages:
High
Low
13
13
10
7
11
13
7
8
Am't. of issues . Average
included (mill.
yield
of dollars)
(per cent)
567.0
564.0
350.0
415.0
531.0
872.0
552.0
267.0
6.24
6.29
6.56
6.52
6.66
6.65
6.54
6.26
Number |Am't. of issues Average
of
included (mill.
yield
issues 1 of dollars)
(per cent)
Aug.
2
9
16
23
30
Sept. 6
13
20]]./
1
1
1
3
2
12.0
15.0
110.0
67.0
75.0
6.36
6.46
6.13
6.26
6.36
2
2
1
45.0
150.0
30.0
6.40
6.33
6.24
6.83(5/24/68)
6.13(8/16/68)
Aa, and A by Moody's Investors Service (except serial and convertible issues, offerings of natural
gas pipeline and foreign companies, and bonds guaranteed by the Federal Government) weighted by
size of offering. Before averaging, new offerings are adjusted to a composite Aaa basis by
deducting from the actual reoffering yield the excess of the weekly average yield for seasoned
bonds of the appropriate industry-quality group over the composite average for seasoned Aaarated bonds (Moody's). Averages considered unrepresentative because of special characteristics
of the offerings included are denoted by an asterisk.
£/ Preliminary.
Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Capital
1#8P/
January
February
March
April
May .
June
July
August
September
.
Quarter
Quarter
Quarter
Quarter
let half
Three quarters
Year
1966
State and local 2/
1968p/
1967p/
1966
1,706
1,568
1,740
1,648
1,398
2,317
1,302
1,237
2,446
1,133
1,147
1,384
1,482
1,196
1,438
1,188
1,385
1,825
2,334
1,973
1,474
2,611
1,553
1,058
2,364
1,298
1,117
1,354
1,111
1,229
1,497
1,193
901
1,141
£/2,121
e/1,500
e/1,725
2,457
2,407
1,723
1,039
1,670
1,382
jg/1,400
e/1,700
e/1,300
943
858
1,330
2,289
1,467
2,336 .
829
1,085
1,635
October
November
December
1st
2nd
3rd
4th
Corporate
1967p/
5,014
5,544
e/5,346
5,364
6,058
6,584
6,092
10,558
e/15,904
11,421
18,007
24,098
.
858
865
701
773
1,020
974
1,400
1,182
755
969
940
4,985
4,975
4,091
3,550
3,665
3,769
2/4,400
4,119
3,837
3,131
3,556
2,911
3,235
2,494
2,664
. 9,959
14,050
17,601
7,434
#1,834
7,956
11,087
14,643
6,146
8,640
11,304
Excluding finance companies 3/
1st
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
4,943
5,265
Year
5,207
5,913
6,338
5,657
4,924
4,884
3,969
3,188
23,115
17,269
e 7 E s t i m a t e d by Federal Reserve.
£*/ Preliminary.
Si/. Securities ana Exchange Commission estimates of net proceeds.
(2/ Investment Bankers Association of America estimates of principal amounts.
3/ Total new capital issues excluding offerings of sales and consumer finance companies.
•
/t
Exhibit I
New Coroorate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
Gross proceeds for new capital
and refunding 1/
Bonus
Common Memo:
Publicly Privately and
Foreign
Offered Placed
pfd. issues
stock included
Net proceeds
for new capital 1 / 2 /
Quarter
or
Month
Total
1967 - I
II
III
IV
5,464
6,208
6,833
6,294
3,263
4,017
4,604
3,107
1,811
1,465
1,551
2,137
390
726
678
1,051
60
65
234
93
2,442
3,014
2,792
2,527
997
1,268
1,219 '
1,255
543
548
595
269
1,382
1,228
1,976
2,040
1968 - I
II
5,178
5,705
2,465
3,105
1,724
1,644
989
956
313
172
1,855
1,653
1,394
1,201
411
529
1,356
2,159
1967 - Aug.
Sept.
Oct.
Nov.
Dec.
2,481
1,763
2,409
1,500
2,385
1,813
902
1,375
645
1,087
412
647
566
551
1,020
250
214
469
304
278
13
8
34
19
30
1,229
637
906
512
1,109
509
265
573
404
278
356
200
119
82
68
313
619
690
469
881
1968 - Jan.
1,771
Feb.
1,607
1,800
Mar.
1,428
Apr.
May
{1,867
2,418
June
July £/ 2,174
Aug. e/ 1,565
903
796
766
719
1,046
1,340
1,244
615
546
585
593
438
521
685
561
600
322
226
441
271
300
385
369
350
16
61
236
31
89
52
47
n. a.
537
556
761
353
550
750
839
600
417
546
431
178
549
474
236
365
186
147
78
189
103
237
236
70
566
321
469
663
622
874
810
465
f
Mfg.
Other
Public CommuniUtility cations Issuers
/. Preliminary, e/ Estimated by Federal Reserve, n.a. Not available.
_J Gross proceeds exceed net proceeds by the cost of flotation.
2/ For total see Exhibit H; other issuers are extractive, railroad and other
transportation, real estate and finance, and commercial and other.
SOURCE; Securities and Exchange Commission.
r
Exhibit J
Other Security Offerings
(In millions of dollars)
1968
January
February
March
April
May June
July
August
September
October
November
December
Jan. - July
127
49
107
75
142
7
100
607
Year
Gross - Long-term 1/
Foreign Government 2/
Federal Agency 3/
1966
1967
1968
1967
196
223
27
13
170
22
586
193
66
142
18
651
12
40
40
66
69
76
72
7
50
23
74
68
375
1,656
597
--
999
550
1,370
225
744
779
800
5,467
__
1,251
783
. 750
650
810
650
407
250
599
708
710
612
5,301
503
410
392
699
1,030
1,084
799
400
450
800
239
4,118
8,180
6,806
January
February
March
April
May
June
July
August
September
October
November
December
New short-term 4/
State and local Government 5/
Federal Agency
179
103
490
-179
300
387
39
-552
436
89
-594
-319
-593
-454
-604
827
580
-559
3
681
515
462
121
490
109
27
-378j>/
-334
-187
93
457
5392/
-103
20
-158
270
-262
593
-161
32
1,407
-48
606
414
. 503
49
573
-570
36
-514
Jan. - July
439
Year
1,147
428
1,127
531
1,619
1966
3/
308
-24
450
718
85
284
-590
-270
-652
-555
-283
219
1,700
1,231
660
310
V
|
\
|
I
|
1
£/ 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, L
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 Commissio'
3/ Issues not guaranteed by U.S. government. Source: Long-term, Securities and Exchange f
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 u
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 mav have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal *
Reserve.
.. •
H. 14
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than D. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)
Total
1967 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Cornorj•te
Bonds
(other than
Convertible
convertibles)
bonds
1,340
1,705
794
1,458
826
978
904
757
788
696
1,009
1,461
1,243
665
890
1,288
473
897
461
460
652
575
415
500
656
1,161
650
405
317
350
257
285
150
437
168
105
135
723
283
120
495
143
State
and
local
governments
Stocks
133
67
65
276
215
81
85
77
238
73
70
180
98
117
483
473
847
505
865
633
785
591
736
794
571
758
864
1,165
Other
£/
85
221
400
50
845
627
1,095
389
1,030
370
145
500
920
70
Large Individual Issues Offered Sept. 3 through Sept. 20, 1968.
Issuer
SOTPPfffe
Condec Corporation
Michigan Consolidated
Gas Company
South Carolina Elec.& Gas
Miles Laboratories
Natomas
Kane-Miller Corporation
Tenneco Inc.
Metropolitan Edison
New England Tel. & Tel.
New York State Elec.& Gas
"Wisconsin Electric Ptiwer
Type U
Amount
(millions
of
dollars)
Conv.tsub. debs. 20.0
1st mtg. bds.
25.0
1st & ref. mtg,
bds.
20.0
Com. stk.
22.5
Com. stk.
15.0
Com. stk.
15.0
1st mtg.frl.bds. 60
1st mtg. bds.
31
Debs.
125
1st mtg. bds.
30
Com. stk.
28
State & local Government
Jacksonville, Florida
G.O.
Portland, Oregon
G. 0.
State of Ohio
G.O.
Columbus, Ohio
G.O.
. Philadelphia, Pennsylvania G.O.
Fairfax County, Virginia G.O.
Mecklenburg Co., N.C.
G.O.
20.0
12.5
100.0
10.0
30.0
12.4
20.3
Maturity
1993
Coupon
rate or
net inter-
5
Offering
yield
Rating
5.00
1993
7
6.80
1998
6-1/2
6.50
1988
1998
7
7
6-3/8
6-1/2
7.00
6.85
6.35
6.40
Baa
A
Aaa
Aa
4.00-4,.25
3.20-4,,20
3.00-3. 95
3.25-4. 70
3.50-5.00
3.40-5. 20
3.20-4. 25
Aa
Aa
Aa
Aa
Baa-1
Baa
Aa
2008
1998
1977-81
1970-83
1969-78
1970-2007
1970-93
1970-94
1970-94
4.30
4.06
3.83
4.56
4.89
4.60
4.23
K-2
Large Individual Issues Offered Sept. 3 through Sept. 20, 1968 (Cont'd)
Issuer
Type
3/
Amount
(millions
of
dollars)
Maturity
Coupon
Offer- Rating
rate or
ing
net interyield
est cost
State & local Govt. (Cont'd)
State of Oregon
State of Oregon
State of South Carolina
Ardmore Development Authority,
Oklahoma
Ardmore Development Authority.
Oklahoma
Los Angeles, California
Alabama Highway Authority
Cleveland, Ohio
Solano Co., California, Jr.
College District
Beauregard Parish, Louisiana
State of Pennsylvania
Houston, Texas
New Orleans, Louisiana
Southeastern Pa. Transportation Authority, Phi la.
4.10-4.25
3.35-5.50
3.15-3.90
Aa
Aa
Aaa
G.O.
25.0
10.0
10.5
1982-84
1971-98
1970-83
4.20
4.28
3.90
Rev. -Rent.
59.0
1993
n.a.
Rev. -Rent.
G.O.
Rev.-S.T.
G.O.
14.0
25.2
25.0
22.0
1971-78
1969-1988
1969-1988
1970-1994
n. a.
4.15
4.66
4.55
4.40-5.00
3.05-4.30
3.20-4.70
3.30-4.70
Aa
A-l
A
G.O.
Rev.-Rent.
G.O.
Rev.-Ut.
G.O.
12.6
19.1
88.5
25.0
20.0
1971-1988
1971-1977/93
1969-1998
1985-2000
1970-1993
4.52
5.70
4.15
3.76
4.54
3.50-4.60
4.60-5.75
2.90-4.50
4.40-4.85
3.30-4.85
A-l
A-l
A-l
A-l
Rev.-Rent.
55.0
1972-1984/2002
5.17
4.00-5.12
Baa-
G.O.
5.50
--
--
Other
Aaa
6.44
6-3/8
1994
250.0
Bonds
World Bank
7.05
A
6-7/8
1991.
20.0
S.F. debs.
Province of New Brunswick
6.00
6
1973
250.0
Debs.
F.N.M.A. •
International Bank for ReconAaa
6.44
6-3/8
1994
250.0
Bonds
struction and Development
, ,
,
* Rights offering, n.a. - Noc avaiiaoie.
1/ Includes corporate and other security offerings of $15 million and over; State and
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.
"37. In the case of State and local Government Securities, G.O. denotes general obligations,
~
R6v.-Ut., revenue obligations secured only by income from public utilities; Rev-Q.-U •,
revenue bonds secured only by income from qiiasi-utillties; 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 New Capital
(Other than U.S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
(In millions of dollars)
During month following
date shown
State and
Other 2/
Corporate
local govt.
1967 - July 31
Aug. 31
Sept.30
Oct. 31
Nov. 30
Dec. 31
1968 - Jan. 31
Feb. 29
Mar. 31
Apr. 30
May 31
June 30
July 31
512
783
768
505
865
633
449
683
494
695
485
. 597
1,071
1,261
694
534
1,357
826
968
531
873
758
1,103
1,193
1,068
619
100
65
. 50
845
402
60
130
15
45
500
75
70
Corporate
1 ,576
1 ,335
1 ,090
;
2,,694
2 , ,129
L ,892
736
1;,105
935
1.,612
1.,403
1 ,380
=
679
Subsequent to
date shown
State and
local govt.
Other 2/
150
159
126
260
875
502
75
265
125
60
515 .
110
85
575
903
889
743
1 ,684
1 ,076
937
1.,079
624
1.,069
640
1.,042
1 , ,307
Forthcoming Large Offerings as of September 20, 1968.
Issuer
Type
Amount
(millions
of
dollars)
Approximate date of
offering
Corporate
*Eastern Airlines
Harris Trust & Savings Bank
Eckerd Drugs
Commonwealth Edison
*Wilson Sporting Goods Company
Allegheny Airlines
Detroit Edison
Pacific Telephone & Telegraph
Pennzoil United
Canal Electric
Columbia Gas System
Consolidated Edison of New York
Jersey Central Power & Light Co.
Wisconsin Public Service
Chesapeake & Potomac Tel. Co. of
Maryland
Northern Indiana Public Svc. Co.
*11linois Power Company
•Carolina Power & Light
Fibreboard Corporation '
Conv. sub. debs.
Conv. cap. notes
Conv. sub. debs.
1st mtg. bds.
Debs, w/wts.
Conv. debs.
1st mtg. bds.
Com. stk.
Debs.
1st mtg. bds.
Debs.
1st mtg. bds.
1st mtg. bds.
Pfd. stk.
Debs,
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Conv. debs.
50.0
25.0
15.0
75.0
25.0
15.0
150.0
165.0
75.0
19.0
40.0
60.0
26 .0
15.0
75.0
20.0
45.0
40.0
30.0
September
September
September
September
September
September
September
September
October
October
October
October
October
October
23
23(rts. eafi)
23
24
24
24
26
30(rts.ezp.)
1
1
3
8
8
8
October
October
October
October
October
9
9
14
15
15
" ' •
rX
L-2
Forthcoming Large Offerings as of September
Issuer
—
Type
Amount
(millions
of
dollars)
20, 1968 (Cont'd)
Approximate date of
offering
Corporate (Cont'd)
*Gulf State's Utilities Company
*Tesoro Petroleum
*Southern Co.
National Industries
Alexander's Dept. Stores
King Resources
Computer Applications, Inc.
*Ceco Corporation
Transcontinental Gas Pipeline
Cleveland Elec. Illuminating Co.
General Tel. of Michigan
Belco Petroleum Corporation
1st mtg. bds. r
Debs.
Debs.
Conv. sub. debs.
Com. stk.
Conv. sub. debs.
Conv. debs.
Conv. debs.
Debs.
1st mtg. bds.
Debs.
Conv. debs.
40.0
15.0
15.0
25.0
20.0
20.0
15.0
15.0
50.0
50.0
22.0
25.0
October 17
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
State & local Government
Port of Astoria
Kings Co., Washington
State
of^,Hawaii
c
Pennsylvania State Highway &
Bridge Authority
Los Angeles Flood Control Dist.,
California
•
^/Genesee Co., Michigan
Cobb Co.,, Georgia
•„ Detroit, Michigan
^Seattle, Washington
State of Ohio
Washington Sub. Sani. Dist., Md.
*Montebello, California, U.S.D.
State of Alaska
San Francisco B.A.R.T.
Alachva Co. Spec. Tax Sch. Dist.
#1, Florida
San Diego, California
*Pontiac Sch. Dist., Michigan
*Los Angeles U.S.D. ,„ California
. *San Diego Water Auth.,; Calif.
*Hartford, Connecticut
*Jackson Co., Missouri
Maryland State Roads Comm.
Canton, Ohio
Tampa Hillsborough Co. Expressway Authority
Kentucky Turnpike Authority
Hillsborough Aviation Authority,
Tampa, Florida
Rev.-Rent.
G.O.
G.O.
Rev. -Q. -Ut.
115.0
39.1
38.0
75.0
September
September
September
24
24
24
September
25
45.0
23.3
32.5
15.0
10.0
25.0
22.0
12.0
.10.5
70.0
- October
October
October
October
October
October
October
October
October
October
Rev.-S.T.
Rev.-Ut.
G.O.
G.O.
Rev.-Ut.
G.O.
G.O.
Rev. -Q. -Ut.
Rev. -Rent.
12.8
10.0
19.0
39.5
30.0
15.4
25.0
225.0
45.0
October
October
October
October
October
October
October
October
October
Rev.-Q.-Ut .
Rev.-Q.-Ut.
46.0
120.0
Indefinite
Indefinite
41.0
Indefinite
G.O.
G.O.
Rev.-Ut.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.-Rent.
.
1
1
8
8
8
9
10
10
10
14
15
15
15
15
L-3
Forthcoming Large Offerings as of September 20, 1968 (Cont'd)
Issuer
Type
Amount
(millions
of
dollars)
Approximate date of
offering
Other
* Province of Manitoba
Canadian Utilities, Ltd.
Debs.
S.F. debs, w/wts.
50.0
15.0
October 7
Indefinite
*--Included in table for first time.
V
Includes corporate and other issues of $15 million and over; State and local Government
issues of $10 million and over.
2J Includes foreign government and International Bank for Reconstruction and Development
issues arid non-guaranteed issues of Federal Agencies.
•V
Exhibit M
Foreign Government and Corporate Sedurity Offerings
and Placements in the United States
Part I:
Sale Date
Amount
(millions
of
dollars)
Issuer and Description of Issue
A.
\
Public Offerings
Sold: May 1 through Sept. 20 , 1968.
May
15
20.0
Montreal Catholic School Commission—7-1/2% S.F. debs,
maturing 1993, reoffered to yield 7.88%.
May
21
25.0
Newfoundland and Labrador Power Commission—7-3/4%
S.F. debentures, maturing 1993, reoffered to yield
8%.
May
28
100.0
July
10
75.0
July . 23
20.1
Province of Ontario, 7-1/8% debentures maturing 1998,
reoffered to yield 7.19%.
Husky Oil Canada Ltd.
July
25
25.0
Province of Nova Scotia
Sept. 17
250.0
Sept. 19
20.0
^October 7
Indefinite
50.0
15.0
Canada, Government of, 6-7/8% bonds maturing 1988,
reoffered to yield 6.90%.
International Bank for Reconstruction and Development,
6-3/8% bonds maturing 1994, reoffered to yield
6.44%.
Province of New Brunswick -- 6-7/8% S.F. debentures
maturing 1991, reoffered to yield 7.05%.
B.
**
***
Prospective Offerings
Province of Manitoba — Debentures.
Canadian Utilities, Ltd.,
S.F. debs, with warrants.
- Included in table for first time.
- Issues sold to investors outside of U.S.
- Issue subject to interest equalization tax.
debentures.
M-2
PART lis
Amount
(millions
of
dollars)
Date Reported
6/68
7/1/68
7/1/68
j
7/1/68
j
8/20/68
8/21/68
;
9/9/68
1
Seaboard Finance Co. of Canada, Ltd., Sr. notes
maturing 1983, take down at various dates
through 1969.
25.0
Argentina, Government of —
June, 1973.
external bonds maturing
1.4
British Columbia Forest Products, Ltd. —
secured notes.
20 year
.5
British Columbia Forest Products, Ltd. —
secured notes.
10 year
75.0
•
!
Issuer and Description of Issue
29.4
'
S
;
Private Placements -- Reported May 1 through Sept. 20* 1968.
40.0
2.0
Bell Telephone Company of Canada —
6.90% 1st mortgage bonds maturing 1998.
Placer Development Ltd., Vancouver
Caribbean Finance Company (Puerto Rico) Senior
notes maturing July, 1983.
NOTE: For retrospective data on aggregate foreign corporate and government security
offerings in the United States see Exhibits I and J. There is no simple relationship
between the data shown in the Exhibit and that shown in Exhibits I and J because the
latter includes privately placed securities in the period in which funds are actually taken
down but only in the amount of takedown.while the placements shown in this exhibit are
included when reported, frequently with little or no information concerning timing of
takedown. Full or partial takedown may take place both prior and subsequent to the date
a placement is reported.
*-T
;
@FedFRASER