Full text of H.16 Capital Market Developments : July 6, 1965
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DECONTROLLED AFTER SIX MONTHS Not f o r P u b l i c a t i o n / CAPITA] IN THF. UNITED-STATES ( i n c l u d i n g Review o f C a p i t a l M a r k e t s i n J u n e ) C o r p o r a t e and m u n i c i p a l bond m a r k e t s . The volume o f c o r p o r a t e s e c u r i t i e s e x p e c t e d t o b e p u b l i c l y o f f e r e d t h i s week i s m o d e r a t e and o n l y o n e - f o u r t h a s l a r g e a s l a s t w e e k ' s s w o l l e n t o t a l , most of w h i c h c o n s i s t e d o f t h e $266 m i l l i o n F i r s t N a t i o n a l C i t y Bank c o v e r t i b l e n o t e i s s u e on w h i c h subscription rights expired. The new s u p p l y of m u n i c i p a l b o n d s w i l l b e somewhat l a r g e r t h a n l a s t w e e k , w i t h more t h a n o n e - h a l f of t h e t o t a l a c c o u n t e d Also expected to reach the f o r b y a $120 m i l l i o n S t a t e o f C a l i f o r n i a i s s u e . m a r k e t t h i s w e e k , b u t n o t i n c l u d e d i n t h e t a b l e b e l o w , a r e $20 m i l l i o n i n b o n d s o f t h e Commonwealth of New Z e a l a n d . L o n g - t e r m P u b l i c S e c u r i t y O f f e r i n g s 1/ New Corporate Refunding Capital S t a t e and l o c a l Government New C a p i t a l | Refunding Sold: 52 week a v g . J u n e 25 July 2 100 113 r / 300 11 186 13 160 r / 119 11 r / 37 Scheduled: July 1/ 9 212 75 F e d e r a l R e s e r v e e s t i m a t e s b a s e d op p u b l i s h e d r e p o r t s o f i s s u e s s o l d and s c h e d u l e d f o r o f f e r i n g ; c o r p o r a t e r i g h t s o f f e r i n g s a r e i n c l u d e d a s of t h e date subscription rights expire. Yields in S e c u r i t i e s Markets L e v e l l a t e s t week (per cent) High-Grade N o t e s and Bonds Corporate New Seasoned 4.46 Change f r o m p r e c e d i n g week (basis points) -1 H. 14 Yields in S e c u r i t i e s Markets (Cont'd) Level l a t e s t week (per cent) Change from p r e c e d i n g week (basis points) U.S. Govt. Long-term 3-5 year 4.14 4.08 +1 +1 S t a t e and l o c a l Govt. Moody's Aaa Standard & Poor's high grade 3.17 3.31 +4 4.12 +44 3.81 3.85 +3 +3 Money Market Federal funds Treasury b i l l s 3-month 6-month C o r p o r a t e Bonds S t i l l i n S y n d i c a t e Date Offered Amount ( m i l l i o n s of $) 2/23 40.0 Issue New J e r s e y B e l l T e l e . Co. 4-5/8's - 2005 Reoffering yield 4.56 Rating Aaa Estimated Propor Lion Sold 9/10 ? Blue L i s t of M u n i c i p a l D e a l e r s ' A d v e r t i s e d I n v e n t o r i e s ( I n m i l l i o n s of d o l l a r s ) L a t e s t Date $806 ( 7 / 1 ) End of P r e v i o u s Week $837 Recent High $901 (6/4) C a p i t a l m a r k e t s i n J u n e . C o r p o r a t e s e c u r i t y f i n a n c i n g t o o b t a i n new c a p i t a l i n J u n e p r o b a b l y amounted t o $ 1 , 7 5 0 m i l l i o n , a r e c o r d f o r t h e month and o n e - f o u r t h l a r g e r t h a n a y e a r e a r l i e r . A c o n t i n u i n g l a r g e volume of p u b l i c o f f e r i n g s augmented t h e u s u a l l a r g e s e a s o n a l takedown of p r i v a t e p l a c e m e n t s . Over t w o - t h i r d s of t h e $715 m i l l i o n i n p u b l i c o f f e r i n g s of bonds was made up of two g i a n t commercial bank i s s u e s - - $ 2 5 0 m i l l i o n i n c a p i t a l n o t e s of t h e Chase M a n h a t t a n Bank and $266 m i l l i o n i n c o n v e r t i b l e c a p i t a l n o t e s of t h e F i r s t N a t i o n a l C i t y Bank of New York, t h e l a t t e r made a v a i l a b l e f i r s t t o s t o c k h o l d e r s t h r o u g h subscription rights. Much of t h e i n t e r e s t i n t h e c o r p o r a t e bond m a r k e t l a s t month c e n t e r e d around t h e p r i c i n g of t h e Chase M a n h a t t a n Bank i s s u e o f f e r e d J u n e 9 . The l a t e May announcement of t h i s i s s u e a s an a d d i t i o n t o t h e a l r e a d y s u b s t a n t i a l J u n e c a l e n d a r had r e s u l t e d i n t h e t e r m i n a t i o n of s y n d i c a t e s on s e v e r a l slow moving o f f e r i n g s w i t h s u b s e q u e n t d e c l i n e s i n p r i c e s on t h e s e i s s u e s . The " r i c h " p r i c i n g of t h e Chase bonds - u n e x p e c t e d by many i n v e s t o r s - b r o u g h t a s h a r p p i c k u p i n p u r c h a s e s of < o t h e r i s s u e s . Average y i e l d s on new c o r p o r a t e bonds (Aaa b a s i s ) r e a c h e d 4 . 6 0 p e r t n t e a r l y i n J u n e - - 5 b a s i s p o i n t s more t h a n a t t h e end of May and t h e h i g h e s t l e v e l forc eFRASER Digitized H. 14 s i n c e l a t e 1 9 6 1 . , b u t e a s e d o f f 2 b a s i s p o i n t s l a t e r i n t h e month. T e r m i n a t i o n of s y n d i c a t e p r i c e r e s t r i c t i o n s on t h e Chase i s s u e a t m o n t h ' s end w i t h o n l y t a g - e n d s r e m a i n i n g l e f t s y n d i c a t e b a l a n c e s a t a minimum. I n t h e m u n i c i p a l m a r k e t , S t a t e and l o c a l government bond s a l e s f o r new c a p i t a l i n J u n e had a p a r v a l u e of $850 m i l l i o n , 5 p e r c e n t l e s s t h a n i n t h e comparable month of 1964. Demand f o r most new i s s u e s was o n l y f a i r , and d e a l e r s , d e s p i t e a p p r e c i a b l e c u t t i n g of a d v e r t i s e d p r i c e s , were a b l e t o make o n l y m o d e r a t e r e d u c t i o n s i n t h e i r s u b s t a n t i a l a d v e r t i s e d i n v e n t o r i e s of u n s o l d s e c u r i t i e s . As a r e s u l t y i e l d s on A a a - r a t e d bonds r o s e 8 b a s i s p o i n t s t o 3 . 1 7 p e r c e n t a s t h e month c l o s e d , t h e h i g h e s t l e v e l s i n c e l a t e November 1963, and d e a l e r s ' i n v e n t o r i e s remained n e a r $800 m i l l i o n , down from a l l - t i m e h i g h of $901 m i l l i o n r e a c h e d e a r l y in June. Common s t o c k p r i c e s f e l l s h a r p l y on b a l a n c e d u r i n g J u n e i n a c t i v e trading. P r i c e s , as measured by S t a n d a r d and P o o r ' s c o m p o s i t e i n d e x of 500 s t o c k s , a t t h e m o n t h ' s low of 8 1 . 6 0 on J u n e 28 were 9 . 6 p e r c e n t below t h e a l l time h i g h of 9 0 . 2 7 on May 13. However, t h e s t r o n g r a l l y which s t a r t e d on J u n e 29 had e r a s e d more t h a n o n e - t h i r d of t h e s e e a r l i e r l o s s e s by t h e J u l y 2 c l o s e . T r a d i n g volume a v e r a g e d 5 . 8 m i l l i o n s h a r e s a d a y , b u t d a i l y a c t i v i t y v a r i e d w i d e l y - from 3 . 4 m i l l i o n t o 1 0 . 4 m i l l i o n s h a r e s . Estimated s e c u r i t y . f i n a n c i n g , in J u l y . Corporations are expected to f l o a t $ 1 , 0 5 0 m i l l i o n i n s e c u r i t i e s t o o b t a i n new c a p i t a l t h i s month, a b o u t t w o - f i f t h s more t h a n t h e a v e r a g e f o r J u l y of t h e two p r e v i o u s y e a r s . S t a t e and l o c a l governments w i l l p r o b a b l y o f f e r $900 m i l l i o n i n bonds t h i s month, a b o u t t h e same a s a y e a r e a r l i e r . L a r g e i s s u e s c u r r e n t l y on t h e c a l e n d a r f o r o f f e r i n g d u r i n g J u l y amount t o a l m o s t $400 m i l l i o n . More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g r e c e n t c a p i t a l m a r k e t d e v e l o p m e n t s i s presented in the attached e x h i b i t s . C a p i t a l Markets S e c t i o n , D i v i s i o n of R e s e a r c h and S t a t i s t i c s , Board of Governors of t h e F e d e r a l R e s e r v e System. LONG-TERM BOND YIELDS, HIGH-GRADE "\ Exhibit A -- Part II Corporate Aaa 1/ 1959-60 1961-62 1962-63 1964 - High High Low High 1965 - High Low June 4 J u n e 11 J u n e 18 J u n e 25 J u l y 2£ / 4.19 4.45 4.35 4.47 4.41 i (3/29/63) 12/11) (Z/2B) (7/2) (3/12) 4.45 4.46 A-47 '4.47 4.46 , U. S. Govt, l o n g - t e r m 2/ S t a t e and local government Aaa 3 / Spread between U. S. Govt, and S t a t e and Corporate Aaa l o c a l Aaa (per cent) 2.88(11/8/62) .21 .59 .57 .92 1.04 I ' M , 4.16 (3/12) 4.13 (6/25) 3 . 1 6 3/26) 2.99(12/31) 3.17 (7/1) 2.9 4 ( 2 / 1 1 ) .33 .19 .34 .25 1.14 1.01 1.22 .96 4.15 4.15 4.14 4.13 4.14 ' 3.09 3.16 3.16 3.17 3.17 / .30 .31 r / .33 .34 .32 1.06 .99 .98 .96 .97 ! « ) 3 . 85 (12/28/62) 3.65 3.37 .80 p/ Preliminary. xj Weekly average of daily f i g u r e s . Average term of bonds included i s 22-24 years. y Weekly average of daily f i g u r e s . The series Includes bonds due or callable in 10 yeAre or more. 3 / Thursday f i g u r e s . Only general obligation bonds are includedi average term 1» 20 years. Note.—Highs and lows are f o r individual series and may be on different dates f o r different s e r i e s . For spreads, high r e f e r s to widest, and low to narrowest* Weekly X A A VxJ — 1 1 1 1 1 1 111 111 1 1 II 1 1 1 g r - ' — 1 1 l 1 LLLLMA. 11 11 1111111. I I I M M M I I• Exhibit B — Part I I Date 1959-60 - High Year end - 1961 1962 1963 1964 1965 High Low June 4 June 11 June 18 June 25 July 2£/ Corpora te Baa y 5.36 (2/12/60) 5.10 4.93 4.85 4.80 4.87 ( 7 / 2 ) 4.78 ( 3 / 1 9 ) 4.46 (1/7/80) 4.04 3.57 3.60 3.51 3.57 ( 7 / 1 ) 3.40 ( 2 / U ) 4.83 4.85 4.85 4.86 4.87 3.51 3.54 3.54 3.57 3.57 Hotel Tor footnotes see exhibit A. Spread between Aaa and Baa S t a t e and l o c a l govt. Baa 2 / (per cent) Corporate .84 .66 .70 .48 .37 .40 .35 ' .38 .39 r/.38 .39 .40 | J ™ . 1.08 .73 .63 .49 .52 .52 .38 .42 .38 .38 .40 .40 Z t . i X H 11 IT C. P a r i 1 SHORT- AND INTKRMKD IATI-TCRM INTEREST R A T * * ; GOVERNMENT I Weekl, 1 a/ v TUV tH y F. * . DISCOUNT RATI ' \ k j d j I I 1 1 1 1 1 1 1 11 11 i i 19*1 19*1 1111111 1 1 1 1 1 1 1 1 1 11 11 1 1 1 1 1 19*3 19*4 E x h i b i t C - - Part I I Discount ra te 3-month b i l l s 2/ 1/ 1959-60 - High Year end - 1961 1962 1963 1964 1965 High Low June 4 June 11 June 18 June 25 J u l y 2&/ r J-MONTH B i l l * I I I I I I I I I I I If40 • MONTH S l l l t M.rk.1 YWd. Yields 6-month b i l l s 2/ (per cent) 3-5 year i s s u e s 2/ 19*1 ' Spread between y i e l d s on 3 aonth b i l l s and y i e l d s on 6-W9- H U f l ? - ? YP 4.00 3.00 3.00 3.50 4.00 4.00 4.00 4.59 ( W # > ) 2.66 2.89 3.52 3.83 3.99 (2/26) 3.78 (6/25) 5.07(1/8/60) 2.90 2.93 3.64 3.93 4.04 (2/26) 3.82 (6/25) 5.00(13/2^59) 3.81 3.41 4.07 4.07 4.13 (3/12) 4 . 0 4 (1/22) 4.00 4.00 4.00 4.00 4.00 v' 3.86 3.80 3.80 3.-78 3.81 v 3.92 3.88 3.86 3.82 3.85 v 4.10 4.10 4.10 4.07 4.08 .79 .24 .04 .13 .13 .04 1.81 1.15 .52 .55 .24 .30 .11 .06 .04 .04 .24 .30 .30 .29 .27 .10 1/ Weekly rate shown i s that in effect at end of period at the federal Reserve Bank of *ew York, 7/ Market yields weekly average# computed from daily closing bid prices. Series of 3-8 year issues consists of selected notes and bonds. Note,—Highs and lews are for individual series and may be on different dates for different series, for spreads, high refers to widest, and lew to narrowest. EXHIBIT h, F a , I I SHORT- AND INTERMEDIATE- TERM INTEREST BATES, BANKS AND Weekly OTHER P R I V A T E B O R R O W E R S A Date 1959-60 - High Year end - 1961 1962 1963 1964 1965 - High Low June 4 June 11 June 18 June 25 J u l y 2 ja/ Prime r a t e 5.00 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 1/ Finance company Federal funds 3/ paper 2/ (per c e n t ) 5.13 (1/22/60) 3.00 3.19 3.88 4.06 4.25 (7/2) 4.00 (2/12) 4.25 4.25 4.25 4.25 - 4.25 4.00 (5/13/60) 2.88 3.00 3.50 4.00 4.12 (7/2) 3.68 (6/25) 4.09 4.08 4.12 3.68 4.12 Spread between 3-mo. b i l l s and f i n a n c e co. oaoer 1.02 .34 .30 .36 .23 .47 .10 .39 .45 .45 .47 .44 2 / Weekly rate shewn is that in effect at end of period. Prime rate i s that charged by large banks on short-term loans to business borrowers of the highest oredit standing* 2/ Average of daily rates published by finanoe companies for directly placed paper for varying maturities in the 90-179 day range. 3/ Weekly average of daily effective rate, whioh i s the rate f o r the heaviest volant of purchase and sale transactions as reported to the Federal Reserve Bank of New York* Notes—flighs and lows are f o r individual series and may be on different dates for different series* For spreads, high refers to widest, and low to narrowest. I X N I S I T 1. f e n I ( H A N O I IN < 1 1 1 1 1 YIIISI i ii i««o M i i I i i i i i i i i it ifsi Exhibit B - Stock price index U 1961-62 - High Low Year end 1963 1964 1965 - High Low May June June 18 June 25 p/ July 2 1 I I 1 1 1 I I I I 1 11 I I 1 I I 1 1 J - L A . i i i i 1 II«I lest Part II Trading Common volume 2J stock yields %) (millions fpar cent) of if*4 i •a s Stock mar tat customer credit Bank Customers1 loans to debit balTotal "others" 5/ ances 4/ (In millions of dollsrs) 5,60g2g/6l) 4,259 (lg/61) 4,424(3/61) 3.253(j/61) 72.04(1^/0/61) 32.68(6/2t/to) 2.80 3.96 10.1 2.4 74.44 84.75 90.10 (5/14) 83.06 (6/25) 3.13 3.02 2.89 3.15 4.7 4.7 6.8 4.4 7,242 7J353 7,085 6,872 89.28 85.04 85.34 83.06 85.16 2.92 3.07 3.06 3.15 3.07 5.5 5.8 6.0 4.4 6.8 7,085 n.a. n. a. n.fli , , 1,418(8/9/62) l,161(W6l) 5,515 5.099 5,129 4,986 1,727 1.974 1,974 ( 6 / 9 ) 1,848 ( 3 / 3 ) 5,129 1,956 1,954 1,966 1,954 JUft, n.a. n.a. RtfU V Standard and Poor's oonpoait* Index of 500 eeemen stocks, weekly closing prices, 194L-43*10# Monthly data are averages of dally figures rather than of Trf.4«y»s only. Highs and lows are for 2/ Standard and*Poor's composite stock yield based ee Wednesday data converted to weekly olosing prices by federal Re erw. Holds shawm are for dates on which prloe Index reached its high 3/ f r i g e s of daily trading rolmw on the *ew York Stock Exohange. Tsar^snd flgww#are averages of ' v ^^f'menS^iSuwe'f er*iNnbev fixes of the lew Ye* Stook Exchange WUh oarry margin aooeeatsi excludes bah noes secured by 0. 8. Oorsmeint obligations. * W S ^ S ^ S S S S L others. For further detail see r - * "* s ^ M S w s i x ! » s 2 2 & IXHISlT F. P a r i 1 MORTGAGI AND Mewthly BOND YIELDS v.. r\ Exhibit F FHA mortgages 2/ Date 25-vear 30-vear 1956 1957 1958 1959-601961-64- Low High Low High High Low 4.68 5.63 5.35 6.24 5.72 5.43 1965-January February March April May June 5.43 5.43 5.43 5.43 5.43 __ Conventional gages 3/ Part I I Spread beAaa Co;r p o r a t e Spread between tween y i e l d s Bon<is y i e l d s on new c o r on conv. & nni-A t"#» hnnrfa and 25-year FHA New*' Seasoned—^ 25-year Seasoned morteacea FHA mt%s. 5.70 5.45 5.20 6.00 5.55 6.30 5.95 5.80 .47 .47 .15 .23 .38 .23 3.08 4.94 3.65 5.25 4.72 4.12 5.45 5.45 5.45 5.45 5.45 n.a. 5.80 5.80 5.80 5.80 5.80 n.a. .37 .37 .37 .37 .37 4.42 4.41 4.45 4.46 4.51 4,58 , 3.08 4.12 3.57 4.61 4.45 4.22 .76 1.58 .88 1.69 1.50 .94 1.03 .05 .73 .39 - . 16 4.43 1.01 -.01 4.41 1.02 4.42 .98 .03 4.43 .97 .03 .92 4.44 .07 . .. 4,46 .12 than bonds. Generally, bonds pay interest seal-annually; mortg^es, monthly. Mortgage yields. If computed as equivalent to a semi-annual Interest investment, would be slightly higher than given in the Based on THj^-field-offioe opinions about average bid prioes in the private secondary market for nen*home mortgages for immediate delivery. Separate data available for 25-year and—begin!ng July 1961— 30-year mortgages with minimum downpayments, weighted by probable volume of transaction . Yields computed by IHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-^rear mortgages. Over the period for ifcloh they can be oompar«d, the movement at the two mortgage yield series has been similar# Dashed lines indioate periods of adjustment to changes in contractual Interest rates. Based on TEA field office opinion on typioal interest rates (rounded) on conventional f i r s t mortgages prevailing in the market areas of insuring office c i t i e s . Beginning with April 1960, rate relates only to new-home mortgages; prior to that date, rate related to both new as **11 as exi sting-home mortgages. Dashed line indicates this change in the series. See note for Exhibit 0. X Moody's Investor Service, Monthly averages of dally data. See Exhibit A, 0jjy for Digitized FRASER i YIILDI ON NIW AND t I A S O N I D CORFOKATI BONOS AdWited i# Aee l e i l i NIW I I I U I I jJI inhibit 0 - i e r t XX Yields on lev Corporate Bond Issues Adjusted to en Aee bests Monthly averages: 1964 - Oct. Nov. Dec. 1965 - J a n . Feb. Mar. Apr. May June Number Aa't of Issues of Included (mil. illSBUL JZLSSIISBLL3 3 3 7 4 8 4 yield ( m 70.0 4.46 140.0 94.0 4.47 4.42 4.41 4.45 4.46 4.51 4.58 111.0 157.8 115.0 315.0 100.0 Weekly a v e r a g e s 1965 - High Low 4.60(6/11) 4.33(1/29) Of Apr. 2 9 16 23 30 May 7 14 21 28 June 4 Hunt Aa't of Issues Average included (mil. yield 9t foUfFf ) < b w 25.0 60.0 4.43 4.44 30.0 4.47 70.0 40.0 199.0 4.54* 4.51 4.49* 4.55 6.0 11 18 35.0 4.60 25 65.0 4. 58 July 2 Motes Aver*ge« of offering yield# on al% new Issues of publioly offered oorporate bonds rated i u . i t and 1 by Moody* t Investors Service (except serial and convertible is sues. offerings of natural gas pipeline,1 end foreign oonpanies, and bonds guaranteed by the federal Government) weighted by tf.se of offering. Before averaging, new offerings are adjusted to a mmmosite iaa basis by deducting from the actual reeffering yield tie excess of the weekly average yield f o r seasoned bands of the appropriate industryquality group over the composite average f o r seasoned Aaa-rated bonds (Moody's). Averages considered unrepresentative because of special characteristics of #»e offerings included are denoted by am asterisk^ Exhibit H H.14 Long-term Cifcrporate and State and Local Government : Security Offerings and Placements (In m i l l i o n s of d o l l a r s ) 1965 January February March Corporate 1Q64 New Can l t a l 1963 1965 State and Local 2/ 1^64 1963 S s s 1 795 746 1,197 930 685 754 613 594 1,144 &/800 e / 800 e/850 April May June E/ 1,240 e / 1,550 e / 1,750 2,178 1,069 1,378 930 904 1,013 e/800 e/900 e/850 July August September e / 1,050 780 661 1,109 676 637 795 e/900 949 646 1,419 1,013 819 1,415 2,738 e / 4,540 2,369 4,625 2,550 3,013 2,3*1 2,847 2,109 3,246 e/2,450 e/2,550 £/ £/ J>/ e/ e/ 7,278 6,994 9,544 12,557 5,198 7,307 .10,553 e/5,000 October November December 1st 2nd 3rd 4th quarter quarter quarter quarter 1st half Three quarters Year 947 776 810 732 746 976 1,242 667: 903 869 866 930 906 780 892 680 708 449 850 550 950 1,051 729 416 2,533 2,811 2,578 2,350 2,454 2,665 1,837 2,197 £ / 5,344 £ / 7,922 e/10,272 5,118 6,955 9,151 > ; Excluding finance companies 3/ 1st 2nd 3rd 4th quarter quarter quarter quarter 2,547 8/ 4,140 Year e/ £/ 1/ 2/ 3/ 1,996 4,170 2,411 2,755 2,284 2,529 1,768 2,854 11,332 9,434 Estimated by Federal* Reserve. Preliminary. S e c u r i t i e s and Exchange Commiesion estimates of net proceeds. Investment Backers Association of America estimates of principal amounts. ^ Total new c a p i t a l issues excluding o f f e r i n g s of s a l e s and consumer finance companies. H. 14 Exhibit I New C o r p o r a t e S e c u r i t y I s s u e s , Type of I s s u e and I s s u e r ( I n m i l l i o n s of d o l l a r s ) Quarter or Month G r o s s p r o c e e d s f o r new c a p i t a l and r e f u n d i n g 1 / Common Memo: Bonds and F o r e i g n pfd. issues Total Publicly Privately included Net p r o c e e d s f o r new c a p i t a l 1 / 2/ Mfg. Public Utility Communi- O t h e r cations issuers 1962 - I I I IV 2,167 2,875 852 1,088 1 ,006 1 ,510 308 277 55 135 566 747 376 552 274 317 685 945 1963 - I II III IV 2,700 3,634 2,436 3,466 1,108 1,389 898 1,319 1 ,306 1 ,820 1 ,251 1 ,780 287 424 287 367 128 434 109 47 947 591 806 968 326 794 285 530 236 221 150 118 842 1,241 868 1,629 1964 - I II III IV 2,499 4,851 2,802 3,311 978 1,321 792 531 1,221 1 ,640 1 ,516 2 ,372 300 1,890 494 408 29 105 85 223 418 723 547 1,045 438 856 642 509 273 1,663 59 128 1,240 1,383 1,303 1,332 1965 - I II 3,007 905 1 ,673 429 24S 1,072 541 91 1,034 1963 - O c t . Nov. Dec. 1,116 891 1,459 511 183 626 481 549 751 125 159 83 10 10 27 240 214 515 201 131 198 41 13 64 531 461 637 1964 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 985 710 805 2,234 1,155 1,461 869 728 1,204 1,032 702 1,577 338 279 361 383 470 468 234 183 376 181 30 320 526 342 353 480 537 623 411 433 672 638 620 1,114 121 88 91 1,372 148 370 225 112 156 213 52 143 5 16 8 34 36 35 21 21 44 82 27 114 149 123 146 186 206 332 149 164 234 249 188 607 109 155 174 151 441 264 207 138 296 297 40 172 157 83 34 1,377 27 258 23 16 19 81 17 30 515 324 400 463 395 525 401 342 560 321 401 610 97 21 49 385 131 161 292 565 858 1965 - J a n . 215 192 155 51 44 295 450 187 Feb. 791 494 229 26 143 143 448 658 557 1,358 Mar. 70 5 35 164 774 163 422 12 504 Apr. £> 1 , 360 1>40 650 230 n.a. 530 400 710 500 1,610 May e / June £/ Preliminary. e / E s t i m a t e d by F e d e r a l R e s e r v e . 1 / G r o s s P r o c e e d s e x c e e d n e t p r o c e e d s by t h e c o s t of f l o t a t i o n . 2 / F o r t o t a l s e e E x h i b i t H; o t h e r i s s u e r s a r e e x t r a c t i v e , r a i l r o a d & o t h e r t r a n s p o r t a t i o n , r e a l e s t a t e & f i n a n c e , & commercial & o t h e r . S o u r c e : S e c u r i t i e s & E x c h a n g e Commission. \u H.14 Exhibit J Other S e c u r i t y O f f e r i n g s ( I n m i l l i o n s of d o l l a r s ) 196*) January February March April May June July Augus t September October November December . J a n . - May e/368 •Cr998 l o n g - t e m 1 / F o r e i g n government 2 / F e d e r a l agency 3 / 1964 1961 1965 1964 218 38 £ / 72 e / 40. 4 82 69 30 75 26 20 13 7 180 72 58 232 133 76 57 114 11 63 83 260 612 636 771 1961 148 129 185 B/325 186 275 260 160 459 509 174 200 2 334 e/639 1,204 New S t a t e and l o c a l government 5 / 1,167 F e d e r a l aeencv 3 / January February March April May June July August September October November December 238 91 -458 647 £ / 204 103 236 -407 442 81 -80 -9 127 176 7 -15 -208 75 272 -367 589 -30 -10 62 208 -173 259 146 -339 -137 -174 117 -11 509 -308 -336 23 97 183 239 -333 167 1 525 113 -3 -332 -255 -161 202 195 319 415 326 258 123 -102 551 J a n . - May &/ 722 455 539 304 -341 -351 1.539 368 453 692 Year £ / P r e l i m i n a r y . e / E s t i m a t e d by F e d e r a l R e s e r v e . n . a i. -Not a v a i l a b l e . l / T h e s e d a t a d i f f e r from t h o s e i n E x h i b i t H i n t h a t r e f u n d i n g i s s u e s , a s w e l l a s .new c a p i t a l i s s u e s , a r e i n c l u d e d . Long-term s e c u r i t i e s a r e d e f i n e d a s t h o s e m a t u r i n g i n more t h a n one y e a r , % / l n c l u d e s s e c u r i t i e s o f f e r e d i n t h e U.S. by f o r e i g n governments and t h e i r p o l i t i c a l s u b d i v i s i o n s and i n t e r • n a t i o n a l o r g a n i z a t i o n s . S o u r c e : S e c u r i t i e s & Exchange Commission. 3 / I s s u e s n o t g u a r a n t e e d by t h e U.S. Government. S o u r c e : L o n g - t e r m , S e c u r i t i e s - & Exchange Commission; s h o r t - t e r m , T r e a s u r y D e p t . & F e d e r a l R e s e r v e . 4 / T h e s e d a t a d i f f e r from t h o s e i n E x h i b i t H and above i n t h a t t h e y r e p r e s e n t new o f f e r i n g s l e s s r e t i r e m e n t s , w h e t h e r from t h e p r o c e e d s o r r e f u n d i n g i s s u e s o r firom o t h e r f u n d s . Data i n c l u d e o n l y i s s u e s w i t h o r i g i n a l m a t u r i n g of one y e a r o r l e s s . £ / P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , w a r r a n t s o r c e r t i f i c a t e s and P u b l i c Housing A u t h . n o t e s . I n some i n s t a n c e s PHA n o t e s i n c l u d e d may have a somewhat l o n g e r m a t u r i n g t h a n 1 y e a r S o u r c e ; Bond Buyer & F e d e r a l R e s e r v e . H. 14 Exhibit K Large Long-term Public Security Xaauea for New Capital (Other than U. 8. Treaeury) 1/ Proceed# of Large Xaauea Offered (In milliona of dollara) Total 1964 - June July Aug, Sept. Oct, Nov Dec. 1965 - J a n . Feb. Mar. Apr. May June Cornoriite Bonde Convertible (other than convertiblea) bonde 650 291 142 376 187 390 178 125 269 108 *•» 230 130 217 513 307 928 801 Stocka 210 113 - - 17 25 - - 30 15 86 - — 280 97 53 320 - - 315 ' 138 Other 2/ 275 260 104 15 502 15 284 544 459 558 419 226 541 419 446 395 411 492 377 81 79 - - 200 115 131 233 210 5$0 343 State and local aovernmenta 2J5 130 19 260 40 340 Large I n d i v i d u a l I s s u e s O f f e r e d June 1 through J u l y 2 laauer Type 2/ Amount (milliona of dollara) c m m t t 250.0 Cap. n o t e s Chase Manhattan Bank 2^.5 Pfd. s t k , *Cout . vl Da Corp, 75.0 C o n s o l i d a t e d Edison Co. Pfd. s t k . 15.0 C e n t r a l +11. P. S, Co, 1 s t mtg. bds, G 20.0 e n . T e l . Co. of F l o r i d a ' 1 s t mtp. bds. Manufacturers & Traders , Tr. Co. ' pap. nuces 18,0 15. 7 ^Washington Gas L i g h t Co. PCd. s t k . ^ T w e n t i e t h Century Fox Film Co. :onv, svb, deb, 18:1 W. T. Grant Co, Gcmv. eub. deb. 3 5 . 0 40.0 New Jersey B e l l Tel, Co, Deb, * F i r s t N a t i o n a l C i t y Bank Conv. cap. n t s . 2 6 6 . 3 of New York 22.5 ••Pacific T e l . & T e l . Co. Com. s t k . Maturity Coupon rate or net intereat coat Offering vield Rating 1990 4. 60 4. 60 - - 1995 1995 4-5/8 4-5/8 4.59 4.69 Au A 1990 4-3/4 4. 7"i - - 199P 1990 2005 4-1/2 4 4*5/8 4.50 4,00 4.55 Baa Ada 4 ' 4.00 , 1990 Vt K-2 Large I n d i v i d u a l I s s u e s O f f e r e d June 1 througl Issuer Type 3 / Amount (millions of Maturity dollars) July 2 (Cont'd) |Coupon r a t e or net inter est cost Offering Yield Rating S t a t e & Local Government 1 G.O. Rev.-Rent.. 47.9 11.0 1965-87 1969-96 2.99 3.48 2.50-3.10 2.75-3.50 A Rev.-Rent. Rev. -Q. - U t . 10.0 25.0 1966-90 1966 3.53 3.54 2.30-3.604/ 3.50 A A S t a t e of C o n n e c t i c u t U n i v , of U t a h L o u i s i a n a S t a t e Bond & B l d g , Comm. P e r t of New York A u t h . Anaheim Community C e n t e r Authority, Calif, Ala T r a d e Sch = & J r . College Auth, Texas T u r n p i k e Auth. Denver, Colo, S t a t e of U t a h . Ga- U n i v . S y s t e m B l d g . Auth < L o u i s v i l l e , Ky, Penna = Gen. S t a t e A u t h . S t a t e of M i s s i s s i p p i W i l l i n g b o r o Twp. Mun. U t i l i t i e s Auth.j N.J. J a c k s o n v i l l e , Fla» M i n n e a p o l i s Spec. Sch. D i s t , # 1 , Minn. S t a t e of V i r g i n i a New York S t a t e Dorm A u t h . Other F e d e r a l Home Loan Banks Q u eb ec Hyd r o ' E l e c , Comm. Kingdom of Denmark M e t r o p o l i s of Tokyo Bonds Deb. Bonds Bonds Rev.-Rent. 14.5 1967-95 n.a. Rev.-Rent. Rev.-Q.-Ut. G.O, . G.O. 15.0 33.7 10.6 67.0 1966-91 2005 1966-75 1968-80 3.74 4.07 2.91 2.92 2: . 5 0 - 3 . 7 5 4.00 2 35-2.95 2 .50-2.95 Rev.-Rent. Rev.-Ut. Rev.-Rent. G.O. 20.5 18.0 20.3 11.8 1966-90 1966-2000 1966-83 1966-95 3.31 3.41 3.19 n.a. 2 .45-3.40 2 . 40-3.45 2.40-3.25 2 .70-3.60 Aa Rev.-Ut. Rev.-Ut. 10.5 16.0 1966-2005 1966-78 4.32 3.15 6/ 2.45-3.15 Aa G.O. Rev.-Rent. Rev.-Rent. 11.0 33.9 20.0 1967-77 1966-90 1963-97 2.97 n.a. 3.57 2 .55-3.00 2 .50-3.60 2 .80-4.30 1968 1985 1985 1980 4-3/8 4-5/8 6 6 4.41 4.75 6 .09 6 .50 250.0 50.0 20.0 20.0 1.35-3.755/ Baa Aa - - Aaa Aaa Aa Aa : ! Aaa f * A '•'--Rights o f f e r i n g . n.a. --not available 1/ I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s o f $15 m i l l i o n and o v e r ; S t a t e & l o c a l g o v e r n m e n t s e c u r i t y o f f e r i n g s o f $10 m i l l i o n and o v e r . i 2/ I n c l u d e s f o r e i g n g o v e r n m e n t and n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and D e v e l o p m e n t % i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e r a l a g e n c i e s . , 3/ I n t h e c a s e of S t a t e & l o c a l g o v t , s e c u r i t i e s , G.O. d e n o t e s g e n e r a l o b l i g a t i o n s ; R e v . - I r e v e n u e o b l i g a t i o n s e c u r e d o n l y by i n c o m e f r o m p u b l i c u t i l i t i e s ; R e v . - Q . - U t . , r e v e n u e J b o n d s s e c u r e d o n l y by r e v e n u e f r o m q u a s i - u t i l i t i e s ; R e v . - S . T . , r e v e n u e b o n d s s e c u r e d b; r e v e n u e f r o m s p e c i f i c t a x e s o n l y ; Rev. R e n t . , r e v e n u e b o n d s s e c u r e d s o l e l y by l e a s e p a y m t s . 4/ Bonds m a t u r i n g 1990 n o t p u b l i c l y r e o f f e r e d . 6/ Bonds n o t p u b l i c l y r e o f f e r e d , % 5/ Bonds m a t u r i n g 1 9 6 7 - 7 6 and 1995 n o t p u b l i c l y r e o f f e r e d . f n H. 14 Exhibit L Forthcoming Lirge 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 Corporate Other £/ local govt. .964 - J u n e 30 J u l y 31 Aug. 31 ; Sept.30 j O c t . 30 J Nov. 30 } Dec. 31 *1965 - J a n . 29 \ . Feb. 26 • Mar. 31 A p r . 30 v May 28 | J u n e 30 ; 292 92 402 186 90 105 169 407 267 852 765 363 i li 539 120 511 500 254 . 360 306 242 316 212 411 328 397 ' Subsequent to date shown State and Corporate local govt. 307 167 442 186 15 - - 716 588 680 626 549 563 435 382 599 373 635 •- 474 524 - - 25 215 130 105 253 504 792 852 923 410 - ~ 60 25 70 20 Other y 15 - - - 25 215 - - - • • 60 25 70 20 F o r t h c o m i n g L a r g e . O f f e r i n g s a s of J u l y 2 Issuer Amount (millions of Type , CWMHtf R. H. Macy Co. Burlington Industries Inc. Nqw E n g l a n d T e l . & T e l . Co ^ N o r t h e r n 111. Gas. Co. A t l a n t a Gas L i ^ h r Co. P a c i f i c Gas and E l e c . Co. * B a l t i m o r e Gas & E l e c . Co. *Lone S t a r Cement C o r p . ^General Mills Inc. Macy C r e d i t C o r p . G r = a t W e s t e r n F i n a n i c a l Coi Approximate date of offering M l m l — Con. s u b . d e b . Deb. Deb. 1 s t mtg. bds. 1 s t mtq;. bds . 23.0 50.0 60.0 25.0 15.0 July 6 (rts July 8 J u l y 14 J u l y 20 J u l y 7.1 1 s t & r e f . mtg. b d s . 75.0 J t . l v ?9 S.F. deb. S.F. deb. S. F. d e b . Deb. Deb. 30.0 50.0 35-0 25-0 22-0 J u l y 28 July July Indefinite Indefinite Forthcoming Large O f f e r i n g s a s of J u l y 2 Issuer Type Amount (millions of dollars) (Cont'd) Approximate d a t e of offering S t a t e and Tor.nl '"ov^rnment S t a c e of C a l i f o r n i a S t a t e of Minnesota Memphis, Tenn. San F r a n . Bay A r e a T r a n s . A u t h . Commonwealth of P e n n a . M a r y l a n d S t a t e Roads Comm. S a c r a m e n t o Mun. U t i l . D i s t . , C a l . B r e v a r d Co. S p e c . Tax Sch. D i s t . , F l a Los A n g e l e s D e p t . of A i r p o r t s , C a l . P i t t s b u r g h , Pa. San F r a n c i s c o , C a l . Dade C o u n t y , F l a . F l o r i d a Dev. Comm. G. 0. G.O. G.O. Rev. - 0 . - U t . G.O. R e v . - S . T. Rev. - U t . Rev. - S . T. Rev.-Rent G. 0 G.O. G.O. Rev. - S . T. 120.0 54.9 25.0 70. 0 27.0 20.0 30.0 20.0 30.0 35.0 12. 7 46.0 33.8 Other Commonwealth o f New Z e a l a n d Bonds 20.0 ~ July 7 J u l y 13 J u l y 13 J u l y 14 J u l y 14 J u l y 14 J u l y 15 J u l y 20 J u l y 28 Aug. 4 Aug. 16 Indefinite Indefinite July 7 IncludeJ in t a b l e f o r f i r s t time. 1 / I n c l u d e s c o r p o r a t e and o t h e r i s s u e s o f $15 m i l l i o n and o v e r ; S t a t e and l o c a l g o v e r n m e n t t i s s u e s o f $10 m i l l i o n and o v e r . 2 / I n c l u d e s f o r e i g n g o v e r n m e n t and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and D e v e l o p m e n t i s s u e s and n o n - g u a r a n t e e d i s s u e s of F e d e r a l a g e n c i e s . N o t e : - - D e l e t i o n s f o r r e a s o n s o t h e r than s a l e of i s s u e : None. « H.14 Exhibit M F o r e i g n Government and C o r p o r a t e S e c u r i t y O f f e r i n g s and P l a c e m e n t s i n t h e U n i t e d S t a t e s Part I: S a l e Date Public Offerings Amount (millions of dollars) I s s u e r and D e s c r i p t i o n of I s s u e A. Sold May 1 t h r o u g h J u l y 2 5/6 25.0 Govt, of A u s t r a l i a - - 5 - 1 / 2 % b o n d s , m a t u r i n g 1985, r e o f f e r e d t o y i e l d 5.63% t o r e s i d e n t s o u t s i d e t h e U.S. and 4.98% t o r e s i d e n t s of t h e U.S. 5/26 15.0 C i t y of O s l o , Norway--5-3/4% b o n d s , m a t u r i n g 1985, r e o f f e r e d t o y i e l d 5.86%.** 6/15 50.0 Quebec H y d o r - E l e c t r i c Commission--4-5/8% d e b e n t u r e , m a t u r i n g 1985, r e o f f e r e d t o y i e l d 4.75%. 6/17 20.0 Kingdom of Denmark--6% b o n d s , m a t u r i n g 1985, r e o f f e r e d t o y i e l d 6.09%.** 6/22 20.0 M e t r o p o l i s of Tokyo--6% b o n d s , m a t u r i n g 1980, r e o f f e r e d t o y i e l d 6.50%.** B. 7/7 * ** 20.0 Prospective Offerings Commonwealth of New Zealand - b o n d s . Included in t a b l e f o r f i r s t time. I s s u e s o l d i s e n t i r e l y t o i n v e s t o r s o u t s i d e U.S. H. 14 M-2 Part II: P r i v a t e P l a c e m e n t - - R e p o r t e d May 1 t h r o u g h J u l y 2 Date reported Amount (millions of dollars) 5/26 25.0 C i t y of M o n t r e a l - - 5 % s i n k i n g f u n d d e b e n t u r e s , m a t u r i n g 1 9 8 5 - 9 0 - - n o i n f o r m a t i o n a v a i l a b l e on takedown. 5/28 30.0 Trans-Canada Pipe Lines L t d . - - 5 - 1 / 4 % f i r s t mortgage bonds, m a t u r i n g 1985, p l a c e d t o y i e l d 5.09%--no i n f o r m a t i o n a v a i l a b l e on t a k e d o w n . I s s u e r and D e s c r i p t i o n of I s s u e N o t e : F o r r e t r o s p e c t i v e d a t a on a g g r e g a t e f o r e i g n c o r p o r a t e and g o v e r n m e n t s e c u r i t y o f f e r i n g s i n t h e U n i t e d S t a t e s s e e E x h i b i t s I and J . T h e r e i s no s i m p l e r e l a t i o n s h i p b e t w e e n t h e d a t a shown i n t h e E x h i b i t and t h a t shown i n E x h i b i t s I and J b e c a u s e t h e l a t t e r i n c l u d e s p r i v a t e l y p l a c e d s e c u r i t i e s i n the p e r i o d i n which funds a r e a c t u a l l y takendown b u t o n l y i n t h e amount o f t a k e d o w n , w h i l e t h e p l a c e m e n t s shown i n t h i s e x h i b i t a r e i n c l u d e d when r e p o r t e d , f r e q u e n t l y w i t h l i t t l e o r no i n f o r m a t i o n c o n c e r n i n g t i m i n g of t a k e d o w n s . F u l l o r p a r t i a l t a k e d o w n s may t a k e p l a c e b o t h p r i o r and s u b sequent to the date a placement is reported. ^ - - I n c l u d e d in t a b l e f o r f i r s t time. U>
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