Full text of H.16 Capital Market Developments : June 4, 1962

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Mot f o r Publication
h.llt

U

June L, 1962„

"' J U -

4U# 6 1962
eg

DBKOOTROLLSD AITER SIX UOKTHS

VCAFITAL MARKETyDEVKLCIHENT5
STATES

ndi np Review of C a p i t a l Market Developments i n May)

Public 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 was q u i t e small
t h i s p a s t holiday-shortened week, but i s expected to be f a i r l y s u b s t a n t i a l
t h i s week. During t h e week ending June 1 3 two l a r g e corporate s e c u r i t y
i s s u e s t o t a l i n g $32 million were o f f e r e d , while no l a r g e State and l o c a l
government bond i s s u e s were s o l d . This week.* ending June 8, f o u r
corporate i s s u e s amounting t o &L60 are-scheduled f o r o f f e r i n g and one
S t a t e and l o c a l bond i s s u e with par value of $11 million i s on t h e
calendar.
Bond y i e l d s . Changes i n y i e l d s on seasoned, long-term bonds
were mixed l a s t week. Yi e l d s on Aaa-rated corporate bonds increased one
b a s i s p o i n t to Uo28 p e r cent while y i e l d s on Baa-rated i s s u e s remained
s t a b l e . S t a t e and l o c a l government "bond y i e l d s continued t o r i s e 0 with
y i e l d s on Aaa-rated i s s u e s increasing b b a s i s p o i n t s to 3o0lj. p e r cent
and t h o s e on Baa-rated i s s u e s up 2 b a s i s p o i n t s t o 3= 60 p e r centc Yields
on U. S„ Government bonds declined a s i n g l e b a s i s p o i n t .
Average y i e l d s on new corporate bonds* a d j u s t e d t o an Aaa b a s i s ,
were ij..06 p e r cent l a s t week, one b a s i s p o i n t below the average f o r t h e
previous week, but s t i l l i| basis p o i n t s above the low f or t h e y e a r reached
t h e week ending May 18,
'
S h o r t - and i n t e r m e d i a t e - t e r m i n t e r e s t r a t e s . Yields on Treasury
b i l l s declined a s i n g l e b a s i s point l a s t week, with y i e l d s on 6-month
b i l l s reaching a new low f o r the y e a r . Yields on 3 - 5 year U. S. Government
o b l i g a t i o n s d e c l i n e d J4. b a s i s p o i n t s . The average Federal funds r a t e
declined 62 b a s i s p o i n t s from t h e r e v i s e d l e v e l of t h e previous week t o
average 1.88 p e r cent„ Other short— and intermediate-term i n t e r e s t r a t e s
were unchanged.
FNMA secondary market o p e r a t i o n s . Purchases of mortgages in
the secondary market by the Federal National Mortgage Association dropped
i n A p r i l f o r the f i f t h consecutive month„ Th§/volume of $51=5 m i l l i o n
was the smallest s i n c e l a s t August. O f f e r i n g s t o FNMA a l s o continued
downward. With demand f o r mortgages remaining unusually strong i n
r e l a t i o n t o a v a i l a b l e s u p p l i e s , s a l e s by FNMA expanded sharply f u r t h e r ;
a t $105=7 m i l l i o n , they were more than double the volume of purchases
and the highest i n twelve months,.
Stock p r i c e s . Common stock p r i c e s moved i r r e g u l a r l y lower l a s t
week i n near r e c o r d t r a d i n g volume. P r i c e s , a s measured by Standard and
P o o r ' s composite index of 500 stocks* declined 7 p e r cent t o a new 1962
low l a s t Monday * but recovered most of t h e l o s s during t h e b a l a n c e of
the week, c l o s i n g on June 1 a t 59°38. Trading volume averaged 10 C 1
m i l l i o n shares a day, the l a r g e s t weekly volume s i n c e the l a s t week i n




-2-

October 1929.
In r e l a t i o n t o the number of shares l i s t e d on the New
York Stock Exchange in these two p e r i o d s , however ; l a s t week's t r a d i n g
volume was considerably below t h a t in 1929 =
June s e c u r i t y volume. S e c u r i t y financing by corporations t o
obtain net c a p i t a l i s expected t o be very l a r g e t h i s month while bond
s a l e s by S t a t e and l o c a l governments w i l l probably be r a t h e r l i g h t =
Corporate s e c u r i t y f i n a n c i n g i s expected t o t o t a l $1^150
m i l l i o n , t w o - t h i r d s l a r g e r than the Hay t o t a l but one-eighth l e s s than
the very l a r g e June 196l t o t a l . Large public s e c u r i t y o f f e r i n g s are
expected to t o t a l $58? m i l l i o n . June f i n a n c i n g i n t h i s volume would
bring the t o t a l f o r the second quarter t o $3;>050 m i l l i o n , o n e - t h i r d l e s s
than the r e c o r d volume a year ago but more than i n t h e second q u a r t e r
of most other y e a r s .
S t a t e and l o c a l governments are expected t o o f f e r about $650
m i l l i o n in bonds i n June s almost o n e - f i f t h l e s s than the r e v i s e d May
volume and about o n e - t h i r d l e s s than t h e average f o r June of the two
previous y e a r s . This would b r i n g t o t a l f i n a n c i n g f o r t h e q u a r t e r to
#2.3 b i l l i o n , s l i g h t l y l e s s than during the corresponding period l a s t
year.
Capital markets i n May. Corporate s e c u r i t y f i n a n c i n g t o obtain
new c a p i t a l was r e l a t i v e l y l i g h t i n May, while S t a t e and l o c a l government
bond s a l e s were i n moderate volume0
Corporate s e c u r i t y s a l e s amounted t o $0,7 b i l l i o n i n May; about
t w o - f i f t h s l e s s than the l a r g e volume of both the previous month and
May 1961o Large i s s u e s sold p u b l i c l y during the month amounted t o only
$200 million - 9 the lowest t o t a l since January, Sales of l a r g e nonconv e r t i b l e bond i s s u e s amounted to $170, while s a l e s of l a r g e stock issues
amounted t o only $30 m i l l i o n .
Underwriters b i d f a i r l y a g g r e s s i v e l y f o r the small volume of
new corporate issues and r e o f f e r e d t h e s e i s s u e s to i n v e s t o r s a t y i e l d s
which were g e n e r a l l y the lowest i n over two years. R e t a i l demand a t these
y i e l d s was only moderate f o r most i s s u e s and t h e volume of s e c u r i t i e s
s t i l l i n underwriting syndicates climbed from a n e g l i g i b l e amount to
around $1|0 m i l l i o n 0
Average y i e l d s on new corporate bond o f f e r i n g s s o l d l a s t month>
a d j u s t e d t o an Aaa b a s i s , were lu09 per cent, 8 b a s i s points l e s s than in
A p r i l 9 and the lowest monthly average since July 1958= On a weekly b a s i s ,
however s new i s s u e y i e l d s increased s l i g h t l y toward the end of t h e month0
Yields on seasoned bonds also declined somewhat f u r t h e r during May with
those on Aaa-rated i s s u e s decreasing 3 b a s i s p o i n t s to k.28 per cent by
month-end.
Bond s a l e s by State and local governments amounted to $0=8
b i l l i o n during May, 6 per cent l e s s than in A p r i l but o n e - t h i r d l a r g e r
than the average f or ^ay of the two previous y e a r s .




Dealers' a d v e r t i s e d i n v e n t o r i e s of unsold s e c u r i t i e s continued
t o r i s e during the f i r s t t h r e e weeks of the month t o a record l e v e l of
$680 million and bidding f o r new i s s u e s became l e s s a g g r e s s i v e . I n v e s t o r
demand continued s e l e c t i v e but toward the end of t h e month s e v e r a l l a r g e
new i s s u e s o f f e r e d to y i e l d somewhat more than recent comparable i s s u e s
were very favorably r e c e i v e d . Late in the month d e a l e r s a l s o cut the
p r i c e s on a number of unsold i s s u e s t o r a i s e y i e l d s 5 to 20 b a s i s p o i n t s
above t h o s e o r i g i n a l l y o f f e r e d . This, however, was only s u f f i c i e n t t o
move a moderate amount of t h e i r unsold s e c u r i t i e s , and by t h e month-end,
the volume of a d v e r t i s e d i n v e n t o r i e s was $625 million,, $80 m i l l i o n above
the end of A p r i l l e v e l but $55 m i l l i o n l e s s than the record volume reached
e a r l i e r in the month.
R e f l e c t i n g t h e s e developments y i e l d s on municipal bonds r o s e
during the month, reversing the downward t r e n d t h a t had p r e v a i l e d s i n c e
mid-December,, At month-end, y i e l d s on 20-year, Aaa-rated bonds were 3„Cli
per c e n t , 12 b a s i s p o i n t s above t h e low reached i n t h e f i r s t week of t h e
month, but 29 b a s i s p o i n t s below the mid-December l e v e l 0
Common stock p r i c e s dropped sharply f u r t h e r in May in a c t i v e
tradingo P r i c e s , as measured by Standard and P o o r ' s composite index of
500 s t o c k s , declined almost 9 per c e n t on balance to c l o s e t h e month a t
59.62, almost o n e - f i f t h below t h e December 12 high. Trading averaged 5=0
m i l l i o n shares a d a y , 1„7 m i l l i o n more than i n A p r i l and t h e l a r g e s t
since A p r i l I 9 6 I ,
During the f i r s t t h r e e weeks of the month, stock p r i c e s moved
i r r e g u l a r l y downward, declining about 2 p e r cent from t h e i r end of April
l e v e l . During the period May 21-28, however, p r i c e s f e l l very sharply
culiminating i n a dramatic decline of almost 7 per c e n t on May 28, one
of the l a r g e s t percentage d e c l i n e s on record. Prices recovered almost a s
dramatically d u r i n g the next two t r a d i n g s e s s i o n s , however, ending t h e
month s l i g h t l y above t h e i r Hay 25 l e v e l 0
Trading a c t i v i t y roughly followed t h e movement In stock p r i c e s .
Volume during the f i r s t t h r e e weeks of t h e month v a r i e d considerably
from day t o day. A c t i v i t y picked up s h a r p l y l a t e i n the month,, with
t r a d i n g volume averaging 11„6 m i l l i o n shares f o r t h e l a s t three days;
t r a d i n g on May 28 t o t a l e d ll*„8 mill ion shares, a volume exceeded only by
s a l e s on October 29, 1929P when, of course, the number of shares l i s t e d
on the New York Stock Exchange was considerably smaller tnan today„
Due to the u n c e r t a i n t y i n t h e market,, several new stock i s s u e s
were postponed near the end of May, including two l a r g e public u t i l i t y
i s s u e s . In a d d i t i o n , a number of secondary o f f e r i n g s were delayed 0
More d e t a i l e d information concerning recent c a p i t a l market
developments i s presented in t h e attached e x h i b i t s .

C a p i t a l Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




EXHIBIT A, Port I
LONG-TERM

BOND

YIELDS,

HIGH-GRADE

Weekly

Exhibit A - Part I I

Date

Corporate
Aaa 1 /

i
•i
"*

I

S t a t e , and .
local
government
Aaa 3 /

Spread between
U. S. Govt, and
S t a t e and
Corporate
l o c a l Aaa
Aaa

(per cent)

V

ci

U. S . Govt.
. long-term 2 /

1957 - High
1958 - Low
1 9 5 9 - 6 0 - High
1 9 6 0 - 6 1 Low
1 9 6 1 - High
1962 - High
Low
May 4
May 1 1
May 18
May 25
iJune 1 2 /
Note:

k.lk
3.55
4.6l
4.21
4.46
4.43
4.27

(9/27)
(5/2)
(1/29/60)
(3/17/61
(9/15)
(2/16)
(5/25)

4,30
4.29
4.28
4.27 .
L28-/

3.76
3.07
4.42
3.70
4.07
4.12
3.85
3.87
3.85
3.87
3.90
3.89

F o r f o o t n o t e s s e e E x h i b i t B.




(lO/lB)
(4/25)
(1/8/60)
(5/12/61)
(12/29)
(2/23)
(5/11)

3 . 4 5 (8/29)
2.64(5/1)
3 . 6 5 ( 9/24/59)
2 . 9 9 (9/1/60)
3 . 3 7 (7/6)
3.26 (1/4)
2.92 (5/3)

.60
.22
.59
.19
.57
.47
.29

2.92
2.93
2.94
3.00
3.04

.44
.41
.37
.39

' f t

.50
.34
.92
.46
.76
1.08
.80
.95
.92
.93
.90
.85

EXHIBIT B. P.n I
LONG-TER.A_BOND YlELPS, LOWER-GRADE

S T A T E A N D I Q C A t G O V E R N M E N T Bi

1957

1958

1959

I960

1961

1962

kxnibit B - Part II

Date

Coiporate
Baal/

S t a t e and
local govt.
Baa]/

Spread between
Aaa a n d Baa
S t a t e and
Corporate
local £ovt.

(per cent)
1957 - High
1 9 5 8 - Low
1 9 5 9 - 6 0 - High
1 9 6 0 - 6 1 Low
1961 - High
1962 - High
Low
Hay k
May 1 1
Hay l f i
May25
June 1 £ /

5*10
14.51
5.36
li.98
5.13
5.11
1.98

(11/29)
(7/11)
(2/12/60)
(9/9/60)
(10/27)
(1/5)
(6/1)

5.02
5.00
1.99
L.96-

U.51
3.'61
I4.I16
3.93
1.16
Lob
3.52
3.52
3.52
3.52
3.58
3.60

(8/29)
(5/1)
(1/7/60)
(11/9/6I)
(3/23)
(1/11)
(5/17)

1.27
.77
.81
.66
.81
.7?
.63
.72
.71
.71
.71
.70

1.21
.93
1.08
• 57

:n
.60
.59
.58
.5h
.56

J>/ Preliminary.
\ J Weekly average of d a i l y f i g u r e s . Average term of bonds included in 23-26 y e a r s .
2 / Weekly average of d a i l y f i g u r e s . The s e r i e s includes bonds due or c a l l a b l e in 10 years or more,
3 / Thursday f i g u r e s . Only general o b l i g a t i o n bonds are included; average term i s 20 y e a r s .
Digitized Note.—Highs
for FRASER
and lows are f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t dates f o r d i f f e r e n t
a e r i e s . For spreads, high r e f e r s t o w i d e s t , and low to narrowest.



EXHIBIT C. Pjorl I
SHORT.

AND

INTERMEDIATE-

TERM INTEREST

RATES, G O V E R N M E N T

MONTH SILLS

3 - 5 m i issuis

R. D I S C O U N T R A T I
3 • MONTH BILLS

I I I I I I I I I I I I I I l l l M I I I I I I 1 1 ,11 M i l l ! Li LLU-Li-ll- .1 11111 M i l l
1958

1959

0

I960

Exhibit C - P a r t I I
Date

Discount
rate
1/

1957 - High
1958 - Low
1959-60 - H
1960-61 Low
1961 - High
1962 - High
Low

3.50
1.75
ii.00
3.00
3.00
3.00
3.00

May U
May 11
May 18
May 25
June 1 2 /

3.00
3.00
3.00
3.00
3.00

3-month
b i l l s 2/
3 . 6 1 (10/18)

Yields
6-month
b i l l s 2/
(per cent)

3-5 y e a r
issues 2/

Spread between y i e l d s on 3 month b i l l s and y i e l d s on
6-mo. b i l l s | 3 - 5 y r . i s s u e s

it.Ol* (10/18)
2.1k (6/6)
5.07 (1/8/60) 5 . 0 0 (12/24/59)

.26

2 . 8 1 (2/16)
2.67 (5/18)

3.02 (1/12)
2.76 (6/1)

3.88 (2/2)
3 . W (4/6)

M
.2k
.08

2.7k
2.67
2.67
2.69 /
2.68./

2.83
2.77
2.77
2.77
2.76

3.51
3.1*8
3.55
3.57
3.53

.09
.10
.10
.08
.08

. 5 8 (5/29)

k. 59 (1/8/60)

3 . 0 2 (12/26)

2 . 1 1 (10/28/60) 2 . 3 5 (4/28/61) 3 . 1 5 (5/12/61)
3.86(8/11)
2 . 6 6 (12/29)
2 . 9 0 (12/29)

.79
.12

.86
.Oii
1.81
.38
1.51
1.19
.71

.

.77
•81.bb
.88
.85

2/ Market yield; weekly averages computed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
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 D. Port I
5HORT- AND
BANKS

AND

INTERMEDIATE-TERM
OTHER

INTEREST

RATES,

PRIVATE BORROWERS

STOCK EXCHANG
CmiOANS

FINANCE COMPANY PAPER
P R I M E RATE

. 1. DISCOUNT

11 I I II

LI I I I I I I I

IJ.JJ1-UJJ

I I I I I I I I I I I LLLLU.lJ.il

M

E x h i b i t i) - P a r t I I
S t o c k Exchange
c a l l loan 1 /

Prime
r a t e 1/

F i n a n c e company
paper 2/

Federal
funds 3 /

(per cent)
1957 - High
1958 - Low
1 9 5 9 - 6 0 - High
1 9 6 0 - 6 1 Low
1 9 6 1 - High
1962 - High
Low

U.50
3.50
5.50
It. 50
it. 5-0
U.50
ii.5o

JU.50
3.50
5.00
i*-5o
it. 5o
It. 50
h.So

3.88
1.13
5.13
2.50
3.00
3.13
2.88

May h
May 1 1
May 18
May 25
June 1 2 /

L5o,
U.5o
h.5o
It.5o
it.5o

it. 50
It.50
it. 5o
4.50
it. 5o

3.00
3.00
2.96
2.88
2.88

y

(11/15)
(8/8)
(1/22/60)
(8/5/61)
(12/29)
(it/13)
(6/1)

3 - 5 0 (11/8)
.13(5/29)
It.00 (5/13/60)
.it3 (1/27/61)
2 . 8 8 (12/29)
2.95 (3/23)
1.30 (1/26)
2.65
2.60

^58
2.55

S p r e a d between
3-mo. b i l l s and
f i n a n c e Co. p a p e r y

I
1

.63
-.35

1.02
.11
.56
.ill
.19

.26
.33
.29
.19
.20

Weekly rate shown i s that in e f f e c t at end of period. Stock Exchange c a l l loan rate is going rate
on c a l l loans secured by customers1 stock exchange collateral at New York City banks. Prime rate
i s that charged by large banks on short-term loans to business borrowers of the highest oredit
>K\
standing.
2/ Average of daily rates published by finance companies for directly placed paper for varying maturities^ 1 .
in the 90-179 day range.
4'
3 / Weekly average of daily e f f e c t i v e rate, which i s the rate for the heaviest volume of purchase and
, •<
Digitizedsale
fortransactions
FRASER 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.
'
http://fraser.stlouisfed.org/
For spreads, high refers to.widest, and low to narrowest.

Federal Reserve Bank of St. Louis

1
EXHIBIT. E.P =
STOCK

MARKET

\

n s of Do Mars

/

CK MARKET (RED

< —

*

C H A N G E IN SERIES

YIEIOS

_Xi_Li.Li-Lia.-V.

Ayi 1 l 1 1 l 1 1 1
Exhibit £ - Part I I

Bate

1 9 6 0 - 6 1 - High
Low
1962 - High
Low
April
May
May 18
May 25
June 1 2 /

Stock p r i c e
index 1/

72.01*
53.32
70.94
59.36

(12/8/61)
(10/21/60)
(3/16)
(6/1)

68.05
62.99
63.82
59.17
59.36

Trading
Common
volume 3 /
y i e l d s 2/ (millions
( p e r c e n t ) of s h a r e s )

2.82
3.62
2.93
3.19

5.8
2.2
10.1
3.0

3.05
3.32
3.25
3.1*8
3.49

3.5
5.0
3.9

U. 6

10.1

Stock m a r k e t c u s t o m e r c r e d i t
Bank
Customers
debit b a l - loans to
a n c e s 1*/ " o t h e r s " 5 /
( I n m i l l i o n s of d o l l a r s )

Total

5 , 6 0 2 (12/61)14,259 (12/61)
1*,11*2 (5/60) 3,001* (7/60)
5,1*91 (1*) i * , l l l ( 1 )
5,1*29 ( 2 ) 1*,066 ( 2 )
5,1*91
n.a.
n.a.
n.a.
n.a.

14,079
n.a.
n.a.
n.a.

1,377
1,121
1,1*18
1,31*8

(e/ao/ei)
(5/25/60)
(5/9)
(1/2k)

1,1*12
1,398
1,1(16
1,398

n.a.—Not available.
2 / 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 lots 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 f o r dates on which price index reached i t s high
3/
4/

Averages of daily trading volume on the New York Stock Exchange.
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. Prior to July 1, 1959, such loans are excluded only at banks in
New York and Chicago. Weekly reporting banks account for about 70 per cent of loans to others.
Tor FRASER
further d e t a i l see Bulletin.
Digitized for



to
EXHIBIT F. Pari I
FEDERAL

NATIONAL

SECONDARY

MORTGAGE

MARKET

ASSOCIATION V

OPERATIONS

Monthly

Ullloni of dollo

\
OFFERINGS

p

/1
11
I 1
11

1

i

IV
\AAJ

\

1

Ik
J i

IJ
V

J

w

Z /

j

L " A

iV
A
i\

T

'

y
W z
V /

j roicH A S E S

V

V

fi

L

.«VL

X/

t

/ /

r

Exhibit F - Part I I
Date

1961 - Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1962 - J a n .
Feb.
War.
Apr.

E s t i m a t e d o f f e r i n g s t o FNMA
Purchases
Immediate
Standbyby
Total
p u r c h a s e commitment
FNMA.
( I n m i l l i o n s of d o l l a r s )

S

26.k
35.0
U7.9
75.7
111.2
122.9
151;. 2
ua.it
120.0
118.3
82.5
68.6
51.5

21*. 0
32.2
1*6.9
73.9
108.0
119.3
150.9
138.5 117.7
116.6
80.8
66.3
50.2

2.1*
2.9
1.0
1.7
3.2
3.6
3.3
2.9
2.3
1.7
1.7
2.3
1.3

21.8
21.3
25.lt
2lt.lt
52.7
60.1*
92.lt
112.3
106.7
10lt.7
88.8
81.5
51.5

Sales
by
FNMA
165.6
101.lt
17.2
5.6
2. It
10.5
1.8
2.7
2.It
l.lt
7.3
c/75.9
105.7

•—Less than $50,000.
3 / Data represent unpaid principal balances of the mortgages involved, exclusive of
premiums, discounts, or other charges. Offerings are amounts of applications received
during the period from s e l l e r s proposing that FNMA. execute purchasing c ontraots. An
immediate purchase contract covers e x i s t i n g mortgages which the s e l l e r must d e l i v e r to
FNMA n i t h i n 45 days. A standby commitment contract relates t o proposed mortgages on
housing not y e t under construction which the s e l l e r must usually d e l i v e r within one
Digitized for year.
FRASER
Purchases include those under both inmediate purchases and standby commitment
contracts. Data exclude FNMA a c t i v i t y under Special Assistance and Management and
http://fraser.stlouisfed.org/
Liquidating Programs,

Federal Reserve Bank of St. Louis

If

IV. Ik

Exhibit G
Yields on New Corporate bond Issues Adjusted t o an Aaa basis
Number
of i s s u e s
included

Monthly averages:
1961 - July
August
September
October
November
December.
1962 - January
February
March
April
May
June
Weekly averages;
1961 - July 7
14
21
28
August 1*
11
18
25
September 1
8
15
22

29.

October 6
13
20
27
November 3
10
24
December 1
8

4
4
2
7
9
3
4
5
6
7

Amount
Average
of i s s u e s
yield
included
(per
(millions
cent)
of d o l l a r s )

273.0
115.0
78.8
200.0
229.0
115.0
130.0 .
394.5
.240.0
299.0
lii8 0

1
1
2
2
1
1

8.0
200.0
65.0
55.0
20.0
40.0

4. 62
4.59
4.38
4.26
4.32
1.39
4.45
4.50
4.23
4,17
4.09

4.46 .

1

18.0
60.8
>5.0

4.36
4.25

2
3
3

60.0
95.0
45.0

4.21
4.28
, 4.21

~k

94.0
60.0
30.0
75.0

4.29
4.35
4.40
4.29

4.55*

In 68 (6/16)
it. 21 ( 1 1 / 3 )

1961

January 5

I

Amount
Average
of i s s u e s
yield
included
(per
(millions
cent)
of d o l l a r s )
ItO.O

December 15
22
29

il.60 ;
4.64
4.46
4. 54
4.73*
it.60 i

1
2

1
1
2

Number
of i s s u e s
included

jh 2
9
16
23
30
.1 6

13
20
27
11
18
25

l

60.0

3

70.0

2
1
1
1
1
1
2
2
2
2
2

19.5
300.0
50.0
25.0
30.0
65.0
60.0
85.0
98.0
26.0
100.0

4.4o
4.52*
4.50
4.37
4.29
4.23
4.21
4.22
4.21
4,12
4.17*

2
2

115.0
28 0
ui
39 rO
17,0

4.14
4.21
0:

4.40

l

0

2

2
1

4.50

"

c

'' ••• 0 .
; ™ 4,00

IS
22
29

Notei Averages of o f f e r i n g y i e l d s on a l l new i s s u e s of publicly sold bonds rated Aaa, Aa
and A by Moody's Investors Service (except s e r i a l , equipment t r u s t and convertible Issues,
o f f e r i n g s of natural gas p i p e l i n e and foreign companies, and i s s u e s guaranteed by the
Federal Government) weighted by s i z e of i s s u e s . Yields on Aa- ana A-rated bonds are
f i r s t adjusted to an Aaa b a s i s , using the comparable spreads i n y i e l d s on seasoned bonds
(Moody's averages). Averages r e f l e c t changes in i n d u s t r i a l composition, type, maturity,
and c a l l provisions of new o f f e r i n g s . Weekly averages considered unusually unreliable
a s i ndi cat or s of i n t e r e s t r a t e s on new i s s u e s because of the small number or s p e c i a l
c h a r a c t e r i s t i c s of o f f e r i n g s included e t c . are marked with an a s t e r i s k . Source; weekly
data, F e d e r a l Reserve;monthly data; F i r s t National City Bank of New York.




fz.
H.„4

Exhibit H
Long-term Corporate and S t a t e and Local Government
Security Offerings and Placements
(In millions of d o l l a r s )

1962
January
February
March
April
May
Juhe

New capital
State and local 2/
Corporate 1/
1 19 to
1 1961
1962
I i960
1 1961

#2
. 8#
80-

580
667
562

570
715
860

e/850
eTlOOO
e/625

713
689
764

700
611
Sol)

e / l 150

2,118
1,259
1,318

. 761
577
1,044

e/850
e/8'00
e, cj)0

723
641
1,034

719
545
991

736
967
726

485
604
733

492
606
663

890
956
852

677
788
2/584

340
501
491

2,166
2.397
1,823
G/2,049

1,000
2,2g6
1,700
1,340

4,563
6,386
p/8jk35

4,136
5,916
7,257

July
August
September

1,028
762
647

October
November
December

1,090
948
1,000

qua rter
quarter
quarter
quarter

1 s t half
Three quarters
Year

. 2=258
e/i0<0

111

1st
2nd
3rd
4th

•

2,145
2,382
2,428
2,698

^/S /OS

6,50k
8,941
11,979

4,527
6,955
9,653

Excluding finance companies 3 /
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

e/2,159

Year

I

1,554
4,552
2,337
2,807
11,253

•

1,716
2,165
2,018
2,347

e/2,475
e./? 300

-

-

8,246

Preliminary,
Estimated.
S e c u r i t i e s and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of p r i n c i p a l amounts.
Total new c a p i t a l i s s u e s excluding" o f f e r i n g s of s a l e s and conruner finance
companies.




Exhibit I

H 14

New Corporate Security Issues, Type of Issue and I s s u e r
(In m i l l i o n s of d o l l a r s )
Quarter
month

Net proceeds f o r
Gross proceeds f o r new
new c a p i t a l 1 / 2/
c a p i t a l and refunding 1 /
Common
Bonds
and
Public Communi- Other
Total P u b l i c l y j P r i v a t e l y pfd.
Mfg; 1 u t i l i t y c a t i o n s i s s u e r s
o f f e r e d I o f f e r e d stock J1
J

T

7#
110
75k
955

536
692
129
kl6.

298
511
562
6#

598
808
652

189
lk9
317
381

1,059
913
896
997

662
2,303
112
967

880
1,275
1,139
l,L2b

hh9
1,77k
65k
8k5

515
lsk66
595
836

381
1,081
595
836

81
1,095
10k
lk7

832
1,052
803
1,263

2,'378

1,155

716

507

655

k30

k56

717

601
695
696
2,231
l,3k2
1,779
1,075
813
678
i 1,155
1 987
| 1,094

178
273
211
713
666
92k
k2k
225
123
336
kik

29k
255
331
3k8
355
572
#2
ki 1
"336

217

3k8
567

129
167
. 15k
1,170
320
#3'
259
177
2L8
310
225
310

169
, 99
2k8
57k
kk7
kk6
k28
255
252
271
215
306

137
160
8k
25k
k39
389
369
215
111
306
362
168

21
. kl
19
99k
85
16
16
13
75
25
80
k2

253
368
211
297
289
k67
315
279
209
k87
291
k85

617
88k
8k7
1:300

273
k97
386
650

232
232
#3
#5

lk3
155
209
325

205
131
318
kkO

89
lk8
193
380

73
362
21
80

225
218
275
300

I960 - I
II
HI
IV

2,2#
2,237
2,#0
2,832

93k
1,07k
1,336
1A62

1961 - I
II
III
IV

1,992
5,3#
2,566
3,236

1962 - I

.

696

•

III
IV
1961 - Jan.
Feb,
Mar.
Apr,
May
June
July
. Aug,
Sept.
Oct.
Not,

Deo r
1962 •= Jan?
Feb.
Mar,
Apr e /
May
June
July
Aug,
Sept.
Oct,
Nov,
Dec,

509

}d7 Preliminary,
T] hstimatedT
1/ Gross proceeds exceed n e t proceeds
by the cost of f l o t a t i o n .
2 / *or t o t a l see i n 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 and other t r a n s p o r t a t i o n s r e a l e s t a t e and f i n a n c e and
commercial and other
S o u r c e . — S e c u r i t i e s and Exchange Commission.




:.iU
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 )
Foreign government 2/
1962
W
3
January
February
March
April
Kay
June
July
August
September
October
November
December

1U2
10
35

e / 10

156

3^

^L60

29

iiC

12

66

250

225

236
s/196

57

18
I4.66

~2h8
2/ho

Year'
Jan.-April

%/2?fr

gf
1/

160
195
'--8
=103
• U2
=>155
109
518
^86
-6
5U
-116

e/862

281

2h7

!
!

-0,57

1

. is
-175
-11.6
50
-IS?

520

18

2kb

188

g
35U
199
160
1U9
181

1,W8

1,672

352

630

H™~5Z
Federal

58
]1;.0
-80
7
o

-1k$

252
100
1U9
278
193

36
3lt
2
la.

i;3
3U

182
150

21x6

"Nit"
S t a t e and Local governmenlT~57~
January
February
March
April
May
June
July
August
September
October
November
December

w

2
175

25
1

Year
Jan. - A p r i l

~

^

6
29
20
2

-=156
2#
-3U6

!

i

'!

U7

-1hh
-79
.-8?
20?
22
193
108
98
56
=111*

-196
=202
-59
-277
170
320
95
23
=201
= 23
-33
-250

=? 6

=633

-162

-17k

-559

-73k

Preliminary.
Estimated by Fede^ClT^iservi 7
These d a t a d i f f e r from t h o s e in Exhibit H an t h a t r e f u n d i n g , i s s u e s 3 as w e l l as new
c a p i t a l i s s u e s $ a r e included. Long-term s e c u r i t i e s a r e d e f i n e d a s those maturing
i n more than one y e a r .
2 / I n c l u d e s s e c u r i t i e s o f f e r e d in. t h e United S t a t e s by f o r e i g n governments and t h e i r
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 . Source' Se:,-a:ritees and Exchange Commission,
3 / I s s u e s not guaranteed by t h e U, S„ Government, Source, long-term., S e c u r i t i e s and
Exchange Commission) s h o r t - t e r m . Treasury Department and Federal Reserve,
k / These d a t a d i f f e r f r o m t h o s e i n Exhibit H and above in 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 > whether from t h e proceeds of r e f u n d i n g i s s u e s o r from
o t h e r funds„ Data i n c l u d e only i s s u e s with o r i g i n a l m a t u r i t y of one y e a r o r l e s s ,
5/ P
r i nFRASER
c i p a l l y t a x and bond a n t i c i p a t i o n notes* w a r r a n t s or c e r t i f i c a t e s and P u b l i c Digitized
for
Housing A u t h o r i t y notes* In some i n s t a n c e s PHA n o t e s included may have a somehttp://fraser.stlouisfed.org/
what l o n g e r than one y e a r . Source: Bond Buyer and F e d e r a l Reserve.

Federal Reserve Bank of St. Louis

Exhibit K

Ho 111

Large Long-term Public Security I s s u e s f o r New C a p i t a l
(Other than U„ S. Treasury) 1 /
Proceeds of Large I s s u e s Offered
(In m i l l i o n s of d o l l a r s )
Corporate
|
Bonds
J
1 ( o t h e r than fConvertible
bonds
!convertibles)|

Total

Month
1961

1*80
1*35
#5
165
78
205
320
125
170
1*25
330
ii30
170

557
#2
1*75
185
168
3 51*
391
255
195
1*25
366
6U8
200

•July
September
October
November
December
1962 - January
Februaly
March
April
May

Stocks

State
and
local
government

62
97
115
20
58
81
1*5
130
25

1*.
75
33
67
26

a
167
30

15
51

Other
2/

256
616
179
281
1*35
326
1*80
307
561
662
259
1*23
373

25
151
100
7j_
1*0
250
11*5
61*
30
55
88

Large I n d i v i d u a l I s s u e s Offered May 1 through June 1
Issuer

i

CORPORATE
Com.stk.
18.3
Ist&ref .mtg.bds.ljOoO
Deb.
20.0
1 s t mtg, bds. 2.5 c O

* "-Pacific Power & Light Co.
.* Southern C a l i f . Edison Co.
• Wisconsin Telephone Co.
Milwaukee Gas Light Co.
' , Columbus & Southern Ohio
^
E l e c t r i c Co.
t,j( Florida Power Corp.
a Gulf S t a t e U t i l i t i e s Co.
Utah Power & Light Co.
Utah Power & Light Co.
•^Copenhagen Telephone Co.
Alabama Power Co.

1 s t mtg. bds. 16.0
1 s t m t g . b d s . 25oO

1 s t mtg. bds.
1 s t mtg. bds.
Pfd.stk.
S.F 0 deb.
1 s t mtg. bds.

•

;i

Amount
Coupon
r a t e or O f f e r i n g Rating
( m i l l i o n s Maturity
net i n t e r - yield
of
e s t cost
dollars

Type 3/

17,0
22.0
12.0
15»0
17oO

1987
2002
1987

l*~l/l*
1*~3/8
l*-5/8

1*.25
l*c27
i*o50

Aa
Aaa
Baa

1992
1992
1992
1992

1-3/8
l*~l/l*
l*-3/8
h-1/2

1*.30
l*o 20
1*.28
l*e 35

A
Aa
Aa
A

1977
1992

5-5/8
U-3/8

5-95
l*o 39

A

3.36
2.71

3.33
1.90-2.90

3.02

1.85»3o3QS/ A

tea —

i

STATE AND LOCtiL GOVERNMENT j
Port of New York Auth.
|
St a t e of Hawaii
Wash. Sub. S a n i t a t i o n D i s t , J
Md„

'I

Rev.-Ut.
G.O.
• G.Q.




35.0
10o0
.

1993
1965=82

1 5 . 0 , 1 9 6 W 9

A

A

&.
K-2

H.ll*

Large I n d i v i d u a l I s s u e s O f f e r e d May 1 through June 1 (Cont'd)

Issuer

Type 3 /

Coupon
Amount
r a t e or O f f e r i n g
(millions
Maturity net i n t e r - y i e l d
of
e s t cost
dollars

Rating

STATE AND LOCAL GOVERNMENT
(Cont'd)
C i n c i n n a t i , Ohio
Georgia S t a t e Sch. Bldg„
Auth 0
A u s t i n , Texas
P o r t of New Orleans Board
of Comm., La.
S a l t Lake C i t y , Utah
M e t r o p o l i t a n S e a t t l e , Wash.
Sacramento Man. U t i l i t y
D i s t . , Cal.
—S t a t e of I l l i n o i s
Wayne C o . , Mich.
S t a t e of M i s s i s s i p p i
S t a t e of New York
S a l t River P r o j e c t , A g r i .
Imp. Pwr. D i s t . , Arizona

G.O.

10.0

1963-87

2.77

1.50-3.00

Aaa

Rev.-Rent.
Rev.-Uto

26.5
xU.o

1963-83
1963-87

3.09
'3o0h

1.60-3.1*0
1.60-3.20

A
Aa

G.O.
G.O.
Rev.-Ut»

25.0
11.5
16.0

1972-97
1965-80
196I1-2000

3* 3k
2.69
3.63

2.70-3.502/ A
Aaa
1.90-2.-80
2.00-3.70

Rev„-Ut.
G.O.
G.O.
G.O.
G.O.

10.0
95.0
18.3
19.5
57.3

1966-82
1963-87
1967-2002
1963-82
1961^-2012

2.96
2.96
3.66
3.12
3.22

2.10-3.15
1.55-3.15, ,
2.1*0-3.752/
1.60-3.20
1.70-3.75

G.O.

10.0

1965-91

3.35

2.05-3.551/ A

Bonds
Bonds

20.0
25.0

1977
1997

5-1/U
5-1/U

5-1*7
5.50

A
Baa

25.0
17-5

1982
1977

5-lA
6

5.33
6.1*1

—

Aa
Aaa
A
Aa
Aaa

OTHER
Kingdom of Denmark
Govt, of New Zealand
European Coal and S t e e l
Community
Japan Development Bank

Bonds
Bonds

^

-x-—Rights o f f e r i n g .
Foreign c o r p o r a t i o n 0
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 of $15 m i l l i o n and o v e r ;
S t a t e and l o c a l government s e c u r i t y o f f e r i n g s of $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 government 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
Development i s s u e s and non-guaranteed i s s u e s by F e d e r a l a g e n c i e s .
3 / In t h e c a s e of S t a t e and l o c a l government s e c u r i t i e s , G.O. denotes g e n e r a l
o b l i g a t i o n s ; Rev,-Ut„ s revenue o b l i g a t i o n s s e c u r e d only by income 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 . , revenue bonds s e c u r e d only by revenue from
qua s i - u t i l i t i e s ; R e v . - S . T . , revenue bonds s e c u r e d by revenue f r o m s p e c i f i c
t a x e s only; R e v . - R e n t . , revenue bonds secured s o l e l y by l e a s e payments,
V
1 / 1 0 p e r c e n t bonds maturing 1990-93 r e o f f e r e d t o y i e l d Uol*0 p e r c e n t .
V 1 - 1 / 2 p e r c e n t bonds maturing 1996-97 r e o f f e r e d t o y i e l d It.00 p e r c e n t .
6/ 3 - 1 / 2 p e r c e n t bonds maturing 2001-02 n o t r e o f f e r e d .
7 / 1 p e r c e n t bonds maturing 199U r e o f f e r e d t o y i e l d li.OO p e r c e n t .




Ho lii

Exhibit L
Forthcoming Large Long-term Public Security Offerings f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
Subsequent to
During month following
date shown
date shown
S t a t e and
Corporate l o c a l govt. Other 2/ Corporate l o c a l govt, i

Date of
computation
1961 - May 31
June 30
J u l y 31
Aug. 31
Sept. 29
Oct. 31
%ov, 30
Dec. 29
1962 - Jan. 31
Feb. 28
Mar. 30
Apr. 30
May 31

1*87
521
170
175

s
1*80
222
628
185
587

131
195
ii06
399
251
597
295
223
165

611
666
255
2I4.O
50U

75
73
35

hll
k2l

591
525
3lil
693
598
692

61+

i B

IS

t

771
291
537
530
U5U
693
1*98
H5
567
239

s

337

75
73
35

61;
95

55

Forthcoming Large O f f e r i n g s , as of June 1
Issuer

Type

Amount
(millions
of d o l l a r s )

Approximate date
of o f f e r i n g

CORPORATE
Mountain S t a t e T e l . & Tel. Co.
United Gas Corp.
^Transcontinental Gas Pipe Line Co.
Columbia Gas System, Inc.
C o n t a i n e r Corp. of America
Northern S t a t e s Power Co.
Texas Gas Transmission Co.
Air Reduction Co., I n c .

Deb.
1 s t rabg.&coll.tr.bds,
S„F. deb.&Pfd.stk.
Deb.
S.F. deb.
1 s t ratg. bds.
Deb.
Conv.subcdeb.

1 s t mtg. bds.
Consolidated Edison Co.
Cincinnati Gas & Elec. Co.
1 s t mtg. bds.
P h i l l i p s , N. V. ( f o r e i g n corporation) Com. s t k .
Puget Sound Power & Light Co.
Houston Lighting & Power C 0 .
-"-Columbia Bancorporation
*Pet Milk Co.
Commerce Oil Refining Corp.
Virginia E l e c t r i c & Power Co.
New England E l e c t r i c System




Pfd. s t k . '
1 s t mtg. bds,
Conv.sub.deb,
S.F. deb,
Deb,, bds. & com.
Com. s t k .
Com. s t k .

50 = 0

hO oO

45.0
25.0
25c 0
15-0

1*0.0
3W5

100 = 0

25.0
75-0
15=0
30.0
30.0
20.0
L5.o
liOoO
20.9

June 6
June 7
June 7
June 8
June 12
June 13
June 1U
June 20
( r i g h t s expire)
June 20
June 22
June 22
( r i g h t s expire)
June 27
June
June
* Indefinite
Indefinite
Indefinite
( r i g h t s expire)

He lit

L-2
Forthcoming Large O f f e r i n g s , as of June 1 (Cont'd)
Type

Amount
(millions
of d o l l a r s )

Approximate date
of o f f e r i n g

STATE,AND LOCAL GOVERNMENT
Maricopa Co., Arizona
De Kalb Co., Georgia
Monroe Co., N. Y.
S t a t e of C a l i f o r n i a
Houston Ind. Sch. D i s t . , Tex.
Georgia S t a t e Highway Auth.
Dallas Ind. Sch. D i s t . , Texas
Texas Univ./Texas A&M, Texas
P i t t s b u r g h , Penna.
J e f f e r s o n County, Colorado
Tarrant County, Texas
Dade County, Florida
Jacksonville Expressway Auth., F l a .

G,,0.
G,,0.
G, 0.
G. 0,
G. 0.
Rev. -Rent.
G. 0.
Rev. -Rent.
G, 0.
G, 0.
G, 0.
G. 0.
Rev. - u t .

13.5
i|6,0
iiOoO

June 5
June 12
June 12
June lit
June 26
June 27
June 27
June 28
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

25.0
30.0

June 12
June 20

11,2
1L0

10.8

100,0
12o5
i5=o

10.0
10.0
35,0

19 o 2

OTHERS
^Kingdom of Norway
•aGovt. of A u s t r a l i a

Bonds
Bonds

—Included in t a b l e f o r f i r s t time.
1 / Includes corporate and o t h e r i s s u e s of #15 m i l l i o n and over; State and l o c a l
government i s s u e s of $>10 m i l l i o n and over.
2/ Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal agencies.
Note.—Deletions f o r reasons o t h e r than s a l e of i s s u e ; None,