Full text of H.16 Capital Market Developments : March 2, 1964

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Not for Publication^QyrmnT.T.m AFTER SIX MONTHS
-H.-1-4

March 2, 1964.
it
I

jtinrr^~ ...

t CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES

({Including Review of Capital Market Developments
I
in February)

The volume of public security financing to obtain new
capital was fairly substantial last week, but will be relatively
light this week. Last week, ended February
two large corporate
issues amounting to $135 million and three large State and local
government bond issues totaling $59 million were sold. This week,
ending March 6, no large corporate issues are scheduled for offering,
but three large State and local issues with par value of $76 million
are on the calendar.
Bond yields. Changes in yields on seasoned, long-term
bonds were mixed last week. Yields on Aaa-rated State and local
government bonds rose two basis points to 3.09 per cent, and those
on U. S. Government bonds increased a basis point to 4.15 per cent.
Aaa-rated corporate bond yields, however, edged off a basis point to
4.35 per cent. Yields on lower-grade corporate and municipal bonds
were stable.
Yields on new corporate bonds, adjusted to an Aaa basis,
rose four basis points last week to 4.34 per cent, but were still 16
basis points below the early January high.
Short- and intermediate -term interest rates. Rates on most
short- and intermediate-term obligations rose last week, reflecting
largely reaction to the increase in the British bank rate announced on
Thrusday. Yields on 3-month and 6-month Treasury Bills rose three and
four basis points to 3.56 and 3.72 per cent, respectively, the highest
since the spring of 1960. Rates on 3-5 year Treasury obligations went
up three basis points to 4.05 per cent. The major finance companies
announced an increase from 3 3/4 to 3 7/8 per cent in the advertised
rate of their directly-placed paper with 90-179 day maturity on Friday,
as a result, the average rate on such paper rose three basis points to
3.78 per cent. The average effective Federal funds rate increased to
3.50 per cent. Other rates were unchanged.
FNMA secondary market operations. Sales by the Federal
National Mortgage Association from its secondary market portfolio
dropped in January to $8.8 million. This was only a- fifth of the
volume a year earlier when a sharp expansion was under way.
Value of purchases, at $11.1 million, continued low, but
was somewhat in excess of sales. Offerings of mortgages for purchase
by FNMA totaled $15.6 million, also little changed from December.




-2-

Other sales in the secondary market from FNMA's two other
portfolios (special assistance and management and liquidation) also
remained low, in contrast with developments at this time last year.
Stock prices. Common stock prices, as measured by Standard
and Poor's composite index of 500 stocks, advanced slightly on balance
last week, closing at 77.80 on February 28. Trading volume averaged
5.3 million shares a day, 0.7 million shares more than the previous

Estimated March security volume.
Corporate security
financing to obtain new capital is expected to be fairly light in
March, but State and local government bond sales will probably be
moderately heavy.
New security financing of corporations will probably total
$750 million in March, somewhat more than a month earlier but onethird less than in March 1962, when takedown; of private placements
were unusually large. Financing in this amount would bring the total
for the quarter to $2,200 million, 6 per cent less than during the
comparable period last year.
Bond sales by State and local governments are expected to
amount to $850 million this month, one-eighth more than in February,
but one-eighth less than a year earlier. Large issues with par value
of $454 million are currently scheduled for public offering. The
expected March total would bring municipal financing for the first
quarter to $2,550 million, slightly more than in the same period last
year, but slightly less than in the record 1961 first quarter.
Capital markets in February.
Security financing to obtain
new capital by corporations and State and local governments was in
fairly light volume in February. Retail reception for many new issues
was slow, and dealers inventories of unsold securities rose. Yields
on seasoned municipal bonds changed litt'i?, however, and corporate bond
yields declined.
Corporate security financing to obtain new capital totaled
$0.7 billion last month, somewhat less than in January, but oneseventh more than a year earlier. Large issues sold publicly amounted
to $263 million, consisting of $200 million in nonconvertible bonds,
a $35 million convertible bond issue and $28 million in common stock.
Yields on seasoned Aaa-rated corporate bonds declined two
basis points during the month to 4.35 per cent, three basis points
below the two-year high reached late in January. Yields on new
corporate bonds, adjusted to an Aaa basis, declined until the last
week of February when they rose; late in February they averaged 4.34
per cent, down seven basis points for the month and 16 basis points
-brelow the early January high. To a large extent this decline
reflected the small volume of high-grade corporate bonds publicly




-3sold this year. Lower-grade bonds sold through negotiation during the
month were quickly distributed, as usual, but the two large high-grade
issues acquired by underwriters through competitive bidding met very
sluggish retail reception at the lower level of yields. The
syndicate price agreement on one of the latter issues was terminated
late in the month, however, so dealers 1 unsold syndicate balances,
which had been nonexistent at the start of the month, rose only
moderately.
Bond sales by State and local governments to obtain new
capital totaled $750 million in February, one-fifth less than the
very substantial January total but slightly more than a year early.
In addition, about $50 million in bonds were sold to refund outstanding securities. Although the largest offering of the m o n t h — a
$100 million State of California issue—was quickly distributed to
investors, retail demand was only moderate for most new issues and
dealers advertised inventories of unsold securities rose "sharply.
At month-end they total around $630 million, $120 million more than
a month earlier and the highest level since late October. Yields
on Aaa-rated municipal bonds rose only one basis point, however, to
3.09 per cent at month-end and were still nine basis points below
the late November high.
Common stock prices rose slightly further during February in
fairly active trading. Prices, as measured by Standard and Poor's
composite index of 500 stocks, advanced one per cent on balance to
close at 77.80 on February 28, only nominally below the all-time high of
a few days earlier. Trading volume averaged 4.6 million shares a day,
down 0.7 million shares from the previous month but 0.4 million shares
more than in February 1962.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




LONG-TERM BOND YIELDS, HIGH-GRADE

f\J

UaBxhibit A - Part II

Corporate
Aaa 1/

Date

U . S . Govt.
long-term 2/

State and
local
government
Aaa y

Spread between
U. S. Govt, and
State and
Corporate
local Aaa
Aaa;

(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
1964 - High
Low
Jan.
Feb.
Feb.
Feb.
Feb.

31
7
14
21
28 £/

it, 61(1/29/60)
4.46(9/15)
4.21(3/17)
4.43(2/16)
4,23(13/2$
4,37(12/27)
4.19(3/29)
4.38(1/24)
4.35(2/28)

4.37
4.36
4.36
4.36
. *v 4.35

f

4.42 (1/8/60)
4.07 (12/29)
3.70 (5/12)
4.12(2/23)
3.85(12/28)
4.16 (12/27)
3,87(1/18)
4.16(1/17)
4.14(2/21)
4.15
4.14
4.14
4.14
4.15

3.65 (9/24/59)
3.37 (7/6)
3.12 (2/23)
3.26 (1/4)
2,88 (11/8)
3.18 (11/21)
2.93 (3/28)
3.11(1/9)
3.07(2/20)
3.08
3.08
3.08
3.07
3.09

.59
.57

.34

.47
.30
.35
.21
.23
.20
.22
.22
.22
.22
.20

.92
.76
.46
1.04
.80
1.05
1.04
1.07
1.06
1.06
1.07
1.06

Prelimlnazy.
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#
3/ 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. Tor spreads, high refers to widest, and low to narrowest#




LONG-TERM BOND YIELDS, LOWER-GRADE

Exhibit

Date

Corporate
Baa 1/

Part II

State and
local govt#
Baa 3/

Spread between
Aaa and Baa
State and
Corporate
local govt.

(per cent)
1959-60 - High
^ 1 9 6 1 - High
Low
1962 - High
Low
1963 - High
- Low
196k - High
Low
Jan.
Feb.
Feb.
Feb.
Feb.

31
7
14
21
28 £/

5.35(2/13/60)
5.13(10/27)
5.00(4/21)
5.11(1/5)
u. 92(12/21)
U.93(1/4)
It. 83 (11/15)
4.84(1/17)
4.82(2/7)
4.83
4.82
4.83
4.83
, 4.83

Note* For footnotes see Exhibit A#




U. 16 (3/7/60)
It. 16(3/23)
3.93(11/9)
It. oU (Vii)
3.52(5/17)
3.63(6/27)
3.52(5/23)
3.57(1/10)
3.53(2/7)

• 81;
.81
.66
• 7lt
.63
.71
.lt8
.48
.45

1.08
.93
.57
.82
.56
.63
.Itlt
.49
.45

3.56
3.53
3.54
3.55
3.55

. 46
.46
.47
.47
.48

.48
.45
.46
.48
. 46

E XHIBI1 C, Pa.I I
SHORT- AND INTERMEDIATE-TERM INTEREST RATES, GOVERNMENT

I I I I I I I
Exhibit C - Part II

Date

1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
1964 - High
Low
Jan.
Feb.
Feb.
Feb.
Feb.

31
7
14
21
28 £/

Discount
rate

y

4.00

3.00
3.00
3.00

3-month
bills 2/

6-month I 3-5 year
bills 2/ [ issues 2/
(per cent)

4.59(1/8/60) 5*o7(i/8/6o;) 5.00(12/24/59)

3.50
3.50

2.90(1/29)
2.35(4/28)
3.13(7/20)
2.65(6/8) 2.74(6/8)
3.55 (iVis) 3.68(12/6)
2.93(3/8)
2.88(3/15)
3.56(2/28) 3.72(2/28)
3.50(1/31) 3.61(1/31)

3.86(8/11)
3.15(5/12)
3.88(2/2)
3.41(12/28)
4.07 (12/27)
3.44(1/18)
4.08(1/10)
3.99(2/7)

3.50
3.50
3.50
3.50
3.50

3.50
3.51
3.52
3.53 /
3.56/

4.04
3.99
4.00
4.02
4.05

3.00
3.50

3.00

l
i
W
2.97(7/13)

3.61
3.63 .
3.66
3.68
3.72

Spread between yields on 3month bills and yields on
6-mo. bills|3-5 yr. issues"

.79
.44
.12
.24
.02
. .17
.04
.16
.11

1.81
1.51
.92
1.19
.52
.70
.42
.55
.48

.11
.12
.14
.15
.16

.54
.48
.48
.49
.49

Weekly rate shown ie that in offeot at end of period at the Federal Reserve Bank of New York,
Market yield;-weekly averagea computed from daily olosing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
Not#*—Eighs and lows are for individual series and nay be on different dates for different series*
Tor spreads, high refers to widest, and low to narrowest*
V




SHORT- AND INTERMEDIATE- TERM INTEREST RATES,
BANKS AND OTHER PRIVATE BORROWERS

V

\rvw

f

Exhibit D - Part II

Federal
funds 3/

Date

Stock exchange
call loan l/

19£>9-60High
1961 - High
Low
1962 - High
Low
1963 - High
Low
196U - High
Low

5.50
U.50
U.50
U.50
U.50
U.50
U.50
4.50
4.50

5.00
U.50
U.50
U.50
U.50
U.50
U.50
4.50
4.50

5.13(1/22/60)
3.00(12/30)
2.50(8/5)
3.25(7/21)
2.88(6A)
3.88(12/27)
3.13(5/31)
3.88(1/17)
3.75(2/21)

U.OO (5/13/60)
2.90 (13/37)
.U3 (3/27)
3.00 (12/28)
1.30 (3/26)
3.50 (32/27)
2.U5 (7/26)
3.50(2/28)
3.40(2/21)

Jan.
Feb.
Feb.
Feb.
Feb.

4.50
4.50
4.50
4.50
4.50

4.50
4.50
4.50
4.50
4.50

3.75
3.75
3.75
3.75
3.78

3.50
3.50
3.50
3.40
3.50

Prime
rate 1/

Finance company
paper 2/

Spread between
3-mo. bills and
finance co. paper

[per cent)

/

31
7
14
21
28 2/

r/

1.02
.56
.11
.U5
.19
.39
.12
.34
.22
.25
.24
.23
.22
.22

Weekly rate shown is that la effect at end of period. Stock Exchange call loan rate Is going'rate
on call lpans secured by customers' stock exchange collateral at New York City banks. Prime rat#
is that charged by large banks on short-term loans to business borrower* of the highest credit
standing*
2/ Ave rage of dally rates published by finance companies for directly placed paper for varying maturities
in the 90-179 day range*
3/ Weekly average of daily effective rate, which is the rate for the heaviest volume of purchase and
sale transactions as reported to the Federal Reserve Bank of Hew York." 
Note 1—Highs
and lows are for individual series and may be on different dates for different aeries*
Tor spreads, high refers to widest, and low to narrowest*
V



FOCK MARKET

—

I

/

g e -

i " —

SIOCK MARKET C m i l
^CHANGE IN SERIES
M i l l i . n t ol i h 0

/

V

H

O A H . M
y\Afi

v

V7

\)

1-1-I1 lI I I IJ^J
LxW-J-U-L-L- 1 J t,l 1 I 1.1 1 1-L.LJ. LLI LI Ll-l.l. I 1 , 1.1 1 _1 L-LLi-1
1961
1962
1963
Exhibit E - Part II

8

Stock ma:
Total

r credit
Bank
loans to
"others" 5/

I

Common
Trading
stock
volume 3/
yields 2/ (millions
(per cent) of shares)

Stock price
index 1/

I.

Date

Customers'
debit balances y

(In millions of dollars)
1961-62 - High
1963 - High
196U - High
Low
January
Feburary
Feb. 7
Feb. 14
Feb. 21
Feb. 28 p/

72.0h(i2/8/61)
52.68(^/22/62)
7h.hh(12/27)
77.80(2/28)
75.50(1/3)
76.45
77.37
77.18
77.48
77.62
77.80

'

2.80
3.96
3.01
3.03
3.09

10.1
2.U
6.5
6.1
4.3

5,602(12/61)1*,259(12/61) 1,1*18(5/9/62)
U,U2U(1/61) 3,253(3/61) 1,161(3/8/61)
7,298(11/63)5,586(11/63) 1,738(15/25)
7,250(1)
5,524(1)
1,741(2/12)
n.a.
n.a.
1,720(1/22)

3.05
3.04
3.03
3.03
3.04
3.06

5.3
4.6
4.3
4.4
4.6
5.3

7,250

5,524

1,726
1,741
1,741
1,736

• 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

*

2/ Averages of daily trading volume on the New York Stock Exchange.
4/ End of month figures for member firms of the New York Stock Exchange which carry margin accounts;
excludes balances secured by U. S. Government obligations.
5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
U. S. Government securities. Weekly reporting banks account for about 70 per cent of loans to
others. For further detail see Bulletin.




EXHIBIT F^Porl I
FEDERAL NATIONAL MORTGAGE ASSOCIATION
SECONDARY MARKET - OPERATIONS
Monthly

^Uionj_o2_^ojloM_
_240_

PURCHASES

1959

19 60

H61

196?

Jit 3

Exhibit F - Part II

Date

1963 - Jan.
Feb.
Mar.
Apr.
May

1964

July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.

Estimated offerings to FNMA
Standby
Immediate
To Lai
purchase
commitment
16.8
12.5
23.1
14.1
21.9
21.2
15.8
18.8
20.1
18.5
12.0 •
14.1
15.6

Purchases
by
FNMA

(In millions of dollars)
16.5
.2
14.3
10.1
.1
12.4
21.9
.5
22.6
12.3
.6
13.5
19.9
21.8
.1
20.7
.5
20.7
14.9
.1
15.7
16.9
18.3
.4
.2
15.3
19.8
.1
16.3
18.4
.1
11.8
7.7
10.9
14.0
.1
11.1
.1
15.5

by
FNMA
45.3
107.7
166.4
165.2
169.4
61.3
35.7
8.5
1.6
2.2
.6
15.8
8.8

•—Less than $50,000.
\/ 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 sellers proposing that FNMA execute purchasing contracts. An
imnediate purchase contract covers existing mortgages which the seller must deliver to
FNMA with in 45 days. A standby o ommitment contract relates to proposed mortgages on
housing not yet under construction -which the seller must usually deliver within one
year. Purchases include those under both immediate purchases and standby commitment
contracts. Data exclude FNMA. activity under Special Assistance and Management and
Liquidating Programs.




If
EXHIBIT G. Pari I
YIELDS ON NEW AND SEASONED CORPORATE BONDS

d to A o o Ban
HIW ISSUES

Exhibit G - Part II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number Am r t of issues
of
included (mil.

Average
yield

Number Am't of issues Average
yield
included (mil.
of
(per cent)
issues of dollars)

Weekly averages:
Jan. 17
5.0
4.44
1963 - Oct. -4
• 2
33.5
24
4.32
15.0
4.41
11
31
18
Feb. 7
25
1
40.0
14
4.37
4.33
2
Nov. 1
21
75.0
4.35
28
- 8
1
30.0
4.41
22.0
15
1
4.21*
22
4
. 115.0
4.42
29
2
Dec. 6
60.0
4.41
2
13
95.0
4.45
20
1
150.0
4.54*
27
1964 - Jan. 3
4.50
10
total Averages of offering yields on &LJL new issues of publicly offered corporate bonds rated Aaa. Aa and
A by Moody's Investors Service (except serial and convertible is sues, 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 tta excess of the weekly average yield for seasoned bonds of the appropriate industryquality group over the composite average for seasoned Asa-rated tends (Moody's), Averages considered
unrepresentative became of special characteristics of the offerings Included are denoted by an asterisk^




18:8

i:ii

H.14
Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

New C auital
Corporate 1/
1964
1
1963
e/
e/
e/

January
February
March

750
700
750

April
May
June

613
594
1,144

592
859
807

930
904
1,013

1 ,113
760
1 ,132

676
637
795

582
749
579

1,013
819
1,415

835
703
1 ,103

2,351
2,847
2,109
3,246

2 ,258
3 ,005
1 ,910
2 ,641

5,198
7,307
10,553

5 ,264
7 ,173
9.,814

July
August
September
October
November
December
1st
2nd
3rd
4th

e/2,200

quarter
quarter
quarter
quarter

1st' half
Three quarters
Year

| 1962

1964
e/
e/
e/

950
750
850

State and Local 21
1962
1
1963
1
£/
£/
£/

732
726
974

876
1,133
628

E/
£/

866
861
945

873
912
786

£/
E/
E/

647
706
447

612
544
427

E/1,103
£/ 639
e/ 400

650
578
550

2/2,431
E/2,672
E/I,800
e/2,142

2,637
2,571
1,582
1,779

E/5,103
e/6,903
e/9,045

5,208
6,790
8,568

E/

e/2,550

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

j)/
1/
2/
3/

quarter
quarter
quarter
quarter

e/] ,9:0
i
j

2,284
2,529
1,768
2,854

2.,199
2.,919
l\,775
2,,410

9,434

,303
9j

Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding^offerings of sales and consumer finance companies.




13
H. 14
Exhibit I
New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

Quarter

I
II
III
IV

1,992
57352
2,566
3,236

Gross proceeds for. new
Net proceeds for
new cepltal 1/ 2/
capital and refunding 1/
Common Memo:
Public Communi- Other
foreign
Mfg.
Publicly Privately
pfd.
issues
utility cations isoffered offered
included
832
662
515
381
880
81
76
449
1,052
1,466
1,095
2,303
1,275
1,081
155
1,774
893
104
935
69
772
1,139
654
595
1,263
792
62
147
836
1,424
845
967

1962 - I
II
HI
IV

2,378
3,250
2,184
2,957

1,155
1,389
853
1,089

716
1,222
1,024
1,568

507
639
307
300

68
257
56
179

655
996
601
769

430
983
375
568

456
231
275
321

717
794
659
986

;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
36-7

128
434
109
47

947
591
806
9 68

326
794
285
530

• 236
221
150
118

842
1,241
868
1,629

1,217
801
232
630
922
632
976
784
197 •

654
247
488
' 200
477
176
539
286
264

227
420
575
366
363
295
314
446
808

336
134
169
67
82
161
123
52
125

10
147
100
13

384
270
342
21?
218

88
64
79
88
120
67
260
4
57

264
229

153
271
345

377
196
410
118
110
148
141
175
252

301
159
301
199
282
253
451

891
1,459

350
259
499
380
550
459
279
336
283
511
183
626

243
289
774
452
694
675
431
318
501
481
549
751

102
94
91
217
95
113
100
100
87
125
159 .
83

135
220
592
148
216
227
297
272
237
'240
>14
515

114
115
97
341
222
230
107
100
78
201
131
198

125
68
43
71
92
58
86
• 25
39
41
13
64

238
.191
412
369
373
499
187
24C
441
531
461
637

780

340

350

170

100

1962 - Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
'V 1963 - Jan.
j
I

May

J
•'
1
s
'I
S

July
Aug,
Sept.
Oct.
Nov.
Dec.
' Jan.
Feb.
Mar.

695
642
1,363
1,049
1,340
1,246
810
'756
871

1/116

90

43
46
34
99
25
43

60

56
182
196
46
21
42
10
10
27

166

35C

£'/ Preliminary, e/ Estimated by Federal Reserve. 1/ 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. Sources
Securities
and Exchange Commission.



H. 14

^

Exhibit J
Other Security Offerings
(In millions of dollars)
Gross lcr.£

-

Foreign government 2/
1964
1
1963
1
January
February

e/

--

232
133
76
57
114
11
63
83

April
May
June
July
August
September
October
• November
December

2

Year

.771

n 1/

1962
142
10
35
10
86
50
25
8
31
151
88
101

1964

July
August
September
October
November
December
Year

75
V/2
-367
589
-30
-10
62
208
-173
259 _
146
R/ -346
£/

685

378

1962

148

246 '*
156

186

461

459
150
175
174
200
-

737

18
466
-186
127
-84
-118
78
339
-406
71
234
-161

|

e/

--

1,167

Net shortState and local government 5/
January
February
March
April
May
^

Federal agency 3/
1
1963

£/ -320

1,188

4/
Federal agency 3/
-106
-189
-482
292
195
319
414
327
258
123
-102
551
1,600

247
-156
:26
-364
82
284
261 ;
227
-157
379
55
-80
1,004

—
.
.a.--Not a v a i l a b l e . T 7 T h e s e data differ
from those in Exhibit H in that refunding dr.sues, as well as new capital issues are included.
Long-term securities are defined as those maturing in more than one year. 2/ Includes securities offered in the United States by foreign governments and their political subdivisions
and international organizations. Source: Securities and Exchange Commission. 3/ Issues not
guaranteed by the U. S. Government. Source: long-term, Securities and Exchange Commission;
short-term, Treasury Department and Federal Reserve. 4/ These data differ from those in
Exhibit H and above in that they represent new offerings less retirements, whether from the
proceeds of refunding issues or from other funds. Data include only issues with original
maturity of one year or less. 5/ Principally tax and bond anticipation notes, warrants or
certificates and Public Housing Authority notes. In some instances PHA notes included may
Digitized
FRASER
have a for
somewhat
longer maturity than one year. Source:Bond Buyer and Federal Reserve.



,

If
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than IL S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)

Month

Total

Co rporate
|
Bonds
Convertible
(Other than
bonds
1
convertibles)

1963 - February
March
April
May

g
;<

1
1

186
394
409
149
348
July
199
August
236
September 237
October
446
November 180
December 547
1964 - January
307
February 263

125
372
263
149
348
180
218
215
380
117
515
225
200

State
and
local
government

Stocks

367
570
431
389
372
279
329
135
734
373
111
577
358

26
22
.146

35

--

19
18
22
66
63
32
22
28

—

60
35

Other 2/

63
134
43
460
60
20
174
200
---

1
Large Individual Issues Offered During February

I
J

Issuer

Type

Amount
(millions
of
dollars

Corporate
Control Data Corp.
Dallas Pwr. & Lt. Co.
Northern Natural Gas Co.
Southern Co.
Western Union Telegraph Co
Southern Calif Edison Co.

Conv.. sub. deb.
S. F., deb.
Deb.
Com. stk.
S. F. deb.
1st & ref. mtg. bds.

State and Local Government
State of Delaware
Milwaukee, Wis.
Chesterfield Co., Va.
State of Oregon
Milwaukee Co., Wise.
Penna. Gen. State. Auth.
State of Calif.
St. Louis, Mo.
Texas Wtr. Div. Bd.
Buffalo, N. Y.

G.O.
G.0.
G.O.
G.O.
G.O.
Rev. G.O.
G.O.
G.O.
G.O.




•

Maturity

35.0
15.0
50.0
27.5
75.0
60.0

OfferCoupon
rate or net ing
interest
yield

Rating

1989
1989
1984

3-3/4
4-1/2
4-1/2

3 .63
4 .36
4.44

Ba
Aa
A.

1992
1989

5
4-5/8

4,.97
4..39

Baa
Aa

24.8 1965-84 2.88
15.6 1965-79 2.77
11.0 1965-91 3.09
30.0 1971-79 2.95
12.1 1965-84 2.88
50.0 1967-91 3.24
100.0 1973-2013 3.52
13.9 1965-84 2.97
15.0 1966-95 3.08
14.3 1965-79 2.76

2. 00-3,.00 Aa
2. 00-7..85, Aaa
Sl/A
2. Of
2. 6'
5 Aa
,00 Aaa
2.
2. 30-3.•40- -2. 85-3.. 63—'Aa
2. 00-3.105 Aa
2. 10-3.,20 Aaa
2. 00-2. 90 Aa

H. 14

V\9

K-2
Large Individual Issues Offered During February (cont'd)

Issuer

STATE AND LOCAL GOVERNMENT
(continued)
Fort Worth, Texas
Prince Georges Co., Md.
Port of New York
State of Alabama

Type

::::

Amount
(millions
of
dollars)

K 3 S : 55

Coupon
Ma turity rate or net
interest

sss ts

88$

Offering
yield

£ K S

Rating

:

r

Other
None

\

^--Rights offering. n.a.--Not available.
1/ Includes corporate and other security offerings of $15 million and over; State and
local government security offerings of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal agencies.
3/ In the case of State and local government securities, G.0. denotes general obligations;
Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.Ut.,
revenue bonds secured only by revenue from quasi-utilities; Rev.-S.T., revenue bonds
secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely
by lease payments.
4/ 1/10 per cent bonds due 1990-91 not publicly reoffered.
5/ 0.1 per cent bonds due 2013 reoffered to yield 4.50 per cent.
_6/ 1980-89 maturities not reoffered.
7/ Bonds due 1988-89 reoffered to yield 4.25 per cent.




1
*

(7

H. 14

/,

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other then U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues

During month following
date shown
State and
Other 2/
Corporate
local govt.
L963 - Feb.
Mar.
Apr.
May.
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
^ 1964 - Jan.
Feb.

28
29
30
31
28
31
31
30
31
29
31
31
28

142
376
149
223
170
221
158
240
145
392
305
155
224

458
381
447
255
142
329
210
561
255
137
469
316
454

-

45
40
460
75
20

—

.

—

--

Subs equent to
date shown
Corporate
572
421
234
288
215
267
183
240
145
1,992
1,905
1,771
1,649

State and
local govt.
755
763
599
, 582
28.7
512
468
757
401
349
731
667
646

Forthcoming Large Offerings, as of February 28

31

%

ij
,f
t
t
^
(y
'}
'k
s!

Type

Amount
(millions
of
dollars)

Approximate date
of offering

Corporate

Southwestern P.S. Co.
Anheuser Busch Inc.
Potomac Edison Co.
Texas Utilities Co.
Beneficial Finance Co.
^Florida Pwr & Lt. Co.
^Pennsylvania Railroad Co.
American Tel. & Tel. Corp.
Communications Satellite Co.
State and Local Government
. Louisiana State Bond and
Building Com.
Minneapolis, Minn.
State of Kentucky

1st mtg. bds.
Deb.
1st mtg. bds.
Com. stk.
Deb.
1st mtg. bds.
Bonds
Com. stk.
Com. stk.

15.6
40.0
16.0
17.0 .
50.0
35.0
50.0
1,225.0
200.0

March
March
March
March
March
March
March
April
April

9
10
11
24

6

Rev.-S.T.

15.0

March 3

G.O.
G.O.

10.7
50.0

March 5
March 3




(rts. ex.)

Other 2,/

45
40
460
75
20

----

-

H. 14

A

L-2
Forthcoming Large Offerings, as of February 28 (Cont'd)

Issuer

Type

Amount
(millions
of
dollars

Approximate date
of offering

'

State and Local Government
(cont'd)
*State of Connecticut
Jacksonville Expressway
Auth., FLa.
City of Tacoma, Wash.
Sabine River Auth., New
Orleans, 'La.
Sabine River Auth. of Texas,
Orange, Tex.
Rochester, New York
El Paso Ind. Sch. Dist.,
Tex.
Los Angeles Dept. of Wtr.
& Pwr., Cal.
Delaware River & Bay Auth.
Illinois' Bldg. , Auth.
Florida Dev. Comm.
^Metropolitan Seattle, Wash.
Detroit, Mich.
JJn'iv. of California
^Washington Sub. San. Dist., Md,
Pittsburgh, Pa.
Dade County, Florida
Fort Worth, Texas
Houston, Texas

G.O.
Rev.-Q.Ut.

50.0
73.2

March 10
March 12

*
f

Rev.-Ut.
G.O.

50.0
15.0

March 17
March 24

'
,«

G.O.

15.0

March 24

G.O.
G.O.

12.6
10.0

March 24
March 24

22.0

March 25

Rev.-Ut.
Rev.-Q.Ut.
Rev.-Ut.
Rev.-Q.Ut.
Rev.-Ut.
G.O.
Rev. -Rent.'
G.O.
G.O.
G.O.
G.O.
G.O.

105.0
25.0
17.0
15.0
18.3
19.6
16.0
35.0
46.0
14.1
11.1

March
March
. April 1
April 2
April 7
April 15
April 30
Indefinite
Indefinite
Indefinite
Indefinite

Other
None

-Included in Table for first time.
Includes corporate and other issues of $15 million and over; State and local
government issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal agencies.
Note.--Deletions for reasons other than sale of issue: None.
If




,

H. 14

Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in.the United States

Pairt I:

Sale
Date

Amount
(millions of
dollars)

Issuer and Description of Issue

A.
12/24

I%

W

-

Public Offerings

Sold December 1 through February 2£

3.0

Province of Sante Fe, Republic of Argentina - 7%
Treasury bonds, maturing 1969, offered to yield 9.45%

8.0

Tubos de Acero de Mexico, S.A. - 7% convertible debenture,
maturing 1970, offered to yield 7.00%

B.

Prospective Offerings

None




4>
H. 14
M-2

Part II:

Date
reported
1/7

Private Placement--Reported December 1 through February 28

Amount
(millions of
dollars)
14.0

Issuer and Description of Issue
Laurentide Financial Corp., Ltd.--5-1/4% collateral turst
notes, maturing 1989--no information available on takedown

2/3

28.0

Manitoba Hydro-Electric Board--4-l/4% debentures, maturing
1986--no information available on takedown

2/3

5,0

Scottish United Investors, Ltd.--5% notes, maturing 1969-79-no information available on takedown

2/10

8.0

British American Construction Co.--promissory notes, maturing
1979--no information available cn takedown

2/10

4.0

British Assets Trust Ltd. (Scotland)--5% notes, maturing
1981--takedown in February

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 this Exhibit and that shown in Exhibits I and J because
the latter includes privately placed securities in the period in which funds are
actually takendown but only in the amount of takedown, while, the placements shown
in this exhibit are included when reported, frequently with little or no information
concerning timing of takedowns. Full or partial takedowns may take place both
prior and subsequent to the date a placement is reported,
"--Included in table for first time,




cf
^
4