Full text of H.16 Capital Market Developments : April 26, 1965

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DECONTROLLED AFTER SIX MO
Not for Publication
April 26, 1965.

H.14
CAPITAL^-HSRKET

DEVELOPMENTS

IN 1HL UN1IED STATES
(Including Savings Flows in March)
Corporate and municipal bond markets.
Public security financing
by corporations this week will be somewhat larger than last week's total,
with a $65 million offering of convertible debentures of Great America
Corporations (proceeds to be used primarily to refund outstanding
securities) accounting for one-half of the total. The supply of new
municipal bonds,on the other hand, will be the largest for any week
since early last December and two issues will account for two-fifths
of the volume--a $71 million Commonwealth of Massachusetts offering
and $90 million in bonds of the Puerto Rico Water Resources Authority
($68 million refunding).
Long-Term Public Security Offerings If

Corporate
New Capital | Refunding

State & Local Govt.
New Capital I Refunding

Sold:
52 week avg.
April 16
April 23

89

1

28 r/
100

179

11

235 r/
116

12 r/

270

96

Scheduled:
April 30

74

56

1/ Federal Reserve estimates based on published reports of issues sold
and scheduled for offering; corporate rights offerings are included
as of the date subscription rights expire.
Apparently because of the continued buildup of the corporate
calendar for May and its probable impact on yields, dealers last w e e k
broke the syndicates of two more corporate bond offerings.
The subsequent mark-down in the offering prices on these issues was sufficient
to raise yields 2-5 basis points.
Bidding for last week's sole competitive issue was therefore a shade less aggressive than for comparable
issues offered earlier, and the corporate new issue yield series rose
to within a single basis point of the March high.
Although demand for last week's small supply of new municipal
offerings remained sluggish, yields on seasoned, Aaa-rated bonds were
stable for the seventh consecutive week.
However, by cutting prices
on older issues in their inventories, dealers were able to make some
slight reduction in their advertised inventories.




-2-

Yields in Securities Markets

Level latest w e e k
(per cent)

High-Grade
Notes and Bonds
Corporate
New
Seasoned

4.47
4.43

-+ 1

;
I
!;

U.S. Govt. 'i
Long-term
3-5 year

4.15
4.12

+ 1
+ 1

J
|

State & local govt.
Moody's Aaa
Standard & Poor's high grade

3.09
3.17

--

4.08

- 4

3.93
4.00

---

Money Market
Federal funds
Treasury bills
3-month
6-month

^

Change from
preceding week
(basis points)

|
f

J
%
1

r

Corporate Bonds Still in Syndicate
Date
Offered

Amount
(millions of $) '£

Issue

Reoffering
yield

Rating

Estimated ProT
portion sold!

&

3/18

20.0

Northern 111. Gas
4-1/2's - 98

4.50

A

1/2

%
t

4/1

25.0

Philadelphia Elec.
4-1/2's - 95

4.51

A

7/10

f
|

4/7

35.0

Union Elec.
4-1/2's - 95

4.46

Aa

2/3

4/22

30.0

Florida Power Corp.
4-5/8's - 95

4.48

Aa

1/2

Blue List of Municipal Dealers' Advertised Inventories
(In millions of dollars)
Latest Date
$758 (4/22)




End of Previous W e e k
$775

Recent High
$831 (3/8)

%

;f
|
'"3
5
|
t

Private housing starts and permits.
Seasonally adjusted housing
starts
recovered by 9 per cent in March from the reduced rate in
February. The annual rate of 1,549 thousand (including farm) in March
was above the average for all of 1964 for the first time this year, but
was 7 per cent below the advanced rate a year earlier.
For the first quarter as a whole, the seasonally adjusted annual
rate of starts averaged 1,477 thousand.
This barely exceeded the low
in the third quarter of 1964 and was 6 per cent down from the improved
rate in the fourth quarter of that year.
As in most other recent months, Government-underwritten starts
have continued to account for a larger proportion of total starts than
last year when their share was still declining.
In March, the proportion was 17.2 per cent, compared with 16.1 per cent in March of last
year and 17.4 per cent two years earlier.
Seasonally adjusted residential building permits turned up
a g a i n — b y 5 per cent--in March.
Permits for single family structures
continued to change little, but permits for multifamily structures
increased to the highest rate in the past seven months.
Stock market credit.
Total customer credit in the stock
market rose $65 million during March to $6.9 billion at the month-end.
Customers' net debit balances (except on U.S. Government securities)
accounted for two-thirds of this advance by increasing $44 million,
while the remainder was attributable to a $21 million rise in bank
loans to others than brokers and dealers for purchasing or carrying
similar securities.
Money borrowed by member firms of the New York Stock Exchange
on customers' collateral went up $44 million in March, the first month-tomonth gain since last April. Customers' free credit balances rose $10
million firther. More detailed information on changes in stock market
credit in recent months is shown in the table on the following page.
Stock prices.
Closing at 88.88 on April 23, common stock
prices (as measured by Standard and Poor's composite index of 500
stocks) were at an all-time high and up almost one per cent on balance
from the week earlier level. Trading volume averaged 5.9 million shares
a day, down 0.4 million shares from the average for the previous week.




H. 14

STOCK M A R K E T CREDIT
(In millions of dollars)

Months

Total

Broker & Dealer Credit
Customer Credit
Customers 1
Net debit
Bank loans to others Money
borrowed
net free
balances with
than brokers and
credit
NYSE member
dealers for purchas- Cust. Other
coll.
coll.
balances
ing & carrying aecur.
firms

Outstanding:
1955-56 High

4,047(5/56)

2,823(12/56)

1,255(4/56)

1,,873

430

1,069(1/55)

1957-58 Low

3,554(1/58)

2,482(12/57)

1,060(11/57)

1,,344

188

807(4/57)

1959
1960
1961
1962
1963

4,764(4)
4,142(5)
5,602(12)
4,876(7)
7,298(11)

3,401(4)
3,004(7)
4,259(12)
3,562(7)
5,586(11)

1,373(5)
1,121(5)
1,377(8)
1,269(9)
1,727(12)

2, 044
1, 801
2, 572
1, 856
3, 892

318
1,257(3)
940(4)
237 .
1,508(4)
385
1,091(9)
235
1,211(11)
597

7,242
7,053
6,937

5,515
5,079
5,051

1,727
1,974
1,886

3, 852
3, 393
3, 303

597
517
591

1,210
1,169
1,264

21
173
-37
-48
-69
-64
46
-41
7
-55
-113
-68
65

-18
144
-71
-69
-81
-102
34
-36
-25
-81
-93
21
44

39
29
34
21
12
38
12
-5
32
26
-20
-89
21

-92
270
-48
-102
-94
-54
-50
-40
-59
-76
-76
r/ -58
44

72
3
-1
-15
-52
15
82
-29
-43
35
-71
43
102

32
-66
-27
8
-32
-37
68
10
-24
38
38
47
10

-

High
Low
High
Low
High

1963 - Dec. 1/
1964 - Dec.
1965 - Mar.
Changes in
Outstanding:
1964 - Mar.
Apr.
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec.
1965 - Jan.
Feb.
Mar.

Note:
Exchange by member firms carrying margin accounts. Bank loans to others than brokers and
dealers for purchasing and carrying securities are for weekly reporting member banks.
Net
debit balances and customer free credit balances are as of the end of the month; bank loans
and money borrowed are reported for the last Wednesday of the month. Numbers in parenthesis
denote month of year. All figures exclude credits on, or to carry, U.S. Govt, securities.
1/ November 1963 data on customers' net debit balances do not include accounts carried by
a large former member firm in liquidation; most of these accounts have been transferred to
other member firms and are reported in t h e i r debit figures from the month received (some in
December, more in January 1964). Debit balance totals for the period from October 1963
through January 1964, therefore, are not completely comparable.




-5Savings flows in March. During the month of March, the net
gain in income-yielding claims on depositary-type institutions amounted
to $3.4 billion, 29 per cent more than in the comparable month a year
earlier. Most of this year-over-year-growth in savings flows was
provided by the continued sharp rise in time and savings deposits at
commercial banks. The increase in regular deposits at mutual savings
banks was slightly larger than in March 1964, but the gain in savings
share capital at savings and loan associations was slightly smaller.
During the entire first quarter of this year, the net inflow
of savings to these institutions amounted to a record $9.1 billion,
34 per cent more than in the corresponding period last year. All of
the additional growth this year over last took place in time and savings
deposits a*- commercial banks;
inflows at both mutual savings banks and
savings and loan associations were less than in the first quarter of
last year.
Growth in savings capital at savings and loan associations
during March continued to lag behind the year earlier expansion as
it had in each of the three preceding months, but the year-over-year
shortfall was the smallest since December. Moreover, on a seasonally
adjusted basis, the March inflow was the largest since last November.
Net Increase in Savings Capital at Savings and Loan
Associations
(In millions of dollars)
Unadjusted data
Change from
Current year
previous year
1965 - Jan.
Feb.
r/
Mar.
3-month total

1965 - Jan.
Feb.
Mar.

254
-210
582
-172
1,052
- 50
1,888
-432
Seasonally adjusted data
Current year
Previous year
' 355
681
845

Percentage
change
- 45
- 23
5
- 19

554
843
914

Although the March gain in regular deposits at mutual savings
banks was larger than a year earlier, it was still 2 per cent below
the record March 1963 inflow.
Furthermore, on a seasonally adjusted
basis, the March inflow was the smallest since late 1963.




-6-

Net Change in Regular Deposits at Mutual Savings Banks
(In millions of dollars)
Unadjusted data
Current year
1965 - Jan.
r/
Feb.
Mar.
3-month total

Change from
previous year

358
203
490
1,049

Percentage
change

- 24
- 41
+17
- 48

- 7
- 17
+ 4
4

Seasonally adjusted data
Current year
Previous year
1965 - Jan.
Feb.
Mar.

405
252
243

426
287
247

Time and savings deposits at commercial banks increased $1.8
billion in March, a record for that month and 73 per cent more than
a year earlier. The gain for the first quarter amounted to a record
$6.2 billion, 82 per cent greater than in the corresponding period last
year. Moreover, this recent quarter exceeded by one-eighth the previous
first quarter record set in 1962--each of these periods followed changes
in Regulation Q and commercial banks had raised their interest rates
paid on their time and savings deposits.
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.




7
I X HIB11 A, foil I
LONG-TERM BOND YIELDS, H I G H - G R A D E

"W

Exhibit A —

U. S. Govt,
long-term 21

4 . 6 1 (1/29/60)
4.46(9/M/61)

State and
local
government
Aaa 3/

(per cent)
1959-60
1961-62
1962-63
1964

-

High
High
Low
High
Low
1965 - High
Low

4.19 ( 3/29/63)
4.45 (12/11)
4.35 ( V ® )
4.44(1/8)
4.41(3/12)

4.42 (VO/tO),
4.12 W » / « )
3.85 (12/28/62)
4.20 (4/17)
4.11 (U/20)
4.16(3/12)
4.13(1/29)

Mar. 26
Apr. 2
Apr. 9
Apr. 16
Apr. 23 £/

4.42
4.42
4.42
4.43
4.43 ,

4.14
4.14
4.14
4.14
4.15 v

3.65(9/24/39)
3.37(7/6/61)

Spread 1
U. S. Go>
Corporate
State and
Aaa
local Aaa
S|

Corporate
Aaa U

Part II

11

Da te

''VX—/"V

2.88(13/8/62)
3.16 3/26)
2.99(12/31)
3.09(4/22)
2.94(2/11)

.59
.57
.21
.33
.19
.29
.25

.92
1.04
.80
1.14
1.01
1.22
1.05

3.09
3.09
3.09
3.09
3.09 <

.28
.28
.28
.29
.28

1.05
1.05
1.05
1.05
1.06

' Preliminary.
V Weekly average of daily figures# Average tern of bonds included is 22-24 years.
Zr Weekly average of daily figures. The series includes beads due or callable in 10 years or more.
y Thursday figures. Only general obligation bonds are included1 average tern is 20 years.
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.




EXHieil # Po
LONG-TERM BOND YIELDS, LOWER GRADE

-coif 0*All • a a

X

^
'

•

-

W

v

10 IOC At OOVIINt

\/\19 40

'</

1 1 1 1 1 1 1 II 1 1
19*1
19*3

19*1

1 II 1 1 1 1 1 11 IIII 1 1 1 II
19*4
| 1***1

Spread between ,
Aaa and Baa
1 State and
Corporate | l o c f l l «,vt.

Corporate
Baa 1/

State and
local govt.
Baa 2 /

5.36 (2/12/60)
5.10
4.93
4.85
4.80

4.46 (1/7/60)
4.04
3.57
3.60
3.51

.84
.66
.70
.48
.37

1.08
.73
.63
.49
.52

1965 - High
Low

4.80(4/23)
4.78(3/19)

3.51(4/22)
3.40(2/11)

.38
.36

.52
.41

Mar. 26
Apr. 2
Apr. 9
Apr. 16
Apr. 23 £/

4.79
4.79
4.79
4.80
4.80 z

3.51
3.51
3.51
3.51
3.51

.37
.37
.38
.37
.37

.42
.42
.42
.42
.42

Date

(per cent)
1959-60 - High
Year end - 1961
1962
1963
1964

Not# i For footnote* I M Exhibit JU




1

SHORT-

AND

IN TE RM E D IA TE - T E RM

INTEREST

RATES

GOVERNMENT

Date

1959-60 - High
Year end - 1961
1962
1963
1964
1965 - High
Low
Mar. 26
Apr. 2
Apr. 9
Apr. 16
Apr. 23 £/

Discount
rate
3-month
bills 2/

Yielda
6-month
bills 2/
(per cent)

3-5 year
ieaues 21

Spread between yields on 3moneh bills and vleids on
6-mo. billsl3-5 vr. issues

4.00
3.00
3.00
3.50
4.00
4.00
4.00

4.59 (1/8/60)
2.66
2.89
3.52
3.83
3.99(2/26)
3.80(1/8)

5.07 (3/0/60) 5.00(lg/24/39)
2.90
3.81
2.93
3.41
3.64
4.07
3.93
4.07
4.04(2/26)
4.13(3/12)
3.92(1/8)
4.04(1/22)

.79
.24
.04
.13
.10
.13
.05

1.81
1.15
.52
.55
.24
.29
.11

4.00
4.00
4.00
4.00
4.00 /

3.91
3.92
3.93
3.93
3.93/

3.98
3.99
3.98
4.00
4.00 /

.07
,07
05
07
07

.19
.19
.18
.18
.19

4.10
4.11
4.11
4.11
4.12

V Weekly rate a horn le that in effect at end of period at the federal Reserve
of Mew Yoifc*
y Market yield* weekly averages computed from dally olosing bid prices* Series of 3-0 year Issues
consists of selected notes and bonds.
Note.—Highs and Ions are for individual series and may be on dlffersnt dates for different series.
For spreads, high refers to widest, and lew to narrowest*




\
EXHIBIT D, fail I
SHORT- AND INTERMEDIATE

TERM INTEREST RATES,

B A N K S A N D OTHER P R I V A T e B O R R O W E R *

I'rinte rate

Da te

5.00

1959-60 - High
Year end - 1961
1962
1963
1964
1965 - High
Low
Mar. 26
Apr.
2
Apr.
9
Apr. 16
Apr. 23 2 /

.

4.50
4.50
4. 50
4.50
4.50
4.50
4. 50
4. 50
A. 50

I

4. 5u
4.50

1/

Finance
company
Federal funds 2./
mmer
2/
(per c e n t )
5.13 (1/22/60)
3.00
3.19
3.88
4.06
4.25(4/23)
4.00(2/12)

4 . 0 0 (5/13/60)
2.88
3.00
3.50
4.00
4.12(4/16)
3.88(2/26)

4.25
4.25
4.25
4.25
4.25

4.08
4.05
4.10
4.12
4.08

Spread b e t w e e n
3 - m o . bills and
finance co. o a o e r

1.02
.34
.30
.36
.23
.34
.10
.34
.33
.32
.32
.32

2 / Weekly rate chotvn Is th:> 1 .in t*f l'not at mid of period# Prima r a t e Is that charged by large bank#
on ahort-tom loans to tu.Ury res borrowers of the b l u e s t oredit Standing*
2/ Average of daily rates published by finance companies for directly placed paper for varying
maturities in the 90-179 day range.
3/ Weekly average of daily e f f e c t i v e rate, whioh is the rate for the heaviest V O j U M Ot purchase and
Bale transactions an reported to tlie F e d e m l Reserve Bank of New York#
Note*—-fligjjs and lov/a are for individual serien and may be on different dates for different series*
For spreads, hl^h refold to widest, and low to narrowest.




STOCK

MARKET

Exhibit B

Date

1961-62 - High
Low
Year end
1963
1964
1965 - High
Low
Feb.
Mar.
Apr. 9
Apr. 16
Apr. 23 £/

Stock price
Index 1/

Common
stock
yields 2/
(oer cent)

Part II

Trading
volume 2/
(millions
of shares)

Stock mar ket customer credit
Customers'
Bank
debit balloana to
ances 4/
"others" 5/
(In millions of dollars)

Total

72.04(13/8/61)
52.68(6/22/62)

2.80
3.96

10.1
2.4

74.44
84.75
88.88(4/23)
85.37(1/8)

3.13
3.02
2.92
3.02

4.7
4.7
6.4
4.7

7,242
7.053
6,940
6,872

5,515
5.099
5,051
4,986

1,727
1.974
1,962(1/20)
1,848(3/3)

86.75
86.83
87.56
88.15
88.88

2.99
2.99
2.97
2.95
2.92

5.9
5.4
5.3
6.3
5.9

<>,872
6,937

5,007
5,051

1,860
1,886
1,895
1,913
n.a.

5,602(13/61) 4,259 (12/61) 1,418(5/9/62)
4,424(0/61) 3.253(1/61)
1,161(3/0/61)

n.a.
n.a.
n.a,—Not available, o/ Preliminary.
y Standard and Poor**xoiqpealt« Index of 500 eenmon stocks, weekly dosing prices, 194X-43»10,
Monthly data are averages of daily figures rather than offtiday'sonly* Highs and lows are far
Friday'• data only.
y Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing
prices by Federal Reserve# Yields sham are for dates on which price index reached Its high
or low.
3/ Average• of daily trading volutes on the *ew Yertc Stock Exchange. Year-end figures are averages of
daily figures for the year*
4/ End of month figures far amber firms of the Mew York Stock Exchange which oarry margin accountsf
excludes balances secured by tf, 3. 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,




\1/
EXHIBIT f, Po.l I
PRIVATE

PER

HOUSING

CENT

OF

STARTS

UNADJUSTED

AND

PERMITS

TOTAL

STARTS

C0VI1NMIN1 UWOIIWIIlll*

Exhibit F - Part II
Building
permits
Unadlusted
(seasonally
f
housing
Type
0
Type of financing
adjusted
Seasonally adjustMulti1-2
Unadjusted
annual
Other family family
VA
FHA
ed annual rate
rate) 2/
Starts

Total

Date

(Thousands of units)
1964 - Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1965 - Jan.
Feb.
Mar.

1,531
1,529
1,611
1,505
1,430
1,457
1,591
1,455
1,646
r/ 1,462
r/ 1,420
1,549

149
158
159
143
142
123
141
111
99
r/ 82
r/ 85
120

18
23
19
20
18
18
19
16
13
13
12
16

5
5
6
6
5
5
5
5
4
4
4
4

125
129
134
117
119
100
117
90
82
65
70
99

96.0
106.1
107.2
96.1
94.3
83.1
95.2
73.6
62.9
r/54.5
r/54.8
81.0

52.4
51.5
51.3
46.6
47.3
39.5
45.9
37.8
35.5
r/26.9
r/30.6
38.5

1,280
1,271
1,306
1,242
1,281
1,222
1,220
1,258
1,173
1,312
r/1,231
1,293

dwelling unit "is "started when excavation begins) all unite 1B'an apartment atmotur* are considered
started at that tina. ITU and VA starts are units started under oonmi tenant a by these agencies to Insure
or guarantee the mortgages* As reported by fHA and VA, a unit Is started when a field office reoeires
the first oonmllance Inspection report, whloh is made before footings are poured In some oases but
normally after the foundations have been completed* Capehart military housing units are excluded*
Other starts are derived as a residual, although total and FHA and VA starts are not strictly comparable
in concept or timing* other starts include both units financed by conventional mortgages and unite
without mortgages.
2/ Building permits before January 1963 are Census estimates fer about 10,000 areas identified as
having a local building permit system in 1959. Estimates beginning January 1963, are f o r approximately
12,000, or a l l knewn, permit-issuing p l a c e s . Unlike starts, seasonally adjusted building permits
reflect direct adjustnent for differences in the nunber ef wo iking days per mon-th, as well as other
differences in timing aid coverage*




\b

YIELDS O N NEW AND SEASONED CORPORATE BONDS

*<|||||< is A.i
N f W IIIUII

I I I I I I I I I I I

I I I I I I I I I I I

Exhibit 0 - Part II
Yields on Hew Corporate Bond Issues Adjusted to an Aaa basis
Number Am't of issues Average
of
included (oil.
yield
issues of dollars)
(per cent)
Monthly averages;
1964 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1965 - Jan.
Feb.
Mar.

Feb.

3
4
7
3
3
3
3
7 '

60.0
75.0
239.0
70.0

4.37
4.39
4.49
4.46

140.0
94.0
, 111.0
157.8

4.47
4.42
4.41
4.45

5
12
19
26
Mar. 5
12
19
26
Apr. 2
9
16
23

Number Am't of issues Average
yield
of
included (mil.
(»er cent).
Issues of dollars)
s
1
16.0
4.38 •
1
60.0
4.42

,

1
2
2
2
1
1
2

35.0
60.0
41.0
36.8
20.0
25.0
60.0

4.41
4.48
4.48
4.37*
4.42
4.43
4.44

1

30.0

4.47

Weekly averages
1965 High
4.48(3/12)
Low
4.38(2/5)
Note1i Avorages of offering yield* on all new issues of publioly offered ooxp orate bonds rated Aaa. Aa and
A by Uoody's Investors Service (except serial and convertible im we#, offering# of natural gas pipelias '
_
_Jl foreign companies, and bonds guaranteed by the Federal Government) weighted by die of offering, '
and
Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual
reofferlng yield the excess of the weekly average yield for seasoned tends of the appropriate industryquality group over the composite average for seasoned Aaa-rated bonds (body's). Averages considered
unrepresentative because of special characteristics of the offerings included are denoted by an asterisk^




H. 14

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

New Cap ital
1965
January
February
March

2/801
2/631
e/1,050

April
May
June

e/

Corporate
1964

1/
1963

930
685
754

613
594
1,144

2,178
1,069
1,378

930
904
1,013

July
August
September

780
661
1,109

676
637
795

October
November
December

949
656
1,419

1,013
819
1,415

2,369
4,625
2,550
3,013
6,994
9,544
12,557

1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

950

e/2,48 2

1st half
Three quarters
Year

J
State and Local 2/
1463
1964
1965

e/800
e/8 00
e/850
e/750

E/

"6

2/

8 1 0

732
746
976

903

869
866
930

2/
2/
2/

906
780
892

680
708
449

e/
e/
e/

850
550
950

1 ,051
729
416

2,3D1
2,847
2,109
3,246

e/2,450 £ / 2,5 33
2/ 2,811
2/ 2 » 5 7 8
e/ 2,350

2 ,454
2,,665
1,,837
2,,197

5,198
7,307
10,553

2/ 5,3 4 4
2/ 7,922
e/10,2 72

5,,118
6,,955
9,,151

2/
2/
2/

L

»242
6 6 7

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

quarter
quarter
quarter
quarter

e/ 2,28 2

Year

1,996
4,170
2,411
2,755

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

11,3 32

9,434

e/ Estimated by Federal Reserve.
fi/ Preliminary.
U Securities and Exchange Commission estimates of net proceeds.
2/ Investment Bankers Association of America estimates of principal amounts.
3/ Total new capital issues excluding offerings of sales and consumer finance c o m p a r e s . •




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

1962 - II
III
IV

3,317
2,167
2,875

Gross proceeds for new
capital and refunding 1/
Common Memo:
Bonds
and
Foreign
Publicly Privately pfd.
issues
Offered
Offered
stock included
1,386
1,289
642
251
852
1,006
308
55
1,088
1,510
277
135

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

1964 - I
II
III
1'
IV

2,499
4,851
2,8 02
3,311

978
1,321
792
531

1,221
1,640
1,516
2,372

300
1,890
494
408

i: 1965 - I

2,658

900

1,390

368

1

1963 - July
Aug.
Sept.
Oct.
Nov.
Dec.

810
756
871
1,116
891
1,459

279
336
283
511
183
626

431
318
501
481
549
751

100
100
87
125
159
83

1964 - Jan.
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
L ,372
148
370
225
112
156
213
52
143

Quarter
or
Total
Month
:

I

.

Net proceeds for
new cap Ltal 1/ 2/
Mfg.

Public
Utility

Communications

Other
issuers

996
566
747

984
376
552

228
274
317

848
685
945

128
434
109
47

947
591
806
968

326
794
285
530

236
221
150
118

842
1,241
868
1,629

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

790

400

173

1,119

297
272
237
240
214
515

107
100
78
201
131
198

86
25
39
41
13
64

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

46
21
42
10
10
27
5
16
8
34
36
35
21
21
44
82
27
114

'

187
187
441
531
461
637
515
324
400
463
395
525
401
342
560
321
401
610

858
561
163
134
296
1965 - Jan. £_/
U
396
98
54
42
293
144
152
27
Feb. £ /
159
187
329
675
120
530
250
150
n.a.
500
75
Mar. P /
1,125
550
j>/ 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 & other transportation,
real estate & finance, & commercial & other,
i
Source: Securities & Exchange Commission.
I




j

H. 14
Exhibit J
Other Security Offerings
(In millions of dollars)

1965
January
February
March
April
May
June
July
August
September
October
November
December
Jan. - Mar.

Gross long-term 1/
Foreign government 2/
Federal agencv 3/
1963
1964
1965
1964
1963

2/218

4
82
69
30
75
26
20
13
7
180
72
58

Ft/ —
e/ 1 0

e/228

155
636

Year

232
133
76
57
114
11
63
83

E./-B./129
e/185

148

--

--

186

--

t

275
260
160

459

509

174
200

---

——

2
441

e/314

771

148

—

1,204

1,167

New shoirt-term 4/
State and local government 5/
Federal aeencv 3/
January_
February
March
April
May
June
July
August
September
October
November
December

238
£/235
2/-251

Jan. - Mar.

2/222

103
236
-407
442
81
-80
-9
127
176
7
-15
-208

75
272
-367
589
-30
-10
62
208
-173
259
146
-339

-68

-20

• -137
-174
2/

60

-251

r/-308
-336
23
97
183
239
-333
167
1
525
113
-3
r/-621

r/-332
r/-255
r/-161
r/ 202
195
319
r/ 415
r/ 326
258
123
-102
551
r / - 7 48

r/1,539
r/ 369
453
692
Year
jD/ Preliminary. e/Estimated by Federal Reserve, n.a.-Not available. V l h e s e data differ
from those in Exhibit H in that refunding issues, as well as new capital issues, are included. Long-term securities are defined as those maturing in more than one year. 2/lncludes securities offered in the U.S. by foreign governments and their political subdivisions and international organizations.
Source;
Securities & Exchange Commission. 3/
Issues not guaranteed by the U.S. Government. Source; Long-term, Securities & Exchange
Commission; short-term, Treasury Dept. & 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 or refunding issues or from other funds. Data include only issues with original
maturing 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
have a somewhat longer maturity than 1 year. Source; Bond Buyer & Federal Reserve.




H. 1 4
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)

Total

1964 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1965 - Jan.
Feb.
Mar.

Corporaate
Bonds
(other than
Convertible
convertibles)
bonds

335
1,557
452
650
291
142
376
187

--

296
235
415
390
178
125
269
108
-200
115
131
233

230
130
217
513

State
and
local
governments

Stocks
38
1,271
37
210
113

51
--17
25
--

282
698
274
284
45 >
558
419
226
541
419
446
355 •

31
79
--

30
15
86
280

Other

2/

50
20
15
2:'5
260
104
15
502
15
-235
130
19

Large Individual Issues Offered April 1 through 23
Issuer

Type 2 /

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
net Interest cost

Offer
ing
vield

Rating

4.00
4.46
4.2
4.51
4.80
4.50

Ea
Aa
A
A
Baa
3a

Corporate
*Celanese Corp.
Union Elec. Co.
Arkansas Pwr. & Lt. Co.
Phila. Elec. Pwr. Co.
Texas Oil & Gas. Corp.
*Spiegel, Inc.
Tenneco Corp.
Florida Power Corp.
State & Local Government
State of Ohio
Clark Sch. Dist., Nev.
San Francisco Port Auth.,
Cel.
Cleveland, Ohio
New York City, N.Y.
Baltimore Co. Md.
Los Angeles Univ. Sch.
Dist., Calif.

Conv. sub . deb.
1st mtg. 1bds
1st mtg. bds
S.F. deb.
1st mtg. bds
Sub. deb.
i Deb.
1st mtg. 1bds

78.9
35.0
25.0
25.0
15.0
17.6
50.0
30.0

1990
1995
1995
1995
1985
1990
1990
1995

m

4 . 'r S

Aa

G.O.
G.O.

40.0
17.0

1965-75
1966-85

2.81
3.80

2 .20-2. 30
2 .50-3. 80

Aa
baa

G.O.
G.O.
G.O.
G.O.

10.0
11.0
125.0
11.0

1970-95
1966-85
1966-95
1967-95

3.23
2.96
3.12
3.14

2.,70-3. 60
2,,30-3, 10
2..35-3. 40
2,.45-3. 55

Aa
Aa
A
A

G.O.

25.0

1966-90

3.12

.25-3. 20

As




4
4-1/2
4-5/8
4-1/2
4-7/8
4-1/2

•

%

I

k

K-2
Large Individual Issues Offered April 1 through 23 (Cont'd)

Issuer

Type 3/

Amount
(millions
of
dollars)

Coupon
Offering
rate or
Maturity net inter yield
est cost

t
Rat if

Other
Federal Land Banks
Govt, of Malaysia
Nippon Tel. & Tel. Public Corp.
Republic of Venezuela

Bonds
Bonds
Bonds
Bonds

200.0
25.0
20.0
15.0

1975
1966-70
1978
1980

4-3/8
5-1/2
5-3/4
6-1/4

4.65
5.65

6.08

6.35

*--Rights offering,
n.a. --Not available.
L;.
1/ Includes corporate and other security offerings of $15 million and over; State & locatfj*
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 & local govt, securities, G.O. denotes general obligations;
Rev.-Ut., revenue obligation 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 least payments.
•




ft
H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treasury) If
Expected Proceeds from Forthcoming Large Issues
(In millions of dollars)

During month following
date shown
State and
Corporate
Other 2/
local govt.
1964 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1965 - Jan.
Feb.
Mar.

31
30
28
30
31
31
30
30
30
31
29
26
31

" 1,587
651
600
292
92
402
186
90
105
169
407
267

25
15

669
345
341
539
120
511
500
254
360
306
242
316
212

-—

15

Corporate

--

60

Other 2/

953
575
598
716
588
680
626
549
563
435
382
599
373

1,837
844
668
307
167
442
186

--

25
215

Subsequent to
date shown
State and
local govt.

—

130
105
253
504
792

Forthcoming Large Offerings as of April•23

Issuer

Type

Amount
(millions
of
dollars)

Approximate date of
offering

Corporate
"Hunt Food Industries, Inc.
•Wachovia Bank & Trust Co.
Boston Gas
Co.
*A11i s Chalmers Mfg. Co.
Columbia Gas System, Inc.
*Beneficial Finance Co.
^Northern Ind. P. S. Co.
Chrysler Corp.
Virginia Elec. & Pwr. Co.
Pacific Tel. & Tel. Co.
-American Airlines Inc.
^Family Finance Corp.
General American Trans. Corp.




S.F. deb.
Notes
1st mtg. bds.
S.F. deb. & pfd. stk.
Deb.
Deb.
1st mtg. bds.
Com. stk.
1st & ref. mtg. bds.
Deb.
Conv. sub. deb.
Deb.
Equip, tr. cert.

30.0
25.0
25.0
75.0
40.0
75.0
30.0
269.3
60.0
125.0
53.1
35.0
40.0

Apr.
Apr.
May
May
May
May
May
May
May
May
May
May
May

26
27
4
6
7
11
12
12
19
20
21
11

25
15
--

15
--

25
215
--

60

1(7
L-2

^

Forthcoming Large Offerings as of April 23 (Cont'd)

Issuer

Type

Amount
(millions
of
dollars)

Approximate date of
offering

State and Local Government
*Puerto Rico Water Resources Auth.
Commonwealth of Mass.
Washington Sub. San. Dist., Md.
State of Hawaii
State of West Va.
Houston. Tex.
Penna. State Pub. Sch. Bldg. Auth.
*State of California
•*State of Delaware
^Alabama State Highway Auth.
-Sacramento City Unif. Sch. Dist. Cal.
Penna. State Highway & Bridge Auth.
Pittsburgh, Pa.
Dade County, Fla.
Florida Dev. Comm.
Va. State Highway Auth.
Other
Govt, of Australia

Rev.-Ut.
G.O.
G.O.
G.O.
G.O.
Rev.-Rent.
Rev.-Rent.
G.O.
G.O.
Rev.-S.T.
G.O.
Rev.-Ut.
G.O.
G.O.
Rev.-S. T.
Rev.-Q.-Ut.

Bonds

22.0
75.0
15.0
18.0
20.0
16.0
23.1
100.0
16.9
15.0
12.8
15.0
35.0
46.0
33.8
31.0

25.0

Apr.
27
Apr.
27
Apr.
27
Apr.
28
Apr.
28
Apr.
28
May
5
May
11
May
11
May
11
May
12
May
25
Indefinite
Indefinite
Indefinite
Indefinite

May 5

^--Included in table for first time.
IJ 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 for Federal agencies.
None:--Deletions for reasons other than sale of issue: None.




2/
H. 14
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:

Sale Date

Amount
(millions
of
dollars)

Public Offerings

Issuer and Description of Issue

A.

3/25

10.0

City of Helsinki, Finland--6-l/4% bonds,
maturing 1977, reoffered to yield 6.59%.

4/6

25.0

Govt, of Malaysia--5-l/2% bonds, maturing
1966-70, reoffered to yield 5.65%.

4/7

20.0

Nippon Tel. & Tel. Public Corp.--5-3/4%
bonds, maturing 1978, reoffered to
yield 6.08%.

* 4/20

15.0

Republic of Venezuela--6-1/4% bonds, maturing
1980, reoffered to yield 6.35%.

B.

5/5
*

Sold Feb. 1 through April T *

25.0

Included in table for first time.




Prospective Offerings

Govt, of Australia

M-2
Part II:

Date reported

Note:

Private Placement--Reported February 1 through April

Amount
(millions
of
dollars)

Issuer and Description of Issue

3/8

10.0

British Columbia School Dists. Capital
Financing Authroity--4-5/8% instalment
debentures, maturing 1965--no information
available on takedown.

3/5

15.0

Fraser Companies, Ltd.--5-1/8% first and
collateral trust bonds, maturing 1987--no
information available on takedown,

4/6

65.0

Pacific Petroleum Corp, --5-1/4% notes,
maturing 1985--no information available on
takedown.

4/12

34.0

Labrador & Newfoundland Power Comm. - 5-1/4%
sinking fund bonds, maturing 1997--no
information available on takedown.

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 data a placement is reported. ^--Included in table for first
time.