Full text of H.16 Capital Market Developments : August 2, 1965
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Not f o r P u b l i c a t i o n DECONTROLLED AFTER SIX MONTHS A u g u s t 2 , 1965 H.,14 CAPITAL MARKET DEVELOPMENTS IN THE UNITED STATES ( I n c l u d i n g Review o f C a p i t a l M a r k e t s i n J u l y ) C o r p o r a t e and m u n i c i p a l bond, m a r k e t s . The s u p p l y o f new p u b l i c o f f e r i n g s of b o t h c o r p o r a t e and m u n i c i p a l s e c u r i t i e s w e e k w i l l b e m a r k e d l y s m a l l e r t h a n l a s t w e e k . The l a r g e s t c o r p o r a t e i s s u e on t h e c a l e n d a r i s a $40 m i l l i o n o f f e r i n g o f S o u t h e r n C o u n t i e s Gas Company, w h i l e t h e b i g g e s t m u n i c i p a l i s s u e s c h e d u l e d i s $25 m i l l i o n i n b o n d s o f t h e Alabama P u b l i c S c h o o l s add C o l l e g e A u t h o r i t y . L o n g - t e r m P u b l i c S e c u r i t y O f f e r i n g s 1/ Corporate New C a p i t a l 1 Refunding S t a t e and l o c a l Government New C a p i t a l 1 Refunding Sold: ~ 52rfceekeavg. J u l y 23 J u l y 30 104 123 r / 225 2 188 14 319 136 r / —• Scheduled: Aug. 1/ 7 r/ - 6 90 95 — F e d e r a l R e s e r v e e s t i m a t e s b a s e d on p u b l i s h e d r e p o r t s o f i s s u e s s o l d and scheduled f o r o f f e r i n g ; c o r p o r a t e r i g h t s o f f e r i n g a r e i n c l u d e d a s of t h e date subscrpitlon rights expire. C a p i t a l Markets in J u l y . New c a p i t a l s e c u r i t y f i n a n c i n g by. c o r p o r a t i o n s i n J u l y had e s t i m a t e d n e t p r o c e e d s Af $ 1 , 1 0 0 m i l l i o n , t h e l a r g e s t t o t a l - f o r a n y J u l y s i n c e 1952 and t w o - f i f t h s more t h a n a y e a r e a r l i e r . The volume o f b o n d s p u b l i c l y o f f e r e d - $540 m i l l i o n - was t h e l a r g e s t f o r a n * J u l y s i n c e 1958. x x e l d s on new c o r p o r a t e b o n d s (Aaa b a s i s ) a v e r a g e d 4 . 5 8 p e r p e n t a t t h e end of J u l y , t h e same a s i n l a t e J u n e and 2 b a s i s p o i n t s u n d e r t h e 1965 h i g h of e a r l y J u n e . I s s u e s o f f e r e d a t t h i s l e v e l ( a d j u s t e d t o a Aaa b a s i s ) w e r e f a v o r a b l y r e c e i v e d . B u t a few new o f f e r i n g n r i r e d t o H e M somewhat l e s s moved s l o w l y , and i n c a s e s w h e r e s y n d i c a t e tmetfietienat were terminatedyyMlds we r# ( p r o m p t l y a d j u s t e d to the going r a t e . I n t h e m u n i c i p a l m a r k e t bond o f f e r i n g s f o r new c a p i t a l d u r i n g J u l y h a d t o t a l p a r v a l u e o f $950 m i l l i o n , somewhat more t h a n i n J u l y 1964 and a r e c o r d f o r t h e m o n t h . Demand f o r m o s t i s s u e s was a l s o s t r o n g , bnd y i e l d s on s e a s o n e d b o n d s f e l l s l i g h t l y f r o m t h e i r 1965 h i g h s . T h i s improved demand which eiyetf t h e c o n g e s t i o n t h a t had e x i s t e d i n t h i s m a r k e t d u r i n g much o f ^ j t h e s p r i n g — w a s l a r g e l y the~~rfc»ult of two f a c t o r s . L a t e i n J u n e d e a l e r s made a p p r e c i a b l e a d r o s s - t h e - b o a r d p r i c e c u t s i n H. 14 -2 - Y i e l d s i n S e c u r i t i e s Markets Change from p r e c e d i n g week (basis points) L e v e l l a t e s t week (per cent) High-Grade N o t e s and Bonds Corporate New Seasoned 4.58 4.48 +2 U.S. Govt. Long-term 3-5 year 4.15 4.12 +1 +1 S t a t e and l o c a l G o v t . Moody's Aaa Standard & P o o r ' s h i g h grade 3.16 3.24 Money Market Federal funds Treasury b i l l s 3-month 6-month 4.08 +8 3.81 3.88 -1 -1 C o r p o r a t e Bonds S t i l l Date Offered Amount ( m i l l i o n s o f $) 7/21 15.0 7/22 75.0 7/27 25.0 in Syndicate Issuer A t l a n t a Gas L i g h t Co. 4 - 3 / 4 ' s - 1990 P a c i f i c Gas & E l e c . Co. 4 - 5 / 8 ' s - 1995 N o r t h e r n 1 1 1 . Gas Co. 4 - 5 / 8 ' s - 1990 Reoffering Yield Rating E s t i m a t e d Pro portion sold ' 4.65 A 1/3 4.58 Aa 1/4 4.60 Aa 9/10 Blue L i s t of Municipal D e a l e r s ' Advertised I n v e n t o r i e s ( i n m i l l i o n s of d o l l a r s ) L a t e s t Date $756 ( 7 / 2 9 ) End o f P r e v i o u s Week $732 R e c e n t High $901 ( 6 / 4 ) t h e i r l a r g e a d v e r t i s e d i n v e n t o r i e s o f u n s o l d s e c u r i t i e s and by t h e end o f J u l y , a b o u t $ 1 5 0 m i l l i o n had b e e n c u t from t h e a l l - t i m e h i g h o f $900 m i l l i o n r e a c h e d i n e a r l y June. S e c o n d , u n d e r w r i t e r s p r i c e d new i s s u e s d u r i n g J u l y i n l i n e w i t h t h e higher yield level. Common s t o c k p r i c e s r o s e s l i g h t l y on b a l a n c e d u r i n g J u l y i n m o d e r a t e P r i c e s , a c c o r d i n g t o S t a n d a r d and P o o r ' s i n d e x o f 5 0 0 s t o c k s , t r a d i n g volume. c l o s e d a t 8 5 . 2 5 on J u l y 3 0 , a b o u t one p e r c e n t g r e a t e r t h a n a t t h e end o f June b u t 5 - 1 / 2 p e r c e n t b e l o w t h e i r May 13 r e c o r d c l o s e . T r a d i n g volume a v e r a g e d 4 . 1 m i l l i o n shares a day. H. 14 FNMA s e c o n d a r y market o p e r a t i o n s . S a l e s by t h e F e d e r a l N a t i o n a l M o r t g a g e A s s o c i a t i o n from i t s r e g u l a r s e c o n d a r y market p o r t f o l i o r o s e t o $ 1 2 . 2 m i l l i o n in June. W h i l e s t i l l q u i t e low by e a r l i e r s t a n d a r d s - - p a r t i c u l a r l y t h o s e e s t a b l i s h e d i n t h e s p r i n g o f 1 9 6 3 - - t h e l e v e l o f s a l e s i n J u n e was t h e s e c o n d h i g h e s t i n t h e f i r s t h a l f of t h i s y e a r . P u r c h a s e s by FNMA f o r i t s s e c o n d a r y market p o r t f o l i o a l s o r o s e t o $ 3 9 . 5 m i l l i o n , a new h i g h f o r t h e y e a r and s u b s t a n t i a l l y a b o v e a y e a r e a r l i e r when p u r c h a s e s w e r e e t r e m e l y l o w . Offerings also advanced--to 47.9 m i l l i o n comparedotiith 9 . 3 m i l l i o n i n J u l y of 1964. A f a c t o r i n the uptrend i n purchasing a c t i v i t y t h i s year has been i n c r e a s e d e m p h a s i s by FNMA on programs f o r f i n a n c i n g homes f o r f a m i l i e s o f low and m o d e r a t e i n c o m e s a s w e l l a s h o u s i n g n e e d s i n r u r a l and s m a l l - t o w n a r e a s . W h i l e s a l e s from FNMA's r e g u l a r s e c o n d a r y market p o r t f o l i o h a v e c o n t i n u e d b e l o w t h e l e v e l o f p u r c h a s e s , s a l e s from FNMA's o t h e r two p o r t f o l i o s s p e c i a l a s s i s t a n c e and management and l i q u i d a t i o n - - h a v e i n c r e a s e d t h i s y e a r , b o t h a b s o l u t e l y and i n r e l a t i o n t o a c q u i s i t i o n s . E s t i m a t e d s e c u r i t y volume f o r A u g u s t . Corporations are expected to s e l l $850 m i l l i o n i n s e c u r i t i e s t o b b t a i n new c a p i t a l i n A u g u s t , a b o u t t h r e e t e n t h s more t h a n t h e a v e r a g e f o r A u g u s t i n t h e two p r e v i o u s y e a r s . Public bond o f f e r i n g s a r e e x p e c t e d t o t o t a l a b o u t $ 3 0 0 m i l l i o n d u r i n g t h e month. Bond s a l e s by S t a t e and l o c a l g o v e r n m e n t s a r e e s t i m a t e d a t $700 m i l l i o n f o r t h e month, l i t t l e d i f f e r e n t t h a n i n A u g u s t o f t h e two p r e v i o u s y e a r s . More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g r e c e n t c a p i t a l market d e v e l o p m e n t s i s presented in the attached e x h i b i t s . C a p i t a l Markets S e c t i o n , D i v i s i o n o f R e s e a r c h and S t a t i s t i c s , Board o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s t e m . r L O N O - T l t M BOND Y l i L D l , H I O H - O R A D I E x h i b i t A - - Part I I Date Corporate Aaa 1/ U. S. Govt. long-term 2/ 4.61(1/29/60) 4.46(9/15/61) 4 . 1 9 (3/29/63) 4.45(12/11) 4.35(5/28) 4.48 (7/30) 4.41 (3/12) 4.42 4.12 3 . 85 4.20 4.11 4.16 4.13 4.46 4.47 4.48 4.48 4.48 / 4.14 4.14 4.15 4.14 4.15 S t a t e and local government Aaa 3 / Spread between U. S. Goit t . and S t a t e and Corporate Aaa l o c a l Aaa (per cent) 1959-60 1961-62 1962-63 1964 - High High Low High Low 1965 - High July 2 July 9 J u l y 16 J u l y 23 J u l y 30b/ (1/8/60) (2/23/62) (12/28/62) (4/17) (11/20) (3/12) (6/25) 3.65(9/24/5?) 3.37(7/6/61) 2.88(13/8/62) 3.16(3/26) 2.99(12/31) 3.17 ( 7 / 8 ) 2.94 (2/11) .59 .57 .21 .33 .19 .34 .25 .92 1.04 .80 1.14 1.01 1.22 .96 3.17 3.17 3.16 3.16 3.16 .32 .33 .33 .34 .33 .97 .97 .99 .98 .99 - p / Preliminary. j J vfeekly average of d a i l y f i g u r e s , . . Average term of bonds included i s 22-24 y e a r s . zf 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 o r c a l l a b l e in 10 yeftrs or more. 3/ Thursday f i g u r e s . Only general obligation bonds are included) average t e r n i s 20 y e a r s . Note.—fiighs 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 s e r i e s , f o r spreads, high r e f e r s to w i d e s t , and low t o narrowest* X r \ \AJ — v ' v , _ r - ^ — >>M.I 1 1 1 1 1 1i i1i i i i i i i i i 1 11.1.1.1.11111 1 1 1 1 1 1 1 1II1 II1 1 1 1 I.LLJ. 1*40 1**1 1*41 1*43 1*44 !»*• Exhibit B — Part I I Corporate Baa ] J Date 1959-60 - High Year end - 1961 1962 1963 1964 High 1965 July 2 July 9 J u l y 16 July 23 July 30b/ S t a t e and local govt. Baa 2 / (per cent) Spread between Aaa and Baa Corporate | 5.36 (Z/12/6Q) 5.10 4.93 4.85 4.80 4.88 (7/30) 4.78 (3/19) 4.46 (3/7/60) 4.04 3.57 3.60 3.51 3.57 ( 7 / 8 ) 3 . 4 0 (2/11) .84 .66 .70 .48 .37 .40 .35 1.08 .73 .63 .49 .52 .52 .38 4.87 4.87 4.87 4.88 4.88 3.57 3.57 3.55 3.55 3.55 .40 .40 .39 .40 .40 .40 .40 .39 .39 .39 Net#i For footnotes see Exhibit a . 7 IXWMIf X, * SHORT- AND INTRRMIDIATI-TIIM INTIKItT SATIS GOVERNMENT We.hlv \A • MONTH e i l l i Mwk* t l e l * i V a v OUNI • A l l . Y.,k \ m Mf ' _ If 1 3-MONTH e i l t l MeAel «I.Ui i i i i i i i i 1 1 1 1 1 1 1 1 II1 11 11 1 1 1 II 11 11 1 1 I 1 I 1 I1LJ1L 1.1 1 1.1 .LI JU1LII 1 II 1 lz<-K If*0 I»41 l**a l»*4 '••• ExhibitC — Part I I Discount 3-month rate t>m« v M 1959-60 - High Year end - 1961 1962 1963 1964 1965 High Low July July July July < July 2 9 16 23 3Ob/ 4.59 2.66 2.89 3.52 4.00 3.00 3.00 3.50 3-5 year " W 2/ 6-mo. b l i i s l ) - 5 vr. Issues (Weo) 5.07 (3/4/60) 5.00(12/24%*) V . l i (2/26) 3.78 (6/25) 4.00 4.00 4.00 4.00 4.00 Spread between y i e l d s on 3 6-month b i l l # 2/ (per c e n t ) 3.81 3.86 3.86 3.82 3.81 / 2.90 2.93 3.64 3.81 3.41 4.07 1* 04(2/26) 3.82(6/25) 4*.13 (3/12) 4 . 0 4 (1/22) 3.85 r/3.90 3.92 3.89 3.88 x . 4.08 4.09 4.10 4.11 4.12 .79 .24 .04 .13 •A°3 1.81 1.15 .52 .55 .03 ;234I .ii , .04 Z/.04 .06 .07 .07 .27 .23 .24 .29 .31 V(^^Bltfh»°snA*loin are°for l S l i S u I l series sad eey be am different dates for different series, for spreads, high refers to wldsit, sal law te i t m n r t . IXHIBIT 0, Mn 1 SHORT- AND INTIRMIDIATI- T I I M INTIRIIT RAT:# E x h i b i t D - - Part I I Date 1959-60 - High Year end - 1961 1962 1963 1964 Prime r a t e 1/ Finance company F e d e r a l funda oaoer 2/ (per cent) 1965 - High Low 5.00 4.50 4.50 4.50 4.50 4.50 4.50 5 . 1 3 (1/22/60) 3.00 3.19 3.88 4.06 4.25(7/30) 4.00(2/12) 4 . 0 0 (3/13/60) 2.88 3.00 3.50 4.00 4.12(7/9) 3.68(6/25) July 2 July 9 J u l y 16 J u l y 23 July 30b/ 4.50 4.50 4.50 4.50 4.50 4.25 4.25 4.25 4.25 4.25 4.12 4.12 4.08 4.00 4.08 . Spread between 3-mo. b l l l a and finance co. oaoer . 1.02 .34 .30 .36 .23 .47 .10 .44 .39 •3.9 .43 .44 2/ Weekly r»te Shown ie t h a t i n e f f e c t a t end of period. Prime r a t e I s t h a t charged by large on s h o r t - t e r n loans t o business borrowers of the highest o r e d i t standing* y Average of d a l l y r a t e s published by finance companies f o r d i r e c t l y placed paper for varying m a t u r i t i e s i n the 90-0.79 day range. 3 / Weekly average of d a i l y e f f e c t i v e r a t e , which i s the r a t e f o r the heaviest voltes of purchase and sale transactions as reported t o the Federal Reserve Bank of New York* Motel—Highs and lows are f o r individual 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 s e r i e s . Tor spreads, high r e f e r s to widest, and low t o narrowest. CM ANSI IN l l t l l l Mlllleei •! it*;#* I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I Exhibit K — Part II™ Stock p r i c e index 1 / 1961-62 - High Low Year end 1963 1964 1965 - High Low Hay June July 16 July 23 July 30& 3/ Common • tock y i e l d s 2/ (pey 9 f n Q Trading volume j / (millions of shares) Stock market customer c r e d i t Bank Customers' loans to debit baiTotal "others" 5/ l e e s 4/ (In millions of d o l l s r s ) 2.80 3.96 10.1 52.68(6/22/62) 2.4 5,603[y/6l) 4,259(32/61) 4,424(3/61) 3,253(1/61) 74.44 3.13 4.7 7,242 5,515 84.75 3.02 4.7 7JJ53 5.099 72.04(^/8/61) 1.418(8/9/62) 1,161(3/8/61) 1,727 1.974 90.10 (5/14) 2.89 6.8 7,085 5,129 1,974 (6/9) 83.06 (6/25) 3.15 3.8 6,872 4,986 1,848 (3/3) 89.28 2.92 5.5 7,085 5,129 1,956 85.04 3.07 5.8 7,084 5,114 1,954 85.69 3.06 3.8 lie 8 • 1,962 84.07 3.11 3.8 ttefle 1,967 85.25 3.07 A-5,, tie A e of drily tredia* toIom w the lew Ye* Stock I n h u | * . I k M i d figwes ere a v e r s e of V ^ 1 ? f , i S h e f l S * i i e t 5 6 * b e r time of the lew Ye* Stock tohmle * i d i oerrjr marfis soommts; others. For further detail — t s . g r IXHISII I, rm,i | S E C O N D A R Y MARKET O P E R A T I O N S 1IM E x h i b i t F - Part I I Date Estimated o f f e r i n g s 1to FNMA Immediate S tandby Total purchase commitment Purchases by FNMA Sales by FNMA ( I n m i l l i o n s of d o l l a r s ) 1965 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June 9.3 8.4 2(1.5 15.1 34.9 26.0 41.3 36.6 30.6 36.9 40.4 35.8 47.9 9.2 8.0 20.5 14.9 34.8 25.9 41.1 36.6 30.6 36.9 40.4 35.7 47.9 -- .3 .1 .1 .1 .1 .1 .1 3.8 5.5 15.2 .7.2 24.0 16.0 32.5 29.8 28.5 36.5 38,7 31.4 39.5 9.5 12.6 4.4 1.6 5.7 5.9 2.0 12.5 5.1 7.9 3.0 12.2 •—Less then $50,000. 2 / Data represent unpaid p r l n e i p a l balances of the mortgagee involved, exclusive of premiums, diecounts, or other charges. Offerings are amounts of applications received during t h e period from s e l l e r s proposing t h a t TMk execute purchasing c o n t r a c t s , i n immediate purchase contract covers e x i s t i n g mortgages which t h e s e l l e r w e t d e l i v e r t e now. within 45 days. A standby 0 ommltment contract r e l a t e s t o proposed mortgages on housing not y e t under construction which the s e l l e r eeist usually d e l i v e r within one y e a r . Purchases include those under both immediate purchases and standby commitment c o n t r a c t s . Data exclude iNMl a c t i v i t y under Special Assistance and Management and Liquidatiag Pm g r a s s . IXKtrtf O. Fe.l I YIILDS ON N1W AND S1ASON1D CORFOKATI BONDS I I I I I I II I II I Exhibit 0 - Part XX Yields en lew Corporate Bond Issues Adjusted to an Aa» basis Montafy averages: 1965 - Jan. " Feb. Mar. Apr. Hay June As't of Issues Average Included (ell. yield of Issues of dollars) (per cent) 3 3 7 4 8 4 94.0 UUO 157.8 115.0 315.0 100.0 4.42 4.41 4.45 4.46 4.51 4.58 June 4 11 18 25 July 2 9 16 Number Am't of Issues Average Included (mil. yield of ISSJIfiS of dollars) (per jvftl 4.60 65.0 4i58 121.0 4.67* l til S:8 30 Weekly average 1965 - High Low 35.0 4.60(6/11) 4.33(1/29) E 5 v ~ S L , Exhibit H H. 14 L o n g - t e r m C o r p o r a t e and 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 and P l a c e m e n t s ( I n m i l l i o n s of d o l l a r s ) 1965 January February March Corporate 1964 New Can i t a l 1963 S t a t e and L o c a l 2 / 1965 1963 1^64 i 795 746 1,197 930 685 754 613 594 1,144 E/804 &/871. 2/947 April Kay June £ / 1,230 £ / 1,680 e / 1,700 2,178 1,069 1,378 930 904 1,013 2/824 e/900 e/850 1,242 667: 903 869 866 930 July August September e / 1,100 e/ 850 780 661 1,109 676 637 795 e/950 e/700- 906 780 892 680 708 449 949 646 1,419 1,013 819 1,415 801 529 948 1,051 729 416 2,738 . / 4,630 2,369 4,625 2,550 3,013 2,351 2,847 2,109 3,246 e / ' 7,368 6,994 9,544 12,557 5,198 7,307 10,553 October November December 1st 2nd 3rd 4th quarter quarter quarter quarter 1st half Three q u a r t e t s Year fi/ e/ 3.622 2,574 e/5,196 947 776 810 2,533 2,811' 2,578 2,278 5,345 7,923 10,201 732 746 976 2,454 2,665 1,837 2,197 5,118 6,955 9,151 Excluding f i n a n c e companies £ / 1st 2nd 3rd 4th quarter quarter quarter quarter 2,547 e/ 4 , 2 3 0 Year e/ £/ 1/ 2/ 3/ 1,996 4,170 2,411 • 2,755 11,332 2,284 2,529 1,768 2,854 9,434 E s t i m a t e d by F e d e r a l Reserve. Preliminary. S e c u r i t i e s and E x c h a n g e Commission e s t i m a t e s o f n e t p r o c e e d s . I n v e s t m e n t B a d k e r s A s s o c i a t i o n of America e s t i m a t e s o f p r i n c i p a l a m o u n t s . T o t a l new c a p i t a l i s s u e s e x c l u d i n g o f f e r i n g s o f s a l e s and c o n s u m e r f i n s A t e c o m p a n i e s . 4 i ^ H. 14 Exhibit I New C o r p o r a t e S e c u r i t y I s s u e s , Type of I s s u e and I s s u e r ( I n m i l l i o n s of d o l l a r s ) 1 i Quarter or Month i 1962 - I I I IV Gross p r o c e e d s f o r new c a p i t a l and r e f u n d i n g 1/ Common Bonds and pfd. Total Publicly Privately Offered Offered stock 2,167 852 1,006 308 2,875 1,088 1,510 277 Memo: Foreign issues included 55 135 Net pri Dceeds f o r new caj> i t a l 1/ 2/ Mfg. Public Utility Communi- O t h e r cations issuers 566 747 376 552 274 317 685 945 . 1963 - I II III IV 2,700 3,634 2,436 3,466 1,108 1,389 898 1,319 1,306 1,820 1,251 1,780 287 424 287 367 128 434 109 47 947 591 806 968 326 794 285 530 236 221 150 118 842 1,241 868 1,629 . 1964 - I 11 Ill IV 2,499 4,851 2,802 3,311 978 1,321 792 531 1,221 1,640 1,516 2,372 300 1,890 494 408 29 105 85 223 418 723 547 1,045 438 856 642 509 273 1,663 59 128 1,240 1,383 1,303 1,332 1965 - I I I e/ 3,007 4,884 905 1,836 1,673 2,197 429 851 24S n.a. 1,072 1,660 541 558 91 254 1,034 2/57 : 1963 - O c t . 1 Nov. Dec. 1,116 891 1,459 511 183 626 481 549 751 125 159 83 10 10 27 240 214 515 201 131 198 41 13 64 531 461 637 1964 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 985 710 805 2,234 1,155 1,461 869 728 1,204 1,032 702 1,577 338 279 361 383 470 468 234 183 376 181 30 320 526 342 353 480 537 623 411 433 672 638 620 1,114 121 88 91 1,372 148 370 225 112 156 213 52 143 5 16 8 34 36 35 21 21 44 82 27 114 149 123 146 186 206 332 149 164 234 249 188 607 109 155 174 151 441 264 207 138 296 297 40 172 157 83 34 1,377 27 258 23 16 19 81 17 30 515 324 400 463 395 525 401 342 560 321 401 610 ! 1965 - J a n . 858 161 565 131 49 385 97 21 292 Feb. 791 187 450 155 51 192 215 44 293 Mar. 1,158 557 658 143 143 494 229 26 448 Apr. 774 422 1, 360 163 35 5 70 164 12 504 142 244 603 May %/ L, 764 690 49 623 448 694 720 800 240 n.a. 400 June 11,760 150 100 1,050 2,/ P r e l i m i n a r y . e / E s t i m a t e d by F e d e r a l R e s e r v e . 1J Gross P r o c e e d s exceed n e t p r o c e e d s by t h e c o s t of f l o t a t i o n . 2J For t o t a l s e e E x h i b i t H; o t h e r i s s u e r s a r e e x t r a c t i v e , r a i l r o a d & o t h e r , t r a n s p o r t a t i o n , r e a l e s t a t e & f i n a n c e , & commercial & o t h e r . S o u r c e : S e c u r i t i e s & Exchange Commission. ,, Exhibit J Other Security 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 ) Grog 9 Long-term 1/ 1965 January February March April May June July August September October November December Jan. - June F o r e i g n government 2 / 1964 1963 232 133 76 57 114 11 63 83 4 82 69 30 75 26 20 13 7 180 72 58 218 38 72 I>/ • - e/100 e/428 Year 286 623 636 771 1965 129 185 2/325 £/ e/250 e/889 F e d e r a l Agency 11 1964 1963 148 186 275 260 160 459 509 174 200 275 1,204 793 1,167 Nfiw mhn f - f f t r m y Federal agency 3 / nri 1 o r a l government- 5 / January February March April May June July August September October November December 238 91 -458 647 204 fi/-85 Jan.-June 2/637 103 236 -407 442 81 -80 -9 127 176 7 -15 -208 75 272 -367 589 -30 -10 62 208 -173 259 146 -339 -137 -174 117 375 529 541 -11 509 237 -308 -336 23 97 183 239 -333 167 525 113 -3 -332 -255 -161 202 195 319 415 326 258 123 -102 551 -502 -32 1 _G22_ 368 J&L -L53S£ / P r e l i m i n a r y , e / E s t i m a t e d by F e d e r a l R e s e r v e . n * a . - N o t a v a i l a b l e . l / T h e s e d a t a d i f f e r f r o m t h o s e i n Ebchibit f i n t h a t r e f u n d i n g i s s u e s , a s w e l l a s new c a p i t a l i s s u e s , a r e i n c l u d e d . L o n g - t e r m s e c u r i t i e s a r e d e f i n e d a s t h o s e m a t u r i n g i n more t h a n otie 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 i n t h e U . S , by f o r e i g n g o v e r n m e n t s and t h e i r p o l i t i c a l s u b d i v i s i o n s and i n t e r n a t i o n a l o r g a n i z a t i o n s . S o u r c e : S e c u r i t i e s & Bechance Commission. 3 / I s s u e s n o t g u a r a n t e e d by t h e U . S . G o v e r n m e n t . S o u r c e : L o n g - t e r m , S e c u r i t i e s & E x c h a n g e Commission; s h o r t - t e r m , T r e a s u r y D e p t . & F e d e r a l R e s e r v e . £ / T h e s e d a t a d i f f e r f r o m t h o s e i n E x h i b i t H and a b o v e i n t h a t t h e y r e p r e s e n t new o f f e r i n g s l e s s r e t i r e m e n t s , w h e t h e r " f r o m t h e ^proceeds or r e f u n d i n g i s s u e s o r from o t h e r f u n d s . Data i n c l u d e o n l y i s s u e s w i t h o r i g i p a l , m a t u r i t y o f b i i e * . y e a r o r l e s s . '5/ P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , ' ' w a r r a n t s , o r c e r t i f i c a t e s "and P u b l i c H o u s i n g A u t h . , v ^ l a r . I n s o m e I n s t a n c e s PHA n o t e s i n c l u d e d may h a v e a somewhat l o n g e r m a t u r i t y t h a n Digitized S o u r for c e : FRASER Bond and B u y e r & F e d e r a l R e s e r v e . H. 14 Exhibit K L a r g e L o n g - t e r m P u b l i c S e c u r i t y I s s u e s f o r New C a p i t a l ( O t h e r t h a n U. S . T r e a s u r y ) .1/ Proceeds of Large I s s u e s O f f e r e d ( I n m i l l i o n s of d o l l a r s ) Total : 1 I : 1964 - J u l y Aug. Sept, Oct Nov, Dec, 1965 - J a n , Feb, Ma r , AprMay June July Coroonate Bonds Convertible (other than convertibles) bonds 291 142 376 187 178 215 269 108 230 130 217 513 307 928 801 477 200 115 131 233 210 560 343 455 Stocks State and local governments 113 17 25 81 79 30 - - - - - - 15 86 - - - 280 97 53 320 22 - - - 315 138 ' 2/ 260 104 15 502 15 544 459 558 419 226 541 419 446 395 411 492 377 655 - - - - Other - - 235 130 19 260 40 340 20 Large Individual Issues Offered During July Issuer Type 2 / Amount (millions of dollars) Coroorate Conv, s u b . d e b . 21.9 fjrR.H. Macy Co S . F . deb s 50.0 Burlington Industries 6 0.0 New E n g l a n d T e l & T e J . Co. Deb. S . F . deb 50.0 Lone S t a r Cement C o r t . 1 s t mtg b d s 15.0 A t l a n t a Gas L i g h t Co. 1st & • r e f . mtg,bds75.0 P a c i f i c Gas and E l e c . Co. 1 s t mtg, b d s . 25.0 , , N o r t h e r n 111 Gas Co, 30,0 B a l t i m o r e Gas & E l e c . Co. S . F - a v b . 150.0 S.F- deb. • Montgomery Ward & Co. Maturity 1990 1990 2005 1990 1990 1997 1990 1990 1990 Coupon r a t e or net interest cost 4-1/4 4-3/4 4-5/8 4-7/8 4-3/4 4-5/8 4-5/8 4-5/8 4-7/8 Offering vield Rating 4.25 4.80 4.58 4.88 4,65 4.58 4.60 4.60 4.90 Baa Aaa A A Aa Aa Aa Baa 2.85-3.40 3.50 2.55-3.40 2.40-3.30 Aa Aa S t a t e and L o c a l Govt, S a c r a m e n t o Mun. U t i l . D 1st. , C a l i f . S t a t e of C a l i f o r n i a R*- v . -L't. G. 0 <• G. 0 17.5 12.5 70.0 50,0 1970-94 2004 1967-91 1 9 6 6 -8 5 3. 46 3.31 3.21 H. 14 K-2 Large I n d i v i d u a l I s s u e s O f f e r e d During J u l y (Cont'd) 1 Issuer Type 3 / S t a t e and L o c a l C o n t ' d ! b t a t e or wmneaoty Memphis, Tenn. San F r a n . Bay A r e a T r a n s . Auth, Commonwealth of P e n n a , M a r y l a n d S t a t e Raods Comi i. New Y o r k , N,Y. I n d . Dc v . Bd, of Sc^ctsboro- Ala. Amount (millions of dollars) Coupon | O f f e r 1 ing Maturity r a t e or n e t i n t e r j- y i e l d est cost Rating 54.8 25.0 H T ' 35 1966-90 3.10 3.13 2.50-3.15 2.50-3.204/ Aa Aaa 70.0 27.0 20.0 111.1 64.0 1972-99 1971-85 1966-80 1967-95 1966-70 3.38 3.03 3.21 3.44 3.50 2.90-3.455/ 2.75-3.10 2.45-3.15 2.80-3.57 6/ Aa Aa Aa Baa Baa Rev. - R e n t 31.5 23.5 1987 1968-77 n. a . n.a. 4.00 3.00-3.407/ - - Rev. - S . T . G.O. 20.0 28.0 1968-84 1966-90 3.58 3.25 2.90-3.60 2.40-3.35 8/ Baa A Rev. - Q . - U t . 30.0 1966-95 3.77 2.60-3.80 1985 5-3/4 5.97 GO. G.O. Rev. - Q . - U t . G.O Rev. - S t . G.O. j Ev. • i'" S v- . T." SrV . H e , . . 41 , F l a . P h i l a . u.: . Disc , P f , Los A n g e l e s D e p t . of Airports, Calif. Other Commonwealth o f New Zea l a n d Bonds *--Rights offering. ? n . a , —Not a v a i l a b l e , 1 / I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s o f $15 m i l l i o n and o v e r ; S t a t e & l o c a l \ go i r n m e n t s e c u r i t y o f f e r i n g s o f $10 m i l l i o n and o v e r . 2 / I n c l u d e s f o r e i g n g o v e r n m e n t and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and D e v e l o p m e n t i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e r a l a g e n c i e s . ' 3 / I n t h e c a s e of S t a t e & L o c a l g o v e r n m e n t s e c u r i t i e s , G . 0 . d e n o t e s g e n e r a l o b l i g a t i o n s ; R e v . - U t . r e v e n u e o b l i g a t i o n s s e c u r e d o n l y by i n c o m e f r o m p u b l i c u t i l i t i e s ; R e v . - Q - - U t . , r e v e n u e b o n d s s e c u r e d o n l y by r e v e n u e f r o m q u a s i - u t i l i t i e s ; R e v . - S . T . , r e v e n u e b o n d s s e c u r e d b y r e v e n u e f r o m s p e c i f i c t a x e s o n l v ; R e v . - R e n t . , r e v e n u e b o n d s s e c u r e d s o l e l y by l e a s e p a y m e n t ! 4/ 0 . 1 p e r cent bonds m a t u r i n g 1988-90 not p u b l i c l y r e o f f e r e d . _5/ 1 - 1 2 p e r c e n t b o n d s m a t u r i n g 1999 n o t p u b l i c l y r e o f f e r e d . 6 / Bonds n o t p u b l i c l y r e o f f e r e d . 7 / Bonds m a t u r i n g 1 9 7 3 - 7 7 n o t p u b l i c l y r e o f f e r e d . t 8 / 1 / 2 0 p e r c e n t b o n d s m a t u r i n g 1990 r e o f f e r e d t o y i e l d 4 . 2 5 p e r c e n t . v? H. 14 Exhibit L F o r t h c o m i n g L a r g e L o n g - t e r m P u b l i c S e c u r i t y O f f e r i n g f o r New C a p i t a l ( O t h e r t h a n U . S . T r e a s u r y ) JL/ Expected Proceeds from Forthcoming Large I s s u e s ( I n m i l l i o n s of d o l l a r s ) D u r i n g month f o l l o w i n g d a t e shown S t a t e and Corporate Other 2/ local govt. f | 1964 - J u l y 31 31 ! S e p t 30 * Oct- 30 Nov 30 Dec - 31 i, 1965 - J a n 29 / Feb, 26 Y Mar. Apr. 30 May 2b June. 30 J u l y 30 92 402 186 120 511 500 254 360 . 306 242 316 212 411 328 397 248 90 105 169 407 267 852 765 363 193 Corporate Subsequent t o d a t e shown S t a t e and local govt. 167 442 186 15 - - — •- 25 215 130 105 253 504 792 852 923 410 240 — 60 25 70 20 ' 588 680 626 549 563 435 382 599 373 635 474 524 352 Other 2/ 15 - - 25 215 60 25 70 20 F o r t h c o m i n g L a r g e O f f e r i n g s a s of J u l y 30 Issuer Type Amount (millions of dollars) Approximate d a t e of offering Corporate Be a u n i t Corp S o u t h e r n C o u n t i e s C-as Co. S o u t h e r Cal- E d i s c n CoN o r t h e r n S t a t e s Pv?r: Co Lone S t a r Cas Cc, • General M i l l s Inc. Macy C r e d i t Corp. G r e a t Western F i n a n c i a l Corp, Conv, s u b , d e b . 1 s t mtg, b d s . 1 s t & r e f . mtg, b d s . Com- s t k . S,F deb. S.F. deb. DebDeb. 25.0 40,0 37 1 25,5 in o 35.0 25.0 22,0 Aug. Aug. 4 Aug. 18 Aug. 17 ( r t s . Aug. 25 Aug. 4 Indefinite Indefinite R.v - R e n t GO GO CO, CO. 25.0 10.0 30.0 12.0 12, 7 Aug. 4 Aug. 4 Aug. 10 Aug. 10 Aug. 16 S t a t ^ and l o c a l Government A l a . Pub Sch & C o l l e g e Aut h. P i t t s b u r g h , Pa. H a m i l t o n Co . Ohio Newark, Nc-w J e r s -y San F r a n c i s c o . Cal ex.) H. 14 L-2 F o r t h c o m i n g Large O f f e r i n g s a s o f J u l y 30 ( C o n t ' d ) Issuer P u b l i c Housing Auth. *Madison, Wise. San A n t o n i o , Texas Cuyahoga C o . , O h i o El Paso, Texas Dade C o u n t y , F l a . F l o r i d a Dev. Comm. Type Bonds G.O. G.O. G.O. Rev.-Ut. G.O. R e v . - S . T. Amount (millions of dollars) 132.0 11.7 15.0 13.0 10.5 46.0 33.8 Approximate d a t e of offering Aug. 18 Aug. 26 Aug. 29 Sept. 9 S e p t . 22 Indefinite Indefinite Other None ^ - - I n c l u d e d i n t a b l e f o r f i r s t time 1 / I n c l u d e s c o r p o r a t e and o t h e r i s s u e s o f $15 m i l l i o n and o v e r ; S t a t e and l o c a l government i s s u e s o f $10 m i l l i o n and o v e r . 2/ I n c l u d e s f o r e i g n 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 D e v e l o p m e n t i s s u e s and n o n - g u a r a n t e e d i s s u e s o f F e d e r a l a g e n c i e s . N o t e ; - - D e l e t i o n s f o r r e a s o n s o t h e r t h a n s a l e o f i s s u e : None. H. 14 Exhibit M F o r e i g n Government and Co r p o r a te S e c u r i t y O f f e r i n g s and P l a c e m e n t s i n the U n i t e d S t a t e s P«nL I; ; Sale Date Amount (millions of dollt'irs) Public Offerings I s s u e r and D e s c r i p t i o n o f I s s u e A. S o l d June 1 through J u l y 30 i ! 6/15 50.0 Quebec H y d r o - E l e c t r i c C o m m i s s i o n - - 4 - 5 / 8 % d e b e n t u r e , maturing 1985, r e o f f e r e d t o y i e l d 4.75% j en? 20.0 Kingdom o f Denmark--6% b o n d s , maturing 1985, r e o f f e r e d t o y i e l d 6.09%** t 6/22 20.0 M e t r o p o l i s of Tokyo--6% b o n d s , maturing 1980, r e o f f e r e d t o y i e l d 6.50%** < 7/7 20.0 Commonwealth o f New Z e a l a n d - - 5 - 3 / 4 % b o n d s , maturing 1985, r e o f f e r e d t o y i e l d 5.97%** f I i I B. | Prospective Offerings ' NONE 1 * ** Included in t a b l e for f i r s t time. Issue s o l d in e n t i r e l y t o i n v e s t o r s o u t s i d e U.S. H. 14 M-2 Part I I : Da t e reported *7/21 P r i v a t e P l a c e m e n t - - R e p o r t e d June 1 through J u l y 30 Amount (millions of dollars) 40.0 I s s u e r and D e s c r i p t i o n of I s s u e Trans-Canada Pipe L i n e s L t d . - - 5 - 1 / 8 % f i r s t mortgage b o n d s , maturing 1 9 8 5 - - n o i n f o r m a t i o n a v a i l a b l e on takedown. For r e t r o s p e c t i v e data on a g g r e g a t e f o r e i g n c o r p o r a t e and government s e c u r i t y o f f c i n g s i n t h e U n i t e d S t a t e s s e e E x h i b i t s I and J . There i s no s i m p l e r e l a t i o n s h i p * between the data shown i n t h e E x h i b i t and t h a t shown i n E x h i b i t s I & J b e c a u s e the 4 l a t t e r i n c l u d e s p r i v a t e l y p l a c e d s e c u r i t i e s , i n rhe p e r i o d i n x.'tn'rh f u n d s r r e \ • ' r:\-in- v i l l i e the p l a c e m e n t s shown a c t u a l l y takendown but o n l y i n t h e amount i n t h i s e x h i b i t a r e i n c l u d e d when r e p o r t e d , i r e q u e n t l y w i t h l i t t l e or uo * i n f o r m a t i o n c o n c e r n i n g t i m i n g of takedowns, F u l l or p a r t i a l takedowns may take p l a c e b o t h p r i o r and s u b s e q u e n t t o the d a t e a p l a c e m e n t i s r e p o r t e d . ^ - - I n c l u d e d in t a b l e f o r f i r s t time.