Full text of H.16 Capital Market Developments : February 7, 1966

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DECONTROLLED AFTER SIX MONTHS
Not for Publication
H. 14

February 7, 1966

| CAPITAL

MARKET DEVELOPMENTS
IN THE UNITED STATES
(Including Review of Capital
Market Developments in January)

19SS

J

Corporate and municipal bond markets.
This
week corporations will offer publicly approximately $280
million of new securities—the highest weekly total for
the year. The municipal market, on the other hand, will
receive a be low-average amount of new issues.
Long-term Public Security Offerings 1/
(In millions of dollars)

Corporate
State and local Govt.
New Capital)Refunding New Cap ita11Re fundine
Sold:
52 week avg.
Jan. 28
Feb. 4

151

3

200

80
108 r/

507 r/
213

280

128

11

Scheduled:
Feb. 11

1J Federal Reserve estimates based upon published reports
of issues sold and scheduled for offering; corporate rights
offerings are included as of the date subscription rights
expire.
La.-" week'5 two major Corporate debt issues were
fairly well received by investors. The yield on new corporate bonds rose 6 basis points suggesting cautious bidding
by underwriters.
In the municipal market, yields edged upward at
a time when unsold issues bound by syndicate price restrictions
increased. One large issue was released from underwriters
price restrictions, and free market trading resulted in an
upward yield adjustment of 15 basis points.
Capital markets in January. Corporate new capital
financing in January aggregated a record breaking $1,350
million. Compared with January 1965, this represented almost
60 per cent increase in corporate demand for external longterm funds.




H. 14

-2-

Yields in Security Markets
Change from
preceding week
(basis points)

Level latest week
(per cent)
High-Grade
Notes and Bonds
Corporate
New
Seasoned

4.91
4.75

+6
+1

U.S. Govt.
Long-term
3-5 years

4.53
4.96

4-9
+4

State and local Govt.
Moody's Aaa
Standard and Poor's
high-grade

3.39
3.55

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

+4

4.50

-2

4.63
4.75

+7

+6

Corporate Bonds Still in Syndicate
Date
Offered
2/2

Amount
(millions of $)

60.0

Reoffering
yield

Issue
Ohio Bell Tel. Co.
5's - 2006

4.94

Rating

Estimated Proportion sold
3/4

Aaa

Blue List of Municipal Dealer's Advertised Inventories
— ( m i l l i o n s
of dollars)
Latest Date
577 (2/3)




End of Previous week
561

Recent High
901 (6/4)

-3-

H. 14

The weekly average of new corporate issue yields
remained at the high level of 4.84 during January. Yields
on seasoned corporate issues moved upward to their highest
level in several years. Prospects for a record breaking
volume in the first quarter of 1966 continued to apply
pressure in the corporate sphere.
State and local government bond issues for new
capital during January totaled $1.2 billion--a new record
and almost $400 million above the year ago level. Despite
this unusually large supply of new tax-exempt issues yields
remained quite firm and even declined slightly toward the
end of the month. But dealers advertised inventories of unsold
municipals increased a substantial $125 million during the
month and closed around $570 million.
Estimated security financing in February. Gross
corporate security financing for new capital is estimated
to total $1.5 billion for February, another record for the
month and more than twice as much as February 1965. Municipal
bond issues are expected to decline from the $1.2 billion
January level to the rather normal $.9 billion mark.
Stock prices. Common stock prices--as measured
by Standard and Poor's index of 500 stocks--declined sharply
(about 1-1/2 per cent) early last week, but later recovered
almost all the loss. By the close of February 4, the index
registered 93.26, only 0.05 below the week-earlier level.
Trading was active, averaging 8.2 million shares daily, but
still 1.0 million below the week earlier pace.
During the month of January, the "500" posted
a net gain of 0.5 per cent and at the close on January
31 read 92.88. At mid-month, however, a new all-time
high of 93.95 had been established. Trading volume averaged
8.7 million shares daily, the same as the record December
level.
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.




«X Ml BIT A. F e r l 1

IONO-TIKM BOND YIHDS, HIOH -OBADI
Weefclv

lt(l
Exhibit A —

Corporate
Aaa y

Part II

U. 8. Govt,
long-term 2/
(per cent)

1959-60
1961-62
1962-63
1964

-

High
High
Low
High
Low
1965 - High
Low

4.19(3/29/63)
4.73(12/31)
4.41( 3/12)

t u r n

State and
local
government
« A** 3/

3.85 (12/28/62)

2.88(13/8/62)

4.45 (12/17)
4.13 (6/25)

3.16(3/26)
2.99(12/31)
3.40(12/31)
2.94(2/11)

Spread between
0. S. Govt, and
Corporate
State and
Aa#
local Aaa
.59
.57

.92
1.04

.33
.19
.34
.22

1.14
1.01
1.22
.94

.21

.80

Jan. 7 4.73
4.44
3.40
.29
1.04
Jan. 14 4.74
4.42
3.40
.32
1.02
Jan. 21 4.74
4.41
3.39
.33
1.02
Jan. 28 4.74
4.44
.30
3%39
1.05
4.53
3.39
.22
4.75 •
1.14
. Feb.
p/ Preliminary,
y Weekly average of daily figures. Average term of bonds included is 22-24 years.
y Weekly average of daily figures. The series includes bonds due or callable in 10 years or i
y Thursday figures. Only general obligation bonds a m included] average tens is 20 ySars.
Note.—4HLghs and lows are for individual series and may be on different dates for different
series. For spreads, high refers to widest, and low to narrowest*




IXNItIT # Fen I

Week.lv

1

r

— X ^ y V '

v x
II 1 1 11 1 i i

it*i

- - x V —

i II 1 1 II 1 1111 I i 1 I M I l lMlll M ll ll i l 1 1 II 1 1 1 1 AMM .
lf»a
i**>
1**4
«**• •
Exhibit B —

Da te

5.36 (3/12/60)
5.10
4.93
4.85
4.80
5.04(12/31)
4.78(3/19)

Jan.. 7
5.05
Jan., 14
5.05
Jan. 21
5.06
Jan. 28 ,
5.08
5.09
. „ Feb.> 4 d/
Notes For footnotes see Exhibit i.




Part II

State and
local govt.
Baa 2 /

Corporate
Baa 1/
'

1959-60 - High
Year fend - 1961
1962
1963
1964
1965 - High
Low

.1

X

Spread between
Aaa and Baa
Corporate

|

^

(per cent)
4.46 (1/7/60)
4.04
3.57
3.60
3.51
3.79(12/30)
3.40(2/11)

.84
.66
.70
.48
.37
.41
.33

1.08
.73
.63
.49
.52
.52
.34

3.79
3.78
3.78
3.80
3.80

.32
.31
.32
.34
.34

.39
.38
.39
.41
.41

EXHIBIT C. F e n

I

SHORT- AND INTERMEDIATI-TERM INTKRIST RAT**
GOVERNMENT
Weekly

'

I

I A
k

1M

\j

f. «. DISCOUNT (ATI

r f

-month bum
VleU.

^
s

|

>-j

'

w

3-MONTH BlitS

IA^-<
..
II 1 1 1 1 1 1 i1 iIIi i I i l I1 i.1.1i. Ji 11.11 I.J-I1111111
Exhibit C —

Date

1959-60 - High
Year end - 1961
1962
1963
1964
1965 - High
Low

Discount
ra te
3-month
bills 2/
U
4.00
3.00
3.00
3.50
4.00
4.50
4.00

4.59 ( W 6 0 )
2.66
2.89
3.52
3.83
4.47(12/31)
3.78(6/25)

Part II

Yields
6-month
bills 2/
(per cent)

3-5 year
Issues 2/

5.07(0/0/60)
2.90
2.93
3.64
3.93
4.66(12/31)
3.82(6/25)

5.00(13/24%*)
3.81
3.41
4.07
4.07
4.90(12/31)
4.04(1/22)

Spread between yields on 3month bills and vields on
6-mo. bills 13-5 vr. issues
.79
.24
,04
,13
,10
.19
.03

1.81
1.15
.52
.55
.24
.43
.11

4.53
4.70
4.50
Jan. 7
4.93
,17
.40
4.50
4.59
4.73
Jan. 14
4.84
,14
.25
4.50
4.67
4.73
Jan. 21
4.86
,12
.25
Jan. 28
4.50
4.57
4.68
4.92
.11
.35
4.96
* Feb. 4 a/
4,75
4.50
4.63 ^
.12
,33
1/ Weekly rate shown is that in effeot at end of period at the federal Reserve Bank of Sew Yortc,
ar Market yield) weekly averages computed from daily closingtoldpzioes, Series of 3*6 year Issues
consists of selected notes and bonds,
Kotee—fiighs and lows are for individual series and may be on different dates for different series,
for spreads, high refers to widest, and low to narrowest.




I X H I H I D. Part 1

SHORT- AND INTIKMBDIATI- TIRM INTIRIST RATH
Weehlf

A

Exhibit D -- Part II

Date

1959-60 - High
Year end - 1961
, 1962
1963
1964
1965 - High
Low

Prime rate

.

5.00
4.50
4.50
4.50
4.50
5.00
4.50

If

Finance
company
Federal funds 3/
paper
2/
(per cent)
5.13 (3/22/60)
3.00
3.19
3.88
4.06
4.75(12/31)
4.00(2/12)

.

4.00 (3/13/60)
2.88
3.00
3.50
4.00
4.63(12/31)
3.48(10/1)

Spread between
3-mo. bills and
finance co. paper
1.02
.34
.30
.36
.23
.47
.10

4.60
.22
5.00
4.75
Jan. 7
4.60
5.00
.16
Jan. 14
4.79
3.55
.20
5.00
4.88
Jan. 21
5.00
Jan. 28
4.52
4.88
.31
4.88
w Feb. 4 t>/
4.50.25
5,00
1/ Weekly rate shown le thai In effect at end of period* Prime rate Is that charged by large >*">•
on ehort-tera loans to business borrowers of the bluest credit standing#
y Avera|e^of daily ratee^publlahed by finance companies for directly placed paper far varying
3/ Weekly average of daily effective rate, which is the rate for the heaviest t o turns of purchase and
sale transactions as reported to the Federal Reserve Bank of Hew York#
Notes—filths end lews are for individual series and may be on different dates for different series.
for spreads, high refer* to widest, and low to narrowest.




STOCK MARKKT

Exhibit B -- Part II

Stock price
index I/

1961-62 - High
Low
Year end
1963
1964
1965 -• High
Low
Jan. 7
Jan. 14
Jan. 21
Jan. 28
Feb. 4

Stock mar cet customer credit
Trading
Common
Bank
Customers1
volume 2/
stock
loans to
debit balTotal
yields 2j , (millions
"others"
5/
ances
4/
(per cent) of shares)
(In millions of dollsrs)
5 , 602(12/61) 4,259 (12/61)1,418(9/9/62)
4,424(1/61) 3,253(1/61) l,16l(W6l)

72.04(1^/6/61)
52.68(6/22/62)

2.80
3.96

10.1
2.4

74.44
84.75
92.55(11/12)
83.06 (6/25)

3.13
3.02
2.95
3.15

4.7
4.7
9.8
3.8

7,242
7J>53
7,705
6,872

5,515
5.099
5,521
4,863

93.14
93.50
93.47
93.31
93.26

3.02
3.01
3.02
3.02
3.03

8.7
8.6
9.5
9.2
8A

n. a .

n.a.

n.a.
n.a
n.a.

n.a.

1,727
1.974
2,186
1,843
2,180
2,178
2,173
2,175
, BtflLju

D * ^ o m p o # i t e " i 3 # x of 500 ooeodb took#. ##Wcly olosing prioes, 1941M3-10.
Monthly data an average# of daily figure# rather than of Fsldsgr*# only. High# and lew# are for
***?***
Zj stindLd t!d%"5# oonvosite a took yield based on Wednesday data converted to
prices by federal Resene. Yield# shewn are for data# on which prioe index reached its high
3/ l^Mge# of daily trading volte* em the *ew Yerfe Stockferahange.Ysai^end figure# are averages of
<1.1 1 w #4A««»aa
*>1A M4IL
V End of month figures for amber fins of the lew Y e * Stock Exchange Alch carry margin eo count# i
exclude# balance# secured ty #. 3. Government obligations.
others, for further detail see Bulletin.




(12/24)
(3/3)

! MORTGAGE AND BOND YIILDW
bwV-

NONE MORTGAGES:I

Aaa C O R P O R A T E B O N D S :

. 1957

1958

1959

1960

1961

1962

Exhibit F
FHA
mortgages 2/

Conven-

25-year 30-year

1956
1957
1958
1959-60
1961-65

- Low
- High
-Low
- High
- High
Low

4.68
5.63
5.35
6.24
6.00
5.43

5.70
5.44

5.20
6.00
5.55
6.30
6.10
5.80

1963

1964

1965j

Part II

Spread beAaa Corporate
tween yields
on conv. &
FHA roort- . New^/ Seasoned^
Rages
&
.47
.47
.15
.23
.39
.25

.3.08
4.94
3.65
5.25
4.72
4.12

3.08
4.12
3.57
4.61
4.60
4.19

Spread between
yielda on new corporate bonds and
FHA mtgs. Seasoned
4/
.76
1.58
.88
1.69
1.48
.79

1.03
.05
.73
.39
-.16

1965 - Aug. 5.45
5.45
5.80
.35
4.63
4.49
.82
.14
Sept 5.46
5.46
5.80
.34
4.67
4.52
.79
.15
Oct. 5.49
5.49
5.85
.36
4.69
4.56
.80
.13
Nov. 5.51
5.51
5.90
.39
4.60
4.72
. .12
.79
D&Ca. 5,63
• •5.62. 6-00
77
n
,
• 38
6.81
..4.6R
&
mortgage nor eona yieiae twee into nooount eervieing oosts.ehioh are aaoh higher for
than bends, Geneimlly, bonds pay interest send-tumuallyj mortgages, monthly. Mortgage yields, if
oompnted^as equivalmt to a semi-animal interest investment, wald be • lightly higher thm given im
tf Based on IHirfield-offioe opinions about average bid prices in the private eeoondsry mitot fbr ms#homo mortgages fer inmdiate delivery. Separate data available for 25-year and—beginning Jtiy 1961—
30-ye»r mortgagee with minimum dowapayants, weighted by probable toIssh ef transactions." Ilelde eompoted by nue assamlng prepaymeat period of 12 jews fer 25—year mortgages and 23 yeas* for SO—
year^mortgages. Over the period far *ioh they oen he oeepared, the movement of the two mortgage
Yield series has been, similar. Dashed lines indie ate periods of ad jam tm ant to ehnnges la eeetraetwl
interest rates.
5/ Based on IBA field office opinion on typioal interest rates (rounded) en oonvestioaal first mortgages
prevailing in the market areas of insuring office cities. Beginning with April 1960, rate (elates
only to new-hone mortgages | prior to that date, rate related toboth new as well as exletla**eee
mortgages. Bashed line Indicate# this change in the series.
At m mortgage yield data are for 23-year mortgagee through June 1961; 30-year mortgages thereafter.
V See note for Exhibit Q.
$r Moody's Investor Service. Monthly averages of daily data. See Kzhibit k»




\t
Exhibit F

New Homes
Con- Fees &
tract Charges Maturity
(Years)
Rate (Per
cent)
(Per
cent)
2/

Part IV

Loan/ Loan
Price amt.
ratio (Thous.)
(Per
cent)

Exiiiting Homes
Loan/ Loan
Con- Fees &
tract Charges Maturity Price amt.
(Years) ratio (Thous.)
Rate (Per
(Per
cent)
(Per
cent)
cent)
2/

1964
Nov.
Dec.

5.75
5.76

.55
.59

24.7
25.2

74.5
74.9

17.4
17.8

5.94
5.92

.57
.56

20.3
20.1

71.4
71.7

13.8
13.7

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

5.79
5.79
5.72
5.74
5.77
5.76
5.77
5.76
5.75
5.75
5.80

.59
.61
.49
.51
.53
.49
v55
.50
.56
.53
.54

24.7
24.9
24.0
24.0
24.0
24.6
25.0
24.5
24.9
24.8
25.0

74.0
74.0
73.7
73.7
74.4
73.9
75.0
73.8
73.7
73.8
74.9

17.5
17.6
18.5
18.1
18,2
17.5
18.3
18.3
18.1
18.3
18.5

5.95
5.93
5.91
5.89
5.88
5.86
5.86
5.86
5.89
5.87
5.91

.54
.54
.55
.49
.48
.49
.49
.46
.47
.48
.50

19.9
20.3
20.9
20.4
20.3
20.6
20.6
20.4
20.1
19.9
19.4

71.6
72.6
72.7
71.8
71.9
72.1
72.1
72.1
71.6
71.3
72.0

13.6
13.8
14.6
14.0
14.1
14.3
14.5
14.1
13.7
13.9
13.9

are weighted averages based on prooaoxjaxy aampj-o eurrey o*
«*•
mortgages originated by major institutional lender groups, (including mortgage companies) for purchase
of single family homes. Data exclude loans fcr refinancing, reconditioning, or modernization)
construction loans to home-buildersi and—in this exhibit—permanent loans whidh are coupled with
construction loans to cwnen-builders. Data are still in a developmental stage and may reflect
seasonal Influences which cannot yet be measured because the series go baok only to end of 1962.
Related series on conventional mortgage rates only, based on unweighted opinions of regional-office
directors of the Federal Housing Administration, are available gomswhat sooner thra the results of
FHLBB-TDIC survey, and are included—4n the case of new home mortgage rates—in Exhibit J , rartm i

borrower*

They exclude any closing costs related solely to transfer of property ownership.




1
1

1

IXHIIIT 0. Pe,l I
YIELD* ON N1W AND S I A S O N I D CORPORATI BONDS

I II I II I I II I
I I I I I I I I

Exhibit 0 - Part II
Yields on Hew Corporate Bond Issues Adjusted to an Aa* basis
Number Am r t of Issues
Included (mile
of
of dollars)

Weekly averages;
1965 - Jan.

iussa

Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

Weekly averages:
1965 - High

94.0
111.0
157.8
115.0
315.0
100.0
278.0
166.5
288.5
108.0
267.0
212.0

An't of Issues Average
yield
Included (mil.
of
(per cent)
i ! ! M of dollars)

Average
yield
cen
^>
4.42
4.41
4.45
4.46
4.51
4.58
4.61
4.63
4.67
4.69
4.72
4.84 '

4.86 (12/17)
,4.?3JJ ~

Nov.

5
.12
19
26
Dec. 3
10
17
24
31
Jan. 7
14
21

Feb.

28
4

3
1
2
2
2

75.0
125.0
67.0
40.0
40.0
132.0

4.73*
4.70
4.78
4.79
4.80
4.86

175.0
40.0
40.0
45. j0
68.5

4.82
4.89*
4.84
4.85
4.91

m a i f i t i i t s i L



•
Exhibit H

VA

H. 14

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

Hew Capital
Corporate
1965

1964

1966

795
746
1,197

938
700
778

e/1,200 v z
e/ 900 V

April
May
June

1,152
1,691
1,946

July
August
September

1966
!
January
February
March

e/1,350
6/1,500

State and Local 2/
1965
1964
2/804
R/872
2/90*

947
776
810

2,237
1,095
1,405

2/826
2/924
2/972

1 ,242
667
903

1,290
850
1,392

812
680
1,130

2/986
2/648
2/966

906
780
892

October
November
December

933
1,358
e/1,200

953
669
1,642

2/794
2/1,021
e/800

801
529
948

1st
2nd
3rd
4th

2,738
4,789
3,533
e/3,491

2,416
4,738
2,621
3,264

2/2,580/
2/2,722.
2/2,600
e/2,615

quarter
quarter
quarter
quarter

1st half
Three quarters
Year
'

1st
2nd
3rd
4th

7,527
11,060
e/14,551 .

2/5,301'
2/7,902
e/10,517

quarter
quarter
quarter
quarter

2,547
4,348
3,283
e/2,991
e/13,169

5 ,345
7,,923
10,201

2,043
4,258
2,477
2,997
11,775

Estimated by Federal Reserve.
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.




\

2 ,533
2 ,811
2 ,578
2 ,278

Excluding"finance companies 3/

Year
e/
2./
1/
2/
3/

7,153
9,775
13,038

1
l

t.

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

Quarter

j

Gross proceeds for new
capital and refiHiding L/
Common Memo:
B<3nds
Publicly Privately and
Foreign
Offered
Placed
Pfd. issues
stock included
1,251
287
898
109
367
1,780
1,319
47

or

Total

Month
1963 - III
IV

2,436
3,466

1964 - I
II
III
IV

2,548
4,965
2,876
3,568

978
1,321
792
531

1,269
1,755
1,590
2,629

300
1,890
494
408

1965 - I
II
III
IV e/

3,007
5,043
3,912
3,733

906
1,864
1,575
1,210

1,673
2,259
1,955
2,062

902
748
1,226
1,036
727
1,805

234
183
376
181
30
320

858
791
1,358
1,233
1,773
2,038
1,443
930
1,538
1,002
1,441
1,2 90

161
187
557
422
694
748
542
369
664
287
613
310

^

Net proceeds for
new caiJital 1/ 2/
Mfg.

Public CommuniUtility cations

Other
Issuers
868
1,629

806
968

285
530

150
118

429
723
559
1,061

438
856
642
509

273
1,666
59
135

1,275
1,492
1,361
1,559

429
920
383
461

1,072
1,679
1,119
n . a . 1,044

541
609
786
563

91
255
323
151

1,034
2,246
1,304
1,734

443
453
693
642
645
1,342

225
112
156
213
52
143

24
27
44
82
29
116

150
176
234
250
203
607

207
138
296
297
40
172

23
16
19
82
21
32

432
349
580
323
405
831

565
450
658
648
630
980
780
468
706
590
572
900

131
155
143
162
449
309
122
93
168
124
257
80

49
51
143
33
49
134
27
87
150
81
67
n.a.

385
192
494
540
698
441
399
307
414
300
444
300

97
215
229
176
248
184
202
297
287
154
269
200

21
44
26
15
143
98
102
25
196
90
li
50

292
295
448
422
602
1,223
587
222
495
390
694
650

29
105
94
227
243
215
263

.

f 1966 - I
1964 - July
Aug.
Sept.
!
Oct.
Nov.
Dec.
1965 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.E./
Nov.E./
Dec.e/

1966 - Jan.
Feb.
Mar.
2./ 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. Source: Securities & Exchange Commission.




Exhibit J
Other Security Offerings
(In millions of dollars)

1965
January
February
March
April
May
June
July
August
September
October
November
December
Year

Gross Lo ng-term 1/
Foreign Government 2/
1964
1965
1963

91
33
74
5
e/34
E/75
e/ --

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

232
133
76
57
114
11
63
83

e/640

636

218
38
73
--

129
185
325
--

Year

238
91
-458
647
204
-82
119
408
152
59
274
2./-366
r/1,286

148
186
^

--

459

510

174
200

2

239
150
2/375
2/375
e/179

275
260
160

771

e/2,732

1,205

1,167

--

775

New sho rt-term 4/
State and Local Government 5/
January
February
March
April
May
June
July
August
September
October
November
December

Federal Agency 3/
1963
1964

--

Federal Agency 3

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

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

-137
-174
117
-11
509
237
132
206
105
-309
202
n.a.

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

453

692

n.a.

368

-332
-255
-161
202
195
319
415
326
258
123
-102
551
1,539

2./ Preliminary. e/Estimated by Federal Reserve, n.a.-Not Available. 1/ These data
|
differ from those in Exhibit H in that refunding issues, as well as new capital issues, J*
are included. Long-term securities are defined as those maturing in more than one year^j
2/ Includes securities offered in the U.S. by foreign governments and their political
subdivisions and international organizations. Source: Securities and Exchange Com-*
mission. 3/ Issues not guaranteed by the U.S. Government. Source: Long-term, Se;
curities & Exchange Commission; short-term, Treasury Dept. & Fed. 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 maturity of one year or less. 5/ Principally
tax and bond anticipation notes, warrants, or certificates and Public Housing Auth.
notes. In some instances PHA notes included may have a somewhat longer maturity than
1 year. Source: Bond
Buyer & Fed. Res.




Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. 8. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollsrs)

Total

1965 - Jan.
Feb.
Mar.
Apr.
May
J une
July
Aug.
Sept.
Oct.
Nov.
Dec.
1966 - Jan.

Coroon ite
Bonds
(other than
Convertible
convertibles)
bonds

193
217
513
307
928
801
477
299
530
246
736
262
485

115
131
233
210
560
343
455
211
530
190
559
212
370

Stocks

---

315
138
--

26

--

—

40
33
50

16
144

Other

--

115

1/

235
130
19
260
40
340
20
50
170
43
95

419
446
395
411
492
377
655
312
563
409
538
413
787

15
86

--

280
97
53
320
22
62

State
and
local
governments

--

"

Large Individual Issues Offered January 1 through February 4
Issuer

Type 2/

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
net interest cost

Offering
vleld

Rating

Corporate
*United Utilities Inc.
Ohio Pwr. Co.
New York Tel. Co.
Mississippi Pwr. Co.
Tenn, Gas Trans. Co.

Com. stk
15 .4
1st mtg. bds.
50,.0
Ref. mtg,. bds,
100.,0
25,.0
1st mtg. bds.
1st mtg. p. 1. bds.50.,0
Pfd. stk.
100.,0
20.,0
Puget Sound Pwr. & Lt. Co. 1st mtg. bds.
Ohio Power Co.
Deb.
40.,0
20.,0
Dallas Pwr. & Lt. Co.
1st mtg. bds.
20. 0
1st mtg. bds.
Gulf States Utile Co.
25. 0
Hooker Chemical Co.
S.F. deb.
20. 0
1st mtg. bds.
Texas Pwr, & Lt. Co.
60. 0
Deb.
Ohio Bell Tel. Co.
^Western Union lei. Co.
Pfd. stk.
37. 6




1996
2006
1996
1986

5
4-7/8
5-1/8
5-3/8

4.89
4.82
5.00
5.33

Aa
Aaa
A
Baa

1996
1996
1996
1996
1991
1996
2006

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

5.20
5.00
4.83
4.92
4.92
4.89
4.94

Baa
A
Aaa
Aa
A
Aaa
Aaa

K-2
Large Individual Issues Offered January 1 through February 4 (Cont'd)

Issuer

Type 3/

Amount
(millions
of
dollars)

Maturity

Coupon 1
Offerrate or
net inter- ing
est cost yield

Rating

>«'
-f
m

State and local Govt.
Cont'd
Alabama Pub. Sch. & Coll.
Auth.
•
Houston ; Tex.
Fairfax Co., Va.
State of New York
Penna. State High. & Bridge
Auth.
DeKalb Co. S.D,, Ga.
Milwaukee Co., Wise.
Comm. of Kentucky

Rev -Rent
G.O
G.O
G.O
Rev..-Q.-ut.
G.O.
G.O.
G.O.

Columbus City S.D., Ohio
G.O.
G.O.
Los Angeles U.S.D., Calif.
Montgomery Co., Md.
G.O.
Chesterfield Co., Va.
G.O.
Met. St. Louis Swr. Dist. Mo. Rev. -Ut.
City of New York
G.O.
Rev. -S.T.
Florida Dev. Comm.
Rev. -Rent..
Okla. Bldg. Bond. Comm.
! G.O.
State of Delaware
Pa. Turnpike Comm.
Rev. -Q.-Ut.
Springfield, 111.
Rev. -Ut.
G.O.
State of Maine
La. Cap. Const. & Imp. Comm. Rev. -Rent
G.O.
State of California

30 .0
25 .7
20 .5
75 .0

1967-86
1967-86
1967-91
1967-86

3 .72
3 .52
3 .71
3 .32

3 .00-3 .70
3 .00-3 .53
3 .10-3 .75
2 .85-3 .35

25 .0
17 .3
36,.6
39 .0
37,.0
11,.0
27.,5
15..0
10.,0
20.,0
253. 2
21. 0
15. 4
15. 0
77. 5
15. 0
13. 0
30. 0
100. 0

1967-86
1968-95
1967-86

3 .43
3 .71
3 .37
3,.53
3,.49
3,.42
3..55
3,.50
3..49
3.,41
4.,19
4.,04
3.,35
3.,34
3. 73
3.,64
3. 38
3. 86
3. 63

3 .00-3 .45
3 .15-3,.75
2,,85-3..40

Aa
A
Aaa

2,.90-3,.55

Aa

2,.90-3..45
2,.95-3..60
3.00-3.504/
3..00-3.,50
2.,95-3.,40
3.,40-4. 07
3.,50-4.,05
2.,95-3. 40
2. 90-3. 40
3. 68
3. 10-3. 63
2. 95-3. 505/
3. 00-3. 85
3. 00-3. 70

Aa
Aa
A
A
Aa
Baa
Baa
Aa
Aa
A
Aa
Aaa
A
Aa

1967-95
1967-86
1967-91
1967-86
1967-86
1967-86
1967-96
1973-89
1968-90
1967-86
2005
1969-97
1968-2006
1967-91
1967-91

'

Aa
A
A
Aa

*--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.
2J 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.O. denotes general obligations^
Revc-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-UteS-A?
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 i."h
by lease payments.
4/ 1/10 per cent bonds maturing 1986 not publicly reoffered.
5/ Bonds maturing 2005-06 not publicly reoffered.
,t-.;




H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treasury) 1/
Expected Proceeds from Forthcoming Large issues
(In millions of dollars)

During month following
date shewn
State and
Other 2/
Corporate
local govt.
1965 - Jan. 29
Feb. 26
Mar. 31
Ap t. 30
May 28
June 30
/
July 30
Aug. 31
Sept.30
Oct. 29
Nov. 30
Dec. 31
1966 - Jan. 31

169
407
267
852
765

363
193
312
206
412
297
553
530

242
316
212
411
328
397
248
404
269
343
398
501
340

60
25
70
20

15
25
20
20

Corporate
253
504
792
852
923
410
340
636
303
489
344
676
931

Subsequent to
dste shown
State and
local eovt.

Other g/

382
599
373
635
474
524
353
450
331
578
458
582
461

60
25
70
20
-15
25
20
20
20

Forthcoming Large Offerings as of February 4

Issuer

Cornorate
Storer Broadcasting Co.
T e x a s E l e i . Ser. Co.
^Rockwell

Sid. Co.

^Central 111. Lighting Co.
Texas Eastern Trans. Co.
Duquesne Lt. Co.
Lone Island It. Co.
Pub. Serv. Co. of Okla.
Madison Fund Inc
Jones & Laugh 1 in
^Williams Bros.
American Tel. & Tel. Corp.
Macy Credit Corp
Great Western Financial Ccrp.
Southern Cal. Ed • Co.




Type

ijConv. deb.
1st mtg. bds.
S. F. deb.
Conv. sub. deb.
1st mtg. bds.
1st mtg. p.1. bds.
Deb.
1st mtg. bds.
1st mtg. bds.
Pfd. stk.
1st mtg. bds.
Conv. sub. deb.
Deb.
Deb.
Deb.
1st.mtg. bds.

Amount
(millions
of
dollsrs)

3%r4

15.0
50.0
50.0
16.0
50.0
20.0
40.0
25.0
32.1
100.0
28.8
250.0
25.0

22.0
75.0

Approximate date of
offering

Feb. 8 (rts. ex.)
Feb. 9
Feb. 15
Feb. 15
Feb. 16
Feb. 16
Feb. 17
Feb. 21
Feb. 25
Feb.
(rts. ex.)
Feb.
Mar. 21 (rts. ex.)
Mar. 30
Indefinite
Indefinite
Indefinite

V

L-2
Forthcoming Large Offerings as of February 4 (Cont'd)

Issuer

Type

Amount
(millions
of
dollars)

Approximate date of
offering

State and local Govt.
Cclo. Springss Colo.
State of North Carolina
Albany Co.„ N.Y.
Los Angeles Co., Calif.
Md. Nat. Cap. Pk. & Planning
Comm.
Arlington, Va.
Penna. Gen. State Auth.
St. Louis Jr. College Dist.
^Hamilton Co., Ohio
Dade County, Fla.
Austin, Texas
Lake Charles Harbor and Term.
Dist. , La.

Rev.-Ut.
G.O.
G.O.
G.O.

16.0
18.0
70.0
20.0

Feb. 8
Feb. 9
Feb. 15
Feb. 15

G.O.
G.O.
Rev.-Rent.
G.O.
G.O.
G.O.
Rev.-Ut.

11.0
11.9
50.0
20.0
19.8
46.0
14.0

Feb. 16
Feb. 23
Feb. 24
Mar. 1
Mar. 2
Indefinite
Indefinite

Rev. -Q. -Ut.

21.4

Indefinite

Bonds

20.0

Indefinite

Other
Republic of Ireland

* - Included in table for first time.
.
\J Includes corporate and other issues of $15 million and over; State and local government,
issues of $10 million and over.
S
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.
5




f

Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:

Sale Date

Public Offerings

.JUnount
(millions
of
dollars)

Issuer and Description of Issue

A.

•

25.0

Commonwealth of Australia--5-3/4 bonds, maturing
1985, reoffered to yield 5.77%. ***

11/17

33.0

International Util. Corp.--conv. pfd. stk.

11/18

50.0

Quebec Hydro-Elec. Comm.--5%% bonds, maturing
1987, reoffered to yield 5.25%.

11/23

20.0

Japan Development Bank--6^% bonds, maturing
1980, reoffered to yield 6.74%.

1/12

7/5

Indefinite

'

4

11/9

Govt, of Jamaica--6-3/4% bonds, maturing
1981, reoffer.ed to yield 7.10%.

B.

**

Sold November 1 to February

20.0

Prospective Offerings

Republic of Ireland-Bonds.

--Included in table for first time.
•- Issue sold to investors outside U . S .
— Issues subject to interest equalization tax.




1
H

M-2
, Part II:

Date Reported

Private Placements-Reported November 1 through February ^

Amount
(millions
of
dollars)

4

Issuer and Description of Issue

1/3

23.0

Pilkington Brothers Ltd.--5%% secured notes,
maturing 1981--no information available on
takedown.

2/4

23.2

City of Montreal--5-1/2% S.F. debentures,
maturing 1986-91—no information available on
takedown.

[
f

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




i
I

i"f~
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|

1

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