Full text of H.16 Capital Market Developments : April 15, 1968

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DECONTROLLED AFTER SIX MOl THS APh 11 ^
FSDERAL REEL. 1

Nat for Publication
H. 14

April 15, 1968.

OF RICHMC I:

CAPITAL MARKETS DEVELOIMENTS
IN THE UNITED STATES

C ( L j ( U ^

Corporate and municipal bond markets. The volume of new corporate
security offerings expected this week will be significantly above the average
weekly volume for such issues over the past year. Dominatihg the corpiorate
calendar are two $100 million debenture issues by Allied Chemical Corpioration
and Sears, Roebuck and Company. In contrast, municipal volume expected this
week will be somewhat less than average, with nearly one-half of the total
offerings accounted for by New York City's $98.1 million bond offering, Not
included in the table below are three foreign issues aggregating $85 rpillion
which are scheduled to be offered to U.S. investors this week.
1/

Long-term Public Security Offerings —'
(In millions of dollars)
Corporate
New Capital j Refunding

State and local Gove;
New Capital | Refunding

Sold:
52 week avg.
April

5
12

Scheduled;
April
T7

19

329

268

116
r/60

r/414
226

410

213

Federal Reserve estimates are based upon published reports of I
issues sold and scheduled for offering; corporate rights offerings
are included as of date subscription rights expire.1

Yields on new and seasoned corporate bonds declined last week.
The sole non-convertible offering last week net with only a fair reception,
and was less than one-half sold by the end of trading on Friday.
Municipal yields declined about 10 basis points last week, but new
issues met with an unenthusiastic response from investors. Only about 52
per cent of the week's offerings had been sold out by week-end, as investors .
showed resistance to aggressive pricing by underwriters. The largest offering
last week, San Francisco Bay Area Rapid Transit District's $70 million
issue, was less than one-third sold by the Friday close of trading.
:ig the
Stock prices. Common stock prices rose significantly durih
past holiday - shortened week. Standard and Poor's index of 500 st Dcks
registered 96.53 at the Thursday close of trading (the last trading day of
the week), a gain of 3.24 points from the close of trading the week earlier.




H. 14
Yields on Security Markets
High-Grade
Notes and Bonds

Change from
preceding week

Levels Latest Week

Corporate
New
Seasoned

6.41
6.19

17
1

U.S. Government
Long-term
3-5 year

5.21
5.48

-

4
5

State and local Govt.
Moody's Aaa
Std. & Poor's high grade

4.08
4.34,

10
10

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

5.58

- 15

5.35
5.40

15
11

Corporate Bonds Still in Syndicate
Date
Offered
4/9

Amount
(millions of $)
25.0

Reoffering
Yield

Issuer
Potomac Edison Co.,
7's - 1993

6.80

Estimated proRating portion sold
A

45%

1

Blue List of Municipal Dealers Advertised Inventories
Latest Week

End of Previous Week

432(4/8/68)

428




Recent High
849(4/26/67)

H. 14

Trading volume continued to set new records and averaged 15.9 million shares
a day. On Wednesday trading volume surged to 20.4 million shares, breaking
the previous single day trading record set only the week before.
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.

y




EXHIBIT

A, Port 1

LONG-TERM BOND YIELDS, HIGH-GRADE
Weekly

C O R P O R A T E Aaa

U.S. G O V E R N M E N T

r

STATE A N D LOCAL ^ G O V E R N M E N T Aaa

1963



1964

1965

1967

196#

Exhibit A — f a n II

Corporate
Aaa 1/

| State and
U.S. Govt. |
local
long-term 2/. government
1
Aaa 3/
(per cent)

1959-60 - High
1966 - High
- Low
1967 - High
- Low

4.61(1/29/60)
5.52(9/9)
4.73(1/7)
6.24(12/29)
5.00(2/10)

4.42(1/8/60) 3.65(9/24/59)
4.04(8/25)
4.87(9/2)
3.39(1/13)
4.42(1/7)
4.15(12/28)
5.49(11/17)
3.25(2/9)
4.37(2/3)

1968 - Mar. 15

6.08

Date

22

3/

4.28
4.28
4.28
4.18
4.08

5.49
5.42
r/5.41
~ 5.25

.59(8/5/60)
.84(12/30)
.14(2/18)
.92
.44
,•59,
r/.71
r/.76
~ .95
.98

o 92(4/22/60)
1.19(2/11)
.77(9/2)
1.51
.74

1.21
r/1.14
r/1.13

29
6.20
5
5.21
12p/ 6.19
Preliminary, r/ Revised.
Weekly average of daily figures. Average term of bonds included is 22-24 years.
Weekly average of daily figures. The series includes bonds due or callable in 10
years or more.
.
Thursday figures. Only general obligation bonds are included; average term is Z0
Apr.

£/
1/
2/

6.13
6.17

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

~i.£

Note--Highs and lows are for individual series and may be on different dates for
different series. For spreads, high refers to widest, and low to narrowestc




-5-

EXHIBIT B, Pari 1

L O N G - T E R M B O N D Y I E L D S , L O W E R GRADE
We ek ly

CORPORATE Baa
Moody's

•

STATE AND LOCAL G O V E R N M E N T Baa

1963



1964

1966

1967

1111

Exhibit B -- Part II

Date

State and
local govt.
Baa 3/

Corporate
Baa 1/

Spread between
Aaa and Baa
State and
Corporate
local aovt.

(per cent)
1959-60 - High
Year end- 1965
1966 - High
Low
1967 - High
Low

5.36(2/12/60)
5.04
6.18(12/30)
5.05(1/14)
6.97(12/29)
5,81(4/14)

6.81
15
22
6.87
6.93
29
Apr. 5
6.98
6.98
12p/
Note: For footnotes see Exhibit A„




4.46(1/7/60)
3.79
4.55(8/25)
3.78(1/20)
4.73(12/28)
3.85(4/13)

.84
.31
.81
.31
.82
.63

1.08
.39 •
.62
.31
.81
.37

4.90
4.89
4.91
4.84
4.83

.73
.73
.76
.78
.79

.62
.61
.63
.66
.75

EXHIBIT C. Port 1

S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES
GOVERNMENT
Weekly

6-MONTH BILLS

3-5 YEAR ISSUES

F.R. DISCOUNT RATE
3 M O N T H BILLS
Market Y i e l d i

i 1.1 i i I i i i i i 1 r i i i i i i i i ii 1 i i i M

1963



1964

1965

1966

,1967

***

i i i i i i 1 i

Exhibit C -- Part II

Date

1959-60 - High
Year end - 1965
1966
1966 - High
Low
1967 - High
Low
1968 - Mar. 15
22
29
Apr. 5
12p/

Discount |
3-month
rate
bills U
V
4.00
4.50
4.50
4.50
4.50
4.50
4.00
4.50

5.00
5.00
5.00
5.00

|
|

Yields
6-month
bills 2/

|
I

3-5 year
issues U

Spread between yields on
O —. —. L 4 1 1 c 'q n/1 \ri ol Hq OH
6-mo. bills 13-5 yr. issues

4.59(1/8/60) 5.07(1/8/60) 5.00(12/24/59)
4.90
4.66
4.47
4.86
4.92
4.80
5.83(9/2)
5.92(9/23)
5.52(9/23)
4.80(4/8)
4.53(6/24)
4.39(6/24)
4.99(12/29) 5.50(12/15) 5.80(11/10)
4.36(4/7)
3.74(6/2)
3.41(6/9)
r/5.25/
5.25
5.14
5.20
5.35

5.43
5.36
5.32
5.29
5-40

Preliminary, r/ Revised.




-9-

1.81
.43
.06
.78
.01
1.61
.02

r/.18
5.89
~ .11
5.77
.18
5.77
.09
5.53
.05
5.48
at the Federal Reserve ban* or

2/ MarketTyield; weekly averages computed from daily closing bid prices.

2/

.79
.19
.12 .
.52
-09
.
.62
.01

Series of 3-5

.64
.52
.63
.33

EXHIBIT

D, Port

1

S H O R T - A N D I N T E R M E D I A T E - T E R M 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 S

PRIME RATE
FINANCE C O M P A N Y PAPER
Directly p l a c e d
3-6 Months




i~\'

!_
/—\

L_

•

/^"

DISCOUNT RATE
FEDERAL FUNDS

1964

1965

1967

Exhibit D —

Date

Prime rate 1/

Part II

Finance
company
paper 2/

Spread between
3-mo. bills and
Federal funds 3/ finance co. paper

(per cent)
1959-60 - High
Year end- 1964
1965
1966
1966 - Low
1967 - High
Low

5.00
4.50
5.00
6.00
5.00(3/4)
6.00(12/29)
5.50(12/1)

5.13(1/22/60)
4.06
4.75
5.88
4.75(1/7)
5.75(1/6)
4.38(6/23)

4.00(5/13/60)
4.00
4.63
5.63
3.55(1/21)
5.25(1/6)
3.40(10/27)

1.02
.23
.28
1.08
.20
1.33
.21

.25
4.62
5.50
6.00
15
.25
5.15
5.50
22
6.00
.26
5.35
5.50
6.00
29
,.30
5.73
5.50
6.00
Apr. 5
12p/ 6.00
5.50
5.58
.15
1/ Weekly rate shown is that in effect at end of period. Prime rate is that
charged by large banks on short-term loans to business borrowers of the highest
credit 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 effective rate, which is the rate for the heaviest
volume of purchase and sale transactions as reported to the Federal Reserve
Bank of New York.
Note.-Highs and lows are for individual series and may be on different dates for
different series. For spreads, high refers to widest, and low to narrowest.
£/ Preliminary, r / Revised.




-11-

EXHIBIT

E, Pari 1

STOCK MARKET
Billions

of

dollars

PRICES

STOCK MARKET CREDIT
* CNANCE IN SERIES
Millie**

•»

14

YIELDS

1963



1964

1965

1967

Exhibit E —

Stock price
index 1/

Date

Part II

St-nr.k market customer credit
Trading
Common
Bank
Customers'
volume 3/
stock
debit bal- loans to
Total
yields 2/ (millions
"others"5/
ances 4/
of shares)
er cent)
(In millions of dollars)

1961-62 - High
Low
1966 - High
Low
1967 - High
Low

72.04(12/8/61)
52.68(6/22/62)
93.77(2/11)
73.20(10/7)
97.26(10/6)
82.18(1/6)

2.82
3.96
3.01
3.97
3.01
3.58

10.1
2.4
10.7
5.0
12.3
6.9

1968 - Feb.
Mar.

90.75
89.09

3.28
3.34

9.2
9.2

5,602(12/61) 4,259(12/61) 1,418(5/9/62)
3,253(1/61) 1,161(3/8/61)
4,424(1/61)
5,835
2,241(7/6)
7,997
5,169
2,097(12/14)
7,302
10,347(12/67) 7,883(12/67) 2,507(11/1)
5,290(1/67) 2,055(1/25)
7,345(1/6)
9,802.
n. a.

7,381
n.a.

2,421
2,374

2,374
n.a.
n.a.
8.3
3.31
90.20
29
r/2,350
n.a.
n. a.
15.6
3.20
93.29
5
n.a.
n. a.
15.9
3.09
12p/ 96.53
n.a. Not Available. £/ Preliminary, r/ Revised.
1/ Standard and Poor's composite index of 500 common stocks, weekly closing prices, 1941-43-10.
~~ Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are
for Friday's data only.
.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing
prices by Federal Reserve. Yields shown are for dates on which price index reached its high
or low.
3/ Averages of daily trading volume on the New York Stock Exchange. Year-end figures are averages
~~ of daily figures for the year.
.
4/ End of month figures for member firms of the New York Stock Exchange which carry margin accounts
excludes balances secured by U. S. Government obligations.
5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
~™ U.S. Government securities. Weekly reporting banks account for about 70 per cent of loans to
others. For further detail see Bulletin.
Apr.




-13-

V
MORTGAGE AND I O U D

YIELDS ^

HOME MORTGAGES:

Aaa C O R P O R A T E BONDS:

1959

1960

1961




1962

1963

1964

1965

1966

1967

1968

Exhibit F
Conventional
mort25-year 30-year gages 3/
FHA
2/
mortgages —'

1957
1958
1959-60
1961-66
1966
1967

1967
1968
Tr

2/

3/

4/
5/
6/

-

High
Low
High
Low
High
High
Low

- Oct.
Nov.
Dec.
- Jan.
Feb.

5.63
5.35
6.24
5.43
6.73

n.a. •
n.a.
n.a;
n.a.

Part II

Spread be- • Aaa Corporate
tween yields
Bonds
on conv. &
6/
Seasoned"
NeJ
FHA mort-y
gages

Spread between
yields on new corporatd bonds and
FHA ml
itigs. Seasoned
4/
bonds
1.58
.88'
1.6<i

1.03
.05
.73

5.44
6.81
6.81
6.29

6.00
5.55
6.30
5.80
6.70
6.65
6.40

.47
.15
.23
.25
.30
.11
-.12

4.94
3.65
5.25
4.12
5.82
6.53
5.20

4.12
3.57
4.61
4.19
5.49
6.07
5.03

i.i]
1.26
.24

.46
.46
.17

6.65
6.77
6.81
6.81
6.78

6.55
6.65
6.70
6.75
6.75

-.10
-.12
-.11
-.06
-.03

6.12
6.53
6.51
6.24
6.29

5.82
6.07
6.19
6.17
6.10

.53
.24
.30
.57
.49

.30
.46
.32
.07
.19

.r

-.16

Neither mortgage nor bond yields take into account servicing costs which are much
higher for mortgages than bonds. Generally, bonds pay interest semi-annually;
mortgages, monthly. Mortgage yields, if.computed as equivalent to a semi-annual
i interest investment, would be slightly higher than given in the table.
'Based on FHA-fieId-office opinions about average bid prices in the private secondary
market for new-home mortgages for immediate delivery. Separate data available for
25-year and—beginning July 1961—30-year mortgages with minimum downpayjnents,
weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgages.
Over the period for which they can be compared, the movement of the two mortgage
yield series has been similar. Dashed lines indicate periods of adjustment to
changes in contractual interest rates.
I
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional
Beginning
first mortgages prevailing in the market areas of insuring office cities
with April 1960, rate relates only to new-home mortgages; prior to that date, rate
related to both new as well as existing-home mortgages. Dashed line ind icates this
change in the series.
FHA mortgage yield data are for 25-year mortgages through June 1961; 30-jyear mortgages thereafter.
See note for Exhibit G.
Moody's Investor Service. Monthly averages of daily data. See Exhibit A.




-WA

EXHIBIT F. Pari HI

C O N V E N T I O N A L M O R T G A G E TERMS

V

MATURITY

NEW
EXISTING

LOAN/PRICE

RATIO

NEW
EXISTING

1966

1964




1968
* CHANGE IN SERIES

IV

Exhibit F

Con- Fees &
tract Charges
Rate
(Per
(Per
cent)
cent)
2/

Part IV

*

New Homes
EffecLoan/
Con- Fees &
tive Maturity Price Loan
tract Charges
Rate
(Years) Ratio Amt.
Rate
(Per
(Per
($000) (Per cent)
3/
cent)
2/
cent)

19676.45
6.39
6.34
6.31
6.25
6.23
6.31
6.28
6.31
6.34
6.33
6.41

0.91
0.89
0.82
0.77
0.77
0.76
0.77
0.78
0.78
0.82
0.76
0.84

6.59
6.54
6.47
6.43
6.37
6.35
6.43
6.40
6.44
6.47
6.45
6.54

73.8
25.1
25.1
73.6
24.6
72.8
73.2
24.8
25.3
74.0
25.2
74.0
25.2
73.9
25.2
73.7
25.3
74.2
25.4 , 73.8
25.3
73.4
72.7
25.4

20.2 6.60
19.6 6.50
19.4 6.44
19.8 6.34
20.4 6.29
20.8 6.28
21.0 6.30
21.0 6.34
21.4 6.36
21.2 6.39
21.2 6.42
21.5 6.51

0.87
0.77
0.78
0.74
0.70
0.67
0.70
0.72
0.73
0.78
0.77
0.83

1968Jan. r> 6.39
Feb. £> 6.46

0.86
0.93

6.52
6.61

25.4
25.6

21.7
22.2

0.80

Jan. r/
Feb.
Mar.
Apr.
May
Jme
July
Aug.
Sept.
Oct.
Nov.
Dec.

72.9
74.4

6.57
6.57

0.82

Existing Homes
Loan/
Effective Maturity Price Loan
Rate
(Years) Ratio Amt.
(Per
($000)
cent)
J L

6.47
6.52
6.55
6.64

21.6
21.7
22.5
22.3
22.3
22.8
22.7
22.8
22.5
22.5
22.7
23.1

71.7
72.0
72.5
72.6
72.7
72.5
72.9
73.4
72.7
73.0
72.9
73.1

16.2
16.3
17.0
17.2
17.5
18.2
18.1
18.1
17.4
17.3
18.3
18.4

6.70
6.70

22.7
22.6

73.7,
73.4

18.4
18.1

6.74
6.63
6.56
6.46
6.40
6.39
6.41

6.46

• Notes New series beginning 1965 as shown in table; related revision of chart is pending,
r/ Revised.
"1/ Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender groups,
(including mortgage companies) for purchase of single family homes. Data exclude loans
for refinancing, reconditioning, or modernization; construction loans to home-builders;
and—in this exhibit—permanent loans which are coupled with construction ljoans to
owner-builders. Data prior to 1965 on a comparable basis with the new series are pending. Related series on conventional mortgage rates only, based on unweighted opinions
of regional-office directors of the Federal Housing Administration, are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included^-in the case
of new home mortgage rates—in Exhibit F Parts I and II.
j
2f Fees and charges—expressed as a percentage of the principal mortgage amount—include
loan commissions, fees, discounts, and other charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs relate! solely to
transfer of property ownership.
3/ Includes fees & charges amortized over a 10 year period in addition to the Contract
interest rate.




(1

EXHIBIT

G, Part 1

Y I E L D S O N N E W A N D SEASONED C O R P O R A T E B O N D S
1.9

Adjusted to

Aoo

Basil

NEW ISSUES

1.1

9.9

9.1

SEASONED All

4.9

4.0

1964



1965

1966

1967

1968

Exhibit G - II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis

Number
of

Number |Am't. of issues Average
yield
of
included (mill,
(per cent)
issues
of dollars)

Am't. of issues Average
yield
included (mill.
(ner cent)
of dollars)

Monthly averages:
1968 - Jan
Feb.
Mar.

13
13
10

567.0
564.5
350.0

6.24
6.29
6.56

76.0
237.0
205.0
42.5

6.21

70.0

6.48

85.0
135.0
130.0

6.44
6.58
6.64

1

50.0

1

25.0

6.58
6.41

Feb.

Mar.
8
15

2

4

12

29

4

Apr.
12 g/

— B W f

Weekly averages:
High
Low
Note

6.64(3/29/68)
6.18(1/12/68
,
offering yields on all new issues of

of the offerings included are denoted by an asterisk.




-19-

S.23
6.30
6.29

offered corporate bonds rated Aaa,

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

New Capital

1 # W

Corporate

lW7p/

1966

State and local 2/
1966
1968p/
1967 r/

January:
February
March

2/ 1,689
e/ 1,600
e/ 2,010

1,648
1,399
2,317

1,302
1,237
2,446

1,107
e/1,200
e/1,150

1,482
.1,194
1,439

1,188
858
865

April
Hay
June

e/ 1,550

1,973
1,474
2,611

1,553
1,058
2,364

e/1,150

1,111
1,222
1,497

1,193
901
1,141

July
August
September

2,454
2,407
1,723

1,039
1,670
1,382

943
858
1,324

701
773
1,020

October
November
December

2,289
1,467
2,336

829
1,085
1,635

974
1,424
1,060

755
969
940

5,364
6,058
6,584
6,092

4,985
4,975
4,091
3,550

4,115
3,830
3,125
3,458

2,911
3,235
2,494
2,664

11,421
18,007
24,098

9,959
14,050
17,601

7,945
11,070
14,529

6,146
8,640
11,304

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

e/ 5,299

1st half
Three quarters
Year

/

e/ 3,457

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

Quarter
Quarter
Quarter
Quarter

Year
e/
p/
1/
2/
3/

5,207
5,913
6,338
5,657

4,924
4,884
3,969
3,188

23,115

17,269

Estimated by Federal Reserve.
Preliminary, r/ Revised.
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.




-20-

i

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

1966 - IV

Net proceeds
Gross proceeds for new capital
and refunding 1/
for new capital 1 / 2 /
Total
Bono s.
Common Memo:
I
Publicly Privately and
Foreign Mfg. Public Communi- Other
Offered Placed
pfd. Issues
Utility cations Issuers
stock included
3,669
2 ,047
1,247
375
117
1,232
984
417
918

1967 - I
II
III
IV

5,464
6,208
6,833
6,294

3 ,263
4 ,017
4,604
3 ,107

1,811
1,465
1,551
2,137

390
726
678
1,051

60
65
234
93

2,442
997
3,014 1,268
2,792 1,219
2,527 1,255

543
548
.595
269

1,382
1,228
1,976
2,040

Ie/

5,472

2 ,418

2,128

926

16

1,790 1,443

2,362
2,016
1,519
2,673
2,589
2,481
1,763
2,409
1,500
2,385

1 ,618
1 ,368
965
1 ,684
1 ,889
1 .,813
902
1. ,375
645
1 ,,087

601
410
396
659
486
418
647
566
551
1,020

143
238
158
330
214
250
214
469
304
278

15
16
32
17
213 ^
13
8
34
19
40

. 1968 - Jan. 1,757
Feb".— 1,655
Mar. e,'2,060

903
755
760

528
700
900

326
200
400

16
n. a.
n.a.

Quarter
or
Month

1968

1967 - Mar.
Apr.
May
June .
July
Aug.
Sept.
-Oct.
Nov.
Dec.

332

1,734

1,254
1,128
, 588
1,298
925
1,229
637
906
512
1,109

503
394
403
471
446
509
265
573
404
278

145 1
107
91
350
39
356
200
119
82
68

415
343
393
492
1,044
313
619
690 •
469
881

530
460
800

418
540
485

182
125
25

£/ Preliminary, e/ Estimated by Federal Reserve, r/ Revised.
1/ Gross proceeds exceed net proceeds by the cost of flotation.
2/ For total see Exhibit H; other issuers are extractive, railroad and other
transportation, real estate and finance, and commercial and other.
SOURCE: Securities and Exchange Commission.




-21-

559
475
700

Exhibit J
Other Security Offerings
(In millions of dollars)
Gross Long-term 1/
Foreign Government 2/
Federal Agency 3/
196b
1967
1968 p/
1966
1968 £/
1967
January
FebruaryMarch
April
May
June
July
August ' ,
September
October
November
December

124

Year

223
27
13
170
22
586
193
66
142
18

12
40
40
66
69
76
72
7
50
23
74
68

1,656

597

—

Year

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

196

-

999

__

1,251
783
750
650
810
650
407
250
599
708
710
612

503
410
392
699
1,030
1,084
799
400
450
800
239

8,180

6,806

New short-term 4/
State and local Government 5/
Federal Agency
179
103
490
-179
300E/
387
39
436
-552
72£/
-594
-319
-454
827
580"
-559
515
462
109
-128
-334
93
219
-103
-158
593
270
-262
200
-161
1,407
464
-48
606
50
503 ,
573
-570
36
-378

„

2,334

422

660

3/
308
-24
450
718
85
284
-590
-270
-652
-555
-283
219
310

j>/ 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,
are included. Long-term securities are defined as those maturing in more than one year.
2/ Includes securities offered in the U.S. by foreign governments and their political
subdividions and international organizations. Source; Securities and Exchange Commission.
3/ Issues not guaranteed by U.S. government. Source: Long-term, Securities and 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 & Federal
Reserve.
oo




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

Totsl

1967 • Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
1968
Feb.
Mar.

Cfliwntf
Bonds
Convertible
(other thsn
convertibles)
bonds
1,435
956
771
1,072
890
1,288
473
897
461
460
652
575
415

1,638
1,311
870
1,666
1,340
1,705
794
1,458
826
978
904
757
788

Stocks

, 140
213
55
409
317
350.
257
285
150
437
168
105
135

State
and
local
governments

63
142
44 ,
185
133
67
65
276
215
81
85
77
238

669
512
496
875
483
473
847
505
865
633
785
591
736

Other

1,000
540
391
825
85
221
400
50
845
627
1,095
389
1,030

Large Individual Issues Offered April 1 through April 12.
Issuer

Type 2/

Amount
(millions
of
dollars)

Keystone Steel & Wire Co. S.F. debs.
New Jersey Bell Tel. Co.
Debs,
Conv,, sub. debs.
Sundstrand Corp.
Com. stk.
Southland Corp.
Conv,, debs.
Indian Head, Inc.
1st mtg.Sc coll.
Potomac Edison Co.
tr. bds.

Haturity

Coupon
rate or
net interest cost

Offe?
ing
yield

Rating

7.2

30.0
50.0
30.0
18.4
25.0

1993
2008
1993

7-1/4
6-5/8
5

6.6

5.0

Baa
Aaa
Ba

1993

5-1/2

5.5

B

25.0

1998

7.00

6.8

A

21.3
10.5

19691969-

4.07
4.06

3.50-4.10
3.40-4.10

Aa
Aa

25.0
13.9

19691969-

4.55
5.13

3.60 5.25
3.90-15.25

A

26.0

1998

State & local Government
San Francisco, Calif.
G.O.
San Francisco, Calif.
G.O.
Washington Suburban Sani.
Rev.-Ut.
Dist., Maryland
G.O.
Detroit, Michigan
California Dept. of Water
Resources
Rev. -Rent.
•




-23-

Baa
A-1

U

I

K-2
Large Individual Issues Offered April 1 through April 12.

Issuer

Type 3/

Amount
(millions
of

Maturity

dollars)

Coupon
rate or
net interest cost

Offering
yield

Rating

5.20

A-l

State & local Govt,
(continued)
Calif. Dept. of Water
Resources
Rev.-Rent.
Calif. Dept. of Water
Resources
Rev.-Rent.
Penna. State Highway &
Rev.-Rent.
Bridge Auth.
Oakland Co., Michigan
G.O.
Montgomery "Co., Pa.
G.O.
Calcasieu Parish, La.
Rev. -Rent.
State .of Rhode Island
G.O.
San Diego Unif. Sch.
Dist., Calif.
G.O.
Sap. Francisco B.A.R.T. G.O.

101.0

2018

23.0

1972-1988

5.20

4.00-4.80 A-l

75.0
16.9

1968-1989
1972-2002
1969-1983
1984
1970-1988

4.48
4.94
3.94
5-5/8
4.10

3.90-5.05
3.90-5.00
3.40-3.95
4.50-5.10
3.60-4-1/8

1971-1990
1972-1999

4.27
4.48

3.75-4.30,/A-l
3.75-4.60- Aa

1970

6.00

5.95

11.0

12.5
15.1

10.0
70.0

Other
Federal Home Loan
Bank Board
*

1/
y

1/

4/

Bonds

225.0

Rights offering, n.a. - Not available.
Includes corporate and other security offerings of $15 million and over;
State, and local security offerings of $10.million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal Agencies.
In the case of State and local Government Securities, G.O. denotes general
obligation; Rev.-Ut., revenue obligations secured only by income from public
utilities; Rev. -K).-Ut., revenue bonds secured only by income from quasiutilities; Rev.-S.T., revenue bonds secured by revenue from specific taxes .
only; Rev.-Rent., revenue bonds secured solely by lease payments.
Bonds due 1998-1999 were not reoffered.




-24-

Aa
A-l
Aa
Baa
A-l

H. 14
Exhibit L
Forthcoming Largo Long-term Public Security Offering for New Capital
(Other than U.S. Treaaury)
Expected Proceeda from Forthcoming Large Iaauea
(In milliona of dollera)
During month following
date shown
State and
Corporate
Other If
local govt.
1967 -Mar. 31
Apr. 30
May
31
June 30
July 31
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 31
1968 - Jan. 31
Feb. 29
Mar. 31

767
963
1,449
1,636
1,261
694
534
1,357
826
968
531
873
758

227
326
596
401
512
783
768
505
865
633
449
683
494

Corporate
905
1,262
2,065
1,922
1,576
1,335
1,090
2,694
2,129
1,892
736
1,105
935

70
100
40
--

100
65
50
845
402
60
130
15

Subsequent to
date ehown
State and 1
local govt

Other 2/
15. 85
115
70
150
159
126
260
875
• 502
75
265
125

247
346
616
402
575
903
889
743
1,684
1,076
937
1,079
624

Forthcoming Large Offerings as of April 12, 1968.

Corporate

Amount
(millions
of
dollars)

Type

Issuer

Approximate date of

5

General Tel. of the Southwest
Allied Chemical
Sears,Roebuck Inc.
Graphic Sciences
Collins Radio Co.
Fidelity Corp.
Massachusetts Electric Co.
Bell Tel. of Pennsylvania
*Lucky Stores Inc.
Universal Oil Products Co.
Dial Finance Co.
Indiana & Michigan Electric Co.
Indiana & Michigan Electric Co.
National Aviation Corp.
Columbia Gas System
Chase Manhattan Bank
^Consumers Power Co.
*E1 Paso Electric Co.
•Commonwealth Edison




1st mtg. bds.
Debs.
S.F. debs.
Conv. debs.
Debs.
Conv. debs.
1st mtg. bds.
Debs.
Conv. debs.
S.F. debs.
Debs.
S.F. debs.
1st mtg. bds.
Com stk.
Debs.
Conv. cap. notes
1st mtg. bds.
1st mtg. bds.
1st mtg. bds

25.0

100.0
100.0
15.0
35.0
16.0

20.0

100.0
28.0

15
16
16 (rts.exp.)
16

AprJ[l 23

25.0
25i0
15.0
35.0

24.2

50.0
150.0
55.0

16.0

-25-

50.0

30(rtB,exp.)

L-2
Forthcoming Large Offerings as of April 12, 1968.

|

Issuer

Type

Amount
(millions^4-Approximate date of
of
offering
dollars)

Corporate (continued)
*Northern States Power Co.
^Northern States Power Co.
^Chesapeake & Potomac Tel. Co. of
Virginia
SCM
*Wisconsin Electric Power Co.
National Equipment Rental Ltd.
Illinois Bell Telephone
Montana Power
Piedmont Aviation
Duke Power Co.
*LTV Ling-Altec Inc. ,
*Monongahela Power Co.
*Dow Chemical Co.

1st mtg. bds.
Pfd. stk.
Debs.
Conv. debs.
1st mtg. bds.
Conv. sub. debs.
Com stk.
1st mtg. bds.
Conv. debs.
Cum. pfd. stk.
Sub. deb. w./wts.
1st mtg. bds.
Com stk.

45.0
20.0
70.0
41.5
35.0
25.0
83.0
30.0
15.0
35.0
15.0
20.0
100.0

May 13
May 13
May 14
,
May 14(rts. exp.)
May 15
Indefinite
Indefinite (rts. ear
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

State and local Government
*New York City
Los Angeles Dept. of Airports
Vermont (Montpelier)
Vermont (Montpelier)
San Diego, Calif.
*PueTto Rico Water Resources Auth.
Houston Ind. Sch. Dist.
^Baltimore, Md.
Cleveland, Ohio
Kansas City, Mo.
*East Baton Rouge Parish, La.
*Los Angeles Flood Control Dist.
*Jefferson, La., Parish-wide
Sch. Dist.
*Detroit, Michigan
*Buffalo, New York
Kentucky Turnpike Auth.

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

98.1
35.0
12.0
13.0
10.0
38.0
14.0
16.0
27.1
10.0
21.0
25.0
15.0
32.0
13.3
120.0

April
April
April
April
April
April
April
April
April
May 1
May 7
May 7

16
17
18
18
18
22
23
24
30

May 8
May 14
May 16
Indefinite

Other
Jamaica, Government of
Lakehead Pipeline
New Brunswick Higher Ed. Comm,,
-Canada
Providence of Quebec




S.F. loan bonds
S.F. debs.

15.0
75.0

April 15
April 16

S.F. debs.
Debs.

20.0
50.0

April 17
April 18

-26-

L-3

FOOTNOTES:
*—Included in table for first time.
_
local
1/ Includes corporate and other issues of $15 million and over; State
~~ Government issues of $10 million and over.
.
,
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.




-27-

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

Sale Date

Mount
(millions
of
dollars)

Public Offerings

Issuer and Description of Issue
A.

Sold: Jan. 1 through Apr. 12, 1968.

1/11

60.0

Quebec Hydro - Electric Commission 6-7/8%
debentures maturing 1989, reoffered to
yield 7.00%.

1/23

35.0

Province of Nova Scotia — 7% S.F. debentures
maturing 1993* reoffered to yield 7.10%.

2/1

15.0

New Brunswick Electric Power Commission m6-7/8% S.F. debentures maturing 1993,
reoffered to yield 7.00%.

2/13

25.0

Montreal, Canada—7-1/8% s.F. debentures
maturing 1988, reoffered to yield 7.06%.

2/20

20.0

Canadian Pacific Railway -- 6.90% equipment
trust certificates — maturing March 1, 1983;
reoffered to yield 6.90%.

3/28

150.0

Indefinite
4/16 ;
4/15

15.0
75.0
15.0

4?18

50.0

International Nickel Company-- Debentures
maturing 1993, reoffered to yield 6.85%.
B. Prospective Offerings

20.0
-

New Zealand — Bonds ***
'Lakehead Pipeline
Government of Jamaica -- S.F. loan bonds
New.Brunswick Higher Ed. Comm., Canada

* Province of Qupher - Pefrg.

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




-28-

M-2
PART II:

Private Placements - Reported January 1 through April 12, 1968

Date Reported

Amount
(millions
of
dollars)

Issuer and Description of Issue

1/1/68

1.5

Nicaraguan Hotel Co. « U.S. guarfinteed
67o note, maturing June 1, 1987.

1/8/68

12.0

Republic of Portugal -- notes due 1968.

1/15/68

7.0

Home Oil Co. Ltd. (Canada) -- Secjired
15 year bonds.

2/5/68

1.5

Caribbean Finance Co. (Puerto Ricja) Senior
notes due 1/15/80.

2/26/68

6.0

Aluminio, S.A. de C.V. (Mexico) uls.
debentures — 7-1/2%, maturing 1980,

3/1/68

12.0

Edmonton (City of Alberta, Canada]
U.S. 6-3/4% debentures maturing Jan., 1993.

3/15/68

35.0

Mexico - (United Mexican States) laxternal
7-1/4% bonds due 3/1/73.

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 latter
includes privately placed securities in the period in which funds are actually taken down
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 takedown.
Full or partial takedown may take place both prior and subsequent to the date a placement
is reported.




-29 ~

V