Full text of H.16 Capital Market Developments : April 19, 1965

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Not for Publication

DECONTROLLED AFTER SIX MONTHS
April 19, 1965.

-r, 1965
/.is-v '• •

\ CAPITAL MARKETS DEVELOPMENTS
IN THE UNITED STATES
(Including Tables on Financial Intermediaries
in January)

Corporate and municipal bond markets. Public security
financing by corporations this week will be sharply larger than last
week's modest total, with one-half of the expected volume accounted
for by a $50 million debenture offering of Tenneco Corporation.
New
municipal financing, on the other hand, will be in appreciably smaller
volume than last week and one-third less than the weekly average over
the past year. Also expected to be offered this week, but not included in the table below, is a $15 million bond issue of the Government
of Venezuela.
Long-Term Public Security Offerings 1/
Corporate
New Capital | Refunding

State & Local Govt.
New Capital | Refunding

Sold:
52 week avg.
April 9
April 16

90

1

183

198 r/
20

107 r/
241

100

116

10
4 r/

Scheduled:
April 23

1/ Federal Reserve estimates based on published reports of issues sold
and scheduled for offering; corporate rights offerings are included
as of the date subscription rights expire.
Although there were no new corporate bond issues marketed
last week, dealers made very little progress in distributing the unsold portions of six recent offerings still in syndicate. Late in the we
they terminated the price restrictions on the oldest of the issues-the March 17, $16.8 million Carolina, Clinchfield and Ohio Railroad
Company offering—with about three-fourths of the issue still unsold.
Despite the rather sluggish demand for the $125 million
issue of New York City and most other new municipal offerings last week,
yields on seasoned, Aaa-rated bonds were stable for the sixth consecutive
week. Only about one-half of last week's new supply of municipals was
sold by week's end. Dealers' advertised inventories of unsold securities
were up over $50 million on the week; in fact, this increase was understated since a large part of the unsold New York City issue was not
advertised.




-2-

H.14
Yields in Securities Markets
Level latest week
(per cent)

High-Grade
Notes and Bonds
Corporate
New
Seasoned

—
4.42

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

4.14
4.11

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

3.09
3.17

Money Market
Federal Funds
Treasury Bills
3-month
6-month

Change from
preceding week
(basis points)

4.12

+ 2

3.93
4.00

+ 2

Corporate Bonds Still in Syndicate
Da::;
Offered

Amount
(millions of $)

Issue

Reoffering
yield

Rating

Estimated Proportion sold

3/18

20.0

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

4.50

A

1/2

3/25

20.0

Brooklyn Union Gas
4-5/8 's - 90

4.50

A

1/3

4/1

25.0

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

4.51

A

2/3

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

4.46

4/7

35.0

4/8

25.0

|
Aa

2/3
|

Arkansas Pwr. & Lt.
4.52
A
9/10
4-5/8 's - 95
Blue List of Municipal Dealers' Advertised Inventories
(In millions of dollars)
Latest Date




$752 (4/15)

End of Previous Week
$698

Recent High
$831 (3/8)

>
|
%
|

H. 14

-3-

Mortgage yields and conventional interest rates. Secondary
market yields on FHA -insured, 30-year mortgages continued at 5.45
per cent, maintaining a level that has persisted virtually unchanged
for two years. Contract interest rates for conventional first mortgages
on homes also remained unchanged-. The average for new home loans was
5.80 per cent; for existing home loans, it was 5.85 per cent, according
to the Federal Housing Administration.
While loan amounts and other nonrate; terms were generally
more liberal in February than a year earlier, they continued somewhat
less liberal than more recently, according to data now available from
the Federal Home Loan Bank Board. A similar pattern appeared for
loans on existing homes, except in the case of loan-to-price ratios
which rose to a record high in February.
Stock prices. Closing at 88.15 on April 15, common stock
prices (as measured by Standard and Poor's composite index of 500
stocks) were up one-half of one per cent on balance for the week and
only slightly below the all-time high reached the previous day.
Trading volume averaged 6.3 million shares & day, 1.0 million shares
more than the average for the previous week.
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.




EXHIBIT A, P a . I I
lONO-TlljM

BOND

YIELDS,

HIGH - O K A P I

Weekly

f e r cent

XV ^ X - x ^

Exhibit A

Date

Corporate
Aaa U

U. S. Govt.
long-term 2/

4.61(3/29/60)
4.46(9/13/61)
4.19(3/26/63)
4.45 (12/11)
4.35 (vaa)
4.44(1/8)
4.41(3/12)

4.42 ( V W h

4.42
4.42
4.42
4.42
4.43 /

Part II

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

- High
- High
- Low
- High
Low
1965 - High
Low

Mar.
Mar.
Apr.
Apr.
^Apr.

19
26
2
9
16 £/

State and
local
government
Aaa 3/

Spread between
U. S. Gm zt. and
Corporate State and
Aa«
local Aaa

3.85 (12/28/62)
4.20 (4/17)
4.11 (1V20)
4.16(3/12)
4.13(1/29)

3.37(7/6/61)
2.88(13/8/62)
3.16(3/26)
2.99(12/31)
3.09(4/15)
2.94(2/11)

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

.92
1.04
.80
1.14
1.01
1.22
1.05

4.14
4.14
4.14
4.14
4.14-/

3.09
3.09
3.09
3.09
3.09

.28
.28
.28
.28
.29

1.05
1.05
1.05
1.05
1.05

4.12 W O / 6 2 )

3.65(9/24/59)

y
Weekly average of daily figures. Average term of bonds included is 22-24 years,
y
Weekly average of daily figures. T h e series includes bonds due o r callable in 10 yetrs o r m o r e .
V Thursday figures# Only general obligation bonds are included) average term is 2 0 years.
R o t e * — a i g h s and lows are f o r individual series and m a y be on different dates f o r different
series. F o r spreads, h i g h refers to w i d e s t , a n d low to narrowest*




IX H I H I »• fori \
LONG-TERM

BOND

YIELDS,

LOWER

GRADE

-L.COMOHAT I loV

~Exhibit B -- Part II~

Corporate
Baa 1/

Da te

1959-60 - High
Year end - 1961
1962
1963
1964
1965 - High
Low
Mar.
Mar.
Apr.
Apr.
/Apr.
Note*

Spread between
Aaa and Baa
State and
Corpora te
local govt.

5.36 (Z/12/60)
5.10
4.93
4.85
4.80
4.80(4/16)
4.78(3/19)

4.46 (3/7/60)
4.04
3.57
3.60
3.51
3.51(4/15)
3.40(2/11)

.84
.66
.70
.48
.37
.38
.36

1.08
.73
.63
.49
.52
.52
.41

4.78
4.79
4.79
4.79
4.80 /

3.51
3.51
3.51
3.51
3.51

.36
.37
.37
.38
.37

.42
.42
.42
.42
.42

19
26
2
9
16 £>/

For footnotes

State and
local govt.
Baa 3/
(per cent)

see E x h i b i t A..




EXHIBIT C. P o r t I
SHORT-

AND

INTERMEDIATE-TERM

INTEREST

RATES

GOVERNMENT

"

*0

Da te

Exhibit C — Part II
Discount
ra te 3-month
bill# 2/
1/

Spread between yielda on 3Yielda
6-month
1 3-5 year month billa and vlelda on
billa 2/ I ieauea 2/ 6-mo. billal3-5 vr. issues
(per cent)

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

4.00
3.00
3.00
3.50
4.00
4.00
4.00

4.59(3/9/60)
2.66
2.89
3.52
3.83
3.99(2/26)
3.80(1/8)

5.07(3/8/60)
2.90
2.93
3.64
3.93
4.04(2/26)
3,92(1/8)

5.00(l%/24&*)
3.81
3.41
4.07
4.07
4.13(3/12)
4.04(1/22)

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

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

Mar. 19
Mar. 26
Apr. 2
Apr. 9
/ Apr. 16 £/

4.00
4.00
4.00
4.00
4.00

3.92
3.91
3.92
3.93
1.93/

3.99
3.98
3.99
3.98
4.00 ^

4.11
4.10
4.11
4.11
4.11

.07
.07
.07
.05
.07

.19
.19
.19
.18
.18

Weekly rate shown le that in effect at end o f period at the Federal Reserve Bank of M e w Yotfc,
Market yield; weekly average# computed f r e e dally olosiag tdd prioes, Series of 3 - 8 y e a r issues
consists of selected notes and bonds*
N o t e • — S i g h s and lows are f o r individual series and m a y be on different dates for different series.
F o r spreads, high refers t o w i d e s t , and low to narrowest.




EXHIBIT 0, foil I
SHORTRANKS

ANDJNTERMIDIATEAND

OTHER

PRIVATE

TERM I N T I R I S T

RATES,

BORROWERS

Exhibit D -- Part II

Date

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

Mar. 19
Mar. 26
Apr.
2
Apr. 9
Apr. 16 £/

y

Prime rate 1/

Finance
company
Federal funds 3/
paper 2/
(per cent)

5.00
4.50
4.50
4.50
. 4.50
4.50
4.50

5.13 [1/22/60)
3.00
3.19
3.88
4.06
4.25(4/16)
4.00(2/12)

2.88
3.00
3.50
4.00
4.12(4/16)
3.88(2/26)

4.25
4.25
4.25
4.25
4.25

4.08
4.08
4.05
4.10
4.12

4.50
4.50
4.50
4.50
4.50

4.00 (5/13/60)

Spread between
3-mo. bills and
finance co. paper
1.02
.34
.30
.36
.23
.34
.10
.33
.34
.33
.32
.32

Average of daily ratea published by finance companies for directly placed paper for varying
maturities in the 90-179 day range.
^

f




^

purch

- -

•?

«0

c HANOI IN IIIHII
Willi.„«.» .hjjj

I I I I I I I I I I I
Exhibit E -- Part II

Common
Stock price
index 1/

Date

yields 2/
foer cent)

Trading
volume 3/
(millions
of shares)

Stock mar ket customer credit
Bank
Customers 1
loans to
debit bal"others" 5/
ances 4/

Total

(In millions of dollars)
1961-62 - High
Low
Year end
1963
1964
1965

- High
Low

Feb.
Mar.
Apr.
2
Apr.
9
A p r . 16 g /

72.04(12/8/61)
52.68(6/22/62)

2.80
3.96

10.1
2.4

74.44
84.75

3.13
3.02

88.15 (4/16)
85.37(1/8)

2.95
3.02

4.7
4.7
6.4

86.75
86.83
86.53
87.56
88.15

2.99
2.99
3.01
2.97
2.95

4.7
5.9
5.4
4.7
5.3
6.3

5,60% is/el) 4,259(1^/61)
4,424(]/6l) 3,253(1/61)
7,242
7.553
6,940
1
6,872
'

5,515
5.099
5,007
4,986

6,872
'

5,007

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

1,418(5/9/62)
1,161(3/8/61)
1,727
1.974
1,962(1/20)
1,848(3/3)
1,860
1,886
1,886
1,895

":.a *

Standard and Poor's composite index of 500 eonoon stock#, weekly olosing prices, 1941r-43«10.
Monthly data are averages of daily figures rather than of FxldayU only. Highs and lows are far
Friday's data only.
2f Standard and Poor's oon?>osite stock yield based on Wednesday data converted to weekly closing
prices by Federal Reserve, "Sells shewn are for dates on which price index reached its high
3/ Averages of dally trading volume on the Hew York Stock Exchange. Yeax*-end figures are averages of
daily figures for the year.
4/ End of month figures for u m b e r firms of the New York Stock Exchange w h l * carry margin accounts|
excludes balances secured by U. S. Government obligations.
5/ Wednesday figures for weekly reporting member banks. Excludes loans for puro ha sing or carrying
U. S. Government securities# Weekly reporting banks account for about 70 per cent of loans to
others. For further detail see Bulletin.




M O R T G A G E A N D B O N D YIELDS

1141

FHA

2/

mortgages

Date

25-vear 30-vear
1956 1957 1958 1959-601961-64-

Low
High
Low
High
High
Low

1964 - N o v e m b e r
December
1965 - January
February
March
5^

£/

3/

4.68
5.63
5.35
6.24
5.72
5.43
5.44
5.43
5.43
5.43
5.43

Conventional
gages
3/

1

Spread beAaa C o r p o r a t e
tween yields
on conv. &
New^
Seasoned—^
25-year FHA
mortgages

Spread b e t w e e n
yields on new corporate bonds and
Seasoned
25-year
FHA mtgs.

5.70
5.45

5.20
6.00
5.55
6.30
5.95
5.80

.47
.47
.15
.23
.38
.23

3.08
4.94
3.65
5.25
4.72
4.12

3.08
4.12
3.57
4.61
4 45
4.22

.76
1.58
.88
1.69
1.50
.94

5.45
5.45
5.45
5.45
5.45

5.80
5.80
5.80
5.80
5.80

.36
.37
.37
.37
.37

4.47
4.42
4.41
4.45

4.43
4.44
4.43
4.41
4.42

. 96
1.01
1.02
.98

1.03
.05
.73
.39
-. 16

.03
.01
-.03

Neither mortgage nor bond yields take into aooount servioing oosts whioh art muoh higher for mortgages
than bonds. Generally, bonds pay Interest semi-annually; mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the
table.
Based on THir>field-offioe opinions about average bid prices in the private secondary market for newthome mortgages for immediate delivery* Separate data available for 25-year and—begining July 1961#—
30-year mortgages with minimum downpayments, weighted by probable volume of transactions . Yields computed by R U , assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year
mortgages. Over the period for Wiioh they can be oon^ared, the movement of the two mortgage yield
series has been similar* Dashed lines indicate periods of ad jus tment to changes in oontzaotual interest
Based on iFA field office opinion on typical interest rates (rounded) on conventional first mortgages
prevailing in the market areas of insuring office cities. Beginning with April 1960, rate relates only
to ne*-homB mortgages; prior to that date, rate related to both new as t » 1 1 as existing-home mortgages.
Dashed line indicates this change in the series,
See note for Exhibit G,
Moody's Investor Service, Monthly averages of daily data. See Exhibit A,

Digitized4/for FRASER
3/


fl
ixHI>

YIELDS O N N I W

"

I

AND SEASONED C O I P O K A T I i O N P S

_W-5j.lv

tw ItiUIS

IE A$ONEO

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

Monthly averages:
1964 - M a y June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Weekly averages

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

Number Am't of issues Average
included (mil. yield
of
issues of dollars) (per cent)
Jan.
10
8
3
4
7
3
3
3
3
7

:

278.0
230.0
60.0
75.0
239.0
70.0

4.46
4.43
4.37
4.39
4.49
4.46

140.0
94.0

4.47
4.42
4.41

111.0
157.8

1964 - High

Low

4.45
4.53(5/8)
4.30(2/21)

1

8
15
22
29
Feb.
5
12
19
26
Mar.
5
12
19
26
Apr.
2
9

16

1

40.0

4.53*

1
1
1
1

14.0
40.0
16.0
60.0

4.39
4.33
4.38
4.42

1
2
2
2

35.0
60.0
41.0
36.8
20.0
25.0
60.0

4.41
4.48
4.48
4.37*
4.42
4.43
4.44

1
1
2

'

ioxoi A v e n g e • oz oizerxag j u i h <n ex#, now m i i w i u* p a s i u j ^ unerea w i y o n w nana*
ah> « h h
A by Moody's Investors Service (except serial sad convertible issues, offerings of natural gas pipeline,
and foreign companies, and bonds guaranteed by the Federal Government) weighted by A s e of offering.
Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual
roof faring yield the excess of the weekly average yield for seasoned tends of the appropriate industryquality group over the eomposite average for seasoned Aas-rated bonds (body's). Averages considered
unrepresentative because of special characteristics of t o offerings included are denoted by an asterisk^




Exhibit H

H. 14

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

1965
January
February
March

fi/801
e/800
e/1,050

April
May
June

e/

Corporate 1/
1964

New Can ltal
1963

State and Local 2/
1965
1963
1964

930
685
754

613
594
1,144

&/800
e/B 00
e/850

2,178
1,069
1,378

930
904
1,013

e/750

July
August
September

780
661
1,109

676
637
795

October
November
December

949
656
1,419

1,013
819
1,415

2,369
4,625
2,550
3,013

2,3)1
2,847
2,109
3,246

6,994
9,544
12,557

5,198
7,307
10,553

1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

950

e/2,651.

1st half
Three quarters
Year

vJ
Rl
£/

947 '
776
810

732
746
976

2/

,242
667
903

869
866
930

t

906
780
892

680
708
449

850
550
950

1,051
729
416

2,533
2,811
2,578
2,350

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

3

e/2,450 £/
£/
£/
e/

B/ 5,3 44
£/ 7,922
e/10,2 72'

5,118
6,955
9,151

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

quarter
quarter
quarter
quarter

e/2,451

Year
£/
1/
2/
3/

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

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

11,332

9,434

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.




'

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

Month
1962 - II
III
IV

3,317
2,167
2,875

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

1963 - I
II
III
IV

2,700
3,634
2,436
3,466

1,108
1,389
898
1,319

1,306
1,820
1,251
1,780

287
424
287
367

1964 - I
II
III
IV

2,499
4,851
2,802
3,311

978
1,321
792
531

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

1

1965 - I

2,823

903

;

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

810
756
871
1,116
891
1,459

1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug;
Sept.
Oct.
Nov,
Dec.'

985
710
805
2,234
1,155
1,461
869
728
1,204
1,032
702
1,577

Quarter
or

Total

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

Public
Utility

Communications

Other
issuers

996
566
747

984
376
552

228
274
317

848
685
945

128
434
109
47

947
591
806
968

326
794
285
530

236
221
150
118

842
1,241
868
1,629

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

1,561

359

n.a.

846

378

171

1,256

279
336
283
511
183
626

431
318
501
481
549
751

100
100
87
125
159
83

46
21
42
10
10
27

297
272
237
240
214
515

107
100
78
201
131
198

86
25
39
41
13
64

187
187
441
531
461
637

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
29 7
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

858
561
163
134
1965 - Jan. &./
296
U
54
396
98
Feb. e/
840
190
500
150
n.a.
200
130
40
430
120
530
Mar. e/ 1.125
500
n.a.
250
150
550
75
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.




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

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

2/218
e/ —
e/ 10

Jan. - Mar.

e/228

Gross long-term 1/
Federal agencv 3/
Foreign government 21
1963
1964
1963
1965
1964
4
82
69
30
75
26
20
13
7
180
72
58
155
636

Year

232
133
76
57
114
11
63
83

E./"
e/130
e/185

148

•
—

—

—

186

275
260
160

459

—
—

.

--

. --

174

509
)

— —•
--

2
441

--

e/315

771

•' 200
'

--

148

--

1,204

1,167

New shoirt-term 4/
State and local government 5/
Federal agencv 3/
January
February
March
April
May
June
July
August
September
October
November
December
Jan. - Mar.

£/230
n.a.
n.a.

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

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

n.a.

-68

-20

•

' -137
i-174
£/ 60

-251

.L
l.

-78
-336
23
97
183
239
-333
167
1
525
113
-3

-106
-189
-482
292
195
319
414
327
258
123
-102
551

-391

-777

453
598
1 .600
692
- Year
i
£/ Preliminary. e/Estimated by Federal Reserve. n.a.-Not available. l/These data differ
from those ip Exhibit H in that refunding issues, as well as new capital issues, are included. Long-term securities are defined as those maturing in more than one year. 2/lncludes securities offered in the U.S. by foreign governments and their political subdivisions arid international organizations. Source: Securities & Exchange Commission.
issues not guaranteed by the U.S. Government. Source: Long-term, Securities & Exchange*
Commission; short-tierm, Treasury Dept. & Federal Reserve. 4/These data differ from theee i,n
Exhibit H and above in that they represent new offerings less retirements, whether front ttip
proceeds or refunding issues or from other funds. Data include only issues with original'
maturing of,one year or less. 5/Principally tax and bond anticipation notes, warrants or
certificates and Public Housing Authority notes. In some instances PHA notes included may
have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal Reserve.




H. 14
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)

Total
1964 - Mar.
Apr.
May
Jtitir
, Aug]
Sept.
Oct.
Nov.
Dec.
1965 - Jan.
Feb.
Mar.

335
1,557
452
650
291
142
376
187

Corporate
Bonds
Convertible
(other than
bonds
convertibles)
296
51
235
415
390
178
17
125
25
269
108

38
1,271
37
210
113
--

81
79

30

200
115
131
233

230
130
217
513

Stocks

--

15
86

280

--

State
and
local
governments
282
698
274
284
544
459
558
419
226
541
419
446
395

Other
50
20
15
275
260
104
15
502
15
--

235
130
19

Large Individual Issues Offered April 1 through 16

j1 : Issuer

\

Corporate
*Celaness Corp.
Union Elec. Co.
- Arkansas Pwr. & Lt. Co.
. Phil.? . Elec . .Pwr. Co.
Texas Oil &.Cas. Ccrp.
State of Ohio
Clark Sch. Dist., Nev.
San Francisco Port Auth.,
Cal.
Cleveland. Ohio
New York City, N.Y.




Type &/

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
net interest cost

Offering
vield

Rating

Conv. sub. deb.
1st mtg. bds.
1st mtg. bds.
S. F '~'~V
1st mtg- bds.
S >=, deb.

78.9
35.0
25.0
25.0
15.0
17.6

1990
1995
1995
1995
1985,
1990

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

4.00
4. 46
4.52
4.51
4.80

Ba
Aa
A
*
Baa
Ba

G.O.
G.O.

40.0
17.0

1965 -75
1966 -85

2.81
3.80

2.20-2.80
2.50-3.80

Aa
Baa

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

10.0
11.0
125.0

1970 -95
1966 -85
1966 -95

3,23
2.96
3.12

2.70-3. 60
2.30-3. 10
2.35-3. 40

Aa
Aa
A

Large Individual Issues Offered April 1 through 16(Cont'd)

Issuer

Type 3/

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
Offering
iJt inter
yield
est cost

Rating

Other
Federal Land Banks
Govt, of Malyasia
Nippon Tel. & Tel. Public Corp.

Bonds
Bonds
Bonds

200.0
25.0
20.0

1975
1966-70
1978

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

4.65
5.65
6.08

*--Rights offering, n.a.—Not available.
1/ Includes corporate and other security offerings of $15 million and over; State & local
government security offerings of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and Development
issues and non-guaranteed issues by Federal agencies.
3/ In the case of State & local govt, securities, G.O. denotes general obligations;
Rev.-Ut., revenue obligation secured only by income from public utilities; Rev.-Q.Ut., revenue bonds secured only by revenue from quasi-utilities; Rev.-S.T., revenue
bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured
solely by least payments




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

*

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

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

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

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

25
15

15
25
215
60

212

Corporate

Subsequent to
date shown
State and
local govt.

1,837
844
668
307
167
442
186

Other 2/

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

130
105
253
504
792

Forthcoming Large Offerings as of April 16

Type

Issuer

C w m n w
Florida Pwr. Co.
Tenneco Corp.
*Boston Gas Cd.
Columbia Gas System, Inc.
Chrysler Corp.
Virginia Elec. & Pwr. Co.
Pacific Tel. & Tel. Co.
State and Local Government
New York City, N.Y.
Cleveland, Ohio
Baltimore Co., Md.




Amount
(millions
of
dollars)

Approximate date of
offering

1st mtg. bds.
Deb.
1st mtg.t bds,
Deb.
Com. stk.
1st & ref. mtg. bds.
Deb.

30.0
50.0
25.0
40.0
300.0
60.0
125.0

Apr.
Apr.
May.
May
May
May
May

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

123.0
11.0
11.0

Apr. 13
Apr. 13
Apr. 21

22
20
4
7
12
19
20

25
15

15
25
215
60

L-2

•V "

f

Forthcoming Large Offerings as of April 16 (Cont'd)

Issuer

Type

Amount
(millions
of
dollars)

I

1
Approximate date of
offering
|

,#

State & Local Government (Cont'd)
*Los Angeles Unif. Sch. Dist., Calif.
Commonwealth of Mass.
•Washington Sub. San. Dist. , Md.
*State of Hawaii
*State of West Va.
•Houston, Tex.
Penna. State Pub. Sch. Bldg. Auth.
Penna. State Highway & Bridge Auth.
Pittsburgh, Pa.
Dade County, Fla.
Florida Dev. Comm.
Va. State Highway Auth.

a

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

25.0
75.0
15.0
18.0
20.0
16.0
23.1
15.0
35.0
46.0
33.8
31.0

Apr. 21
Apr. 21
Apr.*,, 27
Apr. 28
Apr. 28
Apr. 28
May
5
May
25
Indefinite
Indefinite
I indefinite
Indefinite

Bonds
Bonds

15.0
25.0

Apr. 15
Apr.
r - "

Other
Govt, of Venezuela
*Govt. of Australia

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




.

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

Sale Date

Amount
(millions
of
dollars)

Public Offerings

Issuer and Description of Issue

A.
3/25

10.0

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

4/6

25.0

Govt, of Malaysia--5-1/2% bonds, maturing
1966-70, reoffered to yield 5.65%.

4/7

20.0

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

B.
4/ 15
4/
*

Sold Feb. 1 through April 16

15.0
25.0

Included in table for first time.




Prospective Offerings

Govt, of Venezuela - bouds
Govt, of Australia

M-2

Part II:

Date reported

Private Placement--Reported February 1 through April 16
Amount
(millions
of
dollars)

Issuer and Description of Issue

3/8

10.0

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

3/5

15.0

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

*4/6

65.0

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

*4/12

34.0

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

Note:

For retrospective data on aggregate foreign corporate and government security offerings in the United States see Exhibits I and J. There is no simple relationship
between the data shown in this Exhibit and that shown in Exhibits I and J because
the latter includes privately placed securities in the period in which funds are
actually takendown but only in the amount of takedown, while the placements shown in
this exhibit are included when reported, frequently with little or no information
concerning timing of takedowns. Full or partial takedowns may take place both prior
and
subsequent to the data a placement is reported. ^--Included in table for first
for FRASER
time.

Digitized


*it
£

'«

-2-f
Exhibit N
Sources and Uses of Funds by
Life Insurance Companies

Quarter

End of
1963 1964 1965 -

or
Month
period:
Dec.
Dec.
Jan.

Cash

1,465
1,443
1,315

Uses of Funds 1/
Total Memoi Total |
Excl. Val-!
Business
State &
U.S.
uation
Other
MortSecurities 2/ local
Govt.
Change ~, I
gages
or
Securi- Bonds & Short-term Govt.
uses
naoer
Stocks
ities
(In millions of dollars)
56,050
387
3,686
50,596 22,942 141,121 134,940
5,813
241
3,808
55,179 24,515 149,318 142,637
58,621
5,511
55,626 24,683 150,392 143,639
3,821
58,732
491
5,724

Changes:
1963 - I
II
III
IV

-226
16
103
116

-149
-276
95
-28

434
727
501
920

253
-110
134
-238

4
-89
-62
-22

624
786
893
1,336

920
659
350
159

1,860
1,713
2,014
2,243

1,567
1,572
1,960
2,045

1964 - I
II
III
IV

•-166
-18
24
161

-24
-101
154
-276

625
715
479
805

108
-154
81
-175

-27
-27
24
-38

898
1,025
1,094
1,619

750
454
352
50

2,164
1,894
2,208
2,146

1,732
1,715
2,113
2,269

1964 2.1 " Jan* r/
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
|
Dec.

-149
-15
8
-108
12
78
-9
105
-72
-4
112
53

34
23
-74
-42
42
-101
125
5
24
-18
-70
-188

258
131
233
191
232
292
199
122
158
45
210
550

272
-68
-94
-26
-44
-84
185
-39
-65
194
3
-372

-2
-8
4
-26
-5
-13 .
13
24
20
-25
-33

300
298
315
365
311
349
366
341
387
424
420
775

53
298
156
225
109
120
5
106
241
144
119
-213

768
665
536
609
636
649
859
652
697
805
769
572

815
518
440
526
608
581
970
612
531
730
781
758

| 1965 £/-

-128

213

111

250

447

168

1,074

1,002

i

Jan.
Feb.
Mar.

13

r/ Revised.
&/ Preliminary.
\J uses of funds represent net changes in assets and therefore reflect net, rather
than gross uses.
2/ Includes securities of domestic corporations only.
I 3/ Excludes changes in miscellaneous assets (one portion of the "other" in this
i
table) which includes most, but not all, valuation changes, as well as changes
•
in a few other items.
Source. -- Institute of Life Insurance.




H. 14
Exhibit 0
Sources and Uses of Funds by
Savings and Loan Associations

Quarter
or
Month
End of period:
1963 - Dec. r/
1964 - Dec. r/
1965 - Jan.

Cash

3,979
4,025
3,593

Source of funds
2/
Net
Other
Borrowing
change
savings
capital
uses
(In milljLons of do!Liars)

Uses of funds 1/
U. S.
Govt. Mort- Other
secur- gages assets
ities

sources
or

6,445 90,944
6,973 101,314
7,098 101,844

6,191
6,983
6,827

107,559
119,295
119,362

91,308
101,847
102,101

5,015
5,596
5,146

11,236
11,852
12,115

Changes:
1963 r/ - I
II
III
IV

-137
69
-461
582

537
103
146
96

2,285
3,499
3,466
2,924

57
452
49
287

2,742
4,123
3,200
3,889

3,036
3,107
1,584
3,345

-1,025
832
776
803 '

731
184
840
-259

1964 r/ - I
II
III
IV

-351
185
-402
614

291
-48
93
192

2,223
3,001
2,827
2,319

56
489
21
226

2,219
3,627
2,539
3,351

2,320
3,068
1,862
3,289

-688
657
85
527

587
-98
592
-465

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

-394
33
10
-147
37
295
-449
14
33
23
86
505

156
65
70
-15
-6
-27
2
49
42
42
142
8

606
710
907
909
995
1,097
1,043
948
836
837
687
795

-189
107
138
120
383'
-14
-199
114
106
71
226
-71

179
915
1,125
867
1,409
1,351
397
1,125
1,017
973
1,141
1,237

464
754
1,102
321
982
1,765
16
773
1,073
751
859
1,679

-421
-213 ,
-54
278
-57
436
11
1
73
-36
-30
593

- 432

125

530

67

254

1965

-

Jan. g/
Feb.
Mar.

-156

-450

- 136
374
77
268
484
-850
370
351
-129
258
312
-1,035
263

r/ Revised.^ £/ Preliminary.
1/ Uses of funds represent net changes in assets and therfore reflect net, rather than
gross uses. Savings and loan associations do not hold business securities and data
on holdings of State and local government bonds, presumed to be small, are not
available.
If Advances from Home Loan Banks and other borrowing.
Source: -- FSLIC




>

Total

M

<c?
Exhibit P
Sources and Uses of Funds by
Mutual Savings Banks

Quarter
or
Month
End of period:
1963 - Dec.
1964 - Dec. r/
1965 - Jan.

Cash

U.S.
Govt.
ities

Sources of funds
Uses o f funds 1/
Total
Net
State and
Busisources
Other
change
ness
local govt. Mort- Other
or
in
gages
secursecuruses
deposits
ities 2/ ities
(In millions of dollars)
5,096
44,606
36,007 1,406 49,702
5,074
440
5,389
48,849
40,328 1,625 54,238
5,099
391
5,490
49,222
40,640 1,695 54,713
5,105
388

912
1,004
977

5,863
5,791
5,907

Changes:
1963 - I
II
III
IV

-65
- 1
-42
64

325
-243
-114
-213

-20
-67
81
-97

-52
-17
- 5
-13

1,069
950
888
1,043

57
-28
117
-36

1,315
592
927
747

970
666
740
894

344
-73
186
-146

' 1964 - I
II
III
IV r/

-25
19
-23
121

254
-93
58
-292

78
-6
47
-94

-16
-15

926
1,037
1,173
1,182

124
17
80
-1

1,339
959
1,338
899

1,155
862
1,133
1,092

183
99
207
-194

f 1964 - Jan.
Feb.
t
Mar.
|
Apr.
!
May
S
June
1
July
[
Aug.
1
Sept.
Oct.
Nov.
Dec. r/

-63
32
6
-68
28
59
-43
32
-12
15
7
99

88
82
84
-53
-12
-28
1
70
-13
-233
-65
6

15
47
16
-13
12
-5
-3
37
13
-15
2
-81

-2
2
-6
-4
-8

345
283
298
334
333
370
436
355
382
392
360
430

93
5
26
-64
75
6
26
71
-17
-10
42
-33

477
435
427
135
433
391
416
565
357
143
343
413

400
260
495
90
272
500
294
356
483
226
205
661

77
175
-69
47
161
-109
122
210
-125
-83
138
-249

-27

116

6

-3

312

70

475

373

101

1965 - Jan.
Feb.
Mar.

--

-18

-13
-3
-1
-4
-10
--

1/ Uses of funds represent net changes in assets and therefore reflect net, rather than
gross uses.
2/ Includes Canadian government and political subdivision, International Bank for Reconstruction and Development, nonguaranteed Federal agency and other bonds as well as
corporate bonds and stock.
Source: -- NAMSB