Full text of H.16 Capital Market Developments : April 22, 1968
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April 22, 1968.
DECONTROLLED AFTER SIX MONTHS
CAPITAL MARKETS DEVELOPMENTS
IN THE UNITED STATES
Corporate and municipal bond markets. The volume of new,[publiclyoffered, corporate and muncipal securities expected this week is substantially
below the average weekly volume over the past year. The small corporate
volume will be dominated by a $100 million offering of debentures by the
Bell Telephone Company of Pennsylvania, while the municipal market will see
no new issues of notable size. Supplementing the week's modest calendar of
long-term offerings will be the Government of Jamaica's $15 million of
bonds.
Long-term Public Security Offerings —^
(In millions of dollars)
Corporate
New Capital | Refunding
State and local Government
New Capital [ Refunding
Sold:
322
253
12
r/78
r/249
19
410
213
162
182
52 week avg.
April
Scheduled:
May
JL/
3
Federal Reserve estimates are based upon published reports
issues sold and scheduled for offering; corporate rights offerings
are included as of date subscription rights expire.
Because of a shift in the characteristics of issues included in the
series, the composite corporate new issue yield series was essentially
unchanged last week; more reflective of new issue yield developments was the
8 basis point advance in the series of new issues without call protection.
The effects of the increase in the discount rate, however, are not reflected
in either series as all last week's issues were offered before the close of
business Thursday. Last week's large industrial offerings sold out immediately,
but the one new utility issue was only about one quarter sold by the end of
the week.
*
Moody's seasoned corporate yield series — essentially unchanged
last week — also did not reflect the effects of the increase in the discount
rate, being an average of the week's daily yields and noted for its lagging
characteristics. Dealers, however, report that yields on recently-offered
corporate bonds advanced significantly on Friday.
j
H. T.4
-2-
Yields on Security Markets
High-Grade - '
Notes and.Bonds
Change from
preceding week
Levels Latest Week
Corporate
New
Seasoned
6.42
6.20
U.S. Government
5.28
5.70
Long-term
3-5 year
+
7
+
22
5.70
+
12
5.39
5.51
+
+
4
11
State and local Govt.
• Moody's Aaa
Std. & Poor's high grade
4.08
4.37
Money Market
Federal funds
Treasury bills
3-month
.6-month
Corporate Bonds Still in Syndicate
Date
Offered
Amount
(millions of $)
Reoffering
" Yield
Issuer
Estimated proportion sold
Rating
4/18
50.0
Province of Quebec,
7's - 1989
7.25
85%
4/17
15.0
Massachusetts Electric,
7-1/8*s - 1998
6.85
25%
Blue List of Municipal Dealers
Latest Week
598(4/17/68)
1
Advertised Inventories
End of Previous Week
552
Recent High
849(4/26/67)
1
1
H. 14
Yields on seasoned municipals, which were unchanged to slightly
higher, also failed to reflect developments late in the week. New issues,
however, were given only a lukewarm reception and by the end of the week
only about 65 per cent of the week's volume had been sold. Once again,
dealers 1 inventories advertised in the Blue List rose.
Private housing starts and permits. Private housing starts,
which were revised moderately downward for February, declined 3 per cent
in March to a seasonally adjusted annual rate of 1,476 thousand. Thisj
brought the average for the first quarter as. a whole to 1,487 thousand,
3 per cent above the advanced rate in the fourth quarter of last year {and
just above the average for the year 1965. While multifamily starts turned
upward in March, all of the further increase in the first quarter of tjhis
year was concentrated in single-family starts and in the North Central
states and the West.
Government-underwritten starts accounted for nearly 20 per cent
of total starts in March. Owing in part to an usually high s h a r e — 25 per
cent — in February, the Government-underwritten share for the quarter
a whole approached 22 per cent, compared with 20 per cent in the first
quarter of 1967.
Seasonally adjusted permits, at an annual rate of 1,362 thousand
in March, were little changed from the advanced February rate and were
47 per cent above a year earlier. Among individual regions, the rate of
permits rose further during March in the Northeast and West, but was dlown
in the North Central states and in the South.
Stock prices. Common stock prices rose Monday through Thursday
last week, but dropped sharply on Friday. As a result, on balance the
Standard & Poor's index of 500 stocks gained only 0.68 over the week, closing
Friday at 95.85. Trading volume remained extremely heavy, averaging 14 .9
million shares a day.
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 fhe Federal Reserve System.
SAVINGS .PLOWS AT NONBANK DEPOSITARY I NT ERMEDIARIES
($ millions)
Mutual Savings Bank;
Regular Deposits
Annual
Net
Growth
Flow
Rate
3,563
2,591
5,079
1965
1966
1967
1967
433
319
727
Jan.
Feb.
Mar.
262
330
650
1968 - Jan.
Feb.
Mar. 2./
k
e/
.
7.4
4.9
9.3
-__
—
Total
r -
Savings &Lban Associations
Capital
Net .
Net
Annual
Net
New
New "
Growth
Flow
Money*
Money
Rate
Not Seasonally Adjusted
Share
1,527
227
2,376
8,396
3,656
10,686
331
286
260
. 309
764
1,457
162
301
150
-251
585
1,261
8.3
3.3
9.1
——
-__
——
4,458c
-552
6,136
Deposits
Annual
Net
Growth
Flow
Rate
11,959
6,247
15,765
8.0
3.8
9.2
Net.
New
Monev*
5,985e
-325
8,512
290
741
787
742
1,083
2,184
__
621
1,027
1,047
-270
560
539
11
915
1,911
--
-108
861
689
---
Net New Money is deposits net of both withdrawals and interest. Data for S&Ls are for insured associations
only, which represent 96% of the total resources of the industry.
SOURCES: National Association of Mutual Savings Banks and Federal Home Loan Bank Board.
Estimated,
g/
i
Preliminary.
EXHIBIT
A, Pari 1
LONG-TERM BOND YIELDS, HIGH-GRADE
C O R P O R A T E Aaa
U.S. G O V E R N M E N T
/
V
r
STATE A N D LOCAL G O V E R N M E N T Aaa
1963
1964
1965
1966
1967
196#
Exhibit A -- ifaii. j.1
Date
1 Corporate
1 Aaa 1/
State and
U.S. Govt. i
local
long-term 2/| government
Aaa 3/
(per cent)
|
|
j
|
Spread between
U S . Govt, and
Corporate
j State and
Aaa
| local Aaa
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)
4.87(9/2)
4C 42(1/7)
5.49(11/17)
4.37(2/3)
3.65(9/24/59)
4.04(8/25)
3„39(1/13)
4.15(12/28)
3.25(2/9)
.59(8/5/60)
.84(12/30)
.14(2/18)
.92
.44
.92(4/22/60)
1.19(2/11)
.77(9/2)
1.51
.74
1968 - Mar. 22
29
Apr. 5
12
- 19 £ /
6.13
6.17
6.20
6.19
6.20-
5.42
5.41
5.25
5.21
5.28-
4.28
4.28
4.18
4.08
4.08-
.71
.76
.95
.98
.92
1.14
1.13
1.07
1.13
1.20
!>/ Preliminary.
1/ Weekly average of daily figures. Average term of bonds included is 22-24 years.
2/ Weekly average of daily figures. The series includes bonds due or callable in 10
years or more.
3/ Thursday figures. Only general obligation bonds are included; average term is 20
years.
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.
EXHIBIT B, Part
LONG-TERM
BOND YIELDS, LOWER
1
GRADE
Weekly
CORPORATE B n
STATE AND LOCAL G O V E R N M E N T Bli
/
1963
1964
1965
1966
1967
1968
Exhibit B —
Date
Part II
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)
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
1968 - Mar, 22
29
Apr. 5
12
119&/
6.87
6.93
6.98
6.98
6.95 J
4.89
4.9.1
4.84
4.83
4.83
.73
.76
.78
.79
.75
.61
.63
.66
.75
.75
Note:
j>/
For footnotes see Exhibit A„
Preliminary.
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
n
GOVERNMENT
Weekly
6-MONTH BILLS
M a r k e t Yield;
3-5 YEAR ISSUES
F.R. DISCOUNT RATE
3-MONTH BILLS
M a r k e t Yield*
1963
http://fraser.stlouisfed.org/
/
Federal Reserve Bank of St. Louis
1964
1965
1966
1967
1MB
Exhibit C -- Part II
Date
Discount
rate
1/
3-month
bills 2/
|
|
1959-60 - High
Year end - 1965
1966
1966 - High
Low
1967 - High
Low
4.00
4.50
4.50
4.50
4.50
4.50
4.00
4.59(1/8/60)
4,47
4.80
5.52(9/23)
4.39(6/24)
4.99(12/29)
3.41(6/9)
1968 - Mar,. 22
29
Apr . 5
12
19R/
5,00
5.00
5.00
5.00
5.50-
5.25
5.14
5.20
5.35
5.39-
Yields
6-month
bills 2/
(per cent)
| 3-5 year
| issues U
5.07(1/8/60)
4.66
4.92
5.92(9/23)
4.53(6/24)
5.50(12/15)
3.74(6/2)
5.36
5.32
5.29
r/5.44 5.51-
Spread between yields on
3-•mo. bills and yields on
(j-mo. bills | 3-5 vr. issues
5.00(12/24/59)
4.90
4.86
5.83(9/2)
4.80(4/8)
5.80(11/10)
4.36(4/7)
.79
.19
.12
.52
. .09
.62
.01
1.81
.43
.06
.78
.01
1.61
.02
5.77
5.77
5.53
5.48
5.70
.11
.18
.09
r/.09
.12
.52
.63
.33
.13
.19
New York,
2/ Market yield; weekly averages computed from daily closing bid prices. Series of 3-5
~~ year issues consists of selected notes and bonds.
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.
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 PRIVATE B O R R O W E R S
Weekly
PRIME RATE
FINANCE CO
Directly p l a c e d
3 6 Months
DISCOUNT RATE
FEDERAL FUNDS
Effective R a t e
1963
I I.
II I I 1 I I I M
II I I I I I I I I 1 I I I I I 1 I I I I I III II I 1 I 1 I I I 111 I I
1961
1967
1966
1965
1964
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)
1968 - Mar. 22
29
Apr. 5
12
192/
6.00
6.00
6.00
6.00
6.50
5.50
5.50
5.50
5.50
5.63
5.15
5.35
5.73
5.58
5.70-
1.02
.23
.28
1.08
.20
1.33
•21
; 25
.26
.30
.15
.24
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.
j>/
Preliminary.
1941-43
o v e r o g e = 10
100
PRICES
STOCK MARKET CREDIT
* CHANGE IN SERIES
Millions
of. shares
VOLUME
YIELDS
I
i i M ii ii i1 i i i II i i i i i. ii i i i i" i i ii ii ni ii'' ii ii i ii i i i 1 ii i i i i
"111 11 111 1 1 1 11 11 Mit 1J—
1968
1967
1966
1965
1964
1963
Exhibit E —
Stock price
index 1/
Common
stock
yields 2/
(per cent)
Part II
Tradingvolume 3/
(millions
of shares)
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
1968 - Apr.
93.29
5
12
96.53
19%/ 95.85
3.20
3.09
3.11
15.6
15.9
14.9
Customers1
Bank
debit bal- loans to
"others"5/
ances 4/
(In millions of dollars)
Total
5,602(12/61)
4,424(1/61)
7,997
7,302
10,347(12/67)
7,345(1/6)
4,259(12/61)
3,253(1/61)
5,835
5,169
7,883(12/67)
5,290(1/67)
1,418(5/9/62)
1,161(3/8/61)
2,241(7/6)
2,097(12/14)
2,507(11/1)
2,055(1/25)
9,802
n.a.
7,381
n.a.
2,421
2,374
n.a.
n.a*
n.a.
n.a.
n.a.
n.a.
2,350
r/2,349
n.a.
n.a. Not Availab le. p./ 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 1 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.
X
.
- s
•
EXHIBIT F, Porl 1
PRIVATE H O U S I N G STARTS A N D PERMITS
2.0
S E A S O N A L L Y ADJUSTED DATA
HOUSING STARTS
1.6
BUILDING P E R M I T S
PER C E N T O F U N A D J U S T E D T O T A L S T A R T S
MULTI-FAMILY
GOVERNMENT UNDERWRITTEN
1961
1962
1963
1964
1965
1966
1967
1968
Exhibit F - Part II
Building
permits
Unadjusted
Type of financing Type of housing (seasonally
adjusted
Seasonally adjustMultib
1-2
Unadjusted
annual
FHA
VA
Other family family
ed annual rate
rate) 2/
Starts
Total
Date
1967 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1968 - Jan.
Feb. r/
Mar.j?/
1,094
1,116
1,274
1,233
1,369
1,407
1,445
1,496
1,590
1,250
r/1,456
r/1,529
~ 1,476
(Thousands of
92
14
114
12
132
18
125
19
125
15
127
17
122
16
135
19
118
15
80
16
80
14
87
17
126
20
units)
4
74
4
97
5
109
5
101
5
106
6
105
5
101
5
111
4
99
61
4
3
63
66
4
5
102
68.8
83.5
92.3
90.6
86.8
87.8
82.0
86.7
72.3
50.2
47.7
60.3
84.8
1/ Total starts are Census estimates including farm for both permit-issuing and
non-issuing areas. A dwelling unit is started when excavation begins;; all units
in an apartment structure are considered started at that time. FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made!before
footings are poured in some cases but normally after the foundations have been
completed. Capehart military housing units are excluded. Other starts are
derived as a residual, although total and FHA and VA starts are not strictly
comparable in concept or timing; other starts iolude both units financed by conventional mortgages and units without mortgages.
2/ Building permits before January 1963 are Census estimates for about 1(0,000 areas
identified as having a local building permit system in 1959. Estimates beginning
January 1963, are for approximately 12,000, or all known, permit-issuing places.
Unlike starts, seasonally adjusted building permits reflect direct adjustment
for differences in the number of working days per month, as well as ojther differences in timing and coverage.
r/
Revised.
j>/
Preliminary.
EXHIBIT
YIELDS O N
NEW
Weekly
/
AND
SEASONED
CORPORATE
G, Pari
1
BONDS
6.5
Adjusted to Aaa Boi
N E W ISSUES
6.0
5.5
5.0
SEASONED Aaa
4.5
1965
1966
1967
\
Exhibit G - II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number
of :
Number
of
Am't. of issues Average
yield
included (mill.
(per cent)
of dollars)
Am 1 1. of issues Average
yield
included (mill.
(per cent)
of dollars)
Monthly averages:
1968 - Jan
Feb.
Mar.
13
13
10
567.0
564.5
350.0
6.24
6.29
6.56
Feb.
Mar.
2
9
16
23
76.0
237.0
205.0
42.5
6.21
1
70.0
6.48
85.0
135.0
130.0
6.44
6.58
8
15
2
29
4
4
12
6.23
6.30
6.29
6.64
6.58
50.0
1
5
Apr.
6.41
25.0
1
12
Weekly averages:
6.42215.0
1£/
3
6.64(3/29/68)
"
High
Low
Note: Averages of offering yields on^a/l new Issues of publicly offered corporate bonds rated Aaa,
Aa, and A by Moody's Investors Service (except serial and convertible issues, offerings of natural
gas pipeline and foreign companies, and bonds guaranteed by the Federal Government) weighted by
size of offering. Before averaging, new offerings are adjusted to a composite Aaa basis by
deducting from the actual reoffering yield the excess of the weekly average yield for seasoned
bonds of the appropriate industry-quality group over the composite average for seasoned Aaarated bonds (Moody's). Averages considered unrepresentative because of special characteristics
of the offerings included are denoted by an asterisk.
Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Capital
1968p/
Corporate
1967p/
January
February
March
2/ 1,689
£/ 1,566
e/ 2,010 /
1,648
1,399
2,317
April
Hay,
June
e/ 1,725 /
State and local 2/
1966
1968p/
1967 r/
1966
1,302
1,237
2,446
1,107
e/1,200
e/1,350 -
1,482
1,194
1,439
1,188
858
865
1,973
1,474
2,611 '
1,553
1,058
2,364
e/1,100-
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
9,95*
14,050
17,601
7,945
11,070
14,529
6,146
8,640
11,304
let
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
e/ 5,299
1st half
Three quarters
Year
.
e/3,657 "
»
\
$=-
3
-C
Excluding finance companies 3/
1st
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
Year
e/
2./
1/
7/
3/
'
-
5,207
5,913
6,338
5,657
4,924
4,884
3,969
3,188
23,115
17,269
<
5
»
>'v
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.
4
Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
Gross proceeds for new capital
and refunding 1/
Bonus
Common Memo:
Publicly Privately and
Foreign
Offered Placed
pfd. issues
stock included
Quarter
or
Month
Total
1966 - IV
3,669
2,047
1,247
375
117
5,464
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
-.967 - I
II
III
IV
.968
Ie/
6,208
918
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
1,878 1,446
353
1,588
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
107
91
350
39
356
200
119
82
68
415
343
393
492
1,044
313
619
690
469
881
530
548
418
543
485
182
146
25
559
329
700
60
2,459
2,013
949
77
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
.968 - J an.
1,757
Feb'.!!/ 1,604
Mar. e 2,060
903
796
760
528
585
900
326
223
400
16
61
n. a.
8
34
19
40
1,232
Other
Public CommuniUtility cations Issuers
417
5,421
y
J
'J
Mfg.
800
Preliminary, ej Estimated by Federal Reserve, n. a. - Not available.
Gross proceeds exceed net proceeds by the cost of flotation.
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.
2/
984
2,362
2,016
1,519
2,673
2,589
2,481
1,763
2,409
1,500
2,385
967 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Net proceeds
for new capital 1/
Exhibit J
Other Security Offerings
(In millions of dollars)
-term 1/
Foreign Government
Federal Agency
1968 SJ
1,251
503
410
392
699
1,030
1,084
799
400
450
800
239
8,180
New short-term
Federal Agency
-179
-552
-454
-559
109
93
-158
-262
1,407
606
573
36
State and inr.al Government 5/
January
February
March
April
May
June
July
August
September
October
November
December
Jan. * - Mar. £/
30Q|>/
89%/
-604%/
-215
Year
Reserve, r/ Revised.
r/1,721
422
660
308
-24
450
718
85
284
-590
-270
-652
-555
-283
219
310
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other then U. S. Treasury) It
Proceeds of Large Issues Offered
(In millions of dollars)
Total
1967 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1968 - J a n .
Feb.
Mar.
c w w n w
Bonds
(other than
Convertible
convertibles)
bonds
1,638
1,311
870
1,666
1,340
1,705
794
1,458
1,435
956
771
1,072
890
1,288
473
897
461
460
652
575
415
82V
978
904
757
788
Stocks
140
213
55
409
317
350
257
285
150
437
168
105
135
63
142
44
185
133
67
65
276
215
81
85
77
238
State
and
local
government!:
669
512
496
875
483
473
847
505
865
633
785
591
736
Other
2/
1,000
540
391
825
85
221
400
50
845
627
1,095
389
1,030
Large Individual Issues Offered April 1 through April 19.
Issuer
Type 3J
Amount
(millions
of
dollars)
Maturity
Coupon
rate or
net interest cost
Offering
vield
Rating
Corporate
Keystone Steel & Wire Co.
New Jersey Bell Tel. Co.
Sundstrand Corp.
Southland Corp.
Indian Head, Inc.
Potomac Edison Co.
Sears, Roebuck Inc.
Allied Chemical
Graphic Sciences
Massachusetts Electric Co.
Duke Power Co.
S.F. debs.
30.0
Debs.
50.0
Conv. sub. debs,, 30.0
Com. stk.
18.4
Conv. debs.
25.0
1st mtg. & coll,
tr. bds.
25.0
S.F. debs.
100.0
Debs.
100.0
Conv. debs.
15.0
1st mtg. bds.
20.0
Cum. pfd. stk.
35.0
1993
2008
1993
7-1/4
6-5/8
5
7.25
6.60
5.00
Baa
Aaa
Ba
1993
5-1/2
5.50
B
1998
1993
1993
1983
1998
7.00
6-3/8
6.60
6
7-1/8
6.80
6.38
6.60
6.00
6.85
A
Aa
A
1969-1988
1969-1988
4.07
4.06
3.50-4.10 Aa
3.40-4.10 Aa
——
A
State & local Government
San Francisco, Calif.
San Francisco, Calif. .
G.O.
G.O.
21.3
10.5
K-2
Large Individual Issues Offered April 1 through April 19.
Type 3/
Issuer
Amount
(millions
of
dollars)
|
1 Maturity
1
1
Coupon
|
| rate or
| net interj est cost
Offer
ing
yield
Rating
A
Baa
State & local Government
(continued)
Wash. .Sub. Sani. Dis-t. ,Md Rev.-Ut
Detroit, Michigan
G.O.
Calif. Dept. of Water
Resources
Rev.-Rent.
Calif. Dept. of Water
.Resources
Rev.-Rent.
Calif. Dept. of Water
- Resources
Rev.-Rent.
Penna. State Highway &
Bridge Auth.
Rev.-Rent.
Oakland Co., Mich.
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.
San Francisco B.A.R.T.
G.O.
Vermont (Montpelier)
G.O.
New York City
G.O.
.
2/
3/
4/
1969-1998
1969-1992
4.55
5.13
3 .60-5.25
3 .90-5.25
26.0
1998
n.a.
5
A-l
101.0
2018
n.a.
5 .20
A-l
23.0
1972-1988
5.20
4 .00-4.80
A-l
75.0
16.9
11.0
12.5
15.1
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
Aa
A-l
Aa
Baa
A-l
10.0
70.0
25.0
98.1
1971-1990
1972-1999
1969-1987 1969-98
4.27
4.48
4.92
3. 75-4.30 4/
3., 75-4.60~
3. 40-4.00
3. 85-5.20
A-l - ;
Aa ;;
Aaa^g
BaarX.
S.F. debs.
75.0
1993
7-1/8
7. 17
A
S.F. debs.
Debs.
Bonds
20.0
50.0
225.0
1993
1989
1970
7
7
6.00
7. 15
7. 25
5. 95
A
——
Other
Lakehead Pipeline
New Brunswick Higher Ed.
Comm.., Canada
Province of Quebec
Federal Home Loan Bank Bd.
*
1/
.S
'
25.0
13.9
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-g'iaranteed issued 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.-Q.-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.
--
- ~
H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treaaury) y
i
Expected Proceeda from Forthcoming Large Iaauea
(In milliona of dollars)
During month following
date •hewn
—
State and
Other 2/
Corporate
local
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
31
30
31
30
31
31
30
31
30
31
31
29
31
767
963
1,,449
,636
1,
1,,261
694
534
1,,357
826
968
531
873
758
227
326
596
401
512
783
768
505
865
633
449
683
494
__
70
100
40
100
65
50
845
402
60
130
15
Corporate
Subaequent to
date shown
State ajnd.
local govt.
247
346
616
402
575
903
889
743
1,684
1,076
937
905
1,262
2,065
1,922
1,576
1,335
1,090
2,694
2,129
1,892
736
1,105
935
S
0
*
7
!
Other %j
15
85
" 115
70
150
159
126
260
875
• 502
75
265
125
Forthcoming Large Offerings as of April 19, 1968.
- Amount
(millions
Issuer
Type
of
dollars)
|
,
j Approximate date of
|
I
offering
—
Corporate
Collins Radio Co.
" General Tel. of the Southwest
Bell Tel. of Pennsylvania
| Fidelity Corp.
I Lucky Stores Inc.
^Michigan Wisconsin Pipeline Co.
Dial Finance Co.
.
National Equip. Rental Ltd.
Indiana & Michigan Electric Co.
Indiana & Michigan Electric Co.
LTV Ling-Altec Inc.
National Aviation Corp.
Columbia Gas System
Chase Manhattan Bank
Consumers Power Co.
El Paso Electric Co.
• Commonwealth
Edison
Debs.
1st mtg. bds.
Debs.
Conv. debs.
Conv. debs.
1st mtg. p.1. bds.
Debs.
Conv. sub. debs.
S.F. debs.
1st mtg. bds.
Sub. debs, w/wts.
Com.stk.
Debs.
Conv. cap. notes
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
35.0
25.0
100.0
16.0
28.0
50.0
25.0
25.0
15.0
35.0
15 *0
24; 2
50;0
150.0
55.0
16.0
50.0
-W--U
April 23
April 22
April 23
April 23
April 23
April 23
April 29
April 29
April 30 •
April 30
April 30
April 30 (rts. exp.
May 2
May 6 (rts. exp.)
May 7
May 8
May 9
L-2
Forthcoming Large Offerings as of April 19, 1968.
Issuer
Type
Amount
(millions
of
dollars)
Approximate date of
offering
45.0
20.0
May 13
May 13 'i
Corporate (continued)
Northern States Power Co.
Northern States Power Co;
^Chesapeake & Potomac Tel. Co.
of Va. '
SCM
Wisconsin Electric Power Co.
*Indianapolis Power & Light Co.
*Appalachian Power Co.
^Virginia Electric & Power Co.
*1owa-111ino is Gas & Elec. Co.
Universal Oil Products Co.
Piedmont Aviation
Dow Chemical Co.
: Montana Power
Monongahela Power Co.
Illinois Bell Telephone
*Ogden Corp.
1st mtg bds.
Pfd. stk.
Debs.
Conv. debs.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Com. stk.
Debs.
S.F. debs. .
Conv. debs.
Com.stk.
1st mtg. bds.
1st mtg. bds.
Com. stk.
Conv. debs. .
70.0
41.5
35.0
25.0
55.0
50.0
20.0
25.0
15.0
100.0
30.0
20.0
83.0
50.0
;
#
May 14
May 14 (rts. exp.)
May 15
May 20
May 21
May 22
May 23
May
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite(rts. exp.)
Indefinite
State and local Government
Puerto Rico Water Resources
Rev.-Rent.
Auth.
Houston Ind. Sch. Dist.
G. 0.
*State of Mississippi
G.O.
G.O.
Baltimore, Md.
G.O.
*State of Rhode Island
G.O.
*State of Texas
G.O.
Cleveland, Ohio .
Rev.-Rent.
Kansas City, Mo.
G.O.
East Naton. Rouge Parish, La.
*Los Angeles Flood Control Dist. G.O.
*Jefferson, La., Parish-wide
Sch. Dist. °
G.O.
*Dallas Co. Jr. Coll. Dist.,
G.O.
Texas '
G.O.
Detroit, Michigan
*Los Angeles Co. S.E. Gen'1.
Rev.-Rent.
Hospital Auth.
G.O.
*Cinncinnati, Ohio
G.O.
Buffalo, N. Y.
G.O.
^Houston, Texas
Rev. -Q. -Ut.
Kentucky Turnpike Auth.
Rev.-Rent.
Los Angeles Dept. of Airports
38.0
14.0
11.8
16.0
18.0
30.0
27.1
10.0
21.0
10.0
April
April
April
April
April
April
April
May 1
May 7
May 7
15.0
May 8
26.5
32.0
May 14
May 14
22.4
13.9
13.3
20.0
120.0
35,0
22
23
23
24
24
29
30
May 14
May 15
May 16
May 22
Indefinite
Indefinite
Other
Jamaica, Government of
S.F. loan bonds
-M-
15.0
April 22
CV
-/
-V>.
FOOTNOTES;
*—Included in table for first time.
If 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 of Federal Agencies, j
Notes Nevada Power Company cancelled its $15.0 million issue; postponed was
Consolidated Natural Gas Company's $30.0 million issue.
v\
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:
Sale Date
Amount
j (millions
;
of
dollars)
Public Offerings
Issuer and Description of Issue
A.
Sold:
Mar. 1 through Apri. 19, 1968.
International Nickel Company -- Debentures
maturing 1993, reoffered to yield 6.85%.
March
28
150.0
April
16
75.0
Lakehead Pipeline C o . — 7-1/8% S.F. debentures,
maturing 1993, reoffered to yield 7.17%.
April
17
20.0
New Brunswick Higher Education Commission - (Canada) - #
7% S.F. debentures maturing 1993, reoffered to yields-J
7.15%.
April
18
50.0
Province of Quebec -- 7% debentures maturing 1989,
reoffered to yield 7.25%.
B.
Indefinite
4/22
15.0
15.0
Prospective Offerings
New Zealand -- Bonds ***
Government of Jamaica — S.F. loan bonds
* - Included in table for first time.
** - Issues sold to investors outside of U.S.
*** - Issue subject to interest equalization tax.
M-2
PART lis
Private Placements - Reported January 1 through April 1% 1968,
Date Reported
Amount
(millions
of
dollars)
1/1/68
1.5
1/8/68
12.0
Issuer and Description of Issue
Nicaraguan Hotel Co. — U.S. guaranteed
6% note, maturing June 1, 1987J
Republic of Portugal —
notes due 1968.
-
:•
1/15/68
7.0
Home Oil Co. Ltd. (Canada) -- Secured
15 year bonds.
2/5/68
1.5
Caribbean Finance Co. (Puerto Rico) Senior
notes due 1/15/80.
2/26/68
6.0
Aluminio, S.A. de C.V. (Mexico) U.S.
debentures — 7-1/2%, maturing! 1980.
3/1/68
12.0
3/15/68
35.0
Edmonton (City of Alberta, Canada),
U.S. 6-3/4% debentures maturing Jan., 1993^
Mexico - (United Mexican States)! external
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 1 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 j are included
when reported, frequently with little or no information concerning timing of takedown.
y
Full or partial takedown may take place both prior and subsequent to the date a placement
is reported.
- w V\
@FedFRASER