Full text of H.16 Capital Market Developments : August 12, 1963

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Not for P u b l i c a t i o n DECONTROLLED AFTER SIX MONTHS
H. 1 4

A u g u s t 12, 1963.

LIBRARY
A U G 1 1 1963

i n THE UNITED STATES

l;

i he v o l u m e o f p u b l i c s e c u r i t y financing to o b t a i n new c a p i t a l
— w a s t d i r l y s u b s t a n t i a l last w e e k , b u t w i l l b e somewhat smaller this
week.
L a s t w e e k , ended A u g u s t
three large c o r p o r a t e issues ( i n c l u d i n g
an expiring rights o f f e r ) w i t h gross p r o c e e d s of $93 m i l l i o n and three
S t a t e and local g o v e r n m e n t b o n d issues amounting to $150 m i l l i o n w e r e
offered.
T h i s w e e k , e n d i n g A u g u s t 16, a $50 m i l l i o n c o r p o r a t e issue
and two large S t a t e and local issues w i t h p a r v a l u e of $128 m i l l i o n
are o n the c a l e n d a r to o b t a i n new c a p i t a l .
In a d d i t i o n , a $25 m i l l i o n
issue of J o h n s o n C o u n t y W a t e r D i s t r i c t N o . 1, K a n s a s , is scheduled, for
sale to refund o u t s t a n d i n g s e c u r i t i e s .
Bond yields.
Yields on most seasoned, long-term bonds w e r e
s t a b l e last w e e k .
B a a - r a t e d c o r p o r a t e b o n d y i e l d s , h o w e v e r , fell o n e
b a s i s p o i n t to 4.83 p e r cent, their lowest level since m i d - A p r i l 1959;
as a r e s u l t , the spread b e t w e e n Aaa and Baa-raffed c o r p o r a t e b o n d s n a r r o w e d
to 5 4 b a s i s p o i n t s , the smallest since 1956.
New c o r p o r a t e b o n d y i e l d s , adjusted to an Aaa b a s i s , a v e r a g e d
4.27 p e r cent last w e e k , o n e b a s i s p o i n t b e l o w the a v e r a g e for the p r e v i o u s
w e e k , b u t still o n l y s l i g h t l y b e l o w the top o f the r a n g e that hasf. p r e vailed s i n c e e a r l y this year.
S h o r t - and i n t e r m e d i a t e - t e r m interest r a t e s .
Rates on 3-month
and 6 - m o n t h T r e a s u r y b i l l s r o s e two and o n e b a s i s p o i n t s , r e s p e c t i v e l y ,
last w e e k , and, at 3 . 2 6 and 3 . 3 9 p e r c e n t , w e r e at their h i g h e s t levels
since M a y 1960.
Y i e l d s o n 3 - 5 y e a r U . S. G o v e r n m e n t o b l i g a t i o n s w e r e
u n c h a n g e d . A l l m a j o r f i n a n c e c o m p a n i e s announced the following increases
in a d v e r t i s e d rates o n d i r e c t l y - p l a c e d p a p e r o n the 9 0 - 2 7 0 d a y m a t u r i n g
last T u e s d a y :
the r a t e o n p a p e r m a t u r i n g in 9 0 days through D e c e m b e r 31
w a s raised o n e - e i g h t h of a p e r c e n t a g e p o i n t to 3 - 1 / 2 p e r cent; the r a t e
on p a p e r m a t u r i n g J a n u a r y 2, 1 9 6 4 through 2 7 0 days w a s increased o n e fourth of a p e r c e n t a g e p o i n t to 3 - 5 / 8 p e r cent.
A s a r e s u l t , the a v e r a g e
rate o n p a p e r m a t u r i n g in 90-179 d a y s increased 15 b a s i s p o i n t s last
w e e k to 3.53 p e r cent, the h i g h e s t level since M a y 1960.
The average
e f f e c t i v e F e d e r a l funds r a t e r e m a i n e d at 3 . 5 0 p e r cent.
O t h e r rates
were unchanged.
Stock prices.
Common stock prices advanced sharply further
last w e e k in m o d e r a t e l y a c t i v e trading.
P r i c e s , as m e a s u r e d b y S t a n d a r d
and P o o r ' s c o m p o s i t e i n d e x o f 5 0 0 s t o c k s , increased a l m o s t two p e r cent
to c l o s e at 70.48 o n A u g u s t 9.
A t this level, a v e r a g e p r i c e s had r e -




H. 14

-2-

covered about nine-tenths of their losses of the past several
and w e r e within one-half of a per cent of their recovery high
at the end of M a y , but still 3 per cent below their late 1961
Trading volume averaged 3.7 million shares a day, 0.4 million
above the average for the previous week.

months
reached
peak.
shares

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, t o
L O N G - T E R M B O N D YIELDS, H I G H - G R A D E

C O R r O t A T I Aaa

S T A T E AND t O C A l G O V E R N M E N T A M

I I I I I I I IJJ
L I I I I I I IIIIIlII I l l lI Il I lI I II I I I K J

1.5

E x h i b i t A - Part II

Date

Corporate
A a a 1/

U . S. G o v t .
long-term 2/

S t a t e and
local
government
A a a 3/

Spread b e t w e e n
U. S. Govt, and
S t a t e and
Corporate
local A a a
Aaa

(per c e n t )
1958 - Low
1 9 5 9 - 6 0 - High
1960-61 Low
1961 - High
1962 - Low
1963 - Hi£h
Low
July
July
July
Aug.
Aug.

12
19
26
2
9 £/

3.55
4.61
4.21
4.46

(5/2)
(1/29/60)
(3/17/61)
(9/35)

3.07
4.42
3.70
4.07

(4/25)
(3/8/60)
(5/12/61)
(12/29)

2.64
3.65
2.99
3.37

(5/1)
(9/24/59)
(9/1/60)
(7/6)

(3/28)

1.2239 ( ( W
4.19 (3/29)

3 . 8 7 (1/18)

2.93

4.24
4.27
4.29
4.29
4.29

4.03
4.02
4.00
3.99
3.99

3.11
3.11
3.10
3.08
3.08

.22
.59
.19
.57

•34
.92
.46
.76

•As

i:82
.90

.21

.92
.91
.90
.91
.91

.21

.25
.29
.30
.30

v/ Preliminary.
l/ Weekly average of daily figures. Average tenn of bonds inolttied is 22-24 years,
2/ Weekly average of daily figures. The aeries includes bonds due or callable in 10 years or more*
3/ Thursday figures. Only general obligation bonds are included) average term is 20 years.
Rote*—High s and lows are for individual series and may be on different dates far different
series, for spreads, high refers to widest, and loir to narrowest*




EXHIBIT B. Part I
L O N G - T E R M B O N D YIELDS, L O W E R - G R A D E

s u i t AND 10CAI GOVERNMENT

list

1940

1941

E x h i b i t B - Part II

Date

Corporate
B a a 1/

S t a t e and
local govt.
B a a 3/

Spread b e t w e e n
A a a and B a a
S t a t e and
Corporate
local govt.

(per c e n t )
1958 - Low
1959-60 - High
1960-61 L o w
1961 - H i g h
1962 - Low
1963 - High
Low
July
July
July
Aug.
Aug.
Note:

12
19
26
2
9 £/

4.51
5.36
4.98
5.13
4.92

(7/11)
(2/12/60)
(9/9/60)
(10/27)
(1^/21)

4.93 (1/4)
4.83 (8/9)
. 4.84
: 4.84
: 4.84
::
4.84
4.83

For footnotes see Exhibit A,




3.64
4.46
3'93
4.16
3.52

(5/1)
(1/7/60)
(13/9/61)
(3/23)
(5/17)

.77
.84
.66
.81
.63

.93
1.08
.57
.93
.56

3.63 (6/27)
3 . 5 2 (5/23)

.71
.54

.63
.47

3.62
3.61
3.57
3.57
3.57

.60
.57
.55
.55
.54

.51
.50
.47
.49
.49

S H O R T - A N D I N T E R M E D I A T E - TERM I N T E R E S T R A T E S , G O V E R N M E N T

n

LLL'U ±LLLLLLll
m

i

3 • 5 YtAI ISSUIS

J.

1 JJ_LLL LLLlJ I M I I I M H U I I I I I I I I II I ll I M M I I I I I I I n i i i I I i
»"•'

I960

.

1961

,,62"

E x h i b i t C ^ P a r t II

Date

Discount
rate
1/

3-month
bills 2/

Yields
6-month
b i l l s 2/

3-5 year
issues 2/

Spread b e t w e e n yields on 3 m o n t h bills and yields on
6-mo. bills 13-5 vr. issues

(per c e n t )
1958 - Low
1 9 5 9 - 6 0 High
1960-61 Low
1961-62 High
1962 - Low
1963 - High
Low

1.75
4.00
3.00
3.00
3.00
3.50
3.00

.58
4.59
2..11
2. 97
2,,65
3 .26
2,.88

July
July
July
Aug.
Aug.

3.00
3.50
3.50
3.50
3.50

3,.22
3,.19
3..19
3.,24
3,.26

12
19
26
2
9 jj/

(5/29)
3 . 0 2 (12/26) 2 . 1 4 (6/6)
(1/8/60)
5.07 (1/8/60) 5 . 0 0 (12/24/59)
(10/28/60) 2.35 (4/28/61)3.15 (5/12/61)

.26
.79
.12

(7/13/62)
(6/8)
(8/9)
(3/15)

.44
.02
.17
.04

.04
1.81
.38
1.51
.52
.70
.51

.12
.17
.17
.14
.13

.58
.61
.60
.53
.51

3/
2/

3.13 (7/20/62)3.88 (2/2/62)
2 . 7 4 (6/8)
3.41 (12/28)
3.39 (8/9) 3 . 8 0 (7/19)
2.93 (3/8) 3 . 4 4 (1/18)
3.34
3.36
3.36
3.38
3.39

3.80
3.80
3.79
3.77
3.77

Weekly rate shown ia that in effect at end of period at the Federal Reserve Bank of New York.
Market yield; weekly averages conputed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
i.r.te.—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.




S H O R T - A N D I N T E R M E D I A T E - TERM I N T E R E S T R A T E S ,
B A N K S AND OTHER PRIVATE B O R R O W E R S
Weekly

STOCK EXCHANGE
CAll 10ANS
Going Rale
-FINANCE COMPANY PAPER
PRIME RATI

YvyV

f

FEDERAL FUNDS

JJJJ.J_LU.1I1-L1JUU_U.LJ 0
1962

1963

E x h i b i t D - P a r t II

Stock Exchange
call l o a n 1/

Finance company
p a p e r 2/

Prime
rate 1/

Federal
funds 3/

Spread between
3 - m o . b i l l s and
finance co. paper

(per c e n t )
1958 - Low
1959-60 - High
1960-61 L o w
1961-62 - H i g h
1962 - L o w
1963 - H i g h
Low
July
July
July
Aug.

12
19
26
2

Aug. 9 £/

2]

1 % % %

3.50
5.50
4.50
4.50
4.50

3.50
5.00
4.50
4.50
4.50

1.13
5.13
2.50
3.25

(8/8)
(3/22/60)
(8/5/61)
(7/20/62)

.13 (5/29)
4 . 0 0 (5/13/60)
.43 (3/27/61)

3-00 (12/28/62)

-.35
.

1.02
.11

2.88 (6/1)

1.30

( 3/26)

.56
.19

3 . 5 0 (8/9)
2.45 (7/26)

.36
.09

4.50
4.50

4.50
4.50

3.53
3.13

4.50
4.50
4.50
4.50
4.50

4.50
4.50
4.50
4.50
4.50

3.34
3.38
3.38
3.38
3.53

(8/9)
(5/31)

2.97
3.15
. 2.45
3.50
3.50

.12
.19
.19
.14
.27

drily rates publiehed b , finance companies for directly placed pap.rfor vMying ^.turltle,


For spreads, high refers to widest, and


lor to narrowest.

STOCK M A R K E T
19 41-43 avurogc-10

use

1959

)9i0

1161

1962

1*63

E x h i b i t E - Part II

Stock price
index 1/

Common .
Trading
S t o c k m a r k e t customer credit
stock
v o l u m e 3/
Customers 1
Bank
yields 2/
(millions
debit b a l loans to
(per cent) of shareo)
_4/_ "otlieru"
(In m i l l i o n s of d o l l a r s )

1961-62 - High
Low
1963 - High

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

2.82
3.96

7 0 * 8 0 (5/31)
64.10 (3/1)

3.13
3.36

June
July
J u l y 26
Aug. 2

70.11
69.07
68.54
69.30

Aug. 9 £/

70.48

3.16
3.20
3.24
3.20
3.16

Low

10.1
2.4
.

5.5
3.2
4.5
3.5
3.2
3.3
3.7

5,602(12/61) 4,259 (12/61) 1,377(8/30/61)
A,876(7/62) 3,562 (7/62) 1,269(9/26/62)
6,420(6/63)4,898(6/63)1,620(7/24)
5,595(1/63)4,208(1/63)1,378(2/23)
6,420

4,898

1,522
c/ 1,616
1,620
1,616

n»a«—-Not available, jg/ Preliminary•
1/ Standard and. Poor's composite iniex of 500 common stocks, weekly closing prices, 1941-43*10.
Monthly data are averages of daily figure a rather than of Friday'a only. Highs and lows are
Friday's data only.
1/ Standard and Poor a composite stock yield based on Wednesday data converted to weekly cloain*
prices by Federal Reserve. Yields shown are for dates on which piice index reached its hitf/'
3/
5/

Averages of daily trading volume on the New York Stock Exohinge,
find of month figures for member films of -the New York Stock Exchange Which carry imrfin accounts:
excludes balances secured by U. S. Goveramnb obligations.
Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
U. b Government securities. Prior to July 1, 1959, such loans are excluded only at banks in '
" e w r ork and Chicago. Weeicly reporting banks account fbr about 70 per cent of loans to cther-a.
For further detail sea Bulletin.




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

OME MORTGAGES

ABB C O R P O R A T E B O N D S

1959

I960

1961

Exhibit F - Part II
C o n v e n - spread b e FHA
tween yields
mortgages m o r t on conv. &
2/
gagesl/
FHA m t g s .

Da te

1956
1957
1958
1959-60
1962-63

1963

-

Low
High
Low
High
High
Low

- April
May
July

—

Aaa C o r p o r a t e

Nev?^/

Seasoned-!?/

Spread b e t w e e n y i e l d s on
new c o r p o r a t e bonds and
FHA m t g s .

4.68
5.63
5.35
6.24
5.72
5.44

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
1.14 .

5.44
5.44
5.44
n.a.

5.80
5.80
5.80
no-

.36
.36 ^
.36
n.a.

4.28
4.30
4.26
4.31

4.21
4.22
4.23
4.26

1.16
1.14
1.18
n.a.

Seasoned bds.

1.03
.05
.73
.39
-.16
.07
.08
.03
.05

Neither mortgage nor bond yields take into account servicing costs which are mioh higher for mortgagee
than horde. 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

2f

Based on FHA field-office opinions about average bid prices in the private s eoondary market for
new-homa mortgages for immediate delivery. Data relate only to 2 5-year mortgages with down payments
of 10 per cent or more, weighted by probable volume of transactions. Yields computed by FRB,
assuming 25-year mortgages are paid off in 12 ^ a r s . Dashed lines indicate periods of adjustment
to changes in the contractual interest rate,
3/ Based on FHA field offioo opinion on typical interest.rates (rounded) on conventional first
mortgages prevailing in the market areas of insuring office cities. Beginning with April 1961,
rate relates only to new-ham mortgages;, prior to that date, rate related to both new as well as
existing-horiti mortgages. Dashed line indicates this change in the series,
Af oee note for Exhibit C.
"5/ Moody's Investor Service. Monthly averages of daily data. See Exhibit A.




JEXHIBIT C; Part I
YIELDS O N N E W A N D S E A S O N E D C O R P O R A T E B O N D S

NEW ISSUES

SEASONED A

Exhibit G - Part II
Y i e l d s o n N e w C o r p o r a t e Bond Issues A d j u s t e d to a n A a a basis
N u m b e r A m ' t o f issues A v e r a g e
yield
included (mil,
of
fner c e n t )
of dollars)
issues

N u m b e r A m ' t o f issues A v e r a g e
yield
included (mil.
of
(net cent)
of dollars)
W e e k l y averages:

. 1
3
2
2

:

25.0
266.0
30.0
76.0

4.22
4.31*
4.27
4.27

50.0
34.0
115.0
46.5

4.23*
4.25
4.24
4.25

July

5
12
19
26
Aug.
2
9

-2
1
3
1
2

. 4.30*
4.43*
4.31
4.28
4.27

80.0
25.0
58.0
70.0
75.0

'

* 4 aanaa rtf tvill

i

1
2
1
3

4.23
4.18
4.28
4.30

I

3
10
17
24
31
7
June
14
21
28

45.0
6.0
95.0
128.0

I

May

2
1
3
3

t

1963 - Apr. - 5
12
19
26

e e i i s i s i s i E




H. 14

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

New cap ital
1963
January
February
March

Corporate 1/
1962
1
1961

|

1963

State and local 2/
1961
1962
I
I

E/
r/
£./

731
726
973

876
1 ,133
628

711
689
764

2,118
1,259
1,318

£/
£/
£/

868
856
907

873
912
786

722
640
1 ,034

582
749
579

1,028
762
647

e/
e/

550
650

612
544
427

486
604
734

835
703
,103
1

1,090
948
1,000

650
578
550

679
789
610

2 ,351
e/2,939

2 ,258
3 ,005
1 ,910
2 ,641

1,809
4,695
2,437
3,038

E/2,431
E/2,630

2 ,637
2 ,571
1 ,582
1 ,779

2 ,165
2 ,396
1 ,824
2 ,078

1st half
Three quarters
Year

e/5,290

5,,264
7.,173
9.,814

6,504
8,941
11,979

E/5,061

5,,208
6,,790
8 ;,568

4,561
6 ,385
8 :,463

1st
2nd
3rd
4th

2, 2 8 4
e/2, 639

613
594
1 ,144

592
859
807

580
667
562

915
924
e/1 ,100

1 ,113
760
1 ,132

700
700

April
May

1/

July
August
September

e/
e/

£/

October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

Excluding finance companies 3/
quarter
quarter
quarter
quarter

Year

e/
1/
2/
3/

2 :,199
2 j,919
1, 775
2 3 410

1,554
4,552
2,337
2,807

9, 303

11,253

Estimated by Federal Reserve]>/ Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance
companies.




j
ii
1

H. 14 ft

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

month

Net proceeds tor

Gross proceeds for new
capital and refunding
1/

Quarter

B<3nds
Total Publicly Privately
offered offered

2 ,832

955

1 ,462

Memo:
foreign
issues
included

Common
and

Mfg.

1/

j2/
Other
issuers

625

696

381

997

76
155
69
62

515
1,466
935
792

381
1,081
595
836

81
1,095
104
147

832
1 ,052
803
1 ,263

17

416

new capital

Public Communiutility cations

1 ,992
5 ,352
2 ,566
3 ,236

662
2 ,303
772
967

880
1 ,275
1 ,139
1 ,424

449
1,774
654
845

2 ,378
3 250
2 ,184
2 957

1 ,155
1 ,389
853
1 ,089

716
1 ,222
1 ,024
1 ,568

507
639
307
300

68
257
56
179

655
996
601
769

430
983
375
568

456
231
275
321

717
794
659
986

2 700
3;,750

1 ,108
1 ,385

1 ,306
1 ,986

287
378

128
n.a.

947
714

326
796

236
181

842
1 ,248

1.,155
987
1.,094

336
414
217

509
348
567

310
225
310

25
12
25

271
215
306

306
362
168

25
80
42

487
291
485

647
884
847
1.,217
801
1,,232
630
922
632
976
784
1.,197

273
497
386
654
247
488
200
477
176
539
286
264

232
232
253
227
420
575
366
363
295
314
446
808

143
155
209
336
134
169
67
82
161
-123
52
125

3
12
54
10
147
100
13

205
131
318
384
270
342
217
218
166
153
271
345

89
148
193
377
196
410
118
110
148
141
175
252

73
362
21
88
64
79
88
120
67
260
4
57

225
218
275
264
229
301
159
301
199
282
253
451

695
642
1.,363
1.,067
1.,363
1.,320
740

350
259
499
380
550
455
280

243
289
774
468
718
800
350

102
94
91
218
95
65
110

25
43
60
59
183

135
220
592
155
234
325
240

114
115
97
363
233
200
150

125
68
43
72
84
25
60

238
191
412
325
373
550
250

-

43
46
34
99

n.a.

p/ 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 and other transportation, real estate and finance and commercial
and other. Source.--Securities and Exchange Commission.




H. 14

Exhibit J
Other Security Offerings
(In millions of dollars)

1963

E/
£/
e/
e/

Gross long-term 1/
Foreign government 2/
=c
1962

232
133
76
57
114
10
60

142
10
35
10
86
50
25
8
31
151

29
20
2
66
29
5
2

Federal agency 3/
I
1962
I
196T

148
£/

246
156
252
100
149
278

186

£/ --

e/ 460
e/ -150
175

250
193 '

43
34

e/

el 682

794

1,188

1,448

863

779

Net Short-term 4/
Federal agency

State and local government 5/
7-5
272
-367
. 589
E./-151

!/
2/

3/
4/

18
466
-186
127
-84
-118
78
339
-406
71
234
-161

54
-116

247
-156
226
-364
82
284
261
227
-157
379
55
-80

378

520

1,004

3.01

156

580

160
195
-8

-103
-42
-155
109
518
-86
-6

-106
-189
-482
292
£/ 380
£/ 275
£/ 392

3/
-144
-162
-174
-79
-87
207
22
193
108
98
56
-114
-76
-417

Preliminary.
e/ Estimated by Federal Reserve.
n . a . — N o t available.
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.
Includes securities offered in the United States by foreign governments and their
political subdivisions and international organizations. Source: Securities and
Exchange Commission.
Issues not guaranteed by the U. S. Government. Source: long-term, Securities and
Exchange Commission; short-term, Treasury Department and Federal Reserve.
These data differ from those in Exhibit H and above in that they represent new
offerings less retirements, whether from the proceeds of refunding issues or from
other funds. Data include only issues with original maturity of one year or less.
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 one year. Source: Bond Buyer and Federal Reserve.

5/



Exhibit R

H.14

Kb

Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) \J
Proceeds of Large Issues Offered
(In millions of dollars)

Month

Corporate
Bonds
(Other than
Convertible
convertibles)
bonds

Total

1962 - July
August
September
October
November
December
1963 - January
February
March
April
May
July

165
286
191
434
178
198
234
186
394
409
149
348
221

135
226
100
398
178
178
215
125
372
263
149
348
180

Stocks

30
60
91
36
20
--

35
---

19
26
22
146

41

State
and
local
government

Other

2/

20

321
272
153
320
217
193
344
367
570
431
489
472
279

194
25
75
48
63
134
43
460
60

Large Individual Issues Offered July 1 through August 9

Type 3/

Issuer

CORPORATE
*Burroughs Corp.
Minneapolis Honeywell Reg. Co.
Indiana & Michigan Elec. Co.

Com. stk.
S.F. deb.
1st mtg. bds.

STATE AND LOCAL GOVERNMENT
State of New Hampshire
Phoenix s Arizona
State of California
New York City Transit Auth.

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

OTHER
Nippon Tel. & Tel. Public Corp. Bonds




Amount
(millions Maturity
of
dollars)
17.6
30.0
45.0

1993
1988

23.4
12.0
100.0
38.3

1964-93
1969-90
1965-90
1965-87

20.0

1978

OfferCoupon
ing
rate or net
interest
yield
cost

4-3/8
4-1/4

2.74
3.25
2.99
3.32

5-3/4

4.33
4.27

1.70-3.15
2.60-3.35
1.95-4.25
2.10-3.40

6.08

Rating

Aa
Aa -

Aaa
A
Aa
—

.

H. 14

*
1/
2/
3/

K-2

Rights offering.
n . a . — N o t available.
Includes corporate and other security offerings of $13 million and over; State and
local government 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, ( .0. denotes general
obligations; Rev.-Ut., revenue obligations 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 lease payments.




Exhibit L

I

H. 14

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S; Treasury) 1/
Expected Proceeds from Forthcoming Large Issues

Date of
computation
Corporate
1962 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1963 - Jan.
Feb.
Mar.
Apr.
May
June
July

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

During month following
date shown
State and
Other 2/
local govt.

302
170
363
203
170
269
167
142
376
149
223
170
221

273
61
187 ^
96
194
177
376
458
381
447
255
142
329

175

75
25

45
40
460
75
20

^

Subsequent to
date shown
I State and
|
local govt.
Corporate
477
312
546
328
360
314
412
572
421
234
288
215
267

427
215
387
243
328
311
843
755
763
599
582
287
512

Forthcoming Large Offerings, as of August 9

Type
CORPORATE
Commercial Credit Co.
United Aircraft Corp. .
Lone Star Gas Co.
*Sprague Electric Co.
Northern States Power Co.
New England Tel. & Tel. Co.

Notes
Deb.
Deb.
Deb.
1st mtg. bds.
Com. stk.

Amount
(millions of
dollars)
50.0
42.9
35.0
15.0
15.0
31.0

Approximate date of
offering
August 14
August 20 (rts. ex.)
August 28
Late August
September 19
September (rts. ex.)

STATE AND LOCAL GOVERNMENT
Southern Illinois University
Public Housing Auth.
Alexandria, La.
Fulton County, Georgia
Lewisport, Kentucky
*Los Angeles Unif. Sch. Dist.,
California
*Los Angeles Dept. of Wtr. &
Pwr., California

Rev.-Rent
--

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




11.3
116.2
11.4
16.0
50.0
25.0

August 13
August 14
August 20
August 21
September
September

12.0

October 9

Other 2/

175

75
25
33
45
40
460
75
20

H. 14

L-2
Forthcoming Large Offerings, as of August 9

Issuer

Type

Amount
(millions of
dollars)

Approximate date of
offering

j

STATE A N D LOCAL GOVERNMENT (Cont'd)
Pittsburgh, Pa.
Jefferson County, Colorado
Dade County, Florida
Jacksonville Expressway Auth., Fla.

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

35.0
12.9
46.0
40.0

Indefinite
Indefinite
Indefinite
Indefinite

OTHER
None

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 of Federal agencies.
Note.--Deletions for reasons other than sale of issue: None.




^

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

Sale
Date

Amount
(millions of
<1n1 1 arcA

Issuer and Description of Issue

A.
6/12

10.0

7/10

20.0

7/10
7/17

20.9
25.0

7/17

15.0

8/1

20.0

8/2

7,3

Public Offerings

Sold June 1 through August 9

Oslo, N o r w a y — 5 - 1 / 4 % bonds, due 1 9 7 8 — r e o f f e r e d to
yield 5.47%
Milan, Italy--5-l/2% bonds, due 1 9 7 8 — r e o f f e r e d to
yield 5.63%
Hitachi, Ltd.--Common stock
United Mexican S t a t e s — 6 - 3 / 4 % sinking fund bonds,
due 1 9 7 8 — r e o f f e r e d to yield 7.00%
United Mexican States--6% bonds due 1966-68-reoffered to yield 6.00%
Nippon Telephone & Telegraph Public Corporation--5-3/4%
guaranteed sinking fund bonds due 1 9 7 8 — r e o f f e r e d to
yield 6.08% '
Tokio Marine and Fire Insurance Co.--common stock




B.
None

Prospective Offerings

M-2
Part II:

Amount
(millions of
dollars)

Date
Reported
6/4

Private Placements--Reported June 1 through August 9

-

18.0

6/13"

15.0

6/20

13.5

6/25

12.5

6/28 ^

10.0

6/28

5.0

7/18

26.0

7/18

4.0

*8/6

2.1

*8/6

5.0

Issuer and Description of Issue

Consolidated Gold Fields of South Africa, Ltd.
promissory notes, maturing 1971--no information
available on takedown
Nippon Express Co.--6-1/2% convertible debentures,
maturing 1978--no information available on takedown
Mitsubishi Electric Corp.--6-1/2% convertible debentures
maturing 1978--no information available on takedown
Quebec Natural Gas Corp.--5-1/2% first mortgage bonds,
maturing 1987--no information available on takedown
Farbwerke Hoechst A.G.--5% promissory notes, maturing
1968--no information available on takedown
Dai Nippon Printing Co. Ltd.--convertible debentures,
maturing 1978--no information available on takedown
Pacific Petroleum Ltd.--5-1/2% secured notes, maturing .
1 9 7 8 — n o information available on takedown
/
Copenhagen County Auth., Denmark--5-1/2% external notes,;
maturing 1968--no information available on takedown
Banco Nacional de Credito Agricola; S.A., Mexico C i t y — '
6-1/2% promissory notes, maturing 1964-68--no
%
information available on takedown
Austrian Investment Finance Corp.--notes, maturing
1973--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 date a placement is reported.
*--Included in table for first time.