Full text of H.16 Capital Market Developments : August 22, 1966
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Not for Publication DECONTROLLED AFTER SIX MONTHS H. 14 August 22, 1966 T ] CAPITAL MARKET* DEVELOPMENTS CAPITA THE UNITED STATES Corporate and municipal bond markets. Both the corporate and municipal markets will receive a below-average amount of new security issues this week. Southern California Edisor, Co pany's $80 million debt offering accounts for nearly one-half of the new corporate volume. Long-term Public Security Offerings 1/ (In millions of dollars) Corporate New Capital I Refunding State and local Government New Capital 1 Refunding Sold: 52 week avg. Aug. 12 Aug. 19 187 2 207 258r / 270 194r/ 205 175 4 19r/ 150 Scheduled: Aug. 26 1/ Federal Reserve estimates based upon published reports of issues sold and scheduled for offering; corporate rights offerings are included as of the date subscription rights expire. Corporate bond yields advanced sharply to again register new postwar highs. The majority of new corporate debt offerings last week were moderately well received at higher yields. Pittsburgh Plate Glass Company's $ 125 million debenture issue--Aa-rated and carrying 10 year call protection--was estimated to be 90 per cent sold at its reoffering yield of 5-5/87=. Yields on investment grade municipal bonds rose 6 to 7 basis points last week. Most new issues were reoffered to investors at yields 20 to 25 basis points higher than the previous week. Private housing starts and permits. Seasonally adjusted private housing starts continued downward in July. The decline, which amounted to 16 per cent brought the annual rate to 1,064 thousand. This was down two-fifths from the unusually high rate reached in December of 1965 and the lowest since December of 1960. On a threemonth moving average, the rate in the May-July period reached 1,218 thousand, compared with 1,518 thousand in the first quarter of this year. Then, partly because of the still high backlog of commitments made earlier, underlying mortgage conditions were relatively much more favorable than has been the case in recent months. H. 14 -2- Yields in Security Markets Change from preceding week Level Latest Week High-Grade Notes and Bonds Corporate 5.68 5.35 +10 4.81 5.61 +21 3.94 4.20 +6 Federal funds Treasury Bills 5.13 +60 3-month 6-month 5.06 5.37 +19 +24 New Seasoned U.S. Government Long-term 3-5'year State and loc. govt. Moody's Aaa Std. & Poor's high grade +7 Money Market Corporate Bonds Still in Syndicate (In millions of dollars) Date Offered Amount (millions of $) Issuer 8/17 20.0 Northern 111. Gas Co. 1st mtg. bds., 6's, 1991 8/18 12 5.0 Pittsburgh Plate Glass Co. S.F. debs., 5-5/8's, 1991 Reoffering Yield 5.85 Rating Estimated proportion sold Aa 4/5 9/10 5.625 Blue List of Municipal Dealer's Advertised Inventories Latest Date 412 (8/16) (In millions of dollars) End of Previous week 410 Recent High 636 (2/17) H. 14 -3- All regions shared in the further decline in July by amounts ranging from 6 per cent in the Northeast states to 22 per cent in the West. Nationally, Government-underwritten starts accounted for 17 per cent of the recuded July total, about the same as in July of 1965. Seasonally adjusted building permits also declined further in July--by 5 per cent, and at an annual rate of 902 thousand were below the lows reached in I960, So far this year, the sharpest reductions have been in permits for multi-family structures, but the cut-backs in single-family structures has also been substantial. Stock market credit. Customers' net debit balances carried by New York Stock Exchange member firms declined $.1 billion in July, to an end-of-month total of S5.7 billion. Money borrowed by brokers and dealers on customers' collateral advances $150 million to $3,1 billion while customer's net free credit balances declined $64 million in July to about $1.6 billion. More information on stock market credit can be found on the following page. Stock prices. Common stock prices declined significantly last week in moderate trading. Standard and Poor's index of 500 stocks dropped 3.55 points, to end the week at 79.62. Common stock prices now stand approximately 15 per cent below the 1966 high of 94.06 registered on February 9. Trading volume averaged 6.5 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 the Federal Reserve System. H. 14 -4- STOCK MARKET CREDIT (In millions of dollars) Months Total Customer Net Debit balances with NYSE member firms Credit Broker & Dealer Credit Bank lovns to others Money Customers 1 than brokers and Borrowed net free dealers for purchas- Cust. Other credit ing & carrvintr secur. coll. coll. balances Outstanding: 1955-56 High 4,047 (5/56) 2,823 (12/56) 1,255 (4/56) 1,873 430 1957-58 Low 3,554 (1/58) 2,482 (12/57) 1,060 (11/57) 1,344 188 1959 1960 1961 1962 1963 1965 High Low High Low High Low 4,764 4,142 5,602 4,876 7,298 6,833 1,373 1,121 1,377 1,269 1,727 1,865 2,044 1,801 2,572 1,856 3,892 2,882 318 237 385 235 597 446 1,257 940 1,508 1,091 1,211 1,192 1964 - Dec. 1965 - Dec. 1966 - July 7,053 7,705 7,871 5,079 5,521 5,668 3,393 2,889 3,127 517 687 604 1,169 1,666 1,597 -251 41 162 81 187 401 21 224 -127 168 -86 7 92 -41 - 12jb -251 23 108 79 136 312 30 202 -108 190 -67 -2 -2 -98 -98 - Change in outstanding: 1965 - July Aug. Sept. Oct. Nov. Dec. 1966 - Jan. Feb. Mar. Apr. May June *June July *July (4) (5) (12) (7) (11) (7) 3,401 3,004 4,259 3,562 5,586 4,863 (4) (7) (12) (7) (11) (7) 1,974 2,184 2,203 — 18 54 2 51 89 -9 22 -19 -22 -19 9 * 94 57 *-28 (5) (5) (8) (9) (12) (2) -297 -320 9 23 -130 26 -96 -23 48 76 -41 90 59 -92 11 -2 -104 47 128 42 -48 -29 42 53r/ 42 53r/ 150 • -102 150 -102 1,069 (1/55) 807 (4/57)' (3) (4) (4) (9) (11) (8) -64 -40 176 106 4 187 64 35 57 -78 95 -178 -178 -64 -64 Note: With the exception of bank loan data, figures are reported to the New York Stock Exchange by member firms carrying margin accounts. Bank loans to others than brokers and dealers for purchasing and carrying securities are for weekly reporting member banks. Net debit balances and customer free credit balances are as of the end of the month; bank loans and money borrowed are reported for the last Wednesday of the month. Numbers in parenthesis denote month of year. All figures exclude credits on, or to carry, U.S. Govt, securities. * — N e w Series. / LOUG-TEIZM BOND YIELDS, HIGH-GRADE 5.5 CORPORATE Aaa 4.5 4.0 U.S. GOVERNMENT " _/ 3.0 STATE AND LOCAL GOVERNMENT Aaa 2.5 1961 1962 1963 Exhibit A — State and local government Aaa 3/ Corporate Aaa 1/ 1959-60 - High 1962-63 - Low 1965 - Low 1966 - High - Low 4.61 (1/29/60) 4.19 (3/29/63) 4.41 (3/12) 5.35(8/19) 4.73(1/7) 4.42 (1/8/60) 3.65 (9/24/59) 3.85 (1^/26/62) 2.88 (13/8/62) 4.13 (6/25) 2.94 (2/11) 3.94(8/18) 4.81(8/19) 3.39(1/13) 4.42(1/21) 5.17 5.22 5.24 5.25 5.35 4.75 4.72 4.73 4.73 4.81 3.77 3.78 3.79 3.87 3.94 1965 Part II Date July 22 29 Aug. 5 12 19£/ U.S. Govt. long-term 2/ 1964 1966 Spread between U. S. Govt, and Corporate State and local Aaa .59 (8/5/60) .21 (12/27/63) .22 .54 .14 .42 .50 .51 .52 .54 .92 (4/22/60) .80 (2/5/62) .94 1.19 .86 .98 .94 .94 .86 .87 •a/ Preliminary, J/ Weekly average of daily figure*. Average term of bonds included is 22-24 years, Z/ 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 20 year*, Mote.—Highs and Iowa are for individual series and may be on different dates for different series* For spreads, high refers to widest, and low to narrowest. LONG-TERM BO ND YIELDS. LOWER GRADE C O R P O R A T E Baa 4.3 4.0 S T A T E A N D LOCAL G O V E R N M E N T Baa 3.5 3.0 1961 1962 1963 1964 1965 1966 Exhibit B -- Part II Date Corporate Baa 1/ State and local govt. Baa 3/ (per cent) 1959-60 - High Year end - 1962 1964 1965 1966 - High Low July 22 29 Aug. 5 12 19£/ Metes Spread between Aaa and Baa State and Corpora te local govt. 5.36 (2/12/60) 4.93 4.80 5.04 5.85(8/19) 5.05(1/14) 4.46 (3/7/60) 3.57 3.51 3.79 4.50(8/18) 3.78(1/20) .84 .70 .37 .31 .54 .31 1.08 .63 .52 .39 .62 * .38 5.69 5.72 5.75 5.78 5.85 4.30 4.33 4.34 4.46 4.50 .52 .50 .51 .53 .50 .53 .55 .55 .59 .56 For footnotes eoe Exhibit A. 7 •TERM INTEREST RATES 3-5 YEAR ISSUES 6- MONTH BILLS F. R. DISCOUNT RATE ZV 3-MONTH BILLS Exhibit C -- Part II 1959-60 - High Year end - 1961 1962 1963 1964 1965 1966 - High Low July 22 29 Aug. 5 12 19£/ Discount ra te 3-month bills 2/ 1/ 4.00 3.00 3.00 3.50 4.00 4.50 4.50 4.50 2.89 3.52 3.83 4.47 4.50 4.50 4.50 4.50 4.50 Yields 6-month bills 2/ (per cent) 3-5.ypar issues, 2/ Spread between yields on 3month bills and vields on 6-mo. bills 13-5 vr. issues , § 1 Date 5.06(8/19) 4.39(0/24) 5.07(3/8/60) 2.90 2.93 3.64 3.93 4.66 5.37(8/19) 4.53(6/24) 3.81 3.41 4.07 4.07 4.90 . 5.61(8/19) 4.80(4/8) .79 .24 .04 .13 .10 .19 .31 .09 4.89 4.73 4.81 4.87 5.06 4.99 4.89 4.99 5.13 5.37 5.22 5.25 5.32 5.40 5.61, .10 .16 .18 .26 .31 4.59(Ve/60) 2.66 ¥ 1.81 1.15 .52 .55 .24 .43 .64 .21 .33 .52 .51. .53 .55 Weekly rate shown l a that in effect at end of period at the Federal Reserve Bank of Mew Yoric, Market yields weekly averages computed from daily closing bid prices. Series of 3-8 year issues consists of selected notes and bonds. Note.—Highs and lows are for individual series and may be on different dates for diffennt s e r i e s , for spreads, high refers to widest, and low to narrowest. Vllu;;TBANKS AiJD AND INTEK/.UBIATE-TERM OTHER PRIVATE INTEREST RATES, BORROWERS PRIME RATE FINANCE COMPANY PAPER F.R. DISCOUNT RATE FEDERAL FUNDS Da te 1959-60 - High Y e a r end - 1961 1962 1963 1964 1965 1966 - High Low July 22 29 5 12 19 £ / Aug. 1963 1964 Exhibit D -- Part II 1962 1961 Prime rate . 1/ 1965 Finance company Federal funds 3/ paper 2/ (per cent) 5.00 4.50 4.50 4.50 4.50 5.00 5.13 (1/2^/60) 3.00 3.19 3.88 4.06 4.75 4.00 (5/13/60) 2.88 3.00 3.50 4.00 4.63 6 . 0 0 (8/19) 5.00 (3/4) 5.63 (8/19) 4.75(1/7) 5.73(8/12) 3.55(1/21) 5.75 5.75 5.75 5.75 6.00 5.50 5.58 5.63 5.63 5.63 4.40 5.65 5.60 r/ 5.73 5.13 1966 Spread between 3-mo. bills and finance co. paper 1.02 .34 .30 .36 .23 .28 .99 .20 .61 .85 .82 .76 .57 1 3/ Weekly rate shown la that In effect at end of period. Prime rate ia that charged by large banks on short-term loans to business borrowers of the highest credit standing. y 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. Notes—-flighs and lours are for individual series and may be on different dates for different series. For spreads, high refers to widest, and low to narrowest. j f t I STOCK MARKET 10 100 I PKICtS 8 STOCK MARKET CREDIT 6 CHANGE IN SERIES 4 VOLUME YIELDS 1962 1961 1963 Common Stock price index If Date yields 2/ (per cent) 1964 Trading volume 3/ (millions of shares) 1965 1966 Stock mar ket customer credit Customers 1 Bank debit balloans to ances 4/ "others" 5/ Total (In millions of dollars) 1961-62 - High Low N o v . 1963 J u l y 1965 1966 - H i g h Low 1966-June July Aug. 72.04(12/8/61) 52.68(6/22/62) 72.61 84.91 93.77(2/11) 79.62(8/19) 86.06 85.83 84.00 5 83.17 12 (19.62 19|/ 2.82 3.96 10.1 2.4 3.14 3.09 3.02 3.64 5.3 4.1 10.7 5.1 7,298 6,833 7,997 7,726 5,586 4,863 5,835 5,551 1,712 1,970 2,241(7/6) 2,137(5/27) 3.36 3.37 3.45 3.49 3.64 6.4 6.0 6.0 7,997 7,871 5,766 5,668 n.a. n.a. 2,231 2,203 2,216 2,228 n.a. b.lr/ 6.5 5,60% ig/61) 4,259(12/61) 4,424(1/61) 3,253 (j/61) 1,418(5/9/62) 1,161(3/8/61) n.a.—Not available, p/ Preliminary. V Standard and Poor's composite index of 500 ooomon stocks, weekly closing prices. 1941^43-10. s, Monthly data are averages of daily figures rather than of Friday's only. Highs i i and lews are for Friday's data only. 7j 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 3/ Averages of dally trading volume on the Mew York Stock Exchange* Years*nd figures are averages of daily figures for the year. 4/ Ind of month figures for u m b e r firms of the New York Stock Exchange which carry margin accounts; excludes balances secured by D# 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 leans to others. Tor further detail see Bulletin. P R I V A T E H O U S I N G STARTS AND P E R M I T S SEASONALLY ADJUSTED DATA HOUSING STARTS PER CENT OF U N A D J U S T E D I O ! A t 1959 I960 '961 S IAR 1 < 1i2 t6 n#6 3 |(4 9, 1965 1966 Exhibit F - Part II Building Unadjusted permits Type of financing Type o f housing (seasonally Seasonally adjustadjusted 1-2 MultiUnadjusted ed annual rate Other FHA VA family family rate) 2/ (Thousands o] units) E Total 1965 - July Aug. Sept. Oct. Nov. Dec. 1 % 6 - Jan. Feb. Mar. Apr. May June 1,473 1,422 1,453 1,411 1,547 1,769 1,611 1,374 1,569 1,502 r/ 1,318 141 135 124 134 116 102 85 78 126 147 rA35 r/126 17 18 17 18 16 15 13 12 19 18 14 15 5 5 4 4 4 3 3 2 3 3 4 4 119 98.7 42.5 1,234 112 93.0 41.6 1,217 103 83.9 40.4 1,180 91.0 112 42.6 1,259 96 75.0 41.0 1,282 63.3 84 39.0 1,325 69 50.8 33.8 1,262 64 49.3 28.9 1,191 104 85.4 40.9 1,293 46.8 126 : 100.3 1,165 r/118 r,/92.5 r/42.9 1,098 r/ 107 7/87.4 r/38.9 r/ 954 r/1,273 1.064 85 25.0 76,9 < July 902 102 11-..- 4 1/ Total starts are Census estimates inoluding farm for both permit-Issuing and non-Issuing areas, 1 dwelling unit !• started when excavation begins | all wait# in an apartment structure are oensldere* started at that time. IHA and VA starts are unite started under ooamitmenta by these ageaaiee te Insure or guarantee the mortgagee. As reported by FHA and VA, a unit Is started when a field office receivee the first oonpllanee inspection report# which is made before footings are poured In some cases but normally after the foundations have been completed* Capehart rilltary bousing unite are excluded. Other atarte are derived ae a residual, although total and FHA and VA starts are not etrlotly comparable in concept or timing; other atarte iaolnde both unite financed by conventional mortgagee and unite without mortgagee. 2/Building permits before January 1963 are Census estimates fer about 10,000 area* identified ae YIELDS ON NEW AND SEASONED CORPORATE BONDS 5.0 NEW I S S U E S 4.5 SEASONED Aaa L i 1 1 -1-LJU 4.0 1963 1964 1965 1966 Exhibit G - Part II Yields on New Corporate Bond Isauee Adjusted to an Aaa basis Number A m r t of issues Average of included (mil. yield issues of dollars) (per cent) Monthly averages: 1965 - Oct. 5 6 Nov. Dec. 4 8 1966 - Jan. 10 Feb. 9 Mar. 13 Apr. Hay 7 June 11 5 July Aug. 108.0 267.0 212.0 300.0 304.5 5 13.0 452.3 341.0 596.0 155.0 Weekly averages: High Low 5.63 (7/15) 4.82 (1/7) 4.69 4.72 4.85 4.84 4.98 5.13 5.08 5.21 5.38 5.62 Number Am't of issues Average of included (oil. yield of dollars) (per cent). June July Aug. 3 10 17 24 1 8 15 22 29 5 12 19 1 2 3 4 1 50.0 46.0 80.0 370.0 50.0 5.36 5.34 5.43 5.32 5.64* 2 90.0 5.63 3 2 65.0 280.0 5.62 5.58 2 145.0 5.68 -- 9 i. by Moody'» investors a e m o e \exoept serial ana oonvemoie laiuai. oxiorugs or naxurax gas pipeline and foreign companies, and bond* guaranteed by the Federal Government) weighted by alio of offering# Before averaging, new offerings are adjusted to a composite laa baele by deducting from the aotual reoffering yield tha exoess of the weekly average yield for seasoned tends of the appropriate industryquality group over the composite average for seasoned Aa*-rated bonds (Moody's). Averages considered unrepresentative because of special characteristics of the offerings included are denoted by an asterisk^ H. 14 Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) New Caoital Corporate 1965 1966 State and local 2/ 1966 1965 £ / 1964 1964 January February March 1,302 1,237 2,446 795 746 1,197 938 700 778 E/1,183 £/ 900 2./ 868 804 872 904 947 776 810 April May June 1,553 ' 1,058 2,364 • 1,152 1,691 1,946 2,237 1,095 1,405 2/1,186 £/ 918 2/1,094 826 924 972 1,242 667 903 1,290 850 1,392 812 680 1,130 e/ e/ 986 648 966 906 780 892 924 1,325 1,496 953 669 1,642 794 1,021 754 801 529 948 2,738 4,789 3,533 3,745 2,416 4,738 2,621 3,264 2/2,952 2317 /,9 2,580 2,722 2,600 2,569 2,533 2,811 2,578 2,278 7,527 11,060 14,805 7,153 9,775 13,038 2/6,148 5,302 7,902 10,471 5,345 7,923 10,201 July August September e/1,245 e/1,600 October November December 1st 2nd 3rd 4th quarter quarter quarter quarter 1st half Three quarters Year 4,985 4,974 v 9,959 1 650 900 Excluding finance companies 3/ 1st 2nd 3rd 4th quarter quarter quarter quarter Year e/ g/ 1/ 2/ 3/ 2,547 4,348 3.283 3,188 2,043 4,258 2,477 2,997 13,366 11,775 Estimated by Federal Reserve. Preliminary. Securities and Exchange Commission estimates of net proceeds. Investment Bankers Association of America estimates of principal amounts. Total new capital issues excluding offerings of sales and consumer finance companies. 1 Exhibit I New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) Quarter or Month Gross proceeds for new capital and refunding 1/ Total Bonds Common Memo: Pub 1 ic ly Privately and Foreign Offered Placed pfd. issues stock included Net proceeds for new capital Mfg. Public CommuniUtility cations 1/ 2/ Other Issuers 1964 - I II III IV 2,548 4,965 2,876 3,568 978 1,312 792 531 1,269 1,755 1,590 2,629 300 1,890 494 408 29 105 94 277 429 723 559 1,061 438 856 642 509 273 1,666 59 135 1,275 1,492 1,361 1,559 1965 - I II III IV 3,007 5,043 3,912 4,030 905 1,864 1,575 1,226 1,673 2,259 1,955 2,264 429 920 383 540 243 215 263 300 1,072 1,679 1,119 1,145 541 609 786 610 91 255 323 177 1,034 2,246 1,304 1,815 1966 - I II III 1965 - Apr. May June July Aug. Sept. Oct. Nov. Dec. 5,094 5,115 1,774 1,941 2,586 2,083 734 1,090 345 168 1,860 2,205 969 960 602 392 1,553 540 698 441 399 307 414 273 402 470 176 248 184 202 297 287 158 209 243 15 143. 98 102 25 196 92 43 43 422 602 1,223 587 222 495 401 671 741 353 530 977 692 33 376 49 1,137 n.a. 500 388 241 340 364 274 322 230 141 160 301 76 40 276 40 1966 - Jan. 2/ Feb. Mar. Apr. May June Julye/ Aug. Sept. 1,233 1,773 2,038 1,443 930 1,538 986 1,398 1,646 422 694 748 542 369 664 287 613 326 648 630 980 780 468 706 574 529 1,161 162 449 309 122 93 168 124 257 159 33 49 134 27 87 150 99 101 99 1,339 1,273 2,482 1,582 1,10 6 2,427 1,285 460 560 753 628 481 832 460 692 583 1,311 743 556 784 600 187 130 417 210 69 811 125 93 118 133 86 £/ e/ 1/ 2/ 1,418 420 306 827 421 368 629 475 Preliminary. Estimated by Federal Reserve. 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. 3/ Does not include U.S. Steel $600 million conversion of preferred stock to debentures. Source: Securities and Exchange Commission. i Exhibit J Other Security Offerings (In millions of dollars) 1966 January February March April May June July Augus t September October November December Jan.-June 12 40 40 66 69 76 F n r p i cm f t n v p r n m p n f - 2 / 1964 IQfS 21$ -r 36 n -f- 91 33 74 P 52 7i5 12 303 4 82 69 30 75 26 20 13 7 180 72 58 286 6 $ Year 420 1966 503 410 392 699 1,030 103 39 -319 580 2./ 4 6 2 £/-360 Jan.-June 2/505 103 236 -407 442 81 -80 -9 127 176 7 -15 -208 6;40 375 ---- 775 275 260 160 308 -24 450 718 85 284 1,821 510 1,414 275 2,732 3,034 636 238 ii -458 647 204 -82 119 408 152 159 2|74 129 185 325 239 150 375 375 179 New short-term 4 / State and jlocal Goverment 5 / January February March April May June July August September October November December Fprlpra 1 A g e n c y 3 / 1965 1964 1,205 -- -»- Federal Agency 3 / -137 . -174 117 -11 509 237 132 206 105 -309 202 -76 541 -308 -336 23 97 183 239 -333 167 1 525 113 -3 < -102 1J286 453 368 Year 801 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 securitiesjare defined as those maturing in more than one year. 2/ Includes securities offered in t$e U.S. by foreign governments and their political subdivisions and international organizations. Source: Securities and Exchange Commission. 3./ Issues not guaranteed by U.S. Government. Source: Long-term, Securities and Exchange Commission; short-term, Treasury Dept. & Fed. Reserve. 4/ These data differ from those represent new offerings less retirements, whether from the proceeds or refunding issues or from other funds. Data include only issues with original maturity of one year or le$s. 5/ Principally tax and bond anticipation notes, warrants, or certificates and Publii : Housing Auth. notes. In some instances PHA notes included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal Reserve. f ) ) ; ; • 1 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 1965 - July Aug, Sept. Oct. Nov. Dec. 1966 ~ Jan. Feb. Mar. Apr. May June July Corporaate Bonds Convertible (other than bonds convertibles) 455 211 530 190 559 212 370 391 544 481 351 6 36 170 477 299 530 246 736 262 485 545 890 643 401 1,317 402 Stocks 22 62 8a 75 53 50 20 182 655 312 563 409 538 41.3 787 424 399 720 466 582 3 38 26 16 ~- 40 33 50 State and local governments -" 144 115 70 271 106 661 50 Other 2/ 20 50 170 43 95 ---- 55 60 275 15 Large Individual issues Offered August 1 through 19 Issuer Type 2/ Amount (millions of dollars) Maturity Coupon rate or net interest cost Offering yield Rating 6, ,00 5, 58 . 6, ,25 6, ,50 5. .25 , 50 A Aaa Corporate Jersey Central Pwr.&Lt.Co. 1st mtg. bds. 30.0 American Tel. & Tel. Deb. 250.0 Household Fin..Co. Notes 75.0 Northeast Airlines Conv. deb 22.0 Continental Tel. Co. Conv. sub, deb. 25.0 Pan Amer. World Airways Conv,, sub . deb. 175.0 Air Products & Chem, Inc. Pfd„ stk„ 20.0 Management Assistance, Inc .ColL tr. cert. 27,0 Northern Illinois Gas Co 0 1st mtg. 1 bds. 20.0 North American Car Corp. Conv. pfd . stk. 15.0 Pittsburgh Plate Glass Co. S. F. deb. 125.0 Conv, sub, deb. 25.0 , G. C. Computer Corp. Com. stk. 10.0 1996 1995 1969 1986 1986 1986 6-1/8 5-5/8 6 6-1/2 5-1/4 4-1/2 1966-70 1991 6 1991 1986 5-5/8 6 7-1/4-8--1/4 7.2 5 - 8 . 25 . 5, ,85 5, 63 n. «• — B B Ba Aa Aa \V) Large Individual Issues Ojffered August 1 through 19 (Cont'd) Type 3/ Amount (millions of dollars) Maturity Coupon rate or OfferRating net inter- ing est cost Yield State and local Government Nashville & Davidson Co. Metro. Govt., Tenn. N.Y. State Dorm. Auth. Dela. City. Ind. Dev. Corp. Detroit-Wayne Jt. Bldg. Auth. Orange Co. Civic Center Auth. Pa. Stgte General Auth. Ga. State Sch„ Bldg. Auth. State of California State of Mississippi Winchester, Ky, G.O. Rev. -Renit. Rev. -Renit. Rev. -Ren t. Rev. -Ren t. G.O. Rev. -Rer t. G.O. G.O. Rev. -s.t. Rev. -Rent. Rev. -Rent. 15.9 19.8 17.0 14.5 22.2 50.0 32.1 100.0 3.5 7.0 9.1 28.9 1968-97 1970-98 1968-87 1970-96 1969-93 1969-93 1968-89 1967-87 1967-2001 1971-86 1968-76 1991 3.94 4.58 n. a. 4.79 4.78 4.36 4.30 4.32 4.47 4.62 5.61 3.75-3 .90 4.50 4.00-4, ,40 4.60-4, ,70 4.60 4.25 4.00-4. 20 4.00-4. 20 4.35-4. 40 4.40-4. 50 5.00-5. 10 5.50 Aa --— Baa A Aa Aa A A Other None *--Rights offering. n.a.--not available 1/ Includes corporate and other security offerings of $15 million and over; State and local government security offerings of $10 million and over. 2/ Includes doreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. 3/ In the case ot State and local Government Securities, G. 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.I., revenue bonds * secured by revenue from specific t^xes only; Rev.-Rent. , revenue bonds secured solely by lease payments. / / H. 14 Exhibit L Forthcoming Large Long-term Public Security Offering for New Capital (Other than U.S. Treasury) X/ Expected Proceeds from Forthcoming Large Issues (In millions of dollars) During month following date shown State and Corporate Other 2/ local govt. 1965 - July 30 Aug. 31 Sept .30 Oct. 29 Nov. 30 Dec. 31 196b - Jan. 31 Feb. 28 Mar. 31 Apr, 30 May 31 June 30 July 29 193 312 206 412 29.7 553 530 828 489 248 1,261 317 hll ... 248 404 269 343 398 501 340 366 253 399 584 337 403 -™ 15 25 20 20 - - 20 - -- 30 15 Corporate 340 636 303 489 344 676 931 1: ,176 606 ,034 1; L ,261 619 697 Forthcoming Large Offerings as of August Issuer Type Subsequent to date shown State and local govt. Amount (millions of dollars) Other 2/ 353 450 331 578 458 582 461 504 334 546 584 353 403 __ 15 25 20 20 20 90 55 55 85 50 35 19 Approximate date of offering Cornorate Duke Power Co. Southern Calif. Edison Co. Trunk line Gas Co. Natural Gas Pipeline Co. Northwestern Bell Tel. Co. Burlington Industries, Inc. Boeirg Co. Iowa EleCo Lt„ & Pwr, Co, *Cameron Iron Works, Inc. *Std. Oil Co. (Ind.) ^Aluminum Co. of America *Cenco Instruments Corp. ^Consolidated Cigar Corp. LTV Aerospace Corp. Cum, pfd, stk. 1st mtg„ bds. 1st mtg. bds. 1st mtg. p . L bds. Deb, Conv, sub, deb. Conv0 sub, deb. 1st mtg, bds, Conv, sub, deb. Deb, Conv. deb. Conv, deb. S. F, deb. Sub, deb. 35 0 80.0 40.0 40.0 50,0 40.0 130. 1 15,0 25.0 175.0 125-0 15,0 15.0 50,0 August 23 August 24 August 24 August 31 Sept. 8 Sept. 13 Sept. 14(rts. exp. Sept. 14 Sept. 15 Sept. Sept. Sept. Indefinite Indefinite Forthcoming Large Offerings as of August 19 (Cont'd) Issuer T>jpe Amount (millions of dollars) Approx. date of offering State and local Government Wash. Sub. San. Dist., Md. Cleveland, Ohio Arizona Board of Regents Chicago, Illinois Los Angeles, California Baltimore, Md. Colleges of the State of Texas Austin ^Pittsburgh Pa. *La. Cap. Const. & Im. Comm. ^Memphis, Tenn. *PHA *New Jersey Turnpike Auth. *Ga. State Hosp. Auth. *Los Angeles Dept. of Wtr.&Pwr. Oklahoma Turnpike Auth. August August August August August August Rev. Q.-Ut. G.O. Rent. Rev. • G.O. G.O. G.O. 10.0 15.0 25.0 25.0 30.0 31.8 23 23 25 25 30 30 G.O. G.O. G.O. G.O. Bonds Q.-Ut. Rev. Rent. Rev. Rev.-Q.-Ut. Rev. Q.-Ut. 33.4 13.3 15.0 20.0 119.9 180.0 15.0 30.0 160.0 August 8 Sept. 8 Sept. Sept. 13 Sept. 14 Sept. 15 Sept. 21 Sept. 21 Indefinite 20.0 15.0 Indefinite Indefinite Other Republic of Ireland Nippon Tel. & Tel. Pub. Corp. Bonds Bonds *--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. I Note: Deletions for reasons other than sale ot issue: Tulsa, Oklahoma, G. 0. $18.2 trillion issue--no bids received, Electric Storage Battery Co., conv. sub. deb. $21.3 million issue--cancelled. * H. 14 Exhibit M Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Date Public Offerings Amount (millions of dollars) Issuer and Description of Issue A. Sold June 1 through August 1:' 6/2 30.0 City of Montreal, Canada--5-5/8% debentures, maturing 1991, reoffered to yield 5.88%. 6/6 20.0 Industrial Development Bank of Israel--Cum. pref. stk. International Bank for Reconstruction and Development-5-3/8% bonds, maturing 1991, reoffered to yield 5.39%. 6/28 175.0 6.29 50.0 British Columbia Hydro and Power Auth.--5-5/8% S.F. bonds, maturing 1991, reoffered to yield 5.78%. 7/7 15.0 Govt, of Mexico--6-7/8% bonds, maturing 1981 reoffered to yield 7.26%, B. Prospective Offerings Indefinite 20.0 Republic of Ireland--bonds. Indefinite 15.0 Nippon Telegraph and Telephone Public Corp.--Bonds Included in table for first time. **..issue sold to investors outside of"07~S." ***.Issues subject to interest equalization tax. • " ' ' ^ M-2 Part II: Date Reported I Private Placements - Reported June I through August 19 Amount (millions of dollars) Issuer and Description of Issue 6/1 14.0 Govt, of the Bahama Islands—bonds, maturing 1981, no information available on takedown. 7/6 31.0 Steep Rock Iron Mines, Ltd.--6% 1st mtg. bds., maturing 1987--no information available on takedown. 7/26 50.0 Great Canadian Oil Sands, L t d . — % notes, maturing 1991no 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 r 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 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 takedown ^ Full or partial takedowns may take place both prior and subsequent to the data a placement is reported.