Full text of H.16 Capital Market Developments : August 26, 1968
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I
l lii IN1111 Ration
ff£Ri&y
™I
AUG es ma
- RCSEBV£
fiiCHAiOND
FED£iiAr
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I
I
DECONTROLLED AFTER SIX MOUTHS
August
26, 1968.
CAPITAL MARKETS DEVELOMENTS
IN THE UNITS) STATES
Corporate and municipal bond markets. The volume of new, publiclyoffered, corporate securities expected this week will be about one-haIf the
average weekly volume over the past year; the municipal volume will be slightly
above average. The major corporate offering will be Georgia Power Company's
$50 million of first mortgage bonds; the largest municipal issue will be
$75 million of California veterans 1 -bonus bonds. Supplementing the week's
long-term volume will be a $350 million offering by the Federal National Mortgage Association.
1/
Long-term Public Security Offerings (In millions of dollars)
Corporate
New.Capital | Refunding
State and Local Government
New Capital | Refunding
Sold:
52 week avg.
299
1
266
1
1
August
16
r/180
r/387
August
23
240
676
30
150
280
--
Scheduled:
August
1/
Federal Reserve estimates are based upon published reports of issues
sold and schedule for offering; corporate rights offerings are included
as of data subscription rights expire.
Yields on new and seasoned corporate bonds were essentially unchanged
last week; the increase in the new is sue series was again attributable to a
shift in the number of component issues carrying no call protection. New
issues last week were not as well received as they had been the week before.
The major competitively-offered issue was said to be only about one-third sold
at the end of the week.
Yields on municipals advanced last week while new issues met with a
mixed reception. Although the $286 million Consumers Public Power District
revenue bond offering was nearly sold out, other issues were so poorly received
initially that dealers immediately began to cut prices -- adding another 5 to
10 basis points to the original reoffering yield. By the end of the week 77
per cent of the week's offerings had been sold and the volume of bonds in
syndicate was the largest in 16 months.
H. 14
Yields on Security Markets
. Change from
preceding week
High-Grade
Notes and Bonds
Corporate
New
Seasoned
6.26
+ 13
5.98
-
2
5.09
5.36
+
+
3
1
4.05
4.34
+
+
5
5
5.95
- 18
5.15
5.24
+
-
U.S. Government
Long-term
3-5 year
State and local Gov't.
Moody 1 s Aaa
Std. & Poor's high grade
Money Market
Federal funds
Treasury bills
3-month
6-month
4
5
Corporate Bonds Still in Syndicate
Date
Offered
Amount
(millions of $)
38.0
8/20
12.0
8/20
"
Issuer
Pennsylvania Electric,
6-5/8's - 1998
Reoffering
Yield
Rating
Estimated proportion sold
6.50
30%
Southern Indiana Gas&Elec.,
6-3/8's - 1998
6.25
25%
Blue List of Municipal Dealers' Advertised Inventories
Latest Week
795(8/21/68)
End of Previous Week
670
1968 High
795(8/21/68)
H. 14
Home mortgage interest rates and other terms. Secondary market
yields on certain FHA-insured new home mortgages edged down to 7.42 per cent
in July. This was the first decline in 5 months, and the first real sign of
some movement toward easier credit in more than a year. The accompanying
discounts required by lenders declined to 5.5 points in July, a low for the
year. With the new Aaa corporate bond average declining somewhat faster
in July, the spread between the two rates widened slightly. While still below
typical spreads prevailing prior to 1965, this was the broadest margin in
favor of home mortgages in 14 months. The increase in the spread which occurred
in the last two months undoubtly enhanced the attractiveness of home mortgages
to some lenders.
Interest rates on conventional first mortgages for both new and
existing homes, according to the Federal Housing Administration series, rose
slightly further in July to new highs of 7.30 per cent and 7.35 per cent,
respectively, and were 80 basis points above a year earlier. The monthly
increase was smaller than in either May or June. As has recently been the case,
the Middle Atlantic region recorded the largest monthly advance as a result
of further changes in State usury laws.
According to the Federal Home Loan Bank Board series — which tends
to lag the FHA series — interest rates also advanced again in July on conventional home mortgages. Non-rate terms were also reported to be somewhat
tighter in July than they were in June. Maturities showed little change in
July while loan-to-price ratios fell. Both maturities and loan-to-price ratio
were only slightly changed from their year earlier levels. With average
purchase prices up in July, the corresponding implied downpayment averaged
$8.0 thousand on new homes and $7.1 thousand (a new high) on existing homes.
Stock prices. Common stock prices were virtually unchanged last
week, while trading volume was moderately heavy. Over the week the Standard
& Poor's index gained 0.01 points, closing Friday at 98.69. Trading volume
averaged 11.4 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. 1 4
STOCK MARKET CREDIT
(In millions of dollars)
Months
Total
Broker & Dealer Credit
r.'^t^nmp.r Credit
Customers
Money
Net Debit Bank lovns to others
net free
Borrowed
balances with than brokers and
credit
NYSE member dealers for purchas- Cust. Other
ing & carrying secur, coll. coll. balances
firms
Outstanding:
1955-56 High
4,047 (5/56) 2,823 (12/56)
1,255 (4/56)
1,873
430
1,069 (1/55)
1957-58 Low
3,554 (1/58) 2,482 (12/57)
1,060 (11/57)
1,344
188
807 (4/57)
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
3,393 517
2,889 687
n.a. n.a.
1,169
1,666
3,245
1959
1960
1961
1962
1963
1965
T
-
High
Low
High
Low
High
Low
1964 - Dec;
1965 - Dec.
1968 - July .
4,764
4,-142
5,602
4,876
7,298
6,833
(4)
(5)
(12)
(7)
(11)
(7)
7,053
7,705
11,270
3,401
3,004
4,259
3,562
5,586
4,863
(4)
(7)
(12)
(7)
(11)
(7)
5,079
5,521
8,854
2,184
2,416
(5)
(5)
(8)
(9)
(12)
(2)
(3)
(4)
(4)
(9)
1,211 (11)
1,192 (8)
'
..
Change.in
outstanding:
1967 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1968 - Jafi.
Feb.
Mar.
Apr.
May
June
July
467
69
293
271
62
852
-154
-391
-216
426
576
513
169
30
65
75
86
19
22
-32
-11
-47
-28
11
53
6
437
4
218
185
43
830
-122
-380 :
-169
454
565
460
163
- n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
110
-60
120
112
-13
263
179
-174
-76
287
85
229
-48
igliiiilillli-
-4-
EXHIBlt
A. Fori 1
L O N G - T E R M B O N D YIELDS, H I G H - G R A D E
CORPORATE Aaa
U.S. GOVERNMENT
_r
STATE AND LOCAL GOVERNMENT Aaa
1963
1964
1965
1966
1967
1968
Exhibit A -- Fart. u.
Date
1 Corporate
,! Aaa 1/
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)
State and
U.S. Govt. J
local
long-term 2/| government
Aaa 3/
(per cent)
4.42(1/8/60)
4.87(9/2)
4.42(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)
Spread between
U.S. Govt, and
Corporate
| State and
Aaa
| local Aaa
.92(4/22/60)
.59(8/5/60)
.84(12/30)
1.19(2/11)
.14(2/18)
.77(9/2)
.92
1.51
.44
.74
6.22
5.03
4.00
1.03
1.19
26
3.90
6.14
4.99
1.15
1.09
2
3.80
1.08
6,07
4.99
9
1.19.
1.06
1.06
4.00
5.06
16
6.00
.89
4.05
1.04
5.09
23d/ 5.98
jb/ 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.
1968 - July
Aug.
L O N G - T E R M B O N D YIELDS, LOWER GRADE
CORPORATE Baa
Moody's
STATE AND LOCAL GOVERNMENT Baa
_/s
1964
1965
1966
1967
/
Exhibit B -- Part II
State and
local govt.
Baa 3/
Corporate
Baa 1/
Date
(per cerit)
1959-60 - High
Year end- 1965
1966 - High
Low
1967 - High
Low
1968 - July
Aug.
Note:
26
2
9
16
23£/
5.36(2/12/60)
5.04
6.18(12/30)
5.05(1/14)
6.97(1/29)
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
6.95
6.88
6.83
6,82
6.80
4.80
4.73
4.68
4.70
4.70
.73
.74
.76
.82
.02
.80
.83
.88
.70
.65
For footnotes see Exhibit A„
Spread between
Aaa and Baa
State and
Corporate
local Rovt.
' !
EXHIBIT
C, Pari I
SHORT- A N D I N T E R M E D I A T E - T E R M INTEREST RATES
GOVERNMENT
Weekly
Per cent
MONTH BILLS
3 - 5 YEAR ISSUES
F.R. DISCOUNT RATE
3-MONTH BILLS
1963
1965
1967
1968
\
Exhibit C -- Part II
Yields
6-month
bills £j
(per cent)
Discount
• 3-month
rate
! bills V
__%/
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 - July
Aug.
5.50
5.50
5.50
5.50
5.50
5.24
26
2
9
16
23£/
5.08
4.96
5.11
5.15
5c 07(1/8/60)
4.66
4.92
5.92(9/23)
4.53(6/24)
5.50(12/12)
3.74(6/2)
Spread between yields on
3-mo. bills and yields on
6-mo. billsI3-5 yr. 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)
5.27
5.28
5.29
5.35
5.36
5.36
5.25
5.16
r/5.29
5.24
1/ Weekly rate shown is that in effect at
3-5 year
issues U
Preliminary,
r/
Revised.
1.81
.43
.06
.78
.01
1.61
.02
.12
.17
.20
.18
.09
.03
.20
.33
.24
.21
,nd of period at the Federal Reserve Rank of
2/ Marklt r yield; weekly averages computed from daily closing bid prices
£/
.79
.19
.12
.52
.09
.62
.01
^
Series of 3-5
EXHIBIT
D, Pari 1
S H O R T - A N D INTERMEDIATE-TERM INTEREST RATES,
B A N K S A N D OTHER PRIVATE BORROWERS
PRIME RATE
FINANCE COMPANY PAPER
Directly
placed
F.R. DISCOUNT RATE
FEDERAL FUNDS
1963
1964
1965
1966
1967
1968
Exhibit D —
Date
Prime rate 1/
Part II
Finance
company
faper 2/
Federal funds 3/
(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)
Spread between
3-mo. bills and
finance co. paper
>
4.00(5/13/60)
4.00
4.63
5.63
3.55(1/21)
5.25(1/6)
3.40(10/27)
1.02
.23
.28
1.08
.20
1.33
.21
.64
6.10
5.88
6.50
26
.67
6.00
5.75
6.50
2
.79
6.13
5.75
6.50
9
.64
6.13
5.75
16 . 6.50
.60
5.95
1
5.75
23p/ 6.50
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 arid may be on different dates for
different series. For spreads, high refers to widest, and low to narrowest.
1968 - July
Aug.
2./
Preliminary.
EXHIBIT
'
.
E. Port 1
I
STOCK MARKET
100
PRICES
8
STOCK MARKET CREDIT
6
* CHANGE IN .SERIES
4
VOLUME
•
i
\
I
YIELDS
.11 I i 1 1 1 1 I I 1
!
i M
1963
•
.1
i i i i i i i i i i 1 1 1 1 1-1,1 M i l
1964
1965
1 1
:
M II
1966
1! i I 1
M II II M II
1967
M
M
I'll II 11
1968
Exhibit E —
Stock price
index 1/
Common
stock
yields 2/
(per cent)
Part II
Stock market customer credit
Trading
Bank
Customers
volume 3/
debit bal- loans to
Total
(millions
"others"5/
ances 4/
of shares)
(In millions of dollars)
93.77(2/11)
73.20(10/7)
97.26(1/6)
83.18(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 - June
July
100.53
100.30
3.00
2.98
15.1
14.3
1968 - Aug.
97.01
9
98.68
16
23£/ 98.69
3.13
3.08
3.09
10.0
1961-62 - High
Low
1966 - High
Low
1967 - High
Low
72.04(12/8/61)
52.68(6/22/62)
11.5
11.4
5,602(12/61) 4,259(12/61) 1,418(5/9/62)
3,253(1/61) 1,161(3/8/61)
4,424(1/61)
5,835
2,241(7/6)
7,997
5,169
2,097(12/14)
7,302
10,347(12/67) 7,883(12/67) 2,057(11/1)
5,280(1/67) 2,055(1/25)
7,345(1/6)
11,101
r/11,270
8,691
r/8,854
n.a.
a. a.
n.a.
2,410
2,424
2,442
r/2,473
n.a. Not Available. 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 Friday1s only. Highs and lows are
for Friday 1 s data only.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing
~~ prices by Federal Reserve. Yields shown are for dates on which price index reached its high
or low.
3/ Averages of daily trading volume- on the New York Stock Exchange. Year-end figures are averages
.. of daily figures for the year.
4/ End of month figures for member firms of the New York Stock Exchange which carry margin accounts;
excludes balances secured by U. S. Government obligations.
,
5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
~~ U.S. Government securities. Weekly reporting banks account for about 70 per cent of loans to
others. For further detail see Bulletin.
EXHIBIT F, Port I
M O R T G A G E A N D B O N D YIELDS
V
HOME MORTGAGES:
A a a CORPORATE BONDS:
—
1959
I960
~
1961
1962
1963
-
1964
-
1965
'
---
1966
1967
1968
Exhibit F
FHA
mortea zes £/
Conventional
mort25-year 30-year gages 3/
1957
1958
1959-60
1961-66
1966
1967
-
High
Low
High
Low
High
High
Low
1968 - Mar.
Apr.
May
June
July
5.63
5.35
6.24
5.43
6.73
—
—
n. a.
n. a.
n. a.
n. a.
n. a.
5.44
6.81
6.81
6.29
6.83
6.94
--
7.52
7.42
Part II
Spread between yields
on conv. &
FHA mort-^y
gages
Spread between
yields on new cor6/ porate bonds and
N e W ^ Seasoned
FHA mtgs. Seasoned
4/
bonds
Aaa Corporate
Bonds
6.00
5.55
6.30
5.80
6.70
6.65
6.40
.47
.15
.23
.25
.30
.11
-.12
4.94
3.65
5.25
4.12
5.82
6.53
5.20
4.12
3.57
4.61
4.19
5.49
6.07
, 5.03
1.58
.88
1.69
.77
1.11
1.26
.24
1.03
.05
.73
-.16
.46
.46
.17
6.80
6.90
7.15
7.25
7.30
-.03
-.04
6; 56
6.52
6.66
6.65
6.54
6.11
6.21
6.27
6.28
6.24
.27
.42
.45
.31
.39
.37
.30
——
.27
.12
"IT
'—
.87
.88
Neither mortgage nor bond yields take into account servicing costs which are much
higher for mortgages than bonds. Generally, bonds pay interest semi-annually;
mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual
interest investment, would be slightly higher than given in the table.
2/ Based on FHA-field-office opinions about average bid prices in the private secondary
market for new-home mortgages for immediate delivery. Separate data available for
25-year and--beginning July 1961—30-year mortgages with minimum downpayments,
weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgages.
Over the period for which they can be compared, the movement of the two mortgage
yield series has been similar. Dashed lines indicate periods of adjustment to
changes in contractual interest rates.
3/ Based on FHA-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 new-home mortgages; prior to that date, rate
•related to both new as well as existing-home mortgages. Dashed line indicates this
change in the series.
4/ FHA mortgage yield data are for 25-year mortgages through June 1961; 30-year mortgages thereafter.
5/ See note for Exhibit G.
6/ Moody's Investor Service. Monthly averages of daily data. See Exhibit A.
n.a. - Not Available.
-W-
n
MATURITY
EXISTING
EXISTING
CHANGE IN SERIES
Exhibit F
Pact IV
New Homes
Con- Fees & EffecCon- Fees &
Loan/
tract Charges
tract Charges tive
Maturity Price Loan
Rate
(Per
Rate
Rate
(Per
(Years) Ratio Amt
cent)
cent)
(Tho.)
(Per
(Per
(Per
3/
cent)
cent)
2/
2/
cent)
Existing Homes
Loan/
EffecMaturity Price Loan
tive
(Years) Ratio Amt.
Rate
(Per (Tho.)
cent)
3/
1967
July
Aug.
Sept.
Oct.
Nov.
Dec.
6.,31
,28
: 6.
|6.,31
1 6.
,34
6.,33
6,,41
0.77
0.78
0.78
0.82
0. 76
0.84
6.43
6.40
6.44
6.47
6.45
6.54
25,.2
25,,2
25,.3
25,.4
, 25,.3
25,.4
73..9
73..7
74.2
73,.8
73,.4
72..7
21.,0
21.,0
21.,4
21.,2
21.,2
21.,5
6.,30
6.,34
6.,36
6.,39
6.,42
6.,51
0,.70
0..72
0..73
0,.78
0..77
0..83
6,.41
6..46
6..47
6.,52
6..55
6.,64
22.7
22.8
22.5
22.5
22.7
23.1
72.9
73,9
72.7
73.0
72.9
73.1
18.1
18.1
17.4
17.3
18.3
18.4
6.,39
6.,47
6..50
6.,57
6.,69
6.,88
|7.,04
0.86
0.94
0.88
0.88
0.95
0.95
0.86
6.52
6.62
6.64
6.71
6.84
7.03
7.18
- 25.,4
25,.5
25..7
25..3
25.,0
25.,4
25.,5
72.,9
74.,5
74..3
73.,4
73.,2
74.,4
73.,7
21. 7
22.,2
22.,4
22.,2
22. 1
22. 6
22. 6
6.,57
6.,58
6.,59
6.,64
6.,81
6.,97
7. 10
0.,82
0..81
0..79
0.,80
0.,87
0.,86
0.,82
6.,70
6.,71
6.,72
6.,77
6.,95
7.,12
7. 24
22.7
22.6
23.0
22.6
22.5
22.6
22.6
73.7
73.6
73.3
72.8
73.1
73.1
72.5
18.4
18.0
18.6
18.3
18.5
18.4
18.7
1968 .
Jan.
Feb.
Mar.
Apr.
5
May r/
June
; July£,/
!
note;
series beginning 1965.
/ Compiled by Federal Home Loan Bank Board in cooperation vith Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender groups,
(including mortgage companies) for purchase of single family homes. Data exclude loans
for refinancing, reconditioning, or modernization; construction loans to home-builders;
a n d — i n this exhibit--permanent loans which are coupled with construction loans to
owner-builders. Data prior to 1965 on a comparable basis with the new series are pending. Belated series on conventional mortgage rates only, based on unweighted opinions
of regional-office directors of the Federal Housing Administration, are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included—in the case
of new home mortgage rates--in Exhibit F Parts I and II.
1/ Fees and charges—expressed as a percentage of the principal mortgage amount--include
loan conenissions, fees, discounts, and other charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.
3/ Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.
r/
Revised, g/
Preliminary.
.
it
yields o n
new
and
seasoned c o r p o r a t e
bonds
6.5
NEW ISSUES
6.0
5.5
5.0
SEASONED Aaa
4.5
4.0
1964
1965
1966
1967
Exhibit G - II
'
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number
of
Number | Ain't. of issues| Average
of
included (mill.| yield
ssues I of dollars)
1(per cent)
Am't. of issues Average
included (mill.
yield
(per cent)
of dollars)
Monthly averages:
- Jan.
Feb.
Mar.
Apr.
May
June
July
13
13
10
7
11
13
7
567.0
564.5
350.0
415.0
531.0
872.0
552.0
6.24
6.29
6.56
6.52
6.66
6.65
6.54
June
July
Aug.
600.0
7
14
21
28
2
2
3
50.0,
100.0
122.0
6.66
6.61
6.67
6.78
5
12
19
26
2
3
1
300.0
75.0
165.0
6.56
6.60
6.41
1
1
i6 ; 1
3
12.0
15.0
110.0
67.0
6.36
6.46'
6.13
6.26
Weekly averages:
High
6.83(5/24/68)
Low
6.13(8/16/68)
Note: Averages of offering yields on"all.nevJ 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.
E/ Preliminary.
Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Caplt«l
Corporate
1967P/
1953"
| I j
State and local 2/
1966
1967p/
January
February
March
1,706
1,568
1,740
1,648
1,398
2,317
1,302
1,237
2,446
1,133
1,147
1,384
1,482
1,196
1,438
1,188
858
865
April
May
June
1,383
1,824
2,335
1,973
1,474
2,611
1,553
1,058
2,364
1,298
1,117
1,354
1,111
1,229
1,497
1,193
901
1,141
e/2,225
e/1,500
2,457
2,407
1,723
1,039
1,670
1,382
_g/l,400
e/1,300
943
858
1,330
701
773
1,020
2,289
1,467
2,336
829
1,085
1,635
974
1,400
1,182
755
969
940
5,014
2/5,542
5,364
6,058
6,584
6,092
4,985
4,975
4,091
3,550
3,665
3,769
p/10,556
11,421
18,007
24,098
9,959
14,050
17,601
Z7,434
July
August
September
October
November
December
1st
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
1st half
Three quarters
Year
4,119
3,837
3,131 .
3,556
7,956
11,087
14,643
2,911
3,235
2,494
2,664
6,146
8,640
11,304
Excluding finance companies 3/
1st
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
4,943
Year
ej
p/
1/
2/
3/
5,207
5,913
6,338
5,657
4,924
4,884
3,969
3,188
23,115
17,269
Estimated by Federal R e s e r v e . .
Preliminary, r/ Revised.
,
.
Securities aria 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.
Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
Quarter
or
Month
Total
Gross proceeds for new capital
and refunding 1/
Common Memo:
Publicly Privately and , Foreign
pfd. issues
Offered Placed
included
Net proceeds
for new capital 1/
Mfg.
6,833
6,294
3,263
4,017
4,604
3,107
1,811
1,465
1,551
2,137
390
726
678
1,051
60
65
234
93
2,442
3,014
2,792
2,527
1968 - I
II£/
5,178
5,705
2,465
3,105
1,724
1,645
989
956
313
172
1,855
1,653
1967. - July
Aug.
Sept.
Oct.
Nov.
Dec.
2,589
2,481
1,763
2,409
1,500
2,385
1,889
1,813
902
1,375
645
1,087
' 486
, 412
647
566
551
1,020
214
250
214
469
304
278
213
13
8
34
19
30
925
1,229
637
906
512
1,109
903
796
766
719
1,046
1,340
1,260
546
585
593
438
521
685
600
322
226
441
269
269
450
450
16
61
236
31
89
52
n.a.
537
556
761
353
550
750
965
1967 - I
II
III
IV
5,464
6,208
1,771
1968 - Jan.
1,607
Feb.
1,800
Mar.
, 1,426
Apr.
}1,836
May
June p/ 1,975
July e/ 2,310
2/
Other
Public CommuniUtility cations Issuers
543
548
595
269
1,382
1,228
1,976
2,040
411
529
1,356
2,159
446
509
265
573
404
278
39
356
200
119
82
68
1,044
313
619
690
469
417
546
431
178
549
474
186
147
78
189
103
237
235
566
321
469
663
622
874
825
997
1,268
1,219
1,255
200
881
n.a. Not available.
~p7 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.
-d-
Exhibit J
Other Security Offerings
(In millions of dollars)
Gross Long-tterm 1/
Federal Agency 3/
Foreign Government 2/
1966
1967
1968
1967
1968
January
February
March
April
May s
June
July
August
September
October
November
December
Jan. - June jd/
Year
...
75
142 E /
507
Jan. - June
196
12
40
40
66
69
76
72
7
50
23
74
68
- 227
——
223
27
13
170
22
586
193
66
142
18
629
1,656
i—
January.
February
March
April
May
June
July
August
September
October
November •
December
Year
127
49
107
!
3 03
999
550
1,370
225
744
779
4,667
1966
__
1,251
783
750
650
810
650
407
250
599
708
710
612
4,894
503
410
392
699
1,030
1,084
799
400
450
800
239
3,034
8,180
6,806
New short-term 4/
State and local Government 5/
Federal Agenc y 3/
179
103
490
-179
308
300
387
39
-552
-24
436
RQ
-319
-593
-454
450
-6nA
-594
827
580
-559
718
681
3 £./
515
462
121
109
490 £/
85
27
-378 £/
-187
-334
93
284
-103
20
-158
-590
270
-262
593
-270
-161
1,407
-652
32
-48
606
414
-555
503
49
573
-283
-570
36
-514
219
531
-1,542
1,821
1,162-100
1,127
531 .
1,127
660
310
i
ht
I
">
i
•I
\{
£/ Preliminary. £/ Estimated by Federal Reserve, n^ a.--Not available. _1 / These data ^
differ from those in Exhibit H in that refunding issues, as well•as new capital issues,
are included. Long-term securities are defined as those maturing in more than one year. ^
2/ Includes securities offered in the U.S. by foreign governments and their political
subdividions and international organizations. Source; Securities and Exchange Commission,:
3/ Issues not guaranteed by U.S. government.Source; Long-term, Securities and Exchange
Commission; short-term, Treasury Dept. & Fed. Reserve. 4/ These data differ from those
1
in Exhibit H and above in that they represent new offerings less retirements, whether
from the proceeds or refunding issues or from other funds. Data include only issues with f
original maturity of one year or less. J5/ Principally tax and bond anticipation notes,
warrants, or certificates and Public Housing Auth. notes. In some instancies PHA notes
included mav have a somewhat longer maturity than 1 year. Source; Bond Buyer & Federal
##
DigitizedReserve.
for FRASER
r\
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!
1967 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Corooriite
Bonds
(other than
Convertible
convertibles)
bonds
1,340
1,705
794
1,458
826
. 978
904
757
788
696
1,009
1,461
1,243
890
1,288
473
897
461
460
652
575
415
500
656
1,161
650
317
350
257
285
150
437
168
105
135
723 '
283
120
495
Stocks
State
and
local
governments
133
67
• 65
276
215
81
85
77
238
73
70
180
98
483
473
847
505
865
633
785
591
736
794
571
758
864
Other
£/
85
221
400
50
845
627
1,095
389
1,030
370
145
500
920
Large Individual Issues Offered August 1 through August 23, 1968.
Issuer
Type 2/
Amount
(millions
of
dollars)
Maturity
Coupon
rate or
net interest cost
Offering
yield
Rating
Corporate
Okonite Co.
Beneficial Finance
National Fuel Gas Co.
LTV Aerospace Corp.
Boothe Computer Corp.
Ashland Oil & Refining Co.
Wyle Laboratories
fGeneral Public Utilities
Corp.
Wisconsin Telephone Co.
Niagara Mohawk Power Corp.
Armour-Dial, Inc.
Texas Eastern Transmission
Corp.
Gen '1 Telephone of Indiana
Penna. Electric Co.
Southern California
Edison Co.
Debs w/wts3.
Dobs.
S.F. debs,
Debs, w/wts.
Conv. sub., debs.
Conv. debs.
Conv. sub. debs.
25.0
25.0
15.0
50.0
18.0
60.0
15.0
1988
1994
1993 '
1988
1988
1993
1988
6-1/2
6-3/4
6-5/8
6-3/4
5-3/4
4-3/4
5-1/4
6.50
6.75
6.55
6.75
5.75
4.75
5.25
Com. stk.
Debs.
1st mtg. bds.
Com,;, stk.
25.5
50.0
60.0
16.1
2004
1998
6-1/4
6-1/2
6.25
6.37
Aaa
A
"i
G.O.
1st mtg. bds.
1st mtg. bds.
50.0
17.0
38.0
1988
1998
1998
6-5/8
6-3/8
6-5/8
6.84
6.42
6.59
Baa
A
Aa
Pfd. stk.
75.0
B
——
Aa
B
—
Baa
——
'
Large Individual Issues Offered August 1 through August 23, 1968 (Cont'd)
Issuer
Type 3/
Amount
(millions
of dollars)
Maturity
Coupon
rate or
net interi est cost
Offering
v'ield
Rating
State & local Government
East Baton Rouge Parish,
La.
Rev.-rent.
Dade County, Fla.
G.O.
State of Minnesota
G.O.
N.Y. - State Housing
Finance Agency
Rev.-rent.
N.Y. State Dormitory Auth.| Rev. -rent.
Oklahoma City, Okla.
|G.O.
Philadelphia, Pa.
1G.O.
Broward County Sch. Dist. 1
- Fla. .
|G.O.
Iberville Parish, La.
1Rev.-rent.
Housing Assistance Admin.[Bonds
Los Angeles Dept. of
1
Wtr. and Pwr.
|Rev.-U t.
Md. State Roads Comm.
1Rev.-rent.
:Cook Co., ThorntonTwp.
HSD #205, 111.
G.O.
State of New York
1 Rev.-rent.
Colleges of the State of I
Texas
Rev.-rent.
State of North Carolina
G.O.
Bridgeport, Conn.
G.O.
Wisconsin State Agencies
Bldg. Corp.
Rev.-rent.
Wisconsin State Agencies
Bldg. Corp. .
Rev.-rent.
Orleans Parish Sch. Bd.,
La.
G.u.
Calcasieu Parish,La.
Rev.-rent.
Calcasieu Parish,La.
Rev.-rent.
Consumers Public Pwr.
Dist., Neb.
Rev.-rent.
Consumers Public Pwr.
Dist., Neb.
Rev.-rent.
23.2
31.0
20.0
1993
1993
1971-88
n. a.
n. a.
3.69
5.30
5.30
3.10-3.80
Baa
Baa
Aa
74.0
13.3
35.7
29.2
1969-98
1970-99
1971-92
1970-94
4.74
4.56
4.09
4.35
3.00-4.80
3.50-4.70
3.25-4.25
3.10-5.60
A
A
1971-88
1987
1969-2009
4.27
5.20
4.25
3.40-4.40
5.20
2.75-4.50
A
Baa
Aaa
24.0
18.5
1969-98
1969-83
4.31
4.17
3.10-4.50
2.90-4.20
Aa
Aa
10.0
81.0
1970-84
1969-98
4-7/8
4.03
4.50-4.75
2.75-4.25
Baa
Aa
14.7
60.0
17.6
1969-78
1969-85
1969-88
3.84
3.63
3.88
2.80-3.80
2.75-3.80
2.80-4.10
. Aa
Aaa
Aaa
15.2
1969-2008
4.62
2.80-4.70
Aa
16.8
1969-2002
4.56
2.80-4.65
Aa
17.0
19.5
43.2
1969-2008
1973-79
1989
4.97
5-1/8
5-1/8
3.10-5.00
4.25-4.85
5.05
A
A
A
|
2003
5-1/8
5.10
A
g
90.0
1973-88
5-1/8
3.90-4.80
A
:
69.5
1972
5.70
5.70
--
20.0
12.0
129.0
196.0
--
Other
Federal Land Banks
jBonds
-HI-
'XV
|
^
K-3
FOOTNOTE:
*
1/
2/
3/
Rights offering, n.a. Not available.
Includes corporate and other security offerings of $15 million and over; State
and local security offerings of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal Agencies.
In the case of State and local Government Securities, G.O. denotes general
obligation; Rev.-Ut., revenue obligations secured only by income from public
utilities; Rev.-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.
V)
H.i.4
Exhibit L
Forthcoming. Large Long-term Public Security Offering for New Capital
(Other than U.S. Treasury) 1/
j
Expected Proceeds from Forthcoming Large Issues
(In millions of dollars)
During month following
date shown
State and
Corporate
Other 2/
local govt.
1967 - July 31
Aug.. 31
Sept.30
Oct. 31
Nov. 30
Dec. 31
1968 - Jan. 31
, . Feb. 29
Mar, 31
Apr« 30
May 31
June 30
July 31
1,261
... 694
534
1,357
826
968
531
873
758
1,103
1,193
.1,068
619
512
783
768
505
865
633
449
683
494
69 5
485
597
1,071
100
65
50
845
• 402
60
130
15
45
500
75
70
Corporate
Subsequent to
date shown
State and
local govt.
1,576
1,335
i;090
2j694
. 2,129
1,892
736
1,105
935
1,612
1,403
1,380
- 679
575
903
889
743
1 ,684
1 ,076
937
1 ,079
624
1 :,069
640
1 :,042
,307
1:
Other 2/
150
159
126
260
875
502
75
265
125
60
515
110
85
.
Forthcoming Large Offerings as of August 23, 1968.
Issuer*
Type
Amount
(millions
of
dollars)
Approximate date of
offering
Corporate
Wisconsin Power & Light Company
Allegheny Beverage Corporation
Georgia-Power Company
Belco Petroleum Corporation
Eckerd Drugs
Condec Corporation
Computer Applications Inc.
Michigan Consolidated Gas Company
South Carolina Electric & Gas
*New England Tel. & Tel.
*Tenneco Inc.
Metropolitan Edison
General Tel. of Michigan
*Wilson & Company
*New York State Eleci & Gas.
Harris Trust & Savings Bank
*Fibreboard Corporation
1st mtg. bds0
Conv. sub. debs..
1st mtg. bds.
Conv. debs.
Conv. sub. debs.
Conv. sub. debs.
Conv. debs.
1st mtg. bds.
1st & ref. mtg. bds
Debs.
1st mtg. p.l. bds.
1st mtg. bds."
Debs.
Debs, w/wts.
1st mtg. bds.
Conv. cap. notes
Conv. debs „
25.0
' 20.0
50.0
25.0
15.0
20.0
15.0
25.0
20.0
125.0
60.0
31.0
22.0
40.0
30.0
25.0
30.0
August 26
August 26
August 27
August 27
August 29
September
2
;
September
2
5
September
September
5
'
September
9
September 10
September 10
September 17
September 18
. September 18
September (rts. exp,
Indefinite
L-2
Forthcoming Large Offerings as of August 23, 1968. (Cont'd)
Issuer
Amount
(millions
of
dollars)
Type
Approximate date of offering
j
Corporate (Cont'd)
National Industries
Alexander's Dept. Stores
Allegheny Airlines
Beech Aircraft Corporation
Conv. sub. debs.
Com. stk.
Conv. debs.
Conv. debs.
25.0
20.0
15.0
30.0
Indefinite
Indefinite
Indefinite
Indefinite
G.O.
G.O.
G.O.
25.0
12.5
75.0
August
August
August
26
26
27
Rev.-S.T.
G.O.
G.O.
11.0
10.2
10.0
August
August
August
27
27
28
46.0
20.0
12.5
100.0
10.0
34.6
32.5
18.3
30.0
12.4
10.5
25.2
25.0
22.0
105.0
20.0
75.0
120.0
-SiptT
Sept.
Sept.
State & local Government
Dallas, Texas
Lakeland, Florida
•State of California
La. Charity Hospital,
New Orleans, Louisiana
*Elizabeth, New Jersey
*New Haven, Connecticut
Tampa Hillsborough Co.
Expressway Authority
Jacksonville, Florida
Portland, Oregon
State of Oiiiv.Columbus, Oiiio
*State of Oregon,
Cobb Co., Georgia
•Mecklenburg Co., N,C.
Philadelphia, Pennsylvania.
Fairfax Co., Virginia
•Virginia Polytechnic Inst.
•Los Angeles, California
Alabama Highway Authority
•Cleveland, Ohio
•Beauregard Parish, La.,
•New Orleans, Louisiana
Ardmore Development Authority
Kentucky Turnpike Auth.
Hillsborough Aviation Auth.
Tampa, Florida
Rev. -Q.-Ut.
G.O.
G.O.
G.O.
1G.O.
!Rev.-Ut.
ju.o.
IG.O.
G.O.
1 Rev.-Rent.
G.O.
Rev. -S.T.
G.O.
Rev.-Rent.
G.O.
Rev.-Rent.
Rev.-Q.-Ut.
.i
Rev.-Rent.
41.0
2
4
4
ocpt.
5
Sept.
9
Sept.
10
Sept.
10
Sept.
10
Sept.
11
Sept.
11
Sept.
12
Sept.
17
Sept.
17
Sept.
17
Sept.
18
Sept.
18
Indefinite
Indefinite
Indefinite
.
. :
'
:1
Other
Canadian Utilities, Ltd.
j
S.F. debs, w/wts.
15.0
Indefinite
L-3
FOOTNOTES:
*--Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and local
Government issues of"$T0 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.
Note.: Beech Aircraft Corporation postponed its issue of $30.0 million debentures due to
technical reasons. Also postponed indefinitely were Denver, Colorado's $30.0
million issue of revenue bonds scheduled September 24.
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.
Sold:
May 1 through Aug. 2% 1968.
May
15
20.0
Montreal Catholic School Commission--7-1/2% S.F. debs,
maturing 1993, reoffered to yield 7.88%.
• May
21
25.0
Newfoundland and Labrador Power Commission—7-3/4%
S.F. debentures,- maturing 1993, reoffered to yield
8%.
May
28
100.0
July
10
75.0
Canada, Government of, 6-7/8% bonds maturing 1988,
reoffered to yield 6.90%.
July
23
20.1
Province of Ontario, 7 1/8% debentures maturing 1998,
reoffered to yield 7.19%.
Husky Oil Canada Ltd.
July
25
25.0
Province of Nova Scotia ~~ debentures.
B.
Indefinite
15.0
Prospective Offerings
Canadian Utilities, Ltd., -- S.F. debs, with warrants.
* - Included in table for first time.
** - Issues sold to investors outside of U.S.
*** - issue subject to interest equalization tax.
-34-
M-2
PART II:
Date Reported
6/68
-
;
-
Private Placements --.Reported May 1 through August 23, 1968.
Amount
(millions
of
dollars)
Issuer and Description of Issue
29.4
Seaboard Finance Co. of Canada, Ltd., Sr. notes
maturing; 1983, take down at various dates
through 1969.
7/1/68
25.0
Argentina, Government of —
June, 1973.
7/1/68
1.4
7/1/68
.5
external bonds maturing
British Columbia Forest Products, Ltd. —
secured notes.
20 year
British Columbia Forest Products, Ltd. -- 10 year
secured notes.
8/20/68
75.0
Bell Telephone Company of Canada -6.90% 1st mortgage bonds maturing 1998.
8/21/68
40.0
Placer Development Ltd., Vancouver
NOTE: For retrospective data on aggregate foreign corporate and government security
%
^ offerings in the United States see Exhibits I and J. There is no simple relationship
between the data shown in the Exhibit and that shown in Exhibits I and J because the
latter includes privately placed securities in the period in which funds are actually takers
down but only in the amount of takedown while the placements shown in this exhibit are
/
included when reported, frequently with littleuor no information concerning timing of
4
takedown. Full or partial takedown, may take place both prior and subsequent to the date . ;
a placement is reported.
-9*-
@FedFRASER