Full text of H.16 Capital Market Developments : December 5, 1966
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Not for Publication H. 14 DECONTROLLED AFTER SIX MONTHS December 5, 1966. CAPITAL MARKETS DEVELOPMENTS IN THE UNITED STATES \ ^ A \ Corporate and municipal bond markets. The volume of new corporate security issues Gxpectek this week -- $500 million -- will be more than two and one -half tijn^s-^ttl^weekly average for such issues over the past year. Detroit Edisoxv-Company's $100 million Aa-rated debt issue is the largest of the 14 new ~ offerings included in the weekly volume estimate. Municipal offerings will also be relatively heavy, with the Housing Assistance Administration's $115 million sale of local housing issues accounting for more than one-third of the aggregate municipal volume. Long-term Public Security Offerings 1/ (In millions of dollars) C o n Dorate Re funding New Capital State and local Government New Capital | Refunding Sold; 211 4 60 110 211 350 110 500 331 52 week avg. 195 Nov. 25 Dec, 2 2 Scheduled: Dec. 9 1/ Federal Reserve estimates are based upon published reports of issues sold and scheduled for offering; corporate rights offerings are included as of the date subscription rights expire. Yields on new and seasoned corporate bonds advanced slightly last week. New debt issues were well received by investors and no large offerings are . currently bound by underwriter's price restrictions. Municipal yields were mixed last week, in contrast to the clear advances registered during the three preceding weeks. Investors responded enthusiastically to last week's large volume, as more than four-fifths of the new issues were spoken for by the end of trading on Friday. FNMA secondary market operations. In October there was a moderate increase in offerings from private holders of eligible Government-backed mortgages for purchase by the Federal National Mortgage Association under its secondary market operations = Also, FNMA's mortgage purchases were up slightly. Both offerings and purchases, however, were well below peaks reached early this year. H. 14 Yields in Security Markets Level Latest Week High-Grade Notes and Bonds Change from preceding week Corporate New Seasoned 5.86 5.37 +1 4.74 5.34 +9 U.S. Government Long-term 3-5 year +2 State and local Govt. Moody's Aaa Std. & Poor's high grade 3.89 4.03 +2 5.55 +5 5.17 5.26 -9 -23 Money Market Federal funds Treasury bills 3-month 6-month Corporate Bonds Still in Syndicate Date Offered Amount (millions of $) Issuer Reoffering Yield Rating Blue List of Municipal Dealers ' Advertised Inventories (In millions of dollars) Latest Week 512 (11/30) End of Previous Week 534 Recent High 636 (2/17) Estimated proportion sold H. 14 -3- During October, FNMA's purchase prices were reduced further, whereas the maximum amount of mortgage eligible for purchase was raised, as reported in the H.14 issue of October 31. \ FNMA announced on November 29 that it would activate $250 million of the additional $1 billion special assistance aid authorized last fall. This aid will go toward making advance mortgage-purchasing commitments at abovemarket prices. The assistance will finance about 15,000 lower-priced FHA and VA homes likely to be started over roughly the next 90 to 180 days. Savings flows. Mutual savings banks were the only depositary institution to experience a net inflow of income-yielding claims during October. Although the net increase of $131 million in regular savings bank deposits was more than 20 per cent below the year earlier, it contrasted sharply to the $606 million net outflow of savings and time deposits at commercial banks. Savings and loan associations registered a net decline in savings shares amounting to $60 million, this represented the first October in which S&L's experienced a net outflow of deposits. More information on savings flows is presented in,the table on the following page. Stock prices. Common stock prices fluctuated within a narrow range last week in trading that averaged 7.4 million -shares a day. Standard and Poor's index of 500 stocks ended the week at 80.13, a decline of .72 points from the week earlier level. Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. SAVINGS FLOWS Unadjusted Data k Year or Month Total 1/ Mutual Savings Banks 3/ Commercial Banks 4/ Savings & Loan Assoc. 2/ Change Per cent Current Change Per cent Current Change Per cent Current (millions) change from (millions) change change from (millions) from previous previous previous year year year Unadjusted 1960 61 62 63 64 65 14,633 20,070 27,901 29,100 28,957 31,953 7,559 8,743 9,351 11,072 10,579 8,384 952 1,184 608 1,721 -493 -2,195 14.4 15.7 7.0 18.4 -4.5 -20.7 1,362 1,912 3,038 3,255 4,236 3,582 412 550 1,126 217 981 -654 43,4 40.4 58.9 7.1 30.1 -15.4 5,712 9,415 15,512 14,773 14,142 19,987 3,787 3,703 6,097 -739 -631 5,845 196.7 64.8 64.8 -4.8 -4.3 41.3 196^6 June 3,025 July 422 Aug. 1,013 H Sept. 621 Oct. gj -535 1,185 -1,508 124 630 -60 -418 -i.,076 -430 -410 -642 -26.1 224 195 160 373 131 -212 -17 -50 -57 -39 -48.6 -8.0 -23.8 -13.3 -22.9 1,616 1,735 729 -382 -606 -85 131 -906 -1,792 -2,619 -5.0 8.2 -55.4 293 -393 348 408 52 -468 -1,016 -422 -421 -640 -61.5 -64.9 -3.8 -18.0 -23,4 -9,6 1,299 2,188 568 90 -134 -121 185 -919 -1,734 -2,572 8.5 9.2 -61.8 -95.1 -- -77.6 -39.4 — —— Seasonally Ad lusted 1966 June July Aug. Sept. Oct. £ V If 3/ 4/ 1,710 2,096 1,130 711 211 — -54.8 -50.8 -92.5 118 301 214 213 293 -218 -12 -47 -65 -31 Commercial bank data are of the last Wednesday of month except June 30 and December 31; other data are as of the last day of the month. Data are for the net increase in savings capital at all operating S&L's, Source; FHLBB. Data are for the net increase in regular deposits—excludes other deposits of a demand nature. Source: Mutual Savings Banks Association. Data are for the net increase in savings and time deposits adjusted at all commercial banks, Source: Federal Reserve. I, H I O H - O I A D I 5.5 5.0 CORPORATE A m 4.5 I.S. 60VEI A T 7 4 " 3.5 3.0 2.5 1961 Date 1962 Corporate Aaa U 1959-60 - High 1962-63 - L o w 1965 - L o w 1966 - High - Low Nov. 4 11 18 25 Dec. 2 £/ 1963 U.S. Govt. long-term 2/ 1964 1965 State and local government Aaa 3/ 4 . 6 1 (3/29/60) 4.19 (3/29/63) 4.41 (3/12) 5.52 4.73 4.42 (1/8/60) 3.65 (9/24/59) 3.85 (12/26/62) 2.88 (U/e/62) 4.13 (6/25) 2.94 | 5.35 5.35 5.36 U.67 4.73 4.77 4.76 4.74 - til m 3.39 i l i 1966 Spread b e t w e e n U . S . G o v t , and Corporate S t a t e and l2£tl Aag. .92 (4/22/60) .59 (8/5/60) .21 (13/27/63) .22 :U 3.72 3.72 3.81 3.87 .68 .62 .59 .60 3.89 .63 .80 (1/5/62) 4 .95 1.01 .96 .89 .85 ty Pnllaiaiiyt V Weekly average of daily figures. Average term of bonds included is 22-24 years. W 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. Bote.—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. - 1XMISI1 K ?,n I L O N O - I I R M B O N D YIELDS, I O W I I O l A D l I I I I II II I I 1963 1964 1969 Exhibit B -- Part II Corporate Baa 1/ State and local govt. Baa If (per cent) 1959-60^- High Year end - 1962 1964 1965 1966 - High Low Nov. 4 11 18 25 Dec. 2 £/ Mote* 5.36 {2/12/60) 4.93 4.80 Spread between Aaa and Baa State and Corpora te local govt. 4.46 (3/7/60) 3.57 3.51 .84 .70 .37 5.05 (1/14) 43.559 (8/25) 3.78 (1/20) .31 6.10 6.11 6.12 6.16 6.18 4.32 4.32 4.35 4.35 4.37 (12/2) Tor footnotes see Exhibit i. ill .75 .76 .76 .80 .81 1.08 .63 .52 .31 .60 .60 .54 .48 .48 S H O B T - A N D I N T I B M I D I A T I - T I R M INI OOVEIHMENT 3 - 5 YEA# ISSUES I - MONTH BILLS F. R. DISCOUNT RATE 3-MONTH BILLS 1961 1962 1963 1964 1865 Exhibit C — Part II Date 4 11 18 25 Dec. 2£/ Spread between yields on 3smnth bills and Yields on , s a n / 4.00 3.00 3.00 3.50 4.00 4.50 4.50 4.50 4.59 ( W 6 0 ) 2.66 2.89 3.52 3.83 4.47 5.52 (9/23) 4.39 (6/24) 5.00(1^/2^9) 3.81 2.90 3.41 2.93 4.07 3.64 3.93 4; 0? 4.66 4.90 . 5.92 (9/23) 5.83 (9/2) 4.53 (6/24) 4.80 (4/8) 4.50 4.50 4.50 4.50 4.50 5.29 5.41 5.38 5.26 5.17 5.57 5.68 5.63 5.49 5.26 o Nov. Yields 6-month bills 2/ (per. cent] > I 1959-60 - High Year end - 1961 1962 1963 1964 1965 1966 - High Low Discount 3-month rate bills 2/ 1/ 5.38 5.45 5.47 5.43 5.34 .79 .24 .04 .13 .10 .19 .52 .09 1.81 1.15 .52 .55 .24 .43 .78 .01 ,38 ,27 ,25 .23 ,09 .09 .04 .09 .17 .17 T U 2 5 d s ? yields weekly ateratee oooyuted fro* delly oleeln* bid prices, Series of 3-8 year l * m m # oonsists of selected notes and bonis. ' Mote*—Hlgbs and lews are for Individual series and may be on different dates for different series, for spreads, high refer* to widest, and low to narrowest. EXHIBIT 0. Fort I SHORT- A N D I N T I R M I D I A T i - T I R M INTIRKST R A T E S FEDERAL FUNOS 1963 1962 1961 1964 Exhibit D — Da te Prime rate 1959-60 - High Y e a r end - 1961 1962 1963 1964 . 1965 1966 - H i g h Low Nov. Dec. 4 11 18 2£ , 1/ 1965 1966 Part II Finance company Federal funds 3/ paper 2/ (per c e n t ) 5.00 4.50 4.50 4.50 4.50 5.00 6 . 0 0 (12/2) 5.13 (1/23/60) 3.00 3.19 3.88 4.06 4.75 5.88 (12/2) 4 . 0 0 (5/13/60) 2.88 3.00 3.50 4.00 4.63 6.00 (11/4) 5 . 0 0 < 3/4> 4.75 3.55 6.00 6.00 6.00 5.88 5.88 5.88 1:88 1:11 ( 1/7) 6.00 5.75 5.80 (1/21) Spread between 3 - m o . bills and finance co. paper 1.02 .34 .30 .36 .23 .28 .99 .20 .59 .47 .50 Weekly rate shorn is that In effect at end of period. Prime rate is that charged by large 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 dally effective rate, whloh is the rate for the heaviest volume of purchase and sale transactions as reported to the Federal Reserve Bank of New York. Notes—aighs and lows are for Individual series and may be on different dates for different series. Tor spreads, high refers to widest, and low to narrowest. y IXHISI1 I. ».M I HICES | — / STOCK MARKET CIIDIT *C«««6E W SHIES 1 MtEww ## ikon 12 . 1 VOLUME A t * . _ IL | -Vi a ^ , / h 1961-62 - High Low Nov. 1963 July 1965 1966 - High Low Sept. Oct. Nov. 18 25 2£/ M " / M r | 1963 Stock price index 1/ A M 1964 Exhibit E -- Part II Common Trading Stock mar ket customer volume 2/ Customers1 Bank yields 2/ (millions Total debit balloaoa to (oer cent) 9t ffharef) ancea 4/ "othera" 3/ (In millions of dollara) 72.04(13/8/61) 52.68(6/22/62) 72.62 84.91 93.77 (2/11) 73.20 (10/7) 77.81 77.13 2.82 3.96 3.14 10.1 2.4 5.3 5,60*13/61) 4,259(12/61) 1,418(3/9/62) 4,424(1/61) 3,253(3/61) 1*161(3/4/61) 7,298 5,586 1,712 % 4.04 3.83 3.78 10.7 5.0 5.7 7.0 6 8 3 3 81.26 80.85 80.13 3.65 3.67 3.70 8.0 7.0 7.4 A997 7,302 7,525 7,302 n.a. n. a. n. a. A # 5,169 5,355 5,169 n.a. 2,107 2,170 2,133 2,114 2,110 . t available, j/ Preliminary ' Standard uund fPoor's of w500 ocemon stows, wesriy owe lag pnoee, u*X3*lD t ifstudMn o w i ooovosite uindue o k «h Monthly data are inrtj<s of daily figures rather thaa of Flimsy's only. Highs and Iowa are for Friday's data only. y Standard and Poor's ooapoaite stock yield based on Wednesday data converted to weekly eleelng prloea by Federal Reserve. Yields shewn are for dates om whloh prloe index reached its high or low. 3/ Averages of daily trading volume i the lew Ywtfc Stock ficohange. Ye&z^end figurea are averages of daily figures for the year* V lad of month figures for aeaber firms of the Mew Y e * Stock Exchange ehidi carry aooousta) exelodes balances secured by U« 3. Govs m e at obligationa. 5/ Wednesdayfiguresfor weekly reporting eember banks. Xxolndea loans for purchasing or earryiM S. Goverssaont aeouritiea* «fcekl^ reporting banka aooourt for about 70 per oeet of leana ta others. For further detail eee 1 (7/6) (11/9) S E C O N D A R Y MARKET O P E R A T I O N S I I I i M I II I I I M I I SALES PURCHASES 1962 1960 1965 1963 Exhibit F - Part II Estimated offerings Immediate Total purchase :o FNMA S tandby commitment Purchases by FNMA Sales by FNMA (In m i l l i o n s of d o l l a r s ) 1965 - Oct. Nov. Dec. 1966 - Jan. Feb. Mar. Apr. Hay June July Aug. Sept. Oct. H 209.9 238.3 325.7 333.2 209.2 272.8 193.0 192.2 144.2 122.6 150.7 140.4 167.5 Liquidating Programs. 209.9 237.2 325.6 333.0 209.0 272.3 192.3 191.1 141.7 121.0 148.7 138.5 164.2 1.0 .3 .3 .5 .7 1.1 2.6 1.6 2.0 1.9 3.3 W 78.5 140.2 186.7 229.2 267.3 301.4 193.0 167.3 131.6 213.2 112.5 95.5 107.2 0.2 0.1 w I I I I I 1 I I 1963 1964 1965 Exhibit 0 - Fart II fields on * w Corporate Bond Issues Adjusted to «n Aa* baa la July Aug. Sept. Oct. Nov. 8 10 9 13 7 11 5 5 8 8 5 300.0 304.5 513.0 452.3 341.0 596.0 155.0 , 680.0 280.0 333.5 285.0 T i j tariaz.masss 1966 - Jan. Feb. Mar. Apr. Hay 4.84 4.98 5.13 5.08 5.21 5.38 5.62 5.70 5.82 5.77 5.72 ... Oct. 7 14 21 28 Nov. 4 11 18 25 Dec. 2 . ' 1 2 2 3 4 40.0 63.5 115.0 115.0 155.0 1 130.0 2 5.81 5.86 5.82 5.67 5.61 r/ 5.85 - 50.0 5.86 - Weekly averages; 5.98(9/2) High 4.82(1/7) Low i N U t f M Z M N eoipermie boana n w i « m lot*« Xymr$4*» of effwiag yield# « «U i m m eweePttUe le e w e . effertile «f aatmxwl | u p & p e U w A by Moody's Sneetoze ®*rrio« (« i n i O r a i M t t ) weighted hy A m ef rf(«iug* uul fmiat ooaMaies* heeds gemueteed 19 the the Miade*el « A Asrt of Issues Average Included (nil. , y i e l d % Issues of dollsrs) fner centl lunber Am't of Issues Average Included (mil. yield of dedeatlag # « m the soteel Exhibit H. 14 Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) 3 I 1966 E/ Corporate 1965 1964 nital State and local 2/ / 1966 £/ 1965 1964 January February March 1,302 1,237 2,446 795 746 1,197 938 700 778 r/1,184 r/ 858 868 804 872 904 947 776 810 April May June 1,553 1,058 2,364 1,152 1,691 1,946 2,237 1,095 1,405 r/1,194 905 r/1,140 826 924 972 1,242 667 903 ; July August September 1,039 1,670 1,382 1,290 850 1,392 812 680 1,130 r/ 698 r/ 773 r/1,010 986 648 966 906 780 892 i 'j' i 924 1,325 1,496 953 669 1,642 e/ e/ 724 925 875 794 1,021 754 ' 801 529 948 ) 'i 4,985 4,974 4,091 e/4,175 2,738 4,789 3,533 3,745 2,416 4,738 2,621 3,264 r/2,910 r/3,239 r/2,481 e/2,524 2,580 2,722 2,600 2,569 2,533 2,811 2,578 2,278 9,959 14,050 e/18,225 7,527 11,060 14,805 7,153 9,775 13,038 r/6,149 r/8,630 e/11,154 5,302 7,902 ' 10,471 5,345 7,923 10,201 October November December 1st 2nd 3rd 4th quarter quarter quarter quarter 1st half Three quarters KYear .e/1,050 e/1,100 e/2,025it/ Excluding finance companies 2./ 1st 2nd 3rd 4th quarter quarter quarter quarter 4,924 4,884 Year e/ e/ 1/ 2/ 3/ 4/ 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. Includes $215 million Pennzoil note issue. Exhibit I New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) Quarter Month Gross proceeds for new capital and refunding 1/ Bo,ids Common Memo: Publicly Privately and Foreign Offered Placed pfd. issues stock included Net proceeds for new capital 1 / 2 / Total Mfg. Public CommuniUtility cations Other Issuers 1964 - III IV 2 ,876 3:,568 792 531 1 ,590 2,,629 494 408 94 227 559 1,061 642 509 59 135 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 j 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 IV 5,,094 5,,115 4,,197 1,,774 1,,941 2,,256 2,,586 2,,083 1,,627 734 1,090 314 345 168 153 1,860 2,205 1,558 969 960 657 602 392 567 1,2% i,#r 1,309 1965 1,443 930 1,538 986 1,398 1,646 542 369 664 287 613 326 780 468 706 574 529 1,161 122 93 168 124 257 159 27 87 150 99 101 99 399 307 414 273 402 470 202 297 287 158 209 243 102 25 196 92 43 43 587 222 495 401 671 741 1,339 1,273 2,482 1,582 1,106 2,427 1,085 1,712 1,400 1,090 460 560 753 628 481 832 440 1,140 676 520 692 583 1,311 743 556 784 535 435 657— 450 187 130 417 210 69 811 110 137 67 120 93 118 133 86 33 49 69 22 62 353 530 977 692 376 1,137 397 518 643 450 388 241 340 364 274 322 263 313 81 300 141 160 301 76 40 276 52 318 198 75 420 306 827 421 368 629 327 522 460 225 1966 July Aug. Sept, Oct. Nov. Dec. 3/ Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. t! Nov. Dec. £./ Preliminary. e/ Estimated by Federal Reserve. Gross proceeds exceed net proceeds by the cost of flotation. 1/ 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. 4/ Includes $229 million Consolidation Coal issue for partial payment of a liquidating dividend. SOURCE: Securities and Exchange Commission. Exhibit J Other Security Offerings (In millions of dollars) o-fpvm 1/ iQfifi January February March April May June July Augus t September October November December Jan. - Oct. 12 40 40 66 69 76 72 7 50 n.a Year 1QAS 1Q (sL 218 91 33 74 5 52 75 2 4 82 69 30 75 26 20 13 7 180 72 58 584 506 661 636 38 73 1QK6 1Q6S 503 410 392 699 1,030 1,084 799 400 129 185 325 n.a. New short-term 4/ State and local Goverment 5/ January February March April May July August September October November December Jan. - Oct. 103 39 -319 580 462 -334 -103 270 2./-161 238 91 -458 647 204 -82 119 408 152 59 274 103 236 -407 442 81 -80 -9 127 176 7 -15 -208 308 -24 450 718 85 284 -590 -270 -652 n.a. 1,378 676 n.a. 1 964 -— • -.i, i; 239 150 375 375 179 275 260 160 >• \* 510 | 2,178 1.2°5 2,732 1,205 775 -- Federal Agency 3/ -137 -174 117 -11 509 237 132 206 105 -309 202 -76 -308 -336 23 97 183 239 -333 167 1 525 113 -3 675 258 1,286 368 453 Year 801 2/ 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 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 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 datg differ from those 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 original maturity of one year or less. 5/ Principally tax and bond anticipation notes, warrants, or certificates and Public Housing Auth. notes. In some instances PHA notes included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal Reserve. £ —— f >" % X, : H. 14 Exhibit K Large Lojig-term Public Security Issues for New Capital (Other than U. S. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) Total 1965 - Nov. Dec. 1966 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Conor*• te Bonds Convertible (other than bonds convertibles) Stocks -- 115 70 271 106 84 75 55 50 20 182 257 340 116 97 661 50 80 55 50 Other U 95 538 413 787 424 399 720 466 582 338 410 611 387 464 144 33 50 559 212 370 391 544 481 351 636 170 862 287 352 363 736 262 485 545 890 643 401 1,317 402 1)189 627 523 510 State and local governments --- 55 60 275 15 -- 50 55 Large Individual Issues Offered November 1 through December 2 Type 2/ Issuer <?9TB9rat.e Whirlpool Corporation Wise. Elec. Pwr. Co. Pacific Gas & Elec. Co. Transcontinental Gas Pipeline Corp. Pacific Tel. & Tel. Co. American Airlines, Inc. Union Tank Car Beneficial Finance Co. Foxboro Company Southern Calif. Edison Co. Florida Power & Lt. Co. State and local Govt. State of West Virginia Amount (millions of dollars) Maturity Coupon rate or net interest cost Offering yield Rating 35,.0 30,,0 80,.0 1986 1996 1998 5-3/4 5-7/8 5-3/4 5,.71 5,.70 5,.75 A Aa Aa 1st mtg. p.l. bds. 40.,0 130.,0 Deb. 81.,7 Conv. sub,, deb. Eq. tr. cert. 23,,0 25. 0 Deb. 15.,0 Conv. sub., deb. 50. 0 Cum. pfd. stk. 1st mtg. bds. 40. 0 21. 1 Com. stk. 1986 2002 1991 1986 1970 1986 6-1/4 6 5-1/2 5.85 6-1/4 5-1/8 6..30 5,.95 5,.50 5,.85 6.,40 5.,13 Baa Aaa Ba A Baa 1996 6 5..90 Aa 1967-91 3.75 3. 65-4.70 A S.F. deb. 1st mtg. bds. 1st mtg. bds. G.O. 20. 0 -- K-2 Large Individual Issues Offered November 1 through December 2 (Cont'd) Issuer State and Type 3/ Amount (millions of dollars) Coupon rate or Maturity net interest cost Offering vield Rating Govt. (Cont'd) Nashville & Davidson Co., Metro. Rev .-Q.-Ut. Gcvto cf Tennessee College of the State cf Texas, G.O Austin Hinds-Rankin Metro. Wtr. and Rev -Ut. Sewer Ass'n.. Inc. State of New York G.O. Ala. Pub, Sch. & College Auth. Rev., -Rent. Boston; Massachusetts G.O. Waterford Twp= S.D. , Mich. G.O. NeY• State Housing Fin. Agency Rev.,-Rent. State of California G.O. Rev. -Rent. La. Cap. Const. & Imp. Comm. Rev. -Rent. 111. State Bldg. Auth. Fa. State Hwy. and Bridge Auth. Rev. -Q. -Ut. Rev. -Q.-Ut. Florida Development Comm. Rev. -Q.-Ut. Md. State Roads Comm. Philadelphia, Pennsylvania G.O Munic. of Metro. Seattle, G.O. Washington Rev. -Q.-Ut. Oklahom^ Turnpike Auth. Rev. -Q.-Ut. Oklahoma Turnpike Auth. 25 .0 1969 -2006 3 .94 3 .85-3 .90 Aa 11 .1 3 .70-3 .75 Aa 1968 -76 3 .90 12,.5 35,.4 36,.0 18 .5 10..8 50.,3 100.,0 15..0 17.,6 25.,0 23.,5 22. 0 41. 1 1971 -2001 1967 -2015 1967 -85 1967 -96 1967 -96 1967 -98 1976 -2016 1967 -91 1967 -87 1969 -88 1996 1967--81 1968--97 5 .60 3,.78 4,.29 4,.39 4..49 4,.24 4.,11 4..43 4.,48 4.,11 4.,94 4. 28 4. 25 -.a. 3,.50-3,.75 Aa 4,.00-4,"2°6/ Aa 4,.15-4,,20=y Baa Baa 4,.20-4,.40 3..75-4.-15 5/ 3..90-4., 10^ Aa A 4.,10-4.,35 4.,10-4.,35 3.,90-4.,04 4.82 Baa Aa 4. 00-4. 20 3. 90-4. 20 A 15. 0 150. 0 36. 0 1975--2006 4. 50 4. 25-4. 45 2U06 4. 92 4: 70-5. 00 Baa Ba 7-1/4 6 6 7. 65 6. 16 6.35 A Other Government of Mexico New Brunswick Elec. Pwr. Comm. City of Montreal, Canada Ext. S.F. bds. S.F. deb. S.F. deb. 10. 0 15. 0 30. 0 1981 1991 2006 -- "" *--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 foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. 3/ In the case of State and local Government Securities, G.O. denotes general obligations; Rev.-Ut.5 revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bends secured only by revenue from quasi-utilities; Rev.-S.To, revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. 4/ Bonds maturing 1967-68 and 1987-96 not publicly reoffered. 5/"Bonds maturing 2015-16 not publicly reoffered. 11 H. 14 Exhibit L Forthcoming Large Long-term Public Security Offering for New Capital (Other than U.S. Treaaury) U Expected Proceeda from Forthcoming Large Iaaues (In milliona of dollara) During month following date ahown State and Corporate Other 2/ local govt. 1965 - Nov. 30 Dec. 31 1966 - Jan. 31 Feb. 28 Mar. 31 Apr. 30 May 31 June 30 July 29 Aug. 31 Sept,,30 Octo 31 Nov. 30 297 553 530 828 489 248 1,261 317 677 662 687 397 1,098 20 20 398 501 340 366 253 399 584 337 403 515 300 140 496 20 — 30 15 40 Corporate 344 676 931 1,176 606 1,034 1,261 619 697 853 767 457 1,133 Subsequent to date ahown State and local govt. 458 582 461 504 334 546 •' 584 353 403 685 380 175 571 Other U 20 20 20 90 55 55 85 50 35 90 •35 35 65 Forthcoming Large Offerings as of E^cember 2 Iaauer Type Amount (milliona of dollara) Approximate date of offering Corporate . Western Union Telegraph Co. . Rchr Corp. t Tennecc, Inc. s New Jersey Bell Tel. Co. Braniff Airways, Inc. rGeneral Aniline & Film Corp. | Commonwealth Edison Co. ; General Pub. Utility Detroit Edison Co. General Tel. & Elec. Corp. : Consolidated Edison Co. of N.Y. Southern Calif. Gas Co. United Air Lines ^Pacific Tel. & Tel. Co. Pennzoil Company S.F. deb. Conv. sub. deb. 1st mtg. p.1. bds. Deb. Sub. deb. Deb. 1st mtg. bds. Com. stk. 1st mtg. bds. S.F. deb. 1st mtg. bds. 1st mtg. bds. Conv. sub. deb. Com. stk. Notes 50.0 15.0 60.0 55.0 60.0 50.0 50.0 28.2 100.0 125.0 75.0 40.0 114.7 20.3 215.0 December December December December December December December December December December December December December December December 6 6 6 7 7 8 8 9 (rts. ex.) 9 13 15 16 20 (rts. ex.) 30 (rts. ex.) forthcoming Large Offerings as of December 2 (Cont'd) Issuer Type Amount (millions of dollars) Approximate date of offering Corporate (Cont'd) *Associates Investment Co. McCall Corporation United Nuclear Corporation Notes Conv. pfd. stk. Conv. sub. deb. 35.0 20.0 15.0 January Indefinite Indefinite State and local Government Ga„ Univ. System Bldg. Auth. State of Mississippi New York State Dorm. Auth. State of Tennessee Housing Assistance Admin. Los. Angeles Co. Fid. Control District, California Belridge Wtr. Storage District, California Richmond 5 Virginia State of Vermont. Calif:. Toll Br. Auth. , Sacrament: Greater New Orleans Exp. Comm. ^•St.ate of Ohio F Rev.-Rent. G.0. Rev.-Rent. G.0. Bonds 25.5 26.2 30.1 28.0 115.4 December December December December December 6 6 6 7 7 G.0. 15.0 December 13 G.0. G.0. G.0. 10.3 14.3 20.0 December 13 December 14 December 14 Rev. -Q. -Ut. Rev.-Q.-Ut. G.0. 47.6 72.4, 75.0* December 14 December 20 January 5 Deb. Bonds 50.0 15.0 Indefinite Indefinite Other Quebec Hydro -Elec. Comm. Nippon Tel. & Tel. Pub. Corp. *--Included in table first time. 1_/ Includes corporate d other issues of $15 million and over; State and local government issues of $10 mill; _nd over. 2/ Includes foreign government and International Bank for Reconstruction and Development issues and ncn-guaranteed issues of Federal Agencies. Note: Deletions for reasons other than sale of issue: The issues of Chicago Public Building Commission, Atlanta. Georgia Airport and Republic of Ireland were postponed. . i i i ?r i f /I If Exhibit M H. 14 Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Date Amount (Millions of dollars) | A. Public Offerings Issuer and Description of Issue Sold October 1 through December 2. 11/15 10.0 Government of Mexico--7-l/4% external sinking fund bonds, maturing 1981, reoffered to yield 7.65%. 11/16 15.0 New Brunswick Electric Power Commision—6% sinking fund debentures maturing 1991, reoffered to yield 6.167=. 11/16 30.0 City of Montreal, Canada-6% sinking fund debentures maturing 2006, reoffered to yield 6.35%. B. Prospective Offerings * Indefinite 50.0 Quebec Hydro-Electric Commission—debentures. Indefinite 15.0 Nippon Telegraph and Telephone Public Corp.--Bonds * — ** — *** — Included in table for first time. Issue sold to investors outside of U.S. Issue subject to interest equalization tax. M-2 Part II; Date Reported - Private Placements - Reported October I through December 2 Amount (millions of dollars Issuer and Description of Issue 10/28 44.0 Bell Telephone of Canada--6% 1st mortgage bonds, maturing 1996—$33.5 taken down balance by January 13, 1967. 10/28 12.0 Canadian Fina Oil Ltd.--6-1/2% guaranteed notes, maturing 1996--to be taken down by March 30, 1967. Note: For retrospective data on aggregate foreign corporate and government security offer-^ ings 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 letter 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 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 date a placement is reported.