Full text of H.16 Capital Market Developments : December 7, 1964
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Not for Publication^^ C Q K T H 0 L L E P AFTER SIX MONTHS
\
v.^C
December 7, 1964.
J
Gj&B^TAL MARKET DEVELOPMENTS
; ; D — T H f i UNITED STATES
i ^\(Inciudii%^Reyi«b of Capital Markets in November)
\ Corporate and municipal bond markets; Corporations are expected to offer $100 million in new securities this week, less than
last week's, offerings though still well above those in other recent
weeks. In contrast, the $344 million volume of State and local
government bonds on the calendar for this week is about twice as
large as both last week's supply and the weekly average over the
past year. The largest municipal offering scheduled for this week
is a $104 million package of Public Housing Authority bonds.
Long-Term Public Security Offerings 1./
Corporate
New Capital
Refunding
State and Local govt.
New Capital
Refunding
Sold:
52 week avg.
Nov. 20
Nov. 27
Dec. 4
Scheduled:
Dec. 11
1/
118
21
5 r/
160
100
1
176
8
r/ 222
r/ 97
162
32
344
--
z
Federal Reserve estimates based on published reports of issues sold
and scheduled for offering; corporate rights offerings arc included
as of the date subscription rights expire.
Despite the uncertainty present in the bond markets since the
discount rate increases, underwriters bid aggressively for last week's
long-awaited investment-grade corporate bonds. Consequently, the average
yield on these three large issues was only one basis point above that
for late October when the last eligible issues were offered. The
rescinding of a prime rate increase by a large Eastern bank triggered
a guide sellout for these issues.
In the municipal market last week, dealers' advertised inventories of unsold securities aere reduced by about $30 million with
last week's moderate volume of new issues reported as half sold. Yield
increases on seasoned bonds recorded by most yield series for the previous
week were largely erased, with Moody's Aaa series going back to its low
for the year.
H. 14
Yields in Securities Markets
High-Grade
Notes and Bonds
Corporate
New
Seasoned
Level latest week
(per cent)
4.47
4.45
Change from
preceding week
(basis points)
n.a.
+1
U.S. Govt.
Long-term
3-5 year
4.15
4.11
State and local govt.
3.05
- 4
3.90
+59
3.82
3.97
3.94
+4
+1
+3
Money Market
Federal Funds
Treasury bills
3-month
6-month
Finance Company Paper
'
Stock prices. Common stock prices declined sharply early last
w#ek but recovered part of these losses later in the week. Closing
at 84.35 on December 4, prices as measured by Standard and Poor's
composite index of 500 stocks, were one per cent lower than a week
earlier. Trading volume averaged 4.7 million shares a day, the same as
in the previous week.
Capital markets in November. Corporate security financing
to obtain new capital is estimated to have amounted to $650 million in
November, one-fifth less than a year earlier. Practically all of this
financing consisted of private placements and public offerings were
composed of small issues.
With no overhang of unsold issues in dealers1 hands and a
light calendar of public offerings in prospect for the rest of the
year. The first three weeks of the month were marked by falling yields and
active trading in recently distributed issues. The rally ended
abruptly on November 23, when the sterling crisis forced an increase
in the British Bank rate to 7 per cent and this was followed by an
increase in the discount rate to 4 per cent.
Bond sales for new capital by State and local governments
during November totaled $550 million, one-fourth less than in the comparable 1963 month. Underwriters were able to distribute most new
issues at retail with little difficulty, and dealers' advertised inventories of unsold securities (about $600 million) at month-end were
at about the same level as a month earlier. Because of the favorable
demand situation through the first three weeks in November, most
municipal yield series had fallen 7-14 basis points from their October
peaks, and the response to the discount rate hikes offset approximately
only one-half of these earlier declines.
H. 14
Common stock prices had reached a new high prior to the
sterling crisis and thereafter dropped about two per cent from this high
during the last five trading days of the month. Prices, as measured by
Standard and Poor's composite index of 500 stocks, closed on November 30,
at 84.42,about one-half of a per cent below the end of October level.
Trading volume averaged 4.9 million shares a day during the month, 0.3
million shares a day less than a year earlier.
Estimated security financing, in December. Security financing
by corporations is expected to rise seasonally in December, but an
anticipated month-to-month gain in State and local government bond
financing is contra-seasonal. (See Exhibit H.)
Corporate security financing to obtain new capital in December
is expected to total $1,150 million, up $400 million from the low
November total but about one-fifth less than the record for this month
set last year. About three-fourths of volume will consist of the usual
large takedown of private placements at tha year-end. Large issues
scheduled for public offering amount to $230 million.
S,tate and local government bond sales are estimated at $700
million in December, a record for the month and almost seven-tenths
larger than a year - earlier. Largs issues currently on the calendar
for offering during the month' amount to $418 million.
More detailed information concerning recent -capital market
developments is presented in. thy- attached exhibits.
Capital Markets Section*
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.
LONG-TERM B O N D YIELDS, H I G H - G R A D E
J JJ-LLLl-t-LL
Exhibit A - Part II
Date
Corporate
Aaa
U. 8. Govt,
long-term 2/
State and
local
government
Aaa 1/
Spread between
U. S. Govt, and
State and
Corporate
Aaa
local Aaa
(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
196U - High
Low
U. 61(1/29/60)
14.1*6(9/15)
14.21(3/17)
14.1*3(2/16)
1.23(12/2$
U.37(l?/27)
1.19(3/29)
4.45(12/4)
4.35(2/28)
U.U2 (1/8/60)
It. 07 (12/29)
3.70 (5/12)
14.12(2/23)
3.85(12/28)
14.16(12/27)
3.87 (1/18)
4.20(4/17)
4.11(11/20)
3.65 (9/24/59)
3.37 (7/6)
3.12 (2/23)
3.26 (1/4)
2.88 (11/8)
3.18 (u/21)
2.93 (3/28)
3.16(3/26)
3.05(12/3)
Nov. 6
Nov. 13
Nov. 20
Nov. 27
Dec. 4 £/
4.43
4.43
4.42
4.44
4.45
4.12
4.11
4.11
4.15
4.15
3.10
3.07
3.05
3.09
3.05
. ,
.59
.57
•3U
,.U7
.30
.35
.21
.32
.19
.92
•76
.I46
l.Olt
.80
1.05
.88
1.10
1.01
.31
.32
.31
.29
.30
1.02
1.04
1.06
1.06
1.10
p/ Preliminary.
j/ Weekly average of daily figures# Average term of bonds included is 22-24 years#
y Weekly average of daily figures. The series includes bonds due or callable in 10 years or mors.
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. Tor spreads, high refers to widest, and low to narrowest#
L O N G - T E R M B O N D YIELDS, LOWER-GRADE
Exhibit B - Part II
Date
Corporate
Baa 1/
State and
local govt.
Baa 1/
Spread between
Aaa and Baa
State and
Corporate
local govt.
(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
- Low
196U - High
Low
5.3$ (2/12/60)
5.13(10/27)
5.00(4/21)
5.13 0/5)
U. 92(12/21)
U.93(3/4)
U.83(l3/35)
4.87(6/26)
4.80(11/20)
Nov.
Nov.
Nov.
Nov.
Dec.
4.81
4.80
4.80
4.81
4.83
Notet
6
13
20
27
4 2/
For footnotes see Exhibit A»
14.146(1/7/60)
14.16(3/23)
3.93(U/»)
U. 014(3/11)
3-52(5/17)
3.63(6/27)
3.52(5/23)
3.59(10/8)
3.49(lt/19)
3.55
3.50
3.49
3.54
3.52
.8I4
'
.81
.66 '
.Ik
.63
.71
•1*8
.48
.37
.38
.37
.38
.37
.38
1.08
.93
.57
.82
.56
.63
.W
.49
.36
.45
.43
.44
.45
.47
SHORT- AND
I N T E R M E D I A T E - T E R M INTEREST RATES, G O V E R N M E N T
r
•
1
w
6-MONTH I I I
Y
3 $ mi
' MH ;
^ ; v
3-MONTH l l l i ?
1
M 11111 M i
J. _LL LJ J—1. .L.±_L I - J _L !_]_! J.J _L 1 1 1:11 1 1 1 1 1 1 1. 1 i Li..
I960
Date
Discount
rate
y
1961
1162
Exhibit C - Part II
3-month
bills 2/
1963 '
Yields
6-month 1 3-5 year
, bills 2/ ( issues 2/
(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
196U - High
Low
U.oo
3.00
3.00
3.00
3.00
3.50
3.00
4.00
3.50
U. 59 (1/8/60)5,07(1/8/60) 5.00(12/24/59)
2.66 !2/29) 2.90.(1/29) 3.86(8/11)
2.17(V27) 2,35(4/28) 3.15(5/12)
2.97(7/13) 3.13(7/20) 3.88(2/2)
2.65(6/8)
2.7U(6/8)
3.241(12/28)
3.55(13/15) 3.68(12/6) U.07 (12/27)
3.1iU(V3fl)
2.88(3/15) 2.93(3/8)
3.82(12/4) 3.97(12/4) 4.23(3/27)
3.43(7/17) 3.52(7/3) 3.98(8/7)
Nov . 6
Nov. 13
Nov. 20
Nov. 27
Dec. 4 £/
3.50
3.50
3.50
4.00
4.00
3.56
3.58
3.61
3.78
3.82
3.72
3.74
3.78
3.96
3.97
4.02
4.00
4.02
4.11
4.11
i i i i i I i i I M
~M64
Spread between yields on 3month bills and yields on
6-mo. billsj3-5 yr. issues
.79
•Ui
.12
.2k
.02
.17
.OU
.21
.04
1.81
1.51
.92
1.19
.52
.70
.1*2
.71
.29
.16
.16
.17
.18
.15
.46
.42
.41
.33
.29
Weekly rate ah own is that i n effect at end of period at the Federal Reserve Beak of New York.
Market yield $ weekly averages competed from daily o losing bid prices. Series of 3 - 5 year issues
consists of selected notes and bonds.
N o t e , — S i g h s and lews are for individual series and nay be on different dates for different series.
For spreads, high refers to widest, and low to narrowest.
S H O R T - A N D INTERMEDIATE- TERM INTEREST RATES,
B A N K S A N D OTHER PRIVATE BORROWERS
—4
'
Exhibit D - Part II
Date
Stock exchange
call loan 1/
195>9-60High
1961 - High
5.56
U.50
U.50
k.50
U.5o
U.50
a.5o
4.50
4.50
Prime
rate 1/
Finance company
paper 2/
Federal
funds 3/
Spread between
3-mo. bills and
finance co. paper
'per cent)
1962 - High
Low
1963 - High
Low
196k - High
Nov.
Nov.
Nov.
Nov.
Dec.
6
13
20
27
4 jd/
4.50
4.50
4.50
4.50
4.50
2/
5.00
U.50
U.50
u.50
U.50
U:5o
U.5o
4.50
4.50
4.50
4.50
4.50
4.50
4.50
5.13(1/22/60)
3.00(12/30)
2.50(8/5)
3.25(7/21)
2.88(6/1)
3.88(12/27)
3.13(5/31)
3,94(12/2)
3.72(9/11)
3.88
3.88
3.88
r/3.91
3.94
U.00 ( 5 / 1 3 / 6 0 )
2.90(11/17)
.U3 ( V 2 7 )
1.02
.56
.11
3.00(12/28)
1.30 ( 3 / 2 6 )
3.50 (12/27)
2.U5 ( 7 / 2 6 )
.U5
.19
.39
3.90(12/4)
3.07(10/16)
.41
.10
3.50
3.55
3.55
3.31
3.90
.12
.32
.30
.27
r/.13
.12
Weekly rate shown is that in effect at end of periqd. Stock Exchange call loan rate is going rata
on call It)ana secured by customers' stock exchange collateral at New York City banks. Prims rate
is that charged by large banks on short-term loans to busimss borrowers of the highest credit
. standing.
2/ Arerage 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.
N o t e f l i g h s 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#
STOCK M A R K E T
V
w w \ v
L
v
;
l I
1|
'
/
/
STOCK MASXET CREDIT
CHANGE
Million! of iho
,1.
% A a I ^
;
p \ /
v
.
V r —
'
Exhibit E - Part II
Stock pries
index 1/
S t o c k m«u"ket cu. s t o m e i c r e d i t
Common
Trading
stock
volume 3/
(millions
yields 2/
(per c e n t ) of shares)
Customers'
Total
debit balances k /
.Bank
l o a n s to
"others" 5 /
(In millions o f dollars)
1961-62 - High
Low
1963 - High
196U - High
Low
7h.bk(Wz7)
2.80
10.1
5,602(12/61)1*,259(12/61) 1,1*18(5/9/62)
3.96
3.01
6.5
U,U2U(1/61) 3 , 2 5 3 1 3 / 6 1 ) 1 , 1 6 1 ( 3 / 8 / 6 1 )
7,298(11/63)5,586(11/63) 1 , 7 3 8 ( 1 2 / 2 5 )
2.It
86.28(11/20)
2.95
6.1
75.50(1/3) '
3.10
3.6
7,314(4)
7,096(8)
5,524(1)
5,185(11)
7,101
5,185
1,950(11/18)
1,720(1/22)
1,916
Oct.
r/84.85
2.95
4.8
Nov.
Nov.
2.96
4.9
1,948
20
85.44
86.28
2.95
5.6
1,950
Nov.
27
85,16
2.99
4.7
1,948
84.35
3.03
4.7
Dec.
4 £/
n . a . — N o t available, p / Preliminary.
l/"standard'and Poor* s " omposite index of 5 0 0 ccemra stocks, weekly closing prices, 1941-43-10.
Monthly data are averages of daily figures rather than of Friday s only. Highs and lows are for
2/ Standard and"poor*s 0opposite stock yield based on Wednesday data converted to w»eklv o3aslng
prices by Federal Reserve. Yields shown are for dates on which price index reached its high
3/
y
5/
Averages of daily trading volume on the New York Stock Exchange.
End of month figures for number firms of the New York Stock Exchange which carry margin accounts;
excludes balances secured by U . S. Government obligations.
, ,
,
Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
U . S. Government securities. Weekly reporting banks account for about 70 p e r cent of loans to
others. For further detail see Bulletin#
mJ
M O R T G A G E A N D B O N D YIELDS
HOME MOIIGAGIS
(OlPOliK I0HD5
J_U LU-Ll>.i>
1959
Date
—
1956 - Low
1957 - High
1958 - Low
1959-60- High
1961-64- High
Low
July
August
September
October
November
I960
Exhibit F
1961
l»6J
Part IX
Conven- Spread be- Aaa Corporate
tween yields
on conv. &
gages
25-year FHA New-'' Seasoned—^
25-vear 30-vear
mortgages
mortgages
4.68
5.63
5.35
6.24
5.72
5.43
5.44
5.44
5.44
5.44
Spread between
yields on new corporate bonds and
Seasoned
FHA mtgs.
5.70
5.45
5.20
6.00
5.55
6.30
5.95
5.80
.47
.47
.15
.23
. -38
.23
3.08
4.94
3.65
5.25
4.72
4.12
3.08
4.12
3.57
4.61
4.45
4.22
.76
1.58
.88
1.69
1.50
.94
1.03
.05
.73
.39
-. 16
5.46
5.46
5.46
5.45
5.80
5.80
5.80
5.80
.36
.36
.36
.36
4.37
4.39
4.49
4.46
4.40
4.41
4.42
4.42
4.43
1.07
1.05
.95
.98
-.03
-.02
.07
.04
--
than bonds. Generally, bonds pay interest semi-annually! mortgages, monthly. Mortgage yields, if computed as equivalent to & semi-annual interest investment, would, be slightly higher than given in the
Based on IBA-field-office opinions about average bid prices in the private secondary market for newhome mortgages for inmediate delivery* Separate data available for 25-year and—begin!ng July 1 9 6 1 —
30-year mortgages with minimum downpaymants, weighted by probable volume of transactions , Yields com- '
puted by fHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year
mortgages. Over the period for itioh 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
Based on FKA 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
new as well as existing-home mortgages.
to FRASER
new-home mortgages; prior to that date, rate related to both
Digitized forDashed
line indicates this change in the series.
See note for Exhibit 6.
http://fraser.stlouisfed.org/
Moody's Investor Service, Monthly averages of daily data. See
Federal Reserve Bank of St. Louis
%
Exhibit A,
If,
YIELDS O N NEW A N D SEASONED CORPORATE BONDS
Exhibit G - Part II
Y i e l d a -on N e w C o r p o r a t e B o n d
Number A m ' t o f laauea
included (mil.
of
of dollars)
Monthly
1964
N u m b e r A m ' t o f laauea
yield
(ner c e n t )
averages:
of
Average
Included (mil.
yield
( n e r cent).
of dollare)
S e p t. 4
40.0
3
150.0
4.50
1
- Jan.
Feb.
11
40.0
125.0
4.38
1
4.48
3
18
1
60.0
Mar.
6
166.0
4.43
4.52
Apr.
May
1
130.0
4.48
10
278.0
230.0
4.46
8
July
3
Aug.
Sept.
4
Oct.
Weekly
1964
laauea Adjusted to an A a a basis
Average
7
3
4.43
4.46
12.0
4.44
•
1
18.0
4.46
4.37
23
4.39
30
- High
4.53(5/8)'
Lo»
4.30(2/21)
13
20
-——
4
——
---
27
Dec.
4.46
7'0.0
1
4.49
4.46
69.0
2
"
75.0
averages:
3
2
9
16
239.0
70.0
60.0
'
25
Oct.
4.48*
3
140.0
4.47
I o t a : Averages of offering yields on al* new issues or p u o u o i y orieroa oorporato oonas rate a juia, ju ana
A by Uoody's Investors Service (except serial and convertible is sues, offerings of natural gas pipeline
and foreign companies, and bonds guaranteed by the Federal Government) weighted by alee of offering#
Before averaging, new offerings are adjusted to a composite Aaa basis ty deducting from the actual
reoffering yield the excess of the weekly average yield for seasoned tends of the appropriate industryquality group over the composite average for seasonsd Aa*-rated tends (Moody's), Averages considered
unrepresentative because of special characteristics of 1he offerings included are denoted by an asterisk^
Exhibit H
H.14
Long-term Corporatei and State and Local Government
Security Offerings and Placements
(In millions of dollars)
1964
1
Corporate
1963
1962
930
685
754
594
1,144
549
860
819
April
May
June
2,178
1,069
1,378
930
904
1,013
July
August
September
780
661
1,035
January
February
March
New Capital
1964
State and Local 2/
1963
1962
£/ 946
£/ 771
fi/ 809
732
746
976
876
1 ,133
628
1 ,153
771
1 ,132
BA,215
£/ 666
£/ 902
869
866
930
873
912
786
676
637
795
573
773
557
£/ 904
£/ 756
e/ 900
680
708
449
612
544
427
—
October
November
December
£/
800
650
1,150
1,013
819
1,415
819
678
1 ,064
e/ 850
e/ 550
e/ 700
1 ,051
729
416
1st
2nd
3rd
4th
2,369
4,625
2,476
e/ 2,600
2,351
2,847
2,109
3,246
2, ,228
3;,056
1, ,902
2, ,561
E/2,527
E/2,782
e/2,560
e/2,100
2,,454
2 ,665
1,,837
2,,197
2.,637
2,,571
1,,528
1,,779
6,994
9,470
e/ 2,070
5,198
7,307
10,553
5,,284
7 ,186
j
9,,747
E/5,309
e/7,869
e/9,983
r 5,,118
6,,955
9,,151
5,,208
6,,790
8,568
quarter
quarter
quarter
quarter
'fst half
Three quarters
Year
e/
e/
Excluding finance companies 3/
1st
2nd
3rd
4th
quarter
quarter
quarter
quarter
1,996
4,170
r/ 2,226
e/ 2,350
2,284
2,529
1,768
2,854
^
650
578
550
-
2,169
2,970
1> 767
2,330
e/10,742
Year
9.1434
9,236
e/ Estimated by Federal Reserve.
£/ Preliminary.
JL/ Securities and Exchange Commission estimates of net proceeds.
2/ Investment Bankers Association of;America estimates of principal amounts.
3/ Total new capital issues excluding offerings of sales and consumer finance companies.
I>
H. 14
Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
1962 - I
II
III
IV
2,345
3,317
2,167
2,875
Gross proceeds for new
capital and refunding 1/
Common
Bonds
Foreign
Publicly Privately pfd.
Offered Offered
included
1,114
70
724
508
1,386
642
1,289
251
852
1,006
308
55
1,088
1,510
277
135
1963 - I
II
III
IV
2,700
3,634
2,436
3,466
1,108
1,389
898
1,319
1,306
1,820
...1,251
1,780
1964 - I .
II
III
IV
2,499
4,851
2,728
978
1,321
792
1,221
1,640
1,442
1963 - Apr.
May
1 ,049
1,340
1,246
810
756
871
1,116
891
1,459
380
550
459
279
336
283
511
183
626
452
694
675
431
318
501
481
549
751
217
95
113
100
100
87
125
159
83
338
279
361
383
470
468
234
183
375
175
526
342
353
480
537
623
411
433
598
550
121
88
91
1 ,372
148
370
225
112
156
170
Quarter
Total
July
Aug.
Sept.
Oct.
Nov.
Dec.
985
710
805
2,234
1,155
1,461
July
869
728
Aug.
Sept. 1,130
Oct.e/
895
1964 - Jan.
Feb.
Mar.
Apr.
May
Net proceeds for
new capital 1/ 2/
Public
Utility
649
996
566
747
429
984
376
552
456
228
274
317
694
848
685
945
128
434
109
47
947
591
896
968
326
794
285
530
236
221
150
118
842
1,241
868
1,629
300
1 ,890
494
29
105
85
418
723
547
438
856
6 42
273
1,663
59
1,240
1,383
1,229
56
182
196
46
21
42
10
10
27
148
216
227
297
272
237
240
214
515
341
222
230
107
100
78
201
131
198
71
92
58
86
25
39
41
13
64
. 369
373
499
187
187
441
531
461
637
149
123
146
186
206
332
149
164
234
200
109
155
. 174
151
441
264
' 207
138
296
220
157
83
34
1,377
.27
258
23
16
19
30
515
324
400
463
395
525
401
342
486
350
287
424
287
367
,
5
16
8
34
36.
35
21
21
44
Communications
Other
issuers
Mfg.
jj/ 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 & other transportation,
real estate & finance, & commercial & other.
Source: Securities & Exchange Commission.
Exhibit J
v4
H. 14
Other Security Offerings
(In millions pf dollars)
1964
-
January
February
March
April
May
July
August
September
October
November
December
Jan. - Oct.
e/
Gross long-term If
Federal agency 3/
Foreign government 2/
1963
1962
1964
1963
4
82
69
30
75
26
20
13
7
160
232
133
76
57
114
11
63
83
2
e/
|
486
Year
142
10
35
10
86
50
25
8
31
151
88
101
769
548
771
737
1962
I
•>
L
246
156
f
148
186
461
I
----
275
260
160
459
e/ 509
174
200
150
175
--
e/1,204
967
1,167
1,188
1,188
New short-term 4/
State and local government 5/
Federal a$tericv 3/
January
February
March
April
May
July
August
September
October
November
December
Jan. - Oct.
103
236
-407
442
81
-80
-9
130
159
n.a.
75
272
-367
589
-30
-10
62
208
-173
259
146
-339
18
466
-186
127
-84
-118
78
339
-406
71
234
-161
-78
-336
23
97
183
239
885
305
488
-333
167
1
525
-106
-189
-482
292
195
319
414
327
258
123
-102
551
247
-156
226
-364
8?
284
261
227
-157
379
55
-80
1,151
1,029
1.004
1.600
692
378
Year
available. l/These data differ
•
p/ Preliminary. e/Estimated by Federal Reserve, n.a. •Not
new capital issues , are infrom those in Exhibit H in that refunding issues, as
eluded. Long-term securities are defined as those maturing in more than one year. 2/Inby foreign governments and their political subcludes securities offered in the U.S. i
divisions and international organizations. Source: Securities & Exchange Commission. 3/
Issues not guaranteed by the U.S.. Government. Source: Long-term, Securities & Exchange
Commission; short-term> Treasury Dept. fit Federal Reserve. 4/These data 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 maturing of one year or less. 5/Principally tax and bond anticipation notes,
warrants or certificates and Public Housing Authority notes. In some instances PHA notes
included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal
,
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)
Cornoriate
Bonds
(other than
Convertible
convertibles)
bonds
Total
1963 - Nov.
Dec.
1964 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
180
547
307
263
335
1,557
452
650
291
142
376
187
117
515
225
200
296
235
415
390
178
125
269
108
""
"
Stocks
State
and
local
governments
63
32
22
28
38
1,271
37
260
113
60
35
51
17
25
Other
200
373
111
577
358
282
6^8
274
384
544
459
558
419
226
81
79
2/
50
20
15
275
260
104
15
502
15
"
Large Individual Issues Offered December 1 through 4
Issuer
Type 2/
Amount
(millions
of
dollars)
Corporate
1st & ref. mtg. bds. 65.0
Pacific Gas & Elec. Co.
Stauffer Chemical Co.
Deb.
35.0
Niagara Mohawk Pwr. Corp. Gen. mtg. bds.
40.0
State and Local Government
Boston, Mass.
New York State Dorm Auth.
Houston, Texas
G.O.
Rev.-Rent.
G.O.
13.1
11.5
27.0
Coupon
rate or
net interest cost
Offering
vield
1966
1989
1994
4-1/2
4-1/2
4-5/8
4.50
4.48
4.49
1965-94
1966-95
1966-85
3.20
3.59
3.13
Maturity
2.40-3.35^
2.60-3.67*'
2.30-3.20
Rating
Aa
A
Aa
A
A
A
Other
None.
*—Rights offering, n.a.--Net available.
\f Includes corporate and other security offerings of $15 million and over; State & 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 & local govt, securities, G.O. denotes general obligations; Rev.-Ut..
revenue obligation secured only by income from public utilities; Rev.-Q.-Ut., revenue bone
secured only by revenue from quasi-utilities; Rev.-S.T., revenue bonds secured by revenue
from specific taxes only; Rev.-Rent., revenue bonds secured solely by least payments.
4/ 1/4 per cent bonds maturing 1994 reoffered to yield 4.00 per cent.
5/ 1/10
cent bonds maturing 1995, reoffered to yield 4.40 per cent.
Digitized
forper
FRASER
11
H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
(In millions of dollars)
During month following
4
State and
local govt.
Corporate
;1
j 1963 - Nov.
Dec.
1 1964 - Jan.
Feb.
;
Mar,
f
Apr.
<
May
June
July
;
Aug.
;
sept,
1
Get,
:
Nov.
29
31
31
28
31
30
28
30
31
31
30
30
30
392
305
155
224
1,587
651
600
292
92
402
186
Other 2/
137
469
316
454
669
345
341
539
120
511
500
254
360
90
Subsequent to
25
15
Corporate
State and
local govt.
1,992
1,905
1,771
1,649
l,837j
84^
668\
15
167
s42
186
25
130
349
731
667
646
953
575
598
716
588
680
•
'
Other 2/
25
15
15
549
563
,25.
Forthcoming Large Offerings as of December 4
Type
Issuer
Amount
(millions
of
dollars)
-
Corporate
Grand tie City Steel Co.
Tennessee Gas Trans. Co.
Bank of California
*Conn, Yankee Atomic Pwr. Co.
Approximate date of
offering
•
Conv. sub. deb,Deb.
Cap. notes
1st mtg. bds.
30.0
40.0
20.0
40.0
Dec.
Dec.
Dec,
Jan.
G.O.
G.O.
12.5
30.0
Dec. z
Dec.
7
G.O.
13.8
Dcc.
8 ^
8
10
16
27
State and Local Government
Stacc. of Oregon
Nashville & Davidson Co. Met
Govt., Tenn.
8
Forthcoming Large Offerings as of December 4 (Cont'd)
Issuer
Type
Amount
(millions
of
dollars)
!
1 Approximate date of
I
offering
:U
State & Local Government (Cont'd)
Florida State Bd. of Education
Rev.-Rent.
Los Angeles Unif. Sch. Dist., Calif.
Rev.-Rent.
Public Housing Auth.
State of California
G.O.
'
Mass. Porte Auth.
i Rev»-Qc -U/:.
Pittsburghs Pa.
G.O.
Dade County, Fla.
G.O.
Va, State Highway Auth.
Rev. -Q. -lit.
Forth Worth, Texas
G.O.
Florida Dev. Comm.
Rev.-S.T.
25.0
25.0
104.0
150.0
43.0
35.0
46.0
31.0
14.1
33.8
Dec. 8
Dec, 8
Dec. 9
Dec. 15
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Other
^European Investment Bank
Bonds
25,0
Dec. 15
'[
. I;
*--Included in Tabic 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 for Federal agencies.
Note:--Deletions for reasons other than sale of issue: None,
H. 14
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.
10/27
!
35.0
10/29
Sold Oct. 1 through December 4
United Mexican States—6-1/4% sinking fund bonds
maturing 1979, reoffered to yield 6.43%,
Inter-American Development Bank-4-1/2% bonds
maturing 1984, reoffered to yield 4.57%.
B.
Prospective Offerings
None.
*
Difference in reoffering yields on bonds sold to U.S. citizens and those sold to foreign
citizens reflects an upward adjustment of 9.19 per cent in the price paid by U.S. citizens.
This premium was collected by the underwriters ia accordance with the provisions of the new
Interest Equalization Tax. This tax is collected—under a scale of rates which rises with
maturity--when U.S. lenders buy new security offerings from borrowers in certain designate!
"developed"
countries.
/
** I
M-2
Par t II:
Date
reported
Private Placement—Reported Oct. 1 through December 4
Amount
(millions
of
dollars)
Issuer and Description of Issue
10/2
50.0
10/19
7.5
10/20
25.0
The Alberta Government Telephone Commission—4-3/4%
debenture, maturing 1989--no information available on
takedown.
11/4
60.0
City of Montreal--5% sinking fund debenture, maturing 2004-'
no information available on takedown.
Bell Telephone Co. of Canada--4.60% 1st mtg. bds.,
maturing 1989--no information available on. ta1 :drwn,.
Province of New Brunswick--4/3-4% sinking funds debenture, •
maturing 1989--no information available on takedown.
11/5 ^
7.9
11/11
25.0
Toronto--Dominion Tower, Ltd.--4.85% first mortgage sinking
fund bonds, maturing 1989--no information available on
takedown.
;
11/18
29.1
Banco Naclonal Hipotecario Urbano y de Obras Publicas,
S.A.—promissary notes, maturing 1965-69—no information
available on takedown.
Note:
Montreal Catholic School Comm.--5% sinking fund debenture,
maturing 1989--no information available on takedown.
For retrospective data on aggregate foreign corporate and government security
offerings in the United States^see Exhibits I and J. There is no simple relationship
between the data shown in this^Exhibit and that shown in Exhibits I and J because the
latter includes privately placed securities in the period in which funds are actually
takendown but only in the amount of takedown, while the placements shown in this
are included when reported, frequently with little or no information conDigitized exhibit
for FRASER
cerning timing of takedowns. Full or partial takedowns may take place both prior and
http://fraser.stlouisfed.org/
subsequent to the data a placement is reported. ^--Included in table for first time.
Federal Reserve Bank of St. Louis
@FedFRASER