Full text of H.16 Capital Market Developments : February 1, 1965
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Not for Publication DECONTROLLED AFTER SIX MONTHS
H. 14
February 1, 1965
CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES
(Including Review of Capital Market
Developments in January)
,
XlBv
, : 3 **
Long-Term Public Security Offerings 1/
Corporate
New Capital I Refunding
Stkte an<Ll<#caT"govt.
New (Wrtal I Refunding
Sold:
52 week avg.
110
Jan. 22
Jan. 29
183
10
42 r/
75
1
300 r/
165
17 r/
40
177
Scheduled:
Feb. 5
--
1/ Federal Reserve estimates based on published reports of issues sold
and scheduled for offering; corporate rights offerings are included
as of the date subscription rights expire.
Corporate and municipal bond markets. Public offerings of corporate
securities this week are expected to total a modest $40 million, but the
new supply of municipal obligations ($177 million) will be about the same
as a week earlier.
Yields in Securities Markets
Level latest week
(per cent)
Change from
prededing week
(basis points)
High-Grade
Notes and Bonds
Corporate
New
Seasoned
4.33
4.42
- 1
U. S. Govt.
Long-term
3-5 year
4.13
4.05
- 1
+ 1
State and local govt.
2.96
Money-Market
Federal Funds
Treasury bills
3-month
6-month
Finance Company Paper
-
6
4.00
+60
3.85
3.94
4.03
+ 4
- 3
H. 14
-2-
FNMA secondary market operations. Sales in the secondary mortgage
market by the Federal National Mortgage Association totaled $5.9 million
in December. This was little changed from the moderately improved November
total and compared with $15.8 million in December of last year and recent
highs of more than $165 million during the spring months of that year.
Purchases by FNMA, which had declined in November, turned upward
again in December, to $32.5 million, compared with only $10.9 million a
year earlier. Offerings also rose, to $41.3 million, as against $14.1
million iti December of 1963. The December increase in both offerings and
purchases partly reflected revived transactions in mortgages held by the
Federal Housing Administration in exchange for FNMA-held FHA debentures.
Capital Markets in January. New capital security financing by
corporations in January amounted to an estimated $0.8 billion, one-seventh
less than a year earlier but three-tenths larger than in January 1963.
The bulk of this total consisted of private placements of debt obligations
with large public offerings amounting to only $130 million compared with
$307 million a year earlier.
The quick sell-out of the $200 million bond offering of the
International Bank for Reconstruction and Development (considered comparable
to corporate bonds by many institutional investors) early in the month
apparently encouraged underwriters to become very aggressive in their bidding
for the seasonally light supply of new bond offerings. As a result, the
average yeild on new corporate bonds -- adjusted to a triple A basis -- fell
to 4. 33 per cent at the end of the month, down 14 basis points from the
early December level and the lowest since late February 1963. Although the
last two issues sold in the second half of the month were being distributed
very slowly at these reduced reoffering yields, the approximately $50
million in syndicate balance at month-end should not be troublesome in view
of the continued scarcity of new offerings over the near term.
New municipal bond offerings had a par value of $0.8 billion this
past month, one-seventh less than in January 1964 but slightly more than
two years earlier. Underwriters were also aggressive in their bidding for
the new municipal offerings and yields dropped further. Yields on seasoned
Aaa-rated issues fell to 2.96 per cent, their lowest level since April 1963
and within 8 basis points of their six-year low set in November 1962.
Investor reception was generally very good but fell off somewhat late in
the month leaving about one-half of last week's volume undistributed by the
end of the month. Dealer^ advertised inventories of unsold securities
amounted to about $650 million near the end of the month, up $100 million
from their low early in the month but about $50 million below the year-end
level.
Common stock prices advanced steadily to a new record high in
increased trading volume during January. Prices, as measured by Standard and
Poor's composite index of 500 stocks, closed at 87.56 on January 29, up 3
per cent from the end of 1964 and 1-1/2 per cent above the previous high
reached last November 20. Trading volume averaged 5.5 million shares a day,
up 0. 8 million shares above the average for the previous month.
H. 14
Estimated security financing for February. Corporate security
offerings for new capital are estimated at $0.8 billion in February, the
same as in the previous month and one-fourth larger than the average for
February of the two previous years.
New State and local government bond sales this month will probably
total $0.7 billion, down one-eighth from January and somewhat smaller than
in the comparable month of the two previous years. Large issues currently
on the calendar for offering this month amount to $242 million.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.
Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.
IX Hint A, Po,l I ,
LONG-TERM BOND YIELDS, HIGH-GRADE
- coiroiAii
V ^ M.oJV7".
».$. tomnsmij
f\J
Exhibit A - Part II
Date
Corporate
Aaa \/
U . S. Govt.
long-term 2/
State and
local
government
Spread between
D. S. Govt, and
State and
Corporate
loca2*Aaa
Aaa
(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
1961 - High
Low
Jan. 1
Jan. 8
Jan. 15
Jan. 22
Jan. 29 j>/
14.61(1/29/60)
14.1*6(9/13)
U.21(3/17)
14.1*3(2/1*)
14.23(13/2*
14.37(12/27)
14.19(3/29)
4.45(12/11)
4.35(2/28)
4.43
4.44
4.43
4.43,
4.42 J
U.U2 ( W c o )
4.20(4/17)
4.11(11/20)
3.65 (9/24/39)
3.37 (7/6)
3.12 (3/23)
3.26 (1/4)
2.88 (11/8)
3.18 (u/21)
2.93 (3/28)
3.16(3/26)
2.99(12/31)
.59
.57
.3U
•U7
.30
.35
.21
.33
.19
1.05
.88
1.17
1.01
4.16
4.15
4.15
4.14
4.13 •
2.99
2.99
2.97
2.96
2.96
.27
.29
.28
.29
.29
1.17
1.17
1.18
1.18
1.17
il.07 (12/29)
3.70(3/12)
l*.12(2/23)
3.85(12/26)
U.l6 (12/27)
3.87 (Via)
Z
.92
.76
.U6
1.01*
.80
p/ preliminary.
1/ 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 oaliable in 10 years or i
3/ Thursday figures. Only general obligation bonds are included; average tens is 20 years.
Note.—Highs and lews are for individual series and may be on different dates for different
series, for spreads, high refers to widest, and lew to narrowest®
Jt_*MJ• 11
P»'« I i
I I O N O - T E R M BOND YIELDS, LOWER-ORADS'
Tel
Exhibit B - Part II
Corporate
Baa 1/
State and
local govt.
Baa y
Spread between
Aaa and Baa
State and
Corporate
local govt.
(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
- Low
196b - High
Low
5.3$(?AV60)
5.13(10/27)
5.00(4/21)
5.11(1/3)
U.92(iVa)
ii.93(3/4)
U.83(13/25)
4.87(6/26)
4.80(12/31)
U.U6(l/7/ao)
1^.16(3/23)
3.93(11/9)
l*.0l*(Vu)
3.52(3/17)
3.63(6/27)
3.52(5/23)
3.59(10/8)
3.49(11/19)
.71*
.63
.71
.1*8
.48
.37
Jan. 1
Jan. 8
Jan. 15
Jan. 22
Jan. 29 ]>/
4.80
4.80
4.80
4.79
4.80 y
3.51
3.49
3.44
3 42
3.41
.37
.36
.37
.36
.38
Votes For footnotes see Exhibit A.
.81*
.81
.66
1.08
.93
.57
.82
.56
.63
.1*1*
.52
.36
.52
.50
.47
.46
.45
n
IXHIBIT C. fen \
inORI- A N D INTERMEDIATE-TERM INTEREST RATES, G O V E R N M E N T ,
M TUI ISSIIS
ft.I. UStOSMl MT«
Exhibit C - Part II
Date
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
1961* - High
Low
Jan. 1
Jan. 8
Jan. 15
Jan. 22
Jan. 29 ]>/
Discount
rate
y
u.oo
4.00
3.50
U.59(l/B/60)
2.66(12/29)
2.17 (V%7)
2.97(7/13)
2.65(6/8)
3.55(11/13)
2.88(3/15)
3.86(12/25)
3.43(7/17)
4.00
4.00
4.00
4.00
4.00
3.83
3.80
3.77
3.81
3.85/
3.00
3.00
3.00
3.00
3.50
3.00
lielda
6-month
bills 2/
(per cent)
3-month
bills 2/
w
2.35(4/28)
3 - 5 year
issues 2/
5.00(12/24/99)
3.86(8/11)
3.15(5/12)
Spread between yields on 3month bills and yields on
6-mo. bills|3-5 yr. issues
•79
.llU
.12
.2h
3.13(7/20)
2.7M6/B)
3.88(2/2)
3.ia(i?/28)
2.93(3/8)
1.07 («/27)
3.1ili(l/is)
3.97(12/4)
3.52(7/3)
4; 23(3/27)
3.98(8/7)
.17
• OU
.21
.04
3.93
3.92
3.94
3.94
3.94 /
4.07
4.07
4.06
4.04
4.05
.10
.12
.17
.13
.09
3.68(12/6)
.02
1.81
1.51
.92
1.19
.52
.70
.k2
.71
.20
.24
.27
.29
.23
.20
Weekly rate shown 1 • that In effect at end of period at the federal Reserve Beak of Mew York*.
Market yield) weekly averages computed from daily olosing bid prices. Series of 3-5 year issues,
consists of selected notes and bonds*
Vote*—Highs and lows are for individual series and m y be en different dates for different series.
Tor spreads, high refers to widest, and lew to narrowest*
SHORT- A N D INTERMEDIATE- TERM INT
B A N K S A N D OTHER PRIVATE B O R R O W E R S
STOU ixcwmi
Ctu I QAM
0.1*§ tel.
1
iQIr.tHr
1-4 M.alfctj
I.I. DISCOUNT IATI
_ m FIIIIAl
I 1 I 1 I I
Exhibit D - Part II
Date
Stock exchange
call loan 1/
Prime
rate 1/
Finance company
paper 2/
Federal
funds $ /
Spread between
3-iao. bills and
finance co. paper
U.00 (5/13/60)
2.90 (13/17)
•U3 ( V 2 7 )
3.00 (12/28)
1.30 (3/26)
3.50 (12/27)
2.U5 (7/26)
4%00(12/31)
3.07(10/16)
1.02
.56
.11
•U5
.15
.39
.12
-.41
-. 08
4.00
4.00
4.00
3.40
4.00
(per cent)
1959-60
1961 - High
Lcrw
1962 - High
Low
1963 - High
Low
1961 - High
Low
5.50
U.5o
U.5o
U.50
U.5o
U.5o
U.5o
4.50
4 50
U.50
U.50
U.5o
4% 50
4". 50 •
5.13(1/25/60)
3.00(12/30)
2.50(8/5)
3.25(7/21)
2.88(6A)
3.88(IV27)
3.13(5/31)
4.. 06(12/31)
3.72(9/11)
Jan. 1
Jan. 8
Jan. 15
Jan. 22
Jan. 29 j>/
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.06
4.06
4.06
4. 06
4.03
«
•ta»5ng 0 ^ Jr ^
y
iJ
^
5.00
L . 50
U.50
a.50
t
eastern^, .took
w l u W t t
^ClS"bSS."rfST^tT
08
• liert - 4er ® loan# to baaineae borrower# of the hlgh##t oredit
frS!**o^,yi? r , !^!^' m ' a i * b * d "y l
s i s a l s
.23
.26
.29
.25
• 18
l M M
* W P ^ «
ttgspss&sszzsi
41»etlr pUo.4
s s
tor varying erteHfU.
™
x
-
o f
-
STOCK M A R K E T
1941-43
H V I H I I
d n s of dollori
—
-
^
/
-
1
\ y v / "
= 10
JO
a
so
STOCK MARKET CUBIT
*HA«6l IN $1111$
lu
Million# of ihar.i '
VOLUME
/
A
V w >
]
iii
2j
-^-T-T
—S?1 1i 1l 1l II
l 1 1 111 11 1 1 1 1 1 IJNV- 1
i i i M i MII 1 I II i 1 1 1 I 1 ll 1 II I II
1963
mi
mi
Exhibit E - Part II
Date
Stock price
index 1/
Common
Trading
stock
volume 3/
yields 2/ (millions
(per cent) of shares)
Stock market customs credit
Customers1
Bank
Total
debit balloans to
ances k/
"others" 5
(In millions of dollars)
1961-62 - High
Low
1963 - High
1961* - High
Low
Dec.
Jan.
Jan. 15
Jan. 22
Jan. 29 £/
7 2.0U(12/8/61J
$2.68(6/22/62)
7b.hk{12/27)
86.28(11/20)
75.50(1/3)
2.80
3.96
3.01
2.95
3.10
83.96
86.12
86.21
86.74
87.56
3.06
2.99
2.99
2.97
2.95
'
10.1
2.U
6.5
6.1
3.6
5
h
7
7
7
5,524(1)
5,079(12)
1,974(12/30)
1,720(1/22)
4.7
5.5
5.6
5.4
6.2
7
5,079
1,974
949
962
n.a.—Not available,
Preliminary*
"
y Standard and Poor's composite index of 500 ocmnon 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
Friday*s data only.
2j 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.
/ Averages of daily trading volume on the New York Stock Exchange.
/ 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.
>/ 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, Pari I
FEDERAL'NATIONAL MORTGAGE ASSOCIATION^
S E C O N D A R Y MARKET OPERATIONS
Mllllem of delle
I I II I I'll I I I
V X ,
rmmnrn \
"Exhibit F - Part II
Date
963 - Dec.
964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Estimated offerings to FNMA
Standby
Immediate
Total
purchase
commitment
14.1
15.6
15.1
20.1
28.5
28.9
9.3
8.4
20.5
15.1
34.9
26.0
41.3
Purchases
by
FNMA
(In millions of dollars)
14.0
.1
10.9
15.5
.1
11.1
15.0
.1
13.0
19.9
.3
16.8
28.5
.1
26.4
28.9
25.8
—
9.2
- 3.8
8.0
.3
5.5
20.5
15.2
14.9
.1
7.2
34.8
.1
24.0
25.9
.1
16.0
41.1
.1
32.5
Sales
by
FNMA
15.8
8.8
2.3
3.8
12.7
10.9
9.5
12.6
4.4
1.6
——
5.7
5.9
•—Less than $50,000.
. V Data represent unpaid principal balances of the mortgages involved, exclusive of
premiums, discounts, or other charges. Offerings are amounts of applications received
during the period from sellers proposing that FNMA execute purchasing contracts, in
immediate purchase contract covers existing mortgages which the seller must deliver to
FNMA within 45 days. A standby ccmnitoent contract relates to proposed mortgages on
housing not yet under construction nhioh the seller mist usually deliver within one
year. Purchases Include thoee under both issnediate purchases and standby ocomitmont
contracts. Data exclude FNMA activity under Special Assistance and Management and
Liquidating Programs.
EXHIBIT O, F e n I
' YIELDS ON NEW AND SIASON1
Adjuttad le A e e tali
• IW ISSUES
Exhibit 6 - Part II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number Aa r t of issues Average
yield
of
included (mil.
(per cent)
issues of dollars)
Monthly averages;
1964 - Jan..
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Weekly averages
1964
High
3
3
6
1
10
8
3
4
7
3
150.0
125.0
166.0
130.0
278.0
230.0
60.0
75.0
239.0
70.0
140.0
Law
4.50
4.38
4.43
4.48
4.46
4.43
4.37
4.39
4.49
4.46
Number Am't of Issues Average
yield
Included (mil.
of
(per cent)
issues of dollars)
Dec.
4
11
18
25
Jan. 1
8
15
22
29
140.0
4.47
40.0
4.53*
14.0
40.0
4.39
4.33
4.47
4.53(5/8)
Motet Average: of offering yield# on all newissuesof publioly offered 00rporate bond* rated 1 M . Aa and
A by Moody's Investors Serrloe (except serial and convertible beaes. offerings of natuxml gas pipeline,
sad foreign companies, and bonds guaranteed by the Federal Government) weighted bytf.seof offering*
Before averaging, new offerings are adjusted to a composite Aaa basis ty deducting from the actual
reoffering yield the excess of the weekly siverage yield for seasoned tends of the appropriate industryquality group over the composite average for seasoned iae^rated tends (Moody's)# Averages considered
unrepresentative because at special characteristics of the offerings included are denoted by an asterisk^
Exhibit H
H. 14
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Cap ital
1965
January
February
March
Corporate
1964
e/800
e/800
1963
930
685
754
613
594
1,144
2,178
1,069
1,378
930
904
1,013
780
661
1,035
676
637
795
October
November
December
£/
951
£/
649
e/ 1,550
1,013
819
1,415
1st
2nd
3rd
4th
2,369
4,625
2,476
e/ 3,150
2,3^1
2,847
2,109
3,246
April
May
June
.
July
August
September
i
quarter
quarter
quarter
quarter
1st half
Three quarters
Year
6,994
9,470
e/12, 620
5,198
7,307
10,553
1
State and Local 2/
1963
1965
1^64
e/800
e/700
£/
£/
k
1
947
77 6
810
732
746
976
,242
667
903
869
866
930
I
I
906
780
892
680
708
449
850
550
950
1 ,051
729
416
2,533
2,811
2,578
2,350
2 ,454
2 ,665
1 ,837
2,,197
£/ 5,3 44
£/ 7,922
e/10,2 72
5,,118
6,,955
9, 151
SJ
£/
£/
e/
's
;
\
"e
Excluding finance companies 3/
1st
2nd
3rd
4th
quarter
quarter
quarter
quarter
Year
e/
2/
1/
2/
31
1,996
4,170
2,337
e/ 2,900
2,284
2,529
1,768
2,854
e/11,403
9,434
Estimated by Federal Reserve.
Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance companies.
1
v:
1%
Exhibit I
H.14
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 Memo:
Bonds
and
Foreign
Publicly Privately pfd. issues
Offered Offered
stock included
1,114
724
508
70
1,386
1,289
642
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
287
424
287
367
128
434
109
47
947
591
806
968
326
794
285
530
236
221
150
118
842
1,241
868
1,629
1964 - I .
II
III
IV e/
2,499
4,851
2,728
3,344
978
1,321
792
516
1,221
1,640
1,442
2,475
300
1 ,890
494
354
29
105
85
n.a.
418
723
547
1,060
438
856
642
510
273
1,663
59
113
1,240
1,383
1,229
1,467
1963 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
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
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
985
710
805
2,234
1,155
1,461
July
869
Aug.
728
Sept. 1,130
Oct.
1,030
Nov. £/ 724
Dec. e/ 1,590
338
279
361
383
470
468
234
183
375
181
30
305
526
342
353
480
537
623
411
433
598
633
642
1,200
121
88
91
1 ,372
148
370
225
112
156
217
52
85
5
16
8
34
36
35
21
21
44
101 •
21
149
123
146
186
206
332
149
164
234
218
192
650
109
155
174
151
441
264
207
138
296
306
34
170
157
83
34
1,377
27
258
23
16
19
82
11
20
515
324
400
463
395
525
401
342
486
345
412
710
Quarter
or
Month
1964 - Jan.
Feb.
Mar.
Apr.
May
Total
a.B.
Net proceeds fo:r
new capital 1/ 1/
Mfg.
Public
Utility
649
996
566
747
429
984
376
552
456
228
274
317
694
848
685
945
Communications
Other
issuers
!>/ 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.
H.14
OLiicr Security Offerings
(In millions of dollars)
1964
January
February
March
April
May
June
July
August
September
October
November
December
E/
£/
Gross long-term 1/
Federal agency 3/
Foreign government 2/
1963
1963
1962
1964
4
82
69
30
75
26
20
13
7
180
57
232
133
76
57
114
11
63
83
e/
E/ 509
E/ -e/ --
174
200
2
142
10
35
10
86
50
25
8
31
151
88
101
771
737
9(1,204
1,167
148
1962
246
156
--
186
461
—
275
260
160
459
150
175
--
---
"
Year
e/
563
1,1188
New short-term 4/
State and local government 5/
Federal agency 3/
January
Fubru ary
March
April
May
June
July
August
September
October
November
December
Year
&/
103
236
-407
442
81
-80
-9
127
176
7
-15
-a. 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
-333
167
1
525
113
E/-200
692
378
D/ 401
-106
-189
-482
292
195
319
414
327
258
123
-102
551
247
-156
226
-364
,82
,284
261
227
-157
379
55
-80
1.600
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/lncludea securities offered in the U.S. by foreign governments and their political subdivisions 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. & Federal Reserve. ^/Theee 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. ^./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
Reserve.
•1
i
1
$
?
\ (
H. 14
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)
Cornon ite
Bonds
Convertible
(other than
bonds
convertibles)
Total
1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1965 - Jan.
60
35
225
200
296
235
415
390
178
125
269
108
307
263
335
1,557
452
650
291
142
376
187
51
Stocks
22
28
38
1,271
37
260
113
17
25
--
--
--
30
200
115
230
130
.
- -
Other
577
358
282
698
274
284
544
459
558
419
226
541
419.
81
79
--
--
State .
and
local
governments
15
2/
50
20
15
275
260
104
15
502
15
--
235
Large Individual Issues Offered During January
Issuer
Type 2/
Amount
(millions
of
dollars)
Maturity
Coupon
rate or
net interest cost
Offering
Bating
Corporate
Times Mirror Co.
United Calif. Bank
Texas Lt & Pwr. Co.
Conn. Yankee Atomic PwrCo
State and Local Govt.
Los Angeles, Calif.
State of New Jersey
Milwaukee, Wise.
Montgomery Co., Md.
Georgia Univ. System Bldg
Auth.
Oklahoma City, Okla.
El Paso, Texas
S.F. deb.
Cap. notes
Pfd. stk.
1st mtg. bds.
40.0
35.0
15.0
40.0
1990
1990
4-1/2
4-1/2
4.57
4.52
1993
4-1/2
4.44
G.0.
G.O.
G.0.
G.O.
15.0
45.0
17.2
10.0
1966-85
1968-88
1966-85
1966-90
2.99
2.90
2.89
3.06
2.20-3.05
2.35-2.95
2.10-2.95,/
2.20-3.20^
Aa
Aaa
Aaa
A
Rev. -Rent.
G.O.
G.O. '
25.0
17.5
10.0
1966-90
1967-90
1965-90
3.14
3.03
3.13
2.20-3.20
2.35-3.15f/
2.20-3.20^
Aa
A
A
H. 14
K-2
Large Individual Issues Offered During January (Cont'd)
Issuer
Amount
Type 3/ (millions
of
dollars)
Ma turity
Coupon
rate or Offering
net inter yield
est cost
Rating
«
State and Local Govt. (Cont'd)
New York City, New York
Columbus City Sch. Dist., Ohio
Met. St. Lewis Sewer Dist., Mo.
Port of New York Auth.
Penna State Publ. Sch. Auth.
Ala. State Highway Auth.
Dallas, Texas
Texas Wtr. Div. Bd.
Dayton City S.D,, Ohio
G.O.
Rev. -Ut.
Rev.-Ut.
Rev,-Q.-•Ut.
Rev.-Rent.
Rev,-Q.-•Ut.
Rev. -Ut.
Rev,-Ut.
G.O,
Duval Co. Hosp. Auth., Fla.
Rev.-Rent
124.3
12.7
20.0
25.0
13.2
15.0
15.0
15.0
15.3
13.0
1966-95
1966-87
1966-85
1996
1967-2004
1970-85
1965-85
1967-96
1966-85
3.12
2.94
2.95
3.39
3.30
3.30
2.95
3.03
2.91
2.25-3.45
2.20-3.05
2.15-3.00
3.35
2.30-3.40^
2. 75-3.30 7 /
2.10-3.GO 1 '
2.25-3.10
2.15-3.00
1966-95
3.37
2.20-3.38
1990
1980
1985
4-1/2
6-1/2
5-3/4
A
Aa
Aa
A
Bonds
Bonds
Bonds
200,0
15.0
20.0
4.48
6. 66
5.97
,
A
Aa
Aai
Aa
A
Other
Int. Bank for Recon. & Dev.
Republic of the Philippines
Republic of Portugal
,
,
Aa
•
'
1
r
- 1
4
^--Rights offering. n.a.--Not available,
V Includes corporate and other security offerings of $15 million and over; State & local
government security offerings of $10 million and over.
tI
r
l_l Includes foreign government and International Bank for Reconstruction and Development
issues and non-guaranteed issues by Federal agencies.
5
3/ In the case of State & local govt, securities, G.O. denotes general obligations; R e v . - U U
revenue obligation secured only by income from public utilities; Rev.-Q.-Ut., revenue
<JJ
bonds secured only by revenue from quasi-utilities; Rev.-S.T., revenue bonds secured by i
revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by least
$
payments,
4/ 1/10 per cent bonds maturing 1989-90 not publicly reoffered.
v
5/ Bonds maturing 1990 not publicly reof fered.
6/ 3/4 per cent bonds maturing 2004 not publicly reoffered.
^
7/ Bonds maturing 1985 not publicly reoffered.
!
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)
1964 - Jan. 31*
Feb. 28
Mar. 31
Apr. 30
May 28
June 30
July 31
Aug. 31
Sept.30
Oct. 30
Nov. 30
Dec. 31
1965 - Jan. 29
During month following
date shown
State and
Corporate
Other
local govt.
155
316
-224
454
1,587
669
25
651
345
15
600
341
-292
539
-92
120
402
511
15
-186
500
-254
90
360
25
105
306
215
169
242
Corporate
1,771
1,649
1,837
844
668
307
167
442
186
130
105
253
Subsequent to
date shown
State and
local govt.
667
646
953
575
598
716
588
680
626
549
563
435
382
Other y
---
25
15^
----
15
---
25
215
Forthcoming Large Offerings as of January 29
Issuer
Type
Amount
(millions
of
dollars)
Approximate date of
offering
Corporate
: Texas Elec. Service Co.
Occidental Petroleum Corp.
Dan River Mills
Southern Calif. Ed. Co.
New England Elec. System
*Gen. Tel. Co. of Calif.
W. R. Grace Co.
1st mtg. bds.
Com stk.
Deb.
1st & ref. mtg. bds.
Com. stk.
1st mtg. bds.
Conv. sub. deb.
16.0
22.2
20.0
60.0
15.6
35.0
84.0
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Mar.
State & Local Government
Los Angeles Fid. Control Dist.,
Calif.
*Commonwealth of Puerto Rico
Rev. Q. Ut.
G.O.
15.0
54.0
Feb. 2
Feb. 3
3
8 (rts. ex.)
9
10
17 (rts. ex.)
*
26
(rts. ex. )
li
L-2
Forthcoming Large Offerings as of January 29
Issuer
Type
Amouet""
(millions
of
dollars)
Approximate date of
offering
State & Local Government (Cont'd)
G.O.
Rev. Q.Ut.
G.O.
26.8
31.0
16.0
Feb. 3
Feb. 3
Feb. 9
Wise. State Agencies Bldg,. Corp.
Rev. -Rent.
Los Angeles Dept. of Wtr. & Pwr., tial. Rev. -Ut.
*Lake Charles, Louisiana
G.O.
*St. Louis, Missouri
G.O.
Pittsburgh, Pa.
G.O.
Dade County, Fla.
G.O.
Fort Worth, Texas
G.O.
Florida Dev. Comm.
Rev. -S.T.
35.3
24.0
12.7
10.4
35.0
46.0
14.1
33.8
Feb. 17
Feb. 24
Feb. 24
Feb. 26
Indefinite
Indefinite
Indefinite
Indefinite
11.0
Indefinite
Palm Beach Co., Florida
Va. State Highway Auth.
Phila. Sch. Dist., Pa.
Los Angeles Harbor Dist., Calif.
Other
Rev. -Q. Ut.
^--Included in Table for first time.
r
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 issued for Federal Agencies.
Note.--Deletions for reasons other;than sale of issue: None.
t
H. 14
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United Statfs
Part I:
Sale
Date
Amount
• (millions
of
dollars)
Public Offerings
Issuer and Description of Issue
A.
Sold Nov. 1 through January 29
11/25
15.0
Republic of Finland—6% bonds maturing l979--reoffered
to yield 6.26%.
12/15
25.0
•European Investment Bsnk--5-l/2% bonds maturing in 1984,
reoffered to yield 4.85% to investors In the U. S. and
5.54% to other investors.
12/11
20.1
1/14
200.0
Home Oil Co. Ltd.--5-1/8% convertible subordinate
debenture maturing 1984, offered to stockholders of
record November 19 to yield 5.13%.
International 'Bank for Reconstruction snd, Development--.
4-1/2% bonds, maturing 1990, reoffered to yield 4.48%.
1/19
15.0
Republic of the Philippines--6-1/2% bonds, maturing
1980, reoffered to yield 6.66%.
1/25
20.0
Republic of Portugal--5-3/4 bonds, maturing 1985,
reoffered to yield 5.97%.
B.
Prospective Offerings
None.
* ^Difference in reofferlng yields on bonds sold to U.S. citizens snd those sold to
foreign citizens reflects an upward adjustment of 8.63 per cent In the price psld by
U. S. citizens. This premium was collected by the underwriters in accordsnee with thq
provisions of the new Interest Equalization Tax, This tax is collected--undoy s scale
of rates which rises with maturity--when U. S. lenders buy new security offerings., firosi
borrowers in certain designs ted "developed" countries.
•
V
M-2
Part II:
Da t u
reported
Amount
(millions
of
dollars)
11/4
60.0
11/5
7.9
11/11
v
Private Placement*-Reported Nov. I through January 29
Issuer and Description of Issue
City of Montreal--5% sinking-fund debenture, maturing
2004--no information available on takedown.
Montreal Catholic School Comm.--5% sinking fund
debenture, maturing 1989--no information available
on takedown.
25.0
11/18
29.1
12/21
25.0
tv.n
25.0
1/13
8.0
L/18
30.0
i Toronto'-Dominion Tower, Ltd.--4.85% first mortgage
sinking fund bonds, maturing 1989--no information
1 available on takedown.
Banco Nacional Hipotecario Urbano y de Obras Publicas,
S.A.--promissary notes, maturing 1965-69--no information available on takedown.
^
| Alberta Municipal Financing Corp.--4-5/8% debentures,
'
maturing 1989, priced to yield 4.65%—no information \
available on takedown.
1
,
&*
I Beneficial Finance Co. of Canada--senior notes maturing^
1984--no information available on takedown.
%
i Province of Nova Scotia--4-1/2% sinking fund debentures ^
maturing 1989--no information available on takedown, F
. '
.
^
For retrospective data on aggregate foreign corporate and government security
offerings In the United Staties 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 thle
exhibit are included when reported, frequently with little or no information concerning timing of takedowns* Full or partial takedowns may take place both prior and
FRASER
subsequent to the data a placement is reported. ^--Included in table for first time*
Digitized for
»f
*
| Prince George Pulp & Paper Ltd.--1st mtg. sinking fund
bbnds, maturing 1985--no information available on
takedown.
1
Note;
J
|
@FedFRASER