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Not for Publication^ . ™

C

°

m 0 L 1

®

SIX MONTHS

H. 14

February 15, 1965.
X MARKET, DEVELOPMENTS
THE UNITED STATES

eJ^vo

, Cordorate^atiflmunicipal bond markets. This weel^jf volume
of publicW^pffSred corporate securities will be sharply smaller
than last week's substantial total, but the calendar of new offerings
scheduled over the next several months is becoming seasonally large.
In contrast, the weekly supply of municipal bonds--including a $100
million St^te of California offering--will be about two-thirds greater
than last week and will also be substantial over the near term. Meanwhile, dealers' advertised inventories of unsold securities have
swelled to $738 million, only $32 million below the mid-May 1963
record.
Long-Term Public Security Offerings 1/

Corporate
New Capital I Refunding

State & Local Govt.
New Capital | Refunding

Sold:
52 week avg.

112

Feb. 5
Feb. 12

44 r/
125

1

184

11

156 r/
132 r/

24
24 r/

Scheduled:
Feb. 19

40

255

--

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.
Less aggressive bidding for last week's sole Aa-rated
competitive issue resulted in a rise of four basis points in the
average yield in the new corporate bond series. Because of investor
reaction to the uncertainties presented by the war in Vietnam and
the balance of payment problem, however, only about two-fifths of
this issue was sold and further distribution of the two issues still
in syndicate was negligible. As a result, syndicate balances rose
to over $50 million.
In the municipal market, about one-half of last week's
new supply was distributed, and despite the pressure of large inventories
and the size of the calendar, yields on seasoned issues were stable.




H. 14

-2-

Yields in Securities Markets
Change from
preceding week

Level latest week
(per cent)
High-Grade
Notes and Bonds
Corporate
New
Seasoned

4.42
4.41

+ 4

U.S. Govt.
Long-term
3-5 year

4.16
4.08

+ 1
+ 2

State and local govt.

2.94

Money Market
Federal Funds
Treasury bills
3-month
6-month
Finance Company Paper

- 3.88

- 12

3.90
3.99
4.00

+ 1
+ 3

Mortgage yields and conventional mortgage terms. In January,
yields on FHA-insured 30-year 5-1/4 per cent mortgages sold in the
secondary market averaged 5.45 per cent once again. The average has
now prevailed with almost no change for nearly two years.
Contract interest rates for conventional first mortgages
on homes in January also held at earlier relatively low levels,
according to reports from the Federal Housing Administration. The
average for new home loans was 5.80 per cent; for existing home
loans, 5.85 per cent.
In December, loan amounts for conventional home loans
remained at or near previous highs and significantly above a year
earlier, according to the Home Loan Bank Board. The average for
loans on new homes was $17,800 for loans on existing homes, $13,700.
Loan-to-price ratios were little changed from a year earlier, however,
at 73.9 per cent and 71.7 per cent, respectively. Maturity terms
exceeded 25 years for new home loans and 20 years from existing home
loans--both moderately longer than a year earlier.
Stock prices. In response to the rising tempo of the war
in Vietnam, common stock prices eased last week in active trading.
According to the Standard and Poor's composite index which closed at
86.17 on February 12, prices had declined approximately one and onethird per cent during the week. Trading volume average 5.9 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.

3
E X HI BIT A. foil 1
LONG-TERM B O N D YIELDS, H I G H - G R A D E

l__

f\J

Exhibit A - Part II

Date

Corporate
Aaa y

U . S. Govt,
long-term 2/

State and
local
government
Aaa 3/

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
1964 - High
Low
Jan.
Jan.
Jan.
Feb.
ylFeb.

f

15
22
29
5
12 £ /

U. 61(1/29/60)
a.16(9/15)
4.21(3/17)
U.U3(2/16)
14.23(12/2$
W7(l2/27)
4.19(3/29)
4.45(12/11)
4.35(2/28)

U.U2 (1/8/60)
4.07 (12/29)
3.70 (5/12)
4.12(2/23)
3,85(12/28)
4,16(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 (3/4)
2.88 (11/8)
3.18 (11/21)
2.93 (3/28)
3.16(3/26)
2.99(12/31)

.59
.57
•3U
.U7
.30
.35
.21
.33
.19

4.43
4.43
4.42
4.41 y
4.4i y

4.15
4.14
4.13
4.15
4.16 ,

2.97*
2.96
2.96
2.94
2.94 ^

.28
.29
.29
.26
.25

Preliminary,

*

.92
.76
.46
1.04
.80
1.05
.88
1.17
1.01
1.18
1.18
1.17
1.21
1.22

Weekly average of daily figures. Average tern of bonds included is 22-24 years.
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_a&rrc#est*




H
EXHIBIT B
LONG-TERM

BOND

YIELDS,

Porl l

LOWER-GRADE

Exhibit B - Part II

Date

Corporate
Baa 1/

State and
local govt.
Baa 3/

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
Jan.
Jan.
Jan.
Feb.
/Feb.

15
22
29
5
12 2/

5.3$(?/i3/60)
5.13(10/27)
5.00(4/21)
5.110/5)
U. 92(12/21)
U.93(V4)
14.83(11/35)
4.87(6/26)
4.80(12/31)

U.li6(l/7/60)
U .16(3/23)
3.93(u/9)
U»oU(i/ii)
3.52 (5A7)
3.63(6/27)
3.52(5/23)
3.59(10/8)
3.49(11/19)

.8U
.81
.66
•7U
.63
.71
.1*8
.48
.37

1.08
.93
.57
.82
.56
.63
.16
.52
.36

4.80
4.79
4.80
4.79
4. 79 —

3.44
3.42
3.41
3.40
3.40

.37
.36
.38
.38
.38

.47
. 46
.45
. 46
.46

Botes Tor footnotes see Exhibit Ju




I I I I I I I I I I I I I I I I I I I I I 1 I 111 I I I I I I I 1 I I 1 I I I I I I I I
J9t0_
mi
19*2
1161
1**4
Exhibit C - Part II

Date

1959-60 - High
1961 - High
Low
1962 - High
Lbw
1963 - High
Low
196U - High
Low
Jan.^1
Jan.
Jan.
Feb.
y peb.

15
22
29
5
12 £/

Discount
rate
y

k.oo

Yields
3-month
bills 2/

6-month
. bills 2/
(per cent)

4.00
3.50

5.07(3/8/60)
2.90(V29)
2.35(4/28)
3.13(7/20)
2.65(6/8) 2.7U(6/8)
3.55(11/15) 3.68(13/6)
2.93(3/8)
2.88(3/15)
3.86(12/25) 3.97(12/4)
3.43(7/17) 3.52(7/3)

4.00
4.00
4.00
4.00
4.00 /

3.77
3.81
3.85
3.89
3.90

3.00

3.00
3.00
3.00

3.50

3.00

1*.59(1/8/60)
~
2.17 Ivz7)
2.97(7/13)

3:94
3.94
3.94
3.96
3.99 /

3-5 year
issues 2/

5.00(12/24/59)

3.86(8/11)
3.15(3/12)

Spread between yields on 3month bills and yields on
6-mo. bills13-5 yr. issues

:S
.2
1

3.88(2/2)

.21*

3.bl (13/28)
1.07 (12/27)
3.UU(i/3fl)
4.23(3/27)
3.98(8/7)

.17
.Oli
.21
.04

4.06
4.04
4.05
4.06
4.08

.17
.13
.09
.07
.09

.2
0

1.61
1.51
.92
1.19
.52
.70

.U2

.71
.20
.29

.17
.18

consists of selected notes and bonds#
Note.-flighs and lows are for Individual series and m y be en different dates for different series.
Tor spreads, high refers to widest, and lor to narrowest.




•

X

EXHIBIT O, Port 1
SHORTBANKS

AND
AND

INTERMEDIATEOTHER

PRIVATE

TERM INTEREST

RATES,

BORROWERS

Exhibit D - Part II

Date

Stock exchange
call loan l/

Finance companypaper 2/

Prime
rate 1/

Federal
funds 3/

Spread between
3-mo. bills and
finance co. paper

[per cent)
5.5e
U.50
li.50

1959-60
1961 - high
Low
1962 - High
Low
1963 - High
Low
196b - High
Low

Wo

Jan.
Jan.
Jan.
Feb.
Feb.

4.50
4.50
4.50
4.50
4.50

15
22
29
5
12 £/

a.5o

U.50
a.so
4.50
4.50

5.00
L. 50
a.50
a.50
a. 5 0
a. 50

a.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)

a.00 (5/13/60)
2.90(11/17)
.U3 ( V 2 7 )
3.00 (12/28)
1.30 (1/26)
3.50 (12/27)
2 . a 5 (7/26)

4,50
4.50

4-. 06 (12/31)
3.72(9/11)

4-. 00(12/31)
3.07(10/16)

• 41
- 08

4.06
4.06
4.03
4.00
4.00

4.00
3.40
4.00
4.00
3.88

.29
.25
.18
.11
.10

4.50
4.50
4.50
4.50
4.50

.

1.02
.56
.11
.a5
.19
.39
.12

1/ Weekly rate ahcnm is that in effect at end of period. Stock Exchange call loan rate is going rate
on call lpans secured by customers* stock exchange collateral at New York City banks. Prime rate
is that charged by large banks an short-term loans to business borrowers of the highest credit
standing#
2j Are rage 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
Digitized saleFRASER as reported to the Federal Reserve Bank of Mew York.
for transactions
Note*—fiighs and lows are for individual series and may be on different dates for different series.
http://fraser.stlouisfed.org/ refers to widest, and low to narrowest*
For spreads, high

Federal Reserve Bank of St. Louis

7
-/iGCK market
1941-43 ov.rog.=IO

Exhibit E - Part II

Date

Stock price
index 1/

Trading
Common
volume 3/
stock
yields 2/ (millions
(per cent) of shares)

r
Stock mai"ket customs] credit
Customers'
Bank
debit balloans to
"others" 5/
ances k/

Total

(In millions of dollars)
1961-62 - High
Low
1963 - High
1961* - High
Low

72.0^(12/8/61)
52.68(6/22/62)
71.11(12/2%)
86.28(11/20)
75.50(1/3)

2.80
3.96
3.01
2.95
3.10

10.1

Dec.
Jan.
Jan.
Feb.
Feb.

83.96
86.12
87.56
87.29
86.17

3.05
2.99
2.95
2.96
3.02

4.7
5.5
6.2
5.8
5.9

29
5
12 2/

2.k

6.5
6.1
3.6

5, 602(12/61) U, 259(12/61) 1, Ul8 (5/9/62)
ii,U2U(l/6l) 3,25311/61) 1,161(3/8/61)

7,298(11/63)5,586(11/63) 1,738(12/25)
7,314(4) x 5,524(1)
1,974(12/30)
7,053(12) "5,079(12)
1,720(1/22)
7,053

1,974
1,954
1,954
1,947

1941-43*
r d ^ d ' p o o r * , ^ * ^ M i t ^ 2 e x of 500 ccnoon 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
prices
3/ Averages of daily trading volume on the New York Stock Exchange.
V
End of month figures for romber firms of the New York Stock Exchange which oariy margin accounts;
excludes balances secured by U. S. Government obligations.

^ others* STor further detail see Bulletin*
FE EnEEE



M O R T G A G E A N D B O N D YIELDS

Lli I I I I IJ>|>
n*r
Exhibit F

Conventional
mort*
gages
25-vear 3 0 - v e a r
3/
FHA

1956 1957 1958 1959-601961-64-

1964

1965

21

mortgages

Date

Low
High
Low
High
High
Low

- October
November
Decenter
- January

4.68
5..63
5.35
6.24
5.72
5.43
5.44
5.44
5.43
5.43

Part II

Spread beAaa C o r p o r a t e
tween y i e l d s
on conv. &
Seasoned—^
25-year FHA
New*/
mortgages

Spread b e t w e e n
yields on new corp o r a t e b o n d s and
25-year
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
445
4.22

• 76
1.58
.88
1.69
1.50
.94

5.45
5.45
5.45
5.45

5.80
5.80
5.80
5.80

.36
.36
.37
.37

4.46

4.42
4.43
4.44
4.43

.98

.04

4.47
4.42

.96
1.01

.03
.01

--

l.oi
.05
.73
.39
-.16

1 7 N e i t h e r mortgage nor bond yields take into account servioing costs whioh are nmoh higher for mortgages
than bonds. Generally, bands pay Interest semi-annually; mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest invest rant, would be slightly higher than given in the
table.
2/ Based on FHA-field-offioe opinions about average bid prices in the private secondary market for nawhome mortgages for inmediate delivery* Separate data available for 25-year and—begin! ng July 1 9 6 1 —
30-year mortgages with minimum downpayments, weighted by probable volume of txansactions , Yields computed by FRA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year
mortgages. Over the period for liiioh 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
3/

4/

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 ^ 1 1 as existing-home mortgages.
Dashed line indicates this change in the series,
See note for Exhibit G.
Moody's Investor Service, Monthly averages of daily data* See Exhibit A,

Digitized5/for FRASER


YIELDS O N

NEW

AND SEASONED CORPORATE BONDS

m w ISSUES

Kxhibit G - Part IX
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number Am r t of issues Average
of
included (mil.
yield
(per cent)
issues of dollars)
Monthly averages:
1964 - Mar.
Apr.
May
June
July
Aug.,
Sept.
Oct.
Nov.
Dec.
1965 - Jan.

6
1
10
8
3
4
7
3
3
3

i

166.0
130.0
278.0
230.0
60.0
75.0
239.0
. 70.0

4.43
4.48
4.46
4.43'
4.37
4.39
4.49
4.46

140.0
94.0

4.47
4.42

Number Ain't of issues Average
included (mil.
of
yield
issues of dollars)
(per centl
Dec.

4
11
18
J
25
Jan. 1
8
15
22
29
Feb.
5
12

3

140.0

4.47

__
__
--

1

40.0

• 1
1
1
1

14.0
40.0
16.0
60.0

4.53*
4.39
4.33
4.38
4.42

Weekly averages
1964 - High
4.53(5/8)
.30(2tin .
. Lo%. ,
-J
lots I Averages oi oxxering y . a o an at* new mouoe o* puoiioxy oizeroa w i p o n w oanao
ae.e
j i bob
u
A by Moody'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 aLse of offering.
Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual
reeffering yield the excess of the weekly average yield for seasoned tends of the appropriate industryquality group over the composite average for seasoned Aaa-rated bonis (Moody's). Averages considered
unrepresentative because tf special characteristics of the offerings included are denoted by an asterisk^




L

•

£

Exhibit H

I) t

H.14

Long-term Corporate and State and Local Government
, Security Offerings and Placements
(In millions of dollars)

New Cap ital
Corporate
1964

State and Local 2/
1963
1^64

1963

1965

930
685
754

613
594
1,144

S/800
e/700

April
May
June

2,178
1,069
1,378

930
904
1,013

July
Augast
September

780
661
1,035

676
637
795

October
November
December

£/
951
e/
649
e/ 1,414

1,013
819
1,415

f

1st
2nd
3rd
4th

2,369
4,625
2,476
£/ 3,014

2,361
2,847
2,109
3,246

£/
£/
£/
e/

6,994
9,470
2/12,484

5,198
7,307
10,553

1965
January
February
March

e/800
e/ 800

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

2

947
776
810

732
746
976

,242
667
903

869
866
930

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

f

1

i

j

%

Excluding finance companies 3/
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

Year
e/
£/
If
2/
3/

1,996
» 4,170
2,337
e/ 2,764

2,284
2,529
1,768
2,854

e/11,267

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.




I

H.14
Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)

Month
1962 - II
III
IV

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
1,386
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
3,303

978
1,321
792
516

1,221
1,640
1,442
2,388

300
1,890
494
398

29
105
85
205

418
723
547
1 ,030

438
856
642
500

273
1,663
59
113

1,240
1,383
1,229
1,371

431
318
501
481
549
751

100
100
87
125
159
83

46
21
42
10
10
27

297
272
237
240
214
515

107
100
78
201
131
198

86
25
39
41
13
64

187
187
441
531
461
637

526
342
353
480
537
623
411
433
598
633
642
1,113

121
88
91
1,372
148
370
225
112
156
217
52
129

5
16
8
34
36
35
21
21
44
101
21
83

149
123
146
186
206
332
149
164
234
218
192
620

109
155
74
151
441
264
207
138
296
306
34
160

157
83
34
1,377
27
258
23
16
19
82
11
20

515
324
400
463
395
525
401
342
486
345

Quarter
or
Total

Net proceeds for
new capital 1/ 2/
Mfg.

Public
Utility

Communications

Other
issuers

996
566
747

984
376
552

228
274
317

848
685
945

1965 - I

1963 - July
Aug.
Sept.
Oct.
Nov.
Dec.

279
336
283 •
511
183
626

1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug;
Sept.
Oct., 2/
Nov, £/
Dec. e/
!

810
756
871
1,116
891
1,459
985
710
805
2,234
1,155
1,461
869
728
1,130
1,030
724
1,548

338
279
361
383
470
468
234
183
375
181
30
305

412
614

100
1965 - Jan. e/
165
550
250
815
10
110
430
Feb.
Mar.
2/ Preliminary, e/ Estimated by Federal Reserve.
If 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.




\V
H. 14
Exhibit J
Other Security Offerings
(In millions of dollars)

1965
January
February
March
April
May

Gross long-term 1/
Foreign government 2/
Federal agencv 3/
1964
1963
1965
1964
1963

e/235

July
August
September
October
November
December

4
82
69
30
75
26
20
13
7
£/ 180
R/ 57
e/ --

232
133
76
57
114
- 11
* 63
83

e/ —
148
——
--

-275
260
160
--

--

--

£/ . 509
--

—

£/

2

186
459
-, -~

174
200

e/

"

Year

e/ 563

771

e/1,204

New shor
' State and local government 5/
January
February
March
April
May
June
July
August
September
October
November
December

n.a.

103
236
-407
442
81

75
272
-367
589
-30

-80

-10

-9
127
176
7
-15
g/-208

62
208
-173
259
146
-339

L ,167

4/
Federal agencv 3/
e/-249

-78
-336
23
97
183
239
-333
167
1
525
113
-3

-106
-189
-482
292
195
319
414
327
258
123
-102
551

P / 453
692
Year
598
£/ Preliminary. e/Estiraated by Federal Reserve, n.a.-Not available. JL/These data differ
from those in Exhibit H in that refunding issues, as well as new capital issues, are ineluded. Long-term securities are defined as those maturing in more than one year. 27lneludes 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. 4/These data differ from those in
Exhibit H and above in that they represent nqw offerings less retirements, whether from the
proceeds or refunding issues or from other fun^ls. Data include only issues with original
maturing of one year or less. 5,/frincipally t^x and bond anticipation notes, warrants or
certificates and Public Housing Authority nofes. In some instances PHA notes included may
have a somewhat longer maturity than 1 year.' Source: Bond Buyer & Federal Reserve.




.
•
|
j
i
,
I
\
|
I
f
'
•

H. 14
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. 8. Treasury)
Proceeds of Large Issues Offered
(In millions of dollars)

Total

1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct. *
Nov.
Dec.
1965 - Jan.

CorDoriite
Bonds
Convertible
(other than
bonds
convertibles)

307
263
335
1,557
452
650
291
142
376
187

--

230
130

200
115

577
358
282
698
274
284
544
459
558
419
226
541
419

22
28
38
1,271
37
260
113

60
35

225
200
296
235
415
390
178
125
269
108

--

Stocks

State
and
local
governments

51
--

17
25

--

81
79

--

30

--

15

Other

2/

--

50
20
15
275
260
104
15
502
15
235

t
Large Individual Issues Offered February 1 through 12
Issuer

1

Type 2/

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
net interest cost

Offering
vleld

Rating

Corporate
Texas Elec. Serv. Co.
"^Occidental Pet. Corp.
Dan River Mills
Southern Cal. Ed. Co.
State & Local Government
Los Angeles Fid. Cont. Dist
Calif.
Commonwealth of Puerto Rico
Palm Beach Co., Florida
[ Onondaga Co., N.Y.
Phila. Sch. Dist., Pa.
Other
None.




1st mtg. bds.
dorn. stk.
Deb.
1st & ref. mtg. bds.

16.0
22.2

1995

4-1/2

4.40

20.0
60.0

1990
1990

4-5/8
4-1/2

4.65
4.44

Rev.-Q. -;; •
G.O.
G.O.
G.O.
G.O.

15.0
54.0
26.8
10.0
16.0

1966-67
1966-90
1966-84
1966-95
1966-90

2.33
3.36
3.06
n. a.
3.09

2.15-2.25
2.25-3.40
2.20-3.10
2.20-3.15, ,
2.20-3.20='

Aa

Aa
A
A
Aa
A

H
K-2

Footnotes:
*--Rights offering.
n.a.--Not available.
1/ 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 Developmen
issues and non-guaranteed issues by Federal agencies.
3I 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 bonds secured only by revenue from quasi-utilities; Rev.-ST., revenue
bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured
solely by least payments.
4/ 1/20 per cent bonds maturing 1990 reoffered to yield 4.10 per cent.




H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treasury) y
Expected Proceeds from Forthcoming Large Issues
(In millions of dollsrs)

During month following
Corporate
1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1965 - Jan.

31
28
31
30
28
30
31
31
30
30
30
31
29

155
224
1,587
651
600
292
92
402
186
90
105
169

State and
local govt.

Other 2J

316
454
669
345
341
539
120
5,11
500
254
360
306
242

Corporate

--

25
15
—

15

.

Subsequent to
date shown
State and
local govt.
667 ;
646
953
575
598
716
588
680
626
549
563
435
382

1,771
1,649
1,837
844
668
307
167
442
186

--

25
215

130
105
253

Other %J

--

25
15

--

15

i
25
215

Forthcoming Large Offerings as of February 12

Issuer

New England Elec. System
Potomac Elec. Pwr. Co.
Gen. Tel. Co. of Calif.
*Armour & Co.
United Air Lines Inc.
Oklahoma Gas & Elec. Co.
*Phila. Elec. Pwr. Co.
^Northern Nat. Gas Co.
^General Acceptance Corp.
Florida Pwr. & Lt. Co.
W. R. Grace Co.




Type

Com. stk.
Pfd. stk.
1st mtg. bds.
Com. stk.
Conv. deb.
1st mtg. bds.
S. F• deb.
Deb.
Deb.
1st mtg.. bds.
Conv. sub. deb.

Amount
(millions
of
dollars)

18.3
20.0
35.0
25.5
66.0
25.0 ,
25.0
20.r0
35.0
40.0
84.0

Approximate date of
offering

Feb.
Feb.
Feb.
Feb.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.

17 (rts. ex.)
24
26
26 (rts. ex.)
8 (rts. ex.)
10
11
18

(rts. ex.)

\y>

L-2
Forthcoming Large Offerings as of February 12

Issuer

Type

Amount
(millions
of
dollars)

Approximate date of
offering

/ State and Local Government
Stgte of California
Oyster Bay, N. Y.
Wise. State Agencies Bldg. Corp.
*San Mateo Jr. College Dist., Calif.
*State of Maryland
Los Angeles Dept. of Wtr & Pwr., Cal.
Lake Charles, Louisiana
Atlanta, Georgia
Penna. Gen. State Auth.
St. Louis, Missouri
Va. State Highway Auth.
Public Housing Auth.
Fairfax Co., Va.
'
*La. State Bond & Bldg. Comm.
*Nassau Co., N. Y.
Forth Worth, Texas
*111. State Normal Univ.
Pittsburgh, Pa.
Dade County, Fla.
Florida Dev. Comm.
Los Angeles Harbor Dist., Calif.
*Monroe, La.
Other
None.

G.O.
G.O.
Rev.-Rent.
G.O.
G.O.
Rev.-Ut.
G.O.
G.O.
Rev.-Rent.
G.O.
Rev.-Q.-Ut.
--

G.O.
Rev.-Rent.
G.O.
G.O.
Rev.-Rent.
G.O.
G.O.
Rev.-S.T.
Rev.-Q.-Ut.
G.O.

100.0
13.0
35.3
11.1
31.9
24.0
12.7
24.2
50.0
10.4
31.0
117.5
10.0
15.0
19.6
10.4
80.0
35.0
46.0
33.8
11.0
20.4

Feb. 16
Feb. 16
Feb. 17
Feb. 23
Feb. 23
Feb. 24
Feb. 24
Feb. 24
Feb. 24
Feb. 26
Feb.
Mar.
3
Mar.
3
Mar. 10
Mar. 10
Mar. 23
Apr. 12
Indefinite
Indefinite
Indefinite
Indefinite
Mar.
1

j

i

I

f
I

*--Included in table for first time.
y
1/ Includes corporate and other issues of $15 million and over; State and local Government*
issues of $10 million and over.
t
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.




\1
H. 14
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:

Sale
Da te

Amount
(millions
of
dollars)

Public Offerings

Issuer and Description of Issue

A.

Sold Dec. 1 through February 12

12/15

25.0

12/11

20.1

1/14

200.0

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%.

^European Investment Bank--5-l/27. bonds maturing in 1984,
reoffered to yield 4.857, to investors in the U. S. and
5.547. to other investors.
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 and Development-4-1/27. bonds, maturing 1990, reoffered to yield 4.48%.

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 8.83 per cent in the price paid by U.S. citizens.
This premium was collected by the underwriters in 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 by new security offerings from borrowers in certain designated
"developed" countries.




-

W-

M-2
Part II:

Date
reported

Private Placement--Reported December 1 through February 1 2

Amount
(millions
. of
dollars)

Issuer and Description of Issue

#

12/21

Prince George Pulp & Paper Ltd.--1st mtg. sinking fun^j
bonds, maturing 1985--no information available on
takedown.

1/11

25.0

Alberta Municipal Financing Corp.--4-5/8% debentures,
maturing 1989, priced to yield 4.65%--no information^
available on takedown.

1/13

3.0

1/18

Note:

25.0

30.0

Beneficial Finance Co. of Canada--senior notes maturir
1984--no information available on takedown.
Province of Nova Scotia--4-l/2% sinking fund debentures
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
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
subsequent to the data a placement is reported. *--Included in table for first time.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102