Full text of H.16 Capital Market Developments : February 23, 1965
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Not for P u h l l c M n n KECOmOLlED AFTER SIX KONTHS -ll.lt- February 23, 1965. \ r.APTTAT. MARKET TlEVET.fiPMF.NTS IN THE UNITED STATES .1 Corporate and municipal bond markets. The volume of public _j£jCJirit3L-financing by corporations this week will be sharply larger than last week's relatively small total, with a $35 million bond offering of General Telephone Company of California, the largest issue scheduled. The supply of State and local government bonds coming to market will also be up but only slightly from last week's substantial volume. The largest municipal issue on the calendar this week is a $50 million bond issue of the Pennsylvania General State Authority. Long-Term Public Security Offerings 1/ Corporate New Capital | Refunding State & Local Govt. New Capital 1 Refunding Sold: 52 week avg. 110 Feb. Feb. 12 19 1 182 11 132 r/ 40 108 r/ 255 30 r/ 100 265 -- Scheduled: Feb. 26 -- 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. Last week price restrictions were terminated on a corporate bond issue which had met only a lukewarm retail reception since it was offered early in the month. The subsequent price decline raised the yield 5 basis points above the original offering yield. *With no major new issue reaching the market last week, this action left only two large issues with almost $40 million in bonds remaining under syndicate price restriction. In the municipal market, the $100 million State of California issue was nearly all distributed by weekend, but only about one-half of the remainder of last week's large supply was sold. Thus, with dealers' advertised inventories of unsold securities rising to around $750 million, and the calendar continuing large over the near-term, yields on seasoned municipal bonds rose. On Aaa-rated issues the advance amounted to 5 basis points. H. 14 -2- Yields in Securities Markets High-Grade Notes and Bonds Corporate New Seasoned Level latest week (per cent) Change from preceding week 4.41 U.S. Govt. Long-term 3-5 year 4.16 4.09 + 1 State and local govt. 2.99 + 4.00 + 12 3.94 4.02 4.13 + 4 + 3 4- 13 Money Market Federal Funds Treasury bills 3 -month 6-month Finance Company Paper 5 Private Housing Starts and Permits. Seasonally adjusted housing starts declined 7 per cent in January. This was associated with an upwanr revision of 4 per cent in the improved December rate, however, and the annual rate in January--!,487 thousand, including farm--continued above the recent low in August of last year. On a three-month moving average, the annual rate of starts in the November-January period was 1,513 thousand--down moderately from the fourth quarter average in 1964 but somewhat above the low reached in the third quarter of that year. Government-underwritten starts averaged 20 per cent of total starts in January, compared with 16 per cent a year earlier. This marked the fourth month in the past five that the government-underwritten share was greater than a year earlier. Seasonally adjusted residential building permits in January turned up by more than a tenth in January to nearly the year-earlier rate. Multifamily permits, which had declined sharply further in December, accounted for a large part of the January rise, but still remained substantially under the end-of-1963 peak. -3 - H. 14 Stock market credit. Total customer credit in the stock market fell $113 million further in January to $6.9 billion at the month-end. Most of this reduction was attributable to a $93 million decline in^. customers1 net debit balances on securities other than those of the U.S. Government. Bank l^ans to others than brokers and dealers for purchasing or carrying securities (except U.S. Governments) dropped $20 million. Money borrowed by member firms of the New York Stock Exchange on customers' collateral fell $76 million further during.January. Customers' free credit balances, on the other hand, rose $38 million. More detailed information on developments in stock market credit in recent months is shown in the table on the following page. Stock prices. Closing at 86.21 on February 19, common stock prices, as measured by Standard and Poor's composite index of 500 stocks, changed little on balance last week. Trading volume averaged 5.6 million shares a day, down 0.3 million shares from the average for the previous week. More detailed information concerning recent capital market developments is presented in the attached exhibits. Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. H. 14 -4- STOCK MARKET CREDIT (In millions of dollars) Months Outstanding: 1955-56 High Total Broker & Dealer Credit Customer Credit Customers' Bank loans to others Money Net debit borrowed net free than brokers and balances with credit dealers for purchas- CusL Other NYSE member ing & carrying secur. coll. coll. balances firms 4,047(5/56)i 2,823(12/56) 1,873 430 1,069(1/55) 1,060(11/57) 1,344 188 807(4/57) 1,255(4/56) 1957-58 Low 3,554(1/58)i 2,482(12/57)' 1959 1960 1961 1962 1963 4,764(4) 4,142(5) 5,602(12) 4,876(7) 7,298(11) 3,401(4) 3,004(7) 4,259(12) 3,562(7) 5,586(11) 1,373(5) 1,121(5) 1,377(8) 1,269(9) 1,727(12) 2,044 1,801 2,572 1,856 3,892 318 1,257(3) 940(4) 237 385 '1,508(4) 235 1,091(9) 597 1,211(11) 7,242 7,053 6,940 5,515 5,079 4,986 1,727 1,974 1,954 3,852 3,393 3,317 597 517 446 9 -140 •3 144 -71 -69 -1 10 39 29 34 21 12 38 12 -5 32 2* 20 -57 -92 270 -48 -102 -94 -54 -50 -40 -59 -76 3 - High Low High Low High 1963 - Dec. 1/ 1964 - Dec. 1965 - Jan. Changes in Outstandings 1964 - Jan. V Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. 1965 -130 21 173 -37 -48 -69 -64 46 -41 7 -55 -113 -81 -102 34 -36 -25 -81 -93 -182 5 72 3 -1 -15 -52 15 82 -29 -43 35r/ -71 I § f > 1,210 1,169 1,207 52 -63 32 -66 -27 8 -32 -37 68 10 -24 38 38 1 Note: With the exception of bank loan data, figures are reported to the New York Stock Exchange by member firms carrying margin accounts. Bank loans to others than brokers and dealers for purchasing and carrying securities are for weekly reporting member banks. Net ; debit balances and customer free credit balances are as of the end of the month; bank loans and money borrowed are reported for the last Wednesday of the month. Numbers in parenthesis! denote month of year. All figures exclude credits on, or to carry, U.S. Govt, securities. 1/ November 1963 data on customers' net debit balances do not include accounts carried by a large former member firm in liquidation; most of these accounts have been transferred to other member firms and are reported in their debit figures from the month received (some in December, more in January 1964). Debit balance totals for the period from October 1963 through January 1964, therefore, are not completely comparable. L O N G - T E R M B O N D YIELDS, H I G H - G R A D E f\J Exhibit A Corporate Aaa 1/ Da te Part II U. S. Govt, long-term 2/ (per cent) 1959-60 1961-62 1962-63 1964 " - State and local government Aaa 3/ High 4.46 (9/15/61) High Low 4.19(3/29/63) High 4.45 (12/11) 4.35(57$) Low 1965 - High . 4.44(1/8) Low 4.41(2/19) 4.42 (1/8/60) 4.12 ( 2/23/62) 3.85 (12/28/62) 4.20 (4/17) 4.11 (U/20) 4.16(2/19) 4.13(1/29) 3.65(9/24/59) 3.37(7/6/61) 2.88(11/8/62)' 3.16(3/26) 2.99(12/31) 2.99(2/18) 2.94(2/11) Jan. Jan. Feb. Feb. Feb. 4.14 4.13 4.15 4.16 4.16 ^ 2.96 2.96 2.94 2.94 2.99^ 22 29 5 12 19 £/ 4.43 4.42 4.41 4.41 4.41 ^ Spread 1between U. S. Goi/t. and Corporate State and Aaa local Aaa .59 .57 ; 21 .33 .19 .29 .25 .92 1.04 .80 1.14 1 .01 1.22 1 .17 . .29 .29 .26 .25 .25 1,,18 1,.17 1..21 1.22 1.• » p/ Preliminary. 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 more. TJ Thursday figures. Only general obligation bonds are Included; average term is 20 years. Note.—Highs and lows are for individual series and may be on different dates for different series. For spreads, high refers to widest, and low to narrowest. E X H I B I T •. Peri l LONG-TKKM B O N O YIIIDS, L O W I I - O I A D I — Weed,' Exhibit B -- Part II Corporate Baa 1/ D a te 1959-60 - High Year end - 1961 1962 1963 1964 1965 - High Low Jan. Jan. v Feb. Feb. Feb. Note* 22 29 5 12 19 £/ State and local govt. Baa 3/ (per cent) Spread between Aaa and Baa State and Corporate local govt. 5.36 (2/1^/60) 5.10 4.93 4.85 4.80 4.80(1/8) 4.78(2/19) 4.46 (3/7/60) 4.04 3.57 3.60 3.51 3.49(1/7) 3.40(2/11) .84 . 66 .70 .48 .37 • 38 .36 4.79 4.80 4.79 4.79 4.78 v 3.42 3.41 3.40 3.40 3.44 .36 .38 .38 .38 .37 For footnotes see Exhibit JL. 1.08 .73 .63 .49 .52 .52 .45 .46 .45 . 46 .46 .45 IXHtSIT C, >«n \ I ' ' ' M I I I I l 1 l I 1 l I I I I l M I I I I l l I l I l I I I l l l l l I M M me mi Exhibit C -- Part II Discount ra te 3-month tin* v M Da te 1959-60 -• High Year end - 1961 1962 1963 1964 1965 - High Low Jan. Jan. Feb. Feb. Feb. mi 22 29 5 12 19 £/ 4.00 3.00 3.00 3.50 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 mi - iim Spread between yields on 3Yield. 3-5 year month bills and vields on 6-month bills 2/ issues 2/ 6-mo. billsl3-5 vr. issues (per cent) 4.59 (Vfl/60) 2.66 2.89 3.52 3.83 3.94(2/19) 3.80(1/8) 5.07(2/8/60) 2.90 2.93 3.64 3.93 4.02(2/19) 3.92(1/8) 5.00(14/24/59) 3.81 3.41 4.07 4.07 4.09(2/19) • 4.04(1/22) .79 .24 .04 .13 .10 .13 ^ .07 3.81 3.85 3.89 3.90 3.94/ 3.94 3.94 3.96 3.99 4.02^ 4.04 4.05 4.06 4.08 4.09 .13 .09 .07 .09 .08 1.81 1.15 .52 .55 .24 .29 .15 .23 .20 .17 .18 .15 Weekly rate shorn ie that in effect at end of period at the Federal Reserve Bank of New York. Market yield) weekly averages oomputed from daily closing bid prices. Series of 3-6 yqar issues consists of selected notes and bonds. Note .—Sighs and Ions are for individual series and may be on different dates for different series, for spreads, high refers to widest, and low to narrowest. £ X HI 6 IT D, Foil 1 S H O R T - A N D INTERMEDIATE- TERM INTEREST RATES, B A N K S A N D OTHER PRIVATE B O R R O W E R S SlOtE 11 CM*N6I CAlt I OANS FIMANCf C0MP4BT flfII F.I. DISCOUNT IATI FfDHM f«N#S I I I I IIIIII I 1 I I IMil II I II II I I I I I I I Exhibit D Prime rate 1959-60 - High Year end - 1961 1962 1963 1964 1965 - High Jan. 2 2 Jan. 29 Feb. 5 Feb. 12 Feb. 19 £/ 1/ I I I I I I I I I Part II Finance company Federal funds 3/ paper ZL. (per cent) Spread between 3-mo. bills and finance co. pape 5.00 4.50 4.50 4.50 4.50 4.50 4.50 5.13 (1/23/60) 3.00 3.19 3.88 4.06 4.13(2/19) 4.00(2/12) 2.88 3.00 3.50 4.00 4.00(2/19) 3.88(2/12) 1.02 .34 .30 .36 .23 .29 .10 4.50 4.50 4.50 4.50 4.50 4.06 4.03 4.00 4.00 4.13 3.40 4.00 4.00 3.88 4.00 .25 .18 .11 .10 .19 4 - 0 0 (5/13/60) STOCK M A R K E T / STOCI MAtlff (libIT V- *»»«ti m m m ' V r v y u , • V v A ^ A Z - 1 1 11 1 1 1111 1 11 11 II II II 11 11 11 1 1 1 1 11 1IIII 1 1 1 1 IJNL A K 1 ) 1 1 1 1l 11 1I4« j , Exhibit E -- Part II Common stock yields 2/ (per cent) Stock price index 1/ 1961-62 - High Low Year end 1963 1964 1965 - High Low Dec. Jan. Feb. 5 Feb. 12 Feb. 19 £/ Trading volume 3/ (millions of shares) 72.04(12/8/61) 52.68(6/22/62) 2.80 3.96 10.1 2.4 74.44 84.75 87.56(1/29) 85.37(1/8) 3.13 3.02 2.95 3.02 4.7 4.7 6.2 4.7 7,242 7,053 6,940 5,515 5,099 4,986 1,727 1,974 1,962(1/20) 1,947(2/3) 83.96 86.12 87.29 86.17 86.21 3.05 2.99 2.96 3.02 3.02 4.7 5.5 5.8 5.9 5.6 7,053 6,940 5,079 4,986 1,974 1,954 1,947 1,958 n»a,—4Jot available, jy Preliminary, * E E L : y H S H A 5 r ' S Stock marlket customer credit Customers1 Bank Total debit balloans to ances 4/ "others" 5/ (In millions of dollars) s S s ^ « T , ' ~ - " ' - « " * 5,60% 12/6I) 4,259 (12/6I) 1>418(5/9/62) 4,424(1/61) 3.253 (3/61) 1,161(3/8/61) °n N ~ ™ Y 3 t «* " k * » " » . Y=a^"l figm,. hidi 1 r s E S S B Digitized for^FRASER E — " 1 Of t X H I B I T F. fori I PRIVATE H O U S I N G STARTS A N D PERMITS SEASONALLY ADJUSTED DATA r-. /^-VX lUi 10116 f l l H I U PER C E N T O F U N A D J U S T E D T O T A L S T A R T S G O V i l N M i N l UNPilWIITlIK Exhibit F - Part II Starts Total Seasonally adjusted annual rate Unadjusted 1/ Unadjusted Type of financing Type of houslnft Multi1-2 FHA family family Building permits (seasonally adjusted annual r a t e ! 2 / .. (Thousands of units) 1964 - Jan. Feb. Mar. Apr. May June July Aug. . Sept. Oct. Nov. Dec. 1965 - Jan. 1,718 1,657 1,663 1,531 1,529 1,611 1,505 1,430 1,457 1,591 r/ 1,455 r/ 1,596 1,487 100 100 130 149 158 159 143 142 123 141 r/ 111 r/ 95 11 12 16 18 23 19 20 18 18 19 16 13 13 41.0 58.5 84 31.9 68.5 84 43.1 87.0 109 52.4 96.0 125 51.5 106.1 129 51.3 107.2 134 46.6 .96.1 117 47.3 94.3 119 39.5 83.1 100 45.9 95.0 117 r/ 90 r/73.6 r/36.8 33.7 61.8 r/ 78 n.a. n. a. 66 1,333 1,404 1,377 1,280 1,271 1,306 1,242 1,281 1,222 1,220 1,258 r/1,173 1,317 BHMSHW 82 without mortgages. 2/ Building permit8 before January 1963 are Census estimates f*r about 10,000 areas identified M reflect direct adjustment fer differences in the number ef wericlng d*ys per montii, »• well as other differences in timing and meterage* I1 E X H I B I T 0 , Pari 1 YIELDS O N NEW A N D S E A S O N E D C O R P O R A T E B O N D l / NIW ISSUfS SUSONiD A, 1941 , 11*3] Exhibit 6 - Part II Yields on New Corporate Bond Issues Adjusted to an Aaa basis Monthly averages; 1964 - Mar. Apr. May June July Aug., Sept. Oct. Nov. Dec. 1965 - Jan, Number Am't of issues Average of included (mil. yield issues of dollars) (per cent) 6 8 3 4 7 3 166.0 130.0 278.0 230.0 60.0 75.0 239.0 70.0 4.43 4.48 4.46 4.434.37 4.39 4.49 4.46 3 3 140.0 94.0 4.47 4.42 1 10 Weekly averages 1964 - High Low Dec. 4 Number Am't of issues Average included (oil. of yield issues of dollars) (per fpnt% 140.0 4.47 11 18 25 Jan. Feb. 1 8 15 40.0 4.53* 22 14.0 40.0 16.0 60.0 4.39 4.33 29 5 12 U ! 19 4.53(5/8) A. in Mo tot Average# of offering yield# on mil new isiues of publioly offered ooxp orate bonds rated Aaa* it and A by Moody 1 e Investors Service (except serial and convertible la sue#, offerings of natural gas pipeline and foreign companies, and bonds guaranteed by the Federal Government) weighted by A me of offering. Before averaging, new offerings are adjusted to a composite iaa basis by deducting from the actual reeffering yield tho excess of the weekly average yield for seasoned tends of the appropriate Industryquality group over the composite average for seasoned iaa-rated bonds (Moody's), Average# considered unrepresentative because off special characteristics of 1he 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) 1965 January February March e/800 e/ 800 April May June July August September October November December 1st 2nd 3rd 4th quarter quarter quarter quarter 1st half Three quarters Year Corpora te 1964 New Cap ital 1963 930 685 754 613 594 1,144 2,178 1,069 1,378 930 904 1,013 780 661 r/1,109 676 637 795 949 656 1,419 1,013 819 1,415 2,369 4,625 r/2,550 3,013 2,3d1 2,847 2,109 3,246 6,994 r/9,544 12,557 5,198 7,307 10,553 State and Local 2/ 1965 1963 1^64 e/800 e/8 00 p/ 947 776 810 732 746 976 £/ 1,242 667 903 869 866 930 £/ i 2 1 906 780 892 680 708 449 850 550 950 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 £/ £/ £/ e/ | Excluding finance companies 3/ 1st 2nd 3rd 4th quarter quarter quarter quarter Year e/ £/ 1/ 2/ V 1,996 4,170 r/2,411 e/ 2,763 2,284 2,529 •I,*68 2,854 e/11,340 9,434 rx 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 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 Gros s proceeds for new capital and refunding 1/ Common Memo: Bonds and Foreign Publicly Privately pfd. issues Offered Offered stock included 1,386 . 1,289 251 642 852 1,006 55 308 1,088 135 1,510 277 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 1964 - I II III r/ IV 2,499 4,851 2,802 3,311 978 1,321 792 531 1,221 1,640 1,516 2,372 1963 - July Aug. Sept. Oct. Nov. Dec. 810 756 871 1,116 891 1,459 279 336 283 511 183 626 1964 - Jan. Feb. Mar. Apr. May June July Aug, Sept.r/ Oct. Nov, Dec. 985 710 805 2,234 1,155 1,461 869 728 1,204 1,032 702 1,577 338 279 361 383 470 468 234 183 376 181 30 320 Quarter or Total Net proceeds for new cap:Ltal 1/ 2/ Mfg. Public Utility Communications Other issuers 996 566 747 984 376 552 228 274 317 848 685 945 128 434 109 47 947 591 806 968 326 794 285 530 236 221 150 118 842 1,241 868 1,629 300 1,890 494 408 29 105 85 223 418 723 547 1,045 438 856 642 509 273 1,663 59 128 1,240 1,383 1,303 1,332 431 318 501 481 549 751 100 100 87 125 159 83 46 21 42 10 10 27 297 272 237 240 214 515 107 100 78 201 131 198 526 342 353 480 537 623 411 433 672 638 620 1,114 121 88 91 1,372 148 370 225 112 156 213 52 143 5 16 8 34 36 35 21 21 44 82 27 114 149 123 146 . 186 206 332 149 164 234 249 188 607 109 155 174 151 441 264 207 138 296 297 40 172 1965 - I 86 /I#? 25 ^ X 187 3 9 ^ 441 531 4M 13 461 64 637 157 83 34 1,377 27 258 23 16 19 81 17 30 515 324 400 463 395 525 401 342 560 321 401 610 100 250 550 n.a. 10 1965 - Jan. e/ 815 165 110 430 Feb. Mar. 2/ 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 Exhibit J Other Security Offerings (In millions of dollars) 1965 January February March April May June July August September October November December Long-term 1/ Gross ! Foreign government 2/ Federal aeencv 3/ 1965 1964 1964 1963 1963 e/235 Year 4 82 69 30 75 26 20 13 7 180 72 58 ; 232 133 76 57 114 11 63 83 636 771 e/-148 -- 186 -- 275 260 160 459 509 — 174 200 1,204 1,167 — -- 2 New shot t-term 4/ Federal agency 3/ State and local government 5/ January February March April May June July August September October November December 103 236 -407 442 81 -80 -9 127 176 7 -15 E/-208 75 272 -367 589 -30 -10 62 208 -173 259 146 -339 e/249 -106 -336 23 97 183 239 -333 167 1 525 113 -3 -189 -482 292 195 319 414 327 258 123 -102 551 P/ 453 598 692 Year 1,600 |>/ Preliminary. e/Estimated by Federal Reserve, n.a.-Not available, jyThese 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, ^/includes securities offered in the U.S. by foreign governments and their political subivisions 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 i 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 PllA notes included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal Reserve. H. 14 Exhibit K Large Long-term Public Security Issues for New Capital (Other than U. 8. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollsrs) Total 1964 - Jan. Feb. Mar. Apr. May June July Aug. Sept, Oct. Nov. Dec. 1965 - Jan. 307 263 335 1,557 452 650 291 142 376 187 Conor ite Bonds Convertible (other than bonds convertibles) 60 225 200 35 296 51 235 415 390 178 17 125 25 269 108 -- 230 130 Stocks 22 28 38 1,271 37 2*0 113 81 79 -- 200 115 30 15 State and local governments 577 358 282 698 274 284 544 459 558 419 226 541 419 Other 1/ 50 20 15 275 260 104 15 502 15 235 Large Individual Issues Offered February 1 through 19 Issuer Corporate Texas Elec, Serv. Co. * Occidental Pet. Corp. Dan River Mills Southern Cal. Ed. Co. *New England Elec. System Type 2/ Maturity 16.0 1st mtg. bds. 22.2 Com. stk. 20.0 Deb. 1st & ref. mtg. bds. 60.0 18.3 Com. stk. State & Local Government Los Angeles Fid. Cont. Dist Rev.-Q.-Ut. Calif. . .Commonwealth of Puerto RicoG.O. G.O. Palm Beach Co., Florida G.O. Onondaga Co., N.Y. G.O. Phila..Sch. Dist., Pa. G.O. State of California G.O. Oyster Bay, N.Y. G.O. St. Louis, Mo. Wise. State Agencies Bldg. Rev.-Rent. Corp. Amount (millions of dollars) 15.0 54.0 • 26.8 10.0 16.0 100.0 13.0 10.4 35.3 Coupon rate or net interest cost Offering vield Rating 1995 4-1/2 4.40 Aa 1990 1990 4-5/8 4-1/2 4.65 4.44 Aa 1966-67 1966-90 1966-84 1966-95 1966-90 1975-2015 19)65-94 1966-85 2.33 3.36 3.06 n.a. 3.09 3.50 3.22 3.00 2.15-2.25 2.25-3.40 2.20-3.10 2.20-3.15,, 2.20-3.20*' 2.90-3.58— 2.15-3.40 2.15-3.02 Aa A A Aa A Aa A Aa 1966-99 3.21 2.20-3.20 Aa -- (b , K-2 Large Individual Issues Offered February 1 through 19 (Cont'd) Issuer Type 3/ Amount (millions of dollars) Maturity Coupon rate or Offering net interyield est cost Rating Other None. *--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 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 bonds 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/ 1/20 per cent bonds maturing 1990 reoffered to yield 4.10 per cent. 5/ Bonds manuring 2013-15 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) i .V 1964 - Jan. Feb. Mar. Apr. May •i June July Aug. Sept. i Oct. Nov. vj. Dec. 1965 - Jan. 31 28 31 30 28 30 31 31 30 30 30 31 29 During month following date shown State and Other 2/ Corporate local govt. -316 155 224 454 25 669 1,587 15 651 3^5 -600 341 -292 539 120 92 15 511 402 500 186 -254 %3 90 360 215 105 305 169 242 -- Corpora te 1,771 1,649 1,837 844 668 307 167 442 186 130 10 j 2 Subsequent to date shown State and local govt. 667 646 953 575 598 716 588 680 626 549 563 435 382 Other 2/ -- 25 15 15 25 215 -- Forthcoming Large Offerings as of February 19 Type Issuer 25.0 25.0 Fsb. F*b. Fdb. Mar. ; Mar. Mar, Mar. Mar. Mar. 24; 26 26 (rts. ex.) 1 (rts. ex.) 3 4 8 (rts. ex.) 10 11 Gfn. mc.g. bds. Deb. Deb. Ccr>>. s ub. deb. 16.0 20.0 33.0 78.9 Ma r. Mar. Mar. Apr. 17 18 18 1 (rts. ex.) Pf d. S f> „ 1st mtg. td?. C ,m. b r.ko O.ny, c'-t. "i* I- mv.g. bis. 1st. xrg. tis. 20.? o 25.! 84.0 Approximate date of offering CO Coroorate Potomac Elec. Pwr. Co. Gen. Tel. Co. of Calif, Armour & Co. W. R. Grace Co. *Mississippi Pwr. & Lt. Co. Florida Pwr. & Lt. Co. United Air Lines Inc. Oklahoma Gas & Elec. Co. Phila. Elec. Pwr. Co. ^Carolina, Clinchfield, & Ohio Railroad Co. Northern Nat. Gas Co. General Acceptance Corp. *Celanese Corp. Amount (millions of dollars) { ' :o.o 40.0 hb .0 l.ir; mtg. bds. vtL-2 Forthcoming Large Offerings as of February 19 Issuer Type Amount (millions of dollars) Approximate date of j offering State and Local Government San Mateo Jr. College Dist., Calif. G.O. State of Maryland G.O. Los Angeles Dept. of Wtr. & Pwr., Cal. Rev. -Ut. Lake Charles, Louisiana G.O. Atlanta, Georgia G.O. Rev. -Rent. Penna. Gen. State Auth. Va. State Highway Auth. Rev. -Q.-Ut. Monroe, La. G.O. -Public Jtousing Auth. Fairfax Co., Va. G.O. *Milwaukee, Wise. G.O. Rev. -Rent. La. State Bond & Bldg. Comm. G.O. Nassau Co., N. Y. G.O. Forth Worth, Texas Rev. -Rent. 111. State Normal Univ. Pittsburgh, Pa. G.O. Dade County, Fla. G.O. Rev. -S.T. Florida Dev. Comm. Rev. -Q.-Ut. Los Angeles Harbor Dist., Calif. 11.1 31.9 24.0 12.7 24.2 50.0 31.0 20.4 117.5 10.0 12.0 15.0 19.6 10.4 80.0 35.0 46.0 33.8 11.0 Feb. 23 Feb. 23 Feb. 24 : Feb. 24 Feb. 24 Feb. 24 Feb. Mar. 1 3 Mar. Mar. 3 Mar. 9 Mar. 10 Mar. 10 Mar. 23 Apr. 12 Indefinite Indefinite Indefinite Indefinite J ) ? } 1 i I I | {, a i f j 4 Other None. *--Included in table 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 ! Da te Amount (millions of dollars) - ^ ' Issuer and Description of Issue A. ' Public Offerings Sold Dec. 1 through February 19 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--5-1/2% bonds maturing in 1984, reoffered to yield 4.85% to investors in the U. S. and 5.54% 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-4-1/2% 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. 1 . 1°, M-2 Part II: Date reported Private Placement--Reported December 1 through February 1 Amount (millions of dollars) Issuer and Description of Issue 12/21 25.0 Prince George Pulp & Paper Ltd.--1st mtg. sinking fund 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 8.0 Beneficial Finance Co. of Canada--senior notes maturing | 1984--no information available on takedown. | 1/18 30.0 Province of Nova Scotia--4-l/2% sinking fund debentures/ maturing 1989--no information available on takedown. \ V tfote: 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 arid subsequent to the data a placement is reported. ^--Included in table for first time.: