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Not for PublicatioiijpECONTBOLLED AFTER SIX MONTHS
H. 14 f
I
1
1

""""*"3^ -

i

10 ^
V l-

February 8, 1965.

1
V CAPITAL MARKET DEVELOPMENTS
IN TWJ UNITED STATES

l i C a n & M M r t e And municipal bond markets. This week's volume of
new corporate security offerings is the largest in nearly five months,
roughly three times last week's modest supply. About half of the
weekly volume is accounted for by the $60 million Aa rated Southern
California Edison issue. The weekly supply of new municipal bonds
will be smaller than it has been for the past four weeks, but the
calendar of issues scheduled for offering in the month ahead has
very recently expanded by some $400 million to roughly $900 million.
At the same time dealers' advertised inventories of unsold issues
have swelled to more than $700 million.
Long-Term Public Security Offerings 1/

C o n >ora te
New Capital | Refunding

State and Local govt.
New Capital | Refunding

Sold:
52 week avg.
Jan.
Feb.

29
5

111
76 r/
40

1

184

---

166
177

--

137

10
r/

5
24

r/
r/

Scheduled:
Feb.

12

125

--

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.
This week's enlarged supply of new corporate issues will
enter a hesitant market, affected by rumors that monetary policy is
about to tighten. In the face of these rumors syndicate price
restrictions were abruptly terminated last week on the Connecticut
Yankee Atomic Power Company bond which had been so aggressively
priced a week earlier but which had received a very poor retail
reception. Following syndicate termination, the yield on the Yankee
issue rose 8 basis points in secondary trading. Bidding for last
week's sole new competitive issue was accordingly less aggressive and
the average yield in the new corporate bond series rose five basis
points. Two recent offerings of high grade utility bonds are still in
syndicate with more than half (about $25 million) of the issues yet to
be sold.
In the municipal market, about two-thirds of last week's
new issue volume was spoken for by the weekend, and despite the
technical overhang of recent and prospective offerings yields on seasoned
issues eased somewhat further.




H. 14

-2-

Yields in Securities Markets
Level latest week
(per cent)

Change from
preceding week

High-Grade
Notes and Bonds
Corporate
New
Seasoned

4.38
4.41

+ 5
- 1

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

4.15
4.06

+ 1

State and local govt.

2.94

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

+ 2

4.00
3.89
3.96
4.00

+ 4

+ 2
- 3

Stock prices. Common stock prices, as measured by Standard
and Poor's composite index of 500 stocks, eased slightly on balance
last week to close at 87.29 on February 5. Trading volume averaged
5.8 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.




t x HIBII A. RA fcM.
LONG-TERM BOND YIELDS, HIGH-GRADE

V

-

r ^ - ' V

Exhibit A - Part II

Date

Corporate
Aaa 1/

U* S. Govt*
long-term 2/

State and
local
government
Aaa 3/

Spread between
U. S. Govt, and
Corporate
State and
Aaa
local Aaa

(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
1961* - High
Low

U. 61(1/29/60)
L.k6(9/15)
14.21(3/17)
U.U3(2/16)
14,23(13/2$
14.37(13/27)
u. 19(3/29)
4.45(12/11)
4.35(2/28)

U.142 (1/8/60)
li. 07 (12/29)
3.70 (5/12)
14,12(2/23)
3.83(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 (3/4)
2.88 (11/8)
3.18 (11/21)
2.93 (3/28)
3.16(3/26)
2.99(12/31)

.59
.57
.31*
.U7
.30
.35
.21
.33
.19

1.014
.80
1.05
.88
1.17
1.01

Jan. 8
Jan. 15
Jan. 22
Jan. 29
Feb. 5 2/

4.44
4.43
4.43
4.42
4.41 J

4.15
4.15
4.14
4.13
4.15 /

2.99
2.97
2.96
2.96
2.94 •

.29
.28
.29
.29
.26

1.17
1.18
1.18
1.17
1.21

.92
.76

.I46

p / Preliminary.
Weekly average of daily figures, Average term of bonds included i s 22-24 years,
7/ Weekly average of daily figures. The series includes bonds due or callable in 10 years or no re,
3/ Thursday figures. Only general obligation bonds axe included; average term ii 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 low to narrowest*




EXHIBIT 6, P o r t

1

LONG-TERM BONO YIELDS, LOWER-GRADE

STAIl AND 10CAI 60HINMINT

Exhibit B - Part II

Date

Corporate
Baa

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
196k - High
Low

5.3^(2/1^60)
5.13(10/27)
5.00(4/21)
5.11(1/5)
4.92(12/21)
4-93(3/4)
U.83(11/35)
4.87(6/26)
4.80(12/31)

U.U6 (1/7/60)
4.16(3/23)
3.93(11/9)
k. 04(1/11)
3.52(5/17)
3.63(6/27)
3.52(5/23)
3.59(10/8)
3.49(11/19)

.84
.81
.66
• 7U
.63
.71
.48
.48
.37

1.08
.93
.57
.82
.56
.63
,L4
.52
.36

Jan. 8
Jan. 15
Jan. 22
Jan. 29
Feb. 5 £_/

4.80
4.80
4.79
4.80
4.79

3.49
3.44
3.42
3.41
3.40

.36
.37
.36
.38
.38

.50
.47
.46
.45
.46

Kotet

For footnotes see Exhibit A*




z

•7
EXHIBIT

C. P O , I J

S H O R T - A N D INTERMEDIATE-TERM INTEREST RATES, G O V E R N M E N T

111

V

M

t-MOWTH

"

"

III

h

"

•

1 ISSUES

1

0ISC0UNT

r
r

v
"

v

v

u

„

i

3 MONTH I I U S
M a r k •J

1 i i i i i i i i M
19*0

i

I 1 I I

1 1 1 1 1 I 1
m i

1I.I

1 1 1 1 1 1 1 1 1 1 1
1141

I I

1 1 1 1 1 1 1 1 1
1 I U

1 1 1 1 1 1 1 1 1 1 1
lf*«

0

Exhibit C - Part II

Date

Discount
rate

3-month
bills 2/

y

Yields
6-month
, bills 2/
(per cent)

3-5 year
issues 2/

Spread between yields on 3month bills and yields on
6-mo. billsj3-5 yr. issues

1959--60 - High It.00
3.00
1961 - High
3.00
Low
3.00
1962 - High
3.00
Low
3.50
1963 - High
Low
3.00
1961* - High
4.00
Low
3.50

U. 59 (1/8/60)5.07(1/8/60) 5.00(12/24/39)
2.66(12/29) 2.90(V29) 3.86(8/11)
2.17(VZ7) 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)
3.11(12/28)
3.55(iVi5) 3.68(12/6) 14.07(12/27)
3.Wa(1/1B)
2.88(3/15) 2.93(3/8)
3.86(12/25) 3.97(12/4) 4.23(3/27)
3.43(7/17) 3.52(7/3)
3.98(8/7)

.79
•Ult
.12
.21*
.02
.17
.Olt
.21
.04

1.81
1.51
.92
1.19
.52
.70
.1*2
.71
.20

Jan.
Jan.
Jan.
Jan.
Feb.

3.80
3.77
3.81
3.85 ,
3.89 /

.12
.17
.13
.09
.07

.27
.29
.23

8
15
22
29
5 £/

4.00
4.00
4.00
4.00
4.00/

3.92
3.94
3.94
3.94
3.96 V

4.07
4.06
4.04
4.05
4.06

.20

.17

Weekly rate shown is that in effect at end of period at the Federal Reserve Bank of Hew York*
Market yield) weekly averages computed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
Note.—Highs and lows are for individual series and m y be on different dates for different series.
For spreads, high refers to widest, and low to narrowest*




EXHIBIT

D. P a r t

1

S H O R T - A N D INTERMEDIATE- TERM INTEREST RATES,
B A N K S A N D O f M E R PRIVATE B O R R O W E R S

/w«\r*w

f

E x h i b i t D - Part II

Date

Stock e x c h a n g e
c a l l loan 1 /

Prime
rate l /

Finance company
• paper 2 /

Federal
funds 3/

I Spread between
3 - i a o . b i l l s and
1finance co. p a p e r

!per c e n t )

S.So
a. so

U.So
U.So

U . 0 0 (5/13/60)
2.90(11/17)
(V27)
3 . 0 0 (12/28)
1 . 3 0 ( 3/26)
3.SO (12/27)
2.US (7/26)

4.50
4.50

4,50
4.50

4;06(12/31)
3;72(9/11)

4;00(12/31)
3:07(10/16)

•41
• 08

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
4.03
4.00

4.00
4.00
3.40
4.00
4.00

.26
.29
.25
.18
.11

U.5o
U.So
U.So
U.So
U.So

Jan.
Jan.
Jan.
Jan.
Feb.

8
15
22
29
5 £/

S.oo

S.13(1/22/60)
3.00(12/30)
2.S0(8/5)
3.2S(7/21)
2.88(6/1)
3.88(12/27)
3.13(5/31)

1959-60 H i h
1961 - H i g f
Low
1962 - High
Low
1963 - High
Low
I96I4 - H i g h
Low

1/

U.So
U.So
U.So
U.So

.U3

1.02

.S6

.11

.US
.19

.39
.12

Weekly rate shown is that in effect at end of periqd. Stock Exchange call loan rate is going rate
on call lpans secured by customers1 stock exchange collateral at New York City banks. Prime rate
is that charged by large banks on short-term loans to business borrowers of the highest credit
standing.
2J Average of daily rates published by finance companies for directly placed paper for varying maturltie
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.
Note:—flighs 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 H

/

STOCK limn CREDIT
C H A N G E IK S I I H S

Exhibit E - Part II

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

Stock price
index 1/

Stock market customs: credit
Customers 1
Bank
Total
debit balloans to
ances h/
"others" 5 /
(In millions of dollars)

1961-62 - High
Low
1963 - High
196U - High
Low

3
*
1
7k.Wi(i2/2%)
86.28(11/20)
75.50(1/3)

Dec.
Jan.
J a n . 22
J a n . 29
Feb. 5 £/

83.96
86.12
86.74
87.56
87.29

2.80

3.01

6.5

2.U

5 , 602(12/61) 1|,259( 12/61) 1, U18 (5/9/62)
ii,U2U(l/61) 3,253(V61) 1,161(3/8/61)
7,298(13/63)5,586(11/63) 1,738(13/25)

2.95
3.10

6.1
3.6

7,314(4)
7,053(12)

5,524(1)
5,079(12)

1,974(12/30)
1,720(1/22)

3.05
2.99
2.97
2.95
3.06

4.7
5.5
5.4
6.2
5.8

7,053

5,079

1,974
1,954
1,962
1,954

3.96

c/

10.1

n.a.—Not available, p/Preliminary.
1J Standard and Poor1a composite index of 500 common stocks, weekly closing pricea, 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.
2/ 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.
3/ Averages of daily trading volume on the New York Stock Exchange,
4/ End of month figures for member firms of the New York Stock Exchange which carry margin account* t
excludes balances secured by U. S. Government obligations.
5/ • 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.




MORTGAGE AND BONO YIELDS^

A i « CORPORATE lOMDS:

Exhibit F

2/ Conventional
mortgages
25-vear 30-vear 3/
FHA

mortgages

1956 1957 1958 4959-601961-64-

Low
High
Low
High
High
Low

1964 - October
November
December
1965 - January

4.68
5.63
5.35
6.24
5.72
5.43
5.44
5.44
5.43
n. a.

Part II

Spread beAaa Corporate
tween yields
on conv. &
Seasoned—^
25-year FHA
Ne*^
mortgages

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

5.45
5.45
5.45
n.a.

5.80
5.80
5.80
n.a.

.36
.36
.37
n.a.

4.46
4.47
4.42

4.42
4.43
4.44
4.43

Spread between
yields on new corporate bonds and
25-year
Seasoned ;
FHA mtgs. bonds
.76
1.58
.88
1.69
1.50
.94

1.03
.05
.73
.39
-.16

.98

.04

.96
n. a.

.03
.01

y N e i t h e r mortgage nor bond yields take Into acooant servioipg costs which are much higher for mortgages
than bonds. Generally, bands pay Interest semi-annually} mortgages, monthly. Mortgage yields, if computed &s equivalent to a semi-annual interest investment, would be slightly higher than given in the
table#
2/ Based on THA-field-offioe opinions about average bid prices in the private secondary market for newhome mortgages for immediate delivery* Separate data available for 25-year and—begin!ng July 1961^—
30-year mortgages with minimum downpayments, weighted by probable volume of transactions * "Yields computed by fHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year
mortgages. Over the period for lixloh 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
rates.
3/ Based on FHA field office opinion on typical interest rates (rounded) on conventional first mortgagee
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 *e 11 as exist!ng-home mortgages.
Dashed line indicates this change in the series.
A/ See note for Exhibit G.
Investor Service. Monthly averages of daily data. See Exhibit A,
Digitizedo/forMoody's
FRASER



<?

EXHIBIT O. fori 1
1 YIELDS ON Nl

U
kkl

I I I I I I I I I I I 1 I I I 1 I I I I I I I I I I I II I I I I I II I I I I
.
«•«
- "mT1
' JfM_ —Exhibit 0 - Part II
Yields on Mew Corporate Bond Issues Adjusted to an Aaa basis
S o b e r Aa't of Issues Average
yield
Included (mil.
of
.(per
issues of dollars)

Number Aa r t of issues Average
yield
included (mil.
of
foer cent)
Issues of dollars)
Monthly averages;
Mar.
1964
Apr.
May.
July
Aug.,
Sept.
Oct.
Nov.
Dec.
1965 - Jan,

6
1
10
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
4.43*
4.37
4.39
4.49
4.46

3
3

140.0
94,0

4.47
4.42

Weekly averages
1964 - High
..Low




4.53(5/8)
l

4
11
18
25
1
8
15
22
29
5

140.0

4.47

40.0

4.53*

14.0
^0.0
16.0

4.39
4.33
4.38

Exhibit H

H. 14

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

New Can ital
1965

Corporate
1964

State and Local 2/
1963
1^64

1963

1965

930
685
754

613
594
1,144

&/800
e/700

April
May
June

2,178
1,069
1,378

930
904
1,013

July
August
September

780
661
1,035

676
637
795

October
November
December

£/
951
e/
649
e/ 1,414

1,013
819
1,415

1st
2nd
3rd
4th

2,369
4,625
2,476
£/ 3,014

i

2,3bl
2,847
2,109
3,246

2/
£/
£/
e/

6,994
9,470
2/12/484

5,198
7,307
10,553

January
February
March

e/800
e/ 800

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

2
i

947
776
810

732
746
976

1,242
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

£/ 5,344
£/ 7,922
e/10,2 72

5,118
6,955
9,151

Excluding finance companies J£/
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 Rgserve.
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
j

1

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

k
"

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 P fd.; issues
Offered Offered
stock included
1,386
1,289
251
642
852
1,006
308
55
1,088
1,510
135
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

-

'

128
434
109
47

f

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

•

1965 - I

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
174
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

h

Z

'

Quarter

Total

1963 - J u l y
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

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

Aug;

Sept.
Oct. £•/
Nov, £/
Dec.' e /

287
424
2*7

Net proceeds for
new capital 1/ 2/
Mfg.

Public
Utility

996
566
747

984
376
552

228
274
317

848
685
945

947
591
806
968

326
794
285
530

236
221
150
118

342
1,241
868
1,629

Communications

Other
issuers

412
614

10
1965 - J a n . e /
100
n.a.
250
815
165
550
110
430
Feb.
Mar.
£/ 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.
Digitized forSource:
FRASER
Securities & Exchange Commission.



r

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

1965
January
February
March
April
May
June
July
August
September
October
November
December

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

e/235

Year

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

232
133
76
57
114
11
63
83

e/ 563

771

e/ - 148

i

186
275
260
160
/

509

2/
e/

"

£

2

e/1,204

459

174
200

1,167

}

New shoirt-term 4/
State and local government 5/
Federal agencv 3/
January
February
March
April
May
June
July
August
September
October
November
December

n.a.

103
236
-407
442
81
-80
-9
127
176
7
-15
&/-208

75
272
-367
589
-30
-10
62
208
-173
259
146
-339

e#49

-78
-336
23
97
183
239
-333
167
1
525
113
&/-200

I
1
-106
-189
-482
292
195
319
414
327
258
123
-102
551

•

'

d/ 453
692
Year
p/ 401
1,600
E./ Preliminary. e/Estimated by Federal Reserve, n.a. -Not available. 1./These data differ
from those in Exhibit H in that refunding issues, as well as new capital issues, are included. Long-term securities are defined as those maturing in more than one year. 2/lncludes 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 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
fcertificates
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.
http://fraser.stlouisfed.org/

Federal Reserve Bank of St. Louis

5

f
I
C
1
1
|
!

ilf

H.14\
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Ifsues Offered
(In millions of dollars)

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

s

i

Bonds
(other than
convertibles)

Total

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

225
200
296
235
415
390
178
125
269
108

ate
Convertible
bonds
60
35

Stocks

State
and
local
governments

22
28
38
1,271
37
260
113

--

51
----

17
25

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

--

81
79

--

--

230
130

200
115

30

--

15

Other

2/-

--

50
20
15
275
260
104
15
502
15
--

235

Large Individual Issues Offered February 1 through 5
Issuer

Corporate
Texas Elec. Serv. Co.
State & Local Government
Los Angeles Fid. Cont. Dist
Calif.
Commonwealth of Puerto Rico
Palm Beach Co,, Florida
Onondage Co., N.Y.

Type 2/

Amount
(millions
of
dollars)

1st mtg. bds.

Rev.-Q.~Ut.
G.O.
G.O.
G.O.

Maturity

Offering
vield

Rating

4.40

Aa

16.0

1995

4-1/2

15.0
54.0
26.8
10.0

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

2.33
3.36
3.06

Other
None.




Coupon
rate or
net interest cost

•'

2.15-2.25
2:.25-3.40
2!.20-3.10
1.20-3.15

Aa
A
A
Aa

- v<

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 Development
issues and non-guaranteed issues by Federal agencies.
3/ In the case of State & local govt, securities, G.Q. 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.




Z

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 dollsrs)

During month following
date shown
State and
Corporate
Other If
local govt.
1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1965 - Jan.

3.1
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

31<W
454
669
345
341
539
120
511
500
254
360
306
242

---

25
15
—
—

15

25
215
--

Corporate

Subsequent to
date shown
State and
local govt.

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

667
646
953
575
598
716
588
680
626
549
563
435
382

130
105
253

Other 2/
__

• -25
15

---

-15
--

-25
215
--

Forthcoming Large Offerings as of February 5

(millions

Issuer

Approximate date of
offering

dollarsJ
Corporate
Occidental Petroleum Corp.
Dan River Mills
Southern Calif. Ed. Co.
New England Elec. System
Gen. Tel. Co. of Calif.
^Potomac Elec Pwr. Co.
*vnited Air Lines Inc.
Oklahoma Gas & Elec. Co.
| ^Florida Pwr. & Lt. Co.
W. R. Grace Co.




Com. stk.
Deb.
.
1st & ref. mtg. bds.
Com. stk.
1st mtg. bds.
Pfd. stk;
Conv. deb.
1st mtg. bds.
1st mtg. bds.
Conv. sub. deb.

22.2
20.0
60.0
18.3
35.0
20.0
66.0
25.0
40.0
84.0

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

8 (rts. ex.)
9
10
17 (rts. ex.)
26
8 (rts. ex.)
10
(rts. ex.)

-

w

L-2
Forthcoming Large Offerings as of February 5

Issuer

Type

Amount
(millions
of
dollars)

Approximate date of
offering

State & Local Government
Phila. Sch. Dist., Pa.
G.O.
*State of California
G.O.
*0yster Bay, N. Y.
G.O.
Wise. State Agencies Bldg. Corp.
Rev.-Rent.
Los Angeles Dept. of Wtr. & Pwr., Cal, Rev.-Ut.
Lake Charles, Louisiana
G.O.
^Atlanta, Georgia
G.O.
*Penna. Gen. State Auth.
Rev.-Rent.
St. Louis, Missouri
G.O.
Va. State Highway Auth.
Rev.-Q.-Ut.
-*Public Housing Auth.
^Fairfax Co., Va.
G.O.
Pittsburgh, Pa.
G.O.
Dade County, Fla.
G.O.
Fort Worth, Texas
G.O.
Florida Dev. Comm.
Rev.-S.T.
Los Angeles Harbor Dist., Calif.
Rev.-Q.-Ut.

16.0
100.0
13.0
35.3
24.0
12.7
24.2
50.0
10.4
31.0
117.5
10.0
35.0
46.0
14.1
33.8
11.0

Feb. 9
Feb. 16
Feb. 16
Feb. 17
Feb. 24
Feb. 24
Feb. 24
Feb. 24
Feb. 26
Feb.
Mar. 3
Mar. 3
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

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.




|
••
(

j

I"?

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.

Sold Dec. 1 through February 5

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 Portuga 1 - - 5 - 3 4 bonds, maturing 1985 ,
reoffered to yield 5.97%.

^European Investment Bank--5-l/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 v?hich rises with
maturity--when U. S. lenders by new security offerings from borrowers in certain designated
"developed" countries.




vt>
M-2
Part II:

Date
reported
%

f'

Private Placement--Reported December 1 through February 5

Amount
(millions
of
dollars)

J

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 debenturesi
maturing 1989--no information available on takedown, k

X

Note:

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
for
FRASERto the data a placement is reported. *--Included in table for first time.6

Digitized