Full text of H.16 Capital Market Developments : February 8, 1965
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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