Full text of H.16 Capital Market Developments : January 15, 1968
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six uoms Not for Publication H. 14 January 15, 1,968 (CAPITAL MARKETS DEVELOIMENTS IN TRt; UNlTfcD STATES lb 1968 :e and municipal bond markets. Although total long-term offering^'tWts we ;k should total about $1.2 billion, the volume of new, pub 1 icly-uIi1 tir(id, corporate and municipal securities expected this week is below the average weekly volume over the past year. The largest corporate offering will be the El Paso Natural Gas Company1 s $60 million convertible debenture issue, while featured in the municipal volume is the New York j State Dormitory Authority's $48.1 million issue, postponed in mid-December owing to market conditions. Dominating the long-term market this week will be the public offering of $800 million of F.N.M.A. participation certificates. 1/ Long-term Public Security Offerings— (In millions of dollars) Corporate New Capital | Refunding State & Local Government New Capital | Refunding Sold: 336 259 5 12 r/19 "397 217' 19 207 52 weeks avg. January Scheduled; January 1/ 192 Federal Reserve estimates are based upon published reports of issues sold and scheduled for offering; corporate rights offer tags are included as of date subscription rights expire. Yields on new and seasoned corporate bonds declined again last week, but new issue receptions were somewhat less favorable than they had been the previous week. Although the negotiated industrial offerings — which included the accelerated offering of Standard Oil of Indiana's $200 million issue — sold out quickly, the competitively bid utility offering# met only a lukewarm reception. Yields on municipals also declined last week, but in this market too new issue receptions, although good, were not as enthusiastic as they had been the week before. By the end of the week, about 78 per cent of the weekly new issue volume had been spoken for, as contrasted to 96 per cen the week earlier. H. 14 Yields of Security Markets High Grade Notes and Bonds . Change from preceding week Levels Latest Week Corporate New Seasoned 6.20 6.19 13 4 5..12 5.48 11 13 4.08 4.35 7 11 U. S. Government Long-term 3-5 year State and local Govt. Moody 1 s Aaa Std. & Poor's high grade Money Market Federal funds Treasury bills 3-month 6-month 4.53 - 3 5.06 5.30 + - 7 9 Corporate Bonds Still in Syndicate Date Offered Amount (millions of $) 1/10 1/9 100.0 28.0 Reoffering Yield Issuer Northwestern Bell Tel., 6-1/4's - 2007 6.25 Central Power & Light, 6-5/8's - 1998 6.50 Rating Estimated proportion sold 66% 90% Aa Blue List of Municipal Dealers' Advertised Inventories Latest Week 317(1/9/68). End of Previous Week 335 Recent High 849(4/26/67) H. 14 FNMA secondary market and other operations. Offerings of mortgages from private holders for purchase in the secondary market by Federal National Mortgage Association accelerated further in November to a level of $324.7 million. The further increase — w h i c h had followed a short-lived downshift in September in response to a 1.5 point downward adjustment iti FNMA's prices in late August — brought offerings close to the peaks reached in December 1965 and January 1966. Indications were for an appir ciable slowing in December, however, in response to another price reduction (one point), effective November 25, by FNMA in a move to bring its prices into closer line with those prevailing in the tightening ; mortgage and related capital markets and to preserve its resources in the face of the upward pressure for additional purchases. While purchases by FNMA, which tend to lag offerings, edged o: f ;ain temporarily in November, to $186.9 million, they apparently rose once in December and indications were for an average in the fourth quarter a whole second only to that in the first quarter of 1966. Sales by FNMA, which had been tending down within a very limi :ed range; moved closer to the zero level in November. This trend apparently continued in December. In connection with its other operations, FNMA scheduled another offering of participation certificates based in part, on mortgages in its growing special assistance portfolio. The offering, planned for January 16, was to total $1,250 million, with about $800 million to be made availab Le to the public and $450 to be placed directly with Government trust and other accounts. While yields for the January offerings had yet to be determined, the last previous sale of FNMA participation certificates ih late November totaled $1 billion (including $350 million which was taken by Government accounts) and brought yields ranging from 6.35 per cent on 2-year maturities to 6.40 per cent on 20-year maturities. Stock prices. Common stock prices advanced last week in recordbreaking volume. At the close Friday, Standard & Poor's index of 500 stocks stood at 96.72, up 0.78 from the previous Friday. Allegedly because of tax-switching, the week's average daily trading volume broke all previous records on both the American Exchange (7.6 million shares) and the New York Exchange (13.2 million shares). Friday, the American Exchange alslo had its busiest day in history when 8.7 million shares were traded. The previous record — set October 26, 1967 — had been 8.3 million shares. 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. EXHIBIT A, Part 1 LONG-TERM BOND YIELDS, HIGH-GRADE Weekly CORPORATE A n Meerfy't U.S. IQVERNMINT Lene-lerm /V STATE AND LOCAL GOVERNMENT A u Moody's 1964 1965 1111 Exhibit A -- Fart. il Date 1959-60 - High 1966 - High - Low 1967 - High - Low Dec. 15 22 29 Jan. 5 12^/ Corporate Aaa 1/ State and U.S. Govt. | local long-term 2/, government 1 Aaa 3/ (per cent) 4.61(1/29/60) 5.52(9/9) 4.73(1/7) 6.24(12/29) 5.00(2/10) 4.42(1/8/60) 4.87(9/2) 4.42(1/7) 5.49(11/17) 4.37(2/3) 3.65(9/24/59) 4.04(8/25) 3.39(1/13) 4.15(12/29) 3.25(2/9) 6.16 6.22 6.24 6.24 6.20 5.38 5.34 5.35 5.23 5.12 4.15 4.15 4.15 4.15 4.08 Spread between U.S. Govt, and Corporate | State and Aaa , | local Aaa .59(8/5/60) .84(12/30) .14(2/18) .92 .44 .78 .88 .89 1.01 1.08 .92(4/22/60) 1.19(2/11) .77(9/2) 1.51 .74 1.23 1.19 1.20 1.08 1.04 j>/ Preliminaryc 1/ Weekly average of daily figures. Average term of bonds included is 22-24 years. 2/ Weekly average of daily figures. The series includes bonds due or callable in 10 years or more. 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. For spreads, high refers to widest, and low to narrowestv -5- LONG-TERM BOND YIELDS, LOWER GRADE Weekly CORPORATE Baa STATE AND LOCAL GOVERNMENT Baa •Moody » 1963 : j \ 1965 1966 1967 1968 Exhibit B — Date Part II State and local govt. Baa 3/ Corporate Baal/ (per cent) 1959-60 - High Year end- 1965 1966 - High Low 196^ - High Low Dec. 15 22 29 Jan. 5 I2j>/ Note: 5.36(2/12/60) 5.04 6.18(12/30) 5.05(1/14) 6.97(12/29) 5.81(4/14) 4.46(1/7/60) 3.79 4.55(8/25) 3.78(1/20) 4.73(12/28) 3.85(4/13) .84 .31 .81 .31 .82 .63 6.93 6.96 6.97 6.96 6.86 4.73 4.73 4.73 4.73 4.65 .77 .74 .73 .72 . 66 For footnotes see Exhibit A. Spread between Aaa and Baa State and Corporate local Rovt. 1.08 .39 .62 .31 .81 .37 .58 .58 .58 .58 .57 S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES GOVERNMENT Weekly y=> 6-MONTH BILLS Market Yields 3-5 YEAR ISSUES F.R. DISCOUNT RATE 3-MONTH BILLS Market Yields 1963 1964 1965 1966 1967 1968 Exhibit C -- Part II I Discount I rate 1959-60 - High Year end - 1965 1966 1966 - High Low 1967 - High Low Dec. 15 22 29 Jan. 5 12B/ 3-month bills U 4.00 4.50 4.50 4.50 4.50 4.50 4.00 4.59(1/8/60) 4.47 4.80 5.52(9/23) 4.39(6/24) 4.99(12/29) 3.41(6/9) 4.50 4.50 4.50 4.50 4.50 4.96 4.96 4:99 4.99 5.06 Yields 6-month bills 2/ (per cent) 5.07(l/8/6u) 4.66 4.92 5.92(9/23) 4.53(6/24) 5.50(12/15) 3.74(6/2) 4.50? 5.44 5.49 5.39 5.30 3-5 year issues U Spread between yields on 3-mo. bills and yields on 6-mo. bills 13-5 vr. issues 5.00(12/24/59) 4.90 4.86 5.83(9/2) 4.80(4/8) 5.80(11/10) 4.36(4/7) 5.74 5.68 5.75 5.61 5.48 .79 .19 ol2> o 52 .09 .62 .01 I 1.81 .43 .06 .78 .01 1.61 .02 .54 .48 .50 .40 .24 1/ Weekly rate shown is that In effect at end of period at the Federal Reserve Bank of 2/ 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 may be on different dates tor different series. For spreads, high refers to widest, and low to narrowest. http://fraser.stlouisfed.org/ "4 Louis Federal Reserve Bank of St. -9- ,78 .72 .76 .62 .42 EXHIBIT D, Pari 1 S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES, B A N K S A N D OTHER PRIVATE B O R R O W E R S Weekly Per PRIME RATE FINANCE COMPANY PAPER Directly placed F.R. DISCOUNT RATE New York FEDERAL FUNDS; Effective Rale 1963 1966 1968 cent Exhibit D — Date Prime rate 1/ Part II Finance company paper 2/ Federal funds 3/ Spread between 3-mo. bills and finance co. paper (per cent) 1959-60 - High Year end- 1964 1965 1966 1966 - Low 1967 - High Low Dec. 15 22 29 Jan. 5 12 £/ 5.00 4.50 5.00 6.00 5.00(3/4) 6.00(12/29) 5.50(12/1) 5.13(1/22/60) 4.06 4.75 5.88 4.75(1/7) 5.75(1/6) 4.38(6/23) 4.00(5/13/60) 4.00 4.63 5.63 3.55(1/21) 5.25(1/6) 3.40(10/27) 6.00 6.00 6.00 6.00 6.00 5.38 5.50 5.50 5.50 5.50 4.55 4.50 4.66 4.56 4.53 1.02 .23 .28 1.08 .20 1.33 .21 .41 .54 .51 .51 .45 1/ Weekly rate silown is that in effect at end of period. Prime rate is that charged by large banks on short-term loans to business borrowers of the highest credit standing. 2/ Average of daily rates published by finance companies for directly placed paper for varying maturities in the 60-270 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.-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. -11- EXHIBIT E, Pari 1 STOCK MARKET Billions of dollars 1941-43 o v e r a g e = 1 0 PRICES 10 100 8 STOCK MARKET CREDIT 6 CHANGE IN SERIES 4 1 Millions of s h a r e s 1 - VOLUME - ^ [ H J V W W ^ ]\j\J\ - - YIELDS i i i i i i ii i• ii iII II i i i i-i1i1 1 .1 M i l 11 1l-l 1 M 1 II II I-II I 1 1 II II 1 11 1 1 1 1 1 1 1 1 II 1963 1964 1965 1966 1967 1968 Exhibit E — Stock price index 1/ 1961-62 - High Low 1966 - High Low 1967 - High Low Nov. Dec, Common stock yields 2/ (per cent) Part II Trading Stock market customer credit volume J3/ Customers' Bank , (millions Total debit bal- loans to of shares) ances^/ "others"5/ (In millions of dollars) 10.1 72.04(12/8/61) 52.68(6/22/62) 93.77(2/11) 73.20(10/7) 97.26(10/6) 82.13(1/6) 2.82 3.96 3.01 3.97 92.66 95.30 3.18 3.09 10.6 3.01 3.58 2.4 10.7 5.0 12.3 6.9 11.5 Dec. 29 96.47 3.06 12.3 Jan. 5 95.94 96,72 3.08 3.05 12.2 5,602(12/61) 4,424(1/61) 7,997 7,302 9,644 7,345 4,259(12/61) 3,253(1/61) 5,835 5,169 7,202 5,200 1,418(5/9/62) 1,161(3/8/61) 2.241(7/6) 2,097(12/14) 2,507(11/1) 2,055(1/25) 9,644 n.a. 7,202 n. a. 2,442 2,464 n. a. n.a. n.a. n.a. r/2,465 n. a. 2,464 12£/ 13.2 : n.a. Not Available. £/ Preliminary, rf Revised. _1/ Standard and Poor's composite index of 500 common stocks, weekly closing prices, 1941-43=10. Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are for Friday's data only. 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. Year-end figures are averages * of daily figures for the year. 4/ End of month figures for member firms of the New York Stock Exchange which carry margin accounts; excludes balances secured by U. S. Government obligations. 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 seie Bulletin. -13- H EXHIBIT F. Port 1 FEDERAL N A T I O N A L M O R T G A G E A S S O C I A T I O N SECONDARY MARKET O P E R A T I O N S Millions ol dollars ~tt: OFFERINGS PURCHASES SALES 1966 1968 400 Exhibit F - Part II Estimated offerings i to FNMA Immediate Standby Total ' purchase commitment Da 11- Purchases I by FNMA 1 Sales by FNMA 1 (In millions of dollars) 1966 - Nov. Dec. 1967 • Jan. Feb. Mar. Apr. May June . juiy /tig. V^VSept. Oct. Nov. 163.6 121.5 67.9 24.4 26.9 17.8 78.7 229.1 . 232.8 261.0 168.3 260.6 324.7 161.0 120.1 67.3 24.2 26.7 17.7 78.5 228.8 232.6 260.6 167.9 260.1 324.1 2.6 1.4 .6 .2 .2 .1 .2 .3 .2 .4 .4 .5 .6 132.0 130.5 125.0 84.2 50.9 20.6 17.8 26.9 81.2 198.3 192.4 215.1 186.9 •2 .9 .8 1.5 6.0 .9 .8 .2 .3 .1 ess than $50,000. 1/ Data represent unpaid principal balances of the mortgages involved, exclusive of premiums, discounts, or other charges. Offerings are amounts of applications received during the period from sellers proposing that FNMA execute purchasing contracts. An immediate purchase contract covers existing mortgages wljiich the seller must deliver to FNMA within 45 days. A standby commitment contract relates to proposed mortgages on housing not yet under construction which the seller must usually deliver within one year. Purchases include those jinder both immediate purchases and standby commitment contracts. Data exclude FNMA activity under Special Assistance and Management and Liquidating Programs. EXHIBIT G, Port 1 YIELDS O N NEW AND SEASONED CORPORATE BONDS Weekly A d j u s t e d lo Aaa Basis NEW ISSUES SEASONED tot Moody's 1964 1965 1966 Yields on New Corporate Bond Issues Adjusted to an Aaa basis Number of Number |Am't. of issues Average yield of included (mill, (per cent) issues of dollars) Am't. of issues Average yield included (mill, (per cent) of dollars) Monthly averages: 1967 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Weekly averages: High 6 7 20 20 14 23 14 17 10 15 13 5 496.0 . 481.0 1,073.0 916.0 570.0 993.0 772.0 1,125.0 358.0 716.0 356.5 355.0 1 5.38 5.20 5.31 5.39 5.66 5.79 5.78 5.89 5.88 6.12 6.53 6.51 8 15 22 29 5 i2jaJ 6.59(11/17) 5.11(2/10) on all ne of the offerings included are denoted by an asterisk. 2/ Preliminary. -17- 231.5 230.0 125.0 6.51 6.55 6.42* 15.0 353.0 6.32 6.19 Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) New Ca pital Corporate 1966 p/ 1967 R/ State and local 2/ 1966 p/ 1967 1965 1,648 1,398 2,317 1,302 1,237 2,446 795 746 - 1,197 1,482 1,196 1,438 1*188 858 865 804 872 904 1,973 1,474 2,611 1,553 1,058 2,364 1,152 1,691 1,946 1,112 1,218 1,497 1,193 901 1,141 826 924 972 2,457 2,406 1,723 1,039 1,670 1,382 1,290 850 1,392 941 852 1,256 701 773 1,020 986 648 966 October November December E/2,296 e/1,475 ' e/2.250 • 829 1,085 1,635 924 1,325 1,496 960 1,353 e/ 975 755 969 940 794 1 ,021 754 1st 2nd 3rd 4th 5,363 6,058 6,586 e/6,021 ' 4,985 4,974 4,091 3,550 2,73a 4,789 3,533 3,745 4,116 3,827 3,049 e/3,288 2,911 3,235 2,494 2,664 2.,580 2j,722 2,,600 2,,569 9,959 14,050 17,601 7,527 11,060 14,805 7,943 10,992 e/14,280 6,146 8,640 11,304 5,,302 7,,902 10,,471 January February March April May . June » 1965 July August September Quarter Quarter Quarter Quarter 1st half Three quarters Year 11,421 18,007 e/24,028 • ; if w Excluding finance companies 3/ . 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 5,207 5,913 Year e/ £/ 1/ 2/ 31 4,924 4,884 3,969 3,492 2,547 ' 4,348 3,283 3,188 1 3s •L 13,366 17,269 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. 19- Exhibit I New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) Quarter or Month 1966 - III IV 1967 - I II III 1966 - Dec. Net proce eds Gross proceeds for new capital for new capita 1 1/ 2/ and refunding 1/ Total Bonus Common Memo: Other Publicly Privately and Mfg. Public CommviniForeign Utility catic ns Issuers Offered Placed pfd. issues stock included 1,309 1,558 657 154 1,627 314 2,256 4,197 918 1,232 984 117 1,247 375 3,669 2,047 60 *1 1,382 6,834 3,263 4,017 4,604 1,811 1,465 1,552 390 726 678 65 234 2,442 3,014 2,792 997 1,268 1,219 54: 541 595 1,979 1,662 980 555 127 24 673 409 15: 401 5,464 6,208 220 624 35 91 29$ 848 1,684 745 1967 - Jan. 105 563 10 274 362 156 900 1,418 Feb. 503 145 1,254 15 601 143 2,362 1,618 Mar. 1,128 16 394 238 2,016 1,368 410 107 Apr. 91 588 403 32 158 965 396 May. 1.519 1,298 471 659 330 17 1,884 359 2,673 June 446 925 213 214 1,889 487 2,590 July 3? 509 356 1,229 250 13 1,813 418 2,481 Aug. 201) 265 637 8 214 902 647 Sept; 1,763 13:> 918 573 40 470 572 1,375 2,417 Oct. ' 55 410 675 • n.a„ 350 620 550 Nov. e/ 1.520 205 220 225 n.a. 1,100 1,000 1,075 Dec, e/ 2,300 j>/ PreTiminary. 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 and oth^r transportation, real estate and finance, and commercial and other. SOURCE: Securities and Exchange Commission. -20- 1,228 511 456 415 343 393 492 1,046 313 620 673 335 725 Exhibit J Other Security Offerings (In millions of dollars) 1967 130 January February March April Hay June July August September October 4 November December Jan. 114 27 13 170 5 539 117 66 Oct.. 1,181 Year 1,251 783 750 650 12 40 40 66 69 76 72 7 50 23 74 68 218 91 33 74 5 52 75 650 407 250 599 708 432 597 584 661 6,858 38 73 810 503 410 392 699 1,030 1,084 799 400 450 800 239 5,767 6,806 New short-term 4/ State and local Government .5/ Federal Agency -179 238 308 179 103 -552 387 91 -24 39 -458 -454 -594 450 -319 647 580 -559 718 827 109 462 204 85 515 -82 284 93 -128 -334 119 -590 -103 -158 219 408 -262, -270 270 593 -146 -161 152 -652 1,407 464 606 59 -48 -555 -33 573 503 274 -283 -366 219 -570 January i February March April May June July , August September October November ' December Jan, - Nov, Gross Long-term 1/ Foreign Government 2/ Federal Agency 3/ 1966 1967 1965 1966 1965 j>/ 2,283 Year 489 1,378 422 1,286 624 529 182 129 .185 325 775 239 150 375 375 179 1,803 2,732 3/ -137 -174 117 -11 509 237 132 206 105 -309 202 -76 877 801 £/ 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/ Includes securities offered in the U.S., by foreign governments and their political subdividions and international organizations. Source: Securities and Exchange Commission. 3/ Issues not guaranteed by U.S. government. Source: Long-term, Securities and Exchange Commission; short-term, Treasury Dept. & Fed. 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 maturity of one year or less* 5/ Principally tax and bond anticipation notes, warrants, or certificates and Public HousingsAuth. notes; In some instances PHA notes; included may have a somewhat longer maturity than 1 year. Source; Bond Buyer & Federal Reserve. -21- H. .4 Exhibit K Large Long-term Public Security Issues for New Capital (Other than U. S. Treasury) 1/ Proceeds of Large Issues Offered (In million# of dollars) I Total 966 967 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1,177 681 842 1,638 1,311 870 1,666 1,340 1,705 794 1,458 826 978 Bonds (other than convertibles) 990 611 709 1,435 956 771 1,072 890 1,288 473 897 461 460 Convertible bonds Stocks 118 30 40 140 213 . 55 409 317 350 257 285 150 437 State and local governments Other 60 779 947 675 669 512 496 875 483 473 847 505 865 633 68 40 93 63 14.1 U.v 165 133 6/ 6: 2 -6 2x5 81 %) 230 530 1,000 540 391 825 85, 221 400 50 845 627 Large Individual Issues Offered January 8 through January 12 Issuer Type 1/ Amount (millions of dollars) Maturit Coupon rate or net interest cost Rating Offering yield gorp,;afe owa Power and Light entral Power & Light rucible Steel orthwestern Bell Telephone bbott Laboratories tandard Oil of Indiana 1st mtg. bds. 1st mtg. bds. Debs. Debs. S.F. debs. Debs. State & local Government 'tate of New York .0. airfax Co., Virginia G.O. iouston I.S.D., Texas G.O. Milwaukee Co., Wisconsin .0. atate of Washington G.O. 3tate of Washington .0. Honolulu, Hawaii G.O. Omaha Public Power Dist. Rev. -Ut. 6.60 15 .0 28..0 30.,0 1998 1998 1993 100.,0 25. 0 200. 0 2007 1993 1998 6.00 6.25 6.29 6.07 1969-88 1969-93 1969-92 1969-88 1969-88 1968-92 4/ 1971-88 1970-1997 4,.20 4..89 4..36 4.,00 4.,10 4..67 4. 30 4. 32 3.65-4, 20 3.90-4,,90 3.70-4, 40 3.60-4,.05 3.50-4, 10 3.60-4 70 3. 90-4L35 3.70-4[ 37 78,.0 15,.0 39 .8 13.,7 16,,5 25,,0 10.,0 45. 0 -22- 6-5/8 6-7/8 6-1/4 6-1/4 6.50 6.50 6.90 | i Aa Aa Baa Aaa Aa Aaa Aa Baa A Aaa Aa Aa A Aa K-2 Large Individual Issues Offered January 8 through January 12. (Cont'd) Issuer Type 3/ Amount' (millions of dollars) Maturity Coupon Offerrate or net inter- ing yield est cost Rating Other Fed. Home Loan Bank Quebec Hydro-Electric Commission Bonds 200.0 1970 6 5.96 Debs. 60.0 1989 6-7/8 7.00 * Rights offering. 1/ Includes corporate and other security offerings of $15 million and over; State and local security offerings of $10 million and over. 2/ Includes foreign government and International Bank for Reconstruction and Develop~~ ment issues and non-guaranteed issues by Federal Agencies. 3/ In the case of State and local Government Securities, G.O. denotes general obligations; Rev. -Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.*Rent,, revenue bonds secured solely by lease payments. 4/ ' 47o bonds due 1992 reof fered to yield 4.10%. -23 14 Exhibit L Forthcoming Large Long-term Public Security Offering for H w Capital (Other than U.S. Treasury) 1/ Expected Proceeds from forthcoming Large Issues (In millions of dollars) During month following Corporate 1966 - Dec. 30 1967 - J a n . 31 Feb. 28 Mar. 31 Apr. 30 May 31 June 30 July 31 Aug. 31 Sept.30 Oct. 31 Nov. 30 Dec. 31 656 486 1,410 767 963 1,449 1,636 1,261 694 534 1,357 826 968 State and Corporate Other H 811 706 1,534 •905 1,262 2,065 1,922 1,576 1,335 1,090 2,694 2,129 1,892 80 530 250 780 508 227 326 596 401 512 783 768 505 . 865 633 -- 70 100 40 — 100 65 50 845 402 , 1Subsequent t0 date ahown State and local eovtr . 1,154 851 528 . 247 346 | 616 402 575 903 889 743 j 1,684 I 1,076 j Other 1/ 95 545 265 15 85 115 70 150 159 126 - 260 875 502 Forthcoming Large Offerings as of January 112, 1968. Issuer Connecticut Light & Power Co. Connecticut Light & Power Co. Southern California Edison Illinois Power Co. El Paso Natural Gas Minnesota Power & Light ; Texas Power & Light Trunkline Gas Co. Central Soya Co. Arizona Public Service Disney Productions Oklahoma Gas & Electric Zapata Off-Shore Western Airlines Carolina Tel. & Tel. Texas Electric Service Commonwealth Edison Type Amount (milllone of dollara) 1st mtg. bds. Pfd, stk. Com. stk. 1st mtg. bds. Conv. debs. 1st mtg. bds. 1st mtg. bds. 1st mtg. p.l. bds. S.F. debs. Pfd. stk. * Conv. debs. 1st mtg. bds. Conv. debs. Conv. debs. Conv. sub. debs. Debs. 1st mtg. bds. -24- 20.0 15.0 54.9 25.0 60.0 18.0 25.0 35.0 20.0 16.0 40.0 25.0 15.0 30.0 22.6 16.0 50.0 1 i Approximate date of offering January 16 January i 16 January 16 January ! 16 January 17 January 17 January 23 January 24 January 23 January 23 January 23 January I 24 January 25 January 30 January 30(rts January January 30 31 Forthcoming Large Offerings as of January 12, 1968. (Cont'd) Type . Issuer • Amount (millions of dollars) Approximate date of offerir Corporate (Cont'd) *Piedmont Aviation Michigan Bell Telephone Co. Southern California Edison Co. Gulf States Utilities Co. Gulf States Utilities Co. United Nuclear Corp. Duquesne Light Go. Ohio Power Co. Montana Power U.S. Steel 15.0 125.0 100.0 31.0' 25.0 30.0 35.0 ° 60.0 30. n 225.0 Conv. debs. Debs. 1st. mtg. bds. Com. stk. 1st mtg. bds. Conv. debs. 1st mtg. bds. 1st mtg. bds. 1st mtg. bds. Debs. January 31 February 6 February 6 ; February 13 February 13 February 13 February 20 February 13 Indefinite Indefinite ' j. State and local Government Alabama Highway Authority St. Louis, Missouri *N.-Y. State Dorm. Authority St. Louis Jr. Coll. Dist., Mo. North Carolina State Ports Authority, - Wilmington -Montgomery Co., Maryland State of. California State of Oregon New York City *Montpelier, Vermont Jackson, Mississippi *State of Kentucky Penna. General State Auth. Salt River Project Dist., ; Arizona Los Angeles Convention Auth., California State of South Carolina Memphis, Tennessee *San Francisco B.A.R.T. Special Service Dist., #1 ^Minneapolis - St. Paul, Minn., Metro. Airport Kentucky Turnpike Auth. Calcasieu Parish, Louisiana 30.0 20.0 48.1 10.0 January January January January 16 16 17 17 11.4 17.0 100.0 10.7 114.3 20.0 10.0 30.0 50.0 January January January January January January January January - January 19 23 23 23 25 25 30 30 31 • f f j ; Rev.-Q.-Ut. 32.0 January 31 f Rev.-Rent. G.O. G.O. 18.0 13.0 30.0 February February February 6 6 6 G.O. 12.0 February 14 Rev.-Rent. Rev.-Q.-Ut. Rev.-Rent. 16.0 120.0 62.7 February 19 Indefinite Indefinite , { Part. cert. Debs. Bonds 800.0 35.0 15.0 January 16 January 23 Indefinite | Rev.-Q.-Ut. G.O. Rev.-Rent. Re. v.-Rent. Rev.-Rent. G.O. Bonds G.O. G.O. G.O. G.O. G.O. Rev.-Rent. " . | f j • j: ^ Other F.N.M-.A. Province of Nova Scotia New Zealand i , [ -25- L-3 FOOTNOTES: *--Included in table for first time. j 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 of Federal Agencies. —26— 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; Nov. 1, 1967 through Jan. 12, 196P 11/14 75.0 Province of Ontario — 6-7/8% debentures 5 maturing 1997, reoffered to yield 6.967 12/5 15.0 Komatsu Manufacturing, Tokyo, 7-1/4% con^| vertible debentures, maturing 1982, r e H offered to yield 7.25%. ? 1/11 60.0 Quebec Hydro - Electric Commission 6-7/8%debentures maturing 1989, reoffered to { yield 7.00%. f Indefinite 1/23/68 15.0 35.0 B. Prospective Offerings New Zealand — Bonds *** Province of Nova Scotia * - Included in table for first time. ** - issues sold to investors outside of U.S. *** - issue subject to interest equalization tax. M-2 PART lis Private Placements - Reported January 1 through January 12, 196 Date Reported Amount (millions of dollars) 1 Issuer and Description of Issue 1/1/68 1.5 Nicaraguan Hotel Co. — U.S. guaran teed 6% note, maturing June 1, 1987. .1/8/68 12.0 Republic of Portugal -- notes due 1 >68. ate: For retrospective data on aggregate foreign corporate and government security fferings in the United States see Exhibits 1 and J. There is no simple relationship itween the data shown in the Exhibit and that shown in Exhibits I and J because jthe latter ^eludes privately placed securities in the period in which funds are actually taken down _t only in the amount of takedown while the placements, shown in this exhibit are included len reported, frequently with little or no information concerning timing of takedown, ull or partial takedown may take place both prior arid subsequent to the date a placement s reported. -28—