Full text of H.16 Capital Market Developments : January 2, 1962

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Not f o r P u b l i c a t i o n

j m m B u a >

^

SIX

„OTIHS
January 2 , 1962.

j A;: 4
FEDEhJU HI

13C2

) CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES
( I n c l u d i n g Monthly Review of Capit al Market Developments)

Public s e c u r i t y f i n a n c i n g to o b t a i n new c a p i t a l was i n l i g h t
volume during t h e l a s t two weeks of l ? 6 l and i s expected to c o n t i n u e t o
be l i g h t t h i s week. The only l a r g e i s s u e s o l d during t h e p a s t two weeks
was t h e $157 m i l l i o n F l o r i d a Turnpike Authority i s s u e , s o l d through
n e g o t i a t i o n , o f which $93 m i l l i o n was f o r new c a p i t a l . The h r a t t e r Corp.
r i g h t s o f f e r i n g of $100 m i l l i o n i n subordinate debentures, which was
e x p e c t e d t o e x p i r e i n December, was withdrawn from SEC r e g i s t r a t i o n .
During t h e week ending January 5 , no l a r g e corporate s e c u r i t y o f f e r i n g s
are scheduled but two State and l o c a l bond i s s u e s w i t h par v a l u e o f
$50 m i l l i o n are on the c a l e n d a r .
Bond y i e l d s .
Changes i n bond y i e l d s have been mixed i n recent
weeks. Y i e l d s on Aaa-rated corporate bonds i n c r e a s e d two b a s i s p o i n t s
over t h e p a s t two weeks w h i l e y i e l d s on Baa-rated i s s u e s d e c l i n e d one
b a s i s p o i n t . Y i e l d s on long-term U. S. Government bonds rose t o a new
h i g h f o r the y e a r l a s t week, two b a s i s p o i n t s h i g h e r than t h e average of
the two preceding weeks. Y i e l d s on Baa-rated S t a t e and l o c a l i s s u e s
i n c r e a s e d one b a s i s p o i n t , w h i l e those on Aaa-rated S t a t e and l o c a l government bonds d e c l i n e d two b a s i s p o i n t s .
S h o r t - and intermediate-term i n t e r e s t r a t e s . Y i e l d s on 3-month
and 6-month Treasury b i l l s r o s e t o new highs f o r the y e a r , i n c r e a s i n g 7
and one b a s i s p o i n t s i n the l a s t two weeks, r e s p e c t i v e l y , w h i l e y i e l d s on
3 - 5 y e a r U. S. Government o b l i g a t i o n s d e c l i n e d 3 b a s i s p o i n t s . The
average r a t e o f i n t e r e s t on Federal funds i n c r e a s e d 128 b a s i s p o i n t s
frcm the r e v i s e d l e v e l of the week ending December 15 t o 2 . 8 8 per c e n t ,
matching the p r e v i o u s high f o r the y e a r . The average rate o f i n t e r e s t
on d i r e c t l y placed f i n a n c e company paper with 90-180 day maturity i n c r e a s e d
one b a s i s p o i n t from the average f o r t h e week ending December 15 t o a new
high f o r the year a s most companies are now paying 3 p e r cent on such
paper. A l l other s h o r t - and i n t e r m e d i a t e - t e r m i n t e r e s t r a t e s were unchanged.
SNMA secondary market o p e r a t i o n s . Purchases of mortgages i n t h e
secondary market by the Federal National Mortgage A s s o c i a t i o n advanced
f u r t h e r i n November t o a l e v e l of $112.3 m i l l i o n ; w h i l e s t i l l below e a r l i e r
h i $ i s , t h i s was more than double t h e d e c l i n i n g volume of a y e a r ago. O f f e r i n g s of mortgages, which had r i s e n sharply f o r s i x c o n s e c u t i v e months,
d e c l i n e d moderately in November to
m i l l i o n , compared with t h i s
y e a r ' s low of $26.it m i l l i o n i n A p r i l . S a l e s continued i n l i m i t e d volume.
Stock p r i c e s . Common stock p r i c e s , a s measured by Standard and v
P o o r ' s composite index of 5D0 s t o c k s , d e c l i n e d s l i g h t l y during t h e p a s t
two weeks, c l o s i n g a t 7 1 . 5 3 on December 29. Trading volume was moderate
during t h e week preceding Christmas but picked up c o n s i d e r a b l y toward t h e
end of l a s t week, averaging It. 3 m i l l i o n shares a day f o r the week ending
December 29.




January s e c u r i t y volume. Security f i n a n c i n g t o obtain new
c a p i t a l by both c o r p o r a t i o n s and S t a t e and l o c a l govemmeits i s expected
to be moderate i n January.
Corporations are expected t o o f f e r #600 m i l l i o n of s e c u r i t i e s
i n January, s l i g h t l y more than i n January of the p a s t two y e a r s , but
almost o n e - t h i r d l e s s than the r e v i s e d e s t i m a t e f o r December which
i n c l u d e s s e a s o n a l l y l a r g e takedowns of p r i v a t e placements. Large i s s u e s
c u r r e n t l y on t h e calendar f o r public o f f e r i n g i n January t o t a l $161 m i l l i o n .
S t a t e and l o c a l government bond s a l e s i n January are expected t o
t o t a l $550 m i l l i o n , the same a s i n December, but more than o n e - f i f t h l e s s
than during January of the p a s t two y e a r s . Large i s s u e s c u r r e n t l y scheduled
aggregate $223 m i l l i o n .
Capital markets i n Decenber. hew s e c u r i t y f i n a n c i n g by corporat i o n s was in s u b s t a n t i a l volume i n December w h i l e the volume of f i n a n c i n g
by S t a t e and l o c a l governments was moderate.
Corporate long-term f i n a n c i n g i n December t o t a l e d #675 m i l l i o n ,
about o n e - t e n t h more than i n November but l i t t l e changed f r a n a y e a r a g o .
The volume of l a r g e p u b l i c l y o f f e r e d i s s u e s , however, a t $255 m i l l i o n , was
the s m a l l e s t s i n c e September, and t h e bulk of the month's f i n a n c i n g was
made up of t h e l a r g e takedown of p r i v a t e placements which u s u a l l y occurs
a t t h e year-end; t h e month's f i n a n c i n g , t h e r e f o r e , had r e l a t i v e l y l i t t l e
impact on market y i e l d s .
Of t h e l a r g e p u b l i c o f f e r i n g s , n o n c o n v e r t i b l e bond i s s u e s amounti n g t o $125 m i l l i o n were i n t h e s m a l l e s t volume s i n c e September, w h i l e
common stock s a l e s of $130 m i l l i o n were i n the l a r g e s t volume s i n c e A p r i l
when t h e l a r g e AT&T i s s u e was s o l d . Underwriters experienced l i t t l e
d i f f i c u l t y in d i s t r i b u t i n g new i s s u e s a t o r i g i n a l o f f e r i n g y i e l d s i n
c o n t r a s t t o a month e a r l i e r when some market congestion developed. The
volume of s e c u r i t i e s s t i l l i n s y n d i c a t e , which had been s u b s t a n t i a l i n
November, was reduced t o a n e g l i g i b l e amount by t h e end of December a s
s e v e r a l s y n d i c a t e s which had l a r g e unsold balances a t the beginning o f
t h e month terminated t h e i r p r i c e agreements and s e c u r i t i e s were sold t o
i n v e s t o r s a t y i e l d s s l i g h t l y h i g h e r than t h o s e o r i g i n a l l y o f f e r e d . Yields
on new o f f e r i n g s a d j u s t e d t o a Aaa b a s i s i n c r e a s e d s l i g h t l y f u r t h e r i n
December, averaging b.39 per c e n t f o r the month, o r 7 b a s i s p o i n t s higher
than i n November a s underwriters a d j u s t e d t h e i r b i d s i n order t o d i s t r i b u t e
t h e new o f f e r i n g s . Y i e l d s on seasoned i s s u e s a l s o i n c r e a s e d during t h e
month with y i e l d s on Aaa-rated bonds i n c r e a s i n g 6 b a s i s p o i n t s t o
per c e n t , only 2 b a s i s p o i n t s below the high f o r the y e a r .
New bond i s s u e s by S t a t e and l o c a l governments t o t a l e d $550
m i l l i o n i n December, o n e - t h i r d l e s s than i n November but o n e - t e n t h l a r g e r
than t h e s m a l l volume s o l d i n December of the two p r e v i o u s y e a r s . Included
i n t h i s new f i n a n c i n g were s e v e r a l l a r g e revenue i s s u e s s o l d by n e g o t i a t i o n ,
i n c l u d i n g the $93 m i l l i o n Florida Turnpike Authority i s s u e which was
o r i g i n a l l y scheduled f o r November, but was delayed pending s e t t l e m e n t of
litigation.
Underwriters- of municipal s e c u r i t i e s encountered l i t t l e




d i f f i c u l t y i n t h e d i s t r i b u t i o n of „ new i s s u e s and t h e i r a d v e r t i s e d i n v e n t o r y
of unsold s e c u r i t i e s d e c l i n e d by more than $150 m i l l i o n t o l e s s than $U00 m i l l i o n .
Y i e l d s on Aaa-rsted S t a t e and l o c a l government bonds did n o t change o v e r
t h e month, i n c r e a s i n g two b a s i s p o i n t s during the f i r s t h a l f o f t h e month
when the bulk of new i s s u e s were s o l d and then d e c l i n i n g a l i k e number of
b a s i s p o i n t s during t h e l a s t h a l f of t h e month when t h e volume of new
i s s u e s was s e a s o n a l l y s m a l l .
Common s t o c k p r i c e s inched up s l i g h t l y f u r t h e r on b a l a n c e i n
December. P r i c e s , a s measured by Standard and P o o r ' s composite i n d e x
of 500 s t o c k s , c l o s e d the month a t 71*53, one per c e n t below t h e record
high reached December 12 but s l i g h t l y above t h e end of November l e v e l .
Trading was a c t i v e throughout t h e month, averaging i*.l m i l l i o n shares a
day, moderately l e s s than t h e vexy s u b s t a n t i a l November average but more
than i n other r e c e n t months.
More d e t a i l e d i n f o r m a t i o n concerning r e c e n t c a p i t a l market
developments i s presented i n t h e a t t a c h e d e x h i b i t s .

Capital Markets S e c t i o n ,
D i v i s i o n of Research and S t a t i s t i c s ,
Board of Governors of t h e Federal Reserve System.




LONG-TERM

BOND

YIELDS

HIGH-GRADE

p«r onnum
LOWER-GRADE




Exhibit B - Tables f o r Exhibit A

-5-

Long-term Bond Yields
High-grade

Date

U. S. Govt,
long-term 2 /

Corporate
Aaa 1 /

(per cent)
1951* - Low
1957 - High
1958 - Low
1959-60 - High
1960 - Low
1961 - High
Low

•Iw2j6 (9/15)
l*.2l (3/17)

Dec. 1
Dec. 8
Dec. 15

It- 38
1*.39
1*.1*2'

^Dec.

22

/Dec. 29 e /

2 . 8 5 (4/23)
l * . l l * (9/27)
3.55 (5/2)
i t . 6 1 (1/29/60)
it. 2 3 (9/9)

2.1*5 (8/6)
3.76 (10/18)
3 . 0 7 (4/23)

U. 1*2 (1/8/60)
3.75 (8/5)
l*.o8 (12/29)
3.70 (5/12)
li.01

1*.05
L06
1*.06
l*.o8

1*.1*1* ^

1*.W*/

State and
local
government
Aaa 3 /

Spread between
U. S. Govt, and
Corporate State and
Aaa
l o c a l Aaa

1 . 9 0 (9/2)
3.1*5 (6/29)
2.61* (5/1)
3 . 6 5 (9/24/59)
2.99 (9/1)

:S
.22

.30
.50
.31*
.92

3.37 ( 7 / 6 )
3.12 (2/23)

• 59
.19
.57
.31*

.1*6

3.31
3.32
3.33
3.32
3.31

.37
.31
.36
.38
.36

.70
.73
.73
.71*
.77

$

Lower-grade
Corporate
Baa 1 /

State and
l o c a l govt.
Baa y

Spread between
Aaa and Baa
State and
Corporate
l o c a l Kovt.

(per cent)
1951* - Low
1957 - High
1958 - Low
1959-60 - High
1960 - Low
1961 - High
Low
Dec.
Dec.
Dec.
Dec.
Dec.

1
8
15
22
29 2 /

3.1*1* (12/31)
5 . 1 0 (11/29)
1*.51 ( 7 / n )

5.36 (2/12/60)
1*. 98 (9/9)
5.13 (10/27)
5 . 0 0 (1*/21)

5.10
5.10
5.11 /
5.11

5.io /

2.93 (a/5)
1*. 5 1 (8/29)
3.61* (5/1)
1*.1*6 (1/7/60)
3 . 9 8 (12/29)

l*.l6 (3/23)
3.93 (11/9)
1*.01
1*.03
l*.Ol*
l*.Ol*
l*.Ol*

.52
1.27
.77
.81*
.71
.81
.66

.96
1.21
.93
1.08

.72
.71
.69
.67
..66

.70
.71
.71
.72
.73

e / Preliminary.
1/ Weekly average of daily f i g u r e s . Average term of boade included i e 23 '26 year#.
2/ Weekly average of daily figure#. The series includes bonds due or callable i n 10 years or more.
3 / Thursday f i g u r e s . Only general obligation bonds are inoludedj average term i s 20 years.
Note.—Ill gha and lows are for individual s e r i e s and may be on d i f f e r e n t dates f o r d i f f e r e n t s e r i e s .
for spreads, high r e f e r s t o widest, and low t o narrowest.




.93
.57

SHORT-

AND

INTERMEPIATE-

TERM

INTEREST

RATES

GOVERNMENT

VV 3 - S YEAR ISSUE!
mis

f

^ ( { \ / r *

A

/

* \ / i
mV'A/
]

\

s

f

F. 1. DISCOUNT BATE.

f

I!

1

V 3 - MONTH 1
Market Yle

1
BANKS

AND

I

:

OTHER'PRIVATE

r:

FINANCE COMPANY PAPEI
Direct ly Placed




STOCK IXCHANCI
CAU LOANS
|^f"" Going Role

BORROWERS

/
/ 1 /

FEDEKAL FUNDS

E x h i b i t D - Tables f o r Exhibit, C
3 i o r t - and I n t e r m e d i a t e - t e r a I n t e r e s t l u t e s
Government
Discount
rate

3-month
b i l l s 2/

1/
1 9 5 k - Low
1957 - High
1 9 5 8 - Low
1 9 5 9 - 6 0 - High
1 9 6 0 - Low
1961 - High
Low
Dec.
Dec.
Dec.
/Dec.
/Dec.

1
8
15
22
2 9 e/

1.50
3.50
1.75

Loo
3.00

3.00

3.00
3.00
3.00

3.00
3.00
3.00

Yields
6-month
bills 2/
(per cent)

.61
3.61*
.58
k.59
2.11
2.66
2.17

(6/11)
(lo/ia)
(5/29)
(1/8/60)
(10/20)
(12/29)
(I/27)

2.56
2.58
2.59
2.61^

3 . 0 2 (12/26)
5 . 0 ? (1/8/60)
2 . 3 8 (12/30)
2.90 (12/29)
2.35 U/28)
2.78
2.88
2.89

1.66
k.Ok
2.1k
5.00
3.10
3.86
3.15

(4/30)
(10/18)
(6/6)
(12/24/58)
(12/30)
(8/11)
(5/12)

3.81;

3.81
3.81

2.90

.26

.66
.86
.Olt

1.81

i l

.38
1.51
.92

.kk
.12
.22
.30
.30
.25
.2k

3.7k

3.82

2.86

2.66/

S p r e a d b e t w e e n y i e l d s on
3 - m o n t h b i l l s and y i e l d s on
6-mo. b i l l s | 3 - 5 y r . i s s u e s

3-5 year
issues 2/

1.18
1.2k
1.25

1.20
.1.20

Banks anfl. Other, P r i v a t e B o r r o w e r s
. Date

Prime
rate 1/

Stock Exchange
c a l l loan 1/

F i n a n c e company
paper 3 /

Federal
funds k /

Spreadbetween
3 - m o . b i l l s und
l'inance co. paper

(per cent)
195k - Low
1957 - High
1 9 5 8 - Low
1 9 5 9 - 6 0 - High,
1 9 6 0 - Low
1961 - High
Low

3.00

3.00

k,5o
3.50
5.50
k'.50
k.50
k.50

k.50
3.50

Dec.
Dec.
Dec.
.Dec.
Dec.

k.5o
k.5o
k.50
k.5o
k.5o

1
8
15
22
29 e /

5.00

•k.50

1.25(12/31)
3 . 8 8 (11/15)
1'.13 (8/8)
5'. 1 3 (1/22/60)
2 . 0 8 (12/30)

k.5o
k.50

2.9k (12/29)
2 . 5 0 (7/7 2 8 '

k.50
k . 50
k.50
k.50
k.5o

2.81
2.83
" i n
2.9k

3.50
.13
k.00
.95
2.88
.k3
1.75

2.20

r/1.60
2.55

2.88

(11/8)
(rV2»)
(5/13/60)
d?/2)
(12/29)
(1/27)

0
.63

-.35

I.02
.22

.56

.11
.25
.23
.3k
.33
.28

l> Weakly rata show* l » , t b i * In e f f e o t at end of period. Dl,count rata l i Tor Inderal Reeerve Baric of N,w York.
St,»ok Exnhant-o call loah r a t , la aolnu r a t i on oell loano oiourod by ouotomorv' 'took exchange eollateral at
York City banks, Prime rate io that ohar#$ed by large banks on ihnrt-ter* loans to buuln.ee borrowers of
the hlpheut oredlt etan.llAS.
2/ Market >tild( weekly average# computed from dully oloolng bid prices. Series of 3-5 year leeues eonolete or
selnotnd notee and bonds.
•
3/ Averse of dolly r a t e , publlehod by flwmce companies for directly pitied paper for varying maturities In the
4/ Weekly ^ e r [ « r * r dully effeotlvo r a t e , which Is the rate for the heaviest vol we of purchase and lale t r a n s i t i o n ,
as reported to the federal Reserve Bank of Now York.
Hot'*.—HI ({lis and lows are for Individual series and may be on d i f f e r e n t dates for different dates for different sorle-.
tar spreads, high r e f s r s to widest, and low to narrowest.




* c h a n g e in series

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
of dollars

OFFERINGS




Exhibit F - Tables f o r Exhibit L

-9-

S t o c k Market
Common

Stock price
i n d e x 1/

Date

1 9 5 7 - 6 0 - High
Low
1961 - High
Low

60.51
39.1t8
7 2 . Oil
58.1*8

November
December
Dec. 1 5
Dec. 22
D e c . 29 p /

71.07
71.71*
72.01
70.91
71.53

(7/31/59)
(12/20/57)
(12/8)
(1/6)

Trading
volume J /
yields 2/ (millions
(per cent) of shares)

Stodk market customer c r e d i t
Customers1
Bank
Total
debit balloans to
a n c e s 1*/
"others" 5 /
(In millions oi dollars)

3.08
1*. 7 2
2.82
3.32

1*.'9
1.1*

1*,761* (4/50) 3 , i i 0 1 (4/69) 1 , 3 7 3 (5/59)
3,551* (1/58) 2,1*02 (12/57) 1 , 0 6 0 (11/57)

5.8
2.7

5 , 1 * 6 0 ( 1 1 / 6 1 ) 1*, lhl( 1 1 / 6 1 ) 1 , 3 7 7 ( 8 / 3 0 )
l*,l*2l*(l/61) 3 , 2 5 3 ( 1 / 6 1 ) 1 , 1 6 1 ( 3 / 8 )

2.82
2.81*
2.81*
2.89
2.86

h.h
l*.l
l*.5
3.5
1*.3

5,1*60

i*,ii*i

1,319

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

1,327
1,335

n.a.—Nbt available.
2 / Prnlln-liiary.
J / Standard and Poor's composite Index of 5UO ooamon stocks, weekly elooliy prloe?, 1941-43*10. Nontlily data are
averages of dally figureo rathor than of M d c y ' s only. Hlghn and lors are for Fridays' data only,
2 / Standard and Poor'o ocmpotlte stock y i e l d based on Wednesday data converted t o weekly closing prices by Federal
Reserve. Yields nhovn are f o r dateo on which price Index reached I t s high or low.
3 / Averages of dally trading volute on the New York Stock Exchange.
4 / End of month f i g u r e s f o r member firms of the Hew York Stock Exchange which carry margin accounts) exclude0 balances
secured by U. S. Government o b l i g a t i o n s .
5 / Wednesday f i g u r e s f o r weekly reporting member banks. Excludes loans for purchasing or e a r n i n g O. S. Ooverraient
F o c u r l t l e s . Prior t o July 1, 1959, such louin are excluded only a t banks I n How York and Chicago. Weekly reporting
banks account f o r about 70 per cent of loans t o o t h e r s . For f u r t h e r d e t a i l see Bulletin.
F e d e r a l N a t i o n a l Mortgage A s s o c i a t i o n S e c o n d a r y Market O p e r a t i o n s 3 /
Purchases
E s t i m a t e d O f f e r i n g s t o FNMA
by
Standby
Immediate
Total
PM-1A
purcha s e .commitment .
( I n m i l l i o n s of d o l l a r s )
1960 - Nov.
Dec.
1961 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.

61.7
53.3
50.1
36.3
33.7
26.1*
35.0
1*7.9
75.7
111.2
122.9
151*. 2
11*1.1*

56.9
51.1*
1*8.1
33.7
29.8
2l*.0
32.2
1*6.9
73.9
108.0
119.3
150.9
138.5

1*.8
1.9
2.1
2.6
3.?
2.1*
2.8
1.0
1.7
3.2
3.6
3.3
2.9

51.2

1*5.5
1*1.2

Is

21.3
25.lt
2lt.lt
52.7

60.1*

92.lt
112.3

Sales
by
INMA
8.9
23.3
26.2
70.7
ll5.lt

165.6
101.lt

17.2
a .
10.5
1.8
2.7

. •—Less than $50,000.
1 / Data represent unpaid principal balances of the mortgages Involved, exclusive of premium, d l s counts, or other charges. Offerings are amounts of applications received during the period from
s e l l e r s propositi t h a t FNMA execute purchasing c o n t r a c t s . An Immediate purchase contract covers
existing mortgages which the s e l l e r must deliver t o FNMA within 45 days. A standby commitment
contract r e l a t e s t o proposed mortgages, on housing not yet under construction, which the s e l l e r
must usually deliver within one ynar. Purchases Include thoue under both Immediate purchases and
irlandby commitment c o n t r a c t s . Data exclude FNMA a c t i v i t y under Special Assistance and Managementand Liquidating Programs,




Exhibit G
Y i e l d s on New Corporate Bond I s s u e s Adjusted t o an Aaa Basis
Amount
Average
Number
of i s s u e s
yield
included
of i s s u e s
(per
included ( m i l l i o n s
cent)
of dollars)

Amount
Average
Number
of i s s u e s
yield
of i s s u e s included'"
(per
included ( m i l l i o n s
cent)
of d o l l a r s )
Monthly a v e r a g e s :
1961 - January
February
March
April
May
July
August
September
October
November
December
Weekly a v e r a g e s :
1561 - January 6
13
20
2?
February 3
10
17
24
March 3
10
17
24
31
April 7
14
21
28
May 5
12
19
26

3
6
4
12
15
18
4
4
2
7
9
3

29.0
97.8
108.0
563.0
151.0
701.5
273.0
115.0
78.8
200.0
229.0
115.0

1
1
1
1
2
3

10.0
7.0
12.0
6.8
48.0
43.0

4

108.0

3
3
2
4
3
1
6
5 .

90.0
82.0
312.0
79.0
165.0
30.0
91.0
165.0

4 . 3 5 June 2
4.31
9
1|.26
16
4.42
23
30
4.51
4.65 July 7
4.62
14
21
4.59
28
4.36
4 . 2 6 August 4
4.32
11
4.39
18
25
September 1
8
15
4.45
22
4.40
29
4.27
4 . 6 1 * October 6
4.32
13
20
4.27
27
November 3
10
17
4.26
24
December 1
4.28
8
4.40
15
22
4.42
29
4.54
4.49 1962
January
5
4.47
12
4.47
4.55'

3
4
6
3
2

60.0
307.0
137.0
130.0
67.5

4.66
4.68
4.68
4.56
4.58

:

1
1
2
2
1
1

8.0
200.0
65.0
55.0
20.0
40.0

4.60
4.64
4.46
4.54
4.73*
4.60

:
r

—

—

1

18.0

4.46

1
2

60.8
45.0

4.36
4.25

2
3
3

60.0
95.0
45.0

4.21
4.28 p
4 . 2 1 At

4
1
1
2
1

94.0
60.0
30.0
75.0
40.0

t'H
4.4o . y
4.29 &
4.55*4

%

;

'A
—rr

n'k

and A by Moody's I n v e s t o r s Service ( e x c e p t s e r i a l , equipment t r u s t and c o n v e r t i b l e i s s u e s , | "
o f f e r i n g s of n a t u r a l gas p i p e l i n e and f o r e i g n companies, and i s s u e s guaranteed by the
Federal Government) weighted by s i z e of i s s u e s . Y i e l d s on Aa- and A-rated bonds are first! 5 '
a d j u s t e d to an Aaa b a s i s , using the comparable spreads In y i e l d s on seasoned bonds (Moody <j|
a v e r a g e s ) . Averages r e f l e c t changes i n i n d u s t r i a l composition, t y p e , maturity, and c a l l *
p r o v i s i o n s of new o f f e r i n g s . Weekly averages considered unusually u n r e l i a b l e a s
H
i n d i c a t o r s of i n t e r e s t r a t e s on new i s s u e s because of the small number or s p e c i a l
t
Digitized
c h a rfor
a c t eFRASER
r i s t i c s of o f f e r i n g s included e t c . are marked with an a s t e r i s k .
§L



Exhibit H
Long-term Corporate and S t a t e and Local Government
S e c u r i t y O f f e r i n g s and Placements
(In m i l l i o n s of d o l l a r s )
Corporate 1 /
| 1961
1

1962
January
February
March

•/600

New c a p i t a l
I960

580
66?
562

570
715
860

April
May
June

2,118
1,259
1,318

761
577
1,01*1*

July
August
September

1,028
762
617

October
November
December
1st
2nd
3rd
4th

e/550

700
611
568

715
689
763
72064l
1,085

719
545
991

736
967
726

E/476
2/601
E/701

492
606
683

fi/1,033
e/800
e/875

890
956
852

e/600
e/800
e/550

348
501
491

1,809
4,695
2,1*37
e/2,708

2,11*5
2,382
2,1*28
2,698

2,168
2,446
e/1,777
e/1,950

1,880
2,256
1,780
1,340

6,50b
8,911
2/11,61*9

4,527
6,955
9,653

4,613
2/6,391
e/8,34l

4,136
5,916
7,257

quarter
quarter
quarter
quarter

1 s t half
Three quarters
Year

S t a t e and l o c a l 2 /
1962
1 1961
1 I960

Excluding f i n a n c e companies 3 /
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

Year

I

1,551
4,552
2,337
e/2,608

1,716
2,165
2,018
2,347

e/11,046

8,246

Estimated.
jy Preliminary.
S e c u r i t i e s and Exchange Commission e s t i m a t e s of n e t proceeds.
Investment Bankers A s s o c i a t i o n of America e s t i m a t e s of p r i n c i p a l amounts.
Total new c a p i t a l i s s u e s excluding o f f e r i n g s of s a l e s and consumer f i n a n c e
companies.




Exliibit I

-12-

New Corporate Security I s s u e s , Type of Issue and Issuer
(In m i l l i o n s of d o l l a r s )

Quarter
or
month

Gross proceeds f o r new
c a p i t a l and refunding 1 /
Common
Mfg.
Total Publicly P r i v a t e l y and
pfd.
offered
offered
stk.

Net proceeds f o r
new capital 1 / 2 /
Public Communi- Other
u t i l i t y cations i s s u e r s

1959 - I
II
in
IV

2,281
2,665
2,062
2,739

787
960
807
1,00k

835
891
859
i,ol*l*

660
811
396
691

358
750
1*68
36U

813
979
1*70
927

105
k3
99
1*60

928
79k
9k2
890

1960 - I
II
in
IV

2,265
2,537
2,520

93k
1,07k
1,336

795
770
751*
955

536
692
1*29
I4I6

298
511
562
625

598
808
652
696

189
lk9
317
381

1,059
913
896
997

1961 - 1
II
III
IV

1,992
5,352
2,566

662
2,303
772

880
1,275
1,139

kk9
1,771
65u

515
1,2*66
935

381
1,081
595

81
1,095
i6z*

832
1,052
803

i960 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

" 6i*i
735
889
805
608
1,12k
- 777
996
7k7
928
1,009
895

321*
253
357
318
186
510
la5
592
329
621
518
323

190
29I4
311
232
220
319
236
229
289
157
357
1*1*1

126
189
221
226
202
265
127
175
128
150
13U
131

59
67
172
171
92
21*9
182
220
161
185
21*9
191

155
21*5
198
303
11*1*
362
126
222
303
203
311*
180 .

36
85
68
52
36
61
57
165
91*
251*.
27
100

319
318
1*22
236
301*
373
370
359
168
21*9
366
381

601
695
696
2,231
l,3k2
1,779.
1,075
813
678
1,101
820

178
273
211
713
666
92li
1*21*
225
123
336
370

29k
255
331
3li8
355
572
392
Hi
336
158
280

129
167
15U
1,170
320
283
259
177
218
30b
170

169
99
21*8
571*
1*1*7
1*1*6
1*28 255
252
293
210

137
160
81*
251*
1*39
389
269
215
111
282
280

21
1*1
19
99k
85
16
16
13
75
25
70

253
368
211
297
289
1*67
315
279
209
l*3l
21*0

1961

Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct. 2 /
Nov. e /
Dec.

2,832 1,162

57 Preliminary.
e? Estimated.
17 Gross proceeds exceed net proceeds
by the c o s t of f l o t a t i o n .
2 / For t o t a l see Exhibit Hj other i s s u e r s are
e x t r a c t i v e , railroad and other transportation, r e a l estate and finance and
forcommercial
FRASERand other.
Source.—Securities and Exchange Commission.

Digitized


Exhibit J
Other Security Offerings
( I n m i l l i o n s of d o l l a r s )
Gross long-term \ J ~
Foreign government 2 /
Federal agency 3 /
1961
T
I960
|
19FF
"195T
I960

6

January
February
March

29
20

April
May
June

29

July
August
September
October
November
December

2

66
5
2

39

81
60
2

252

3h
72
1*0

58
50
1*2

100
11*9
278

ll*8
351*

25
1
36

85
1
35

250

199

193

3k
2
Ui

33
30
70

160
11*9
181

86

51*7

1,672

707

533'

Year

1959

2
175
70

182
150
150

199
175

98
150

Net s h o r t - t e r m Uf
Federal agency 3 /
S t a t e and l o c a l government 5 /
Januaiy
February
March
April
May
June
July
August
September

160
195
-8

•

58
IliO
-80

-1*
181
1*

-11*1*
-162
-171*

-196
-202
-59

-82
176
33

-103
-12
-155

70
-116
-157

197
-25
-197

-79
-8?
20?

-277
170 '
320

50
368
286

109
518
-86

1*8
U5
-175

57
392
131

22
193
108

95
23
-201

362
133
79

-16
*' 5 0
-189

-81
-176
-117

98

-23
-33
-250

280
21*0
1*1*

18

362

October
November
December
Year
g/
1/

-633

1,969

Preliminary.
Theoe date d i f f e r from those i n Exhibit 0 i n that refunding i s s u e s , as well a s new capital issues, are included.
Long-term s e c u r i t i e s are defined am those maturing In more than one year.
2 / Includes s e c u r i t i e s offered In the United States by foreign govcrnaonts and t h e i r subdivisions and by i n t e r national organizations. Source« Securities and Exchange Commission.
3/ Isoues not guarantied by the U. S. Government. Sourcet long-term, Securities and Exchange Commissi on; shortterm , Treasury Department and federal Reserve.
4 / These data d i f f e r from those i n Exhibit 0 and above i n t h a t they represent now offerings lens retirements, whether
from the proceeds of refunding issues or from other funds. Data include only issues with o r i g i n ! maturity of one
year or l e s s .
5 / Principally tax and bond a n t i c i p a t i o n notes, warrants or c e r t i f i c a t e s and Public Housing Authority notes. l a
sons instances PHA notes included may have a somewhat longer term than one year. Sourcei Bond Buyer and
Federal
serve.




Exhibit K

-ill-

Large Long-term Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large I s s u e s Offered
(In m i l l i o n s of d o l l a r s )

Month

i960 - December
1961 - Januaiy
February
March
April
May
June
July
^August
September
October
November
December

Total

Corporate
Bonds
(other than Convertible
bonds
convertibles)

260
11*7
267
70
1,572
557
532
U75
185
168
351
391
255

235
106
230
25
560
1*80
1*35
285
165
78
205
320
125

State
and
local
government

Stocks

222
391
360
1*05
383
256
616
179
281
1*35
326
1*80
307

25
a
37
5
1,010
62
97
115
20
56
81
hS
130

——
——

1*0
15
75
33
67
26

Other 2 /

99
67
25
151
100
73
1*0
250

Large Individual Issues Offered December 1 through 29

Type ]/

Amount
Coupon
(millions
rate or Offering
Maturity
of
net inter- yield
dollars)
est cost

CORPORATE
Deb.
Borden Co.
1 s t mtg bds.
Gen. T e l . Co. of C a l i f .
Deb.
Tenn. Gas Transmission Co.
P a c i f i c Lighting Corp.
Com. s t k .
Cm. s t k .
*Bank of America
STATE AND LOCAL GOVERNMENT
G.O.
Baltimore, Maryland
G.O.
State of Connecticut
Oakland Co., Twelve Town
G.O.
Dreinage D i s t . , Mich.
Rev.
Grand River Dam Auth. ,Okla.
G.O.
New York C i t y , New York
Pa. S t . Pub. Sch.Bldg.Auth. Rev.-Rent.
G.O.
Oklahoma City, Okla.
Florida Turnpike Auth.
Rev.
OTHER
None
'




Rating

50.0
25.0
50.0

1991
1991
1981

h-3/8
h-5/8
5 - iA

2-8.5
25.0

1962-87
1963-82

3.30
3.11

33.7
35.0
53.1

1963-92
2002
1962-86
1962-2000
196U-87
2001

3.83

1.75-U.OO

3*31
3.65

1.70-3.70z A

35.9
9U.1*

23.0

15.9
93.0

U. ii5
k.63
5.15

Aa
A

Baa

1.60-3.50' Aa
1 . 6 0 - 3 . 3 5 Aaa
A

1*.1*0 5 / —

li.85

1.75-U.102/—

2.10-3.60
L80

A

7/ —

K-2

-15-

Footnotes
*—Rights o f f e r i n g .
1 / I n c l u d e s corporate and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and over;
S t a t e and l o c a l government s e c u r i t y o f f e r i n g s of $10 m i l l i o n and o v e r .
2 / I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal a g e n c i e s .
2 / In the case of S t a t e and l o c a l government s e c u r i t i e s , G.O^denotes g e n e r a l
o b l i g a t i o n s ; R e v . - U t . , revenue o b l i g a t i o n s secured o n l y by income from
public u t i l i t i e s ; R e v . - Q . U t . , revenue bonds secured only by revenue from
q u a s i - u t i l i t i e s ; R e v . - S . T . , revenue bonds secured by revenue from s p e c i f i c
t a x e s o n l y ; R e v . - R e n t . , revenue bonds secured s o l e l y by l e a s e payments.
kZ 1986-87 m a t u r i t i e s not r e o f f e r e d .
5/ An a d d i t i o n a l $15 m i l l i o n i n bonds due 1965-88 were s o l d t o refund o u t standing s e c u r i t i e s .
6 / 1997-2000 m a t u r i t i e s n o t r e o f f e r e d .
1/ An a d d i t i o n a l $64 m i l l i o n was s o l d t o refund outstanding s e c u r i t i e s .




-16-

__

Exhibit L

Forthcoming Large Long-term P u b l i c S e c u r i t y O f f e r i n g s f o r New C a p i t a l
( O t h e r than U. S . T r e a s u r y ) 1 /
Expected P r o c e e d s from Forthcoming Large I s s u e s

Date o f
computation
Dec. 30
J a n . 31
Feb. 28
Mar. 3 1
Apr. 28
May 31
June 30
J u l y 31
Aug. 31
S e p t . 29
Oct. 31
Nov. 30
Dec. 29

During month f o l l o w i n g
d a t e shown
S t a t e and
Corporate l o c a l g o v t . Other 2 /
91
110
55
1,580
5*2
W
521
170
175
358
3k6
3#
161

a 2
181
307
559
236
Ii31
195
2*06
399
251
597
295
223

15
75
73
35
.
-

—

Subsequent t o
d a t e shown
S t a t e and
Corporate l o c a l g o v t . Other 2 /
1,036
1,016
1,125
1,700
687
611
666
255
21*0
50U
ia1
li21
591

682

—

360

——

638
806

15

579
771
291
537
530
U5ii
693
1*98
a 5

75
73
35
—

—

Forthcoming Large O f f e r i n g s , a s o f December 29
Type

Amount
Approximate d a t e
(millions
of o f f e r i n g
of d o l l a r s )

CORPORATE
New York Telephone Co.
^Natural Gas P i p e l i n e Co. o f Amer.
^Southern C a l i f . E d i s o n Co.
^Shamrock O i l & Gas Corp.
•KGarrett Corp.
^American T e l . & T e l . Co.
*Duke Power Co.
•K-Stokely-Van Camp I n c .
i
Commerce O i l R e f i n i n g Corp.
R e a l t y C o l l a t e r a l Corp.

Mtg. bds.
1 s t p . l / mtg. b d s .
Com. s t k .
S . F . deb.
Deb.
Deb.
1 s t mtg. b d s .
Conv. sub. d e b .
D e b . , b d s . & com.
Coll. t r . notes

60.0
30.0
26.0
25.0
20.0
300.0
50.0
15.0
1*5.0
20.0

Jan. 10
Jan. 1 0
Jan. 15
Jan. 2l|
Jan.
Feb. 15
Feb. 21
Feb.
Indefinite
Indefinite

STATE AND LOCAL GOVERNMENT
•Commonwealth of P u e r t o Rico
* P o r t of New York A u t h . , N. Y.
Montgomery C o . , Maryland
E a s t Bay Mun. titil. D L s t . , C a l i f .
San J o s e , C a l i f o r n i a
*New York S t a t e
A s c e n s i o n - S t . James Bridge & Ferry
Auth.
Georgia Rural Roads Auth.




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

25.0
25.0
13.2
30.0

Jan.
Jan.
Jan.
Jan.
Jan.
Jan.

30.8

Jan. 15
Jan. 23

20.0
33.0
13.0

3
it
9
9
10
10

L-2

-17-

Forthcoming Large O f f e r i n g s , a s of December 29 (Cont'd)
Issuer

Type

Amount
Approximate date
(millions
of o f f e r i n g
of d o l l a r s )

STATE AND LOCAL GOVERNMENT CCont'd)
*Kansas C i t y , Ho.
•sLos A n g e l e s , C a l i f o r n i a
*Los Angeles School D i s t . , C a l i f .
* S t a t e of New J e r s e y
* 5 t a t e of Michigan
*San F r a n c i s c o , C a l i f .
Orleans P a r i s h Sch. D i s t . , La.
Dade County, F l o r i d a
J a c k s o n v i l l e Expressway Auth.
Los Angeles Dept. of Wtr. & Pwr.

Rev.JJt.
Rer.-Q.Ut.
G.O.
G.O.
Rev.-S.T.
G.O.
G.O.
G.O.
Rev.-Ut.
Rev.-Ut.

18.5
lk.0
35.0
Jt5.0
25.0
27.0
10.0
1*6.0
llO.O
16.0

Jan. 2k
Jan. 31
Feb. 6
Feb. 6
Feb. 6
Feb. 13
Indefinite
Indefinite
Indefinite
Indefinite

OTHER

*—Included i n t a b l e f o r f i r s t t i m e .
1 / I n c l u d e s corporate and o t h e r i s s u e s o f $15 m i l l i o n and o v e r ; S t a t e and
l o c a l government i s s u e s of $10 mill i o n and o v e r .
2 / I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal a g e n c i e s .
N o t e . — D e l e t i o n s f o r reasons o t h e r than s a l e of i s s u e : Kratter Corp. sub. deb.
i s s u e withdrawn from SEC r e g i s t r a t i o n .