Full text of H.16 Capital Market Developments : January 2, 1968
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r DECONTROLLED AFTER SIX MOUTHS "ft* ^ PnhUcjMnn LI3RJWL4 CAPITAL MARKETS DEVELOPMENTS IN THE UNITED STATES #68 January 2, 1968. dtLjQjiTeJ lOuJmf '/£ BANK -JliD frprpirate and municipal bond markets. The volume of new, publicly offered corporate and municipal securities expected during this holiday-shortened week will be considerably below the average weekly volume over the past year. The especially small corporate volume consists mainly of the $15 million Iowa Power & Light first mortgage bond issue. The municipal volume features $78 million of New York State Highway bonds. 1/ Long-term Public Security Offerings (In millions of dollars) Corporate State & local Government! New Cap ita11Re funding New Capital | Refunding! . I Sold: 52 weeks avg. December 22 29 336 r/356 " 60 1 258 Scheduled; January 1/ 3 X/103 88 - • 5 25 125 Federal Reserve estimates are based upon published reports of issues sold and scheduled for offering; corporate rights offerings are included as of date subscription rights expire. Yields on seasoned corporate bonds advanced slightly las week and no new straight debt issues were offered. Since the release December 21 of the unsold portion of the Florida Power and Light b onds, no new issues have even been in syndicate. Yields on municipal bonds were unchanged to slightly hig tier last week, and the reduced volume of new issues was very well received, By the end of the week, 94 per cent of the week's offerings had been sold Private housing starts and permits. Seasonally adjusted housing starts, which had moved ahead of earlier projections in recent months, rose 5 per cent further in November, to an annual rate of 1,556 thousand. The rate, which is significantly above even the most optimistic trade expectations for 1968, reflected mainly a considerably less than seasonal drop in H.14 starts from October to November in the South. In that region, the starts rate advanced 23 per cent after little change in October and reached the highest level in more than three years. All other regions showed declines ranging to as much as 15 per cent (Northeast). While both single and multi-family units shared in the increase in November, the advance continued to be most marked for multi-family units, which reached a four-year high. Government-underwritten starts accounted for 17 per cent of total starts in November. This compared with 18 per cent, in November of other recent years. - Unlike starts, seasonally adjusted building permits dropped moderately in November, to a seasonally adjusted annual rate of 1,162 thousand. Almost all of the decline was concentrated in single-family units, however. Regionally — as in the case of starts -- only the South showed a rise in the rate of permits — 5 per cent. Stock market credit. During November, the growth in stock market credit slowed considerably. Total.customer credit advanced $110 million to $9,644 million. Of the total increase, $91 million occurred in customers1 net debit balances, which rose to $7,202, and $19 million occurred in bank loans to non-brokers, which advanced to $2,442 million. Customers' net free credit balances, meanwhile, declined by $13 million. . Stock prices. Stock prices showed a strong advance last week in extremely heavy trading. During the holiday-shortened week, Standard and Poor's index of 500 stocks rose 1.27 to close Friday at 96.47. Trading volume averaged 12.3 million shares a day, with the second most active day in NYSE history -- 15.0 million shares -- occurring on Friday. More detailed information concerning recent capital market develop-; ments is presented in the attached exhibits. ' f Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. *3- Yields on Security Markets High Grade Notes and Bonds Level Latest Week H. 14 Change f: preceding week Corporate New Seasoned 6.24 U.S. Government Long-term 3-5 year 5.35 5.75 State and local Govt. Moody's Aaa Std. & Poor's high grade 4.15 4.51 Money Market Federal funds Treasury bills 3-month 6-month 4.66 16 4.99 5.49 + 5 Corporate Bonds Still in Syndicate • NONE Blue List of Municipal Dealers1 Advertised Inventories Latest Week 493(12/29/67) End of Previous Week 514 Recent High 849(4/26/67) H.14 STOCK MARKET CREDIT (In millions of dollars) Months Total Outstanding: 1955-56 High Customer Net Debit balances with NYSE member firms Broker & Dealer Credit Credit Customers' Money Bank'loc-ns to others net free Borrowed than brokers and dealers for purchas- Cust. Other credit ipg & carrying- secur. coll. coll. balances I 4,047 (5/56) 2,823 (12/56) 1,255 (4/56) 1,873 430 1,069 (1/55) 1957-58 Low 3,554 (1/58) 2,482 (12/57) 1,060 (11/57) 1 ,344 188 807 (4/57) 1959 1960 1961 1962 1963 1965 4,764 4,142 5,602 4,876 7,298 6,833 1,373 1,121 1,377 1,269 1,727 1,865 2 ,044 318 1 ,801 237 2 ,572 385 1 ,856 235 3 ,892 597 2 ,882 446 - High Low High Low High Low ' 1964 - Dec. 1965 - Dec. 1967 - HDV. (4) (5) (12) (7) (11) (7) 3,401 3,004 4,259 3,562 5,586 4,863 (4) (7) (12) (7) (11) (7) 1,974 2,184 2,442 7,053 7,705 9,644 5,079 5,521 7,202 . 50 91 -98 - 70 48 112 -39 59 393 369 2 -21 -59 11 24 101 107 240 9 8 (5) (5) (8) (9) (12) (2) 3 ,393 2 ,889 .a. 517 687 1,,257 940 1:,508 1 ,091 1 ,211 ,192 . 1, (3) (4) (4) t (9) ? (11) j (8) ' 1,,1*9 1 ,666 2 ,500 j Change in outstanding: Nov. Dec. 1967 - Jan. Feb. Mar. Apr. May V June July Aug. Sept.. Oct. Nov. 161 116 248 467 . 69 293 r/372 "" 110 437 4 218 r/286 91 Note: 60 30 65 75 86 19 45 230 -382 -170 n.a. n.a. n. a. n.a. n. a. n.a. n.a. n.a. n.a. n.a. n.a. n. a. n.a. -30 76 12 105 277 22 199 -57 142 11 110 * I | % % S f 1 7 -60 120 112 % Zi -13 With the exception of bank loan data, figures are reported to the New York Stock by, member.firms carrying margin accounts. Bank loans to others than brokers and dealers for purchasing and carrying securities are for weekly reporting member banks. Net debit balances and customer free credit balances are as of the end of the month; bank loans and money borrowed are reported for the last,Wednesday of the month. Numbers in parenthesis denote month of year. All figures exclude credits on, or to carry, U.S. Govt, securities. Exchange n.a. -- Not available, r/ Revised. EXHIBIT A, Port 1 LONG-TERM BOND YIELDS, HIGH-GRADE CORPORATE Aaa U.S. GOVERNMENT STATE AND LOCAL GOVERNMENT A a a 1963 1964 1965 1966 1967 1968 Exhibit A -- fare il Date 1959-60 - High 1966 - High - Low 1967 - High - Low Dec. I State and U.S. Govt. | local long-term 2/j government Aaa 3/ | | Corporate | Aaa 1/ 1 8 15 22 292/ 4.61(1/29/60) 5.52(9/9) 4.73(1/7) ,6.24(12/29) 5.00(2/10) 6.13 6.14 6.16 6.22 6.24 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) 4.03 4.15 4.15 4.15 4.15 r/ 5.39 5.38 r/ 5.38 5.34 5.35 Spread between U.S.. Govt,. and State and Corporate local Aaa Aaa .92(4/22/60) .59(8/5/60) 1.19(2/11) .84(12/30) .77(9/2) .14(2/18) .92 1.51 .74 .44 r/.74 .76 r/.78 .88 .89 r/1.36 1.23 r/1.23 1.19 1.20 £/ Preliminary. r/ Revised. V 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. 0_ 3/ Thursday figures. Only general obligation bonds are included; average term is 20 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. -6- L O N G - T E R M B O N D Y I E L D S , LOWER GRADE CORPORATE Baa STATE AND LOCAL GOVERNMENT Baa Moody's 1963 1964 1965 1966 1967 1968 Exhibit B — Part II 1 State and local govt. Baa 3/ Corporate Baa 1/ Date Spread between Aaa and Baa State and Corporate local aovt. (per cent) 1959-60 - High Year end - 1965 1966 - High Low 1967 - High Low Dec. Note: 1 8 15 22 29E/ 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 1.08 .39 .62 .31 .81 .37 6.81 6.89 6.93 6.96 6.97 4.68 4.73 4.73 4.73 4.73 .68 .75 .77 .74 .73 .65 #58 .58 .58 .58 For footnotes see Exhibit A. . EXHIBIT C. Pari I 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 6-MONTH BILLS Market Yields 3 - 5 YEAR I S S U E S F.R. DISCOUNT R A T E 3-MONTH BILLS 1963 1965 1966 1967 Exhibit C -- Part II Date 1959-60 - High Year end - 1965 1966 1966 - High Low 1967 - High Low Dec. 1 8 15 22 292./ Discount 1 rate 3-month bills 2/ 1/ 1 | 1 Yields 6-month bills 2/ (per cent) | I 3-5 year issues 2/ Spread between yields on 3-mo. bills and yields on 6-mo. bills|3-5 yr. issues 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) 5.07(1/8/60) 4.66 4.92 5.92(9/23) 4.53(6/24) 5.50(12/15) 3.74(6/2) 5.00(12/24/59) 4.90 4.86 5.83(9/2) 4.80(4/8) .79 .19 .12 .52 .09 5.80(11/10) 4.36(4/7) .62 .01 4.50 4.50 4.50 4.50 4.50 4.92 4.92 4.96 4.96 4.99 5.49 5.49 5.50 5.44 5.49 5.67 5.70 5.74 5.68 5.75 .57 .57 .54 .48 .50 1.81 .43 .06 .01 1.61 1/ Weekly rate shown is that in effect at end of period at the Federal Reserve Bank of New York. 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 for different series. For spreads, high refers to widest, and low to narrowest. .78 .02 .75 .78 .78 .72 .76 EXHIBIT D. Port 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 P R I V A T E BORROWERS Weekly PRIME RATE FINANCE COMPANY PAPER Directly plated 3 6 Monlhi A f F.R DISCOUNT RATE FEDERAL FUNDS 1963 1964 1967 Exhibit D — Prime rate _1 Date Part II Finance company -paper 2/ Spread between 3-mo. bills and Federal funds 3/ finance co. paper (per cent) 1959-60 - High Year end1- 1964 1965 1966 1966 - Low 1967 - High Low Dec. 1 8 15 22. 29 E / 5.00 4.50 5.00 6.00 5.00,(3/4) 6.00(12/29) 5.50(12/1) 6.00 6.00 6.00 6.00 6.00 5.13(1/22/60) 4.06 4.75 5.88 4.75(1/7) 5.75(1/6) 4.38(6/23) 5.25 5.38 5.38 5.50 5.50 4.00(5/13/60) 4.00 4.63 5.63 3.55(1/21) 5.25(1/6) 3.40(10/27) 4.48 4.30 4.55 4.50 4.66 1.02 . 23 .28 1.08 .20 1.33 .21 1.33 .46 .41 .54 .51 2/ Average5of"daily rates published by finance companies for directly placed paper EXHIBIT E, Port 1 STOCK M A R K E T 1941-43 o v e r o g e = 10 100 PRICES 8 STOCK MARKET CREDIT 6 * CHANGE IN SERIES 4 14 VOLUME YIELDS 1963 1964 1965 1966 1967 Exhibit E — Date Stock price index 1/ Stock market customer credit Trading Common Customers' Bank volume 3/ stock debit bal- loans to Total yields 2J (millions (per cent) ances 4/ "others"5/ of shares) (In millions of dollars) 72.04(12/8/61) 52.68(6/22/62) 93.77(2/11) 73.20(10/7) 97.26(10/6) 82.18(1/6) 2.82 3.96 3.01 3.97 3.01 3.58 10.1 2.4 10.7 5.0 12.1 6.9 Oct. Nov. 95.66 92.66 3.06 3.18 . 10.2 10.6 Dec. 15 22 29 £/ 95.03 95.20 96.47 3.09 3.10 3.06 11.5 10.6 12.3 1961-62 - High Low 1966 - High Low 1967 - High Low Part II 5,602(12/61) 4,259(12/61) 1,418(5/9/62) 4,424(1/61) 3,253(1/61) 1,161(3/8/61) 7,997 5,835 2,241(7/6) 5,169 7,302 2,097(12/14) 2,507(11/1) 7,111 9,534 5,200 2,055(1/25) 7,345 r/9,534 i77,111 n.a. n.a. n.a. 2,423 2,442 2,451 2,445 n.a. n.a. Not Available, p/ Preliminary. r/ 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. If 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 see Bulletin. w EXHIBIT F Port 1 PRIVATE H O U S I N G STARTS A N D Monthly, annual SEASONALLY ADJUSTED PERMITS DATA HOUSING STARTS BUILDING PERMITS PER C E N T O F U N A D J U S T E D T O T A L STARTS 60; MULTI-FAMILY 40 2*. GOVERNMENT UNDERWRITTEN 1961 1962 1963 1966 0 1967 Exhibit F - Part II Building permits Unadlusted Tvpe of financing Tvpe o housing (seasonally adjusted Seasonally adjustMulti1-2 Unadjusted annual Other family family FHA VA ed annual rate rate) 2/ __ Starts Total Date (Thousands of units) Nov. Dec. - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 2/ 975 931 1,111 1,149 1,094 1,116 1,274 1,233 1,369 1,407 r/1,445 r/1,486 1,556 73 60 59 61 92 ' 114 132 125 125 127 r/121 7/134 116 10 10 10 9 14 12 18 19 15 17 16 19 15 , 60 3 2 48 46 3 3 49 74 4 97 4 5 109 5 101 5 106 6 105 5r/10t 5r/110 4 96 715 20.1 52.7 40.3 19.8 j 759 942 41.8 17.2 19.2 I 894 42.3 I 928 68.8 22.7 30.2 I1,028 83.5 |1,033 92.3 39.8 1,109 34.8 90.6 86.8 1,093 38.4 1,127 39.5 r/ 87.8 r/82.0 r/39.8 1,159 r/86.1 r/48.4 ^1,212 70.4 45.1 1 1,162 Ji 1/ Total starts are Census estimates including farm for both permit-issuing and non-issuing areas. A dwelling unit is started when excavation begins; all units in an. apartment structure are considered started at that time. FHA and jVA starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit? is started when j a field office receives the first compliance inspection report, which is made before footings are poured in some cases but normally after the foundations have been completed. Capehart military housing units are excluded. Other startsJare derived as a residual, although total and FHA and VA starts are not strjictly comparable in concept or timing; other starts iclude both units financed by conventional mortgages and units without mortgages. 2/ Building permits before January 1963 are Census estimates for about 10,000 areas identified as having a local building permit system in 1959. Estimates beginning January 1963, are for approximately 12,000, or all known, permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per month, as well as otljer differences in timing and coverage. r/ Revised. ]>/ Preliminary. EXHIBIT G, Port 1 YIELDS O N NEW A N D SEASONED CORPORATE B O N D S 6.5 Adjusted to Aoa . Basis NEW ISSUES 6.0 5.5 5.0 SEASONED Aaa 4.5 4.0 1964 1965 1966 1967 1968 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') Am11. of issues Average yield included (mill. (per cent) of dollars) Monthly averages: 1967 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Weekly averages: High Low 6 7 20 20 14 23 14 . 17 10 15 13 5.38 5.20 5.31 5.39 5.66 5.79 5.78 5.89 5.88 6.12 6.53 496.0 481.d 1,073.0 916.0 570.0 993.0 772.0 1,125.0 358.0 716.0 356.5 Oct. 6 13 20 27 3 3 3 3 68.0 118.0 85.0 295.0 6.14 6.07 6.34 5.99 Nov. 3 10 17 24 3 2 4 150.0 40.0 85.0 6.13 6.37 6.59 231.5 230.0 125.0 6.51 6.55 6.42* Dec. 15 22 i , ,, 29 r-i —roffering yields on all new issues of publicly offered 6.59(11/17) S.I 1(2/10) liiliflllliilPr' - . y a, • - 1 of the offerings included are denoted by an asterisk. o "l Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) New Capital Corporate 1967E/ 1966 p/ 1.965 State and local l! 1967 1966 p/ 1965 1,648 1,398 2,317 1,302 1,237 2,446 • 1,482 1,196 1,438 1,188 858 865 804 872 904 April May 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 July August September 2,457 2,406 I,723 1,039 1,670 1,382 1,290 850 1,392 941 852 2/1,256 701 773 1,020 986 648 966 p/2,296 e/1,475 e/2,150 829 1,085 1,635 924 I,325 1,496 1/1,275 975 755 969 940 794 1,021 754 5,363 6,058 6,586 e/5,825 4,985 4,974 4,091 3,550 2,738 4,789 .3,533 3,745 4,116 3,827 p/3,049 e/3,100 2,911 3,235 2,494 2,664 2,580 2,722 2,600 2,569 II,421 18,007 s/23,832 9,959 14,050 17,601 7,527 II,060 14,805 7,943 p/10,992 e/14,092 6,146 8,640 11,304 5,302 7,902 10,471 January February March . October November December 1st Quarter 2nd Quarter. 3rd: Quarter 4th Quarter 1st half Three quarters ' Year . 795 746 1,-197 . Excluding finance companies 3/ 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 5,207 5,913 Year e/ Estimated by Federal Reserve. 2,547 4,8S-'» 4,348 3,969 3,492 3,283 3,188 17,2 69 13,366 e/ el 925 • it Exhibit I | | New Corporate Security Issues, Type of Issue and Issuer \ (In millions of dollars) • Quarter : or 4; Month .966 - III .IV Net proceed:s Gross proceeds for new capital and refunding 1/ for new capital : 11/ 2/ Total Bonu s Common Memo: Publicly •'rivately and Other Foreign Mfg. Public CommuniOffered Placed pfd. issues Utility cations Issuers stock included 1,627 4,197 2)256 314 154 1,558 657 567 1,309 3,669 2,047 1,247 375 117 1,232 984 918 417 .967 - I II III 5,464 6,208 6,834 3,263 4,017 4,604 1,811 1,465 1,552 390 726 678 60 65 234 2,442 3,014 2,792 997 1,268 1,219 543 548 595 1966 - Nov. Dec. 1,115 1,662 569 980 435 555 111 127 27 24 228 673 320 409 168 152 I 369 401 1967 - Jan. 1,684 F<?b. 1,418 Mar. 2,362 Apr. 2,016 • May. 1,519 June 2,673 July 2,590 Aug. 2,481 : Sept; 1,763 Oct. r/ r/2,417 ! Nov. e/ 1,520 745 900 1,618 1,368 965 1,884 1,889 1,813 902 r/1,375 620 848 362 * 601 410 396 659 487 418 647 r/572 550 91 156 143 238 158 330 214 250 .214 470 350 35 10 15 16 32 17 213 13 8 40 n.a„ 624 563 1,254 1,128 588 1,298 925 1,229 637 918 675 220 274 503 394 403 471 446 509 265 573 410 293 105 145 107 91 350 39 j 356 200 j 132 | 511 456 415 343 393 492 1,046 313 620 673 335 55 1,382 1,228 1,979 I Preliminary, e/ Estimated by Federal Reserve. Gross proceeds exceed net proceeds by the cost of flotation. | For total see Exhibit H; other issuers are extractive, railroad and otherj transportation, real estate and finance, and commercial and other. j i SOURCE: Securities and Exchange Commission. I f £/ 1/ 2/ . Exhibit J• Other Security Offerings (In millions of dollars) Gross Long-term 1/ Federal Agency 3/ Foreign Government 2/ 1965 1966 1967 1,251 783 750 650 810 650 407 250 599 708 January February March :\pril August October November December 6,858 1,181 503 410 392 699 1,030 1,084 799 400 450 800 239 129 185 325 - 5,767 6,806 1,803 2,732 775 239 150 375 375 179 Year New short-term 4%" te and local Government January Fehru.iry an si r: l ember October November December I ! ! i |. 1 I j -179 -552 -454 -559 109 93 -158 -262 1,407 606 308 -24 450 718 85 284 -590 -270 -652 -555 -283 219 -137 -174 117 -11 509 237 132 206 105 -309 202 -76 51 246 182 675 801 •a* i | Year Reserve. 1,286 H. 14 Exhibit K Large Long-term Public Security Issues for New Capital (Other than U. S. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) Corporate Total 1966 Nov, Dec. 1967 - Jan. Feb. Mar. Apr. , May June July Aug. Sept. Oct. Bonds (other than convertibles) Convertible bonds 363 990 611 709 1,435 956 771 1,072 890 1,288 473 897 • 4H 97 118 30 40 140 213 55 409 317 350 257 285 150 510 1,177 681 842 1,638 1,311 870 1,666 1,340 1,705 794 1,458 826 Stocks State and local governments 50 68 40 93 63 142 44 185 .133 67 65 276 215 Other 2/ 55 60 230 530 1,000 540 391 825 85 221 400 50 845 464 779 947 675 669 512 496 875 483 473 847 505 865 Large Individual Issues Offered During December. Issuer Type 2/ Amount (millions of dollars) Corporate Bliss & Laugh 1 in Industries Conv. Debs. 15.0 1st mtg. bds. 80.0 Pacific Gas & Electric Twentieth Century-Fox Conv. sub. debs. 28.1 1st mtg. bds. Inland Steel 50.0 Virginia Electric & Power Company 1st mtg. bds. 50.0 Pacific Northwest Bell Telephone Debs. 50.0 Public Service Electric and Gas Pfd. stk. 25.0 Conv. debs. Ralston Purina 40.0 Conv. sub. debs. Offshore Company 35.0 Natural Gas Pipeline of 1st mtg. p. 1. bonds 50.0 America Control Data Debs.& stk. units 101.0 Debs. Bendix 125.0 Allied Supermarkets Conv. sub. debs, 20.0: He liner ich & Payne, Inc. Conv. debs. 27.5 General Telephone & Electronics Conv. debs. 150.0 Maturity Coupon rate or net inter* est cost Offering vleld 1987 1999 1992 1992 5-3/4 6.92 5-3/4 6.50 5.7f» 6.8C 1 5.7f; 6.5Cl Ba Aa B Aa 1997 6.89 6.8C i Aa 2007 6.71 6.6! Aaa 1992 1992 4-7/8 5 4.8£ 5.0C Baa B 1987 1987 1992 1987 1987 6-3/4 5-1/2 6-5/8 5.75 5.00 1992 5.00 Aa Baa A B B 5.00 Ba Large Individual Issues Offered During December. Issuer Type Amount (millions Maturity of 1 dollars) (Cont'd) Coupon rate or Offernet inter- ing est cost yield Rating Corporate (Continued) Granite Equipment Leasing Revere Copper & Brass ^International Silver Ozark Airlines Conv. Conv. Conv. Conv. debs. debs. debs. debs. 6.00 5.50 5.00 6.75 15.0 56.0 35.6 15.0 1987 1992 1993 1988 28.0 1969-86 30. C1 52.0 54.7 11.0 79.4 22.6 30.0 10.0 1969-93 4.59 3.75-4.60 1971-83 4.22 3.90-4.20 1969-2016 4.40 3.70-4.50 1968-87 4.22 3.60-5.50 6 1990 6.00 1971-78 4.60-5.15 4.60-5.15 1969-89 4.46 3.75-4.40 1968-88 4-1/4 3.70-4.25 Aaa Aaa Aa Aa Baa Baa Aaa Aa 138.7 17.0 13.9 23.0 12.0 17.8 25.0 21.8 20.4 25.6 1968-2008 1969-88 1992 1987 1970-76 1987 1976-98 1969-92 1970-80 1992 . 4.38 4.19 5.40 4.40 4.40 5-3/4 4.28 4.67 n. a. n. a. Aaa Aaa 362.0 250.0 15.0 1970 1969 1982 6.20 6.10 7-1/4 6.00 5-1/2 . 5 . 6-3/4 B —— Ba B State & local Government Chicago, Illinois G.O. Los Angeles Unif. Sch. Dist^ California G.O. Maryland (State of) G.O. Massachusetts' (State of) G.O. Henrico C 3., Virgina G.O. Scottsville, Alabama Rev.-Rent. Scottsville, Alabama Rev.-Rent. San Antonio, Texas Rev.-Rent. Middlesex Co., Mass.z G.O. Housing Assistance Administration Bonds Richmond, Virginia G.O. Huntsville, Alabama Rev.-Rent. Spartanburg Co., S. C. Rev.-Rent. Spartanburg,Co., S. C. Rev.-Rent. Iberville Parish, Louisiana Rev.-Rent. Texas (State of) G.O. Georgia Education Auth. G.O. Union City, Tennessee Rev. -Rent. Union City, Tennessee Rev.-Rent. Other Federal Land Banks Bonds Bonds FNMA Komatsu Mfg., Tokyo, Conv. debs. ; 4.63 . 4.60-4.70 3.40-4.42 . 3.65-4.20 5.40 4.40 4.40-5.00 5.75 3.90-4.40 3.70-4.72 4.40-5.15 5.38 6.20 6.10 7.25 A .< — A A A Aaa Aa A A —* * 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 Development 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/ Units, comprising $50 of debentures and one-third share of stock, priced at $90. Outstanding stock trading at about $155 per share. ! . H.14 -2 sExhibit L 1 •i Forthcoming Large Long-term Public Security Offering for Haw Capital (OthertiianU.S. Treaaury) 1/ Ejected Proceed* from Forthcoming Large Xaauea (In milliona of dollara) i During month following date shown State and Corporate Other 2/ local stovt. i 56 - Nov. Dec. 57 - Jan. Feb. Mar. 1 Apr. May ; June July Aug. f. Sept. Oct. Nov. 30 30 31 28 31 30 31 30 31 31 30 31 30 496 939 780 508 227 326 596 401 512 783 768 505 865 1,098 656 486 1,410 767 963 1,449 1,636 1,261 694 534 1,357 826 80 530 250 70 100 40 -- 100 65 50 845 Corporate 1,133 811 706 1,534 905 1,262 2,065 1,922 1,576 1,335 1,090 2,694 2,129 Subsequent to date shewn State and local govt. 571 - 1,154 851 528 247 346 616 402 575 903 889 743 1,684 Other 2/ 65 95 545 265 15 85 115 70 150 , 159 126 260 875 Forthcoming Large Offerings as of December 29,1967. Iaauer 1 Corpw^e ; Iowa Power & Light i Crucible Steel ; Central Power & Light ' Northwestern Bell Telephone j Abbott Laboratories ; *Connecticut Light & Power Co. •Connecticut Light & Power Co. ! *Illinois Power Co. *E1 Paso Natural Gas ^Minnesota Power & Light *Texas Power & Light *0klahoma Gas & Light ; ^Carolina Tel. & Tel. f *United Nuclear Corp. i *Standard Oil of Indiana Montana Power U.S. Steel General Tel. Co. of Illinois •Western Airlines Type 1st mtg. bds. Debs. 1st mtg. bds. Debs. S.F. Debs. 1st mtg. bds. Pfd. stk. 1st mtg. bds. Conv. debs. 1st mtg. bds. 1st mtg. bds. 1st mtg. bds. Conv. sub. debs. Conv. debs. Debs. 1st mtg. bds. Debs. Debs. Conv. debs. Amount (milliona of dollara) 15.0 30.0 28.0 100.0 25.0 20.0 15.0 25.0 60.0 18.0 25.0 25.0 22.6 30.0 200.0 30.0 225.0 20.0 30.0 Approximate date of offering January 3 January 9 January 9 January 10 January 10 January 16 Janaury 16 January 16 Janaury 17 January 17 January 23 January 24 January 30 (rts. exp.) January January Indefinite1 Indefinite Indefinite Indefinite r L-2 Forthcoming Large Offerings as of December 29. (Cont'd) Issuer Type Amount (millions of dollars) Approximate date of offering State & local Government G.O. *State of New York G.O. Columbus, Ohio G.O. *.Fairfax Co., Virginia *Houston I.S.D., Texas G.O. Milwaukee Co., Wisconsin G.O. G.O. *State of Washington G.O. Honolulu, Hawaii Rev. -Ut. Omaha Public Power Dist. *St. Louis, Missouri G.O, *Montogomery Co., Rockville, Md. G.O. *State of Oregon G.O. *Jackson, Mississippi G.O. Rev.-Q.-Ut. Kentucky Turnpike Authority Rev. -Rent. Calcasieu Parish, Louisiana 78.0 17.7 15.0 17.0 13.7 41.5 10.0 45.0 20.0 17.0 10.7 10.0 120.0 62.7 January 3 January 3 January 3 Januaryf January 9 January 10 January 10 January 11 January 16 Janaury 23 January 23 January 30 Indefinite Indefinite j Other •Province of Nova Scotia *Quebec Hydro-Electric Commission New Zealand Debs. 35.0 January * Debs. Bonds 50.0 15.0 January Indefinite 1 I • • 1 *—Included in table for first time. j 1/ Includes corporate and other issues of $15 million and over; State and local Governme~ 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. • | NOTE; New York State Dormitory Authority's $48 million issue and Cheyenne Wyoming's $65 f million issue were postponed. ' 1 -zt- I Exhibit M Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Date Public Offerings Amount (millions of dollars) Issuer and Description of Issue A. Sold October 1 through December 29, 1967. 10/4 15.0 New Brunswick Electric Power Commission 6-1/2% S.F. debentures maturing 1992, reoffered to yield 6.60%. .10/17 35.0 Province of Nova Scotia -- 6-1/2% of S.F. debentures maturing 1992, reoffered to yield 6.75%. 11/14 75.0 Province of Ontario ~ 6-7/8% debentures maturing 1997, reoffered to yield 6.96%. 12/5 15.0 Komatsu Manufacturing, Tokyo, 7-1/4% convertible debentures, maturing 1982, reoffered to yield 7.25%. B. Prospective Offerings Indefinite New Zealand — 15.0 * - Included in table for first time. ** - Issues sold to investors outside of U.S. *** - issue subject to interest equalization tax. - f Bonds *** M-2 PART lis Private Placements - Reported November 1 through December */9, 1967. Date Reported - Amount (millions of dollars) Issuer and Description of Issue .11/27 .8 Metropolitan Corp. of Greater Winnepeg (Canada) 6-1/2% debentures maturing November 1, 1982 -- nd information available on takedown. 11/27 4.2 Metropolitan Corp. of Greater Winnepeg (Canada) 6-1/27= debentures maturing November 1, 1987 -- no information available on takedown. T ^ 12/1 30.0 ALgoma Steel Corp., Ltd. (Canadian)--7-3/8% debentures maturing Oct. 1, 1987 -- no information available on takedown. 12/1 12.0 Institute Nacional de Industria (an autonomos entity of the Spanish State) -- loan due 1971-72. 12/18 16.2 12/18 3.5 12/25 10.0 Ottawa, Canada — debentures maturing 1968-97, Vancouver, British Columbia — tures maturing 1992. 6-1/2% deben- Twin Falls Power Corp, Ltd.. — 1st 6-1/4% maturing January 30, 1989, no information available on takedown. Note; For retrospective data on aggregate foreign corporate and government s e c u r i t y f offerings in the United States see Exhibits I and U. There is no simple relationship ; between the data shown in the Exhibit and that shown-in Exhibits I and J because the latter includes privately placed securities in the period in which funds are actually taken down 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 takedown. Ful! or partial takedown may take place both prior and subsequent to the date a placement is reported. —7"