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Not for Publication DECONTROLLED AFTER SIX MONTHS
January 20, 1964.

. Hr.14 - ———-5

;

|

PITAL-MftRKETS DEVELOPMENTS
IN THE UNITED STATES

(Including Review of Corporate Securities Sold During
1963 to Retire Outstanding Obligations)
J

The volume of public security financing to obtain new capital
was very substantial last week and will not be much smaller this week.
Last week, ended Januarv^jy^j-e $40 million corporate issue and four large
State and local gove?Sen^bond issues with par value of $234 million
were sold. This week, ending January 24, three large corporate issues
aggregating $97 million (including expiring rights offers) and three
State and local issues totaling $141 million are scheduled for sale.
Bond yields. Changes in yields on seasoned long-term bonds
were mixed but minor last week. Yields on Aaa-rated corporate bonds
edged up a basis point to 4.38 per cent, the highest since late March
1962. Aaa-rated State and local government bond yields, however, after
three weeks of stability, dropped a basis point to 3.10 per cent, and
yields on lower-grade municipals also fell one basis point to 3.56 per
cent. U. S. Government and Baa-rated corporate bond yields were unchanged.
Yields on new corporate
averaged 4.44 per cent last week,
the previous week. This decline,
because of the small size of last

bonds, adjusted to an Aaa basis,
six basis points below the average for
however, was probably not representative
week's only eligible issue.

Short- and intermediate-term interest rates. Rates on 3-month
Treasury bills rose a basis point to 3.54 per cent last week, but those
on 6-month bills eased a basis point to 3.65 per cent. Yields on 3-5
year U. S. Government obligations declined one basis point to 4.07 per
cent. The average effective Federal funds rate continued at 3.50 per
cent. Other rates were unchanged.
Housing starts and permits. Seasonally adjusted private
housing starts, which had dropped sharply in November, increased by
3 per cent in December to a seasonally adjusted annual rate of 1,597
thousand, including farm. This was 13 per cent below the recent peak
in October and 2 per cent above December of 1962.
For 1963 as a whole, starts totaled 1,589 thousand--9 per cent
above a year earlier and 5 per cent higher than the advanced level in 1959
when the new Census series began.
On a three-month moving average basis, starts in the OctoberDecember period were at an annual rate of 1,667 thousand, down 3 per cent




H. 14

-2-

from the high in the previous period and 7 per cent above the same period
in 1962.
Starts financed without Government-underwritten mortgages
represented 79 per cent of total starts in December. This share which
tends to decline at this season of the year, about matched the proportion
a year earlier. For all of 1963, the average proportion was 81 per cent,
compared with 77 per cent during 1962 and 71 per cent in 1959.
Seasonally adjusted building permits in_December rose to a
new high for this series, following a moderate decline in November. The
rise was due entirely to a very substantial expansion in permits for
structures of 5-or-more units to a rate 44 per cent above the rate at
the end of 1962.
Stock market credit. Customer credit in the stock market in
December fell $96 million from the November peak to $7.2 billion at the
end of 1963. This decline reversed an almost continuous increase in the
use of customer credit amounting to about 50 per cent since July 1962.
In early November, margin requirements had been raised from 50 to 70
per cent. A $15 million increase in bank loans to other than brokers
and dealers for purchasing or carrying securities (except U. S. Governments) only partially offset a decline of $111 million in customers'
debit balances (excluding U. S. Government securities).
Money borrowed by member firms of the New York Stock Exchange
(except on U. S. Government securities) declined $13 million, and customers'
free credit balances fell $9 million. More detailed information on stock
market credit in November and December is shown in the following table.

End of
Dec. 1
Customer credit
Excluding U. S. Government securities - total
7 ,202
Net debit balances
5 ,475
Bank loans to "others"
1 ,727
26
Net debit balances secured by U. S. Govt, securities
""-Bank loans to "others" for purchasing or carrying
U. S. Government securities
140
Broker and dealer credit
Money borrowed except on U. S. Govt, securities
On customer collateral
Money borrowed on U. S. Government securities
Customers' net free credit balances

4.,444
3.,849
32
1,,202

Month
Change
Nov.
7 ,298
5 ,586
1;,712
34

-96
-111
+15
-8

90

+50

4.,457
3.,892
28
1,,211

-13
-43
+4
-9.

Stock prices. Common stock prices increased somewhat further
on balance last week in very active trading. Prices, as measured by




H. 14
Standard and Poor's composite index of 500 stock prices, closed at 76.56
on January 17, only slightly below the all-time high reached earlier in
the week. Trading volume averaged 6.1 million shares a day, the highest
since late November.
CORPORATE SECURITIES SOLD DURING 1963
TO RETIRE OUTSTANDING SECURITIES
Corporations took advantage of the relatively low level of
interest rates prevailing during most of 1963 to refund a substantial
volume of previously-issued high-coupon bonds. Net proceeds of corporate
security sales for refunding last year totaled $1.5 billion, twice the
previous year's total and the largest volume since 1954. This refunding
represented primarily financing of electric and gas utilities and, to a
lesser extent, of American Telephone and Telegraph Company and its subsidiaries.
The bulk of the refinancing took place in the first half of
1963 when $1.1 billion in securities to retire outstanding issues were
sold. After mid-year, yields began to rise and the advantage to refunding
many high-grade securities began to disappear. As a result, refinancing
dropped off in the last half of the year to around $0.5 billion, one-tenth
less than in the corresponding period of 1962 when refunding was increasing.
Detail for public offerings. Nine publicly-offered bond issues
were sold during July-December last year to raise funds to retire $203
million in outstanding securities.* (For details on refunding issues sold
in the first half of 1963, see Capital Markets Developments in the United
States for the week of July 8.) The table on the following page presents
details on each of these new issues and on the issue, or issues, which
their proceeds were used to refund. Issues are grouped into two categories:
Group A--amounting to $159 million—is comprised of issues refunded primarily
to reduce interest costs, while Group B—totaling $44 million—includes
issues refunded for other reasons.
All the issues refunded to reduce interest cost were sold in
the years 1957, 1959 or 1960 when yields on new issues were appreciably
higher than during this recent six-month period. The issues sold in the
latter two years probably could not have been refunded at lower costs
until 1962. Of the two issues sold in 1957, the Michigan Wisconsin Pipe
Line Co. bonds could probably have been refunded in 1958 at even greater
interest savings than last year, but restrictions in the indenture of the
Southern Bell Telephone Co. bonds prevented refunding that issue prior
to late 1962.

*/

Most of the remaining $280 million of securities sold to refund
outstanding securities were private placements for which available
information does not permit detailed analysis.




-4-

H. 14

Issuers were able to place issues in Group A at rates that
ran 57 to 122 basis points lower than those on the issues they were to
refund. The difference in interest costs between the refunded issue
and the issue refunded, however, does not measure the interest savings
to the issuer because most issues are callable only at a price above
par. The effect of call prices on total interest savings in a refunding
operation can be illustrated by the $70 million Southern Bell Telephone
Co. refunding. This issuer was able to place its new issue at 57 basis
points lower cost than the issue it refunded, but the latter had a call
price of 106.32 payable to holders. This was equivalent to roughly 27
basis points a year on the refunded issue, so the net interest savings
on the refunding amounted to about 30 basis points, or roughly $4.8
million to the original redemption date of the old issue (in addition
maturity was extended 17 years).
Both issues in Group B replaced securities about to mature
at higher interest costs.
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.




H.14
-5New Corporate Bond Issues Sold During the Second Half of 1963
for the Purpose of Refunding Outstanding Securities

Date
Sold

Issuer

Group A:
Sierra Pacific Power Co.
To refund:
Michigan Wise. Pipe Line
Co.
To refund:
Southern Bell Tel. Co.
To refund:
Jersey Central Pwr. & Lt.
Co.
To refund:
Wisconsin Public Service
Co.
To refund:
,,Brockton Edison Co.
To refund:
Puget Sound Pwr. & Lt. Co.
To refund:

Type

Ma turity

of
issue

Coupon
rate

Cost to
issuer
(in per
cent)

Call
price

Sold Primarily to Reduce Interest Cost
Deb.
Deb.

1993
1985

5
5-5/8

4.89
5.57

106.87

30.0
24.6
70.0
70.0

1st mtg. bds.
1st mtg. bds.
Deb.
Deb.

1983
1977
2003
1986

4-7/8
6-1/4
4-3/8
5

4.77
5.99
4.34
4.91

106.32

10/63
5/60

18.5
8.5

1st mtg. bds.
1st mtg. bds.

1993
1990

4-1/2
5-3/8

4.46
5.26

107.20

10/63
10/59
10/63
6/59
11/63
10/59
4/60

15.0
7;8
5.0
5:0
40.0
20:0
20.0

1st
1st
1st
1st
1st
1st
1st

1993
1989
1993
1989
1993
1989
1990

4-3/8 . 4.39
5-1/4 5.19
4-1/2 4.48
5-1/4 5.22
4-5/8 4.65
5-1/2 5.49
5-3/8 5.36

106.30
105.85

1988
1964

4-3/4
4-1/2

4.81
4.61

100.00

1983
1963

4-5/8
3

4.53
2.96

100.00

7/63
7/60

8.0
3.0

7/63
6/57
8/63
6/57

Group B:
Atlantic Coast Line
Railroad Co.
To refund:
Public Service Electric
& Gas Co.
To refund:

Amount
(millions
of
dollars)

mtg.
mtg.
mtg.
mtg.
mtg.
mtg.
mtg.

bds.
bds.
bds.
bds.
bds.
bds.
bds.

-*

106,74

106.07
105.88

Sold Primarily for Other Reasons

9/63
4/27
10/63
11/48




20.0
8.1
40.0
36.0

1st mtg. bds.
gen. mtg. bds.
Deb.
Deb.

1

LONG-TERM B O N D YIELDS, H I G H - G R A D E

STAJi AND 10CAI GOVtRHMENl Ae

III

Exhibit A

- Part II
S t a t e and

Corporate
Aaa

1/

U . S. Govt,
l o n g - t e r m 2/

local
government

Spread between
U. S. Govt,
Corporate

A a a 3/

and

S t a t e and
local Aaa

(per c e n t )
1958

- Low

1959-60 - High
1960-61 Low
1961
1962
1963

- High
- Low
- High
Low

3 . 5 5 (5/2)
3.07
4 . 6 1 (1/29/60) 4 . 4 2
4 . 2 1 (3/17/61) 3 . 7 0
4 . 4 6 (9/15)
4.07

2 . 6 4 (5/1)

.22

3 . 6 5 (9/24/59)
2 . 9 9 (9/2/60)

.59

.92

(5/12/61)

.19

.46

(12/29)

3 . 3 7 (7/6)

.57
.30

.76

(4/25)
(1/8/60)

.34

.80

4 . 2 3 (12/28)
4.37(12/27)

3 . 8 5 (12/28)
4.16(12/27)

2 . 8 8 (11/8)
3.18(11/21)

.35

1.05

4.19(3/29)

3.87(1/18)

2.93(3/28)

.21

.89
1.04

Dec.

20

4.36

4.15

3.11

.21

Dec;

27

4.37

4.16

3.11

.21

Jan.

3

4.37

4.15

1.04

10

4.37

4.16

3.11
3.11

.22

Jan.

.21

1.05

4.38

4.16

3.10

.22

1.06

,/Jan. 17 £ /

1.05

n/ Preliminary.
is 22-24 years.
y
Vfeekly average of daily figures. Average t e r m of tends inolud
The series includes bonds due or callable in 10 years or more*
y
Weekly average of daily figures,
3 / Thursday figures. Only general oDiigaxion b o m s are inoi.uaeaj average tern is zu years
B o t e . — H i g h s and lows are f o r individual series and may be on different dates f or different
series, for spreads, high refers to widest, and low to narrowest.




if

"

L O N G - T E R M B O N D YIELDS, L O W E R - G R A D E

V -

LJ-.l_L_Ll_l_i.i_J-1-1J -Ll_l_l. I.J.I

L I I MJ

Exhibit B - Part II
Corporate
Baa 1/

State and
local govt.
Baa 3/

4 . 5 1 (7/11)

3.64

Spread between
Aaa and Baa
State and
Corporate
local govt.

(per cent)
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - Low
1963 - High
Dec.
Dec.
Jan.
Jan.
v-Jan.
Note»

20
27
3
10
17 £/

5 . 1 3 (10/27)

4 . 1 6 (3/23)

4.92 (1^21)
4.93(1/4)
4.83(11/15)

3.63(6/27)
3.52(5/23)

.77
.84
.66
.81
.63
.71.47

4.85
4.85
4.84
4.84
4.84 z

3.62
3.60
3.56
3.57
3.56

.49
.48
.47
.47
.46

(5/1)

5.36 (2/12/60)

4 . 4 6 (3/7/60)

4 . 9 8 (9/9/60)

3,-93 (11/9/61)

For footnotes see Exhibit A.




3 . 5 2 (5/17)

.93
1.08
.57
.93
.56
.63
.44
.51
.49
.45
.46
.46

SHORT- AND

INTERMEDIATE-TERM INTEREST RATES/ G O V E R N M E N T

Exhibit C ^ Part II
Date

Discount
rate

3-month
bills 2/

Yields
6-month
bills 2/
(per cent)

3-5 year
issues 2/

Spread between yields on 3month bills and yields on
6-mo. bills 13-5 vr. issues

1958 - Low
1959-60 High
1960-61 Low
1961-62 High
1962 - Low
1963 - High
Low

1.75
4.00
3.00
3.00
3.00
3.50
3.00

.58
4.59

(5/29)
(1/8/60)

2.11

(10/28/60) 2 . 3 5 (4/28/61)3.15 (5/12/61)

.12

2.97

(7/13/62)

2.65 (6/8)
3.55(11/15)
2.88(3/15)

2.74 (6/8)
3.68(12/6)
2.93(3/8)

3.41 (12/28)
4.07(12/27)
3.44(1/18)

.44
.02
.17
.04

.04
1.81
.38
1.51
.52
.70
.42

Dec.
Dec.
Jan.
Jan.
Jan.

3.50
3.50
3.50
3.50
3.50

3.53
3.52
3.52
3.53
3.54/

3.67
3.65
3.65
3.66
3.65

4.06
4.07
4.08
4.08
4.07

.14
.13
.13
.13
.11

.53
.55
.56
.55
.53

20
27
3
10
17 £./

1/
2/

3.02 (12/26) 2.14 (6/6)
5.07 (3/8/60) 5.00 (12/24/59)
3 . 1 3 (7/20/62)3.88 (2/2/62)

'

.26
.79

Weekly rate shown is that in effect at end of period at the Federal Reserve Bank of New York.
Maricet yield; weekly averages oonputed from daily 0losing bid'prices. Series of 3-5 year issues
consists of selected notes and bonds.
liote.—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.




.Y>

U H i m t 6, PaiI 1
S H O R T - A N D I N T E R M E D I A T E - TERM INTEREST RATES,
BANKS AND

OTHER

PRIVATE BORROWERS

STOCK l l t H m i
CAll I 0*M$

HHANCt COMPAHY PAMB
I y Ploc • d
3-6 Month

DISCOUNT RATI

-IW

-y*"

I

U6IBAI fUH8$

I I I I I I
f»tl

/

1942

Exhibit D

Date

Stock Exchange
c a l l l o a n 1./

Prime
rate 1 /

- Part II

Finance company
paper 2/

Federal
f u n d s 3/

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

(per cent)
(5/29)

-.35

4.00

(5/13/60)

1.02

.43

(1/27/61)

.11

(12/28/62)

.56

3.50

3.50

1 . 1 3 (8/8)

1959-60 - High

5.50

5.00

5 . 1 3 (1/22/60)

1960-61 Low

4.50

4.50

2 . 5 0 (8/5/61)

1961-62 - High

4.50

4.50

3 . 2 5 (7/20/62)

3-00

1958

- Low

4.50

.13

.19
.36

1962

- Low

1963

- High

4.50

4.50

2 . 8 8 (6/1)
3.88(12/27)

1 . 3 0 (1/26)
3.50(12/27)

Low

4.50

4.50

3.13(5/31)

2.45(7/26)

.09

4.50

4.50

3.88

3.50

.35

Dec.

20

,4.50

Dec,

27

3.88

3.50

.36

3
10

4.50
4.50

4.50

Jan.
Jan.

4.50

3.88

4.50

4.50

3,88

3.44
3.50

.35

Jan.

1 7 j>/

4.50

4.50

3.88

3.50

.34

.36

rfeekly rate shown is that in effect at end of period. Stock Exchange call loan rate is going rate
on call loans secured by ouetcmera' stock exchange collate m l at New York City ban)®.. Prime rate
is that charged by large banks on short-term loans to business borrowers of toe highest credit
standing*
2/
Average of daily rates published by finance companies for directly placed ptpcr
tor Vfcjying maturities
in the 90-179 day range.
3/ Weekly average of daily effective rate, which i» the rate for the heaviest w l u m e of purehaes and
sale transactions as reported to the Federal Reserve Bank of New York.
N o t e . — H i g h s a n d lows a r e for individual series and m a y be on different dates f o r different eeriei.
Tor sprsads, high refers to widest, and low to narrowest.




EXHISH E. Port I
STOCK MARKET

Exhibit B - Part II

Date

Stock price
index 1/

Common .
Trading
Stock m arket customer credit
volume 3/
Customers 1
Bank
yields 2/
(millions
Total debit bal- loans to
(per cent) of shares)
ances 4/ "others" 5/
(In millions of dollars)

1961-62 - High
Low
1963 - High
Low

72.04(12/8/61)
52.68 (6/22/62)
74.44(12/27)
64.10(3/1)

2.82
3.96
3.01
3.36

10.1
2.4

November
December
Jan. 3
Jan. 10
Jan. 17 ]>/

72.62
74.17
75.50
76.24
76.56

3.14
3.13
3.09
3.06
3.05

5.2
4.7
5.4
5.4
6.1

6.4
3.2

5,602(12/61) 4,259 (12/61) 1,377(8/30/61)
4,876(7/62) 3,562 (7/62) 1,269(9/26/62)
7,298(11/63)5,861(11/63)1,738(12/25)
5,595(1/63) 4,208(1/63) 1,378(2/23)
7,298
7,207

5,586
5,475

1,712
1,727
1,727
1,729

n.a.—Jlot available, jj/ Preliminary,
Standard and Poor's composite index of 500 ooranon stocks, weekly closing prices, 1941-43»10.
Monthly data are averages of dally 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 shorn are for dates on which price index reached its higi
3/ Averages of daily trading volume on the New York Stock Exclange.
AJ find of month figures for member flans of -fee New York Stock Exchange vfcioh cany nargLn 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. Prior to July 1, 1959, such loans are exclvded only at banks in
«ew York and Chicago. Weekly reporting banks account fbr a tout 70 per cent of loans to other*.
For further detail see Bulletin.




v V

PRIVATE H O U S I N G STARTS A N D PERMITS
S E A S O N A L L Y A D J U S T E D DATA

I IUIIDING Pmills

PER C E N T O F U N A D J U S T E D TOTAL S T A R T S
• ULIIfAMIlY

„„

m

o

1962
E x h i b i t F - P a r t II
Start!

Building
Unadjusted
permits
T y p e of financing T y p e of housing ( s e a s o n a l l y
S e a s o n a l l y adjustadjusted
1-2
MultiUnadjusted
ed a n n u a l r a t e
annual
Other
FHA
VA
family
family
r a t e ) 2/
Total

1962 - D e c .
1963-Jan.
Feb.
Mar.
Apr.
May
July
Aug.
S e p t . r/
Oct. r/
N o v . r/

1,562
1,344
1,380
1,575
1,618
1,618
1,571
1,588
1,455
1,732
1,847
1,556
1,597

(Thousands of u n i t s )
94
16
5
74
81
14
63
4
87
13
70
4
124
17
5
103
158
21
129
7
166
22
137
7
153
20
126
7
.... 1 5 0
21
8
121
144
19
119
7
145
19
6
120
163
21
6
136
119
17
5
96
97
15
5
77

60.1
50.1
56.0
84.9
111.1
112.6
104.7
r/103.0
r/100.5
97.5

33.8
30.5
30.6
39.5
47.0
53.8
. 48 .7
r/47.1
r/43.8
47.8

1,248
1,200
1,193
1,232
1,214
1,285
1,315
1,256
1,215
1,319
1,367
1,321
1,434

V Total starts are Census estimates including faro 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. IHA and VA starts are units started under oomnitments by these agencies to insure
or guarantee the mortgages. As reported b y FHA art VI, a unit is started when a field office receives
the first oonpliance inspection report, which is made before footings are poured in some oases but
normally after the foundations have been completed, Capehart military housing units are excluded.
Other starts are derived as a residual, although total and iEA and VA starts axe not strictly comparable
in concept or timing) other starts include both unite financed by conventional mortgages and units
without mortgagee.
U
areCensus estimates for all of the approximately 10,000 areas in the United
States which were identified a t having a local building permit system in 1959. Unlike starts,
seasonally adjusted building permits reflect & direct measure of the influence of changes in the
number of working days per month, along with otUmmp fefferenoes in timing and coverage.




YIELDS O N

NEW AND SEASONED CORPORATE BONDS

Exhibit 6 - Part II
Yields on New Corporate Bond leaves Adjusted to an Aaa basis
Number Am't of issues Average
of
included (mil. yield
(per cent)
of dollars)

Weekly averages:
1963 - Aug- 16
23
30
Sept. 6
13
- 20
27
Oct. 4
11
18
25
Nov. 1 •
8
15

2
1
1
1
2

50.0
12.0

:

15.0
100.0
33.5
—

—

1
2
1
1

Nov. 22
29
6
13
20
27
1964 ••
Jan. 3
10
17

4.33*
4.35

Dec.

4.34
4.34
4.32
--

—

40.0
75.0
30.0
22.0

4.37
4.35
4.41
4.21*

Number Am't of issues Average
of
included (mil.
yield
(per cent)
of dollars)
4

115.0

4.42

2
2
1

60.0
95.0
150.0

4.41
4.45
4.54*

--

1
1

—

130.0
5.0

4.50
4.44*

'

10to l A v e r a g e s ox oixerxng yxeXQO an ell#, new i b b u o b oj. puuj_iuj.y o i i e r c a oozp orate oonao rateo jvsa. Jia ana
A by Moody's Investor# Senrioe (except serial and convertible issues, offerings of natural gas pipeline
and foreign companies, and bonds guaranteed by the Federal Government) weighted by aize of offering*
Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual
reoffering yield the excess of the weekly average yield f o r seasoned bonds of the appropriate industryquality group over the composite average for seasoned Aaa-rated bonds (Moody's), Averages considered
unrepresentative because at special characteristics of ihe offerings included are denoted by an asterisk^




I
VI
H. 14
Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Capital
Corporate 1/
1964
1
1963
e/

January
February
March

850

April
May

1964

613
594
1,144

592
859
807

e/ 900

930
904
1,013

1,113
760
1,132

£/

582
749
579

676
667
795.

July
August
September

State and Local 2/
1962
1
1963
1

1962

1

£/
£/
£/

732
726
974

876
1,133
628

£./
£/

866
861
945

873
912
786

£/
£/
£/

647
706
447

612
544
427

October
November
:
'>ec ember

£/1,062
£/ 830
e/1,282

835
703
1,103

£/l,103
£/ 639
e/ 400

650
578
550

1st
2nd
3rd
4th

2,351
2,847
< 2,138
a/3,174

2,258
3,005
1,910
2,641

2/2,431
2/2,672
£/l,800
e/2,142

2,637
2,571
1,582
1,779

5,198
7,337
e/10,510

5,264
7,173
9,814

£/5,103
£/ 6,903
e/9,045

5,208
6,790
8,568

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

Excluding finance companies 3/
1st
2nd
3rd
4th-

quarter
quarters
quarter
quarter

Year

e/
£/
1/
2/
3/

'

2,284
2,529
1,797
e/2,674

2,199
2,919
1,775
2,410

e/9,284

9,303

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.




.

f

H. 14

New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

Quarter
or
Month

; 1961 - I
II
III
IV

1,992
5,352
2,566
3,236

: 1962 - I
II
III
IV

2,378
3,250
2,184
2,957

1,155
1,389
853
1,089

716
1,222
1,024
1,568

507
639
307
300

I1
1

|l963 - I
II
III
IV e/

2,700
3,634
2,466
3,415

1,108
1,389
898
1,286

1,306
1,820
1,281
1,771

|l962 - Apr.
May

1,217
801
1,232
630
922
632
976
784
1,197

654
247
488
200
477
176
539
286
264

695
642
1,363
1,049
1,340
1,246
810
786
871
1,170
904
1,341

350
259
499
380
550
459
279
336
283
511
205
570

?•

1
I

July
Aug.
Sept.
Oct,
Nov.
Dec.

1

July
Aug.
Sept.
Oct. £/
Nov. £/
Dec. e/

•s

"1963 - Jan.
Feb.
Mar.
Apr.
May

.

Total

Gross proceeds for new
capital and refunding 1/
Common Memo:
B
and
foreign
Publicly Privately
issues
pfd.
offered offered
included
stock
662
880
76
449
2,303
1,275
1,774
155
772
1,139
654
69
967
1,424
62
845

Net proceeds for
new capital 1/ 2/
Mfg.

Public Communi- Other
utility cations is-

515
1,466
935
792

381
1,081
595
836

81
1,095
104
147

832
1,052
893
1,263

68
257
56
179

655
996
601
769

430
983
375
568

456
231
275
321

717
794
659
986

287
424
287
357

128
434
109
n.a.

947
591
806
884

326
794
285
505

236
221
150
123

842
1,241 |
897 1
1,662

227
420
575
366
363
295
314
446
808

336
134
169
67
82
161
123
52
125

10
147
100
13
43
46
34
99

384
270
342
217
218
166
153
271
345

. 377
196
410
118
110
148
141
175
252

88
64
79
88
120
67
260
4
57

264
229
301 (
159 1
301 199
282
253
451

243
289
774
452
694
675
431
349
501
532
542
697

102
94
91
217
95
113
100
100
87
127
157
73

25
43
60
56
182
196
46
21
42
7
8
n.a.

135
220
592
148
216
227
297
272
237
266
224
394

114
115
97
341
222
230
107
100
78
198
130
177

125
68
43
71
92
58
86
24
39
42
13
68

238
191
412
369
373
499
187
270
441
556
463
643

1

(1964 - Jan.
$
Feb.
Mar.

"_/ Preliminary, e! Estimated by Federal Reserve. 1/ Gross proceeds exceed net proceeds
^ y the cost of flotation. 2/ For total see Exhibit Hj other issuers are extractive, railroad
3
i other transportation, real estate and finance and commercial and other. Source. "Securities and Exchange Commission.




H. 14

Other Security Offerings
(In millions of dollars)

1964

Gross lonz-te rm 1/
Foreign government 2/ .
|
1963
|
1962
1964

January
February
^March
April
May
July
August
September
October
November
December
Year

January
February
March
April
May
July
August
September
October
November
December
Year

232
133
76
57
114
11
63
83

£/
-

E/
1/

-__
--

e/ 769

Federal agency 3/
1962
1963
I

148

246
156

186

461

142
10
35
10
86
50
25
8
31
151
88
101

E/174
2/200
e/ --

737

e/1,167

Net Short-terra 4/
State and local government 5/
75
18
272
466
-367
-186
127
589
-30
-84
-10
-118
62
78
339
208
-406
-173
259
71
234
146
-161
£/-346
£/ 685

|

378

459
150
175
----

1 ,188

Federal aeencv 3/
-106
247
-189
-156
226
-482
-364
292
82
195
284
319
261
414
227
327
-157
258
123
379
55
-102
-80
£/ 545
P/1,594

1 ,004

2/ 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.
j>
2/ Includes securities offered in the United States by foreign governments and their
'
political subdivisions and international organizations. Source: Securities and Exchange
Commission. 3/ Issues not guaranteed by the U. S. Government. Source: long-term, Securities and Exchange Commission; short-term, Treasury Department and Federal Reserve.
I
4/ These data differ from those in Exhibit H and above in that they represent new offerings
less retirements, whether from the proceeds of 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 Housing Authority notes. In some
instances PHA notes included may have a somewhat longer maturity than one year. Source: Bond
Buyer and Federal Reserve.




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)

Month

1962 - December
1963 - January
February
March
April
May
June
July
August
September
October
November
December

Corpora t<
Bonds
Convertible
(Other than
bonds
convertibles)

Total

State
and .
local
government

20

178
215
125
372
263
149
348
180
218
215
380
117
515

198
234
186
394
409
149
348
199
236
237
446
180
547

Stocks

193
344
367
570
431
389
372
279
329
135
743
373
111

19
26
22
146

35

19
18
22
66
63
32

---

Other 2/

75
48
63
134
43
460
60
20
174
200

.

:

Large Individual Issues Offered January 1 through 17

Issuer

Type

Amount
(millions
of
dollars)

Maturity

Coupon
rate or net
interest

OfferRating

ing
yield

CORPORATE
General Amer. Transp.
Corp.
New York Tel. Co.
Transcontinental Gas
P. L. Corp.

Equip, tr. cert.
Deb.
1st. mtg. p.l. bds.

40.0
130.0

1984
2004

4-5/8
4-5/8

4.59
4.53

40.0

1984

4-3/4

4.82

1965-90
1970-84
1964-2004
1964-84
2004

n.a.
3.44
3.36
3'96

2. 10-3.35— Aa
2.'75-3.47 A
1. 90-3.50 Aaa
2" 80-3.60
3. 95

16.0

1965-84

3.00

2. 00-3.10

Aa

11.8

1965-2004

3.88

2. 25-3.90

A

A
Aaa
-

Baa

STATE AND LOCAL GOVERNMENT
- State of California
G.O.
,Alabama Highway Auth.
Rev.-Q.Ut.
j Public Housing Auth.
-Rev.-Rent.
Toledo Lucas Co. Port
Auth., Ohio
Rev.-Rent.
St. Louis Met. Swr. Dist.,
Mo.
G.O.
Greater Johnstown Wtr.
Auth., Pa.
Rev.-Ut.
r
OTHER
„ None




80.0
15.0
140.3
18.9
46.9

:

'5
H.14

K-2
Footnotes

*—Rights offering. n.a.r-Not available.
1/ Includes corporate and other security offerings of $15 million and over; State and
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 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 revehue from quasi-utilities; Rev.-S.T., revenue bonds
secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely
by lease payments.
—/

1/20 pet cent bonds due 1989 arid 1/4 iper"1 cent bonds due 1990 not publicly reoffered.




If

H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues

During month following
date shown
State and
Corporate
local govt.

Date of
computation

1962 - Dec.
1963 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

;

28
31
28
29
30
31
28
31
31
30
31
29
31

177
376
458
381
447
255
142
329
210
561
255
137
469

269
167
142
376
149
223
170
221
158
240
145
392
305

Other 2/

Silbsequent to
<iate shown
State and
Corporate
local govt.

25

45
40
460
75
20

314
412
572
421
234
288
215
267
183
240
145
1 ,992
1 ,905

Other 2/

311
843
755
763
599
582
287
512
468
757
401
349
731

25
33
45
40
460
75
20

Forthcoming Large Offerings , as of January 17

Type

Issuer
CORPORATE
Pan American World Airways
Texas Pwr. & Lt. Co
Potomac Elec. Pwr. <
Co.
American Tel. & Tel . Corp.
STATE AND LOCAL GOVERNMENT
•Dallas, Texas
New York City, N.Y.
Philadelphia Sch. Dist., Pa.
Duval Co. Spec. Tax Sch.
; Dist. No. 1, Fla.
'^Commonwealth of Massachusetts
Commonwealth of Puerto Rico
j State of Delaware
>*Milwaukee, Wisconsin
*Chesterfield Co., Va.
*Milwaukee Co., Wisconsin
Penna. Gen. State Auth.
Alabama State Docks Dept.
Pittsburgh, Pa.

Conv. sub, deb.
S.F. deb.
Com. stk.
Com. stk.

G.0.
G.O.
G.0.
Rev.-S.T.
G.0.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.-Rent.
Rev.-Q.Ut.
G.O.




Amount
(millions of
dollars)
60.0
15.0
21.7
1,600.0

Approximate date of
offering
January 22 (rts. ex.)
January 22
January 23 (rts. ex.)
April (rts. ex.)

12.0
114.4
15.0

January 20
January 21
January 22

10.0
33.4
53.0
24.8
15.6
11.5
12.1
50.0
10.0
35.0

January 28
January 28
January 29
February 4
February 4
February 5
February 18
February 18
February 27
Indefinite

H. 14
L-2
Forthcoming Large Offerings, as of January 17 (Cont'd.)

Type
STATE AND LOCAL GOVERNMENT
(Cont'd.)
Dade County, Florida
Jacksonville Expressway
Auth., Fla.
Houston, Tex.

Amount
(millions of
dollars)

Approximate date of
offering

G.O.

46.0

Indefinite

Rev.-Ut.
G.O.

40.0
11.1

Indefinite
Indefinite

OTHER

*
1

!
^--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 of Federal agencies.
x
te.--Deletions for reasons other than sale of issue: None.




H.14

Exhibit H
Foreign Government and Corporate Security Offering#
and Placements in the United States •
Part I:

Sale
Date

Amount
(millions of
dollars)

Issuer and Description rof Issue

A.

Sold November 1 through January

17

"Province of Sante Fe, Republic of Argentina - 7%
Treasury bonds, maturing 1969, offered to yield 9.45%

12/24

B.
2/2?

Public Offerings

7.5

Prospective Offerings

TObos de Acero de Mexico, S.A. convertible debenture




M-2
Part II:

Date
reported

H. 14

Private placement—Reported November 1 through January 17-

Amount
(millions of
dollars)

Issuer and Description of Issue

11/27

15.0

Home Oil Co., Ltd.--6-1/47. collateral trust bonds,
. maturing 1983, placed at par—no information available
on takedown

1/7

14.0

Laurentide Financial Corp., Ltd.--5-1/4% collateral trust
rute;s .maturing 1989--no information available on take-

No te: 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 o f 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 to the date a placement is reported.
*—Included in table for first time.