Full text of H.16 Capital Market Developments : January 22, 1968
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Decontrolled AFTER SII hows Not for Publication H. 14 January 22, L968. JA 24 ^ * J CAPITAL'MARKETS DEVELOPMENTS Hip THE UNITED STATES Corporate^andmunlcipal bond markets. The volume of new porate security offerings expected this week is well below the weekly average volume for such issues over the past year. In contrast to tfie corporate market, new municipal offerings scheduled for this week relatively heavy. Investor interest in the municipal market is centered on two outsized issues dominating this week's calendar, California's $100 million of education bonds and $114.2 million of New York City bonds, Not included in the table below is the $35 million Province of Nova ScotjL bond offering also expected this week. If Long-term Public Security Offerings — (In millions of dollars) Corporate New Capital I Refunding State & Local Government New Capital | Refunding Sold: 335 259 12 19 r/394 " 207 217 192 Scheduled; January 26 150 351 52 weeks avg. January 1/ 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 new corporate bonds advanced slightly last week, breaking the decline in new issue yields registered over five consecutive weeks. The response accorded new issues was mixed, but notably weak following the State of the Union message. Of three non-convertible utility bond tissues last week, two remain in syndicate with sizable unsold balances. Seasoned municipal bond yields continued to decline last Week. New municipal issues, however, experienced a lackluster investor response with less than one-half of the weekly volume spoken for by the Friday close of trading. Private housing starts and permits. Seasonally adjusted plrivate housing starts, which had soared to a rate of 1,587 thousand (as revised slightly upward) in November, dropped a fifth in December to an annual rate of 1,256 thousand. While a decline in December was anticipated, the rate was the lowest since last June and brought the average for the fourth quarter H. 14 -2- Yields of Security Markets High Grade Notes and Bonds Change from preceding week Levels Latest Week Corporate J 6.21 New Seasoned 6.14 ll.fir Government 6 4 5.18 5.52 Long-term , 3-5 year State and local Govt. 4. 03 4.34 Moody Vs Aaa Std. 6= Poor's high grade Mnnev Market + 4.73 Federal funds . Treasury bills 3-month 6-month . 20 5.02 5.25 Corporate Bonds Still in Syndicate Amount (millions of $) Date Offered Issuer Reoffering Yield Rating Estimated portion s 1/17 20.0 Conn. Light & Power, 6-1/2's - 1998 6.40 Aaa 507= ,,,, 18.0 Minn. Power & Light, 6-1/2's - 1998 6.43 A 60% 1/10 100.0 Aaa 757, Northwestern Bell Tel., 6-1/4's - 2007 6.25 ttlue List of Municipal Dealers1 Advertised Inventories Latest Week 376(1/16/68) End of Previous Week 331 Recent High 849(4/26/67) H. 14 -3- as a whole to 1,446 thousand. This was up 3 per cent from the advanced third-quarter rate and 58 per cent above the exceptionally low rate a year earlier. For 1967 as a whole, starts totaled 1,291 thousand, a tfenth above a year earlier. All types of structures and all regions shared in the December decline, though it was sharpest for multifamily units and in the Northeast. While unusual winter weather and difficulties of daily average adjustment may have been factors in the December decline, the drop also apparently reflected the rapid pace of starts in previous months and particularly in November. I Government-underwritten starts declined appreciably less thjan starts with conventional financing in December, and altogether accounted for 24 per cent of the reduced December total. This compared with 20 per cent a year earlier. For 1967 as a whole the Government-underwritten share amounted to 18 per cent as against somewhat less than 17 per cent in other recent years. Unlike starts, seasonally adjusted building permits turned upward again — and sharply — in December, to an annual rate of 1,362 thousand — the highest since early 1964. All structures and regions participated in the rise, which ranged as high as 36 per cent in the case of mult if airily structures (5 or more) and 24 per cent for thu Nri"h Central states Stock prices. Common stock prices — as measured by Standard , and Poor's index of 500 stocks — declined last week in unusually heavy trading. At the close Friday, S&P's index registered 95.24, a decline of 1.48 points from the week earlier. Trading volume on the New York Stock Exchange averaged 12.8 million shares a day. On Lhe AMEX trading volume surged to four consecutive daily records — including the first 10 million shares day in AMEX history. The unusually heavy trading volume in recent weeks induced both exchanges to announce shortened trading days (beginning January 22) until further notice. 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 Sysuem. LONG-TERM BOND YIELDS, HIGH-GRADE CORPORATE Aaa U.S. GOVERNMENT r STATE AND LOCAL GOVERNMENT Aaa 1963 1964 1965 1966 1967 1968 Exhibit A — Part II Date 1959-60 - High 1966 - High 1967 - High - Low | Corporate Aaa 1/ 4.61(1/29/60) 5.52(9/9) 4.73(1/7) 6.24(12/29) 5.00(2/10) State and U.S. Govt. | local long-term 2/, government Aaa 3/ (per cent) 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) Spread between U.S. Govt, and Corporate State and Aaa local Aaa .59(8/5/60) .92(4/22/60) .84(12/30) 1.19(2/11) .14(2/18) .77(9/2) .92 1.51 .44 .74 Dec. 22 6.22 5.34 4.15 .88 1.19 29 6.24 5.35 4.15 ; .89 1.20 Jan. 5 6.24 5.23 4.15 1.01 1.08 12 6.20 5.12 4.08 1.08 1.04 I9j>/ 6.14 5.18 4.03 .96 1.15 2./ Preliminary. 1/ Weekly average of daily figures. Average term of bonds included is 22-24 years. 2/ Weekly average of daily figures. The series includes bonds due or callable in 10 years or more. 3/ Thursday figures. Only general obligation bonds are included; average term is 20 years. Note--Highs and lows are for individual series and may be on different dates for different series. For spreads, high refers to widest, and low to narrowest. *)&• CORPORATE Baa STATE AND LOCAL GOVERNMENT 1963 1964 1965 1966 1967 1968 Exhibit B -- Part II State and local govt. Baa 3/ Corporate Baa 1/ Spread between Aaa'and Baa State and Corporate local govt. (per cent) 1959-60 - High Year end- 1965 1966 - High Low 1967 - High Low 5.36(2/12/60) 5.04 6.18(12/30) 5.05(1/14) 6.97(12/29) 5.81(4/14) Dec. 22 6.96 29 . 6.97 6.96 Jan. 5 12 6.86 6.79 19p/ Note: For footnotes see Exhibit A„ 4.46(1/7/60) 3.79 4.55(8/25) 3.78(1/20) 4.73(12/28) 3.85(4/13) .31 1.08 .39 .62 .31 .82 .81 4.73 4.73 4.73 4.65 4.65 .74 .73 .72 . 66 .65 % .84 .31 .81 .63 .37 .58 .58 .58 .57 .62 EXHIBIT C, fori 1 S H O R T H A N D INTERMEDIATE-TERM INTEREST RATES GOVERNMENT 1 6-MONTH BILLS 3 - 5 YEAR ISSUES F.R. DISCOUNT RATE 3-MONTH BILLS 1963 1964 1965 1966 1967 1968 Exhibit C -- Part II Discount rate 1/ 1959-60 - High Year end - 1965 1966 1966 - High Low 1967 - High Low ; Dec. Jan. 22 29 5 12 19£/ 3-month bills U Yields | 6-month | bills I' (per cent) | 3-5.year I issues £/ Spread between yields on 13-mo. bills and yields on 1 6-mo. bills 13-5 vr. 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) 5.80(11/10) 4.36(4/7) 4.50 4.50 4.50 4.50 4.50 4.96 4.99 4.99 5.06 5.02 5.44 5.49 5.39 5.30 5.25 5.68 5.75 5.61 5.48 5.52 2/ Market'yield; weekly averages computed from dally closing bid prices. 10 . .79 .19 .12 .52 .09 .62 .01 1.81 .43 .06 .78 .01 .48 .50 .40 .24 .23 .72 .76 .62 .42 .50 Series of 3-5 1.61 .02 SHORT-. A N D I N T I R M I D I A T I - T E R M INTEREST RATES, B A N K S A N D OTHER PRIVATE BORROWERS PRIME RATE FINANCE COMPANY PAPER F.R. DISCOUNT RATE FEDERAL FUNDS 1963 1964 1965 1966 1967 1968 Exhibit D — Prime rate 1/ 1959-60 - High Year end- 1964 1965 1966 1966 - Low 1967 - High . Low Spread between 3-mo. bills and Federal funds 3/ finance co. paper Finance company •paper 2/ 5.13(1/22/60) 4.06 4.75 5.88 4.75(1/7) 5.75(1/6) 4.38(6/23) 4.00(5/13/60) 4.00 4.63 5.63 3.55(1/21) 5.25(1/6) 3.40(10/27) 1.02 .23 .28 1.08 .20 1.33 .21 .54 .51 .51 .45 12 .48 192/ that r e !rarged by iarrbanks on short-term loans to business borrowers of the highest] Dec. 22 •29 ' Jan.- 5 " 5.00 4.50 5.00 6.00 5.00(3/4) 6.00(12/29) 5.50(12/1) Part II. 6.00 6.00 6.00 6.00 6.00 4.50 4.66 4.56 4.53 4.73 5.50 5.50 5.50 5.50 5.50 2/ Averige^f^aily rates published by finance companies for directly placed paper -uiV STOCK MARKET 100 PRICES STOCK MARKET CREDIT CHANGE IN SERIES VOLUME YIELDS 1963 1964 1965 1966 Exhibit E — Part II Date Stock price index If 1961-62 - High Low 1966 - High Low 1967 - High - Low Nov. Dec. 5 12 19£/ Stock market customer credit Trading Common Bank Customers' volume 3/ stock debit bal- loans to Total . yields 2/ (millions "others"5/ ances 4/ (per cent) 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 12.3 6.9 92.66 95.30 3.18 3.09 10.6 11.5 95.94 96.72 95.24 3.08 3.05 3.09 12.2 13.2 12.8 , 5,602(12/61) 4,424(1/61) 7,997 7,302 10,347 7,345 r/9,497 r7l0,347 4,259(12/61) 3,253(1/61) 5,835 5.169 7,883 „ 5,200 r/7,055 r/7,883 1,418(5/9/62) 1,161(3/8/61) 2.241(7/6) s 2,097(12/14) 2,507(11/1) v 2,055(1/25) : 2,442 2,464 i; • -f 2,465 r/2,449 -M n.a. Not Available. jd/ Preliminary, r? R e v i s e d . ' ' J./ 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 x for Friday's data only. ! 2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve, Yields shown are for dates on which price index reached its high or low. , • i 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 account^ ~~ 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. ff EXHIBIT F, Pari 1 PRIVATE HOUSING STARTS A N D PERMITS Millions of unil« Monthly, annual ralei SEASONALLY ADJUSTED DATA HOUSING^ STARTS BUILDING PERMITS ANGE IN SERIES PER CENT O F U N A D J U S T E D TOTAL STARTS 1961 1962 1963 MULTI-FAMILY —i GOVERNMENT UNDERWRITTEN I L_ 1964 1965 1966 i I i ii 1 i M iiIiIi i i i i i 1968 1967 Exhibit F - Part II Building permits Unadjusted (seasonally Type of financing TypA of housing adjusted Multi1-2 annual Seasonally adjust- Unadjusted family VA Other family FHA' rate) 2/ ed annual rate Date (Thousands of units) 1966 - Dec. 1967 - Jan. Feb. Mar. Apr.. May June July , Aug. Sept. Oct. Nov. Dec. 2/ 931 1,111 1,149 1,094 1,116 1,274 1,233 1,369 ' 1,407 1,445 r/1,496 r/1,587 1,256 60 59 61 92 114 132 125 125 127 r/122 7/135 7/118 81 10 10 9 14 12 18 19 15 *• 17 16 19 15 16 48 2 46 3 49 3 74 4 97 4 109 5 101 5 106 5 105 6 101 5 5 r/111 4 r/ 98 61 4 759 19.8 40.3 942 17.2 41.8 894 19.2 42.3 928 22.7 68.8 1,028 30.2 83.5 1,033 39.8 92.3 1,109 34.8 90.6 1,093 38.4 86.8 1,127 39.5 87.8 1,159 39.8 82.0 1,212 r/86.7 r/48.7 7/72.2 7/45.9 r/1,158 "" 1,362 31.2 49.3 M B erences in timing and coverage. r/ Revised. 2/ Preliminary. P»- EXHIBIT G, Port 1 YIELDS O N NEW A N D SEASONED CORPORATE BONDS 6.5 NEW ISSUES 6.0 5.5 5.0 SEASONED Aaa 4.5 4.0 1964 1965 1966 1967 1968 Exhibit G - II Yields on New Corporate Bond Issues Adjusted to an Aaa basis Number of Monthly averages-. 1967 - Jan., Feb. Mar. Apr. - - ' May June July Aug. Sept. Oct. Nov. Dec. Number |Am't. of issues Average | of I included (mill. yield # (per cent issues I of dollars) Am't. of issues Average included (mill. yield (per cent) of dollars) 7 20 20 14 23 14 17 10 15 13 5 496.0 481.0 I,073.0 916.0 570.0 993.0 r 772.0 II, 125.0 358.0 716.0 356.5 355.0 5.38 5.20 5.31 5.39 5.66 5.79 5.78 5.89 5.88 6.12 Dec. Jan I'M 1 8 15 22 29 231.5 230.0 125.0 6.42^ 5 12 19d 15.0 353.0 63.0 6.32 x r/6.18/ 6.21, 6.53 6.51 Weekly averages: 6.59(11/17) High 5. Low Note: Averages of 'offering yields on all new issues of publicly offered corporate bonds rated Aaflt/ Aa, and A by Moody's Investors Service (except serial and convertible issues, offerings of natu%# gas pipeline and foreign companies, and bonds guaranteed by the Federal Government) weighted by f size 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 for seasoned bonds of the appropriate industry-quality group over the composite average for seasoned Aaarated bonds (Moody's). Averages considered unrepresentative because of special characteristics of the offerings included are denoted by an asterisk. . £./ Preliminary, r/ Revised. -IV Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) January February March e/1,200 e/ 1,900 1,438 1,193 901 1,141 1,973 1,474 . 2,611 July August September October November December let 2nd 3rd 4th 1st 2nd 3rd 4th 1,020 p/1,461 e/2,250 1,635 5,363 6,058 6,586 e/6,007 vZ Quarter Quarter Quarter Quarter let half Three quarters Year 701 773 2,406 11,421 18,007 / e/24,014 4,985 4,975/ 4,091 9,959 14,050 17,601 960 p/1,353 e/l,050z 4,116 e/3,363 7,943 10,992 e/14,356 v 6,146 8,640 11,304 Excluding finance companies 3/ Quarter Quarter Quarter Quarter 4,924 4,884 3,969 3,188 5,207 5,913 6,338 17,269 Year Estimated by F< 1MSSSSSSHSSass. companies. -M- Exhibit I New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) Quarter or Month 1966 - III IV Net proceeds Gross proceeds for new capital for new capital 1/ 2/ and refunding 1/ Common Memor Bonu s Total Other Foreign Mfg. Public CommuniPublicly Privately and Utility cations Issuers pfd. issues Offered Placed stock included 4,197 2,256 1,627 657 314 154 1,558 567 1,309 3,669 2,047 1,247 375 117 1,232 984 417 918 1967 - I II III IV e/ 5,464 6,208 6,834 6,237 3,263 4,017 4,604 3,070 1,811 1,465 1,552 2,122 390 726 678 1,045 60 65 234 59 2,442 3,014 2,792 2,693 997 1,268 1,219 1,203 543 548 595 392 1,382 1,228 1,979 1,733 i 1966 - Dec. 1,662 980 555 127 24 673 409 152 401 j 1967 - Jan. ' Feb. Mar. Apr. . May June July Aug. Sept. Oct. Nov. g/ Dec.j^ 1,684 1,418 2,362 2,016 1,519 2,673 2,590 2,481 1,763 2,417 1,493 2,300 848 745 900 362 1,618 601 1,368 410 965 396 1,684 659 1,889 487 1,813 __ 418 902 647 1,375 572 645 543 1,075 1,000 91 156 143 238 158 330 214 250 214 470 305 225 35 10 15 16 32 17 213 13 8 40 r/19 n. a. 624 563 1,254 1,128 588 1,298 925 1,229 637 918 522 1,100 220 274 503 394 403 471 446 509 265 573 404 220 293 105 145 107 91 350 39 356 200 132 70 205 511 ! 456 415 : 343 393 492 ; 1,046 313 620 673 465 725 Revised. Preliminary, ef Gross proceeds exceed net proceeds by the cost o5 flotation. 2/ For total see Exhibit H; other issuers are extractive, railroad and other ™" transportation, real estate and finance, and commercial and other. SOURCE: Securities and Exchange Commission. -fc*10 Exhibit J Other Security Offerings (In millions of dollars) Gross Lone-term 1/ Federal Agency 3 Foreign Government ZI "" 1966 1967 1965 1966 196 January February March April May June July August September October November J>/ December Jan. 223 27 13 170 22 586 193 66 139 1,635 Nov. 38 73 91 33 74 5 52 75 2 74 529 1,251 783 750 650 810 650 407 250 599 708 710 218 -- -- 503 410 392 699 1,030 1,084 799 400 • 450 800 239 129 185 325 — £/ 2,629 Reserve. -- 239 150 375 375 179 7,568 6,567 2,553 661 - 6,806 2,732 4SF New short-term 4) Federal Agenc; "308 .179 -174 -24 -552 117 450 -454 -11 718 -559 509 85 109 237 284 93 132 -590 -158 206 -262 -270 105 -652 1,407 -309 606 -555 202 -283 573 219 -76 State and local Government 5/ 238 103 179 91 39 387 -458 -319 -594 647 580 827 204 462 515 -82 -334 -128 119 -103 219 408 270 593 152 -161 r/200 59 -48 ~ 464 274 503 -33 -366 -570 January February March April May June July August September October November £,/ December 775 659 597 Year Jan. - Nov. 12 40 40 66 69 76 72 7 50 992 1,652 422 1,286 624 529 877 748 801 These data tal issues, zrone year, political rge Commission, and Exchange from those whether issues with if: ion notes, PHA notes •r & Federal -|V- U Exhibit K U r g e Long-term Public Security Issue* for New Capital (Other than U. 8. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) Corporate Total 1966 - Dec. 1967 - Jan. Feb. Mar. Apr, May June July Aug. Sept. Oct. Nov. Dec. Bonds Convertible (other than bonds convertibles) 68 40 93 63 142 44 185 133 67 65 276 215 81 118 30 40 140 213 55 409 317 350 257 285 150 437 990 611 709 1,435 956 771 1,072 890 1,288 473 897 461 460 1,177 681 842 1,638 1,311 870 1,666 1,340 1,705 794 1,45a 826 978 Stocks State and local governments Other 2/ 60 230 530 1,000 540 391 825 85, 221 400 50 845 627 779 947 675 669 512 496 875 483 473 847 505 865 633 Large Individual Issues Offered January 1 through January 19. Issuer Corporate Iowa Power and Light Central Power & Light Crucible Steel Northwestern Bell Telephone Abbott Laboratories Standard Oil of Indiana Connecticut Light & Power Company Connecticut Light & Power Southern California Edison ' Illinois Power Co. El Paso Natural Gas Minnesota Power & Light Disney Productions Rating rate or net interest cost Offering yield 1998 1998 1993 6.60 6-5/8 6-7/8 6.50 6.50 6.90 Aa Aa Baa 25.0 200.0 2007 1993 1998 6-1/4 6-1/4 6.00 6.25 6.29 6.07 Aaa Aa Aaa 1st mtg. bds. Pfd. stk. 20.0 1998 6-1/2 6.40 Aaa Com. etk. 1st mtg. bds. Conv. debs. 1st mtg. bds. Conv. debs. 53.8 25.0 1998 1993 1998 1993 6-3/8 6 6-1/2 4-1/2 6.38 6.00 6.43 4.50 Aa B A Ba Type 1/ (millions of dollars) 1st mtg. bds. 1st mtg. bds. Debs. Debs. S.F. debs. Debs. 15.0 28.0 30.0 100.6 Maturity 15.0 60.0 18.0 40.0 J*- K-2 Large Individual Issues Offered Jan. 1 through Jan. 19 (Cont d) Type Issuer 3/ Amount (millions of dollars) State & local Government State of New York Fairfax Co., Virginia Houston, I.S.D., Texas Milwaukee Co., Wisconsin State of Washington State of Washington St. Louis Jr. Coll. Dist., Missouri Honolulu, Hawaii Omaha Public Power Dist., Alabama Highway Authority St. Louis, Missouri N.Y. State Dorm., Authority G.O. G.O. G.O. G.O. G.O. G.O. Rev.-Rent. G.O. Rev.-Ut. Rev.mS.T. G.O. Rev.-Rent. 78.0 15.0 39.8 13.7 16.5 25.0 10.0 10.0 45.0 30.0 20.0 48.1 Maturity Debs. Bonds Part, certs. Part, certs. 60.0 200.0 500.0 300.0 Offer- Rating ing yield , . I 1969-88 1969-93 1969-92 1969-88 1969-88 1968-92 4.20 4.89 4.36 4.00 4.10 4.67 3.65-4.20 3.90-4.90 3.70-4.40 3.60-4.05 3.50-4.10 3.60-4.70 Aa Baa A Aaa Aa Aa 1972-2001 1971-88 1970-1997 1969-88 1972-2001 1969-98 5.14 4.30 4.32 4.48 5.14 5.19 4.10-4.30 3.90-4.35 3.70-4.37 3.70-4.50 4.10-5.30 4.10-5.10 A Aa A Aa 1989 1970 1971 1988 6-7/8 6 6 6.05 Other Quebec Hydro-Electric Comm. Fed. Home Loan Bank F.N.M.A. F.N.M.A. Coupon rate or net interest cost 7.00 5.96 6.00 G.08 -m m m m a 1/ ^Includes^corporate and other security offerings of $15 million and over; Sta I, Includes te arid local Bank for Reconstruction and Development obligation; Rev.-Q.-Ut., bonds red solely 4/ by lease payments. , 1/w 4% bonds due 1992 reoffered to yield 4.10%. H. 14 Kxhiblt L Forthcoming Large Long-term Public Security Offering for Maw Capital (Other than U.S. Treasury) If Expected Proceed* from Forthcoming Large Ieauea (In millions of dollars) During month following dmt* ehown State and Other £/ Corporate local govt. 656 486 1,410 767 963 1,449 1,636 1,261 694 534 1,357 826 968 1966 - Dec. 30 1967 - Jan. 31 Feb. 28 Mar. 31 Apr. 30 ^ Ma y. 31 June 30 July 31 Aug. 31 Sept.30 Oct. 31 , Nov. 30 Dec. 31 80 530 250 780 508 227 326 596 401 512 783 768 505 865 633 70 100 40 100 65 50 845 402 Corporate 811 706 1,534 905 1,262 2,065 1,922 1,576 1,335 1,090 -2,694 2,129 1,892 Subsequent to tfttf # h m m — State and local govt. Other 2, 95 545 265 15 85 115 70 150 159 126 - 260 875 502 1,154 851 528 247 346 616 402 575 903 889 743 1,684 1,076 Forthcoming Large Offerings as of January 19, 1968. leaver Typ* Amount (milliona of dollara) Approximate date of offering Corporate Texas Power & Light Carolina Tel. & Tel. Central Soya Company *General Telephone of Illinois Arizona Public Service Trunkline Gas Co. Oklahoma Gas & Electric Zapata Off-Shore Texas Electric Service Western Airlines Commonwealth Edison Piedmont Aviation *N.Y. State Electric & Gas Co. Southern California Edison Co. Michigan Bell Telephone Co. Gulf States Utilities Co. Gulf States. Utilities Co. Unitedfor Nuclear Corp. Digitized FRASER •Potomac Electric Power 1st mtg. bds. Conv. sub. debs. S.F. debs. Debs. Pfd. stk. 1st mtg. p. 1. bds. 1st mtg. bds. Conv. debs. Debs. Conv. debs. 1st mtg. bds. Conv. debs. Pfd. stk. 1st mtg. bds. Debs. 1st mtg. bds. Com. stk. Conv. debs. 1st mtg. bds. 25.0 22.6 20.0 20.0 16.0 35.0 25.0 15.0 16.0 30.0 50.0 15.0 30.0 100.0 125.0 25.0 31.0 30.0 40.0 January January January January January January January January January January January January February February February February February February February 23 23i 23 23 23 24 24 25 30 30 31 31 5 6 7 8 13 13 14 Forthcoming Large Offerings as of January 19, 1968. Issuer Corporate (Cont'd) *Dallas Power & Light Co. *Duke Power Co. Duquesne Light Company Ohio Power Company Montana Power *Riegle Textile Corp. Type Amount (millions of dollars) (Cont'd) 1 ; ; Approximate date of offering i • Debs. 1st & ref. mtg. bds. 1st mtg. bds. 1st mtg. bds. 1st mtg. bds. Conv. sub. debs. 15.0 February 75.0 35.0 60.0 30.0 15.0 February 15 February 20 February 27 Indefinite Indefinite - State and local Government State of California Montgomery Co., Maryland State of Oregon New York City Montpelier, Vermont State of Kentucky Jackson, Mississippi Pennsylvania General State Auth. Salt River Project Dist., Ariz. *State of Tennessee Memphis, Tennessee Los Angeles Convention Auth., California State of South Carolina *N.Y. State Housing Finance Agency San Francisco B.A.R.T. Special Service Dist. #1 ^Minneapolis, St. Paul Airport Comm., Minnesota *New Orleans, Louisiana •Chester Co., South Carolina Kentucky Turnpike Authority Calcasieu Parish, Louisiana Other Province of Nova Scotia New Zealand 100.0 17.0 10.7 114.3 20.0 30.X) 10.0 50.0 32.0 35.0 30.0 January January January January January January January January January January February 23 23 23 25 25 30 30 31 31 31 , 6 Rev.-Rent. G.O. Rev.-Rent. 18.0 13.0 81.0 February February February 6 6 7 G.O. 12.0 Bonds G.O. G.O. G.O. G.O. G.O. G.O. Rev. -Rent. Rev.-Q.-Ut. G.O. G.O. Rev.-Rent. Rev.-Rent. Rev.-Rent. Rev.-Q.-Ut. Rev.-Rent. Debs. Bonds 16.0 12.0 35.0 120.0 62.7 35.0 15.0 February 14 — February 19 February 21 Indefinite Indefinite Indefinite January 23 Indefinite *—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. NOTE: The registration on U.S. Steel's $225.0 million debenture offering was withdrawn. ! 14 • i ! ! Exhibit M Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Date Amount (millions of dollars) Public Offerings Issuer and Description of Issue A. Sold: Nov. 1, 1967 through Jan. 19, 1968. 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%. 1/11 60.0 Quebec Hydro - Electric Commission 6-7/8% debentures maturing 1989, reoffered to yield 7.00%. B. Indefinite 1/23/68 15.0 35.0 Prospective Offerings New Zealand — Bonds *** Province of Nova Scotia * - Included in table for first time. ** Issues sold to investors outside of U.S. *** - Issue subject to interest equalization tax. -*A- M-2 PART II: Private Placements - Reported January 1 through January 19, 1968. Date Reported Amount (millions of dollars) Issuer and Description of Issue j I s 1/1/68 1.5 Nicaraguan Hotel Co. — U.S. guaran teed 6% note, maturing June 1, 1987." 1/8/68 12.0 Republic of Portugal —- notes due 1968. 1/15/68 7.0 Home Oil Co. Ltd. (Canada) — 15 year bonds. - . .. Secuz ed Note: For retrospective data on aggregate foreign corporate and government security offerings in the United States see Exhibits 1 and J . There is no simple relationship between the data shown in the Exhibit and that shown in Exhibits I and J because j 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. Full or partial takedown may take place both prior and subsequent to the date a placement is reported. XI