Full text of H.16 Capital Market Developments : January 27, 1964

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DECONTROLLED AFTER SIX MONTHS
Not for Publication
H.14

. . ,

a

r \
V

January 27, 1964.

CAPITAL MARKETS DEVELOPMENTS
IN THE UNITED STATES
(Including Review of Sales of State and Local Government
Bonds to Retire Outstanding Obligations in 1963)

Public security financing to obtain new capital was in very
substantial volume last week, but will be more moderate this week. Last
week, ended January 24, three large corporate issues (including expiring
rights offers) totaling $97 million and three State and local government bond issues amounting to $141 million were sold. This week, ending
January 31, no large corporate issues are scheduled for offering but
four large State and local bond issues with par value of $107 million
are on the calendar. In addition a $250 million secondary offering of
General Motors Corporation common stock is scheduled, with the proceeds
to be received by selling stockholders.
Bond yields. Yields on seasoned long-term bonds either
declined or remained stable last week. Yields on Aaa-rated State and
local government bonds dropped three basis points further to 3.07 per
cent, 11 basis points below the mid-November high and their lowest
level since last June. U. S. Government bond yields and those on lower- .
grade corporate bonds eased off a basis point each to 4.15 and 4.83 per
cent, respectively, with the latter matching its 1963 low. Yields on
Aaa-rated corporate bonds and c
lower-grade municipals were unchanged.
Average yields on new corporate bonds, adjusted to
Aaa basis,
fell three basis points further last week to 4.41 per cent, the lowest
since early December.
Short- and intermediate-term interest rates. Yields on Treasury
bills and on intermediate-term U. S. Government obligations declined last
week. Rates on 3-month and 6-month Treasury bills fell two basis points
each to 3.52 and 3,63 per cent,, respectively, while yields on 3-5 year
Treasury obligations dropped three basis points to 4.07 per cent. The
major finance companies reduced the advertised rates on directly-placed
paper with 90-179 day maturity from 3-7/8 to 3-3/4 per cent early last
week; as a result, the average rate dropped 10 basis points to 3.78 per
cent. Th.e average effective Federal funds rate fell five basis points
to 3.45 per cent. Other rates were unchanged.
Mortgage yields and conventional mortgage terms. Secondary
market yields on 25-year, 5-1/4 per cent FHA-insured mortgages in December
remained at the reduced rate of 5.44 per cent, which--with very slight
variation—has prevailed since April. The average in December was 9 basis
points under the average yield in December of 19' 2 and about 80 basis points
under the high at the beginning of 1960.




H. 14

homes in
of 1963,
rates of
loans on

Contract interest rates for conventional first mortgages on
December also continued at the levels established in the spring
according to the Federal Housing Administration. The average
5.80 per cent for loans on new houses and 5.85 per cent for
existing houses were both 15 basis points below a year earlier.

The movement of maturities and other terms for conventional
loans was mixed in November, based on the most recent report from the
Home Loan Bank Board. Maturities dipped somewhat from October to an
average of 24.2 years for new home loans and 19.3 years for loans on
existing houses. Loan-to-value ratios, on the other hand, rose slightly-to 73.5 per cent for new home loans and 70.9 percent for loans on existing properties.
Stock prices. Common stock prices continued to move upward
in active trading last week. Prices, as measured by Standard and Poor's
composite index of 500 stocks, advanced one-half of one per cent to close
at a record high of 77.11 on January 24. Trading volume averaged 5.3
million shares a day. down 0.8 million shares from the very large average
for the previous week.

Sales of State and Local Government Bonds to Retire
Outstanding Obligations in 1963
State and local governments took advantage of the relatively
low level of interest rates prevailing during most of 1963 to sell a
record volume of bonds to redeem previously issued high-coupon debt.
Municipal bond sales for refunding purposes amounted, to $1.3 billion in
1963, about five times the amount sold in 1962 and roughly three times
the 1941 peak; included in this total was about :?600 million in advance
refunding. Despite some increase in bond yields after spring, refinancing
dropped off only moderately to $550 million in the last six months of
1963 from the first half total of $700 million.
Since the late 1930 1 s and early 1940's the volume of State and
local government refunding had been relatively small until recently. The
reasons for this were various, but included both the generally rising
level of interest rates and the non-call ability of the. bulk of the maturities
of most serial bond issues. The decline in interest rates- the last few
years, together with the earlier growth in importance of large, singlematurity, callable, revenue bond issues contributed to the recent rise
in refundings. In addition, the spread between yields on long-term State
and local government bonds and short- and intermediate-term U. S. Government securities has been such as to make advance refunding attractive.
The latter involves the sale of new bonds to refund outstanding bonds prior
to the date they become first callable; during the interim the proceeds
from the new bonds are invested in U. S. Government obligations (or time
certificates of deposits). While advance refunding is not entirely a
new technique in municipal financing, recent State legislation and legal




H. 14

opinions have contributed to its increased utilization.
Because many of the refunding issues sold during the last
half of 1963 were to redeem a number of smaller issues, securities
privately placed, or those sold directly to State agencies detailed
analyses of all such financing is not feasible. (For detail on refunding during the first half of 1963, see Capital Markets Developments in
the United States for the week of July 15.) Examples of some of these
more complicated refundings are an $11.1 million issue of New Mexico State
University sold to refund 26 separate issues offered during the years 1950-61;
$37.9 million in bonds sold by Jefferson County School District, R-l,
Colorado, a new consolidated school district formed from a large number
of smaller districts, to refund all the issues of the former districts
offered over a 25-year period; and a $40.6 million bond issue sold by the
State of Minnesota to refund a similar amount of bonds placed directly
with a State agency.
Greater detail on four issues sold during July-December 1963
and on the issue or issues which they were to refund is shown in the following
table. These issues had par value of $330 million and were to refund $300
million in bonds, nearly all of which were not currently callable. Most
of the proceeds of the new issues, therefore, will be held in escrow by
trustees until actual retirement of the old issue is possible.
Measurement of interest savings in an advance refunding is
much more complex than on an issue sold to refund bonds immediately callable.
Interest savings on the latter can be measured by deducting the call premium
on the issue to be refunded, amortized from the call date to the maturity
date of the issue to be refunded (if average maturity is changed amortization
should be over average maturity of new issue), from the difference between
net interest cost on the new and refunded issue. In the case of an advance
refunding, however, the proceeds from the new issue are invested and will
be earning interest until refunding takes place and interest payments will
have to be met on both the new and the old issue until the latter is actually
retired.
The interest savings accruing to an issuing authority through
an advance refunding can be illustrated by the $195 million refunding
of the Grant County Public Utility District, Washington, last July; the
refunding will not be completed until 1970 when the issue to be redeemed
becomes callable at a price of 104.00. Because the new issue will only
have an average maturity of 30 years in 1970, in contrast to an average
of 38 years on the old issue at that time, the overall interest savings
can probably best be measured by the difference in average interest costs
on the two is sues--the issue, to be refunded was placed at an average net
interest cost of 4.90 per cent compared with 3.77 per cent on the new
issue, a difference of 113 basis points. The proceeds of the new issue
were invested in U. S. Government bonds maturing in late 1969 and yielding slightly better than 4 per cent. The interest earnings from these




H. 14

bonds will be sufficient to pay the interest on the new issue through
1969 as well as about one-third of the call premium on the issue to be
retired; the—portion of the call premium not covered by these earnings,
amortized over 30 years, will reduce interest savings on. the new issue
by approximately 9 basis points, or to 104 basis points. In terms of
dollar savings,this will amount to roughly $137 million, but approximately
three-fifths of this is accounted for by the eight-year shortening of
average maturity.

Details on Selected New State and Local Government Bond
Issues Sold During the Second Half of 1963 for the Purpose of Retiring Outstanding Securities

Issuing Authority

Grant Co. PUD, Wash.

To refund:

Johnson Co. Water Dist.
#1, Kansas
To refund:
California Toll Bridge
Auth.
To refund:

Penna. State Pub. Sch.
Bldg., Auth.
To refund:

Date
sold

Amount
(millions of
dollars

Maturities

7/63
7/63
7/63
7/59
7/59

40.0
51.0
106.0
13.7
181.3

1971-78
1998
2009
1970-90
2009

8/63

25.0

1964-93

Net
First
Interest Call
Cost
Date

__

3.77
4.90

11/57

20.0

1971-97

4.81

75.0

1964-92

3.62

12/55
7/59

43.9
33.4

1995
1995

3.68
4.36

11/63

33.0

1964-2003

3.47

1965-94

4.00

8.4

1970
1970

104.00
104.00

1967

104.00

1961
1964

104.00
104.00

1965

104.00

3.35

10/63

4/58

Call Price

More detailed information concerning recent capital market
developments is presented in the attached exhibits.

Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




EXHIBIT A. f o r i 1

LONG-TERM BOND YIELDS, HIGH-GRADE

\ z-x

f\J

Exhibit A - Part II

Date

Corporate
Aaa 1/

U. S. Govt,
long-term 2j

State and
local
government
Aaa 3/

Spread between
P. S. Govt, and
State and
Corporate
local Aaa
Aaa

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

27
3
10
17
24 j>/

3.55 (5/2)
4.61 (1/29/60)
4.21 (3/17/61)
4.46 (9/15)
4.23 (12/28)
4.37(12/27)
4.19(3/29)

i

4.37
4.38
4.38

3.07
4.42
3.70
4.07

(4/25)
(3/8/60)
(5/13/61)
(22/29)

I 8 ® )
3.87(1/18)
4.16
4.15
4.16
4.16
4.15

.22
.59
.19
.57

.34
.92
.46
.76

3 2 : ! i m
2.93(3/28)

•M
.21

i-.8oi
.89

3.11
3.11
3.11
3.10
3.07

.21
.22
.21
.22
.23

2.64
3.65
2.99
3.37

(5/1)
(9/24/59)
(9/3/60)
(7/6)

1.05
1.04
1.05
1.06
-1.08

v/ Preliminary.
y
Weekly average of daily figures. Average term of bonds inolitied is 22-24 years#
2/ Weekly average of daily figures. The series includes bonds due or callable in 10 years or more,
W
Thursday figures. Only general obligation bonds are Included) average tern is 20 years,
Bote.—High s 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.




EXHIBIT •, fori I
LONG-TERM BOND YIELDS, LOWER-GRADE

\

V

iUU ANO lO(At 60mnilUiM««
r

d

' "

u I I I I I iI iI i i i i i li ii ii ii i i i i i i i

I I I I I I I I I M J 3.0

Exhibit B - Part II

Corporate
Baa 1/

State and
local govt.
Baa 3/

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
Low
. Dec.
Jan.
Jan.
Jan.
/Jan.
Notoi

27
3
10
17
24 £/

4.51 (7/11)
5.36 (2/12/60)
4.98 (9/9/60)
5.13 (10/27)
4.92 (1^21)
4.93(1/4)
4.83(11/15)

3.64
4.46
3.93
4.16

4.85
4.84
4.84
4.84 :
4.83 ^

Tor footnotes aaa Exhibit A,




(5/1)
(3/7/60)
(13/9/61)
(3/23)

3.52(5/23)

.77
.84
.66
.81
.63
.71
.47

.93
1,08
.57
.93
.56
.63
.44

3.60
3.56
3.57
3.56
3.56

.48
.47
.47
. 46
.45

.49
,45
.46
.46
.49

EXHIBIT C, f o r i !

SHORT- AND INTERMEDIATE-TERM INTEREST RATES, GOVERNMENT

I I I I I I I I IU
Exhibit C - Part II
Date

1958 - Low
1959-60 High
1960-61 Low
1961-62 High
1962 - Low
1963 - High
Low
Dec.
Jan.
Jan.
Jan.
yJan.

27
3
10
17
24 £/

Dlacount
rate
1/

3-month
bllla 2/

Ytelda
6-month
bllla 2/
(per cent)

3-5 year
iaauea 2/

Spread between yielda on 3eonth bllla and yielda on
6-mo. bllla13-5

1.75
4.00
3.00
3.00
3.00
3.50
3.00

.58 (5/29)
3.02 (12/26) 2.14 (6/6)
4.59 (1/8/60)
5.07 (3/6/60) 5.00 (12/24/59)
2.11 (10/28/60) 2.35 (4/28/61)3.15 (5/12/61)
2.97 (7/13/62) 3.13 (7/20/62)3.88 (2/2/62)
2.65 (6/8)
2.74 (6/6)
3.41 (12/28)
3.55(11/15)
3.68(12/6) 4.07 (12/27)
2.88(3/15)
2.93(3/8)
3.44(1/18)

.26
. 79
.12
.44
.02
.17
.04

3.50
3.50
3.50
3.50
3.50

3.52
3.52
3.53
3.54 /
3.52/

.13
.13
.13
.11
.11

3.65
3.65
3.66
3.65
3.63

4.07
4.08
4.08
4.07
4.04

.04
1.81
.38
1.51
.52
.70
.42
.55
.56
.55
.53
.52

Ifextot yield* weakly averages oonputod from daily olosing 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.
Tor spreads, high refers to widest, and low to narrowest.

y




SHORT- AND INTERMEDIATE- TERM INTEREST RATES^
BANKS AND OTHER PRIVATE BORROWERS

S10CK UCHAHGl
-ICAU I PAWS

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Going Hot.

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3-6 Monl^~

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1111111111111
I960

1961

K
1962

19*1

1964

Exhibit D - Part II
Prime
rate 1/

Finance company
paper 2/

Federal
funds 3/

Spread between
3-mo. bills and
finance co. paper

Date

Stock Exchange
call loan JL/

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

3.50 ,
5.50
4.50
4.50
4.50
4.50
4.50

3.50
5.00
4.50
4.50
4.50
4.50
4.50

1.13 (8/8)
.13 (5/29)
5.13 (1/22/60) 4.00 (5/33/60)
2.50 (8/5/61)
.43 (1/27/61)
3.25 (7/20/62) 3-00 (12/28/62)
2.88 (6/1)
1.30 (2/26)
3.88(12/27)
3.50(12/27)
3.13(5/31)
2.45(7/26)

Dec.
Jan.
Jan.
Jan.
Jan.

4.50
4.50
4.50
4.50
4.50

4.50
4.50
4.50
4.50
4.50

3.88
3.88
3.88
3.88
3.78

(per cent)

27
3
10
17
24 j>/

3.50
3.44
3.50
3.50
3.45

.

-.35
1.02
.11
.56
.19
.36
.09
.36
.36
.35
.34
.26

2?rfeekly rate ahotro ia that in effeot1 at end ofperiod.Stock Exchange call loan rata is going rate
on call loans aeoured by customers stock exchange collateral at New York City banks.. Prime rate
is that charged by large banks on short-term loans to basinsss borrowers of the highest credit
standing.
2/ Average of daily rates published by finance companies for directly placed paper for varying maturities
in the 90-179 day range.
3/ Weekly average of daily effective rate, whioh is the rate for the heaviest volume of purchase and
sale transactions as reported to the Federal Reserve Bank of New York.
Note.—Highs and lows are for individual series and may be on different dates for different series.
For spreads, high refers to widest, and low to narrowest.




f
IXHIHI I

Pail

STOCK MARKET

/

SIOCI •41*11 (11*11
Glutei IN sunt

LSJrl I I I I I I I I I I I I I I I I I I I II I I I I I I LLL 1 I I II I I I I I I I I I I L
ifte
MM
Mil
MM
MM
Exhibit B - Part II

Date

Stock price
Index 1/

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

2.82

1961-62 - High
Low
1963 - High
Low

72.04(13/8/61)
52.68 (6/22/62)
74.44(12/27)
64.10(3/1)

3.96
3.01
3.36

November
December
Jan. 10
Jan. 17
Jan. 24 2/

72.62
74.17
76.24
76.56
77.11

3.14
3.13
3.06
3.05
3.03

10.1
2.4
6.4
3.2

5,602(12/61)4,259 (12/61)1,377(8/30/61)
4,876(7/62) 3,562 (?/62) 1,269(9/26/62)
7,298(11/63)5^586(11/63)1,738(12/25)
5,595(1/63) 4,208(1/63) 1,378(2/23)

5.2
4.7
5.4

7,298
7,241

5,586
5,514

6.1
5.3

Not available* j/ Piillndnarye

3/ Averages of dally tmdlng volume on the Mew York Stook Bxohange,
,

J




*lo>

1,712
1,727
1,729
1,723

EXHIBIT F. P a r i

MORTGAGE AND BOND YIELDS
Monthly

HOME MOIIGACiS:

IfSt

Conven- Spread beFHA
tween yields
morton conv. &
gages
gages 2/ FHA mtes.
2/

Date

1956
1957
1958
1959-60
1962-63

-

1*59
lUO
Exhibit F - Part II

Low
High
Low
High
High
Low

4.68
5.20
6.00
5.63
5.35^ 5.55
6.24
6.30
5.72
5.95
5.43
5.80

.47
.47
.15
.23
.38
.23

Aaa Corporate

Spread between yields on
new corporate bonds and

New*/ |Seasoned^/
3.08
4.94
3.65
5.25
4.72
4.12

3.08
4.12
3.57
4.61
4.45
4.22

-

FHA mtgs.
.76
1.58
.88
1.69
1.50
1.05

Seasoned bds.

1.03
.05
.73
.39
-.16

—
4.29
1.15
1963 - August 5.44
5.80
.36.
4.29
4.31
1.09
.03
September 5.43
5.80
.37
4.34
.03
4.32
1.08
October
5.43
5.80
.37
4.35
4.33
1.05
.06
November
5.44
5.80
.36
4.39
4.35
.14
.95
December
5,44
5.80
6.69
Neither mortgage nor bond yields take into account servicing coats which are much higher for mortgages
than bonds. Generally, bonds pay interest semi-annually) mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the

2j Based on THA field-office opinions about average bid prices in the private s eoondary market for
new-home mortgages for isroediate delivery. Data relate only to 2 5-year mortgages with down payments
of 10 per cent or more, weighted by probable volume of transactions. Yields computed by 7RB,
assuming 25-year mortgages are paid off in 12 ^ars. Dashed lines indicate periods of adjustnmt
to changes in the contractual interest rate,
3/ Based on FHA field office opinion on typical interest rates (rounded) on conventional first
mortgages prevailing in the market areas of insuring office cities. Beginning with April 1961,
jra,te relates only to new-home mortgages; prior to that date, rate related to both new as well as
existing-home mortgages. Dashed line indicates this change in the series.
4/ See note for Exhibit G.
2/ Moody's Investor Service. Monthly averages of daily data. See Exhibit A.




x

EXHIBIT O. P o f l 1 ,

YIELDS ON NEW AND SEASONED CORPORATE BONDS

HEW ISSUES

I I I I I I I I I I I I I I I I I
Mil

Mi<

Exhibit 0 - Part II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number Am r 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

50.0

12.0

4.33*
4.35

15.0
100.0
33.5

4.34
4.34
4.32

40.0
75.0
30.0

4.37
4.35
4.41
4.21*

22.0

Number Am't of issues Average
of
included (mil.
yield
Issues of dollars)
(per cent)
Nov. 22
29
6
13
20
27
1964
Jan. 3
10
17
24
Dec.

4

115.0

4.42

2
2
1

60.0
95.0
150.0

4.41
4.45
4.54*

1
1
1

130.0
5.0
15.0

4.50
4.44
. 4.41

Notes Averages of offering yields on ml), new iaauea of publicly offered ooxporate bonds rated Aaa. i» ma/T"
A by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline
sad foreign companies, and bonds guaranteed by the Federal Government) weighted by else of offering*
Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual
reef fe ring yield the excess of the weekly average yield for seasoned tends of the appropriate indastryquality group over the composite average for seasoned Aaa-rated bonds (Moody's). Averages considered
unrepresentative because of special characteristics of tte offerings included are denoted by an asterisk^




I)

Exhibit H
Long-term Corporate ancB State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Caoital
Corporate 1/
1964
1
1963

1 ' 1962

613
594
1,144

5,
859
807

930
904
1,013

1,113
760
1,132

676
667
795

582
749
579

October
November
December

&/1.062
p/ 830
e/1,282

ist
2nd
3rd
4th

January
February

e/

850

£/ 732
£/ 726
2./ 974

876
1 ,133
628
873
912
786

!>/
£/
E/

647
706
447

612
544
427

835
703
1,103

2/1,103
£/ 639
e/ 400

650
578
550

- i

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

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

2/2,431
2/2,672
2/1.800
e/2,142

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

1
r

5,198
7,337
&/io,sio

5,264
7,173
9,814

2/5,103
2/6,903
e/9,045

5 ,208
6 ,790
8 ,568

July
August
September

1st half
Three quarters
Year

e/ 900

State and Local 2/
1962
1
1963
1

866
861
2./ 945

April
May

quarter
quarter
quarter
quarter

1964

j>/
£/

.

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

quarter
quarter
quarter
quarter

Year

-•€'/'
£/
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.




i

H. 14

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

Quarter
or
Month

Total

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

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

1963 - I
II
III
IV e/

2,700
3,634
2,466
3,421

1,108
1,389
898
1,289

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

1962 - 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
1,347

350
259
499
380
550
459
279
336
283
511
205
573

July
Aug.
Sept.
Oct.
Nov.
Dec.
1963 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct. £/
Nov. jV
Dec. e/

Net proceeds for
new capital 1/ 2/
Mfg.

Public Communi- Other
utility ca tions 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
933
375
568

456
231
275
321

717
794
659
986

287
424
287
360

128
434
109
n. a.

947
591
806
884

326
794
285
505

236
221
150
-123

. 842
1,241
897
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
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
76

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

•

1964 - Jan.
Feb.
Mar.
J
Preliminary, e/ Estimated by Federal Reserve. 1/ Gross proceeds exceed net proceeds
Dy the cost of 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.




. - .Lg.
&

Other Security Offerings
(In millions of dollars)

1964

Gross long-term 1/
Foreign government 2/
|
1963
|
1962
1964

January
February
March
April
May

232
133
76
57
114
11
63
83

July
August
September
October
November
December
Year

January
February
April
May
July
August
September
October
November
December
Year

Federal agencv 3/
1963
1
1962

148

246
156

186

461

--

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

E/174
2/200
e/ --

e/ 769

737

e/1,167

£/
£/

1/
/

I

__

Net Short-tem 4/
State and local Government 5/
75
18
272
466
-367
-186
589
127
-30
-84
-10
-118
. 62
78
208
339
-406
-173
259
71
234
146
-161
2/-346
2/ 685

378

W8
SH

459
150
175
--

1,188

"**
Federal agencv 3/
-106
247
-156
-189
226
-482
292
-364
82
195
284
319
261
414
227
327
258
-157
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
4
included. Long-term securities are defined as those maturing in more than one year.
' •
2/ Includes securities offered in the United States by foreign governments and their
political subdivisions and international organizations. Source: Securities and Exchange
^i
Commission. 3/ Issues not guaranteed by the U. S. Government. Source: long-term, Securities and Exchange Commission; short-term, Treasury Department and Federal Reserve.
. -Vj
4/ -TKese_data differ from those in Exhibit H and above in that they represent new offering^H
less retirements, whether from the proceeds of refunding issues or from other funds. Data ;$J
include only issues with original maturity of one year or less. 5/ Principally tax and bot|d£
anticipation notes, warrants or certificates and Public Housing Authority notes. In some
7
instances PHA notes included may have a somewhat longer maturity than one year. Source: Bocrij
Buyer and
Federal Reserve.
^




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)

Month

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

Total

Corporate
Bonds
Convertible
(Other than
convertibles)
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

State
and
Other 2/
government

20
35

19
26
22
146

—
—
--. —

19
18
22
66
63
32

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

75
48
63
134
43
460
60
20
174
200

Large Individual Issues Offered January 1 through 24

Type

CORPORATE
General Amer. Transp.
Corp.
New York Tel. Co.
Transcontinental Gas P.L.
Corp.
*Pan American World Airways
Texas Power & Light Co.
*Potomac Elec. Power Co.
STATE AND LOCAL GOVERNMENT
State of California
Alabama Highway Auth.
Public Housing Auth.
Toledo Lucas Co. Port Auth.,
Ohio
St. Louis Met. Swr. Dist.,
Mo.
Greater Johnstown Wtr. Auth.,
Pa.
Dallas, Texas
Digitized
FRASER
New Yorkfor
City,
N.Y.

Equip." tr. cert.
Deb.
1st mtg. p.l. bds.
Conv. sub. deb.
S.F. deb.
Com. stk.

G.O.
Rev.-Q.Ut.
Rev.-Rent.
Rev.-Rent.
G.O.
Rev.-Ut.
G.O.
G.O.



Amount
(millions
of
dollars)

Maturity

Coupon
rate or net
interest

ing
yield

40.0
130.0

1984
2004

4-5/8
4-5/8

4.59
4.53

40.0
60.0
15:0
21.7

1984
1984
1989

4-3/4
4-1/2
4-1/2

4.82
4.50
4.45

80.0
15.0
140.3
18.9
46.9

1965-90 n.a.
1970-84 3.44
1964-2004 3.36
1964-84
3.96
2004

2.75-3.47
1.90-3.50
2.80-3.60
. 3.95

16.0

1965-84 • 3.00

2.00-3.10 Aa

11.8
12.0
114.4

1965-2004 3.88
1965-84 3.00
1965-94 3.20

2.25-3.90 A
2.10-3.10 A
2.10-3.60 A

A

6a
Aa

A
Aaa

H. 14
K-2
Large Individual Issues Offered January 1 through 24 (cont'd.)

Type

STATE AND LOCAL GOVERNMENT
(continued)
Philadelphia Sch. Dist.
Pa.

Amount
(millions
of
dollars)

Maturity

1966-89

Coupon
Offerrate or net ing
Rating
interest
yield

3.15

2.25-3.30-^

OTHER

*--Rights offering, n.a.--Not available.
If
Includes corporate and other security offerings of. $15 million and over; State
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.It.,
revenue bonds secured only by revenue 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/ 1/20 per cent bonds due 1989 and 1/4 per cent bonds due 1990 not publicly reoffered.
5/ 1/20 per cent bonds due 1989
' reoffered to yield 4.40%.




V
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

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

During month following
date shown
State and
Other 2/
Corporate
local govt.
269
167
142
376
149
223
170
221
158
240
145
392
305

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

25

Subsequent to
date shown
State and Other 2/
local eovt.

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

45
40
460
75
20

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 24

Issuer
CORPORATE
American Tel. & Tel. Corp.
: *Northern Natural Gas Co.
*Dallas Pwr. & Lt. Co.
1- *Potomac Edison Co.
*Southern Co.
STATE AND LOCAL GOVERNMENT
Duval Co. Spec. Tax Sch.
Dist. No. 1, Fla.
Commonwealth of Massachusetts
Commonwealth of Puerto Rico
*Bowling Green, Ky.
State of Delaware
Milwaukee, Wisconsin
Chesterfield Co., Va. ,
*Fort Worth, Texas
*State of Oregon
Milwaukee Co., Wisconsin
Penna. Gen. State Auth.
*Buffalo, New York
p r i n c e Georges Co., Md.
Alabama State Docks Dept.

Type

Com. stk.
Deb.
S.F. deb.
1st mtg. bds.
Com. stk.

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




Amount
(millions of
dollars)
1,600.0
50.0
15.0
16.0
30.0

10.0
33.4
53.0
10.0
24.8
15.6
11.5
14.1
30.0
12.1
50.0
14.3
18.9
10.0

Approximate date of
offering
April (rts. ex.)
February 10
February 12
February
February

January 28
January 28
January 29
January 29
February 4
February 4
February 5
February 8
February 11
February 18
February 18
February 20
February 25
February 27

H. 14
L-2
Forthcoming Large Offerings, as of January 24 (Cont'd.)

Issuer
STATE AND LOCAL GOVERNMENT
(cont'd.)
Jacksonville Expressway
Auth., Fla.
Pittsburgh, Pa.
Dade County, Florida
Houston, Texas

Type

Amount
(millions of
dollars)

Rev.-Q.Ut..
G.O.
G.O.
G.O.

73.2
35.0
46.0
11.1

Approximate date of
offering

February-March
Indefinite
Indefinite
Indefinite

OTHER

*--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.--Deletions for reasons other than sale of issue: None.




H.14

Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States •
Part I:

Sale
Date

1

Amount
(millions of
dollars)

Issuer and Description 'of Issue

A.
12/24

Sold November 1 through January 24'

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

B.
2/27

Public Offerings

7.5

Prospective Offerings

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




Part II:

Date
reported
11/27

1/7

Private placement—Reported November 1 through January 24

Amount
(millions of
dollars)
15.0

Issuer and Description of Issue

Home Oil Co., Ltd.--6-1/4% collateral trust bonds,
maturing 1983, placed at p a r — n o information available
on takedown
Laurentide Financial Corp., Ltd.--5-1/4% collateral trust
notes,maturing 1989--no information available on take-

Note: 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 of 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.