Full text of H.16 Capital Market Developments : January 29, 1968

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Not for Publication

£ &

_____

DECONTROLLED AFTER SIX MONTHS
January 29, 19o8
CABLIAjrHARKETS DEVELOH4ENTS
IN THE UNITED STATES

j

anfr municipal bond markets. The volume of new, publiplyoffered, corporate land municipal securities expected this week is below th
lie
average weekly volume over the past year. Featured in the especially smalLI
corporate volume will be Commonwealth Edison's $50 million bond offering.
The largest municipal issue will be the Pennsylvania General State Authority's
$50 million revenue bond offering.
Long-term Public Security Offerings
(In millions of dollars)
Corporate
New Capital | Refunding

State & local Government
New Capital | Refunding!

Sold:
393

249

19
26

r/301
150

r/194
351

2

123

218

52 weeks avg.
January
Scheduled:
February
V

Federal Reserve estimates are based upon published reports of
issues sold and scheduled for offering; coiporate rights offer:J i g s
are included as of date subscription rights expire.

Although yields on seasoned corporate bonds declined last week
yields on new issues advanced rather sharply. These higher yields were :Ln
most cases sufficient to attract investors to the week's offerings -- about
80 per cent of the week's non-convertible debt issues were spoken for by the
end of the week — but necessitated the release from syndicate of three older
issues. In free market trading the yields on these issues advanced from 10
to 14 basis points.
Yields on seasoned municipals declined last week, and new issu
were received with considerable enthusiasm. About 90 per cent had been sold
by the weekend. Particularly encouraging was the performance of the large
New York City issue, for which a net interest cost in excess of 5 per cent had
been feared. Awarded to a group offering a net interest cost of only 4.79,
the issue sold out quickly.
Home-mortgage interest rates and other terms. Yields on FHA-insured
new-home mortgages sold in the secondary market rose 4 basis points further in
December. The December rise, which marked the eighth consecutive month of
increase, brought such yields back to the peak of 6.81 per cent first reached
in November 1966. Even so — and with related discounts also back to a historic




H. 14
Yields of Security Markets
High Grade
Notes and Bonds

Change from
preceding week

Levels Latest Week

Corporate
+ 13

6.34

New
Seasoned

6.12

-

2

U.S. Government
5.20
5.55

Long-term
3-5 year.
State and local Govt.
Moody's Aaa
Std. & Boor's high grade

3.98
4.30

Money Market
5

4.68

Federal funds
Treasury bill's
3-motith
6-month

4.97
5.16
Corporate Bonds Still in Syndicate

Date
• Offered

Amount
(millions of $)

Issuer

Reoffering
Yield

Rating

Estimated proportion sold

1/24 '

25.0

Oklahoma Gas & Electric,
6-3/8's - 1998

6.38

Aa

20%

1/23

25.0

Texas Power & Light,
6-5/8's - 1998

6.50

Aaa

60%

1/17

18.0

Minn. Power & Light,
6-1/2's - 1998

6.43

60%

Blue List of Municipal Dealers' Advertised Inventories
Latest Week
417(1/24/68)




End of Previous Week
394

Recent High
849(4/26/67)

J

H. 14

STOCK MARKET CREDIT
(In millions of dollars)

Months
Total

Customer
Net Debit
balances with
NYSE member
firms

Credit
Bank lorns to others
than brokers and
dealers for purchasing & carrving secur.

Broker & 1Dealer Credit
Customers'
Money
net free
Borrowed
Cust. Other credit
coll. coll. balances
1
• •
1,873 430
lj,069 (1/55)

Outstanding:
: 1955-56 High

4,047 (5/56) 2,823 (12/56)

1957-58 Low

3,554 (1/58) 2,482 (12/57)

1,060(11/57)

1,344

4,764
4,142
5,602
4,876
7,298
6,833

1,373(5)
1,121 (5)
1,377 (8)
1,269 (9)
1,727 (12)
1,865 (2)

2,044
1,801
2,572
1,856
3,892
2,882

3,393 517
2,889 687
n. a. n. a.

1959
1960
1961
1962
1963
1965

-

High
Low
High
Low
High
Low

(4)
3,401 (4)
(5) . 3,004 (7)
(12)
4,259 (12)
3,562 (7)
(7)
(11)
5,586(11)
4,863 (7)
(7)

1,255 (4/56)

1964 - Dec;
1965 - Dec.
1967 - Dec.
Change in
outstandings

7,053
7,705
10,347

5,079
5,521
7,883

1,974
2,184
2,464

1966 - Dec.
1967 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct. r/
Nov. r/
Dec.

91
-98
70
393
161
116
248
467
69
293
r/271
r/ 62
~ 852

112
-39
59
369
101
107
240
437
4
218
r/185
*/ 43
~ 830

-21
-59
11
24
60
9
8
30
65
75
86
19
22

188
318
237
385
235
597
446

76 230
-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. n. a.
n. a.
n. a.
n. a. n. a.
n. a.

807 (4/57)'
1,257
940
]L,508
]1,091
]1,211
:5,192

(3)
(4)
(4)
(9)
(11)
(8)

],169
], 666
2 ,763

.I
105
277
22
199
-57
142
11
110
-60
120
112
-13
263

Note: With the exception of bank loan data, figures are reported to the New York Stock
Exchange 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.
n.a. —

Not available,

r/




Revised.

V
H. 14

V

high, 6.8 points — the gross yield spread between FHA-insured mortgages
and new corporate bonds continued unusually narrow in December. While some
further improvement seemed indicated in January, the December spread in
favor of mortgages amounted to just 30 basis points, compared with the record
low of 24 basis points in November and a more normal spread in excess of 100
basis points in the early months of 1967.
Interest rates on conventional first mortgages on new and existing
homes also increased again in December
by 5 basis points — and returned
to their November 1966 peaks of 6.70 and 6.75 per cent, respectively, according
to the Federal Housing Administration, which shows these averages rounded to
the nearest five basis points.
In addition, contract rates on conventional first mortgages on new
homes as reported by the Federal Home Loan Bank Board turned sharply upward
in December. These series, which tend to lag behind the Federal Housing
Administration series, had shown relatively little change in other recent
months. While still below earlier highs, they averaged 6.45 per cent for loans
on new homes and 6.51 per cent for loans in existing homes in December.
However, associated nonrate terms — also reported by the Federal Home Loan
Bank B o a r d — became somewhat more liberal in December, with maturities
lengthening to 24.8 years in the case of new-home loans and to 27.7 years
for loans on existing homes. And while loan-to-price ratios held near previous
levels of 73.8 per cent for new-home loans and 72.7 per cent for existing-home
loans, purchase prices of homes involved in transactions generally tended higher
and loan amounts remained at or above earlier advanced levels.
Stock market credit. Although stock market credit advanced sharply
in December, the magnitude of this advance is grossly over-stated in the
accompanying table. The bulk of the increase reported in the table — $830
million — occurred in customers' net debit balances secured by securities
other than U.S. Governments; judging from the New York Stock Exchange margin
panel data, roughly 75 per cent of this increase represents float caused by
significantly increased trading volume and delays in holiday mail deliveries.
Actual margin debt increased $220 million in December, an increase which —
while smaller than that of customers' net debit balances — was larger than
that in any month since September. Bank loans to others than brokers and
dealers meanwhile rose only $22 million to $2,464 million. Customers net
free credit balances rose $263 million to $2,763 million.
. Stock prices. Stock prices declined sharply during most of last
week while trading volume remained relatively heavy despite abbreviated trading
hours. At the close Friday, Standard & Poor's index of 500 stocks stood at
93.45 down 1.79 from the previous Friday. Trading volume averaged 10.9 million
shares a day.
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, Port 1

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

C O R P O R A T E Am#

U.S. GOVERNMENT

___r
STATE AND LOCAL GOVERNMENT Aaa

1963




1964

1965

1966

1967

1968

Exhibit A -- Fart, il

1959-60
1966 1967 Dec.
Jan.

High
High
Low
High
Low

29
5
12
19
26|>/

Corporate
Aaa 1/

| S t a t e and
U.S. Govt. |
local
long-term 2/, government
Aaa 3/
(per cent)

4.61(1/29/60)
5.52(9/9)
4.73(1/7)
6.24(12/29)
5.00(2/10)

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)

6.24
6.24

5.35
5.23
5.12
5.18
5.20

4.15
4.15
4.08
4.03
3.98

6.20

6.14
6.12^

Spread between
U.S. Govt, and
State and
Corporate
local Aaa
Aaa
.59(8/5/60)
.84(12/30)
.14(2/18)
.92
.44
.89
1.01
1.08
.96
.92

.92(4/22/60)
1.19(2/11)
.77(9/2)
1.51
.74
1.20
1.08
1.04
1.15
1.22

2./ Preliminary.
Average term of bonds included is 22-24 years.
1/ Weekly average of daily figures
The series includes bonds due or callable in 10
2/ Weekly average of daily figures
years or more.
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.




EXHIBIT B, Port 1

L O N G - T E R M B O N D Y I E L D S , L O W E R GRADE
Weekly

:

CORPORATE B a a

STATE AND LOCAL GOVERNMENT Baa




1964

1965

1966

1967

1968

Exhibit B -- Part II

State and
local govt.
Baa 3/

Corporate
Baa 1/

Date

(per cent)
1959-60 - High
Year end- 1965
1966 - High
Low
1967 - High
Low
Dec.
Jan.

Note:

29
5
12
19
26£/

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

6.97
6.96
6.86
6.79
6.80 ^

4.73
4. 73
4.65
4.65
4.62

.73
.72
.66
.65
.68

.58
.58
.58
.62
.64

For footnotes see Exhibit A.




Spread between
Aaa and Baa
State and
Corporate
local govt.

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
Weekly

6-MONTH BILLS

3 - 5 YEAR ISSUES

F.R. DISCOUNT RATE

3-MONTH BILLS
Market Yield*

3 ^ 7

i i r i • i i ii ii i 111 i i I'II i i • i • i I—I I II I ill I
1963




1964

1965

1966

1967

1968

Exhibit C -- Part II

Discount
rate

V
1959-60 - High
Year end - 1965
1966
1966 - High
Low
1967 - High
Low
Dec.
Jan.

29
5
12
19
26^/

4.00
4.50
4.50
4.50
4.50
4.50
4.00
4.50
4.50
4.50
4.50
4.50

.3-month
bills U

Yields
6-month
bills 2/

3-5 year
issues U

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)

5e07(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)
5.50(12/15)
4.36(4/7)

.79
.19
.12
.52
o 09
.62
.01

5.49
5.39
5.30
5.25
5.16

5.75
5.61
5.48
5.52
5,55

.50
.40
.24
.23
.19

4.99
4.99
5.06
5.02
, 4.97^

Spread between yields on
3-mo. bills and yields on
6-mo. bills|3-5 yr. issues
1.81
.43

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.




.06
.78
.01

1.61

.02
.76

.62
.42
.50
.58

EXHIBIT

D. Part

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

PRIME RATE
FINANCE COMPANY PAPER

F.R. DISCOUNT RATE

FEDERAL FUNDS

1963




1967

1968

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 end- 1964
1965
1966
1966 - Low
1967 - High
Low
Dec.
Jan.

29
5
12
19
262/

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)
5.50
5.50
5.50
5.50
5.38

4.00(5/13/60)
4.00
4.63
5.63
3.55(1/21)
5.25(1/6)
3.40(10/27)
4.66
4.56
4.53
4.73
4.68

1.02
.23
.28
1.08
.20
1.33
.21
•51
.51
.45
.48
.41

1/ Weekly rate shown is that in effect at end of period. Prime rate is that
~ charged by large banks on short-term loans to business borrowers of the highest
credit standing.
,
,
2/ Average of daily rates published by finance companies for directly placed paper
~~ for varying maturities in the $0-179 day range.
3/ Weekly average of daily effective rate, which 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.




EXHIBIT

E, Port

1

STOCK MARKET
Billions

of

1941-43

averoge=10

dollars

PRICES

STOCK MARKET CREDIT
* CHANGE IN SERIES
Millions

of shares

14

• i
V

-

' ;
10

VOLUME

-

1

A|U \

6

2

YIELDS

1 1I 1I ,
1i 11 l1 11 11 ,I 1I 11-1
1963




| ||'| ! | || I|I I'I| M| I |M
1964

1965

u

I I 1 M 1 N 1 Mr i i
1966

i i t n
1967

1/ i I

i ii i l l

ill

1968

ii

Exhibit E -- Part II

Date

1961-62 - High
Low
1966 - High
Low
1967 - High
Low
Nov.
Dec.

Stock price
index 1/
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)
92.66
95.30

1968^Jan.

Common
Trading
Stock market customer credit
stock
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
10.1
5,602(12/61) 4,259(12/61) 1,418(5/9/62)
3.96
2.4
4,424(1/61)
3,253(1/61) 1,161(3/8/61)
3.01
10.7
7,997
5,835
2.241(7/6)
3.97
5.0
7,302
5.169
2,097(12/14)
3.01
12.3
10,347
7,883
2,507(11/1)
3.58
6.9
7,345
5,200
2,055(1/25)
3.18
3.09

10.6
11.5

r/9,495
r7l0,347

7,055
7,883

2,442
2,464

5
95.94
3.08
12.2
n.a.
2,465
12
96.72
3.05
13.2
n.a.
2,449
19
95.24
3.09
12.8
n. a.
2,432
26p/
93.45
3.18
10.9
n.a.
n.a. Not Available. £/ Preliminary. r7 Revised.
JL/ 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.
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.
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 accountsexcludes 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.




EXHIBIT F. Port I

MORTGAGE AND BOND YIIIDSXV
Monthly

Aaa CORPORATE BONDS:

1959

1960

1961




1962

1963

1964

1965

1966

1967

1968

Exhibit F
Conventional
mort25-year 30-year gages 3/
FHA
mortgages

1/

Part II

Spread between yields
on conv. &
FHA mort-^y
Rapes

1957
1958
1959-60
1961-66
1966
1967

-

High
Low
High
Low
High
High
Low

2/

3/

5.44

Ne1

~

6.00
5.55
6.30
5.80
6.70
6.65
6.40

.47
.15
.23
.25
.30
.11
-. 12

4.94
3.65
5.25
4.12
5.82
6.53
5.20

4.12
3.57
4.61
4.19
5.49
6.07
5.03

6.55
6.55
6.55
6.65
6.70

-.05
-.08
-.10
-.12
-.11

5.89
5.88
6.12
6.53
6.51

5.62
5.65
5.82
6.07
6.19

1.69
.77
1.11
1.26
.24

1.03
.05
.73
-.16
.46
.46
.. 17

.71
.75
.53
.24
.30

.27
.23
.30
.46
.32

1.58

.88

mm#

1967 - Aug.
Sept.
Oct.
Nov.
•Dec.

1/

5.63
5.35
6.24
5.43
6.73

Spread be tween
yields or new cornds and
6/ porate be
Seasoned- FHA mtgs Seasoned
4/
bonds

Aaa Corporate
Bonds

6.81
6.81
6.29

6.60

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

6.63
6.65
6.77

6.81

much
•y;

are for 25-year mortgages through June 1961; 30-year mort-

gages thereafter.
Moody1*^Investor'service. Monthly averages of daily data.
n.a. -Not available.




See Exhibit A.

%
EXHIBIT f. Port m

CONVENTIONAL

MORTGAGE

TERMS

^

Monthly

Yeori

MATURITY

NEW

EXISTING

LOAN/PRICE
•

•

. .- . •

1

RATIO

1

1-

!

i

i

•!

I
NEW

V*x
A "

r

—

"

" T T
L;-:.,

/

^

^ —

i

-

!

'

I

EXISTING

1

1

I.,;.
1964




1966

1968
* CHANGE IN SERIES

Exhibit F
New Homes
Con- Fees &
tract Charges Maturity
(Years)
Rate (Per
cent)
(Per
cent)
2/

Part IV

Loan/ Loan
Price amt. '
ratio (Thous.)
(Per
cent)

Existing Homes
Loan/ Loan
Con- Fees &
tract Charges Maturity Price amt.
(Years) ratic (Thous.)
Rate (Per
cent)
(Per
(Per
cent)
cent)1
2/

New Basis
1966
Dec.
1967
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. r/
Dec.

6.49

1.25

6.47
1.16
6.44
1.06
6.41
1.05
6.37
0.99
6.28
0.96
6.29
0.93
6.34
0.89
6.34
0.83
0.83
6.37
6.37
0.89
6.37 r/0.81
6.45
0.93

23.3

72.4

18.5

6.55

0.81

23.8
73.3
19.3
6.54
0.78
23.6
73.8
18.3
6.50
0.75
23.6
74.1
19.0
6.44
0.77
23.6
73.3
18.9
6.36
0.72
24.2
74.8
19.6
6.31
0.68
24.0
73.6
6.30
19.4
0.67
24.2
20.1
6.33
74.4
0.70
24.2
74.3
20.3
4.38
0.71
24.2
20.2
73.6
6.37
0.72
24.3
20.4
6.42
74.0
0.77
24.2 r/73.6 r/20.4 r/6.43 r/0.75
24.8
20.9
6.51
73.8
0.77

20.2

70.9

14.7

20.6
71.4
20.3
71.6
21.0
71.8
20.8
72.0
21.1
72.3
21.4
72.2
21.3
72.7
21.5
73.1
21.2
72;8
21.2
72.7
21.5 r/72.6
72.7|
21.7

15.2
15.3
15.4
15.6
16.1
16.1
16.4
16.6
16.2
16.2
17.1
17.1

* New Series tJ Revised.
.
1/ Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of
characteristics of conventional first mortgages originated by major institutional
lender groups, (including mortgage companies) for purchase of single family homes.
Data exclude loans for refinancing, reconditioning, or modernization; construction
loans to home-builders; and--in this exhibit--permanent loans which are coupled with
construction loans to owner-builders. Data are still in a developmental stage and
may reflect seasonal influences which cannot yet be measured because the series go
back only to end of 1962. Related series on conventional mortgage rates only, based
on unweighted opinions of regional-office directors of the Federal Housing Administration, are available somewhat sooner than the results of FHLBB-FDIC survey, and
are included — in the case of new home mortgage rates—in Exhibit F. Parts I and II.
2/ Fees and charges--expressed as a percentage of the principal mortgage amountj-include loan commissions, fees, discounts, and other charges which provide added
income to the lender and are paid by the borrower, They exclude any closing
related solely to transfer of property ownership.




EXHIBIT

G, Port 1

YIELDS O N N E W A N D SEASONED C O R P O R A T E B O N D S
Weekly

A d j u s t e d to

Aao

Boi

NEW ISSUES

SEASONED A M

1964




1965

1966

1967

1969

Exhibit G - II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis

Number
of

Number
|Am't. of issues , Average
°
yield
included (mill.
(per cent)
issues 1 of dollars)

Am't. of issues Average
yield
included (mill.
(per cent)
of dollars)

f

Monthly averages:

Weekly averages:
High
Low

496 o0
481.0
1,073.0
916.0
570.0
993.0
772.0
1,125.0
358.0
716.0
356.5
355.0

6
7
20
20
14
23
14
17
10
15
13
5

1967 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1

.

6.59(11/17)
5.11(2/10)

5.38
5.20
5.31
5.39
5.66
5.79
5.78
5.89
5.88
6.12
6.53
6.51

Dec.

Jan

1
8
15
22
29

7
4
1

5
12
19
26ef

1
4
3
3

231.5
230.0
125.0
—

—
—

6.51
6.55
6.42*

•

—

15.0
353.0
63.0
70.0

6.32
6.18
6.21
6.34

nn
fl11
r i P >W 1 R R 1 1 P R o f nubliclv offered corporate bonds; rated Aaa.
Aa', and A by Moody's Investors Service (except serial and convertible issues, offering? of natural
gas pipeline and foreign companies, and bonds guaranteed by the Federal Government) weighted by
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.




• tn' D 1 rlc

Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New C

January
February
March

e/ 1,800 *
e/ 1,775/

April
May
June
July
August
September
October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

1,482
1,196
1,438

1,188
858
865

1,553
1,058
2,364

1,112
1,218
1,497

1,193
901
I,141

2,457
2,406
1,723

1,039
1,670
1,382

942
852
1,256

701
773
1,020

2,296
p/1,461
e/2,250

829
1,085
1,635

960.
£/1,353
e/1,050

755
969
940

5,363
6,058
6,586
e/6,007

4,985
4,975
4,091
3,550

4,116
3,827
3,050
e/3,363

2,911
3,235
2,494
2,664

11,421
18,007
e/24,014

9,959
14,050
17,601

7,943
10,992
e/14,356

6,146
8,640
II,304

1,648
1,398
2,317

1,302
1,237
2,446

1,973
1,474 „
2,611

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

Quarter
Quarter
Quarter
Quarter

17

5,207
5,913
6,338

4j,924
4,,884
3i,969
3,,188
17,,269

Year
Estimated by Federal Reserve.

1




State a
e/1,150J
~ 1,100v

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 <zapital ly' 2/
and refunding 1/
Total
Bonus
Common Memo:
Other
Mfg. Public CommuniPublicly Privately and
Foreign
Utility cations Issuers
Offered Placed
pfd. issues
stock included
4,197
2,256
1,627
314
154
1,558
657
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

1966 - Dec.

1,662

1967 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. 2/
Dec. e/

1,684
1,418
2,362
2,016
1,519
2,673
2,590
2,481
1,763
2,417
1,493
2,300

1,811
1,465
1,552
2,122

390
726
678
1,045

980

555

127

745
900
1,618
1,368
965
1,684
1,889
1,813
902
1,375
645
1,075

848
362
601
410
396
659
487
418
647
572
543
1,000

91
156
143
238
158
330
214
250
214
470
305
225

£/
1/
2/

60
65
234
59

2,442
3,014
2,792
2,693

997
1,268
1,219
1,203

24

673

35
624
10
563
15
1,254
16
1,128
32
588
17
1,298
213
925
1,229
13
8
637
40
918
r/19
522
n. a. 1,100

543
548
595
392

1,382
1,228
1,979
1,733

409

152

401

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

Preliminary, e/ Estimated by Federal Reserve, r/ Revised.
Gross proceeds exceed net proceeds by the cost ol flotation.
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.




|
!

Exhibit J
Other Security Offerings
(In millions of dollars)
Gross Long-term 1/
Federal Agency 3/
Foreign Government 2/
1966
1967
1965
1966
1967
January
February
March
April
May
June
July
August
September
October
November
December
Jan; - Nov.

196
223
27
13
170
22
586
193
66
139
1,635

Year

January
February
March
April
May
June
July
August
September
October
November £,/
December p/
Jan. - Dec. p/
Year

12
40
40
66
69
76
72
7
50

218
38
73

74

91
33
74
5
52
75

*529

659

597

661

1,251
783
750
650
810
650
407
250
599
708
710

2

7,568

965

503
410
392
699
1,030
1,084
799
400
450
800
239

129
185
325

6,567

553

6,806

732

775
23 V
150
375
375
179

New short-term 4/
Federal Agency ,/
State and local Government 5/,
137
-179
308
238
103
179"
174
-552
-24
91
39
387
117
-454
450
-458
-594
-319
-11
-559
718
647
827
580
509
109
.85
204
462
515
237
284
93
.
-82
-334
-128
132
-590
-153
119
-103
219
206
-262
-270
408
593
270
105
1,407
-652
152
-161
200
309
606
-555
59
464
-48
202
573
-283
503
274
-33
219
-76
n. a
-366
-570
-311
801
310
1,286
422
2,318
801
310
422
1,286
2,318

p/ Preliminary, e/ Estimated by Federal Reserve, r/ Revised.
JV Th<ese data
differ from those in Exhibit H in that refunding issues, as well as new capital ssues,
year.
are included. Long-term securities are defined as those maturing in more than
2/ Includes securities offered in the U.S. by foreign governments and their pol tical
subdividions and international organizations. Source: Securities and Exchange Commission.
3/ I s s u e s not guaranteed by U.S . government. Source: Long-term Securities and Exchange
Commission; short-term, Treasury Dept. & Fed. Reserve. 4/ These data differ fron those
in Exhibit H and above in that they represent new offerings less retirements, wh£ ther
from the proceeds or refunding issues or from other funds. Data include only issues wiL-h
notes,
original maturity of one year or less. 5/ Principally tax and bond anticipa i
warrants, or certificates and Public Housing Auth. notes. In some instances PHA notes
Federalf
included may have a somewhat longer maturity than 1 year. Source; Bond Buyer
Reserve, n.a. -- Not available.




"Jb

H.14

Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) JLZ
Proceeds of Large Issues Offered
(In millions of dollars)

Total

Stocks

State
and
local

Other

1/

o

1

Corooriite
Bonds
(other than
Convertible
bonds

1966 - Dec. ,
1967 - Jan.
Feb.
Mar.
. Apr.
May
J une •
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,177
681
842
1,638
1,311
870
1,666
1,340
1,705
794
1,458
826
978

990
611
709
1,435
956
771
1,072
890
1,288
473
897
461
460

-

118 *
30
40
140
213
55
409
317
350
257
285
150
437

68
40
93 .
63
142
44
185
133
67
65
276
215
81

779
947
675
669
512
496
875
483
473 .
847
505
865
633

1'

60
230
530
1,000
540
391
825
85
221
400
50
845
627

:

,-,5

7?
i'

Large Individual Issues Offered January 1 through January 26.
Issuer

Type 3J

Amount
(millions
of
dollars)

Corporate
Iowa Power and Light
1st mtg. bds.
Central Power & Light
1st mtg. bds.
Crucible Steel
Debs.
Northwestern Bell
Telephone
Debs.
Abbott Laboratories
S.F. debs.
Standard Oil of Indiana
Debs.
Connecticut Light & Power
Company
1st mtg. bds.
Connecticut Light & Power Pfd. stk.
Southern California
Edison
Com. stk.
Illinois Power Co.
1st mtg. bds.
El Paso Natural Gas
Conv. debs.
Minnesota Power & Light
1st mtg. bds.
Disney Productions
Conv. debs.




Maturity

Coupon
rate or
net interest cost

Offering
vield

15.0
28.0
30.0

1998
1998
1993

6.60
6-5/8
6-7/8

6.50
6.50
6.90

100.0
25.0
200.0

2007
1993
1998

6-1/4
6-1/4
6.00

6.25
6.29
6.07

20.0
15.0

1998

6-1/2

6.40

1998 .
1993
1998
1993

6-3/8
6
6-1/2
4-1/2

6.38
6.00
6.43
4.50

53.8
25.0
60.0
18.0
40.0

Rating!

- —

1

4

Aa; ;>

A8:

'

^

Aar,f
B %
A
Ba \

K-2
Large Individual Issues Offered Jan. 1 through Jan. 26 (Cont'd)

Issuer

Type 3/

Amount
(millions
of
dollars)

Maturity

Coupon
Offerrate or
net intering Rat Lng
est cost
yield

Corporate (ContM)
Arizona Public Service
Texas Power & Light
Carolina Tel. & Tel.
Central Soya Company
General Telephone of Illinois
Zapata Off-Shore
Trunkline Gas Company
Oklahoma Gas & Electric

Pfd. stk.
1st mtg. bds.
Conv. sub. debs.
S.F. Debs.
Debs.
Conv. debs.
1st mtg. p. 1. bds.
1st mtg. bds.

16.0
25.0
22.6
20.0
20.0
15.0
35.0
25.0

1998
1988
1993
1992
1988
198T
1998

6.56
5-3/4
6-3/8
6-3/4
4-3/4
6-3/4
6.44

1972-2001
1969-88
1969-93

5.14
4.20
4.89
4,36
4,00
4.10
4.67
4.30
4.32
4.48
5.14

4.10L.5.30
3.651-4.20
3.90-4.90
3.70L4.40
3.6O,U.05
3.50j-4.10
3.60-4.70
3.90-4.35
3.70-4.37
3.70-4.50
4.10-5.30

6.50
5.&3
6.46

6.81

4.|5
6.73
6.38

Aaa
A
A
B< a
B
A
A;

State & local Government
St. Louis Jr. Coll. Dist., Mo.
State of New York
Fairfax Co., Virginia
Houston I.S.D., Texas
Milwaukee Co., Wisconsin
State of Washington
State of Washington
Honolulu, Hawaii
[Omaha Public Power District
Alabama Highway Authority
St. Louis, Missouri
[N.Y. State Dormitory Authority
State of California
Montgomery Co., Maryland
State of Oregon
New York City .
Montpelier, Vermont
I

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

10.0
78.0
15.0
39.8
13.7
16.5
25.0
10.0
45.0
30.0
20.0
48.1
100.0
17.0
10.7
114.3

20.0

1969-92
1969-88
1969-88 , ,
lyoo-92-

1971-88
1970-1997
1969-88
1972-2001
19 9 - 9 8
i 9uy-93 .
lSi,9-88

-- -

Ac
Be a
A
As a

Aa
Aa
A •
Aa
A
Aa

5.19

4.10-5.10

1971-97
1969-1998
1969-1987

4.34
4.33
4.11
4.79
3.86

3.50-4.70
3.50-4.40
3.60-4.25

Aa
A
Aa
4 . 4 Q - 4 . 9 0 Baa
A
r :
• aa

1989
1970
1971
1988
1993

6-7/8
6
6
6.05
7.00

7
5.5
6
6
7

Other

I Quebec Hydro - Electric Comm.
\ Fed. Home Loan Bank
1
F.N.M.A.
F.N.M.A.
Province of Nova Scotia

Debs.
Bonds
Part, certs.
Part, certs.
Debs.

60,,0
200.,0
500.,0
300. 0
35. 0

00
96
00
08
10

* Rights offering.
1/ Includes corporate and other security offerings of $15 million and over; Statl and local
security offerings of $10 million and over.
|
1/ Includes foreign government and International Bank for Reconstruction and Devje
elopment
issues and non-guaranteed issues by Federal Agencies.
f
3/ In thie case of State and local Government Securities, G.O. denotes general obligation;
Rev.-Ut., revenue obligations secured only by income from public utilities; ReBv.-Q.-TJt.,
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/ 4% bonds due 1992 reoffered to yield 4.10%.




H.14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treaaury) 1/
Expected Proceeda from forthcoming Large laauea
(In milliona of dollara)

During month following
Corporate

1 State and
| local BOVt.

656
486
1,410
767
963
1,449
1,636
1,261
694
534
1,357
826
968

1966 - D e c . 30
1967 - J a n . 31
Feb. 28
Mar. 31
Apr. 30
May 31
June 30
July 31
Aug. 31
Sept.30
Oct. 31
Nov. 30
' Dec. 31

780
508
227
326
596
401
512
783
768
505
865
633

.

Other 2/

Corporate

80
. 530
250

811
- 706
1,534
905
1,262
2,065
1,922
1,576
1,335
1,090
2,694
2,129
1,892

70
100
40
100
65
50
_845
402

Subaefluent to
date ahown

£
i

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 January 26, 1968.

Iaauer

Type

Corporate
Western Airlines
j
- Texas Electric Service
Commonwealth Edison
Piedmont Aviation
*U.S. Smelting Refining & Mining
Company
N.Y. State Electric & Gas Co.
Southern California Edison Co.
Michigan Bell Telephone Co.
Gulf States Utilities Co.
Gulf States Utilities Co.
United Nuclear Corporation
Potomac Electric Power
Dallas Power & Light Company
Duke Power Company
Duquesne Light Company
Ohio Power Company




Amount
(milliona
of
dollara)

Approximate date of
offering

30
30
31
31

Conv. debs.
Debs.
1st mtg. bds.
Conv. debs.

30.0
16.0
50.0
15.0

January
January
January
January

Conv. debs.
Pfd. stk.
1st mtg. bds.
Debs.

60.0
30.0
100.0
125.0

February
February
.February
February

5
5
6
7

25.0
31.0
30.0
40.0
15.0
75.0
35.Q
60.0

February
February
February
February
February
February
February
February

13
13
13
14
14
15
20
27

1st mtg. bds.
Com. stk.
Conv. debs.
1st mtg. bds.
Debs.
lst&ref. mtg. bds.
1st mtg. bds.
1st mtg. bds.

Forthcoming Large Offerings as of January 26, 1968. (Cont'd)

Issuer

Type

Amount
(millions
of '
dollars)

Approximate date of off ering

Corporate (Cont'd)
Montana Power
4 Rlegle Textile Corporation

1st mtg. bds.
Conv. sub. debs.

State & local Government
-^Texas Water Development Board
G.O.
j State of Kentucky
G.O.
5 Jackson, Mississippi
G.O.
'! Pennsylvannia General State
Authority
|
Rev. -Rent.
1
State of Tennessee
G.O.
9 Salt River Project District,
Arizona
Rev. -Q.-Ut.
J Memphis, Tennessee
G.O.
i Los Angeles Convention Authority
California °
Rev. -Rent.
I State of South Carolina
G.O.
I San Francisco B.A.R.T. Special
j
Service District #1
G.O.
Philadelphia School District
G.O.
| Minneapolis - St. Paul Airport
|
Comm., Minnesota
Rev. -Rent.
New Orleans, Louisiana
Rev. -Rent.
.'Chesterfield Co., Chesterfield,
Virginia
G.O.
„"Chester Co., South Carolina
Rev. -Rent.
| Kentucky Turnpike Authority
Rev. -Q.-Ut.
f Calcasieu Parish, Louisiana
Rev. -Rent.
f N.Y. State Housing Finance Agency Rev. -Rent.
Other
i New Zealand
*New Brunswick Electric Power
^
Comm.

Bonds
S.F. Debs.

<

30.0
15.0

Indefinite
Indefinite

15.0
30.0
10.0

January
January
January

29
30
30

50.0
35.0

January
January

31
31

32.0
30.0

January 31
February 6

18.0
13.0

February
February

12.0
45.0

February 14
February 15

16.0
12.0

February 15
February 21

14.6
35.0
120.0
62.7
81.0

February 29
Indefinite
Indefinite
Indefinite
February 7

15.0

Indefinite

15.0

Indefinite

6
6

*—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,




¥
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. 26, 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%.

1/23

35,0

Province of Nova Scotia -- 7% S.F. debentures
maturing 1993, reoffered to yield 7.10%.

B.
Indefinite
Indefinite

15.0
15.0

Prospective Offerings
New Zealand — Bonds ***
New Brunswick Elec. Power Commission
S.F. debs.

* - Included in table for first time.
** - Issues sold to investors outside of U.S.
*** - Issue subject to interest equalization tax.




N
M-2
-PART lis

Private Placements - Reported January 1 through January 26, 1966i.

Date Reported

Amount
(millions
of
dollars)

1/1/68

1.5

1/8/68

12.0

1/15/68

7.0

Issuer and Description of Issue

Nicaraguan Hotel Co. — U.S. guarant eed
6% note, maturing June 1, 1987.
Republic of Portugal —

notes due 1568.

Home Oil Co.; Ltd. (Canada) —
15 year bonds.

Secur< id

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 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.
Full or partial takedown may take place both prior and subsequent to the date a placement
is reported.