Full text of H.16 Capital Market Developments : January 4, 1965
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Not lor .'UDilcaeiou
DEC0NTR0LLED
AFTER SIX-M0HTH6
H. 14
January 4, 1965.
(CAPITAL.MARKET DEVELOPMENTS
IN THE UNITED STATES
ncluding Review of Capital Marketa In December)
1'Ifiw M l & f
Un-
I
i1
Coro4prate
New Capital
.
5
5
i
V
sold:
- 52 week avg.
Dec.
Jan.
25
1
113
Scheduled:
Jan.
8
1
4 r/
183
9
--
41 r/
47 r/
--
65
St/
32 jr/
•
60
1/ Federal Reeerve estimates baaed on publiahed reports of Issues sold
and scheduled for offering; corporate rights offerings*are included
as of the date subscription rights expire.
Corporate and municipal bond markets. Following two weeks of
almost complete inactivity, corporate issues scheduled for offering this
week will expand to about $60 million,with a $ 4 0 million debenture
issue of Times Mirror Company accounting for most of the total. At $65
million, on the other hand, the total volume of new municipal bonds
coming to market thia week will be .little different than the volume for
the two previoua weeks.
Yielda in Securities Markets
Level lateat week
(per cent)
High-Grade
Notes and Bonds
Corporate
New
Seasoned
4.43
U.S. Govt.
Long-term
3-5 year
4.16
4.07
State and local govt.
2.99
Money Market
Federal Funds
4.00
Treasury bills
3-month
3.83
6-conth
3.93
Finance Company
4.06
1/ Change is from week ending December 18.
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. Louis
Change from
preceding week
(basis points) 1/
+ 3
+ 1
- 3
- 2
+12
H. 14
FNMA secondary market operations. Sales by the Federal
National Mortgage Association in the secondary market recovered in
November from the unusually low level reached in October. While still
not particularly high, the total of $5.7 million in November was above
that for any other month since July.
Purchases by FNMA declined to $16.0 million in November. As
in October, they exceeded the reduced year-earlier level, however.
Offerings also declined—to $26.0 million, compared with $12.0 million
in November of last year.
Capital markets in December. Corporate new capital financing
in December aggregated an estimated $1,150 million, one-fifth less than
last year's record December total. Most of this volume, as in December
cf other years, consisted of the large year-end takedown of private
placements which probably set a monthly record. Large public offerings
totaled $230 million {$30 million in convertible bonds) compared with
$547 million in December 1963.
Despite the uncertainties present in the bond market following
the discount rate increase in late November, underwriters bid aggressively
for several investment-grade corporate bond issues offered the first
week in December. At 4.47 per cent, the average yield on new corporate
bonds (adjusted to an Aaa basis) in that week was only one basis point
above the level prevailing in late October when the last previous
eligible issues were offered. Rescinding of a prime rate increase by
a large Eastern bank triggered a quick sell-out for these issues, and
three large negotiated issues offered before the Christmas holiday lull
also were quickly distributed. Thus, dealers shelves were bare of unsold
issues at the end of 1964.
Municipal bonds sold to obtain new capital in December had a
par value of $950 million, a record for the month and substantially more
than twice the volume of a year earlier. In addition, bonds sold to
refund outstanding'issues totaled roughly $100 million. Retail demand was
generally good for those issues sold during the first two weeks of the
month, but slackened as the unseasonally large volume of new issues offered
before the holidays reached the market. As a result, dealers' advertised
inventories of unsold securities rose by $90 million on balance during the
month to around $670 million at the year-end.
Despite this rise, yields on seasoned municipal bonds dropped
during December to their lowest levels in more than a year, with those
on Aaa-rated issues falling to 2.99 per cent the week before Christmas
where they remained at year-end. This was 6 basis points under the
lowest yield reached during the November rally.
Common stock prices, as measured by Standard and Poor's composite
index of 500 stocks, fluctuated within a narrow range during December.
Closing the month at 84.75, prices were slightly higher than a month
earlier .but were still almost 2 per cent below the record high reached on
November 20. Trading volume averaged 4.7 million shares a day during the
month.
'
H. 14
Estimated security offerings in January.
Flotations of
corporate securities in January are estimated at $0.8 billion. This
is three-tenths smaller than the seasonally high December total and
one-seventh less than last year, but is larger than in January of most
other years.
State and local government bond offerings in January are also
expected to amount to $0.8 billion. This is one-seventh less than both
the revised total for the previous month and January 1963. Large issues
currently on the calendar for offering this month total $306 million.
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.
•
f
^ IXHiait
A, f o . l 1.
L O N G - T E R M B O N b YIELDS, HIGH-GRADE
f\J
.LA_LL_Li 1_LA I.
1 L11LU-L I
LLL1
Exhibit A - Part II
Date
Corporate
Aaa y
U . S. Govt,
long-term 2/
State and
local
government
Aaa 3/
Spread between
U. S. Govt, and
State and
Corporate
Aaa
local Aaa
(per cent)
1959-60 - High
1961 - High
Low
1962
High
Low
1963 - High
Low
196U - High
Low
Dec.
Dec.
Dec.
Dec.
Jan.
4
11
18
25
1 £/
14.61(1/29/60)
1.16(9/15)
U.21(3/17)
U.U3(2/16)
U.23(l?/2^
U.37(l2/27)
Ll9(V29)
4.45(12/11)
4.35(2/28)
4.45
4.45
4.43
4.43"
4.43
k
(1/8/60)
L. 07 (12/29)
3.70(5/12)
1.12(2/23)
3.85(12/28)
1.16(12/27)
3.87(1/18)
4.20(4/17)
4.11(11/20)
3.65 (9/24/59)
3.37 (7/6)
3.12 (?/23)
3.26 (1/4)
2.88 (11/8) .
3.18 (11/21)
2.93 (3/28)
3.16(3/26)
2.99(12/31)
.59
.57
•3U
.U7
.30
.35
.21
.33
.19
.92
.76
• U6
1.0U
.80'
1.05
.88
1.17
1.01
4.15
4.12
4.13
4.14 '
4.16 y
3.05
3.01
2.99
2.99 2.99 .
.30
.33
.30
.29
.27
1.10
l.n
1.14
1.15
1.17
n/ Preliminary.
Ttf Weekly average of daily figures. Average term of bonds Included is 22-24 year#*
y Weekly average of dally figures. The series includes bonds due or callable in 10 years or mourn*
3/ Thursday figures. Only general obligation bonds are included; average term Is 20 years.
Note.—Highs and loirs are for individual series and may be on different dates for different
series. For spreads, high refers to widest, and low to narrowest*
L O N G - T E R M B O N D YIELDS, L O W E R - G R A D E
COlfOlAlf
V
X A ^ V \
1.6
Exhibit B - Part II
Corporate
Baa 1/
Date
State and
local govt.
Baa y
Spread between
Aaa and Baa
State and
Corporate
local govt.
(per cent)
1959-60 - High
1961 - High
Low
1962 - High
. Low
1963 - High
- Low
196L - High
Low
5.13(10/27)
5.00(4/21)
5.13(1/3)
u. 92 (12/21)
1.93(1/4)
U.83(11/15)
4.87(6/26)
4.80(12/31)
1.16(1/7/60)
U.16(3/23)
3.93(11/9)
U.OU(VU)
3.52(5/17)
3.63(6/27)
3.52(5/23)
3.59(10/8)
3.49(11/19)
M
.81
.66
.7U
.63
.71
.1*8
.48
.37
1.08
•93
.57
.82
.56
.63
.Wt
.52
.36
Dec.
Dec.
Dec.
Dec.
Jan.
4.83
4.83
4,81
4.80
4.80
3.52
3.52
3.51
3.51
3.51
.38
.38
.38
.37
.37
.47
.51
.52
.52
.52
Notes
4
11
18
25
1
E/
For footnotes see Exhibit 1#
!
f
EXHIBIT C, Fori 1
SHORT- A N D INTERMEDIATE-TERM INTEREST RATES, GOVERNMENT
Exhibit C - Part II
Date
3-month
bills 2/
Yields
6-month
, bills 2/
(per cent)
U.59(i/a/60)
2.66(12/29)
2.17(1/27)
2.97(7/13)
2.65(6/8)
3.55(11/15)
2.88(3/15)
5.07(Ve/6O)
2.90(1/29)
2.35(4/28)
3.13(7/20)
2.7U(6/8)
3.68(12/6)
2.91(3/8)
Discount
rate
y
1959-60 * High li. 00
3.00
1961 - High
3.00
Low
3.00
1962 - High
3.00
Low
3.50
1963 - High
Low
3.00
196k - High
4.00
Low
3.50
3.86(12/25) 3.97(12/4)
3.43(7/17) 3.52(7/3)
3-5 year
if sues 2/
5.00(12/24/59)
3.86(8/11)
3.15(5/12)
3.88(2/2)
3.11(12/28)
Spread between yields on 3month bills and yields on
6-flio. bills 13—5 yr. issues
.79
.16
.12
.21*
.02
1.07 (12/27)
3.liU(l/ifl)
.17
.Oil
4.23(3/27)
3.98(8/7)
.21
.04
1.81
1.51
.92
1.19
.52
.70
•ii2
.71
.20
.15
4.11
4.00
3.82
3.97
.29
Dec.
4
.25
4.06
3.94
.13
3.81
4.00
Dec. 11
.09
4.06
3.86
3.95
.20
4.00
Dec. 18
3.86
3.94'
4.07
.08
4.00
.21
Dec. 25
3.93 .
4.07
4.00
3.83
.10
.24
Jan.
1 D/
V Weekly rate shown it that In effect at end of period at the federal Reserve Bank of Hew Itafc*
2% Market yields •weekly averages computed from daily closing bid prices. Series of 3-6 year isemee
consists of selected notes and bonds, *
Note,—fli^hs 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 O^Porl
SHORT- AND INTERMEDIATE- TERM INTEREST RATES,
BANKS AND OTHER PRIVATE BORROWERS
SIOCK EXCHANGE
( A l l I OA N S
r*IME EA11
F.l
DISCOUNT IA it
rvv\i
f
Hi D E I A I F U N D S
E 11 « c I i v • *
Exhibit D - Part II
Date
Stock exchange
call loan 1/
Prime
rate l/
Finance company
paper 2/
Federal
funds 3/
Spread between
3-mo. bills and
finance co. paper
k.OO (5/13/60)
2.90 (11/17)
.b3 ( V 2 7 )
3.00 (12/28)
1.30 (3/26)
3.50 (12/27)
2.L5 (7/26)
4.00(12/31)
3.07(10/16)
1.02
.56
.11
.US
.19
.39
.12
.41
• 08
-\
(per cent)
1959-60
1961 - high
Low
1962 - High
Low
1963 - High
Low
196U - High
Low
Dec.
Dec.
Dec.
Dec.
Jan.
4
11
18
25
1 p/
5.50
a.50
it.50
u.50
k.SO
U.50
L.%
4.50
4.50
4.50
4.50
4.50
4.50
4.50
5.00
a. 50
14.50
ti.50
U.50
It.50
14.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
5.13(1/22/60)
3.00(12/30)
2.50(8/5)
3.25(7/21)
2.68(6/1)
3.68(12/27)
T.l W 3 1 )
4.06(12/31)
3.72(9/11)
3.90
.12
3.30
c/.13
4.00
.08
4.00
.20
4.00
.23
*
}J Weekly rate shown 1 a that in effect at end of perlqd. Stock Exchange call loan rate i t going r a t e
on call loans secured by customers' stock exchange collateral at New York City banks. Prime r a t e
is that charged by large banks on short-term loans to business borrowers of the h i g h e s t c r e d i t
' standing.
V
Average of daily rates published by finance companies for directly placed paper for varying maturities
in the 90-179 day range•
y
Weekly average of daily effective rate, which is the rate for the heaviest volume of purchase ant
sale transactions as reported to the federal Reserve Bank of Hew York.
Note:—flighs 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*
3.94
,3.94
3.94
4.06
4.06
S
>
gC
r-
STOCK M A R K E T
I960
IHI
/
Stock price
index 1/
MSI
4
III!
t * *4
Exhibit E - Part) II
Common
Trading
stock
volume 3/
yields 2/ (millions
(per cent) of shares)
Stock market customs credit
Customers'
Bank,
debit balloans to
ances h/
'others" 5/
Total
(In millions of dollars)
2.80
1961-62 - High
Low
1963 - High
1961 - High
Low
7U.W12/27;
86.28(11/20)
75.50(1/3)
Nov.
Dec.
Dec.
Dec.
Jan.
85.44
83.96
84.29
84.15
84.75
18
25
1 2.1
3.96
3.01
2.95
3.1*0
2.96
3.05
r/3.04
3.04
3.02
10.1
2.k
6.5
6.1
3. ()
4.9
4.7
4.8
4.3
5.1
. $ , 6 0 2 ( 1 2 / 6 l ) k , 2 # ( 1 2 / 6 1 ) 1,1*18(5/9/62)
14,1*2*4(1/61) 3,253(1/61) 1,161(3/8/61)
7,298(11/63)5,586(11/63) 1,738(13/25)
7,3V-'4)
7,096(8)
7,108
5,524(1) • 1,950(11/18)
5,185(11)
1,720(1/22)
1,948
1,930
1,946
n*a»—Not available# p/ Preliminary.
l/ 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 olosing
prices by Federal Reserve. Yields shown are for dates on which price index reached Its high
3/ Averages of daily trading volume on the New York Stock Exchange.
V End of month figures for member firms of the New York Stock Exchange which carry margin accounts $
excludes balances secured by U. S. Government obligations.
5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
U. S. Government securities. Weekly reporting banks account for about 70 per cent of loans to
others. For further detail see Bulletin.
1
E X H I B l ! F. F o r i I
FiPlttAL NATIONAL MORTOAOl ASSOCIATION!^
SECONDARY MARKET OPERATIONSol d t l l j u
I I I I I I I I I lit
- \-i~v
f
-/
1141
Mil
ill*
.UK
Exhibit F - Part II
Date
Estimated offerings to FNMA
Immediate
Standby
purchase
commitment
To ta 1
Purchases
by
FNMA
Sales
by
FNMA
(In millions of dollars)
1963 - Nov.
Dec.
1964 - Jan.
Fe b.
Mar.
Apr.
Hay
12.0
11.8
.1
7.7
.6
14.1
14.0
.1
10.9
•15.8
15.6
.1
15.5
11.1
, 8.8
15.1
15.0
.1
13.0
2.3
20.1
19.9
.3
16.8
3.8
28.5
28.5
.1
26.4
12.7
28.9
. 28.9
-- 25.8
10.9
9.2
9.3
3.8
9.5
July
8.0
8.4
.3
5.5
12.6
-Aug.
20.5
20.5
15.2
4.4
Sept.
14.9
15.1
.1 '
7.2
1.6
Oct.
34.9
34.8
.1
24.0
.01
16.0
25.9
.1
5:7
26.0
Nov.
*—Less than $50,000.
1/ Data represent unpaid principal balances of the mortgages involved, exclusive of
premiums, discounts, or other marges. Offerings are amounts of applications received
during the period from sellers proposing that FNMA execute purchasing contracts. An
intnediate purchase contract covers existing mortgages which the seller mast deliver to
FNMA with in 45 days. A standby c oraaitoent contract relates to proposed mortgages on
housing not yet under construction whioh the seller oust usually deliver within one
year. Purchases include those under both Immediate purchases and standby commitment
contracts. Data exclude FNMA activity under Special Assistance and Management and
Liquidating Programs.
IXHItIT O, Nil 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 *
KIN ISSUIS
Xl
klrJ—L-L4
Exhibit 6 - Part II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number > a T t o f issues Average
yield
included (ail.
of
(per cent)
issues of dollars)
Monthly averages:
Dec.
4.50
150.0
3
1964 - Jan.
4.38
125.0
3
Feb.
4.43
166.0
6
Mar.
4.48
130.0
1
Jan.
Apr.
4.46
278.0
10
May
4.43
230.0
8
June
4.37
60.0
3
J uly
4.39
75.0
4
Aug.
4.49
239.0
7
Sept.
4.46
70.0
3
Oct.
Nov.
4.47
140.0
Dec.
Weekly averages
4.53(5/8)
1964 - High
4.WP/2 U
•LOW
L w i H M a 7 H pablioly
Note i lye rages of offering yields on ml).
1 by Moody's Investors Serrioe (except
4
11
18
25
1
Number Am ft of 7i
ylaid
included (mil,
of
issues of dollars)
(ftr
140.0
4.47
HKHMMRttt
offered ooipormt# teaAm r»t*4 Aaa. AS asi
\
Exhibit H
H. 14
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Cap ital
Corporate
1964
f
1963
1965
930
685
754
613
594
1,144
e/800
April
May
June
2 ,178
1 ,069
1 ,378
930
904
1,013
July
August
September
780
661
1 ,035
October
November
December
1st
2nd
3rd
4th
1965
January
February
March
e/800
quarter
quarter
quarter
quarter
1st half
Three quarters
Year
State and Local 2/
1964
1963
/
946
£/
£/
772
809
732
746
976
£/ 1,216
£/
666
£/
903
869
866
930
676
637
795
£/
£/
£/
906
756
892
680
708
449
£/
951
ef
650
e/ 1,150
1,013
819
1,415
e/
e/
e/
850
550
950
1 ,051
729
416
2 ,369
4 ,625
2,,476
e/ 2 ;,751
2,3^1
2,847
2,109
3,246
£/
£/
£/
e/
2,527
2,785
2,554
2,350
2 ,454
2 ,665
1 ,837
2«,197
6,994
9,470
e/12,221
5,198
7,307
10,553
£/ 5,312
£/ 7,886
e/10,216
5,,118
6,,955
9,,151
£
(•
1
>
<i
i
i
»
K
Excluding finance companies 3/
1st
2nd
3rd
4th
quarter
quarter
quarter
quarter
Year
1,996
4, 170
£/ 2, 226
ef 2,501
2,284
2,529
1,768
2,854
e/10,893
9,434
''
e/ Estimated by Federal Reserve.
£./ Preliminary.
1/ Securities and Exchange Commission estimates of net proceeds.
2/. Investment Bankers Association of America estimates of principal amounts.
3/ Total new capital issues excluding offerings of sales and consumer finance companies.
I
f
Exhibit I
H. 14
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
1962 - I
II
III
IV
2,345
3,317
2,167
2,875
Gross proceeds for new
capital and refunding 1/
Common Memo:
Bonds
and
Foreign
Publicly
pfd. issues
Qfi£ere<j Off eyed.. stock included
1,114
508
70
724
1,386
1,289
642
251
852
1,006
308
55
1,088
1,510
277
135
1963 - I
II
III
IV
2,700
3,634
2,436
3,466
1,108
1,389
898
1,319
1,306
1,820
1,251
1,780
1964 - I
II
III
IV
2,499
4,851
2,728
978
1,321
792
1,221
1,640
1,442'
1963 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1,049
1,340
1,246
810
756
871
1,116
891
1,459
380
550
459
279
336
283
511
183
626
452
694
675
431
318
501
481
549
751
217
95
113
100
100
87
125
159
83
1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.p/
Nov. e/
Dec.
985
710
805
2,234
1,155
1,461
8 69
728
1,130
1,030
680
338
279
361
383
470
468
234
183
375
181
30
526
342
353
480
537
623
411
433
598
633
600
121
88
91
1,372
148
370
225
112
156
217
50
Quarter
or
Month
Total
^Net proceeds for
new capital 1/ 2/
Mfg.
Public
Utility
649
996
566
747
429
984
376
552
456
228
274
317
694
848
685
945
Conmunications
Other
issuers
287
424
287
367
128
434
109
47
947
591
896
968
326
794
285
530
236
221
150
118
842
1 ,241
868
1 ,629
300
1,890
29
105
418
723
547
438
856
642
273
1,663
85
59
1 ,240
1,,383
1,,229
341
222
230
107
71
92
369
373
494
56
182
196
46
21
42
10
10
27
148
216
227
297
272
237
240
214
515
5
16
8
34
36
35
21
21
44
101
n.a.
149
123
146
186
206
332
149
164
214
218
200
58
86
25
39
41
13
64
499
187
187
441
531
461
637
174
151
441
264
157
83
34
1,377
27
258
515
324
400
463
395
525
207
138
296
306
50
23
16
19
82
10
100
78
201
131
198
109
155
401
342
486
345
390
2/ Preliminary, je/ Estimated by Federal Reserve.
1/ Gross Proceeds exceed net proceeds by th» cost of flotation.
2/ For total see Exhibit H; other issuers are extractive, railroad & other transportation,
real estate & finance, & commercial & other.
Source: Securities & Exchange Commission.
Ou.i.r Security (,'Hermgs
(Ir. millions of dollars)
1964
January
February
March
April
May
June
July
August
September
October
November
December
Jan. - Nov.
£/
e/
e/
Gross long-term If
Federal agency 3/
Foreign government 2/
1963
1962
1964
1963
4
82
69
30
75
26
20
13
7
180
44
550
Year
232
133
76
57
114
11
63
83
2
142
10
35
10
86
50
25
8
31
151
88
101
769
636
771
737
--
—
148
246
ob
186
461
--
275
260
160
--
e/1,204
§
!
459
150
175
--
2/509
e/ --
1962
174
200
--
--
--
1,167
1,188
1,167
1,188
New short-term 4/
State and local government 5/
Federal agency 3/
January
February
March
April
May
June
July
August
September
October
November
December
Jan. - Nov.
£/
£/
£/
103
236
-407
442
81
-80
-9
130
159
26
n. a .
n.a.
Year
75
272
-367
589
-30
-10
62
208
-173
259
146
-339
18
466
-186
. 127
-84
-118
78
339
-406
71
234
-161
-78
-336
23
97
183
239
-333
167
1
525
]>/ 442
1,031
539
£/ 930
692
378
-106
-189
-482
292
195
319
414
327
258
123
-102
551
247
-156
226
-364
82
284
261
227
-157
379
55
-80
1,049
1,084
1.600
1.004
from those in Exhibit H in that refunding issues, as well as new capital issues, are included. Long-term securities are defined as those maturing in more than one year. %/Includes securities offered in the U.S. by foreign governments and their political subdivisions and international organizations. Source: Securities & Exchange Commission. 3/
Issues not guaranteed by the U.S. Government. Source: Long-term, Securities & Exchange
Commission; short-term* Treasury Dept. & Federal Reserve. 4/These data differ from those
in Exhibit H and above in that they represent new offerings less retirements, whether from
tiNPproceeds or refunding issues or from other funds. Data include only issues with
original maturing of one year or less. 5/Principally tax and bond anticipation notes,
warrants or certificates and Public Housing Authority notes. In some instances PHA notes
included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal
Reserve.
" |
1
1
(
H. 14
Exhibit K
Large Long-term Public Security Iesubs for Hew Capital
(Other than U. 8. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)
Total
1963 - Dec.
1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Coroor*ite
Bonds
(other than
Convertible
convertibles)
bonds
547
307
263
335
1,557
452
650
291
142
376
187
515
225
200
296
235
415
390
178
125
269
108
--
230
——
/
Stocks
32
22
28
38
1,271
37
260
113
60
35
--
51
—
17
25 .
--
--
200
30
State
and
local
governments
Other
111
577
358
282
698
274
284
544
459
558
419
226
541
--
81
79
1/
—
--
50
20
15
275
260 .
104
15
502
15
Large Individual Issues Offered During December
Issuer
Corporate
Pacific Gas & Elec. Co.
Stauffer Chemical Co.
Niagara Mohawk Pwr. Corp.
Granite City Steel Co.
Tennessee Gas Trans. Co.
Bank of California
State and Local Government
Boston, Mass.
New York State Dorm Auth.
Roustin, Texas
Sticknoy Twp. Road Dist.,
Illinois.
State of Oregon
Nashville & Davidson Co.,
Met. Govt., Tenn.
Type 2/
Amount
(millions
of
dollars)
Maturity
1st & ref . mtg. bds. 65 .0
Deb.
35 .0
Gen. mtg. bds.
40 .0
Conv. sub. deb.
30.0
Deb.
40,.0
Cap. notes
20.0
Coupon
rate or
net interest cost
1966
1989
1994
1994
1984
1989
4-1/2
4-1/2
4-5/8
4-5/8 ,
5
4.55
Offering
vleld
4.50
4.48
4.49
4.63
5.00
4.55
Bating
Aa
A
Aa
Ba
Ba
--
G.O.
Rev.-Rent.
G.cn
13.1
11.5
27.0
1965-94
1966-95
1966-85
3.20
3.59
3.13
LI
2.40-3.35T.
2.60-3.672.30-3.20
A
A
A
G.O.
G.O.
12.5
30.0
1970-79
1974-90
3.30
3.00
3.00-3.30
2.80-3.00
Baa
Aa
G.O.
13.8
1966-90
3.12
2.25-3.2 (T Z
K-2
Large Individual Issues Offered During December
Issuer
State and Local Govt. (Cont'd)
Florida State Bd. of Education
Los Angeles Unif. Sch. Dist.,
Calif.
Public Housing Auth.
Mass. Port Auth.
State of Calif.
1
Amount
Type 3/ (millions
of
dollars)
Coupon
Maturity rate or
net inter
est cost
Offering
vield
Rating
1965-94
3.30
2.10-3.40
Aa
25.0
104.0
Rev. -Q. -Ut, 33.0
100.0
G.O.
50.0
1966-90
1966-2005
1966-89
3.12
3.22
2.20-3.22
2.15-3.30
2.50-3.65
Aa
Aaa
Aa
3.20
3.21
2.20-3.34
Aa
City of Anaheim Stadium
Inc., Calif.
Frattsville Ind. Dev. Bd., Ala.
Rev.-Rent.
Rev.-Rent.
3.99
3.15-3.90^
State of Washington
Puerto Rico Ind. Dev. Co.
G.O.
Rev.-Rent.
1967-2001
1987
1968-77
1966-85
1988
Rev.-Rent.
25.0
Rev.-Rent.
21.5
27.0
18.0
1966-91
4.05
3.11
15
1
t
i
|
8/
2.30-3.13
8/
None.
-Rights offering. n.a.--Not available.
|
1/ 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
I
issues and non-guarnateed issues by Federal agencies.
|
3/ In the case of State & local govt, securities, G.O. denotes general obligations; Rev.-Ut., |
r&venue obligation secured only by income from public utilities; Rev.-Q.-Ut., revenue bondsf
secured only by revenue from qua si-utilities; Rev.-S.T., revenue bonds secured by revenue '*
from specific taxes only; Rev.-Rent., revenue bonds secured solely by least payments.
4/ 1/4 per cant bonds maturing 1994 reoffered to yield 4.00 per cent.
5/ 1/10 per cent bonds maturing 1995 reoffered to yield 4.40 per cent.
6/ 1/10 p-ar cent bonds maturing 1990 not publicly reoffered.
7/ Bonds maturing 1967-71 and 1999-2001 not publicly reoffered.
8/ Bonds not publicly reoffered.
2/ An additional $31.8 million in bonds sold to refund outstanding securities.
17
H.14
Exhibit L
Forthcoming Large Long-term Public Security Offering for law Capital
(Other than U.S. Treasury) If
Expected Proceeds from Forthcoming Large Issues
(In millions of dollsrs)
Subsequent to
During month following
date shown
State and
Corporate
Other
1963 - Dec.
1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
31
31
28
31
30
28
30
31
31
30
30
30
31
305
155
224
1,587
651
600
292
92
402
186
469
316 s
454
669
345
341
539
120
511
500
254
360
306
90
105
Corporate
lit* i h m —
State and
1,905
1,771
1,649
1,837
844
668
307
167
442
186
-•
-•
25
15
--•
--
15
---
731
667
646
953
575
598
716
588
680
626
549
563
435
--
25
215
130
105
Other y
---
25
15
—
-'
. 15
---
25
215
Forthcoming Large Offerings as of January 1
Issuer
Amount
(millions
of
dollars)
Type
Approximate date of
offering
Coroorate
Times Mirror Co.
*United California Bank
Conn. Yankee Atomic Pwr. Co.
S.F. deb.
Deb.
1st mtg. bds.
40.0
35.0
40.0
Jan.
Jan.
Jan.
" 6
14
27
State and Local Government
Los Angeles, Calif.
State of New Jersey
^Milwaukee, Wise.
^Montgomery Co., Md.
^Georgia Univ. System Bldg. Auth.
*E1 Paso, Texas
*Columbus City Sch. Dist, Ohio.
*Met. St. Lewis Sewer Dist., Mo.
*Dallas , Texas
*Texas Wtr. Div. Bd.
*Palm Beach Co., Fla.
*Los Angeles Harbor Dist, Calif.
*Dayton City Sch. Dist., Ohio
f-0- ,
G.O.
G.O.
G.O.
Rev.-Rent.
G.O.
Rev.-Ut.
Rev.-Ut.
Rev.-Ut.
Rev.-Ut.
G.O.
Rev.-Q.-Ut.
G.O.
15.0
45.0
26.8
10.0
25.0
10.0
12.7
20.0
15.0
16.0
26,8
11.0
15.3
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
- Jan.
Jan.
Jan.
6
12
12
12
12
14
19
20
25
26
26
27
28
*
.
Forthcoming Large Offerings as of January 1
Issuer
Type
Amount
(millions
of
dollars)
m
Approximate date of
offering
State and Local Government (Cont'd)
Va. State Highway Auth.
Penna. State Publ. Sch. Auth.
Pittsburgh, Pa.
Dade County, Fla.
Rev.-Q.-Ut.
Rev.-Rent.
G • 0.
G.O.
31.0
20.0
35.0
46.0
Jan.
Jan. 21
Indefinite
Indefinite
Forth Worth, Texas
Florida Dev. Comm.
G.O.
Rev.-S.T.
14.1
33.8
Indefinite
Indefinite
f
Jan.
Jan.
&
S
Other
1
Intl. Bank for-Recon. & Dev.
^Republic of the Philippines
Bonds
Bonds
200.0
15.0
18
19
4r—
^--Included in Table for first time.
V 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 for Federal Agencies.
Note:--Deletions for reasons other than sale of issue: None.
g
f
^
t
|
!L
1
H. 14
Exhibit H
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:
Sale
Da te
Amount
(millions
of
dollars)
Issuer and Description of Issue
A.
15.0
Republic of Finland--6% bonds maturing 1979--reoffered
to yield 6.26%.
12/15
25.0
•European Investment Bank--5-l/2% bonds maturing in 1984,
reoffered to yield 4.85% to investors in the U. S. and
5.54% to other investors.
12/11
20.1
Home Oil Co. Ltd.--5-1/8% convertible subordinate
debenture maturing 1984, offered to stockholders of
record November 19 to yield 5.13%.
B.
*
Sold Nov. 1 through January 1
11/25
i
*
Public Offerings
1/18
200.0
* 1/19
15.0
Prospective Offerings
International Bank for Reconstruction & Development - bonds
Republic of the Philippines - bonds
Difference in reoffering yields on bonds sold to U.S. citizens and those sold to
foreign citizens reflects an upward adjustment of 8.83 per cent in the price paid by
U. S. citizens. This premium was collected by the underwriters in accordance with the
provisions of the new Interest Equalization Tax. This tax is collected--under a scale
of rates which rises with maturity--when U. S. lenders buy new security offerings from
borrowers in certain designated "developed" countries.
.0
M-2
Part II:
Date
reported
Private Placement--Reported Nov. 1 through January 1
Amount
(millions
of
dollars)
Issuer and Description of Issue
City of Montreal--5% sinking fund debenture, maturing
2004--no information available on takedown.
11/4
60.0
11/5
7.9
Montreal Catholic School Comm.--5% sinking fund
debenture, maturing 1989--no information available
on takedown.
25.0
Toronto--Dominion Tower, Ltd.--4.85% first mortgage
sinking fund bonds; maturing 1989--no information
available on takedown.
11/11
11/18
29.1
Banco Nacional Hipotecario Urbano y de Obras Publicas,
S.A.--promissary notes, maturing 1965-69--no information available on takedown.
*12/21
25.0
Prince George Pulp & Paper Ltd.--1st mtg. sinking fund
bonds, maturing 1985--no information available on
takedown.
;
;
t
i
f
I
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
forsubsequent
FRASER to the data a placement is reported. ^--Included in table for first time.
Digitized
,
j
•
^
@FedFRASER