Full text of H.16 Capital Market Developments : January 8, 1968

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Not fo:
nrfwbliication

EECOUTEOLLED AFTER SIX MOUTHS
January 8, 1968.

3714

jq
u

-

qAPITAL MARKETS DEVELOPMENTS
IN THE UNITED STATES

VE B "

Corporate "and municipal bond markets. The volume of new,
publicly-offered corporate and municipal securities expected this week
is below the average weekly volume over the past year. Over half the
corporate volume consists of the $100 million offering by Northwestern
Bell Telephone, while the largest municipal offering will be the Houston
Independent School District's $39.8 million issue. The week's long-term
offerings may be supplemented by the Quebec Hydro-Electric Commission's
$50 million of bonds.
Long-term Public Security Offerings—^
(In millions of dollars)
corporate
New Capital 1 Refunding

State & Local Governmen
New Capital I Refundin

Sold:
52 weeks avg.
December 29
January
5

337

259

r/ 59
25

r/ 67
125

197

217

Scheduled:
January 12
1/

Federal Reserve estimates are based upon published reports of (issues
sold and scheduled for offering; corporate rights offerings are
included as of date subscription rights expire.

Yields on seasoned corporate bonds were unchanged last waek, but
the somewhat discontinuous new issue yield series indicates that such yields
have declined considerably from their peak. Last week's Aa-rated utility
carrying 5-year call protection was offered at 6.50, considerably below the
peak for such an issue-- registered exactly one month earlier — of 6.80.
The new issue was furthermore very well received. Allegedly, the announcement of selective controls to improve the U.S. balance of payments position
was interpreted favorably by bond market participants.
Yields on municipals were generally lower last week, and new
issues sold exceptionally well. By Friday night, 96 per cent of tfhe week's
offerings had been sold --the highest proportion in over a year




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

Level Latest Week

Change from
preceding week

Corporate
6.32
6.24

New
Seasoned
U.S. Government
Long-term
3-5 year

5.23
5.61

-12

-14

• State and local Govt,
Moody's Aaa
Stdo & Poor's high grade

4.15
4.46

-5

4.56

-10

4.99
5.39

-10

Money Market
Federal funds
Treasury bills
3-month
6 month

Corporate Bonds Still in Syndicate
NONE
Blue List of Municipal Dealers' Advertised Inventories
Latest Week
503(1/2/68)




End of Previous Week
506

Recent High
849(4/26/67)

Ho 1 4

Home-mort.gaf,'-. interest rates and other terms. Secondary market
yields on FHA-insured now-home mortgages continued upward to 6.77 per cent
in November, as pressures on capital markets increased further. Altogether,
the November advance was the largest •-- 12 b^sis points — in recent: months
and left the average within 4 basis points of the series high in November
of 1966 when discounts on such mortgages averaged 6„8 points0 Even so, the
further advance in yields on new corporate bonds in November was cortsid
erably greater and, as a result, the gross yLeld spread between FHA insured
mortgages and new corporate bonds narrowed to just 24 basis points, by far
the smallest in the history of the series.
Conventional first-mortgage interest rates on new homes, which
had changed little in recent months, also moved upward in November , by 10
basis points. At 6.b5 per cent, they were just under the November 1966
peak, based on data from the Federal Housing Administration, which reports
these rates rounded co the nearest five basis points. Comparable rates for
first mortgages on existing homes reached 6 J 0 per cent in NovemberL following a similar pattern of rise.
Nonrate terms on conventional first mortgages for single family
homes were generally little changed in November, according to the Federal
Home Loan Bank Board. Maturities averaged 24.2 years for loans on lew homes
and 21.5 years for loans on existing homes, with corresponding loanpto-value
ratios at 73.7 per ennt and 72.7 per cent, respectively. On balance, these
terms appeared to be somewhat below earlier peaks, though moderately higher
than a year earlier. I.'owever, reflecting increased lender concentration
on higher priced hcrr , average loan amounts were apparently at or pbove
earlier highs in Nov nr*>er.
Savings i :•
Net savings infxO's at all depositary-type
institutions totalled S i m i l l i o n in November. Commercial banks, with
net inflows of $970 :1 lion, experienced a considerable year-to-year
improvement, as the year tiefore they had suffered net withdrawals in November
Mutual savings banks, with net inflows of $321 million, also showed an .
improvement over their year-earlier experience. Savings and loan associations , however, n.ici a somewhat reduced net increase in savings capital.
Net inflows at these imtitutions totalled $575 million this Novembe
whereas in November 196b their net inflows totalled $614 million.
Stock prices. Common stock prices declined somewhat last week
in extremely heavy trading. At the close Friday, Standard and Poor's index
of 500 stocks stood at 95.94^ down 0.53 from the previous Friday. [Trading
volume averaged 12.3 million shares a day.
Capital Markets Section,
Division of Research and Statistics,
Board of Governors of tha Federal Reserve System.




SAVINGS FLOWS

Year
or
Month

Commercial Banks 4/
Mutual Savings Banks 3/
Savings & Loan Assoc. 2/
Change Per cent
Per cent Current
Change
Per cent Current
Change
Current
change
from
change (millions)
from
(millions)
change
from
(millions)
Total
previous
previous
previous
1/
year
year
year
Unadlusted
20,070
27,901
29,100
28,957
31,953
19,717

8, 743
9,351
11,072
10,,579
8,,384
3j,625

1,184
608
1,721
-493
-2,195
-4,759

1967 - Jul?
August
Sept.
Oct.
Nov. 2./

2,173
3,595
2,156
2,166
1,866

61
646
1 ,193
496
575

1,569
522
562
542
-39

1967 - July
August
Sept.
Oct.
Nov. b/

4,226
3,466
2,087
3,094
4,284

1 ,492
649
770
733
401

1,662
524
473
565
10

1961
1962
1963
1964
1965
1966

15.7
7.0
18.4
-4.5
-20.7
-56.8

421.0
89.1
—

-6.4

1,912
3,038
3,255
4,236
3,582
2,557

550
1,,126
217
981
-654
^1 ,025

40.4
58.9
7.1
30.1
-15.4
-28.6

9,415
15,512
14,773
14,142
19,987
13,535

3,703
6,097
-739
-631
• 5,845
-6,452

64.8
64.8
-4.8
-4. 5
41.3
-32.3

319
325
550
210
321

124
165
177
121
67

63.6
103.1
47.5
60.3
26.4

1,793
2,624
413
1,460
970

' 46
915
785
2,026
1,532

2.6
265.0

44.5
77.1
76.1
25.3
34.1

2,299
2,433
942
1,994
3,541

98
1,875
831
2,116
1,892

4. 5
336.0
832.7

---

Seasonally Unadins ted

1/

I

——

419.2
159.3
336.3
2.6

134
170
162
74
87

435
384
375
367
342

C ^ r f i ' a l ! / anw! 1 tt mi are r oi the last Wednesday of month except June 30 and December 31; other
D&ta are for^the^net^increase in savings capital at all oneKi.t.ing S&L's. Source:
Data are for the net increase in regular d .-pcsi Ls--e::cluacs .;ther deposits of a

4/ D ^ l r ^ f

Source: Federal


^
Reserve.

V

FHLBB.

^nks.

—

114.7

LONG-TERM BOND YIELDS, HIGH-GRADE
Weekly

CORPORATE Aaa

U.S. G O V E R N M E N T
Long t e r m

r
STATE AND LOCAL G O V E R N M E N T Aaa
Moody's

1963




1964

1966

1967

Exhibit A —

Date

1959-60 - High
1966 - High
- Low
1967 - High
- Low
Dec.

8
15
22
29
Jan. 5e./
2/ Preliminary.

Corporate
Aaa V

"J State and
U.S. Govt. |
local
long-term 2/| government
Aaa 37
(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)

6.14
6.16
6.22
6.24
6.24
r/ Revised.

5.,38
5.,38
5,-34
5,.35
5,.23

Y, s:;i;::::::
3/ Thursday Hguies.




Fart il

3.65(9/24/59)
4.04(8/25)
3.39(1/13)
4.15(12/29)
3.25(2/9)
4.15
4.15
4.15
4.15
4.15

Spread between
U.S. Govt, and
State and
Corporate
local Aaa
Aaa
.92(4/22/60)
.59(8/5/60)
1.19(2/11)
.84(12/30)
.77(9/2)
.14(2/18)
1.51
.92
.74
.44

.88

1.23
1.23
1.19

.89
1.01

1.08

.76
.78

1.20

:::::

Only general obligation bonds are included; average term is 20

EXHIBIT

B, Port

1

L O N G - T E R M B O N D YIELDS, LOWER GRADE
Weekly

CORPORATE Bat

STATE AND LOCAL GOVERNMENT Baa




1964

1966

1967

Exhibit B -- Part II

Date

State and
local govt.
Baa 3/

Corporate
Baa 1/

Spread between
Aaa and Baa
State and
Corporate
local Rovt.

(per cent)
195.9-60 - High
Year end- 1965
1966 -'High
Low
.1967 - High
Low

5.36(2/12/60)
5.04
6.18(12/30)
5.05(1/14)
6.97(12/29)
5.81(4/14)

6.89
8
6.93
15
22
6.96
6.97
29
6.96
Jan. 5 £/
Note: For footnotes see Exhibit A.
Dec.




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

4.73
4.73
4.73
4.73
4.73

.75
.77
.74
.73
.72

1.08
.39
.62
.31
.81
.37
.58
o 58
.58
•58
.58

EXHIBIT

C, 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
GOVERNMENT
Weekly

6-MONTH BILLS

3-5 YEAR ISSUES

F.R. DISCOUNT
New

York

3-MONTH BILLS
Market

Y ieldi

i i i i i i i i i i i I i i i' i ii i

I- I I I I ' II I


1963


1964

1965

1966

1967

1968

Exhibit C -- Part II

Date

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

8
15
22
29
Jan. 5 2./

Discount
rate
11

3-month
bills &/

Yields
| 6-month
, j 3-5 year
j issues U
| bills 2/
(per cent)

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

4.00
4.50
4.50
4.50
4.50
4.50
4.00

4.59(1/8/60)
4.47
4.80
5.52(9/23)
4.39(6/24)
4.99(12/29)
3.41(6/9)

5 c 07(1/8/60)
4*66
4.92
5.92(9/23)
4.53(6/24)
5.50(12/15)
3.74(6/2)

5.00(12/24/59)
4.90
4.86
5.83(9/2)
4.80(4/8)
5.80(11/10)
4.36(4/7)

.79
.19
0 12
.52
.09
.62
.01

4.50
4.50
4.50
4.50
4.50

4.92
4.96
4.96
4.99
4.99

5.49
5.50
5.44
5.49
5.39

5.70
5.74
5.68
5.75
5.61

.57
.54
.48
.50
.40

"

1.81
.43
.06
. 78
.01
1.61
.02

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.




.78
.78 ,
.72
.76
.62

EXHIBIT

D.

Port

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,
B A N K S A N D OTHER P R I V A T E BORROWERS

PRIME RATE
FINANCE COMPANY PAPER
Directly
3-6

placed

Monfki

_A


1963


.—-

f

F.R. DISCOUNT RATE
N e w • York

FEDERAL FUNDS
Effective

Rale

1965

1966

1967

1968

Exhibit D —

Date

Prime rate 1/

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.

8
15
22
29
Jan. 5£/

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)
5.38
5.38
5.50
5.50
5.50

4.00(5/13/60)
4.00
4.63
5.63
3.55(1/21)
5.25(1/6)
3.40(10/27)
4.30
4.55
4.50
4.66
4.56

1.02
.23
.28
1.08
.20
1.33
.21
.46
.41
.54
.51
.51

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 90-179 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 M A R K E T
Billion*

of

1941-43

dollari

ovarag«=IO

100

PRICES

10

8

STOCK MARKET CREDIT

6

* CHANGE IN SERIES

4

1963


Million!

—

VOLUME

YIELDS

1964

1965

1966

1967

1968

of

shores

14

Exhibit E —

Stock price
index 1/
1961-62 - High
Low
1966 - High
Low
1967 - High
Lev

Part II

Common
"Tracing
Stock market customer crediX"
stock,
volume 31
Customers1
Bank
yields 2/ (millions
Total
debit bal- loans to
(per cent)
of shares)
ances 4/
"others"5/
(In millions of dollars)

72.04(12/8/61)
52.68(6/22/62)
93.77(2/11)
73.20(10/7)
97.26(10/6)
82.18(1/6)

2.82
3.96
3.01
3. "7
T.01
3.58

10.1
2.4
10.7

Oct.
Nov.

95.66
92.66

3.06
3.18

10.2

Dec. 22
29
Jan. 5j>/

95.20
96.47
95.94

3.10

10.6

3.06
3.08

12.3
6.9

10.6
12.3
12.2

5,602(12/61) 4,259(12/61) 1,418(5/9/62)
4,424(1/61)
3,253(1/61) 1,161(3/8/61)
7,997
5,835
2,241(7/6)
7,302
5,169
2,097(12/14)
7,202
9,644
2,507(11/1)
7,345
5,200
2,055(1/25)
9,534
9,644

7,111
7,202

2 ,423
2,442
r/2,458
r/2,464

n.a. Not Available. p/ Preliminary. r/ Revised.
i
'
\J Standard and Poor's composite index of 500 common stocks, weekly closing prices, 1941-43=10.
Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are
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 accounts;
excludes balances secured by U. S. Government obligations.
5j 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. Pari I

Monthly

HOME MORTGAGES:




Seasoned

Exhibit F
FHA
mortea zes

Conventional
mort25-year 30-year gages 3 J
1957
1958
1959-60
1961-66
1966
1967

"
-

High
Low
High
Low
High
High
Low

5.635.35
6.24
5.43
6.73
—

--

5.44
6.81
6.77
6.29

Part II

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

6.00
5.55
6.30
5.80
6.70
6.65 6.40

.47
.15
.23
•25
.30
.11
-.12

Aaa Corporate
Bonds

Spread between
yields on new cor6/ porate bonds and
N e w ^ Seasoned
FHA mtg s.|Seasoned
4/
1 bonds
4.04
3.6',
5.25
4.12
5.825.20

4,.12
3.,57
4.,61
4. 19
5.49
6..07
5,.03

1.58
.88
1.69
.77
1.11
1.26
.24

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

n. a.
6.53
1967 - July
6.50
-.03
5.78
5..58
.75
.20
Aug.
n. a.
6.60
6.55
-.05
5.89
5..62
.71
.27
Sept.
n. a.
6.63
6.55
-.08
5.88
5.,65
.75
.23
Oct.
6.65
n.a.
6.55
-.10
0.12
5.,82
.53
.30
Nov.
6.77
6.65
6.53
-.12
6..07
.24
.46
1/ Neither mortgage nor bond yields take into account servicing costs which are much
higher for mortgages than bonds. Generally, bonds pay interest semi-annua],ly;
mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual
interest investment, would be slightly higher than given in the table.
y
Rased on FHA-field-office opinions about average bin prices in the private secondary
market for new-home mortgages for immediate delivery. Separate data available for
25-year and--beginning July 1961--30-year mortgages
th minimum downpayments,
weighted by probable volume of transactions. Yields c omputed by FHA, assuniing prepayment period of 12 years for 25-year mortgages and 15 years for 30-year nortgagec.
Over the period for which they can be compared, the movement of the two mortgage
yield series has been similar. Dashed lines indicate periods of adjustment to
changes in contractual interest rates.
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 1960, rate 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/ FHA mortgage yield data are for 25-year mortgages through June 1961; 30-yea,r mortgages thereafter.
5/ See note for Exhibit G.
6/ Moody's Investor Service. Monthly averages of daily data. See Exhibit A.




-M-n

EXHIBIT F. Port m

C O N V E N T I O N A L M O R T G A G E TERMS y

MATURITY
NEW

EXISTING

L O A N / P R I C E RATIO

NEW

EXISTING

1964




1966

1968
* C H A N G E IN SERIES

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

Part IV

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

Existing Homes
Loan/ Loan
Con- Fees &
tract Charges Maturity Prjice amt.
(Years) r^tio (Thous.)
Rate (Per
(Per
cent)
(Per
cent)
cent)
21

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

6.45
6.49

1.08
1.25

22.9
23 = 3

71.8
72.4

18,.0
18,.5

6.54
6.55

0.82
0.81

20.1
20.2

I '!
76.3
70.9

6.47
6.44
6.41
6.37
6.28
6.29
6.34
6.34
6.37
6.37
6.37

1.16
1.06
1.05
0.99
0.96
0.93
0.89
0.83
0.83
0.89
0.78

23 o 8
23.6
23.6
23.6
24.2
24.0
24=2
24.2
24.2
24.3
24.2

73.3
73.8
74.1
73.3
74.8
73.6
74.4
74.3
73.6
74.0
73.7

19,,3
18.,3
19.,0
18.,9
19..6
19.,4
20.,1
20.,3
20.,2
20.:4
20.,6

6.54
6.50
6.44
6.36
6.31
6.30
6.33
6.38
6.37
6.42
6.42

0.78
0.75
0.77
0.72
0.68
0.67
0.70
0.71
0.72
0=77
0.73

20.6
20.3
21.0
20.8
21.1
21.4
21.3
21.5
21.2
21.2
21.5

i
15.2
71.4
71.6 - 15.3
15.4
71.8
15.6
72.0
. 16.1
72.3
16.1
72.2
16.4
ll.l
16.6
73.1
16.2
72.8
16.2
72.7
IT. 1
7(2.7

14.4
14=7

!

* New Series
I.
If 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 dtage and
may reflect seasonal influences which cannot yet be measured because the genes 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 amount—
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 costs
related solely to transfer of property ownership.




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

1964



6.5

Ad justed lo

Aoa

Basil

NEW ISSUES

6.0

5.5

5.0

SEASONED Aaa
Moody s

1965

1966

1967

1968

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

Number
of

Number |Am't. of issues] Average
of
included (mill.j yield
issues I of dollars)
I(per cent)

Am 11. of issues Average
yield
included (mill.
(per cent)
of dollars)

Monthly averages:
1967 - Jan.
Feb.
Mar.
Apr,
May
June
July
Aug.
Sept.
Oct. .
Nov.
Dec.

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

496.0
481.0
1,073.0
916.0
570.0
993.0
772.0
1,125.0
358.0
716.0
356.5
355.0

5.38
5.20
5.31
5.39
5.66
5.79
5.78
5.89
5.88

15
22
29
Jan

5%V

231.5
? 30.0
125.0

15.0

6.51
6.55
6.42*

6.32

6.12

6.53
6.51

Weekly averages
6.59^11/17)
High
5.11(2/10)
Low
Note: Averages of offering yields on all row issues of"pithlicly'offered corporate bonds rated Aaa,
Aa, and A by Moody's Investors Service (except serial and convertible issues, offerings 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.
2/ Preliminary.




J

Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Capital
Corporate
1967 EL/ 1966 p/

State and local 2/
1967
1966 p/

1965

1965

January
February
March

1,648
1,398
2,317

1,302
1,237
2,446

795
746
1,197

1,482
1,196
1,438

1,188
858
865

804
872
904

April
May
June

1,973
1,474
2,611

1,553
1,058
2,364

1,152
1,691
1,946

1,112
1,218
1,497

1,193
901
1,141

826
924
972

2,457
2,406
1,72"

1,039
1,670
1,382

1,290
850
1,392

941
852
/1,256

701
773
1,020

986
648
966

.

2/2,2:3
e/l,400Z
e/2,125 /

829
1,085
1,635

924
1,325
1,496

£/ 960 /
r/1,353 /
e/ 975 .

755
969
940

794
1 ,021
754

Quarter
Quarter
Quarter
Quarter

5,363
6,058
6,586
1/5,821 '

4,985
4,974
4,091
3,550

2,738
4,789
3,533
3,745

4,116
3,827
/3,049
| 6,3,288 v/

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

X July .
August
September
October
November
December
1st
2nd
3rd
4th

1st half
Three quarters
Year

11,421
18,007
e/23,828y

.

9,959 .
14,050
17,601 ^

7,527
11,060
14,805

7,943
/10,992
[e/14,280'
'

6,146
8,640
11,304

2 ,580
2], 722
2;,600
2:,569
5.,302
7,,902
10,,471

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

Quarter
Quarter
Quarter
Quarter

5,207
5,913

Year

jV
1/
2/
3/

4,924
4,884
3,969
3,492
17,269

.

2,547
4,348
3,283
3,188
13,366 . j

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




Exhibit I
New Cornorate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
Net proceeds:
Gross proceeds for new capital
for new capital /
and refunding 1/
Common Memo:
Bonus
Total
Mfg. Public Communi
Foreign
Publicly Privately and
Utility cations
pfd. issues
Offered Placed
stock included
567
657
1,558
154
314
1,627
2,256
4,197
417
984
1,232
117
375
1,247
2,047
3,669

Quarter
or
Month

1966 - III
IV
1967 - I
II
III

5,464
6,208
6,834

3,263
4,017
4,604

1,811
1,465
1,552

390
726
678

1966 - Nov.
Dec.

1,115
1,662

569
980

435
555

111
127

848
362
601
410
396
659
487
418
647
r/572
550

91
156
143
238
158
330
214
250
.214
470
350

1967

1,684
• Jan.
1,418
Feb.
2,362
Mar.
2,016
Apr.
1.519
May.
2,673
June
2,590
July
2,481
Aug.
1,763
Sept;
Oct. r/ |r£,417
Nov. e/ 1.520

SOURCE:

745
900
1,618
1,368
965
1,884
1,889
1,813
902
r/1,375
~
620

Securities and Exchange Commission.




r

2/

60
65
234

2,442
3,014
2,792

997
1,268
1,219

543
548
595

27
24

228
673

320
409

168
152

369
401

624
563
1,254
1,128
588
1,298
925
1,229
6:7
913
675

220
274
503
394
403
471
446
509
265
573
410

293
105
145
107
91
350
39
356
200
132
55

511
456
415
343
393
492
1,046
313
620
673
335

35
10
15
16
32
17
213
. 13
8
40
. n. a„

Exhibit J
Other Security Offerings
(In millions of dollars)

1967
January
February
March
April
May
"June
-July
.August
September
October
November
December

'

130
114
27
13
170
5
539
117
66

Jan. - ,0c*.

1,181

Year

12
40
40
66
69
76
72
7
50
23
74
68
432
597

218
38
. 73
—-

91
33
74
5
52
75/
2
584
661

1,251
783
750
650
F10
650
407
i
250
1
599
708

i 6,858

£/

2,283

Year

489
422

1 ,378
1;,286

624

129
185
325

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

239
150
375
375
179

5,767
6,806

1,803
2,732

i
New :;ho; t-term 4/
State and local Government 5/
Federal Agency
238 .
-179
308
179
103
-552
387
39
91
-24
-454
-458
450
-594
-319
827
580
647
-559
718
204
85
515
462
109
284
-82
93
-128
-334
119
-590
219
-103
-158
408 ,
-262
-270
593
270
-146
-161
152 .
-652
1,407
464
-48
606
59
-555
-33
503
573
-283
274
*
-366
219
-570

January
February
March
April
May
June
July
August
September
October
November
December
Jan„ - Nov,

Gross Long-term 1/
Foreign Government 2/
Federal Agency 3/
1966
1965
1967
1965
1966

529
182

—-

775

3/
-137
-174
117
-11
509
237
132
206
105
-309
202
-76
877
801

£/ Preliminary, e/ Estimated by Federal Reserve, n.a.—Not available. 1/ These data
differ from those in Exhibit H in that refunding issues, as well as new capital issues,
are included. Long-term securities are defined as those maturing in more than one year.
2/ Includes securities offered in the U.S. by foreign governments and their political
subdivisions and international organizations. Source: Securities and Exchange Commission
3/ Issues not guaranteed by U.S. government. Sourcet Long-term, Securities and Exchange
Commission; short-term, Treasury Dept. & Fed. Reserve. 4/ These data differ from those
in Exhibit H and above in that they represent new offerings less retirements, whether
from the proceeds or refunding issues or from other funds. Data include only issues with
original maturity of one year or less. 5/ Principally tax and bond anticipation notes,
warrants, or certificates and Public Housing Auth. notes. In. some instances PHA notes
included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal
Reserve.
,




14
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) \f
^
Proceeds of Large Issues Offered
(In millions of dollars)

Total

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

Bonds
(other than
convertibles)
990
611
709
1 ,435
956
771
1 ,072
890
1 ,288
473
897
461
460

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

Convertible
bonds

Stocks

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

Large Individual Issues Offered January

Issuer

Type 2/

Amount
(millions
of
dollars)

State
and
local
governments

Maturity

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

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

through January 5.
Coupon
rate or
net interest cost

Offers
ing
vield i

Rating

Corporate
Iowa Power and Light

1st m'-g. bds..

15.0

19"

6.60

G•0•

78.0
15.0

19 6c -88
1969-93

4.20
4.89

6.50

State and Local Govt.
State of New York
Fairfax County, Va.

G.O.




-ABAh

7.5

%/

3.65-4.20
3.90-4.90

Aa
Baa

FOOTNOTES:
*
V

Rights offering.
Includes corporate and other security offerings of $15 million and over; State
and local security offerings of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and Develop
ment issues and non-guaranteed issues by Federal Agencies.
3f In the case of State and local Government Securities, 6.0. denotes general obliga
tions; Rev.-Ut., revenue obligations secured only by income from public utilities
Rev.-Q.-Ut., 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.




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 Iaauea
(In milliona of dollara)
During month following
date shewn
State and
Corporate
Other 2/
local govt.
1966 - Dec. 30
1967 - Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 31
June 30
July 31
Aug. 31
Sept.30
Oct. 31
Nov. 30
Dec. 31

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

80
530
250

780
508
227
326
596
401
512
783
768
505
365
633

70
100
40 .
100
65
50
845
402

Corporate
811
706
1,534
905
1,262
2,065
1,922
1 576
1,335
1,090
2,04
2,129
\,892

Subsequent to
date ahown
State and
local govt.
1,154
851
528
247
346
616
402
575
903
889
743
1,684
1,076

Other 2/
95
545
265
15
85
115
70
150
159
126
• 260

875
502

Forthcoming Large Offerings as of January 5, 1968.
Issuer

Corporate
Central Power & Light
Crucible Steel
Northwestern Bell Telephone
Abbott Laboratories
Connecticut Lt. & Pwr. Co.
Connecticut Lt. & Pwr.
•Southern California Edison
' Illinois Power Company
El Paso Natural Gas
Minnesota Power & Light
Texas Power & Light
*Trunkline Gas Co.
Oklahoma Gas & Electric
Western Airlines
Carolina Tel. & Tel.
*Texas Electric Service
United Nuclear Corp.




Amount
(milliona
cf
dollars)

Type

1st mtg. bds.
Deb.
Deb.
S.F. deb.
1st mtg. bds.
Pfd. stk.
Com. stk.
1st mtg. bds.
Conv. deb.
1st mtg. bds.
1st mtg. bds.
1st mtg. p.-lo bds.
1st mtg. bds.
Conv. deb.
Conv. sub. deb.
Deb.
Conv. deb.

-a*.

28.0
30.0

100.0
25.0

20.0
15.0
54.9
25.0

60.0
18.0
25.0
35.0
25.0
30.0
22.6
16.0
30.0

Approximate elate of
offering

January
January
January
January
January
January
January
January
January
January
January
January
January
January
January
January
January

9
9
10
10
16
16
16
16
17
17
23
24
24
30
30 (rts. exp.)
30

L-2
Forthcoming Large Offerings as of January 5, 1968.

Issuer

Type

Amount
- (millions
of
dollars)

Approximate date of
offering

Corporate (Cont'd)
Standard Oil of Indiana
*Zapata Off-Shore
^Arizona Public Service
^Michigan Bell Telephone Co.
^Southern Calif. Edison Co.
*Gulf States Utilities Co.
*Gulf States Utilities Co.
*Cantral Soya-Company
*Disney Productions
^Piedmont Aviation
Montana Power
U.S. Steel

Deb.
Conv. deb.
Pfd. stk. .
Deb.
1st mtg. bds.
Com. stk.
1st mtg. bds.
S.F. deb.
Conv. deb.
Conv. sub. deb.
1st mtg. bds.
Deb.

200 .0
15,.0
16,.0
125,.0
100,.0
31..0
25.,0
20,,0
VO..0
15..0
10. 0
225.,0

- January
January
January
February 6
February 6
February 13
February 13
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

State and Local Government
Houston I.S.D., Texas
Milwaukee Co., Wisconsin
State, of Washington
Honolulu, Hawaii
Omaha Public Power District
^Alabama Highway Authority
St. Louis, Missouri
St. Louis Jr. College Dist.,
. Missouri
Montgomery Co., Maryland
State of Oregon
Jackson, Mississippi
*Pa. Gen. State Authority
*Salt River Project Dist.,
Arizona
*New York City
*Los Angeles Convention Auth.,
California
*State of South Carolina
*Memphis, Tennessee
Kentucky Turnpike Auth.
Calcasieu Parish, Louisiana




G c 0.
G.0.
G.0.
G.0.
Rev.,-ut.
Rev. -Q.-Ut.
G.0.

13 .7
41 .5
10 .0
45 .0
30,.0
20.,0

January
January
January
January
January
—January
January

9
9
10
10
11
16
16

Rev. -Rent.
G.0.
G.O.
GcO.
Rev. -Rent.

10,,0
17.,0
10,,7
10..,0
50,,0

January
"^January
January
January
January

17
23
23
30
31

j9 .8

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

32. 0
125.0

January 31
January

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

18.0
13.o.
30.0
120.0
62.7

February 6
February 6
February 6
Indefinite
Indefinite

L-3
Forthcoming Large Offerings as of January 5, 1968.

Issuer

. Amount
(millions
of
dollars')

Type

Approximate date of
offering

Other
*FNMA
Province of Nova Scotia
Quebec Hydro-Electric
Commission
New Zealand

Part. cert.
Deb.
Deb.
Bonds

800.0
35.0

January 16
January 23

50.0
15.0

January
Indefinite

*--Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and local (Government
issues of $10 million and over. <
2/ Includes foreign government and International Bank for Reconstruction and Deviilopment
issues and non-guaranteed issues of Federal Agencies.
NOTE: New York State Dormitory Authority's $48 million issue and Cheyenne Wyomirig's $65
million issue were postponed. General Telephone Company of Illinois' $20 nlillion
issue cancelled. Columbus, Ohio's $17o7 million issue cancelled -- issue to be
offered as short-term notes January 29. •




i

-w-

•A

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

Sale Date

Amount
(millions
of
dollars)

Issuer and Description of Issue
A. Sold October 1 through January 5, 1968.

-

—

Public Offerings

10/4

15.0

New Brunswick Electric Power Commission
6-1/27= S.F. debentures maturing 1992,
reoffered to yield 6.607=.

10/17

35.0

Province of Nova Scotia — 6-1/2% of S.F. !
debentures maturing 1992, reoffered to {
yield 6.75%.
j

11/14

75.0

Province of Ontario -- 6-7/8% debentures
maturing 1997, reoffered to yield 6.96%.z

12/5

15.0

Komatsu Manufacturing, Tokyo, 7-1/4%
convertible debentures, maturing 1982,
reoffered to yield 7.25%.

B. Prospective Offerings
Indefinite

1/23/68
,1/68

15.0
35.0
50.0

New Zealand — Bonds ***
Province of Nova Scotia
Quebec Hydro-Electric Commission

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




M-2
PART II:

Date Reported

Private Placements - Reported January 1 through January 5, 1968.

Amount
(millions
of
dollars)

Issuer and Description of Issue

Metropolitan Corp. of Greater Winnepeg
(Canada) 6-1/2% debentures maturing
November 1, 1982 — no information Available on takedown.

11/27

11/27

4.2

Metropolitan Corp. of Greater Winnepeg
(Canada) 6-1/2% debentures maturing
November 1, 1987 -- no information ,vailable on takedown.

12/1

30.0

Algoma Steel Corp., Ltd. (Canadian)-- -3/8%
debentures maturing Oct. 1, 1987 -information available on takedown.

12/1

12.0

Institute Nacional de Industria (an an tonomos
entity of the Spanish State) -- loan due
1971-72.

12/18

16.2

Ottawa, Canada —

12/18

3.5

12/25

10.0

Twin Falls Power Corp, Ltd. — 1st 6-1/4%
maturing January 30, 1989, no information
available on takedown.
i

1/8/68

12.0

Republic of Portugal -- notes due 196^.

debentures maturing 1968-97.

Vancouver, British Columbia —
tures maturing 1992.

6-1/2% deben-

Note; For retrospective data on aggregate foreign corporate and government security
offerings in the United States see Exhibits I and U. 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 talcen 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.




-3C-