Full text of H.16 Capital Market Developments : July 1, 1963

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Not for Publication DECONTROLLED AFTER SIX MONTHS

July 1, 1963.

H. 14
LIBRARY
,, o 1963
•j

r

\ f,APTTAL~MARKET DEVELOPMENTS
j
IN THE UNITED STATES

(Including Review of Capital Markets in June)

Public security financing to obtain new capital was in very
substantial volume last week, but is expected to be quite light this
holiday-shortened week. During the week ending June 2&, a $50 million
corporate issue and eight large State and local government bond issues
amounting to $346 million were sold. In addition the Southern California
Gas Company offered $40 million of bonds to refund outstanding securities.
This week, ending July 5, subscription rights on a $20 million corporate
issue will expire and a $23 million State and local bond issue is on the
calendar for offering.
Bond yields.
were stable last week.

Yields on all types of seasoned, long-term bonds

Yields on new corporate bonds, adjusted to an Aaa basis, averaged
4.25 per cent last week, one basis point higher than the previous week.
Short- and intermediate-term interest rates. Rates on 3-month
Treasury bills rose a basis point last week, while those on 6-month bills
eased off one basis point; yields on 3-5 year U. S. Government securities
also declined a basis point. Reflecting the full effect of the change in
advertised rates made the previous week, the average rate on directly-placed
finance company paper with 90-179 day maturity rose four basis points to
3.25 per cent, matching the high for the year. The average effective
Federal funds rate fell five basis points to 2.95 per cent, the first
week since late April that this rate has not been at 3.00 per cent.
Other rates were unchanged.
Mortgage recordings. Seasonally adjusted nonfarm mortgage recordings of $20,000 or less rose 1 per cent in March, the latest month available
on a three-month moving average basis. The monthly rate of $2,907 million
was 9 per cent above a year earlier and only moderately below the high
reached last July.
Reflecting in part seasonal influences, the share of Governmentunderwritten mortgages declined to 21 per cent of total mortgage recordings
in April. This compared with 20 per cent in April of last year and 18 per
cent in April two years earlier.
The average size of all loans recorded changed little in April
after a moderate upturn in March. At $9,424 or 110.6 per cent of the 1959
averager, loan size in April was about the same as the recent high of last
December.




Stock priceso Common stock prices eased appreciably last week
in fairly active trading. Prices« as measured by Standard and Poor's
composite index of 500 stocks, dropped 1-1/4 per cent on balance to close
at 69.37 on June 28.
Estimated July security volume. Reflecting in part seasonal
influences, security financing to obtain new capital by both corporations
and State and local governments is expected to be in fairly light volume
in July.
New capital..flotations of corporations are estimated at $650
million this month s two-fifths less than the seasonally large total for
•June, but one-eighth more than last July. Large issues currently scheduled
for public offering amount to $170 million.
Bond sales by State and local governments are expected to total
$500 million in July, two-fifths smaller than the revised total for June
and about one-sixth less than a year earlier.
Capital markets in June. The capital markets continued to be
under some pressure in June; yields on State and local government bonds
rose rather sharply, but those on corporate bonds changed little. Corporate security financing to obtain new capital was in seasonally large
volume9 the bulk in the form of private placements3 and State and local
government bond sales were fairly substantial. Retail distribution of
public offerings of both corporate and municipal securities was slow until
late in the month when the higher yields available on new municipal bonds
resulted in improved retail demand. As a result, dealers inventories of
unsold securities were reduced somewhat during the month, but were still
substantial at the monthend.
New capital security financing by corporations totaled an
estimated $1.1 billion in June., almost one-half more than in. May, but
one-tenth less than the average for June of the two previous years. Most
of this financing consisted of seasonally large takedowns of private
placements; large issues sold publicly, all of which were nonconvertible
bondss totaled $348 million. In addition, about $50 million in bonds
were offered publicly to refund previously outstanding securities.
Most new corporate issues acquired by underwriters through
competitive bidding attracted only moderate inventor interest and were
still in the process of distribution at monthend. Several large issues
carried over from May with substantial unsold balances were fully distributed in June but the $250 million AT&T debenture issue was still about
one-fourth unsold at monthend. As a result, syndicate balances were reduced
somewhat from the end of May level, but remained fairly substantial. Despite
continued slow distribution of new offerings; yields on corporate bonds
changed little during June, reflecting conflicting views as to prospective
interest rate developments. Yields on seasoned Aaa-rated issues, at 4.23
per cent at the end of June (daily basis), were unchanged from their
month earlier level. Yields on new corporate bonds, adjusted to an Aaa basis,
averaged about 4.25 per cent throughout the month, 2 basis points less than
in the latter part of May.




Bond sales by State and local governments totaled $850 million
in June, the same as in May and about one-tenth more than a year earlier.
Yields on Aaa-rated municipal bonds rose 10 basis points further during
June to 3.10 per cent, the highest level since mid-August 1962, as dealers
made price reductions in an attempt to distribute at retail their large
inventory of unsold securities. Investor interest in new issues increased
during the month as yields rose and was quite strong the last week when over
one-half of the month's new financing was sold. Dealers were able to reduce
their advertised inventory of unsold securities only moderately-, however;
totaling around $650 million at the end of June, inventory was only $40
million below the month earlier level, but $170 million smaller chan the
mid-May peak.
Common stock prices declined moderately on balance during June
in active trading. Prices, as measured by Standard and Poor's composite
index of 500 stocks, fluctuated within a narrow range during most of the
month 3 before declining in the final week to close on June 28 at 69.37,
two per cent less than at the end of May. Trading volume, averaged 4.5
million shares a day, 0.3 million shares below the May average.
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.




LONG-TERM

U ~ U I I I IAJ.-L.

BOND

YIELDS, H I G H - G R A D E

jJ-LLl-LU 1 -LI

LLLi±.J_LLl

I I i-iJJJ-L 1-1.1.

1959

Exhibit A

- Part

II
State

Date

Corporate
Aaa

If

U.

S.

Govt,

long-term

2/

(per
- Low

3.55

(5/2)

and

local
government
Aaa

1958

U J -LI I I I I

I960

3/

Spread between
U.

S.

Govt,

Corporate
Aaa

and

State

cent)

3 . 0 7 (4/25)

2 . 6 4 (5/1)

.22

.34

1959-60

- High

4.61

(1/29/60)

4 . 4 2 (3/8/60)

3.65" (9/24/59)

.59

.92

1960-61

Low

4.21

(3/17/61)

3 . 7 0 (5/13/61)

2 . 9 9 (9/3/60)

.19

.46

1961

- High

4.46

(9/35)

4 . 0 7 (l?/29)

3 . 3 7 (7/6)

1962

- Low

4 . 2 3 (12/28)

3 . 8 5 (12/28)

2 . 8 8 (13/8)

.57
.30

1963

- High

4.23

(6/14)

4.00

(6/28)

3.10

(6/27)

.35

1.02

Low

4.19

(3/29)

3.87

(1/18)

2.93

(3/28)

.22

.90

.76
.80

3.00

.24

.99

June

7

4.23

4.00

3.06

.23

.94

June

14

4.23

3.99

.3.08

.24

.91

June

21

4.22

4.00

3.10

.22

.90

June

2 8 £_/

4.22/

4.00

3.10

.22

.90

May

31

4.23

3.99

and

local Aaa

jo/ Preliminary.
y
Weekly average of daily figures. Average t e r a of to ado inoluled 1# 22-24 y e a r s ,
TtJ Weekly average of daily figures. The series includes b o n d s due or callable in 10 years or m o r e .
2 / Thursday figures. Only g e n e r a l obligation bonds are included} average t e r m is 20 y e a r s .
R o t e . — M i g b s and lows a r e f o r individual series and m a y be on different dates for different
series. For 'spreads, high refers to w i d e s t , a n d low to narrowest.




,

EXHIBIT B. P a r t I
LONG-TERM

BOND

YIELDS, L O W E R - G R A D E

Weekly

P • f cent

- / - W v

Exhibit B - Part II

Date

Corporate
Baa 1/

State and
local govt.
Baa 3/

Spread between
Aaa and Baa
State and
Corporate
local govt.

(per cent)

3.63 (6/27)
3.52 (5/23)

.77
.84
.66
.81
.63
.71
.60

.93
1.08
.57
.93
.56
. 63
.53

3.55
3.60
3.62
3.63
3.63

.61
.61
.60
.62
.62

.55
.54
.54
.53
.53

J958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - Low
1963 - High
Low

4 , 5 1 (7/11)

3.64

(5/1)

5 . 3 6 (2/12/60)

4.46

(3/7/60)

4 . 9 8 (9/9/60)

3.93

(13/9/61)

4 . 9 2 (12/21)

3.52

4.93 (1/4)
4.83 (6/14)

May 31
June 7
June 14
June 21
June 28 ])/

4.84
4.84
4.83
4.84
4.84-

Note:

5.13

(10/27)

F o r footnotes see Exhibit A ,




4 . 1 6 (3/23)
(5/17)

Xo

- AND

INTERMEDIATE- TERM INTEREST RATES, G O V E R N M E N T

.JJJ-1-LLLL111

LLL1.J.LL U L L l l l l - l L L L L U J
I96 0

1961

Exhibit
Discount
Date

rate
1/

- Low

1.75

i Part

II
Spread between yields

3-month

6-month

bills

bills

2/

(per
1958

C

Yields

.58

2/

3-5

year

issues

2/

month bills
6-mo.

and

(5/29)

3 . 0 2 (12/26)

.26

.04

4.00

4.59

(1/8/60)

5 . 0 7 (3/8/60) 5 . 0 0 (12/24/59)

.79

1.81

1960-61 Low

3.00

2.11

(10/28/60)

2 . 3 5 (4/28/61)3.15 (5/12/61)

.12

.38
1.51

2 . 1 4 (6/6)

3.00

2.97

(7/13/62)

3 . 1 3 (7/20/62)3.88 (2/2/62)

.44

1962

- Low

3.00

2.65

(6/8)

1963

- High

3.00

3.00

(6/7)

2 . 7 4 (6/8)
3 . 4 1 (12/28)
3.08 (6/21) 3.68 (6/21)

.02
.10

Low

3.00

2.88

(3/15)

2.93

.04

.52

3.00

2.98

3.06

3.64

.08

.66

3.68

May

31

(3/8)

3.44

(1/18)

.52
.70

3.00

3.00

3.08

.08

.68

June

14

3.00

2.98

3.07

3.66

.09

.68

June

21

3.00

2.98

3.08

3.68

.10

.70

June

28 £ /

3.00

2.99

3.07

3.67

.08

.68

June

7

-

v

l/

3on

issues

cent)

1959-60 High
1961-62 High

on

yields

b i l l s 13-5 v r .

•

Weekly rate shown ia that in effect at end of period at the Federal Reserve B a n k of N e w Y o r k .
Market yield; w e a k l y averages computed from daily closing bid p r i c e s . Series of 3 - 5 y e a r issues
consists of selected notes and b o n d s ,
*
n o t e . — H i g h s and lows are f o r individual series and m a y be on different dates f o r different series*
F o r spreads, high refers t o w i d e s t , and l o w to narrowest.




AND
AND

INTERMEDIATE- TERM INTEREST
OTHER

Exhibit D

Date

Stock Exchange
call

RATES,

PRIVATE B O R R O W E R S

l o a n J./

Prise
rate

- Part

Finance
1/

paper

II

company

Federal

2/

funda

3/

Spread
3-mo.

between
bills

finance

co.

and
paper'

cent)
1958

- Low

1959-60

- High

1960-61 Low
1961-62

- High

3.50

3.-S0

1 . 1 3 (8/8)

5.50

5,00

5 . 1 3 (3/22/60)

4.50

4.50

2 . 5 0 (8/5/61)

(5/29)

-.35

4.00

(5/33/60)

1.02

.43

.13

( 3/27/61)

.11

.56

4.50

4.50

3 . 2 5 (7/20/62)

3 0 0

(12/28/62)

1962

- Low

4.50

4.59

1963

- High

4.50

4.5o

2 . 8 8 (6/1)
3.25 (6/28)

1.30
3.00

(3/26)
(6/21)

Low

4.50

4.50

3.13

2.63

(4/5)

"

4,59

4.59

3.13

May

31

(5/3 1 )

3.00

.19
,36
,15
.15

June

7

4.59

4.59

3.19

3.00

June

14

.19

4.50

4,50

3.19

3.00

June

21

.21

4.50

4.50

3.21

3.00

28 jj/

.23

June

4.50

4.50

3.25

2.95

.26

y

Meekly rate shown is that in effect at end of period. Stock Exchange c a l l loan rate is going rate
on call loans secured by customers' stock exchange collateral at N e w York City banks .. Prime rate
is that charged by large banks on short-term loans to business borrowers of the highest credit
standing.
2 / Average of d a i l y rates published b y finance companies for directly placed pqier f o r varying maturities
T
m the 90-179 day range,
3 / Weekly average of d a i l y effective r a t e , w h i c h is the rate for the heaviest -relume of purchase and
sale transactions as reported to the Federal Reserve Bank of N e w Y o r k .
N o t e . Highs a n d lews a r e for individual series and m a y be on different dates f o r different series.
For spreads, high refers to widest, and losr to narrowest.




c

!

STOCK

MARKET

-

—

—

STOCK MARKET CREDIT

-1-1 I 1 I I I LJ. L I I I I I } I I I l_l_1-t—L

Kxhibit E

Stock price

Date

i n d e x J./

- Part

II

Common .

Trading

stock

volume

yields
(per

2/

Stock market

(millions

cent) of

customer

Customers1

3/
Total

shares)

debit balances

(In millions

to

72.04(12/8/61)

2.82

10.1

5 , 6 0 2 ( 1 2 / 6 1 ) 4 , 2 5 9 (l?/61) 1 , 3 7 7 ( 8 / 3 0 / 6 1 )

Low

5 2 . 6 8 ( 6/22/62)

3.96

2.4

4 , 8 7 6 ( 7 / 6 2 ) 3 , 5 6 2 (7/62) 1 , 2 6 9 ( 9 / 2 6 / 6 2 )

- High

70,08

(5/31)

3.13

5.5

6,229(5/63)4,737(5/63)1,498

(6/19)

Low

64.10

(3/1)

3.36

3.3

5,595(1/63)4,208(1/63)1,378

(2/23)

4.8

6,229

May

70.14

June
June

loans

"others" 5/

of dollars)

- High

1961-62
1963

4/

credit
Bank

14

3.13

4,737

1,492

70.11

3.16

4.5

70.25

3.16

4.6

r/l*494
1,498

June

21

70.25

3.16

4.1

June

2 8 j>/

69.37

3.19

4.0

n.a.—Jiot available, % / Preliminary•
1/ Standard, and Poor's composite index of 5 0 0 oonmon stocks, weekly olaeing prices, 1941-43*10.
Monthly d a t a are averages of daily figures rather than of Friday's only. Highs and lows are f o r
Friday's data only.
Standard and Poor s composite stock yield based on Wednesday d a t a converted t o w e e k l y closing
u
prices by Federal Reserve, Yields shorn are for dates on which price index reached its higi

%

Averages of daily trading volume on t h e N e w Y o r k Stock Exchange#
End of month figures for m e m b e r films of -the New,York S t o c k Exchange vfaioh oarry margin accounts#
excludes balances secured b y U . 3, Government obligations,
Wednesday figures for w e e k l y reporting m e m b e r banks. Excludes loans f o r purchasing or carrying
U, S. Government securities. Prior to July 1, 1959, such loans are excluded only at banks in
N e w York and Chicago, Weekly reporting banks account fbr afcotit 7 0 p e r cent of loans to others.
For further d e t a i l s e e Bulletin,




MORTGAGE
Monthly

RECORDINGS

AND

X/

LOANS

Billions o I d o_H o n

I'M

!'»

1961
Exhibit

194?

F

- Part

%tal
Date

Vtiadiusted

g g g serially

Average
Unadjusted

gijygfced 2/

FHA

(Millions
2,745

2,704

May

2,836

Jun§

2,891

2,983
3,075

1962-Apr.

1963

II

372
.

VA

Other

size

of dollars)
182

2,151

107.1

403

184

2,397

107.8

404

207

2,464

109.7

2,973

3,134

433

219

2,482

109.4

Aug,

2,933

247

2,621

109.7

2,929

3.333
2,861

465

Sept.
Oct.

431

231

2,199

109.3

July

Nov,
peq,

2,925
2,939
2,916

.

3,208

546

2,883

492

254

2,137

109.7

2,682

429

236

2,017

110.2

285

2,376

109.6

1963-Jan,
Feb,

2,869

2,424

400

202

1,822

108,7

Mflr,

2,907

2,751

416

219

2,116

110.4

Apr.

il. a ;

3,065

392

245

2,428

110.6

2,876

'

2,658

504

of

recordings
(1959 = 100) 3/

254

1,900

109,9

i
n . a . — N o t avid labia,
y
T o t a l recordings d a t a are estimates based on reports f r o m about 4 5 0 areas a * 4 includg
mortgages of $20,000 or less secured by nonfarm real estate, primarily refliSSfiiial
properties. FBA-insured loans represent gross amount of insurance written* S«id V A gu&ranteed leans the gross amount o f loans closed, on 1 - 4 family house6#
d t h e r recordings
data *re derived a s a residual, although t o t a l recordings and V A and tffiA loans are not ~
strictly comparable in concept or timing,
y
Three-month moving average, seasonally adjusted by F e d e r a l Reserve.
This i n d e x r e ] * W s t h e average size of mortgage recordings for each month (total d o l l a r
recordings d i v i d e * by number of mortgage recordings) to the. average
dtwifig 1959,
S o u r c e . — F e d e r a l HofflS Lean Bank Board, Federal Housing Administration and VetSftttiS A£rin|etrat-iAe»




H. 14

Exhibit H
Long-term Corporate and State and LocrJ. Government
Security Offerings and Placements
(In millions of dollars)

1963

Corporate 1/
1 1962
1

613
595
1,144

592
859
807

580
667
562

April
May

E/915
e/750
e/1,100

1,113
760
1,132

2,118
1,259
1,318

July
August
September

e/

582
749
579

1,028
762
647

835
703
1,103

1,090
948
1,000

2,351
e/2,765

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

1,809
4,695
2,437
3,038

6/5*1.16

5,264
7,173
9,814

6,504
8,941
11,979

January
February
March

650

October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
Thcee quarters
Year

1961

1963

State and local 2/
1 1962
1

2/732
2/722
2/968

876
1,133
628

711
689
764

2 -' 812
e/850
e/850

873
912
786

722
640
1,034

e/500

612
544
427

486
604
734

650
- 578
550

679
789
610

2/2,422
e/2,512

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

2,165
2,396
1,824
2,078

e/4,904

5,208
6,790
8,568

4,561
6,385
8,463

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

quarter
quarter
quarter
quarter.

,
e/2, 050
I2/2,465

Year

I

2,199
2,919
1,775
2,410

1,554
4,552
2,337
2,807

9,303

11,253

£/ 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 nd consumer finance
companies.




1961

EXH'BK G
YIELDS O N

NEW

AND

SEASONED

Exhibit G
Yields

on New Corporate Bond

Number Am't of
of

included

issues
(mil.

of dollars)
Weekly
1963

Pot |

CORPORJ.TE

BONDS

- Part

II

Issues Adjusted

to an Aaa basis
Number Am't of

Average

issues

included

of

yield

(mil.

of dollars)

(per cent)

Average
yield
( p e r cent).

averages:
- Feb.

1

1

25.0

4.21

8

2

64.0

4.27*

May

15
22
Mar.

Apr.

4

1

1

100.0
12.0

4.19

2

55.0

4.25*

2

24.4

4.16

22

3

87.0

29

2

222.0

5

2

45.0

12
19
26

266.0
30.0

4.27

3

76.0

4.27

.

4.22
4.31*

31
June

1

7
•

14

4.16

21

4.36*

28

"

3

.

50.0

4.23*

34.0

4.25

2

115.0

4.24

2

46.5

4.25

4.23

6.0

4.18

3

95.0

4.28

3

128.0

4.30

. 1
'

25.0

2
1

3

24

4.14

8
15

1

1.0
17

'

M o t e : Are rages of offering yields on aHjL n o w Issues of publicly offered oozporate bonds rated A a a . Aa and
A by Moody's Investors Servioe (except serial and convertible is sues, offerings of n a t u r a l gas pipeline
and foreign companies, and bonds guaranteed by the Federal Government) weighted b y ed.se of offering.
Before averaging, n e w offerings a r e adjusted to a composite A a a basis by deducting from t h e aotual
reoffering yield tto excess of the w e e k l y average yield f o r seasoned tends of the appropriate Industryquality group over t h e composite average f o r seasoned Aaa-rated bonds (Moody's)# Averages considered
unrepresentative because of special obaraoterlsties of 1he offerings included are denoted by a n asterisk^




&
New Corporate Security Issues, Type of Issu: and Issue:
(In millions of dollars)
Gross proceeds for new
capital and refunding 1/
common"
and
|
Publicly Privately
pfdc I
offered offered

Memo:
foreign
issues
included

Net proceeds for
new capital 1/ 2/
, Mfg.

jPublic i Communi-; Other
Iutility!cations j issuers

38
17

562
625

652
696

317
381

896
997

76
155
69
62

515
1,466
935
792

381
1,081
595
836

81
1,095
104
147

832
1,052
803
1,263

507
639
307
300 *

68
257
56
179

655
996
601
769

430
983
3 75
568

456
231
275
321

717
794
. „59
986

1 ,306

287

128

947

326

236

842

424
225
123
336
414
217

392
411
336
509
348
567

259
177
218
310
225
310

52
7
10
25
12
25

428
255
252
271
215
306

269
215
111
306
362
i 68

16
13
75
25
80
42

647
884
847
1,217
801
1,232
630
922
632
976
784
1,197

273
497
386
654
247
488
200
477
176
539
286
264

232
232
253
227
420
575
366
363
295
314
446
808

143
155
209
336
134
169
67
82
161
123
52
125

3
12
54
10
147
100
13

89
148
193
37 7
196
410
118
110
148
141
175
252

73
362
21
88
64
79
88
120
67
260
4
57

225
218
275
264
229
301
159
301
199
282
253
451

695
642
1,363
1,067
1 >080

350
259
499
380
540

243
289
774
468
450

102
94
91
218
90

25
43
60
59
n. a.

114
115
97
363
100

125
68
43
72
30

238
191
412
325
370

1960 - III
IV

2,520
2,832

1,336
1, -',62

1961 - I
II
III
IV

1,992
5,352
2.566
3,236

662
2,303
772
967

880
1 ,275
1 ,139
1 ,424

1962 - I
II
III
IV

2,378
3,250
2,184
2,957

1,155
1,389
853
1,089

716
1 ,222
1 ,024
1 ,568

1963 - I
II

2,700

1,108

• 1961 - July
Aug,
Sept.
Oct.
Nov-

1,075
813
678
1,155
987
1,094

1962 - Jan,
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1963 - Jan.
Feb.
Mar.
Apr.£/
May e/
June

754
955

429
416
449
1,774.
,• 654
845

43
46
34
99

.

.

205
131
318
384
270
342
217
218
166
153
. 271
345
135
220
592
155
250

'

.

£/' Preliminary.
e/ Estimated by Federal Reserve.
1/ Gross proceeds exceed
net proceeds by the cost of flotation.
2/ For total see Exhibit H; other issuers
are extractive, railroad and other transportation, real estate and finance and
commercial
and other. Source.--Securities and Exchange Commission.




315
279
209
487
291
485

H. 14

Exhibit J
Other Security Offerings
(In million;: of dollars)
Foreign government 2/
1963
1962
January
February
March
April
May

232
133
76
£/ 57
e/120

July
August
September
October
November
December
Year
Jan.-May

e/6ia

142
10
35
10
86
50
25
8
31
151

Gross long-term 1/
Federal agency 3/
1961
1963
1962
6
29
20
2
66
29
5
2

246
156
252
100
149
278

p/186

150
175

43
34

737

236

283

123

250
193
225

e/334

1,188

1,448

863

501

Net short-term 4/
State and local government 5/
Federal agency 3/
January
February
March
April
May

75
78
-367
589
E/-151.

July
August
September
October
November
December
Year
Jan.-May

2/224

18
466
-186
127
-84
-118
78
339
-406
71
234
-161

54
-116

378

520

341

160
195
-8

-103
-42
-155
109
518
-86

-106
-189
-482
292
jj/380

-6

203

&/-105

247
-156
226
-364
82
284
261
227
-157
379
55
-80

-144
-162
-174
-79
-87
207
22
193
108
98
56
-114

1,004

-76

35

-646

Preliminary.
_e/ Estimated by Federal Reserve.
n.a.--Not available.
These data differ from those in Exhibit H in that refunding issues, as well as
new cap.ital- issues are included. Long-term securities are defined as those
maturing in more than one year.
2/ Includes securities offered in the United States by foreign governments and their
political subdivisions and international organizations. Source: Securities and
Exchange Commission.
1/ Issues not guaranteed by the U. S. Government. Source: long-term, Securities
and Exchange Commission; short-term, Treasury Department and Federal Reserve.
4/ These data differ from those in Exhibit H and above in that they represent new
otrenngs less retirements, whether from the proceeds of 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 Authority notes. In some instances PHA notep included may have a somehttp://fraser.stlouisfed.org/
what 1oneer maturity than one year. Source: Bond Buyer and Federal Reserve.

Federal Reserve Bank of St. Louis

H. 14
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)

Month

11962 - June
July
August
September
October
November
December
1963 - January
February
March
April
May
June

Total

Corporate
Bonds
(Other than Convertible
bonds
convertibles)

State .
and
local
government

60
91
36
20
19
26
22
146

——

35
——
--

Other 2/

30
20

266
321
272
153
320
217
193
344
367
570
431
489
472

85
30

387
135
226
100
398
178_
178
215
125
372
263
149348

472
165
286
. 191
434
178
198
234
186
394
409
149
348

Stocks

—

194
25
75
48
63
134
43
460

Large Individual Issues Offered during Month of June

Type 3/

Is sugit

Coupon
Amount
(millions Maturity rate or
net
interof
est cost
dollars)

Offering Rating
yield

CORPORATE
Southern Railway Co.
Indiana Bell TeL Co.
Coastal States Gas Prod.Co.
; Tennessee Gas Trans. Co.
Public Service Elec.&Gas Co.
State Loan & Finance Co.
Firestone Tire & Rubber Co.
Texas Eastern Trans. Co.

lst&gen.mtg.bds.
Deb.
1st mtg. bds.
Deb,
lst&ref.mtg.bds.
S.F. deb.
Deb.
Deb.
1st mtg.bds.

37.,8^/
20. 0
50.,0
45.,0
40. 0
15.,0
15. 0
75. 0
50. 0

1988
2003
1983
1983
1993
1983
1983
1988
1983

4-5/8
4-3/8
5
5
4-3/8
4-5/8
5-1/4
4-1/4
4-3/4

4.63
4.27
5.00
5.00
4.32
4.70
5.30
4.30
4.81

A
Aaa
Baa
Ba
Aa

Aa
Baa

STATE AND LOCAL GOVT.
Louisiana State Bond & Bldg.
Comm.
Sacramento Mun. Util. Dist.,
Cal.
Oklahoma City, Oklahoma

Rev.-S. T.

15. 0

1964-83

3.33

1. 75-3. 55

Rev. -Ut.
G. 0.

10. 0
15. 1

1966-83
1965-88

2.98
3.11

2. 80-3. 15—^Aa
2. 00-3. 30 A




A

Large Individual Issues Offered during Month of June (Cont'd)

Issuer

Type 3/

Amount
Coupon
(millions Maturity
of
net interdollars)
est cost

Offering Rating
yield

STATE AND LOCAL GOVT.
(Cont *d)
St. Petersburg, Florida
Rev.. -Ut.
Virginia Public Sch. Auth.
Rev.
Nassau Co., N.Y.
G.,0.
Univ. of Illinois
Rev.,-Rent
Jacksonville, Fla.
Rev.,-Ut.
State of Minnesota
G. 0.
Cleveland, Ohio
G. 0.
Atlanta, Georgia
G. 0.
State of Maine
G. 0.
Nevada Irr. Dist. , Cal.
Rev. -Ut.
New York State Hous. Fin. Agen. Rev. -Rent
Chic. Pub.Bldg.Comm., 111.
Rev. -Rent
Fairfax Co,, Va„
G. 0.

17,,0
15..0
21..4
10.,8
22,,0
40.,6
13.,2
14. 8
14. 0
57. 2
108. 8
87. 0
. 10.0

1964-83
1965-84
1964-92
1969-93
1964-76
1965-83
1964-83
1967-89
1964-83
1967-2013
1966-2005
1966-84
1966-94

3..26
2..93
3..13
3..50
2.,92
2.,92
2. 91
3. 25
2. 84
3. 57
3. 60
3. 33
3. 56

460, 0

Oct.1964

3, 50

1.,80-3. 40&/
1.,90-3. 10
1.,70-3. 40
2,,50-3..552/
1. 70-3. 00
1. 85-3. 10
1. 70-3. 20
2. 20-3. 30
1. 65-3. 00
2. 40-3. 58
2, 20-3. 60
2, 20-3. 40
2. 20-3. 60

A
Aa
A
A
Aa
Aa
Aa
Aa
A
A
Baa

OTHER
Federal Home Loan Banks

Bonds

3.60

--

*--Rights offering.
n.a.--Not available.
\J Includes corporate and other security offerings of $15 million and over; State and
local government security offerings of $10 million and over,
2/ Includes foreign government and International Bank for Reconstruction and Development
issues and non-guaranteed issues by Federal agencies,
<%} In the case of State and local government securities, G= 0. denotes general
obligations; Rev, -Ut., revenue obligations secured only by income from public
utilities; Rev.-Q.Ut., revenue bonds secured only by revenue from quasi-utilities;
Rev. - S . T . r e v e n u e bonds secured by revenue from specific taxes only; Rev. -Rent. ,
revenue bonds secured solely by lease payments.
4/ An additional $12.2 million in bonds sold to refund outstanding securities.
5/ Bonds maturing 1966-73 not publicly reoffered.
6/ 0.1 per cent bonds maturing 1983 reoffered to yield 4,40 per cent.
-Z./ 1.2 per cent bonds maturing 1993 reoffered to yield 4.40 per cent.




H. 14
Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) If
4
Expected Proceeds from Forthcoming Large Issues
Date of
computation

1962 - June 29
July 31
Aug. 31
Sept. 28
Oct. 31
Nov. 30
Dec. ."28
1963 - Jan. 31
Feb. 28
Mar. 29
Apr. 30
May
31
June . 28

During month following
date shown
Corporate State and
Other 2/
local govt.
120
302
170
363
203
170
269
167
142
376
149
223
170

202
273
61
187
96
194
177
376
458
381
447

75
25

45
40
460
.75

®

Corporate

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

458
477
312
546
328
360
314
412
572
421
234
288
215

25

377
427
215
387
243
328
311
843
755
763
599
582

175

-75
25
33
45
40
460
75

Forthcoming Large Offerings, as of June 28

Type

Amount
(millions
of dollars)

Approximate date
of offering

CORPORATE
Pacific Northwest Bell Tel. Co.
Illinois Bell Tel. Co.
Hitachi, Ltd.
Northern 111. Gas. Co.
^Pacific Power & Light Co.
Commerce Oil Refining Corp.
STATE AND LOCAL GOVERNMENT
New York State Dormitory Auth.
Memphis, Tenn.
ienna. Gen. State Auth.
Racine, Sturtevant etc. Unif.
Scho Dist. No. 1, Wise.
*State of Connecticut
Pittsburgh, Pa.
Jefferson County, Colorado
Dade County, Florida
Jacksonville Expressway Auth.,
Fla.
Southern 111. Univ.




Com. stk.
Deb.
Com. stk.
1st mtg. bdsc
S.Fo deb.
Deb., bds.&com.

30.0
45.0

(rights
July 3
expire)1
July 9
July 10
July 24
July 31
Indefinite

Rev.-Rent.
G.O.
Rev.-Rent.

22.5
10.0
50.0

July 2
July 9
July 9

10.6
49.0
35.0
12.9
46.0

July 10
July 17
Indefinite
Indefinite
Indefinite

40.0
10.5

Indefinite
Indefinite

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

20.0
50.0
20.0

20.0

L-2

H. 14*

Forthcoming Large Offerings, as of June 28 (Cont'd)

Issuer

Amount
(millions
of dollars)

Type

• Approximate date
of offering

OTHER
Milan, Italy
United Mexican States
•Nippon Tel. & Tel. Public Corp.

Bonds
Bonds

^

20.0
35.0
20.0

July 10
July 17
July

*--Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and local
government issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal agencies.
Note.--Deletions for reasons other than sale of issue: None.




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.
4/2
4/9

5.2
15.0

4/10
4/24

30.0
10.0

4/24
4/25

1.8
25.0

5/1

27.5

5/22

15.0

6/12

10.0

Public Offerings

Sold April I through June 23

Sony Corp.--common stock
Copenhagen Tel. Co.—5-3/8% bonds, due 1978, reoffered at
5.577=
Govt, of Australia--5% bonds, due 1983, reoffered at 5.20%
Mitsui & Co.--6-3/8% convertible debentures, due 1978,
reoffered at 6.38%
Mitsui & Co.--common stock
Kingdom of Norway--5-1/4% bonds, due 1978, reoffered to
yield 5.42%
Government of Japan--5-l/2% bonds, due 1980--reoffered to
yield 5.71%
Copenhagen, Denmark--5-3/8% bonds, due 1978--reoffered to
yield 5.55%
^ '
Oslo, Norway--5-1/4% bonds, due 1978-- reoffered to yield
5.47%

B. Prospective Offerings
7/10
7/10
7/17
7/

20.0
20.0
35.0
20.0

Milan, Italy-bonds
Hitachi, Ltd.--common stock
United Mexican States""bonds
Nippon Tel. & Tel. Public Corp.--bonds




H. 14

M-2
Part IX:
Date
reported
4/3
4/4
5/1
5/2

10.0

5/6
5/14
6/4
•6/13
6/20
*6/25

12.5

*6/28
*6/28

Private Placements--Reported April 1 through June 28

Amount
(millions
of dollars)
10.0

5.0

H.14

Issuer and Description of Issue
Industrial Acceptance Corp., Ltd. --5-1/87= secured notes,
maturing 1988--no information available on takedown
City of Vancouver--4-3/8% & 5% serial debentures, maturing
1964-83--no information available on takedown
Bell Telephone Company of Canada--4-7/8% first mortgage
bonds, maturing 1988--no information available on takedown
Laurentide Financial Corp.--5% senior notes, maturing
1978--no information available on takedown
Province of 0ntario--4% debentures, maturing 1966-69-no information available on takedown
Delta Acceptance Corp.> Ltd.--notes, maturing 1975--no
information available on takedown
Consolidated Gold Fields of South Africa, Ltd.--promissory
notes, maturing 1971--no information available on takedown
Nippon Express Co.--6-1/2% convertible debentures, maturing
1978--no information available on takedown
Mitsubishi Electric Corp--6-1/2% convertible debentures,
maturing 1978--no information available on takedown.
Quebec Natural Gas Corp.--5-1/2% first mortgage bonds, maturing
1987--no information available on takedown.
Farbwerke Hoechst A.G. --5% promissory notes3 maturing 1968--no
information available on takedown.
Dai Nippon Printing Co, Ltd.,—convertible debentures3 maturing
1978—no information available on takedown.

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
may take place both prior and subsequent to the date a placement
Digitizedtakedowns
for FRASER
is reported.
^--Included in table for first time,