Full text of H.16 Capital Market Developments : July 1, 1968

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DECOTOOLLED AFTER Six UOOTBS
Not for Publication
H. 14

July 1, 1968.
LIBRARY

JUL 3 1S63
v.

-

o;

KETS DEVELOIMENTS.
, 1Kb THEUNITED
~
STATES

^ZLut

Corporate and municipal bond markets. There will be almost no
public offerings of new corporate or municipal securities during this holidayshortened week. The limited municipal volume consists of several very small
issues while the corporate volume reflects the expiration of rights to purchase
$30 million of the Baltimore Gas & Electric Company's convertible preferred
stock.
1/
Long-term Public Security Offerings—'
(In millions of dollars)
Con jorate
New Capital
Refunding

State & local Government
New Capital I Refunding

Sold:
52 week avg.
June

21
28

321

1

r/319
277

252

1

r/307
297

—

Scheduled:
July

5

30

--

25

sold and scheduled for offering; corporate rights offerings are included
as of date subscription rights expire.
While the lagging seasoned corporate bond yield series declined
slightly last week, new issue yields advanced (although not as sharply as
shown by the series, which reflects an increase in the number of issues
carrying no call protection.) Even at these higher yields, however, new issues
did not sparkmudti investor interest. At the end of the week, large unsold
portions of the week's offerings remained in syndicate. Early in the week,
Standard Oil of New Jersey announced a $250 million debenture offering for
July 11.
Yields on municipals also advanced last week without enticing investors.
New issues received only a lukewarm reception — by the end of the week 59 per
cent had been sold. Dealer inventories advertised in the Blue List increased.
Home-mortgage interest rates and other terms. Because the maximum
ceiling on FHA-insured mortgages was raised from 6.0 per cent to 6.75 per cent
in May, no report from the Federal Housing Administration on secondary market
yields is available for the month. In April, yields on the 6 per cent mortgage
had averaged 6.94 per cent and,based on FHMA*auction" and other indications, a
large part of the 75 basis point increase in permitted ceiling rates most likely




H. 14

Yields on Security Markets
Change from
preceding week

High-Grade
Notes and Bonds
Corporate

11
2

6.78
6.27

New
Seasoned
U.S. Government

5.15
5.67

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

4.18
4.50

Money Market
Federal funds
Treasury bills
3-month
6-month,

..

-

5.90

38
15
7

5.30
5.51
Corporate Bonds Still in Syndicate

Date
Offered

Amount
(millions of $)

Reoffering
Yield

Issuer

Rating

Estimated proportion sold

6/27

15.0

Arkansas Pwr. & Lt.,.
7-3/8's - 1998

7.20

A .

55%

6/25

52.0

West Pennsylvania Power,
7-1/8's - 1998

7.00

Aa

25%

6/24

75.0

Montgomery Ward Credit,
7-3/8's - 1990

7.38

6/24

55.0

Ohio Bell Telephone,
6-3/4*s - 2008

6.72

75%

20%

Aaa

1

Blue List of Municipal Dealers Advertised Inventories
Latest Week
553(6/25/68)




End of Previous Week
476

Recent High
829(4/26/67)

H. 14

was associated with a much-needed readjustment in yields given the unusually
strong upward pressures prevailing in the capital market as a whole.
Conventional mortgage loan rates for both new and existing homes,
which had reached new peaks in April, each advanced an unprecedented 25 basis
• points further in May — to 7.15 per cent and 7.20 per cent respectively,
according to the Federal Housing Administration. These rates are rounded
to the nearest 5 basis points.
Based on Federal Home Loan Bank Board data, which tends to lag the
FHA series, rates on new and existing-home mortgages also reached new peaks
in May. On an effective rate basis, yields were up by record amounts - 12
basis points (to 6.83 per cent) for new-home loans and 17 basis points
(to 6.94 per cent) for existing-home loans. Moreover, the sharp upward
adjustment in yields required by lenders was accompanied by some continuation
of the tightening of non-rate terms. Maturities shortened further in May to
the lowest levels this year, to 25.0 from 25.3 years in the case of new-home
loans and to 22.5 from 22.6 years in the case of Joans on existing homes.
The loan-to-price ratio for loans on new homes declined further to 72.9 per
cent while the comparable ratio for existing homes apparently remained near
the recent low in April at an average of 73.1 per cent. With average purchase prices up further for both types of homes, implied downpayments
(average purchase price less loan amount) rose in May and, at $8.3 thousand
for new homes and $6.9 thousand for existing homes, matched or exceeded
earlier highs.
stock nr^ces. Common stock prices declinedlast week in trading
which, although heavy, was less hectic than that of the proceeding few weeks.
At the close Friday, Standard & Poor's index of 500 stocks stood at 99.58,
down 1.08 from the previous Friday. Trading volume averaged 13.2 million shares
a day.
More detailed information concerning recent capital market developments is presented in the attached exhibits.

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




H. 14

STOCK MARKET CREDIT
(In millions of dollars)

Months

Total

Broker & Dealer Credit
C^ptome-r Credit
Customers1
Money
Net Debit Bank lot-ns to others
net free
Borrowed
than
brokers
and
balances with
NYSE member dealers for purchas- Cust. Other credit
coll.
mil.
I
balances
•fnp •& carrying secur,
firms

Outstanding:
1955-56 High

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

1,255 (4/56)

1,873

430

1957-58 Low

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

1,060 (11/57)

1,344

188

1959
1960
1961
1962
1963
1965

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

1,373
1,121
1,377
1,269
1,727
1,865

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

318
237
385
235
597
446

8',231

1,974
2.184
2,357

3,393
2,889
n. a.

1,169
517
1,666
687
n. a. 3,064

107
240
437
4
218
185
43
830
-122
-380
-169
454
565

9
8
30
65
75
86
19
22
-32
-11
-47
-28
11

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

142
11
110
-60
120
112
-13
263
179
-174
-76
287
85

-

High
Low
High
Low
High
Low

1964 - Dec.
1965 - Dec.
1968
Change'in .
outstanding:
1967 - May
. June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1968 • Jan.
Feb.
Mar.
Apr.
May

(4)
(5)
(12)
(7)
(11)
(7)

7,053
7,705
10,588

116
248
467
69
' 293
271
62
852
-154
-391
-216
426
576

3,401
3,004
4,259
3,562
5,586
4,863

(4)
(7)
(12)
(7)
(11)
(7)

5,079

(5)
(5)
(8)
(9)
(12)
(2)

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

1,257
940
1,508
1,091
1,211
1,192

(3)
(4)
(4)
(9)
(U)
(8)

mmtmrem



SAVINGS FLOWS AT NONBANK DEPOSITARY INTERMEDIARIES
($ millions)

Mutual Savings Banks
Regular Deposits
Annual
Growth .
Net
Rate - /
Flow

Net
New
Money

Total
Savings & Loan Associations
Deposits
Share Capital
Annual
Annual
Net
Growth .
Growth.
Net
New 2 / Net
y
Rate-'
Flow
MoneyRate
Flow
Not Seasonally Adjusted

3,563
2,591
5,079

1965
1966
1967
1967 - Mar.
Apr.
May £/

727
190
115

Mar.
Apr.
May £/

645
-75
353

1967 - Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May £/

302
244
439
427
241
458

1968

7.4%
4.9
9.3
—*

—— ,
--

8.3%
3;3
9.1

4,458e
-552
6,136

1,457
411
1,130

——

787
479
1,089

2,184
601
1,245

1,047
547
1,482

1,276
r/-295
749

--

541
-324
722

1,921
-370
1,112

658
-513
1,022

1,527
227
2,376

8,396
3,656
10,686

260
68
393
117
-189
300

—

--

11,959
6,247
15,765

8.CR

3.8
9.2

"5-325e
8,512

Seasonally Ad lusted

1/

6.1
4.9
8.8
8.5
4.8
9.0

- *•
—-

. -——

560
249
615
887
r/406
613

5.5
2.4
6.0
8.5
r/3.9
5.8

—
—
—

—

862
493
1,054
1,314
r/647
1,071

5.7
3.2
6.9
8.5
r/4.2
6.9

Net New Money is deposits net of both withdrawals and interest. Data for S&Ls are for insured associations
only, which represent 967. of the total resources of the industry.
SOURCES: National Association of Mutual Savings Banks and Federal Home Loan Bank Board.
Estimated.
2/ Preliminary.
-5-

&/



EXHIBIT

A, Part 1

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

C O R P O R A T E All

U.S. G O V E R N M E N T
Long-term

r

STATE A N D LOCAL G O V E R N M E N T All
Moody's

1963



1964

1965

1966

1967

1968

Exhibit A -- fare j.1

Corporate
Aaa 1/

Date

1959-60 - High
1966 - High
- Low
1967 - High
- Low
1968 - May
June

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

31
7
14
21
282 f

6.29
6.29
6.28
6.29
6.27

State and
U.S. Govt, j
local
long-term 2/| government
Aaa 3/
(per cent)
4.42(1/8/60)
4.87(9/2)
4.42(1/7)
5.49(11/17)
4.37(2/3)

3.65(9/24/59)
4.04(8/25)
3.39(1/13)
4.15(12/28)
3.25(2/9)

5.43
5.30
5.27
5.18
5.30

4.42
4.25
4.25
4.15
4.18

Spread between
U.S. Govt, and
Corporate
| State and
Aaa
j local Aaa
.59(8/5/60)
.84(12/30)
.14(2/18)
.92
.44
.86
.99
1.01
1.11
.97

.92(4/22/60)
1.19(2/11)
.77(9/2)
1.51
.74
1.01
1.05
1.02
1.03
1.12

E./ Preliminary.
1/ Weekly average of daily figures. Average term of bonds included is 22-24 years.
2/ Weekly average of daily figures. The series includes bonds due or callable in 10
years or more.
3/ Thursday figures. Only general obligation bonds are included; average term is 20
years.
Note--Highs and lows are for individual series and may be on different dates for
different series. For spreads, high refers to widest, and low to narrowest-




EXHIBIT B, Pari 1

L O N G - T E R M B O N D YIELDS, LOWER GRADE
Wee k ly

C O R P O R A T E Baa

STATE AND LOCAL G O V E R N M E N T Baa
~\J

1963



1964

1965

1966

1967

1968

Exhibit B -- Part II

Date

State and
local govt.
Baa 3/

Corporate
Baa 1/

(per cent)

Spread between
Aaa and Baa
State and
Corporate
local Rovt.

1959-60 - 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)

4.46(1/7/60)
3.79
4.55(8/25)
3.78(1/20)
4.73(12/28)
3.85(4/13)

.84
.31
.81
.31
.82
.63

1.08
.39
.62
.31
; 81
.37

1968 - May 31
1968 - June 7
14
21
28^/

7.10
7.09
7.08
7.07
7.04

5.18
5.16
5.16
4.96
4.96

.81
.80
.80
.78
.77

.76
.91
.91
.81
.78

Note:




For footnotes see Exhibit A.

-9-

.

EXHIBIT

C, Port 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

* M O N T H BILLS

3-5 YEAR ISSUES

F.R. DISCOUNT RATE

3 M O N T H BILLS

1963



1964

1965

1966

1968

Exhibit C -- Part II

Discount
rate
IZ
1959-60 - High
Year end - 1965
1966
1966 - High
Low
1967 - High
Low

4.00
4.50
4.50
4.50
4.50
4.50
4.00

1968 - May 31
June 7
14
21
282./

5.50
5.50
5.50
5.50
5.50

3-month
bills U
4.59(1/8/60)
4.47
4.80
5.52(9/23)
4.39(6/24)
4.99(12/29)
3.41(6/9)
5.70
5.66
5.68
5 45
5.30

Yields
6-month
bills U
(per cent)

3-5 year
issues U

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

5.07(1/8/60) 5.00(12/24/59)
4.90
4.66
4.86
4.92
5.83(9/2)
5.92(9/23)
4.80(4/8)
4.53(6/24)
5,50(12/15) 5.80(11/10)
4.36(4/7)
3.74(6/2)
5.86
5.72
5.75
5.58
5.51

5.91
5.80
5.75
5.61
5.67

.79
.19

1.81
.43

.06

.12.

.52
• 09
.62
.01

.78
.01
1.61
.02

.16
.06
.07
.13

.21
.14
.07
r/• 16
" .37

.21

1/ Weekly rate shown is that in effect at end of period at the Federal Rdserve 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.
£/

Preliminary, r/




Revised.

-XI-

EXHIBIT

D, Port

1

S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES,
B A N K S A N D OTHER P R I V A T E BORROWERS

PRIME RATE
J -

FINANCE COI
Direclly

plated_

F.R. DISCOUNT RATE

FEDERAL FUNDS

1963



1965

1966

1967

1981

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

5.00
4.50
5.00
6.00
5.00(3/4)
6.00(12/29)
5.50(12/1)

5.13(1/22/60)
4.06
4.75
5.88
4.75(1/7)
5.75(1/6)
4.38(6/23)

4.00(5/13/60)
4.00
4.63
5.63
3.55(1/21)
5.25(1/6)
3.40(10/27)

1968 - May 31
June 7
14
21
28E/

6.50
6.50
6.50
6.50
6.50

6.00
6.00
6.00
6.00
6.00

5.91
5.97
6.23
6.28
5.90

1.02
.23
.28
1.08
.20
1.33
.21
.30
.34
.32
.55
.70

1/ Weekly rate shown is that in effect at end of period. Prime rate is that
™~ charged by large banks on short-term loans to business borrowers of the highest
credit standing.
2J 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.
2./

Preliminary.




-13-

EXHIBIT

E, Port 1

STOCK M A R K E T
Billiom

of

1941-43 o v e r « e e = 10

dollars

100

PRICES

10

8

STOCK M A R K E T CREDIT

6

* CHANGE IN SERIES

J

4

Millioni

40

of s k a r e i

VOLUME

YIELDS
:
1 1 1 I I 1 II II1 1 II III 1 1 1 1 1 i 1i i i i ii I u 1 iI ii ii it ill i M II 1 1 1 1 III 11 1 1 II 1 1 1 1 1 1"
1963
1964
1965
1966
1967
1961




Exhibit E —

Stock price
index 1/

Date

1961-62 - High
Low
1966 - High
Low
1967 - High
Low
Apr.
May
June

If
2/
~~
3/
~~
4/
5/
~

Part II

Stock market customer credit
Common
Trading
Customers'
Bank
volume 3/
stock
debit bal- loans to
Total
yields 2/ (millions
"others"5/
ances
4/
(per cent)
of shares)
(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
3.97
3.01
3.58

10.1
2.4
10.7
5.0
12.3
6.9

95.67
97.87

3.12
3.08

14.7
13.4

2.98
2.99
3.03

16.6
14.0
13.2

14 101.13
21 100. 66r/
28 £ f98.58

5,602(12/61)
4,424(1/61)
7,997
7,302
10,347(12/67)
7,345(1/6)
10,012
r/10,588

"•a.

4,259(12/61)
3,253(1/61)
5,835
5,169
7,883(12/67)
5,290(1/67)
7,666
r/8,231

n.a.

1,418(5/9/62)
1,161(3/8/61)
2,241(7/6)
2,097(12/14)
2,057(11/1)
2,055(1/25)

- 2,346
2,357
2,383
n. a.
n.a.

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.
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.
Averages of daily trading volume on the New York Stock Exchange. Year-end figures are averages
of daily figures for the year.
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.
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.




-15-

EXHIBIT F. Port I

M O R T G A G E A N D B O N D YIELDS

HOME MORTGAGES:

Aaa CORPORATE BONDS:

1959

1960

1961




1962

1963

1964

1965

1966

1967

1968

Exhibit F
Conventional
mort25-year 30-year gages 3/
FHA
mortgages 1/

1957
1958
1959-60
1961-66
1966
1967

-

High
Low
High
Low
High
High
Low

5.63
5.35
6.24
5.43
6.73
• —

*—
-—

5.44
6.81
6.81
6.29

6.00
5.55
6.30
5.80
6.70
6.65
6.40

Part II

Spread between yields
on conv. &
FHA mort
gages
.47
.15
.23
.25
.30
.11
-.12

Aaa Corporate
Bonds
6/
Seasoned
4.94
3.65
5.25
4.12
5.82
6.53
5.20

4.12
3.57
4.61
4.19
5.49
6.07
5.03

Spread between
yields on new corporate bonds and
FHA mtgs. Seasoned
4/
bonds
1.58

.88

1.69
.77

1.11
1.26
.24

1.03
.05
.73

-.16

.46
.46
.17

.07
.57
6.17
6.24
-.06
6.75
6.81
n.a.
- Jan.
.19
.49
6.10
6.29
-.03
6.75
6.78
n. a.
Feb.
.45
• 27
6.11
6.56
-.03
6^80
6.83
Mar.
.42
6.21
6.52
-.04
6.90
6.94
n. a.
Apr.
'.39
6.27
n.a.
6.66
7.15
n. a.
n.a.
May
Neither mortgage nor Dona yieias taxe into a ^ u u m
—higher for mortgages than bonds. Generally, bonds pay interest semi-annually,
mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual
interest investment, would be
table.
oe slightly
sugnciy higher
mgnet than given in the
™
.
i j - cci opinions about average
aiTovaoo bid
hi A prices
nri pps in
inthe
theprivate
nrixj
Based on —
FHA-field-office
secondary
, .
„
,
c—
ivprv. Senarate data available for

1968

1 T

2/
—

3/

y

%
r/

Over tne perioa ror wiutu uucy v«u uc
~
yield series has been similar. Dashed lines indicate periods of adjustment to
.
changes in contractual interest rates.
.
Based on
on FHA-field-office
opinion on typical
interest
rates (rounded)
Based
ttiA-rieia-oLtivc upxn^uii
— - *"
•
.' on conventional
, ,nn
.J
j- the
1.1.- market«-areas of
nf insuring
•?•?cut1no office
nff 1 cecities.
cities. Beginning
Beginning
first mortgages prevailing
in
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
FHA%rtgage%ield data are for 25-year mortgages through June 1961; 30-year mort
gages thereafter.
See note for Exhibit G.
...u A
Moody's Investor Service. Monthly averages of daily data. See Exhibit A.
Revised.




-17-

EXHIBIT F,. Port H

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

v

Monthly

MATURITY
NEW
EXISTING

o

LOAN/PRICE I

>

20

NEW

_

—EXISTING

I I I I I I I I I I I

I I I1 I I I I I ! I
1964




II'

: '

11

1 I I 1 1 1 M 1 M1 1 M I I 1 1 1 M1 1 1 I I 1 1 1 1 I I
1966

1968
* CHANGE IN SERIES

Exhibit F

Con- Fees &
tract Charges
Rate
(Per
(Per
cent)
cent)
2/

Part IV

New Homes
EffecLoan/
tive Maturity Price Loan
Rate
(Years) Ratio Aot.
(Per (The.)
cent)
3/

Existing Homes
Loan/
Con- Fees & Effectract Charges tive Maturity Price Loan
Amt.
Ratio
(Years)
Rate
(Per
Rate
(Per (Tho.)
cent)
(Per
cent)
3/
2/
cent)

1967
May
July
Aug.
Sept.
Oct.
Nov.
Dec.

6.25
6.23
6.31
6.28
6.31
6.34
6.33
6.41

0.77 6.37
0.76 6.35
0.77 6.43
0.78 6.40
0.78 6.44
0.82 6.47
0.76 6.45
0.84 6.54

25..3
25.,2
25.,2
25..2
25..3
25..4
25..3
25.,4

74.0
74.0
73.9
73.7
74.2
73.8
73.4
72.7

20..4
20.,8
21.,0
21.,0
21.,4
21.,2
21.,2
21.,5

6.29 0..70
6.28 0..67
6.30 0..70
6.34 0..72
6.36 0.,73
6.39 0.,78
6.42 0.,77
6.51 0.,83

6,.40
6,.39
6..41
6..46
6.,47
6..52
6..55
6..64

22.3
22.8
22.7
22.8
22.5
22.5
22.7
23.1

72.7
72.5
72.9
73.4
72.7
73.0
72.9
73.1

17.5
18.2
18.1
18.1
17.4
17.3
18.3
18.4

6.39
6.47
6.50
6.57
6.68

0.86
0.94
0.88
0.88
0.94

6.52
6.62
6.64
6.71
6.83

25.,4
25.,5
25.,7
25.,3
25,,0

72.9
74.5
74.3
73.4
72.9

21.,7
22.,2
22.,4
22.,2
22.,2

6.57
6.58
6.59
6.64
6.80

0.,82
0.81
0.,79
0.,80
0.,86

6.,70
6.,71
6.,72
6.,77
6.,94

22.7
22.6
23.0
22.6
22.5

73.7
73.6
73.3
72.8
73.1

18.4
18.0
18.6
18.3
18.6

1968
Jan. j
Feb.
Mar.
Apr.r/
May £/

.Note; New series beginning 1965.
p/ Preliminary
r/ Revised.
,
'
\f 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 prior to 1965 on a comparable basis with the new series are pending. 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 the 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.
3/ Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.




EXHIBIT

G, Port 1

YIELDS O N N E W A N D SEASONED CORPORATE B O N D S
Weekly

6 5

Adjusted to

Aoo

Boiii

N E W ISSUES

6.0

5.5

5.0
SEASONED Aaa

4.5

1964



1966

1965

/

1967

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

Number
of

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

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

Monthly averages:
1968 - Jan.
i;
Feb.
Mar.
Apr.
May

13
13
10
7
11

567.0
564.5
350.0
415.0
531.0

6.24
6.29
6.56
6.52
6.66

Apr. 5
12
19
26
May

June
Weekly averages:
High
Low

6.83(5/24/68)
6.18(1/12/68)

1
1
3
2

3
3
10 I ' 2
17 1
3
2
24
3
31
7
14
21
28j3!

6
2
2
3

50.0
25.0
215.0
125.0

6.58
6.41
6.42
6.65

75.0
71.0
170.0
45.0
220.0

6.63
6.64
6.62
6.83
6.68

660.0
50.0
100.0
122.0

6.66
6.61
6.67
6.78

,

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.
j>/ Preliminary.




-21-

I

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

January
February
March

lMSp/

1 % 7P/

1966

State and local
1967P/
1968p/

1,706
1,568
1,740

1,648
1,399
2,317

1,302
1,237
2,446

1,175
1,175
1,365

1,487
1,199
1,433

1,188
858
865

April
May
June.

r/1,413
e/1,900v
e/2,300

1,973 .
1,474
2,611

1,553
1,058
2,364

1,273
e/1,175 /
e/l,325 /

1,111
1,229
I,497

1,193
901
I,141

July
August
September

e/2,050

2,454
2,407
1,723

1,039
1,670
1,382

e/1,300/

943
858
1,330

701
773
1,020

2,289
1,467
2,336

829
1,085
1,635

974
1,400
1,182

755
969
940

October
November
December
Quarter
Quarter
Quarter
Quarter

2/5,014
e/5,613 -

5,364
6,058
6,584
6,092

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

3, 715
e/3,773

4,119
3,837
3, 131
,3,556

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

1st half
Three quarters
Year

e/10f27./

11,421
18,007
24,098

9,959
14,050
17,601

e/7,488

7,956
II,087
14, 643

6,146
8,640
II,304

1st
2nd
3rd
4th

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

Quarter
Quarter
Quarter
Quarter

Year
17

5,207
5,913
6,338
5,657

4,924
4,884
3,969
3,188

23,115

17,269

Estimated by Federal Reserve.




-22-

Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
Quarter
or
Month

Total

Net proceeds
Gross proceeds for new capital
for new capital 1/ 2/
and refunding 1/
Bond s
Common Memo:
Other
Mfg. Public CommuniForeign
Publicly Privately and
Utility cations Issuers
Offered Placed
pfd. issues
stock included
3,263
1,811
390
60
1,382
2,442
997
543
4,017
1,465
726
65
3,014 1,268
1,228
548
4,604
1,551
678
234
2,792 1,219
595
1,976
3,107
2,137
1,051
93
2,527 1,255
269
2,040

1967 - I
II
III
IV

5,464
6,208
6,833
6,294

1968 - I

5,178

; 2,465

1,724

989

313

1,854 1,394

411

1,356

1967 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,519
2,673
2,589
2,481
1,763
2,409
1,500
2,385

965
1,684
1,889
1,813
902
1,375
645
1,087

396
• 659
486
412
647
566
551
1,020

158
330
214
250
214
469
304
278

32
17
213
13
8
34
19
30

588
1,298
925
1,229
637
906
512
1,109

403
471
446
509
265
573
404
278

91
350
39
356
200
119
82
68

393
492
1,044
313
619
690
469
881

1,771
.1,607
1,800
1,453
2,000

903
796
766
719
1,040

546
585
593
465
650

322
226
441
269
310

16
61
236
30
n.a.

537
556
761
364
675

417
546
431
178
475

186
147
78
189
75

566
321
469
681
725

1968 - Jan.
Feb.
Mar.
Apr.
May e/

j>/ Preliminary, e/ Estimated by Federal Reserve, r/ Revised.
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.




-23

Exhibit J
Other Security Offerings
(In millions of dollars)
Gross Long-term 1/
Foreign Government 2/
Federal Agency 3/
1966.
1967
1968 2/
1967
1968 £/
January
February
March
April
May
June
July
August
September
October"
November
December
Jan. - Apr

103
49
30
75

257

Year

January
February
March
April
May
June
July .
August
September .
October
November,
December
Jan. - Apr. £>/

196
223
27
13
170
22
586
193
66
142
18
419

12
40
40
66
69
76
72
7
50
23
74
68
92

1,656

597

-—

999
550
1,370
225

3,144

__

1,251
783
750
650
810
650
407
250
599
708
710
612
2,784

503
410
392
699
1,030
1,084
799
400
450
800
239
913

8,180

6,806

New short-term 4/
State and local Government 5/
Federal Agency
179
103
490
-179
30%/
387
39
-552
436
89j»/
-594
-319
-593
-454
-604j>/
827
580
-559
681
515
462
109
-187
-334
93
-103
20
-158
270
-262
593
-161
32
1,407
-48
606
414
503
49
573
-570
36
-514
-28
-177
-1,185
-212
1,014

Year

1,721

422

1966

660

3/
308
-24
450
718
85
284
-590
-270
-652
-555
-283
219
734
310

j>/ 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
subdiyidions and international organizations. Source: Securities and Exchange Commission.
3/ Issues not guaranteed by U.S. government. ^Source; 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 fromother 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 mav have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal
Reserve.
-24-




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

Total
1967 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May

870
1,666
1,340
1,705
794
1,458
826
978
904
757
788
696
1,009

Cornoriite
Bonds
Convertible
(other than
convertibles)
bonds
771
55
1,072
409
890
317
1,288
350
473
257
285
897
461
150
460
437
652
168
105
575
415
135
723
500
283
656

State
and
local
governments
496
875
483
473
847
505
865
633
785
591
736
794
571

Stocks
44
185
133
67 .
65
276
215
81
85
77
238
73
70

Other

2/

391
825
85
221
400
50
845
627
1,095
389
1,030
370
145

Large Individual Issues Offered during June,
Issuer

Standard Brands Inc.
Dow Chemical Go.
Ogden Corporation
' Xauisville Gas & Elec.
American Hoist & Derrick
Southwestern Bell Tele.
Gulf Oil Corporation
Florida Power Corporation
*Franltlin National Bank
Leasco Data Processing
Equipment
First Mortgage investors
Northern Illinois Gas Co.
Alloys Unlimited
Columbus & Southern Ohio
Electric
Transcontinental Gas Pipeline Corporation

Type 1)

Amount
(millions
of
dollars)

S.F. debs.
71.4
Deb. s
100.0
Conv. debs.
50.0
1st mtg. bds.
20.0
Conv. sub. debs. 15.0
150.0
Debs.
Debs.
200.0
1st mtg. bds.
60.0
Com. stk.
15.4

Maturity

1993
1998
1993
1998
1993
2008
1993
1998

Coupon
rate or
net interest cost
6-3/4
6.70
5.00
6.75
5-1/2
6.75
6-5/8
7.00

Offering
vield

Rating

6.25
6.70
5.00
6.74
5.50
6.80
6.63
6.82

A
A
Ba
Aaa
Ba
Aaa
Aaa
Aa
•

--

Com. stk. w/w.
Debs.
1st mtg. bds.
Conv. sub. debs.

52.5
15.0
30.0
15.0

1982
1993
1993

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

6.75
4.50

Aa
Ba

1st mtg. bds.
1st mtg. p.1.
bonds

25.0

1998

7 00

6.91

Aa

50.0

1988

7-3/8

7.50

Baa




-25-

—

—-

—

K-2
Large Individual Issues Offered during June.

Issuer

Type

3/

(Continued)

Amount
(millions
Maturity
of
dollars)

Coupon
rate of
net interest cost

Offering
yield

Rating

Corporate (Cont'd)
Equity Funding Corp. of
America
Public Service Electric &
Gas Company
Penzoil United, Inc.
Beeton-Dickinson & Co.
University Computing Co.
* American Hospital Supply
Dayton Power & Light Co.
Ohio Bell Telephone
Household Finance Corp.
Western Penn. Power
Montgomery Ward Credit
Corporation
Arkansas Power & Light
^Recognition Equipment Inc.

Corrv. debs.

15.0

1st mtg. bds.
Debs.
Conv. sub. debs.
Com. stk.
Com. stk.
1st mtg. bds.
Debs.
Debs.
1st mtg. bds.
Debs.
1st mtg. bds.
Com. stk.

1983

5-1/4

5.25

75.0 1998
100.0 1988
25.0 1988
23.4
62.1
25.0 1998
55.0 2008
75.0 1990
35.0 1998

6.90
7.52
4-1/8

6.85
7.40

6-3/4
6-3/4
7-1/4
7-1/8

6.75
6.72
7.30
7.00
7.63
7.20

— «-

Aa
Baa
Baa
Aa
|
Aaa • |
Aa
. 1;

60.0
15.0
26.4

1988
1998

7-3/8
7-3/8

14.0
10.0

1970-97
1969-90

5.36
4.48

28.2
20.0
75.0
25.0
20.0
32.5

1970-99
1969-88
1968-2008
1977-81
1970-98
1970-94/96

5.23
4.48
5-1/8
4.21
4.85
4.55

4.10-5.25
3.80-4.65
5.13
4.10-4.25,,
.3.90-4.95%/
3.80-4.75

Aa
A
Aa

4.91

4.15-4.95

Aa

4.42
3.80-4.50
4.33
3.80-4.40
5.27
4.10-5.25
4.67
3.75-4.75
5-3/8
4.40-4.85
5-3/8
5.38
5.30
4.40-5.25
4.07
3.60-4.10
3-3/4-4-1/4
4.31
3.70-4.40
4.62
4.50-4.75
5-3/4
5.75
4.45
3.80-4.50
3.60-4.20
4.17

Aa

A

State & local Government
Livonia, Michigan Pub. Sch.
District
G.O.
^Fulton Co. Sch. Dist., Ga. G.O.
Dormitory Auth. of the
State of New York
Rev. -Rent.
Houston, Texas
G.O.
*New Jersey Turnpike Auth.
Rev. -Q.-Ut.
State of Oregon
G.O.
Seattle, Washington
Rev. -Ut.
Port of New York Authority G.O.
Metro* Water Dist. of So.
California
G.O.
Virginia Public School
Authority
G.O.
Dallas I.S.D., Texas
G.O.
Puerto Rico Highway Auth.
Rev. -Q.-Ut.
Allegheny Co., Pennsylvania G.O.
Hancock Co., Kentucky
Rev. -Rent.
Hancock Co., Kentucky
Rev. -Rent.
Newark, New Jersey
G.O.
Augusta, Maine
G.O.
Rend Lake CotBovarcy Dist., 11L Rev. -Ut.
Harris Co., Texas
G.O.
Georgia Highway Authority
Rev.--S.T.
Green River, Wyoming
Rev. -Rent.
•
State of Mississippi
G.O.
University of Texas(Austin) Rev. •
-Rent.




'

85.0 1979-2000/18
10.0
15.0
40.0
18.8
24.2
91.8
18.1
11.0
13.5
18.8
25.5
19.1
13.6
15.0

1970-89
1969-88
1970-88
1969-98
1972-78
1993
1969-88
1969-88
2005
1969-96
1979-98
1993
1970-88
1969-88
26-

3,90-5.40
3.80-4.50

Baa
A-l
A
A
——

—*
——

A-l
•* •

Baa
Aaa
--

A-l
Aa
Aa
Aaa

T

K-3
Large Individual Issues Offered during June.

Issuer

Type

3/

(Continued)

Amount
(millions
Maturity
of
dollars)

Coupon
Offer- Rating
rate or
net intering
yield
est cost

State & local Government
(Cont'd)
Port of Seattle, Washington
Highland Park Sch. Dist.,
Michigan
Illinois Building Auth.
Chicago O'Hare Internal11
Airport
Chelan County, Washington

3.90-4.65

Rev.-Q.-Ut.

10.0

1969-88^

4.63

G.O.
Rev.-Rent.

11.6
34.0

1970-94
1968-1989

3.90-4.70
4.61
4.79 . 3.40-4.75

Rev.-Rent.
Rev.-Ut.

18.0
40.0

1999
2023

5-1/8

500.0

1971

6-5/8

A
Aa
Aa

5.10

Other
Export-Import Bank

*
If
2/
3/

4/
5/

Part. cert.

Rights offering.
Includes corporate and other security offerings of $15 million and over; State and
local security offerings of $10 million and over.
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.O. denotes general obligation;
Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds
secured solely by lease payments.
Bonds maturing at 1996-98 were not reoffered.
Bonds maturing 1987-88 were not reoffered.




=27-

H. 14

Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
(In millions of dollars)
During month following
date shown
State and
Corporate
Other 2/
local govt.
596
100
1,449
1967 - May. 31
.1,636
40
-401
June 30
512
1,261
July 31
100
783
694
Aug. 31
65
768
Sept. 30
534
505
50
1,357
Oct. 31
865
845
826
Nov. 30
402
633
968
Dec. 31
60
1968 -Jan. 31
449
531
683
130
873
Feb. 29
15
494
758
Mar. 31
695
45
1,103
Apr. 30
500
1,193
485
•May 31.

Corporate
2,065
1,922
1,576
1,335
1,090
2,694
2,129
1,892
736
1,105
935
1,612
1,403

Subsequent to
date shown
State and
local govt.
616
402
575
903
889
743
1,684
1,076
.937
1,079
624
1,069
640

Other 2/
115
70
150
159
126
260
875
502
75
265
125
60
515

Forthcoming Large Offerings during June,
Amount
(millions
of:
dollars).

Type

Approximate date of
offering

Corporate
Baltimore Gas & Electric
Conv. pfd.
American Export Industries, Inc.
Conv. sub. debs.
Nytronics
Conv. sub. debs.
Commonwealth Edison Company
1st mtg. bds.
^Standard Oil of New Jersey
Debs.
Cum. pfd. stk.
Houston Lighting & Power Co.
Conv. debs.
American Broadcasting Company
Allegheny Beverage-Corporation
Cony, sub* debs.
Metro-Goldwyn-Mayer Inc.
Conv. debs.
1st mtg. bds.
Public Service of Colorado
New England Power Company
1st mtg. bds.
Pacific Lighting Service & Supply Co. S.F. debs.
WhiEtaker Corporation
Conv. debs.
Pacific Telephone & Telegraph Co.
Debs.
. General Telephone of Ohio
Debs.
Com. stk.
General Mills Inc.
*General American Transportation
Equip, tr. cert.
Corporation
Conv. debs.
*J.C. Penney
Conv. cap. notes
*Chemical Bank New York Trust Co.




-28-

30.0
50.0
25.0
50.0
250.0
25.0
47.5
20.0
35.0
25.0
20.0
30.0
60.0
165.0
15.0
45.0

July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July

50.0
125.0
52.0 "

July
July
Indefinite(rts. exp.)

l(rts. exp.)
2
8
9
11
11
15(rts. exp.)
15
16
16
17
18
24
23
24

L-2

Forthcoming Large Offerings during June.
Amount
(millions
of
dollars)

Type

Approximate date of
offering

Corporate (Cont'd)
*Wyle Laboratories
*National Fuel Gas Company
*Okonite Company
*LTV Aerospace Corporation
Piedmont Aviation
Computer Applications
Gordon Jewelry
Commonwealth United Corp.
^General Public Utilities
Corporation
^McDonald's Corporation
Levin-Townsend Computer
Corporation
Lone Star Cement

Conv. sub. debs.
S,F. debs.
Deb.s w/wts.
Deb.s w/wts.
Conv. debs.
Conv. debs.
Conv. debs.
Conv. debs.

15.0
15.0
25.0
50.0
15.0
15.0
15.0
15.0

Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

Com. stk.
Conv. debs.

25.5

Indefinite(rts. exp.)
Indefinite

30.0

20.0

Indefinite
Indefinite

78.0
50.5

July
July

30.0

July ~ 9
July
9

12.0
30.4
13.7

July
9
July 10
July 10
July . 11
July 15

20.0

S.F. debs.
Conv. debs.

State & local Government
G.O.
State of New York
Dade Co. Port Auth., Fla.
Rev.-Q.
Los Angeles, California
Unified School District
G.O.
Iberville Parish, La.
Rev. -Rent.
Rothchild Joint Sch. Dist.
#1, Wisconsin
G.O.
East Baton Rouge Parish, La. Rev.-Rent.
Passaic Co., New Jersey
G.O.
*State of California
G.O.
State of Texas
G.O.
*Nashville and Davidson
County, Tennessee
G.O.
Pennsylvania State Highway
and Bridge Authority
Rev.-Q.-Ut.
State of Maryland
G.O.
Los Angeles Dept. of Airports
Rev.-Rent.
*Philadelphia, Pennsylvania
G.O.
*Cook Co., Thornton Twp.
G.O.
HSD #205, Illinois
State of Oklahoma
G.O.
Kentucky Turnpike Auth.
Rev.-Q.-Ut.
Rev.-Rent.
*Ardmore Development Auth.
Consumers Public Pwr. Dist.,
Rev.-Rent.
Nebraska
Other
*Province of Ontario
Debs.
* Husky Oil Canada, Ltd.
Com. stk.
Canadian Utilities, Ltd.
S.F. debs, w/wts.




20.0

100.0
16.0
12.0

July

16

100.0
44.5

July
July

16
16

35.0
29.2

July
July

23
24

10.0
16.0
120.0
75.0

July 24
July
Indefinite
Indefinite

250.0

Indefinite

75.0

July
9
Indefinite
Indefinite

20.0
-29-

9
9

15,0

FOOTNOTES:
^--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.




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

Sale Date

Amount
(millions
of
dollars)

Public Offerings

. Issuer and Description of Issue

A.

Sold; Mar. 1 through

June 28,

1968.

International Nickel Company — Debentures
maturing 1993, reoffered to yield 6.85%.

March

28

150.0

April

16

75.0

Lakehead Pipeline Co. — 7-1/8% S.F. debentures,
maturing 1993, reoffered to yield 7.17%.

April

17

20.0

New Brunswick Higher Education Commission - (Canada) -7% S.F. debentures maturing 1993, reoffered to yield
7.15%.

April

18

50.0

Province of Quebec — 7% debentures maturing 1989,
reoffered to yield 7.25%.

May

15

20.0

Montreal Catholic School Commission—7-1/2% S.F. debs,
maturing 1993, reoffered to yield 7.88%.

May

21

25.0

Newfoundland and Labrador Power Commission—7-3/4%
S.F. debentures, maturing 1993, reoffered to yield 8%.

May

28

100.0

Canada, Government of, 6-7/8% bonds maturing 1988,
reoffered to yield 6.90%.
B.

Indefinite
^Indefinite

15.0
20,0

Prospective Offerings
Canadian,Utilities, Ltd., -- S.F. debs with warrants.
Husky Oil Canada., Ltd.
Connhon Stock.
Province of Ontario — Debs.

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




-31-

M-2
PART IIj

Date Reported

.

Private Placements— Reported March 1 through June 28, 1968.
Amount
(millions
of
dollars)

Issuer and Description of Issue

3/1/68

12.0

Edmonton (City of Alberta, Canada),
U.S. 6-3/4% debentures maturing Jan., 1993.

3/15/68

35.0

Mexico - (United Mexican States) external
7-1/4% bonds due 3/1/73.

4/29/68

27.8

Arctic LNG Transportation Co. (Liberian Corp.)
6-5/8% notes maturing 1991. $21.3 take down.

. 5/20/68

60.0

Eurocan Pulp & Paper Co., Ltd. - (British
Columbia) 1st and collateral -- 7-1/2%,
maturing 1993.

29.4

Seaboard Finance Co. of Canada, Ltd., Sr. notes
maturing 1983, take down at various dates
through 1969.

6/68

Note: -For retrospective data on aggregate foreign corporate and government security
offerings in the United States see Exhibits I and J. There is no simple relationship
between the data shown in the Exhibit and that shown in Exhibits I and J because the latter
includes privately placed securities in the period in which funds are actually taken down
but only in the amount of takedown while the placements shown in this exhibit are included
when reported, frequently with little or no information concerning timing of takedown.
Full or partial takedown may take place both prior and subsequent to the date a placement
is reported.




- 32-