View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

o f

QDU. &

Not ^ P u b l i c a t i o n

AFTER SIX PONTES
I CAPITAL MARKETS DEVELOPMENTS
CAPITA:
L-'-tk
'
THE UNITED STATES

C o r p o r a t e and m u n i c i p a l bond m a r k e t s .
The volume of new
s e c u r i t y I s s u e s i n b o t h t h e c o r p o r a t e and m u n i c i p a l bond m a r k e t s w i l l
a g g r e g a t e s u b s t a n t i a l l y l e s s t h a n t h e weekly average f o r such i s s u e s over
the past year.
C o n s o l i d a t e d E d i s o n Company's $50 m i l l i o n o f f e r i n g
of p r e f e r r e d s t o c k a c c o u n t s f o r t h r e e - f o u r t h s of t h e t o t a l of new
corporate issues.
L o n g - t e r m P u b l i c S e c u r i t y O f f e r i n g s 1/
( I n m i l l i o n s of d o l l a r s )
Corporate
New C a p i t a l | R e f u n d i n g

S t a t e and l o c a l G o v t .
New C a p i t a l
| Refunding

Sold;
52 week a v g .
July

8
15

177

3

84 r /
220

207

4

122
220

Scheduled
J u l y 22

65

--

130

1/ F e d e r a l R e s e r v e e s t i m a t e s b a s e d upon p u b l i s h e d r e p o r t s of i s s u e s
s o l d and s c h e d u l e d f o r o f f e r i n g ; c o r p o r a t e r i g h t s o f f e r i n g s a r e i n c l u d e d
a s of t h e d a t e s u b s c r i p t i o n r i g h t s e x p i r e .
A mixed r e c e p t i o n was a c c o r d e d l a s t w e e k ' s two m a j o r c o m p e t i t i v e l y
o f f e r i n g corporate debt issues.
C h e s a p e a k e and Potomac T e l . Company's
d e b e n t u r e o f f e r i n g was s o l d - o u t i n a s i n g l e d a y , w h e r e a s Consumers Power
Company bonds a r e a p p r o x i m a t e l y t w o - t h i r d s s o l d .
New and s e a s o n e d c o r p o r a t e
bond y i e l d s a d v a n c e d f u r t h e r .
S t a n d a r d and P o o r ' s h i g h - g r a d e m u n i c i p a l s a d v a n c e d 4 b a s i s p o i n t s
l a s t week.
Kentucky T u r n p i k e A u t h o r i t y ' s $120 m i l l i o n n e g o t i a t e d i s s u e
was w e l l r e c e i v e d .
M o r t g a g e y i e l d s and c o n v e n t i o n a l m o r t g a g e t e r m s .
Secondary
m a r k e t y i e l d s on 5 - 3 / 4 p e r c e n t , 3 0 - y e a r , F H A - i n s u r e d m o r t g a g e s r o s e 13
b a s i s p o i n t s f u r t h e r i n J u n e t o a l e v e l of 6 . 4 5 p e r c e n t .
T h i s was a b o u t
100 b a s i s p o i n t s above t h e p l a t e a u w h i c h had p r e v a i l e d t h r o u g h t h e summer
of l a s t y e a r .
Y i e l d s on c o m p a r a b l e 2 5 - y e a r , F H A - i n s u r e d m o r t g a g e s - - d a t a
f o r which a r e a v a i l a b l e over a longer t i m e - s p a n t h a n f o r 3 0 - y e a r m o r t g a g e s - s o a r e d t o 6 . 5 1 p e r c e n t i n J u n e and w e r e more t h a n 25 b a s i s p o i n t s above
t h e p r e v i o u s h i g h i n l a t e 1959 and e a r l y 1960.




H. 14

-2-

Yields in S e c u r i t y Markets
Change f r o m
p r e c e d i n g week

L e v e l l a t e s t week
High-Grade
Notes and Bonds
Corporate
5.61
5.13

New
Seasoned
U.S. Government
/

4.78
5.23

+6
+9

3.77
Moody's Aaa
Std.&Poor1s high grade 3.95

+4

Long-term
3-5 year
S t a t e and l o c . Govt.

Money Market
5.28

+2

4.85
5.00

F e d e r a l Funds
Treasury b i l l s
3-month
6-month

+18
+18

C o r p o r a t e Bonds S t i l l i n S y n d i c a t e
Offered

Amount
( m i l l i o n s of $)

7/13

65.0

Reoffering
yield
Consumers Power C o . ,
1 s t mtg. b d s . , 5 - 7 / 8 , 1996

Rating

Est. proportion sold

5.75

Aaa

2/3

Blue L i s t of M u n i c i p a l D e a l e r ' s A d v e r t i s e d I n v e n t o r i e s
( I n m i l l i o n s of d o l l a r s )
L a t e s t Date
550

(7/13)




End of P r e v i o u s Week
570

R e c e n t High
636

(2/17)

-3-

H. 14

R e f l e c t i n g t h e i n c r e a s e d s e l e c t i v i t y by l e n d e r s i n r e c e n t
months," t h e FHA-yield s e r i e s have been a t h i g h e r l e v e l s t h a n t h e a v e r a g e
c o n t r a c t r a t e f o r c o n v e n t i o n a l f i r s t m o r t g a g e s f o r t h e p u r c h a s e of new homes.
C o n t r a c t r a t e s f o r c o n v e n t i o n a l l o a n s have a l s o c o n t i n u e d upward, however;
i n June t h e y advanced 10 b a s i s p o i n t s f u r t h e r , t o a l e v e l of 6 . 4 0 p e r c e n t ,
a c c o r d i n g t o t h e F e d e r a l Housing A d m i n i s t r a t i o n . At t h e same t i m e
c o n t r a c t r a t e s on m o r t g a g e s f o r t h e p u r c h a s e of e x i s t i n g homes r e a c h e d
an a v e r a g e of 6 . 5 0 p e r c e n t , compared w i t h a p r e v i o u s p e a k no J i i g h e r t h a n
6 . 3 0 p e r c e n t i n l a t e 1959 and e a r l y 1960 f o r l e a n s on b o t h net) and e x i s t i n g
homes combined.
O f f e r i n g . y i e l d s on new c o r p o r a t e bonds i n c r e a s e d f u r t h e r i n J u n e ,
b u t t h e s p r e a d between such y i e l d s and t h e more r a p i d l y r i s i n g y i e l d s
on 3 0 - y e a r , FHA-insured m o r t g a g e s remained above 100 b a s i s p o i n t s f o r
t h e second successive month. L a s t March, t h e s p r e a d had narrowed t o o n l y
73 b a s i s p o i n t s .
M o r t g a g e - l o a n m a t u r i t i e s have n o t changed a p p r e c i a b l y i n r e c e n t
m o n t h s , b a s e d on d a t a now a v a i l a b l e t h r o u g h May on c o n v e n t i o n a l f i r s t
m o r t g a g e s f o r home p u r c h a s e from t h e FHLBB. M o r e o v e r , a l t h o u g h l o a n - t o
p r i c e r a t i o s have t e n d e d downward, p u r c h a s e p r i c e s have c o n t i n u e d
g e n e r a l l y upward and a v e r a g e l o a n amounts have moved a t o r above e a r l i e r
highs.
I n May, l o a n s f o r new homes, a t $19,200 were up 5 p e r c e n t f r o m
a y e a r e a r l i e r ; and l o a n s f o r t h e p u r c h a s e of e x i s t i n g h o u s e s , a t $ 1 4 , 7 0 0 ,
showed a s i m i l a r y e a r - t o - y e a r i n c r e a s e .
Stock p r i c e s .
Common s t o c k p r i c e s d e c l i n e d l a s t week i n
relatively light trading.
S t a n d a r d and P o o r ' s i n d e x of 500 s t o c k s f e l l
0 . 5 3 t o a week-end l e v e l of 8 7 . 0 8 . T r a d i n g volume a v e r a g e d 5 . 8 m i l l i o n
shares per day.
More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g r e c e n t c a p i t a l m a r k e t
developments i s p r e s e n t e d in the a t t a c h e d e x h i b i t s .

C a p i t a l Markets S e c t i o n ,
D i v i s i o n of R e s e a r c h and S t a t i s t i c s ,
Board of G o v e r n o r s of t h e F e d e r a l R e s e r v e System.




LONG-TERM

BOND

YIELDS,

HIGH-GRADE

STATE AND L C L G V R M N All
OA OEN ET

1961

Date

1959-60 - High
1962-63 - Low
1965 - Low
1966 - High
- Low
J u n e 17
24
July 1
8
15B./

1962

Corporate
Aaa 1 /

4.61
4.19
4.41
5.13
4.73

(3/29/60)
(3/29/63)
(3/12)
(7/15)
(1/7)

5.06
5.07
5.10
5.12
5.13

1963

1964
Exhibit A — Part I I

U.S. Govt.
long-term If

4.42
3.85
4.13
4.78
4.42
4.63
4.58
4.69
4.72
4.78

(1/8/60)
(1^/28/62)
(6/25)
(7/15)
(1/21)

S t a t e and
local
government
Aaa 3 /
3.65
2.88
2.94
3.77
3.39
3.59
3.58
3.64
3.77
3.77

(9/24/59)
(13/8/62)
(2/11)
(7/14)
(1/13)

1965

1966

Spread between
U. S. Govt, and
Corporate
S t a t e and
Aaa
.59 ( W 6 0 )
. 9 2 (4/22/60)
. 2 1 (12/27/63)
.80 ( W « )
.22
.94
.49
1.19
.14
.95
.43
.49
.41
.40
.35

1.04
1.00
1.05
.95
1.01

x / Preliminary,
y Weekly Average of daily f i g u r e s . Average term of bonds included i s 22-24 year*.
Weekly average of daily figures* The series Includes bonds due or callable In 10 year# or more#
TJ Thursday f i g u r e s . Only general obligation bonds are included! average term i s 20 years.
Note.—Highs and lows are f o r individual series and may be on d i f f e r e n t dates f o r d i f f e r e n t
s e r i e s . For spreads, high refers to widest, and low to narrowest.




LOIjG-TERM BOND YIELDS, LOWER GRADE

C R O A E Baa
OPRT

STATE A D L C L G V R M N Baa
N OA OEN ET
3.5

i i i i I i i i I i l I I I I I I l I i I I I I l I i I I I I l I I i l 1.1 l l I 3
1963
1964
1966
1965
E x h i b i t B - - Part II

1961

Corporate
Baa 1/

S t a t e and
local govt.
Baa 3 /

5 . 3 6 (S/1S/60)
4.93
4.80
5.04
5.67 (7/15)
5.05 (1/14)

4 . 4 6 (1/7/60)
3.57
3.51
3.79
4.30 (7/14)
3.78 (1/20)

Da te

(per c e n t )
1959-60 - High
Year end - 1962
1964
1965
1966 - High
Low
1966- J u n e

17
24
July 1
8
15E/

Motel

5.59
5.61
5.60
5.63
5.67

Tor footnote* see Exhibit a.




4.15
4.13
4.16
4.30
4.30

Spread between
Aaa and Baa
S t a t e and
Corpora t e
local eovt.
.84
.70
.37
.31
.54
.31

1.08

.53
.54
.50
.51
.54

.56
.55
.52
.53
.53

.63
.52
.39
.62 '
.38

tXHIIIt C. tail I
SHORT- AND INTERMEDIATE-TERM INTEREST RATES
GOVERNMENT

6

5

3-5 Y A ISSUES
ER
6- M N H BILLS
OT

F. R. DISCOUNT R T
AE
3
3-MONTH BILLS

1961

1962

1963

1964

1965

1966

E x h i b i t C — Part I I

Date

Discount
3-month
ra te
b i l l s 2/
1/

Yields
6-month
I
b i l l s 2/
1
(per c e n t )

4 . 5 9 (VV60)
2.66
2.89
3.52
3.83
4.47
4.85 (7/15)
4.39 (6/24)

5 . 0 7 (3/8/60)
2.90
2.93
3.64
3.93
4.66
5.00 (7/15)
4.53 (6/24)

1966- J u n e 17
24
July 1
8
152/

4.50
4.50
4.50
4.50
4.50

4.52
4.39
4.47
4.67
4.85

4.64
4.53
4.68
4.82
5.00

§

4.00
3.00
3.00
3.50
4.00
4.50
4.50
4.50

Spread between y i e l d s on 3 vW<»f o n
>
6-mo. b i l l s 13-5 v r . laeuee
.
.79
.24
.04
.13
.10
.19
.,24
,09'

1.81
1.15
.52
.55
.24
.43
. 64
.21

12
14
21
15
15

.45
.56
.64
.47
.38

1

1959-60 - High
Year end - 1961
1962
1963
1964
1965
1966 - High
Low

3-S7itaar
2/

3.81
3.41
4.07
4; 07
4.90 .
5.23 <7/15)
4.80 (4/8)
4.97
4.95
5.11
5.14
5.23

Weekly rate shown le that In e f f e c t at end of period at the Federal Reserve Bank of Hew York,
Market yield; weekly averages computed from dally closing bid prices. Series of 3-4 year issues
consists of selected notes and bonds.
Note,—tilths and lows are f o r individual series and may be on different dates for different s e r i e s .
For spreads,
 high refers t o widest, and low to narrowest.



tXHIll! 0. Fori I
SHORT- AND INTERMEDIATE-TERM INTEREST RATES,
BANKS AND OTHER PRIVATE BORROWERS
6

5
PRIME RATE
FINANCE COMPANY PAPER

4

F.R. DISCOUNT RATE
3

FEDERAL FUNDS

2

1

1961

Date

1959-60 - High
Year end - 1961
1962
1963
1964
1965
1966 - High
Low
1966- J u n e 17
24
July
1
8
1 5£ /

1962

Prime r a t e

.

1963
1964
Exhibit D — Part II

1/

1965

Finance
company
Federal funds 2 /
oaoer
2/
(per cent)

5.00
4.50
4.50
4.50
4.50
5.00
5.75
5.00

5 . 1 3 (3/23/60)
3.00
3.19
3.88
4.06
4.75
5.50 (7/15)
4.75 (1/7)

5.50
5.50
5.75
5.75
5.75

5.38
5.38
5.45
5.50
5.50

4 . 0 0 (s/13/60)
2.88
3.00
3.50
4.00
4.63
5.43 (7/1)
3.55 (1/21)
5.13
5.30
5.43
r/5.26
5.28

1966

Spread between
3-mo. b i l l s and
finance co. oaoer
1.02
.34
.30
.36
.23
.28
.99
.20
.86
.99
.98
.83
.65

on short—term loans t o business borrowers of the b l u e s t c r e d i t standing,
d ll
jy
^ y rates published by finance companies for d i r e c t l y placed paper for varying
7
maturities i n the 90-179 day range,
3 / Weekly average of daily e f f e c t i v e rate, which i s the r a t e f o r the heaviest volume of purchase and
sale transactions as reported t o the Federal Reserve Bank of New York,
Digitized Note*—flighs and lows are f o r individual series and may be on d i f f e r e n t dates f o r d i f f e r e n t s e r i e s .
for FRASER
Tor spreads, high r e f e r s to widest, and low t o narrowest.



1

{
STOCK

MARKET

PRICES

STOCK MARKET CREDIT
C H A N G E IN S E R I E S

YIELDS

1963
1964
Exhibit E -- Part II

Common
Stock p r i c e
index l !

1961-62 - High
Low
Nov. 1963
J u l y 1965
1966 - High
Low
1966 Hay
June
July 1
8
15E/

y i e l d s 2/
(per cent)

Trading
volume 2 /
(millions
of s h a r e s )

72.04(13/8/61)
52.68(6/22/62)
72.62
84.91
93.77 (2/11)
85.43 (5/20)

2.,82
3,.96
3 . 14
3 . ,09
3 .02
3 .37

10,. 1
2,.4
5..3
4.,1
10.,7
5.,1

86.78
86.06
85.61
87.61
87.08

3 .30
3..36
3..37
3.,29
3. ,31

8. 1
6. 4
6. 0
6. 2
5. 8

cet customer c r e d i t
Customers 1
debit balloans to
snces 4/
"p^hey" ;/
( I n m i l l i o n s of d o l l a r s )
5,60%i4/6l) 4 , 2 5 9 ( l t / 6 i )
4,424(1/61) 3,253(3/61)
7,298
5,586
6,833
4,863
7,991
5,835
7,726
5,551
7,905

5,768

1,418(9/9/62)
1,161(3/8/61)
1,712
1.970
2,241 (7/6)
2,137 (5/27)
2,137
*2,231
*2,231
*2,241

n.a.

n«a.—Wot available, -aj Preliminary.
y Standard and Poor's oompoaite index of 500 oomnon atooks. weekly oloalng prloee, 1941-43-10.
Monthly data are averages of daily figure* rather than or Friday•• only. High# and lows are for
Friday's data only.
y Standard and Poor's composite a took yield based on Wednesday data converted t o weekly olosing
prices by Federal Reserve. Yields a hewn are for dates on whioh price index reached i t s high
3 / Averages of d a i l y trading relume on the New York Stock Exchange. Yean^nd figures are averages of

dally
for the
y End of figuresfigures f oyear.by D. firms of the New York 3took Exchange whidi
month
r amber
excludes balances secured
S. Government obligations.

carry margin accounts;

5 / Wednesday figures f o r weekly reporting member banks. Excludes loans for purchasing or oarryli#
U. 3. Goverxment a e o u r i t i e a . Weekly reporting banka account for about 70 per cent of leans t o
others. For f u r t h e r d e t a i l eee Bulletin.
* New S e r i e s




MORTGAGE AND

BOND

YIELDS

HOME M O R T G A G E S

iiimiiiliiiiiini
! 1958

I960

1961

Exhibit F

1962

Part II

Aaa C o r p o r a t e
Conven- S p r e a d b e tween y i e l d a
tional
on conv. &
mort2 5 - y e a r 3 0 - y e a r g a g e s j / FHA m o r t - , . H « 4 / S e a s o n e d ^
a /
RaKea
m
mortR<1K68 2 /

1956
1957
1958
1959-60
1961-65
1966

- Low
- High
-Low
- High
- Low
High
Low

1966 A p r .
May

--

4.68
5.63
5.35
6.24
5.43
6.37
5.72

5.44
6.32
5.70

5.20
6.00
5.55
6.30
5.80
6.30
6.00

6.37
6.51

6.32
6.45

6.25
6.30
6.40

--

.47
.47
.15
.23
.25
.30
.02
-.02
-.05

3.08
4.94
3.65
5.25
4.12
5.27
4.84
5.05
5.21
5.38

3.08
4.12
3.57
4.61
4.19
5.07
4.74
4.96
4.98
5.07

Spread between
y i e l d a on new c o r p o r a t e bonds and
FHA o t g a . Seasoned
bonds
4/
.76
1.58
.88
1.69
.77
1.11
.73
1.11
1.07

--

1.03
.05
.73
-.16
.35
.09
.09
.23

1 / Xeither mortgage *or bond yields take into aooeunt eemielng eeets.ahleh are mooh higher f e r mortgage#
than bonds. Generally, bonds pay lute rest • end-annually) mortgagee, monthly. Mortgage yields, i f
oasputed as equivelmt te a mend.-annual interest inveetment, w>nld be s l i g h t l y higher than given in
t / Based*on*reirfield-^ffioe opinions about are rage hid prices i n the private eeoondary market
horns mortgagee for Isnediate delivery. Separate data available f o r 23-year an*—beginning JUy 1961r30-year mortgagee with
downpaymants, weighted by probable volume ef transactions. Yields eosspurted by ISA., assuring prepayment period of 12 year* for 29—year mortgages and 13 years for SO—
year mortgages. Over the period f<r whioh they oan be compared, the movement of the two mortgage
^Leld series has beam similar. Dashed linss indicate periods of adjmstmer* to changes i n contractual
3 / Baaed on TEX f i e l d o f f i c e opinion on typical interest ratee (rounded) on convent!onal f i r s t mortgages
prevailing in the market areas of insuring o f f i c e c i t i e s . Beginning with April 1060, rate relates
only t e new-hem mortgages| prior to that date, rate related to both new as well as existing-fcoae
mortgages. Dashed line indicates this change in the series.
4/ iha, nmrtgage yield data are f o r 25-year mortgagee through Juae 1001) 50-year mortgages thereafter.
5/ See note f o r Exhibit G.
%J Moody's
FRASERInvestor Service, Monthly averagee of daily data. See tahibit km

Digitized for


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

^

NW
E

EXISTING

LOAN

PRICE/RATIO

NW
E
EXISTING

1964

1962

1966

I1
1
mmnr
Fees &
t r a c t Charges Maturity
(Years)
Rate (Per
cent)
(Per
cent)
21

!:«
5.77

.51

I
lift I
5.80
5.78

158

1:1 ill

5.99
6.02




24.9
24.9
24.6
25.0
24.5
24.9
24.8
25.0
24.8

Loan/
Price
ratio
(Per
cent)

73.7
74.4
73.9
75.0
73.8

E x i s t i n g Homes
Loan/
Fees &
t r a c t Charges Maturity Price
(Years) r a t i o
(Thoua. Rate (Per
(Per
cent)
of
(Per
cent)
dollars)
V

18.1
18.2
17.5
18.3

!S:i
18.3

74.9
74.0

18.5
18.4

24.6

24.7

73.9
73.4

»:*
24.6

18:1

I

1:1
6.09
6.16

:I

.54
.56

14.0

20.4
20.3
20.6
20.6
20.4
20.1

8:!
20.6

1:8

18.0

18.2
19.2

5.89
5.88
5.86
5.86
5.86
5.89
5.87

K

72.4

20.6

72.6

20.6
20.6

72.2

18:3

-J

Loan
amt.
(Thoua..
of
dollars)

m

71.8

11:1

14.5
14.7

I

YIELDS O N

NEW

AND

SEASONED

CORPORATE

BONDS

SEASONED All

1964

Exhibit 0 - Part II
Yield* on New Corporate Bond Issues Adjusted to an Aae baala

Monthly averages;
1965 - Oc.t.
Nov.
Dec.
1966 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.

ftabar Aa't of leiuee Average

Number is't of leaue# Average
included (mil. yield
of
( m m t )
I f f f W l of Joll«r»)
108.0
267.0
212.0
300.0
304.5
263.0
702.3
341.0
596.0

4.69
4.72
4.85
4.84
4.98
5.27
5.05
5.21
5.38

yield
Included (mil.
of
fper centl
i s i u e t 9 t ftHWt)
50.0
46.0

80.0

July

370.0
50.0

5.36
5.34
5.43
5.31
5.64*

15
90.0
5.61
22
29
Aug.
5
12
19
Weekly averages;
26
5.61 (7/15)
High
Sept. 2
4.82 (1/7)
Low
SL
Motet i T t n j i s of o f f e r ! * yields on a l l Mr i s i u i of pu H o l y offered ooxporate bonds rated Am. i a UaeJ T
A by Moody's Bmstore 6ervlee(exoept serial aad convertible issues . o f f e r i n g s at a a t u n l gas F*P e e
sad foreign oogamies, aad boeds guaranteed by the Federal OoiWtmmet) weighted by d i e of offering.
Before ere raging, new offerings ere edjasted to a composite i»a basis bys deducting free the aetual
reoffertag yield tbs exeees of the we&ly average r* 1 f o r seasoned 1beads of the appropriate indastry* —~
quallty group over the eosmoelte average for seasoaed iaa-rated toads (Moody's). Averages considered
unrepresentative because at special oharaoteristies of
offerings included are denoted by aa asterisk*




Exhibit H

H.14

Long-term Corporate and S t a t e and Local Government
S e c u r i t y O f f e r i n g s and Placements
( I n m i l l i o n s of d o l l a r s )
New C a p i t a l
1966
January
February
March
April
May
June
July
August
September

quarter
quarter
quarter
quarter

1st half
Three q u a r t e r s
Year

S t a t e and l o c a l 2 /
1965 £ /
1966
1964

1964

1,302
1,237
2,446

795
746
1,197

938
700
778

£ / 1,554
. E./ 1, 005
e j 2 , 445

1,152
1,691
1,946

e/1,400

4,985
e/5,001

e/9,986

£

2/1,175
/
822
e / 850

804
872
904

947
776
810

2,237
1,095
1,405

e/1,140
e / 900
e/1,075

826
924
972

1,242
667
903

1,290
850
1,392

812
680
1,130

e/

986
648
966

906
780
892

924
1,325
1,496

October
November
December
1st
2nd
3rd
4th

Corporate
1965

953
669
1,642

794
1,021
754

801
529
948

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

2,416
4,738
2,621
3,264

2,580
2,722
2,600
2,569

2,533
2,811
2,578
2,278

7,527
11,060
14,805

7,153
9,775
13,038

5,302
7,902
10,471

5,345
7,923
10,201

700

e/2,847
e/3,115

e/5,962

Excluding f i n a n c e companies 3 /
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

Year
e/
2./
1/
2/
3/

2,547
4,348
3,283
3,188

2,043
4,258
2,477
2,997

1 3 , 3 66

11,775

...
Estimated by Federal Reserve.
Preliminary.
S e c u r i t i e s and Exchange Commission e s t i m a t e s of n e t p r o c e e d s .
Investment Bankers A s s o c i a t i o n of America e s t i m a t e s o f p r i n c i p a l amounts.
T o t a l new c a p i t a l i s s u e s e x c l u d i n g o f f e r i n g s o f s a l e s and consumer f i n a n c e companies.




New C o r p o r a t e S e c u r i t y I s s u e s , Type of I s s u e
and I s s u e r
( I n m i l l i o n s of d o l l a r s )

1964 - I
II
III
IV

Gross p r o c e e d s f o r new c a p i t a l
and r e f u n d i n g 1/
Bonds
Common Memo:
Publicly Privately
and F o r e i g n
Mfg.
Offered
Placed
pfd.
issues
s t o c k included
429
29
300
1,269
978
2,548
723
105
1,890
1,755
4 , 9 6 5 1,312
559
94
494
1,590
792
2,876
1,061
408
277
2,629
531
3,568

1965 - I
II
III
IV

3,007
5,043
3,912
4,030

905
1,864
1,575
1,226

1,673
2,259
1,955
2,264

429
920
383
540

243
215
263
300

1966 - I
II
III
1965 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

5,094
5,143

1,774
1,909

2,586
2,231

734
1,002

345
n.a.

1,233
1,773
2,038
1,443
930
1,538
986
1,398
1,646

422
694
748
542
369
664
287
613
326

648
630
980
780
468
706
574
529
1,161

162
449
309
122
93
168
124
257
159

1,339
1,273
2,482
1,592
1,026
525

460
560
753
628
481
800

692
583
1,311
754
477
1,000

187
130
417
209
68
725

Quarter
Month

1966 - J a n . 3 /
Feb.
Mar.
Apr . £ /
May e /
Junee/
July
Aug.
Sept.
£/
e/
1/
If

Net p r o c e e d s
f o r new c a p i t a l
P u b l i c CommuniUtility cations

1/ 2/
Other
Issuers

438
856
642
509

273
1,666
59
135

1,275
1,492
1,361
1,559

1,072
1,679
1,119
1,145

541
609
786
610

91
255
323
177

1,034
2,246
1,304
1,815

1,860
2,053

969
837

602
373

1,553
1,739

33
49
134
27
87
150
99
101
99

540
698
441
399
307
414
273
402
470

176
248
184
202
297
287
158
209
243

15
143
98
102
25
196
92
43
43

422
602
1,223
587
222
495
401
671
741

93
118
133
55
33

353
530
977
653
400

388
241
340
361
256
220

141
160
301
76
37
260

420
306
827
465
309
965

1,000

Preliminary.
E s t i m a t e d by F e d e r a l R e s e r v e .
Gross p r o c e e d s exceed n e t p r o c e e d s by t h e c o s t of f l o t a t i o n .
For t o t a l s e e E x h i b i t H; o t h e r i s s u e r s a r e e x t r a c t i v e , r a i l r o a d and o t h e r t r a n s p o r t a t i o n ,
r e a l e s t a t e and f i n a n c e , and commercial and o t h e r .
3 j Does n o t i n c l u d e U.S. S t e e l $600 m i l l i o n c o n v e r s i o n of p r e f e r r e d s t o c k t o d e b e n t u r e s .
S o u r c e : S e c u r i t i e s and Exchange Commission.




Exhibit J
Other S e c u r i t y O f f e r i n g s
( I n m i l l i o n s of d o l l a r s )

1966
January
February
March
April
May
June
July
August
September
October
November
December
Jan.-June

12
40
40
66
69
n.a.

HrnfiR T.nng-rerm 1 (
F o r e i g n Government- 21
1965
1964
1966

Year

420

4
82
69
30
75
26
20
13
7
180
72
58
286

661

n.a.

218

636

38
73
- -

91
33
74
5
52
75
2

103
39
-319
580
&/46Z
E/-331

Jan. -June

£/5G£

238
91
-458
647
204
-82
119
408
152
59
274
-366

103
236
-407
442
81
-80
-9
127
176
7
-15
-208

640

375

ra1 Agency 1 /
1964
1965
- -

503
410
392
699
n.a.

129
185
325

- - -

- -

275
260
160

775
- -

239
150
375
375
179

308
-24
450
85
n.a.
n.a.

510

1,414

275

2,732

n. a.

New s h o r t - t e r m 4 /
S t a t e and l o c a l Goverment 5 /
January
February
March
April
May
June
July
August
September
October
November
December

FPHP

1,205

--

F e d e r a l Agency 3 /
-137
-174
117
-11
509
237
132
206
105
-309
202
-76

-308
-336
23
97
183
239
-333
167
1
525
113
-3

541

-104

1,286
368
Year
453
801
2./ P r e l i m i n a r y , e / E s t i m a t e d by F e d e r a l R e s e r v e , n . a . - - N o t a v a i l a b l e .
1J These d a t a
d i f f e r from t h o s e i n E x h i b i t H i n t h a t r e f u n d i n g i s s u e s , a s w e l l a s new c a p i t a l i s s u e s ,
a r e i n c l u d e d . L o n g - t e r m s e c u r i t i e s a r e d e f i n e d a s t h o s e m a t u r i n g i n more t h a n one y e a r .
2 / I n c l u d e s s e c u r i t i e s o f f e r e d i n t h e U.S. by f o r e i g n governments and t h e i r p o l i t i c a l
s u b d i v i s i o n s and i n t e r n a t i o n a l o r g a n i z a t i o n s .
S o u r c e : S e c u r i t i e s and Exchange Commission.
3 / I s s u e s n o t g u a r a n t e e d by U.S. Government. S o u r c e : L o n g - t e r m , S e c u r i t i e s and Exchange
Commission; s h o r t - t e r m , T r e a s u r y D e p t . & Fed. R e s e r v e .
4 / These d a t a d i f f e r from t h o s e
i n E x h i b i t H and above i n t h a t t h e y r e p r e s e n t new o f f e r i n g s l e s s r e t i r e m e n t s , w h e t h e r
from t h e p r o c e e d s o r r e f u n d i n g i s s u e s o r from o t h e r f u n d s . Data i n c l u d e o n l y i s s u e s w i t h
o r i g i n a l m a t u r i t y of one y e a r o r l e s s .
5 / P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s .
w a r r a n t s , o r c e r t i f i c a t e s and P u b l i c Housing A u t h . n o t e s . I n some i n s t a n c e s PHA n o t e s
i n c l u d e d may have a somewhat l o n g e r m a t u r i t y t h a n 1 y e a r . S o u r c e ; Bond Buyer & F e d e r a l
Reserve.




.
J
v
;>
;
,
*
V
4
:
j
f
J
•
'

V)
H. 14
Exhibit K
Large Long-term P u b l i c S e c u r i t y I s s u e s f o r New C a p i t a l
(Other than U. S. Treasury) JL/
Proceeds o f Large I s s u e s O f f e r e d
(In m i l l i o n s of d o l l a r s )
Coroon i t e
Bonds
( o t h e r than
Convertible
bonds
convertibles)

Total

1965 - June
July
Aug
Sept.
Oct
NovDec 1966 - Jan,
Feb
Mar Apr
May
June

320
22
62

343
455
211
530
190
559
212
370
391
544
481
351
636

801
47 7
299
530
246
736
262
485
545
890
643
401
1,317

State
and
local
governments

Stocks

26
16
-144

40
33
50

115
70
271
106
-661

84
75
55
50
20

430
20
50
170
43
95

377
655
312
563
409
538
413
787
424
339
720
466
582

138

Other

-55
60
-275

Large I n d i v i d u a l I s s u e s O f f e r e d J u l y 1 t h r o u g h 15
Issuer

Corporate
• O c c i d e n t a l P e t r o l e u m Corp
Consumers Power Co,
C & P Telephone Co.
Douglas A i r c r a f t Co,
Harvey Aluminum Co,

Type £ /

Amount
(millions
of
dollars)

Maturity

Coupon
r a t e or
net i n t e r eat cost

Conv. sub • deb
1 s t mtg. bds
Deb.
Conv, sub - debConv. sub deb-

62 0
65.0
25 0
75.0
25,0

1991
1996
2006
1991
1991

5-1/4
5-7/8
5-5/8
4-3/4
5-1/2

Offering
vield

Rating

5.75
5.55
4,75
5.50

Aaa
Aaa
Ba
B

S t a t e and Local Government
Warren C o n s o l . Sch, D i s t . ,
Michigan
U n i v e r s i t y of Texas
Alabama Pub. Sch. &
C o l l e g e Auth, ,
Houston, Texas

G.O,
Rev.-Rent

11 0
11 0

1967-91
1967-86

4.29
3.81

3.80-4.25
3.60-3.75

A
Aaa

Rev -Rent
GO.

25 0
21.0

1967-86
1967-86

4 28
4. 13

3.75-4.20
3.75-4.05

Aa

Other
Govt. of Mexico

Bonds

15.0

1981

6-7/8




7.26
"

i
FOOTNOTES:

K-2

*--R£ghts o f f e r i n g .
n.a.--not available.
1/ I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and o v e r ; S t a t e and
l o c a l government s e c u r i t y o f f e r i n g s of $10 m i l l i o n and o v e r .
2/ I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bahk f o r R e c o n s t r u c t i o n and Development
i s s u e s and non-guaranteed i s s u e s by F e d e r a l A g e n c i e s .
3J In t h e c a s e of S t a t e and l o c a l Government S e c u r i t i e s , G.O. d e n o t e s g e n e r a l o b l i g a t i o n s
R e v . - U t . , revenue o b l i g a t i o n s secured o n l y by income from p u b l i c u t i l i t i e s : R e v . - Q . - U t
revenue bonds secured o n l y by revenue from q u a s i - u t i l i t i e s ; R e v . - S . T . , r e v e n u e bonds
secured by revenue from s p e c i f i c t a x e s o n l y ; R e v . - R e n t . , revenue bonds secured s d l e l y
by l e a s e payments.




H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treaeury) 1/
Expected Proceed# from Forthcoming Large Issue#
(In millions of dollars)
During month following
date ahown
State and
Corporate
Other 2/
local govt.
1965 - J u n e 30
J u l y 30
Aug. 31
Sept,30
O c t . 29
Nov. 30
Dec t 31
1966 - J a n 31
Feb c 28
Mar. 31
Apr, 30
May 31
J u n e 30

363
193
312
206
412
297
553
530
828
489
248
1,261
317

20

397
248
404
269
343
398
501
340
366
253
399
584
337

15
25
20
20
20

30
15

Corporate
410
340
636
303
489
344
676
931
1,176
606
1,034
1,261
619

Subsequent to
date shown
State and
local govt.

Other U
20

524
353
450
331
578
458
582
461
504
334
546
584
353

15
25
20
20
20
90
55
55
85
50

F o r t h c o m i n g L a r g e O f f e r i n g s a s of J u l y 15

Type

Issuer

fiMMIifc*

N o r t h e r n S t a t e s Power Company
F l o r i d a Power C o r p .
J e r s e y C e n t r a l Pwr. & L t . Co,
Amer. Tel & T e l . Co.
^ C o n t i n e n t a l T e l , Co.
Northeast Airlines
S t a t e and l o c a l Government
S t a t e of T e x a s
S t a t e of Oklahoma
S t a t e of M i s s i s s i p p i
Onondaga C o u n t y , New York
^ C o l l e g e s of t h e S t a t e of T e x a s ,
Austin
Kentucky T u r n p i k e
N a s h v i l l e & D a v i d s o n Co.
Metro. Govt., Tennessee
* P a . S t a t e Gen, A u t h .




Amount
(millions
of
delists)

Approximate dste of
offering

1 s t mtg. b d s .
Deb
1 s t mtg. b d s
Deb.
Conv s u b . d e b .
Conv s u b . d e b .

45.0
20.0
30.0
250.0
25.0
22.0

J u l y 28
J u l y 29
August 3
Augusi t 4
August
Indefinite

G,0
G.O.
G. 0 .
G.O.

10.0
12.0
17.4
15.0

July
July
July
July

G.O
Rev,-Q.-Ut.
G, 0.
G.O-

33.4
115.0
15.9
50.0

18
19
20
20

J u l y 26
July
Aug.
Aug.

2
9

F o r t h c o m i n g Large O f f e r i n g s as of J u l y 15 ( C o n t ' d )

Issuer

Type

Amount
( m i l l i o n s of d o l l a r s )

Approximate d a t e of
Offering

Other
R e p u b l i c of I r e l a n d
Nippon T e l . & T e l . Pub. Corp.

Bonds
Bonds

20.0
15.0

Indefinite
Indefinite

j
i

*—Included in t a b l e f o r f i r s t time.
V I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of $15 m i l l i o n and o v e r ; S t a t e and l o c a l government
i s s u e s of $10 m i l l i o n and o v e r .
2/ I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and Development
i s s u e s and n o n - g u a r a n t e e d i s s u e s of F e d e r a l A g e n c i e s .
Note;

D e l e t i o n s f o r r e a s o n s o t h e r t h a n s a l e of i s s u e ;




None.

f
!

I

M
Exhibit M

H.14

F o r e i g n Government and C o r p o r a t e S e c u r i t y O f f e r i n g s
and P l a c e m e n t s i n t h e U n i t e d S t a t e s
Part I:

S a l e Date

Amount
(millions
of
dollars)

Public Offerings

I s s u e r and D e s c r i p t i o n of I s s u e
Ac

Sold May 1 t h r o u g h J u l y • i

6/2

30.0

C i t y of M o n t r e a l , C a n a d a - - 5-5/8% d e b e n t u r e s ,
m a t u r i n g 1991, r e o f f e r e d t o y i e l d , 5 . 8 8 % .

6/6

20.0

I n d u s t r i a l Development Bank of I s r a e l - - C u m . p r e f . s t k .

6/28

175.0

6/29

50.0

B r i t i s h Columbia Hydro.and Power A u t h . - - 5 - 5 / 8 % S . F .
b o n d s , m a t u r i n g 1991, r e o f f e r e d t o y i e l d 5.78%,

7/7

15.0

Govt, of M e x i c o - - 6 - 7 / 8 % b o n d s , m a t u r i n g 1981,
r e o f f e r e d t o y i e l d 7 = 26%.

I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and D e v e l o p m e n t - 5-3/8% b o n d s , m a t u r i n g 1991, r e o f f e r e d t o y i e l d 5.39%,

B.

Prospective Offerings

Indefinite

20.0

R e p u b l i c of I r e l a n d - - b o n d s

Indefinite

15.0

Nippon T e l e g r a p h and T e l e p h o n e P u b l i c C o r p . - - b o n d s

^--Included in t a b l e f o r f i r s t time,
* * - - I s s u e s o l d t o i n v e s t o r s o u t s i d e of U.S.
***--Issues subject to i n t e r e s t equalization tax.




M-2
Part II:

Date R e p o r t e d

P r i v a t e P l a c e m e n t s - R e p o r t e d May 1 t h r o u g h J u l y ] )
Amount
(millions
of
dollars)

I s s u e r and D e s c r i p t i o n of I s s u e

5/2

30.0

N o r t h w e s t e r n P u l p and Pwr. L t d . - - 5 - 5 / 8 % s e n i o r n o t e s ,
m a t u r i n g 1985--no i n f o r m a t i o n a v a i l a b l e on takedown.

5/2

46. 5

P r i n c e A l b e r t Pulp Co. L t d . - - 5 . 2 0 % n o t e s , m a t u r i n g
1989--no i n f o r m a t i o n a v a i l a b l e on takedown.

5/4

15.0

New Brunswick E l e c . Power Commission-- % S . F . d e b ,
m a t u r i n g 1 9 9 1 - - n o i n f o r m a t i o n a v a i l a b l e on takedown.

5/10

20.0

B r i t i s h Columbia School D i s t . , C a p i t a l F i n a n c i n g A u t h . - 5-1/2% d e b e n t u r e s m a t u r i n g 1 9 8 6 - - n o i n f o r m a t i o n a v a i l a b l e on takedown.

5/17

11.5

I n t e r n a t i o n a l Pub. C o r p . - - 5 . 9 0 % n o t e s , m a t u r i n g 1977 and
1 9 8 1 - - n o i n f o r m a t i o n a v a i l a b l e on takedown.

5/31

15.0

Budd A u t o . Co. of Canada, L t d . - - 6-3/4% g t d . d e b e n t u r e s ,
m a t u r i n g 1 9 8 6 - - n o i n f o r m a t i o n a v a i l a b l e on takedown.

5/31

15.0

New Brunswick Power Commission - - 5-1/2% d e b e n t u r e s ,
m a t u r i n g 1991, no i n f o r m a t i o n a v a i l a b l e on takedown'.

6/1

14.0

Govt, of t h e Bahama I s l a n d s - - b o n d s , m a t u r i n g 1981, no
i n f o r m a t i o n a v a i l a b l e on takedown.

7/6

31.0

S t e e p Rock I r o n Mines s Ltd - - 6% 1 s t mtg. b d s . , m a t u r i n g
1987--no i n f o r m a t i o n a v a i l a b l e on takedown.

^
s

Note: F o r r e t r o s p e c t i v e d a t a on a g g r e g a t e f o r e i g n c o r p o r a t e and government s e c u r i t y
o f f e r i n g s i n t h e U n i t e d S t a t e s s e e E x h i b i t s I and J . T h e r e i s no s i m p l e r e l a t i o n s h i p
b e t w e e n t h e d a t a shown i n t h e E x h i b i t and t h a t shown i n E x h i b i t s I and J b e c a u s e t h e
l a t t e r i n c l u d e s p r i v a t e l y p l a c e d s e c u r i t i e s i n t h e p e r i o d i n which f u n d s a r e a c t u a l l y
takendown ' h u t o n l y i n t h e amount of takedown w h i l e t h e p l a c e m e n t s shown i n t h i s e x h i b i t
a r e i n c l u d e d when r e p o r t e d , f r e q u e n t l y w i t h l i t t l e or no i n f o r m a t i o n c o n c e r n i n g t i m i n g
of t a k e d o w n s . F u l l o r p a r t i a l takedowns may t a k e p l a c e b o t h p r i o r and s u b s e q u e n t t o t h e
date a placement is r e p o r t e d .





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102