Full text of H.16 Capital Market Developments : July 18, 1966
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o f
QDU. &
Not ^ P u b l i c a t i o n
AFTER SIX PONTES
I CAPITAL
CAPITA: MARKETS DEVELOPMENTS
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
F e d e r a l Funds
Treasury b i l l s
3-month
6-month
5.28
+2
4.85
5.00
+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
Consumers Power C o . ,
1 s t mtg. b d s . , 5 - 7 / 8 , 1996
Reoffering
yield
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 LOCAL GOVERNMENT All
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
CORPORATE Baa
STATE AND LOCAL GOVERNMENT Baa
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 YEAR ISSUES
6- MONTH BILLS
F. R. DISCOUNT RATE
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
for FRASER
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 .
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 figures for the year.
y End
of month figures f o r amber firms of the New York 3took Exchange whidi
excludes balances secured by D. 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 Investor Service, Monthly averagee of daily data. See tahibit km
FRASER
Digitized for
C O N V E N T I O N A L M O R T G A G E TERMS
^
NEW
EXISTING
LOAN
PRICE/RATIO
NEW
EXISTING
1964
1962
1966
I
11
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
18.0
24.7
73.9
73.4
18.2
19.2
»:*
24.6
18:1
5.89
5.88
5.86
5.86
5.86
5.89
5.87
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
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 ae Uae eJ 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
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 1 bys deducting free the aetual
reoffertag yield tbs exeees of the we&ly average r* 1 f o r seasoned
* beads
— ~ of the appropriate indastryquallty 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
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
1st half
Three q u a r t e r s
Year
4,985
e/5,001
e/9,986
S t a t e and l o c a l 2 /
1965 £ /
1966
1964
1964
1,302
1,237
2,446
October
November
December
1st
2nd
3rd
4th
Corporate
1965
£
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
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.
n.a.
Year
HrnfiR T.nng-rerm 1 (
F o r e i g n Government- 21
1965
1964
1966
218
420
4
82
69
30
75
26
20
13
7
180
72
58
286
661
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
- -
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
308
-24
450
85
n.a.
n.a.
239
150
375
375
179
510
1,414
275
2,732
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 .
@FedFRASER