Full text of H.16 Capital Market Developments : July 22, 1968
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Not for Publication
H. 14
July 22, 1968.
DECONTROLLED AFTER SIX MONTHS
CAPITAL MARKETS^ DEVELOPMENTS
IN THE UNITED STATES
"Corporate and municipal bond markets. Flotations of
"corporate securities this week is expected to be moderate, with
more than one-half of the weekly volume accounted for by Pacific
Telephone and Telegraph Company's $165 million debenture offering.
New municipal offerings will be well below the average for such
issues over the past year. Not included in the table below are the
$800 million PC offering by FNMA and the Province of Nova Scotia's
$25 million debenture issue, both of which are scheduled to be
offered this week.
1/
Long-term Public Security Offerings—
(In millions of dollars)
Corporate
New Capital 1 Refundins
State and local Government
New Capital
1
Refunding
Sold:
v
1
253
52 week avg.
322
July 12
375
July 19
365
417
280
152
.
—
1
415
Scheduled:
July 26
1/
--
Federal Reserve esuiuiauco ate
r
^
is sues sold and scheduled for offering; corporate rights
offerings are included as of date subscription rights expire.
Yields on new corporate bonds declined further last week,
although the new issue yield series is biased upward by a shift in the
characteristics of component issues. Last week's new offerings met
with an enthusiastic response from investors, as all but one utility
issue sold out by the end of trading on Friday.
Municipal yields also declined last week. The response
accorded new issues was.mixed, but by week-end nearly three-fourth^
of the offerings were spoken for. Dealers advertised inventories
,
remain near the $600 million level.
H. 14
Yields on Security Markets
Change from
preceding week
High-Grade
Notes and Bonds
Corporate
New .
Seasoned
6.60
+4
-1
5.14
5.51
+4
6.26
U.S.. Government
Long-term
3-5 year
State and local Gov't.
Moody's Aaa
Std. & Poor's high grade
4.10
4.41
Money Market
Federal funds
Treasury bills
3-month
6-month
6.23
+20
5.38
5.46
+1
+3
Corporate Bonds Still in Syndicate
. Date
Offered
7/18
Amount
(millions of $)
30.0
Issuer
Reoffering
Yield
Pacific Lt. & Supply Co.,
7's - 1998
Rating
A
6.82
Blue List of Municipal Dealers' Advertised Inventories
Latest Week
612(7/18/68)
End of Previous Week
605
1968 High
698(7/17/68)
Estimated pro-^
portion sold g
65%
{
H. 14
-3-
Housing starts and permits. Seasonally adjusted private
housing starts, which on the basis of revised data had already dropped
15 per cent in May from the advanced April rate, edged off 2 per cent
further in June to an annual rate of 1,313 thousand. Unlike May, the
decline in June, was concentrated entirely in single family units,
which continued downward by 7 per cent. Multifamily starts, on the
other hand, turned moderately upward.
Altogether, the rate of multifamily starts in the second
quarter as a whole—including an unusually advanced April r a t e —
actually was 8 per cent above the first quarter average and the highest
since the first quarter of 1964. However, this was associated with
a decline from the first to the second quarter of the year of 13 per cent
for single family starts and a corresponding drop of 6 per cent the
combined total.
Regionally, the movement of starts in June was also mixed,
with the rate in the West up somewhat and only the rate in the Northeast
down appreciably further.
Seasonally adjusted building permits continued downward in
June to a seasonally adjusted annual rate of 1,259 thousand. As in
the case of starts, single family units also accounted for the over-all
decline. Permits for two-or more-family units held about unchanged;
and, regionally, only the North Central states showed a drop.
Stock market. Common stock prices declined last week in
active trading. Standard and Poor's composite index of 500 stocks
closed the week at 100.46, a week-to-week decline of 1.88 points.
Trading volume averaged 14.7 shares a day, down 2.4 million from the
unusually active week earlier.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.
Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.
LONG-TERM BOND
YIELDS, HIGH-GRADE
i C O R P O R A T E Aaa
U.S. G O V E R N M E N T
STATE A N D L O C A L G O V E R N M E N T All
1963
1964
1965
1966
1968
Exhibit A -- rare j.i
Date
"
1959-60 - High
1966 - High
- Low
1967 - High
- Low
Corporate
I Aaa 1/
i
j
State and
U.Si Govt. |
local
long-term 2/, government
Aaa 3/
(per cent)
1
| 4.61(1/29/60)
| 5.52(9/9)
4.73(1/7)
6.24(12/29)
5.00(2/10)
4.42(1/8/60) 3.65(9/24/59)
4-o 87(9/2) . 4.04(8/25)
3.39(1/13)
4c 42(1/7)
4.15(12/28)
5.49(11/17)
3.25(2/9)
4.37(2/3)
Spread between
U.S. Govt, and
Corporate
| State and
Aaa
| local Aaa
.92(4/22/60)
.59(8/5/60).
1.19(2/11)
.84(12/30)
.77(9/2)
.14(2/18)
1.51
.92
.74
.44
1.03
1.11
4.15
5.18
6.29
21
.97
1.12
4.18
1
5.15
6.27
28
.94
1.15
4.18
5.12
6.27
July
5
4.18
.92
5.10
6.27
1.17
12
4.10
1.04
5.14
1.12
19 »y 6.26
£/ preliminary«
1/ Weekly average of daily figures. Average term of bonds included is 22-Z4 years.
2/ Weekly average of daily figures. The series includes bonds due or callable in 10
years or more.
. Q_
3/ Thursday figures. Only general obligation bonds are included; average term is 0
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.
1968 - June
LONG-TERM
B O N D YIELDS,
LOWER
GRADE
Weekly
C O R P O R A T E Baa i
STATE A N D LOCAL G O V E R N M E N T Baa
Moody i
1963
'
1964
"i
1965
1966
1967
1968
Exhibit B -- Part II
|
State and
local govt.
Baa 3/
Spread between
Aaa and Baa
State
Corporate
local
(per cent)
1959-60 - High
Year end- 1965
1966 - High
Low
1967 - High
Low
. 7.07
21
7.04
28
7.04
5
July
7.03
12
6.99
19p./
For footnotes see Exhibit
1968- June
Note:
5.36(2/12/60)
5.04
6.18(12/30)
5.05(1/14)
6.97(1/29)
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)
4.96
4.96
4.96
4.96
4.90
-7 -
• •
III
Date
Corporate
Baa 1/
.84
.31
.81 .
.31
.82
1.08
.39
.62
.31
.81
.63
.37
.78
.77
.77
.76
.73
.81
.78
.78
.78
.80
EXHIBIT
C. Port I
S H O R T - A N D INTERMEDIATE-TERM INTEREST RATES
GOVERNMENT
n 6 - 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
1967
1968
Exhibit C -- Part II
Date
1959-60 - High
Year end - 1965
1966
1966 - High
Low
> 1967 - High
Low
!
I
Discount
1/
4,00
4.50 .
4.50
4.50
4.50
4.50
4.00
21
5.50
28
5.50
5
5.50
12
5.50
5.50
19s/
1/ Weekly rate shown is that
1968- June
July
3-month
bills u
4.59(1/8/60)
4.47 .
4c 80
5,52(9/23)
4.39(6/24)
4.99(12/29)i
3.41(6/9)
Yields
6-month
bills 2/
(per cent)
| 3-5 year
j issues U
5c 07(1/8/60)
4c 66
4.92
5.92(9/23)
4.53(6/24)
5.50(12/15)
3.74(6/2)
Spread between yields on
3-mo. bills and yields on
6-mo. bill:s|3-5 yr. issues
5.00(12/24/59)
4.90
4.86
5.83(9/2)
4.80(4/8)
5.80(11/10)
4.36(4/7)
.79
.19
o 12
.52
o 09
.62
.01
1.81
.43
.06
.78
.01
1.61
.02
5.45
5.58
5.61
.13
.16
5.30
5.51
5.67
.21
.37
5.35 .
5.43
r/ 5.58
.23
.08
5.43
5.51
.06
5.37
.14
5.38
5.46
-08
5.51
1
n
4
4
U
«
1
7
z
i
r
»
y
1
*
0
DneorifQ
R
a
in effect at end of period at the Federal Reserve Bank of
1
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.
EXHIBIT D, Pari 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 PRIVATE B O R R O W E R S
PRIME RATE
FINANCE C O M P A N Y PAPER
F.R. DISCOUNT RATE
FEDERAL FUNDS
1963
1964
1967
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
4.7.5
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) .
1.02
.23
.28
1.08
.20
1.33
.21
.55
6.28
6.00
6.50
21
.70
5.90
6.00
6.50
28
.65
5.78
6.00
6.50
July
5
.63
6.03
6.00
6.50
12
62
6.00
6.23
19p/ 6.50
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.
,
2/ Average of daily rates published by finance companies for directly placed paper
for varying maturities in the 90-179 daiy 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 tor
different series. For spreads, high refers to widest, and low to narrowest.
1968- June
j>/
Preliminary.
-11-
EXHIBIT E, Port
1
STOCK MARKIT
Billion*
of
1941-43 average= 10
dollar*
PRICES
STOCK M A R K E T CREDIT
* C H A N G E IN .SERIES
llions
YIELDS
1963
1964
1965
1966
1967
1968
of
shores
Exhibit E —
Date
Stock price
index 1/
1961-62 - High
Low
1966 - High
Low
1967 - High
Low
May
June
1968- July
72.04(12/8/61)
52.68(6/22/62)
93.77(2/11)
73.20(10/7) v
97.26(10/6)
82.18(1/6)
97.87
100.53
5 100.91
12 102.34
I9p flOO.46
Common
stock
yields 2/
(per cent)
Part II
Trading
Stock market customer credit
volume 3/
Customers'
Bank
(millions
Total
debit bal- loans to
of shares)
ances 4/
"others"5/
(In millions of dollars)
2.82
3.96
3.01
3.97
3.01
3.58
10.1
2.4
10.7
5.0
12.3
' ?6.,9
3.08
3.00
13.4
15.1
10,588
n. a.
8,231
n. a.
2,357
2,417
n. a.
2.94
3.00
13.0
17.1
1A.7
n. a.
n. a.
n. a.
n. a.
2,407
n.a.
n. a.
f
i
5,602(12/61)
4,424(1/61)
7,997
7,302
10,347(12/67)
7,345(1/6)
. \
n. a.
4,259(12/61) 1,418(5/9/62)
3,253(1/61) 1,161(3/8/61)
5,835
2,241(7/6)
5,169
2,097(12/14)
7,883(12/67) 2,057(11/1)
5,290(1/67) 2,055(1/25)
n.a.
2/ Standard and Poor's composite index of 500 common stocks, weekly closing prices, 1941-43=10.
Monthly data are averages of daily figures rather,than of Friday's only. Highs and lows are
for Friday's data only.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing
prices by Federal Reserve. Yields shown are for dates on which price index reached its high
or low.
3/ Averages of daily trading volume on the New York Stock Exchange. Year-end figures are averages
of daily figures for the year.
4/ End of month figures for member firms of the New York Stock Exchange which carry margin accounts;
excludes balances secured by U. S. Government obligations.
5/ 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.
-13 -
EXHIBIT F, Port 1
PRIVATE H O U S I N G STARTS A N D PERMITS
2.0
SEASONALLY
ADJUSTED
DATA
HOUSING STARTS
BUILDING P E R M I T S
.(•change in series
PER
CENT
OF
UNADJUSTED
TOTAL
STARTS
MULTI-FAMILY
GOVERNMENT UNDERWRITTEN
1961
1962
1963
1964
1965
1966
1967
1968
Exhibit F - P a r t II
Starts 1/
Building
permits
Unadlusted
Type of financing Tvoe o:f housing (seasonally
Seasonally adjustadjusted
1-2
MultlUnadjusted
annual
ed annual rate
Other family family
FHA
VA
rate) 2/
(Thousands of units)
Total
Date
1967 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.r/
May r/
Junej>/
V
2/
r/
]>/
1,233 ,
1,369
1,407
1,445
1,496
1,590
1,250
1,456
1,537
1,511
1,591
1,345
1,313
125
125
127
122
135
118
80
81
85
127
162
r/139
133
19
15
17
16
19
15
16
14
17
20
23
20
n. a.
5
5
6
5
5
4
4
3
4
5
5
6
5
101
90.6
34.8
106
86.8
38.4
105
87.8
39.5
82.0
101
39.8
111
86.7
48.7
72.3
99
46.1
61
50.2
29.9
63
47.8
32.7
66
58.8
28.5
102
83.5
43.0
133
101.7
60.3
111 r/89.9 r/48.9
n.a.
84.9
47.9
r/1,142
r/1,129
r/1,161
r/1,192
r/1,221
r/1,194
r/1,358
r/1,148
r/1,394
r/1,416
r/1,340
r/1,280
1,259
Total starts are Census estimates of private housing units including farm for both
permit-issuing and non-issuing areas. A dwelling unit is strated when excavation
begins; all units in an apartment structure are considered started at that time.,
FHA and VA starts are units started under commitments by these agencies to insure
or guarantee the mortgages. As reported by FHA and VA, a unit is started when a
field office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Capehart military housing units are excluded. Other starts ate derived
as a residual, although total and FHA and VA starts are not strictly comparable in
concept or timing; other starts include both units financed by conventional mortgages
and units without mortgages.
Building permits before January 1963 are Census estimates for about 10,000 areas
identified as having a local building permit system in 1959. Estimates beginning
January 1963, are for approximately 12,000, or all known, permit-issuing places.
Unlike starts, seasonally adjusted building permits reflect direct adjustment
for differences in the number of working days per month, as well as other differences
in timing and coverage.
Revised.
Preliminary, n. a. Not available.
-15-
YIKLDS O N
NEW
AND
SEASONED
CORPORATE
BONDS
6.5
A d j u s t e d lo
Aoo
Bom
N E W ISSUES
6.0
5.5
5.0
S E A S O N E D Aaa
4.5
4.0
1964
1967
1968
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.
Feb.
Mar.
Apr.
May
June
13
13
10
7
11
• 13
567.0
564.5
350.0
415.0
531.0
872.0
' 6.24
6.29
6.56
6.52
6.66
6.66
June
7
14
21
28
6
2
2
3
600.0
50.0
100.0
122.0
July
5
12
19£ f
2
3
300.0
75.0
,
6.66
6.61
6.67
, 6.78
6.56
6.60
Weekly averages:
1
High
6.83(5/24/68)
Low
" ,6.18(1/12/68) .
Note: Averages of offering yields on
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.
jJ Preliminary.
-17-
Exhibit R
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Capital
1968P/
January
: February
March
April
May
June
July
Augtist
September
Quarter
Quarter
Quarter
Quarter
1st half
Three quarters
Year
1966
State and local
1967
1968p/.
1,648
1,399
2,317
1,302
1,237
2,446
r/1,134
r/1,134
r/1,357
1,482
1,196
I,438
1,188
E /l,413
1,973
I,474
2,611
1,553
1,058
2,364
1,273
e/1,104
e/1,325
1,111
1,229
1,497
1,193
901
1,141
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
5,364
6,058
6,584
6,092
4,985
4,975
4,091
3,550
r/3,625
e/3,702
4,119
3,837
3,131
3,556
2,911
3,235
2,494
2,664
II,421
18,007
24,098
9,959
14,050
17,601
e/7,327
7,956
II,087
14,643
6,146
8,640
11,304
2/1,842
e/2,375
e/2,050
2/5,014
e/5,63-0
e/10,702
Excluding finance companies 3/
1st
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
4,943
Year
e/
p/
1/
1966
1,706
1,568
1,740
October
November
December
1st
2nd
3rd
4th
Corporate
1967
5,207
5,913
6,338
5,657
4,924
4,884
3,969
3,188
23,115
17,269
Estimated by Federal Reserve.
Preliminary, r / Revised.
.
Securities and Exchange-Commission estimates of net proceeds.
-is-
858
865
Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
|
Quarter
or
I
' . Month
i
1967-1
;
ii
III
IV
1968 - I
,1967 - May
June
July
Aug.
Sept.
i
Oct.
5
Nov.
f
,
1968 - Jan.
Feb.
Mar.
]
Apr. E /
?
May j>/
June e/
Total
5,464
6,208
6,833
6,294
Gross proceeds for new capital
and refunding 1/
Bonus
Common Memo:
Publicly Privately and
Foreign
Offered Placed
pfd. issues
stock included
3,263
1,811
390
60
4,017
1,465
726
65
4,604
1,551
678
234
3,107
2,137
1,051
93
5,178
2,465
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
1,771
.1,607
1,800
1,453
903
796
766
719
1,046
1,350
2,500
Net proceeds
for new capital 1/
Mfg.
Public CommuniOther
Utility cations Issuers
2,442
997
3,014 1,268
2,792 1,219
2,527 1,255
543
548
595
269
1,382
1,228
1,976
2,040
1,724
989
313
1,854 1,394
411
1,356
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,Z98
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
546
585
593
465
537
700
322
226
441
269
297
450
16
61
236
30
89
n.a.
537
556
761
364
566
1,000
417
546
431
178
547
375
186
147
78
, 189
103
.225
566
321
469
681
626
775
•
£/
1/
2/
Preliminary, e/ Estimated by Federal Reserve.
Gross proceeds exceed net proceeds by the cost of flotation.
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.
2/
-20-
Exhibit J
Other Security Offerings
(In millions of dollars)
•
-
.
1968
January
February
^ March
April"
May.
•June
July
August
September
October
November
December
Jan. - May jj/
103
49
30
75 r/
142 2./
399
Year
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 2J
744 £/
3,888
£/_
275
Year
-28
-177
1,721
422
1,135
1966
__
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
300
387
39
-552
436
89
-594
-319
-593
-454
-604
827
580
-559
681
2 P/
515
462
iZlp./
109
490 2/
-187
-334
93
-103
-158
20
270
-262
593
-161
1,407
32
-48
606
414
503
49
573
-570
36
-514
January
February
March
April
May
June
July •
August
September
October
November
December
Jan.- - May
Gross Long-term 1/
Foreign Government 2/
Federal Agency 3/
19.66
1967
1968
1967
-1,185
660
3/
308
-24
450
718
85
284
-590
-270
-652
-555
-283
219
r
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
subdividions and international organizations. Source; Securities and Exchange Commission.
2/ 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 from other funds. Data include only issues with
original maturity of one year or less. 5/ Principally tax and bond anticipation notes,
warrants, or certificates and Public Housing Auth. notes. In some instances PHA notes
included mav have a somewhat longer maturity than 1 year. Source; Bond Buyer & Federal
Reserve.
-21-
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 dollars)
Total
1967 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.
.1968 - Jan.
Feb.
Mar.
Apr.
May
June
Corooriite
Bonda
(other than
Convertible
convertibles)
bonds
1,666
1,340
1,705
794
1,458
826
978
904
757
788
696
1,009
1,461
1,072
890
1,288
473
897
461
460
652
575
415
500
656
1,161
409
317
350
257
285
150
437
168
. 105
135
723
283
120
Stocks
*
State
and
local
governments
185
133
67
65
276
215
81
85
77
238
73
70
180
875
483
473
847
505
865
633
785
591
736
794
571
758
Other
2/
825
85
221
400
50
845
627
1,095 ,
389
1,030
370
145
500
Large Individual Issues Offered July 1 through July 19, 1968.
Issuer
Levin-Towns end Computer
Corporation
Whittaker Corporation
•Nytronics
Baltimore Gas & Electric
Commonwealth Edison Co.
Standard Oil of New Jersey
Houston Lighting & Power
Company
General American Transportation Corporation
General Mills Inc.
*American Broadcasting Co.
New England Power Company
J.C. Penney Company
Metro-Goldwyn Mayer, Inc.
Lone Star Cement Company
Public Service Co. of Colo*
Type 2/
Amount
(millions
of
dollars)
Maturity
20.0
S.F. debs.-/
60.0
Conv. debs.
Conv. subT debs. 25:0
Conv. pfd. stkl' 30.0
1st mtg. bds.
50.0
250.0
Debs.
Cum. pfd. stk.
Offering
vield .
Rating
1979
1988
1983
7-1/2
4-1/2
6-1/2
7.50
4.50
6.50
1998
1998
6-3/4
6-1/2
6.70
6.50
Aaa
Aaa
1989
6.95
6.95
A
1993
1998
1993
1993
1993
1998
5.00
7-1/8
4-1/4
5.00
5-1/8
6-/34
5.00
6.96
4.25
5.00
5.125
6.67
Ba
Aa
A
Ba
Baa
Aa
= —
Ba
—
25.0
Equip, tr. cert. 50.0
43.3
Com. stk.
Conv. sub. debs. 50.0
1st mtg. bds.
20.0
Conv. sub. debs. 125.0
Conv. sub. debs. 35.0
Conv. sub. debs. 30.0
1st mtg. bds.
25.0
Coupon
rate or
net interest cost
-22-
K-2
Large Individual Issues Offered July 1 through July 19, 1968. (Cont'd)
Issuer
Type
3/
Amount
(millions
of
dollars)
Maturity
Coupon
Offerrate or
Rating %
net inter- ing
Yield
est cost
Corporate (Cont'd)
Pacific Ltg. Ser. & Supply Go. Debs .
6.82
30.0
1988
7
78.0
-50.5
1969-1998
2007
4.27
5.54
3. 50-4.50
5.50
Aa
Baa
G.O.
G.O.
G.O.
Rev. -Rent.
30.0
13.7
100.0
20.0
1969-1993
1969-2008
1978-2018
1971-88
4.42
n. a.
4. 77
n. a.
3. 65-4.50
3. 60-4.90
4. 05-4.85
4. 50-5.25
Aa
Aa
Aa
N.R.
Rev. -Rent.
G.O.
25.5
106.9
1998
1970-99
7-1/2
4.76
7.50
3. 75-5.00
N.R.,
Baa-1
Rev. -Q.-Ut.
G.O.
100.0
43.7
1970-91
1971-83
4.34.
3.95
3. 70-4.75
3. 60-4.00
Aa
Aaa
Rev. -Ut.
•
12.0
1971-98
4.52
3. 60-4.70
Aa
Debs,
75.0
1998
7-1/8
A
State & local Government
State of New York
,Dade County Port Auth., Fla.
Los Angeles, Calif. Unified
School District
Passaic Co., New Jersey
State of California
Iberville Parish, La.
Ontario (Cal.) Motor Speedway Corporation
New York City
Pennsylvania State Highway &
Bridge Authority
State" of Maryland
Nashville and Davidson Count#
Tennessee
G.O.
Rev. -Q.-Ut.
Other
Province of Ontario
7.19
Aa
* Rights offering.
1/ Includes corporate and other security offerings of $15 million and over; State and local
security offerings of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and Development
.issues and non-guaranteed issues by Federal Agencies.
3/ In the case of State and local Government Securities, G.O. denotes general obligation;
Rev.-Ut., revenue obligation 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.
.
4/ These debentures were sold with warrants; the debentures were priced at $1,000, the
warrants at $75.
-23"
H. 14
Exhibit L
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.
T
<
1967 - May 31
June 30
July 31
4
Aug. 31
•f;
Sept. 30
Oct. 31
b
Nov. 30
x
Dec. 31
t 1968 - Jan. 31
Feb. 29
Mar. 31
i
Apr. 30
May 31
June 30
i
I
1,449
1,636
1,261
694
534
1,357
826
968
531
873
758
1,103
1,193
1,068
596
401
512
783
768
505
865
633
449
683
494
695
485
597
Corporate
100
40
Subsequent to
date shown
State and
local govt.
2,065
1,922
1,576
1,335
1,090
2,694
2,129
1,892
736
1,105
935
1,612
1,403
1,380
100
65
50
845
402
60
130
15
45
500
75
616
402
575
903
889
743
1,684
1,076
937
1,079
624
1,069
640
1,042
.
Other 2/
115
70
150
159
126
260
875
502
75
265
125
60
515
110
Forthcoming Large Offerings ais of July 19,1968.
s
Issuer
I
Type
*
Corporate
^ Pacific Telephone & Telegraph Co. Debs.
Beneficial Finance
Debs.
Packaging Corporation of America Debs.
Conv. debs.
Apco Oil Company
General Telephone of Ohio
Def>s.
Chemical Bank New York Trust Co. Conv. cap. notes
Conv. debs.
McDonald's Corporation
Debs, w/wts.
Okonite Company
Debs, w/wts.
LTV Aerospace Corporation
Conv. sub. debs
Allegheny Beverage Company
Conv. debs.
Computer Applications
S.F. debs.
National Fuel Gas Company
Com. stk.
General Public Utilities Corp.
ConV\
sub. debs.
Wyle Laboratories
Debs.
^Wisconsin Telephone Co.
1st mtg. bds.
^Niagara Mohawk Power Company
1st mtg. bds.
*Pennsylvania Electric Company
1st mtg. bds.
^Georgia Power Company
Conv. debs.
Piedmont Aviation
Conv. debs.
Commonwealth United Corporation
^American Financial Corporation
Conv. sub. debs.
Amount
(millions
of
dollars)
-24-
165.0
25.0
25.0
15.0
15.0
52.0
20.0
. 25.0
50.0
15.0
15.0
15.0
25.5
15.0
50.0
60.0
38.0
50.0
15.0
15.0
15.0
Approxima te date of
offering
July 23
July 23
July 23
July 23
July 24
July 29(rts. exp.)
July 30
July 30
July 30
July
August 1
August 6
August 9(rts.exp.)
August 13
August 14
August 15
August 20
August 27
Indefinite
Indefinite
Indefinite
L-2 :
Forthcoming Large Offerings as of July 19. (Cont'd)
Issuer
Amount
(millions
of
dollars)
Type
Approximate data of
offering
Corporate (Cont'd)
^General Tel. of Indiana
1st mtg. bds.
17.0
Rev. -Ut.
Rev. -Rent.
12.0
35.0
'
Indefinite
•State and local Government
Atlanta, Georgia Los Angeles Dept. of Airports
Cook Co., Thornton Twp. H.S.D.#205
Illinois
State of Oklahoma
East Baton Rouge Parish, La.
State of Oklahoma
*Port of New York Authority
State of Minnesota
^Philadelphia, Pennsylvania
*Los Angeles DWAPS
Consumers Public Pwr. Dist., Neb.
^Maryland State Rds. Comm.
*Port of Astoria
*New York State Housing Finance
Kentucky Turnpike Authority
Ardmore Development Authority
^Hillsborough Aviation Auth.,
Tampa, Florida
G.O.
G.O.
Rev. -Rent.
G.O.
Rev. -Q.-Ut.
G.O.
G.O.
Rev. -Ut. /.
Rev. -Rent.
Rev. -Rent.
Rev. -Rent.
Rev. -Rent.
Rev. -Q.-Ut.
Rev. -Rent.
Rev. -Rent.
July
July
23.
23
10.0
16.5
30.4
16.0
100.0
20.3
29.2
24.0
250.0
235.0
150.0
74.0
120.0
75.0
July 24
July 29
July 31
July 31
July 31
August 6
August 13
August 14
August
September
September
Indefinite
Indefinite
Indefinite
41.0
Indefinite
800.0
25.0
, 15.0
July 25
July 25
Indefinite
Indefinite
Other
*FNMA
Province of Nova Scotia
Canadian Utilities, Ltd.
Husky Oil Canada, Ltd.
*—
1/
2/
Part . certs.
Debs
S.F. debs, w/wts.
Com. stk.
20.0
Included in table for first time.
includes corporate and other issues of $15 million and over; State and local Government
issues of $10 million and over.
Includes foreign government and International Bank for Reconstruction and Development
issues and non-guaranteed issues of Federal Agencies.
-25-
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:
Sale Date
Amount
(millions
of
dollars)
Issuer and Description of Issue
A.
' May
15
Sold:
May 1 through July 19, 1968.
20.0
Montreal Catholic School Commission--7-1/2% S.F. debs,
maturing 1993, reoffered to yield 7.88%.
Newfoundland and Labrador Power Commission--7-3/4%
S.F. debentures, maturing 1993, reoffered to yield
8%.
,
,
May
21
25.0
May
28
100.0
July
10
75.0
Canada, Government of, 6-7/8% bonds maturing 1988,
reoffered to yield 6.90%.
Province of Ontario, 7 -1/8% debentures maturing 1998,
reoffered to yield 7.19%.
B.
*July 25
Indefinite
Indefinite
Public Offerings
25.0
15.0
20.0
Prospective Offerings
Province of Nova Scotia — Debs.
Canadian Utilities, Ltd., -- S.F. debs, with warrants.
Husky Oil Canada, Ltd. -- Common Stock.
* - Included in table for first time.
** - Issues.sold to investors outside of U.S.
*** - Issue subject to interest equalization tax.
-26-
PART II:
Date Reported
6/68
Private Placements -- Reported May 1 through July 19, 1968.
Amount
(millions
of
dollars)
Issuer and Description of Issue
29.4
Seaboard Finance Co. of Canada, Ltd., Sr. notes
maturing 1983, take down at various dates
through 1969.
7/1/68
25.0
Argentina, Government of -- external bonds maturing
June, 1973.
7/1/68
1.4
7/1/68
.5
British Columbia Forest Products, Ltd. —
secured notes.
20 year
British Columbia Forest Products, Ltd. -- 10 year
secured notes.
NOTE: For retrospective data on aggregate foreign corporate and government security
offerings in the United States see Exhibits I and U. There is no simple relationship
between the data shown in the Exhibit and that shown in Exhibits I and J because the
latter includes privately placed securities in the period in which funds are actually 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.
@FedFRASER