Full text of H.16 Capital Market Developments : July 25, 1966
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Not f o r p u b l i c a t i o n
H. 14
DECONTROLLED AFTER SIX MONTHS
J u l y 25, 1966
CAPITAL MARKETS DEVELOHtfENTS
IN THE UNITED STATES
{Corporate and m u n i c i p a l bond m a r k e t s . T h i s w e e k ' s t o t a l of
new m u n i c i p a l i s s u e s w i l l be a b o u t t w i c e t h e s i z e of l a s t w e e k ' s
r e l a t i v e l y * l i g h t volume. N e a r l y h a l f of t h e t o t a l i s a c c o u n t e d f o r
by New York C i t y bonds i n t h e amount of $113 m i l l i o n . New c o r p o r a t e
s e c u r i t y i s s u e s a g g r e g a t e l e s s t h a n t h e a v e r a g e f o r such i s s u e s o v e r
the past year.
Long-term 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 Government
New C a p i t a l I R e f u n d i n g
Sold:
52 week avg.
July
15
22
176
3
204
23 l r /
65
226r /
130
140
251
4
. --
Scheduled:
J u l y 29
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 as 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 .
There were no m a j o r c o r p o r a t e d e b t o f f e r i n g s l a s t week.
Seasoned cci p c ; £te y i e l d s advanced 4 b a s i s p o i n t s , w h i l e m u n i c i p a l
y i e l d s remained unchanged t o s l i g h t l y lower v
P r i v a t e h o u s i n g s t a r t s and p e r m i t s .
Private housing s t a r t s
which had dropped 14 p e r c e n t i n May, edged o f f somewhat more i n June
t o a s e a s o n a l l y a d j u s t e d a n n u a l r a t e of 1,288 t h o u s a n d . T h i s was
t h e l o w e s t r a t e i n t h e p a s t f i v e y e a r s and 18 p e r c e n t u n d e r a y e a r
earlier.
The d e c l i n e b r o u g h t t h e second q u a r t e r a v e r a g e t o 1,362
t h o u s a n d - - a t e n t h below t h e a v e r a g e f o r t h e f i r s t q u a r t e r of t h i s
y e a r as w e l l as f o r 1965 as a whole.
U n l i k e t h e May-June movement of s t a r t s , t h e f u r t h e r d e c l i n e
i n t h e r a t e of p e r m i t s was p a r t i c u l a r l y marked, a v e r a g i n g 14 p e r c e n t
H. 14
-2-
Yields i n S e c u r i t y Markets
L e v e l l a t e s t week
Change f r o m
p r e c e d i n g week
High-Grade
N o t e s and Bonds
Corporate
New
Seasoned
5.17
+4
4.75
5.22
-3
U.S. Government
Long-term
3-5 year
-2
S t a t e and l o c . Govt.
Moody's Aaa
Std. & Poor's high grade
3.77
3.93
Money Market
Federal funds
Treasury b i l l s
3-month
6-month
4.40
-88
4.89
4.99
44
-1
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
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
506
(7/19)
End of P r e v i o u s Week
530
Recent High
636
(2/17)
H. 14
from t h e a l r e a d y r e d u c e d r a t e i n May t o a l e v e l g e n e r a l l y below t h e
lows r e a c h e d i n 1960. Most of t h e d e c l i n e was i n m u l t i f a m i l y
s t r u c t u r e s , which dropped a f o u r t h f u r t h e r from May and a t h i r d
under a year e a r l i e r .
As i n May, a l l r e g i o n s s h a r e d i n t h e d e c l i n e
i n p e r m i t s , a t an a v e r a g e u n i f o r m l y a f o u r t h u n d e r t h e June 1965
levels.
G o v e r n m e n t - u n d e r w r i t t e n s t a r t s a c c o u n t e d f o r j u s t o v e r 15
p e r c e n t of t o t a l s t a r t s i n J u n e . The p r o p o r t i o n was l i t t l e changed
from t h e s h a r e i n June of o t h e r r e c e n t y e a r s .
S a v i n g s Flows i n J u n e . Net i n f l o w s of i n c o m e - y i e l d i n g c l a i m s
to d e p o s i t a r y - t y p e i n s t i t u t i o n s aggregated $3.0 b i l l i o n in June,
a d e c l i n e of o v e r $ . 4 b i l l i o n from a y e a r e a r l i e r .
Commercial banks
a c c o u n t e d f o r t w o - t h i r d s of t h e n e t i n f l o w by r e g i s t e r i n g a g a i n
i n t i m e and s a v i n g s d e p o s i t s of a l m o s t $ 2 . 0 b i l l i o n - - a 16 p e r c e n t
advance i n d e p o s i t g r o w t h o v e r t h e p r i o r y e a r . Net d e p o s i t
gains
a t b o t h s a v i n g s and l o a n a s s o c i a t i o n s ( $ 1 . 1 b i l l i o n ) and m u t u a l
s a v i n g s banks ( $ . 2 b i l l i o n ) f e l l below, by a wide m a r g i n , t h e June
1965 i n f l o w s .
More i n f o r m a t i o n on s a v i n g s f l o w s can be found on t h e f o l l o w i n g
table.
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
m o d e r a t e t r a d i n g . 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 1 . 6 7
p o i n t s t o a F r i d a y c l o s i n g l e v e l of 8 5 . 4 1 . T r a d i n g volume a v e r a g e d
5.9 m i l l i o n s h a r e s a 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 s
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 Governors of t h e F e d e r a l R e s e r v e System.
P
-4SAVXNGS FLOWS
Year
or
Month
M u t u a l S a v i n g s Banks 3/
S a v i n g s & Loan A s s o c . 2 /
Commercial Banks 4 /
Per c e n t C u r r e n t
Change Per c e n t
Current
Change
Change
Per c e n t C u r r e n t
change
f
r
o
m
change
(
m
i
l
l
i
o
n
s
)
from
change ( m i l l i o n s )
from
Total (millions)
p
r
e
v
i
o
u
s
p
r
e
v
i
o
u
s
p
revious
1/
year
vear
vear
Unadjusted
1960
61
62
63
64
65
14,621
7,559
20,040r/ 8,743
27,901r/
9,351
2 9 , 1 0 0 r / 11,072
2 8 , 9 5 7 r / 10,579
31,953r/ 8,384
1966 - Feb.
Mar.
Apr.
May
June
1,552
3,767
291
2,035
3,037
1966 - Feb,
Mar.
Apr.
May
June
1,442
2,273
1,171
l,362r/
1,9? )8
528
838
748
434
1,130
952
1,184
608
1,721
-493
• 2,195
14.4,
15.7
7.0
18.4
-4.5
-20. 7
1,362
1,912
3,038
3,255
4,236
3,582
412
550
1,126
217
981
-654
-51
-217
-655
-358
-473
-2.8
-20.6
203
356
-341
115
200
-165
-319
-73
-236
-31.7
11
-181
-297
-70
-242
- -
45.2
-29,5
135.0
64 o r /
t5 3r/
-4.sl/
-4.3r/
41.3r/
5,700
9,385r/
15,512r/
14;773r/
14,142r/
19,987r/
3.700
3,685r/
6,127r/
-739,/
-6317/
5,845r/
-38.8
-54.1
821
2,573
1,380
1,486
1,977
-986
725
89
199
276
-54.6
39.2
6.9
15.5
16, 2
5.4
-48.7
-91.7
-29.4
-72.0
226
1,675
1,226
872
1,666
-1,065
620
70
126
246
-81.5
58.8
6. 1
16.9
17.3
40.4
58.9
7. L
30. 1
1r
- 4
- -
Seasonally Adjusted
856
505
-82
323
238
' 74
-240
-610
-366
-523
9.5
-32.2
——
-53.1
-68.7
360
93
27
168
94
1/ Commercial b a n k d a t a a r e of t h e l a s t Wednesday of month e x c e p t J u n e 30 and December 31; o t h e r
d a t a a r e as of t h e l a s t day of t h e month.
2/ D a t a a r e f o r t h e n e t i n c r e a s e i n s a v i n g s c a p i t a l a t a l l o p e r a t i n g S&L's. S o u r c e : FHLBB.
3 / D a t a a r e f o r t h e n e t i n c r e a s e i n r e g u l a r d e p o s i t s — e x c l u d e s o t h e r d e p o s i t s of a
demand n a t u r e . S o u r c e ; M u t u a l S a v i n g s Banks A s s o c i a t i o n .
4 / D a t a a r e f o r t h e n e t i n c r e a s e i n s a v i n g s and t i m e d e p o s i t s a d j u s t e d a t a l l commercial b a n k s .
Source: Federal Reserve,
LONG-TERM BOND YIELDS, HIGH-GRADE
CORPORATE A a a
~
U.S. GOVERNMENT
S T A T E AND LOCAL GOVERNMENT A a a
1961
Date
1 9 5 9 - 6 0 - High
1 9 6 2 - 6 3 - Low
1965 - Lev
1966 - High
- Low
J u n e 24
July
1
8
15
22£/
1962
Corporate
Aaa 1 /
1963
1964
U.S. Govt.
long-term 2/
S t a t e and
local
government
Aaa 3 /
4 . 6 1 (1/29/60)
4 . 1 9 (3/29/63)
4 . 4 1 (3/12)
5.17(7/22)
4.73 (1/7)
4.42
3.85
4.13
4.78
4.42
5.07
5.10
5.12
5.14r/
5.17~"
4.58
4.69
4.72
4.78
4.75
(1/8/60)
(12/26/62)
(6/25)
(7/15)
(1/21)
1965
1966
Spread between
U. S . G o v t , a n d
Corporate
S t a t e and
Aaa
l o c a l Aaa
3 . 6 5 (9/24/59)
2 . 8 8 (11/8/62)
2 . 9 4 (2/11)
3.77 (7/21)
3.39(1/13)
. 5 9 (8/5/60)
. 2 1 (12/27/63)
.22
3.58
3.64
3.77
3.77
3.77
.49
.41
.40
.36r/
.42
.49
.14
.
. 9 2 (4/22/60)
. 8 0 (1/5/62)
.94
1.19
.95
1.00
1.05
.95
1.01
.98
v/ P r e l i m i n a r y #
y Weekly average of d a i l y f i g u r e s . Average term of bonds included i s 22-24 y e a r s ,
j J Weekly a v e r a g e of d a i l y f i g u r e s . The s e r i e s i n c l u d e s bonds due o r c a l l a b l e i n 10 y e a r s o r more*
y Thursday f i g u r e s . Only g e n e r a l o b l i g a t i o n bonds a r e i n c l u d e d ; average terra i s 20 y e a r s .
S o t e . — f l l j n s and lows a r e f o r i n d i v i d u a l a e r i e s and may be on d i f f e r e n t d a t e s f o r d i f f e r e n t
s e r i e s . F o r s p r e a d s , h i g h r e f e r s t o w i d e s t , and low t o n a r r o w e s t .
LONG-TERM BOND YIELDS, LOWER GRADE
6.0
5.5
STATE AND LOCAL GOVERNMENT Baa
m ii' tii' ' i
ii' ' ' ' ' ' i' '
1961
1962
Da t e
1959-60 - High
Year end - 1962
1964
1965
1966 - High
Low
June 24
July 1
8
15
22 £ /
' ' i' ' ' ii' i'
Corporate
Baa 1/
S t a t e and
l o c a l govt.
Baa 3/
(per c e n t )
' iiiii' i' ii ' ii' ' i' iiii
1965
1966
Spread between
Aaa and Baa
S t a t e and
Corporate
local govt.
5.36 (2/^2/60)
4.93
4.80
5.04
5.69 (7/22)
5.05 (1/14)
4.46 (3/7/60)
3.57
3.51
3.79
4.30 (7/21)
3.78 (1/20)
.84
.70
.37
.31
.54
.31
1.08
.63
.52
.39
.62
.38
5.61
5.60
5.63
5.68r/
5.69
4.13
4.16
4.30
4.30
4.30
.54
.50
.51
.54
.52
.55
.52
.53
.53
.53
Notes Tor footnotes Bee Exhibit i .
' iiiiiiiiii
1963
1964
Exhibit B -- Part II
3.0
1
EXHIBIT c. fori I
SHORT- AND INTERMEDIATE-TERM
GOVERNMENT
INTEREST RATES
Weehly
Per <em
J
3 5 YEAR I S S U E S
i-1 MONTH BILLS h
Mork.l Vi.ldi
F. R. DISCOUNT RATE
N
"
T
"k
zv
JJ
i
1
3-MOHTH BILLS
11111111111
1961
1 1 i i i i 1 i : II
I II 1 I 1 I 1 II 1
1962
1963
1964
1965
1966
Exhibit C -- Part II
Da t e
4.59 (1/8/60) 5 . 0 7 (1/8/60)
3-Vy£ar
issues,2/
S p r e a d b e t w e e n y i e l d s on 3 month b i l l s and y i e l d s on
6-mo. b i l l s ! 3 - 5 v r . i s s u e s
4.00
3.00
3.00
3.50
4.00
4.50
4.50
4.50
2.66
2.89
3.52
3.83
4.47
4 . 8 9 <7/22)
4.39 (6/24)
2.90
2.93
3.64
3.93
4.66
5.00 (7/15)
4.53 (6/24)
3.81
3.41
4.07
4.07
4.90 .
5.24 (7/15)
4.80 (4/8)
.79
.24
.04
.13
.10
.19
.24
.09
4.50
4.50
4.50
4.50
4.50
4.39
4.47
4.67
4.85
4.89
4.53
4.68
4.82
5.00
4.99
4.95
5.11
5.14
5.24r/
5.22
.14
.21
.15
.15
.10
F
8
J u n e 24
July
1
8
15
22%/
Yields
6-month
b i l l s 2/
(per cent)
I
1 9 5 9 - 6 0 - High
Year end - 1961
1962
1963
1964
1965
1966 - High
Low
Discount
3-month
ra te
b i l l s 2/
U
1.81
1.15
.52
.55
.24
.43
.64
.21
.56
.64
.47
.39r/
.33
Weekly rate shonn l e that in e f f e c t at end of period at the federal Reserve Bank of New Yoric,
Haricot 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 f o r individual s e r i e s and may be on d i f f e r e n t dates for different s e r i e s .
Tat spreads, high refers t o widest, and low to narrowest.
EXHIBIT D. Pan I
SHORT- AND INTERMEDIATE-TERM INTEREST RATES,
BANKS AND OTHER PRIVATE BORROWERS
PRIME RATE
FINANCE COMPANY PAPER
F.R. DISCOUNT RATE
FEDERAL F U N D S
1961
Date
1 9 5 9 - 6 0 - High
Y e a r end - 1961
1962
1963
1964
1965
1966 - H i g h
Low
J u n e 24
July
1
8
15
22£ /
1962
Prime r a t e
1963
\_f
1965
1964
Finance
company
Federal funds 3/
paper
2/
(per cent)
5.00
4.50
4.50
4.50
4.50
5.00
5.75
5.00
5 . 13 ( 1 / 2 2 / 6 0 )
3.00
3.19
3.88
4.06
4.75
5.50 (7/22)
4.75 (1/7)
4 . 0 0 (5/13/60)
2.88
3.00
3.50
4.00
4.63
5.43 (7/1)
3.55 (1/21)
5.50
5.75
5.75
5.75
5.75
5.38
5.45
5.50
5.50
5.50
5.30
5.43
5.26
5.28
4.40
1966
Spread between
3 - m o . b i l l s and
finance co. paper
1.02
.34
.30
.36
.23
.28
.99
.20
.99
.98
.83
.65
.61
1/ Weekly r a t e shown i s t h a t i n e f f e c t a t end of p e r i o d . Prime r a t e i s t h a t charged by l a r g e banks
on s h o r t - t e r m loans t o business borrowers of the h i g h e s t c r e d i t standing*
2/ Average of d a i l y r a t e s published by f i n a n c e companies f o r d i r e c t l y placed paper f o r varying
m a t u r i t i e s i n the 90—179 day r a n g e .
3 / Weekly average of d a i l y e f f e c t i v e r a t e , which i s the r a t e f o r the h e a v i e s t vo}un» of purchase and
s a l e t r a n s a c t i o n s as reported t o t h e F e d e r a l Reserve Bank of Hew York*
Digitized forNote*—fligha
FRASER
and lows are f o r i n d i v i d u a l s e r i e s 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 s p r e a d s , high r e f e r s t o w i d e s t , and low t o narrowest.
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. Louis
.
)
STOCK
MARKET
100
PRICES
80
i
STOCK MARKET CREDIT
60
C H A N G E IN S E R I E S
1
I VOLUME
|
YIELDS
1 l I l I I 1 II 1 1
111111111111
1963
1
1964
Exhibit E -- Part II
Common
Stock p r i c e
i n d e x 1/
1 9 6 1 - 6 2 - High
Low
Nov. 1963
J u l y 1965
1966 - High
Low
72.04(12/0/61)
52.68(6/23/62)
72.62
84.91
93.77(2/11)
85.41(7/22)
86.78
1 9 6 6 Hay
86.06
June
87.61
July 8
87.08
15
22b / 8 5 . 4 1
y i e l d s 2/
(per cent)
Trading
volume 3 /
(millions
of s h a r e s )
2.82
3.96
3.14
3.09
3.02
3.37
10.1
2.4
5.3
4.1
10.7
5.1
3.30
3.36
3.29
3.31
3.37
8.1
6.4
6.2
5.8
5.9
Stock market customer c r e d i t
Bank
Customers'
loans to
debit bal" o t h e r s " 5/
ances 4/
( I n m i l l i o n s of d o l l a r s )
Total
5,602[L>/61) 4 , 2 5 9 ( 1 2 / 6 1 )
4,424(3/61) 3,253(1/61)
7,298
5,586
6,833
4,863
5,835
7,997
5,55-1
7,726
7,905
*7,997
n. a.
n. a.
n. a.
5,768
*5,766
n. a.
n. a.
n. a.
1,418(5/9/62)
1,161(3/8/61)
1,712
1,970
2,241 (7/6)
2,137 (5/27)
2,137
2,231
2,241
2,223
l ^ l e x of 500 oocroon s t o c k s . weekly closing p r i c e s , 1941^43*10.
Monthly d a t a are averages of d a i l y f i g u r e s r a t h e r t h a n of f z i d a y ' s o n l y . High# and lows a r e f o r
2 / Standard and*Poox*s composite a took yield based on Wednesday data converted t o weekly olosing
pr i c e a by Federal Reserve. YleMs shown are f o r dates on which p r ic e index reached i t s high
3 / Averages of d a i l y t r a d i n g volume on the New York Stock Exchange. Teazlend f i g u r e s a r e averages of
daily figures for the year.
4 / End of month f i g u r e s f o r n m b e r f i r m s of the New York Stock Exchange which oarxy margin accountss
excludes balances secured by U. S. Government o b l i g a t i o n s .
5 / Wednesday figures f o r weekly r e p o r t i n g member banks. Excludes loans f o r purchasing or carrying
U. S. Government s e c u r i t i e s . Weekly reporting banks account f o r about 70 per oent of loans t o
o t h e r s , f o r f u r t h e r d e t a i l see B u l l e t i n .
Series.
Digitized for*—New
FRASER
PRIVATE H O U S I N G STARTS AND PERMITS
SEASONALLY
ADJUSTED
DATA
HOUSING
STARTS_
'vYV-V-! V\
X
1959
1960
1961
1963
1962
1964
1965
1966
Building
permits
Unadtustcd
Typii of f i n a n c i n g Type 0 f i l o u s i n g ( s e a s o n a l l y
adjusted
Seasonally adjustMulti1-2
Unadjusted
annusl
Other
VA
FtlA
ed a n n u a l r a t e
family family
r a t e ) 2/
Starts
Total
Date
( T h o u s a n d s of u n i t s }
1965 - J u n e
July
Aug.
Sept,
Oct.
Nov.
Dec.
1966 - J a n .
Feb.
June
1,, 5 6 6
1,473
1,, 4 2 2
1,, 4 5 3
1 ,411
1 ,547
1 ,769
1,, 6 1 1
1,,374
1.,569
r / 1 . .502
r/ 1.295
" 1, 288
156
141
135
124
134
116
102
85
78
126
147
rA33
128
19
17
18
17
18
16
15
13
12
19
18
14
15
5
5
5
4
4
4
3
3
2
3
3
4
4
131 1 0 5 . 2
98.7
119
93.0
112
103
83.9
91.0
112
96
75.0
63.3
84
50.8
69
64
49.3
85.4
104
r / 126 r A 0 0 . 3
7/115 7/91.1
108
90.3
50,. 3
42, . 5
41, ,6
40, ,4
42, ,6
41, ,0
39, ,0
33.,8
28.,9
40. 9
r/46. 8
r/42.1
37. 5
1,254
1,243
1,217
1,180
1,259
1,282
1,325
1,262
1,191
1,293
1,169
r/1,098
941
1/ Total starts are Census estimates including farm for both permit-Issuing and noo-lseuing areas, A
dwelling unit ! • started when excavation begin#| a l l unite in &n apartment structure are considered
started at that t i n * . FHA and VA starts are units started under cental tments by these agenclee to Insure
or guarantee the rortgages. As reported by ITU and VA, a unit i s started when a f i e l d o f f i c e receives
the f i r s t compliance inspection report, which i s made before footings are poured In some cases but
normally a f t e r the foundations have been completed, Capehart military housing units are excluded.
Other etarte are derived as a residual, although t o t a l and FHA and VA starts are not s t r i c t l y comparable
in concept or timing; other starts include both units financed by conventional mortgagee and units
without mortgagee.
2/ fhilldlng permits before January 1963 a r c Cenaw estimates f e r about 10,000 areas i d e n t i f i e d as
having a l o c a l W i l d i n g permit aya tern In 1959. Estimate s beginning January 1963, are f t r approximately
12,000, o r a l l knewn, p e m l t - l a s u i n g p l a c e s . Ualike s t a r t s , seasonally adjusted building pezmlts
r e f l e c t d i r e c t adjustment f o r d i f f e r e n c e s in the nuttber ef working days per month, as w e l l as o t h e r
d i f f e r e n c e s In timing s.-d coverage.
FRASER
Digitized for
YIELDS ON NEW AND SEASONED CORPORATE BONDS
NEW I S S U E S
SEASONED Aaa
I I I I I II II
1964
Exhibit G - Part I I
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number Am't of Issues Average
yield
included (mil*
of
(per cent)
issues of dollars)
Number Am't o f I s s u e s Average
yield
included (mil.
of
(per cent)
issues of dollars)
Monthly averages:
5
1965 - Oct.
6
Nov.
Dec.
4
8
1966 - Jan.
10
Feb.
9
Ear.
13
Apr.
7
May
11
June
July
Aug.
Weekly averages
High
108.0
267.0
212.0
300.0
304.5
5 13.0
452.3
341.0
596.0
5.61 (7/15)
4.82 (1/7)
4.69
4.72
4.85
4.84
4.98
5.13
5.08
5.21
5.38
June
3
10
July
17
24
1
8
15
50.0
46.0
80.0
370.0
50.0
5.36
5.34
5.43
5.31
5.64*
90.0
5.61
22
29
5
12
19
26
Sept. 2
9
Aug.
10MMBN1HN&
t-v
Exhibit H
H.14
Long-term C o r p o r a t e and 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 and P l a c e m e n t s
( I n m i l l i o n s of d o l l a r s )
New C a n i t a l
1966
January
February
March
IP
r
April
May
June
quarter
quarter
quarter
quarter
let half
Three q u a r t e r s
Year
S t a t e and l o c a l 2 /
1964
1966
1965 £ /
1964
1,302
1,237
2,446
795
746
1,197
938
700
778
2/1,183
£ / 857
e / 857
804
872
904
947
776
810
£ / 1,554
E./ 1, 002
ej 2, 445
1,152
1,691
1,946
2,237
1,095
1,405
P/1,150
V/ 887
e/1,075
826
924
972
1,242
667
903
e/1,400
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
.a/2,897
e/3,112
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
e/6,009
5,302
7,902
10,471
5,345
7,923
10,201
October
November
December
1st
2nd
3rd
4th
Cornorate
1965
4,985
e/5,001
e/9,986
700
Excluding f i n a n c e companies 3 /
1st
2nd
3rd
4th
quarter
quarter
quarter
quarter
Year
e/
E/
1J
2J
3/
2,547
4,348
3,283
3,188
2,043
4,258
2,477
2,997
13,3 66
11,775
Estimated by Federal Reserve.
Preliminary.
S e c u r i t i e s and Exchange Commie#ion 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 of s a l e s and consumer f i n a n c e companies.
1
1}
Exhibit I
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 )
r1
Quarter
or
Month
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/
Total
Bonds
Common Memo:
Publicly Privately
and F o r e i g n
Offered
Placed
pfd. issues
stock included
Net p r o c e e d s
f o r new c a p i t a l
Mfg.
P u b l i c CommuniUtility cations
1/ 2 /
Other
Issuers
' 1964 - I
II
,
III
*
iv
2,548
4,965
2,876
3,568
978
1,312
792
531
1,269
1,755
1,590
2,629
300
1,890
494
408
29
105
94
277
429
723
559
1,061
438
856
642
509
273
1,666
59
135
1,275
1,492
1,361
1,559
5 1965 - I
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
1,072
1,679
1,119
1,145
541
609
786
610
91
255
323
177
1,034
2,246
1,304
1,815
i
5,094
5,143
1,774
1,909
2,586
2,231
734
1,002
345
n•3 •
1,860
2,053
969
837
602
373
1,553
1,739
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
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
1,339
1,273
2,482
1,592
1,026
2,525
460
560
753
628
481
800
692
583
1,311
754
477
1,000
187
130
417
209
68
725
93
118
133
55
33
n.a.
353
530
977
653
400
1,000
388
241
340
361
256
220
141
160
301
76
37
260
420
306
827
465
309
965
1966 - I
II
III
t 1965 - Apr.
May
^
June
^
July
Aug.
Sept.
Oct.
Nov.
Dec,
1966 - J a n . 3 /
Feb.
Mar.
Apr.j)/
May 2./
Junee/
July
Aug.
Sept.
£/
e/
1/
2/
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 .
G r o s s 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 / 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 .
Somrce: 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 )
n r n s n T.nng-rprm 1 (
TTnrAi gn r . n w r n m p n f 2 /
_i££5_
1964
1966
1 Q66
12
40
40
66
69
January
February
March
April
May
June
July
August
September
October
November .
December
218
91
33
74
5
52
75
2
4
82
69
30
75
26
20
13
7
180
72
58
420
661
38
73
Jan. - June
503
410
392
699
Jan.
-June
»
>
103
39 •
-319
580
2/462
2,/-331
£ / 50*
129
185
325
275
260
160
775
239
150
375
375
179
510
286
1,414
275
636
2,732
1,205
New s h o r t - t e r m 4 /
S t a t e and l o c a l G o v e r m e n t 5 /
January
February
March
April
... _
May
June
July
August
September
October
November
December
Fprteral Agency 1 /
1964
1965
238
91
-458
647
204
103
236
-407
442
81
308
-24
450
85
n. a.
n.a.
F e d e r a l Agency 3 /
-82
-80
119
408
152
59
274
-366
-9
127
176
7
-15
-208
-137
-174
117
-11
509
237
132
206
105
-309
202
-76
640
375
541
i -308
' -336
23 ;
97
183
239
-333 ,
167
1
. 525
113 ,
-3
-ioa
1,286
Year
368
453
801
£/ Preliminary,
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.—Not available.
1J T h e s e d a t a
d i f f e r f r o m 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 ,
are included.
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 o n e 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 . b y f o r e i g n g o v e r n m e n t s 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 .
Source: 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 . G o v e r n m e n t . 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 E x c h a n g e
Commission; s h o r t - t e r m , T r e a s u r y Dept. & Fed. R e s e r v e .
4 / These d a t a d i f f e r from those
i n E x h i b i t H a n d a b o v e 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 the p r o c e e d s or 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 only 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 o f 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 , or c e r t i f i c a t e s and P u b l i c Housing Auth. 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 h a v e 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 .
Source:
Bond B u y e r & F e d e r a l
R e sfor
e r v FRASER
e.
Digitized
H. 1 4
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
196 5 - J u n e
July
Aug.
Sept.
Oct.
Nov.
Dec,
1966 - J a n .
Feb.
Mar.
Apr.
May
June
Coroorjite
Bonds
(other than
Convertible
convertibles)
bonds
343
455
211
530
190
559
212
370
391
544
481
351
636
801
477
299
530
246
736
262
485
545
890
643
401
1,317
Stocks
State
and
local
governments
138
320
22
62
40
33
50
——
144
115
70
271
106
- -
84
75
55
50
20
«. -
661
y
430
20
50
170
43
95
377
655
312
563
409
538
413
787
424
399
720
466
582
26
16
Other
—
—
—
55
60
—
275
L a r g e 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 22
Issuer
Type 2/
Amount
(millions
of
dollars)
Maturity
Coupon
rate or
net interest cost
Offering
vield
Rating
Coroorate
•^Occidental Petroleum
Corp.
Consumers Power Co.
C&P T e l e p h o n e Co.
D o u g l a s A i r c r a f t Co.
Harvey Aluminum Co.
C o n s o l , E d i s o n Co.
S t a t e and Loc. Governmen
Warren Consol. Sch. D i s t ,
Michigan
U n i v e r s i t y of T e x a s
Alabama P u b l . S c h . &
College Auth.
Houston, Texas
Conv. s u b . d e b .
1 s t m t g . bds„
Deb.
Conv. sub i„ d e b .
Conv. s u b . d e b .
Pfd„ s t k .
62.0
65,0
25.0
75.0
25.0
50.0
1991
1996
2006
1991
1991
5-1/4
5-7/8
5-5/8
4-3/4
5-1/2
G. 0„
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
G.O.
25.0
21.0
1967-86
1967-86
4.28
4.13
3.75-4.20
3.75-4.05
Aa
- -
5.75
5.55
4.75
5.50
Aaa
Aaa
Ba
B
K-2
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 22
Issuer
S t a t e and l o c . Govt.
S t a t e of
S t a t e of
Onondaga
Kentucky
Type 3 /
Amount
(millions
of
dollars)
Coupon
Offerr a t e or
Maturity net i n t e r - ing
Yield
est rate
Rating
(Cont'd)
Texas
Oklahoma
C o . , New York
T u r n p i k e Auth.
G.O.
G.O.
G.O.
Rev.-Q.-Ut.
10.0
12.0
15.0
120 0
1972-98
1969-90
1967-96
1971-2006
3.77
3.78
n.a.
4.81
1981
6-7/8
3.65-3.704/
3.70-3.75
3.60-3.75
4.75
Aaa
Aa
Aa
Other
Govt, of Mexico
Bonds
15.0
7.26
*--Rights offering.
n.a.--Not available.
c
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
J
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 Bank f o r R e c o n s t r u c t i o n and Development
i
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 by F e d e r a l A g e n c i e s .
'
37 I n 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 . , r e v e n u e o b l i g a t i o n s s e c u r e d 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 . *
r e v e n u e bonds s e c u r e d o n l y by r e v e n u e from q u a s i - u t i l i t i e e ; R e v . - S . T . , r e v e n u e bonds
s e c u r e d by r e v e n u e 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 . , r e v e n u e bonds s e c u r e s s o l e l y
;
by l e a s e p a y me n ts .
4 / Bonds m a t u r i n g 1989-98 n o t p u b l i c l y r e o f f e r e d .
^
n
H. 14
Exhibit L
Forthcoming Large Long-term P u b l i c S e c u r i t y O f f e r i n g f o r Hew C a p i t a l
(Other than U.S. t r e a s u r y ) \ )
Expected Proceeds from Forthcoming Large I s s u e *
( I n m i l l i o n s of d o l l a r s )
During month f o l l o w i n g
d a t e shown
S t a t e and
Corporate
Other 2 /
local govt.
1965 - June 30
J u l y 30
Aug. 31
Sept.30
O c t . 29
Nov. 30
Dec. 31
1966 - Jane 31
Feb, 28
Mar. 31
Apr. 30
May 31
June 30
397
248
404
269
343
398
501
340
366
253
399
584
337
363
193
312
206
412
297
553
530
828
489
248
1,261
317
20
15
25
20
20
20
30
15
Corporate
Subsequent t o
d a t e shown
S t a t e and
local eovt.
410
340
636
303
489
344
676
931
1,176
606
1,034
1,261
619
524
353
450
331
578
458
582
461
504
334
546
584
353
Other 2 /
20
15
25
20
20
20
90
55
55
85
50
Forthcoming Large O f f e r i n g s as of J u l y 22
Type
Issuer
Charter
N o r t h w e s t e r n S t a t e s Power Company
F l o r i d a Power Corp.
J e r s e y C e n t r a l Pwr. & L t . Co.
Amer. T e l . & T e l . Co.
C o n t i n e n t a l T e l . Co.
^ N o r t h e r n 111. Gas Co,
* S o u t h e r n Cal» E d i s o n Co.
*Pan Am. World Airways
*Household F i n a n c e Corp.
*Air P r o d u c t s & Chem, I n c .
Northeast Airlines
Amount
(millions
of
dollars)
Approximate d a t e of
offering
Deb.
1 s t mtg. b d s .
Deb.
1 s t :mtg. b d s ,
Deb.
Conv . s u b . d e b .
1st mtg. bds.
1 s t mtg. b d s .
Conv . s u b . d e b .
Notes
Pref . s t k .
Conv . sub. d e b .
35.0
45.0
20.0
30.0
250.0
25.0
20.0
80.0
175.0
75.0
20.0
22.0
J u l y 28
J u l y 28
J u l y 29
Aug. 3
Aug. 4
Aug. 11
Aug. 17
Aug. 24
Aug.
Aug.
Indefinite
Indefinite
G.O.
G.O.
33.4
112.9
J u l y 26
J u l y 26
S t a t e and l o c a l Government
C o l l e g e s of t h e S t a t e of T e x a s ,
Austin
*N.Y. C i t y , N.Y.
L-2
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 22
Issuer
S t a t e and Loc.. Govt. ( C o n t ' d )
S t a t e of M i s s i s s i p p i
N a s h v i l l e & Davidson Co.
Metro., Govt, , T e n n e s s e e
*N,Y. S t a t e Dorm. Auth.
* D e t r o i t - W a y n e J t . Bldg. Auth.
* 0 r a n g e Co. C i v i c C e n t e r Auth.
Pa. S t a t e Gen Auth.
^Denver, C o l o r a d o
* T u l s a , Oklahoma
^Chicago, I l l i n o i s
Type
Amount
( millions
of d o l l a r s )
(Cont'd)
Approximate d a t e of O f f e r i n g
G.O.
17.4
July
G.O.
Rev. - R e n t .
Rev.-Rent.
Rev.-Rent.
G.O.
G.O.
G.O.
G.O.
15.9
19.8
14. 5
22.0
50.0
22.0
18.2
25.0
Aug. 2
Aug. 2
Aug. 9
Aug. 9
Aug. 9
Aug. 11
Aug. 16
Aug. 25
Bonds
Bonds
20.0
15.0
Indefinite
Indefinite
* - - I n c l u d e d in t a b l e for f i r s t time.
1/ 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 :
::
i
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.
\
f
None.
j
V
'
^
I?
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
A.
Sold May 1 t h r o u g h J u l y
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
88%.
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 table for 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.
V
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 Pulp 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 1 9 8 5 - - n o i n f o r m a t i o n a v a i l a b l e on takedown.
5/2
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 takedowns
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 M i n e s , L t d - - 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.
Note: For 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 >. b 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