Full text of H.16 Capital Market Developments : July 29, 1963

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Noj^Cor Publication DECONTROLLED AFTER SIX MONTHS

\

0&5

July 29, 1963.

CAPITAL MARKET DEVELOPMENTS
—IN-$flB-yNTTED~STATES

ng Review of Secondary Offerings of State
and Local Government Bonds)

PuBlic security financing to obtain ney capital is expected
to continue in moderate volume. Last week, ending July 26, two large
corporate bond issues aggregating $45 million and two municipal bond
issues with par value of $117 million were sold. This week ending
August 2, one $30 million corporate issue and a $24 million State
and local government bond offering are on the calendar. An issue of
$20 million of Nippon Telephone & Telegraph Public Corporation bonds
is also expected to be sold publicly; this issue had originally been
scheduled for offering last week, but was delayed temporarily because
of market uncertainty concerning the proposed tax on foreign security
offerings, even though it was clear that it would not apply to this
issue. In addition to new capital financing, two large refunding
offerings are also scheduled for sale this w e e k — a $70 million telephone
company issue and $197 million of bonds of Grant County Washington Public
Utility District.
Bond yields. Changes in yields on seasoned long-term bonds
were mixed last week. Government bond yields declined; those on Baarated municipal bonds by four basis points, those on U. S. Governments
by two basis points and those on Aaa-rated municipals by one basis point.
Yields on Aaa-rated corporate bonds increased two basis points further
to a new high for the year of 4.29 per cent, while those on Baa corporate
bonds were stable.
Yields on new corporate bonds, adjusted to Aaa basis, averaged
4.31 per cent, last week. This is six basis points higher than in late
June, the most recent period when this series was not affected by special
characteristics of the offerings included, and at the top of the range
that has prevailed since the first of the year.
Short- and intermediate-term interest rates. Most short-term
rates did not change last week. Yields on both 3- and 6-month treasury
bills were stable at 3.19 per cent and 3.36 per cent, respectively, while
those on 3-5 year Governments declined one basis point. The average
effective Federal funds rate dropped sharply last week from the year's
high of 3.15 per cent two weeks ago to a new low for the year of 2.45
per cent. Other rates were unchanged.
Mortgage recordings. Seasonally adjusted nonfarm mortgage
recordings of $20,000 or less rose 3 per cent further in April, the latest
period available on a three-month moving average basis. The monthly rate
of $2,986 million was just above the previous high in the summer of 1962




H. 14
and nearly a tenth 'above a year earlier.
Federally underwritten loans accounted for 21 per cent of total
loans recorded in May. This was the same as in April and a moderately higher
proportion than a year earlier.
The average size of all loans recorded increased to 111.7 per
cent of the 1959 average. While the increase appeared to be partly
seasonal, it compared with 107.8 per cent a year earlier.
Stock prices. Common stock prices declined slightly further
early last week, but then recovered to increase slightly on balance.
At Friday's close, Standard & Poor's composite index was 68.54, 2 per
cent below the early July level and 6 per cent below the late 1961
peak. Trading volume was quite light last week, averaging 3.2 million
shares per day, the smallest of the year to date.
Secondary offerings of State and local government bonds.
Secondary offerings are sales of fairly large blocks of already-issued
securities by investors through a procedure similar to that employed
by issuers of new securities. Since the securities involved are already
in existence, such offerings do not represent a net increase in market
supply, but do involve an underwriting commitment for dealers. Secondary
offerings of corporate stock have been common in the past, but not until
recently have secondary offerings been significant in the municipal bond
market. While completely reliable statistics are not available, it
seems likely that municipal secondaries were quite infrequent prior to
1961; since then, however, the number and dollar volume has increased
considerably, as shown in the following table:
Secondary Offerings of State
and Local Government Bonds

All offerings
Year and
Quarter

Number

- I
II
III
IV

Amount
($ millions)

Offerings by State and Local
Investment Funds
Amount
Number
($ millions)

62.0
25.0

III
IV

2
2
7
22

13.0
69.7
35.4
211.6

13.0
69.7
25.5
115.3

1963 - I
II

11
20

67.6
161.4

42.9
70.0

1962




H. 14
The rise in the volume of municipal bonds held by investors
such as personal trust funds and property and casualty insurance companies
has been one factor in this development, since this is about the only
method of making large scale portfolio adjustment within a brief period.
Two other factors, however, have probably been even more important. First,
the decline in municipal bond yields since late 1959 has made it feasible
for investors to sell low coupon State and local government bonds and
reinvest the proceeds in higher coupon securities. Second, relatively
recent liberalization in the type of investments authorized for some
larger State and local government retirement and other trust funds,
together with a growing realization that investment in tax-exempt
securities by tax-exempt organizations was not the best way to maximize
income, has resulted in sales of municipal bonds by a number of State
and local trust funds in order to re-invest these proceeds in corporate
bonds and in mortgages.
The single most important example of this latter development is
New York City, which for many years had sold all of its bonds to its
pension funds. New York began selling bonds publicly in the mid-50's,
but not until early last year did it announce a policy of gradually
selling through secondaries a portion of the more than $2.0 billion
of its own bonds held by its retirement funds. Thus far four secondary
sales for $162 million have been made. Retirement funds of the States
of New York and Ohio are other examples of organizations selling municipal
holdings, although in these cases they represent bonds of State and local
governments other than the parent of the trust fund.

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




LONG-TERM

BOND

YIELDS,

HIGH-GRADE

STATE AND LOCAL G O V E R N M E N T A,

Exhibit A

- Part

II
State

Date

Corporate
Aaa

1/

U.

S.

Govt.

long-term

2/

government
Aaa

(per

and

local
3/

Spread
U.

S.

Corporate
Aaa

between

Govt,

and

S t a t e and
local Aaa

cent)

3.55

(5/2)

3 . 0 7 (4/25)

2.64 (5/1)

.22

4.61

(1/29/60)

4 . 4 2 (3/8/60)

3.65 ( 9 / 2 4 / 5 9 )

.59

.92

1960-61 Low

4.21

(3/17/61)

1961

- High

4 . 4 6 (9/35)

1962

- Low

1963

- High

1958

- Low

1959-60

- High

Low

.34

3 . 7 0 (5/12/61)

2.99 ( 9 / 3 / 6 0 )

.19

.46

4 . 0 7 (33/29)

3.37 (7/6)

.57

• 76

4 . 2 3 (12/28)
4.29 (7/26)

3 . 8 5 (12/28)
4.03 (7/12)

2.88 (13/8)
3.11 (7/18)

.30
.35

1.02

4.19

3.87

2.93

(3/29)

4.00

(1/18)

3.10

(3/28)

.21

.22
.21

.80
.90
.90

June

28

4.22

July

5

4.23

July

12

4.24

4.03

3.11

.21

,92

4.27

4.02

3.11

.25

.91

4.00

3.10

.29

.90

J>ily 19
t / J u l y 2 6 £./

4.29

4.02
.
/

3.08

.94

p/
Preliminaxy.
1/ Weekly average of daily figures. Average t e r m of tends inolvded ie 22-24 years*
2/
Weekly average of daily figures. The series include* bonis due or callable in 10 years or n»re«
2/ Thursday figures. Only general obligation bonds are includedi average t e r m is 20 years,
n o t e * — H i g h a and lows a r e f o r Individual series and may be on different dates far different
series, for spreads, high refers to w i d e s t , a n d loir to narrowest.




LONG-TERM

BOND

YIELDS, L O W E R - G R A D E

CORPORATE l e

1951

1959

I960

1963

1961

Exhibit B - Part II

Date

Corporate
Baa 1/

State and
local govt.
Baa 3/

4.51 ( 7 / 1 1 )

3.64

(5/1)

5.36 ( 2 / 1 2 / 6 0 )

4.46

(1/7/60)

Spread between
Aaa and Baa
State and
Corporate
local govt.

(per cent)

3.63 (6/27)
3.52 (5/23)

.77
.84
.66
.81
.63
.71
.55

.93
1.08
.57
.93
.56
.63
.47

3.63
3.60
3.62
3.61
3.57

.62
.62
.60
.57
.55

.53
.52
:51
.50
.47

1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - Low
1963 - High
Low

4.98 ( 9 / 9 / 6 0 )

3,93

5.13 (10/27)

4.16 (3/23)

4.92 ( 1 ^ 2 1 )

3.52

4.93 (1/4)
4.83 (6/14)

June
July
July
July
July

4.84
4.85
4.84
4.84
4.84/

Notes

28
5
12
19
26 £/

F o r footnotes see Exhibit A ,




(u/9/61)
(5/17)

-

.

I XIII Bl I C. Poll I
SHORT- AND

INTERMEDIATE- TERM INTEREST RATES, G O V E R N M E N T

3 - 5 YIAI ISSUIS

3 - MOMIM BILLS
Morktl Yield

MI

i 11 11 i i i i i i i i 11 11 i i 11 i i i i 1 i i i 11 I l 11 M

11 11 I I I 11 II 1 M

I I I I I '

Exhibit C t Part II
Discount!,
rate

1958 - Low
1959-60 High
1960-61 Low
1961-62 High
1962 - Low
1963 - High
Low
June
July
July
-<fuly
July

28
5
12
19
26 £/

1.75
4.00

3.00

3.00

3.00
3.50
3.00
3.00

3.00
3.00
3.50
3.50

3month
bills 2/

.58
4.59
2.11
2.97

Yields
6-month
bills 2/
(per cent)

(5/29)
(3/8/60)
(10/28/60)
(7/13/62)

2.65 (6/8)
3.22 (7/12)
2.88 (3/15)

2.99
3.03
3.22
r/3.19 3.19-

3-5 year
imeues 2/

Spread between yields on 3manth bll 1 * a n A Y l e l d a ° n
bills I ?-": Y r - tasuea

3.02 (l?/26) 2.14 (6/6)
5.07 (3/8/60) 5.00 (1^24/59)
2.35 (4/28/61)3.15 (5/12/61)
3.13 (7/20/62)3.88 (2/2/62)
2.74(6/8)
3.41 (12/28)
3.36 (7/26) 3.80 (7/lv)
2.93 (3/8) 3.44 (1/18)
3.07

3.12
3.34
3.36
3.36

3.67
3.72
3.80
3.80
3.79

.26
.79

.12
.44

.02

.04

1.81
.38
1.51
.52

.17
.04

.70
.52

.08

.68

.09

.12

r/.17
" .17

.69
.58
:61

.60

tsars'—




SHORT-

AND

BANKS AND

INTERMEDIATE- TERM INTEREST RATES,
OTHER

PRIVATE B O R R O W E R S

STOCK EXCHANGE
C A l l LOANS

FINANCE C O M P A N Y PAPER
3 - 6 Months

P R I M E RATE

If \ j

F . R . D I S C O U N T RATE

FEDERAL F U N D S

I I I II II I

Exhibit D

Date

Stock Exchange
call

loan

V

. Prime
rate
(per

1958

- Low

1959-60

- High

1960-61 Low
1961-62

- High

1 9 6 2 -< L o w
1963

- Part

II

Finance company
1/

paper

2/

Federal
funds

3/

Spread between
3-mo.

bills

finance

3.50

3.50

1 . 1 3 (8/8)

(5/29)

-.35

5.50

5.00

5 . 1 3 (1/22/60)

4.00

(5/13/60)

1.02

4.50

4.50

2.50(8/5/61)

.43

(3/27/61)

.11

4.50

4.50

3 . 2 5 (7/20/62)

3-00

(12/28/62)

.56

4.50

4.50

1.30
3.15

(V26)
(7/19)

.36

2.45

(7/26)

.09

- High

4.50

4.50

2 . 8 8 (6/1)
3.38 (7/26)

Low

4.50

4.50

3.13

(5/31)

.13

June

28

4.50

4.50

3.25

2.95

.26

5

4.50

4.50

3.30

3.00

.27

4.50

4.50

3.34

2.97

.12

July

19

4.50

4.50

3.38

3.15

.19

July

2 6 j)/

4.50

4.50

3.38

2.45

.19

12

l7

and
paper

.19

July
July

co.

cent)

Weekly rate shewn is that in effect at end of period. Stock Exchange c a l l loan rate io going rate
on oall loans secured by customers' stock exchange • collate ral at N e w Y o r k City hanks.. Prime' rate
is that charged hy large banks on short-* erm loans to hi sine ss borrowers of t h e highest credit
standing.
2/ Average of d a i l y rates published by finance companies f o r directly placed psper f o r varying maturities
in t h e 90-179 day range*
3/ Weekly average of daily effective r a t e , w h i c h is the rate for the heaviest 'volume of purchase and
sale t ransactions as reported to the Federal Reserve Bank of N e w Y o r k .
N o t e . — H i g h s a n d lows a r e for individual series and m a y be on different dates f o r different series.
For spreads, high refers to w i d e s t , and ltsr to narrowest#




STOCK MARKET

1151

1160

1961

Exhibit E

Common .
Stock price

Date

index V

1961

1963

- Part II

stock
yields 2/

Stock market customer credit
Trading
Customers'
Bank
v o l u m e 3/
l o a n s to
Total
debit bal" o t h e r s " 5/
ances 4/

(millions
(per c e n t ) of shares)

(In m i l l i o n s of d o l l a r s )
1961-62 - High
Low
1963

- High
Low

May
J u l y 12
J u l y 19
J u l y 26 £ /

72.04(12/8/61)
5 2 . 6 8 (6/22/62)

2.82
3.96

10.1
2.4

5,602(12/61)4,259 (12/61)1,377(8/30/61)

70.80 (5/31)

3.13

5.5

4,876(7/62) 3 , 5 6 2 (7/62) 1,269(9/26/62)
6,420(6/63)4,898 (6/63)1,524 (7/17)

64.10

3.36

3.2

5,595(1/63)4,208

3.13
3.16
3.18

4.8
4.5
3.7

6,420

4,898

1,492
1,522

11# 3 *

lie 3 #

1,522

3.25
3.24

3.5
3.2

n« a«

tie 3 e

1,524

rua.

n.3.

n . a.

(3/1)

70.14
70.11
69.64
68.35
68.54

6,229

4,737

(1/63)1,378

(2/23)

n.a.-~Not aval labia, jg/ Preliminary#
1/ 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.
2j Standard and Poor's composite stock yield based on Wednesday data converted t o weekly closing
prices by Federal Reserve. Yields shewn are for dates on which pzioe index reached its hijjh
3/
%J
5/

Averages of daily trading volume on the N e w York Stock Exchange,
End of month figures for member films of ihe New York Stock Exchange Which oarxy margin accounts;
excludes balances secured by U. S. G o v e m m n b obligations.
Wednesday figures for weekly reporting member banks. Excludes loans f o r purchasing or o arrylng
U. S. Government securities. Prior to July 1, 1959, such loans are excluded only at banks in
New York and Chicago. Weekly reporting banks account for about 70 per cent of loans to others.
For further detail see Bulletin.
,




MORTGAGE

RECORDINGS

AND

LOANS
B i l l i o n s of doII o

I ^

\
\ J
v'

\

V

1959

I960

/

Seasonally
Adjusted
3 mo. a v g.

1961

1962

1963

Exhibit F - Part II

-

Unadlusted
Average size of
recordings
Other
VA
Unadjusted
FHA
(1959 = 100) 3/
(Millions of dollars)

Total
Date

1962 - May

Seasonally
adjusted 2J

2,,836
,891
2.,973
2. ,933
2. ,929
2, ,925
2, ,939
2.,916
2.,876
2.,869
2 j,907
2.,986
2.

July
Aug.
Sept
Oct.
Nov.
Dec.
1963 - Jan.
Feb.
Mar.
Apr.
May

2 ,983
3.,075
3 ,134
3.,333
2,,861
3 ,208
2.,883
2. ,682
2,,658
2.,424
2. ,751
3.,065
3.,233

403
404
433
465
431
546
492
429
504
400
416
392
415

184
207
219
247
231
285
254
236
254
202
219
245
260

2,,397
2,,464
2,,482
2|,621
2.,199
2:,376
2.,137
2!,017
1.,900
1.,822
2.,116
2!,428
2!,558

107..8
109.,7
109.,4
109..7
109.,3
109.,6
109.,7
110..2
109..8
108..7
110..4
110.,6
111.,7

xu&.—-Not available#
„
, . . ,
1/ T o t a l recordings d a t a are estimates based on reports f r o m about 4 5 0 areas and include
mortgages of $20,000 o r less secured by nonfara real estate, primarily residential
properties. FBA-insured loans represent gross amount of insurance written, a n d V A guaranteed loans the gross amount o f loans closed, on 1-4 family houses. Other recordings
data are derived a s a residual, although t o t a l recordings art V A and 7HA loans are not
strictly comparable in concept o r t i m i n g ,
2 / Three-ncnth moving a v e r a g e , seasonally adjusted by Federal Reserve.
"3/ This i n d e x relates t h e average size of mortgage recordings for each month (total d o l l a r
recordings divided by n u m b e r of mortgage recordings) to the average size during 1959.
S o u r c e . — F e d e r a l H o m e Loan Bank Board, Federal Housing Administration a n d Veterans Administration.




YIELDS O N

NEW

AND

SEASONED

CORPORATE BONDS

NEW ISSUES

SEASONED A e o

Exhibit 6 - Part II
Yields on Hew Corporate Bond Issues Adjusted to an Aaa baais
Number Ain't of issues Average
yield
included (mil,
of
(per cent)
issues of dollars)

Number Am't of issues Average
yield
included (mil.
of
(per cent)
issues of dollars)
Weekly averages:
1963 - Feb: 1
8
15
22
Mar. 1
15
22
29
Apr. 5
12
19
26

25.0
64.0

4.21

100.0

4.19
4.14
4.25*
4.16
4.16
4.36*
4.23
4.18
4.28
4.30

12.0
55.0
24.4
. 87.0
222.0
45.0

6.0

95.0
128.0




4.27*

3
10
17
24
31
7
14
21
28
July 5
12
19 •
26
May

25.0
266.0
30.0
76.0

4.22

50.0
34.0
115.0
46.5

4.23*
4.25
4.24
4.25

80.0
25 i0
58.0

4.30*
4.43*
4.31

4.31*
4.27
4.27

Exhibit H

H. 14

Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New capital
Corporate 1/
1962
I
1963

1961

1963

State and local 2/
I
1962
1
1961

613
594
1,144

592
859
807

580
667
562

R/732
2/726
jo/ 973

876
1 ,133
628

711
689
764

April
May
June

2/915
2/924
e/1,100

1 ,113
760
1 ,132

2,118
1,259
1,318

2/846
e/850
e/850

873
912
786

722
640
L ,034

July
August
September

e/

582
749
579

1,028
762
647

e/500

612
544
427

486
604
734

835
703
1:,103

1,090
948
1,000

650
578
550

679
789
610

2 ,258
3:,005
1,,910
2,,641

1,809
4,695
2,437
3,038

E/2,431
e/2,546

2 ,637
2,,571
1 :,582
1.,779

2.,165
2,,396
l!,824
2,,078

5 ,264
7.,173
9.,814

6,504
8,941
11,979

e/4,977.

5 ,208
6 ,790
8 ,568

4.,561
6,,385
8 :,463

January
February

650

October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

2,351
e./ 2 ,9 3 9

e/5,290

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

quarter
quarter
quarter
quarter

2,284
e/2,639

Year

e/
1/
2/
37

2.,199
2 :,919
1.,775
2.,410

1,554
4,552
2,337
2,807

91,303

11,253

Estimated by Federal Reserve.
£/ Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
TStal new capital issues excluding offerings of sales and consumer finance
companies.




5
New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

Gross proceeds for new
capital and refunding 1/
Common
Publicly - Privately
arid
offered
offered
pfd.
stock

Quarter

Net proceeds for
new capital 1/ 2/
Memo:
foreign
issues
included

Mfg.

Public Communiutil
cations

1960 - IV

2,832

1,462

955

416

17

625

696

381

997

1961 - I
II
III
IV

1,992
5,352
2,566
3,236

662
2,303
772
967

880
1,275
1,139
1,424

449
1,774
654
845

76
155
69
62

515
1,466
935
792

381
1,081
595
836

81
1,095
104
147

832
1,052
803
1,263

1962 - I
II
III
IV

2,378
3,250
2,184
2,957

1,155
1,389
853
1,089

716
1,222
1,024
1,568

507
639
307
300

68
257
56
179

655
996
601
769

430
983
375
568

456
231
275
321

717
794
659
986

1963 - I
II e/
III

2,700
3,750

1,108
1,385

1,306
1,986

287
378

128

947
714

326
796

236
181

842
1,248

1961 - Oct.
Nov.
Dec.

1,155
987
1,094

336
414
217

509
348
567

310
225
310

25
12
25

271
215
306

306
362
168

25
80
42

1962 - Jan.
Feb.
Mar.
Apr.
May

647
884
847
1,217
801
1,232
630
922
632
976
784
1,197

273
497
386
654
247
488
200
477
176
539
286
264

232
232
253
227
420
575
366
363
295
314
446
808

143
155
209
336
134
169
67
82
161
123
52
125

3
12
54
10
147
100
13

205
131
318
384
270
342
217
218
166
153
271
345

89
148
193
377
196
410
118
110
148
141
175
. 252

695
642
1,363
1,067
1,363
1,320

350
259
499
380
550
455

243
289
774
468
718
800

102
94
91
218
95
, 65

25
43
60
59
183

135
220
592
155
234
325

114
115
97
363
233
200

July
Aug.
Sept.
Oct.
Nov.
Dec.
1963 •
- Jan.
Feb.
Mar.
Apr.&/
May £/
June e/

43
46
34
99

-

73
362
21
88
64
79
88 .
120
67
260
4
57

225
218
275
264
229
301
159
301
199
282
253
451

125
68
43
72
84
25

238
191
412
325
373
550

.

£./ Preliminary.
e/ Estimated by Federal Reserve.
1/ Gross proceeds exceed
net proceeds by the cost of flotation. 2/ For total see Exhibit H; other issuers
are extractive, railroad and other transportation, real estate and finance and
commercial
and other. Source.—Securities and Exchange Commission.




487
291
485

Other Security Offerings
(In millions of dollars)

1963

February
March
April
May

Gross long-term 1/
Foreign government 2/
Federal-agency 3/
1962
1962
1961
1963
1961
X

232
133
76
£/ 57
2/H4

e/ 10
July
Angust
September
October .

6
29
20
.

e/622

2

66
29
5
2

JB-

Year
Jan.-June

142
10
35
10
86
50
25
31
151
88
101

43
34

737

236

333

152

148
2/186
£/ —
e/460

246
156
461

150
175

252
100
149
2/8
250
193
225

1,188
e/794

863

1,448
779

Net Short-term 4/
St-afp. and

January
February
March
April
May

75
272
-367
589
E/-151

July
Angust
September
October
November
December
Year
Jan."June

n.a.

local

government

.160
195
-8
-103
-42
-155
109
518
-86
-6
54
-116

378

520

223

47

p/
1/

Federal agency

S/

18
466
-186
127
-84
-118
78
339
-406
71
234
-161

-106
-189
-482
292
&/380
2/275

170

247
-156
226
-364
82
284
261
227
-157
379
55
-80

1L.
-144
-162
-174
-79
-87
207
22
193
108
98
56
-114

1,004

-76

319

-439

Preliminary.
e/ Estimated by Federal Reserve.
n.a.--Not available.
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 United States by foreign governments and their
political subdivisions and international organizations. Source: Securities and
Exchange Commission.
3/ Issues not guaranteed by the U. S. Government. Source: long-term, Securities and
Exchange Commission; short-term, Treasury Department and Federal Reserve.
4/ These data differ from those in Exhibit H and above in that they represent new
offerings less retirements, whether from the proceeds of 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-Authority notes. In some instances PHA notes included may have a somehttp://fraser.stlouisfed.org/
what longier maturity than one year. Source: Bond Buyer and Federal Reserve.

Federal Reserve Bank of St. Louis

Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) If
Proceeds of Large Issues Offered
(In millions of dollars)

Month

Total

1962 - June
July
August
September
October
November
December
1963 - January
February
March
April
May
June

Corporate
Bonds
(Other than
Convertible
convertibles)
bonds

472
165
286
191
434
178
198
234
186
394
409
149
348

__

387
135
226
100
398
178
178
215
125
372
263
149
348

Stocks

State
and
local
government

60
91
36
20
19
26
22
146

35

30
20

266
321
272
153
320
217
193
344
367
570
431
489
472

85
30

• --

—

Other 2/

194
25
75
48
63
134
43
460

Large Individual Issues Offered July 1 through 26

Issuer

CORPORATE
^Pacific Northwest Bell Tel .Co.
Northern Natural Gas Co.
Illinois Bell Tel. Co.
Hitachi, Ltd.
Burroughs Corp.
Eaton Mfg. Co.
Northern 111. Gas Co.
STATE AND LOCAL GOVT.
New York State Dormitory Auth.
Memphis, Tennessee
Penna. Gen. State Authority
Racine Sturtevant etc. Unif.
S.D. #1, Wisconsin
Univ. System Bldg. Auth. of Ga.
State of Connecticut
Dallas, Tex.
New York City, N.Y.
OTHER
Milan, Italy
United Mexican States

Type 3/

Amount
(millions
of
dollars)

Maturity

Coupon
rate or net Offering
yield
interest
cost

Rating

. stk.
S.F,, deb.
1st mtg. bds.
Qom.. stk.
Deb.
Deb.
1st mtg. bds.

20 .0
30,.0
50..0
20.,9
25..0
25..0
20..0

1983
2003

4-3/8
4-3/8

4,,40
4.36

A

1988
1988
1988

4-1/2
4-3/8
4-3/8

4.,53
4.,40
4.35

A
A
Aa

Rev. -Rent
G.O.
Rev. -Rent

22.,5
10.,0
50. 0

1965-95
1964-88
1966-90

3.38
3.03
3.32

2. 00-3.. 5 0 ^ A
1. 75-3..25" A
2. 10-3.,50

G.O.
Rev. -Rent.
G.O.
Rev. -Ut.
G.O.

10. 6
20. 0
49. 0
13. 8
103. 0

1964-83
1964-89
1964-83
1964-83
1964-83

3.05
3.39
2.85
2.96
2.94

1. 75-3.,25
1. 85-3.,50
1. 80-3.,05,,
2. 75-3,,ioi/
2. 94-3.,30

Bonds
Bonds
bonds

20.,0
15..0
25.,0

1978
1966-68
1978

5-1/2
6
6-3/4

5. 63
6. 00
7. 00


S.F.


A
A
Aaa
Aa
A
--

H. 14

,

K-2
Footnotes

*--Rights offering.
n.a.—Not available.
1/ Includes corporate and other security offerings of $15 million and over; State and
local government 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
obligations; Rev.-Ut., revenue obligations secured only by income from public
utilities; Rev.-Q.Ut., revenue bonds secured only by revenue from quasi-utilities;
Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent.,
revenue bonds secured solely by lease payments.
4/ 1/10 per cent bonds maturing 1993-95 reoffered to yield 4.40 per cent.
5/ 1/10 per cent bonds maturing 1987-88 reoffered to yield 4.30 per cent.
6/ Bonds due 1964-73 not publicly reoffered.




'

17

Exhibit L

^

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S, Treasury) 1/
Expected Proceeds from Forthcoming Large Issues

Date of
computation
1962 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1963 - Jan.
Feb.
Mar.
Apr.
May
June

During month following
da te shown
State and
Corporate
local govt.

29
31
31
28
1
31 I
30
28
31
28
29
30
31
28

202
273
61
187
96
194
177
376
458
381
447
255
142

120
302
170
363
203
170
269
167
142
376
149
223
170

Other 2J

Corporate

Subsequent to
date shown
State and
local govt.
377
427
215
387
243
328
311
843
755
763
599
582
287

458
477
312
546
328
360
314
412
572
421
234
288
215

175

75
25
-~
— •=

45
40
460
75

Other 2/
25
175

75
25
33
45
40
460
75

Forthcoming Large Offerings, as of July 26

Issuer

Pacific Power & Light Co.
Burroughs Corp.
Minneapolis Honeywell Reg. Co.
Indiana & Michigan Elec. Co.
United Aircraft Corp.
*Lone Star Gas Co.
*Commercial Credit Co.
New England Tel. & Tel. Co.

Type

Amount
(millions of
. dollars)

S.F. deb.
Com. stk.
S.F. deb.
1st mtg. bds.
Deb.
Deb.
Notes
Com. stk.

30.0
17.6
30.0
45.0
43.0
35.0
50.0
31.0

Approximate date
of offering

July 31
August 5 (rights expire)
August 7
Augus t 7
August 20 (rights expire)
August 28
August
September (rights expire)

STATE AND LOCAL GOVERNMENT
State of New Hampshire
Phoenix, Arizona
State of California
*New York City Transit Auth.




G.O.
Rev.-Ut.
G.O.
Rev.-Q.Ut.

23.6
12.0
100.0
39.0

August
August
August
August

1
6
7
7

L-2

H. 14

Forthcoming Large Offerings, as of July 26 (Cont'd)

Type

Amount
(millions of
dollars)

X

Approximate date of
1,
offering
V

STATE AND LOCAL GOVERNMENT (Cont'd)
^Southern Illinois University
Public Housing Auth.
Alexandria, La.
Pittsburgh, Pa.
Jefferson County, Colorado
Dade County, Florida
Jacksonville Expressway Auth., Fla.

Rev.-Q.Ut.
--

Rev.-Ut.
G.O.
G.O.
G.O.
Rev.-Ut.

11.3
116.2
11.4
35.0
12.9
46.0
40.0

August 13
August 14
August 20 .
Indefinite
Indefinite
Indefinite
Indefinite

OTHER
Nippon Tel. & Tel. Public Corp.

',*•
!•
'

Bonds

20.0

August 1

^--Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and local
government issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal agencies.
Note.--Deletions for reasons other than sale of issue: None.




i
u.^
., ?

,

'>
£
' 4 #

Exhibit H
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:

Sale
Date

Amount
(millions of
dollars)

5/1

27.5

Issuer and Description of Issue
A.

;

5/22

15.0

6/12

10.0

7/10

20.0

7/10
7/17

20.9
25.0

7/17

15.0

20.0

Sold May I through July 26

Government of Japan—5-1/2% bonds, due 1980--reoffered to
yield 5.717,
<
Copenhagen, Denmark—5-3/8% bonds, due 1978—reoffered to
yield 5.55%
Oslo, Norway--5-1/4% bonds, due 1978--reoffered to yield
5,47%
Milan, Italy—5-1/2% bonds, due 1978--rafffered to yield
5.63%
Hitachi, Ltd.--Common stock
United Mexican States--6-3/4% sinking fund bonds, due
1978--reoffered to yield 7.00%
United Mexican States--6% bonds due 1966-68—reoffered
to yield 6.00%

B.

8/1

Public Offerings

Prospective Offerings

Nippon Tel. & Tel. Public Corp.--bonds




H. 14

M-2

Part II;

Date
reported

Private Placements--Reported May i through July-o

Amount
(millions
of dollars)

5/1

50 -0

5/2

10 .0

5/6

20,0

5/14

16 .3

6/4

18,: 0

6/13

15.0

6/20

13, 5

6/25

12..5

6/28

10, 0

6/28

5-.0

V18

26. 0

'/18

4, 0

Issuer and Description of Issue

Bell Telephone Company of Canada--4-7/8% first mortgage
bonds. maturing 1988--no information available on takedown
Laurentidt Financial Corp.--5% senior notes, maturing
1978--no information available on takedown
Province of Ontario--4% debentures, maturing 1966-69-no information available on takedown
Delta Acceptance Corp,, Ltd,--notes, maturing 1975--no
information available on takedown
Consolidated Gold Fields of South Africa, Ltd,--promissory
notts. ma w r i n g 1971 - -no information available on takedown
Nippon Express Cc,--6-1/2% convertible debentures, maturing
1978 - -no information available on takedown
Mitsubishi Electric Ccrp--6-1/2% convertible debentures,
maturing 1978--no information available on takedown.
Quebec Natural Gas Corp---5-1/2% first mortgage bonds, maturing
1987--no information available oh takedown,
Farbwerke Hoechst A,G=--5% promissory notes, maturing 1968--no
information available on takedown.
Dai Nippon Printing Co. Ltd,--convertible debentures, maturing
1978--no information available on takedown.
laui* ic
1
L-1 c*. - -i/l::
."-.J rvV.s , natv.ring 1978-Cv/..c.\-ag ...

: V '

v

: ark- : -1/ / ' v/cv.rnal notes ,

Note: For retrospective data on aggregate foreign corporate and government
security offerings in the United States see Exhibits I and J, There is no simple
relationship between the data shown in this Exhibit and that shown in Exhibits I
and J because the latter includes privately placed securities in the period in
which funds are actually takendown 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 t a k e d o w n s F u l l or partial
takedowns may take place both prior and subsequent to the date a placement
is reported, *--Included in table for first time-