Full text of H.16 Capital Market Developments : July 6, 1964

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Not for Publication.
AFTER SIX MONTHS
July 6, 1964.

H.l
[£TAL MARKET. DEVELOPMENTS
IN THE UNITED STATES
-(Including! Review of Capital Markets in June)

Security financing. The total amount of corporate and
State and local government securities to be offered publicly this week
will be substantially larger than last week's seasonally small volume.
Sold last week, but not included in the table below, were $265 million
in 20-month bonds of the Federal Home Loan Banks.
Long-Term Public Security Offerings 1/

(In millions of dollars)

Corporate
Refunding
New Capital

State and local govt.
New Capital [ Refunding

June
July

26
3

134 r/
3

180 r/
79

July

10

144

118

1/ Federal Reserve estimates based on published reports of issues sold
and scheduled for offering; corporate rights offerings are included
as of the date subscription rights expire, r/ Revised.
Security yields. Rates on 3-month Treasury bills edged up
last week, but yields on most other high-grade securities eased, with
those on long-term Government bonds and on 6-month Treasury bills
reaching their lowest levels since late last year.
Yields in Securities Markets
Level latest week
(per cent)

Change from
preceding week
(basis points)

High-Grade
Notes and Bends
Corporate
Seasoned

4.40

- 1

U.S. Govt.
Long-term
3-5 year

4.11
4.00

- 2

- 1

State and local govt.
Money Market
Federal Funds
Treasury bills
3-month
6-month
Finance Company Paper




3.50
3.48
3.52
3.88

+ 1
- 1

H. 14

-2-

Stock prices. Common stock prices, as measured by Standard
and Poor's composite index of 500 stocks, rose 1.4 per cent further
last week to an all-time high of 82.60 on July 3. Trading volume
averaged 4.8 million shares a day, 0.2 million shares above the
average for the previous week.
Capital Markets in June. Corporate security financing to
obtain new capital probably aggregated $1.4 billion in June, threetenths larger than the average for June of the two previous years.
Roughly one-half of this year's June total consisted of private
placements, reflecting the large takedowns that usually occur at
this time of year, and another $200 million was accounted for by
the Communications Satellite Corporation common stock offering. At
the same time, however, public bond offerings were only slightly
smaller than in May, when public offerings reached their largest
volume of the year.
With the summer calendar of public bond offerings expected
to be quite light after June, underwriters bid aggressively for the
June supply of new issues. By the end of the month the average yield
on new bond offerings had dropped four basis points to 4.41 per cent,
12 basis points below their early May peak but still 11 basis points
above their February low. Although underwriters had some initial
difficulty in distributing new issues acquired through competition
bidding, with each drop in reoffering yields on the latest new issues,
distribution of earlier offerings picked up sharply. Moreover,
securities acquired by underwriter's through negotiation with issuers
(including $150 million of GMAC debentures) were quickly distributed.
As the month progressed, unsold inventories of new issues still
in syndicate dropped from.a high level of more than $100 million to
about $30 million at the month-end.
Bond sales of State and local governments to obtain new
capital amounted to $0.8 million in June, one-third more than in May
and one-tenth larger than the average for June of the two previous
years. Largely as a result of this growth in supply and of the
continuing large overhand of inventories, yields on Aaa-rated municipals rose to 3,11 per cent in the early weeks of the month, up four
basis points from their late May low. Thereafter, the Aaa series
remained unchanged. As yields edged upward early in the month, investor reception of new issues improved, and was reinforced at midmonth by the quick sell-out of the $120 million Public Housing issue.
Nevertheless, with offerings remaining large, dealers' advertised
inventories of unsold securities continued around $600 million
throughout the month.
After declining moderately further in early June, common
stock prices (as measured by Standard and Poor's composite index of
500 stocks) rose sharply during the remainder of the month, eliminating
their late May-early-June losses and rising to a new all-time high.




H. 14
At 81.69 on June -30, prices were almost three per cent above the early
June low and over one-half of a per cent above the previous high
reached around mid-Hay. Trading volume fell to an average of 4.0
million shares a day early in the month, but went up to 4.5 million
shares a day in the last half of the month.
Estimated July security volume. Corporate security financing
is expected to decline seasonally in July, but municipal bond financing
will probably rise contraseasonally.
New capital financing of corporations is estimated to total
$0.8 billion this month, over two-fifths less than a month earlier
when takedowns of private placements were seasonally large, but onesixth more than a year earlier. Large issues currently scheduled
for public offering amount to $292 million, including stock.
State and local government bond sales to obtain new capital
are expected to total $0.9 billion in July, one-eighth larger than a
month earlier and two-fifths greater than the July average for the
two previous years.

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




ixiTuu A. r«ri ii
L O N O - T H M > O W P Y f IPS, H I O H - O t A D I

"±H

f\J

Exhibit A - Part II

Date

Corporate
Aaa y

U.S. Govt*
long-term 2/

State and
looal
government
Aaa 2/

Spread between
U. S. Govt, and
Corporate State and
Aae
local Aaa

(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
1964 - High
Low
June 5
June 12
June 19
June 26
•-July 3 £/

11.61(1/29/60)
14.146(9/15}
14.21(3/17)
h.h3{2/i&)
14.23(13/2*
14.37(22/27)
14.19(3/29)
4.41(6/26)
4.35(2/28)

4.1*2 (1/8/60)
14.07 (12/29)
3.70(3/12)
14.12(2/23)
3.85(13/28)
14.16(12/57)
3.87 (1/18)
4.20(4/17)
4.11(7/3)

3.65 (9/24/59)
3.37 (7/6)
3.12 (2/23)
3.26(1/4)
2.88 (ll/a)
3.18 f 11/21)
2.93 (3/28)
3.16(3/26)
3.07(5/21)

.1*7
.30
.35
.21
.29
.19

.92
.76
.1*6
l.OU
.80
1.05
.88
1.09
1.01

4.41
4.41
4.41
4.41
4.40^

4.15
4.14
4.13
4.12
4.11

3.08
3.10
3.11
3.11
3.10

.26
.27
.28
.29
.29

1.07
1.04
1.02
1.01
1.01

p/

•59
•57

j j Weekly average of daily figures# Average term of bonds Included is 22-24 years,
y weekly average of daily figures. The series includes bonds due or callable in 10 years or e s n ,
3 / Thursday figures. Only general obligation bonds are included* average term is 20 years,
Hote,—Highs and lews are for individual series and may be on different dates for different
series, for spreads, high refers to widest, and lew to narrowest*




EXHIBIT B,
LONG-TERM BONO YIELDS^LOWER-GRADI

Exhibit B - Part II

Date

Corporate
Baa 1/

State and
local govt.
Baa 3/

Spread be1bween
Aaa and Baa
State and
Corporate
local govt.

(per cent)
1959-60 - High
1961 - High.
Low
1962 - High
Low
1963 - High
- Low
196U - High
Low
June
5
June 12
June 19
June 26
. July
3 2/
Note*

5.3^(2/1^60)
5.13(10/27)
5.00(4/21)
5.11(1/5)
u. 92 (12/21)
U.93(V4)
U. 83 (11/15)
4.87(6/26)
4.82(2/7;

U.U6(Wco)
4.16(3/23)
3.93(U/9)
U.oU(Vu)
3.52(5/17)
3.63(6/27)
3.52(5/23)
3.58(3/26)
3.51(4/16)

.8U
.81
.66
.7U
.63
.71
.ltd
.48
.43

1.08
.93
.57
.82
.56
.63
- .1*U
.49
.36

4.85
4.85
4.86
4.87
4.86^

3.53
3.54
3.54
3.55
3.55

.44
.44
.45
.46
.46

.45
.44
.43
.44
.45

Tor footnotes see Exhibit 1#




1
E X H I B I T C, f o r t I
SHORT- AND

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

Weekly

V
\\A

'•»

4-MONTH III
Mork.l Yl.l

M
W v A
r "

m

I

&

1

J f

li-NONTH lllu
Moik.l Vl.ldi

i

11111111111
mo

„

1 1 1 1 1 1 1 1 1 11 11 1 1 1 1 1 1 1 11 11 1 1 1 1 1 1 1 1 111 1 1 1 1 1 1 1 1
" mi
Mil
"Tinm«
Exhibit C - Part II

Yields

Discount
rate
u

3-month
bills 2/

6-month
bills 2/

3-5 year
issues 2/

Spread between yields on 3 month bills and yields on
|6-mo. bills|3-5 y r . i s s u e s ^

I

1959-60 - High

:

1961 - High

U.00
3.00

3.15(5/12)

2.97(7/13)

3.13(7/20)

3.88(2/2)

.21*

1.19

2.65(6/8)

2.7U6/8)

.02

3.50

3.55(11/13)
2.88(3/15)

3.68(13/6)
2.93(3/8)

3.14(12/28)
U . 0 7 (12/27)

196U - High
Low

3.50
3.50

3.56(3/6)

3.74(3/6)

3.1ili(i/ifl)
4.23(3/27)

.17
.01*
,21

.52
.70
.1*2
.71

3.45(5/1)

3.52(7/3)

3.99(2/7)

.04

.48

June

Low
1962 - High
low
1963 - High
Low

3.00
3.00

3.00
3.00

8

2.35(4/^8)

.79
.1*1*
.12

1.81

2.1? ( V 2 7 )

i
|

I

(per c e n t )

3.86(8/11)

.10
.10

1.51
.92

.58

3.57

4.05

June

12

]

June

19

3.50
3.50
3.50

3.47

!

3.47
3.49

3.57
3.58

.09

.57
.55

!

June

26

3.50^

3.47

3.53

4.04
4.04
4.02

.06

.55

3.50

3.48/^

3.52

4.00

.04

.52

' ^July

5

3 2/

.

Weekly rate shown i s that i n effect at end of period at the Federal Reserve
of Mew York,
Market yield} weekly averages competed from daily closing bid prices. Series of 3 - 5 year issues
consists of selected notes and bonds*
Hote,—flighs and lews are for Individual eerie8 and m y

b# on different dates for different series*

T o r spreads, high refers to widest, and lew to narrowest*




S H O R T - A N D I N T E R M E D I A T E - TERM INTEREST B A T E S ,
BANKS AND

OTHER PRIVATE B O R R O W E R S

Weekly

_L

Av^

Exhibit D - Part II
Stock exchange Prime
call loan l/
rate 1/

Finance company
paper 2/

(per cent)
1959-60High
1961 - High
1962 - High
Low
1963 - High
Low
196b - High
Low

5.5d
U.5o
U.50
a . 50
U.5o
U.5o
L.5o
4.50
4.50

5.00
u.50
U.5o
U.50
u.50
U.5o
U.5o
4.50
4.50

June
5
June 12
June 19
June 26
July
3 £/

4.50
4.50
4.50
4.50
4.50

4.50
4.50
4.50
4.50
4.50

*

{

r

K

l

K

^

r

^

4




b y

flnan0e

1.02

3.13(5/31)
3.93(4/3)
3.75(5/22)

U.00 (5/13/60)
2.90 (11/37)
.U3 (3/27)
3.00 (12/28)
1.30 (3/26)
3.50 (12/27)
2 . 1 5 (7/26)
3.50(7/3)
3,20(3/6)

3.88
3.88
3.88
3.88
3.88

3.50
3.50
3.50
3.50
3.50

.41
.41
.39
.41
.40

5.13(V2?/60)
3.00(12/30)
2.50(8/5)
3.25(7/21)
2.88(6A)
3.88(12/27)

.56

.11

•U5
.19
.39

.12
-41
122

' o p directly placed paper for rarylnj maturifie.

EXHIBIT I . f o r t I

STOCK MARKET

/

SIOCI MAIUI CII6IT
Million# at « K o m

VOIUMI

I
/ V r v

|

I
YlllDS
^

—

1

V
1 1 1 1 1 1 1 1 1 1 1 1 1 1 I I 1 1 I1I 11 11-11 1 1 I I1 I > 1
• Mil

m T

1141

MM

11*1

Exhibit S - Part II

Common
Stock price

Date

i n d e x 1/

stock
yields 2/

S t o c k m a :pket c u s t o m s ]

Trading

Customers'

volume 2 /
(millions

Total

(per c e n t ) of s h a r e s )

debit balances k /

credit
Bank
l o a n s to
"others" 5 /

(In millions o f dollars)
1961-62 - High
Low
1963 - High

?2.0Ufl2/a/61)
52.68(6/22/62)

2.80
3,96

10.1
2.U

7U.UU(i2/2^

3.01

6.5

196U - High

82.60(7/3)

2.97

6.1

7,314(4)

5,524(1)

1,859(6/24)

75.50(1/3)

3.10

4.0

7,120(2)

5,366(3)

1,720(1/22)

3.01

5.0

7,277

5,439

80.89

3.05
3.03

4.4
4.6

81.46

3.01

4.6

82.60

2.97

4.8

Low
May

80.72
80.24
19
26

July

3

B

/

5,602(12/61)1*,259(12/61) 1,^18(5/9/62)
U,U2l|(l/61) 3 , 2 5 3 ( 3 / 6 1 )
1,161(3/8/61)
7,298(13/63)5,586(11/63) l,738(i?/25)

1,838
1,859
1,852
1,859

rua.

n.a.

3/ Standard and Poor*s composite Index of 5 0 0 ooroon stocks, weekly closing price a, 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 00 w h i c h price index .reached its high.
3/
4/
5/

Averages of daily trading volume on the New York Stock Exchange.
End of month figures for member firms of the N e w York Stock Exchange which carry margin accounts;
excludes balances secured by U . S. Government obligations.
Wednesday figures for weekly reporting member banks. Excludes loans for purchasing o r carrying
U . S. Government securities. Weekly reporting banks account for about 7 0 p e r cent of loans to
others. For further detail see Bulletin*




M O R T G A G E A N D B O N D YIELDS

Exhibit F

Date

1956 - Low
1957 - High
1958 - Low
1959-60- High
1961-64- High
Low
1964 - March
April
May

Part II

Conven- Spread be- Aaa Corporate
tional tween yields
on conv. &
gages
25-year FHA Nevr^ Seasoned—^
25-vear 30-vear 3/
mortgages
FHA
mortgages

4.68
5.63
5.35
6.24
5.72
5.43
5.44
5.44
5.44

--

5.70
5.45
5.45
5.45
5.45

....

5.20
6.00
5.55
6.30
5.95
5.80
5.80
5.80
5.80

.47
.47
.15
.23
.38
.23
.36
.36
.36

3.08
4.94
3.65
5.25
4.72
4.12
4.43
4.48
4.46
4.43

3.08
4.12
3.57
4.61
4.45
4.22
4.38
4.40
4.41
4.41

Spread between
yields on new corporaLe DOIiuti auu
25-year Seasoned
FHA mtgs. bonds
.76
1.58
.88
1.69
1.50
.94
1.01
.96
.98

1.03
.05
.73
.39
-. 16
.05
.08
.05
.02

Neither mortgage nor bond yield* take into account serrioing ooats which are maoh higher for mortgage#
than bonds. Generally, bonds pay Interest semi-annually* mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the
2/

Based on T&A-fleld-offioe opinions about average bid prices in the private secondary market for newborns mortgages for immediate delivery* Separate data available for 25-year and—begin! ng July 1 9 6 L —
30-year mortgages with minimum downpayments, 'weighted by probable volume of transactions. Yields oooputed by IHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year
mortgages. Over the period for ifolch they can be compared, the movement of the two mortgage yield
series has been similar. Dashed lines indicate periods of adjustment to changes in contractual interest

3/

Based on FHA field office opinion on typical interest rates (rounded) on conventional first mortgagee
prevailing in the market areas of insuring office cities. Beginning with April 1960, rate relates only
to new-home mortgages; prior t o that date, rate related to both new as iell as existing-home mortgages.
Dashed line indicates this change in the series.
See note for Exhibit G.
Moody's Investor Service, Monthly averages of daily data. See Exhibit A .


4/
5/


EXHIBIT Q. r , , r 1
XIELDS

ON

NEW AND SEASONED CORPORATE B O N D S

IIASQNiS Aee

II

II I M i l

UJ

Exhibit 0 - Part II
Yields on Mew Corporate Bond Issues Adjusted to en Aaa bests
Number Am't of Issues
of
included (mil.
of dollarsV

Average

Humber S T o f Issues
Average
included (mil.
yield
of
of dollars)
issues
( p e r penf),

yield
(per cent)

M o n t h l y averages;

1964

- Jan.
Feb.
Mar.
Apr.
May
June

Weekly

3
3
6
1
10
8

150.0
125.0
166.0
130.0
, 278.0
230.0

1
1

50.0
50.0

4.50
4.38
4.43
4.48
4.46
4.43

May

June 5

averages

1964 - High
Apr. 3

10
17
24
1
8
15
22
29

4.53(5/8)
4.30(3%1) J u l y

12 19
26

2
1
1
3
3
2
2
2
2
2

3

13.0
8.0
50.0
89.0
95.0
36.0
60.0
35.0
55.0
80.0

4.48
4.45
4.53
4.45
4.43
4.45
4.4?
4.44
4.43
4.41

—

--

Hotel Averages of offering .
A by Moody's Investors S e n d e e (except serial and convertible issues, offerings of natural gas pipe 11]
and foreign companies, and beads guaranteed by the Federal Government) weighted b y A l e of offering*
Before averaging, new offerings a r e adjusted to a coeposlte A m basis by deducting free the actual
"
'
- v weekly
"
reoffering
yield tie excess of the
average1 ]yield f o r seasoned tends of the appropriate indastq
quality group over the composite average for seas#Ted Aaai-rated bonds (Moody's),
,
... Averages considered
unrepresentative because of special characteristics of tie offerings included are denoted by an asterisk^
H i g h and low r e f e r o n l y to y i e l d s , and n u m b e r s and
these averages are based.




amount of issues

are those o n w h i c h

H. 14
Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Capital

Corporate 1/
1963

1964
January
February

£/
£/
£/

930
685
754

613
594
1,144

549
860
819

April
May^/
June

E/ 2,111
e/
950
e/ 1,400

930
904
1,013

1 ,153
771
1,132

July
Augus t
September

e/

800

676
637
795

573
773
557

1,013
819
1,415

819
678
1 ,064

£/ 2,369
e/ 4,461

2,351
2,847
2,109
3,246

2 ,228
3 ,056
1 ,902
2 ,561

e/ 6,830

5,198
7,307
10,553

5.,284
7.,186
9,,747

October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

State and Local 2/
1964
1963

1962

1962

944
773
812

732
746
976

876
1 ,133
628

.£/ 1 ,180
e/
e/

600
800

869
866
930

873
912
786

e/

900

680
708
449

612
544
427

1 ,051
729
416

650
578
550

£/ 2,,529
e/ 2 ,580
;

2 ,454
2 ,665
1 ,837
2 ,197

2 ,637
2 ,571
1;,528
1;,779

;
|

e/ 5 3,109

5 ,118
6,,955
9,,151

5,,208
6.,790
8.,568

|
?
\

£/
£/
£/

I

"

Excluding finance companies—^
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

Year

2,284
2,529
1,768
2,854

2,,169
2,970
1,767
2,330

9.434

9,236

£/ 1,996
e/ 4,011

1

e/ Estimated by Federal Reserve.
fi/ Preliminary.
1/ Securities and Exchange Commission estimates of net proceeds.
2/ Investment Bankers Association of America estimates of principal amounts.
3/ Total new capital issues excluding offerings of sales and consumer finance companies.




1

11.14
tixlityit I
New Corporate Security issuer*, Type of Issue and Issuer
(In millions of dollars)

Quarter
or
Month

Total

Gross proceeds tor new
capital and refunding 1/
f •Common Memo:
* Bond
and
Foreign
Publicly
Privately pfd. issues
Mfg.
offered
offered
stock included

Net proceeds tor
new capital 1/ 2/

2,566
3,236

772
967

1,139
1,424

654
845

69
62

935
792

595
836

104
147

893
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
III
IV

2,700
3,634
2,436
3,466

1,,108
1,,389
898
1,,319

1,306
1,820
1,251
1,780

287
424
287
367

128
434
109
47

947
591
806
968

326
794
285
530

236
221
150
118

842
1,241
868
1,629

1964 - I

2,499

978

1,221

300

29

418

418

- July
Aug.
Sept.
Oct.
Nov.
Dec.

630
922
632
976
784
1,197

200
477
176
539
286
264

366
363
295
314
446
808

67
82
161
123
52
125

13
43
46
34
99

217
218
166
153
271
345

118
110
148
141
175
252

88
120
67
260
4
57

159
301
199
282
253
451

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

695
642
1,363
1,049
1,340
1,246
810
756
871
1,116
891
1,459

350
259
499
380
550
459
279
336
283
511
183
626

243
289
774
452
694
675
431
318
501
481
549
751

102
94
91
217
95
113
100
100
87
125
159
83

25
43
60
56
182
196
46
21
42
10
10
27

135
220
592
148
216
227
297
272
237
240
214
515

114
115
97
341
222
230
107
100
.78
201
131
198

125
68
43
71
92
58
86
25
39
41
13
64

238
191
412
369
373
499
187
240
441
531
441
637

• Jan.
Feb.
Mar.
April £/
May
e/

985
710
805
2,175
970

338
279
361
383
470

526
342
333
429
380

5
16
8

149
1.2?
1.46
157
150

109
156
174
150
420 1

157
83
3A
1,369
10

515
326
400

»• 32

-t

>0

4S5
370

B./ Preliminary. e/Estimated by Federal Reserve. JL/Gross Proceeds exceed net proceeds by the
cont 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.




c

Public Communi Other ...
utility cations issuers

1961 - III
IV

121
88
91
1,363
120

^

H. 14

' (l|

Exhibit J
Other Security Offerings
(In millions of dollars)

1966
January
February
March
April
May .

4
82
69

£/ 27
e/

65

July
August
September
October
November
December

Gross long-term 1/
Foreign government 2/
Federal agency 3/
|
1Q61
|
196?
1966. /r
1962
1963
|
232
133
76
57
114
11
63
83

2

Jan. - May

e/ 247

Year

142
10
35
10
86
50
25
8
3,1
151
88
101

612

283

771

737

'

103
236
-407
!>/

427

July
August
September
October
November
December
Jan. - May
Year

n.a.
j

75
272
-367
589
-30
-10
62
208
-173
259
146
-339

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

539

341

692

379

246
156

186

461

--

-

jjr -

459
150
175
174
200

e/

""

--

334

863

12
-459
198
£ /

97

E/167

15

:
*

Federal agency 3/
-106
-189
-482
292
195
319
414
327
258
123
-102
551

247
-156

226

f

-364

82
284
261
227
-157
379
55
-80

-290

35

1.600

1.004

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/lncludes 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 o^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
Digitized
FRASER
have a for
somewhat
longer maturity than one year. Source: Bond Buyer and Federal Reserve.



}

1,188

1,167

Net short terra 4/
State and local government 5/
January
February
March
April
May

148

I
?

1

£
i

f
|
|
f
)

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

1963 - May
June
:
July
)
August
September
October
November
December
1964 - January
February
March
April
May
June

Coroo rate
Bonds
Convertible
(Other than
convertibles)
bonds

149
348
199
236
237
446
180
547
307
263
335
1,557
452
MO

149
348
180
218
215
230
117
515 •
225
200
296
235
415
390

Stocks

19
18
22
66
63
32
22
28
38
1,271
37
260

60
35
51
--

State
and
local
governments

'j

Other J /

389
372
279
329
135
734
373
111
577
358
282
698
274
384

|

43
460
60
20
174
200

50
20
15
265

.

Large Individual Issues Offered During Juno 1 through July 3

Issuer

Type £/

Coupon
Amount
rate or
. Offer(millions
ing
of
v Maturity net interdollars)
est cost
vield

1:
-

Corporate
Communications Satellite Corp.
Long Island Lighting Co,
General Telephone Co. of Calif,
Michigan Wisconsin Pipe Line Co.
General Motors Acceptance Corp.
Louisiana Pwr. & Lt. Co.
Consolidated Edison Co.
Public Service Co. of Colo.
Laclede Gas Co.
Deere & Co.
Carolina Pwr.& Lt. Co.

Com. stk.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Deb.
1st mtg. bds.
Pfd. stk.
1st mtg. bds.
1st mtg. bds.
Deb.
1st mtg. bds.

200.0
25.0
35.0
20.0
150.0
25.0
60.0
35.0
20.0
50.0
30.0

1994
1994
1984
1986
1994

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

, 4.53
4.56
4.73
4.64
4.58

A

1994
1984
1989
1994

4-1/2
4-5/8
4-1/2
4-1/2

4.48
4.57
4,50
4.44

Aa
A
A
Aa

1967-79
1995
1965-84
1965-89

2.93
3.54
3.04
3.22

2.40-2.95
3.50
2. 10-3.15
2. 15-3.35

A aa
A
Aa
Aa

Aa
A
Baa

State and Local Government
State of Maryland
New York Port Auth.
Dallas Ind. Sch. Dist., Tex.
Los Angeles Un. Sch. Dist., Cel.

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




37.4
35.0
10.0
25.0

V

Rating [

K-2
L a r g o Individual Issues Offered D u r i n g J u n e

Type

State and Local Government

Coupon

Offer- Rating
net inter- ing
1
yield
est cost

(Cont'd)

Norfolk, Va.
Minnesota State College Bd.
Orange Co. Spec. Tax Sch. Dist #1, Fla
Penria State Highway & Bridge Auth.
Public Housing Auth.
New York City, N. Y.
Tarrant Co., Texas
Milwaukee Co., Wise.
Jacksonville, Fla.
Omaha Met. Util. Dist., Neb.
Other

(continued)

Amount
(millions Maturity
of
dollars)

—

12.0
G.O.
Rev. -Rent. 10.0
Rev. --S.T. 25.0
Rev. -Q.-Ut.. 25.0
-119.8
Rev. -Rent. 13.9
12.0
G.O.
G.O.
17.2
25.0
Rev. -Ut.
Rev. -Ut.
17.0

1965-89
1968-2003
1966-84
1964-83
1965-2004
1965-2013
1965-84
1965-84
1965-78
1969

3. 14
3.89
3. 26
3.06
3.34
3. 67
3. 11
3. 04
3.05
2.90

4/
2. 15-3 .25
2.80-3,.855/
2.40-3,
2.00-3.
2. 10-3.,45
2.20-3.
2. 15-3.
2. 10-3. 10
2. 15-3. 10
1/

>

Aa
Aa
Aa
A aa
A
Aa
Aa

Aa

'

Federal Home Loan Banks

265.0

1966

"4-1/4

4.19

Federal Home Loan Bank

260.0

1966

4-1/8

4.13

* -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 issued 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.
V Bonds maturing 1988-89 not publicly reoffered.5/ Bonds maturing 1981-83 not publicly reoffered.
/ 1/10 pa- cinL bonds maturing 1984 rcoifort-d to yield 4.10 per cent.
/ Eutirc issue
publicly ruv£fta-vd •




„

n

H.14
Exhibit L
Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) )J
Expected Proceeds from Forthcoming Large Issues
(In millions of dollars)
During month following
date shown
State ana
Corporate
local govt.-Other 2/
% 1963 - May 31
June 28
;
)
July 31
|
Aug. 31
1
Sept. 30
Oct. 31
Nov. 29
Dsc. 31
1964 -Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 28
1 \
June 30

233
170
221
158
240
145
392
305
155
224
1,587
651
600
292

255
142
329
210
561
255
137
469
316
454
669
345
341
539

460
75
20

25
15

-

Subsequent to
date shown
1 State and
Corporate (local govt. 1 Other 2/
288
215
267
183
240
145
1 ,992
1 ,905
1;,771"
1 ,649
1.,837
844
668
307

582
287
512
468
757
401
349
731
667
646
.953
575
598
716

460
75
20

25
15

Forthcoming Large Offerings as of July 3
Type

Issuer

Amount
(millions of
dollars)

Approximate date of
offering

Corporate
Pacific Gas & Elec, Co.
Baltimore Gas & Elec. Co.
J. G. Penny Credit Corp.
Northern State P«zr. Corp.
Marine Midland Corp.
Milwaukee Gas Light Co.
Northern 111. Gas. Co,
Nationwide Ccrp.
*'Jtah Pwr. & Lt. Co.

;

stk.
1st mtg. bds.
Deb.
1st mtg. bds.
Deb.
1st mtg. bds.
1st mtg. bds.
stk.
1st mtg. bds.

64.1
30.0
50.0
15.0
60.0
18.0
20.0
35.0
15.0

July
July
July
July
July
July
July
July
Aug.

7 (rts. ex.)
8
8
12
22
22
30

G.O
G.O
Rev .-Q.-•Ut.
G.O
G.O

13.6
15.0
18.0
13.6
14.0

July
July
July
July
July

8
8
8
8
14

State and Local Government
*0ragon State Bd. of Higher Ed.
San Juan, Puerto Rico
Atlanta Fulton Co. Rec. Auth, Ga.
State of Oregon
Memphis 9 Tenn




i't)

Forth Coming Large Offerings as of July 3 (Cont'd)

Type

Amount
(millions
of
dollars)

Approximate date |
of offering
f
f

1

State and Local Government(Cont'd)
Houston Ind. Sch. Dist., Tex.
Alabama Highway Auth.
Met. Denver Sewage Diep. Dist., #1, Colo.
Seattle, Wash.
Merced Irr. Dist., Cal.
Florida Dev. Comm.
*Stata of California
*Nev York State Housing Fin. Agency
*NiW York City, N. Y.
^Florida State Bd. of Ed.
San Francisco, Calif.
7a- State Highway Auth.
Mass. Turnpike Auth,
Pittsburgh, Pa,
Dade County, Fla.
Forth Worth, Tex.

1
G.O.
Rev. -Q.-Ut.
Rev., - u t .
Rev. -Ut.
Rev. -Q.-Ut.
Rev. -Q.-Ut.
G.O.
Rev. -Rent
G.O.
Rev. -Rent
G.O.
Rev. -Q.-Ut..
Rev. -Q.-Ut.
G.O.
G.O.
G.O.

10.0
10.0
32.5
45.0
36.0
12.7
100.0
70.0
123.2
25.0
15.8
31.0
35.0
35.0
46.0
14.1

July
14
July
14
July
15
July
15
July
15
July
20
July
21
July
July
22
July
28
Aug.
10
Summer
Summer
Indefinite
Indefinite
Indefinite

|
|
g
1
1
?
f'

f
j

Other
Nc~ e.

y

*--included In Table for first time.
If 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 for Federal agencies.
Note:--Deletions for reasons other than sale of issue: None.




i

H. 14
E*Mbit a

r.

Foreign Goverdment and Corporate Security Offerings
and Placements in the United States

Pert I:

I
I

Sale
Date

Public Offerings

Amount,
(millions of
dollarfe)

Issuer and Description of Issue

A.
:

Sold April 1 through July 3

4/1

25.0

United Mexican States--6-l/2% sinking
fund debentures, maturing 1979
offered to yield 6.75%

5/7

15.0

Republic of Finland--6% bonds, maturing
1976, offered to yield 6.247.




B.
None

Prospective Offerings

H. 14

Z

V

M-2

Part II:

Da te
reported

i

Private Placement--Reported April 1 through Jul • 3

Amount
(millions
of
dollars)

Issuer and Description of Issue

4/1

12.5

5/8

4.0

5/8

10.0

Pacific Great Eastern Railroad Go.-4-1/2% sinking fund debentures,
maturing 1994—no information available
on takedown.

5/18

21.0

Upper Lakes Shipping Ltd.--6% installment
notes, maturing 1966-79—no information
available on takedown.

6/2

50.0

Quebec-Hydro-Electric Power Authority—
4-1/2% debenture, maturing 1984--no
information available on takedown.

5/23

25.0

C. Itoh & Co. Ltd--6-l/2% convertible
unsecured debentures, maturing 1984-no information available on takedown.
Israel Discount Bank Ltd.--5-1/2% capital
notes, maturing 1979—no information
available on takedown.

City of Montrea1--4-7/8% debentures,
maturing 1966--no information avail-

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 takedowns. Full :r partial takedowns may take place both prior
and subsequent to the data a placement is reported.
'---Included in table for first time.




;