Full text of H.16 Capital Market Developments : July 8, 1968

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H.I 14

DECONTROLLED AFTER SIX MONTHS

frm

July 8, 1968.

CAPITAL-MARKETS I DEVELOPMENTS
IN THE UNITED STATES
Corporate and municipal bond markets. The volume of new,
publicly-offered, corporate and municipal securities expected this
week will be above the average weekly volume over the past year. The
especially large municipal volume has, as its largest component issue,
$100 million of California water resources bonds. Dominating the
corporate volume will be Standard Oil of New Jersey's $250 million of
debentures. Supplementing the large volume of long-term offerings
will be the Province of Ontario's $75 million of debentures.

1/

Long-term Public Security Offerings —
(In millions of dollars)

Corporate
New Capital | Refunding

State & local Government
New Capital | Refunding

Sold;
52 week avg.

322

1

253

June

28

r/385

r/350

July

5

145

25

375

415

1

—

Scheduled:
July

17

12

--

Federal Reserve estimates are based Upon published reports of issues
sold and scheduled for offering; corporate rights offerings are included as of date subscription rights expire.

Yields on seasoned corporate bonds were unchanged last week.
Because there were no non-convertible bond offerings, there was no new
issue yield series. However, two utility issues offered the week before
were released from syndicate (being only 25 per cent sold) and in free
market trading, the yields on these issues advanced 8 to 9 basis points.
Yields on seasoned municipals were unchanged and in this market
also there was little new issue activity. Despite the very small size of
last week's volume, however, only 63 per cent of the new issues had been
sold by week's end.
FNMA "auction"and related secondary market operations. Total
offerings by private holders of Government-underwritten home mortgages to
the Federal National Mortgage Association under the old fixed-price system
totaled $104.8 in May. Practically all of the total came in the first
three working days in the transition to the new "auction" system, which




H. 14

-2-

Yields on Security, Markets
Change from
preceding week

High-Grade
Notes and Bonds
Corporate
New
Seasoned

6.27

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

5.12
5.59

State and local Govt.
Moody's Aaa
Std. & Poor's high grade

4.18
4.50

Money Market
Federal funds
Treasury bills
3-month
6-month

5.78
5.35
5.43

.

-

12

+
-

5
8

Corporate Bonds Still in Syndicate
Date
Offered

Amount
(millions of $)

6/27

15.0

Issuer

Reoffering
Yield

Arkansas Power & Light,
7-3/8*8 - 1998

Rating

Estimated proportion sold

50%

7.20

Blue List of Municipal Dealers' Advertised Inventories
Latest Week

End of Previous .Week

651(7/2/68)

669




1968 High
669(6/28/68)

H. 14

was just becoming operational.
Secondary market.purchases by FNMA in May — then essentially
under the old system -- declined somewhat further to $176.4 million, the
lowest total since July 1967. There were no sales by FNMA during May. ,
In response to further tightening within the mortgage market
this spring and the need to accomodate a greater number of approved
sellers, FNMA has continued to adjust total auction limits for commitments upward in recent weeks. During June, the second full month under
the new "free-market" system, the total monthly limit on accepted bids
was raised by 50 per cent and for the week ended July 1 the weekly
volume was increased further to $90 million. Bids received by FNMA
have recently declined from a peak of $231.8 million on June % to a
low of $135.4 million for the June 24* auction. Although no clear
pattern has developed to indicate which FNMA region is absorbing the
greatest share of the bids, the Philadelphia region has consistently
received the smallest amount.
The increased level of FNMA auction activity being permitted,
as well as other factors (improved bidding experience and particularly
the expectation raised by the 10 per cent surtax) have tended to relieve
some of the initial pressures under which bidders had been operating,
and as a result they have begun to harden their bids. In the case of
6-month commitments, average prices which declined throughout May and
continued lower during the first two auctions in June, have risen since
June 17 and now stand at 95.01 per cent (93.94 after adjustment for
commitment fee and stock purchase requirements) on July 1, the most
recent auction for which results are available. Consequently, the
implied yields (assuming a prepayment period of 15 years for a 30-year
mortgage) have declined and in the most recent period fell to 7.49
per cent. This compared with 7.72 per cent for the auction ending
June 10.
More detailed information on FNMA is presented in the table
on pages 15 and 16.
Stock prices. During last week's very abbreviated trading
period common stock prices advanced in slightly reduced trading volume.
Standard & Poor's index of 500 stocks stood at 100.91 at the close
Friday, up 1.33 from the previous Friday. Trading volume averaged 13.0
million shares a day.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.
Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




EXHIBIT A, Pari I

LONG-TERM BOND YIELDS, HIGH-GRADC

CORPORATE A M

U.S. G O V E R N M E N T
Long-term

r

STATE A N D LOCAL G O V E R N M E N T A m
'Moody'.

1963



1964

1965

*

1966

1966

\

Exhibit A -- Fart. xl

Date

Corporate
Aaa 1/

| State and
U.S. Govt, |
local
long-term 2/ i government
1
Aaa 3/
(per «cent)

4.61(1/29/60)
5.52(9/9)
4.73(1/7)
6.24(12/29)
5.00(2/10)

4.42(1/8/60)
4.87(9/2)
4,42(1/7)
5.49(11/17)
4.37(2/3)

1959-60 - High
1966 - High
- Low
1967 - High
- Low

1968 - June

7
14
21
28
5j> f

6.29
6.28
6.29
6.27
6.27

3.65(9/24/59)
4.04(8/25)
3.39(1/13)
4.15(12/28)
3.25(2/9)

4.25
4.25
4.15
4.18
4.18

5.30
5.27 1
5.18
r/5.15
5.12

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

.59(8/5/60)
.84(12/30)
.14(2/18)
.92
.44

.99
1.01
1.11
r/1.12
~ It 15

.92(4/22/60)
1.19(2/11)
.77(9/2) ,
1.51
.74

1.05
1.02
1.03

.97
July
.94
£/ Preliminary, r/ Revised.
1/ Weekly average of daily figures. Average term of bonds included is 22-24 years.
2/ Weekly average of daily figures. The series includes bonds due or callable in 10
years or more.
3/ Thursday figures. Only general obligation bonds are included; average term is 20
years.
Note--Highs and lows are for individual series and may be on different dates for
different series. For spreads, high refers to widest, and low to narrowest.




-5-

EXHIBIT B, Part 1

L O N G - T E R M B O N D Y I E L D S , LOWER GRADE
We ekly

CORPORATE Baa

STATE AND LOCAL G O V E R N M E N T Baa

lI I I I I I I l i
I iI i ii i i i r 1 ill i i i i i i i i i ii i r i i i i i I I i I l ll I I 1 II I

1963



1964

1965

1966

1967

1968

II

Exhibit B -- Part II

Date

State and
local govt.
Baa 3/

Corporate
Baa 1/

Spread between
Aaa aiid Baa
State and
Corporate
local Rovt.

(per cent)
1959-60 - High
Year end- 1965
1966 - High
Low
1967 - High
Low

1968 - June

Note:

5.36(2/12/60)
5.04
6.18(12/30)
5.05(1/14)
6.97(12/29)
5.81(4/14)

7
7.09
7.08
14
21
7.07
7.04
28
July 5p /
7.04
For footnotes see Exhibit A„




4.46(1/7/60)
3.79
4.55(8/25)
3.78(1/20)
4.73(12/28)
3.85(4/13)

.84
.31
.81
; 31
. 82
.63

1.08
.39
.62
.31
; 81
.37

5.16
5.16
4.96
4.96
4.96

.80
.80
.78
.77
.77

i 91
.91
.81
.78
.78

EXHIBIT

C. Port 1

S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES
GOVERNMENT
Weekly

3-5 YEAR ISSUES

F.R. DISCOUNT RATE
3-MONTH BILLS
Market YIeldi

1963



1964

1965

1966

1967

1968

Exhibit C —

Discount
rate
1/
1959-60 - High
Year end - 1965
1966
1966 - High
Low
1967 - High
Low

4.00
4.50
4.50
4.50
4.50
4.50
4.00

1968 - June

7
14
21
28
July
*ilL
1_Z wetus-xjr iwuc

5.50
5.50
5.50
5.50
5.50

3-month
bills U

4.59(1/8/60)
•< 4.47
4,80
5.52(9/23)
4.39(6/24)
4.99(12/29)
3.41(6/9)

5.66 ,
5.68
5 45
5.30
5.35

Part II

Yields
6-month
bills 1/
(per cent)

3-5 year
issues U

Spread between yields on
3-mo. bills and yields on
6-mo. bills13-5 yr. issues

5.07(1/8/60) 5.00(12/24/59)
4.90
4.66
4.86
4.92
5.83(9/2)
5.92(9/23)
4.80(4/8)
4.53(6/24)
5.50(12/15) 5.80(11/10)
4.36(4/7)
3.74(6/2)
5.80
5.75
5.61
5.67
5.59

5.72
5.75
5.58
5.51
5.43

2/ Market1"yield; weekly averages computed from daily closing bid prices.

£/

Preliminary, r/




Revised.

-9-

.79
.19
.12
.52
-09
.62
.01

1.81
.43
.06
, .78
.01
1.61
.02

.06

.14
.07

.07
.13

.21

.08

.16

.37
-=24,

Series o£ 3-5

EXHIBIT

D, Pari

1

S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES,
B A N K S A N D OTHER P R I V A T E l O H H O W l K *
Weekly

PRIME RATE
FINANCE COMI
Diretlly

placed. J

F.R. DISCOUNT RATE
New

York

FEDERAL FUNDS

1963



1966

1967

1968

Exhibit D —

Date

Prime rate 1/

Part II

Finance
company
paper 2/

Spread between
3-mo. bills and
Federal funds 3/ finance co. paper

(per cent)
1959-60 - High
Year end- 1964
1965
1966
1966 - Low
1967 - High
Low

5.00
4.50
5.00
6.00
5.00(3/4)
6.00(12/29)
5.50(12/1)

5.13(1/22/60)
4.06
4.75
5.88
4.75(1/7)
5.75(1/6)
4.38(6/23)

4.00(5/13/60)
4.00
4.63
5.63
3.55(1/21)
5.25(1/6)
3.40(10/27)

1.02
.23
•28
1.08
.20
1:33
.21

.34
5.97
6.00
6.50
7
.32
6.23
6.00
6.50
14
.55
6.28
6.00
6.50
21
.70
5.90
6.00
6.50
28
.65
5.78
6.00
July 5p/ 6.50
1/ weeKiy raue suuwn w unau ...»
— r
•
. . . . . .
charged by large banks on short-term loans to business borrowers of the highest
credit standing.
,
2/ Average of daily rates published by finance companies for directly placed paper
~~ for varying maturities in the 90-179 day range.
3/ Weekly average of daily effective rate, which is the rate for the heaviest
volume of purchase and sale transactions as reported to the Federal Reserve
Bank of New York.
Note.-Highs and lows are for individual series and may be on different dates for
different series. For spreads, high refers to widest, and low to narrowest.
1968 - June

]>/

Preliminary.




-11-

EXHIBIT E, Fori 1

STOCK M A R K E T
194143

Billion*

overoge=10

PRICES

10

100

8

STOCK MARKET CREDIT

6

CHANGE IN SERIES

4

VOLUME

YIELDS
II III II III 1
1963

I.I




II 1 1 1 "1 1 1i 1i.i I.'lit ii ii I 1 III III III 1 M ' M I'M 11' 1 1 1 ii i, i i M M r
1964
1965
1966
1B67
1968

Exhibit E —

Stock price
index 1/

Date

1961-62 - High
Low
1966 - High
Low
1967 - High
Low

72.04(12/8/61)

52.68(6/22/62)
93.77(2/11)
73.20(10/7)
97.26(10/6)

82.18(1/6)

97.87
(LOO. 53

May
June

Common
stock
yields 2/
(per cent)

Part II

Stock market customer credit
Trading
Bank
Customers'
volume 3/
debit bal- loans to
Total
(millions
"others"5/
ances 4/
of shares)

2.82
3.96
3.01
3.9)
3.01
3.58

10.1
2.4
10.7
5.0
12.3
6.9

5,602(12/61) 4,259(12/61) 1,418(5/9/62)
3,253(1/61) 1,161(3/8/61)
4,424(1/61)
5,835
2,241(7/6)
7,997
5,169
2,097(12/14)
7,302
10,347(12/67) 7,883(12/67) 2,057(11/1)
5,290(1/67) 2,055(1/25)
7,345(1/6)

3.08
3. 00

13.4
15.1

10,588

8,231

2,357
r/2,417

r/ 2,417
n.a.
14.0
2.99
£/ 2,417
n. a.
n.a.
13.2
3.03
98.58
n.a.
13.0
n. a.
July
%L\WL00.91
n.a. Not Available. £/ Preliminary.
r/ Revised.
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.
•
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing
~~ prices by Federal Reserve. Yields shown are for dates on which price index reached its high
June

21
28

100.66

3/ Averages of daily trading volume on the New York Stock Exchange. Year-end figures are averages
of daily figures for the year.
4/ End of month figures for member firms of the New York Stock Exchange which carry margin accounts
~~ excludes balances secured by U. S. Government obligations.
5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
""" u.S. Government securities. Weekly reporting banks account for about 70 per cent of loans to
others. For further detail see Bulletin.
-13-




EXHIBIT F. Port 1

FEDERAL N A T I O N A L M O R T G A G E A S S O C I A T I O N ^
S E C O N D A R Y MARKET O P E R A T I O N S
400

OFFERINGS

300

200

100

'PURCHASES V

SALES
1962




1964

1966

1968

Exhibit F - Part IT

Date-

Estimated offerings to FNMA
Immediate
S tandby
Total
purchase
commitment

Purchases
by
FNMA

Sales
by
FNMA

(In millions of dollars)
1967 - May
June
July
Aug.
Sept.
Oct.
Nov. ,
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May

78.7
229.1
232.8
261.0
168.2
260.6
324.7
209.4
212.6
164.4
212.9
214.3
104.8

78.5
228.8
232.6
260.6
167.9
260.1
324.1
206.6
212.0
164.0
212.2
210.1
103.6

.2
.3
.2
.4
.3
.5
.6
2.8
.5
.4
.7
4.2
1.2

17.8
26.9
81.2
198.3
192.4
215.1
186.9
200.1
274.9
245.2
188.9
185.7
176.7

1.5
6.0
.9
.8
.2
.3
.1

* — L e s s than $50,000.
1/ Data represent unpaid principal balances of the mortgages involved, exclusive
of premiums, discounts, or other charges. Offerings are amounts of applications
received during the period from sellers proposing that FNMA execute purchasing
contracts. An immediate purchase contract covers existing mortgages which the
seller must deliver to FNMA within 45 days. A standby commitment contract relates to proposed mortgages on housing not yet under construction which the
seller must usually deliver within one year. Purchases include those under
both immediate purchases and standby commitment contracts.. Data exclude FNMA
activity under Special Assistance and Management and Liquidating Programs.




Exhibit F - Part III
FNMA Weekly "Auction" Results

Amounts (In millions of dollars)
Accepted
Offered
1
690
total
Total
Year
Month
Day

90-

7.15
7.39
7.48
7.53

7.05
7.32
7.38
7.47

7.66
7.72
7.70

7.61

7.58
7.63
7.65
7.57

7.49

7.47

2.4
6.9
10.7
10.0

7.10

173.4
168.8
176.8

40.3
49.9
49.5

19.7
15.6
10.5

6.1

231.8
179.7
145.3
135.4

60.7
74.6

7.7
14.4
15.1
15.9

40.0
44.8
49.8
50.4

13.1
15.4
15.3
14.1

7.62
7.68

89.0 16.3
(90.0)

60.5

12.2

7.51

148.0

51.6

80.2
80.4

Year

Month

18.3
27.4
28.3
35.5

206.8

6-

Day
7.38
7.48
7.53

7.70
7.63

Note - Total accepted shown in parenthesis for most recent week indicates FNMA
announced limit before the "auction" date. Yields are gross to FNMA and are
based on successful bid prices after allowance for commitment fees and Initial
stock purchase requirements and assuming a prepayment period of 15 years
30-year mortgages. One-year commitments are for new homes only.




—16—

YIELDS O N N E W A N D SEASONED C O R P O R A T E B O N D S
Weekly

6.5

A d j u s t e d to

Aaa

Basis

N E W ISSUES

6.0

5.5

5.0
SEASONED Aaa
Moody's

4.5

4.0
1964



1965

1967

1966

I

1968

Exhibit G - II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis

Number
of
issues

Number |Am't. of issues Average
of
included (mill.
yield
(per cent)
issues 1 of dollars)

Am't. of issues Average
yield
included (mill.
(per cent)
of dollars)

Monthly averages:
1968 - Jan.
Feb.
Mar.
Apr.
May
June £/

13
13
10
7
11
13

567.0
564.5
350.0
415.0
531.0
872.0

6.24
6.29
6.56
6.52
6.66
6.66

June

7
14
21
28
July 5fi!

6
2
2
3
—

.

r/600.0
50.0
100.0
122.0

6.66
6.61
6.67
6.78
,

--

Weekly averages:
High
6.83(5/24/68) ,
Low
4 ,6.18(1/12/68) i
Note:
Aa, and A by Moody's Investors Service (except serial and convertible issues, offerings of natural
gas pipeline and foreign companies, and bonds guaranteed by the Federal Government) weighted by
size of offering. Before averaging, new offerings are adjusted to a composite Aaa basis by
deducting from the actual reoffering yield the excess of the weekly average yield for seasoned
bonds of the appropriate industry-quality group over the composite average for seasoned Aaarated bonds (Moody's). Averages considered unrepresentative because of special characteristics
of the offerings included are denoted by an asterisk.
2./ Preliminary.
r/ Revised.




-18-

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

State and local

Corporate

January
February
March
April
Hay
June
July August
September

1,706
1,568
1,740

1,648
1,399
2,317

1,302
1,237
2,446

r/1,134r/1,134 r/1,356 ,

1,482 *
1,1961,438'

1,188

1,413
e/1,900
e/2,375 /

1,973
1,474

2,611

1,553
1,058
2,364

1,273
e/1,175
e/1,325

1,111
1,229
1,497

1,193
901
I,141

2,454
2,407
1,723

1,039
1,670
1,382

e/1,300

943
858
I,330

701
773

1,020

2,289
1,467
2,336

829
1,085
1,635

974
1,400
1,182

755=
969
940

5,364
6,058
6,584
6,092

4,985
4,975
4,091
3,550

r/3,663 1
e/3,773

4,119
3,837
3,131
3,556

2,911
3,235
2,494
2,664

11,421
18,007
24,098

9,959
14,050
17,601

e/7,488

7,956
II,087
14,643

6,146
8,640
II,304

e/2,050

October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

let half
Three quarters
Year .

0

!/5> 88

e/10,702

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

Quarter
Quarter
Quarter
Quarter

4,943

Year

1

Estimated by Fedtral Reserve.




5,207
5,913
6,338
5,657

4,924
4,884
3,969
3,188

23,115

17,269

858
865

2a

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

Quarter
Total
$5;

Month

1

-

Gross proceeds for new capital
and refunding 1/
Common Memo:
Bono s
Foreign
Publicly Privately and
pfd. issues
Offered Placed
stock included

Net proceeds
for new capital 1/
Mfg.

2/

Other
Public CommuniUtility cations Issuers

|1967 - I
II
III
IV
i

5,464
6,208
6,833
6,294

3,263
4,017
4,604
3,107

1,811
1,465
1,551
2,137

390
726
678
1,051

60
65
234
93

997
2,442
3,014 1,268
2,792 1,219
2,527 1,255

543
548
595
269

1,382
1,228
1,976
2,040

1968 - I

5,178

2,465

1,724

989

313

1,854 1,394

411

1,356

1,519
2,673
2,589
2,481
1,763
2,409
1,500
2,385

965
1,684
1,889
1,813
902
1,375
645
1,087

396
• 659
486
412
647
566
551
1,020

158
330
214
250
214
469
304
278

32
17
213
13
8
34
19
30

588
1,298
925
1,229
637
906
512
1,109

403
471
446
509
265
573
404
278

91
350
39
356
200
119
82
68

393
492
1,044
313
619
690
469
881

1,771
.1,607
1,800
1,453
2,000
2,500

903
796
766
719
1,040
1,350

546
585
593
465
650
700

322
226
441
269
310
450

16
61
236
30
n.a.
n. a.

537
556
761
364
675
1,000

417
546
431
178
475
375

186
147
78
189
75
225

566
321
469
681
725
775

i

1967 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
.968 - Jan.
"Feb.
Mar.
Apr.
May e/
June e/

£/
1/
2/
i

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




Exhibit j
Other Security Offerings
(In millions of dollars)

Gross Long-term 1/
Foreign Government 2/
Federal Agency 3/
1966
1967
1968 p/
1967
1968 2.1
January
-February
March .
April
May
June
July
August
September
October
November.
December
Jan. - Apr

103
49
30
75

257

Year

•January
February
March
April
May
June
July
August
September
October
November
December
Jan. - May

%/

196
223
27
13
170
22
586
193
66
142
18
419

12
40
40
66
69
76
72
7
50
23
74
68
92

1,656

597

—

999
550
1,370
225

3,144

1,721

422

__

1,251
783
75.0
650
810
650
407
. 250
599
708
710
612
2,784

503
410
392
699
1,030
1,084
799
400
450
800
239
913

8,180

6,806

New short-term 4/
State and local Government 5/
Federal Agency
179
103
490
. -179
300^/
387
39
-552
436
89£/
-594
-319
-593
-454
-604j>/
827
580
. -559
681
515
490
462121
109
-187
-334 •
93
-103
20
-158
270
-262
593
,
-161
32
1,407
-48
606
414
- 503
49
573
-570
36
-514
272
-28
-177 '
-1,185
1,135

Year

1966

.660

3/
308
-24
450
718
85
284
-590
-270
-652
-555
-283
219
734
310

£/ Preliminary, e/ Estimated by Federal Reserve, n.a.--Not available. 1/ These data
differ from those in Exhibit H in that refunding issues, as well as new capital issues,
are included. Long-term securities are defined as those maturing in more than one year.
2/ Includes securities offered in the U.S. by foreign governments and their political
subdividions and international organizations. Source: Securities and Exchange Commission,
3/ Issues not guaranteed by U.S. government. Source; Long-term, Securities and Exchange
Commission; short-term, Treasury Dept. & Fed. Reserve. 4/ These data differ from those
in Exhibit H and above in that they represent new offerings less retirements, whether
from the proceeds or refunding issues or from other funds. Data include only issues with
original maturity of one year or less. 5/ Principally tax and bond anticipation notes,
warrants, or certificates and Public Housing Auth. notes. In some instances PHA notes
included mav have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal
Reserve.




H. 14
Exhibit K
U r g e Long-term Public Security Issues for New Capital
(Other than U. 8. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)

Total

1967 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May
June

Corporate
Bonis
Convertible
(other than
bonds
convertibles)

1,666
1,340
1,705
794
1,458
826
978
904
757
788
696
1,009
1,461

Stocks

Other

2/

825
85
221
400
50
845
627
1,095
389
1,030
370
145
500

875
483
473
847
505
865
633
785
591
736
794
571
758

185
133
67
65
276
215
81
85
77
238
73
70
180

409
317
350
257
285
150
437
168
105 .
135
723
283
120

1,072
890
1,288
473
897
461
460
652
575
415
500
656
1,161

State
and
local
governments

Large Individual Issues Offered July 1 through July 5, 1968.

Issuer

Type 2/

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
net interest cost

Offering
yield

Rating

Corporate
Whittaker Corp.
Nytronics
jevin-Townsend Computer
Corp.
Baltimore Gas & Electric

3onv. debs.
onv. sub. debs,

60.0
25.0

1988
1983

4-1/2
6-1/2

4.50
6.50

Ba

3.F. debs
, pfd. stk.

20.0
30.0

1979

7-1/2

7.50

--

Si-ate & Local Government
NONE
Other
NONE




K-2

FOOTNOTES:
*
1/
2/
3/

4/

Rights offering.
Includes corporate and other security offerings of $15 million and
over; State and local security offerings of $10 million and over.
Includes foreign government and International Bank for Reconstruction
and Development issues and non-guaranteed issues by Federal Agencies.
In the case of State and local Government Securities, G.O. denotes
general obligation; Rev.-Ut., revenue obligations secured only by income
from public utilities; Rev.-S.T., .revenue bonds secured by revenue from
specific taxes only; Rev.-Rent., revenue bonds secured solely by lease
payments.
These debentures were sold with warrants; the debentures were priced
at $1,000, the warrants at $75.




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

596
401
512
783
768
505
865
633
449
683
494
695
485

1,449
1,636
1,261
694
534
1,357
826
968
531
873
758
1,103
1,193

100
40
100
65
50
845
402
60
130
15
45
500

Corporate
2,065
1,922
1,576
1,335
1,090
2,694
2,129
1,892
736
1,105
935
1,612
1,403

Subsequent to
date shown
State and
local govt.
616
402
575
903
889
743
1,684
1,076
937
1,079
624
1,069
640

,

Other 2/
115
70
150
159
-126
260
875
502
75
265
125
60
.515

Forthcoming Large Offerings as of July 5, 1968.

Type

Corporate
American Export Industries, Inc
Lone Star Cement
Commonwealth Edison Company
Standard Oil of New Jersey
Houston Lighting & Power Co.
American Broadcasting Co.
Allegheny Beverage Corporation
New England Power Company
J.C. Penney
Metro-Goldwyn-Mayer Inc.
Public Service of Colorado
General American Transportation
Corporation
Pacific Lighting Service & Supply
Company
Pacific Telephone & Telegraph Co.
*Packaging Corp. of America
General Telephone of Ohio
McDonald's Corporation
General Public Utilities Corp.
General Mills Inc.




Conv. sub. debs.
Conv. debs.
1st mtg. bds.
Debs.
Cum. pfd. stk.
Conv. debs.
Conv. sub. debs.
1st mtg. bds.
Conv. debs.
Conv. debs.
1st mtg. bds. .
Equip, tr. cert.
S.F. debs.
Debs.
Debs.
Debs.
Conv. debs.
Com. stk.
Com. stk.

Amount
(millions
of
dollars)

50.0
'• 30.0
50.0
250.0
25.0
47.5
20.0
20.0
125.0
35.0
25.0

Approxima te da te of
offering

July
July
July
July
July
July
July
July
July
July
July

8
8
9
11
11
15 (rts.exp.)
15
15
16
16
16

50.0

July

18

30.0
165.0
25.0
15.0
20.0
25.5
45.0

July
July
July
July
July
Aug.
July

18
23
23
24
30
9(rts. exp.)

L-2
Forthcoming Large Offerings as of July 5, 1968.

Type

Corporate (Cont'd)
Chemical Bank New York Trust Co.
Wyle Laboratories
National Fuel Gas Company
Okonite Company
LTV Aerospace Corporation
Piedmont Aviation
Computer Applications
Commonwealth United Corporation
*Apco Oil Company
^Beneficial Finance

Amount
(millions
of
dollars)

52.0
15.0
15.0
25.0
50.0
15.0
15.0
15.0
15.0
25.0

Indefinite (rts. exp.)
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
indefinite
Indefinite
Indefinite

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

78.0
50.5

July
July,

9
9

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

30.0
20.0
30.4
13.7
100.0
16.0

July
July
July
July
July
July

9
9
10
10
11
15

Rev. -Q.-Ut.

100.0

July

16

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

12.0
44.5
106.9
12.0
35.0
29.2

July
July
July
July
July
July

16
16
16
23
23
24

G.O.
G.O.
G.O.
Rev. -Q.-Ut,
Rev. -Rent.
Rev.,-Rent.

10.0
16.0
20.3
120.0
75.0
250.0

July 24
July
6
Aug.
Indefinite
Indefinite
Indefinite

75.0
25.0
15.0

9
July
July 25
Indefinite
Indefinite

Other
Province of Ontario
*Province of Nova Scotia
Canadian Utilities Ltd.
Husky Oil Canada Ltd,




offering

Conv. cap. notes
Conv. sub. debs.
S.F. debs.
Debs. w/wts
Debs, w/wts.
Conv. debs.
Conv. debs.
Conv. debs.
Conv. debs.
Debs.

State and local Government
State of New York
Dade Company Port Auth., Florida
Los Angeles, Calif., Unified Sch.
District
Iberville Parish, Louisiana
East Baton Houge Parish, La.
Passaic Co., New Jersey
•*State of California
State of Texas
Pennsylvania State Highway &
Bridge Authority
Nashville & Davidson County,
Texas
State of Maryland
*New York City
^Atlanta, Georgia
Los Angeles Dept. of Airports
Philadelphia, Pennsylvania
Cook County, Thornton Twp. HSD
#205," Illinois
State of Oklahoma .
*State of Minnesota
Kentucisy. Turnpike Auth.
*Ardmore Development Authority
Consumers Public Pwr. Dist., Neb.

Approximate date of

Debs.
Debs.
S.F. debs, w/wts.
Com. stk.

20.0

L-3

FOOTNOTES:
*—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.




A
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part Is

Sale Date

Amount
(millions
of
dollars)

Public Offerings

Issuer and Description of Issue

A.

Sold;

Mar. 1 through

juLy

5, 1968.

International Nickel Company — Debentures
maturing 1993, reoffqred to yield 6.85%.

March

28

150.0

April

16

75.0

Lakehead Pipeline Co. — 7-1/8% S.F. debentures,
maturing 1993, reoffered to yield 7.17%.

April

17

20.0

New Brunswick Higher Education Commission - (Canada) -7% S.F. debentures maturing 1993, reoffered to yield
7.15%.

April

18

50.0

Province of Quebec — 7% debentures maturing 1989,
reoffered to yield 7.25%.

May

15

20.0

Montreal Catholic School Commission—7-1/2% S.F. debs,
maturing 1993, reoffered to yield 7.88%.

May

21

25.0

Newfoundland and Labrador Power Commission—7-3/4%
S.F. debentures, maturing 1993, reoffered to yield 8%.

May

28

•

100.0

Canada, Government of, 6-7/8% bonds maturing 1988,
reoffered to yield 6.90%.
B.

Prospective Offerings

Indefinite
15.0
Canadian Utilities, Ltd., — S.F. debs with warrants.
^Indefinite
20,0
Husky Oil Canada.,. Ltd.
Common Stock. .
*July 9
75.0
Province of Ontario — Debs.
*July 25
25.0
Province of Nova Scotia — Debs.
* - Included in table for first time.
** - Issues sold to investors outside of TJ.S.
*** - issue subject to interest equalization tax.




2%

M-2
PART II:

Date Reported

Private Placements —

Amount
(millions
of
dollars)

*

Reported March 1 through July 5 > 1968.

Issuer and Description of Issue

3/1/68

12.0

Edmonton (City of Alberta, Canada),
U.S. 6-3/4% debentures maturing Jan., 1993.

3/15/68

35.0

Mexico - (United Mexican States) external
7-1/4% bonds due 3/1/73.

4/29/68

27.8

Arctic LNG Transportation Co. (Liberian Corp.)
6-5/87, notes maturing 1991. $21.3 take down.

5/20/68

60.0

Eurocan Pulp & Paper Co., Ltd. - (British
Columbia) 1st and collateral --7-1/2%,
maturing 1993.

6/68

29.4

Seaboard Finance Co. of Canada, Ltd., Sr. notes
maturing 1983, take down at various dates
through 1969.

jNote: 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 the Exhibit and that shown in Exhibits I and J because the latter
includes privately placed securities in the period in which funds are actually taken down
but only in the amount of takedown while the placements shown in this exhibit are included
when reported, frequently with little or no information concerning"timing of takedown.
Full or partial takedown may take place both prior and subsequent to the date a placement
is reported.