Full text of H.16 Capital Market Developments : June 22, 1959

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Not f o r P u b l i c a t i o n

DEC0HTE0L1ED

AFTER SIX MONTHS

H.lii

June 22, 1959
CAPITAL MARKET DEVELOPMENTS
( I n c l u d i n g Q u a r t e r l y Review of
Corporate S e c u r i t y Financing)

During t h e week ending June 1 9 , l a r g e p u b l i c s e c u r i t y f i n a n c i n g i n c l u d e d t h e e x p i r a t i o n of s u b s c r i p t i o n r i g h t s f o r a $23 m i l l i o n
c o r p o r a t e i s s u e and S t a t e and l o c a l government i s s u e s amounting t o $h2
m i l l i o n . The c a l e n d a r f o r t h i s week i n c l u d e s a l a r g e r volume of s e c u r i t y o f f e r i n g s . C o r p o r a t i o n s a r e expected t o s e l l l a r g e i s s u e s w i t h
t o t a l proceeds of $130 m i l l i o n while S t a t e and l o c a l government i s s u e s
t o t a l i n g $70 m i l l i o n a r e scheduled f o r s a l e .
Bond y i e l d s - Changes i n y i e l d s on o u t s t a n d i n g bonds were
mixed a g a i n l a s t week. Yields on c o r p o r a t e bonds changed only s l i g h t l y
and t h o s e . o n U. S. Government o b l i g a t i o n s remained s t a b l e . S t a t e and
l o c a l government bond y i e l d s , however, i n c r e a s e d s h a r p l y .
Mortgage and bond y i e l d s - Y i e l d s i n c r e a s e d s h a r p l y l a s t month
on b o t h mortgages and c o r p o r a t e bonds. FHA mortgage y i e l d s i n c r e a s e d
6 b a s i s p o i n t s t o 5.6k p e r c e n t , s l i g h t l y above the peak reached i n l a t e
1957. Y i e l d s on new c o r p o r a t e bonds i n c r e a s e d even more, however, and
t h e s p r e a d between bond and mortgage y i e l d s narrowed t o 83 b a s i s p o i n t s ,
t h e s m a l l e s t s p r e a d s i n c e mid-1957.
Stock p r i c e s - Stock p r i c e s c o n t i n u e d t o d e c l i n e l a s t week
i n reduced t r a d i n g volume. Standard and P o o r ' s index of %00 common
s t o c k s c l o s e d a t 57.13 on June 19 — . 1 6 lower than a week e a r l i e r .
The volume of t r a d i n g averaged 2 . 6 m i l l i o n s h a r e s a day — t h e s m a l l e s t
volume s i n c e l a s t August.
Corporate S e c u r i t y O f f e r i n g s
i n t h e F i r s t Q u a r t e r 1959
Net p r o c e e d s f o r new c a p i t a l - C o r p o r a t i o n s s o l d $2.2 b i l l i o n
of s e c u r i t y i s s u e s t o o b t a i n new c a p i t a l in t h e f i r s t q u a r t e r t h i s y e a r ,
about 30 p e r c e n t l e s s t h a n a y e a r e a r l i e r . Most m a j o r groups of i s s u e r s
s o l d a s m a l l e r volume of o f f e r i n g s i n t h e p a s t q u a r t e r t h a n i n t h e c o r responding months of 1958.
E l e c t r i c , gas and w a t e r u t i l i t i e s were t h e most important
group of i s s u e r s d u r i n g t h e f i r s t t h r e e months, o f f e r i n g s e c u r i t i e s
w i t h p r o c e e d s of $813 m i l l i o n . This volume was oner-fourth below t h e
heavy volume i n 1958 and o n e - s i x t h below t h e volume i n t h e comparable
p e r i o d of 1957.




H.lli

-

2 -

Table 1
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 f o r New C a p i t a l
by Type of B u s i n e s s of I s s u e r
1 s t Q u a r t e r 1955-1959
(Net p r o c e e d s i n m i l l i o n s of d o l l a r s )

All corporate offerings

1959

1958

. 1957

1956

1955

2,216

3,139

3,1*1*5

2,102

2,16k

1,297
106
308
1*8
17
51
18
91
23
3
36
2I4
6
1*
562

606
15
61
63
21*
1*8
. 13
. 53
2
1*
Ik
68
1*0
1*
197

'752
36
9
22
36
1*7
22
1*1*
30
5
2
1
10
1*
k8k

981

1*51

1*87

Manufacturing
P r i m a r y i r o n and s t e e l
Primary n o n f e r r o u s m e t a l s
Paper
Foods
Chemicals
E l e c t r i c a l machinery
N o n e l e c t r i c a l machinery
Fabricated metal products
Beverages
Other t r a n s p o r t a t i o n equipment
T e x t i l e s and a p p a r e l
Rubber p r o d u c t s
Printing
Other 2/

3%
63
55
38
3k
33
25
19
17
15
7
6
k
3
1*1*

E l e c t r i c , gas and w a t e r u t i l i t i e s

813

1,091

Communication

105

867

1*28

ll*l

53

52

95

112

85

53

Other t r a n s p o r t a t i o n

23k

90

90

1*9

39

Commercial and o t h e r

181

1*6

67

85

123

32

53

83

1*6

78

1+35
205
230

382
2I4O
11*2

387
208
179

638
1*55
183

580
1*38
11*2

Railroad

Mining
F i n a n c i a l and r e a l e s t a t e
S a l e s and consumer f i n a n c e c o s .
Other

5iU
23
6k
76
3
67
1*3
58
k
1
1*
6
1
k
160

.

2 / I n c l u d e s s m a l l volume of f o r e i g n i s s u e s n o t f u r t h e r c l a s s i f i e d i n t h e manuf a c t u r i n g group.
'
z
N o t e . — D e t a i l s may n o t a d d t o t o t a l s due t o r o u n d i n g .
S o u r c e . — S e c u r i t i e s and Exchange Commission and F e d e r a l R e s e r v e .




S e c u r i t y i s s u e s of f i n a n c i a l and r e a l e s t a t e companies, w i t h
t o t a l p r o c e e d s of $1*35 m i l l i o n , were o n e - e i g h t h above t h e c o r r e s p o n d i n g q u a r t e r of 1958. A moderate d e c l i n e i n o f f e r i n g s made by s a l e s
and consumer f i n a n c e companies was more t h a n o f f s e t by an i n c r e a s e d
volume of i s s u e s by banks and o t h e r f i n a n c i a l companies. U n l i k e l a s t
y e a r , when one l a r g e i s s u e by General Motors A c c e p t a n c e C o r p o r a t i o n
a c c o u n t e d f o r o v e r o n e - h a l f of t h e p r o c e e d s of a l l s a l e s and consumer
f i n a n c e company o f f e r i n g s , t h e r e were no i s s u e s by t h e s e companies of
o v e r $75 m i l l i o n i n t h e f i r s t q u a r t e r .
New i s s u e volume by m a n u f a c t u r i n g companies was t h e t h i r d
most i m p o r t a n t c a t e g o r y , w i t h p r o c e e d s of $363 m i l l i o n . T h i s volume
was 30 p e r c e n t s m a l l e r t h a n t h a t - o f t h e f i r s t q u a r t e r of 1958 and t h e
s m a l l e s t volume of s e c u r i t y s a l e s by m a n u f a c t u r i n g companies s i n c e t h e
f i r s t q u a r t e r of 1954. The volume of s e c u r i t i e s s o l d was m o d e r a t e f o r
a l l t y p e s of m a n u f a c t u r i n g i n d u s t r i e s . I n d u s t r i e s s e l l i n g a l a r g e r
volume of i s s u e s t h i s y e a r t h a n l a s t i n c l u d e d i r o n and s t e e l , f a b r i c a t e d m e t a l p r o d u c t s , f o o d s and b e v e r a g e s . N o n f e r r o u s m e t a l , machinery
and chemical m a n u f a c t u r e r s s o l d a s m a l l e r volume of i s s u e s t h i s f i r s t
quarter.
New c a p i t a l o f f e r i n g s by communications companies t o t a l e d
$105 m i l l i o n , about o n e - t w e l f t h t h e r e c o r d volume l a s t y e a r which i n c l u d e d a »713 m i l l i o n c o n v e r t i b l e d e b e n t u r e by AT&T. New f i n a n c i n g
by t r a n s p o r t a t i o n companies ( o t h e r t h a n r a i l r o a d s ) and commercial and
o t h e r companies was i n l a r g e r volume t h a n a y e a r e a r l i e r , w h i l e new
i s s u e s by r a i l r o a d s and mining companies were i n s m a l l e r volume.
T o t a l g r o s s p r o c e e d s - Gross p r o c e e d s f r o m c o r p o r a t e o f f e r i n g s , which i n c l u d e r e f u n d i n g i s s u e s and c o p t s of f l o t a t i o n , were $ 2 . 3
b i l l i o n i n t h e f i r s t q u a r t e r of 1959, 30 p e r c e n t below t h e volume a
y e a r e a r l i e r . Refunding of o u t s t a n d i n g s e c u r i t i e s i s s u e s was v e r y
s m a l l — $1+7 m i l l i o n a s compared w i t h $131* m i l l i o n i n t h e f i r s t t h r e e
months of 1958 when i n t e r e s t r a t e s were much l o w e r .
P u b l i c l y - o f f e r e d i s s u e s t o t a l e d $1.1* b i l l i o n , t w o - f i f t h s
l e s s t h a n in 1958, w h i l e p r i v a t e p l a c e m e n t s amounted t o n e a r l y $900
m i l l i o n , o n e - t e n t h l a r g e r . P u b l i c o f f e r i n g s r e p r e s e n t e d 62 p e r c e n t
of t o t a l p r o c e e d s ; i n f i r s t q u a r t e r 1958 t h e y had a c c o u n t e d f o r 76
p e r c e n t . I n c o n t r a s t , t h e p r o p o r t i o n a t e s h a r e of p r i v a t e l y - p l a c e d
i s s u e s i n c r e a s e d from, 2l* p e r c e n t t o 38 p e r . c e n t .
The volume of common s t o c k f i n a n c i n g was s u b s t a n t i a l l y l a r g e r
t h i s y e a r t h a n l a s t , b u t d e b t and p r e f e r r e d s t o c k f i n a n c i n g was s m a l l e r .
Debt f i n a n c i n g was r e l a t i v e l y much l e s s i m p o r t a n t t h i s y e a r t h a n l a s t ,
a c c o u n t i n g f o r 72 p e r c e n t of t o t a l o f f e r i n g s ; i n t h e f i r s t q u a r t e r l a s t
y e a r t h e s e o f f e r i n g s had a c c o u n t e d f o r 86 p e r c e n t of t h e t o t a l . Conv e r t i b l e bond i s s u e s a c c o u n t e d f o r 8 p e r c e n t of a l l d e b t o f f e r i n g s ,
much l e s s t h a n l a s t y e a r when t h e l a r g e AT&T i s s u e was s o l d .




H.lU

- k Table 2
T o t a l 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 by Type of I s s u e
1 s t Q u a r t e r 1955-1959
( G r o s s p r o c e e d s i n m i l l i o n s of d o l l a r s )

Type of i s s u e

1959

1 1958

1

1957

1

1956

I

1955

Total corporate offerings

2,311

3,318

3,558

2,250

2,530

Type of o f f e r i n g
Public
Private

1,125
687

2,521
797

2,626
932

1,201
1,01*8

1,739
791

Type of s e c u r i t y
Bonds and n o t e s
Public
Private

1,662
787
875

2,81*6
2,067
779

2,706
1,798
908

1,706
683
1,02k

1,662
89k
768

Preferred stock

138

182

98

191

111

Common s t o c k

511

289

753

352

. 758

D o t e . — D e t a i l s may n o t add t o t o t a l s due t o r o u n d i n g .
S o u r c e . — S e c u r i t i e s and Exchange Commission.
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
developments i s p r e s e n t e d i n t h e 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 Research 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 Reserve System.




HIGH-GRADE

BOND

YIELDS

CORPORATE

Aoe

U . S . GOVERNMENT
AND LOCAL
GOVERNMENT A o e

LOWER-GRADE

BOND

YIELDS

CORPORATE

lee

An
f

1 r-J
. STATE

/\




AND

LOCAL

GOVT.

I n

iV

H.lU

kixh.i.bit b

•

v>

Tables i'or E x h i b i t A
High-grade Bond Yields

Date

Corporate
Aaa 1 /

Spread between
U. S. Govt, and
Corporate S t a t e and
Aaa
l o c a l Aaa

S t a t e and
l o c a l govt.
Aaa J /

U. S. Govt,
long-term 2 /

( P e r cent)
1951* - Low
1957 - High
1958 - High
Low
1959 - High
Low

2.85
It.ll*
ii.13
3.55
1U7
h.09

May 22
Ivia,y 29
June 5
June 12
June 19 2/

it. 39
Ut2
it.itit
Lit7
it.it6

(it/23)
(9/27)
(10/10)
(5/2)
(6/12)
(1/9)

2.1*5
3.76
3.81*
3.07
it.ll
3.83

(0/6)
(10/18)
(12/26)
(lt/25)
(5/22)
(1/2)

1.90 ( 9 / 2 )
3.U5 ( 8 / 2 9 )
3 . 3 1 (9/11)
2.61* ( 5 / 1 )
3.39(6/18)
3.06 (3/2D)

.30
.60
.51
.22
.30
.16

.30
.1*7
.72
.3U
.92
.65

3.31
3.31
3.31
3.32
3.39

.28
.3it
• 3it
.36
.37

.80
.77
.79
.77
.70

it.ll
it.08
it. 10
it. 09
it. 09
Lower-grade Bond Y i e l d s

Date

Corporate
Baa 1 /

.

S t a t e and
l o c a l govt.
Baa y

Spread between
Aaa and Baa
S t a t e and
Corporate
local govt.

(Per c e n t )
1951* - Low
1957 - High
1958 - High
Low
1959 - High
Low

3.1ti* (12/31)
5 . 1 0 (11/29)
lt.96 ( 1 / 3 )
It. 51 ( 7 / 1 1 )
5.01* (6/19)
it.83 (it/17)

2.93
it. 51
i*,3i*
3.61*
it. 29
3.92

May 22
May 29
June 5
June 12
June 19 £ /

it.97
5.01
5.03
5.03
5.01*

it. 20
it. 20
it. 20
it.23
1*.29

(8/5)
(8/29)
(9/11)
(5/1)
(6/18)
(3/26)

.52
1.27
1.26
.77
.77
.56

.96
1.21
1.11
.93
.98
.86

.58
.59
..59
.56
.58

.69
.89
.89
.91
.90

•qJ P r e l i m i n a r y .
1 / Weekly average of d a i l y f i g u r e s . Average term of bonds included i s 25-26 y e a r s .
2 / Weekly average 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 or c a l l a b l e i n
10 y e a r s or morn.
J / 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 term
i s 20 y e a r s .
Note.—highs and lows a r e 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 d a t e s f o r
d i f f e r e n t serien.




STOCK

MARKET

MORTGAGE

AND

BOND




YIELDS

Exhibit D - Tables f o r Exhibit C
H.lL

Stock Market
Trading
volume 3/
yields 2/ (millions
( p e r c e n t ) of s h a r e s )
Common

Stock p r i c e
index 1 /

Date

Stock market customer c r e d i t
Customers 1
Bank
Total debit b a l - loans to
"others" 5 /
ances V
( M i l l i o n s of d o l l a r s )

1953-1958 - High
Low
1959 - High
Low

514.11
22.95
58,68
5L37

April
May
June 5
June 12
June 19 2 /

57.10
57.96
57.51
57.29
57.13

(12/24/58)
(9/18/53)
(5/29)
(2/6)

3.30
6.25
3.16
3.3k

4.9
0.9
4.3
2.6

4,492
2,055
r/4,721
4,527

3,285
1,314
3,401
3,253

1,317
669
1,332
1,210

3.25
3.20
3.23
3.24
3.25

3.4
3-U
3.0
3.1
2.6

r/4,721
4,711
n.a.
n.a.
n.a.

3,401
3,385
n.a.
n.a.
n.a.

1,320
1,326
1,324
1,320
n.a.

n.a,—Not a v a i l a b l e .
g / Prelindnary.
1 / Standard and Poor's composite index of 500 common s t o c k s , weekly c l o s i n g p r i c e s , 1941-43=10. Monthly data
are averages of d a i l y f i g u r e s ra th er than of Fridays' o n l y . Highs and lows are f o r M d a y s 1 data o n l y .
2 / Standard and Poor's composite stock y i e l d based on Wednesday data converted t o weekly c l o s i n g p r i c e s by
Federal Reserve. Y i e l d s shown are f o r d a t e s on which price index reached i t s h i g h or low.
3 / Averages of d a i l y t r a d i n g volume on the New York Stock Exchange.
4 / End of month f i g u r e s f o r member firms of the New York Stock Exchange which carry margin accounts $ excludes
balances secured by U. S. Government o b l i g a t i o n s .
5 / Wednesday f i g u r e s f o r weekly r e p o r t i n g member banks. Excludes loans f o r purchasing or c a r r y i n g U. S , Government s e c u r i t i e s a t banks i n New York and Chicago. Weekly r e p o r t i n g banks account for about 70 per cent of l o a n s t o
o t h e r s . For further d e t a i l see B u l l e t i n .

Mortgage and Bond Y i e l d s 1 /
FHA
mortgages 2 /

Date

Spread between new
Aaa c o r p o r a t e
c o r p o r a t e bonds and
bonds 1 /
New 3 / 1 Seasoned V FHA m o r t g a g e s | S e a s o n e d bonds

1953-1958 - High
Low
1959 - High
Low

5.63 (11/57)
4.56 (2/55)
5.64
5.57

4.81 (6/57)
2.74 (3/54)
4.81
4.29

4.12 (9/57)
2.85 (4/54)
4.37
4.12

1.96
.54
1.29
.83

.90
- . 12
.44
.15

1958 - Dec.
1959
Feb.
Mar.
Apr.
May.

5.60
5.60
5.58
5.57
5.58
^.6h

4.44
4.36
4.29
4.30
4.53
4,91

4.08
4.12
4.14
4.13
4.23
4,37

1.16
1.24
1.29
1.27
1.05
,93

.36
.24
.15
.17
.30
»44

,

1 / Neither mortgage nor bond y i e l d s take i n t o account s e r v i c i n g c o s t s which are much higher f o r mortgage a than
bonds. G e n e r a l l y , bonds pay i n t e r e s t semi-annually) mortgages, monthly. Mortgage y i e l d s / I f computed a s e q u i v a l e n t
t o a semiannual I n t e r e s t investment, would be s l i g h t l y higher than g i v e n i n the t a b l e ,
2 / Based on FHA f i e l d - o f f i c e opinions about average bid p r i c e s I n the p r i v a t e secondary market f o r new-home
mortgages for 1 remediate d e l i v e r y . Since l a t e 1955, data r e l a t e only t o 25-year mortgages w i t h downpaymenta of 10
per cent or more, weighted by probable volume of t r a n s a c t i o n s . Y i e l d s computed by FRB, assuming 25-ycnr mortgage a
are paid o f f In 12 y e a r s . Dashed l i n e s i n d i c a t e p e r i o d s of adjustment t o changes i n the c o n t r a c t u a l i n t e r e s t r a t e .
3 / F i r s t National City Bank of New York. Averages of o f f e r i n g y i e l d s of a l l new I s s u e s o f p u b l i o l y - s o l d bonds
rated Aaa, Aa or A by Moody's I n v e s t o r s S e r v i c e ( e x c e p t s e r i a l and c o n v e r t i b l e I s s u e s and o f f e r i n g s of n a t u r a l gas
and f o r e i g n companies) weighted by s i z e of i s s u e . Y i e l d s -an Aa arxl A I s s u e s are f i r s t a d j u s t e d t o an Aaa b a s i s
by the spread between y i e l d s of outstanding bonds i n t h e s e c a t e g o r i e s and t h ie on \ a a - r a t e d bonds. The s e r i e s r e f l e c t s change a i n i n d u s t r i a l oomp o a i t l o n , " maturity, t y p e , e t o . of new o f f e r i n g s .
4 / Moody's I n v e s t o r s S e r v i c e , Monthly averages of d a i l y d a t a . See E x h i b i t B.




Exhibit E
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 Placements
( I n m i l l i o n s of d o l l a r s )

1959
January
February
March
April
May
June

Corporate 1 /
19 SB r/ |

New c a p i t a l
1957

19 59

S t a t e and l o c a l 2/
1958
1
1
1957

81*0
745
631

728
8#
1,553

1,060
1,065
1,320

636
856
644

812
953
511

742
572
506

2/826
#750
e/850

1,110
597
887

931
765
1,453

927
2/580
e/800

798
8#
551

765
546
393

1,107
54o
1,111

1,003
924
973

806
403
651

529
584
431

862
518
920

1,090
789
1,076

456
474
435

#8
633
698

July
August
September
October
November
December
1st
2nd
3rd
4th

I

quarter
quarter
-quarter
quarter

2,216
a/2,1,26

3,139
2,623
2,760
2,300

3,445
3,149
2,899
2,95k

2,136
e/2,307

2,276
2,244
1,860
1,365

1,820
1,704
1,544
2,029

1 s t half
Three q u a r t e r s
Year

e/4,622

5,762
8,522
10,823

6,591
9,493
12,447

e/4,443

4,520
6,380
7,746

3,524
5,069
7,099

Excluding f i n a n c e companies bj
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

2,011
e/2,176

Year

2,899
2,586
2,731
2,213

3,237
2,889
2,582
2,810

10,129

11,518

' e/ Estimated.
jd/ P r e l i m i n a r y .
r j Revised.
1 / S e c u r i t i e s and Exchange Commission e s t i m a t e s of n e t p r o c e e d s .
2/ Investment Bankers A s s o c i a t i o n of America e s t i m a t e s of p r i n c i p a l amounts.
3 / I n c l u d e s $718.3 m i l l i o n AT&T c o n v e r t i b l e d e b e n t u r e i s s u e .
C / 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.




Exhibit F

H.lii

Other 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 )
Long-term
F e d e r a l agenc]T 3 /
F o r e i g n government 2 /
1957
1
1958
1958
1959
1959
i
1
1957
81*
1*9
30

199

1,163
251

—

175

—

—

72

January
February
March

77
59
2

197
Sh

April
May
June

56

139
200
120

123
1*8
1+2

523
—

60

9
5
17

28
7
30

161*

*—

October
November
December

57
123
7k

1*
60
1

220

Year

995

July
August
September

125

—
—

215

.

WW
100
—

2,321

507

Short-1
S t a t e and l o c a l government h/

572

F e d e r a l agency 3 /

190

233
l*6o
273

326
455
1U7

359
500
>89

371
208
11*1*

638
1*30
5d5

E/li97

357
3 Sh
261*

205
337
153

1*86
675

209
161
329

336
1*69
501

July
August
September

289
1*23
369

272
272
252

1*37;
206
330
•

221*
370
51%

October
November
December

231
1*15
21*3

303
9k
1*59

1*51* .
Ill*
137

3,910

3,271*

January
February
March
April
May

Year

'

3,098

1,238
255
116
5,543

STPreliminary.
1 / Data p r e s e n t e d i n t h i s e x h i b i t d i f f e r from t h o s e i n E x h i b i t E 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 , a r e i n c l u d e d . Long-term 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 one 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 United S t a t e s by f o r e i g n governments and
t h e i r s u b d i v i s i o n s and by 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 guaranteed by the U. S. Government. . Source: l o n g - t e r m , S e c u r i t i e s
and Exchange Commission; s h o r t - t e r m , F e d e r a l Reserve.
h / 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 o r c e r t i f i c a t e s and P u b l i c
Housing A u t h o r i t y n o t e s . I n some i n s t a n c e s FMA. n o t e s i n c l u d e d may have a somewhat
Digitized
FRASER
l o n gfor
e r term
t h a n one y e a r . Source: Bond Buyer.



3**8«6*ei rn a •

i

it. lit
Larpe Long-term I'liblic S e c u r i t y I s s u e s f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Proceeds of Large I s s u e s O f f e r e d
( M i l l i o n s of d o l l a r s )

Corporate

Month

1958 - May

S t a t e and
l o c a l government

505
195
275
109
288
172
259
229
335
551
369
#3
258

356
281
771
209
825
259
227
305
369
340
215
359
342

July
August
September
October
November
December
1959 - January
February
March
April
May

Other 2/

164
86
41
18
209
100
79
174
35
176
20
50

Large I n d i v i d u a l I s s u e s O f f e r e d June 1 through 19

Issuer

Type 3 /

Amount
Coupon
Offering
( m i l l i o n s Maturity r a t e o r
of
net i n t e r - yield
dollars)
est cost

Rating

CORPORATE
Pub. Service Elec. & Gas
F l o r i d a Power Corp.
F l o r i d a Power & L i g h t Co.
Duke Power Co.
Consolidated Nat. Gas Co.
V i r g i n i a E l e c . & Pwr. Co.

1 s t &ref.mtg.bds.50.0
Com.stk.
17.6
1 s t mtg. bds. 25.0
Pfd. s t k . .
25.1Cap. s t k .
38.6
Com. s t k .
23.ii

1989

5 1/8

5.00

Aa

1989

5

4.95

Aa

STATE AND LOCAL GOVERNMENT
Los Angeles Co. Flood Cont r o l Dist., California
Memphis, Tennessee
Pennsylvania S t a t e Hwy. &
Bridge A u t h o r i t y
New York, New York
S t a t e of Maryland
S t a t e of C a l i f o r n i a
P o r t of New York A u t h o r i t y

G.C.
G.O.
Rev. - U t .
G.O.
G.O.
G.O.
Rev.-Ut.




40.0
16.0

1961-89
1960-89

3.94
3.51

10.0 1961-79/67 3 . 5 5
27.0 1960-7U
3.57
1 0 . 5 1962-71
3.15
100.0 1961-65/80 3.94
30.0 1960-79/68 4.09

2.1*0-1*.00, , Aa
2.30-L2OH/ Aa
2.60-3.65
2.1*0-3.69
2.50-3.25
2.50—It. 00
2.50-4.15

Aa
A
Aaa
Aa
A

H.lit
Large I n d i v i d u a l I s s u e s O f f e r e d June. 1 t h r o u g h 19 ( C o n t ' d )

Type 3 /

Amount
Coupon
(millions
rate or Offering
Maturity
of
net inter- yield
dollars)
e s t cost

Rating

STATE AND LOCAL GOVERNMENT
(Cont'd)
S t a t e of C o n n e c t i c u t
Yonkers, New York

Rev.-S.T.
G.O.

62.5
11.6

196it-97/69
1960-79

It. 30
3.96

3.25-^.25
2.5O-U.10

A
A

None
n.a.—Not available.
~
~~
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 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--for 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 by F e d e r a l ' a g e n c i e s .
3 / 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 . , revenue o b l i g a t i o n s s e c u r e d only by income from p u b l i c . u t i l i t i e s ; R e v . - Q . U t . , revenue bonds s e c u r e d o n l y by revenue f r o m q u a s i - u t i l i t i e s ;
R e v . - S . T . , revenue bonds s e c u r e d by revenue 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 . ,
revenue bonds s e c u r e d s o l e l y by l e a s e payments.
h/ 1/ks of 1989 n o t p u b l i c l y r e o f f e r e d .




I.Ill

Exhibit H
Forthcoming Large Long-term Public S e c u r i t y O f f e r i n g s f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large I s s u e s

Date of
computation

1958 - May 29
June 30
J u l y 31
Aug. 29
S e p t . 30
Oct. 31
•Nov. 28
Dec. 31
1959 - Jan. 30
Feb. 27
Mar. 31
Apr. 30
May 29

During month f o l l o w i n g
date shown
S t a t e and
Corporate l o c a l govt. Other 2 /
266
768
161
785
113
20li
301
210
270
198
396
246
287

177
225
55
21a
295
258
229
261
551 292
550
251*
21*7

Subsequent t o
d a t e shown
S t a t e and
Corporate l o c a l g o v t . Other 2 /

36

71
75
1*5
20
50

208
235
125
1*35
5214
675
683
515
856
1*81
761
517
761

I46I1
1,01*8
381
91U
216
326
1*01
370
365
279
1*7 6
31*6
332

36

71
7g
1*5
20
50

Forthcoming Large O f f e r i n g s , a s of June 19
Type

Amount
Approximate d a t e
(millions
of o f f e r i n g
of d o l l a r s )

CORPORATE
^ S p i e g e l , Inc.
P h i l a d e l p h i a E l e c t r i c Co.
P h i l i p Morris, Inc.
Northern I l l i n o i s Gas Co.
Long I s l a n d L i g h t i n g Co.
I n t e r n a t i o n a l Recreation Corp.
United S t a t e s Plywood Corp.
•^Pennsylvania E l e c t r i c Co.
Commerce Oil R e f i n i n g Corp.

Conv. sub. deb.
Com. s t k .
S.F. deb.
1 s t mtg. b d s .
1 s t mtg. b d s .
Com. s t k .
Conv. sub. deb.
1 s t mtg. b d s .
Deb., b d s . & common

l$.k
29.1
I4O.O
20.0
25.0
17.2
15.0
15.0
145.0

June 22
( r i g h t s expire)
June 23
( r i g h t s expire)
June 23
June 21*
June 25
June 30
J u l y 17
Aug. 1*
Summer

STATE AND LOCAL GOVERNMENT
F l o r i d a S t a t e Bd. of Education
Los Angeles Dept. of Wtr. & Pwr.
California
Birmingham, Alabama
T e r r i t o r y of Hawaii
DigitizedSfor
t a t eFRASER
of New York



Rev.

12.0

June 23

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

15.0
22.8
19.8
50.0

June
June
June
June

2k
25
25
30

H.lU

H-2
Forthcoming Large O f f e r i n g s , a s of June 19 ( C o n t ' d )
Type

Amount
Approximate d a t e
(millions
of o f f e r i n g
of d o l l a r s )

STATE AND LOCAL GOVERNMENT ( C o n t ' d )
^Maryland S t a t e Roads Commission
J e f f e r s o n P a r i s h S. D. No. 1 , L a .
* S t a t e of Ohio
^ U n i v e r s i t y of C a l i f o r n i a
^ T e r r i t o r y of Hawaii
C a l i f o r n i a T o l l Bridge Authority
Grant Co. P u b l i c U t i l i t y D i s t . No.2,
Washington
•^Michigan Highway Department
<
Chesapeake Bay F e r r y Commission
Commonwealth of P e n n s y l v a n i a
New York Thruway A u t h o r i t y

Rev.-Ut.
G.O.
Rev.-S.T.
Rev.-Q.Ut.
Rev.-Ut.
Rev.-Ut.
Rev.-Ut.
Rev.vS.T.
Rev.-Ut.
G.O.
Rev.-Ut.

25.0
10.0
31.0
18.0
12.5
3U.0

v

June
July
July
July
July
July

30
2
15
17
21
28

200.0
50,0
1UU.0
120.0
50.0

July
July
Summer
Summer
Summer

20.0
33.2

June 30
July 1

OTHER
^ M o n t r e a l , Canada
M u n i c i p a l i t y of M e t r o . T o r o n t o , Can.

S . F . deb.
S.F. deb.

*—Included in t a b l e f o r f i r s t
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 &L5 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 by F e d e r a l a g e n c i e s .
N o t e . — 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 o f i s s u e : None.




H.14
Y i e l d s on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /

Date
1952 - 1958
High
Low
1958 - May
June
July
August
, September
October
November
December
- Jan. 7
20
28
Feb. 18
Mar. 1 1
25
26
31
Apr. 3
15
16
29
May 1
13
14
20
21
26
June 4
17

Aa-rated o f f e r i n g y i e l d s
A-rated'offering yields
Amount above
Amount above
Actual
Actual
( p e r c e n t ) seasoned y i e l d s ( p e r cent) seasoned y i e l d s
(basis points)
(basis points)
5.00 ( 9 / 1 4 / 5 7 )
2.93 (3/31/SW

87
-3

4i07i/

18
17
28

li.li?!/

18

3.87

5.50 ( 1 1 / 7 / 5 7 )
3.00 ( 3 / 1 7 / 5 4 )
4.07

123
-15

6

4.162/

15

4.75^/

23

4.67

18

5.06

4.85

17
13

5.13

27

23
4.60
4.35#/
4.4o2/
4.43
4.43
4.47
4.60

34
4o
4
ii
9
9
13
22
21
7

4.95
4.95

38
34

5.00
4.95

38
29
4.923/

*—Single o b s e r v a t i o n , n o t an a v e r a g e .
1 / Covers only 30-year f i r s t mortgage bonds, a s r e p o r t e d i n Moody's Bond
Survey. Except where i n d i c a t e d , t h e a c t u a l y i e l d f i g u r e and t h e amount above
seasoned y i e l d s a r e averages of o f f e r i n g s during t h e i n d i c a t e d p e r i o d and of
t h e d i f f e r e n c e s between t h e s e new o f f e r i n g y i e l d s and y i e l d s on seasoned i s s u e s
of s i m i l a r q u a l i t y f o r t h e same day.
Average m a t u r i t y f o r t h e seasoned i s s u e s
v a r i e s from 26 t o 28 y e a r s .
2 / Provides f o r a 5 - y e a r p e r i o d d u r i n g which i s s u e may n o t be c a l l e d f o r
r e f u n d i n g a t a lower coupon r a t e . Monthly a v e r a g e s so marked i n c l u d e one o r
more i s s u e s w i t h such a p r o v i s i o n . Other i s s u e s have no such p r o v i s i o n .
3 / P r o v i d e s f o r a 7 - y e a r p e r i o d during which i s s u e may n o t be c a l l e d f o r

r e f u n d i n g a t a lower coupon r a t e .