Full text of H.16 Capital Market Developments : June 26, 1967
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H. |L6EDEnAL RESERVE BANK
DECONTROLLED AFTER SIX MOOTS
June
26, 1967.
OF R I C H M O N D
\l ArlTi
t ^ - T N THE UNITED STATES
Corporate and municipal bond markets. During this, the last, week
in June, it would appear that over $1.0 billion of new corporate and municipal
securities will be offered to investors. The corporate volume will feature
$190 million of rights expirations in addition to a $125 million Illinois Bell
Telephone offering and a $100 million American Tobacco offering. The municipal
volume meanwhile will include $75 million of Chicago School District bonds and
$70 million of San Francisco B.A.R.T. bonds, and may possibly be augmented by
2 negotiated industrial revenue bonds totalling $113 million. In addition,
there will be a $35 million offering by the Province of Nova Scotia.
Long-term Public Security Offerings!/
(In millions of dollars)
State and focal Government
Corporate
New Capital| Refunding New Capital | Refunding
Sold:
52 week avg.
June
June
16
23
Scheduled:
June 30
1/
228
251
r/347
390
612
.
—
~
--
r/168
280
412
^
^
6
--
—
Federal Reserve estimates are based upon published reports of
issues sold and scheduled for for offerings; corporate rights offerings
are included as of date subscription rights expire.
Yields on new and seasoned corporate bonds advanced last week,
sparking investor interest as they did so. With, in some cases, "record" yields,
last weeks offerings enjoyed a good reception. Price restrictions were terminated
meanwhile on several offerings made in previous weeks, and yields on these
issues subsequently advanced 8 to 16 basis points in free market trading.
Yields on municipals were also up last week, but new issues received
only a fair reception. The Blue List of advertised inventories rose.
H. 14
Yields in Security Markets
Level Latest Week
High-Grade
Notes and Bonds
Change from
preceding week
Corporate
New
Seasoned
5.79
5.45
4-5
+6
4.93
5.08
+7
+12
U.g. Government
Long-term
3-5 year
State and local Govt.
Moody's Aaa
Std. & Poor's high grade
3.83
3.99
v
+5
+5
(
Money Market
Federal funds
Treasury bills
3 -month
6-month
•
. -
4.00
3.47
3.82
-3
,
-10
-3
Corporate Bonds Still in Syndicate
Date
Offered
Amount
(millions of $)
6/20
25.0
6/20
100.0
6/14
25.0
6/1
- 5/9
Rating
Estimated proportion sold
Pet, Inc.,
5-7/8's - 1992
5.9.5
A
98%
Corn Products,.
5-3/4's - 1992
5.79
Aa
95%
Aa
90%
Blackstone Valley Elec.,
6-1/2's - .1997
6.35
A
45%
50.0
Textron,
5-7/8's - 1992
A
75%
15.0
Wickes Corporation,
6's - 1992
6.08
A
85%
Flying Tiger,
6.60's - 1980
Baa
90%
7.0
.
Reoffering
Yield
United Shoe Mach.,
5-3/4's - 1992
5.77
,6/14
6/8
Issuer
.
51.0
5.95
6.60
H. 14
-3Blue List of Municipal Dealers' Advertised Inventories
Latest Week
613
End of Previous Week
578
Recent High
849 (4/26/67)
Home mortgage interest rates and other loan terms. Secondary
market yields on certain FHA-insured new home mortgages rose in May, as early
reports had suggested. The turnaround, which followed 5 successive months
of decline, amounted to 16 basis points (to 6.44 per cent) and raised the
average yield on these mortgages to nearly 100 basis points above the plateau
which prevailed from the spring of 1963 through the summer of 1965.
Interest rates on conventional new and existing home loans (which
are rounded to the nearest 5 basis points) rose by 5 basis points each, as
estimated by the FHA. This rise also followed 5 successive months of interest
rate declines and brought the national average up to a level that was 65
basis points above the 1963-65 plateau.
The turnaround in mortgage yields reflects in large part continuing
pressures on the capital markets stemming from unusually heavy demands,
particularly from the corporate sector.
Yields on new Aaa corporate bonds
which had begun to turn up earlier, rose substantially, by 27 basis points,
in May reducing further the already narrowed spread between these bonds
and FHA mortgages sold in the secondary market to 78 basis points, nearly
matching the historical 1961-66 low. The increased pressure on the mortgage
markets came in spite of continued record net savings-inflows to financial
institutions in May. While commitment volume has increased, instead of buying
completed mortgages, which are still said to be in relatively short supply, mutual savings banks seem to be buying record amounts of corporate bonds,
while savings and loan associations continue to build up their liquidity
and repay debts to the Federal Home Loan Banks.
Conventional loan interest rates and other terms as reported by
the Federal Home Loan Bank Board series, which tends to lag the FHA series
and to be less reflective of current conditions in the market for new
commitments eased further during May. Interest rates declined on both new
and existing homes, mainly as a result of downward movements for savings and
loan association and commercial banks. Moreover, loan-to-value ratios and
maturities eased for both new and existing home loans, by generally larger
magnitudes than had been the case since the series was revised last December.
Stock prices. In active trading, common stock prices declined
somewhat last week. At Friday's close, the Standard & Poor's index of 500
stocks stood at 92.00, down 0.54 from the previous Friday. Trading volume
averaged 9.5 million shares a day.
H.14
STOCK MARKET CREDIT
(In millions of dollars)
Months
Total
Customer
Net Debit
balances with
NYSE member
firms.
Broker & Dealer Credit
Credit
Customers
Money
Bank loc-ns to others
net free
Borrowed
than brokers and =
dealers for purchas- Cust. Other credit
ing & carrvine secur. coll. coll. balances
Outstanding:
1955-56 High
4,047 (5/56) 2,823 (12/56)
1,255 (4/56)
1,873
430
1957-58 Low
3,554 (1/58) 2,482 (12/57)
1,060 (11/57)
1,344
188
1,373
1,121
1,377
1,269
1,727
1,865
2,044
1,801
2,572
1,856
3,892
2,882
318
237
385
235
597
446
1,257
940
1,508
1,091
1,211
1,192
3,393
2,889
2,673
n.a.
51.7
687
799
1,169
1,666
- 1959
1960
1961
1962
1963
1965
-
High
Low
High
Low
High
Low
4,764
4,142
5,602
4,876
7,298
6,833
1964
1965
1966
1967
-
Dec.
Dec.
Dec.
May
7,053
7,705
7,443
8,085
5,079
5,521
5,329
5,926
. -86
-67
2
-103
-58
-254
-186
48
112
-39
59
369
101
107
(4)
(5)
(12)
(7)
(11)
(7)
-3,401.(4)
3,004 (7)
4,259 (12)
3,562 (7)
5,586 (11)
4,863 (7)
(5)
(5)
(8)
(9)
(12)
(2)
. 1,974
2,,184
2,,114
2.,159
(3)
(4)
(4)
(9)
(11)
(8)
2,220
Change in
outstanding:
1-966 - MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec.
1967 - Jan.
Feb.
Mar.
Apr.
May
11
-131*
-59
-286
-223
50
"• 91
-98
70
393
161
116
-19
9
-28*
-1
-32
-37
2
-21
-59
11
24
60
9
-48 -29
42 53
150--102
-45 -10
-223 -19
-232 -51
-30 • 45
76 230
-382--170
n.a.
95
-181
-63
--
-67
-8
12
105
277
22
199
r/ -51
142
Note: With the exception of bank loan data, figures are reported to the New York Stock
|
Exchange by member firms carrying margin accounts. Bank loans to others than brokers and I
dealers for purchasing and carrying securities are for weekly reporting member banks. Net ;
debit balances and customer free credit balances are as of the end of the month; bank loans;
and money borrowed are reported for'the last Wednesday of the month. Numbers in parenthesi
denote month of year. All figures exclude credits on, or to carry, U.S. Govt, securities. ,
EXHIBIT
IO
A. Port 1
HIGH-GRADE
Weekly
1964
1963
Per cent
C O R P O R A T E All
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 All
1965
1966
1967
196#
Exhibit A -- Fart XI
Date
1959-60 - High
1966 - High
- Low
1967 - High
- Low
Hay 26
June 2
9
16
23 £ /
Corporate
i Aaa 1/ .
| State and
U.S. Govt. |
local
long-term 2/ | government
1
Aaa 3/
(per cent)
4.61(1/29/60)
5.52(9/9)
4.73(1/7)
5.45(6/23)
5.00(2/10)
4.42(1/8/60)
4.87(9/2)
4.42(1/7)
4.93(6/23)
4.37(2/3)
5.31
5.36
5.38
5.39
5.45 '
4.83
4.74
4.76
4.86
4.93/
3.65(9/24/59)
4.04(8/25)
3.39(1/13)
3.83(6/22)
3.25(2/9)
3.78
3.78
3.76
3.78
3.83 /
Spread between
U.S. Govt, and
1 State and
Corporate
| local Aaa
Aaa
.59(8/5/60)
.84(12/30)
.14(2/18)
.92
.44
.48
.62
.61
.53
.52
.92(4/22/60)
1.19(2/11)
.77(9/2)
1.16
.74
1.05
.96
1.00
1.08
1.10
£/ Preliminary.
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.
EXHIBIT B, Parr 1
L O N G - T E R M B O N D Y I E L D S , LOWER GRADE
Weekly
CORPORATE Baa
STATE AND LOCAL G O V E R N M E N T Baa
1963
1964
1965
1966
1967
1981
Exhibit B —
Date
Part II
State and
local govt.
Baa 3 /
Corporate
Baa V
Spread between
Aaa and Baa
State and
Corporate
local govt.
(per cent)
1959-60 - High
Year end- 1965
1966 - High
tow
1967 - High
Low
May 26
June 2
9
16
23£/
Note:
5.36(2/12/60)
5.04
6.18(12/30)
5.05(1/14)
6.18(6/23)
5.81(4/14)
6.03
6.07
6.11
6.13
6.18^
For footnotes see Exhibit A.
4.46(1/7/60)
3.79
4.55(8/25)
3.78(1/20)
4.30(6/22)
3.85(4/13)
4.27
4.27
4.27
4.27
4.30
.84
.31
1.08
.31
.69
.31
.65
.37
.72
.71
.73
.74
.73
.49
.49
.51
.49
.47
.81
.82
.39
.62
EXHIBIT C, Part 1
SHORT- A N D I N T E R M E D I A T I - T E R M INTEREST RATES
GOVERNMENT
6 - M O N T H BILLS
Market Yields .
3-5 YEAR ISSUES
F.R. DISCOUNT RATI
3-MONTH BILLS
Market Yields
1964
1965
1966
1967
1968
Exhibit C -- Part II
Date
1959-60 - High
Year end - 1965
1966
1966 - High
Low
1967 - High
Low
May 26
June 2
9
16
^3E/
V
Discount
rate
" 1/
3-month
bills U
Yields
6-month
bills 2/
(per cent)
| 3-5 year
I issues 2/
4.00
4.50
4.50
4.50
4.50
4.50
4.00
4.59(1/8/60)
4.47
4.80
5.52(9/23)
4.39(6/24)
4.81(1/13)
3.41(6/9)
5.07(1/8/60)
4.66
4.92
5.92(9/23)
4.53(6/24)
4.88(1/6)
3.74(6/2)
4.00
4.00
4.00
4.00
4.00 /
3.50
3.43
3.41
3.57
3.47/
3.74
3.74
3.77
3.85
3.82/
Spread between yields on
3-mo. bills and yields on
6-mo . bills 13-5 yr. issues
5.00(12/24/59)
4.90
4.86
5.83(9/2)
4.80(4/8)
5.08(6/23)
4.36(4/7)
4.76
4.66
4.74
4.96
5.08
.79
.19
.12
.52
.09
1.81
.43
.06
.78
.01
.36
.01
1.61
.02
.24
.31
.36
.28
.35
1.26
1.23
1.33
1.39
1.61
Weekly rate shown is that in effect at end of period at the Federal Reserve Bank of
New York.
2/ Market yield; weekly averages computed from daily closing bid prices. Series of 3-5
year issues consists of selected notes and bonds.
Note—Highs and lows are for individual series and may be on different dates for
different series. For spreads, high refers to widest, and low to narrowest.
EXHIBIT
D, 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,
B A N K S A N D OTHER P R I V A T E BORROWERS
W..H,
_ _ _ _ _
PRIME RATE
FINANCE C O M P A N Y PAPER
Directly ploced
3-6 Month:
:
—A
.—-
f
F.R. DISCOUNT RATE
FEDERAL FUNDS
1963
1965
1968
Exhibit D —
Date
Prime rate 1/
Part II
Finance
company
paper 2/
Spread between
3-mo. bills and
Federal funds 3j finance co. paper
(per cent)
1959-60 - High
Year end- 1964
1965
1966
1966 - Low
1967 - High
Low
May 26
June 2
9
16
23 £/
5.00
4.50
5.00
6.00
5.00(3/4)
6.00(1/6)
5.50(6/23)
5.50
5.50
5.50
5.50
5.50
5.13(1/22/60)
4.06
4.75
5.88
4.75(1/7)
5.75(1/6)
4.38(6/23)
4.38
4.38
4.38
4.38
4.38
4.00(5/13/60)
4.00
4.63
5.63
3.55(1/21)
5.25(1/6)
3.75(5/12)
3.90
3.97
3.90
4.03
4.00
1.02
.23
.28
1.08
.20
.97
.52
.88
.95
.97
.81
.91
1/ Weekly rate shown is that in effect at end of period. Prime rate is that
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 tor
different series. For spreads, high refers to widest, and low to narrowest.
EXHIBIT
E, Port 1
STOCK M A R K E T
10#
PRICES
8
STOCK M A R K E T CREDIT
6
* C M M I IN SERIES
4
1963
Milliens
VOLUME
YIELDS
1964
1965
1966
1967
1111
el iherei
Exhibit E -- Part II
1
Date
Stock price
index 1/
1961-62 - High
Low
1966 - High
Low
1967 - High
Low
Apr.
Hay
June
9
16
23 E /
Common
stock
yields 2/
(per cent)
Trading
Stock market customer credit
volume 3/
Customers'
Bank
(millions
Total
(debit bal- loans to
of shares)
ances 4/
"others"5/
(In millions of dollars)
72.04(12/8/61)
52.68(6/22/62)
93.77(2/11)
73.20(10/7)
94.44(5/5)
82.18(1/6)
2.82
3.96
3.CI
3.97
3.10
3.58
10.1
2.4
10.7
5.0
11.3
6.9
90.96
92.59
91.56
92.54
92.00
3.22
3.16
3.20
3.16
3.18
9.4
9.9
9.7
r/11.0
9.5
5,602(12/61)
4,424(1/61)
7,997
7,302
8,085
7,345
4,259(12/61)
3,253(1/61)
5,835
5,169
5,926
5,290
1,418(5/9/62)
1,161(3/8/61)
2.241(7/6)
2,097(12/14)
2,204(6/7)
2,055(2/1)
7,969
8,085
n.a.
n.a.
n.a.
5,819
5,926
n.a.
n.a.
n.a.
2,150
2,159
2,204
2,187
n.a.
n.a. Not Available, j>/ 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.
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
or low.
3/ Averages of daily trading volume on the New York Stock Exchange. Year-end figures are averages
of daily figures for the year.
4V 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 figuresfor 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.
EXHIBIT F, P e r i l
M O R T G A G E A N D B O N D YIELDS
Monthly
HOME MORTGAGES:
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
Exhibit F
FHA
morteajyes 1/
Part II
Conventional
Spread between yields
on conv. &
25-year 30 -year gages 3/ FHA mort
gages
1957
1958
1959-60
1961-66
1966
1967
"
-
High
Low
High
Low
High
High
Low
5.63
5.35
6.24
5.43
6.73
—
---
5.,44
6.,81
6,.62
6,.35
6.00
5.55
6.30
5.80
6.70
6.60
6.4.0
.47
.15
.23
.25
.30
.10
12
Aaa Corporate
Bonds
Spread between
yields on new cor6/ porate bonds and
Seasoned
FHA mtgs. Seasoned
4/
bonds
4.94
3.65
.5.25
4.12
5.82
5.39 '
5.20
4,.12
3,.57
4,,61
4,,19
5.49
5 .20
5 .03
1,.58
.88
1,,69
,77
1.,11
1.26
.78
1.03
.05
.73
-.16
.46
.28
.17
-.02
6,.62
6.60
5.38
1967- -- Jan.
5,.20
1,.24
.18
5.20
6.50
6..46
.04
- 5,
.03
Feb.
1,.26
.17 '
6.,35
6.45
.10
Mar.
5.31
5.,13
.18 ;
1,.04
6,,29
.28 ,
6.40
5., 11
.11
5.39
.90
Apr.
May
6.44
.42 ;
6.45
.01
5.66
5.,24
.78
1/ Neither mortgage nor bond yields take into account servicing costs which are much
higher for mortgages than bonds. Generally, bonds pay interest semi-annually;
mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual
;;
interesjt investment, would be slightly higher than given in the. table.
2/ Based on FHA-fieId-office opinions about average bid prices in the private secondary .{i
market for new-home mortgages for immediate delivery. Separate data available for
25-year and—beginning July 1961—30-year mortgages with minimum downpayments,
\
weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgages/ '
Over the period for which 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 rates.
'
3/ Based on FHA-field-office opinion on typical interest rates (rounded) on conventional'
first mortgages prevailing in the market areas of insuring office cities. Beginning
with April 1960, rate relates only to new-home mortgages; prior to that date, rate
related to both new as well as existing-home mortgages. Dashed line indicates thia/v
change in the series.
4/ FHA mortgage yield data are for 25-year mortgages through June 1961; 30-year mort- '
gages thereafter.
5/ See note for Exhibit G.
6/ Moody's Investor Service. Monthly averages of daily data. See Exhibit A.
'7
EXHIBIT F. Port IH
C O N V E N T I O N A L M O R T G A G E TERMS V
MATURITY
NEW
EXISTING
80
LOAN PRICE/RATIO
75
NEW
EXISTING
1962
1964
CHANGE IN SERIES
#
Exhibit F
New Homes
Con- Fees &
tract Charges Maturity
Ra te (Per
(Years)
cent)
(Per
cent)
2/
Part IV
Loan/ Loan
Price
ratio (Thous.)
(Per
cent)
Contract
Rate
(Percent)
Existing Homes
Fees &
Loan/ Loan
Charges Ma turity Price amt.
(Per
(Years) ratio (Thous.)
cent)
(Per
cent)
27
12£6
May
June '
July
Aug.
Sept.
Oct.
Nov.
Dec.
Dec.*
6.02
.57
6.07
.57
6.12
.67
6.18
.83
6.22
.83
6.32
.80
6.40
.89
6.44
.91
6.49 1.26
24.7
24.8
24.^
25.4
24.3
23.6
23.6
23.2
23.3
73.4
74.4
72.1
74.0
71.1
71.0
71.5
71.4
72.3
19.2
19.7
19.3
20.1
19.0
19.2
18.7
18.6
18.5
6.16
6.18
6.24
6.35
6.40
6.49
6.50
6.52
6.55
.56
.47
.52
.61
.64
.71
.74
.70
.81
20.6
20.0
19;9
19.8
19.4
19.2
19.5
19.1
20,2
71.8
70.6
70.5
70.6
69.5
69.5
69.5
69.4
70.8
14.7
14.7
14.3
14.7
14.0
14.1
14.1
13.8
14.7
1967
Jan.
Feb.
. Mar.
Apr. r/
May £/ .
6.47
6.44
6.41
6.37
6.28
23.8
23.6
23.6
23.6
24.2
73.3
73.8
74.1
73.3
74.9
19.3
18.0
18.7
18.5
19.4
6.54
6.49
6.44
6.36
6.31
.78
.75
• 77
.72
.69
20.6
20.4
21.1
20.8
21.2
71.4
71.7
71.8
72.0
72.4
15.2
15.2
15.4
15.4
16.1
1.17
1.07
1.06
.99
.97
* New Series ;
1/ Compiled by Federal Home Loan Bank Boar^i in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of
characteristics of conventional first mortgages originated by major institutional
lender groups, (including mortgage companies) for purchase of single family homes.
Data exclude loans for refinancing, reconditioning, or modernization; construction
loans" to home-builders; and--in this exhibit—permanent loans which are coupled with
construction loans to owner-builders. Data are still in a developmental stage and
may reflect seasonal influences which cannot yet be measured because the series go
back only, to end of 1962. Related series on conventional mortgage rates only, based
on unweighted opinions of regional-office directors of the Federal Housing Administration, are avai1ab1e-somewhat sooner than the results of FHLBB-FDIC survey, and
are included--in the case of new home mortgage rates--in Exhibit F. Parts I and II.
2/ Fees and charges--expressed as a percentage of the principal mortgage amount-include loan commissions, fees, discounts, and other charges which provide added
income to the lender and are paid by the borrower. They exclude any closing costs
related solely to transfer of property ownership.
,
"/
4
£
EXHIBIT
G, Port 1
YIELDS O N NEW A N D SEASONED CO RP O RA T E B O N D S
Weekly
1964
6.5
Adjusted "•
Aaa
Be
N E W ISSUES
SEASONED Aaa
6.0
W
5.5
•
4.5
1966
i iiiiiiiiii
i iiiiiiii i
1967
1968
J
4.0
•;
Exhibit G - II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number
of
issues
Number
of
issues
Am't. of issues Average
yield
included (mill.
(per cent)
of dollars)
Monthly averages:
1967
Jan.
Feb.
Mar.
Apr.
May
6
7
20
20
15
496.0
481.0
1073.0
916.0
570.0
5.38
5.20
5.31
5.39
May
5.66
June
S
12
19
26
2
9
16
23
3
3
3
6
3
6
7
5
Am't. of issues Average
yield
included (mill.
(per cent)
of dollars)
70.0
118.0
77.0
305.0
51.0
294.0
168.0
255.0
5.58
5.61
5.70
5. 71
5.73
5.71
5.74
5.79 —
H™**'
Weekly averages:
High
5.79(6/23)
Averages of offering yields on a
of the offerings included are denoted by an asterisk.
Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
Corporate
1966
1967 p/
1965
1,648
1,399
2,317
1 302
1 237
2 446
795
746
1,197
1,461
r/1,176
;c/1,426
1,184
858
868
804
872
904
April
May
June
2/1,952
el 1 , 6 0 0 ^
e/2,400 -
1 553
1 058
2 364
1,152
. 1,691
1,946
1,082
1,147
s/1,250
1,211
901
1,141
826
924
972
July
August
September
e/2,000 "
1 039
1,,670
1,,382
1,290
850
1,392
.2/1,000
701
773
1,020
986
648
966
829
1 ,096
1 ,635
924
1,325
1,496
7 55
969
940
794
1 ,021
754
5,363
e/5,952
4,,985
4,,974
4,,091
2,738
4,789
3,533
3,745
ef11,315
9,,959
17,,601
January
February
March
:
New CaiDital
,/
State andiylocal 2/
1966 r /
1965
1967 p/
October
November
December
1st
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
1st half .
Three quarters
Year
r/4,062
2/3,479
7,527 ,1/7,541"
11,060
14,805 .
.
2,910
3,235
2,494
2,664
2;,580
2,,722
2,,600
2,,569
6,145
8,640
11,303
5 ,302
7:,902
10;,471
x
Excluding finance companies 3/
1st Quarter
2nd.Quarter
3rd Quarter
4th Quarter
5,207
Year
e/
£/
1/
2/
3/
4,,924
4,,884
3,,969
2,547
4,348
3,283
3,188
17,,269
13,366
*
Estimated by Federal Reserve.
Preliminary.
Securities and Exchange Commission estimates of net proceeds. .
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance companies
V
Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
Gross proceeds for new capital
and refunding 1/
Bonu s
Common Memo:
Foreign
Publicly Privately and
pfd. issues
Offered Placed
stock included
Net proceeds
for new capital 1/
2/
Quarter
or
Month
Total
56 - II
III
IV
5,115
4,197
3,669
1,941
2,256
2,047
2,083
1,627
1,247
1,090
314
375
168
154
117
2,305
1,558
1,232
960
657
984
392
567
417
(1,418
1,309
918
57 - I
II
5,464
3,263
1,811
390
60
2,442
997
543
1,382
966 - 4pr.
May
June
July
Aug.
Sept.
Oct*
Nov.
Dec.
1,582
1,106
2,427
1,085
1,712
1,400
892
1,115
1,661
628
481
832
440
1;,140
676
499
569
980
743
556
784
535
435
657
256
435
555
210
69
811
110
137
67
137
111
127
86
33
49
69
22
62
66
27
24
692
376
1,137
397
518
643
331
228
673
364
274
322
263
313
81
254
320
409
76
40
276
52
318
198
97
168
152
421
368
629
327
522
460
147
369
401
;967 - Jan.
Feb.
Mar.
Apr .£/
May e/
June™"
1,684
1,418
2,362
1,994
1,655
745
900
1,,618
1 ,368
955
848
362
601
393
600
91
156
143
233
100
35
10 .
15
11
n.a.
624
563
1,254
1,123
625
220
274
503
395
400
293
105
145
107
60
511
456
415
327
515
£/
1/
2/
Mfg.
Other
Public CommuniUtility cations Issuers
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/
Federal Agency 3/
Foreign Government 2/
1966
1967
1965
1967
1966
1965
January
February
March
April 1
May
June
July
August
"September
October
November
December
Jan. - Apr.
196
--
223
26
445.
Year ...
January
February
March
April
May
June
July
August
September
October
November
December
Jan. - Apr.
12
40
40
66
69
76
72
7
50
23
74
68
218
—
38
73
1,251
783
750
650
——
91
33
74
5
52
75
2
158
329
598
661
3,434
503
410
392
699
1,030
1,084
799
400
450
800
239
422
1,286
-- -
775
--
239
150
375 =
375
179
1,305
639
6,806
2,732
New short-term 4J
State and local Government 5/
Federal Agency
308
238
103
179
-179
-24
39
91
B/ 378
-552
450
-458
-319
-454
£/r678
-559
580
647
718
p/ 818
462
204
85
j>/ 404
284
-334
-82
-590
-103
119
408
-270
270
-161
152
-652
59
-48
-555
-283
274
503
219
-366
-570
-1,744
1,452
518
403
£/ 697
Year
129
185
325
-748
3/
-137
-174
117
-n
509
237
132
206
105
-309
202
-76
'
-
-205
801
\
j>/ Preliminary, ej 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 foreigrr~governments and their political
subdividions and international organizations. Source: Securities and Exchange Commission
j$/ Issues not guaranteed by U.S. government. Sources 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. J5/ Principally tax and bond anticipation notes,
*
warrants, or certificates and Public Housing Auth. notes. In some instances PHA notes
included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal
Reserve.
.
.
H.14
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeda of Large Issues Offered
(In millions of dollars)
Total
1966 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1967 - Jan.
. Feb.
Mar.
Apr.
May
401
1,317
402
1,189
627
523
510
1,177
681
842
1,638
1,311
870
Corsonite
Bonda
(other than
Convertible
convertiblea)
bonda
351
636
170
862
287
352
363
990
611
709
1,435
956
771
Stocks
50
20
182
257
340
116
97
118
30
40
140
213
55
__
State
and
local
Other
466
582
338
410
611
387
464
779
947
675
669
512
496
661
50
80
—
55
50
68
40
93
63
142
44
1/
275
15
50
55
60
230
530
1,000
540
391
Large individual Issues Offered June 1 through 23
Issuer
Type y
Amount
(millions
of
dollars)
Maturity
Coupon
rate or
net interest cost
Offering
yield
Rating
Corporate
Okonite Company
Conv. sub. deb.
Wickes Corporation
Deb.
*Kerr-McGee Corporation
Conv. sub. deb.
United Utilities, Inc.
Com, stk.
Northern States Pwr. Co.
1st mtg. bds.
Southwestern Bell Tel. Co. Deb.
Texas Gas Trans. Corp.
S.F. deb.
Lone Star Gas Co.
S.F. deb.
Broadway-Hale Stores, Inc. Conv. sub.
Textron, Inc.
S.F. deb.
Pennsylvania Elec. Co.
1st mtg. bds.
^Consolidated Electronics
Industries Corp.
Conv. sub. deb.
State Loan & Finance Corp. S.F. deb.
Trailer Train Co.
Equip, tr. cert.
Mountain Fuel Supply
S.F. deb.
Borden Co.
S.F. deb.
Puget Sound Pwr. & Lt. Co. 1st mtg. bds.
Mid-Continent Tel. Corp.
Conv. sub. deb.
30.0
15.0
95.2
36.0
30.0
150.0
40.0
30.0
25.0
50.0
26.0
1992
1992
1992
4-3/4
6
3-3/4
4.75
6.08
3.75
1995
2003
1987
1992
1992
1992
1997
6-1/8
5-7/8
6-1/2
6-1/8
4-1/2
5-7/8
6-1/4
6.00
5.82
6.50
6.05
4.50
5.95
6.05
20.4
25.0
36.0
20.0
75.0
20.0
20.0
1992
1987
1982
1992
1997
1997
4
6.80
6-1/2
6-1/4
5-3/4
6-5/8
1987
4-3/8
4.00
6.84
6.50
6.19
5.75
6.50
4.38
A
Ba
Aa
Aaa
Baa
A
Baa
A
. Aa
Ba
A
A
Aa
Baa
Ba
Large Individual Issues Offered June 1 through 23 (Cont'd)
Issuer
Type 3/
Amount
Coupon
(millions
rate or
of
Maturity net interdollars)
est cost
Offering
vie Id
Rating
Corporate - (Cont'd)
South Carolina Elec. & Gas Co.
United Shoe Machinery Corp.
Washington Gas Light Company
Scientific Data Systems
Pet Incorporated
Great Western Financial
Boston Edison Co.
Corn Products Co.
Public Service Elec." & Gas Co.
Airlift International, Inc.
Public Service Co. of N. H.
State and local Government
Harris County, Texas
Metro. Wtr. Dist. of So. Calif.
New York City, New York
University of Wyoming
New York State Dorm. Auth.
Housing Assistance Admin.
So. Louisiana Port Comm.
Houston, Texas
Colleges of State of Texas
Brookhaven & Smithtown, C.S.D.
#1, .New York . :
• Warren Co., Kentucky
Allegheny Co., Pa.
Pa. General State Auth.
State of Maryland
N.Y. State Housing Fin. Agency
State of Oklahoma
Other
Quebec Hydro-Electrie Comm.
British Columbia Power & Hydro
Authority
Fed. National Mortgage Assoc.
City of Montreal, Canada
1st & ref.
mtg. bds.
15.0
S.F. deb.
25.0
1st mtg. bds. 20.0
Conv. sub.deb. 25.0
S.F. deb.
25.0
Conv. subwdeb. 18.0
1st mtg. bds. 40.0
S.F. deb.
100.0
1st & ref.
mtg. bds. 75.0
Conv. sub. deb. 20.0
1st mtg. bds. 15.0
1997
1992
1992
1992
1992
1987
1997
1992
6
5-3/4
6-1/4
5-1/2
5-7/8
4-3/4
6-1/8
5-3/4
1997
1987
1997
6-1/4
5-3/4
6-1/4
Rev. -S.T.
10 .0
Rev. -Ut.
100 .0
28..9
G.O.
Rev. -Rent. . - 24..8
Rev. -Rent.
14..9
Bonds
116..7
Rev. -Q. -Ut.
11.,0
21,.0
G.O.
Rev. -Rent.
24.0
3.94
1968-97
4.09
1978-2017
4.74
1968-2017
1971-2000
4.10
1969-99
4.80
1968-2008 -3.75
1970-92
4.35
1968-87
3.81
1968-87
3.74
Rev. -Rent.
Rev. -Rent.
G.O.
Rev. -Rent
G.O.
Rev. -Rent
G.O.
11.8
30. 0
16.0
75.0
34.7
68.4
10.8
1968-96
1970-92 .
1968-97
1970-94
1970-82
1968-98
1971-92
Deb.
50.0 1993
Part. Cert.
Part. Cert.
S.F. deb.
50.0
350.0
300.0
40.0
1992
1969
1972
1992
4.22
5.98
5.77
6.20
3.50
5.95
4.75
6.00
Aa*
Aa '
6.10
Aa'?
B A ^
5.79
6.15 .
4/
2.75-4.05 . A ^
3.60-4.05
3.40-4.69
Baal
3.50-4.4Q
M
3.50-4.752/
Am
3.40-4.35
B #
2.60-3.90
2.75-3.75
k
n.a.
4.04
4.10
3.66
4.36
3.86
3.15-4.25
3.90-4.50
2.90-4.10
3.20-4.70
3.10-3.70
3.00-4.38
3.15-3.88
6-1/4
6.29
6-1/4
5-1/4
5-1/2
6-3/8
6.25
5.25
5.50
6.50
*--Rights offering.
n.a. --Not available.
1/ Includes corporate and other security offerings of $15 million and over;
State and local 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.
A
Aa )
A
i
Baa'
Aa#
Aa;
A :
A*
K-3
Footnotes (Cont'd)
3/
t
/
/
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 income from quasi-utilities
Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev. -Rent.,
revenue bonds secured solely by lease payments.
Bonds maturing 1996-97 not publicly reoffered.
Bonds maturing 1991-2000 not publicly reoffered.
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
Corporate
1966 - May
June
July
Aug.
Sept
Oct.
Nov.
Dec.
1967 - Jan.
Feb.
Mar.
Apr.
May
1 State and
| ^ ttOVt.
30
15
584
337
403
515
300
140
496
939
780
508
227
326
596
1,261
317
677
662
687
397
-1,098
' 656
486
1,410
767
963
1,449
date ahown
Other 2/
——
40
-——
--
80
530
250
——
70
100
Corporate
Corporate
American Tobacco
Automatic Sprinkler
Illinois Bell Telephone
Commonwealth Oil Refining
Sierra Pacific Power
S.S. Kresge
Teledyne
C.I.T. Financial Corporation
Arizona Public Service
Crowe 11 Collier 5= MacMillan
Grolier, Inc.
Union Tank Car
Leasco Data Processing Equipment
American Airlines
Northern Illinois Gas
United Airlines
Natural Gas Pipelines
Cincinnati Gas & Electric
Iowa-Illinois
Gas
Consolidated Natural Gas
type
Deb.
Conv. sub. deb.
1st mtg. bdsw
Deb.
1st mtg. bds..
Conv. sbu. deb.
Conv. deb.
Deb.
1st mtg. bds
Conv. sbu. deb.
Conv. deb.
Equip, trust cert.
Senior sub. deb.
Conv. deb.
1st mtg. bds.
Conv. sub. deb.
1st mtg. pel. bds.
1st mtge bds.
1st mtg. bds.
Deb.
Amount
(millions
of
dollars)
100.0
23.0
125.0
20.0
15.0
40.2
50.0
75.0
25.0
25.0 .
30.0
30.0
25.0
157.0
20.0
130.0
50.0
30.0
22.0
50.0
IZL
:—
10ther ^
85
50
35
90
35
35
65
95
545
265
15
85
115
584
353
403
685
390
175
571
1,154
851
528
247
346
616
1,261
619
697
853
767
457
1,133
811
706
1,534
905
.1,262
2,065
Forthcoming Large Offerings as of June
Issuer
|
23
Approximate date of
offering
June
June
June
June
June
June
June
June
June
July
July
July
July
July
July
July
July
July
July
July
27
28
28
28
29
29
29
3
5
6
6
7
7
10
11
11
12
13
j
Forthcoming Large Offerings as of June
Issuer
Corporate -(Cont'd)
Hart Schaffner & Marx
Public Service of Colorado
i Consumers Power
»*Gulf States Utilities
•Brooklyn Union Gas
j'Consolidated Edison
^•Florida Power
l*R.C.A.
i American Tel. & Tel.
j. Montgomery Ward Credit Corp.
Philadelphia Elec. Company
*American Can Co.
*FMC Corp
•Foremost - McKesson
Type
:
Other
Province of Nova Scotia
MacMillan Bloedel
i Nippon Tel. & Tel. Pub. Corp.
Amount
(millions
of
dollars)
Conv. sub. deb.
1st mtg. bds.
1st mtg. bds.
pfd. stk.
1st mtg. bds
1st mtg. bds
1st mtg. bds.
Conv. sub. deb.
Deb.
Deb. .
1st mtg. bds.
S.F. deb.
Conv. deb.
Com. stk.
State and local Government
Dallas I.S.D., Texas
^Georgia Ed. Auth.
Chicago, City Sch. Dist., IllLos Angeles City U.S.D., Cali'.
San Francisco BARTS, California
Los Angeles Dept. of Water & Power.
California
Madison, Wisconsin
*Livonia, Mich.
*Wickliffe, Kentucky
•Wisconsin State Agencies Building
Corp.
•N.Y. State Housing Finance Agency
•Florida State Bd. of Education,
Tallahassee
Metro. St. Louis Sewer Dist., Mo.
Kentucky State Property & Bldg.
Comm.
. •State of Texas
; State of Ohio
23 (Cont'd)
19.0
35.0
80.0
20.0
25.0
120.0
25.0
156.0
250.0
50.0
75.0
75.0
100.0
24.0
Approximate date of offering
July 14 (rts. exp.)
July 18
July 19
July 20
July 20
July 25
July 27
Aug.
1 (rts. exp.)
Aug.
1
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
27
27
28
28
28
G.O.
G. 0 • •
G. 0.
20.0
31.2
75.0
30.0
70.0
June
June
June
June
June
Rev.-Ut.
G • 0.
Rev.-Rent
Rev.-Rent
12.-0
13.4
30.0
80.0
June
June
June
June
Rev.-Rent
21.4
July
5
Rev.-Rent
48.0
July
11
Rev.-Rent
G.O.
12.4
20.0
July
July
11
12
Rev. - R m t
G.O.
G.O.
10.7
10.0
75.0
July
July
July
13
17
20
Deb.
Deb.
Bonds
35.0
40.0
15.0
June 28
July 24
Indefinite
G.0. Rev.-Rent
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:
. Sale
Date
Public Offerings
Amount
(millions
of
dollars)
Issuer and Description of Issue
A.
Sold April 1 through June 23
4/20
25.0
Government of Mexico — 7% external sinking fund bonds
maturing 1982, reoffered to yield 7.11%.
i
6/1
50.0
Quebec Hydro - Electric Commission -- 6-1/4% debentures^
maturing 1993, reoffered to yield 6.29%. ,
6/14
50.0
British Columbia Power & Hydro Authority — 6-1/4%
bonds maturing 1992, reoffered to yield 6.25%.
6/22
40.0
City of Montreal, Canada — 6-3/8% S.F. debentures
maturing 1992, reoffered to yield 6.50%.
B.
June 28
Indefinite
July 24
35.0
15.0
40.0
Prospective Offerings
Province of Nova Scotia — Debentures*
Nippon Telegraph and Telephone Public Corp. —
MacMillan Bloedel — Debentures
*-Included in table for first time.
**-Issues sold to investors outside of U.S.
***-Issue subject to interest equalization tax.
Bonds
33
M-2
PART XI:
Date Reported
Amount
(millions
of
dollars')
Private Placements - Reported April 1 through June 23
Issuer and Description of Issue
4/17
15.0
Northern and Central Gas Company — 6% debentures
with warrants maturing
--no information
available on takedown.
4/17
6.0
Ralston Purina of Canada, Ltd. — 6-3/4% debentures
maturing 1987 — no information available on takedown.
5/8
25.0
British Columbia School Districts Capital Financing
Authority — % (U.S.) guaranteed debentures
maturing 1987 — no information available on takedown.
5/8
5.1
Sorenco Ltd. — % secured notes maturing 1987 —
information available on takedown.
no
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 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.
@FedFRASER