Full text of H.16 Capital Market Developments : June 3, 1963

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DECONTROLLED AFTER SIX MONTHS

H. 14 J

USRAfly

'rTD'^r.

6 1963 |cA^ITAJi_MARKEX^DEVELOPMENTS
PE3EBVM ^ / / I N T H E UNITED STATES

°*

June 3, 1963.

' (

"Including ^Review of Capital Markets in May)
Public security financing to obtain new capital was light
last week, but is expected to be very substantial this week. During
the week ending May 31_, no large corporate security issues were offered
and only two large State and local government bond issues amounting
to $35 million were sold. This week, ending June 7, one corporation
is expected to offer $38 million in bonds to raise new capital, two
State and local issues with par value of $35 million are on the
calendar, and the Federal Home Loan Banks have scheduled the sale of
$460 million in 16-month bonds. In addition Allegheny County,
Pennsylvania is expected to sell $94 million in bonds to refund outstanding securities.
Bond yields. Yields on most seasoned long-term bonds
increased last week. Yields on Aaa-rated corporate bonds rose a basis
point to 4.23 per cent, their highest level since late December,
while U. S. Government bond yields increased two basis points to 3.99
per cent, matching their high for the year. Yields on both Aaaand Baa-rated State and local government bonds rose 3 basis points to
3.00 and 3.55 per cent, respectively. Baa-rated corporate bond yields,
however, fell a basis point further to 4.84 per cent, their lowest
level since March 1959.
Short- and intermediate-term interest rates. Rates on both
3-month and 6-month Treasury bills rose four basis points last week
and, at 2.98 and 3.06 per cent, respectively, were at their highest
levels since late spring of 1960; yields on 3-5 year U. S. Government
obligations increased five basis points to 3.'64 per cent, their highest
level since early last August. The average effective Federal funds
rate continued at 3.00 per cent. Other rates were unchanged.
FNMA secondary market operations. Reflecting continued
heavy demand for mortgages from private lenders, sales by the Federal
National Mortgage Association in the secondary market remained
sharply in excess of purchases for the fourth consecutive month.
Sales by FNMA in April totaled $165.2 million, almost the same as
the near record high reached in March. Purchases by FNMA, which had
risen somewhat in March, declined again in April, to $12.3 million.
Offerings also dropped and, at $14.1 million, approached their recent
low in February.
In addition to its regular secondary market sales in April,
sales by FNMA from its "special assistance" portfolio reached an
unusually high level--$102.7 million. This was more than a fourth
greater than such sales in all of 1962.




-2-

Stock prices. Common stock prices rose on balance last week
in fairly active trading. Prices as measured by Standard and Poor's
composite index of 500 stocks advanced one per cent to close at 70.80
on May 31. Trading volume averaged 4.2 million shares a day, 0.7
million shares a day less than in the previous week.
Estimated security volume for June. Security financing to
obtain new capital by corporations is expected to be in seasonally
large volume in June, while bond sales by State and local governments
will probably be moderate.
New capital security sales by corporations are estimated at
$1.0 billion during June, one-third larger than the revised total for
May but almost one-fifth less than the average for June of the two
previous years. Most of this financing will consist of the seasonally
large takedowns of private placements; large issues for new capital
currently scheduled for public offering in June amount to only $223
million. Security sales in this amount in June will bring the total
for the second quarter to $2.6 billion, one-eighth less than in the
comparable period of 1962.
Bond sales to raise new capital by State and local governments
are expected to amount to $750 million in June, one-eighth less than
in May and slightly less than a year earlier. This will bring the total
for the second quarter to $2,450 million, 5 per cent less than in 1962,
but more than in any previous ApriT^June period.
Capital markets in May. Bond market congestion continued
during May, but yields changed little on balance. Corporate security
financing to obtain new capital was only moderate, but State and local
government bond sales were fairly substantial. Retail distribution
of offerings continued slow, however, and dealers' inventories of unsold
securities remained quite large.
New security financing by corporations totaled $750 million
in May, one-eighth less than in April, but about the same as a year
earlier. Large issues for new capital sold publicly--all nonconvertible
bonds--amounted to $149 million, the smallest total since February.
Some $330 million of additional securities were sold to refund
outstanding issues however; the largest of these was a $250 million
debenture issue of the American Telephone and Telegraph Company.
Most new issues acquired by underwriters through competitive
bidding met indifferent to moderate investor reception but were
gradually distributed during the month; however, the AT&T issue sold
early in the month was very poorly received and was still largely
unsold at the month-end. Unsold syndicate balances, therefore, were
very substantial at the end of May and considerably larger than a
month earlier.




Despite this congestion in the market for new issues,
corporate bond yields changed little on balance during May, reflecting
to a large extent conflicting views as to prospective developments.
Yields on seasoned, Aaa-rated corporate bonds fluctuated within a
narrow range, closing at 4.23 per cent (daily basis), the same as
at the end of April. Yields on new corporate bonds, adjusted to an
Aaa basis, were slightly lower than the high of late April during
most of May but were about 10 basis points higher than the general
range that had prevailed earlier in the year.
Bond sales, by State and local governments amounted to $850
million in May, the same as in April but somewhat less than a year
earlier. Investor interest in new offerings was quite selective.
Retail sales from inventory were also slow until late in the month
when underwriters cut prices on some issues. As a result, dealers'
advertised inventories of unsold securities rose to a record level of
$770 million in mid-May, about $90 million above the previous peak a
month earlier, before declining to about $690 million at the month-end;
at this level inventories were about $60 million higher than at the
end of April. Yields on seasoned, Aaa-rated State and local government
bonds changed little on balance during May, closing the month at
3.00 per cent, the same as a month earlier.
Common stock prices fluctuated within a narrow range during
May in very active trading. Prices, as measured by Standard and Poor's
composite index of 500 stocks, increased one per cent on balance to
close at 70.80 on May 31; all of the month-to-month increase occurred
during the last three trading days. At their end of May level,
average prices were at their highest level since mid-March 1962 and
within three per cent of their December 1961 peak. Trading volume
averaged 4.8 million shares a day, 0.3 million shares less than the
very large April average but more than in any other month since last
November.
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
L O N G - T E R M B O N D YIELDS, H I G H - G R A D E

rJ
i.e.

Exhibit A - Part II

Date

Corporate
Aaa 1/

U. 8. Govt,
long-term 1}

State and
localgovernment
Aaa 3/

Spread between
0. S. Govt, and
Corporate 1 State and
Aaa
1 local Aaa

(per cent)
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - Low
1963 - Hi#*
Low
Hay
Hay
Hay
Hay
Hay

3
10
17
24
31 £/

3.55 (5/2)

3.99 (5/31)
3.87 (1/18)

3.02 (3/7)
2.93 (3/28)

.22
.59
.19
.57
;30:
.35
.22

3.98
3.97
3.96
3.97
3.99

3.01
3.01
2.97
2.97
3.00

.24
.25
.25
.25
:24

3 . 0 7 (4/23)
4.61 (1/29/60) 4 . 4 2 (1/6/60)
4.21 (3/17/61) 3.70(5/1^/61)
4.46 (9/15)
4 . 0 7 (1^/29)
4.23 (12/28) 3.85 (l?/28)

4.23 (5/31)
4.19 (3/29)

* 4.22
4.22
4.21
4.22
4.23/

f

2.64 (5/1)
3.65 (9/24/59)
2.99 (9/1/60)
3.37 (7/6)
2 . 8 8 (13/8)

.34
.92
.46
.76
.80
1.02
.90
.97
.96
.99
1.00
.99

Preliminary.
Weekly average of daily figures. Average tern ct tends inolnled is 22-24 years*
Weekly average of daily figures, The series includes bonds due or callable in 10 years or TOre.
Thursday figures. Only general obligation bonds are included# average term is 20 years,
Rote*—Highs and lows are f o r individual series and may be on different dates for different
series, for spreads, high refers to widest, and lor to narrowest#




EXHieil B. Po
LONG-TERM BOND

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

J-U>1 I I I I II II I I III II II

I I I I I J-J-iJ-L 1 LI L1 .LLLJ-LLLl i - L L i l U iJ_l I I I I I I I I L L L M A j 3.q
Mil

m o

1142

1143

Exhibit B - Part II

Date

Corporate
Baa 1/

State and
local govt.
Baa 3/

Spread between
Aaa and Baa
State and
Corporate
local govt.

(per cent)
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - Low
1963 - High
Low
May
May
May
May
/May
Notes

3
10
17
24
31 jo/

4 . 5 1 (7/11)

5.36 (2/12/60)

3.64 (5/1)
4.46 (a/7/60)
3*93 (13/9/61)

.77
.84

.66

.93

1.08

4.92 (12/21)
4.93 (1/4)
4.84 (5/31)

3.52

3.57 (3/14)
3.52 (5/23)

.81
.63
.71
.61

.57
.93
.56
. 63
.55

4.87
4.86
4.86
4.85 ,
4.84/

3.56
3.56
3.52
3.52
3.55

.65
.64
.65
.63
.61

.55
.55
.55
.55
.55

4 . 9 8 (9/9/60)
5.13

(10/27)

F o r footnotes see Exhibit A*




4 . 1 6 (3/23)
(5/17)

EXHIBIT C, Pari I
S H O R T - A N D I N T E R M E D I A T E - TERM INTEREST R A T E S , G O V E R N M E N T

3 - $ Y f A t ISSUES

II 1 ) I I I I I IIJJ.J.11-LLLLU
I
I I I I - L U L U I II I I I I I I I I )
1959

lisa

I960

1962

Exhibit C m Part II

Date

Discount
rate

3-month

1/

b i l l s 2/

Yields
6-month
b i l l s 2/

3-5 year
i s s u e s 2/

... ..

'

Spread between yields o n 3m o n t h b i l l s and y i e l d s o n
6-mo. bills13-5 vr. issues

(per c e n t )

3.00

.58
4.59
2.11

3 . 0 2 (12/26) 2 . 1 4 (6/6)
(5/29)
5 . 0 7 (1/8/60) 5 . 0 0 (13/24/59)
(1/8/60)
(10/28/60) 2 . 3 5 (4/20/61)3.15 (5/12/61)

3.00
3.00

2.97
2.65

(7/13/62)i
(6/8)

3 . 1 3 (7/20/62)3.88 (2/2/62)
3 . 4 1 (12/28)
2 . 7 4 (6/8)

3.00
3.00

2.98

(5/31)

3.06

2.88

(3/15)

2.93

1958 - Low
1959-60 High

1.75
4.00

1960-61 Low
1961-62 High
1962 - Low
1963 - H i g h
Low
May 3
M a y 10
May
May

17
24

M a y 31 £ /

3.00

2.90

3.00

2.91
2.90

3.00
3.00
3.00

2.94
2.98

1/
2j

.26
.79

.04
1.81
.38
1.51
.52

(5/31) 3.64 (5/31)
3.44 (1/18)

.12
.44
.02
.10
.04

2.99
2.99

3.56
3.54

.09
.08

. 66
.63

2.99
3.02
3.06

3.55
3.59
3.64

.09
.08
.08

.65

(3/8)

.70
.52

.65
.66

Weekly rate shown la that In effect at end of period at the Federal Reserve Bank of New York,
Market yield; weekly averages oonputed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bands.
liote.—flighs 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.




SHORT- AND
BANKS AND
Weekly

I N T E R M E D I A T E - TERM INTEREST k A T E S ,
OTHER PRIVATE B O R R O W E R S

STOCK EXCHANGE
C A l l LOANS

ANCE COMPANY PAPER
Directly Placed

Tfr^

r
I

A *-5

f^
V

"

FEDERAL FUNDS

-I
11111 m

11

1161

I960

Exhibit D - Part II

Date

Stock Exchange
call loan 1/

Prime
rate 1/

Finance company
paper 2/

Federal
funds 3/

Spread between
3-mo. bills and

(per cent)
1958 - Low
1959-60 - High
1960-61 Low
1961-62 - High
1962 - Low
1963 - High
Low

3.50
5.50
4.50
4.50
4.50
4.50'
4.50

3.50
5.00
4.50
4.50
4.50
4.50
4.50

3 . 2 5 (7/20/62)

2.88(6/1)
3.25 (4/5)
3.13 (5/3)

.13 (5/29)
4.00 (5/13/60)
.43 (1/27/61)
3-00 (12/28/62)
1.30 (1/26)
3.00 (5/31)
2.63 (4/5)

May
May
May
May
May

4.50
4.50
4.50
4.50
4.50

4.50
4.50
4.50
4.50
4.50

3.13
3.14
3.19
3.19
3.19

3.00
3.00
3.00
3.00
3.00

""

3
10
17
24
31 ])/

(8/8)

h

I

1.13

2 . 5 0 (8/5/61)

-.35
1.02
.11
.56
•19
.36
.18

.

.23
.23
.29
.25
.21

Weekly rate shown is that in effect at end of period. Stock Exchange c a l l loan rate is going rate
on oall loans secured by customers' stock exchange collateral at N e w York City banks.. Prime rate
is that charged by large banks on short-term loans to business borrowers of the highest credit

2/

>

Average^of d a i l y rates published by finance companies for directly placed paper f o r varying matuiitla^
in t h e 90—179 day r a n g e e
Weekly average of d a i l y effective r a t e , -which is the rate for the heaviest -volume of purchase and
sale transactions as reported to the Federal Reserve Bank of N e w Y o r k ,
N o t e . — H i g h s a n d lows a r e f o r individual series and m a y be on different dates f o r different series.
For spreads, high refers to widest, and low to narrowest# .
3/




STOCK MARKET

MSI

MSI

1140

Mil

Mil

Mil

Exhibit K - Part II

Date

Stock price
Index 1/
^

Trading
S t o c k m arket customer credit
Common .
Customers1
Bank
v o l u m e 3/
stock
debit balloans to
Total
yields 2 /
(millions
ances 4/
" o t h e r s " 5/
(ver
cent) of shares)
(In m i l l i o n s o f d o l l a r s )

1961-62 - H i g h
Low
1963 - H i g h
Low
April
Hay
M a y 17
May 24
M a y 31 £ /

7 2 . 0 4 (12/8/61)
5 2 . 6 8 (6/22/62)
70.80 (5/31)
6 4 . 1 0 (3/1)

2.82
3.96

10.1
2.4

3.13
3.36

5.5
3.3

5,602( 12/6I) 4 , 2 5 9
4,876(7/62) 3 , 5 6 2
5,978(4/63)4,52*6
5,595(1/63)4,208

68.76
70.14
70.29
70.02
70.80

3.15
3.13
3.14
3.16
3.13

5.1
4.8
5.1
4.9
4.2

5,978
n.a.
n.a.
n.a.
n.a.

4,526
n.a.
n.a.
n.a.
n.a.

(12/61) 1,377(8/30/61)
(7/62) 1,269(9/26/62)
(4/63)1,488 (5/22)
(1/63)1,378 ( 2 / 2 3 )
1,452
1,475
1,488
n. a.

n.a.—-Mot available, jg/ Preliminary#
3/ Standard and Poor's composite index of 500 cannon stocks, weekly d o s i n g 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.
y
Standard and Poor's composite stock yield based on Wednesday data converted t o weekly closing
prices by Federal Reserve. Yields shown are for dates on which price index reached its higi
%
5/

Averages of daily trading volume on the New York Stock Exchange,
End of month figures for member flans of -the Hew Ycrk Stock Exchange Wiioh carry margin accounts;
excludes balances secured by U. S. Government obligations.
Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
D. S. Government securities. - Prior to July 1, 1959, such loam are excluded only at banks in
^ew York and Chicago. Weekly reporting banks account fbr about 70 per cent of loans to others.
For further detail see Bulletin.




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
"Monthly
r

1959

-

I960

1961
Exhibit

Estimated
Date

Total

F

offerings
Immediate
purchase

1912
- Part

- Apr.
May
July

50.0

Purchases

S tandby
commitment
of

Sales

by

by

FNMA

FNMA

dollars)

1.1

51.5

40.3

38.8

1.5

42.0

64.0

33.0

31.7

1.3

29.0

56.3

29.0

27.9

1.1

21.9

38.5

39.2

1.0

105.7

Aug.

40.8

29.6

6.3

Sept.

35.9

35.2

.7

25.0

Oct.

8.4

43.5

42.7

.8

33.1

4.5

24.6

1.2

Nov.
1963

51.1

1913

II

Ito F N M A

(In m i l l i o n s
1962

M i l l i o n , of d o N o r s .
—
«0

-|

25.7

26.6

8.1

Dec.

19.7

19.3

.4

13.5

- Jan.

14.4

16.8

16.5

.2

14.3

45.3

Feb.

12.5

12.4

.1

.

10.1

107.7

Mar.

23.1

22.6

.5

21.9

166.4

Apr.£/

14.1

13.5

.6

12.3

165.2

•—-Less than $50,000.
3 / Data represent unpaid principal balances of the mortgages involved, exclusive of
premiums, discounts, or other charges. Offerings are amounts of applications received
duxlng t h e period f r o m sellers proposing that FNMA execute purchasing contracts. A n
inmediate purchase contract covers existing mortgages which t h e seller oust deliver t o
F N M A irithin 4 5 days, A standby c cmaiitment contract relates to proposed mortgages on
housing not y e t u n d e r construction which the s e l l e r must usually d e l i v e r within one
year. Purchases include those u n d e r both imaediate purchases and standby commitment
contracts. D a t a exclude F N M A activity u n d e r Special Assistance and Management and
Liquidating Pro grans.




EXHIBIT G, Port 1
YIELDS O N

NEW A N D SEASONED CORPORATE B O N D S

NEW ISSUES

SEASONED A n

Exhibit 6 - Part II
Yields on Hew Corporate Bond Issues Adjusted to an Aaa basis

i
I

•Weekly averages:
1

*
i
1
i
;
1

1963 - Jan. 4
11
18
25
Feb. 1
8
15
22
Mar. 1
8
15
22
29

Number Aa't of issues Average
of
included (mil.
yield
Issues of dollars)
fner cent) '
1
1
1
2
1
2
4
1 '
2
. 2
3
2

,

25.0
70.0
35.0
75.0
25.0
64.0

4.19
4.23
4.13
4.22
4.21
4.27*

100.0
12.0
55.0
24.4
87.0
222.0

4.19
4.14
4.25*
4.16
4.16
4.36*

Apr. 5
12
19
26
May 3
10
17
24
31

Number Am't of issues Average
included (mil.
of
yield
issues of dollars)
(per cent!
2
1
3
3
1
2
1
3

45.0
6.0
95.0
128.0
25.0
266.0
30.0
76.0

4.23
4.18
4.28
4.30
4.22
4.31*
4.27
4.27

*

10to i
A v e r a g e s or o r x e n n g yieios en U J . n e w i b b u o b o x puoiiojyf oxxerea ooxporaxo w n u u rowa a b b . a b h b
A by Moody's Investors Service (except serial and convertible issues, offerings of n a t u r a l gas pipeline
and foreign companies, and bonds guaranteed by the Federal Go v a r m e n t ) weighted b y OLse of offering.
Before averaging, n e w offerings a r e adjusted to a composite A a a basis by deducting f r o m t h e actual
reoffering yield tho excess of the w e e k l y average yield f o r seasoned toads of the appropriate industryquality group over t h e composite average f o r seasoned Aaa-rated bonds (Ifoody's). Averages considered
unrepresentative because of special characteristics of -fee offerings Included are denoted b y a n asterisk^




H. 14

Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
3

I

1963
January
February
March
April
May
June

1st half
Three quarters
Year

pital
1963

State and local 2/
1 1962
I

1961

&/731
2/719
2/954

711
689
764

e/850
e/850
e/750

873
912
786

722
640
1 ,034

1,028
762
647

612
544
427

486
604
734

835
703
1,103

1 j 090
948
1,000

650
578
550

679
789
M0

2,351
e/2,600

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

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

2/2,405
e/2,450

2,637
2,571
1,582
1,779

2 ,165
2.,396
•1.,824
2,,078

e/4,951

5,264
7,173
9,814

6,504
8,941
11,979

e/4,855

5,208
6,790
8,568

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

e/850
e/ 750
e/1,000

October
November
December
quarter
quarter
quarter
quarter

1961

876
1,133
628

613
595
1,144

July
August
September

1st
2nd
3rd
4th

Corporate 1/
1 1962
I
592
859
807 -

580
667
562

1,113
760
1,132

2,118
1,259
1,318

582
749
579

*

^

%
^

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

e/2,187
el 2,300

Year
e/
1/
2/
3/

2,199
2,919
1,775
2,410

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

9,303

11,253

Estimated by Federal Reservec
£/ 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 rnd consumer finance
companies.




/A'

New Corporate Security Issues„ Type of I
(In millions of dollars)

Quarter

Gross proceeds for new
canital and refunding 1)
Common Memo:
Bonds
foreign
Publicly Privately
issues
pfd.
offered offered
included
stock

month

Total

• 1960 - III
IV

2 ,520
2. ,832

1 ,336
1,,462

1,,992
5 ,352
2 ,566
S3 ,236
j

662
2 ,303
772
967

880
1,,275'
1 ,139
1;,424

1962 - I
II
A
HI
IV

2,,378
3:,250
2.,184
2,,957

1 j 155
1:,389
853
1.,089

1963 - I
II

2,,700

1961 - July
Aug,
Sept,
Oct.
Nov.
Dec.
1962 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

'1961 - I
x
II
III
IV
1

Net proceeds for
new capital 1/ 2/
Mfg.

Public Communiutility cations

Other
issuers

652
696

317
381

896
997

515
• 1,466
935
792

381
1 9 081
595
836

81
1 a 095
104
147

832
1,052
803
1,263

68
257
56
179

655
996601
769

430
983
375
568

456
231
275
321

717
794
659
986

287

128

947

326

236 ^

842

392
411
336
509
348
567

259
177
218
310
225
310

52

428
255
252
271
215
306

269
215
111
306
362
168

16
13
75
25
80
42

315
279
209
437
291
485

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

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

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

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

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

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

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

350
259v
499
380

243
289
774
350

102
94
91
190

135
220
592
200

114
115
97
320

125
68
43
60

238
191
412
270

429
416

38
17

449
1,774
654
845

76
155
69
62

716
1,,222
1,,024
1,,568

507
639
307
300

1.,108

1,,306

1,075
813
678
1,155
987
1,094

424
225
123
336
414
217

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

695
1963 - Jan.
642
Feb,
1,363
Mar.
920
Apr.e/
May
June

a* and Issuer

754
955

10
' 25
12
25
3
12
54
10
147
100
13
43
46
. 34
99
25
43
60
ric-a =

562
625

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




Exhibit J
Other Security Offerings
(In millions of dollars)

1963
January
February
.. March
April
May

n government 2/
1
1962
1

232
133
. 76
e/100

July
August
September
October
November
December
Year
Jan-Apr.

e/541

Gross long-term 1/
Federal agency 3/
1961
1963
1
1962
!

142
10
35
10
86
50
25
8
31
151
88
101

6
29
20
2
. 66
29
5
2

737

236

197

57

148

246
156

e/186

461

1961

252
100
149
278

150
175

250
193

43
34

225

--

e/334

1,188

1,448

863

353

Net short-term 4/
State and local government 5/
Federal agency 3/
January
February
March
April
May

- 75
78
-367
R/ 414

July
August
September
October
November
December
Year
Jan.-Apr,

2/200

£./
1/

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

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

378

520

425

244

-106
-189
-482
2/185

B/-592

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

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

1,004

-76

47

-559

Preliminary.
e/ Estimated by Federal ReA,
n,a,--Not available.
These data differ from those in Exhibit H in that refunding issues, as well as
new capital issues are included. Long-term securities are defined as those
—
maturing in more than one year.
2/ Includes securities offered in the United States by foreign governments and their
political subdivisions and international organizations. Source: Securities and
Exchange Commission.
~
3/ Issues not guaranteed by the U. S. Government-- Source; long-term, Securities
and Exchange Commission; short-term, Treasury Department and Federal Reserve.
4/ These data differ from those in Exhibit H and above in that they represent new
offerings less retirements, whether from the proceeds of refunding issues or from
other funds. Data include only issues with original maturity of one year or less.
5/ Principally tax and bond anticipation notes, warrants or certificates and Public
DigitizedHousing
for FRASER
Authority notes. In some instances PHA notes included may have a somewhat longer maturity than one year. Source: Bond Buyer and Federal Reserve.
http://fraser.stlouisfed.org/

Federal Reserve Bank of St. Louis

I

;l
f
$

:
•

.(%

*
'
j

Exhibit K

H.14

Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)
Corporate
Month

Total

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

Bonds
Convertible
(other than
convertibles)

648
200
472
165
286
191
434
178
198
234
186
394
409
149

430
170
387
135
226
100
398
178
178
215
125
372
263
149

State
and
local
government

Stocks

51

167
30
85
30

60
91
36

-y

20
19
26
22
146

35
——

-

--

Other
2/
55
88
30
20

423
373
266
321
272
153
320
217
193
344
367
570
431
499

194
25
75
48
63
134

43

Large Individual Issues Offered *;he mo a ch 'of May

Type 3/

Coupon
Amount
Offering
(millions
Maturity
net inter- yield
of
dollars)
est cost

Rating

CORPORATE
General Tel. Co. of Cal.
Alabama Pwr. Co.
Virginia Elec. & Pwr. Co.
Associates Investment Co.
Southern Cal. Edison Co.

4.39
4.37
4.34
4.45
4.33

A
A
Aa

1st mtg. bds.
1st mtg. bds.
lst&ref.mtg.bds.
Deb.
lst&ref.mtg.bds.

25.0
16.0
30.0

Rev.,-Ut.
Rev,,-S.T.
G..0.
G. 0 .

115 c 0
17.5
12.0
15.3

1968-2013
1964-78
1964-83
1964-96

3. 57
2. 92
2. 88
2. 89

2,.30-3,,585/-1..60-2.,90 Aa
Aa
1 ,.70-3,. 05
Aaa
1 ,.60-3.50

Rev. -ut.
Rev.i -Q.Ut.
G. 0 .
G. 0 .
G, 0 .
G. 0 .
G. 0 .

122.0
25.0
48.8
10.0
25.0
30.0
10.1

1967-96
1994
1965-2013
1966-831964-83
1964-88
1964-82

3. 26
3. 39
3. 04
2. 93
2. 88
3. 28

2, 25-3.,35 A
3.34
c/ A
2.,20-3., 202' Aaa
2.,00-3,,10 A
1 .,60-3,,00
Aa
k
1 . .70-3.,40
1 ,.70-3.,20
A

23.3

1963-2002

3. 32

1 .,45-3,,50^/--

1993
1993
1993
1984
1988

4-3/8
4-3/8
4-3/8
4-3/8
4-3/8

~

Aa

STATE AND LOCAL GOVERNMENT
Placer Co. Wtr. Agency , Cal.
Maryland State Roads Comm.
Greenville Co., S. C.
Cincinnati, Ohio
Washington Public Pwr.
Supply System
Port of New York Auth.
State of New York
State of Hawaii
State of Tennessee
Commonwealth of Puerto Rico
Yonkers, New York
Penna. State Pub. Sch. Bldg.
 Auth.



-Rent.

... K-2
Large Individual Issues Offered during May (Cont'd)

Issuer

Houston, Texas
Dallas Ind. Sch. Dist., Texas

Type 3/

Coupon
Amount
Offering
(millions
Maturity
net inter- yield
of
dollars)

G.O.
G.O.

25.0
10.0

1964-83
1964-83

Bonds
Bonds

27.5
15.0

1980
1978

3.04
2.94

Rating

1.70-3.25
1.70-3.10£/ A

OTHER
Govt, of Japan
Copenhagen, Denmark

5-1/2
• 5-3/8

*--Rights offering.
n.a.--Not available.
V ^Includes corporate and other security offerings of $15 million and over;
State and local government security offerings of $10 million and over.
_2/ Includes foreign government and International Bank for Reconstruction and
^
Development issues and non-guaranteed issues by Federal agencies.
_3/ In the case of State and local government securities, G.O. denotes general
obligations; Rev.-Ut., revenue obligations secured only by income from
public utilities; Rev.-Q.Ut., revenue bonds secured only by revenue from
quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific
taxes only; Rev.-Rent., revenue bonds secured solely by lease payments.
4/ An additional $32.4 mill ion-in>-bonds sold to refund outstanding securites.
5/ 3-3/4 per cent bonds due 2013 reoffered to yield 3.53 per cent.
b/ Bonds due 1965-68 and 2004-13 not publicly reoffered.
7/ 0,1 per cent bonds due 1988 reoffered to yield 4.50 per cent.
%/ 1-1/2 per cent bonds due 2000-2002 not publicly reoffered.
9/ 0.1 per cent bonds due 1983 not publicly reoffered.




5.71
5.55

£

^

H. 14
Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
Subsequent to

During month following
computation

Corporate

-.962 - Apr. 30

State and
Other 2J
local govt.

185
587
120
302
170
363
203
170
269
167
142
376
149
223

May 31
June 29
July 31
Aug. 31
Sept. 28
Oct. 31
Nov. 30
Dec. 28
1963 - Jan. 31
Feb. 28
Mar. 29
Apr. 30
May 31

333
184
202
273
61
187
96
194
177
376
458
381
447
255

Corporate

State and
local govt.

175

75
25

45
40
460

95
55
25

452
337
377
427
215
387
243
328
311
843
755
763
599
582

598
692
458
477
312
546
328
360
314
412
572
421
234
288

95
55

Other 2/

175

75
25
33
45
40
460

Forthcoming Large Offerings, as of May 31
Amount
(millions
of dollars)

Type

Approximate date
of offering

CORPORATE
Southern Railway Co.
Indiana Bell Tel. Co.
Tennessee Gas Trans. Co.
Coastal States Gas Co.
Public Service Elec. & Gas Co.
*State Loan and Finance Co.
Pacific Northwest Bell Tel. Co.
Commerce Oil Refining Corp.

1st & gen. mtg. bds.
Deb.
Deb.
1st mtg. bds.
1st & ref. mtg. bds.
Deb.
Com. stk.
Deb., bds.

com.

37.7

20.0
45.0
50.0
40.0
30.0

20.0
45.0

June 4
June 12
June 17
June 18
June 19
June
July 3
(rights expire)
Indefinite

STATE AND LOCAL GOVERNMENT
Louisiana State Bond & Bldg. Comm.
Sacramento Mun. Util. Dist., Cal.
Univ. of Illinois
Oklahoma City, Oklahoma
St. Petersburg, Florida
Virginia Public School Auth.
Jacksonville, Florida
Atlanta, Georgia
Cleveland, Ohio
*State of Minnesota
Nevada Irr. Dist., Cal.




Rev.-S.T.
Rev.-Ut.
Rev.-Rent.
G.O.
Rev. -Ut.
Rev.-Rent.
Rev.-Ut.
G.O.
G.O.
G.O.
Rev. -Ut.

15.0

10.0
10.9
15.1
17.0
15.0

22.0
39.0
13.2
40.6
57.2

June
June
June
June
June
June
June
June
June
June
June

4
6
10
11
11
18
20
25
25
25

i
Forthcoming Large Offerings, as of May 31 (Cont'd)

Type

Amount
(millions
of dollars)

Approximate date
of offering

STATE AND LOCAL GOVERNMENT (CONT 'D)
^Chicago Public Bldg. Comm., 111.
*Nev York State Housing Finance Agency
Pittsburgh, Pa.
Jefferson County, Colorado
Dade County, Florida
Jacksonville Expressway Auth., Fla.
Southern 111. Univ.

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

75.0

108.0
35.0
12.9
46.0
40.0
10.5

June-July
July 10
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

OTHER
* Federal Home Loan Banks

460.0

June 4

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




Exhibit M

H. 14

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

Sale
Date

Amount
(millions
of dollars)

Issuer and Description of Issue

A.
3/13
3/13
4/2
4/9

12.5
21.8
5.2
15.0

4/10
4/24

30.0
10.0

4/24
4/25

1.8
25.0

5/1

27.5

5

15.0

'22

Sold March 1 through May 31

Republic of Finland—6% bonds, due 1973, reoffered at 6.17%
Kansai Electric Power Co., Inc.—common stock
Sony Corp.—common stock
Copenhagen Tel. Co.—5-3/8% bonds, due 1978, reoffered at
5.57%
Govt, of Australia--5% bonds, due 1983, reoffered at 5.20%
Mitsui & Co.—6-3/8% convertible debentures, due 1978,
reoffered at 6.38%
Mitsui & Co.—common stock
Kingdom of Norway—5-1/4% bonds, due 1978, reoffered to
yield 5.42%
Government of Japan—5-1/2% bonds, due 1980—reoffered to
yield 5.71%
Copenhagen, Denmark—5-3/8% bonds, due 1978—reoffered to
yield 5.55%

B.
6/12

Public Offerings

Prospective Offerings

Oslo, Norway—bonds




H. 14
Part II:
Date
reported
3/4

3.0

3/7

12.0

3/13

1.0

3/13

30.0

3/13

25.0

3/27

50.0

3/28

Private Placements—Reported March 1 through May 31

Amount
(millions
of dollars)

3.0

4/3

10.0

4/4

4.7

5/1

50.0

5/2

10.0

5/6

20.0

5/14

16.3

Issuer and Description of Issue

Protestant School Board of Greater Montreal—5-1/4%
bonds, due 1982—no information available on takedown
Government of Norway—bonds, due 1983—no information
available on takedown
City of Aalborg, Denmark—notes, due 1978—no information
available on takedown
Bayer Foreign Investments, Ltd.—5-1/2% promissory notes,
maturing 1983—no information available on takedown
Manitoba Hydro-Electric Board--4-7/8% sinking fund bonds,
^_jnaturing 1988--no information available on takedown
Bell Telephone Co. of Canada—4-7/8% first mortgage
bonds--no information available on takedown
Pacific Eastern Railway Co.--4-7/8% sinking fund debenture,
due 1988—no information available on takedown
Industrial Acceptance Corp., Ltd.--5-1/8% secured notes,
maturing 1988--no information available on takedown
City of Vancouver—4-3/8% & 5% serial debentures, maturing
1964-83—no information available on takedown
Bell Telephone Company of Canada--4-7/8% first mortgage
bonds, maturing 1988--no information available on takedown
Laurentide Financial Corp.--5% senior notes, maturing
1978--no information available on takedown
Province of Ontario--4% debentures, maturing 1966-69-no information available on takedown
Delta Acceptance Corp., Ltd.--notes, maturing 1975—no
information available on takedown

Note: For retrospective data on aggregate foreign corporate and government
security offerings in the United States see Exhibits I and J. There is no simple
relationship between the data shown in this Exhibit and that shown in Exhibits I
and J because the latter includes privately placed securities in the period in
which funds are actually takendown but only in the amount of takedown, while the
placements shown in this exhibit are included when reported, frequently with
little or no information concerning timing of takedowns. Full or partial

takedowns may take place both prior and subsequent to the date a placement
http://fraser.stlouisfed.org/
is reported.
*—Included in table for first time.

Federal Reserve Bank of St. Louis