Full text of H.16 Capital Market Developments : June 4, 1962
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Mot f o r Publication h.llt U June L, 1962„ "' J U - 4U# 6 1962 eg DBKOOTROLLSD AITER SIX UOKTHS VCAFITAL MARKETyDEVKLCIHENT5 STATES ndi np Review of C a p i t a l Market Developments i n May) Public s e c u r i t y f i n a n c i n g t o o b t a i n new c a p i t a l was q u i t e small t h i s p a s t holiday-shortened week, but i s expected to be f a i r l y s u b s t a n t i a l t h i s week. During t h e week ending June 1 3 two l a r g e corporate s e c u r i t y i s s u e s t o t a l i n g $32 million were o f f e r e d , while no l a r g e State and l o c a l government bond i s s u e s were s o l d . This week.* ending June 8, f o u r corporate i s s u e s amounting t o &L60 are-scheduled f o r o f f e r i n g and one S t a t e and l o c a l bond i s s u e with par value of $11 million i s on t h e calendar. Bond y i e l d s . Changes i n y i e l d s on seasoned, long-term bonds were mixed l a s t week. Yi e l d s on Aaa-rated corporate bonds increased one b a s i s p o i n t to Uo28 p e r cent while y i e l d s on Baa-rated i s s u e 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 continued t o r i s e 0 with y i e l d s on Aaa-rated i s s u e s increasing b b a s i s p o i n t s to 3o0lj. p e r cent and t h o s e on Baa-rated i s s u e s up 2 b a s i s p o i n t s t o 3= 60 p e r centc Yields on U. S„ Government bonds declined a s i n g l e b a s i s p o i n t . Average y i e l d s on new corporate bonds* a d j u s t e d t o an Aaa b a s i s , were ij..06 p e r cent l a s t week, one b a s i s p o i n t below the average f o r t h e previous week, but s t i l l i| basis p o i n t s above the low f or t h e y e a r reached t h e week ending May 18, ' S h o r t - and i n t e r m e d i a t e - t e r m i n t e r e s t r a t e s . Yields on Treasury b i l l s declined a s i n g l e b a s i s point l a s t week, with y i e l d s on 6-month b i l l s reaching a new low f o r the y e a r . Yields on 3 - 5 year U. S. Government o b l i g a t i o n s d e c l i n e d J4. b a s i s p o i n t s . The average Federal funds r a t e declined 62 b a s i s p o i n t s from t h e r e v i s e d l e v e l of t h e previous week t o average 1.88 p e r cent„ Other short— and intermediate-term i n t e r e s t r a t e s were unchanged. FNMA secondary market o p e r a t i o n s . Purchases of mortgages in the secondary market by the Federal National Mortgage Association dropped i n A p r i l f o r the f i f t h consecutive month„ Th§/volume of $51=5 m i l l i o n was the smallest s i n c e l a s t August. O f f e r i n g s t o FNMA a l s o continued downward. With demand f o r mortgages remaining unusually strong i n r e l a t i o n t o a v a i l a b l e s u p p l i e s , s a l e s by FNMA expanded sharply f u r t h e r ; a t $105=7 m i l l i o n , they were more than double the volume of purchases and the highest i n twelve months,. Stock p r i c e s . Common stock p r i c e s moved i r r e g u l a r l y lower l a s t week i n near r e c o r d t r a d i n g volume. P r i c e s , a s measured by Standard and P o o r ' s composite index of 500 stocks* declined 7 p e r cent t o a new 1962 low l a s t Monday * but recovered most of t h e l o s s during t h e b a l a n c e of the week, c l o s i n g on June 1 a t 59°38. Trading volume averaged 10 C 1 m i l l i o n shares a day, the l a r g e s t weekly volume s i n c e the l a s t week i n -2- October 1929. In r e l a t i o n t o the number of shares l i s t e d on the New York Stock Exchange in these two p e r i o d s , however ; l a s t week's t r a d i n g volume was considerably below t h a t in 1929 = June s e c u r i t y volume. S e c u r i t y financing by corporations t o obtain net c a p i t a l i s expected t o be very l a r g e t h i s month while bond s a l e s by S t a t e and l o c a l governments w i l l probably be r a t h e r l i g h t = Corporate s e c u r i t y f i n a n c i n g i s expected t o t o t a l $1^150 m i l l i o n , t w o - t h i r d s l a r g e r than the Hay t o t a l but one-eighth l e s s than the very l a r g e June 196l t o t a l . Large public s e c u r i t y o f f e r i n g s are expected to t o t a l $58? m i l l i o n . June f i n a n c i n g i n t h i s volume would bring the t o t a l f o r the second quarter t o $3;>050 m i l l i o n , o n e - t h i r d l e s s than the r e c o r d volume a year ago but more than i n t h e second q u a r t e r of most other y e a r s . S t a t e and l o c a l governments are expected t o o f f e r about $650 m i l l i o n in bonds i n June s almost o n e - f i f t h l e s s than the r e v i s e d May volume and about o n e - t h i r d l e s s than t h e average f o r June of the two previous y e a r s . This would b r i n g t o t a l f i n a n c i n g f o r t h e q u a r t e r to #2.3 b i l l i o n , s l i g h t l y l e s s than during the corresponding period l a s t year. Capital markets i n May. Corporate s e c u r i t y f i n a n c i n g t o obtain new c a p i t a l was r e l a t i v e l y l i g h t i n May, while S t a t e and l o c a l government bond s a l e s were i n moderate volume0 Corporate s e c u r i t y s a l e s amounted t o $0,7 b i l l i o n i n May; about t w o - f i f t h s l e s s than the l a r g e volume of both the previous month and May 1961o Large i s s u e s sold p u b l i c l y during the month amounted t o only $200 million - 9 the lowest t o t a l since January, Sales of l a r g e nonconv e r t i b l e bond i s s u e s amounted to $170, while s a l e s of l a r g e stock issues amounted t o only $30 m i l l i o n . Underwriters b i d f a i r l y a g g r e s s i v e l y f o r the small volume of new corporate issues and r e o f f e r e d t h e s e i s s u e s to i n v e s t o r s a t y i e l d s which were g e n e r a l l y the lowest i n over two years. R e t a i l demand a t these y i e l d s was only moderate f o r most i s s u e s and t h e volume of s e c u r i t i e s s t i l l i n underwriting syndicates climbed from a n e g l i g i b l e amount to around $1|0 m i l l i o n 0 Average y i e l d s on new corporate bond o f f e r i n g s s o l d l a s t month> a d j u s t e d t o an Aaa b a s i s , were lu09 per cent, 8 b a s i s points l e s s than in A p r i l 9 and the lowest monthly average since July 1958= On a weekly b a s i s , however s new i s s u e y i e l d s increased s l i g h t l y toward the end of t h e month0 Yields on seasoned bonds also declined somewhat f u r t h e r during May with those on Aaa-rated i s s u e s decreasing 3 b a s i s p o i n t s to k.28 per cent by month-end. Bond s a l e s by State and local governments amounted to $0=8 b i l l i o n during May, 6 per cent l e s s than in A p r i l but o n e - t h i r d l a r g e r than the average f or ^ay of the two previous y e a r s . Dealers' a d v e r t i s e d i n v e n t o r i e s of unsold s e c u r i t i e s continued t o r i s e during the f i r s t t h r e e weeks of the month t o a record l e v e l of $680 million and bidding f o r new i s s u e s became l e s s a g g r e s s i v e . I n v e s t o r demand continued s e l e c t i v e but toward the end of t h e month s e v e r a l l a r g e new i s s u e s o f f e r e d to y i e l d somewhat more than recent comparable i s s u e s were very favorably r e c e i v e d . Late in the month d e a l e r s a l s o cut the p r i c e s on a number of unsold i s s u e s t o r a i s e y i e l d s 5 to 20 b a s i s p o i n t s above t h o s e o r i g i n a l l y o f f e r e d . This, however, was only s u f f i c i e n t t o move a moderate amount of t h e i r unsold s e c u r i t i e s , and by t h e month-end, the volume of a d v e r t i s e d i n v e n t o r i e s was $625 million,, $80 m i l l i o n above the end of A p r i l l e v e l but $55 m i l l i o n l e s s than the record volume reached e a r l i e r in the month. R e f l e c t i n g t h e s e developments y i e l d s on municipal bonds r o s e during the month, reversing the downward t r e n d t h a t had p r e v a i l e d s i n c e mid-December,, At month-end, y i e l d s on 20-year, Aaa-rated bonds were 3„Cli per c e n t , 12 b a s i s p o i n t s above t h e low reached i n t h e f i r s t week of t h e month, but 29 b a s i s p o i n t s below the mid-December l e v e l 0 Common stock p r i c e s dropped sharply f u r t h e r in May in a c t i v e tradingo P r i c e s , as measured by Standard and P o o r ' s composite index of 500 s t o c k s , declined almost 9 per c e n t on balance to c l o s e t h e month a t 59.62, almost o n e - f i f t h below t h e December 12 high. Trading averaged 5=0 m i l l i o n shares a d a y , 1„7 m i l l i o n more than i n A p r i l and t h e l a r g e s t since A p r i l I 9 6 I , During the f i r s t t h r e e weeks of the month, stock p r i c e s moved i r r e g u l a r l y downward, declining about 2 p e r cent from t h e i r end of April l e v e l . During the period May 21-28, however, p r i c e s f e l l very sharply culiminating i n a dramatic decline of almost 7 per c e n t on May 28, one of the l a r g e s t percentage d e c l i n e s on record. Prices recovered almost a s dramatically d u r i n g the next two t r a d i n g s e s s i o n s , however, ending t h e month s l i g h t l y above t h e i r Hay 25 l e v e l 0 Trading a c t i v i t y roughly followed t h e movement In stock p r i c e s . Volume during the f i r s t t h r e e weeks of t h e month v a r i e d considerably from day t o day. A c t i v i t y picked up s h a r p l y l a t e i n the month,, with t r a d i n g volume averaging 11„6 m i l l i o n shares f o r t h e l a s t three days; t r a d i n g on May 28 t o t a l e d ll*„8 mill ion shares, a volume exceeded only by s a l e s on October 29, 1929P when, of course, the number of shares l i s t e d on the New York Stock Exchange was considerably smaller tnan today„ Due to the u n c e r t a i n t y i n t h e market,, several new stock i s s u e s were postponed near the end of May, including two l a r g e public u t i l i t y i s s u e s . In a d d i t i o n , a number of secondary o f f e r i n g s were delayed 0 More d e t a i l e d information concerning recent c a p i t a l market developments i s presented in t h e attached e x h i b i t s . C a p i t a l Markets Section, Division of Research and S t a t i s t i c s , Board of Governors of the Federal Reserve System. EXHIBIT A, Port I LONG-TERM BOND YIELDS, HIGH-GRADE Weekly Exhibit A - Part I I Date Corporate Aaa 1 / i •i "* I S t a t e , and . local government Aaa 3 / Spread between U. S. Govt, and S t a t e and Corporate l o c a l Aaa Aaa (per cent) V ci U. S . Govt. . long-term 2 / 1957 - High 1958 - Low 1 9 5 9 - 6 0 - High 1 9 6 0 - 6 1 Low 1 9 6 1 - High 1962 - High Low May 4 May 1 1 May 18 May 25 iJune 1 2 / Note: k.lk 3.55 4.6l 4.21 4.46 4.43 4.27 (9/27) (5/2) (1/29/60) (3/17/61 (9/15) (2/16) (5/25) 4,30 4.29 4.28 4.27 . L28-/ 3.76 3.07 4.42 3.70 4.07 4.12 3.85 3.87 3.85 3.87 3.90 3.89 F o r f o o t n o t e s s e e E x h i b i t B. (lO/lB) (4/25) (1/8/60) (5/12/61) (12/29) (2/23) (5/11) 3 . 4 5 (8/29) 2.64(5/1) 3 . 6 5 ( 9/24/59) 2 . 9 9 (9/1/60) 3 . 3 7 (7/6) 3.26 (1/4) 2.92 (5/3) .60 .22 .59 .19 .57 .47 .29 2.92 2.93 2.94 3.00 3.04 .44 .41 .37 .39 ' f t .50 .34 .92 .46 .76 1.08 .80 .95 .92 .93 .90 .85 EXHIBIT B. P.n I LONG-TER.A_BOND YlELPS, LOWER-GRADE S T A T E A N D I Q C A t G O V E R N M E N T Bi 1957 1958 1959 I960 1961 1962 kxnibit B - Part II Date Coiporate Baal/ S t a t e and local govt. Baa]/ Spread between Aaa a n d Baa S t a t e and Corporate local £ovt. (per cent) 1957 - High 1 9 5 8 - Low 1 9 5 9 - 6 0 - High 1 9 6 0 - 6 1 Low 1961 - High 1962 - High Low Hay k May 1 1 Hay l f i May25 June 1 £ / 5*10 14.51 5.36 li.98 5.13 5.11 1.98 (11/29) (7/11) (2/12/60) (9/9/60) (10/27) (1/5) (6/1) 5.02 5.00 1.99 L.96- U.51 3.'61 I4.I16 3.93 1.16 Lob 3.52 3.52 3.52 3.52 3.58 3.60 (8/29) (5/1) (1/7/60) (11/9/6I) (3/23) (1/11) (5/17) 1.27 .77 .81 .66 .81 .7? .63 .72 .71 .71 .71 .70 1.21 .93 1.08 • 57 :n .60 .59 .58 .5h .56 J>/ Preliminary. \ J Weekly average of d a i l y f i g u r e s . Average term of bonds included in 23-26 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 includes bonds due or c a l l a b l e in 10 years or more, 3 / Thursday f i g u r e s . Only general o b l i g a t i o n bonds are included; average term i s 20 y e a r s . Digitized Note.—Highs for FRASER and lows are 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 dates f o r d i f f e r e n t a e r i e s . For spreads, high r e f e r s t o w i d e s t , and low to narrowest. EXHIBIT C. Pjorl I SHORT. AND INTERMEDIATE- TERM INTEREST RATES, G O V E R N M E N T MONTH SILLS 3 - 5 m i issuis R. D I S C O U N T R A T I 3 • MONTH BILLS I I I I I I I I I I I I I I l l l M I I I I I I 1 1 ,11 M i l l ! Li LLU-Li-ll- .1 11111 M i l l 1958 1959 0 I960 Exhibit C - P a r t I I Date Discount rate 1/ 1957 - High 1958 - Low 1959-60 - H 1960-61 Low 1961 - High 1962 - High Low 3.50 1.75 ii.00 3.00 3.00 3.00 3.00 May U May 11 May 18 May 25 June 1 2 / 3.00 3.00 3.00 3.00 3.00 3-month b i l l s 2/ 3 . 6 1 (10/18) Yields 6-month b i l l s 2/ (per cent) 3-5 y e a r issues 2/ Spread between y i e l d s on 3 month b i l l s and y i e l d s on 6-mo. b i l l s | 3 - 5 y r . i s s u e s it.Ol* (10/18) 2.1k (6/6) 5.07 (1/8/60) 5 . 0 0 (12/24/59) .26 2 . 8 1 (2/16) 2.67 (5/18) 3.02 (1/12) 2.76 (6/1) 3.88 (2/2) 3 . W (4/6) M .2k .08 2.7k 2.67 2.67 2.69 / 2.68./ 2.83 2.77 2.77 2.77 2.76 3.51 3.1*8 3.55 3.57 3.53 .09 .10 .10 .08 .08 . 5 8 (5/29) k. 59 (1/8/60) 3 . 0 2 (12/26) 2 . 1 1 (10/28/60) 2 . 3 5 (4/28/61) 3 . 1 5 (5/12/61) 3.86(8/11) 2 . 6 6 (12/29) 2 . 9 0 (12/29) .79 .12 .86 .Oii 1.81 .38 1.51 1.19 .71 . .77 •81.bb .88 .85 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 I 5HORT- AND BANKS AND INTERMEDIATE-TERM OTHER INTEREST RATES, PRIVATE BORROWERS STOCK EXCHANG CmiOANS FINANCE COMPANY PAPER P R I M E RATE . 1. DISCOUNT 11 I I II LI I I I I I I I IJ.JJ1-UJJ I I I I I I I I I I I LLLLU.lJ.il M E x h i b i t i) - P a r t I I S t o c k Exchange c a l l loan 1 / Prime r a t e 1/ F i n a n c e company paper 2/ Federal funds 3 / (per cent) 1957 - High 1958 - Low 1 9 5 9 - 6 0 - High 1 9 6 0 - 6 1 Low 1 9 6 1 - High 1962 - High Low U.50 3.50 5.50 It. 50 it. 5-0 U.50 ii.5o JU.50 3.50 5.00 i*-5o it. 5o It. 50 h.So 3.88 1.13 5.13 2.50 3.00 3.13 2.88 May h May 1 1 May 18 May 25 June 1 2 / L5o, U.5o h.5o It.5o it.5o it. 50 It.50 it. 5o 4.50 it. 5o 3.00 3.00 2.96 2.88 2.88 y (11/15) (8/8) (1/22/60) (8/5/61) (12/29) (it/13) (6/1) 3 - 5 0 (11/8) .13(5/29) It.00 (5/13/60) .it3 (1/27/61) 2 . 8 8 (12/29) 2.95 (3/23) 1.30 (1/26) 2.65 2.60 ^58 2.55 S p r e a d between 3-mo. b i l l s and f i n a n c e Co. p a p e r y I 1 .63 -.35 1.02 .11 .56 .ill .19 .26 .33 .29 .19 .20 Weekly rate shown i s that in e f f e c t at end of period. Stock Exchange c a l l loan rate is going rate on c a l l loans secured by customers1 stock exchange collateral at New York City banks. Prime rate i s that charged by large banks on short-term loans to business borrowers of the highest oredit >K\ standing. 2/ Average of daily rates published by finance companies for directly placed paper for varying maturities^ 1 . in the 90-179 day range. 4' 3 / Weekly average of daily e f f e c t i v e rate, which i s the rate for the heaviest volume of purchase and , •< Digitizedsale fortransactions FRASER as reported to the Federal Reserve Bank of New York, Note.—-Highs and lows are for individual series and may be on different dates for different series. ' http://fraser.stlouisfed.org/ For spreads, high refers to.widest, and low to narrowest. Federal Reserve Bank of St. Louis 1 EXHIBIT. E.P = STOCK MARKET \ n s of Do Mars / CK MARKET (RED < — * C H A N G E IN SERIES YIEIOS _Xi_Li.Li-Lia.-V. Ayi 1 l 1 1 l 1 1 1 Exhibit £ - Part I I Bate 1 9 6 0 - 6 1 - High Low 1962 - High Low April May May 18 May 25 June 1 2 / Stock p r i c e index 1/ 72.01* 53.32 70.94 59.36 (12/8/61) (10/21/60) (3/16) (6/1) 68.05 62.99 63.82 59.17 59.36 Trading Common volume 3 / y i e l d s 2/ (millions ( p e r c e n t ) of s h a r e s ) 2.82 3.62 2.93 3.19 5.8 2.2 10.1 3.0 3.05 3.32 3.25 3.1*8 3.49 3.5 5.0 3.9 U. 6 10.1 Stock m a r k e t c u s t o m e r c r e d i t Bank Customers debit b a l - loans to a n c e s 1*/ " o t h e r s " 5 / ( I n m i l l i o n s of d o l l a r s ) Total 5 , 6 0 2 (12/61)14,259 (12/61) 1*,11*2 (5/60) 3,001* (7/60) 5,1*91 (1*) i * , l l l ( 1 ) 5,1*29 ( 2 ) 1*,066 ( 2 ) 5,1*91 n.a. n.a. n.a. n.a. 14,079 n.a. n.a. n.a. 1,377 1,121 1,1*18 1,31*8 (e/ao/ei) (5/25/60) (5/9) (1/2k) 1,1*12 1,398 1,1(16 1,398 n.a.—Not available. 2 / 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 lots 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 f o r dates on which price index reached i t s high 3/ 4/ Averages of daily trading volume on the New York Stock Exchange. End of month figures for member firms of the New York Stock Exchange which carry margin accounts; excludes balances secured by U. S. Government obligations. 5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying U. S. Government securities. Prior to July 1, 1959, such loans are excluded only at banks in New York and Chicago. Weekly reporting banks account for about 70 per cent of loans to others. Tor FRASER further d e t a i l see Bulletin. Digitized for to EXHIBIT F. Pari I FEDERAL NATIONAL SECONDARY MORTGAGE MARKET ASSOCIATION V OPERATIONS Monthly Ullloni of dollo \ OFFERINGS p /1 11 I 1 11 1 i IV \AAJ \ 1 Ik J i IJ V J w Z / j L " A iV A i\ T ' y W z V / j roicH A S E S V V fi L .«VL X/ t / / r Exhibit F - Part I I Date 1961 - Apr. May July Aug. Sept. Oct. Nov. Dec. 1962 - J a n . Feb. War. Apr. E s t i m a t e d o f f e r i n g s t o FNMA Purchases Immediate Standbyby Total p u r c h a s e commitment FNMA. ( I n m i l l i o n s of d o l l a r s ) S 26.k 35.0 U7.9 75.7 111.2 122.9 151;. 2 ua.it 120.0 118.3 82.5 68.6 51.5 21*. 0 32.2 1*6.9 73.9 108.0 119.3 150.9 138.5 117.7 116.6 80.8 66.3 50.2 2.1* 2.9 1.0 1.7 3.2 3.6 3.3 2.9 2.3 1.7 1.7 2.3 1.3 21.8 21.3 25.lt 2lt.lt 52.7 60.1* 92.lt 112.3 106.7 10lt.7 88.8 81.5 51.5 Sales by FNMA 165.6 101.lt 17.2 5.6 2. It 10.5 1.8 2.7 2.It l.lt 7.3 c/75.9 105.7 •—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 during the period from s e l l e r s proposing that FNMA. execute purchasing c ontraots. An immediate purchase contract covers e x i s t i n g mortgages which the s e l l e r must d e l i v e r to FNMA n i t h i n 45 days. A standby commitment contract relates t o proposed mortgages on housing not y e t under construction which the s e l l e r must usually d e l i v e r within one Digitized for year. FRASER Purchases include those under both inmediate purchases and standby commitment contracts. Data exclude FNMA a c t i v i t y under Special Assistance and Management and http://fraser.stlouisfed.org/ Liquidating Programs, Federal Reserve Bank of St. Louis If IV. Ik Exhibit G Yields on New Corporate bond Issues Adjusted t o an Aaa basis Number of i s s u e s included Monthly averages: 1961 - July August September October November December. 1962 - January February March April May June Weekly averages; 1961 - July 7 14 21 28 August 1* 11 18 25 September 1 8 15 22 29. October 6 13 20 27 November 3 10 24 December 1 8 4 4 2 7 9 3 4 5 6 7 Amount Average of i s s u e s yield included (per (millions cent) of d o l l a r s ) 273.0 115.0 78.8 200.0 229.0 115.0 130.0 . 394.5 .240.0 299.0 lii8 0 1 1 2 2 1 1 8.0 200.0 65.0 55.0 20.0 40.0 4. 62 4.59 4.38 4.26 4.32 1.39 4.45 4.50 4.23 4,17 4.09 4.46 . 1 18.0 60.8 >5.0 4.36 4.25 2 3 3 60.0 95.0 45.0 4.21 4.28 , 4.21 ~k 94.0 60.0 30.0 75.0 4.29 4.35 4.40 4.29 4.55* In 68 (6/16) it. 21 ( 1 1 / 3 ) 1961 January 5 I Amount Average of i s s u e s yield included (per (millions cent) of d o l l a r s ) ItO.O December 15 22 29 il.60 ; 4.64 4.46 4. 54 4.73* it.60 i 1 2 1 1 2 Number of i s s u e s included jh 2 9 16 23 30 .1 6 13 20 27 11 18 25 l 60.0 3 70.0 2 1 1 1 1 1 2 2 2 2 2 19.5 300.0 50.0 25.0 30.0 65.0 60.0 85.0 98.0 26.0 100.0 4.4o 4.52* 4.50 4.37 4.29 4.23 4.21 4.22 4.21 4,12 4.17* 2 2 115.0 28 0 ui 39 rO 17,0 4.14 4.21 0: 4.40 l 0 2 2 1 4.50 " c '' ••• 0 . ; ™ 4,00 IS 22 29 Notei Averages of o f f e r i n g y i e l d s on a l l new i s s u e s of publicly sold bonds rated Aaa, Aa and A by Moody's Investors Service (except s e r i a l , equipment t r u s t and convertible Issues, o f f e r i n g s of natural gas p i p e l i n e and foreign companies, and i s s u e s guaranteed by the Federal Government) weighted by s i z e of i s s u e s . Yields on Aa- ana A-rated bonds are f i r s t adjusted to an Aaa b a s i s , using the comparable spreads i n y i e l d s on seasoned bonds (Moody's averages). Averages r e f l e c t changes in i n d u s t r i a l composition, type, maturity, and c a l l provisions of new o f f e r i n g s . Weekly averages considered unusually unreliable a s i ndi cat or s of i n t e r e s t r a t e s on new i s s u e s because of the small number or s p e c i a l c h a r a c t e r i s t i c s of o f f e r i n g s included e t c . are marked with an a s t e r i s k . Source; weekly data, F e d e r a l Reserve;monthly data; F i r s t National City Bank of New York. fz. H.„4 Exhibit H Long-term Corporate and S t a t e and Local Government Security Offerings and Placements (In millions of d o l l a r s ) 1962 January February March April May Juhe New capital State and local 2/ Corporate 1/ 1 19 to 1 1961 1962 I i960 1 1961 #2 . 8# 80- 580 667 562 570 715 860 e/850 eTlOOO e/625 713 689 764 700 611 Sol) e / l 150 2,118 1,259 1,318 . 761 577 1,044 e/850 e/8'00 e, cj)0 723 641 1,034 719 545 991 736 967 726 485 604 733 492 606 663 890 956 852 677 788 2/584 340 501 491 2,166 2.397 1,823 G/2,049 1,000 2,2g6 1,700 1,340 4,563 6,386 p/8jk35 4,136 5,916 7,257 July August September 1,028 762 647 October November December 1,090 948 1,000 qua rter quarter quarter quarter 1 s t half Three quarters Year . 2=258 e/i0<0 111 1st 2nd 3rd 4th • 2,145 2,382 2,428 2,698 ^/S /OS 6,50k 8,941 11,979 4,527 6,955 9,653 Excluding finance companies 3 / 1st 2nd 3rd 4th quarter quarter quarter quarter e/2,159 Year I 1,554 4,552 2,337 2,807 11,253 • 1,716 2,165 2,018 2,347 e/2,475 e./? 300 - - 8,246 Preliminary, Estimated. S e c u r i t i e s and Exchange Commission estimates of net proceeds. Investment Bankers Association of America estimates of p r i n c i p a l amounts. Total new c a p i t a l i s s u e s excluding" o f f e r i n g s of s a l e s and conruner finance companies. Exhibit I H 14 New Corporate Security Issues, Type of Issue and I s s u e r (In m i l l i o n s of d o l l a r s ) Quarter month Net proceeds f o r Gross proceeds f o r new new c a p i t a l 1 / 2/ c a p i t a l and refunding 1 / Common Bonds and Public Communi- Other Total P u b l i c l y j P r i v a t e l y pfd. Mfg; 1 u t i l i t y c a t i o n s i s s u e r s o f f e r e d I o f f e r e d stock J1 J T 7# 110 75k 955 536 692 129 kl6. 298 511 562 6# 598 808 652 189 lk9 317 381 1,059 913 896 997 662 2,303 112 967 880 1,275 1,139 l,L2b hh9 1,77k 65k 8k5 515 lsk66 595 836 381 1,081 595 836 81 1,095 10k lk7 832 1,052 803 1,263 2,'378 1,155 716 507 655 k30 k56 717 601 695 696 2,231 l,3k2 1,779 1,075 813 678 i 1,155 1 987 | 1,094 178 273 211 713 666 92k k2k 225 123 336 kik 29k 255 331 3k8 355 572 #2 ki 1 "336 217 3k8 567 129 167 . 15k 1,170 320 #3' 259 177 2L8 310 225 310 169 , 99 2k8 57k kk7 kk6 k28 255 252 271 215 306 137 160 8k 25k k39 389 369 215 111 306 362 168 21 . kl 19 99k 85 16 16 13 75 25 80 k2 253 368 211 297 289 k67 315 279 209 k87 291 k85 617 88k 8k7 1:300 273 k97 386 650 232 232 #3 #5 lk3 155 209 325 205 131 318 kkO 89 lk8 193 380 73 362 21 80 225 218 275 300 I960 - I II HI IV 2,2# 2,237 2,#0 2,832 93k 1,07k 1,336 1A62 1961 - I II III IV 1,992 5,3# 2,566 3,236 1962 - I . 696 • III IV 1961 - Jan. Feb, Mar. Apr, May June July . Aug, Sept. Oct. Not, Deo r 1962 •= Jan? Feb. Mar, Apr e / May June July Aug, Sept. Oct, Nov, Dec, 509 }d7 Preliminary, T] hstimatedT 1/ Gross proceeds exceed n e t proceeds by the cost of f l o t a t i o n . 2 / *or t o t a l see i n h i b i t H; o t h e r i s s u e r s a r e e x t r a c t i v e , r a i l r o a d and other t r a n s p o r t a t i o n s r e a l e s t a t e and f i n a n c e and commercial and other S o u r c e . — S e c u r i t i e s and Exchange Commission. :.iU Other S e c u r i t y O f f e r i n g s ( I n m i l l i o n s of d o l l a r s ) Foreign government 2/ 1962 W 3 January February March April Kay June July August September October November December 1U2 10 35 e / 10 156 3^ ^L60 29 iiC 12 66 250 225 236 s/196 57 18 I4.66 ~2h8 2/ho Year' Jan.-April %/2?fr gf 1/ 160 195 '--8 =103 • U2 =>155 109 518 ^86 -6 5U -116 e/862 281 2h7 ! ! -0,57 1 . is -175 -11.6 50 -IS? 520 18 2kb 188 g 35U 199 160 1U9 181 1,W8 1,672 352 630 H™~5Z Federal 58 ]1;.0 -80 7 o -1k$ 252 100 1U9 278 193 36 3lt 2 la. i;3 3U 182 150 21x6 "Nit" S t a t e and Local governmenlT~57~ January February March April May June July August September October November December w 2 175 25 1 Year Jan. - A p r i l ~ ^ 6 29 20 2 -=156 2# -3U6 ! i '! U7 -1hh -79 .-8? 20? 22 193 108 98 56 =111* -196 =202 -59 -277 170 320 95 23 =201 = 23 -33 -250 =? 6 =633 -162 -17k -559 -73k Preliminary. Estimated by Fede^ClT^iservi 7 These d a t a d i f f e r from t h o s e in Exhibit H an t h a t r e f u n d i n g , i s s u e s 3 as w e l l as new c a p i t a l i s s u e s $ a r e included. Long-term s e c u r i t i e s a r e d e f i n e d a s those maturing i n more than 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 in. 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 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' Se:,-a:ritees and Exchange Commission, 3 / I s s u e s not guaranteed by t h e U, S„ Government, Source, long-term., S e c u r i t i e s and Exchange Commission) s h o r t - t e r m . Treasury Department and Federal Reserve, k / These d a t a d i f f e r f r o m t h o s e i n Exhibit H and above in t h a t t h e y r e p r e s e n t new o f f e r i n g s l e s s r e t i r e m e n t s > whether from t h e proceeds of r e f u n d i n g i s s u e s o r from o t h e r funds„ Data i n c l u d e only i s s u e s with o r i g i n a l m a t u r i t y of one y e a r o r l e s s , 5/ P r i nFRASER c i p a l l y t a x and bond a n t i c i p a t i o n notes* w a r r a n t s or c e r t i f i c a t e s and P u b l i c Digitized for Housing A u t h o r i t y notes* In some i n s t a n c e s PHA n o t e s included may have a somehttp://fraser.stlouisfed.org/ what l o n g e r than one y e a r . Source: Bond Buyer and F e d e r a l Reserve. Federal Reserve Bank of St. Louis Exhibit K Ho 111 Large Long-term Public Security 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 Offered (In m i l l i o n s of d o l l a r s ) Corporate | Bonds J 1 ( o t h e r than fConvertible bonds !convertibles)| Total Month 1961 1*80 1*35 #5 165 78 205 320 125 170 1*25 330 ii30 170 557 #2 1*75 185 168 3 51* 391 255 195 1*25 366 6U8 200 •July September October November December 1962 - January Februaly March April May Stocks State and local government 62 97 115 20 58 81 1*5 130 25 1*. 75 33 67 26 a 167 30 15 51 Other 2/ 256 616 179 281 1*35 326 1*80 307 561 662 259 1*23 373 25 151 100 7j_ 1*0 250 11*5 61* 30 55 88 Large I n d i v i d u a l I s s u e s Offered May 1 through June 1 Issuer i CORPORATE Com.stk. 18.3 Ist&ref .mtg.bds.ljOoO Deb. 20.0 1 s t mtg, bds. 2.5 c O * "-Pacific Power & Light Co. .* Southern C a l i f . Edison Co. • Wisconsin Telephone Co. Milwaukee Gas Light Co. ' , Columbus & Southern Ohio ^ E l e c t r i c Co. t,j( Florida Power Corp. a Gulf S t a t e U t i l i t i e s Co. Utah Power & Light Co. Utah Power & Light Co. •^Copenhagen Telephone Co. Alabama Power Co. 1 s t mtg. bds. 16.0 1 s t m t g . b d s . 25oO 1 s t mtg. bds. 1 s t mtg. bds. Pfd.stk. S.F 0 deb. 1 s t mtg. bds. • ;i Amount Coupon r a t e or O f f e r i n g Rating ( m i l l i o n s Maturity net i n t e r - yield of e s t cost dollars Type 3/ 17,0 22.0 12.0 15»0 17oO 1987 2002 1987 l*~l/l* 1*~3/8 l*-5/8 1*.25 l*c27 i*o50 Aa Aaa Baa 1992 1992 1992 1992 1-3/8 l*~l/l* l*-3/8 h-1/2 1*.30 l*o 20 1*.28 l*e 35 A Aa Aa A 1977 1992 5-5/8 U-3/8 5-95 l*o 39 A 3.36 2.71 3.33 1.90-2.90 3.02 1.85»3o3QS/ A tea — i STATE AND LOCtiL GOVERNMENT j Port of New York Auth. | St a t e of Hawaii Wash. Sub. S a n i t a t i o n D i s t , J Md„ 'I Rev.-Ut. G.O. • G.Q. 35.0 10o0 . 1993 1965=82 1 5 . 0 , 1 9 6 W 9 A A &. K-2 H.ll* Large I n d i v i d u a l I s s u e s O f f e r e d May 1 through June 1 (Cont'd) Issuer Type 3 / Coupon Amount r a t e or O f f e r i n g (millions Maturity net i n t e r - y i e l d of e s t cost dollars Rating STATE AND LOCAL GOVERNMENT (Cont'd) C i n c i n n a t i , Ohio Georgia S t a t e Sch. Bldg„ Auth 0 A u s t i n , Texas P o r t of New Orleans Board of Comm., La. S a l t Lake C i t y , Utah M e t r o p o l i t a n S e a t t l e , Wash. Sacramento Man. U t i l i t y D i s t . , Cal. —S t a t e of I l l i n o i s Wayne C o . , Mich. S t a t e of M i s s i s s i p p i S t a t e of New York S a l t River P r o j e c t , A g r i . Imp. Pwr. D i s t . , Arizona G.O. 10.0 1963-87 2.77 1.50-3.00 Aaa Rev.-Rent. Rev.-Uto 26.5 xU.o 1963-83 1963-87 3.09 '3o0h 1.60-3.1*0 1.60-3.20 A Aa G.O. G.O. Rev.-Ut» 25.0 11.5 16.0 1972-97 1965-80 196I1-2000 3* 3k 2.69 3.63 2.70-3.502/ A Aaa 1.90-2.-80 2.00-3.70 Rev„-Ut. G.O. G.O. G.O. G.O. 10.0 95.0 18.3 19.5 57.3 1966-82 1963-87 1967-2002 1963-82 1961^-2012 2.96 2.96 3.66 3.12 3.22 2.10-3.15 1.55-3.15, , 2.1*0-3.752/ 1.60-3.20 1.70-3.75 G.O. 10.0 1965-91 3.35 2.05-3.551/ A Bonds Bonds 20.0 25.0 1977 1997 5-1/U 5-1/U 5-1*7 5.50 A Baa 25.0 17-5 1982 1977 5-lA 6 5.33 6.1*1 — Aa Aaa A Aa Aaa OTHER Kingdom of Denmark Govt, of New Zealand European Coal and S t e e l Community Japan Development Bank Bonds Bonds ^ -x-—Rights o f f e r i n g . Foreign c o r p o r a t i o n 0 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 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 non-guaranteed i s s u e s by F e d e r a l a g e n c i e s . 3 / In 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. denotes g e n e r a l o b l i g a t i o n s ; Rev,-Ut„ s revenue o b l i g a t i o n s s e c u r e d only by income f r o m 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 only by revenue from qua 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 f r o m s p e c i f i c t a x e s only; R e v . - R e n t . , revenue bonds secured s o l e l y by l e a s e payments, V 1 / 1 0 p e r c e n t bonds maturing 1990-93 r e o f f e r e d t o y i e l d Uol*0 p e r c e n t . V 1 - 1 / 2 p e r c e n t bonds maturing 1996-97 r e o f f e r e d t o y i e l d It.00 p e r c e n t . 6/ 3 - 1 / 2 p e r c e n t bonds maturing 2001-02 n o t r e o f f e r e d . 7 / 1 p e r c e n t bonds maturing 199U r e o f f e r e d t o y i e l d li.OO p e r c e n t . Ho lii Exhibit L Forthcoming Large Long-term Public Security Offerings 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 Subsequent to During month following date shown date shown S t a t e and Corporate l o c a l govt. Other 2/ Corporate l o c a l govt, i Date of computation 1961 - May 31 June 30 J u l y 31 Aug. 31 Sept. 29 Oct. 31 %ov, 30 Dec. 29 1962 - Jan. 31 Feb. 28 Mar. 30 Apr. 30 May 31 1*87 521 170 175 s 1*80 222 628 185 587 131 195 ii06 399 251 597 295 223 165 611 666 255 2I4.O 50U 75 73 35 hll k2l 591 525 3lil 693 598 692 61+ i B IS t 771 291 537 530 U5U 693 1*98 H5 567 239 s 337 75 73 35 61; 95 55 Forthcoming Large O f f e r i n g s , as of June 1 Issuer Type Amount (millions of d o l l a r s ) Approximate date of o f f e r i n g CORPORATE Mountain S t a t e T e l . & Tel. Co. United Gas Corp. ^Transcontinental Gas Pipe Line Co. Columbia Gas System, Inc. C o n t a i n e r Corp. of America Northern S t a t e s Power Co. Texas Gas Transmission Co. Air Reduction Co., I n c . Deb. 1 s t rabg.&coll.tr.bds, S„F. deb.&Pfd.stk. Deb. S.F. deb. 1 s t ratg. bds. Deb. Conv.subcdeb. 1 s t mtg. bds. Consolidated Edison Co. Cincinnati Gas & Elec. Co. 1 s t mtg. bds. P h i l l i p s , N. V. ( f o r e i g n corporation) Com. s t k . Puget Sound Power & Light Co. Houston Lighting & Power C 0 . -"-Columbia Bancorporation *Pet Milk Co. Commerce Oil Refining Corp. Virginia E l e c t r i c & Power Co. New England E l e c t r i c System Pfd. s t k . ' 1 s t mtg. bds, Conv.sub.deb, S.F. deb, Deb,, bds. & com. Com. s t k . Com. s t k . 50 = 0 hO oO 45.0 25.0 25c 0 15-0 1*0.0 3W5 100 = 0 25.0 75-0 15=0 30.0 30.0 20.0 L5.o liOoO 20.9 June 6 June 7 June 7 June 8 June 12 June 13 June 1U June 20 ( r i g h t s expire) June 20 June 22 June 22 ( r i g h t s expire) June 27 June June * Indefinite Indefinite Indefinite ( r i g h t s expire) He lit L-2 Forthcoming Large O f f e r i n g s , as of June 1 (Cont'd) Type Amount (millions of d o l l a r s ) Approximate date of o f f e r i n g STATE,AND LOCAL GOVERNMENT Maricopa Co., Arizona De Kalb Co., Georgia Monroe Co., N. Y. S t a t e of C a l i f o r n i a Houston Ind. Sch. D i s t . , Tex. Georgia S t a t e Highway Auth. Dallas Ind. Sch. D i s t . , Texas Texas Univ./Texas A&M, Texas P i t t s b u r g h , Penna. J e f f e r s o n County, Colorado Tarrant County, Texas Dade County, Florida Jacksonville Expressway Auth., F l a . G,,0. G,,0. G, 0. G. 0, G. 0. Rev. -Rent. G. 0. Rev. -Rent. G, 0. G, 0. G, 0. G. 0. Rev. - u t . 13.5 i|6,0 iiOoO June 5 June 12 June 12 June lit June 26 June 27 June 27 June 28 Indefinite Indefinite Indefinite Indefinite Indefinite 25.0 30.0 June 12 June 20 11,2 1L0 10.8 100,0 12o5 i5=o 10.0 10.0 35,0 19 o 2 OTHERS ^Kingdom of Norway •aGovt. of A u s t r a l i a Bonds Bonds —Included in t a b l e f o r f i r s t time. 1 / Includes corporate and o t h e r i s s u e s of #15 m i l l i o n and over; State and l o c a l government i s s u e s of $>10 m i l l i o n and over. 2/ Includes 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 Reconstruction and Development i s s u e s and non-guaranteed i s s u e s by Federal agencies. Note.—Deletions f o r reasons o t h e r than s a l e of i s s u e ; None,