Full text of H.16 Capital Market Developments : June 5, 1961

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1

Not f o r P u b l i c a t i o n DECONTBOLLED AFTER SIX MONTHS
| H.Ik
Ju„

June 5 , 1961.

T T%;
JET DEVELOPMENTS
UNITED STATES

The volume of l a r g e p u b l i c s e c u r i t y f i n a n c i n g t o o b t a i n new
c a p i t a l was moderate l a s t week b u t i s expected t o be l a r g e r t h i s week.
L a s t week ( s h o r t e n e d by t h e Memorial Day h o l i d a y ) s e c u r i t y o f f e r i n g s by
c o r p o r a t i o n s a g g r e g a t e d $50 m i l l i o n w h i l e S t a t e and l o c a l government bond
s a l e s t o t a l e d $72 m i l l i o n . - This week, ending June 9 , f i v e l a r g e S t a t e
and l o c a l government bond o f f e r i n g s w i t h p a r v a l u e of $lij2 m i l l i o n a r e
on t h e c a l e n d a r while c o r p o r a t e i s s u e s w i t h g r o s s proceeds of $126 m i l l i o n
a r e s c h e d u l e d . Also expected t o be s o l d t h i s week i s a $250 m i l l i o n AT&T
debenture i s s u e , p r o c e e d s from which w i l l be u s e d t o r e t i r e an i s s u e of
t h e same s i z e s o ld i n November 1959.
Long-term bond y i e l d s . Yields on a l l t y p e s of l o n g - t e r m bonds,
except B a a - r a t e d S t a t e and l o c a l government s e c u r i t i e s , i n c r e a s e d s l i g h t l y
l a s t week. U. S. Government and c o r p o r a t e Aaa bond y i e l d s r o s e two b a s i s
p o i n t s w h i l e t h e i n c r e a s e was one b a s i s p o i n t f o r A a a - r a t e d S t a t e and l o c a l
and Baa c o r p o r a t e bonds.
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 3-month
T r e a s u i y b i l l s d e c l i n e d s l i ^ i t l y l a s t week w h i l e . t h o s e on 6-month b i l l s
and 3 - 5 y e a r Government o b l i g a t i o n s rose. The i n c r e a s e in i n t e r m e d i a t e term government y i e l d s was 13 b a s i s p o i n t s , b r i n g i n g y i e l d s on t h e s e
s e c u r i t i e s c l o s e t o t h e i r e a r l y I 9 6 I h i g h . I n t e r e s t r a t e s on d i r e c t l y p l a c e d f i n a n c e company p a p e r w i t h 90-179 day m a t u r i t y were i n c r e a s e d 1 / 8
p e r c e n t t h e middle of l a s t week t o 2 - 5 / 8 p e r c e n t , r a i s i n g the weekly
a v e r a g e t o 2.58 p e r cent from 2.50 p e r c e n t . The a v e r a g e e f f e c t i v e r a t e
f o r Federal f u n d s was 2 p e r c e n t , c o n s i d e r a b l y lower t h a n in t h r e e p r e c e d i n g weeks. Other s h o r t - and i n t e r m e d i a t e - t e i m i n t e r e s t r a t e s were unchanged.
Mortgage r e c o r d i n g s . Nonfara mortgage r e c o r d i n g s r o s e s h a r p l y
i n March. The i n c r e a s e was p a r t i c u l a r l y l a r g e i n c o n v e n t i o n a l l y f i n a n c e d
l o a n s and moderate i n F e d e r a l l y u n d e r w r i t t e n .
June s e c u r i t y volume. S a l e s of c o r p o r a t e s e c u r i t i e s t o r a i s e
new c a p i t a l i n June a r e expected t o t o t a l $ 1 . 1 b i l l i o n , somewhat more t h a n
i n both May and June i 9 6 0 . The schedule of p u b l i c o f f e r i n g s i n d i c a t e s about
t h e same volume a s i n May and takedowns of p r i v a t e placements u s u a l l y i n c r e a s e
s e a s o n a l l y i n J u n e . T h i s new f i n a n c i n g i n June would b r i n g t h e second q u a r t e r
t o t a l t o a r e c o r d $ L l b i l l i o n , o v e r t w i c e t h e f i r s t q u a r t e r t o t a l and
t h r e e - f o u r t h s l a r g e r t h a n in t h e c o r r e s p o n d i n g p e r i o d of i 9 6 0 . Even i f
t h e $1.0 b i l l i o n AT&T common s t o c k i s s u e s o l d i n A p r i l were excluded t h i s
volume of new s e c u r i t y f i n a n c i n g i s c l o s e t o t h e p r e v i o u s peak q u a r t e r s of
e a r l y 1957 and 1958.




S t a t e and l o c a l government bond s a l e s i n June are e s t i m a t e d
a t $0.8 b i l l i o n , almost one-half more t h a n i n May b u t o n e - f i f t h s m a l l e r
than a y e a r e a r l i e r . ( I t i s a l s o p o s s i b l e t h a t s e v e r a l l a r g e n e g o t i a t e d
o f f e r i n g s not i n c l u d e d in t h i s e s t i m a t e w i l l be s o l d , including t h e 3175
m i l l i o n Massachusetts Turnpike i s s u e which had been scheduled f o r s a l e
i n A p r i l but was postponed.) This June volume would b r i n g t h e second
q u a r t e r S t a t e and l o c a l f i n a n c i n g t o $ 2 . 1 b i l l i o n , about t h e same a s t h e
p r e c e d i n g q u a r t e r but o n e - t w e l f t h l e s s than a y e a r e a r l i e r . S a l e s of
revenue bonds, p a r t i c u l a r l y l a r g e i s s u e s , have been i n s u b s t a n t i a l l y
s m a l l e r volume t h a n a year ago.
Stock p r i c e s . Common stock p r i c e s , a s measured by Standard
and P o o r ' s composite index, r o s e s l i g h t l y l a s t week, c l o s i n g on June 2
a t 66.73. Trading volume averaged 3 . 9 m i l l i o n s h a r e s p e r day, about t h e
same a s a week e a r l i e r , b u t considerably l e s s t h a n in o t h e r r e c e n t weeks.
C a p i t a l markets i n May. Bond y i e l d s changed l i t t l e on balance
during May. Despite t h e l a r g e volume of new c o r p o r a t e f i n a n c i n g i n May,
p a r t i c u l a r l y p u b l i c bond o f f e r i n g s , y i e l d s on both seasoned and new
high-grade c o r p o r a t e bond i s s u e s tended t o d e c l i n e e a r l y i n t h e month.
Towards t h e end of t h e month, however, they i n c r e a s e d t o about t h e end
of A p r i l l e v e l . E a r l y i n t h e month most new o f f e r i n g s were s u c c e s s f u l l y
placed w i t h i n v e s t o r s a t o r s h o r t l y a f t e r o f f e r i n g . More r e c e n t l y , however,
new i s s u e d i s t r i b u t i o n has been l e s s s u c c e s s f u l and d e s p i t e some s y n d i c a t e
t e r m i n a t i o n s which r e s u l t e d i n s u b s t a n t i a l i n c r e a s e s i n t h e quoted y i e l d
en unsold balances, t h e volumes of new i s s u e s s t i l l i n syndicate r o s e
s u b s t a n t i a l l y . The r e c e n t i n c r e a s e i n y i e l d s probably r e f l e c t s weakness
i n t h e Government and municipal market as w e l l a s p r o s p e c t s f o r a continued
high l e v e l of c o r p o r a t e f i n a n c i n g a t l e a s t through June.
At t h e end of May seasoned A a a - r a t e d c o r p o r a t e bonds y i e l d e d
it.28 p e r cent ( d a i l y b a s i s ) , 7 b a s i s p o i n t s above t h e i r c y c l i c a l low of
W r e n but 33 b a s i s p o i n t s below t h e i r e a r l y i960 peak. Seasoned Baa bond
y i e l d s a t 5 . 0 1 per cent, however, were only one b a s i s p o i n t above t h e i r
low f o r t h e y e a r and 35 b a s i s p o i n t s below t h e e a r l y i960 h i g h . Y i e l d s on
new corporate bond o f f e r i n g s a d j u s t e d t o a Aaa b a s i s averaged about l*-l/2
per cent during M y , 8 b a s i s p o i n t s above t h e A p r i l average. The c y c l i c a l
low f o r t h i s monthly s e r i e s was 1±.26 p e r cent in March and the high 5.29
p e r cent i n September 1959.
Municipal bond y i e l d s were s t a b l e during most of May. The
g r e a t e r p a r t of the moderate volume of new o f f e r i n g s were s u c c e s s f u l l y
d i s t r i b u t e d by underwriters e a r l y in t h e month and d e a l e r s ' a d v e r t i s e d
i n v e n t o r i e s of unsold i s s u e s d e c l i n e d below $1*00 m i l l i o n . More r e c e n t l y ,
d e s p i t e a continued moderate volume of jiew o f f e r i n g s , i n v e n t o r i e s have
r i s e n t o c l o s e t o $475 m i l l i o n a s new i s s u e d i s t r i b u t i o n was l e s s s u c c e s s f u l ; a l s o a number of l a r g e secondary o f f e r i n g s , p r i n c i p a l l y by insurance
companies, c o n t r i b u t e d to the build-up i n d e a l e r s ' i n v e n t o r i e s . The
i n c r e a s e in i n v e n t o r i e s and i n . p r o s p e c t i v e new f i n a n c i n g has r e s u l t e d i n
"borne i n c r e a s e i n y i e l d s t h e l a s t two weeks. Yields on Aaa-rated S t a t e




and l o c a l bonds on June 1 were 3.28 p e r cent, 16 b a s i s p o i n t s above
t h e i r March low but 37 b a s i s p o i n t s below the c y c l i c a l high of September
1959. Baa-rated bonds were a t t h e i r 1961 low of 3.95 per cent and $1
b a s i s p o i n t s below t h e i r e a r l y i960 h i g h .
Common stock p r i c e s , a s measured by Standard and P o o r ' s index,
rose early in May t o a record 67.37 on May 17 but declined moderately
on balance t h e r e a f t e r to end t h e month a t 66.56, about t h e same as a t the
end of A p r i l . At the May peak p r i c e s were 29 per cent above the October
i960 low and 16 per cent above t h e i r l e v e l a t t h e end of 1960. Trading
volume declined moderately from t h e advanced l e v e l s of e a r l i e r i n the
year, p a r t i c u l a r l y in t h e l a t t e r p a r t of t h e month. Average trading volume
f o r t h e month was U.6 million shares per day, t h e lowest monthly average
since January.
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 a t t a c h e d e x h i b i t s .

Capital Markets Section, .
Division of Research and S t a t i s t i c s ,
Board of Governors of t h e Federal Reserve System.




A
EXHIBIT A
LONG-TERM

BOND

YIELDS

HIGH-GRADE

per annum

LOWER-GRADE

V A

-yv




j \

E x h i b i t B - Tables f o r E x h i b i t A

-5-

L o n g - t e r a Bond Y i e l d s
High-grade
U. S. Govt.
long-tem 2/

Date

Corporate
Aaa 1 /

1951* - Low
1957 - High
1958 - Low
1959-60 - High
I960 - Low
1961 - High
Low

2 . 8 5 (4/23)

lj.23 (9/9)
k.3k ( 1 / 6 )
it. 21 ( 3 / 1 7 )

it.1*2
3.75
3.92
3.70

May 5
May 12
May 19
May 26
June 2 e /

k.29
h.27
li.25
h.27
4.29/

3.73
3.70
3.71
3.78
3.80

(per cent)
lj.ll* (9/27)
3.55 (5/2)
It. 6 1 (1/29/60)

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

S t a t e and
local
government
Aaa 3 /

2.1*5 (8/6)

1.90 (9/2)

3 . 7 6 (10/18)
3 . 0 7 (4/25)

3.15

(8/29)

3.65

(9/24/59)

(1/8/60)
(8/5)
(1/20)
(5/12)

2.99 (9/1)
3.30 ( V 1 3 )
3.12 (2/23)

• 30
.60
.22
.59
.19
.57
.1*0

•30
.50
.31*
.92
• 53
.76
.1*6

3.21*
3.21*
3.21*
3.27
3.28

.56
.57
.51*
.1*9
.1*9

.1*9
.1*6
.1*7
.51
.52

2.61* (5A)

Lower-grade

Date

Corporate
Baa 1 /

S t a t e and
l o c a l govt.
Baa | /

Spread between
Aaa and Baa
S t a t e and
Corporate
l o c a l govt.

(per cent)
3 951* - Low
1957 - High
1958 - Low
1959-60 - High
1960 - Low
1961 - High
Low
May 5
May 12
May 19
May 26
June 2 JD/

3.1*1* (12/31)

.52
1.27

2.93 (8/5)
1*. 5 1 (8/29)

5 . 1 0 (11/29)
1*.51 (7/11)
5 . 3 6 (2/12/60)
1*. 98 (9/9)

1*. 1*6 (1/7/60)
3 . 9 8 (12/29)

5.12 (1/27)
5.oo ( V 2 1 ) .

1*. 16 (3/23)
3.95 (6/1)

.71
.81
.73

5.02
5.oi
5.01
5.01 y
5.02 /

3.95
3.95

:K

3.61* (s/i)

1:11
3.95

•

.

:H •
.76
.71*
.73

J)/ Preliminary.
1 / Weekly average of d a l l y f i g u r e s . Average term of bomds included I t 23 »20 year#.
2/ Weekly average of dally f i g u r e s . The series inoludes bonds due or c a l l a b l e I n 10 years or more.
3/ Thursday f i g u r e s . Only general obligation bonds ar# included; average term I s 20 y e a r s .
Note.—Highs and lows are for individual s e r i e s and nay be en d i f f e r e n t dates f o r d i f f e r e n t s e r i e s .
For spreads, high r e f e r s t o widest, and lew t o narrowest,
,




.96
1.21
.93
1.08
,a6

.93
.67
.71
.71

•:8
.67

EXHIBIT C
SHORT-

AND

INTERMEDIATE-

TERM

INTEREST

RATES

GOVERNMENT
Weekly

mis
It wV
Marke eld. _T*\ x J
\ S JmkJ

iy /I
Af ^

VV* 3 - S YIAR ISSUES

AWM/
f. R. DISCOUNT RATE

1 i y j

11

M-

% 3 - MONTH I s
M a r k e t Y i e'!"




1

A

E x h i b i t D - Tables f o r E x h i b i t C
3 i o r t - and I n t e r m e d i a t e - t e n n I n t e r e s t h a t e s
Government
Date

Discount
rate

1954 - Low
1957 - High
1958 - Low
i1959-60 - High
I960 - Low
:1961 - High
Low

1.50
3.50
1.75
4.00
3.00
3.00
3.00

.61
3.64
.58
4.59
2.11
2.56
2.17

-.May 5
'May 12
-.May 19
•May 26
-IJune 2 2 /

3.00
3.00
3.00
3.00

2.22
2.23
2.29
2.39

Yields
6-month
b i l l s 2/
(per cent)

3-month
b i l l s 2/
(6/11)
(10/18)
( 5/29)
(1/8/60)
(10/28)
(3/3)
(1/27)

3.00 2.38 /

3-5 year
issues 2/

.66
.86

1 . 6 6 (4/30)
3.02

4 . 0 4 (10/16)
2.1U (6/6)

(12/26)

5.07 (1/8/60)

5 . 0 0 (12/24/59)
3.IX) (12/30)

2 . 3 8 (12/30)

3.59 (1/20)

1:11 &?,,
2.38
2.40
2.1*3
2.53
2.60

/

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 13-5 y r . issues'

.26
.79

.16

3 . 1 5 (5/12)

.25
.12.

3.23
3.15
3.24
3.43
3.56

.17
.14
.14
.22

.16

.Ok

1.81

.38
1.1*0
.92

1.01
.92
.95
1.04

1.18

Banks and.Other* P r i v a t e Borrowers
Date

Stock Exchange
c a l l loan 3 /

Prime
rate 1/

Finance company
paper 3 /

Federal
fundq 4 /

Spread between
3-mo. b i l l s and
f i n a n c e co. paper

(per cent)
1954 - Low
1957 - High
1958 - Low
-1959-oG - Hi('h:
I960 - Low
1961 - high
Low

3.00
4> 50
3.50
5.50
It. 50
It. 50
4.50

3.00
4.50
3.50
5.oo
4.50
a. 50
4.5o

1 . 2 5 (12/31)
3.88 (11/15)
1-.13 (a/a)
5.13 (1/22/60)
2.88 ( 3 / 1 0 )
2.50(5/26).

2.85 (2/17)
.43 ( 1 / 2 7 )

May
May
May
May

1.50
l.5o
4.50
It. 50
4.50

4.50 •
4.50
4.50
4.50
4.5o

2.50
2.50
2.50
2.50
2.58

.60
2.40
2.70
2.55
2.00

5
12
19
26

June 2 2 /

2 . 8 0 (12/30)

•

n.a.
3.50 (11/8)
.13 (V29)
4 . 0 0 (5/13/60)
. 9 5 (12/2)

0
.63
-.35
1.02
.22
.56
.11
.28
.27
.21
.11
.20

iitoolt Exnhange call loaft rnt« i« going rate on oall loana secured by customers' etook exchange c o l l a t e r a l a t
Nyif York City banks. Prime rata In th»it charged by large banks on ahort-ter* loans t o business borrowers of
the higheut c r e d i t standing,
2/ Market y i e l d ; weekly averages computed from dally closing bid p r i c e s . Series of 3-5 year Issues consists of
eelootnd notes and bonds.
1
3/ Average of dally r a t e s published by finance companies f o r d i r e c t l y p i t i e d paper for vorylkg m a t u r i t i e s i n the
90-179 day rmp%*.
4 / Weekly hvernge of d a i l y e f f e c t i v e r a t e , which I s the r a t e f o r t h s heaviest voluae of purchase and sale t r a n s i t i o n s
as reported to the Federal Reserve Bank of Now York.
'
Mott.--Highs and lows are f o r Individual s e r i e s and may be on d i f f e r e n t dates for d i f f e r e n t dates for d i f f e r e n t s e r i e s .
Hor spreads, high r e f e r s t o widest, and low t o narrowest.




STOCK

MARKET

i of D o l l o n

V

STOCK MARKET CREDIT

J
" ^ C H A N G E IN SERIES

J^n

,

vlrj I I I ! I t ' l l

MORTGAGE

RECORDINGS AND

Monthly




LOANS
Billions ol d o l l a r s

Exhibit F - Tables l o r Exhibit L
Stock Market
Stock price
index 1/

Date

Common
Trading
stock
volume 3/
yields 2/ (millions
(per cent) of shares)

Stock market customer c r e d i t
Customers1
Bank
debit balloans to
ances ii/
"others" 5 /
(In millions oi' dollars)

Total

1957-60 - High
Low
1961 - High
Low

39.48 (12/20/57)
67.27 (5/19)
58.48 (1/6)

3.08
4.72
2.90
3.32

4.9
1.4
5.8
3.6

3,554 (Vss) 2,102 (12/5?) 1,060 (1J/57)
5,190(4/61) 3,936(V6l)l,310(5/26)
4,416(1/61) 3,253(1/61)1,152(3/10)

April
May
May 19
May 26
June 2 2 /

65.83
66.50
67.27
66.43
66.73

2.95
2.92
2.90
2.92
2.91

5.1
4.6
4.9
3.8
3.9 -

5,190
n.a.
n.a.
n.a.
n.a.

6 0 . 5 1 (7/31/59)

4,764

(4/59) 3 , 1 0 1 ( 4 / 6 9 )

1 , 3 7 3 ( 8/59)

1,25V

3,936
n.a.
n.a.
n.a.

s

1,310

n.*,»»Not a v a i l a b l e .
g / PrnJlc-li.ary.
T j Standard end P o o r ' s composite Index of 500 ocamon stock*, waeltly olootiti p r i e s ? , 1941-43*10. Monthly data or#
a v e r a g e s of d a l l y f i g u r e s r a t h e r t h a n of M c J c y ' s o n l y . Hlgh<« and leva are f o r Fridays' data o n l y .
2 / Standard and P o o r ' s ocmpo&tte etcok y i e l d baoed on Hednenday data converted t o weekly c l o s i n g p r i c e s by Federal
Heeerve. Yields shown a r e f o r dateo on which p r i c e Index roaohod I t s high or low.
3 / Averages of d a i l y t r a d i n g voltvue on t h e New York Stock Bcchaiyei
A/ End of month f i g u r e s f o r member f i r m s of the Maw York Stock Exchange which c a r r y margin account S| excludes balances
seoured by U. S . Government o b l i g a t i o n s .
6 / Wednesday f i g u r e o f o r weekly r e p o r t i n g member banks. Excludes loano for purchasing or e a r n i n g 0 . S. Oovmoient
r o o u r l t l e * . P r i o r t o J u l y 1 , 1059, eutit losnn are excluded only a t banks i n Mow York and Chicago, Weekly r e p o r t i n g
banks account f o r about 70 per oont of loans t o o t h e r s . • For fuvW.er d e t a i l oeu Bu) l e t I n .

Nonfarm Mortgage,Recordings and Loans 1 /
Date
1960 - Mar.
Apr.
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec.
1961 - Jan.
Feb.
Mar.

"^oUl

Seasonally
adjusted 2/
2,mi
2,100
2,hh6
2,42?
2,1*93
2,1(88
2Mb
2,1(51
2,1(26
2,1(07
2,373
2,387
n.a.

Unadjusted
(Millions

2,406

2,366
2,500
2,690
2,528
2,784
2,598
2,525
2,378 •
2,338
2,075
1,997

2,444

FHA
dollars)
361
336
322

g

417
425
434
4o4
390
410
341
348

Unadjusted
• VA.
173
153
155
175
160
181
169
162
150
142
132
108
125

1,872
' 1,878
2,023
2,150
2,006

2,186

2,004
1,929
1,824

1,806

1,533
1,548
1,972

n.a.—Hot a v a i l a b l e , i
1 / Total r e c o r d i n g s data a r e estimates based on r e p o r t s from about 460 a r e a s and Include
mortgages of I20,000 or l e s s secured by nonf&rm r e a l e s t a t e , p r i m a r i l y r e s i d e n t i a l p r o p e r t i e s ,
KHA-lasured l e a n s r e p r e s e n t g r o s s amount of Insurance w r i t t e n , and VA-guaranteed loans t h e g r o s s amount
of loans closed,on 1*4 family houses. Conventional data a r e derived a s a r e s i d u a l , although t o t a l
r e c o r d i n g s and VA and FHA loans ore not s t r i c t l y comparable I n concept o r t i m i n g ,
2 / Three-month moving a v e r a g e , seasonally a d j u s t e d by Federal Reserve,
Soiroei Federal Home Loan Bank Board, Federal Housing Administration and Veterans A d m i n i s t r a t i s * ,




-10-

Exhibit G
Long-term Corporate and S t a t e and Local Government
S e c u r i t y O f f e r i n g s and Placements
( I n m i l l i o n s of d o l l a r s )

1961
January
February
March
April
May

580
66?
562
e/2,000
1/1,000
1,100

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

quarter
quarter
quarter
quarter

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

Corporate 1 /
1 I960 r / I

1959

S t a t e and l o c a l 2/
! 1959
1961
1 I960
700
611
568

6I48
859
638

lis
991 .

93k
568
987

535
7h0
703

192
606
683

kU3
521
k70

879
86L
900 '

3W
501
1*91

593

570
715
860

821
738
6I46

708
661
7k0

761
577
l,0kk '

89k
785
887

e/725
e/550
e/800

" 736=
967
726
890
'956
852

v -

New ca p i t a l

1,809
k,100e/

2,1#
2,382
2,128
2,698

2,20k
2,567
1,979
2,6k2

'5,909

а , 527
б,955
9,653

1,771
6,750
9,392

2,109
2,075e/

1,880
2,256
1,780 '
1,310
k,136
5,916
7,257

§
k,63k
6,067
7,588

Excluding f i n a n c e companies 3 /
1st
2nd
3rd
kth

Quarter
quarter
quarter
quarter

EA,509
e/3,953

Year
1/
2/
3/

i;?i6
2,165
2,018 .
2,317

1,999
2fhl2
1,716
2,503

8,216

8,630

Estimated.
jy P r e l i m i n a r y .
^
S e c u r i t i e s and Exchange Commission "estimates of n e t p r o c e e d s .
Investment Bankers A s s o c i a t i o n of America e s t i m a t e s of p r i n c i p a l amounts.
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 consumer f i n a n c e
companies.




Exhibit H
Other Security Offerings
(In millions of dollars)
Gross long-term \T~
Federal agency 3/
Foreign government 2/
1961
1 I960
I
1961
I960
1 1959
January
February
March

81
60
2

April
May
June

34
72
40

58
50
42

July
August
September

25
1
36

85
1
35

199

October
November
December

34
2
4i

33
30
70

160 •
149
181

533

547

20

Year

252

4

1959

182
150
150

2
175
70

. 6
29

199
175

148
354

«

—
• •

98
150

—

86

1,672

707

Net short-term k/
Federal agency 3/
State and l o c a l government 5 /
January
February
March

160
195.

58

l4o
-80

.

-196
-202
-59

-82
176
33

-277
170
320

50
368
286

95
23
-201 .

362
133
79

-81
-176
-117

-23
-33
-250

280
240

362

-633

1,969

-4
181
4

April
May
June

70
-11*6
-157

197
-25
-197

July
August
September

48
415
-175.

57
392
131

October
November
December

-16
50
-189 ' •

Year

18

-144
-162
-174

44

£/ Preliminary#
1/ these A t e d i f f e r from those in fithiblt 0 in that refunding Issues, «s well a s new capital Issues, are included.
Long-term s s e i r l t t e e are defined as those maturing In more than one year.
y Includee ssourltles offered In the United States by foreign governments and their subdivisions and by International organisations. Sourest Seourltles and fitohangs Commission.
3/ Issues not guaranteed hy the 0 . S. Government. Souroei long-term, Seourltles and Exchange Commissions shortterm , Treasury Department and Federal He serve.
y These feta d i f f e r from those i n Bddblt 0 and above In that they represent new offerings less retirements, whether
from the proceeds of refunding Is suss or from other funAs. Ifcta Include only issues with original maturity of ems
year *r l e s s .

5/ Principally
tax and bond anticipation notes, warrants or certlflcatee and Public Housli* Authority notes. Im
some lnstanoes PHi notes Included may hare a somewhat longer term than one year. Snurcei Bond Buyer and
http://fraser.stlouisfed.org/
Federal Reserve.

Federal Reserve Bank of St. Louis

Large Long-term Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large I s s u e s Offered
(In millions of d o l l a r s )
Month

Corporate

I960 - May

State and
local
governmeit

139
14*2
303
581
266
566
165
260
1U7
26?
70
1,572
557

July
August
September
October
November
December
1961 - January
February
March
' April
May

Other 2 /
28
30

23U
561
191
298

75
25
77
150
. 99

U6
186
222
391
360
W5
383
256

67
25

Large Individual Issues Offered May 1 through June 2
Issuer

type 3 J

Amount
Coupon
( m i l l i o n s Maturity r a t e or > Offering
net i n t e r - y i e l d
of
dollars)
e s t cost

Rating
1

CORPORATE
B e l l Tel. of Pa.
Nippon T e l . & Tel. Corp.
Washington Gas Light Co.
U. S. F r e i g h t Co.
Continental Gil Co.
Duke Power Co.
Term. Gas Trans. Corp.
New York St. Elec. & Gas
Aerojet-General Corp.
Federal Paper Board Co.
New England Tel.&Tel. Co.
Allegheny-Ludlum Steel
Ohio Edison
Armco Steel Corp.
Michigan Cons ol. Gas Co.
Consol. Natural Gas Co.
Aldens. Inc.
New Orleans Pub.Serv.Corp.

Deb.
20.0 2001
Ex. bds.
15.0 1976
Ref. mtg. bds.
15.0 1986
Conv.sub.deb.
15. h 1981
Deb.
100.0 1991
16.6
Com. s t k .
Deb.
75.0 1981
1st mtg. bds.
25.0 1991
S.F. deb.
15.0 1981
S.F. deb.
20 iO 1981
Com. s t k .
hS. 0
S.F. deb.
15.0 1986
1 s t mtg. bds. • 30.0 1991
S.F. deb;.
50.0 1986
1 s t mtg. b d s . . 30.0 1986
DebhO.O 1986
S.F; .deb. .
15.0 1981
| ' 1 s t mtg. bds;. 15.0 1991




h-3/h
6
1-1/8

It. 60
6.17

L85

Aaa
—

5

5.00

L.55

A
Ba
Aa

5-1/8
k-5/8

5.13
L5o
5.25
5.08

Baa
Aa
Baa
A

k-3/k
h-3/h
h-l/2

It.78
1.65
14.55
5.00
L.70
5.38
h.9k

A
Aa
Aa
A"

h-l/2

- 5-i/U
5

5-1/8

h-3/U
5-3/8

5

Baa
A

-13-

1-2
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 2 ( C o n t ' d )

Issuer

Type 3/

Coupon
Amount
Offering
r a t e or
(millions
Maturity
n
et i n t e r - yield
of
dollars)
e s t cost

Rating

CORPORATE ( C o n t ' d )
I n d i a n a and Michigan KLec.
Columbia Gas System I n c .

S . F . deb.
Deb.

20.0
30o0

1986
1986

5-1/8
5-1/8

5.00
5.10

A
A

STATE AND LOCAL GOVERNMENT
Lbs Angeles U n i f . Sch.
Dist., Calif.
G.O.
Grand Rapids, Mich.
Rev.-Ut.
Rev.-Ut.
P o r t of New York Auth.
C i n c i n n a t i , Ohio
G.O.
P u e r t o Rico Wtr. Resources
Rev.-Ut.
Auth.
Chicago Bd. of E d n c . , 111.
G.O.
Penn. S t . Pub. Sch. Bldg.
Auth.
Rev.-Rent0
Wise. S t . Pub.Bldg.Corp.
Rev.-Rent.
Owensburg, Ky.
Rev.-Ut.
Houston, Texas
G.O.
F o r t Worth, Texas
G.O.
Rev. —Ut.
Rev.-Ut.
Monroe Co. Wtr. Resources
A u t h . , New York
Rev.-Ut.
Sacramento Mun. U t i l .
Dist., Calif.
Rev.-Ut.
La. S t . Bond & Bldg. Comm. Rev.-S.To

30o0
13.1
35.0
21.5

1962-86 '
1962-82
1962-81
1962-2001

3.U2
3.31
3.a
3.18

1 . 5 0 - 3 . 6 0 Aa
1.60-1+.10 Aa
1.60-3.60, A
lob0-3ok0k YAaa

22.0
I4O.O

1963-98
1963-81

14.08
3.28

2,.15-li.lO
1.85-3.50

2U.6
17oh
25.0
17.2
8.0
1.6
1.0

1961-20001
1965-91
1991
1962-86
1962-86
1962-86
1965-90

3.6U
3.56
3.96
3o3h
3°bh
3.56
1.07

17.0

1965-2001

3.88

2.W-3.90

30.0
lU.0

1966-99
1962-86

3.77
3.71

2.50-3.83
1.75-3.75

.

A
A

l.W-lt.25
2 . 2 5 - 3 . 6 0 Aa
3o9h
1.60-3.57d>
1.70-3.651^
1 . 6 0 - 3 . 7 0 2 /A
2.60-li.20

Aa
Baa

OTHER
M o n t r e a l , Canada

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

Ty

15.0
10.0

1981
1986

5
5

5.00
5.00

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 .
I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and
Development i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e r a l a g e n c i e s ,
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 j R e v . - U t . , revenue o b l i g a t i o n s s e c u r e d only by income 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
q u a s i - u t i l i t i e s ; R e v . - S . T . , revenue bonds s e c u r e d by revenue from s p e c i f i c
t a x e s o n l y ; R e v . - R e n t . , revenue bonds secured s o l e l y by l e a s e payments,
V
3 p e r cent bonds of 1990-2001 not r e o f f e r e d .
%J 1986 m a t u r i t y not r e o f f e r e d .
2/




A
A

—llf—
Forthcoming Large Long-term Public Security Offerings f o r New Capital
(Other than U. S. Treasuiy) 1/
Expected Proceeds from Forthcoming Large Issues
During month following
date shown
Qther 2 /
Corporate S t a t e and
l o c a l govt.

Date of
computation
1960 - May 31
June 30
July 29
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 30
1961 - Jan. 31
Feb. 28
Mar. 31
Apr. 28
May 31

kQ3
237
$96

216
576
4W

260
91
110

55
1,580
512

187

277
180
275
283
212
258
2ii2

Subsequent to
date shown
Other 2 /
Corporate State and
l o c a l govt.

Si
8

30
30

1,006

77

9)

585
335

1,036

1,046
1,125

ft
#7

8

15
75

1,700

687
611

502
380
32h
283
336
391
560
682
360
638
806
579
771

60
30
127
50

15
75

Forthcoming Larg e O f f e r i n g s , a s of June 2
Issuer

lypb

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

CORPORATE
P. L o r i l l a r d Co.
Public Service E l e c t r i c & Gas Co.
Union Tank Car Co.
Arizona Public Service Co.
Virginia E l e c t r i c Power Co.
Baltimore Gas and E l e c t r i c
Michigan-Wisconsin Pipe Line Co.
Southern E l e c t r i c Generating Co.
-*Varian Associates
Brooklyn Union Gas Co.
Consolidated Edison Co.
Jim Walters Corp.
S t a t e L 0 an and Finance Corp.
Thompson Ramo Wooldridge Inc.
Gimbel Bros., Inc.
Clark Equipment Credit Corp.
Hunt Foods and I n d u s t r i e s I n c .
^Automatic Canteen Co. of America


Commerce Oil Refining Corp.'


S.F.
Com.
S.F.
Com.

deb.
stk.
deb.
stk.

1st r e f . mtg. bds.
S.F. deb.
1 s t mtg. p. 1. bds.
1st mtg. bds.
Com. s t k .
1 s t mtg. bds.
1 s t r e f . mtg. bds.
1 s t sub. deb.
S.F. deb.
Deb.
S.F. deb.
Deb.
Conv. sub. deb.
Conv. sub. deb.
Deb., bcs. & com.

1*0.0
1*6.0
1*0.0
15.9
30.0
20.0
30.0
20.0
17.L
20.0

50.0

20.0
25.0
25.0
17.2'
20.0
38.8

June 7
June 7
June 8
June 13
( r i g h t s expire)
June lk
June II4
June 15
June 16
June 19
( r i g h t s expire)
June 20
June 21
June
June
June

July
( r i g h t s expire)
July
( r i g h t s expire)
Indefinite
1*5.0
20.8

Forthcoming Large O f f e r i n g s , as of June 2 (Cont'd)
Issuer

Type

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

CORPORATE (Cont'd)
Realty C o l l a t e r a l Corp.

C o l l , t r . notes

20,0

Indefinite

STATE AND LOCAL GOVERNMENT
Milwaukee, Wisconsin
S t a t e of Ohio
Nassau County, New Yoik
New York, New York
Santa Clara County, C a l i f ,
San Francisco, C a l i f o r n i a
S t a t e of Connecticut ,
I n d i a n a p o l i s , Indiana
*State of Kentucky
S e a t t l e , Washington
Georgia State highway Authority
P h i l a d e l p h i a , Pa,
State of Texas
•atiarris County, Texas
Los Angeles, C a l i f o r n i a
New York S t a t e Housing F i n . Agency
Massachusetts Turnpike Authority
Orleans P a r i d i School D i s t . , La.
Dade County, Florida
J a c k s o n v i l l e Expressway Auth,

GoO.
G.O.
GoO,
G.O,
G.O.
G.O,
G.O.
Rev,-Ut.
G.O.
Rev 0-Ut,
Rev,-SoT.
G.O.
G,0.
G.O.
G.O,
Rev.
Rev,
G.O.
G.O.
Rev. -Ut,

10.0
32,0
19.7
60.k
20,0
11.3
I4I0I4
10.0
25.0
20.0
30.0
25.0
25-0
29-5
18.8
50.0
175-0
10,0
1*6,0
liO.O

^Commonwealth of A u s t r a l i a
Tennessee Valley Authority

Rev, bds.

25oO
5o.o

June 6
June 6
June 8
June 8
June 12
June 13
June 13
June 13
June 15
June 15
June 15
June 22
June 28
July 11
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

June 28
June 29

Included i n t a b l e f o r f i r s t time,
Includes corporate and o t h e r i s s u e s of $L5 m i l l i o n and over5 S t a t e and l o c a l
government i s s u e s of $10 m i l l i o n and over,
2/ Includes foreign 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 a g e n c i e s .
Note. —Deletions f o r reasons other than sale of issues $15.0 m i l l i o n City
Products Corp. c o n v e r t i b l e subordinated debentures--$13,5 m i l l i o n r e f u n d i n g .
1/




Exhibit K
Yields on New and Outstanding
E l e c t r i c Power Bonds. Rated Aa and A 1/
A-rated o f f e r i n g y i e l d s
Aa-rated o f f e r i n g y i e l d s
Amount above
Amount above
Actual
Actual
yields (per cent) seasoned y i e l d s
(per cent) seasoned
( b a s i s points)
(basis points)
5,30 (12/8/59)
2,93 13/31/5W

1952-1959 - High
Low
Feb.
Mar,
Apr.
May
June
July
Aug,
Sept,
Oct»
Nov,
Dec,
Jan. 12
18
25
Feb. 8
16
16
Mar. 23
2k
Apr, 13
21
26
27
May 17
18
19
23
26

5.09
4,82
li.91
*U»88
L83

;

L82
*5.00
L6o
L55
|I k.hk
j
j
I
k.3 7

li.CO
I
j
j
j

87

kB
25
37
32
26
22
23
37
k9
11

5.65 (9/18/59)
3.00 (3/17/5W

123
•15

*5.30:

28

L97
5. lit
5.15
*1.95
L87

9
35
29
11
6

80

2k

4,97

35

ll:60

-2

-2

8

a,65
k.kl
a. 50
%
it, 802/

L57

U3
29
13
20

iic65

27

5
-13
5
-5
17
32

L72

19

1=80

27

U«9U.

*—Single observation 3 not an average c
n"oa0—Not a v a i l a b l e .
1 / Covers only 30-year f i r s t mortgage bonds, as reported in Moody's Bond Survey.
Except where indicated, the actual y i e l d f i g u r e and the amount above seasoned
y i e l d s are overages of o f f e r i n g s during r;is indicated period and of the d i f f e r ences between these new o f f e r i n g y i e l d s and y i e l d s on seasoned issues of
similar quality f o r the same day. Average maturity for the seasoned issues
v a r i e s from 26 to 28 y e a r s ,
2/ Provides f o r a 5-year period during which issue may not be c a l l e d f o r refunding a t a lower coupon r a t e . Monthly averages so marked include one or more
i s s u e s with such a provision. Other issues have no such provision.