Full text of H.16 Capital Market Developments : March 1, 1965

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D E C O N T R O L L E D AFTER

SIX MOUTHS

Not for P u b l i c a t i o n

March

1, 1965.

H. 14
^CAPITAL M A R K E T D E V E L O P M E N T S
IN T H E U N I T E D S T A T E S
( I n c l u d i n g R e v i e w s of C a p i t a l M a r k e t s in F e b r u a r y a Til S a v i n g s F l o w a
LIBRARY
in J a n u a r y )
MAR

4

1965

L o n g - T e r m P u b l i c S e c u r i t y O f f e r i n g s 1/

Corporate
New Capital I Refunding

State & Local Govt.
New Capital I Refunding

Sold:
5 2 w e e k avg.

110

Feb.
Feb.

43 r/
100

19
26

1

185

10

275 r /
265

1 r/

Scheduled:
Mar.

5

160

238

100

1/ F e d e r a l R e s e r v e e s t i m a t e s based on p u b l i s h e d r e p o r t s of issues sold
and s c h e d u l e d for o f f e r i n g ; c o r p o r a t e r i g h t s o f f e r i n g s a r e included
as of the d a t e s u b s c r i p t i o n r i g h t s e x p i r e .

C o r p o r a t e and m u n i c i p a l b o n d m a r k e t s .
T h i s w e e k ' s v o l u m e of n e w
c o r p o r a t e s e c u r i t y o f f e r i n g s is the largest s i n c e e a r l y last J u l y and threefifths g r e a t e r than last w e e k ' s f a i r l y s u b s t a n t i a l total.
The $84 million
W . R . G r a c e C o m p a n y o f f e r i n g of c o n v e r t i b l e d e b e n t u r e s for w h i c h r i g h t s
e x p i r e and $ 4 0 m i l l i o n in b o n d s of the F l o r i d a Power and L i g h t C o m p a n y
w i l l m a k e up m o s t of the w e e k ' s supply.
T h e v o l u m e of m u n i c i p a l b o n d s
e x p e c t e d to r e a c h the m a r k e t this w e e k w i l l b e the largest s i n c e m i d D e c e m b e r and i n c l u d e s an $ 1 1 6 m i l l i o n p a c k a g e of Public H o u s i n g A u t h o r i t y
bonds.




H. 14

-2-

Yields in Securities Markets
Level latest week
(per cent)

Change from
preceding week

High-Grade
Notes and Bonds
Corporate
New
Seasoned

4.41
4.41

U.S. Govt.
Long-term
3-5 year

4.16
4.10

+ 1

State and local govt.

3.03

+ 4

Money Market
Federal Funds
Treasury bills
3-month
6-month
Finance Company Paper

%

'

3.88

-12

3.99
4% 04
4.25

+ 5
+ 2
+12

FNMA secondary market operations.
Sales by the Federal National
Mortgage Association in the secondary market totaled only $2.0 million
in January.
This was one of the lowest levels in recent months and compared
with $8.8 million a year earlier.
Purchases by FNMA., which had improved further in December of last
year, change^ little in January, at a level of $29.8 million. This compared
with $11.1 million a year earlier and a recent high of about $112 million
in November of 1961.
Offerings also remained near their relatively advanced
December level. The January totals of $36.6 million compared with
$15.6 million at the start of 1964.
Capital markets in February.
Security financing for new capital
by corporations amounted to about $800 million in February, one-sixth more
than a year earlier. As in other recent months, most of this estimated
volume consisted of takedowns of private placements of bonds; public
offerings of corporate bonds probably totaled $190 million -- compared
with $279 million in February 1964 -- while offerings of stock are
estimated at $140 million for the month.
Underwriters bid somewhat less aggressively than they had in
January for the slim supply of corporate bonds available for competitive
bidding, but investors continued to maintain a cautious investment attitude.
As a result, although the n e w corporate bond yield series rose 8 basis points
on balance during the month to 4.41 per cent at month-end, retail reception
of the three issues acquired by underwriters at competitive bidding was slow.
Price restrictions were terminated on two issues offered during the month and
one carried over from January, with the initial price declines on these




H. 14

issues raising yields 4 - 7 basis points above the original offering yields.
At the end of February, dealers inventories of unsold securities still bound
by price restrictions amounted to around $30 million.
State and local governments sold around $800 million in new capital
bonds in February, slightly more than a year earlier. Although the
$100 million State of California bond issue was almost an immediate sell-out,
most of the remaining supply of new issues were being distributed very
slowly.
Thus, dealers' advertised inventories of unsold securities jumped
over $100 million during the month to a record $800 million at the end of
th$ month, $30 million higher than the previous record set in mid-May 1963.
With these heavy inventories and a continuing large supply of new issues in
prospect, yields on seasoned, Aaa-rated bonds which at the start of the month
had fallen to 2.94 per cent -- within 6 basis points of their six-year
low of November 1962 -- rose 9 basis points to 3.03 per cent at the end of
February.
Common stock prices, as measured by Standard and Poor's composite
index of 500 stocks, changed little on balance during February in very
active trading. From their all-time high of 87.58 on February 1, prices
eased about 2-1/3 per cent through the middle of the month, but recovered
most of these losses late in the month to close at 87.43 orr February 26.
Trading volume averaged 5.9 million shares a day, compared with 4.6 million
shares during February 1964.
Estimated security financing in March.
Corporate security
offerings for new capital are expected to total $1,050 million in March,
two-fifths larger than in March 1964.
Large public issues currently
scheduled total $407 million.
The new supply of municipal bonds for new capital will probably
have a par value of $850 million this month, somewhat more than a year
earlier.
Savings flows in January. During the month of January growth in
income-yielding claims on depositary-type institutions amounted to
$3.0 billion, a record for that month and one-third greater than in the
corresponding month of 1964. All of this year-over-year expansion in
savings flows was attributable to a sharp rise in time and savings deposits
at commercial banks; increases in savings'capital at savings and loan
associations and in regular deposits at mutual savings banks were smaller
than a year earlier, with the former off substantially. The greater
inflow to commercial banks has followed liberalization of payments on time
and savings deposits which many banks put into effect at the start of the
year after the November 1964 action of Federal supervisory authorities.
The inflow of savings capital at savings and loan associations was
the smallest for any January since 1951 ancL,after rough allowance for
seasonal factors, was probably the smallest monthly inflow in the past
decade. The rate differential between dividend rates at savings and loan
associations and interest rates paid on alternative forms of savings has
narrowed further, particularly on the West Coast where dividend rates-




-4-

H. 14

at 4.5 to 5.0 per cent- have changed little since 1963 while a large
number of commercial banks have raised their rates to the maximum each time
they have been permitted to do so. Consequently, inflows to associations
in that area this January fell $205 million behind a year earlier,
accounting for 70 per cent of the year-over-year contraction in growth of
savings capital.
Net Increase in Savings Capital at
Savings and Loan Associations
(In millions of dollars)
Unadjusted data
Change from
Current year
previous year
1964 - Oct.
Nov.
Dec.
1965 - Jan.

751
859
1,679
177

Percentage
change

-44
+55
-55
-287

-6
+7
-3
-6

Seasonally adjusted data
Current year
1964 - Oct.
Nov.
Dec.
1965 - Jan.

854
968
690
277

Previous year
888
898
809
575

Although smaller than in January 1964, the net gain in regular
deposits at mutual savings banks was down only slightly, and that in
comparison with the high January 1964 inflow which followed increases at that
time in rates of interest paid by New York savings banks.
On a seasonally
adjusted basis, the January inflow was larger than in any month since last
summer when several "Large New York City rautuals were conducting intensive
advertising compaigns to attract funds.




H. 14

5

Net Change In Regular Deposits at Mutual
Savings Banks
(In millions of dollars)
Unadjusted Data
Current year
1964 - Oct.
Nov.
Dec.
1965 - Jan.

233
317
629
358

Change from
previous year

Percentage
change

+38
+78
+65
-24

+19
+33
+12
- 6

Seasonally adjusted data
Current year
1964 - Oct.
Nov.
Dec.
1965 - Jan.

376
271
387
406

Previous year
326
196 ^
344
426

The January increase in time and savings deposits at commercial
banks amounted to $2.5 billion, a post-war record and over twice that of a
year earlier.
It also exceeded by one-fourth the gain in January 1962 following
the previous across-the-board liberalization in maximum permissible interest
rates by the Federal regulatory authorities.




LONO-TERM i O N P YIELDS, HIGH-Q»AP«

I I I I I I I I 1,1 I
'!.4L
Exhibit A -- Part II

Corpora te
Aaa 1/

U. S. Govt,
long-term 2/

State and
local
government
Aaa 3/

Spread between
U. 3. Govt, and
State and
Corporate
Aaa
local Aaa

(per cent)
1959-60
1961-62
1962-63
1964

"

High
High
Low
High
Low
1965 - High
Low

4 . 1 9 (3/29/63)

3.85 (12/28/62)

4.44 (1/8)
4.41(2/26)

till f i O ^ )
4.16(2/26)
4.13(1/29)

2.88(13/8/62)
3.16 3/%)
2.99(12/31)
3.03(2/25)
2.94(2/11)

.59
.57
.21
.33
.19
.29
.25

Jan.
Feb.
Feb.
Feb.
Feb.

4.42
4.41
4.41
4.41 y
4.41 /

4.13
4.15
4.16
4.16
4.16-

2.96
2.94
2.94
2.99
3.03

.29
.26
.25
.25
.25

29
5
12
19
26 £/

ki3y6D

.92
1.04

.80

1.14

1.01
1.22
1.13
1.17
1.21
1.22
1.17
1.13

p / P reliminary.
y Weekly average of daily figures. Average term of bonds included is 22-24 years.
2 / Weekly average of daily figures. The series includes bonds due or callable in 10 years or more,
y Thursday figures. Only general obligation bonds are included| average term is 20 years.
Rote.—Aligns and lows are f o r individual series and may be on differsnt dates for different
series. For spreads, high refers to widest, and lew to narrowest.




EXHIBIT », fail I I

LONG-TERM B O N D YIELDS, L O W E R - G R A D E

-

' " V z v ^ V '\
\

y

V

*r

1 II 1 1 1 1 1 1 i1 i1 i i i i i i i1 i1 i1 1 II 1 1 1 1 1 l 1 1 1 1 1 1 1 1 1 U L .

1140

Mil

Ifil
Exhibit B —

Corporate
Baa 1/

Da te

1**1

MM

Part II

State and
local govt.
Baa If

Spread between
Aaa and Baa
1 State and
Corporate | l o c a l c o v t .

(per cent)
1959-60 - High
Year end •- 1961
1962
1963
1964
1965-• High
Low
Jan.
Feb.
Feb.
Feb.
Feb.

Notes

29
5
12
19
26 £/

5.36 (2/U/60)
5.10
4.93
4.85
4.80
4.80(1/8)
4.78(2/26)

4.46 (1/7/60)
4.04
3.57
3.60
3.51
3.49(1/7)
3.40 (2/11)

4.80
4.79
4.79
4.78
4.78 y

3.41
3.40
3.40
3.44
3.44

F o r footnotes see Exhibit X*




.84
.66
.70
k -48
.37
.38
.36

1.08
.73
.63
.49
.52
.52
.41

.38
.38
.38
.37
.37

.45
.46
.46
.45
.41

Exhibit C —

Da te

Discount
ra te
3-month
bills 2/
1/

Part II

Yields
6-month
bills 2/
(per cent)

3-5 year
issues 2/

5.00(12/2^9)
3.81
3.41
4.07
4.07
4.10(2/26)
4.04(1/22)

1959-60 - High
Year end - 1961
1962
1963
1964
1965 - High

4.00
3.00
3.00
3.50
4.00
4.00
4.00

4.59 ( W 6 0 )
2.66
2.89
3.52
3.83
3.99(2/26)
3.80(1/8)

5.07(3/8/60)
2.90
2.93
3.64
3.93
4.04(2/26)
3.92(1/8)

29
Feb. 5
Feb. 12
Feb. 19
vyFeb. 26 £/

4.00
4.00
4.00
4.00
4.00

3.85
3.89
3.90
3.94
3.99 /

3.94
3.96
3.99
4.02
4.04

4.05
• 4.06
4.08
4.09
4.10

Spread between yields on 3month bills and vields on
6-mo. bills 13-5 vr. issues

.79
.24
.04
.13
.10
.13
.05

1.81
1.15
.52
.55
.24
.29
.11

.09.
.07
.09
.08
.05

.20
.17
. 18
.15
.11

Weekly rate shown is that in effect at end of period at the Federal Reserve Bank of Hew Yoifc,
Market yields weekly averages computed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
Notee—Sighs 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.




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 ,
B A N K S A N D OTHER PRIVATE B O R R O W E R S

E x h i b i t D -- Part II

Date

Prime rate

1/

Finance
company
paper
2/

Federal funds 3/

Spread b e t w e e n
3 - m o . bills and
finance co. paper

(per c e n t )
1 9 5 9 - 6 0 - High
Year end - 1961
1962
1963
1964
1965 - High

Jan. 29
Feb.
5
Feb. 12
Feb. 19
Feb. 26 y

5.00
4.50
4.50
' 4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50

y

5.13 (1/23/60)
3.00
3.19
3.88
4.06
4.25(2/26)
4.00(2/12)

4 . 0 0 (5/13/60)
2.88
3.00
3.50
4.00
4.00(2/19)
3.88(2/26)

4.03
4.00
4.00
4.13
4.25

4.00
4.00
3.88
4.00
3.88

1.02
.34
.30
.36
.23
.29
.10
.18
.11
. 10
. 19
.26

Weekly r a t e shown is t h a t in effect at end of period. Prim* rate is that charged by large banks
on s h o r t - t e r m loans t o business borrowers of tbs higiest oredit standing,
2 / A v e r a g e of daily rates published by finance companies for directly placed paper for varying
maturities in the 90-179 day range.
3 / Weekly a v e r a g e of daily effeotive rate, which is tk* rate for the heaviest volume of purchase and
s a l e t r a n s a c t i o n s as reported to the Federal Reserve
0 f Hew York*
Notei—fligha and lows are for individual series and may be on different dates for different series.
F o r s p r e a d s , h i g h refers t o widest, and low to narrowest.




E X H I B I T I, Fori I

STOCK MARKET

H W H

|
\

y

sioci siiKi
^ i i m i ii~$iiii$

-« " " •

Mllll.nl .1 ik«

!

% V \ A

Exhibit E —

Common
Da te

Stock price
index \!

yields 2/
(per cent)

a
ril

Part II

Trading
volume 2 /
(millions
of shares)

Stock mar Icet customer credit
Customers 1
Bank
debit balloans to
ances 4/
"others" 5/

Total

(In millions of dollars)
1961-62 - High

52.68(Q/2%/62)

2.80
3.96

10.1
2.4

74.44
84.75

3.13
3.02

4.7
4.7

Jan.
Feb.

87.56(1/29)
85.37(1/8)
86.12
86.75

2.95
3.02
2.99
2.99

6.4
4.7
5.5
5.9

Feb. 12
Feb. 19
Feb. 26 g /

86.17
86.21
87.43

3.02
3.02
2.96

5.9
5.6
6.4

Year end
1963
1964
1965 - High

72.04(l?/8/6l)

5,602(13/61) 4,259 (12/61)
4,424(3/61) 3,253(3/61)

1.161(3/0/61)

7,242
7J153

5,515
5.099

1,727
1,974

6,940

4,986

6,940

4,986

n.a.

n.a.

1,962(1/20)
1,947(2/3)
1,954
1,876
1,958
1,876

n«*.—Not a v a i l a b l e . V Preliminary.
V standard and Poor's ooaposite Index of 500 eensnon stook#. weekly closing pricee, 1941~43«10.
Monthly data are average# of daily figure# rather than of rxidey*s only. High# and lows are for
Friday's data only.
2/ Standard and Poor's composite stock yield based oo Wednesday data oonrerted to weekly olosing
prices by federal Reserve. Yields shewn are for date# on which prlee index reached its high
or low.
3/ Averages of daily trading volume on the New Ye*tc Stock Exchange, Yeai^end figures are averages of
daily figures for the yeart
y tnd of month figures far nanber firms of the New Y c * Stock Exchange which carry margin accounts!
excludes balances secured by U. 3. Government obligations.
5/ Wednesday figures for weekly reporting eember banks, Kxolu&ts loan# for purchasing or carrying
U. S. Government securities* Weekly reporting banks account for about 70 per cent of loan# to
others. For further detail see Bulletin.




E X H i e i l f. fori I
FEDERAL N A T I O N A L
SfcCONDARY
Monthly

MORTGAGK

MARKET

ASSOCIATION^

OPERATIONS
'°H«U

rrrrrrni n m

vy V

Exhibit

F

E s t i m a t e t1 o f f e r i n g s
Date

Total

Immediate
purchase

- Part

.

commitment
of

Sales

by

by

FNMA

FNMA

dollars)

- Jan.

15.6

15.5

Feb.

15.1

15.0

13.0

2.3

16.8

3.8

.1

11.1

8.8

Mar.

20.1

19.9

Apr.

28.5

28.5

26.4

12.7

May

28.9

28.9

25.8

10.9

9.3

9.2

3.8

9.5

July
Aug.

65

Purchases

Standby

(In m i l l i o n s
)64

II

i
to
FNMA

8.4

8.0

5.5

12.6

20.5

20.5

15.2

4.4

Sept.

15.1

14.9

7.2

Oct.

34.9

34.8

24.0

Nov.

26.0

25.9

16.0

1.6
5.7

Dec.

41.3

41.1

32.5

5.9

- Jan.

36.6

36.6

29.8

2.0

• — L e s s than $50,000.
1/ Data represent unpaid principal balances of the mortgages involved» exoluslvs of
premiums, discounts, or other ohargee. Offerings are amounts of applications received
during t h e period from sellers proposing that iNMA execute purchasing contracts. An
immediate purchase contract covers existing mortgages which t h e seller must deliver t o
FNMA within 4 5 days, A standby o o m i t m e n t contract relates to proposed mortgagee on
housing net yet under constriction which the seller must usually deliver w i t h i n one
year. Purchases include those u n d e r both immediate purchases and standby ooomitment
contracts. Data exclude FNMA activity u n d e r Special Assistance and Management and
Liquidating Programs.




Mlv«led I# Aaa >
IIW ISSHII

1 . 1 . L X . U LA . 1 . 1 . 1

.J L. J—I—I—1 .1. t . - l - l

lltl

Exhibit 0 - Part II
Yields on Hew Corporate load Xaauea Adjusted to an Asa basis

Monthly averaaeaa
1964 - Mar.
Apr.
Hay
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1965 - Jan,

Number An r t o f laeues Average
01
yield
Included (mil.
IummJ JoLMllOL-.
166.0
130.0
278.0
230.0
75.0
239.0
70.0

4.43
4.48
4.46
4.43.
4.3,7
4.39
4.49
4.46

140.0
94.0

4.47
4.42

60.0

1964

Dec.

4

11

18
25
1
8
15
22
29
Feb. 5
12
19
26

Aa't o f Issues Average
Included (mil.
yield
fft <iii«i) ( n r m i l
140.0
4.47

Jan.

40.0

4.53*

14.0

4.39
4.33

35.0

4.41

40.0
16.0
60.0

High
4.53(5/8)
JtitiL.
lot*i i i i i n i i i of atresiaf yields en a U asm lasist! «f ye iliely offered corporate bseds rated dee. Aa eas
• by Moody's B m a t e r s S s r v l s t ( s s e e p t s e r i a l and convertible Is teat, offerings e# aeHuel l » i plpellas
sad f e r a l # eonpaalee, ead kosii guaranteed lar the fade**! Oevereeeat) mslgbted by A s s sf c f f s i i a g *
Before averadial, now e f f e r l a f s are adJastod to a mmeoelte Aaa belli ly dedectlag from tbe acteal
reoffeiiag yield t b eaoees of the weekly m n f e yield f o r seasoned b i d s sf fbe appropriate ladaetiyquality group over the cesmeslts average f e r seaaoasd daswetsd toads ( E iody*s}J*
_.w Averages considered*
uaropreeeatatlve because of special otaarestart s t i e s of S e efferiage laelndsd are demoted by aa asterisk^




Exhibit U

H.14

Long-term Ccfrporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

New Can ital
Corporate
1964

j
State and Local 2/
1^64
1963

1963

1965

930
685
754

613
594
1,144

fi/800
e/8 00

April
May
June

2,178
1,069
1,378

930
904
1,013

July
August
September

780
661
1,109

October
November
December

1965
January
February
March

1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

e/800
e/ 800
e/1,050

e/3,877

1st half
Three quarters
Year

e/850

B/
£/
£/

947
776
8 1 0

732
746
976

£/ 1.242
£/
667
£/
903

869
866
930

676
637
795

£/
£/
£/

906
780
892

680
708
449

949
656
1,419

1,013
819
1,415

ej
e/
e/

850
550
950

1,051
729
416

2,369
4,625
2,550
3,013

2,351
2,847
2,109
3,246

e/2,450 £ /
£/
£/
e/

2,533
2,811
2,578
2,350

2,454
2,665
1,837
2,197

6,994
9,544
12,557

5,198
7,307
10,553

£ / 5,3 4 4
£/ 7,922
e/10,2 72

5,118
6,955
9,151

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

quarter
quarter
quarter
quarter

e/3,677

Yea'r
e/
£/
1/
2/
3/

1,996
4,170
2,411
e/ 2,763

2,284
2,529
1,768
2,854

e/11,340

9,434

Estimated by Federal Rpserve.
Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance companies.




^
1

H. 14
Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)

1962 - II
III
IV

3,317
2,167
2,875

Gross proceeds for new
capital and re funding 1/
Common Memo:
B o m is
and
Foreign
Publicly Privately pfd.
issues
Offered Offered
stock included
1,386
1,289
642
251
852
1,006
308
55
1,088
1,510
277
135

1963 - I
II '
III
IV

2,700
3,634
2,436
3,466

1,108
1,389
898
1,319

1,306
1,820
1,251
1,780

287
424
287
367

1964 - I
II
III r/
IV

2,499
4,851
2,8 02
3,311

978
1,321
792
531

1,221
1,640
1,516
2,372

810
756
871
1,116
891
1,459

279
336
283
511
183
626

985
710
805
2,234
1,155
1,461
869
728
1,204
1,032
702
1,577

338
279
361
383
470
468
234
183
376
181
30
320

Quarter
or
Total
Month

:

Net proceeds for
new cap Ltal 1/ 2/
Mfg.

Public
Utility

Communications

Other
issuers

996
566
747

984
376
552

228
274
317

848
685
945

128
434
109
47

947
591
806
968

326
794
285
530

236
221
150
118

842
1,241
868
1,629

300
1,890
4%4
408

29
105
85
223

418
723
547
1 ,045

438
856
642
509

273
1,663
59
128

1,240
1,383
1,303
1,332

431
318
501
481
549
751

100
100
87
125
159
83

46
21
42
10
10
27

297
272
237
240
214
515

107
100
78
201
131
198

86
25
39
41
13
64

187
187
441
531
461
*37

526
342
353
480
537
623
411
433
672
638
620
1,114

121
88
91
1,372
148
370
225
112
156
213
52
143

5
16
8
34
36
35
21
21
44
82
27
114

109
155
174
151
441
264
207
138
296
297
40
172

157
83
34
1,377
27
258
23
16
19
81
17
30

515
324
400
463
395
525
401
342
560
321
401
610

„1965 - I

1963 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug,
Sept.r/
Oct.
Nov,
Dec.

149
123
146 .
186
206
332
149
164
234
249
188
607

100
n.a.
250
10
1965 - Jan, e/
165
550
110
815
430
Feb.
Mar.
j>/ 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 & other transportation,
real estate & finance, & commercial & other.
Source: Securities & Exchange Commission.




H. 14
Exhibit J
Other Security Offerings
(In millions of dollars)

1965
January
February
March
April
May
June
July
August
September
October
November
December

Gross long-term 1/
Foreign government 2/
Federal agencv 3/
1964
1963
1965
1964
1963

e/235

4
82
69
30
75
26
20
13
7
180
72
58

P

232
133
76
57
114
11
63
83

e/~
148

---

186
--

275
260
160

459

--

509

--

--

174
200

t
--

--

2
"

636

Year

771

1,204

1,167

New shoi:t-term 4/
State and local government 5/
Federal agencv 3/
January
February
March
April
May
June
July
August
September
October
November
December

n.a.

Year

103
236
-407
442
81
-80
-9
127
176
7
-15
£/ -208

75
272
-367
589
-30
-10
62
208
-173
259
146
-339

p/ 453

692

e/249

-78
-336
23
97
183
239
-333
167
1
525
113
-3

598

-106
-189
-482
292
195
319
414
327
258
123
-102
551

1,600

:i
I,

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. ^/Includes securities offered in the U.S. by foreign governments and their political subf
[visions and international organizations. Source: Securities & Exchange Commission. 3/
Issues not guaranteed by the U.S. Government. Source: Long-term, Securities & Exchange
P
Commission; short-term, Treasury Dept. & Federal Reserve. 4/These data differ from those ij|
Exhibit H and above in that they represent new offerings less retirements, whether from thf
proceeds or refunding issues or from other funds. Data include only issues with original Hj.
maturing of one year or less. 5/Principally tax and bond anticipation notes, warrants or
•<;.
certificates
and Public Housing Authority notes.
In some instances PHA notes included may

have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal Reserve.



17
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds o f Large Issues Offered
(In millions of dollars)

!

Total

1964 - Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1965 - Jan.
Feb.

Corporaate
Bonds
(other than
Convertible
convertibles)
bonds

263
335
1,557
452
650
291
142
376
187

200
296
235
415
390
178
125
269
108

230
130
217

200
115
131

Stocks

State
and
local
governments

28
38
1,271
37
210
113

35
--

51
--

- 17
25

358
282
698
274
284
544
459
558
419
226
541
419
446

81
79

---

30

--

15
86

Other

2/

--

50
20
15
275
260
104
15
502
15
--

235
130

Large Individual Issues Offered During February

Issuer

Type 2 /

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
net interest cost

Offering
vield

Rating

Corporate
Texas Elec. Serv. Co.
*Occidental Pet. Corp.
Dan River Mills
Southern Cal. Ed. Co.
*New England Elec. System
Potomas Elec. Pwr. Co.
Gen. T e L Co. of Calif.
*Armour & Co.
State & Local Government
Los Angeles Fid. Cont. Dist
Calif.
Commonwealth of Puerto Rim
Palm Beach Co., Florida
Onondaga Co., N.Y. ,
Phila. Sch. Dist., Pa.
State of California

16.0
1st mtg. bds.
22.2
Com. stk.
20.0
Deb.
1st & ref. mtg. bds. 60.0
18.3
Com. stk.
20.0
Pfd. stk.
1st mtg. bds.
35.0
25.5
Com. stk.

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




15.0
54.0
26.8
10.0
16.0
100.0

1995

4-1/2

4.40

Aa

1990
1990

4-5/8
4-1/2

4.65
4.44

Aa

1995

4-1/2

4.50

1966-67
1966-90
1966-84
1966-95
1966-90
1975-2015

2.33
3.36
3.06

2.15 -2. 25
2.25 -3. 40
2.20 -3. 10
2,20 -3.
2.20 -3.
2.90 -3.

3.09
3.50

Aa
A
A
Aa
A
Aa

Large Individual Issues Offered During February (Cont'd)

Issuer

Amount
Coupon
Offering
Type 3/ (millions Maturity rate or
net interof
yield
dollars)
est cost

Rating

State & Local Government (Cont'd)
Oyster Bay, N.Y.
St. Louis, Mo.
Wise. State Agencies Bldg. Corp.
San Mateo Jr. College Dist, Cal.
State of Maryland
Los Angeles Dept. of Wtr. & Pwr.
Calif.
Lake Charles, La.
Atlanta, Georgia
Penna. Gen. State Auth.

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

13.0
10.4
35.3
11.1
31.9

1965-94
1966-85
1966-99
1967-90
1968-80

3.22
3.00
3.21
3.02
2.92

2.15-3.40
2.15-3.02
2.20-3.20 ,
2.30-3.10^
2.40-2.90

A
Aa
Aa "
Aa ^

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

35.8
12.7
24.2
50.0

1966-95
1966-80
1967-89
1968-92

3.25
3.32
3.19
n.a.

2.20-3.40
2.40-3.30
2.40-3.20
2.55-3.36U

Aa
Baa
Aa

Other
Federal Land Banks

Bonds

129.5

1969

4-1/4

4.25

--

*--Rights offering,
n.a.--Not available.
1/ Includes corporate and other security offerings of $15 million and over; State & 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 & local govt, securities, G.O. denotes general obligations;
Rev.-Ut., revenue obligation secured only by income from public utilities; Rev.-Q.Ut.j 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 least payments.
*
4/ 1/20 per cent bonds maturing 1990 reoffered to yield 4.10 per cent.
5/ Bonds maturing 2013-15 not publicly reoffered.
(V 1/20 per cent bonds maturing 1989-90 reoffered to yield 4.00 per cent.
]_/ 1/10 per cent bonds maturing 1992 reoffered to yield 4.00 per cent.




H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for Nev Capital
(Other than U.S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues
(In millions of dollara)

Subsequent to

During month following
State and
local govt
45f
669
345
341
539
120
511
500
254.
360
306
242
316

Corporate
1965 - Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1965 - Jan.
Feb.

28
31
30
28
30
31
31
30
30
30
31
29
26

m
1,587
651
600
292
92
402
186
--

90
105
169
407

Other U

Corporate
1,649
1,837
844
668
307
167
442
186

25
15

15

25
215

130
105
253
504

State and
local govt.
646
953
575
598
716
588
680
626
549
563
435
382
599

Other 2/
2:
li
---

15
--

25
215
---

Forthcoming Large Offerings as of February 26

Issuer

Cornerste
W.R. Grace Co.
Mississippi Pwr. & Lt. Co.
Florida Pwr. & Lt. Co.
United Air Lines Inc.
General Acceptance Corp.
Oklahoma Gas & Elec. Co.
Phila. Elec. Pwr. Co.
*Southwestern P. S. Co.
Carolina, Clinchfield, & Ohio
Railroad Co.
Northern Nat. Gas Co.
*Spiegel, Inc.
*Brooklyn Union Gas Co.
Celanese Corp.
*Spiegel, Inc.




Type

Amount
(millions
of
dollars)

Approximate date of
offering

Conv. sub. deb.
1st mtg. bds.
1st mtg. bds.
Conv. deb.
Deb.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.

84.0
20.0
40.0
66.0
35.0
25.0
25.0
16.0

Mar.
1 (rts. ex.;
Mar. 3
Mar.
4
Mar. 8 (rts. ex.)
Mar. 9
Mar. 10
Mar. 11
Mar. 11

Gen. mtg. bds.
Deb.
Deb.
1st mtg; bds.
Con. sub. deb.
Sub. deb.

16.0
20.0
40.0
20.0
78.9
17.7

Mar.
Mar.
Mar.
Mar.
Apr.
Apr.

17
18
23
25
1 (res. e>.)
9 (rts. ~y„)

to
L-2
Forthcoming Large Offerings as of February 26

Issuer

Type

Amount
(millions
of
dollars)

Approximate date of offering
u

State and Local Government

Monroe, La.
Public Housing Auth.
"Prince Georges Co., Md.
Fairfax Co., Va.
Milwaukee, Wise.
*State of New York
La. State Bond & Bldg. Comm.
Nassau Co., N.Y.
^Charlotte, N.C.
Forth Worth, Texas
*Tacoma Dept. of Pub. Util, Wash.
*State of Ohio
*Clark Sch. Dist., Nev.
111. State Normal Univ.
Pittsburgh, Pa.
Dade County, Fla.
Florida Dev. Comm.
Los Angeles Harbor Dist., Calif.
Va. State Highway Auth.

G.O.
--

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

20.4
115.7
18.3
10.0
12.0
43.6
15.0
19.6
10.8
10.4
50.0
40.0
17.0
80.0
35.0
46.0
33.8
11.0
31.0

Mar.
1
Mar.
3
Mar.
3
Mar.
3
Mar.
9
Mar.
9
Mar. 10
Mar. 10
Mar. 16
Mar. 23
Mar. 24
Apr.
1
Apr.
1
Apr. 12
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

i

v

Other
^Federal Home Loan Banks

Bonds

185.0

Mar. 3

j

*--Included in table for first time.
\J Includes corporate and otharissues of $15 million and over; State and local Government %
issues of $10 million and over.
,M
2/ Includes foreign government and International Bank for Reconstruction and Development v.
issues and non-guaranteed issues for Federal agencies.
Nota.--Deletions for reasons other than sale of issue: None.




H. 14
Exhibit M
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.

12/15

25.0

12/11

20.1

1/14

200.0

1/19

15.0

1/25

20.0

Public Offerings

Sold Dec. 1 through February

^European Investment Bank--5-l/2% bonds maturing in 1984,
reoffered to yield 4.85% to investors in the U. S. and
5.54% to other investors.
Home Oil Co. Ltd.--5-1/8% convertible subordinate
debenture maturing 1984, offered to stockholders of
record November 19 to yield 5.13%.
International Bank for Reconstruction and Development-4-1/2% bonds, maturing 1990, reoffered to yield 4.48%.
'

Republic of the Philippines--6-1/2% bonds, maturing
1980, reoffered to yield 6.66%.
Republic of Portugal--5-3/4 bonds, maturing 1985,
reoffered to yield 5.97%.

B.

Prospective Offerings
None.

*

Difference in reoffering yields on bonds sold to U.S. citizens and those sold to foreign
citizens reflects an upward adjustment of 8.83 per cent in the price paid by U.S. citizens.
This premium was collected by the underwriters in accordance with the provisions of the new
Interest Equalization Tax.
This tax is collected--under a scale of rotes which rises with
m a t u r i t y — w h e n U. S. lenders by new security offerings from borrowers in certain designated
"developed" countries.




<0*
M-2
Part II:

Da te
reported';

Note:

^

Private Placement--Reported December I through February

Amount
(millions
of
dollars)

Issuer and Description of Issue

12/21-

25.0

Prince George Pulp & Paper Ltd.--1st mtg. sinking fund
bonds, maturing 1985--no information available on
takedown.

1/11

25.0'

Alberta Municipal Financing Corp.--4-5/87, debentures,
maturing 1989, priced to yield 4.65%--no information
available on takedown.

1/13

8.0

Beneficial ^Finance Co. of C a n a d a — s e n i o r notes maturing
1984--no information available on takedown.

1/18

30.0

Province of Nova Scotia--4-l/2% sinking fund debentures*
maturing 1989--no information available on takedown.

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 a fid
subsequent
for
FRASERto the data a placement is reported. *--Included in table for first time. ;

Digitized


'