Full text of H.16 Capital Market Developments : March 18, 1968

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

DECONTROLLED AFTER SIX MONTHS
Not

for Publication
H. 14

. ^

March 18, 1968.

20

PITAL MARKETS DEVELOPMENTS
IFTHE™UNITED STATES

CoTfiorate and/municipal bond markets. The volume of new, publijslyoffere^rT-rosporfit^securities expected this week will about equal the average
volume over the pastTyear, while the volume of new municipal bonds will be
considerably below average. Swelling the corporate volume will be the
expiration of rights for $93.1 million in Commonwealth Edison cumulative
preferred stock, while the largest corporate debt issue will be Pacific
Gas & Electrie's $50.0 million of first mortgage bonds. The largest
municipal offering will be the $25.5 million of St. Louis, Missouri general
obligation bonds. Also expected in the long-term market this week is $150.0
million of World Bank bonds.
1/
Long-term Public Security Offerings (In millions of dollars)
Corporate
New Capital I Refunding

State & local Government
New Capital I Refunding

Sold:
332

261

8

r/ 58

r/377

15

298

397

315

148

52 week avg.
March

Scheduled:
March
17

22

Federal Reserve estimates are based upon published reports of issues!
sold and scheduled for offering; corporate rights offerings are included
as of date subscription rights expire.

Although there is a discontinuity in the new issue series, it is
clear that yields on new as well as seasoned corporate bonds advanced only
slightly last week. The corporate market fairly effectively weathered the
international and domestic financial developments. New issues were well
received, but underwriters moved swiftly nonetheless to clear unsold balances
of bonds still in syndicate. Two issues offered two weeks earlier — both
with large unsold balances — were released during the week. Yields on these
issues advanced 13 to 16 basis points in free market trading. The American
Broadcasting Company postponed its $75 million convertible debenture offering
owing to a decline in the price of its related stock.
Yields on municipals advanced sharply to new highs last week Ws
the municipal market was flooded with about $200 million in industrial revenue
bonds. Underwriters rushed to offer these issues before the March 15 deadline




H. 14

-2-

Yields on Security Markets
High Grade
Notes and Bonds

Levels Latest Week

Change from
preceding week

Corporate
New
Seasoned

6.43

6.08

+ -+ 1

5.49
5.89

+ 22
+ 21

4.28
4.61

+ 1
+ 8

U.S. Government
Long-term
3-5 year
State and local Govt.
Moody's Aaa
Std. & Poor's high grade
Money Market
Federal funds
Treasury bills
3-month
6-month

4.62

-

5.25
5.43

+ 21
4- 18

8

Corporate Bonds Still in Syndicate
NONE

Blue List of Municipal Dealers' Advertised Inventories
Latest Week

End of Previous Week

470(3/13/68)

447




Recent High
849(4/26/67)

H. 14

after which the Treasury proposes to halt tax exemption for such issues.
Although these high-yielding offerings were quickly sold, the regular
competitively-offered municipals last week wefe not enthusiastically
received. Only about 50 per cent of the latter had been sold by the end
of the week.
Home-mortgage interest rates and other terms. While recent developments in international and related money markets point to further tightening
in mortgage markets ahead, secondary market yields on FHA-insured new-home
mortgages declined to 6.78 per cent in February. This followed no change
in January from the p«*uk of 6.81 per cent regained last December and was
the first decline since last April. Interest rates pa-eoqy entiona1 first:
mortgages for both new and existing homes hold at the record levels reached
in January. These rates were 6.75 and 6.80 per cent, respectively, as
reported by the Federal Housing Administration, which rounds them to the
nearest 5 basis points.
The slight shift in the FHA-yield series in February was assoc Lated
with a turn in average discounts required by lenders from a record 6.8 to 6.6
points. But new Aaa corporate bond yields, which had dropped significan :ly
in January, advanced again in February. Consequently, the spread between
these mortgage and bond yields narrowed once more to a mere 49 basis points,
compared with 126 basis points a year earlier and a record low of 24 las
November.
Reflecting, in part, the higher yields being required by lenders
and apparently the more selective market which has developed, non-rate terms
have been quite liberal in most cases, compared with earlier standards,
according to the Federal Home Loan Bank Board series now available for
January. (This series, which has just been reconstituted on a new basis)
back to January 1965, appears to exhibit no marked difference in the over-all
patterns indicated by the old series.) Maturities on new single-family homes
reached 25.5 years in January, while those for existing homes averaged 2j2.7
years.
Loan -to-price ratios for existing homes moved up to 73.6 per cent
while loan to-price ratios for new home mortgages at 73.1 per cent, were
below December and the 1967 average, loan amounts generally continued to
climb as prices of new homes being sold continued sharply upward. In
January such prices, which also reflect the mix of available stocks for sale
averaged $29.9 thousand, 9 per cent above a year earlier.
Stock prices. Common stock prices fluctuated sharply last wee k in
stepped-up trading volume, but showed little change on balance. At the close
Friday, Standard & Poor's index of 500 stocks stood at 89.10 up 0.07 fr< its
week earlier level. Trading volume averaged, 10.1 million shares a day.
More detailed information concerning recent capital market dex elopments is presented in the attached exhibits.
Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




ElWIIIt * »•« 1
LONG-TERM B O N D YIELDS/ HIGH-GRADE




C O R P O R A T E All

U.S. G O V E R N M E N T
Long-term

r
S T A T E A N D L O C A L G O V E R N M E N T All
" Moody'» ;

1964

1966

1967

Date

1959-60 - High
1966 - High
- Low
1967 - High
- Low
1968 - Feb.

1

Exhibit A -- Faru jLi

Corporate
j Aaa If

State and
U.S. Govt. |
local
long-term 2,/| government
Aaa 3/
(per cent)

4.61(1/29/60)
1 5.52(9/9)
4.73(1/7)
6.24(12/29)
5.00(2/10)

4.42(1/8/60)
4.87(9/2)
4.42(1/7)
5.49(11/17)
4.37(2/3)

3.65(9/24/59)
4.04(8/25)
3.39(1/13)
4.15(12/28)
3.25(2/9)

Spread between
U.S. Govt, and
Corporate
| State and
Aaa
| local Aaa
.59(8/5/60)
.84(12/30)
.14(2/18)
.92
.44

.92(4/22/60)
1.19(2/11)
.77(9/2)
1.51
. 74

16
6.10
5.13
4.00
.97
1.13
23
6.09
5.14
4.06
.95
1.08
Mar.
1
6.09
5.19
4.16
.90
1.03
8
5.27
4.27
.80
1.00
6.07
1.21
.59
4.28
5.49
15p/ 6.08
j>/ Preliminary,
1/ Weekly average of daily figures. Average term of bonds included is 22-24 years.
2/ Weekly average of daily figures. The series includes bonds due or callable in 10
s
years or more.
3/ Thursday figures. Only general obligation bonds are included; average term is 20
years.
Note--Highs and lows are for individual series and may be on different dates for
different series. For spreads, high refers to widest, and low to narrowest.




LONG-TERM

B O N D YIELDS, LOWER

Weekly

'

GRADE
'

C O R P O R A T E Baa

S T A T E A N D LOCAL G O V E R N M E N T Baa

— '

1963



\

1965

1967

1968

Exhibit B -- Part II

State and
local govt.
Baa 3/

Corporate
Baa 1/

Date

(per cent)

Spread between
Aaa and Baa
State and
Corporate
local aovt.

1959-60 - High
Year end- 1965
1966 - High
Low
1967 - High
Low

5.36(2/12/60)
5.04
6.18(12/30)
5.05(1/14)
6.97(12/29)
5.81(4/14)

4.46(1/7/60)
3.79
4.55(8/25)
3.78(1/20)
4.73(12/28)
3.85(4/13)

.84
.31
.81
.31
.82
.63

1.08
.39
.62
.31
.81
.37

1968 - Feb.

6.79
6.79
6.80
6.81
6.81

4.69
4.73
4.78
4.81
4.90

.69
.70
.71
.74
.73

.69
.67
.62
.54
.62




Mar.

16
23
1
8
15£/

.

x

S H O R T - A N D INTERMEDIATE-TERM INTEREST RATES
GOVERNMENT
Weekly

6 M O N T H BILLS

3-5 YEAR ISSUES

F.R. DISCOUNT R A T E

3 - M O N T H BILLS

1963




1964

1965

1967

1968

Exhibit C -- Part II

Date

Discount
rate
_iz

1959-60 - High
Year end - 1965
1966
1966 - High
Low
1967 - High
Low

4.00
4.50
4.50
4.50
4.50
4,50
4.00

Feb.
Mar.

16
23
1
8
152/

4.50
4.50
4.50
4.50
4.50

3-month
bills 2/
4.59(1/8/60)
4.47
4.80
5.52(9/23)
4.39(6/24)
4.99(12/29)
3.41(6/9)
4.97
4.96
5.03
5.04
5.25

Yields
6-month
bills U
(per cent)
5.07(1/8/60)
4.66
4.92
5.92(9/23)
4.53(6/24)
5.50(12/15)
3.74(6/2)
5.14
5.16
5.21
5.25
5.43

3-5 year
issues U

Spread between yields on
3-mo. bills and yields on
6-mo. bills!3-5 yr. issues

5.00(12/24/59)
4.90
4.86
5.83(9/2)
4.80(4/8)
5.80(11/10)
4.36(4/7)

Preliminary.




1.81
.43
.06
.78
.01
1.61
.02

.17
5,56
.20
5.57
.18
5.60
.21
5.68
.18
5.89
at the Federal Reserve Bank or

2/ Markltryleld; weekly averages computed from daily closing bid prices.

2J

.79
.19
.12
.52
.09
.62
.01

-9-

Series of 3-5

.59
.61
.57
,64
.64

EXHIBIT

D, Port

1

S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES,
B A N K S A N D OTHER PRIVATE B O R R O W E R S
Weekly

PRIME RATE
FINANCE C O M P A N Y PAPER
Directly

placed.

1963



F.R. DISCOUNT RATE

FEDERAL FUNDS

1965

1968

Exhibit D —

Prime rate 1/

Date

Part II

Finance
company
•pafper 2/

Spread between
3-mo. bills and
Federal funds 3/ finance co. paper

(per cent)
1959-60 - High
Year end- 1964
1965
1966
1966 - Low
1967 - High
Low
1968 - Feb.
Mar;

16
23
1
8

5.00
4.50
5.00
6.00
5.00(3/4)
6.00(12/29)
5.50(12/1)

5.13(1/22/60)
4.06
4.75
5.88
4.75(1/7)
5.75(1/6)
4.38(6/23)

4.00(5/13/60)
4.00
4.63
5.63
3.55(1/21)
5.25(1/6)
3.40(10/27)

6.00
6.00
6.00
6.00
6.00

5.25
5.25
5.25
5.25
5.50

4.59
4.69
4.70
4.95
4.62

1.02
.23
.28
1.08
.20
1.33
.21
.28
.29
.22
.21
.25

charged by large banks on short-term loans to business borrowers of the highest
credit standing.
2/ Average of daily rates published by finance companies for directly placed paper
for varying maturities in the 90-179 day range.
3/ Weekly average of daily effective rate, which is the rate for the heaviest
volume of purchase and sale transactions as reported to the Federal Reserve
Bank of New York.
Note.-Highs and lows are for individual series and may be on different dates for
different series. For spreads, high refers to widest, and low to narrowest.
E/ Preliminary.




-11-

EXHIBIT E, Port

1

STOCK MARKET
194143

dverage=10

100

PRICES
8

STOCK M A R K E T CREDIT

6

* C H A N G E IN SERIES

4




Millions

VOLUME

YIELDS

1964

1965

1968

of i h a r e s

Exhibit E -- Part II

Date

Stock price
index 1/

1961-62 - High
Low
1966 - High
Low
1967 - High
Low
1968

Jan.
Feb.
Mar.

72.04(12/8/61)
52.68(6/22/62)
93.77(2/11)
73.20(10/7)
97.26(10/6)

82.18(1/6)

2.82
3.96
3.01
3. 97
3.01
3.58

95.04
90.75

3.10
3.28

1
89.11
89.03
8
15p/ 89.10
£/ Preliminary,

"

Common
stock
yields 2/
(per cent)

Trading
Stock market customer credit
volume 3/
(millions
Total
debit bal
loans to
of shares)
others
(In millions of dollars)
10.1 ,
5,602(12/61) 4,259(12/61) 1,418(5/9/62)
2.4
4,424(1/61)
3,253(1/61) 1,161(3/8/61)
10.7
7,997
5,835
2,241(7/6)
5.0
7,302
5,169
2,097(12/14)
12.3
10,347(12/67) 7,883(12/67) 2,507(11/1)
6.9
7,345(1/6)
5,290(1/67) 2,055(1/25)
11.9
9.2

3.32
8.0
3.36
r/9. 6
3.35
10.1
r? Revised.

10,193
n. a.

7,761
n.a.

n. a.
n. a.

n.a.
n.a.

i'™,""""

2,432
n.a.

2,421
r/2,444

EP9E™iFESF= — s r r a r r




-13-

—

EXHIBIT F. Port I

M O R T G A G E AND B O N D YIELDS ^

HOME M O R T G A G E S :

A a a CORPORATE BONDS:

J-LLi

1959

1960

1961




1962

1963

1964

1965

1966

1967

1968

Exhibit F
Conventional
mort25-year 30-year gages 3/
FHA
mortgages 1/

1957 - High
1958 - Low
1959-60 - High
1961-66 - Low
.1966 - High
1967 1 - High
Low
1967
1968

- Oct.
Nov.
Dec.
- Jan.
Feb.

5.63
5.35
6.24
5.43
6.73
--

n.a.
n.a.
n.a.
n.a.
n.a.

6.00

Part II

Spread between yields
on conv. &
FHA mort-4/
gages.

Aaa Corporate
Bonds
Seasoned-

Spread be tween
yields on new corporate bomids and
FHA mtgs, Seasoned
4/
bonds

5.44
6.81
6.81
6.29

5.55
6.30
5.80
6.70
6.65
6.40

.47
.15
.23
.25
.30
.11
-.12

4.94
3.65
5.25
4.12
5.82
6.53
5.20

4.12
3.57
4.61
4.19
5.49
6.07
5.03

1.69
.77
1.11
1.26
.24

6.65
6.77
6.81
6.81
6.78

6.55
6.65
6.70
6.75
6.75

-.10
-.12
-.11
-.06
-.03

6.12
6.53
6.51
6.24
6.29

5.82
6.07
6.19
6.17
6.10

.53
.24
.30
.57
.49

1.58

.88

1.03
.05
.73

-.16
.46
.46
.17

.30
.46
.32
.07
.19

Neither mortgage nor bond yields take into account servicing costs which are
higher for mortgages than bonds. Generally, bonds pay interest semi-annually
mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual
interest investment, would be slightly higher than given in the table.
1/ Based on FHA-field-office opinions about average bid prices in the private secondary
market for new-home mortgages for immediate delivery. Separate data available for
25-year and—beginning July 1961—30-year mortgages with minimum downpayments,
weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgages.
Over the period for which they can be compared, the movement of the two mortgage
yield series has been similar. Dashed lines indicate periods of adjustment to
changes in contractual interest rates.
3/ Based on FHA-field-office opinion on typical interest rates (rounded) on conventional
first mortgages prevailing in the market areas of insuring office cities. Beginning
with April 1960, rate relates only to new-home mortgages; prior to that date, rate
related to both new as well as existing-home mortgages. Dashed line indicates this
change in the series.
FHA
mortgage yield data are for 25-year mortgages through June 1961; 30-year
V
gages thereafter.
5/ See note for Exhibit G.
1 / Moody's Investor Service. Monthly averages of daily data. See Exhibit A.
1/




-15-

EXHIBIT F. Port HI

C O N V E N T I O N A L

M O R T G A G E

TERMS

^

Monthly

Yeari ,

MATURITY

NEW

EXISTING

L O A N / P R I C E

RATIO

NEW

EXISTING

1964




1966

1968
* CHANGE IN SERIES

Exhibit F

New Homes
Fees & EffecLoan/
Charges tive
Maturity Price
(Per
Rate
(Years) Ratio
cent)
(Per
3/
2/
cent)
Jan. r/
6.34

6.40
i<> Nov.
'Dec.

Part IV

Existing Homes
Con- Fees & EffecLo
tract Charges tive
Maturity Price Loan
Rate
(Per
Rate
(Years) Ratio Amt.
(Per
cent)
(Pp'
($000)
cent)
cent)
2/
3/
6.60
6.50
6.44
6.34
6.29
6.28
6.30
6.34
6.36
6.39
6.42
6.51

0.87
0.77
0.78
0.74
0.70
0.67
0.70
0.72
0.73
0.78
0.77
0.83

6.74
6.63
6.56
6.46
6.40
6.39
6.41
6.46
6.47
6.52
6.55
6.64

21.6
21.7
22.5
22.3
22.3
22.8
22.7
22.8
22.5
22.5
22.7
23.1

6.56

0.80

6.69

22.7

73.6

18.4

New series beginning 1965 as shown in table; related revision of chart is pending.
Note
Revised.
§?TC/ Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
r
Corporation. Data are weighted averages based on probability sample survey of ctiaracterijf
istics of conventional first mortgages originated by major institutional lender groups,
$
(including mortgage companies) for purchase of single family homes. Data exclude loans
%
for refinancing, reconditioning, or modernization; construction loans to home-tuilders;
^
and—in this exhibit--permanent loans which are coupled with construction loans to
owner-builders. Data prior to 1965 on a comparable basis with the new series arc pend|
|
ing. Related series on conventional mortgage rates only, based on unweighted opinions
|
of regional-office directors of the Federal Housing Administration, are available
|
somewhat sooner than the results of the FHLBB-FDIC survey, and are included—iii the case
Iof new home mortgage rates—in Exhibit F Parts I and II.
2/ Fees and charges—expressed as a percentage of the principal mortgage amount—include
loan commissions, fees, discounts, and other charges which provide added income to the
lender, and are paid by the borrower, They exclude any closing costs related solely to
transfer of property ownership.
3/ Includes fees & charges amortized over a 10 year period in addition to the cont:
interest rate.
-17-




YIELDS O N

NEW

AND

SEASONED

CORPORATE

illi_ ; _

BONDS

Weekly

6.5

A d j u s t e d to. A o o

Bo

N E W ISSUES

6.0

5.5

•/

---•

- " -

5.0

S E A S O N E D Aaa
Moody i

4.5

i i ri i i i 1Ti1l iIiI 1 1 1
' ...

4.0

1964


http://fraser.stlouisfed.org/
:/
Federal Reserve Bank of St. Louis

1965

1966

1967

1968

I

Exhibit G - II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis

Number
of
Monthly averages:
1968 - Jan.
Feb.

Weekly averages:
High
Low

13
13

567.0
564.5

6.24
6.29

6.48(3/1/68)
6-18(1/12/68)

of the offerings included are denoted by an asterisk.
eZ

Preliminary.




Number
of

Am't. of issues Average
yield
included (mill.
(per cent)
of dollars)

-19-

Am't. of issues Average
yield
included (mill.
(per cent)
of dollars)

Feb.

2
9
16
23

3
3
5
2

76 0
237.0
205.0
42.5

6.21
6.23
6.30
6.29

Mar.

1
8
15fi

2

70.0

6.48

85.0

6.44

——

2

Exhibit H
Long-term Corporate and State arid Local Government
Security Offerings and Placements
(In millions of dollars)
New Capital
1968p/

Corporate
1967P/

19ZT

1,482
1,194
1,439

1,188
858
865

1,553
1,058
2,364

1,111
1,222
1,497

1,193
901
1,141

2,454
2,407
1,723

1,039
1,670
1,382

943
858
1,324

2,289
1,467
2,336

829
1,085
1,635

974
1,424
1,060

755
969
940

5,364
6,058
6,584
6,092

4,985
4,975
4,091
3,550

4,115
3,830
3,125
3,458

2,911
3,235
2,494
2,664

11,421
18,007
24,584

9,959
14,050
17,601

7,945
11,070
14,529

6,146
8,640
11,304

1,648
1,399
2,317

1,302
1,237
2,446

April
Hay
June

1,973
1,474
2,611

July
August*
September
October
Novcr;er
December

January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

2/ 1,689
e/ 1,600
e/ 1,800

e/ 5,089

1st half
Three quarters
Year

State and local 2/
1968p/
196 7 r/
1966

1,107
e/1,200
e/1,100

e/3,407

.

701
773
1,020

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

Quarter
Quarter
Quarter
Quarter

4,924
4,884
3,969
3,188

5,207
5,913
6,338

17,269

Year *

e7 Estimated by Federal Reserve.
£/ Preliminary, r/ Revised.
1/ Securities and Exchange Conmission estimates of net proceeds.
2/ Investment Bankers Association of America estimates of principal amounts.
3/ Total new capital issues excluding offerings of sales and consumer finance companies.




-20-

Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
Quarter
or
Month
i 1966 - III
;
IV
1 1967 - I
II
1
III
IV

Net proceeds
Gross proceeds for new capital
for new capital 1/ 2/
and refunding 1/
Bonvi s
Common Memo:
Total
Other
Publicly Privately . and Foreign Mfg. Public CommuniUtility cations ]Issuers
Offered Placed
pfd. issues
stock included
4,197
2,256
1,627
154
1,558
657
567
1,309
314
3,669
2,047
1,247
375
117
1,232
984
918
417
3,263
5,464
6,208
4,017
6,833 - 4,604
3,107
6,294

1,811
1,465
1,551
2,137

390
726
678
1,051

60
65
234
93

2,442
3,014
2,792
2,527

997
1,268
1,219
1,255

543
548
595
269

1,418
900
362
156
563
10
105
274
1967 - Feb.
2,362
601
1,618
15
1,254
503
Mar.
143
145
2,016
Apr.
1,368
238
16
410
1,128
394
107
May
1,519
965
396
158
32
588
403
91
June
2,673
1,684
659
330
1,298
350
17
471
July
2,589
1,889
213
214
925
446
39
486
Aug.
2,481
1,813
418
250
13
1,229
509
356
Sept. 1,763
902
647
8
637
265
214
200
566
906
Oct.
469
34
119
1,375
573
2,409
Nov.
1,500
645
512
82
551
304
19
404
68
Dec.
278
2,385
1,020
40
1,109
1,087
278
1968 - Jan. ^ 1,757
326
530
528
16
418
182
903
125
540
n.a.
460
200
700
755
Feb.e/ 1,655
p/ Preliminary, e/ Estimated by Federal Reserve.
1/ Gross proceeds exceed net proceeds by the cost of flotation.
2/ For total see Exhibit H; other issuers are extractive, railroad and other
transportation, real estate and finance, and commercial and other.
SOURCE: Securities and Exchange Commission.




-21-

1,382
1,228
1,976
2,040

456
415
343
393
492
1,044
313
619
690
469
881
559.
475

Exhibit J
Other Security Offerings
(In millions of dollars)
Gross Long-term If
Foreign Government 2/
Federal Agency 3/
1967
1966
1965
1967
1966
1965
January
February
March
April' . •
May
June
July
August
September
October
November
December
Year

January
February
March
April
May
June
July
August
September
October
November
December j»/
Year

196

218

223
27
13
170
22
586
193
66
142
18

12
40
40
66
69
76
72
7
50
23
74
68

1,656

597

661

--

--

38
73
--

91
33
74
5
52
75 ...
2

1,251
783
750
650
810
650
407
250
599
708
710
612

503
410
392
699
1,030
1,084
799
400
450
800
239

239
150
375
375
179

8,180

6,806

2 ,732

New short-term 4/
State and local Government 5/
Federal Agency
-179
179
238
308
103
-552
387
.91
39
-24
-454
-594
-458
450
-319
-559
827
580
647
718
109
515
462
204
85
-128
93
-82
-334
284
-158
219
-103
119
-590
-262
593
408
270
-270
200
1,407
-161
152
-652
606
464
59
-48
- -555
50
503
573
274
-283
-431
219
-570
36
-366
2,28-1

422

1,286

660

310

129
185
325
—

775
--

3/
-1J.7
-174
117
-11
509
237
132
206
105
-309
202
-76
801

j>/ Preliminary, e/ Estimated by Federal Reserve.
1/ These dat"
differ from tliose in Exhibit H in that refunding issues, as well as new capital issues, I
are included. Long-term securities are defined as those maturing in more than one year. %
2/ Includes securities offered in the U.S. by foreign governments and their political
|
subdividions and international organizations. Source: Securities and Exchange Commissiqf
3/ Issues not guaranteed by U.S. government. Source: Long-term, Securities and Exchanged
Commission; short-term, Treasury Dept. & Fed. Reserve. 4/ These data differ from those j
in Exhibit H and above in that they represent new offerings less retirements, whether
from the proceeds or refunding issues or from other funds. Data include only issues with
original maturity of one year or less. 5/ Principally tax and bond anticipation notes,
warrants, or certificates and Public Housing Auth. notes. In some instances PHA notes
included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal
Reserve. / n. a. — Not available.




K-2
FOOTNOTE:
*

Rights offering.
Includes corporate and other security offerings of $15 million and ov|er;
State and local security offerings of $10 million and over.
1/ Includes foreign government and International Bank for Reconstructiori
and Development issues and non-guaranteed issues by Federal Agencies.
3/ In the case of State and local Government Securities, G.O. denotes general
obligation; Rev.-Ut., revenue obligations secured only by income fro
public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from
quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific
taxes only; Rev.-Rent., revenue bonds secured solely by lease payments.
Bonds due 1993 with a 2%;coupon reoffered at 5.40%.
Bonds due .1969-74 were not reoffered.
1/

I!




Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. 8. Treasury) .1/

iA

Proceeds of Large Issues Offered
(In millions of dollars)

Total
: 1967 - Feb. '
Mar.
Apr. •
. May
J u'ne
July
Aug.
Sept.
Octo
Novo
Dec o
1968 - Jan.
Feb.

•842
1,638
.1*311
870
1,666
1,340
1,705
794
1,458
826
978
904
757

Cornoriite
Bonda
(other than
Convertible
convertibles)
bonds
709
1,435
956
771
1,072
890
1,288
473
897
461
460
652
575

State
and
local

Stocks

40
140
213
55
409
317
. 350
257
285
. 150
437
168
105

93
63
142
44
185
133
67
65
276
215
81
85
77

Other

2/

530
1,000
540
391
825
85
221
400
50
845
627
1,095
389

675
669
512
496
875
483
473
847
505
865
633
785
591

Large Individual Issues Offered March 1 through March 15, 1968.
Issuer

Type 3/

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
net interest cost

Offering
yield

Rating

4.50
6.50
6.50
5.25
6.50

Ba
Aaa
A
Baa
A

Corporate
^Computer Sciences
Baxter Laboratories, Inc.
Philadelphia Electric Co.
White Motor Corporation
White Motor Corporation
Union Tank Car
State & local Government
Cornell Township, Michigan
Cornell Township, Michigan
Illinois Bldg. Authority
State of Hawaii
Prince George's Co., Md.
Ft. Lauderdale, Florida
Housing Assistance Admin.
Opelika, Alabama
Los Angeles Dept. of
Water & Power
State of Minnesota
Ashland, Kentucky
Pennsylvania State Sch.
Building Authority




Com. stk.
19.4
Conv. sub. debs. 25,0
1st mtg.bds.
60.0
Conv. debs.
25.0
S.F. Debs.
25.0
Equip, tx. cert. 20.0

1988
1993
1993
1993
1988

4-1/2
6.55
6-1/2
5-1/4
6-1/2

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

43.8
12.9
35.4
30.0
24.0
11.5
143.8
45.0

1995
1971-78
1968-90
1971-88
1969-93
1971-97
1968-2008
1971-93

5-1/2
5-1/2
4.86
4.41
4.51
5.02
4.43

5.50
• —
4.50-5.10
3.25-4.90
Aa
3.70-4.50,, A
3.40-4.63— A
3.90-5.00
A
3.10-4.63
Aaa
4.75-5.75
—

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

24.0
33.8
23.0

1969-98

4.71

4 . 1 0 - 4 . 8 ^ Aa

Rev. -Rent.

40.0

1993
1970-2007-/ 5.06
-23-

6.00
3.90-5.25

—

K-2
Large Individual Issues Offered March 1 through March 15. (Cont'd)

Issuer

Type 3/

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
Offernet intering
yield
est cost

Itate & local Govt. (Cont'd)
Sralta Jr. Coll. Dist.,
^California
G.O.
late of Maine
G.O.
tester Co., South Carolina Rev.-Rent.
lester Co., South Caroline Rev.-Rent.
Rev. -Rent.
Irain Co., Ohio
•rain Co., Ohio
Rev.-Rent.
Rev.-Rent.
|canaba8Michigan
1

18.5
11.7
10.8
24.2
29.5
50.5
12.6

1993
1969-98
1970-78
1993
1971-78
1988
1996

5.00
4.25
n.a.
n.a.
n.a.
n.a.
n. a.

1970-6.00

6.00

1

Rating

3.50-4.60
3.30-4.85
4.50-5.10
5.75
)0
4.30-5. (
5.38
6.50

Other

ideral Land Banks

V

1/
3/

1

Bonds

130.0

5.97

Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
Includes foreign government and International Bank for Reconstruction
and Development issues and non-guaranteed issues by Federal Agencies.
In the case of State and local Government Securities, G.O. denotes
general obligation; Rev.-Ut., revenue obligations secured only by
income from public utilities; Rev.-Q-Ut., Revenue bonds secured only by
income from quasi-utilities; Rev.-S.T., revenue bonds secured by revenue
from specific taxes only; Rev.-Rent., revenue bonds secured solely by
lease payments.
Bonds due 1993 with a 2% coupon reoffered at 5.40%.
Bonds due 1969-74 were not reoffered.
Bonds with a coupon due 2007 were not reoffered.




-R-

Aa
Aaa
---

H.14
Exhibit L
Forthcoming Large Long-term Public Security Offering for Hew Capital
(Other than U.S. Treaaury) 1/
Expected Proceed# from forthcoming Large Iaauea
(In millions of dollars)
During month following
date shown
Stste and
Corporate
Other 2/
local govt.
1967 - Feb. 28
• Mar. 31
Apr. 30
May . 31 .
June 30
July 31
-Aug. 31
Sept. 30
Oc t.. 31
Nov. 30
Dec. 31
1968 - Jan. .31
Feb. 29

1,410
767
963
1,449
1,636
1,261
694
534
1,357
826
968
531
873

508
227
326
596
401
512
783
768
505
865
633
449
683

Corporate

250

1,534
905
1,262
2,065
1,922
1,576
1,335
1,090
2,694
2,129
1,892
736
1,105

—

70
100
40
--

100
65
50
845
402
60
130

Subsequent to
date shown
State end
local govt.
528
247
346
616
402
575
903
889
743
1,684
1,076
937
1,079

Other 2J
265
15
85
115
70
150
159
126
260
875
502
75
265

Forthcoming Large Offerings as of March 15, 1968.

Issuer

Corporate
• A.M.K. Corp.
Diversified Metals r
General Telephone of the Southwest
Shell Oil Co.
Consolidated Edison
Sundsbrand Corporation
*Container Corp. of America
Utah Power & Light Co.
Pacific Gas & Electric
—~-"'
Louisiana Power & Light Co.
Graphic Sciences
Pioneer Natural Gas
McCulloch Oil Corp. of California
Tenneco, Inc.
Union Electric Co.
United Utilities
Kansas City Power & Light Co.
Hawaiian Telephone Go.




Type

Amount
(millions
of
dollars)

Debs.
Conv. sub. debs.
1st mtg. bds.
Com. stk.
Cum. pfd. stk.
Conv. sub. debs.
S.F. debs.
1st mtg. bds.
1st & ref. mtg. bds.
1st mtg. bds.
Gonv. debs.
1st mtg. bds.
Conv. sub. debs.
Cum. pfd. stk.
1st mtg. bds.
Conv. debs.
1st mtg. bds.
* 1st mtg. bds.

30.0
20.0
25.0
95.0
93.1
30.0
30.0
20.0
50.0
35.0
15.0
15.0
15.0
40.0
50.0
50.0
225.0
0
-°

Approximate date of
offering

March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March

18
18
18
18(rts. exp.)
18(rts. exp.)
19
19
19
20
21
25
25
26
26
26
26
27
28

'

L-3
- FOOTNOTES:
*—Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and loca
Government issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.
NOTE:. American Broadcasting Co.*6 $75.0 million convertible issue postponed d^ie to
market conditions.




Z.1

L-2
Forthcoming Large Offerings as of March 15, 1968.

Issuer
I

(Cont'd)

Amount.
(millions
Approximate date of offering
of
dollars)

Type

Corporate (Cont'd)

Houston Lighting & Power Co.
New Jersey Bell Telephone Co.
Potomac Edison Co.
*Nevada Power Company
Massachusetts Electric Co.
Consolidated Natural Gas Co.
*Bell Telephone of Pennsylvania
SCM
Fidelity Corporation
Montana Power
*Keystone Steel & Wire Co.
^Natural Aviation Corp.

1st mtg. bds.
Debs.
1st mtg. & coll.
tr. bds.
1st mtg. bds.
1st mtg. bds.
Debs.
Debs.
Coirv. debs.
Conv. debs.
1st mtg. bds!.
S.F. debs.
Com. stk.

35.0
50.0

March
April

28
2

25.0
15.0
20.0
30.0
100.0
41.5
16.0
30.0
30.0
24.2

April
9
April 16
April 17
April 18
April 23
April 24(rts. exp.)
Indefinite
Indefinite
Indefinite
Indefinite (rts. exp.)

12.5
20.0
25.5
12.0
15.0
16.2
15.5
45.2
35.0
31.8
20.0
13.9

March
March
March
March
March
March
March
March
March
April
April
April

State & local Government
*Atlanta, Georgia
Rev.-Rent.
Allegheny County Port Auth., Pa. Re-r. -Q. -Ut.
(i» 3.
St. Louis County, Missouri
Anne Arundel Co., Annapolis, Md. G.O.
G.O.
Cleveland City School Dist.
Rochester, New York
G.O.
State of Alaska
G.O.
New York City
G.O.
G.O.
Nassau Co., New York
San Francisco, California
G.O.
Calcasieu Parish^ Louisiana
Rev.-Rent.
Detroit, Michigan
G.O.
Washington Suburban Sani. Dist.,
Maryland
Rev.-Ut.
California Dept. of Water
Resources
G.O.
*Penna. State Highway and Bridge
Authority
Rev.-Rent.
^Oakland Co., Michigan
G.O.
*San Diego Unif. Sch. Dist., Calif,G.O.
*San Francisco B.A.R.T.
G.O.
Kentucky Turnpike Authority
Rev. -Q. -Ut.
%West Virginia State Bldg. Comm. Rev. -Rent.
Other
*World Bank
Bonds.
Part. cert.
*F.N.M.A.
Debs.
International Nickel Co.
S.F. loan bonds
^Jamaica,. Government of
New Zealand
Bonds




-2b-

18
19
21
26
26
26
27
27
28
1
2
2

25.0

April

2

150.0

April

3

74.0
16.9
10.0
70.0
120.0
24.2

April
3
April
4
April
9
April 10
Indefinite
March 25

150.0
730.0
150.0
15.0
15.0

March 21
March 26
March
Indefinite
Indefinite

, _

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

Sale Date

Amount
(millions
of
dollars)

Public Offerings

Issuer and Description of Issue
A.

Sold:

Jan. 1 through Mar. 15 , 1968.

1/11

60.0

Quebec Hydro - Electric Commission 6-7
debentures maturing 1989, reoffered
yield 7.00%.

1/23

35.0

Province of Nova Scotia — 7% S.F. debentures
maturing 1993, reoffered to yield 7.jL0%.

2/1

15.0

New Brunswick Electric Power Commission —
6-7/8%. S.F. debentures maturing 1993 ,
reoffered to yield 7.00%.

2/13

25.0

Montreal, Canada —7-1/8% S.F. debentures
maturing 1988, reoffered to yield 7.06%.
Canadian Pacific Railway — 6.90% equipment
trust certificates -- maturing March 1, 1983;
reoffered to yield 6.90%.

2/20

B.
Indefinite
Indefinite
Indefinite

15.0
120.0
15.0

Prospective Offerings
New Zealand — Bonds ***
International Nickel Co.
Debs.
*Government of Jamaica — S.F. loan bonds

* - Included in table for first time.
** - Issues sold to investors outside of U.S.
*** - Issue subject to interest equalization tax.




a

M-2 •

PART II2

Private Placements - Reported January 1 through March 15, 1968*

Date Reported

Amount
(millions
of
dollars)

1/1/68

1.5

1/8/68

12.0

Issuer and Description of Issue

Nicaraguan Hotel Co. — U.S. guaranteed
6% note, maturing June 1, 1987.
Republic of Portugal —

notes due 1968.

1/15/68

7*0

Home Oil Co. Ltd. (Canada) —
15 year bonds.

2/5/68

1.5

Caribbean Finance Co. (Puerto Rico) Senior
notes due 1/15/80.

•2/26/68

6.0

Aluminio, S.A. de C.V. (Mexico) U.S.
debentures -- 7-1/2%, maturing 1980.

Secured

3/1/68

12.0

Edmonton (City of Alberta, Canada),
U.S. 6-3/4% debentures maturing Jan., 1993.

3/15/68

35.0

Mexico - (United Mexican States) external
7-1/4% bonds due 3/1/73.

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




3
39