Full text of H.16 Capital Market Developments : March 25, 1968
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Not for PuEUcaei6n" H. 4 J2ECQHIS0LLED a f t e r s i x months March 25, 1968 LPITAL MARKETSJBEVELOIMENTS MAR 2 7 w38. Or iuchmcnd . IN THE UNITED STATES Corporate and municipal bond markets. The volume of new, publiclyoffered corporate securities expected this week will be almost $100 millioi more than the average weekly volume over the past year; the municipal vorlume, however, will be slightly less than average. The large corporate volume features the $150 million offering of International Nickel debentures, while the lirgest municipal issue will be New York City's $45.1 million of housing bonds. Supplementing the week's volume of long-term offerings will be $730 millioin of publicly-offered FNMA participation certificates. Long-term Public Security Offerings (In millions of dollars) Corporate New Capital I Refunding 1/ State & local Government New Capital | Refunding Sold: 52 week avg. March 329 261 15 r/164 r/379 22 315 148 435 241 Scheduled; March V 29 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. Yields on new and seasoned corporate bonds advanced sharply last week, the former to within one basis point of its 1967 record high. Despite higher yields however, new issues were not well received in some cases, Only th b highly desirable World Bank bonds sold out by the end of the week. Yields on municipals, however, were lower for the first time in several weeks, and new issues met with a very good reception. By the end of the week, about 90 per cent of the week's offerings had been sold, and th Blue List had registered a fairly large decline. Private housing starts and permits. Seasonally adjusted privat housing starts rose 8 per cent further in February to an annual rate of 1,566 thousand. While the rate was short of the recent high in November it was what greater than expected. This may have reflected the more than usual number of operating days available for- February in this leap year. Also increased confidence engendered at that time by the less than anticipated disintermediation suffered by lenders in the December-January "withdrawal" period may have been a factor. H. 14 Yields on Security Markets High-Grade Notes and Bands Change from preceding week LeveIs Latest Week Corporate New Seasoned 6.58 6.14 + 15 + 6 5.42 5.78 - 7 - 11 4.20 4.53 - 8 - 8 5.15 + 53 5.26 5.37 + 1 - 6 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 Corporate Bonds Still in Syndicate . Date Offered Amount (millions of $") Issuer Reoffering Yield Rating Estimated proportion sold 3/21 35.0 Louisiana Power & Light, 7-1/8's - 1998 7.00 Aa 70% 3/21 15.0 Pioneer Natural Gas, 6-3/4's - 1998 6.84 A 75% 3/20 50.0 Pacific Gas & Electric, 6-5/8's - 2000 6.62 Aa 40% 3/19 20.0 Utah Power & Light, 7's - 1998 6.90 30% Blue List of Municipal Dealers' Advertised Inventories Latest Week 379(3/21/68) End of Previous Week 437 . Recent High 849(4/26/67) H. 14 Altogether, the February increase was concentrated entirely in single-family structures. These advanced a fifth further and reached a level in excess of a million units for the first month since December of 1965. Regionally, starts in the South led the rise with a month-to-month spurt of almost a fourth, and rates in the North Central and West were up moderately while those in the Northeast states -- which had led the upturn in January -- dropped sharply. Government-underwritten starts accounted for nearly 24 per cent of total starts in February. This compared with 20 per cent a year earlier and was the highest share for February since 1962. Building permits in permit-issuing areas also rose in February— by nearly a fourth and, at 1,373 thousand, exceeded the relatively advanced rate reached last December. Unlike starts, the rate of permits in February rose in all regions and most sharply for multifamily structures. Stock market credit. Total stock market credit in February registered its largest decline since June 1962. Almost all of the $391 million decline in stock market credit can be attributed to the $380 million decline in customers' net debit balances during the month. Only about $90 million of the $380 million CNDB reduction, however, represents a reduction in margin debt; the remainder reflects a substantial decline in cash account debt, resulting from a decline in trading volume plus the elimination of back offijce bottlenecks which had built up during January. Bank loans to "others" for purchasing or carrying securities meanwhile declined by $11 million, and customers1 net free credit balances declined $174 million. Stock prices. Common stock prices slumped to new recent lows last week in moderate trading, At the close Friday, Standard & Poor's index of 500 stocks stood at 88.42, down 0.68 from the previous Friday. Trading volupe averaged 8.8 million shares a day. More detailed information concerning recent capital market developments is presented in the attached exhibits. Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. H. 14 STOCK MARKET CREDIT (In millions of dollars) Months Outstanding: 1955-56 High Total Broker & Dealer Credit Customer.Credit Customers Money Net Debit Bank loans' to others net free Borrowed balances with than brokers and Other credit NYSE member dealers for purchas-' Cust. •tnp & carrying secur, colL POUr balances firms 1957-58 Low 3,554 (1/58) 2,482 (12/57) 1959 1960 1961 1962 1963 1965 4,764 (4) 4,142 (5) - High Low High Low High Low 1964 - Dec. 1965 - Dec. 1968 - Feb. 1,873 430 1,069 (1/55) 1,060 (11/57) 1,344 188 807 (4/57)' 1,373 (5) 1,121(5) 1,377 (8) 1,269 (9) 1,727 (12) 1,865 (2) 2,044 1,801 2,572 1,856 3,892 2,882 318 237 385 235 597 446 1,257 940 1,508 1,091 1,211 1,192 3,393 2,889 517 687 1,169 1,255 (4/56) 4,047 (5/56) 2,823 (12/56) 4,876 (7) 7,298 (11) 6,833 (7) 3,401 3,004 4,259 3,562 5,586 4,863 7,053 7,705 9,802 5,079 5,521 7,381 1,974 2,184 2,421 70 393 161 116 248 467 69 293 271 62 852 -154 -391 59 369 101 107 240 437 4 218 185 43 830 -122 -380 11 24 60 9 8 30 65 75 86 19 22 -32 -11 5,602 (12) (4) (7) (12) (7) (11) (7) (3) (4) (4) (9) (11) (8) 1,666 2,768 Change in outstanding: 1967 - Feb. Mar. Apr. May *" June July Aug. Sept. . Oct. Nov. Dec. 1968 - Jan. Feb. n.a. n.a. n.a. 22 199 -57 142 11 110 -60 120 112 -13 263 179 -174 samBrnrmm -4- LONG-TERM BOND YIELDS, HIGH-GRADE C O R P O R A T E Aaa 7~" U.S. GOVERNMENT r S T A T E AND LOCAL G O V E R N M E N T Aaa Moody's 1963 1964 1965 1967 1968 Exhibit A -- Faru LI I Corporate I Aaa 1/ State and U.S. Govt, j local long-term 2/. government Aaa 3/ (per cent) 1959-60 - High 1966 - High - Low 1967 - High - Low 4.61(1/29/60) 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) 1968 - Feb. 23 Mar. 1 8 15 22E / 6.09 6.09 6.07 5.14 5.19 5.27 5.49 5.42 4.06 4.16 4.27 4.28 4.20 6.08 6.14 £/ Preliminary. V Weekly average of daily figures. 2/ Weekly average of daily figures. 3/ Thursday figures. .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 .95 .90 1.08 .59 .72 1.21 1.22 .80 1.03 1.00 Average term of bonds included is 22-24 years. The series includes bonds due or callable in 10 Only general obligation bonds are included; average tern is 20 "-•"is,:;;s Spread between U.S. Govt, and State and Corporate local Aaa Aaa EXHIBIT B, Pari L O N G - T E R M B O N D YIELDS, LOWER GRADE Weekly CORPORATE Baa Moody' STATE AND LOCAL GOVERNMENT Baa i i i i i ii n i l 1963 i i i i i i i i i i i ii i II i ii i 1 i—i i i II \i 1 l l I l 1 I l I I I l 1 I 1968 1967 1966 1965 1964 Exhibit B -- Part II State and local govt. Baa 3/ Corporate Baa 1/ (per cent) Spread between Aaa and Baa State and Corporate local govt. 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 1968 - Feb. 23 1968 - Mar. 1 8 15 22j>/ 6.79 6.80 6.81 6.81 6.87 4.73 4.78 4.81 4.90 4.89 .70 .71 .74 .73 •73 Note: For footnotes see Exhibit A. 1.08 .39 .62 .31 .81 .37 .67 .62 .54 .62 .69 EXHIBIT C. Pari 1 SHORT- A N D I N T E R M E D I A T E - T E R M INTEREST RATES GOVERNMENT 6 - M O N T H BILLS 3 - 5 YEAR I S S U E S F.R. DISCOUNT RATE 3 - M O N T H BILLS 1963 1965 1966 1967 1968 Exhibit C -- Part II Date Discount 1 rate i 3-month 1/ ! bills 2/ Yields 6-month bills 2/ (per cent) 3-5 year issues 2/ Spread between yields on 3-mo. bills and vields on 6-mo. bills I -5 3 vr. issues 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 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) 507(1/8/60) 4.66 4.92 5.92(9/23) 4.53(6/24) 5.50(12/15) 3.74(6/2) 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) .79 .19 .12 .52 «09 .62 .01 1968 - Feb,. 23 Mar . 1 8 15 22j>/ 4.50 4.50 4.50 4;50 5.00 4.96 5.03 5.04 5.25 5.26 5.16 5.21 5.25 5.43 5.37 5.57 5.60 5.68 5.89 5.78 .20 .18 .21 .18 . 11 1.81 .43 .06 .78 .01 1.61 .02 il Reserve Bank of An/1 n f nori f at- hhti FpHpra 2/ Market yield; weekly averages computed from daily closing bid prices. Series of 3-5 year issues consists of selected notes and bonds. Note—Highs and lows are for individual series and may be on different dates for different series. For spreads, high refers to widest, and low to narrowest". .61 .57 .64 .64 .52 EXHIBIT D, Pari 1 S H O R T - A N D INTERMEDIATE-TERM INTEREST RATES, B A N K S A N D OTHER PRIVATE BORROWERS Weekly PRIME RATE FINANCE COMPANY PAPER Directly placed ; F.R. DISCOUNT RATE FEDERAL FUNDS 1963 1964 1967 1968 Exhibit D — Date Prime rate 1/ Part II Finance company paper 2/ Spread between V Federal funds 3/ 3-mo. bills and finance co. paper (per cent) 1959-60 - High Year end- 1964 1965 1966 1966 - Low 1967 - High Low 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) 1968 - Feb. 23 Mar. 1 8 15 22EZ 6.00 6.00 6.00 6.00 6.00 5.25 5.25 5.25 5.50 5.50 4.6,9 4.70 4.95 4.62 5.15 . 1.02 .23 .28 1.08 . 20 1-33 .21 .29 .22 .21 .25 .24 1/ Weekly rate shown is that in effect at end of period. Prime rate is that ™~ 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. EXHIBIT E, Pari 1 STOCK MARKET Billion: of 194143 dollari overoge=10 PRICES STOCK MARKET CREDIT * CHANGE IN SERIES Millioni of i h o r e i 14 \ 1 - VOLUME rtf\J\ - 1 10 V J 1 \ YIELDS 1 1111M l II 1| 1 1 II M i l 1363 1964 I- I I ' i i i i i n 1965 V**" i ii I 1 M l II M 1 II 1 1966 I I I I I I I I 1 1 I1967 M 1 1 1 .11 1 M 1 1968 6 2 Exhibit E — P a r t II Date Stock price index 1/ Stock market customer credit Common Trading Customers' stock volume 3/ Bank Total debit bal- loans to yields 2/ (millions (per cent) ances 4/ "others"5/ of shares) (In millions of dollars) 1961-62 - High Low 1966 - High Low 1967 - High Low 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 10.1 2.4 10.7 5.0 12.3 6.9 5,602(12/61) 4,424(1/61) 7,997 7,302 10,347(12/67) 7,345(1/6) 4,259(12/61) 3,253(1/61) 5,835 5,169 7,883(12/67) 5,290(1/67) 1,418(5/9/62) 1,161(3/8/61) 2,241(7/6) 2,097(12/14) 2,507(11/1) 2,055(1/25) 1968'- Jan* Feb. 95.04 90.75 3.10 3.28 11.9 9.2 10,193 9,802 7,761 7,381 2,432 2,421 Mar. 8 89.03 15 89.10 222/ 88.42 3.36 3.35 3.38 9.6 10.1 8.8 n.a. n.a. n.a. 2,444 n.a. n.a. n.a. Not Availab le. £/ Preliminary. \J Standard and Poor's composite index of 500 common stocks, weekly closing prices, 1941-43=10. Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are for Friday's data only. 2/ Standard and Poor1s composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve. Yields shown are for dates on which price index reached its high or low. 3/ Averages of daily trading volume on the New York Stock Exchange. Year-end figures are averages of daily figures for the year. 4/ End of month figures for member firms of the New York Stock Exchange which carry margin accounts; excludes balances secured by U. S. Government obligations. 5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying U.S. Government securities. Weekly reporting banks account for about 70 per cent of loans to others. For further detail see Bulletin. M I V A T I H O U S I N G STARTS AND PIRMITS Monthly, annuel I I I. I I I I I Ir rImI SEASONALLY ADJUSTED DATA STARTS BUILDING PERMITS * CHANGE IN SERIES . PER C E N T O F U N A D J U S T E D TOTAL STARTS MULTI-FAMILY GOVERNMENT UNDERWRITTEN 1961 1962 , 1963 1964 1965 \V 1966 1967 1968 Exhibit F - Part II Starts Total Unadjusted Type of financing Type o Seasonally adjustUnadjusted FHA ed annual rate 1967 - Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1968 - Jan. Feb. £/ 1,149 1,094 1,116 1,274 1,233 1,369 1,407 1,445 1,496 1,590 r/1,250 r/1,453 1,566 VA Other (Thousands of units) 49 81 9 92 14 74 97 12 114 109 18 132 101 125 19 106 125 15 105 17 127 16 122 101 111 135 19 15 99 118 r/61 80 16 63 80 14 68 16 89 1-2 family 42.3 68.8 83.5 92.3 90.6 86.8 87.8 82.0 86.7 72.3 r/50.2 r/47.7 r/59,4 Building permits housing (seasonally adjusted Multiannual family ratel 2/ 19.2 22.7 30.2 39.8 34.8 38.4 39.5 39.8 48.7 46.1 r/29.9 r/32.7 27.3 1 1 1 1 1 1 1 1 1 894 928 ,028 033 109 093 127 159 212 158 323 102 373 1/ Total starts are Census estimates including farm for both permit-issuing and "" non-issuing areas. A dwelling unit is started when excavation begins; all units in an apartment structure are considered started at that time. FHA and VA starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field office receives the first compliance inspection report, which is made before footings are poured in some cases but normally after the foundations have been completed. Capehart military housing units are excluded. Other starts are derived as a residual, although total and FHA and VA starts are not strict iy comparable in concept or timing; other starts iclude both units financed b y conventional mortgages and units without mortgages. 2/ Building permits before January 1963 are Census estimates for about 10,000 areas identified as having a local building permit system in 1959. Estimates be ginning January 1963, are for approximately 12,000, or all known, permit-issuing pl aces. Unlike starts, seasonally adjusted building permits reflect direct adjustm ent for differences in the number of working days per month, as well as other differences in timing and coverage. r/ Revised. £/ Preliminary. $# 11 EXHIBIT 2* G. Part 1 YIELDS O N NEW A N D SEASONED CORPORATE B O N D S Weekly 1.5 Adjusted to Aoo Boi NEW ISSUES 6.0 5.5 5.0 SEASONED Aaa 4.5 1964 1965 1966 1967 1968 Exhibit G - II Yields on New Corporate Bond Issues Adjusted to an Aaa basis Number of issues Number |Am't. of issues Average yield of included (mill. (per cent) issues of dollars) Am't. of issues Average yield included (mill. (per cent) of dollars) Monthly averages: 1968 - Jan Feb. Weekly averages: High Low • 13 13 a 567.0 564.5 6-58(3/22/68) 6.18(1/12/68 6.24 6.29 Feb. 2 9 16 23 Mar. 1 8 15 22>/ ™ of the offerings included are denoted by an asterisk. 4 76.0 237.0 205.0 42.5 6.21 70.0 6.48 85.0 135.0 6.44 6.58 * 6.23 6.30 6.29 Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) Capital Irir State and local 196 7 r/ 1968p/ January February March £./ 1,689 e/ 1,600 e/ 2,100 1,648 1,399 2,317 1,302 1,237 2,446 1,107 e/1,200 e/1,150 1,482 1,194 1,439 1,188 858 865 April May June e/ 1,550 1,973 1,474 2,611 1,553 1,058 2,364 e/1,150 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 1,324 701 773 1,020 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 July August September October November December 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter e/ 5,389 let half Three quarters Year 1st 2nd 3rd 4th finance companies 3/ Quarter Quarter Quarter Quarter 17,269 Year e/ 4,924 4,884 3,969 3,188 5,207 5,913 6,338 Estimated by FedArel Reserve. I»l e/ 3,457 Exhibit I New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) Quarter or Month 1966 - III IV 1967 - I II III IV i 1 9 Net proceeds Gross proceeds for new capital and refunding 1/ for new capital 1/ 2/ Total Bonus Common Memo: Publicly Privately and Foreign Other Mfg. Public CommuniOffered Placed pfd. issues Utility cations Issuers stock included 4,197 2,256 1,627 314 154 1,558 657 567 1,309 3,669 2,047 1,247 375 117 1,232 984 417 918 5,464 3,263 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 2,442 997 3,014 1,268 2,792 1,219 2,527 . 1,255 543 548 595 269 1,418 900 362 1967 - Feb. 156 10 563 274 105 Mar. 2,362 1,618 601 143 15 1,254 503 145 Apr. 2,016 1,368 410 238 16 1,128 394 107 May 1,519 965 396 158 32 588 403 91 June 2,673 1,684 ' 659 330 17 1,298 471 350 July 2,589 1,889 486 214 213 925 446 39 Aug. 2,481 1,813 418 250 13 1,229 509 356 Sept. 1,763 902 647 214 8 637 265 200 Oct. 1,375 566 469 34 906 2,409 573 119 Nov. 1,500 645 551 304 19 512 82 404 Dec. 2,385 68 1,087 1,020 278 40 1,109 278 1968 - Jan. £ , 1,757 528 326 16 530 418 182 903 1 Feb.e/| 1,655 200 755 700 n.a. 460 540 125 £/ Preliminary, ej 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. -24- 1,382 1,228 1,976 2,040 456 415 343 393 492 . 1,044 313 619 690 469 881 5.59 475 Exhibit J Other Security Offerings (In millions of dollars) Gross Long-term 1/ Federal Agency 3/ Foreign Government 2/ 1965 1966 1967 1965 1966 1967 January February March AprilMay = June July August September October November December Year January February March April May June July. August SeptemberOctober November December j>/ 218 223 27 13 170 22 586 193 66 142 18 12 40 40 66 69 76 72 7 50 23 74 68 1,656 597 661 196 38 73 91 33 74 5 52 75 2 State and local Government 5/ 238 103 91 39 387 -458 -319 -594 647 580 827 204 462 515 -82 -334 -128 119 -103 219 408 270 593 152 -161 200 59 -48 464 274. 503 50 -366 -570 -431 TFT 1,251 783 750 650 810 650 407 . 250 599 708 710 612 503 410 392 699 1,030 1,084 799 400 450 800 239 129 185 325 8,180 6,806 2,732 —- 2,281 .Reserve, n. a. — Not available. 422 1,286 — 775 — 239 150 375 375 179 short-term 4/ Federal Agency 3/ 137 308 -179 -174 -24 -552 117 -454 450 -11 -559 718 509 85 109 237 284 93 132 -590 -158 206 -262 -270 105 -652 1,407 -309 606 -555 202 -283 573 219 -76 36 •US Year . -- 660 310 801 Exhibit K Large Long-term Public Security Issues for New Capitsl (Other thsn U. S. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) total 1968 Feb.. Mar. Apr. May j U ne July Aug. Sept. Oct. Nov. Dec. Jan. Feb. JBSIBSIiSS. Bonds Convertible (other then bonds convertibles) 709 1 ,435 956 771 1 ,072 890 1 ,288 473 897 461 460 652 575 • 842 1,638 1,311 870 1,666 1,340 1,705 794 1,458 826 978 904 757 Stocks State and local governments 675 669 512 496 875 483 473 847 505 865 633 785 591 93 63 142 44 185 133 67 65 276 215 81 85 77 40 140 213 55 409 317 350 257 285 150 437 168 105 Cher %) 530 1,000 540 391 825 85 221 400 50 845 627 1,095 389 Large Individual Issues Offered March 1 through March 22 , 1968. Issuer Type &/ Amount (millions of dollars) Maturity C9TP9?*fe •Computer Sciences Baxter Laboratories, Inc. Philadelphia Electric Co. White Motor Corp. White Motor Corp. Union Tank Car. *Shell Oil Co. Consolidated Edison •Container Corp. of America Utah Bower & Light Co. Pacific Gas & Electric Com. stk. 19.4 Conv. sub. debs.25.0 1st mtg. bds. 60.0 Conv. debs. 25.0 S.F. debs. 25.0 Equip, tr. cert. 20.0 Com. stk. 95.0, Cum. pfd. stk. 93.1 S.F. debs. 30.0 1st mtg. bds. 20.0 1st & ref. mtg. bds. 50.0 Conv. sub. debs.20.0 Diversified Metals 35.0 Louisiana Power & Light 0a 1st mtg. bds. 1st mtg. bds. 15.0 Pioneer Natural Gas Coupon rate or net interest cost Offering yield Rating 1988 1993 1993 1993 1988 4-1/2 6.55 6-1/2 5-1/4 6-1/2 4.50 6.50 6.50 5.25 6.50 Ba Aaa A Baa A 1993 1998 6-5/8 7 6.62 6.90 A A 2000 1993 1998 1988 6-5/8 5-7/8 7-1/8 6-3/4 6/62 5.88 7.00 6.84 Aa B Aa A -M- 13 Large Individual Issues Offered March 1 through March 25.(Cont'd) Type 3/ Issuer Amount (millions of dollars) State & local Government Rev.-Rent. Cornell Township, Mich. Rev.-Rent. Cornell Township, Mich. Rev.-Rent. Illinois Bldg. Auth. G.O. State of Hawaii G.O. Prince Georges' Co., Md. Rev.-Rent. Ft. Lauderdale, Florida Bonds Housing Assistance Admin. Rev. -Rent. Opelika, Alabama Los Angeles Dept. of Water Rev.-Ut. and* Power G.O. State of Minnesota Rev.-Rent. Ashland,.Kentucky Peralta Jr. Coll. Dist., G.O. California Pennsylvania State Sch. Rev. -Rent. Bldg. Authority G.O. State of Maine . Chester Co., South Carolina Rev. -Rent. Chester Co.-, South Carolina Rev. -Rent. Rev. -Rent. Lorain Co., Ohio Rev. -Rent. Lorain Co., Ohio Rev. -Rent. Escanaba, Michigan Allegheny County Port Auth Rev. -Q. -Ut. Pennsylvania G.O. St. Louis County, Mo. Rev.-Rent. Atlanta, Georgia 43.8 12.9 35.4 30.0 24.0 11.5 143.8 45.0 Coupon Offerrate or Maturity net intering yield est cost Rating 5.50 5-1/2 1995 4.50-5.10 5-1/2 1971-78 3.25-4.90 4.86 1968-90 3.70-4.50,, 4.41 1971-88 3.40-4.63=' 4.51 1969-93 3.90-5.00 5.02 1971-97 3.10-4.63 1968-2008 4.43 1971-93 4^3/4-5-3/4 4.75-5.75 24.0 33.8 23.0 1969-98 4.17 4. 10-4.85^ 1993 n. a. - 18.5 1993 5.00 3. 50-4.60 40.0 11.7 1970-2007^5.06 4.25 1969-98 n. a. 1970-78 n.a. 1993 n. a. 1971-78 n.a. 1988 n. a. 1996 3. 90-5.25 3.,30-4.85 4.,50-5.10 5.75 4.,30-5.00 5.38 6.50 4.42 1973 1969-1983 n.a. 1970-1999 5.34 4.25 3,.40-4.20 4,.00-5.40 10.8 24.2 29.5 50.5 12.6 20.0 25.5 12.5 Aa A A A Aaa Aa 6.00 Aa Aaa -— A Aa. Baa Other Federal,Land Banks World Bank Bonds Bonds 130.0 150.0 1970 1980 6.00 6-1/2 5.97 6.54 * Rights offering. i/ Includes corporate and other security offerings of $15 million and over; 2/ 3/ 4/ 5/ Zf 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. kk\ Bonds with a coupon due 2007 were not reoffered. \A" ' H.W Exhibit L Forthcoming Large Long-term Public Security Offering for R w Capital (Other than U.S. Treaaury) ]J Expected Proceeda from Forthcoming Large Iaeuee (In millions of dollars) During month following iihw State and Corporate Other U local govt. 1967 - Feb. Mar. Apr. May June July Aug. Fept. Oct. Nov. Dec. 1968 - Jan. Feb. 28 31 30 31 30 31 31 30 31 30 31 31 29 1,410 767 963 1,449 1,636 1,261 694 534 1,357 826 968 531 873 508 227 326 596 401 512 783 768 505 865 633 449 683 250 70 100 40 100 65 50 845 402 60 130 Corporate Subsequent to tot. »how» State and local govt. 1,534 905 1,262 2,065 1,922 1,576 1,335 1,090 2,694 2,129 1,892 736 1,105 528 247 346 616 402 575 903 889 743 1,684 1,076 937 1,079 OtherU 265 15 85 115 70 150 159 126 260 875 . 502 75 265 . Forthcoming Large Offerings as of March 22, 1968 Issuer Amount (millions of dollars) Type Approximate offeri Corporate A.M.K. Corp, General Telephone of the Southwest McCullock Oil Corp. of Calif. Union Electric Co. United Utilities Tenneco, Inc. Sundstrand Corp. ^Piedmont Aviation Keystone Steel & Wire Co. Kansas City Power & Light Co. Houston Lighting and Power Co. Hawaiian Telephone Co. New Jersey Bell Telephone Co. Graphic Sciences Potomac Edison Co. Nevada Power Co. Massachusetts Electric Co. Consolidated Natural Gas Co. Bell Telephone of Pennsylvania Debs. 1st mtg. bds. Conv. sub. debs 1st mtg. bds. Conv. debs. Cum. pfd. stk. Conv. sub. debs Conv. debs. S.F. debs. 1st mtg. bds. 1st mtg. bds. 1st mtg. bds. Debs. Conv. debs. 1st mtg. & tr bds. 1st mtg. bds. 1st mtg. bds. Debs. Debs. . xsr 30.0 25.0 15.0 50.0 50.0 40.0 30.0 15.0 30.0 25.0 35.0 20.0 50.0 15.0 25.0 15.0 20.0 30.0 100.0 March 26 March 26 March 26 March 26 March 26 March 26 March 26 March 26 March 27 March 27 March 28 March 28 April-2 April 2 April 9 April 16 April 17 April 18 April 23 date of Forthcoming Large Offerings as of March 22 , 1968 Issuer Amount (millions * of. dollars) Type Corporate (Cont'd) (Cont'd) Approximate date of offering •9 Conv. debs. SCM *Indiana & Michigan Electric Co,,S.F. debs. *Iridiana & Michigan Electric Ca 1st mtg. bds. Conv. debs. *Indian Head, Inc. Debs. *Collins Radio Co. Conv. debs. Fidelity Corp. 1st mtg. bds. Montana Power Com. stk. National Aviation Corp. 41.5 15.0 35.0 25.0 35.0 16.0 30.0 24.2 April 24 (rts. exp.) April 30 April 30 Indefinite Indefinite Indefinite , Indefinite Indefinite (rts. exp.) State and Local Government 24.2 16.2 15.0 12.0 10,3 45.2 15.5 35.0 31.8 25.0 20.0 13.9 150.0 West Virginia State Bldg. Conm. Rev. -Rent. G.O. Rochester, New York Cleveland City School Dist. . G.O. Anne Arundel Co., Annapolis ,Md. G.O. G.O. Phoenix, Arizona G.O. New York City G.O. State of Alaska G.O. Nassau Co., N. Y. G.O. San Francisco, Calif. Wash. Suburban Sani, Dist., Md. Rev. -Rent. Rev. -Rent. Calcasieu Parish. La. G.O. Detroit, Michigan Calif. Dept. of Water Resources Rev. -Rent. Penna. State Highway & Rev. -Rent. Bridge Auth. G.O. Oakland Co., Michigan Sail Diego Unif, Sch. Dist. , G.O. Calif. G.O. San Francisco B.A.R.T. G.O. ^Montgomery Co., Pa. *Los Angeles Dept. of Airports Rev. -Rent. Rev. -Q.-Ut. Kentucky Turnpike Auth. 74.0 16.9 March March March March March March March March April April April April April 25 26 26 26 26 27 27 28 1 2 2 2 3 April 3 April 4 10.0 70*0 11.0 35.0 120.0 April 9 April 10 April 10 April 17 Indefinite 730,0 150.0 15.0 15.0 March 26 March 28 April 15 Indefinite Other F.N.M.A. International Nickel Co. Jamaica, Government of New Zealand Part. cert. Debs. S.F. loan bonds Bonds * Included in table for first time. 1/ Includes corporate and other issues of $15 million and over; State and local Government issues of $10 million and over. 2/ Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. .-.2* 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. 22;, 1968. 1/11 60.0 Quebec Hydro - Electric Commission 6-7/8% debentures maturing 1989, reoffered yield 7.00%. 1/23 35.0 Province of Nova Scotia — 7% S .F. del ebentures maturing 1993, reoffered to yield 7.10%. 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%. 2/20 20.0 Canadian Pacific Railway -- 6.90% equipment trust certificates— maturing March 1, 1983; reoffered to yield 6.90%. B. Indefinite 3/28 4/15 15.0 150.0 15.0 Prospective Offerings New Zealand — Bonds *** International Nickel Co. Debs. Government of Jamaica — S.F. loan bopds * - Included in table for first time. ** - Issues sold to investors outside of U.S. *** - issue subject to interest equalization tax. M-2 PART lis Private Placements - Reported January 1 through March 22, 1968* Date Reported Amount (millions of dollars) Issuer and Description of Issue 1/1/68 1.5 Nicaraguan Hotel Co. — U.S. guaranteed 67» note, maturing June 1, 1987. 1/8/68 12.0 Republic of Portugal —- notes due 1968. 1/15/68 7.0 Home Oil Co. Ltd. (Canada) -- Secured 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. 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. -2i-