Full text of H.16 Capital Market Developments : March 29, 1965
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Not f o r P u b l i c a t i o n DECONTROLLED AFTER SIX MONTHS H. 14 March 2 9 , 1965. 1 CAPITAL MARKET DEVELOPMENTS IN THE UNITED STATES ( I n c l u d i n g S a v i n g s Flow i n F e b r u a r y ) C o r p o r a t e and m u n i c i p a l bond m a r k e t s . F l o t a t i o n of c o r p o r a t e s e c u r i t i e s i n t h e p u b l i c m a r k e t t h i s week w i l l p r o b a b l y b e c l o s e t o l a s t w e e k ' s modest t o t a l , The. s u p p l y of new m u n i c i p a l b o n d s w i l l b e o n e " t h i r d s m a l l e r t h a n l a s t week and o n e - f o u r t h l e s s t h a n t h e w e e k l y average over the p a s t year. Long-Term 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 C a p i t a l | R e f u n d i n g S t a t e & Local Govt. New C a p i t a l |1 R e f u n d i n g Sold: 52 week a v g . 113 1 187 10 March 19 March 26 143 r / 80 15 139 r / 216 1 - - - 147 , Scheduled: April 2 70 - - 1/ F e d e r a l R e s e r v e e s t i m a t e s b a s e d on p u b l i s h e d r e p o r t s of i s s u e s s o l d and s c h e d u l e d f o r 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 i n c l u d e d a s of t h e 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 . As i n t h e p r e v i o u s w e e k , b i d d i n g by u n d e r w r i t e r s f o r l a s t w e e k ' s s o l e bond i s s u e up f o r c o m p e t i t i v e b i d d i n g was v e r y a g g r e s s i v e . However, i n v e s t o r r e c e p t i o n of t h i s i s s u e was o n l y f a i r , a p p a r e n t l y r e f l e c t i n g the d i f f e r e n t e x p e c t a t i o n s f o r i n t e r e s t r a t e s over the near t e r m . As t h e two o t h e r i s s u e s s t i l l bound by s y n d i c a t e p r i c e r e s t r i c t i o n moved s l o w l y , u n s o l d s y n d i c a t e b a l a n c e s r o s e t o a b o u t $40 m i l l i o n a t t h e end of t h e w e e k . I n t h e m u n i c i p a l m a r k - t , o n l y a b o u t o n e - h a l f of l a s t w e e k ' s o f f e r i n g s w e r e s o l d by t h e end of t h e week and d e a l e r s ' a d v e r t i s e d i n v e n t o r i e s of u n s o l d s e c u r i t i e s r o s e t o o v e r $780 m i l l i o n . Because of t h e s u b s t a n t i a l l y r e d u c e d velum-, c u r r e n t l y s c h e d u l e d for o f f e r i n g i n A p r i l , h o w e v e r , u n d e r w r i t e r s d i d n o t e a s e up on t h e i r b i d d i n g and y i e l d s on s e a s o n e d , h i g h - g r a d e b o n d s w e r e u n c h a n g e d . H. 14 Yields in S e c u r i t i e s Markets High-Grade Notes and Bonds Corporate New Seasoned Level l a t e s t week (per cent) 4.42 4.42 U.S. Govt. Long-term 3-5 year 4.14 4.10 State & local govt. 3.09 Money Market F e d e r a l Funds Treasury B i l l s 3-month .6-month F i n a n c e Company Paper Change from p r e c e d i n g week (basis points) + 5 4.08 3.91 3.98 4.25 - 1 - 1 FNMA Secondary Market O p e r a t i o n s . S a l e s by t h e F e d e r a l N a t i o n a l Mortgage A s s o c i a t i o n i n t h e s e c o n d a r y market r o s e t o $ 1 2 . 5 m i l l i o n i n F e b r u a r y . T h i s was t h e h i g h e s t l e v e l s i n c e J u n e 1964 and up a p p r e c i a b l y from t h e r e d u c e d l e v e l a y e a r e a r l i e r . However, i t compared w i t h a h i g h f o r F e b r u a r y of $108 m i l l i o n two y e a r s e a r l i e r when s a l e s t o p r i v a t e i n v e s t o r s were e x p a n d i n g a t an unusually rapid r a t e . P u r c h a s e s by FNMA--at $ 2 8 . 5 m i l l i o n - - t e n d e d downward somewhat f u r t h e r i n F e b r u a r y from t h e m o d e r a t e l y advanced l e v e l of $ 3 2 . 4 m i l l i o n r e a c h e d l a s t December, b u t were a p p r e c i a b l y h i g h e r t h a n a y e a r e a r l i e r and a l s o i n F e b r u a r y of 1963. While o f f e r i n g s t o FNMA d e c l i n e d more s h a r p l y than purchases in February, a t $30.6 m i l l i o n , they a l s o remained r e l a t i v e l y h i g h compared w i t h most o t h e r l e v e l s r e a c h e d i n recent years. Stock p r i c e s . Common s t o c k p r i c e s , as measured by S t a n d a r d and P o o r ' s c o m p o s i t e i n d e x of 500 s t o c k s , e a s e d a l m o s t one p e r c e n t f u r t h e r l a s t week t o c l o s e a t 8 6 . 2 0 on March 25. T r a d i n g volume a v e r a g e d 5 . 1 m i l l i o n s h a r e s a day. S a v i n g s f l o w s i n F e b r u a r y . During t h e month of F e b r u a r y , t h e n e t g a i n i n i n c o m e - y i e l d i n g c l a i m s on d e p o s i t a r y - t y p e i n s t i t u t i o n s amounted t o $ 2 . 7 b i l l i o n , a r e c o r d f o r t h a t month and 24 p e r c e n t l a r g e r t h a n i n t h e comparable month of 1964. As i n t h e p r e v i o u s month, a l l of t h e y e a r - o v e r - y e a r e x p a n s i o n was a t t r i b u t a b l e t o t h e s h a r p r i s e i n time and s a v i n g s d e p o s i t s a t commercial b a n k s ; growth i n b o t h r e g u l a r d e p o s i t s a t m u t u a l s a v i n g s banks and i n s a v i n g s c a p i t a l a t s a v i n g s and l o a n a s s o c i a t i o n s was l e s s t h a n a y e a r e a r l i e r . H. 14 -3- A1though t h e g a i n i n s a v i n g s c a p i t a l a t s a v i n g s and l o a n a s s o c i a t i o n s was l e s s i n F e b r u a r y t h a n i n t h e c o r r e s p o n d i n g month l a s t y e a r , t h e y e a r - o v e r - y e a r s h o r t f a l l was n o t a s marked a s i t had been i n J a n u a r y . Moreover, new s a v i n g s c a p i t a l was g r e a t e r t h a n i n F e b r u a r y 1964, b u t t h e r i s e i n w i t h d r a w a l s was even l a r g e r ( i n J a n u a r y , even new d e p o s i t s were below t h e y e a r e a r l i e r l e v e l ) . A f t e r rough a l l o w a n c e f o r s e a s o n a l f a c t o r s , t h e e x p a n s i o n i n s a v i n g s c a p i t a l l a s t month was t w i c e t h a t of J a n u a r y and n o t much below t h e a v e r a g e f o r t h e f i r s t q u a r t e r of 1964. ^ Net I n c r e a s e i n S a v i n g s C a p i t a l a t S a v i n g s and Loan A s s o c i a t i o n s ( I n m i l l i o n s of d o l l a r s ) Unadjusted data Change from Current year previous year 1964 - Nov. Dec. 1965 - J a n . r / Feb. Percentage change + 40 - 41 -210 -152 859 1,679 254 602 + 5 - 2 - 45 - 20 Seasonally adjusted data Current year Previous year 1964 - Nov. Dec. 1965 - J a n . Feb. 965 668 355 702 908 816 554 843 The F e b r u a r y e x p a n s i o n i n r e g u l a r d e p o s i t s a t m u t u a l s a v i n g s banks was m o d e r a t e l y s m a l l e r 0 t h a n a y e a r e a r l i e r . However, most of t h i s d e c l i n e i n growth was t h e r e s u l t of a merger of a mutual s a v i n g s bank h o l d i n g a p p r o x i m a t e l y $25 m i l l i o n i n d e p o s i t s w i t h a commercial bank. Net Change i n R e g u l a r D e p o s i t s a t Mutual S a v i n g s Banks ( I n m i l l i o n s of d o l l a r s ) U n a d j u s t e d Data 1964 - Nov. Dec. 1965 - J a n . Feb. 1964 - Nov. Dec. 1965 - J a n . Feb. Current year Change from previous year Percentage change 317 651 356 203 4- 78 +87 - 26 - 41 + 33 +15 - 7 - 17 Seasonally adjusted data Current year Previous year 271 196 410 344 405 426 252 .287 -4- H. 14 The net inflow of time and savings deposits to commercial banks in February, although below the record January level, amounted to $1.8 billion, a postwar record for that month and almost two-thirds greater than in February 1964. More detailed information concerning recent capital market developments is presented in the attached exhibits. C a p i t a l Markets Section, D i v i s i o n o f R e s e a r c h and S t a t i s t i c s , B o a r d of G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s t e m . £ e X Hllll A, Pa II I LONG-TERM BOND YIELDS, H I G H - G R A D E Da te High High Low High Low 1965 - High Low Feb. Mar. Mar. Mar. / Mar. - 26 5 12 19 26 £ / Spread 1between U. S. Goif t . and S t a t e and Corporate Aaa l o c a l Aaa U. S. Govt, long-term 2/ 4.61(3/29/60] 4.46(9/13/61) 4.19 (3/29/63) 4.45(12/11) 4.35(2/2) 4.44(1/8) 4.41(3/21) 4.42 ( W t P ) . 4.12 (2/23/M) 3.85 (12/28/62) 4 . 2 0 (4/17) 4.11 (U/20) 4.16(3/12) 4.13(1/29) 3-. 3 7lv / 6 / 6 l ) 2.88(11/8/62) 3.16 3/26) 2.99(12/31) 3.09(3/25) 2.94(2/11) 65 .59 .57 .21 .33 .19 .29 .25 .92 1.04 .80 1.14 1.01 1.22 1.05 4.16 4.16 4.16 4.14 4.14 3.03 3.09 3.09 3.09 3.09 - .25 .25 .25 .28 .28 1.13 1.07 1.07 1.05 1.05 (per c e n t ) 1959-60 1961-62 1962-63 1964 S t a t e and local government Aaa 3/ Corporate Aaa 1/ 4.41 4.41 4.41 4.42 4.42 / 3 py p i-e liminaiV • V Weekly average of d a i l y f i g u r e s . Average term of bonds included i s 22-24 y e a r s . y Weekly average of d a i l y f i g u r e s . The s e r i e s includes bonds due or c a l l a b l e i n 10 years or more. i j Thursday f i g u r e s . Only general o b l i g a t i o n bonis are includedj average term i s 20 y e a r s . and lows are f o r individual s e r i e s and may be on d i f f e r e n t dates f o r d i f f e r e n t forNote#—flighs FRASER s e r i e s . For s p r e a d s , high r e f e r s to w i d e s t , and low t o narrowest# Digitized IX Hieu 6. fo" 1 LONG-TERM BOND YIELDS, LOWER GRADE $ I A 11 AND LOCAL OOVIINMIN1 Be Exhibit B Corporate Baa y Da te 1959-60 - High Year end - 1961 1962 z 1963 1964 1965 - High Low Feb. Mar. Mar. Mar. Mar. Mote* 26 5 12 19 26 £ / Part I I State and local govt* Baa 2 / (per cent) Spread between Aaa and Baa State and Corporate local govt. 5.36 (2/13/60) 5.10 4.93 4.85 4.80 4.80(1/8) 4.78(3/19) 4.46 (W<60) 4.04 3.57 3.60 3.51 3.51(3/25) 3.40(2/11) .84 .66 .70 .48 .37 .38 .36 1.08 .73 .63 .49 .52 .52 .41 4.78 4.78 4.78 4.78 4.79 . 3.44 3.51 3.51 3.51 3.51 .37 .37 .37 .36 .37 .41 .42 .42 .42 .42 Tor footnotes see Exhibit i . SHORT- AND INTERMEDIATE-TERM INTEREST BATE* Exhibit C Discount 3-month ra te b i l l s 2/ 1/ Date 1959-60 - High Year end - 1961 1962 1963 1964 1965 - High Low Feb. Mar. Mar. Mar. Mar. 26 5 12 19 26 £/ Part I I Yields 6-month b i l l s 2/ (per cent] 3-5 year Issues 2/ Spread between y i e l d s on 3Kl&lLMUft | .9nd YteldS_2B 6-mo. b i l l s 13-5 vr. Issues 4.00 3.00 3.00 3.50 4. QO 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 (l/B/60) 2.90 2.93 3.64 3.93 4.04(2/26) 3.92(1/8) 5.00(12/2^9) 3.81 3.41 4.07 4.07 4.13(3/12) 4.04(1/22) ..79 ,24 04 ,13 10 .13 .05 1.81 1.15 .52 .55 .24 .29 .11 4.00 4.00 4.00 4.00 4.00 - / 3.99 3.96 3.94 3.92 3.91 4.04 4.02 4.01 3.99 3.98 4.10 4.12 4.13 4.11 4.10 .05 .06 • 07 .07 .07 .11 .16 .19 .19 .19 z V Weekly rate shown ia that i n e f f e c t at end of period at the f e d e r a l Reserve Bank of New Yoric. TJ Market y i e l d s weekly averages computed from d a i l y olosimg bid p r i c e s . Series of 3-6 year i s s u e s c o n s i s t s of selected notes and bonds. Note.—aighs and lows are f o r individual s e r i e s and may be on d i f f e r e n t dates for d i f f e r e n t s e r i e s , f o r spreads, high r e f e r s t o w i d e s t , and low to narrwrest. SHORT- AND INTERMEDIATE- TERM INTEREST RATES, BANKS AND OTHER PRIVATE BORROWERS Exhibit D - - Part I I Date Prime r a t e 1959-60 - High Year end - 1961 • 1962 1963 1964 1965 - High Low Feb. Mar. Mar. Mar. Mar. 26 5 12 19 26 j)/ . 1/ Finance company Federal funds £ / naner 2/ (per cent) 5.00 4.50 4.50 4.50 4.50 4.50 4.50 5.13 (1/22/60) 3.00 3.19 3.88 4.06 4.25(3/26) 4.00(2/12) 4.00 (5/13/60) 2.88 3.00 3.50 4.00 4.08(3/26) 3.88(2/26) 4.50 4.50 4.50 4.50 4.50 4.25 4.25 4.25 4.25 4.25 3.88 4.00 4.02 4.08 4.08 Spread between 3-mo. b i l l s and finance co. naner 1.02 .34 .30 .36 .23 .34 .10 .26 .29 .31 .33 .34 V 1 on s h o r t - t e r m loans t o business borrower. of the b l u e s t c r e d i t standing. ^ H Avenge of d a i l y rates published by finance companies f o r d i r e c t l y placed paper for varying m a t u r i t i e s i n the 90-179 day range, * STOCK MARKET Exhibit B Stock p r i c e index 1 / 1961-62 - High Low Year end 1963 1964 1965 - High Low Common atock y i e l d s 2/ (per cent) Part II Trading volume 2 / (millions 72.04(12/8/61) 52.68(6/22/62) 2.80 3.96 10.1 2.4 74.44 84.75 87.56(1/29) 85.37(1/8) 3.13 3.02 2.95 3.02 4.7 4.7 6.4 4. 7 Stock market customer c r e d i t Customera 1 Bank debit balloana t o ance# 4 / " o t h e r s " 5/ ( I n m i l l i o n s of d o l l a r s ) Total 5,60313/61) 4,424(3/61) 7,242 ' 7JJ53 6,940 6,872 4,259 (12/61) 3 , 2 5 3 (J/61) 1,418(9/9/62) 1,161(3/8/61) 5,515 5.099 5,007 4,986 1,727 1.974 1,962(1/20) 1,848(3/3) 86.12 2.99 5.5 6,940 4,986 Jan. 1,954 5.9 86.75 2.99 6,872 5,007 Feb. 1,860 12 2.98 5.5 87.21 Mar. 1,852 3.00 1,856 5.4 19 86.84 Mar. 3.01 5.1 n.a. n.a. 86.20 n.a. Mar. 26 E / n.4e—Not available* PreliminawL y atannara Standard ana and rPoor's composite unex index ox of w 500 oaansn STOCKS. wwesiy 1 oioeing pnoee, Kmt-WlO. o w # oonpoevse Monthly data are averages of daily figures rather than of Friday • only# High# and lews are far Friday's data only. y Standard and Poor's composite etoek yield based on Wednesday data oonverted to weakly closing prices by Federal Reserve. "ttelds shown are for dates on which price index reached i t s high or low. 3/ Averages of daily trading voluee on the lew Y e * Stock exchange* Yeai*-end figures are averages of daily figures for the year, V tad of month figures for amber f i x e s of the Mew Y e * Stock h a h mage whl<fc carry margin accounts i excludes balances secured by 3. Oovezmssnt obligations# 5/ Wednesday figures for weekly reporting member banks, txcludee loans for purchasing or carry!:* U. S. Govensnent securities* Weekly reporting banks account for about 70 per cent of loans to others. For further detail see Bulletin. i ixHien f, f«ti i FEDERAL NATIONAL M O B T G A O I A S S O C I A T I O N ' ^ I S E C O N P AR Y M A R K E T O P E R A T I O N S t t t t t t t t i — — - / — ' Exhibit F - Part Date m II E s t i m a t e d o f f e r i n g s It o FNMA Standby Immediate Total purchase commitment Purchases by FNMA Sales by FNMA ( I n m i l l i o n s of d o l l a r s ) Feb. 15.1 15.0 .1 13.0 2.3 Mar. 20.1 19.9 .3 ' 16.8 3.8 Apr. 28.5 28.5 .1 26.4 12.7 May 28.9 28.9 25.8 10.9 June 9.3 9.2 - 3.8 9.5 July 8.0 8.4 .3 5.5 12.6 Aug. 20.5 20.5 15.2 4.4 Sept. 15.1 14.9 7.2 .1 1.6 Oct. 34.9 34.8 .1 24.0 Nov. 26.0 25.9 .1 5.7 16.0 Dec. 41.3 41.1 .1 5.9 32.5 Jan. 36.6 36.6 .1 29.8 2.0 30.6 30.6 28.5 Feb. 12.5 •—-Less than $50,000. l / Data represent unpaid p r i n c i p a l balances of the mortgagee in v o lv e d, e x c l u s i v e of premiums, d i s c o u n t s , or other charges. Offerings are amounts of a p p l i c a t i o n s r e c e i v e d during t h e period from s e l l e r s proposing t h a t FNMA execute purchasing contracts# An immediate purchase contract covers e x i s t i n g mortgages which t h e s e l l e r must d e l i v e r t o FNMA w i t h i n 45 days. A standby coraoitoent contract r e l a t e s t o proposed mortgages on housing nt* y e t under c o n s t r u c t i o n which the s e l l e r oust u s u a l l y d e l i v e r w i t h i n one year. Purchases include thoee under both immediate purchases and standby oonndtmea* c o n t r a c t s . Data exclude FNMA a c t i v i t y under S p e c i a l Assistance and Management and Liquidating Programs. Il YIELDS O N NEW AND SEASONED CORPORATE BONDS LI I I I 1 I I I I I I I I K U v . Exhibit G - Part II Y i e l d s o n New C o r p o r a t e Bond I s s u e s A d j u s t e d t o a n Aaa b a s i s Number A m ' t o f i s s u e s included (mil. of of d o l l a r s ) Monthly averages: 1 9 6 4 - May July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Weekly a v e r a g e s 1964 - High Number A i n ' t o f I s s u e s A v e r a g e included (mil. of yield (per cent). of d o l l a r s ) Average yield (per cent) J ;ir 278.0 230.0 60.0 75.0 239.0 70.0 4 . 46 4.43 4.37 4.39 4.49 4.46 140.0 94.0 111.0 4.47 4.42 4.41 4.53(5/8) 4.30(2/21) 15 22 29 Feb. 5 12 19 26 Mar. 5 12 19 26 40.0 4.53* 14.0 40.0 16.0 60.0 4.39 4.33 4.38 4.42 35.0 60.0 41.0 36.8 20.0 4.41 4.48 4.48 4.37* 4.42 Notei Averages of o f f e r i n g y i e l d s an a l l now i s s u e s of p u b l i o l y o f f e r e d o o r p o r a t e bonds rated Aaa. A* and A by Moody's I n v e s t o r s Service (exoept s e r i a l and c o n v e r t i b l e is s u e s , o f f e r i n g s of n a t u r a l gas p i p e l i n e and f o r e i g n companies, and bonds guaranteed by the F e d e r a l Government) weighted by flise of o f f e r i n g . Before a v e r a g i n g , new o f f e r i n g s are a d j u s t e d to a composite Aaa b a s i s by d e d u c t i n g from t h e aotual r e o f f a r i n g y i e l d the e x c e s s of t h e weekly average y i e l d f o r seasoned tends of the appropriate i n d u s t x y q u a l i t y group over t h e composite average f o r seasoned Aaiv-rated bonds (Moody's), Averages considered u n r e p r e s e n t a t i v e became of s p e c i a l c h a r a c t e r i s t i c s of Hie o f f e r i n g s included are denoted by an a s t e r i s k ^ vv Exhibit H • H.14 Long-term Corporate and Statu and Local Government Security Offerings and Placements (In millions of d o l l a r s ) Corpora t e 1964 New Cap i t a l 1963 1965 930 685 754 613 594 1,144 &/800 e/800 e/850 April May June 2,178 1,069 1,378 930 904 1,013 July August September 780 661 1,109 676 637 795 Oc tober November December 949 656 1,419 1,013 819 1,415 2,369 4,625 2,550 3,013 6,994 9,544 12,557 1965 January February March 1st 2nd 3rd 4th quarter quarter quarter quarter 2/801 e/ 800 e/1,050 e/2,651 1st half Three q u a r t e r s Year S t a t e and Local 2/ 1963 1966 i r 947 776 810 732 746 976 ,242 667 903 869 866 930 906 780 892 680 708 449 850 550 950 1,051 729 416 2,3bl 2,847 2,109 3,246 e/2,450 E / 2, •5 33 ,811 ,578 ,350 2,454 2,665 1,837 2,197 5,198 7,307 10,553 B/ 5 , 3 4 4 £ / 7,922 e/10,2 72 5,118 6,955 9,151 i n Excluding finance companies 3/ 1st 2nd 3rd 4th quarter quarter quarter quarter e/2,451 Year e/ £/ 1/ 2/ 2/ 1,996 4,170 2,411 2,755 2,284 2,529 1,768 2,854 11,332 9,434 Estimated by Federal Reserve. Preliminary. ^ S e c u r i t i e s and Exchange Commission estimates iff net proceeds. Investment Bankers Association of America estimates of p r i n c i p a l amounts. Total new c a p i t a l issues excluding o f f e r i n g s of s s l e s and consumer finance c o m p a r e s . ! I | H. 14 Exhibit I New C o r p o r a t e S e c u r i t y I s s u e s , Type of I s s u e and I s s u e r ( I n m i l l i o n s of d o l l a r s ) Month 1962 - I I III IV 3,317 2,167 2,875 Gross p r o c e e d s f o r new c a p i t a l and r e f u n d i n g 1/ Common Memo: Bonds and Foreign Publicly Privately pfd. issues Offered Offered stock included 1,386 251 642 1,289 852 1,006 55 308 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 1,780 287 424 287 367 128 434 109 47 947 591 806 968 326 794 285 530 236 221 150 118 842 1,241 868 1,629 1964 - I II III IV 2,499 4,851 2,8 02 3,311 978 1,321 792 531 1,221 1,640 1,516 2,372 300 1,890 494 408 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 1963 - J u l y Aug. Sept. Oct. Nov. Dec. 810 756 871 1,116 891 1,459 279 336 283 511 183 626 431 318 501 481 549 751 100 100 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 64 187 187 441 531 461 637 1964 - J a n . Feb. Mar. Apr. May June July Aug, Sept. Oct. Nov, Dec. 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 30 320 526 342 353 480 537 623 411 433 672 638 620 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 27 114 149 123 146 186 206 332 149 164 234 249 188 607 109 155 174 151 441 264 207 138 296 29 7 40 172 Quarter Total Net p r o c e e d s f o r new cap-LtaV If 2/ Communications Other issuers Mfg. Public Utility 996 566 747 984 376 552 228 274 317 848 685 945 1965 - I 157 83 341,377 27 258 23 16 19 81 17 30 515 324 400 463 395 525 401 342 560 321 401 610 858 134 561 296 163 11 1965 - J a n . g_/ 396 98 54 Feb. e / 840 190 500 150 n.a. 200 130 40 430 Mar. g / P r e l i m i n a r y , e / E s t i m a t e d by F e d e r a l R e s e r v e . 1/ Gross P r o c e e d s exceed n e t p r o c e e d s by the c o s t of f l o t a t i o n . 2/ For t o t a l s e e E x h i b i t H; o t h e r i s s u e r s a r e e x t r a c t i v e , r a i l r o a d & o t h e r t r a n s p o r t a t i o n , r e a l e s t a t e & f i n a n c e , & commercial & o t h e r . S o u r c e : S e c u r i t i e s & Exchange Commission. H H. 14 Exhibit J Other S e c u r i t y O f f e r i n g s ( I n m i l l i o n s of d o l l a r s ) 1965 January February March April May June July August September October November December &/218 e/ -- Jan. - Feb. e/218 Gross long-term 1 / Foreign government 2 / Federal a g e n c y 3 / 1964 1963 1963 1965 1964 4 82 69 30 75 26 20 13 7 180 72 58 86 636 Year 232 133 76 57 114 11 63 83 &/-- e/130 148 - - 186 - - 275 260 160 - - - - 509 - - 2 365 459 174 200 - - e/130 771 - - 1,204 148 1,167 New short-term 4 / State and local government 5 / Federal a gene v 3 / January February March April May June July. Augus t Sep Lumber 0( Loner • November December n.a. 1 Jan. - Feb. 103 236 -407 442 81 -80 -9 127 176 7 -15 &/-208 75 272 -367 589 -30 -10 62 208 -173 259 146 -339 339 347 -137 J/-211 -•'8 -336 23 97 183 239 -333 167 1 525 113 -3 -106 -189 -482 292 195 319 414 327 258 123 -102 551 £ . / - 74 -414 -295 p/453 598 692 | Year 1,600 £ / P r e l i m i n a r y . e / E s t i m a t e d by F e d e r a l R e s e r v e . n . a . - N o t a v a i l a b l e . l V T h e s e d a t a d i f f e r f r o m t h o s e i n E x h i b i t H i n t h a t r e f u n d i n g i s s u e s , a s w e l l a s new c a p i t a l i s s u e s , a r e i n cluded. L o n g - t e r m s e c u r i t i e s a r e d e f i n e d a s t h o s e m a t u r i n g i n more t h a n one y e a r . ^ / I n c l u d e s s e c u r i t i e s o f f e r e d i n t h e U . S . by f o r e i g n g o v e r n m e n t s and t h e i r p o l i t i c a l s u b d i v i s i o n s and i n t e r n a t i o n a l o r g a n i z a t i o n s . Source: S e c u r i t i e s & E x c h a n g e C o m m i s s i o n . 3/ I s s u e s n o t g u a r a n t e e d by t h e U . S . G o v e r n m e n t . S o u r c e : L o n g - t e r m , S e c u r i t i e s & E x c h a n g e Commission; s h o r t - t e r m , T r e a s u r y Dept. & F e d e r a l R e s e r v e . 4 / T h e s e d a t a d i f f e r from t h o s e i n E x h i b i t H and a b o v e i n t h a t t h e y r e p r e s e n t new o f f e r i n g s l e s s r e t i r e m e n t s , w h e t h e r f r o m t h e p r o c e e d s o r r e f u n d i n g i s s u e s or from o t h e r f u n d s . Data i n c l u d e only i s s u e s w i t h o r i g i n a l m a t u r i n g of one y e a r o r l e s s . 5 / P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , w a r r a n t s o r c e r t i for f i c aFRASER t e s and P u b l i c H o u s i n g A u t h o r i t y n o t e s . I n some i n s t a n c e s PHA n o t e s i n c l u d e d may Digitized h a v e a somewhat l o n g e r m a t u r i t y t h a n 1 y e a r . S o u r c e : Bond Buyer & F e d e r a l R e s e r v e . z > H. 14 Exhibit K Large Long-term Public Security Issues for New Capital (Other than U. S. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) Total 1964 - F e b . Mar. Apr. May June July Aug. Sept. Oct. Nov, Dec. rl965 - Jan. ) Feb. 263 335 1,557 452 650 291 142 376 187 Corpor ate Bonds (other than Convertible convertibles) bonds 200 35 296 235 51 -415 390 178 17 125 269 25 108 Stocks State and local governments 28 38 1,271 37 210 113 358 282 698 274 284 544 459 558 419 226 541 419 446 81 79 - - 230 130 217 200 115 131 30 15 86 - - Other 2/ 50 20 15 275 260 104 15 502 15 - - 235 130 L a r g e I n d i v i d u a l I s s u e s O f f e r e d March 1 t h r o u g h 26 Issuer Corporate *W.R. G r a c e & Co. M i s s i s s i p p i Pwr. & L t . Co. F l o r i d a Pwr. & L t . Co. •United Air Lines Inc. General Acceptance Corp. O k l a . Gas & E l e c . Co. S o u t h w e s t e r n P. S. Co. Carolina, Clinchfield & Ohio R a i l r o a d Co. N o r t h e r n 111. Gas Co. G e n e r a l T e l , & E l e c . Co. Spiegel, Inc. B r o o k l y n Union Gas. Co. Type 1/ Amount (millions of dollars) Maturity Coupon rate or net interest cost Offering vield Rating • Conv. s u b . d e b . 1 s t mtg. b d s . 1 s t mtg. bds. Conv. d e b . Deb. 1 s t mtg. b d s . 1 s t mtg. b d s . 83.5 20.0 40.0 66.5 35.0 25.0 16.0 1990 1995 1995 1990 1995 1995 1995 4-1/4 4-5/8 4-5/8 4 4-7/8 4-1/2 4-5/8 4.25 4.57 4.51 4.00 4.95 4.50 4.58 Gen. m t g . b d s . Deb. Conv. s u b . d e b . Deb. 1 s t mtg. b d s . 16.8 20.0 100.0 40.0 20.0 1990 1998 1990 1987 1990 4-1/2 4-1/2 4 5 4-5/8 4.55 4.50 3.87 5.00 4.50 A Aa Ba - - Aa A A A - - Baa A K-2 Large I n d i v i d u a l I s s u e s O f f e r e d March 1 t h r o u g h 26 ( C o n t ' d ) ; Issuer S t a t e & Local Government P u b l i c Housing Auth. F a i r f a x C o . , Va. P r i n c e Georges C o . , Md. L o u i s i a n a S t a t e Bond & B l d g . Comm. Milwaukee, Wise. S t a t e of New York Nassau C o . , N.Y. C h a r l o t t e , N.C. Ohio Sta&e Univ. F l o r i d a S t a t e Bd. of Ed. Georgia S t a t e Sch. Bldg. Auth. Tacoma Dept. of Pub. U t i L , Wash. Los Angeles Harbor D e p t . , C a l i f . Type 3 / Amount (millions of dollars) Coupon OfferM a t u r i t y r a t e or ing net i n t e r yield est cost G.O. G.O. Rev. - R e n t . G.O. G.O. G.O. G.O. Rev. - R e n t . G.O. Rev. - R e n t . Rev. - U t . Rev. - Q . - U t . 115.7 10.0 18.3 15.0 12.0 43.6 19.6 10.8 17.0 25.0 27.0 50.0 11.0 1966-2005 1966-90 1966-90 1966-90 1966-80 1967-2015 1966-94 1966-92 1966-95 1966-94 1966-87 1970-2014 1967-90 3.14 3.61 3.38 Bonds 18.5 1967 4-1/4 3.29 3.40 3.23 3.44 2.96 3.23 3.04 3.52 Rating 2 . 2 0 - 3 , .38 2 . 3 5 - 3 , -45 2 . 3 0 - 3 . .35 A/ 2 . 3 0 - 3 . .50 2 . 2 5 - 3 . 00 2 . 3 5 - 3 . 65 2.30-3. 2.25-3. 2 . 6 5 - 3 . 60 2 . 3 0 - 3 . 35 2 . 3 0 - 3 . 20 2 . 9 0 - 3 . 85 2 . 5 0 - 3 . 45 &/ Aaa Baa A A Aaa Aa A - - - Aa Aa Baa A Other F e d e r a l Home Loan Banks 4.33 *--Rights offering, n.a.--Not available. 1/ I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and o v e r ; S t a t e & l o c a l government s e c u r i t y o f f e r i n g s of $10 m i l l i o n and o v e r . 2 / I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and Development i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e r a l a g e n c i e s . 3 / I n t h e c a s e of S t a t e & l o c a l g o v t , s e c u r i t i e s , G.O. d e n o t e s g e n e r a l o b l i g a t i o n s ; R e v . - U t . , r e v e n u e o b l i g a t i o n s e c u r e d o n l y by income from p u b l i c u t i l i t i e s ; R e v . - Q . U t . , r e v e n u e bonds s e c u r e d o n l y by r e v e n u e from q u a s i - u t i l i t i e s ; R e v . - S . T . , r e v e n u e bonds s e c u r e d by r e v e n u e f r o m s p e c i f i c t a x e s o n l y ; R e v . - R e n t . , r e v e n u e bonds s e c u r e d s o l e l y by l e a s t p a y me n ts . 4 / 1 / 1 0 p e r c e n t bonds m a t u r i t y 1989-90 n o t p u b l i c l y r e o f f e r e d . 5 / 1 / 1 0 p e r c e n t bonds m a t u r i t y 1991-92 r e o f f e r e d t o y i e l d 4 . 0 0 p e r c e n t . - - 17 H.14 Exhibit L Forthcoming Large Long-term Public Security Offering for New Capital (Other than U.S. Treaaury) 1/ Expected Proceeda from Forthcoming Large Iaeuea (In milliona of dollare) 1 9 6 4 - Feb. Mar. Apr. May June July Aug. Sept. Oct. * Nov. Dec. 1965 - J a n . Feb. 28 31 30 28 30 31 31 30 30 30 31 29 26 During month following date ahown State and Corporate Other 2/ local govt. - 454 224 25 669 1,587 15 345 651 341 600 292 539 120 92 15 402 511 -500 186 - -254 25 90 360 215 105 306 - 169 242 407 316 Corporate Subsequent to date ahown State and local govt. Other 2/ -25 15 646 953 575 598 716 588 680 626 549 563 435 382 599 1,649 1,837 844 668 307 167 442 186 130 105 253 504 15 --25 215 -- F o r t h c o m i n g L a r g e O f f e r i n g s a s of March 26 Issuer Corporate J . P. S t e v e n s Co. T e x a s O i l & Gas C o r p . P h i l a . E l e c . Pwr. Co. C e l a n e s e Corp. U n i o n E l e c . Co. A r k a n s a s Pwr. & L t . Co. Spiegel, Inc. F l o r i d a Pwr. Co. *Tenneco Corp. *Columbia Gas S y s t e m , I n c . P a c i f i c T e l . & T e l . Co. C h r y s l e r Corp. Type Conv. s u b . d e b . 1 s t mtg. b d s . 1 s t mtg. b d s . Con. s u b . d e b . 1 s t mtg. bds. 1 s t mtg. b d s . Sub. d e b . 1 s t mtg. b d s . Deb. Deb. Deb. Com. s t k . Amount (milliona of dollars) Approximate date of offering Mar. Mar. Apr. Apr. Apr. Apr. Apr. Apr. Apr. May May May 30.0 15.0 25.0 78.9 35.0 25.0 17.6 30.0 40.0 40.0 125.0 300.0 Z 30 30 1 5 (rts. 7 8 9 (rts. 22 27 7 (rts. ex.) ex.) ex.) - ts L-2 Forthcoming L a r g e O f f e r i n g s a s of March 26 Issuer Type Amount (millions of dollars) Approximate d a t e of o f f e r i n g S t a t e and Local Government P h i l a d e l p h i a , Penna. S t a t e of Ohio C l a r k Sch. D i s t . , Nev. *San F r a n c i s c o P o r t A u t h . , C a l . P i t t s b u r g h , Pa. Dade County, F l a . F l o r i d a Dev. Comm. Va. S t a t e Highway Auth. G. 0 . G.O. G.O. G.O. G.O. G.O. Rev.-S.T. Rev.-Q.-Ut. 19.7 40.0 17.0 10.0 35.0 46.0 33.8 31.0 Mar. 31 Apr. 1 Apr. 1 Apr. 7 Indefinite Indefinite Indefinite Indefinite Bonds Bonds 20,0 25.0 Apr. Apr. Other Nippon T e l . & T e l . P u b l i c Corp. Govt, of M a l a y s i a 7 6 *--Included in t a b l e for f i r s t time. 1/ I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of $15 m i l l i o n and o v e r ; S t a t e and l o c a l Government i s s u e s of $10 m i l l i o n and o v e r . 2/ I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and Development i s s u e s and n o n - g u a r a n t e e d i s s u e s f o r F e d e r a l a g e n c i e s . N o t e : - - D e l e t i o n s f o r r e a s o n s o t h e r t h a n s a l e of i s s u e : None. : 11 H. 14 Exhibit M Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Date Public Offerings Amount (millions of dollars) Issuer and Description of Issue A. Sold Jan. 1 through March 26 ' 1/14 200.0 1/19 15.0 Republic of the Philippines--6-l/2% bonds, maturing 1980, reoffered to yield 6.66%. 1/25 20.0 Republic of Portugal-;-5-3/4%borids, maturing 1985, reoffered to yield 5.97%. *3/25 10.0 C i t y of H e l s i n k i , F i n l a n d - - 6 - 1 / 4 % b o n d s , m a t u r i n g 1 9 7 7 , r e o f f e r e d t o y i e l d 6.59%. International Bank for Reconstruction and Development-4-1/2% bonds, maturing 1990, reoffered to yield 4.48%. B. Prospective Offerings 3i 20.0 Nippon Tel, & Tel. Public Corp. - bonds 4/6 . 25.0 Govt, of Malaysia - bonds * Included in table for first time. .• ' i . ,7 .7 • , ; ' • :• 5 '• - • • V' M-2 Part II: Date exported P r i v a t e P l a c e m e n t - - R e p o r t e d J a n u a r y 1 t h r o u g h March 2$ Amount (millions of dollars) I s s u e r and D e s c r i p t i o n of I s s u e 1/11 25.0 Alberta Municipal Financing Corp.--4-5/8% d e b e n t u r e s , m a t u r i n g 1989, p r i c e d t o y i e l d 4.65%--no i n f o r m a t i o n a v a i l a b l e on takedown. 1/13 8.0 B e n e f i c i a l F i n a n c e Co. of C a n a d a - - s e n i o r n o t e s m a t u r i n g 1 9 8 4 - - n o i n f o r m a t i o n a v a i l a b l e on takedown. 1/18 30.0 P r o v i n c e of Nova S c o t i a - - 4 - 1 / 2 % s i n k i n g f u n d d e b e n t u r e s , maturing 1989--no i n f o r m a t i o n a v a i l a b l e on takedown. •3/8 10.0 B r i t i s h Columbia School D i s t s . C a p i t a l F i n a n c i n g Authority--4-5/8% instalment debentures, m a t u r i n g 1 9 6 5 - - n o i n f o r m a t i o n a v a i l a b l e on takedown. 3/5 15.0 3te: F r a s e r Companies, L t d . - - 5 - 1 / 8 % f i r s t and c o l l a t e r a l t r u s t bonds, maturing 1987--no i n f o r m a t i o n a v a i l a b l e on takedown. For r e t r o s p e c t i v e d a t a on a g g r e g a t e f o r e i g n c o r p o r a t e and government s e c u r i t y o f f e r i n g s i n t h e U n i t e d S t a t e s s e e E x h i b i t s I and J . T h e r e i s no s i m p l e r e l a t i o n s h i p between t h e d a t a shown i n t h i s E x h i b i t and t h a t shown i n E x h i b i t s I and J b e c a u s e t h e l a t t e r i n c l u d e s p r i v a t e l y p l a c e d s e c u r i t i e s i n t h e p e r i o d i n which f u n d s a r e a c t u a l l y t a l t e n down b u t o n l y i n t h e amount of takedown, w h i l e t h e p l a c e m e n t s shown i n t h i s e x h i b i t a r e i n c l u d e d when r e p o r t e d , f r e q u e n t l y w i t h l i t t l e o r no i n f o r m a t i o n c o n c e r n i n g i m i n g of t a k e d o w n s . F u l l o r p a r t i a l takedowns may t a k e p l a c e b o t h p r i o r and s u b Digitizedstfor FRASER equent to the data a placement i s r e p o r t e d . *--Included in t a b l e f o r f i r s t time.
@FedFRASER