Full text of H.16 Capital Market Developments : March 5, 1968
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DECONTROLLED AFTER SIX MOUTHS Not for Publicatfior H. 14 March 5, 1968. jAITTAL MARKETS DEVELOIMENTS IlL-IHEJUNITED STATES Corporate and municipal bond markets. Although the volume of new, publicly-offered, corporate securities expected this week will be considerably below the average weekly volume over the past year, the volume of new municipal issues will be exceedingly large and the Federal Agency market will see $140.0 million of Federal Land Bank bonds for new capital offered. There will be no straight-debt corporate offerings this week, and, indeed, almost the entire week's volume consists: of a $98.2 million offering of cumulative preferred stock of Tenneco, Inc The largest municipal offering will be a $143.8 million issue by the Housing Assistance Administration, and adding to the municipal volume wil be the recently announced offering of $56.7 million of industrial revenue bonds by Cornell Township, Michigan. This revenue bond issue is the firslj: to carry the newly-invented "mandatory redemption" feature — a feature which allows the buyer an option to sell the bonds to the corporation using the facilities financed if the tax-exemption should be eliminated. The development of this feature is expected to bring forth a considerable volume of industrial revenue bond financing, postponed since a clause making the removal of tax exemptLoneffective for all issues offered after January 1, 1968 is attached to the bill before Congress. Long-term Public Security Offerings — (In millions of dollars) Corporate New Capital I Refunding State & local Government New Capital I Refunding Sold: 52 week avg. February March 339 9/253 23 r/ 61 e/331 1 145 256 8 125 Scheduled: March If 447 Federal Reserve estimates issues sold and scheduled for offering; corporate rights offerings are included as of date subscription rights expire. H. 14 Yields of Security Markets High Grade Notes and Bonds Change from preceding week Levels Latest Week Corporate New Seasoned 6.48 6.09 +19 5.19 5.60 + 5 +. 3 4.16 4.48 +10 + 5 4.69 - 1 5.03 5.21 + 7 + 5 U.S. Government Long-term 3-5 year State and local Govt. Moody's Aaa Stdi & 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 Estimated proportion sold Rating 2/28 10.0 Western Mass. Electric, 6-3/4's - 1998 6.62 - Aa 35% 2/27 60.0 Ohio Power, 6-3/4's - 1998 6.60 Aa 45% 2/27 50.0 Texas Eastern Transmission, 7's - 1988 7.10 Ba 60% 100.0 Southern California Edison, 6-3/8*8 - 1993 6.J5 Aa 75% 2/6 Blue List of Municipal Dealer#' Advertised Inventories Latest Week 489(2/29/68) End of Previous Week Recent High 553 849(4/26/67) H. 14 Although the lagging seasoned corporate yield series was unchanged last week, the new issue series advanced sharply. Much of I the latter1s advance may be attributed to a shift in the Composition of the series toward issues with no call protection but there is still no doubt that yields last week were higher on new issues. The issues were hot especially well received, but they did induce several large syndicate terminations. In all, four issues, with unsold balances totalling about $120 million, were released* and in subsequent free market trading the yields on these issues'advanced from 7 to 15 basis points. Yields on seasoned municipals advanced sharply last week, and the deteriorating market conditions led to the postponement of one of the week's largest issues. Technical factors led to another potential borrower rejecting all bids, so the predicted volume did not materialize. Thus, by the end of the week, underwriters had been able to place about 80 per cent of the week's new issues actually reaching the market. Depositary Intermediaries. January savings flows on a seasonallyadjusted basis were below those for a year ago at all depositary institutions. The percentage decline in savings at the savings and loans was more than double that at mutual savings banks, a reversal of their December experiences that ^reflects primarily a difference in Impact of the December-January reinvestment period. After unusually large withdrawals at the end-December gra.ce period, savings flows at mutual savings banks recovered considerably du.ring January. Although the end-December to early-January savings flows a.t savings and loans were depressed slightly, the relative worsening) at these institutions is a result primarily of considerably below-normal inflows during the latter part of January. At commercial banks, sayings flows compared with year-ago flows also shotted A larger decline in January than in December, although variations from last year in these savings flows were smaller than those at savings banks and S&Ls. T Stock prices. In dwindling volume, common stock prices declined further last week. At the close Friday, the Standard & Poor's index of 500 stocks stood at 89.11, only 0.04 above the tiM-February low, and a pull 1.78 below the closing level the previous Friday. Trading volume averaged 8.0 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. SAVINGS FLOWS Year or Month Mutual Savings Banks 3/ Savings & Loan Assoc. 2/ Che, from Prev. Yr Yr. Current Che. from Current In (millions) In Total (millions) Per millions Per millions 1/ Cent c m _JL Commercial Banks 4/ Current Chg. from Prev. Year (millions) In Per millions Cent Unadlusted 1963 1964 1965 1966 1967r/ 1967 1968 Sept. Oct. Nov. Dec. - Jan.E./* 1967 - Sept. Oct. Nov. Dec.r/ 1968 - Jan.&/* 29,100 28,957 32,067 19,465 38,838 11 072 10 579 8,,498 3,,625 10;,552 1,721 -493 -2,081 -4,873 6,927 18.4 -4.5 -19.7 -57.3 191.1 3,255 4,236 3,582 2,557 5,082 217 981 -654 -1,025 2,525 7.1 30.1 -15.4 -28.6 98.7 14,773 14,142 19,987 13,283 23,204 2,156 2,165 1,873 3,200 2,192 1 ,193 495 582 1 ,615 -216 562 541 -32 -117 -400 89.1 550 210 321 620 262 177 121 67 -40 -171 47.5 60.3 26.4 -6.1 -39.5 413 1,460 970 965 2,146 2,148 3,123 4,194 1,647 4,051 831 742 331 503 koi 534 574 -60 -211 -348 179.8 341.7 -15.4 -29.7 -46.4 76.1 25.3 34.1 -61.8 -21.9 942 1,994 3,541 -1,058 3,271 v -- -5.2 -6.8 — -739. -4.8 -4.5 -631 5,845 41.3 -6,452 -32.3 9,921 74.5 785 2,026 • 1,532 -1,815 1,102 -- -65.3 -33.9 Seasonally Adi us ted 375 387 322 86 379 162 74 87 -139 -106 831 832.7 2,116 — 1,892 114.7 -19 -714 -17.9 1/ Commercial b a n W a t a ^ r ^ o f 3 t h e last Wednesday of month except June 30 and December 31; other ~™ data are as of the last day of the month. ______ o 2/ Data are for the net increase in savings capital at all operating S&L s. Source: FHLBB. 3/ Data are for the net increase in regular deposits--excluded ether deposits of a ~~ demand nature. Source: National Association of Mutual Savings Bank. . • # , 4/ Data are for the net increase in savings and time deposits adjusted at all commercial banks. FRASER - Source: Federal Reserve. Digitized for -- L O N G - T E R M BOND YIELDS, H I G H - G R A D E I CORPORATE A l l ^U.S \ GOVERNMENT f —* • 1 i STATE AND LOCAL GOVERNMENT Aaa 1963 1964 196,5 1968 Exhibit A -- Fare II Date I Corporate • Aaa 1/ 1959-60 - High 1966 - High - Low 1967 - High - Low 1968 - Feb. 2 9 16 23 Mar. ID /_ 1 State and U.S. Govt. I local long-term 2/| government Aaa 37 (per cent) 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) 6.12 6.11 6.10 6.09 6.09 5.15 5.17 5.13 5.14 5.19 3.65(9/24/59) 4.04(8/25) 3.39(1/13) 4.15(12/28) 3.25(2/9) 3.90 3.95 4.00 4.06 4,16 - . Spread between U.S. Govt, and | State and Corporate | local Aaa Aaa .59(8/5/60) .84(12/30) .14(2/18) .92 .44 .97 .94 .97 .95 on .92(4/22/60) 1.19(2/11) .77(9/2) 1.51 .74 1.25 1.22 1.13 1.08 1.03 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 years or more. „ 3/ Thursday figures. Only general obligation bonds are included; average term is ZO 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. L O N G - T E R M BOND YIELDS, LOWER GRADE Weekly CORPORATE Baa STATE AND LOCAL GOVERNMENT Baa •Moody's 1963 1 A / 1 1965 | ' 966 1968 Exhibit B -- Part II State and local govt. Baa 3/ Corporate Baa 1/ (per cent) Spread between Aaa aiid Baa State and Corporate local ROVt. 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) .81 1968 - Feb. 6.80 6.80 4.60 4.64 4.69 4.73 4.78 .68 .69 .69 .70 .71 2 9 16 23 Mar. 12./ Note: 6.79 6.79 6.80 For footnotes see Exhibit A. .84 .31 .31 .82 .63 1.08 .39 .62 .31 .81 .37 .70 .69 .69 .67 .62 EXHIBIT C Port 1 SHORT- AND INTERMEDIATE-TERM INTEREST RATES o. GOVERNMENT A 6 - M O N T H BILLS f 3 - 5 YEAR ISSUES v \\ F.R. DISCOUNT RATE 3/-M0NTH BILLS 1963 1964 1965 196b 1967 1968 Exhibit C -- Part II Discount rate 1959-60 - High Year end - 1965 1966 1966 - High Low 1967 - High Low 1968 - Feb. Mar. 4.00 4.50 4.50 4.50 4.50 4,50 4.00 4.50 4.50 4.50 4.50 4.50 . 2 9 16 1£/ 1/ weekly rate s h L 3-month bills U 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) 4.85 5.00 4.97 4.96 5.03 Yields r- - nonth bills 2/ (per cent) 3-5 C a issues 2/ jj 5.07(1/8/60) 4.66 4.92 5.92(9/23) . 4c 53(6/24) 5.50(12/15) 3.74(6/2) 5.00 5.22 5.14 r/5.16 5.21 Spread between yields on 3-mo. bills and yields on 6-mo. bills 13-5 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) 5.54 5.63 5.56 5.57 . 5.60 Revised. £/ 1.81 .43 .06 -12 .52 = 09 .62 .01 Preliminary. .78 .01 1.61 .02 .15 .69 .17 r/.20 .59 .22 .18 is that in ettect at end of period at the Federal Keserve Bank ot 1/ Marke^yield; weekly averages computed from daily closing bid prices. r/ .79 .19 Series of 3-5 .61 .61 .57 (EXHIBIT D. Pari 1 S H O U T - AND INTERMEDIATE-TERM INTEREST RATES, BANKS A N D OTHER PRIVATE BORROWERS Weekly Per cent PRIME RATE J- FINANCE COMPANY PAPER Directly placed : F.R. DISCOUNT RATE FEDERAL FUNDS 1963 1964 1966 v 1967 1968 Exhibit D — Prime rate 1/ Date Part II Finance company faper 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 r Feb. Mar. 5.00 4.50 5.00 6.00 5.00(3/4) 6.00(12/29) 5.50(12/1) 6.00 2 6.00 9 6.00 16 6.00 23 l£ ' 6.00 5.13(1/22/60) 4.06 4.75 5.88 4.75(1/7) 5.75(1/6) 4.38(6/23) 5.25 5.25 5.25 5.25 5.25 4.00(5/13/60) 4.00 \ 4.63 5.63 3.55(1/21) 5.25(1/6).. 3.40(10/27) 4.65 4.73 4.59 r/4.694.70 - 1.02 .23 .28 1.08 .20 1.33 .21 .40 .25 .28 .29 .22 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, r/ Revised. £/ Preliminary. EXHIBIT E. Pon 1 STOCK MARKET 100 PRICES _ } STOCK MARKET CREDIT * CHANGE IN SERIES 4 Million! of i k o r e i I VOLUME , T I YIELDS 1963 1964 1965 1966 1967 Exhibit E — Stock price index 1/ 1961-62 - High Low 1966 - High Low 1967 - High Low Stock market customer credit Trading Common Customers' Bank volume 3/ stock debit bal- loans to Total (millions yields 2/ "others"5/ ances 4/ of shares) (per cent) (In millions of dollars) 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) 10,193 1968 - Jan. Feb. 95.04 90.75 3.10 3.28 11.9 9.2 1968 - Feb. 16 89.96 23 90.89 1] 2f 89.11 3.31 3.28 3.32 10.3 8.5 Mar. Part II 8.0 n. a. n. a. 4,259(12/61) 1,418(5/9/62) 3,253(1/61) 1,161(3/8/61) 5,835 2.241(7/6) 5,169 2,097(12/14) . 7,883(12/67) 2,507(11/1) 5,290(1/67) 2,055(1/25) 7,761 n. a. n.a. n.a. 2,432 n.a. 2,449 r/2,447 n.a. Not Available. p/ Preliminary. r? Revised. 1/ 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 Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve. Yields shown are for J.ites 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. i EXHIBIT F, Port 1 FEDERAL N A T I O N A L M O R T G A G E A S S O C I A T I O N S E C O N D A R Y MARKET O P E R A T I O N S 1 400 OFFERINGS 300; -Til I PURCHASES V 1001 \ \ SALES 1962 1964 1966 1968 Exhibit F - Part IT Date 1967 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1968 - Jan. Estin.H od offerings 1to FNMA | Purchases by Immediate S tandby j To ta 1 purchase FNMA commitment 1 67.9 24.4 26.9 17.8 78.7 229.1 232.8 261.0 168.3 260.6 324.7 209.4 212.6 (In millions of dollars) 125.0 .6 67.3 .2 84.2 24.2 50.9 26.7 72 20.6 .1 17.7 17.8 .2 78.5 ?6.9 228.8 .3 81.2 232.6 .2 198.3 2,60.6 .4 192.4 .4 167.9 215.1 260.1 .5 .6 186.9 324.1 200.1 206.6 2.8 .5 274.9 212.0 Sales by FNMA .2 -- .9 .8 1.5 6.0 .9 .8 .2 .3 .1 — * — L e s s than $50,000. 1/ Data represent unpaid principal balances of the mortgages involved, exclusive of premiums, discounts, or other charges. Offerings are amounts of applications received during the period from sellers proposing that FNMA execute purchasing contracts. An immediate purchase contract covers existing mortgages which the seller must deliver to FNMA within 45 days. A standby commitment contract relates to.proposed mortgages on housing not yet under construction which the: seller must usually deliver within one year. Purchases include those under . both immediate purchases anil standby commitment contracts. Data exclude FlfMA activity under Special Assistance and Management and Liquidating Programs. EXHIBIT G. Port 1 YIELDS O N NEW A N D SEASONED CORPORATE BONDS 6.5 Adjusted lo Aoo Boiii NEW ISSUES 6.0 5.5 5.0 SEASONED Aaa 4.5 4.0 1964 1965 1966 1967 1968 Exhibit G - II Yields on New Corporate Bond Issues Adjusted to an Aaa basis Number of issues Number of issues Am't. of issues Average yield included (mill. (per cent) of dollars) Monthly averages: 13 13 1968 - Jan. Feb. 6.24 6.29 567.0 564.5 2 9 16 23 Feb. Mar. Weekly averages: High 1 * 6.48(3/1/68) 6.18(1/12/68) ™ of the offerings included are denoted by an asterisk. 2/ Preliminary. * % Am't. of issues Average yield included (mill. (per cent) of dollars) 3 3 5 2 76 0 237.0 205.0 42.5 6.21 6.23 6.30 6.29 2 70.0 6.48 ' Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) 1968p/ e/ 1,750 e/ 1,600 e/ 1,800 January February March New CaDital Corporate 1967p/ 1966 1,188 858 865 1,553 1,058 2,364 1,1.11 ' 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 6,5846,092 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 r/7,945 " r/11,070 " r/14,529^ 6,146 8,640 11,304 1,302 1,237 2,446 April May June . 1,973 1,474 2,611" July August September October November December e/ 5,160 Quarter Quarter Quarter Quarter 1st half Three quarters Year e/1,150 e/1,200 e/1,100 1,482 1,194 1,439 1,648 1,3992,317 . 1st 2nd 3rd 4th State and local 2/ 1966 1968p/ 1967 r/ e/3,450 Excluding finance companies 3/ 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 5,207 5,913 6,338 ? 17,269 I i Year e/ J>/ 1/ "if 2/ 4,924 4,884 3,969 3,188 Estimated by Fedi Preliminary, r/ Revised. Securities an3 Exchange Commission estimates of net proceeds. Investment Bankers Association of America estimates of principal amounts. Total new capital Issues excluding offerings of sales and consumer finance companies, -it- Exhibit I New Cor-03 ~.t:e Security Issues, Type of Issue and Issuer (In millions of dollars) Quarter or Month S 1966 - III IV Net proceeds Gross proceeds for new capital for new capital 1/ and refunding 1/ Common Memo: Bonus Total Mfg. Public CommuniForeign Publicly Privntp.ly and Utility cations ids issues pfd. Pla< cJ Offered stock included 567 657 1,558 154 314 1,627 2,256 4,197 417 984 1,232 117 375 1,247 2,047 3,669 s 1967 - I II ins/ IV 2/ Jan. Feb. Mar. Apr. May June July r j Aug. Sept. Oct. Nov. Dec._ Jan. 5' SOURCE: 5,464 3,263 6,208 4,017 6,833 • 4,604 6,294 3,107 1,684 1,418 2,362 2,016 1,519 2,673 2,589 2,481 1,763 2,409 1,500 2,385 1,810 745 900 1,,618 1,,368 965 1,,684 1,,889 1,,813 902 1:,375 645 I ,087 885 1,811 ly.hS l,b51 2,137 848 362 601 410 396 659 r/486 "" 418 647 566 551 1,020 700 390 726 678 1,051 91 156 143 238 158 330 214 250 214 469 304 278 225 Securities and Exchange Commission. -n- 60 65 234 93 2,642 3,014 2,792 2,527 997 1,268 1,219 1,255 35 10 15 16 32 17 213 13 8 34 19 40 n.a. 624 563 1,254 1,128 588 1,298 925 1,229 637 906 512 1,109 /45 220 274 503 394 403 471 446 509 265 573 404 278 405 543 548 595 269 293 105 145 107 91 350 39 356 100 119 82 68 150 Exhibit J Other Security Offerings (In millions of dollars) Gross Lonfi-term 1/ Federal Agency 3/ Foreign Government 2/ 1965 1966 19b 7 1965 1967 1966 .January February March 'April May June July August September . October November December -January • February March April May June July August September October November December £/ 196 18 1,656 597 223 27 13 170 22 586 193 66 142 503 410 392 699 1,030 1,084 799 400 450 800 239 129 185 325 .91 33 74 .5 52 75 2 1,251 783 750 f 50 tilO 650 407 250 599 708 710 612 661 8,180 6,806 2,732 218 12 40 40 66 69 76 72 7 50 23 74 68 38 73 Stare nH local Government 5/ 238 103 m 91 39 387 -458 -194 -319 647 580 827 204 462 515 -82 -334 -128 119 -103 219 408 270 593 152 200 -161 • . " 59 -48 464 274 503 50 -366 * -570 -431 —— — •-- 775 -- 239 150 375 375 179 short-term 4/ Federal Agency 3 / ^ 308 -179 -174 -552 -24 117 -454 450 -11 718 -559 509 109 85 237 284 93 132 -590 -158 206 -262 >270 105 1,407 -652 -309 606 -555 202 573 -283 219 -76 .36 wastt Year 2,281 Reserve, n. a. -- Not available. ... 1,286 422 -SV . 660 310 801 Exhibit K u r g e Long-tern Public Security Issuer for New C.plt.1 (Other then U. S. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) Total 1967 - Jan. Feb. Mar. Apr. May J une July Aug. Sept. Oct. Nov. Dec. 1968 - Jan. Corporate Bond# Convertible (other than bonds convertible.-*) 681 842 1,638 1,311 870 1,666 1,340 1,705 794 1,458 826 978 904 Large Issuer 611 709 ,435 I, 956 771 ,072 1 890 1 ,288 473 897 461 460 652 Stocks 40 93 63 142 44 185 133 67 65 276 215 81 85 30 40 140 213 55 409 317 350 257 285 150 437 168 State and local governments Other 2/ 230 530 L,000 540 391 825 85 221 400 50 845 627 1.095 947 675 669 512 496 875 483 473 847 505 865 633 785 individual issues Offered During February, 1968. Type £/ Amount (millions of dollars) Maturity U.S. Smelting Refining & 60.0 Conv. debs. Mining Company Southern California 100.0 1st mtg. bds. Edison Company Michigan Bell Telephone 125.0 Company , Debs. 30.0 United Nuclear Corporation Conv. debs. N.Y. State Electric and 30.0 Pfd. stk. Gas Company 25.0 1st mtg. bds. Gulf States Utilities Co 31.0 Com. stk. Gulf States Utilities Co 15.0 Debs. Dallas Power & Light Co. 40.0 1st mtg. bds. Potomac Electric Power 1st & ref. mtg. Duke Power Company 75.0 bds. 50.0 S.F. debs. International Harvester Co. 35.0 1st mtg. bds. Duquesne Light Co. V3 Coupon rate or net intereat cost Offering yield Rating 1993 5-3/4 5.75 B 1993 6.42 6.35 Aa 2005 1998 6.38 5 6.32 5.00 Aaa 1998 6.52 6.45 Aa 1993 2003 6.70 6.54 6.60 6.50 Aa Aa 1998 1998 6-3/8 6-1/4 6.32 6.25 Aaa Aa 1998 6-3/8 6.30 Aaa K-2 Large Individual Issues Offered During February. (Cont'd) Type 3/ Amount (millions Maturity of dollars) Corporate (Cont'd') Ohio Power Company Texas Eastern Transmission *Potomac Electric Riegle Textile Corp. 1st mtg. hds. Debs. Com. stk. Conv. sub. debs. *0.0 50.0 15.8 15.0 Coupon Offerrate or ing net interYield est cost 1998 1988 6.68 7 6.60 7.09 Aa Ba 1993 5 5.70 Baa State & local Government G.O. Memphis, Tennessee . Los Angeles Convention Rev.-Rent. Authority, California G.O. State of South Carolina N.Y* State Housing Finance Rev. -Rent. Agency Colorado Springs Sch. Dist. G.O. #11, Colorado San Francisco B.A.R.T. G.O. Special Service Dist.#l Minneapolis-St. Paul Comm., Rev.-Re.iS. Minn. Georgia Education Authority Rev. -Rent. G.O. State of Connecticut Rev.-Q.-Jt. New Orleans, Louisiana G.O. Philadelphia School Dist. G.O. New York State G.O. Dallas,, Texas Rev.-Q.-Ut. " Dallas, Texas G.O. Charlotte, North Carolina Rev. -Q. -Ut. Port of New York Auth. itev.-Rent. Hamilton Co., Ohio Chesterfield, Co., G.O. Chesterfield, Virginia Other New Brunswick Electric Power Commission Federal Home Loan Bank Board "Montreal Canadian Pacific Railway F.N.M.A. Rating 4.04 3.25-4.40 Aa 18.0 1973-2003 4.76 v 3.73 4.25-4.80 3.10-3.75 A Aaa 81.0 1968-98 4.78 3.40-4.75 1969-88 4.22 3.40-4.25 Aa . 12.0 1970-98 4.47 3.70-4.60 Aa 16.0 1971-98 3.60-4.50 3.70-4.60 3.40-4.13 3.60-4.70 3.70-5.00 3.40-4.10 3.35-4.30 3.20-4.40 3.30-4.70 5.05 3.70-5.00 Aa Aa Aaa A A Aa Aa Aa Aa A 3.40-4.40 A 30.0 1969-93 13.0 14.8 1969-82 12.1 1969-93 44.0 1971-2002 4.38 4.48 4.09 4.64 4.63 5.00 4.24 4.36 4.24 5 4.94 14.6 1969-88 4.33 S.F. debs. 15.0 1993 6-7/8 7.00 A Consol. notes S.F. debs. Equip, tr. cert. Debs. 65.0 25.0 1970 1988 1983 1971 6.00 7.18 6.90 6 5.93 7.06 6.90 6.02 A Aa 18.0 1971-92 50.0 1970-88 12.0 1969-87 45.0 1970-93 80.0 1969-88 20.0 1969-88 10.0 1968-88 100.0 2003 20.0 263.7 -2% -- . -- K-3 FOOTNOTE: * Rights offering. 1/ Includes corporate and other security offerings of $15 million anfl over; State and local security offerings of $10 million and over. 2/ Includes foreign government and International Bank for Reconstruetion and Development issues and non-guaranteed issues by Federal AgencLes. 3/ In the case of State and local Government Securities, G.O. denotes general obligation; Rev.-Ut., revenue obligations secured only by income :Eran public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-uti1ities; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. H. 14 Exhibit L Forthcoming Large Long-term Public Security Offering for Maw Capital (Other than U.S. Treasury) 1/ Expected Proceeds from Forthcoming Large Issues (In millions of dollars) During month following date shown State and Other 2/ Corporate locml govt. Jan. 31 Feb. 28 Mar. 31 Apr. 30 May 31 June 30 July 31 Aug. 31 Sept.30 Oct. 31 Nov. 30 Dec. SI Jan. 31 486 1,410 767 . 963 1,449 1,636 1,261 694 • 534 1,357 826 968 531 780 S08 .'27 326 596 401 512 783 768 505 865 633 449 Corporate 706 1 ,534 905 1 ,262 2 ,065 1 ,922 1 ,576 1 ,335 1 ,090 2:,694 2,,129 15,892 736 530 250 70 100 40 100 65 50 845 402 60 Forthcoming Large Offerings as of March 1. (millions Issuer Subsequent to date shown State and lfcel jjgrt. Other 545 265 15 85 115 70 150 159 126 260 875 502 75 851 528 247 346 616 402 575 903 889 743 1 ,684 1,,076 937 (Cont'd) Approximate date of offering dollars) Corporate Baxter Laboratories, Inc. Tenneco, Inc. Diversified Metals Philadelphia Electric Co. *Uriion Tank Car ,*Sunds tr and Corporat ion Graphic Sciences . General Telephone of the Southwest Pioneer Natural Gas Consolidated Edison Utah Power & Light Co. i Pacific Gas & Electric t Louisiana Power & Light Co. <*Kansas City Power & Light Co. *Hawaiian Telephone ^Houston Lighting and Power Co. *American Broadcasting Company * *United Utilities Conv. sub. debs. Cum. pfd. stk. Conv. sub. debs. 1st mtg. bds. Equip, tr. cert. Conv. sub. debs. Conv. debs. 25.0 98*2 20.0 60.0 20.0 30.0 15.0 March March March March March March March 5 5 11 11 12 12 12 1st mtg. bds. 1st mtg. bds. Cum. pfd. stk. 1st mtg. bds. 1st & ref. mtg. bds. 1st mtg. bds. 1st mtg. bds. 1st mtg. bds. 1st mtg. bds. Conv. sub. debs. Conv. debs. . 25.0 15.0 93.1 20.0 50.0 35.0 25.0 20.0 35.0 75.0 50.6 March March March March March March March March March March March 13 14 lS(rts. exp 19 20 21 27 28 28 L-2 Forthcoming Large Offerings as of March 1, (Cont'd) Issuer Type Amount (millions of dollars) Approximate date of ofiiiiring Corporate (Cont'd) White Motor Corporation *White Motor Corporation Mcculloch Oil Corp. of Calif. Montana Power A.M.K. Corporation Conv. debs. S.F. Debs. Conv. sub. debs. 1st mtg. bds. Debs. 25.0 25.0 15.0 30.0 30.0 Indefinite Indefinite Indefinite Indefinite Indefinite State & local Government Rev. -Rent. •Ft. Lauderdale, Florida State of Hawaii G.O. 1 Prince Georges Co., Maryland G.O. Illinois Building Authority Rev.-Rent. Bonds Housing Assistance Admin. Los Angeles Dept. of Water and Power Rev. -Ut. State of Minnesota G.O. Pennsylvania State Sch. Bldg. Authority Rev.-Rent. Anne Arundel Co., Annapolis, Maryland G.O. •State of Maine G»0. Peralta Jr. Coll. Dist., Cal. G.O. •St, Louis County, Mo. G.O. 'Rochester, New York G.O. •Cleveland City School Dist. G.O. 'State of Alaska G.O. Chester Co., South Carolina Rev.-Rent. Kentucky Turnpike Auth. Rev. -Q. -Ut. Calcasieu Parish, La. Rev.-Rent. 11.5 30.0 24.0 35.4 143.8 March March March March March 5 5 5 5 6 24.0 33.8 March„ - 6 March 12 40.0 March 12 12.0 11.7 18.5 25.5 16.2 15.0 15.5 35.0 120.0 62.7 Marc n 12 March 12 March 12 March 21 March 26 March 26 March 27 Indefinite Indefinite Indefinite 15.0 Indefinite Other New Zealand 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 Dev<ilopment issues and non-guaranteed issues of Federal Agencies. York's NOTE: State of Ohio's $75.0 million G.O. issue — all bids rejected. Albany, N $70.0 million issue postponed due to "market conditions". -2^- Exhibit M Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Date Amount (millions of dollars) Issuer and Description of Issue A. . Public Offerings Sold: Jan. 1 through Mar. 1, 1968. 1/11 60.0 Quebec Hydro - Electric Commission 6-7/8% debentures maturing 1989, reoffered to yield 7.00%. , 1/23 35.0 Province of Nova Scotia — 7% S.F. debentures 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 R a i l w a y — 6.90% equipment trust certificates — maturing March .1, 198) reoffered to yield 6.90%. B. Indefinite 15.0 Prospective Offerings New Z e a l a n d — Bonds *** * - Included in table for first time. ** - issues sold to investors outside of U.S. *** - Issue subject to interest equalization tax. . f: M-2 PART II: Private Placements - Reported January 1 through March 1, 1968, Date Reported Amount (millions of dollars) Issuer and Description of Issue 1/1/68 1.5 Nicaraguan Hotel Co. — U.S. guaranteed 6% note, maturing June 1, 1987. 1/8/68 12.0 Republic of Portugal -- notes due L968. 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. Aluminio, S.A. de C.V. (Mexico) U.S. debentures — 7-1/2%, maturing 1980. 2/26/68 3/1/68 12.0 Edmonton (City of Alberta, Canada)L U.S. 6-3/4% debentures maturing Jan., 1993. 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 relatic nship 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 taledown. Full or partial takedown may take place both prior and subsequent to the date a placement is reported. -S»h •Lf