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