Full text of H.16 Capital Market Developments : May 18, 1964
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Not f o r P u b l i c a t i o n DECONTROLLED AFTER SIX MONTH H. 14 -j f May 18, 1964. CAPITAL MARKET DEVELOPMENTS IN THE UNITED STATES' S P u b l i c s e c u r i t y f i n a n c i n g t o o b t a i n new c a p i t a l d e c l i n e d a p p r e c i a b l y l a s t week from t h e v e r y s u b s t a n t i a l volume of t h e week b e f o r e , and i s e x p e c t e d t o remain a t a b o u t t h i s lower l e v e l d u r i n g t h e c u r r e n t week. L a s t week, ended May 1 ^ . t h r e e l a r g e c o r p o r a t e i s s u e s t o t a l i n g $94 m i l l i o n and f i v e t t f r g e S t a t e and l o c a l government bond i s s u e s w i t h p a r v a l u e of $69 m i l l i o n were s o l d . T h i s week, ending May 22, f o u r c o r p o r a t e i s s u e s w i t h g r o s s p r o c e e d s of $131 m i l l i o n a r e s c h e d u l e d f o r o f f e r i n g , b u t only two l a r g e S t a t e and l o c a l i s s u e s amounting t o $26 m i l l i o n a r e on t h e c a l e n d a r . Bond y i e l d s . Y i e l d s on seasoned l o n g - t e r m bonds were mixed l a s t week. Both U. S. Government and A a a - r a t e d S t a t e and l o c a l government bond y i e l d s f e l l two b a s i s p o i n t s t o 4 . 1 6 and 3 . 1 0 p e r c e n t , r e s p e c t i v e l y . Lower-grade m u n i c i p a l y i e l d s , however, edged up a b a s i s p o i n t t o 3 . 5 5 p e r c e n t . While y i e l d s on seasoned c o r p o r a t e bonds were unchanged, t h e a v e r a g e y i e l d op o f f e r i n g s of new. c o r p o r a t e bonds^ ' ( a d j u s t e d t b r a n : A a a b a s i s ) 1 dropped e i g h t b a s i s p o i n t s to 4.45 per c e n t . This d e c l i n e apparently r e f l e c t e d r e c e n t s t r e n g t h e n i n g of t h e a l r e a d y d e v e l o p i n g market consensus t h a t n e a r term advances i n l o n g - t e r m i n t e r e s t r a t e s a r e u n l i k e l y . S h o r t - and i n t e r m e d i a t e - t e r m i n t e r e s t r a t e s . The y i e l d on 3-month b i l l s d e c l i n e d two b a s i s p o i n t s l a s t week t o 3 . 4 7 p e r c e n t , and t h a t on 6-month b i l l s was down f o u r b a s i s p o i n t s t o 3 . 5 9 p e r c e n t - - t h e l o w e s t l e v e l s i n c e e a r l y l a s t November. Y i e l d s on intermediate-term Treasury obligations declined s i x basis points to 4.04 per cent. The a v e r a g e e f f e c t i v e r a t e on F e d e r a l f u n d s c o n t i n u e d a t 3 . 5 0 p e r c e n t , and most o t h e r money market r a t e s were a l s o unchanged. Mortgage y i e l d s and c o n v e n t i o n a l mortgage r a t e s . Secondary market y i e l d s on FHA-insured 2 5 - y e a r , 5 - 1 / 4 p e r c e n t mortgages cont i n u e d a t 5 . 4 4 p e r c e n t i n A p r i l . Except f o r a temporary d e c l i n e of 1 - b a s i s p o i n t l a s t autumn, t h i s a v e r a g e has been t h e same f o r t h i r t e e n c o n s e c u t i v e months. C o n t r a c t i n t e r e s t r a t e s f o r c o n v e n t i o n a l f i r s t mortgages on new homes were a l s o unchanged i n A p r i l , a t 5 . 8 0 p e r c e n t , a c c o r d i n g t o t h e F e d e r a l Housing A d m i n i s t r a t i o n . But comparable r a t e s f o r e x i s t i n g homes r o s e from 5 . 8 5 p e r c e n t t o t h e y e a r - e a r l i e r a v e r a g e of 5 . 9 0 p e r c e n t . C o n v e n t i o n a l mortgage r a t e s e s t i m a t e d by t h e F e d e r a l Housing A d m i n i s t r a t i o n a r e rounded t o t h e n e a r e s t f i v e basis joints. H. 14 S t o c k market c r e d i t . T o t a l customer c r e d i t i n t h e s t o c k m a r k e t r o s e $173: m i l l i o n d u r i n g A p r i l t o $7.3 b i l l i o n a t t h e month-end. Most of t h i s g a i n was a t t r i b u t a b l e t o an i n c r e a s e of $144 m i l l i o n i n c u s t o m e r s ' d e b i t b a l a n c e s ( e x c e p t on U. S. Government s e c u r i t i e s ) ; bank l o a n s t o o t h e r t h a n b r o k e r s or d e a l e r s f o r p u r c h a s i n g o r c a r r y i n g s e c u r i t i e s ( o t h e r than U. S. Governments) went up $29 million, 'vlhdeterminant b u t p r o b a b l y s u b s t a n t i a l amounts of c r e d i t were extended i n s u b s c r i p t i o n a c c o u n t s i n c o n n e c t i o n w i t h t h e r e c e n t common s t o c k o f f e r i n g by AT&T. R e v e r s i n g t h e downward t r e n d t h a t had p r e v a i l e d s i n c e l a s t December, money borrowed by member f i r m s of t h e New York Stock Exchange on c u s t o m e r s ' c o l l a t e r a l i n c r e a s e d $270 m i l l i o n i n A p r i l . C u s t o m e r s ' ' n e t f r e e c r e d i t b a l a n c e s , on t h e o t h e r hand, f e l l $66 m i l l i o n . More d e t a i l e d i n f o r m a t i o n on s t o c k market c r e d i t d u r i n g r e c e n t months i s shown i n t h e t a b l e on t h e f o l l o w i n g page. 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 composite i n d e x of 500 s t o c k s , changed l i t t l e on b a l a n c e l a s t week t o c l o s e a t 8 1 . 0 1 on May 15, only s l i g h t l y below t h e new peak r e a c h e d e a r l i e r i n t h e week. T r a d i n g volume averaged 5 . 1 m i l l i o n s h a r e s a d a y , down 0 . 3 m i l l i o n s h a r e s from t h e a v e r a g e f o r t h e p r e v i o u s week. More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g r e c e n t c a p i t a l market developments i s p r e s e n t e d i n t h e a t t a c h e d e x h i b i t s . C a p i t a l Markets S e c t i o n , D i v i s i o n of Research and S t a t i s t i c s , Board of Governors of t h e F e d e r a l Reserve System. 3 H. 14 STOCK MARKET CREDIT ( I n m i l l i o n s of d o l l a r s ) Total, except on U.S. Govt. sccuritics Months Outstanding! 1955-56 High 1957-58 Low 1959 1960 1961 1962 1963 - High Low High Low High Customer c r e d i t Net d e b i t balances w i t h NYSE member firms secured b U.S. Govt. Other sec. Broker and Dealer cir e d i t Bank loans to o t h e r s than b r o k e r s and dealers for purchasing arrvine U.S. Govt. Other on Other U.S. Govt. Cust. Other sec. c o l l . c o l l . ' 4,047 (5/56) 3,554 (1/58) 4,764(4) 4,142(5) 5,602(12) 4,876(7) 7,298 (11) 1963 - Dec. 1/ 7,241 7,314 1964 - Apr. Changes i n Outstanding: 224 1963 - Apr. May 251 - 191 July 91 149 Aug. Sept . 311 209 Oct. 118 Nov.1/ Dec.1/ -56 8 1964 - J a n . 1/ -130 Feb. 21 Mar. Apr. 173 163 28 168 95 77 23 41 26 21 42 1,344 188 252 139 101 28 '69 2,044 1,801 2,572 1,856 3,892 318 237 385 235 597 1,069 (1/55) 807 (4/57) 1,257(3) 940(4) 1,508(4) 1,091(9) 1,211(11) 1,727 1,804 32 17 3,852 3,916 597 495 1,210 1,165 29 40 30 94 10 29 30 27 15 -1 10 39 29 -30 -25 155 71 -99 -11 42 -3 60 32 -182 5 72 3 26 -35 -17 -23 -33 87 -4 35 -1 52 -63 32 -66 2,823 (12/56) 2,482 (12/57) 3,401(4) 3,004(7) 4,259(12) 3,562(7) 5,586 (11) 169 133 132 80 140 1,255 (4/56) 1,060 (U/57) 1,373(5) 1,121(5) 1,377(8) 1,269(9) 1,727 (12) 5,514 5,510 140 101 -1 -24 29 -23 6 -1 -3 7 50 -32 -11 195 -1 211 -3 8 161 -3 -7 -2 /•" 139 . 282 18 -12 179 91 5 -8 -71 9 -4 -1 -140 -18 144 48 21 4 Cus tomere 1 net free .credit balances Money borrowed 113 11 -15 -6 46 -36 -5 4 9 -8 -15 -1 1,873 135 261 183 26 108 125 121 179 -40 -57 -57 r / -92 r / 270 430 change by member f i r m s c a r r y i n g margin a c c o u n t s . Bank loans t o o t h e r s than b r o k e r s and d e a l e r s f o r purchasing and c a r r y i n g s e c u r i t i e s a r e f o r weekly r e p o r t i n g member banks. Net d e b i t balances and customer f r e e c r e d i t b a l a n c e s a r e as of the end of t h e month; bank loans and money borrowed a r e r e p o r t e d f o r the l a s t Wednesday of the month. Numbers i n p a r e n t h e s i s denote month of y e a r . 1/ November 1963 d a t a on customers 1 n e t d e b i t b a l a n c e s do not i n c l u d e accounts c a r r i e d by a l a r g e former member f i r m in l i q u i d a t i o n ; most of t h e s e accounts have been t r a n s f e r r e d to o t h e r member f i r m s and a r e r e p o r t e d i n t h e i r d e b i t f i g u r e s from the month r e c e i v e d (some i n December, more i n January 1964). Debit b a l a n c e t o t a l s f o r t h e p e r i o d from October 1963 through January 1964, t h e r e f o r e , a r e not completely comparable. EXHIBIT A._fa, L 6 N G - T E R M B O N D YIELDS, H I G H - G R A D E JJL Exhibit A - Part I I Corporate Aaa 3 / U . S . Govt, long-term 2 / S t a t e and local government AaaV (per cent) 1959-60 - High 1961 - High Low 1962 - High Low 1963 - High Low 1964 - High Low Apr. 17 Apr. 24 May 1 May 8 vMay 15 j>/ Spread between U. 8 . Govt, and Corporate S t a t e and l o c a l Aaa lie61(1/29/66) 4.46(9/15) 4.21(3/17) 4*43(2/16) U.23(l?/2# U.37(W27) 4.19(3/29) 4.41(5/15) 4.35(2/28) 4 . 4 2 (l/e/60) 4 . 0 7 (12/29) 3.70(5/12) 4.12(2/23) 3.85(12/28) 4.16(12/27) 3.87(1/18) 4.20(4/17) 4.14(2/21) 3 . 6 5 (9/24/59) 3.37 (7/6) 3 . 1 2 (2/23) 3 . 2 6 (1/4) 2 . 8 8 (11/8) 3 . 1 8 (13/21) 2 . 9 3 (3/28) 3.16(3/26) 3.07(2/20) .59 .57 .34 .17 .30 .35 .21 .25 .19 .92 .76 .46 1.04 .80 1.05 .88 1.09 1.02 4.40 4.41 4.41 4.41 4.41z 4.20 4.19 4.19 4.18 4.16 3.11 3.10 3.12 3.12 3.10 .20 .22 .22 .23 .25 1.09 1.09 1.07 1.06 1.06 f Preliminary. Weekly average of daily figures. Average tern of bonds Included i s 22-24 years. Weekly average of daily figures, the series includes bonds due or callable in 10 years or mora. y Thursday figures. Only general obligation bonds are included* average tern i s 20 years. Note.—Highs and lows are for individual series and may be on different dates for different series. Tor spreads, high refers to widest, and low to narrowest. for FRASER Digitized EXHIBIT B. Pari I LONG-TERM BOND YIELDS, LOWER-GRADE •c/—^ Bxhibit B - Part I I Date Corporate Baa 1 / S t a t e and local govt. Baa ^ Spread between Aas and Bae S t a t e and Corporate local govt. (per cent) 1959-^0 - High 1961 £ High Low 1962 - High Low 1963 - High - Low 1961* - High Low 5.3^(2/12/60) 5.13(10/27) 5.00(4/21) 5.11(1/5): u.92(12/21) lt.93(l/4) it.83(u/25) 4.86(5/15) 4.82(2/7) U.U6(a/7/60) 4.16(3/23) 3.93(U/9) l*.0l*(Vn) 3.52(5/17) 3.63(6/27) 3.52(5/23) 3.58(3/26) 3.50(5/7) .81* .81 .66 .71* .63 .71 .1*8 .48 .44 1.08 .93 .57 .82 .56 .63 .U* .49 .36 Apr. 17 Apr. 24 May 1 Hay 8 May 15 £ / 4.85 4.85 4.85 4.86 4.86 / 3.51 3.52 3.52 3.54 2/ 3.55 .45 .44 .44 .45 .45 .40 .42 .40 .42 .45 Notes Tor footnotes see Exhibit A# , S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST R A T E S , G O V E R N M E N T \ l\A _6.M0N!H III Market Yl. 1-5 yeai issues V I V A v ^ / , tew , A J K £ JI-MOHTH IIUS Market Yield: 1 1 II 1 1 M l 11 1 1 1 1 1 1 1 1 1 1 "to Htl 1 1 1 1 1 1 1 IIIIII1 1 1 1 1 1 1 1 1 Mil 19 44 Ittl E x h i b i t C - Part I I Discount rate Date y 1959-60 - High 1961 - High Low 1962 - High Low 1963 - High Low 196U - High Low Apr. 17 Apr. 24 1 May 8 May May 15 £/ 4.00 3.00 3.00 3.00 3.00 3.50 3.00 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3-month bills 2/ U. 59 (1/8/60) 2.97(7/13) 2.65(6/8) 3.55 (u/13) 2.88(3/15) 3.56(3/6) 3.45(5/1) 3.47 3.45 3.45 , 3.49 3.47-/ % Yields 6-month , b i l l s 2/ (per cent) f - J S U 3-5 year issues 2/ Spread between y i e l d s on 3 month b i l l s and y i e l d s on 6-iao. b i l l s 1 3 - 5 y r . i s s u e s 5.00(12/24/59) .79 3.15(5/12) .12 3.86(8/11) . a 1.81 1.51 .92 2.35(4/28) 3.13(7/20) 2.7U(6/e) 3.68(12/6) 2.93(3/8) 3.74(3/6) 3.59(5/15) 3.10.(12/28) U.07 (12/27) 3.Ult(Vis) 4.23(3/27) ,3.99(2/7) .17 .0U • 21 .70 .11 .48 3.67 3.64 3.60 3.63 3.59 4.18 4.16 4.14 4.10 4.04 .20 .19 .15 .14 .12 .71 .71 .69 .61 .57 3.88(2/2) .2U .02 Weekly rate shown i s that i n effect at end ef period at the Federal Reserve Bank of New York. Market yieldj weekly averages computed from daily closing hid prices. Series of 3-5 year issues consists of selected notes and bonds* Note.—Highs and lows are for individual series and may be on different dates for different series* For spreads, high refers to widest, and low to narrowest. E XHIBI1 D, P - i l I SHORTBANKS AND AND I N T E R M E D I A T E - TERM INTEREST RATES, OTHER PRIVATE BORROWERS j p i (« ctl y Placet /w'lr'vy y Exhibit D - Part II Stock exchange j Prime c a l l loan 1/ (rate l / Date F i n a n c e companypaper 2/ Federal funds 3/ Spread between 3-mo, b i l l s and finance co. paper (per cent) 5.5a 196U - High Low U.50 U.5o U.So 4.50 4.50 5.00 U.50 U.50 U.50 U.50 U.50 U.50 4.50 4.50 5.13(1/22/60) 3.00(12/30) 2.50(8/5) 3.25(7/21) 2.68(6/1) 3.88(12/27) 3.3W31) 3.93(4/3) 3.75(5/15) U . 0 0 (5/13/60) 2 . 9 0 (11/17) .U3 ( V 2 7 ) 3 . 0 0 (12/28) 1 . 3 0 (3/26) 3 . 5 0 (12/27) 2.U5 (7/26) 3.50(5/15) 3.20(3/6) Apr. 17 Apr. 24 May 1 May 8 May 15 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 3.75 3.75 3.75 3.75 3.75 3.50 3.45 3.42 3.50 3.50 1959-60 High 1961 - High Low 1962 - High 19.63 - High £./ h.50 U.50 U.50 1/ 1.02 .56 .11 .U5 .19 .39 .12 .41 .22 .28 .30 .30 .26 .28 Weekly rate shown i s t h a t i n e f f e c t at end of p e r i q d . Stock Exchange c a l l loan rate i a going rate on c a l l lpans secured fcy customers' s t o c k exchange c o l l a t e r a l a t New York City banks. Prima rate i s t h a t charged hy l a r g e hanks on s h o r t - t e r m loans t o b u s i n e s s borrowers of the h i g h e s t c r e d i t standing. 2J Average of d a i l y rates published by f i n a n c e companies f o r d i r e c t l y placed p a p e r f o r varying m a t u r i t i e s j i n the 90-179 day range, 3 / Weekly average of d a i l y e f f e c t i v e r a t e , which i s the r a t e f o r t h e h e a v i e s t volume of purchase and Digitized for saleFRASER t r a n s a c t i o n s as r e p o r t e d t o t h e F e d e r a l Reserve Bank of New York. Note:---Highs and lows are f o r i n d i v i d u a l s e r i e s and nay be on d i f f e r e n t d a t e s f o r d i f f e r e n t s e r i e s . http://fraser.stlouisfed.org/ For s p r e a d s , high r e f e r s t o w i d e s t , and low to narrowest# Federal Reserve Bank of St. Louis STOCK MARKET 1 om ol dollan ' ^ / / ^ 1 STOCK Mlllll CHOI! "i ^HAHGI IN SHIES Millions ol 1 ha VOlUMt _ x P a J \ J N ^ J \ f ^ • J - L L - J - L U -LL U - L L L -LLI JJ--LL.L Exhibit E - Part I I Stock p r i c e index ] / . Common Trading stock volume 3 / yields 2/ (millions ( p e r c e n t ) of s h a r e s ) 1961-62 - High Low 1963 - High 196k - High Low 72.01.(12/8/611 $2.68(6/22/62) Ik.hkiWzj 81.01(5/15) 75.50(1/3) 3.01 3.00 3.09 March April May 1 May 8 May 15 £ / 78.80 79.94 80.17 81.00 81.01 3.03 3.00 2.99 2.96 3.00 2.80 3.96 10.1 2.U 6.5 6.1 4.3 5.4 5.6 5.5 5.4 5.1 market credit Customers 1 Bank debit balloans to ances "others" JiL (In millions of d o l l a r s ) Total 5,602(12/61)1*,2*9(12/61) U,it2U(V61) 3,253(V61) 7,298(1V63)5,586(1V63) 7,314(4) 5,524(1) 7,120(2) 5,366(3) 1,148(5/9/62) 1,161(3/8/61) 1,738(12/25) 1,810(4/15) 1,720(1/22) 7,141 7,314 1,775 1,804 1,804 1,808 5,366 5,510 n.a.—Not available. ja/ Preliminary. y Standard and Poor«s composite index of 500 cannon 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* y Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve. Yields shown are for dates on which price index .reached i t s high % ^ 4/ Averages of daily trading volume on the New York Stock Exchange. End of month figures for member firms of the Hew York Stock Exchange which carry margin accounts; excludes balances secured by U. S. Government obligations. 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 For further detail see Bulletin. Digitizedothers. for FRASER 5/ MORTGAGE A N D B O N D YIELDS Monthly - Exhibit F - Part I I Conven- Spread b e FHA t i o n a l tween y i e l d s , on conv. & gages m o r t gages3/ FHA m t g s . 2/ 1956 1957 1958 1959-60 1962-63 - Low - High -Low - High - High Low 1964 - J a n u a r y February March April Aaa C o r p o r a t e Newhi Seasoned!/ Spread b e t w e e n - y i e l d s on new c o r p o r a t e bonds and FHA mtgs. 4.68 5.63 5.35 6.24 5.72 5.43 5.20 6.00 5.55 6.30 5.95 5.80 .47 .47 .15 .23 .38 .23 3.08 4.94 3.65 5.25 4.72 4.12 3.08 4.12 3.57 4.61 4.45 4.22 .76 1.58 .88 1.69 1.50 .95 5.44 5.44 5.44 5.44 5.80 5.80 5.80 5,80 .36 .36 .36 .36 4.50 4.38 4.43 4.48 4.37 4.36 4.38 4.40 .94 1.06 1.01 .96 Seasoned b d s . 1.03 .05 .73 .39 -.16 .13 .02 .05 puted as equival=z 1/ IX vniuoev uvuo . ---r_ ' , ,—' , as Burning 25-year mortgages are paid off in 12 jwara. Dashed lines indicate periods of adjustment to changes in the contractual interest rate. http://fraser.stlouisfed.org/ Wbody"a"Invomtw^Service. Monthly averages Federal Reserve Bank of St. Louis of daily data. See tofaifcit 1. II EXHIBIT C. Purl I YIELDS O N NEW A N D S E A S O N E D C O R P O R A T E B O N D S WW ISSUES I I I II II Exhibit 0 - Part II Yields on Hew-Corporate Bond laeuea Adjusted to an Aaa basis Weekly averages: 1963 - Dec. 6 13 20 27 1964 - J a p . 3 10 17 24 31 Feb. T 14 21 28 Number Am't of issues Average yield included (mil. of fner cent). issues of dollars) Number Aa't of issues Average of included (mil. yitld fner cent) of dollars) 2 2 1 60.0 95.0 150.0 1 1 1 130.0 5.0 15.0 4.50 4.44 4.41 15.0 50.0 60.0 4.33 4.30 4.34 4.41 4.45 4.54* — . 1 1 1 • : Mar. 6 13 20 27 Apr. 3 10 17 24 May 1 8 15 —— — 3 81.0 4.39 3 85.0 4.46 2 .1 1 3 13.0 8.0 50.0 89.0 4.48 4.45 4.53 4.45 A by Moody's Invaetors Sendee (except serial and convertible issues, offerings of natural gas pipeuna and foreign oompanlea. and bonds guaranteed by the Federal Government) weighted by Use of offering. Before averaging, new offerings are adjusted to a conmoalte Aaa basis by deducting from the actual reoffaring yield tla exoess of the weekly average yield f o r seasoned toads of the appropriate industryquality group error the composite average for seasoned Aaa^rated tends (Moody's). Averages considered unrepresentative became erf special characteristics of fte offerings Included are denoted by an asterisk^ ii A Exhibit H L o n g - t e r m C o r p o r a t e and S t a t e and L o c a l Government S e c u r i t y O f f e r i n g s and P l a c e m e n t s ( I n m i l l i o n s of d o l l a r s ) New C a p i t a l 1964 . flnrnnraf-p 1 / | 1963 | 1962 January February March £/ £./ £/ 930 685 754 613 594 - 1,144 592 i 859 807 April May June e/ 2,100 e/ 1 , W - 930 904 1,013 1,113 760 1,132 676 637 795 582 749 579 July August September October November December 1st 2nd 3rd 4th quarter quarter quarter quarter £ / 2,369 1st half Three quarters Year 1,013 819 1,415 835 703 1,103 2,351 2,847 2,109 3,246 2,258 3,005 1,910 2,641 5,198 7,307 10,553 5,264 7,173 9,814 <'% S t a t e and LoccJl 2 / 1962 | | 1963 p / 1964 919 749 700 732 746 976 876 1 ,133 628 e / 1 ;, 1 0 0 e/ 600 869 866 930 873 912 786 680 708 449 612 544 427 1.,051 729 416 650 578 550 2,,454 2. ,665 1, ,837 2, ,197 2.,637 2 ,571 j 1, 528 1, 7 7 9 5 , 118 6 , 955 9 , 151 5 , 208 6 , 790 8 , 568 £/ £/ e/ i £/ 2 >3 6 8 E x c l u d i n g f i n a n c e companies—^ 1st 2nd 3rd 4th quarter quarter quarter quarter e/ 2,019 Year £/ If 2/ 3/ 2,284 2,529 1,768 2,854 2,199 2,919 1,775 2,410 9,434 9,303 Preliminary. Securities and Exchange Commission e s t i m a t e s of n e t p r o c e e d s . Investment Bankers A s s o c i a t i o n of America e s t i m a t e s of p r i n c i p a l a m o u n t s . T o t a l new c a p i t a l i s s u e s e x c l u d i n g o f f e r i n g s of s a l e s and cosumer f i n a n c e c o m p a n i e s . . : -/' ,.f 1 ; J y H.L 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 ) 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: Foreign Publicly Privately pfd. issues Mfg. offered offered included Quarter Wet p r o c e e d s t o r new c a p i t a l 1/ 2/ P u b l i c Communi Other . u t i l i t y cations I issuers 1961 - . I I I IV 2,566 3,236 772 967 1,139 1,424 654 845 69 62 935 792 595 836 104 147 893 1,263 1962. I II III IV 2,378 3,250 2,184 2,957 1,155 1,389 853 1,089 716 1,222 1,024 1,568 507 639 307 300 68 257 56 179 655 996 601 769 430 983 375 • 568 456 231 275 321 • 717 794 659 986 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 / 2,499 978 1,221 305 29 418 43 8 273, f 1962 - J u l y Aug. Sept. Oct. Nov. Dec. V j / 1963 - J a n . Feb. Mar. Apr. May 630 922 632 976 784 1 ,197 200 477 176 539 286 264 366 363 295 314 446 808 67 82 161 123 52 125 13 43 46 34 99 217 218 166 153 271 345 118 110 148 141 175 252 88 120 67 260 4 57 159 301 199 282 253 451 695 642 1 ,363 1 ,049 1 ,340 1 ,246 810 756 871 1 ;,116 891 1,,459 350 259 499 380 550 459 279 336 283 511 183 626 243 289 774 452 694 675 431 318 501 481 549 751 -102 94 91 217 95 113 100 100 87 125 159 83 25 43 60 56 182 196 46 21 42 10 10 27 135 220 592 148 216 227 297 272 237 240 214 515 114 115 97 341 222 210 107 100 78 201 131 198 125 68 43 71 92 58 86 25 3° 238 191 412 369 373 499 187 240 441 531 461 637 1964 - I II ' £ July Aug. Sept. Oct. Nov. Dec. 41 13 64 526 121 1964 - J a n . ]>/ 157 515 338 5 109 985 149 123 342 88 16 83 279 155 Feb. £ / 710 1460 174 400 353 361 81 8 34 Mar. £ / 805 220 2, 140 1,330 38u n. a . 140 400 1,360 410 April e/ May June 2./ 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 Proceeds exceed n e t p r o c e e d s by t h e cost of f l o t a t i o n . 2 / F o r t o t a l see 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 and o t h e r t r a n s p o rfor t a t iFRASER o n , r e a l e s t a t e and f i n a n c e and commercial and o t h e r . S o u r c e . - - S e c u r i t i e s and Digitized Exchange Commission. 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 ) WW January February March April May £/ £/ £/. e/ Gross Forei Lgn government 2/ 1963 1962 4 81 69 25 July August September October November December ""Jan. - A p r i l e/ 17 9 Year January February March April May July August September October November December Jan. - April 2 142 10 35 10 86 50 25 8 31 151 88 101 498 197 232 133 76 57 114 11 63 83 771 - t e r m 1/ 1964 £/ £/ jb/ e/ 25 | F e d e r a l agency 3/ 1962 1963 | 148 246 156 186 461 459 150 175 e/ 25 174 200 -- -- -- m 1,167 737 Net s h o r t - t e r m 4/ F e d e r a l agency 3 / S t a t e and l o c a l government 5 / 75 18 12 -106 103 236 272 466 -189 -459 -186 . -367 -482 198 £ / -458 127 589 92 292 R/ -30 -84 195 -10 -118 319 62 78 414 208 339 327 -406 -173 258 71 259 123 234 146 -102 -161 -339 551 n.a. Year 569 425 692 378 rii -157 863 1,188. 247 -156 226 -364 82 284 261 227 -157 379 55 -80 t - 485 1,600 1,004 £./ 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 . --Not a v a i l a b l e . 1/These d a t a d i f f e r , ,'f from 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 , as w e l l as new c a p i t a l i s s u e s a r e included.,,' Long-term s e c u r i t i e s a r e d e f i n e d as t h o s e m a t u r i n g i n more than one y e a r . 2 / l 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 United S t a t e s by f o r e i g n governments 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 and Exchange Commission. 3 / l s s u e s not g u a r a n t e e d by the U. S. Government. Source: l o n g - t e r m , S e c u r i t i e s and Exchange Commission; s h o r t - t e r m , T r e a s u r y Department and F e d e r a l R e s e r v e . 4/These 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 above 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 , whether from t h e p r o c e e d s of 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 t y of one y e a r or 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 or c e r t i f ifor c a tFRASER e s and P u b l i c Housing 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 have a somewhat l o n g e r m a t u r i t y t h a n one y e a r . S o u r c e : Bond Buyer and F e d e r a l R e s e r v e . Exhibit K Large Long-term P u b l i c S e c u r i t y I s s u e s f o r New C a p i t a l (Other t h a n U. Si T r e a s u r y ) 1/ Proceeds of Large I s s u e s O f f e r e d ( I n m i l l i o n s of d o l l a r s ) Corpo r a t e Bonds iOther t h a n t C o n v e r t i b l e convertibles) bonds Total 1963 - A p r i l May July August September October November December 1964 - J a n u a r y February March April 263 149 348 180 218 215 380 117 515 225 200 296 235 409 149 348 199 236 237 446 180 547 307 263 335 1,557 State and Other 146 19 18 22 66 .63 32 22 28 38 1,271 60 35 51 2/ governments , - „ 431 389 372 279 329 135 734 373 111 577 358 282 698 134 43 460 60 20 174 200 --- 50 20 Large I n d i v i d u a l I s s u e s O f f e r e d May 1 t h r o u g h 15 ; | Issuer Type Coupon rate or OfferMaturity net inter- ing Rating est cost yield Amount (millions of dollars). Corporate .3.1.T. F i n a n c i a l Corp. Columbia Gas System, I n c . ' u g e t Sound Pwr. & L t . Co. h i l a d e l p h i a E l e c . Co. ilabama Pwr. Co. Deb. Deb. 1 s t mtg. b d s . 1 s t & r e f . mtg. b d s . 1 s t mtg. b d s . 100.,0 50. 0 15. 0 50. 0 29. 0 1989 1989 1994 1994 1994 4-5/8 4-5/8 4-3/4 4-1/2 4-5/8 " t a t e and Local Government S t a t e of C a l i f o r n i a G.O. 50.0 50.0 4.8 11.2 21.3 17.5 10.0 13.2 10.6 20.0 15.0 1966-90 1974-2014 1967-84 2006 1965-97 1965-79 1974-99 1965-99 1965-94 1966-99 1967-84 3 .21 3 .53 vT. Y. S t a t e Pwr. Auth. Rev. -Ut. C i n c i n n a t i , Ohio .iaryland S t a t e Roads Comm. Denver, Colo. Columbus, Ohio woston, Mass. P u e r t o Rico Wtr. Resources Auth. S t a t e of Hawaii G, 0. Rev. - S . T . Rev. -Ut. G.O. G.O. Rev. -Ut. G.O. I .55 3.-16 3..15 3.,30 3.,19 3.,45 3. 68 3.,21 4. 68 4. 64 4. 75 4. 45 4. 55 -- A Baa Aaa A 2.,25-3 2.,95-3 a / » 2. 50-3, 3. 55 2. 15-3. 40 Aa 2. 15-3. 2. 95-3. 2. 15-3. 40 A a 3. 3 0 - 3 . 2. 40-3. 2. 60-3. I \'C H. 14 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 May I t h r o u g h 15 Issuer Type Amount (millions of dollars) Maturity Coupon r a t e or net i n t e r est cost Offering yield Rating Other R e p u b l i c of F i n l a n d - i *--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 and 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 and l o c a l government 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 . s revenue o b l i g a t i o n s s e c u r e d only 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 only by revenue 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 revenue from 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 e payments. 4/ Bonds m a t u r i n g 1989-90 n o t p u b l i c l y r e o f f e r e d . 5/ Bonds m a t u r i n g 2014 n o t p u b l i c l y r e o f f e r e d . 6/ Bonds m a t u r i n g 1974-76 n o t p u b l i c l y r e o f f e r e d . V Bonds m a t u r i n g 1965-79 not p u b l i c l y r e o f f e r e d . & t; -til hmt 17 H. 14 F o r t h c o m i n g L a r g e L o n g - t e r m P u b l i c S e c u r i t y O f f e r i n g s f o r New C a p i t a l ( O t h e r t h a n U. S. T r e a s u r y ) 1 / E x p e c t e d P r o c e e d s from F o r t h c o m i n g L a r g e I s s u e s D u r i n g month f o l l o w i n g d a t e shown S t a t e and Corporate local govt. Other 2/ 1963 - Apr. May June July Aug. Sept. Oct. Nov. Dec. : 1964 - J a n . Feb. Mar. Apr. 30 31 28 31 31 30 31 29 31 31 28 31 30 149 223 170 221 158 240 145 392 305 155 224 1,587 651 447 255 142 329 210 561 255 137 469 316 454 669 345 40 460 75 20 25 15 Subsequent to d a t e shown S t a t e and Corporate local govt. 234 288 215 267 183 240 145 1,992 V.1,905 1,771 1,649 1 •» 837 844 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 May 15 Amount (millions Type of dollars) Corporate V i r g i n i a E l e c . & Pwr. Co. C e n t r a l 111. Pub. S e r . Co. Potomac E l e c . Pwr. Co. M i c h i g a n C o n s o l . Gas Co. Texas E a s t e r n T r a n s . Co. Mountain F u e l S u p p l y Co. W i s c o n s i n Pub. S e r . C o r p . Communications S a t e l l i t e Co. Long I s l a n d L i g h t i n g G e n e r a l T e l . Co. of C a l . M i c h i g a n - W i s c o n s i n P i p e L i n e Co. L o u i s i a n a Pwr. & L t . Co. P u b l i c S e r . Co. of C o l o r a d o L a c l e d e Gas Co. P a c i f i c Gas. & E l e c . Co. Com. s t k . 1 s t mtg. bds. 1 s t mtg. b d s . 1 s t mtg. b d s . Deb. Deb. 1 s t mtg. bds. Com. s t k . 1 s t mtg. bds. 1 s t mtg. b d s . 1 s t mtg. bds. 1 s t mtg. b d s . 1 s t mtg. b d s . 1st.mtg..bds. Com. s t k . 36.0 20". 0 45.0 30.0 40.0 18.0 18.0 200.0 25.0 35.0 20.0 25.0 35.0 20.0 68.0 599 582 287 512 468 757 401 349 731 667 646 953 575 Other 2/ 40 460 75 20 25 15 Approximate d a t e of o f f e r i n g May May May May May May "May Jun?. Juna June June June June June July 20 20 21 22 26 27 28 2 3 4 10 11 17 19 (rts. / ex.) 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 May 15 ( C o n t ' d ) Issue r Type Amount (millions of dollars) Approximate d a t e of o f f e r i n g Oklahoma C i t y , O k l a . .-New O r l e a n s , La. H o u s t o n , Texas Los A n g e l e s Un. S c h . D i s t . , C a l i f . P e n n a . S t a t e Highway & B r i d g e A u t h . Orange Cc. S p e c . Tax D i s t . # 1 , F l a . F l o r i d a Dev. Comm. v a . S t a t e Highway A u t h . S e a t t l e , Wash. Merced I r r . D i s t . , C a l . P i t t s b u r g h , Pa. Dada C o u n t y , F l o r i d a F o r t h W o r t h , Texas A t l a n t a F u l t o n Co. Rec. A u t h . , Ga. G.O. G.O. G.O. G.O. Rev. - Q . - U t . Rev. - S . T . Rev. - Q . - U t . Rev. - Q . - U t . Rev. - U t . Rev. - Q . - U t . G.O. G.O. G.O. Rev. - Q . - U t . 11.9 14.5 23.5 25.0 25.0 25.0 17.0 31.0 60.0 36.0 . 35.0 46.0 14.1 18.0 May 19 May 20 May 27 Jun-~ 2. J u n e 16 J u n e 29 June Spring J u l y 15 J u l y 15 Indefinite Indefinite Indefinite Indefinite ^ - - I n c l u d e d in Table f o r f i r s t time. If 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 g o v e r n m e n t 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 for 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. & 1 S t a t e and L o c a l Government H. 14 if Exhibit M F o r e i g n Government and C o r p o r a t e S e c u r i t y O f f e r i n g s and Placements i n t h e United S t a t e s Part I: Sale Da t e ! Amount ( m i l l i o n s of dollars) Public Offerings I s s u e r and D e s c r i p t i o n of I s s u e A. Sold March 1 through May 1 5 I n t e r - A m e r i c a n Development B a n k - 4 - 1 / 2 b o n d s , m a t u r i n g 1984, o f f e r e d t o y i e l d 4.507. 3/23 50.0 4/1 25.0 United Mexican S t a t e s - - 6 - l / 2 % s i n k i n g fund d e b e n t u r e s , m a t u r i n g 1979 o f f e r e d t o y i e l d 6.75% 5/7 15.0 R e p u b l i c of Finland--6% b o n d s , m a t u r i n g 197 f', o f f e r e d t o y i e l d 6.24% B. None Prospective Offerings H. 14 M-2 Part I I : Date reported P r i v a t e P l a c e m e n t - - R e p o r t e d March 1 through May 15 Amount ( m i l l i o n s 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 4/1 12.5 5/8 4.0 I s r a e l D i s c o u n t Bank L t d . - - 5 - 1 / 2 % c a p i t a l n o t e s , m a t u r i n g 1979--no i n f o r m a t i o n a v a i l a b l e on takedown. 5/8 10.0 P a c i f i c Great Eastern Railroad Co.--4-1/2% s i n k i n g fund d e b e n t u r e s , m a t u r i n g 1994-no i n f o r m a t i o n a v a i l a b l e on takedown C. I t o h & Co. L t d - - 6 - l / 2 % c o n v e r t i b l e u n s e c u r e d d e b e n t u r e s , m a t u r i n g 1984-no i n f o r m a t i o n a v a i l a b l e on takedown. % % i V Note: 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 United S t a t e s s e e E x h i b i t I and J . There 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 takendown 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 or no i n f o r m a t i o n c o n c e r n i n g t i m i n g of takedowns. F u l l or 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 subsequent t o t h e d a t a a p l a c e m e n t 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. I ^ f 4%, V ••?*{ '