Full text of H.16 Capital Market Developments : May 6, 1963

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Not for Publication DECONTROLLED AFTER SIX MONTHS

May 6, 1963.
LIBRARY

(

C A P T T A T . MARjfF.T D E V E L O P M E N T S

R 1963
-5ERV. 3Ai(il4 cluding
—

IN THE UNITED STATES
Review

of

Capital Markets in April)

Public security financing to obtain new capital was in fairly
substantial volume last week, but is expected to be in somewhat more
moderate volume this week. During the week ending May 3, a $25 million
corporate issue was offered, four large State and local government
bond issues totaling $159 million were sold and the Government of Japan
sold $28 million in bonds. This week, ending May 10, one $16 million
corporate issue and two State and local issues with par value of $137
million are scheduled for offering. In addition, the American Telephone
and Telegraph Company has scheduled a $250 million bond issue to refund
outstanding securities and a $160 million secondary distribution of
Gulf Oil Corporation common stock will be made for the benefit of
selling stockholders.
Bond yields. Yields on Aaa-rated State and local government
bonds rose one basis point to 3.01 per cent last week. Yields on other
seasoned, long-term bonds were stable.
Average yields on new corporate bonds, adjusted to an Aaa
basis, were 4.22 per cent last week, eight basis points below the
average for the previous week.
Short- and intermediate-term interest rates. Rates on Treasury
bills rose a basis point last week, but yields on 3-5 year U. S.
Government issues fell three basis points. The average effective Federal
funds rate was 3.00 per cent, slightly above the revised rate for the
previous week. Other rates were unchanged.

FNMA secondary market operations. Sales in the secondary
market by the Federal National Mortgage Association continued upward
in March and, at $166.4 million, were very near the historic high
reached in May of 1958. Purchases by FNMA turned up in March, to
$21.9 million, b u t — a s in the case of offerings—the aggregate rise
was moderate and from an unusually low level. While reservations for
sales to private investors by FNMA have tended downward since midFebruary, the level remains quite high.
Reflecting the pressure on lenders for mortgage outlets as
savings flows have increased further this year, sales to private
investors from the "special assistance" portfolio of FNMA have also
risen along with FNMA's regular secondary market selling activity.
In addition to sales by FNMA, sales by the Veterans Administration of
mortgages acquired from earlier foreclosures have continued well above
earlier expectations.
Stock prices. Common stock prices, as measured by Standard and
Poor's composite index of 500 stocks, edged up further last week to close
at 70.03 on May 3. This was the highest level since late March 1962 and




•2 -

was within 4 per cent of the December 1961 high. Trading was active,
averaging 4.6 million shares a day, but was 0.6 million shares less than
the previous week.
Estimated May security financing. Corporate security financing
to obtain new capital is expected to be in rather light volume in May but
State and local government bond sales should continue to be fairly
substantial.
New capital security financing by corporations is expected
to total $650 million in Hay, almost one-fourth less than in April and
one-seventh smaller than a year earlier. Large issues currently scheduled
for public offering amount to $149 million. Also on the calendar, is a
substantial volume of public financing to retire outstanding securities,
including a $250 million bond issue by AT&T.
Sales of long-term bonds by State and local governments are
estimated at $850 million in May, the same as in April, but 7 per cent
less than a year earlier. Large issues on the calendar have a par value
of $447 million.
Capital markets in April. The capital markets were under
considerable pressure during most of April and bond yields rose. Security
financing to obtain new capital by both corporations and State and local
governments was in substantial volume. In addition, the Treasury sold its
second long-term bond issue through competitive bidding--a $300
million issue of 31-year bonds bearing a 4-1/8 per cent coupon; this
issue, unlike the January offering, met indifferent demand and price
restrictions were terminated late in the month with approximately onehalf of the issues yet unsold.
Corporate security financing to obtain new capital totaled
$850 million in April, about one-sixth less than in March (which included
an unusually large volume of private placements) and one-fourth smaller
than the very substantial April volume last year. Large issues for new
capital sold publicly amounted to $409 million, the largest total since
October; this was comprised of $263 million of nonconvertible bonds and
$146 million of stock. The stock total was the largest since April
1962, due primarily to the expiration of rights on a $107 million common
stock issue of the Consolidated Edison Company, the largest such offering
since the $965 million American Telephone and Telegraph Company issue
of April 1961. Securities sold to refund outstanding issues added about
$60 million to the April total.
Yields on seasoned, Aaa-rated corporate bonds rose about
four basis points during the month to around 4.22 per cent, the highest
since around the beginning of the year. Yields on new corporate
bonds, adjusted to an Aaa basis, also rose and, at 4.30 per cent late
in the month, were 10-15 basis points higher than the general range
that had prevailed earlier in the year and about the highest since last
summer.




•3

Price restrictions on unsold syndicate balances of a number
of new issues originally offered in March were terminated during the
month and yields on these issues rose five basis points or more.
Most new issues sold early in April moved very slowly, but those sold
later in the month at higher yield levels met a much more favorable
retail reception. Unsold syndicate balances, therefore, were somewhat
smaller at the end of April than a month earlier.
Bond sales by State and local governments totaled $850 million
in April, one-tenth less than in March but little changed from a year
earlier. Yields on seasoned, Aaa-rated State and local government
bonds rose seven basis points to 3.00 per cent at end of the month,
their highest level since last fall, except for a brief period early
in March. Investor interest in new offerings was selective until
close to the end of the month. As a result, dealers' advertised
inventories of unsold securities rose to a record high of $681 million
shortly after mid-month, nominally above the previous peak of last
May, before falling $50 million to $630 million at the end of the
month.
Common stock prices advanced sharply further during April, in
very active trading. Prices, as measured by Standard and Poor's
composite index of 500 stocks, increased five per cent during the
month to close at 69.80 on April 30. This was the highest level since
late March 1962 and only four per cent below the December 1961 high.
Trading volume averaged 5.1 million shares a day, 1.5 million shares
more than in March and the highest monthly average since April 1961.
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.




EXHIBIT A, Porl I

L O N G - T E R M B O N D YIELDS, H I G H - G R A D E

coiroim i n

Exhibit A

Corporate
A a a 1/

P a r t II

U. 8. Govt,
l o n g - t e r m 2/

S t a t e and
local
government
A a a 3/

Spread between
P. S . G o v t , and
S t a t e and
Corporate
local Aaa
Aaa

(per c e n t )
1958 - L o w
1959-60 - High
1960-61 L o w
19.61 - H i g h
1962 - Low
1963 - H i g h
Low

3.55
4.61
4.21
4.46

(5/2)
(3/29/60)
(3/17/61)
(9/15)

4 . 2 3 (12/28)
4 . 2 2 (5/3)
4.19 (3/29)

3.07
4.42
3.70
4.07
3.85
3.99
3.87

Apr. 5
A p r . 12
Apr. 19
Apr. 2 6
M a y 3 $>/

4.20
4.20
4.21
4.22
4.22 ,

3.95
3.96
3.99
3.98
3.98

(4/25)
(1/8/60)
(5/12/61)
(12/29)
(12/28)
(4/19)
(1/18)

2.64
3.65
2.99
3.37
2.88
3.02
2.93
2.94
2.95
2.99
3.00
3.01

(5/1)
(9/24/59)
(9/1/60)
(7/6)
(11/6)
(3/7)
(3/28)

.22
.59
.19
.57

.34
.92
.46

.35

1.02

.30:

.22

.76

.80

.90

.25
.24

1.01

.24
;24

.98
.97

.22

1.01

1.00

•aj Preliminary*
y
Weekly average of dally figures. Average term of tends included 1* 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 includedi average term is 20 years,
Sote,—Higbs and lews are f o r Individual series end may be on different dates for different
series. For spreads, high refers to widest, and loir to narrowest#




L O N G - T E R M B O N D YIELDS/ L O W E R - G R A D E

^X/^v

Ii,:

X

Mi

STATE AND IOC
" j*!

M

i V

r\/
r v/

• ti

N V

-;Oiro**nj..
I j*°?dy'r _

V

v

J-LLI 1 • I LI J1
111 M 11 M M 1 II II 1 1 1 111
II 1ii M MI iI ii.i.i 11 M II1 1 1 LI J i 1 W A
... Llili

il«t

ill"

l?il

!L*i

l!iiJ

Exhibit B - Part II
Corporate
Baa 1/

Stats and
local govt.

Spread between
Aaa and Baa
State and
Corporate

(per cent)
1958 - Low
1959-60 - High
1960-61 low
1961 - High
1962 - Low
1963 - High
Low

•3.13
4.92
4.93
4.87

Apr. %
Apr, 12
Apr. 19 Apr. 26
Hay 3 £/

4.87
4.87
4.87
4.87
4.87 v

Mote*

4.51 (7/11)
3.36 (2/12/60)
4 . 9 8 (9/9/60)

(1XJ/27)
(12/21)
(1/4)
(5/3)

for footnotes see Exhibit A,




3.64 (5/1)
4.46 (3/7/60)
3; 93 (11/9/61)
4*16 (3/23)
3.32 (9/17)
3.57 (3/14)
3.55 (4/18)

.77
.84
,66
.81
.63
.71
.65

,93
1.08
.37
.93
.36
.63
.55

3.55
3.55
3.55
3.56
3.56

.67
.67
.66
.65
.65

.61
.60
.56
.56
.55

1

EXHIBIT C, Port I

S H O R T - A N D INTERMEDIATE- T E R M INTEREST RATES, G O V E R N M E N T

3 - 5 YIAI ISSVIS

J . MONTH I I U S

11951

mi

mi

FTm

im i !

Exhibit C -i Part II

Date

1958 - Low'
1959-60 High
1960-61 Low
1961-62 High
1962 - Low
1963 - High
Low
Apr. 5
Apr. 12
Apr. 19
Apr. 26
Hay 3 % /

Discount
rate
U

3-month
bills 2 /

1.75
4.00
3.00
3.00
3.00
3.00
3.00

.58
4.59
2.11
2.97
2.65
2.95
2.88

(5/29)
(3/8/60)
(10/28/60)
(7/13/62)
(6/8)
(2/8)
(3/15)

3.00
3.00
3.00
3.00
3.00

2.91
2.90
2.90
2.89
2.90 /

Yields
6-month
bills 2/
(per cent)

3r5 year
issues 2/

3.02
5.07
2.35
3.13
2.74
3.00
2.93

(l?/26) 2.14
(3/8/60)5.00
(4/28/61)3.15
(7/20/62)3.88
(6/8)
3.41
(4/19) 3.59
(3/8) 3.44

2.98
2.98
3.00
2.98
2.99

3.53
3.54
3,59
3.59
3.56

Spread between yields on 3 month bills and vields on
6-mo. bills13-5 vr. Issues

(6/6)
(l?/24/59)
(5/12/61)
(2/2/62)
(34/28)
(4/26)
(1/18)

.26
.79
.12
.44
.02
.10
.04

.04
1.81
.38
1.51
.52
.70
.52

.07
.08
.10
.09
.09

.62
.64
.69
.70
.66

i/ Weekly rate shown is that in effect at end of period at the Federal Re nerve Bank of Mew York.
2/ Market yield; weekly averages oonputed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
riote.—Highs and lows are for individual series and may be on different dates for different series.
For spreads, high refers to widest, and low to narrowest.




EXHIBIT D, Pari I
S H O R T - A N D I N T E R M E D I A T E - TERM I N T E R E S T R A T E S ,
BANKS AND OTHER PRIVATE B O R R O W E R S
Weekly

Exhibit D - Part II

ftate

Stock Exchange
call l o a n

Prime
rate JL/

Finance company
p a p e r 2/

Federal
funds 3/

Spread between
3 - m o . b i l l s and
finance co. n a n e r

(per c e n t )
1958 - Low
1959-60 - High
1960-61 L o w
1961-62 - High
1962 - Low
1963 - H i g h
Low

3.50
5.50
4.50
4.50
4.50
4.50
4.50

3.50
5.00
4.50
4.50
4.50
4.50
4.50

1.13 (8/8)
5 . 1 3 (3/22/60)
2.50(6/5/61)
3 . 2 5 (7/20/62)
2 . 8 8 (6/1)
3.25 (4/5)
3.13 (5/3)

Apr. 5
A p r . 12
Apr. 19
Apr. 26
May 3 g/

4.50
4.50
4.50
4.50
4.50

4.50
4.50
4.50
4.50
4.50

3.25
3.19
3.13
3.13
3.13

.13
4.00
.43
3.00
1.30
3.00
2.63

2.63
3.00
2.85
r/2.98
3.00

(5/29)
(5/33/60)
(3/27/61)
(12/28/62)
(3/26)
(5/3)
(4/5)

-.35
1.02
.11
.56
.19
.36
.18
.34
.29
.23
•24
.23

,

T

Weekly r a t e shown I s t h a t i n e f f e o t at e n d of p e r i o d . S t o c k Exchange call loan rate ie going rate
on c a l l l o a n s s c o u r e d by c u s t o m e r s ' s t o c k e x c h a n g e • collateral a t New York City banks.. Prime rate
i s t h a t c h a r g e d by l a r g e b a n k s o n s h o r t - t e r m loans to h i s i n a s s borrowers of the highest credit
standing.
2 / A v e r a g e of d a i l y r a t e s published by f i n a n c e companies for directly placed paper for Vfcxying maturities
i n t h e 90-179 day r a n g e .
3 / Weekly a v e r a g e of d a i l y e f f e c t i v e r a t e , w h i c h i s t h e r a t e f o r t h e h e a v i e s t "volume o f p u r c h a s e and
s a l e t r a n s a c t i o n s a s r e p o r t e d t o t h e F e d e r a l R e s e r v e Bank of New Y o r k .
N o t e . — H i g h s a n d l o w s a r e f o r i n l i v i d u a l s e r i e s and may b e o n 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 .
F o r s p r e a d s , h i g h r e f e r s t o w i d e s t , a n d low t o n a r r o w e s t *
F




*?

EXHIBIT E, Pari I

STOCK MARKET

Mill!on* of doll

S T O C K M A I K i T CEEDIT
. C H A N G E IN SERIES.

mo

mi

Exhibit E - Part II

Stock price
index JL / •

1961-62 - High
Low
1963 - High
Low
March
April
Apr. 19
Apr. 26
May 3 2/

Stock market customer credit
Common .
Trading
Customers'
Bank
volume 3/
stock
Total debit bal- loans to
yields 2/ (millions
(per cent) of shares)
ances 4/ "others" 5/
(In millions of dollars)

72.04(12/8/61)
52 . 68 ( 6/22/62)
70,03 (5/3)
64.10 (3/1)

2.82
3.96
3.09
3.36

10.1
2.4

65.67
68.76
69.23
69.70
70.03

3.28
3.15
3.12
3.10
3.09

3.6
5.1
5.2
5,2
4.6

5.5
3.3

5,602(12/61) 4,259
4,876(7/62) 3,562
5,754(3/63)4,332
5,595(1/63)4,208
5,754

4,331

(12^61) 1,377(8/30/61)
(7/62) 1,269(9/26/62)
(2/63)1,452 (4/24)
(1/63)1,378 (2/23)
1,423
1,452
1,443
1,452

n.a.—Jiot available. ,j>/ Preliminary.
V
Standard and Poor's composite index of 500 oonmon atooka, weekly closing prioea, 1941-43•10.
Monthly data are averages of daily figures rather than of Friday's only. Highs and Iowa are for
Friday's data onlyV
2/ Standard and Poor a composite stock yield based on Wednesday data converted to weekly closing
prices by Federal Reserve. Yields shorn are for dates on which pzioe index reached its higi
3/ Averages of daily trading volume on the Hew York Stock Exchange•
Aj End of month figures for member films of the New York Stock Exchange vfaioh carry margin accounts 1
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. Prior to July 1, 1959, such loans are excluded only at bonks in
MewFRASER
York and Chicago. Weekly reporting banks account fbr about 70 per cent of loans to others.
Digitized for
For further detail see Bulletin.



fo

EXHIBIT f. Pari i__

FEDERAL NATIONAL MORTGAGE ASSOCIATION ^
SECONDARY MARKET OPERATIONS

mt

Date

MHIIotu of dollon

1961
Exhibit F - Part II
Estimated offerings to FNMA
Standby
Immediate
Total
purchase
commitment

lit:

Purchases
by
FNMA

""
Sales
by
FNMA

(In millions of dollars)
1962 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1963 - Jan.
.Feb.
Mar.ji/

68.6
51.1
40.3
33.0
29.0
40.8
35.9
43.5
25.7
19.7
16.8
12.5
23.1

^

66.3
50.0
38.8
31.7
27.9
39.2
35.2
42.7
24.6
19.3
16.5
12.4
22.6

2.3
1.1
1.5
1.3
1.1
1.0
.7
.8
1.2
.4
.2
.1
.5

81.6
51.5
42.0
29.0
21.9
29.6
25.0
33.1
26.6
13.5
14.3
10.1
• 21.9

75.9
105.7
64; 0
56.3
38.5
6.3
8.4
4.5
8.1
14.4
45.3
107.7
166.4

•—Less than $50,000.
y
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 mast deliver to
FNMA within 45 days. A standby conmitment 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 and standby oomnitmsnt
contracts.
Data exclude FNMA activity under Special Assistance and Management and
for
FRASER
Liquidating Programs.

Digitized


if

EXHIBIT G. Port 1
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

NEW ISSUES

SEASONED Ae

Exhibit 0 - Part IX
Yields on Hew Corporate Bond Issues Adjusted to an Aaa basis

Weekly i

1962

Number Aa't of issues Average
of
included (mil.
yield
issues
of dollars)
(per cent)

Nov.- 2
9
16
23
30
Dec. 7
14
21
28

1963 - Jan. 4
11
13
25

85.0
37.0

4.14
4.13

19.8
72.5
87.0
45.0

4.00*
4.17
4.24
4.25

25.0
70.0
35.0
75.0

Motes

. 4.19
4.23
4.13
4.22

Number Aa't of issues Average
of
included (ail.
yield
issues of dollars!
(per cent)
Feb. 1
8
15
22
Mar. 1
8
15
22
29
Apr. 5
12
19
26
Hay 3

1
2

25.0
64.0

4.21
4.27*

4
1
2
• 2
3
2
2
1
3
3
1

100.0
12.0
55.0
24.4
87.0
222.0
45.0
6.0
95.0
128.0
25.0

4.19
4.14
4.25*
4.16
4.16
4.36*
4.23
4.18
4.28
4.30
4.22

r is#*#* of i

and foreign ooayealee, aaA
Before sweeping, me* effei
reoffexiag yield tba exoea#




i asterisk^

11

Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New capital

January
February
March
April
May
June

2/584
E./ 602
p/1,001

592
859
807

580
667
562

JJ/694
2/681
e/950

876
1,133
628

711
689
764

e/850
e/650

1,113
760
1,132

2,118
1,259
1,318

e/850
e/350

873
912
786

722
640
1,034

582
749
579

1,028
762
647

612
544
427

486
604
734

835
703
1,103

1,090
948
1,000

650
578
550

679
789
610

2,258
3,005
1,910
2,641

1,809
4,695
2,4373,038

2,637
2,571
1,582
1,779

2,165
2,396
1,824
2,078

5,264
7,173
9,814

6,504
8,941
11,979

5,208
6,790
8,568

4,561
6,385
8,463

July
August
September
October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

State and local 2/
1
1 1962

1963

Corporate 1/
1 1962
1

B/2,187

1st half
Three quarters
Year

1961

1963

e/2,325

1961

Excluding finance companies 3/
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

e/L,937.

Year

JL/
2/
3/

2,199
2,919
1,775
2,410

1,554
4,552
2,337
2,807

9,303

11,253

£/ Preliminary.
Securities and 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.




Exhibit I
New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
Gross proceeds for new
capital and refunding 1/ """
Common Memo:
Bonds
foreign
Publicly Privately
issues
pfd.
offered offered
included

Net proceeds for
new capital 1/ 2/

Quarter
or
month

Total

1960 - III
IV

2,520
2,832

1,336
1,462

754
955

429
416

38
17

562
625

652
696

317
381

896
997

1961 - I
II
III
IV

1,992
5,352
2,566
3,236

662
2,303
772
967

880
1,275
1,139
1,424

449
1,774
654
845

"76
155
69

515
1,466
935
792

381
1,081
595
836

81
1,095
104
147

832
1,052
803
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
J?9"

655
996
601
769

430
983
375
568

456
231
275
321

717
794
659
986

1963 - I j)/

2,539.

1,099

1,160

281

.110

862

333

233

759

1,075
813
678
1,155
987
1,094

. 424
225
123
336
414
217

392
411
336
509
348
567

259
177
218
310
225
310

52
7
10
25
12
25

428
255
252
271
215
306

269
215
111
306
362
168

16
13
75
25
80
42

315
279
209
487
291
485

647
884
847
1,217
801
1,232
630
922
632
976
784
1,197

273
497
386
654
247
488
200
477
176
539
286
264

232
232
253
227
420
575
366
363
295
314
446
808

143
155
209
336
134
169
67
82
161
123
52
125

3
12
54
10
147
100
13
43
46
34
99

205
131
318
384
270
342
217
218
166
153
271
345

89
148
193
377
196
410
118
110
148
141
175
252

73
362
21
88
64
79
88
120
67
260
4
57

225
218
275
264
229
301
159
301
199
282
253
451

681
643
1,215

350
259
490

238
290
632

94
94
93

18
43
49

133
216
513

118
115
100

125
68
40

208
204
347

6?

.

Mfg.

Public Communiutility cations

Other
issuers

Preliminary.
e/ Estimated by Federal Reserve.
1/ Gross proceeds exceed
net proceeds by the cost of flotation.
2/ For total see Exhibit H; other issuers
are extractive, railroad and other transportation, real estate and finance and
commercial and other. Source.--Securities and Exchange Commission.




nxniDic j
Other Security Offerings
(In millions of dollars)
Gross long-term 1/
Federal agency 3/
Foreign government 2/
1962
1
1963
1
|
1962
| 1961
1963
January
February
March
April
May
June
July
August
September
October
November
December

2/232
2/128
e/50

io

86
50
' r
25
8
, ,
31
151
88 ^
101

Year
Jan-Mar.

142
10
35...

e/410

6
29
20:
2
66 ,,
29
5
2 '

£/--

E/148
e/--

737

236
55

246
156

252
100
149
278

461

43 ,
34'

187

. 1961

e/148

150
175

250
193

--

225

1,188

1,448

402

252

Net short-term 4/
Federal agency 3/
State and local government 5/
January
February
March
April
May
June
July
August
September
October
.November
December

75
7C
-296

Year
Jan.-Mar.

57

18
466
-186
127
-84
-118
78
339
-406
71
234
-161

160
195
-8
-103
-42
-155
109
518
-86
-6
54
-116

378

520

298

347

-106
-189
-#2

-777

247
-156
226
-364
82
284
261
227
-157
379
55
-80

-144
-162
-174
-79
-87
207
22
193
108
98
56
-114

1,004

-76

317

-480

j)/ Preliminary.
e/ Estimated by Federal Reserve.
n.a.--Not available.
1/ These data differ from those in Exhibit H in that refunding issues, as well as
new capital issues are included. Long-term securities are defined as those
maturing in more than one year.
2/ Included securities offered in the United States by foreign governments and their
political subdivisions and international organizations. Source: Securities and
Exchange Commission.
3/ Issues not guaranteed by the U. S. Government. Source: long-term, Securities
and Exchange Commission^ short-term, Treasury Department and Federal Reserve.
4/ These data differ from those in Exhibit H and above in that they represent new
offerings less retirements, whether from the proceeds of refunding issues or from
other funds. Data include only issues with original maturity of one year or less.
5/ Principally tax and bond anticipation notes, warrants or certificates and public

Housing Authority notes. In some instances PHA notes included may have a somehttp://fraser.stlouisfed.org/
what longer maturity than one year. Source: Bond Buyer and Federal Reserve.

Federal Reserve Bank of St. Louis

Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) \J
Proceeds of Large Issues Offered
(In millions of dollars)
Drate
Month

Total

1962 - April
May

Bonds
(other than
convertibles)

648
200
472
165
286
191
434
178
198
234
186
394
409

July
Augus t
September
October
November
December
1963 - January
February
March
April

430
170
387
135
226
100
398
178
178
215
125
372
263

Convertible

Stocks

51

State
and
local
government

167
30
85
30
91
36

. 2 0
19
26
22
146

--

.

35

1/
55
88
30
20

423
373
266
321
272
153
320
217
193
344
367
570
431

60

Other

194
25
75
48
63
134

Large Individual Issues Offered April 1 through May 3

Issuer

Type 3/

1 Amount
Coupon
Offering
1(millions
°f
Maturity net inter- yield
1 dollars)

Rating

CORPORATE
Commercial Credit Corp.
Hartford Elec. Light Co.
^Consolidated Edison Co.
Pacific Northwest Bell Tel.
Co.
Northern Indiana P.S. Co.
Tennessee Gas Trans. Co.
Consolidated Natural Gas Co.
Tampa Electric Co.
Portland General Elec. Co.
Arkansas Louisiana Gas Co.
Victor Comptometer Corp.
General Tel. Co. of Cal.

Notes
1st mtg. bds.
Com.stk.
Deb.
1st mtg. bds.
Pfd.stk.
Deb.
1st mtg. bds.
Com.stk.
1st mtg. bds.
Deb.
1st mtg. bds.

50.0
15.0
107.4
50.0
30.0
20.0
35.0
23.^/
18.7
45.0
15.0
25.0

1981
1993

4-3/8
4-1/4

4.38
4.30

Aa

2003
1993

4-1/2
4-1/2

4.37
4.37

Aa
Aa

1988
1993

4-3/8
4-1/2

4.39
4.39

Aa
Aa

1983
1988
1993

4-3/8
4-7/8
4-3/8

4.45
4.90
4.39

A
Baa
A

--

STATE AND LOCAL GOVERNMENT
Cleveland, Ohio
Philadelphia, Pa.
Brevard Co. Spec. Tax S.D.
#1, Fla.




Rev.-Ut.
G.Oo

Rev.-S.T.

2..15-3. 00

12.0
37.2

1968-84
:
1964-88

2.93
2.95

1 . ,60-3. 202/A

Aa

12.0

1966-81
:

3.15

2..15-3. 25

Baa

k
H. 14

K-2
Large Individual Issues Offered April 1 through May 3

Type 3/

Amount
Coupon
Offering
(millions
rate or
Maturity
net inter- yield
of
dollars)
I est cost

Rating

STATE AND LOCAL GOVERNMENT
(CONT'D>
City of Detroit, Mich.
State of California
Duval Co. Spec. Tax S.D.,
Fla.
Omaha City Sch. Dist., Neb.
Albuquerque, N. M.
Detroit, Mich.
State of Louisiana
Alabama State Highway Auth.
Washington Sub. San Dist.,
Md.
Los Angeles Co. Flood Control
Dist., Cal.
State of Oregon
New York City, N. Y.
~~-Orlando Util. Comm. , Fla.
Placer Co. Water Agency, Cal.
Maryland State Roads Comm.
Greenville Co., S. C.

G. 0.
G • 0.
Rev.-S.T.
G.0.
G.0.
G.0.
G-0.
Rev.-Ut.
G.0.
Rev.-Ut.
G.0.
G.0.
Rev.-Ut.
Rev.-Ut.
Rev. -S.T.
G.0.

10.5 1967-93
100. 0 1965-89

3.16
2.95

2;05-3 . 25^Aa
1.65-3 .lsLfha

2.82
2,79
2.98
3.16
3.17
3.30

1.80-3 .00 Aa
1.75-3 .00
1.60-3 .20 A
1.70-3 .408/A
1.70-3,.35 A
2.50-3..30 A

10.0
25.0
10.4
11.5
15.0
25.0

1965-81
1965-84
1964-83
1964-88
1964-88
1970-83

14.0

1964-93

2.99

1964-89
1966-93
1964-93
1965-92
1968-2013
1964-78
1964-83

3.04
3.09
2.89
3.25
3.57
2.92
2.88

15.0
10.5
108.7
14.0
115.0
17.5
12.0

—9/

A

1.60-3. 20 A
2:00-3. 25lOAa
1:70-3;40 A
1.80-3.30,,Aa
2.30-3.5 8 ^ - 1.60-2.90 Aa
1.70-3. 05 Aa

OTHER
Copenhagen Telephone Co.
Govt, of Australia
Federal Land Banks
Kingdom of Norway
Govt, of Japan

S.F.deb.
Bonds
Bonds

15.0
1978
30,0 . 1983
64.012/ 1 9 6 8
25.0
1978
27.5
1980

5-3/8
5
4.
5-1/4
5-1/2

5.57
5.20
3.95
5.42
5.71

*--Rights offering.
V
Includes corporate and other security offerings of $15 million and over; State and
local government security offerings of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal agencies.
3/ In the case of State and local government securities, G.0. denotes general
obligations; Rev.-Ut., revenue obligations secured only by income from
public utilities; Rev.-Q.Ut., revenue bonds secured only by revenue from
quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific
taxes only; Rev.-Rent., revenue bonds secured solely by lease payments.
4/ An additional $24.8 million in bonds sold to refund outstanding securities.
0.1 per cent bonds due 1987-88 not^publicly reoffered.
1 per cent bonds due 1993 reoffered to yield 3.90 per cent.
1/ 0.1 per cent bonds due 1989 not publicly reoffered.
1/4 per cent bonds due 1987-88 reoffered to yield 4.25 per cent.
V. Not publicly reoffered.
10/ 0.1 per cent bonds due 1993 reoffered to yield 4.15 per cent.
.11/ 3^3/4
per cent bonds due 2013 reoffered to yield 3.53 per cent.

12/ An additional $122 million in bonds was sold to refund outstanding securities.

t;



A
-~~

H. 14
Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues

Date of
computation
1962 - Apr. 30
May 31
June 29
July 31
Aug, 31
Sept. 28
Oct. 31
Nov. 30
Dec. 28
1963 - Jan. 31
Feb. 28
Mar. 29
Apr. 30

During month following
date shown
Corporate

LccM : = v t >

185
587
120
302
170
363
203
170
269
167
142
376
149

333
184
202
273
61 "
187
96
194
177
376
458
381
447

h

Subsequent to
date shown
State and
Corporate
local govt.

« &

598
692
458
477
312
546
328
360
314
412
572
421
234

95
55

75
25
45
40

Other 2/

452
337
377
427
215
387
243
328
311
843
755
763
599

95
55
25

75
25
33
45
40

Forthcoming Large Offerings, as of May 3
Type

Alabama Pwr. Co.
Virginia Elec. & Pwr. Co.
Associates Investment Co.
Southern Cal. Edison Co.
Public Service Elec. & Gas Co.
Commerce Oil Refining Corp.

I

Amount
(millions
of dollars)

1st mtg. bds.
1st mtg. bds.
Deb.
1st mtg. bds.
1st & ref. mtg. bds.
Deb., bds. & com.

16 .0
30 .0 .
50 .0
27 .6
40 .0
45 .0

Approximate date
of offering

May 10
May 15
May 16
May 23
June
Indefinite

STATE AND LOCAL GOVERNMENT
Washington Public Power Supply System
Cincinnati, Ohio
State of Hawaii
Cleveland, Ohio
State of Colorado
*State of Tennessee
Penna. State Pub. Sch. Bldg. Auth.
State of New York
*Southern 111. University
*Dallas Ind. Sch. Dist., Texas
Pittsburgh, Pa.
Jefferson County, Colorado
Dade County, Florida
Jacksonville Expressway Auth., Fla.
Houston, Texas




Rev.-Ut.
G.O.
G.O.
G.O.
Rev. -Ut.
G.O.
Rev.-Rent.
G.O.
Rev.-Rent.
G.O.
G.O.
G.O.
G.O.
Rev.-Ut.
G.O.

122.,0
15..3
10.,0
13; 2
21. 5
25. 0
25. 0
49. 0
10.5
10. 0
35. 0
12.9
46. 0
40. 0
13.3

May 8
May 8
May 16
May 21
May 21
May 21
May 23
May 24
May 28
May 29
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

•ff

/8 H. 14

L-2
Forthcoming Large Offerings, as of May 3 (Cont'd)

Issuer

Type

Amount
(millions
of dollars)

Approximate date
of offering

OTHER
Copenhagen, Denmark

Bonds

15.0

May 22

*--Included in table for first time.
JL/ Includes corporate and other issues of $15 million and over; State and local
government issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal agencies.
Note.--Deletions for reasons other than sale of issue: None.




Exhibit M

H. 14

Foreign Government and Corporate Security Offerings
and Placements in the United States
Part Is

Sale
Date

Amount
(millions |
of dollars)1

Issuer and Description of Issue

A.
3/13
3/13
4/2
4/9

12.5
21.8
5.2
15.0

4/10
4/24

30.0
10.0

4/24
4/25

1.8
25.0

*5/1

27.5

15.0

Sold March 1 through May 3

Republic of Finland--6% bonds, due 1973, reoffered at 6.17%
Kansai Electric Power Co., Inc.--common stock
Sony Corp.—common stock
Copenhagen Tel. Co.--5-3/8% bonds, due 1978, reoffered at
5.57%
Govt, of Australia--5% bonds, due 1983, reoffered at 5.20%
Mitsui & Co.--6-3/8% convertible debentures, due 1978,
reoffered at 6.38%
Mitsui & Co.--common stock
Kingdom of Norway--5-l/4% bonds, due 1978, reoffered to
yield 5.42%
Government of Japan—5-1/2% bonds, due 1980--reoffered to„
yield 5.71%

B.
5/27

Public Offerings

Prospective Offerings

Copenhagen, Denmark--bonds




M-2
Part II:
Date
reported

Private Placements—Reported March 1 through May 3

Amount
(millions
of dollars)

3/4

3 .0

3/7

12 .0

3/13

1 0

3/13

30 .0

3/13

25,.0

3/27

50. 0

3/28

3. 0

4/3

10. 0

4/4

4. 7

*5/1

50. 0

R. 14

Issuer and Description of Issue
Protestant School Board of Greater Montreal--5-1/4%
bonds, due 1982--no information available on takedown
Government of Norway--bonds, due 1983--no information
available on takedown
City of Aalborg, Denmark--notes, due 1978—no information
available on takedown
Bayer Foreign Investments, Ltd.--5-1/2% promissory notes,
maturing 1983--no information available on takedown
Manitoba Hydro-Electric Board--4-7/8% sinking fund bonds,
maturing 1988—no information available on takedown
Bell Telephone Co. of Canada--4-7/8% first mortgage
bonds--no information available on takedown
Pacific Eastern Railway Co.--4-7/8% sinking fund debenture,
due 1988--no information available on takedown
Industrial Acceptance Corp., Ltd.--5-1/8% secured notes,
maturing 1988—no information available on takedown
City of Vancouver—4-3/8% & 5% serial debentures, maturing
1964-83--no information available on takedown
Bell Telephone Company of Canada--4-7/8% first mortgage
bonds, maturing 1988--no information available on
takedown

Note: For retrospective data on aggregate foreign corporate and government
security offerings in the United States see Exhibits I and J. There is no simple
relationship between the data shown in this Exhibit and that shown in Exhibits I
and J because the latter includes privately placed securities in the period in
which funds are actually takendown 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 takedowns. Full or partial
takedowns may take place both prior and subsequent to the date a placement
reported.
Digitizedisfor
FRASER *—Included in table for first time.



{

i