Full text of H.16 Capital Market Developments : November 16, 1964
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NOV 1 8 1964
1
r u V E BjM®^tITAL MARKET DEVELOPMENTS
1 --^'^ucSoNP
Y
™
UHl'l'lfl) STATES
November 16, 1964.
L-——6oTporate and municipal bond markets. The volume of hew
corporate security financing expected this week will be a modest
$25 million, though slightly above the unusually small volume of the
past two weeks. But the new supply of State and local government
bonds will be very large. The $255 million scheduled for sale Is
about two-thirds greater than last week's total and one-third above
the average for the past year. A $72 million New York State Housing
Finance Agency offering will be this week's largest issue.
Long-Term Public Security Offerings 1/
(In millions of dollars)
Week
Ending
Corporate
New Capital I Refunding
State and Local govt.
New Capital | Refunding
Sold:
52 week avg.
Nov. 6
Nov. 13
120
2
179
10
10
25
148
25
224
8
Scheduled:
Nov. 20
31
1/ Federal Reserve estimates based on published reports of issues sold
and scheduled for offering; corporate rights offerings are included
as of the date subscription rights expire.
j
Reflecting the present and near-term scarcity of new corporate
bond issues, trading in the secondary bond market continued to be
active last week. This brisk activity applied downward pressure to
yields of recently distributed issues, but according to the yield
index failed to influence yields on seasoned high-grade bonds, which
continued at their high for the year.
In the municipal market, underwriters distributed about 60
per cent of last week's moderate supply of new issues. Dealers'
advertised inventories continued to fall and the higher bond prices
brought most municipal yield series to their lows of the year.
Yields in Securities Markets
Level latest week
(per cent)
Change from
preceding week
(basis points)
High-Grade
Notes and Bonds
Corporate
Seasoned
4.43
U.S. Govt.
Long-term
3-5 year
4^11
4.00
- 1
- 2
State and local govt.
3.07
- 3
3.55
+5
3.57
3.74
3.88
+1
+ 2
Money Market
Federal Funds
Treasury bills
3-month
6-month
Finance Company Paper
Mortgage yields and conventional mortgage terms. Yields on
FHA-insured, 30-year, 5-1/4 per cent mortgages sold in the secondary
market--at 5.45 per cent edged off one basis point in October to
continue virtually unchanged from the reduced level that has persisted
over the past ninteen months.
Contract interest rates for conventional first mortgages on
homes were also maintained in October at levels established 1-1/2 or
more years ago, according to the Federal Housing Administration. These
rates, which FHA reports rounded to :he nearest five basis points,
averaged 5.80 per cent in the case of new home loans and 5.85 per cent
for loans on existing houses.
Maturities and loan-to-value ratios on conventional first
mortgages for single family homes have remained at or somewhat below
the more liberalized levels reported earlier this year, based on data
now available for September from the Federal Home Loan Bank Board.
Average purchase prices for new homes have risen further, however,
and with prices of existing homes also at an advanced level, average
loan amounts for both new and used homes in recent months have ranged
6-7 per cent higher than in the same period last year.
Stock prices. Closing at 85.21 on November 13, common stock
prices were little changed from a week earlier. Last week's trading
volume averaged 4.9 million shares daily, 0.3 million above the previous
More detailed information concerning recent capital market
developments is presented in the attached exhibits.
Capital Markets Section,
Division of Research and Statistics,
the Federal Reserve System.
Board of Governors of
3
f X HIBH_ A. Parl_L
LONG-TERM BOND YIELDS, HIGH-GRADE
J"'
Exhibit A - Part II
Date
Corporate
Aaa y
U . S. Govt*
long-term 2/
State and
local
government
Aaa 2/
Spread between
U. S. Govt, and
Corporate
State and
Aaa
local Aaa
(per cent)
1959-60 - High
1961 - High
low
1962 - High
Low
1963 - High
Low
1964 - High
Low
Oct.
Oct.
Oct.
Nov.
Nov.
16
23
30
6
13 j>/
4.61(3/29/60)
4*46(9/15)
4.21(3/17)
4.23(12/2$
4.37(12/27)
4.19(3/29)
4.43(11/13)
4.35(2/28)
4.42(1/8/60)
4.07 (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)
4.11(11/13)
3.65 (9/24/59)
3.37 (7/6)
3.12 (2/23)
3.26 (1/4)
2.88 (11/8)
3.18 (11/21)
2.93 (3/28)
3.16(3/26)
3.07(11/12)
.47
•30
.35
.21
.32
.19
.92
.76
.46
1.04
.80
1.05
1.88
1.09
1.01
4.42
4.42
4.43
4.43
4.43 ^
4.17
4.17
4.15
4# 12
4.11-
3.11
3.12
3.11
3.10
3.07-
.26
.25
.28
.31
.32
1.05
1.05
1.04
1.02
1.04
4.43(3/16)
f
.
.59
.57
.34
Preliminary.
Weekly average of daily figures, Average tern of bonds included is 22-24 years.
Weekly average of daily figures. The aeries includes bonds due or callable in 10 years ojr moie.
y Thursday figures. Only general obligation bonds are included; average t e m is 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*
LONG-TERM BOND YIELDS, LOWER-GRADE
iroiATi in
v
V
-
V
~
K
f
~^Zr^S
\V
.
V
, ITAII AND 10CAI 60VIINM(MT In)
^
Moody'.
V
~
,
—
-
1 I 1 1 i 1 IL.I
i..I i I M i ii .
ii iM 1111 M i.1 i I I M M i 1
i 1
l 1 1 II 1 1 1 U L
Exhibit B - Part II
Corporate
Baa 1/
Date
State and
local govt.
Baa 1/
Spread be1bween
Aaa and Baa
State and
Corporate
local govt.
(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
' - Low
1961* - High
Low
Oct.
Oct.
Oct.
Nov.
Nov.
16
23
30
6
13
£/ ;
5.3$(Vi?/60)
5.13(10/27)
5.00(4/21)
5.11(3/3)
u. 92 (12/21)
U.93(V4)
U.83(11/35)
4.87(6/26)
4.80(10/16)
U.U6 (1/7/60)
16(3/23)
3.93(11/9)
4.01(1/11)
3.52 (5A7)
3.63(6/27)
3.52(5/23)
3.59(10/8)
3.50(11/12)
.8k
.81
.66
•7U
.63
.71
•U8.
.48
.37
4.80
4.81
4.81
4.81
4.81^
3.58
3.58
3.56
3.55
3.50
.38
.39
.38
.38
.37
Bote* For footnotes lee Exhibit A*
1.08
.93
.57
.82
.56
.63
.a
.49
, .36
.47
.46
.45
.45
.43
<
EXHIBIT C. Port 1
S H O R T - AND INTERMEDIATE-TERM INTEREST RATES, G O V E R N M E N T
Weekly
k
l\A
Percent
. 6-NOHTH 111
Market Yle 'A
WY
[
>
4
i
'j-tioHiH iiu?_
Market Yields
1 1 1 1 1 1 1 1 111 111 11 1 1 1 1 1 1
mo
" liti
y
Discount
rate
1 9 5 9 - 6 0 - High
1 9 6 1 - High
Low
1 9 6 2 - High
Low
1 9 6 3 - High
Low
J . 9 6 U - High
Low
Oct.
Oct.
Oct.
Nov.
^Nov.
16
23
30
6
13
£/
U.oo
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
1 1 1 1 1 1 1 1 1II
1 111 M 1 1 1 1 1
m?
iiii-
Yields
3-month
bills 2/
3 - 5 year
issues 2 /
6-month
. bills 2 /
1 1 1 1 1 1 1 1 1 ii ;
i«t«.
Spread between yields on 3 month bills and yields on
6 - m o . b i l l s | 3 - 5 y r . issues
(per cent)
l».59(Vs/»)
2.66(12/29)
2.17 ( V 2 7 )
2.97(7/13)
2.65(6/8)
3.86(8/11)
3.15(5/12)
3.88(2/2)
3.55(11/15) 3.68(12/6)
2.93(3/8)
2.88(3/15)
3.58(10/23) 3.74(11/13)
3.43(7/17) 3.52(7/3)
3.58
3.58
3.56
1.81
5.00(12/24/59)
2.35(4/28)
3.13(7/20)
2.71(6/8)
3.72
3.74
3.71
3.72
3.74-
3 . i l l (12/28)
1^.07(12/27)
3eiiU(VlS)
4.23(3/27)
3.98(8/7)
4.06
4.05
4.03
. 4.02
4.00
2
.12
.2U
.02
.17
.Oil
.21
.04
.14
.15
.15
.16
.17
1.51
.92
1.19
.52
.70
.U2
.71
.43
.48
.47
.47
.46
.43
Weekly rate shown is that in effect at 3nd of period at the Federal Reserve Bank of New York*
Market yield; -weekly averages computed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
Note.-—Highs and lows are for individual series and nay be on different dates for different series.
For spreads, high refers to widest, and low to narrowest.
S H O R T - A N D I N T E R M E D I A T E - TERM INTEREST R A T E S ^ ^
B A N K S AND OTHER PRIVATE B O R R O W E R S
My Rlocedj
E x h i b i t D - Part II
Date
Stock e x c h a n g e
c a l l loan 1 /
Prime
rate 1 /
F i n a n c e companypaper 2/
Federal
funds 3 /
Spread between
3 - m o . b i l l s and
finance co. paper
'per c e n t )
1 9 5 9 - 6 0 High
1961 - high
1962 - High
Low
1963 - High
Low
196U - H i g h
. Low
Oct.
Oct.
Oct.
Nov.
Nov.
16
23
30
6
13 £ /
^
5.50
U.50
U.50
U.50
U.50
U.50
U.50
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)
2.88(6/1)
3.88(12/27)
3.13(5/31)
3.94(10/30)
3.72(9/11)
U . 0 0 (5/13/60)
2 . 9 0 (11/37)
.U3 (V27)
3 . 0 0 (12/28)
1 . 3 0 (1/26)
3 . 5 0 (12/27)
2.U5 (7/26)
3.55(11/13)
2.75(10/16)
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
3.94
3.94
3.94
3.88
3.88
2.75
3.48
3.45
3.50
3.55
V
1.02
.56
.11
.U5
.19
.39
.12
.41
.20
.36
.36
.38
.32
.31
Weekly rate shcnro is that in effect at end of periqd. Stock Exchange call loan rate la going rate
on call lpans secured by customers1 stook exchange collateral at New York City banks. 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*
STOCK MARKET
/ "SIOCI MAIEII CR1DII
CHANG! INJJIIIS
1
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Exhibit E - Part II
Date
1961-62 - High,
1963 - High
196k - High
Low
Sept.
Oct.
Oct
30
Nov.
6
Nov. 13 £/
Stock price
index 1/
Trading
Common
volume 3/
stock
yields 2/ (millions
(per cent) of shares)
72.01(12/8/61)
52.68(6/22/62)
7k.Wl(12/2%)
85.23(11/6)
75.50(1/3)
2.80
3.96
3.01
2.96
3.10
10.1
83.41
84.84
84.86
85.23
85.21
3.00
2.95
2.95
2.96
2.96
5.2
4.8
4.6
4.6
4.9
2.U
6.5
6.1
3.6
Stock ma:-ket customs] credit
Customers'
Bank
j
debit balloans to |
ances y
"others" 5/1
(In millions of dollars)
Total
5,602(12/61)U,259(12/61) 1,1*18(5/9/62) I
l|,U2lt(l/6l) 3,253(V61) 1,161(3/8/61) :
7,298(13/63)5,586(11/63) 1,738(12/25) !
7,314(4)
5,524(1)
1,923(10/7) i
7,096(8)
5,187(8)
1,720(1/22) :
7,142
5,221
1,921
1,916
1,916
n0a.—tfot available, p/ P r e l i m i n a r y ^ ! "
.
1/ Standard and Poorts composite index of 500 common stooks, weekly closing prices, 1941-43".
Monthly data are averages of daily figures rather than of Friday's only. Highs and lows t
2/ Standard and*Poor*s composite stock yield based on Wednesday data converted to weekly easing
prices by Federal Reserve. Yields shorn are for dates on which price index reached its high
3/ Averages of daily trading volume on the New York Stock Exchange.
4/ End of month figures for romber 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.
M O R T G A G E AND B O N D YIELDS *
FHA
25-vear 30-vear
1956 1957 ' 1958 1959-601961-64-
July
August
September
October
Conven-
mortgages
Date
Low
High
Low
High
High
Lou
4.68
5-63
5.35
6.24
5-72
5.43
5.70
5.45
5.44
5.44
5.46
5.46
5.44
5.44
5.46
5.45
gages
3/
Spread beAaa Corporate
tween yields
on conv. & .
New^/
Seasoned—^
25-year FHA
mortgages
Spread between
yields on new corporaue uu IUS tiliu
Seasoned
25-year
FHA mtps.
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
.94
5.80
5.80
5.80
5.80
.36
.36
.36
.36
4.37
4.39
4.49
4.46
4.40
4.41
4.42
4.42
1.07
1.05
r/ .95
.98
1.03
.05
.73
.39
-. 16
-.03
-.02
.07
.04
Neither mortgage nor bond yields take Into account servicing costs which are much higher for mortgages
than bonds. Generally, bonds pay interest semi-annually} mortgages, monthly. Mortgage yields, if computed as equivalent to a semi—annual interest investment, would be slightly higher than given in the
Based on IBA-fieId-office opinions about average bid prices in the private secondary market for newhome mortgages for immediate delivery. Separate data available for 25-year and—begin!ng July 1961—
30—year mortgages with minimum downpayments,'weighted by probable volume of tzansactions « Yields computed by FHA, assuming prepayment period of 12 years for 25—year mortgages and 15 years for 30—year
mortgages. Over the period for whioh they can be compared, the movement of the two mortgage yield
series has been similar. Dashed lines indicate periods of adjustment to changes in contractual interest
Based on FKA field office opinion on typical interest rates (rounded) on conventional first mortgages
prevailing in the market areas of insuring office cities. Beginning with April 1960, rate relates only
to new-home mortgages; prior to that date, rate related to both new as veil as existing-home mortgages.
Dashed line indicates this change in the series,
4/ See note for Exhibit G.
jy Moody's Investor Service. Monthly averages of daily data. See Exhibit A.
t
J X HI BIT G, Pa.I I
[YIELDS O N NEW AND SEASONED CORPORATE B O N D S I
y
I I I I I I I I I I I I I M l
I I I UJJ
Exhibit G - Part II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number Am*t of issues Average
of
included (mil.
yield
of dollars)
(per cent)
Monthly averages:
1964 - Jan.'
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Weekly averages:
150.0
125.0
166.0
130.0
278.0
230.0
60.0
75.0
239.0
70.0
1964 - High
4.50
4.38
4.43
4.48
4.46
4.43
4.37
4.39
4.49
4.46
Number Am't of issues Average
included (mil,
yield
of
(per cent)
of dollars)
Sept. 4
11
18
25
Oct. 2
9
16
23
30
40.0
40.0
69.0
70.0
12.0
4.48*
4.48
4.52
4.46
4.46
4.44
18.0
4.46
60.0
13
4.53(5/8)
4.30(2/21)
Note: Averages of offering yields on all now issues of publicly offered corporate bonds rated Aaa. Aa and
A by Moody1 s Investors Service (except serial and convertible la sues, offerings of natural gas pipeline,
and foreign companies, and bonds guaranteed by the Federal Government) weighted byti.seof offering*
Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual
reoffaring yield ths excess of the weekly average yield for seasoned tends of the appropriate industryquality group over the composite average for seasoned Aaa-rated bonds (Moody's). Averages considered
unrepresentative beoauie at special characteristics of -the offerings included .are denoted by an asterisk;,
v.
Exhibit H
H.14
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New CaiD i t a l
January
February
March
,
April
May
June
1964
Corporate
1963
1962
930
685
754
613 '594
1 ,144
549
860
819
2,178
1,069
1,378
1964
State and Local 2/
1963
£/l,215
£/ 666
£/ 902
869
866
930
873 ;
912 l;
786
1 ,153
771
1 ,132
676
637
795
573
773
557
£/
e/
e/
904
750
900
680
708
449
612 't
544 427 :
650 v
578
550 J
e/
e/
800
750
1 ,013
819
1;,415
819
678
1:,064
e/
e/
850
650
1,051
729
416
1st
2nd
3rd
4th
2,369
4,625
£/ 2,532
2,,351
2 ,847
2;,109
3<,246
2,228
3,056
1,902
2,561
£/2,527
£/ 2,782
e/2,554
• 2,454
2,665
1,837
2,197
6,994
9,526
5,198
7,307
10,553
5,,284
71,186
9,,747
£/5,309
e/7,863
5,118
6,955
9,151
1,996
4,170
c/ 2,282
2,,284
2,,529
1,,768
2,,854
2,637
2,571
1,528
1,779
a
V
;
?
5.,208;
6.,790 r
8,,568 j
$
Excluding finance companies 2/
quarter
quarter
quarter
quarter
^
930
904
1 ,013
October
November
December
1st
2nd
3rd
4th
?
732
746
976
£/
797
£/
72,9
£/ 1,006
1st half
Three quarters
Year
876
1 ,133
628
946
771
809
£/
£/
£/
July
August
September
quarter
quarter
quarter
quarter
J
1962 ..
2,,169
2,,970
1,,767
2,,330
1
1
9,,236
1
Year
9, 434
e/ Estimated by Federal Reserve.
$
£/ Preliminary.
'
f
JL/ Securities and Exchange Commission estimates of net proceeds.
v
If Investment Bankers Association of America estimates of principal amounts.
|
3/ Total new capital issues excluding offerings of sales and'consumer finance companies.
t
H. 14
Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
ci
1962 - I
II
III
IV
2,345
3,317
2,167
2,875
Gross proceeds for new
capital and refunding 1/
Common Memo:
Bonds
Foreign
Publicly Privately pfd. issues
Offered Offered
stock included
70
508
1,114
724
251
1,386
1,289
642
1,006
852
308
55
1,088
1,510
277
135
! 1963 - I
1
II
III
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
896
968
326
794
285
530
236
221
150
118
842
1,241
868
1,629
11964 - I .
2,499
4,851
2,798
978
1,321
792
1,221
1,640
1,513
300
1,890
493
29
105
84
418
723
5 75
438
856
634
273
1,663
59
1,240
1,383
1,264
1,049
1,340
1,246
810
756
871
1,116
891
1,459
380
550
459
279
336
283
511
183
626
452
694
675
431
318
501
481
549
751
217
95
113
100
100
87
125
159
83
56
182
196
46
21
42
10
10
27
148
216
227
297
272
237
240
214
515
341
222
230
107
100
78
201
131
198
71
92
58
86
25
39
41
13
64
369
373
499
187
187
441
531
461
637
985
710
805
2,234
1,155
1,461
892
812
1,094
895
338
279
361
383
470
468
234
183
375
175
526
342
353
480
537
623
434
500
579
550
121
88
91
1,372
148
370
224
129
140
170
5
16
8
34
36
35
16
19
49
n.a.
149
123
146
186
206
332
173
188
214
200
109
155
174
151
441
264
207
137
290
220
Quarter
or
Month
;
Total
iv
ii
III
s./
Net piroceeds fo:C
new joital 1/ i/
Communications
Other
issuers
Mfg.
Public
Utility
649
996
566
747
429
984
376
552
456
228
274
317
694
848
685
945
157
83
34
1,377
27
258
23
16
. 20
30
'
515
324
400
463
395
525
393
388
483
350
!>/ 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 & other transportatiLs®,
real estate & finance, & commercial & other.
Source: Securities & Exchange Commission.
H. 14
Other Security Offerings
(In millions of dollars)
1964
January
February
March
April
May
July
August
September
October
November
December
£/
E/
e/
e/
Jan, - Oct.
e/
Gross long-term If
Foreign government 2/
Federal agency 3/
1963
1963
1962
1964
4
82
69
30
75
26
16
3
75
160
540
Year
232
133
76
57
114
11
63
83
2
142
10
35
10
86
50
25
8
31
151
88
101
769
548
771
737
£/
l/
2/
B/
148
246
156
186
461
275
260
160
459
509
174
200
I
150
175
—
b/1,204
1962
I1
-—
i
f
967
1,167
1,188
New short-term 4/
State and local government 5/
Federal agency 3/
January
February
March
April
May
July
August
September
October
November
December
Jan. - Oct.
103
236
-407
442
81
-80
-9
n.a.
Year
75
272
-367
589
-30
-10
62
208
-173
259
146
-339
18
466
-186
127
-84
-118
78
339
-406
71
234
-161
-78
-336
23
97
183
239
-333
167
1
£/ 338
885
305
£/ 301
692
378
-106
-189
-482
292
195
319
414
327
258
123
-102
551
1,151
1.600
i
T
247
-156
226
-364
82
284
261
227
-157
379
55
-80
I
'
1,029
1.004
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. ^/Includes securities offered in the U.S. by foreign governments and their political subdivisions and international organizations. Source: Securities & Exchange Commission. 3/
Issues not guaranteed by the U.S. Government. Source: Long-term, Securities & Exchange
Commission; short-term, Treasury Dept. & 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 or refunding issues or from other funds. Data include only issues with
original maturing 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
Digitized
for may
FRASER
included
have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal
Reserve.
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. Louis
$
l
\b
H. 14
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) JL/
Proceeds of Large Issues Offered
(In millions of dollars)
Total
• Oct.
Nov.
Dec.
Jan.
Fab.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
446
180
547
307
263
335
,557
452
650
291
142
376
187
Bonds
(other than
convertibles)
380
117
515
225
200
296
235
415
390
178
125
26?
108
Convertible
bonds
60
35
Stocks
66
63
32
22
28
38
1,271
37
260
113
17
25
81
79
State
and
local
governments
Other
2/
174
200
734
373
111
577
358
282
698
274
384
544
459
558
419
50
20
15
275
260
104
15
502
Large Individual Issues Offered November 2 through 13
>;
Issuer
<
Corporate
Type 2/
Amount
(millions
of
dollars)
Maturity
Coupon
rate or
net interest cost
Offering
vleld
Rating
;Ncne.
'State and local government
G.O.
24.0
J 1965-84
2.96
2.10-3.06
i Aa
]State cf Delaware
Los Angeles Fid. Gontl.
Rev.-Q.-Ut.
10.0
,
1966-89
3.17
2.25-3.25
j
Aa
Dist., Calif.
G.O.
44.7
! 1965-95
3.24
2.15-3.25
j A
Baltimore, Md.
Other
None
-Rights offering. n.a.--Not available.
1/ Includes corporate and other security offerings of $15 million and over; State & local
government security offerings of $10 million and: over.
2/ includes foreign government and International Bank for Reconstruction and Development
issues and non-guarante.'d issues by Federal agencies.
3/ In the case of State & local government securities, G.O. 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 least paymen"
I
b
H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treasury) _!/
Expected Proceeds from Forthcoming Large Issues
(In millions of dollars)
During month following
date shown
State and
Corporate
Other 2/
local govt.
I 1963 - Oct.
Nov.
Dec.
i 1964 - Jan.
Feb.
Mar.
Apr.
May
31
29
31
31
28
31
30
28
30
July 31
Aug. 31
Sept. 30
Oct. 30
145
392
305
155
224
1,587
651
600
292
92
402
186
'
255
137
469
316
454
669
345
341
539,
120
511
500
254
--
Corporate
--
145
1 ,992
=1 ,905
——
1 ,771
1 ,649
1;,837
844
668
307
167
442
186
——
25
15
15
Subsequent to
date shown
State and
local govt.
1
Other 2/ i
401
349
731
667
646
953
575
598
716
588
680
626
549
<
-——
25
15
15
—
Forthcoming Large Offerings as of November 13
Issuer
Type
Amount
(millions
of
dollars)
Approximate date of
offering
Corporate
*Granite City Steel Co.
^Pacific Gas & Elec. Co.
Conv. sub. deb.
1st & ref. mtg. bds.
30.0
65.0
Dec.
Dec.
G.O.
Rev.-Rent.
Rev.-Q.-Ut.
G.O.
Rev.-S.T.
11.2
72.3
25.0
40.9
33.8
Nov.
Nov.
Nov.
Nov.
Nov.
1
2
State and Local Government
Hempstead, New York
N. Y. Housing Fin. Agency
*Port of New York Auth*
Phila., Pa.
Florida Dev. Comm.
17
18
19
24
Forthcoming Large Offerings as of November 13 (Cont'd)
Issuer
Type
Amount
(millions
of
dollars)
Approximate date of
offering
k
State & Local Government (Cont'd)
Florida State Bd. of Education
Los Angeles Unif. Sch. Dist., Calif.
*Publie Housing Auth.
State of California
Mass. Port. Auth.
Pittsburgh, Pa.
Dade County, Fla.
Va. State Highway Auth.
Forth Worth, Texas
^
Rev.,-Rent.
Rev,,-Rent.
--
G.O.
Rev. -Q.-Ut.
G.O.
G.O.
Rev. -Q.-Ut.
G.O.
25,.0
25.,0
104.,0
100.,0
43. 0
35. 0
46. 0
31. 0
14. 1
Dec. 8
Dec. 8
Dec. 9
Dec. 15
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
>
Other
Nov. 24
Bonds
15. 0
Republic of Finland
3
*--Included in Table for first time.
9%
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 Development
issues and non-guaranteed issues for Federal agencies.
^
Note: --Deletions for reasons other than sale of issue: None.
,;>#
&
t
17
H. 14
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:
| Sale
I Date
r
Public Offerings
Amount
(millions
of
dollars)
Issuer and Description of
Issue
A.
15.0
•1l0/27
35.0
,10/29
100.0
Sold Sept. 1 through November 13 .
* City of Oslo, Norway—5-1/2 per cent bonds maturing
1984, reoffered to yield 4.89 per cent to investors
in the U.S. and 5.60 per cent to other investors.
United Mexican States--6-l/47» sinking fund bonds
maturing 1979, reoffered to yield 6.43%.
Inter-American Development Bank--4-1/2% bonds maturing
1984, reoffered to yield 4.57%.
i
{
§
i;
i
B.
Prospective Offerings
None
*
Difference in reoffering yields on bonds sold to U.S. citizens and those sold to
foreign citizens reflects an upward adjustment of 9.19 per cent in the price paid by
U.St citizens. This premium was collected by the underwriters in accordance with the
provisions of the new Interest Equalization Tax. This tax is collected—under a scale
of rates which rises with maturity--when U.S. lenders buy new security offerings from
borrowers in certain designated "developed" countries.
j
i
M-2
Part II:
Date
reported
9/3
T
Private Placement--Reported Sept. 1 through November. 13
Amount
(millions
of
dollars)
6.5
I
1
Issuer and Description
of Issue
Urbanizaciones Guacara C.A. --5-1/4% prom,
notes, maturing 1984--no information
available on takedowns.
: 9/30
60,0
City of Montreal, Canada—5% sinking fund
debenture, maturing 2004--no information
available on takedown.
10/2
50.0
Bell Telephone Co. of Canada--4.607. 1st
mtg. bds., maturing 1989--no information
available on takedown.
10/19
7.5
Province of New Brunswick--4-3/4% sinking
fund debenture, maturing 1989—no information available on takedown.
10/20
25.0
The Alberta Government Telephone Commission-4-3/4% debenture, maturing 1989—no information available on takedown.
11/4
60.0
City of Montreal--5% sinking fund debenture,
maturing 2004--no information available on
takedown.
11/5
7.9
Montreal Catholic School Comm.--5% sinking
fund debenture, maturing 1989--no information available on takedown.
* 11/11
25.0
ote:
Toronto—Dominion Tower, Ltd.--4.85% first
mortgage sinking fund bonds, maturing 1989-no information available on takedown.
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 data a placement is reported. *--Included in table for first time.
j
@FedFRASER