Full text of H.16 Capital Market Developments : November 2, 1964
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Not for Publication KSCOBTBOLEED AFTER SIX MONTHS
November 2, 1964.
CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES
LIBRARY
NOV
4
1964
RESERVE ;.A
(including Review of Capital Markets and
Savings Flows in Sep'- 1 cr)
C.-
Corporate and municipal bond markets. Corporate borrowers
are expected to offer only $10 million worth of securities to the public
this week. Borrowing scheduled by State and local governments will fall
to $65 million, down 40 per cent from last week's relatively low level.
Long-Term Public Security Offerings 1/
Week
Ending
Corporate
New Capital | Refunding
State & local govt.
New Capital
| Refunding
Sold:
. 52 week avg.
Oct.
Oct.
23
30
134
2
49 r/
40
178
9
279 r/
112
1
Scheduled:
Nov.
7
10
--
65
1/ Federal Reserve estimates based on published reports of issues solti
and scheduled for offering; corporate rights offerings are included
as of the date subscription rights expire, r/ revised.
Of the two corporate issues bound by syndicate price restrictionis
a week ago, one sold out and then went to a % point premium; the other
remains in syndicate with about 1/3 or $4 million still unsold at week's
end. As Moody's averages of yields on seasoned corporates had failed to
reflect increases in market yields several weeks ago, so the averages
also failed to register the decline in yields in the market last week.
In fact, Moody's averages of yields on high-quality (Aaa) seasoned
corporates showed on increase of 1 basis point-although observers spoke
of generally rising prices in the market spurred by active trading of
individual issues.
Last week's largest municipal issue, the New York State
housing bonds, was a quick sellout and the other new issues were about
half sold. This vigorous retail demand also helped dealers dispose of
some older issues and work down their advertised inventories of taxexempts by $125 million. Prices rose and the Moody's yield averages
on high-grade (Aaa) and lower-grade (Baa) seasoned issues declined by
1 and 2 basis points respectively.
H. 14
-2
Yields in Securities Markets
Change from
preceding week
(basis points)
Level latest week
(per cent)
High-Grade
Notes and Bonds
Corporate
New
Seasoned
+ 1
U.S. Govt.
Long-term
3-5 year
4.15
4.03
- 2
-2
State and local govt.
3.11
- 1
Money Market
Federal Funds
Treasury bills
3-month
6-month
Finance Company Paper
3.45
- 3
___
3.56
3.71
3.94
- 2
- 3
Stock prices. Common stock prices declined moderately last
week, easing the Standard and Poor's composite index of 500 stocks to
84.86 from 85.14 on October 23. Volume of shares traded continued to
contract last week--to 4.6 million shares per day from 4.8 million in
the week ending October 23 and more than 10 per cent below the September
average.
Capital markets in October. Corporate security financing to
obtain new capital approximated $0.8 billion last month, one-fifth less
than in October 1963, but about the same as in the comparable 1962
month. Included in this total were large publicly offered issues
amounting to $187 million, $108 million in nonconvertible bonds and
$79 million in common stocks.
Largely reflecting the light new issue calendar over the
remainder of the year, average yields on new offerings of corporate
bonds (Aaa basis) edged off to 4.44 per cent early in the m o n t h — 8 basis
points below the mid-September peak. New issues offered during late
September early-October had moved very slowly at retail and when the
last new issue of the month was priced to yield an adjusted 4.46 per
.cent, underwriters released their substantial unsold balances from
syndicate price restrictions. These issues initially fell in price
in the secondary market raising yields 2-7 basis points from their
original offering levels. Late in the month, however, their quoted
prices recovered enough to offset most of the previous loss. The
Last competitive issue offered sold out at its original offering price,
and at month-end, dealers' inventories still bound by syndicate
restrictions were nominal.
-3-
H. 14
Meanwhile in the municipal market, salus of State and local
government bonds to obtain new capital totaled $850 million, one-fifth
less than in October 1963. In addition, about $50 million in bonds were
sold to refund outstanding securities. Retail distribution of last
month's new supply was generally favorable. Dealers' advertised inventories of unsold securities reached $710 million near mid-month,
but increased demand later lowered the total to $577 million at monthend, off about $95 million from the end of September. Yields on Aaarated issues (Moody's) changed little on balance during the month, but
yields on lower grade issues fell moderately late in October.
In the stock market, common stock prices rose to a new alltime high of 85.24 on October 12, and fluctuated within a narrow range
below this level throughout the remainder of the month. At 84.86 on
October 30, prices were less than one-half of a per cent below their
high and one per cent above their September 30 close. Trading volume
averaged 4.8 million shares a day in October.
FNMA secondary market operations. .Sales by the Federal National
Mortgage Association in the secondary market declined further in September
to $1.6 million. This was a new low for the year, though the same as a
year earlier when sales had about completed their drop from the exceptionally
high plateau of more than $165 million obtained in the previous spring.
Purchases by FNMA also declined in September--to $7.2
million. This reflected mainly a dip—apparently temporary-zln acquisitions
of mortgages from the Federal Housing Administration in exchange for FHAdebentures held by FNMA. Offerings also declined in September--to $15.1
million.
In October, as authorized by the Housing Act of 1964, FNMA,
acting in a trustee capacity, sold $300 million of serial participation
certificates to a nationwide group of underwriters for public distribution. The certificates, which were quickly absorbed, are backed by a
pool of mortgages held by FNMA ($425 million) and the Veterans
Administration ($200 million). None of the portfolio acquired by FNMA
through its secondary market operations is included in the pool.
September savings flows. Savings flows to savings and loan
associations were at a high level in September. The net inflow of
$1,051 million during that month was 15 per cent greater than of a yearago with the tax cut apparently continuing to provide a positive
influence. (See Table I) For the first nine months of this year, such
flows lagged 6 per cent behind those of 1963 but, if recent year-overyear gains are maintained, growth in savings capital in 1964 should
approach last year's record level. Seasonally adjusted data show this
recent upswing in savings flows. Seasonally adjusted net inflows in both
August and September this year were not only appreciably larger than those
in earlier months of 1964 but also above the average for the first four
months of last year which reflected dividend rate increases at a number
of institutions at the start of that year and almost reached the January
1963 record. (See Table II).
-4TABLE 1
WET INCREASE IN
REGULAR DEPOSITS AT
MUTUAL SAVINGS BANKS
SAVINGS SHARE CAPITAL AT
SAVINGS & LOAN ASSOCIATIONS
Net
Increase
($ million)
Jan. - April
May-
July
Aug.
Sept.
9 months avg.
Net
Increase
($ million)
Change from previous
year
Per cent
Amount
Change from previous
Amount
Per cent
2,641
-861
-25
1,185
+279
983
+ 14
+ 1
270
+ 34
+14
1,748
+106
+ 6
478
+ 69
+17
15
+ 51
284
+163
+135
+123
+19
344
+176
+105
1,051 e/ If
+135
+15
480 £ /
+ 63
+15
7,204
-432
-
+784
+35
766 £ /
3,041
6
+31
If Estimate includes data for all insured associations (accounting for roughly 96 per cent
of the savings capital for all associations) that report to the Federal Savings and Loan
Insurance Corporation, plus an allowance for non-insured associations estimated by the
Federal Reserve.
NET INCREASE IN
SAVINGS SHARE CAPITAL AT
SAVINGS & LOAN ASSOCIATIONS
REGULAR DEPOSITS AT
MUTUAL SAVINGS BANKS
(Seasonally Adjusted) If
(In millions of dollars)
1964
. - April avg.
May
July
Aug.
Sept.
780
880
997
976
1,058
1,057
1963
996
885
957
822
907
832
If Seasonally
adjusted share figures are very
dividend payment practices in recent years
1964
341
270
340
423
438
339
1963
268
279
225
264
253
288
rough approximations because major changes in
have strongly influenced the pattern of monthly
'
While net mortgage acquisitions by these associations have
continued to be quite large, the volume in most months has been smaller
than in the comparable 1963 period. This probably reflects both the
slackening in demand for mortgages and the reduced accessibility to
funds at the Federal Home Loan Banks as FHLB advances in the third
quarter rose only $47 million relative to a $753 million increase in
the corresponding 1963 months.
Savings flows to mutual savings banks also continued to
respond to the tax cut. The net increase in regular deposits during
September was a monthly high for 1964. However, the year-to-year gain
was substantially less than that achieved during the summer months when
several large New York City banks were conducting intensive compaigns
to attract funds. If deposit growth in the remaining quarter of 1964
exceeds that of the comparable 1963 period by even the September margin
of 15%, the annual increase in such deposits should exceed 1963's record
by about $1.0 billion (30%).
At the same time, savings flows: to commercial banks were heavy.
Time and savings deposits rose $1.1 billion during September, about
75 per cent above the average for the past three Septembers. Part of this
unusually large gain can probably be attributed to calendar peculiarities
(since estimates are as of last Wednesday of month) which cause the
September 1964 growth to cover a five-week period as compared to a
four-week period last year.
For the first nine months of this year, the cumulative deposit
gain amounted to $9.7 billion, 7 per cent less than in the like 1963
period and 18 per cent below the 1962 record. Moreover, the proportion
of this increase attributable to savings deposits (those deposits
most closely resembling savings capital at savings and loan associations
and regular deposits at mutual savings banks) was somewhat smaller than
last year and sharply smaller than during 1962.
Estimated security financing in November. New security
financing by both corporations and State and local governments is expected to be lower this month than in October, with the sharpest drop
coming in municipal financing.
New capital financing by corporations is expected to total
$750 million this month, down slightly from both the previous month
and November 1963. Three-fourth, of this volume is expected to be
accounted for by private placements.
-6-
H. 14
Bond sales of State and local governments for new capital
are estimated at $650 million in November, almost one-fourth less than
in the previous month and one-tenth under last November. Large issues
currently on the calendar for public offering total $254 million.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.
Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.
1
EX HIBIT A. Poll I
LONG-TERM BOND YIELDS, HIGH-GRADE
(\J
1.0
Exhibit A - Part II.
Corporate
Aaa y
Date
U . S . Govt,
long-term 2/
State and
local
government
Aaa y
Spread between
U. S. Govt, and
Corporate
State and
Aaa
local Aaa
(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
1961i - High .
Low
Oct. 2
Oct. 9
Oct. 16
Oct. 23
/Oct. 30
£/
U. 61(1/29/60)
4.46(9/35)
4.21(3/17)
4.43(2/16)
4.23(13/2$
U*37(13/27)
1.19(3/29)
4.43(10/30)
4.35(2/28)
4.42 (1/8/60)
U*07 (12/29)
3.70 (5/12)
4.12(2/23)
3.85 (12/28)
U.16 (12/27)
3.87 (Vie)
4.20(4/17)
4.11(7/3)
3.6$ (9/24/59)
3.37 (7/6)
3.12 (2/23)
3.26 (3/4)
2.88 (u/e)
3.18 (13/21)
2.93 (3/28)
3.16(3/26)
3.07(7/16)
.59 .57
•34
.47
.30
.35
.21
.29
.19
.92
.76
.46
1.04
.80
1.05
.88
1.09
1.01
4.42
4.43
4.42
4.42
4.43Z
4.15
4.16
4.17
4.17
4.15
3.11
3.11
3.11
3.12
3.11
.27
.27
.26
.25
.28
1.04
1.05
1.05
1.05
1.04 •
p/ Preliminary.
%/ Weekly average of daily figures. Average tern of 'bonds included is 22-24 years,
g Weekly average of daily figures. The series includes bonds due or callable in 10 years or more*
3/ Thursday figures. Only general obligation bonds are included) average term is 20 years*
Note.-—Highs and loirs are for individual series and may be on different dates for different
series. For spreads, high refers to widest, and low to narrowest*
EXHIBIT B, Part 1
LONG-TERM B O N D YIELDS, L O W E R - G R A D E
Exhibit B - Part II
Corporate
Baa 1/
State and
local govt.
Baa 3/
Spread between
Aaa and.Baa
State and
Corporate
local govt.
(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
- Low
196k - High
Low
5.3$(2/ia/60)
5.13(10/27)
5.00(4/21)
5.11(1/5)
ii. 92 (12/21)
it. 83 (31/35)
4.87(6/26)
4.80(10/16)
U. 1+6(3/7/60).
4.16(3/23)
3.93(13/9)
U.0U(3/11)
3.52(5/37)
3.63(6/27)
3.52(5/23)
3.59(10/8)
3.51(4/16)
4.81
4.80
4.80
4.81
4.81^
3.59
3.59
3.58
3.58
3.56
U.93(V4)
Hotel For footnotes see Exhibit A*
•8U
.81
.66
.7k
.63
.71
.1*8
1.08
.93
.57
.82
.56
.48
.37
M
.49
.36
.39
.37
.38
.39
.38
.48
.48
.47
.46
.45
1
^XHIBIT C. Port 1
SHORT- AND INTERMEDIATE-TERM INTEREST RATES, GOVERNMENT
V
|\A
M
™
6-M0MIH III
Market Yl.l h
-
,
* \ If.t. DISCOUNT
1
J
3-eONTH llllS'
M~a r It. 1 Yl.ld»
ii II
I i i i i If 1i 1iM M 1 1 1 M
i i i i i i I i1 IIII 1i 1 1 1 1 11 1II1 1 1 1 1 II
1910
19*1
11*1
1**3
m«
Exhibit C - Part II
Date
Discount
rate
y
1959-60 - High IwOO
3.00
1961 - High
3.00
Low
3.00
1962 - High
3.00
Low
3.50 .
1963 - High
3.00
Low
1961* - High
3.50
Low
3.50
3.50
3.50
3.50
3.50
3.50
Yields
6-month
. bills 2/
(per cent)
3-month
bills 2/
U. 59 (V8/60)
L ' W
2.97(7/13)
2.65(6/8)
b
W
2.35(4/28}
3.13(7/20)
2.7U(6/8)
3.55(13/15) 3.68(12/6)
2.88(3/15) 2,93(3/8)
3.58(10/23) 3.74(10/23)
3.43(7/17) 3.52(7/3)
3.55
3.57
3.58
3.58
3.56 V
3.71
3.73
3.72
3.74
3.71
3-5 year
issues 2/
5.00(12/24/39)
3.86(8/11)
Spread between yields on 3month bills and yields on
6-mo. bills|3-5 yr. issues
.79
.10A
1.81
3.88(2/2)
.21*
3.14(12/28)
1.07(12/27)
3.1*1* ( V ^ )
4.23(3/27)
3.98(8/7)
.17
1.51
.92
1.19
.52
.70
.21
.04
.71
.47
4.02
4.05
4.06
4.05
4.03
.16
.16
.14
.15
.15
.47
.48
.48
.47
.47
3.15(5/12)
.12
.02
.01*
.1*2
Weekly rate eh own is that in effect at end of period at the federal Reserve Bank of Heir York.
Market yield) tmekly averages computed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
Note.—Sighs and Iowa are for individual series and may be on different dates for different series*
for spzeads, high refers to -widest, and low to narrowest.
SHORT- AND INTERMEDIATE- TERM INTEREST RATES,
BANKS AND OTHER PRIVATE BORROWERS
STOCK EXCHANGE
CAll LOANS
FINANCE COMPANY m i l
t.l. DISCOUNT IAIE
«
a
i
y
IEDEIAI fUNOS
' ' I I I I I I''I I'
I II I I I IIIIII I I I I I I I I
mi:
Exhibit D - Part II
Stock exchange
call loan l/
Date
Prime
rate 1/
Finance companypaper 2/
Federal
funds 3/
Spread between
3-mo. bills and
finance co. paper
[per cent)
1959-60 High
1961 - high
Low
1962 - High
Low
1963 - High
Low
1961) - High
Low
Oct. 2
Oct. 9
Oct. 16
Oct, 23
Oct. 30
2/
5.50
W o
U.5o
U.5o
U.5o
U.5o
U.50
4.50
4.50
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)
li.00 (5/13/60)
2.90 (11/17)
.1*3 ( V 2 7 )
3.00 (12/28)
1.30 (3/26)
3.50 (12/27)
2.15 (7/26)
3.50(9/25)
2.75(10/16)
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
3.81
3.90
3.94
3.94
3.94
3.35
3.30
2.75
3.48
3.45
5.00
U.50
lt.50
U.50
a. 50
1.02
.56
.11
•U5
.19
.39
.12
• 41
•20
.26
.33
.36
.36
.38
Weekly rate shown is that in effect at end of period* Stock Exchange call loan rate is going 'rat#
on call leans secured by customers1 stock 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.
jy 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
Digitized
for
saleFRASER
transactions as reported to the Federal Reserve Bank of New York.
Note:—flighs and. lows are for individual series and nay be on different dates for different series#
http://fraser.stlouisfed.org/
For sereads, high refers to widest, and lor to narrowest#
Federal Reserve Bank of St. Louis
iXHIItt t, f o r . 1
STOCK M A B K K T
n c l
i.llert
isav\
W
V
\
^
1 • / — * - < " — :
/
SIOCI S H U T CIIOII
*tU«6l IS $1111$
Mill!
.ho,
VOIMSF
-
V V y
]
1
5
«•
YIIIDS
s
i
A W
1 1 1 1 1 1 1 11
-**>
-m.— > -
1 1 1 1 II 1 1 1 1 1 1 II II II
1 11 1 1 1 1 1 1M 1
I N1 I M
LXL
Exhibit E - P a r t II
Stock price
index 1/
Trading
Common
volume 3/
stock
yields 2/ (millions
(per cent) of shares)
Stock mairketcu stomal credit
Customers1
Bank
debit balTotal
loans to
"others" $ j
ances h/
(In millions of dollars)
*
V 1961-62 - High
Low
* 1963 - High
) 196U - High
Low
t Sept.
"T Oct.
v Oct. 16
< Oct. 23
Oct. 30 £/
7lt.Wt(iV2%)
85.22(10/9)
75.50(1/3)
2.80
3.96
3.01
2.94
3.10
10.1
2.it
6.5
6.1
3.6
83.41
84.85
84.83
85.14
84.86
3.00
2.96
2.95
2.95
2.95
5.2
4.8
5.1
4.8
4.6
72.0U(i2/e/6l>
52.68(6/22/62)
5,602(12/61)1*,259(12/61) 1,108(5/9/62)
U,U2U( 1/61) 3,253(3/61) 1,161(3/8/61)
7,298(11/63)5,586(11/63) 1,738(^/23)
7,314(4)
7,096(8)
5,524(1)
5,187(8)
1,923(10/7)
1,720(1/22)
7,142
5,221
1,921
1,917
1,917
1?*St2daidT^d*Poor* s^co#MitTi!dex of 500 oonnon stocks, weeklyolosing prioes, 1941^43-10.
Monthly data are averages of daily figures rather than of Friday*# only. Highs and lows are for
Friday's data only.
4 2/ standard and Poor's composite stook yield based on Wednesday data_oonverted to weekly olasing
>
prices by Federal Reserve. Yields shown are for dates on which price index TO ached its high
£
3/ Averages of daily trading volume on the New York Stook Exchange.
37 E n a of month figures for number firms of the New York Stook Exchange which carry margin accounts;
excludes balances secured by U. S. Government obligations.
. . „
.
others. For further detail see Bulletin.
FEDERAL N A T I O N A L M O R T G A G E A S S O C I A T I O N ^
SECONDARY MARKET OPERATIONS
M i l l i o n ! of doll
n TIT
ruitmtin
X
\
1961
I960
1962
1963"
.1964
Exhibit F - Part II
Date
1963 - Sept.
Oct.
Nov.
Dec.
1964 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Estimated offerings to FNMA
Standby
Immediate
To tal
commitment
purchase
20.1
13.5
12.0
14.1
15.6
15.1
20.1
28.5
. 28.9
9.3
8.4
20.5
15.1
Purchases
by
FNMA
(In millions of dollars)
15.3
.2
16.3
.1
.1
7.7
10.9
.1
11.1
.1
13.0
.1
16.8
.3
26.4
.1
25.8
-3.8
5.5
.3
15.2
7.2 ,
.1
19.8 .
18.4
11.8
14.0
15.5
15.0
19.9
28.5
28.9
9.2
8.0
20.5
14.0
Sales
by
FNMA
1.6
2.2
.6
15.8
8.8
2.3
3.8
12.7
10.9
9.5
12.6
4.4
1.6
RSIWPWh"
contracts. Data exclude FNMA. activity under Special Assistance and Management and
Liquidating Programs.
Xb
t X HI BIT O. Port 1
YIELDS O N NEW A N D SEASONED CORPORATE BONDS
-\UJ—I—I—I—l
Exhibit 0 - Part II
Yields on New Corporate Bond Issues Adjusted to an Aae bails
Aa't of Issues Average
yield
Included (ell.
of
{per cent)
issues of dollars)
Number Aa't of Issues Average
yield
Included (mil.
of
(per cent)
Issues of dollars)
Monthly averages;
1964 - Jan."
Feb.
Mar.
Apr.
May
June
July
Aug.
c/ Sept.
Oct.
Weekly averages;
150.0
125.0
166.0
130.0
278.0
230.0
60.0
75.0
239i0
70.0
4.50
4;38
4.43
4.48
4.46
4.43
4.37
4.39
4.49
4.46
Sept. 4
11
18
25
Oct. 2
9
16
. 23
30
40.0
40.0
60.0
69.0
70.0
12.0
18.0
.
4.48*
4.48
4.52
4.46
4.46
4.44
4.46
4.53(5/8)'
4.30(2/21)
smpsfflaaik
1964 - High
Low
Motet
A r e r a g e s o f o f f e r i n g y i e l d * on a l i n e * issust o f p u b l i c l y o f f e r e d o o r p o r a t e bonde r a t e d i a a . i * M 4
H. 14
Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Ca pital
1964
Corporate
1963
1962
930
685
754
613
594
1,144
549
860
819
2,178
1,069
1,378
930
904
1,013
1,153
771
1,132
July
August
September
£/
797
£./
72,9
£/ 1,006
676
637
795
573
773
557
October
November
December
e/
e/
800
'750
1,013
819
1,415
819
678
1,064
e/
e/
1st
2nd
3rd
4th
2,369
4,625
fi/ 2,532
2,351
2,847
2,109
3,246
6,994
9,526
5,198
7,307
10,553
January
February
March
April
May
June
quarter
quarter
quarter
quarter
1st half
Three quarters
Year
'
quarter
quarter
quarter
quarter
1,996
4,170
e/ 2,282
2,284
2,529
1,768
2,854
State and Local 2/
1963
19628
732
746
976
876 *
1,133 '
628 ^
fi/1,215
£/ 666
£/ 902
869
866
930
873,;'
912^
786,5
£/
e/
e/
904
750
900
680
708
449
61L:
850
650
1,051
729
416
2,228
3,056
1,902
2,561
£/2,527
£/2,782
e/2,554
2,454
2,665
1,837
2,197
2,63:^
2,57^,
1,523:
1,77941
5,284
7,186
9,747
fi/5,309
e/7,863
5,118
6,955
9,151
5,2081%
6,79Q^
Excluding finance companies 3/
1st
2nd
3rd
4th
1964
£/
£/
£/
946
771
809
42T
.
I
B'S**#
1
.I#'
2,169
2,970
1,767
2,330
' 19
9.434
Year
9,236
e/ Estimated .by Federal Reserve.
{•&£/ Preliminary.
'
^
1/ Securities and Exchange Commission estimates of net proceeds.
£
2/ Investment Bankers Association of America estimates of principal amounts.
3/ Total new capital issues excluding offerings of sales and; consumer finance companies. >V;
H. 14
Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
2,345
3,317
2,167
2,875
Gross proceeds for new
capital and refunding 1/
Common Memo:
Bonds
and
Foreign
Publicly Privately pfd.
Offered Offered
stock included
70
1,114
508
724
1,386
1,289
642
251
852
1,006
308
55
1,088
135
1,510
277
'1963 - I
II
1
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
896
968
326
794
285
530
236
221
150
118
.1964 - I .
II
Hie/
IV™
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
575
438
856
634
273
1,663
59
1,240
1,383
1,264
1963 - Apr.
May
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
338
279
361
383
470
468
234
183
375
526
342
353
480
537
623
434
500*
5 79
121
88
91
1 ,372
148
370
224
129
140
5
16
8
34
36
35
16
19
49
149
123
146
186
206
332
157
109
83
155
34
174
1,377
151
27
441
258
264
23
207
16
137
20
290 •
515
324
400
463
395
525
393
388
483
Quarter
||
Month
41962 - I
1
gi
I
IV
#
i*
J,
July
Aug.
Sept.
Oct.
Nov.
Dec.
Total
N:
985
. 1964 - Jan.
710
Feb.
805
"v
Mar.
2,234
Apr.
1,155
&
May
1,461
June
892
«
July 2/
Aug. £/ 812
Sept._^ 1,094
Oct.
Nov.
Dec.
Net proceeds foir
new capital 1/ 1/
Mfg.
Public
Utility
649
996
566
747
429
984
376
552
456
228
274
317
694
848
685
945
842
1,241
868
1,629 .
lis
188
214
Communications
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 & other transportation,
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
B/
E/
e/
Jan. - Sept.
e/
Gross long-term If
Federal agency 3/
Foreign government 2/
1963
1962
1964
1963
4
82
69
30
75
26
16
3
75
380
Year
232
133
76
57
114
11
63
83
2
142
10
35
10
86
50
25
8
31
151
88
101
769
397
771
737
--
275
£ / 260
£/ 160
1962
148
246
156
186
461
459
--
—
—
--
150
175
174
200
I
e/ 695
793
1,188
1,167
1,188
New short-term 4/
Federal agency 3/
State and local government 5/
January
February
March
„ April
May
July
August
September
October
November
December
Jan. - Sept.
£/
103
236
-407
442
81
-80
-9
127
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
626
234
692
378
-78
-336
23
97
183
239
-333
167
jd/
-38
-106
-189
-482
292
195
319
414
327
258 .
123
-102
551
!
1
247
-156
226
-364
82
284
261
227
-157
379
55
-80
1,028
650
1.600
1.004
f
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/Includes securities offered in the U.S. by foreign governments and'their political sub?
divisions 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 frc
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 note:'
included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal
*
Reserve.
n
H. 14
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)
Total
1963 - Oct.
Nov.
Dec.
1964 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Corner ate
Bonds
Convertible
(other than
convertibles)
bonds
446
180
547
307
263
335
1,557
452
650
291
142
376
187
380
117
515
225
200
296
235
415
• 390
178
125
269
108
. 60
35
51
Stocks
State
and
local
governments
66
63
32
22
' 28
38
1,271
37
260
113
17
25
Other
2/
174
200
81
734
373
111
577
358
282
698
274
384
544
459
558
50
20
15
275
260
104
15
79
419
502
.
Large Individual Issues Offered During October.
Type y
Amount
(millions
of
dollars)
Maturity
Coupon
rate or
net interest cost
Offering
yield
Rating
Corporate
Columbia Gas System, Inc.
Texas Eastern Trans. Corp.
^Southern New Eng. Tel. Co.
Southern Calif. Ed. Co.
Jersey Central Pwr. & Lt.Ca
40.0
Deb.
1st mtg. p. 1. bds. 50.0
Com. stk.
24.7
Com. stk.
53.8
18.0
1st mtg. bds.
: State and Local Government
1 Aurora, Colo.
Detroit, Mich.
West Virginia University
State of Vermont
G.O.
Rev.-Ut.
Rev.-Rent.
G.O.
10.0
39.0
10.0
10.8
1989
1984
4-5/8
4-3/4
4.57
4.75
1994
4-5/8.
4.55
1973-2007
1969-98
1966-95
1966-84
3.72
3.50
3.68
2.96
A
Baa
r
3 .00-3.75
2.70-3.55
2.40-3.752/
2.20-3.05
A
Baa
Aa
Baa
Aaa
•V
K-2
Large Individual Issues Offered
(Cont'd)
Coupon
Amount
(millions
Type 3/
of
dollars)
Maturity net inter
est cost
10.0
G.O.
100.0
G.O.
15.0
G.O.
10.0
G.O.
139.8
G.O.
Rev.-Rent. 27.9
G.O.
11.5
34.8
G.O.
1965-84
1974-2014
1967-84
1966-85
1966-95
1966-88
1966-2004
1965-2014
3.06
3.59
3.22
3.16
3.28
3.35
3.28
3.38
1969
1965-74
1979
1984
4-1/4
4-1/8-4-3/8
6-1/4
4-1/2
Offering
yield
Rating
State and Local Government (Cont'd)
Santa Clara, Calif.
State of California
State of Hawaii
Phoenix, Arizona
New York City, N. Y.
. Georgia State Sch. Bldg. Auth
Baltimore Co., Md.
State of New York
5/
2,.95-3,.80
2..60-3,
2..40-3,
2..45-3,.55
2.,40-3..45
2. 35-3.
2. 10-3.
>
—
flr
Aa
A %
A 4.
A
h
Aa ^
A e
Aa 0
Other
Federal Land Banks
Federal National Mtg. Ass'n.
United Mexican States
Inter-American Devel. Bank
Bonds
S.F. bds.
Bonds
67.0
300.0
35.0
100.0
4.21
4.10-4.386.43
4.57
*--Rights offering, n.a.—Not available.
•
1/ 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.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 payments.
4/ 2-1/2 per cent bonds maturing 1995 reoffered to yield 4.10 per cent.
i
5/ Bonds maturing 1983-84 not publicly reoffered.
6/ Bonds maturing 1985 not publicly reoffered.
„
<!
U Bonds maturing 2002-14 not publicly reoffered.
3
H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treasury) 1/
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.
Ncv.
Dec.
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
--
--
25
15
15
Corporate
Subsequent to
date shown
State and
local govt.
145
1,992
1,905
1,771
1 >649
1,837
844
668
307
167
442
186
401
349
731
667
646
953
575
598
716 ~
588
680
626
549
- --
--
Other 2/
Forthcoming Large Offerings os of October 30
Type
Issuer
}
Amount
(millions
of
dollars)
Approximate date of
offering
Corporate
None.
State and Local Government
State of Delaware
Los Angeles Fid. Contl. Dist,,
Calif,
Baltimore, Maryland
*Hempstead, New York
N. Y. Housing Fin. Agency
Univ. of Neb. Bd. of Regents
*Phila., Pa.
Florida Dev. Comm.
G.O.
24.0
Nov.
Rev. -Q, -Ut.
G.O,
G.O.
Rev.-Rent.
Rev.-Rent.
G.O.
Rev.-S. T<
10,0
45. 7
11.2
72.3
Nov.
Nov.
Nov.
- 16,0
40.9
33.8
Nov,
Nov.
Nov.
10
12
18
19
24
25
15
15
--
L-2
-V
Forthcoming Large Offerings as of October 30 (Cont'd)
Issuer
Type
Amount
(millions
of
dollars)
&
Approximate date of
offering
I
State and Local Government (Cont'd)
Los Angeles Unif. Sch. Dist., Calif.
*State of California
Mass. Port. Auth.
Pittsburgh, Pa.
Dade County, Fla.
Va. State Highway Auth.
Forth Worth, Texas
Rev.-Rent.
G.O.
Rev.-Q.-Ut.
G.O.
G.O.
Rev.-Q.-Ut.
G.O.
25.0
100.0
43.0
35.0
46.0
31.0
14.1
Dec. 8
Dec. 15
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
1
a
Other
None.
t
*--Included in Table for first time.
~
1/ Includes corporate and other issues of $15 million and over; State and local government. /<
issues of $10 million and over.
,t
.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.
,.1
H. 14
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part X:
|
f
Sale
Da te
Public Offerings
Amount
(millions
of
dollars)
Issuer and Description of Issue
A.
Sold Aug. 1 through October
9/22
15.0
City of Oslo, N o r w a y — 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.
*10/27
35.0
United Mexican States — 6 - 1 / 4 % sinking
fund bonds maturing 19:79, reoffered
to yield 6.43%.
Intcr-Amcrican Development Bank--4-l/2%
bonds maturing 1984, reoffered to yield
4.57% .
*10/29
B.
None.
Prospective Offerings
Part II:
Private Placement--Reported Aug. 1 through October30
Date
reported
Amount
(millions
of
dollars)
8/6
15.0
Macleod Stedman Ltd.—sinking fund debenture,
maturing 1984--no information available on
takedown.
8/6
17.5
Government of Trinidad and Tobago--serial
bonds, maturing through 1979--no information available on takedown.
9/3
6.5
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--4.60% 1st
mtg. bds., maturing 1989--no information
available on takedown.
10/19
7.5
•10/20
25.0
Note:
Issuer and Description
of Issue
Province of New Brunswick--4-3/4% sinking
fund debenture, maturing 1989--no information
available on takedown.
The Alberta Government Telephone.Commission-4-3/4% debenture, maturing 1989—no informs-
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
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.
@FedFRASER