Full text of H.16 Capital Market Developments : November 22, 1965

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Not for Publication TVflnONTROLLED AFTER SIX MONTHS
H. 14

November 22, 1965.

CAPITAL MARKET DEVELOPMENTS
" IN THE UNITED STATES
(Including Review of Sources and Uses of Funds of Selected Financial
Intermediaries During the First Nine Months)
Corporate and municipal bond markets. The volume of Public
offerings of corporate bonds this week will be moderately larger than
last week's substantial total. A $150 million bond offering of General
Motors Acceptance Corporation accounts for nearly three-fourths of the
total. The supply of new municipal bonds, however, is expected to be
about one-third smaller than last week's heavy volume with the biggest
issue on the calendar $100 million in bonds of the State of California.
Also scheduled for offering this week, but not included in the totals
below, is $20 million in bonds of the Japan Development bank.
Long-term Public Security Offerings 1/
(In millions of dollars)

Corporate
State and Local Government
New Capital | Refunding
New Capital J Refunding
Sold:
52 week ayg.

121

Nov. 12
Nov. 19

269 r/
210 r/

3

191

--

156
333

--

14

Scheduled;
--230
Nov. 26
211
1/ Federal Reserve estimates based upon published reports of issues
sold and scheduled for offering; corporate rights offerings are
included as of the date subscription rights expire.

Although last week's new corporate offerings were priced to
offer investors yields that were around the highest for issues of
comparable quality in nearly four years, reception for these bonds
was mixed. The reception apparently reflected a belief among investors
that corporate bend yields would rise further in view of the continued
buildup of the calendar. In the municipal market, dealers' advertised
inventories of unsold securities rose as nly two-thirds of last week's
sizable new supply was spoken for. Moreover, yields on seasoned Aaarated municipal bonds advanced 4 basis points to 3.36 per cent--the
highest level since mid-1961.




H. 14

Yields in Security Markets
Change from
preceding week
(basis points)

Level latest week
(per cent)
High-Grade
Notes and Bonds
Corporate
New
Seasoned

4.70
4.61

4-1

U.S. Govt.
Long-term
3-5 year

4.34
4.46

-1
4-3

3.36

4-4

3.47

4-2

4.13

4-1

4.09
4.25

4-3
4-2

State and local Govt.
Moody's Aaa
Standard and Poor's
high grade
Money Market
Federal funds
Treasury bills
3-month
6-month

Corporate Bonds Still in Syndicate
Date
Offered

Amount
(millions of $)

11/15

100.0

11/19

25.0

Reoffering
vield

Estimated Proportion sold

Rating

4.69

9/10

Florida Power Corp. 4.73
4-7/8's - 1995

4/10

Sun Oil Co.
4-5/8's - 1990

Blue List of Municipal Dealer's Advertised Inventories
(millions of dollars)
Latest Date

End of Previous Week

679 (11/18)

631




Recent High
901

(6/4)

H. 14

Private housing starts and permits. Seasonally adjusted
private housing starts, including farm, dipped 3 per cent in October.
While this followed a 2 per cent upward revision for September, the
seasonally adjusted annual rate of 1,402 thousand in October was a
new low for the year and 8 per cent below a year earlier. This
compared with a year-to-year decline of 6 per cent in the first ten
months as a whole.
On a three-month moving average basis, starts were at an
annual rate of 1,426 thousand, down slightly from the third quarter
average and well below the recent peak in the first quarter of 1964.
Government-underwritten starts accounted for 16.7 per cent
of total starts in October„ This was essentially the same share as
in October of each of the previous two years.
Unlike starts, seasonally adjusted residential building
permits advanced 5 per cent in October from the revised (upward)
September rate as permits for single family houses recovered sharply
to a high for this year. Multifamily permits edged downward further,
mainly because of a drop in permits for structures of 2-4 units.
Regionally, the over-all advance in permits was concentrated in the
South and West. Permits in the other two Census regions declined.
Stock market credit. During October total customers' credit
in the stock r°rket went up $81 million to $7.1 billion at the monthend. Virtually all of this increase was attributable to a moderate
$79 million increase in customers' net debit balances (except on U.S.
Government securities). Bank loans to others rose $2 million.
Money borrowed on customers' collateral by member firms of
the New York Stock Exchange fell $96 million during October, but
customers' free credit balances rose $106 million further to their
highest level since April 1961. More detailed information on changes
in stock market credit in recent months is shown in the table on the
following page.
Stock prices. Common stock prices eased slightly on
balance last week in active trading. Standard and Poor's index of
500 stocks, which had reached a record high of 92.60 on November 17,
closed at 92.24 on November 19. Trading volume averaged 8.0 million
shares a day.
Financial intermediaries. During the first nine months of
this year, net inflows of income-yielding claims on depositary type
savings institutions totaled a record $23.2 billion, one-sixth more
than in the comparable period of 1964. All of this improvement in
growth was attributable to the sharp rise in time and savings deposits
at commercial banks ($15.2 billion) following upward adjustments iu
rates paid on such deposits at the start of the year. Expansion in
both savings capital at savings and loan associations and regular




H. 14
-4-

STOCK MARKET CREDIT
(In millions of dollars)

Months

Total

Customer Credit
Broker &
Net debit
Bank loans to others Money
balances with
borrowed
than brokers and
NYSE member
dealers for purchas- CusL Other
a
firms
ing & carrying eecur. ril. coll.

Dealer Credit
Customers'
net free
credit
balances

Outstanding:
1955-56 High

4,047(5/56) 2,823(12/56)

1,255(4/56)

1,,873

430 1,069(1/55)

1957-58 Low

3,554(1/58) 2,482(12/57)

1,060(11/57)

1,344

188

1959
1960
1961
1962
1963

4,764(4)
4,142(5)
5,602(12)
4,876(7)
7,298(11)

3,401(4)
3,004(7)
4,259(12)
3,562(7)
5,586(11)

1,373(5)
1,121(5)
1,377(8)
1,269(9)
1,727(12)

2,044
1,801
2,572
1.856
3,892

318
237
385
235
597

7,242

5,515

1,727

3,852

597

1,210

7,053
7,117

5,079
5,073

1,974
2,044

3,393
2,882

517
521

1,169
1,475

-41
7
-55
-113
-68
69
60
84
-1
-251
41
162
81

-36
-25
-81
-93
21
48
11
63
-15
-251
23 r
108
79

-5
32
26
-20
-89
21
49
21
14

-40
-59
-76
-76
-58
44
23
71
-1
297
9
- 130
-96

-29
-43
35
-71
43
102
-64
106
182
-320
23
26
-23

- High
- Low
- High
- Low
- High

1963 - Dec. 1/
1964 - Dec.
1965 - Oct.

Changes in
Outstanding;
1964 - Oct.
Nov,
Dec.
1965 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.

--

18
. 54
2

807(4/57)
1,257(3)
940(4).
1,508(4)
1,091(9)
1,211(11)

,

10
-24
38
38
47
10
-57
1
89
-64
-40
176
106

Notes With the exception of bank loan data, figure* are reported to the New York Stock
Exchange by member firms carrying margin accounts. Bank loans to others than brokers and
dealers for purchasing and carrying securities are for weekly reporting member banks. Net
debit balances and customer free credit balances are as of the end of the month; bank loans
and money borrowed are reported for the last Wednesday of the month. Numbers in parenthesis
denote month of year. All figures exclude credits on, or to carry, U.S. Govt, securities.
1/ November 1963 data on customers' net debit balances do not include accounts carried by
a large former member firm in liquidation; most of these accounts have been transferred to
other member firms and are reported in their debit figures from the month received (some in
December, more in January 1964). Debit balance totals for the period from October 1963
through January 1964, therefore, are not completely comparable.




i

H. 14

deposits at mutual savings banks was less than that for the corresponding period last year.
Although growth in mortgage holdings of savings and loan
association during the first nine months ($6.9 billion) was oneseventh less than in the corresponding period last year, the falloff was not as great as for savings capital. Consequently, these
associations increased their borrowings, primarily from the Federal
Home Loan Banks, ten times as much as last year's modest amount and
reduced their holdings of cash and Governments combined by about
twice the amount of last year's reduction.
At mutual savings banks, expansion in mortgage holdings
was also not cut back as much as the reduced inflow of regular
deposits. Net mortgage acquisition amounted to $3.0 billion--off
five per cent from such acquisition in the comparable period of
1964. However, holdings of cash and U.S. Government.securities
were reduced moderately in contrast to a $0.2 billion increase last
year. Holdings of corporate and miscellaneous securities, on the
other hand, went up somewhat more than in the January-September
period last year.
Life insurance companies. Assets of life insurance
companies —excluding valuation adjustments—totaled a record $6.1
billion during the first nine months this year, 12 per cent more tha
over the similar period last year. Holdings of business securities
rose $2.5 billion, nearly two-fifths more than last year. Most of
this increased growth, however, took place in holdings of commercial
and finance company paper which rose $0.5 billion during the period
against virtually no change last year; holdings of long-term bonds
and stock increased $2.0 billion--one sixth more than last year.
Net acquisitions of mortgages amounted to $3.7 billion, one-tenth
more than in the same period of 1964. Partly offsetting the increased expansion in holding of the foregoing assets were larger
reductions in holdings of both cash and Governments combined and
of municipal- securities.
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.




-6-

Sources and Uses of Funds of Major Types of Savings Institutions 1/
First nine months 1957-1965
(In millions of dollars)

Year

Cash

1965
1964
1963 r/
1962
1961
1960
1959
1958
1957

-176
-151
-107
-103
-20
-125
-208
-79
-129

u. s.
Govt.
securities

Memo:
Sources ot tunds
Total
Use of funds
State & Other Sources Total Excl, Net chg. Borrow
BusiValuation in dep.
Other
ing
| or
Mort- local Assets I
change
or sav.
uses
gages govt.
2/
,
cap.
ities
sec.
1
Life insurance companies

-252
27
-330
196
-283
-6
266
-266

2,482
1,768
1,939
1,884
1,792
1,322
1,672
1,725
1,781

3 ,232
2 ,975
2 ,303
1 ,474
1 ,612
1 ,882
1 ,361
1 ,199
1.,702

-224
-35
-147
182
216
308
474
244
91

1,660
1,484
1,929
685
1,515
1,093
936
940
827

6,722
6,068
5,587
4,318
5,115
4,197
4,229
4,295
4,006

1
6,066
5,505
5,099
4,572
4,541
4,026
4,007
4,102
3,872

—

--

--

--

--

--

--

--

--

--

--

--

--

--

--

—

—

--

--

--

--

--

--

Savings a nd loan associations
1965
1964
1963 r/
1962 r/
1961
1960
1959
1958
1957

-613
-568
-529
-278
32
-103
-765
169
-472

194
336
786
277
450
63
701
454
438

-----

----

764
566
558
465
387
220
462
152
429

6.,904
8.,051
9.,250
7,,404
6!,451
5^,246
5 ,957
;
,975
3j
3,,329

7,249
8,385
10,065
7,869
7,320
5,426
6,355
4,750
3,722

-—
----

5 ,346
7 ,250
7 ,727
6 ,024
5 ,745
4,962
4 ,522
4 ,005
3 ,102

567
54
583
303
92
-499
529
-246
-119

1,336
1 ,081
1,755
1,542
1 ,483
963
1 ,304
991
739

Mutual savings banks
1965
1964
1963
1962
1961
1960
1959
1958
1957

r/
r/
r/
r/
r/

-43
-29
-108
-85
-7
-42
-196
-18
-137

3
219
-31
154
62
-359
-26
-161
-121

163
119
-6
111
42
144
-42
613
580

2 ,977
j
3,,139
2,,908
2, ,341
I,,633
1,,445
1,,336
1,,559
1, 057

-44
-31
-74
-114
15
-34
29
. 53
16

176
220
145
150
104
117
63
95
75

3,232
3,637
2,834
2,559
1,851
1,271
1,163
2,141
1,470

--

],657
2,
3,,151

—

i2,
,376

—

2,,181
1,,516
890
816
13,796
1,,188

---

---------

n.a.--Not available.
r/ Revised.
V
For description of data see Exhibits N, 0 and P.
2/ Excludes changes in miscellaneous assets (one portion of the "other" in this table)
which includes most, but not all, valuation changes, as well as changes in a few

other items.



575
487
457
378
334
381
347
343
282

LONG-TERM

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

•X.A

Exhibit A —

Da te

Corporate
Aaa 1/

U. S. Govt,
long-term 2/

4.61(1/29/60)
4 . 4 6 (9/15/61)

4.42
4.12
3.85
4.20
4.11
4.35
4.13

Part II

State and
local
government
Aaa 3/

(per cent)
1959-60
1961-62
1962-63
1964

-

High
High
Low
High
Low
1965 - High
Low
Oct.
Oct.
Nov.
Nov.
/Nov.

4.19 (3/29/63)
4.45(12/11)
4.35 C V » )
4.61 (11/19)
4.41 (3/12)

22
4.57
29
4.57
5
4.58
12 ' 4.60
19 2 f 4 . 6 1 V

(1/0/60]
\ w M )
(12/28/62)
(4/17)
(12/20)
(11/12)
(6/25)

4.27
4.29
4.34
4.35
4.34 •

Spread 1between
U. S. Go /t. and
Corporate
State and
Aaa
local Aaa

3.65(9/24/5?)
3.37(7/6/61)
2.88(12/8/62)
3.16(3/26)
2.99(12/31)
3.3 6 (11/18)
2.94 (2/11)

.59
.57
.21
.33
.19
.34
.24

.92
1.04
.80
1.14
1.01
1.22
.94

3.31
3.32
3.32
3.32 x
3.36 /

.30
.28
.24
.25
.27

.96
.97
1.02
1.03
.98

; Weekly average of daily figures. Average term of bonds included is 22-24 years*
' Weekly average of dally figures. The seriei includes bonds due or callable in 10 yetrs or more.
3/ Thursday figures* Only general obligation bonds are includedi average term is 20 years.
Note.—^ighs and lows are for individual series and may be on different dates for different
series, ior spreads, high refers to widest* and low to narrowest#




L O N G - T E R M B O N D YIELDS, LOWER GRADE

Exhibit B -- Part II

Corporate
Baa 1/

Da te

State and
local govt.
Baa I f

Spread b e t w e e n
Aaa and Baa
State and
Corporate
local govt.

(per c e n t )
1959-60 - High
Year end - 1961
1962
1963
1964
1965 - H i g h
Low

Oct.
Oct.
Nov.
Nov.
„ Nov.
Note i

22
29
5
12
19 2 /

5 . 3 6 (2/13/60)
5.10
4.93
4.85
4.80
4 . 9 6 (11/1.9)
4 . 7 8 (3/19)

3.57
3.60
3.51
3.73 ( H / 1 8 )
3.40 ( 2 / U )

.84
.66
.70
.48
.37
.41
.35

4.93
4.93
4.93
4.95
4.96/

3.65
3.67
3.67
3.67
3.73

.36
.36
.35
.35
.35

For footnotes eee Exhibit A*




4.46 (1/7/60)
4.04

1.08
.73
.63
.49
.52
.52
.34

.34
.35
.35
.35
.37

SHORT-

AND

INTERMEDIATI-TERM

INTEREST RATES

GOVERNMENT
W ••kIy

IA

-MONTH tlLlS \

I

V V V

r v f
1

1

| X v V v J

y f. DISCOUNT «ATI

,

J

5

1961

1962

Discount
ra te
3-month
bills 2/
1/

1959-60 - High
Year end •- 1961
1962
1963
1964
1965 - High
Low
Oct.
Oct.
Nov.
Nov.
zNOT.

22
29
5
12
,
19 t /

4.00
3.00
3.00
3.50
4. no
4.00
4.00

4.59 (2/9/60)
2.66
2.89
3.52
3.83
4.09 (11/19)
3.78 (6/25)

4.03
4.00
4„00
4.05
4.00
4.07
4.00 y 4.06
4.00 v/,4.09 v

m i.

19*3

Exhibit C -

Date

^

' MONTH *IU$

1 1 1 1 1 1 1 1 1 II M 1 1 1 II M 1 M i
1 II
1t
i iM i II
i M
i .i
19*0

5

j

1**4

Yields
6-month
bills 2/
(per cent)

3-5 year
issues 2/

Spread between yields on 3month bills and vields on
6-njo. billsl3-5 vr. issues .

5 . 07 (3/8/60) 5.00(13/24/59)
3.81
2.90
3.41
2.93
4.07
3.64
4.07
3.93
4.25 (11/19) 4.49 (11/12)
3.82 (6/25) 4.04 (1/22)
4.20
4.19
4.22
4.23
y
4.25 v X

'9*5

Part II

4.34
4.37
4.44
4.49
4.46

.79
.24
.04
.13
.10
.17
.03

1.81
1.15
.52
.55
.24
.43
.11

.17
.16
.15
.17
.16

.31
.32
.37
.43
.37

V Weekly rate shoim is that in effect at end of period at the Federal Reserve Bank of New Yozic.
jj Market yields weekly averages computed from daily olosing bid prices. Series of 3-5 year issues
consists of selected notes and bonds#
Note.—flighs 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*




IXHISIT 0. fort 1
SHORT- A N D INTERMEDIATE- TERM INTEREST RATES,
B A N K S A N D OTHER PRIVATE B O R R O W E R S
Weekly

Exhibit D

Prime rate

Date

1959-60 - High
Year end - 1961
1962
1963
1964
1965 - High
Lo»
Oct.
Oct.
Nov.
Nov.
v Vov.

22
29
5
12
19

.

j

£/ j

1/

Fi

Part II

Finance
company
Federal funda 2/
paper
2/
(per cent)

Spread between
3-mo. bille and
finance co. paper
1.02
.34
.30
.36
.23
.47
.10

5.00
4.50
4.50
4.50
4.50
4.50
4.50

5.13 (1/23/60)
3.00
3.19
3.88
4.06
4.38 (11/19)
4.00 (2/12)

4.00 (5/13/60)
2.88
3.00
3.50
4.00
4.13 (11/19)
3.48 (10/1)

4.50
4.50
4.50
4.50
4.50

4.38
4.38
4.38
4.38

4.05
3.95
4.12
3.97

.35
.33
.26
.32

4.3 B

4.13-

.29

y

Weekly rate shown is that in effect at end of period. Prime rate is that charged by large banks
on short-term loans to business borrowers of the bluest credit standing.
y Average of daily rates published by finance companies for directly placed paper for varying
maturities in the 904179 day range.
y Weekly average of daily effective rate, whioh is the rate for the heaviest volume of purchase and
sale transactions as reported to the Federal Reserve Bank of New York.
Notes—Sighs and lows are for individual series and may be on different dates for d i f f e r e n t s e r i e s .
For spreads, high refer* to widest, and low to narrowest.




EXHIBIT 1.

STOCK

art

MARKET

Exhibit E -- Part II

Da te

1961-62 - High
Low
Year end
1963
1964
. 1965 - High
Low

Stock price
index 1/

Stock marlket customer credit
Trading
Customers'
Bank
volume 3/
Total
debit balloans to
yields 2/ (millions
ances 4/
"others" 5/
foer cent) of shares)
(In millions of dollars)
Common

72.04(12/8/61)
52.68(6/23/62)

2.80
3.96

10.1
2.4

74.44
84.75

3.13
3.02

4.7
4.7

92.55 (11/12)
83.06 (6/25)

3.00
3.15

8.9
3.8

5,60%13/ai) 4,259(12/61) 1,418(5/9/62)
4,424(1/61) 3,253(1/61) 1,161(3/8/61)
7,242
7 JD53
7,11.7 6,872

5,515
5.099
5,12?
4,863

1,727
1.974
2,065 (11/3)
1,81.3 (3/3)

2,012
Sept,
2.98
7,036
89.38
4,994
7.4
2,044
7.8
2.91
7,117
Oct.
5,073
91.39
2,065
.a.
to.a.
2.91
Nov. 5
7.4
92.37
2,060
.a.
n.a.
6.6
3.CO
92.55
Nov. 12
n.a.
n.a.
.a.
2.95
7.9
Nov. 19 p/ 92.24
n*a.—Not available* p/ rrellmlnary.
y Standard and Poor's composite index of 500 ooaraon stocks, weekly closing prices, 194!U-43«10,
Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are for
Friday's data only.
2J Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing
prices by federal Reserve. Yields shewn are for dates on which price index reached its high
or low.
3/ Averages of daily trading volume on the Mew Yeik Stock exchange, Year-end figures are averages of
daily figures for the yearw
4/ End of month figures for umber firms of the Hew Yoxk Stock Exchange which carry margin accounts)
excludes balances secured by U. S* Government obligations*
5/ Wednesdayfiguresfor weekly reporting member banks* Excludes lopm for pi ro hi sing or c a v r y i ^
U* S. Government seourities, Weekly reporting banks account for about 70 p-r oent of loans' to
others. For further detail see Bulletin.




| fXHIItT f. Pari I |
P R I V A T E H O U S I N G STARTS A N D P E R M I T S '

12.4

2.0

HOUSING S T A R T S L

BUILDING PERMITS

180

PER CENT OF U N A D J U S T E D TOTAL STARTS!

1959!

1961i

19601

i1962!

1963

Exhibit F - Part II

1
I1964

11965

11966

Building
permit#
Unadlusted
Type of financing Type 0 f housing (seasonally
adjusted
Seasonally adjust- Unadjusted
Multi1-2
annual
Other family family
FHA
VA
ed annual rate
Starts

Total

r«"> 2 / . -

1964 - Oct.
Nov.
Dec.
1965 — Jan.
Feb.
Mar.
Apr.
MayJune
July
Aug.
Sept,
Oct.

1,591
1,455

1,646

1,442
1,482
1,489
1,552
1,516

1,566

1,473
r/1,427
r/1,449
1,402

(Thousands of unite)
117
95.2
45.9
19
37.8
90
16
73.6
111
62.9
82
35.5
13
99
26.9
65
54.5
82
13
31.1
70
54.4
12
85
40.2
80.5
100
16
121
47.5
130 104.7
152
17
49.9
134 107.6
19
158
50.3
131 105.2
19
156
42.5
98.7
119
17
141
112 r/93.0 5/41.6
18
r/ 102 r/83.7 r/40.2
17
110 93.3
39.4
18
132

iXl

1,220
1,258

1,173
1,280
1,224
1,269
1,187
1,240
1,254
1,243
1,217
r/1,180
• 1,239

1/ Total starts are Census estimates Including faro for both penalt-is suing and non-lssulng areas. A
Swelling unit Is started when excavation begins 1 all units In an apartment structure are considered
started at that tlms. IRA and VA starts are units started under commitment a by these agencies to insure
or guarantee the mortgages. As reported by iHA and VA# a unit is started when a field office receives
the first compliance Inspection report, which is made before footings are poured in some cases but
normally after the foundations have been completed. Capehart ndlitaiy housing units are excluded.
Other starts are derived as a residual, although total and IHA and VA starts are not strictly comparable
in concept or timing; other starts include both units financed by conventional mortgagee and units
without mortgages.
2/ ftailding permits before January 1963 are Census estimates fer about 10,000 areas identified as
having a leoal building permit system in 1959. Estimates beginning January 1663, are fcr approximately
12.000, or all knewn, permit-issuing places. Unlike starts, seasonally adjusted building permits
reflect direct adjustment fer differences in the nuntoer ef working days per month, as well as other
differences in timing sal coverage*




YIELDS O N N E W 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
w..ki,

Exhibit 0 - Part II
Yields on New Corporate Bond Xssues Adjusted to an Aaa basis

Weekly averages;
1965 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Noy.
Weekly average
1965 - High
Low

Number Aa't of Issues Average
of
included (mil. yield
Issues of dollars) (per cent)
94.0

111.0

157.8
115.0
315.0

100.0

278.0
166.5
288.5

108.0

4.42
4.41
4.45
4.46
4.51
4.58
4.61
4.63
4.67
4.69

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

Oct.

120.0
60.0

43.5
65.0

4.69
4.70
4.67
4.64

88.0

4.72*

20.0

4.63

1

8
15
22
29

5
12
75.0
4.73*
4.71 ' (8/27)
19
125.0
4.70
4.33^(1/29)
26
Note* Are rage a of offering yields on all nemr issues of publicly offered ooxp orate bonds rated Asa. it and
A by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline,
and foreign companies, and bonds guaranteed by the Federal Government) weighted by tie of offering.
Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual
reof faring yield the excess of the weekly average yield for seasoned bands of the appropriate industryquality group over the oon»cslte average for seasoned Asa-rated bonds (Moody's). Averages considered
unrepresentative because off special characteristics of the offerings Included are denoted by an asterisk^




Nov.

3
10
17
24

Exhibit H

H. 14

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

1965

Corporate
1064

New Canltal
1963

State and Local 2/
1965
1963
l<f64

January
February
March

795
746
1,197

938
700
778

613
594
1,144

2/803
E/872
a/946

947
776
810

732
746
976

April
May
June

;•$

2,237
1,P95
1,^5

930
904
1,013

E/824
fi/921
a/943

1,242
667
903

869
866
930

July
August
September

lpt9*
8*0
. 1,392

812
680
1,130

676
637
795

a/950
2/650
2/950

906
,780
892

680
708
449

October
November
December

e/1,000
e/1,300

4
669
1,642

1,013
819
1,415

e/800

801
529
.948

1,051
729
416

2,416
4,738
2,621
3,264

2,3*1
2,847
2,109
3,246

E/ 2,621
E/ 2,688
2/ 2,550

2,553
2,8^1
2,578
2,278

2,454
2,665
1,837
2,197

5,198
7,307
10,553

e / 5AIO
£/ 7,960

5,345
7f923
10,201

5,118
6,955
9,151

1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
quarters
Year

vThree

1,946

2,738
4.789
3/539 ^
7 r 5Z7
11,000 z

7,153

9,775
13,038

e/850

Excluding finance companies 2/
let
2nd
3rd
4th

quarter
quarter
quarter
quarter

2,547
4,348

3,183

Year

2,043
4,258
2,677
2,997
11,775

2,284
2,529
1,768
2,854
9,434

e/ Estimated by Federal' Reserve.
j>/ Preliminary.
1J Securities and Exchange Commission estimates of net proceeds.
2/ Investment Bankers Assoclatlon of America estimates of principal amounts.
3/ Total new capital Issues excluding offerings of sales and consumer finance companies.




H. 14
Exhibit I
New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)

1963 - I
II
III
IV

Gross proceeds for new
capital and refunding 1/
Bonds
Common
Total Publicly Privately and
Offered Placed
Pfd.
stock
2,700
1,108
1,306
287
3,634 1,389
1,820
424
2,436
898
1,251
287
3,466
1,319
1,780
367

1964 - I
II
III
IV

2,548
4,965
2,876
3,568

978
1,321
792
531

1,269
1,755
1,590
2,629

300
1,890
494
408

29
105
94
227

429
723
559
1,061

438
856
642
509

273
1,666
59
135

1,275
1,492
1,361
1,559

1965 - I
II

3,007
5,043
3,912

. 906
1,864
1,5®T

1,673
2,259
1,955

429
920
383

243
215
, 263

1,072
1,679
1,119

541
609
786

91
255
323

1,034
2,246
1^04

1964

2,295
1,181
1,489
902
748
1,226
1,036
727
1,805

541
563
651
443
453
693
642
645
1,342

1,372
148
370
225
112
156
213
52
143

34
36
35
24
27
44
82
29
116

186
206
332
150
176
234
250
203
607

151
441
264
207
138
296
297
40
172

1,379
27
260
23
16
19
82
21
32

521
421
550
432
349
580
323
405
831

Quarter
or
Month

Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

383
470
468
234
183
376
181
30
320

Net proceeds for
new capital 1/ 2/

Memo:
Foreign Mfg. Public Communi- Other
issues
Utility cations issuers
included
128
326
947
236
842
434
591
794
221
1,241
109
806
285
150
868
47
968
530
118
1,629

1965 - Jan.
858
161
565
131
49
385
97
21
292
Feb.
791
187
450
155
51
192
215
44
295
Mar.
1,358
557
658
143
143
494
229
26
448
Apr.
1,233
422
162
648
33
540
176
15
422
May
1,773
694
630
449
49
698
248
143
602
June
2,038
748
980
309
134
184
441
98
1,223
July ? 1,443
780
399
542
1*2
202 *
587
102
Aug.
369
930
468
307
II
25
22?
W.
n
Sept. 1, 538 • 664
706
150
1
I6
m
n
700
ZB0
Oct. e/ 1,090
Nov.
Dec.
2/ 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




Exhibit J

.

Other Security Offerings
(In millions of dollars)

1965
January
February
March
April
May
June
July
August
September
October
November
December
Jan. -Oct.

218
38
73
91
,

e/

33
76
5

50

e/ 582

Year

gross Long-term Yf~
Federal Agency 3/
Government U/
1963
1964
1964
1963
1964
4
82
69
30
75
26
20
13
7
180
72
58

232
133
76
57
114
11
63
83
• —

__

129
185
325

148

—
—

——

—

186

—

—

—

775

275
260
160

459

510

174
200

239
150
e/ 375

—

—
—

—

2

506

769

636

771

—

5/2,178

1,205

967

1,205

1,167

New short-term 4/~
State and Local Government 5/
Federal Agency 3/
January
February
March
April
May
June
July
August
September
October
November
December
Jan. - @ct..

238
91
-458
647
204
-82
119
£/ 409
£/-133
n.a.

n. a.

103
236
-407
442
81
-80
-9
127
176
7
-15
-208

75
272
-367
589
-30
-10

62
208
-173
259
146
-339

676

885

453

692

-137
-174
117
-11

509
237
132
206..
105
r/ 98

e/1,08?

-308
-336
23
97
183
239
-333
167

s

-3

-332
-255
-161
202
195
319
415
326
258
123
-102
551

« 2*9

1,090

368

1,539

Year
2/ Preliminary. ^/Estimated by Federal Reserve. n.a.-Not Available, l/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/ Includes securities offered in the U.S. by foreign governments and their political
subdivisions and international organizations. Source1 Securities and Exchange Commission.
Issues not guaranteed by the U.S. Government. Source: Long-term, Securities & Exchange
Commission; short-term, Treasury Dept. & Fed. Reserve.
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 maturity of one year or less, ^^/Principally tax and bond anticipation notes,
warrants, or certificates and Public Housing Auth. notes. In some instances PHA notes
included may have a somewhat longer maturity than 1 year.
Source: Bond and Buyer & Fed.Res-




a

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)
Coroonite
Bonds
(other than
Convertible
convertibles)
bonds

Total

1964 - Oct.
Nov.
Dec.
1:65 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug,
Sept.
Oct.

108

187
--

Stocks

„„

79

--

200
115
131
233
210
560
343
455
211
530
190

230
139
217
513
307
928
801
477
299
530
246

State
and
local
governments
419
226
541
413
446
395
411
492
377
655
312
563
409

--

30

--

15
86
280
97
53
320
22
62

315
138

40

16

Other 2/

--

—

26

502
15
--

135
130
19
260
40
340
50
i;o
A3

Large Individual :
Issues Offered November 1 through 19

Issuer

Type &/

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
Offernet intering
est cost
Yield

Rating

Corporate
C.I.T. Financial Corp
B>. st :n Edison Co.
J;hn Deere Credit Co.
Beneficial Finance Corp.
Natural Gas P. L. Co.
Texas Instruments Inc.
Sun Oil Co.
*Unicn Elec. Co.
F1 . Ida Pwr. Co.
International Ut.il. Corp.
State and local Government
State of Conn.
Pert of New York Auth.
Cc'-b Cc., Ga.
Vniv . c f Mass. B'l-g. Au"h.

Pfd. stk.
50.0
1st mtg. bds.
25.0
Deb.
35.0
Deb.
100.0
1st mtg. p .1. bds. 40.0
Deb.
50.0
Deb.
100.0
Com. stk.
29.7
1st mtg. bds.
25.0
Conv.pfd.stk.
33,0

5.C.
Rev. -Q. -Ut,
G. 0.
Rev.-Rent.




43.0
25.0
14.9
12.7

1994
1990
1990
1984
1990
1990

4-3/4
5
5
4-3/4
4.80
4-5/8

4.(7
5.00
5.00
4.73
4.60

1995

4-7/8

4. / 3

1966-85
1998
1967-95
1966-98

3.28
3.67'
3.56
3.5:

2. 60-3.30
3. 6 3
2. 7^-1.^5
2. 50-3.55

Aaa

-

Aa
A
Ad
Aa

Aaa
A
A
Aa

K-2

Large Individual Issues Offered November 1 through 19 (Cent d)

Issuer

S t a t e and

Type 3/

Amount
(millions
of
i dollars)

Coupon
Ma turity rate or
net interest cost

Offering
yield

Rating

1 era 1 nnvp.rnmpnt-

(Cent 1 d)
?

:'ia. State Pub. Sch.
Bldg. Auth.
Rev.-Rent
30.5
Bcstcn, Mass .
G.O.
12.4
State of Minnesota
10.4
G.O.
F.ast. Jefferson Wtr .Dis t.#I ,L?.|Rev.-Ut.
10.0
Kansas City, Mo.
19.0
G.O.
Chicago, 111.
14.5
L.o.
Baltimore, Md.
26.7
G.O.
Baltimore Co., Md.
11.0
G.O.
San Franc Bay Area
Rapid Trans = Auth., Calif. Rev.-Q.-Ut . 70.0
State of Hawaii
G.O.
14.0
State of West Va.
20.0
G.O
State of Vermont
10.4
G.O.
Dallas Co. Jr. College
Dist., Tex.
15.0
G.O.
Lav.nia Pub Sch Dist.,Mich.
15.0
G.O.
Other
*Commcnwealth of Australia
Bonds
25.0
Quebec Hydro-Elec, Comm.
Bonds
50.0

1966-2005
1966-95
1975-85
1967-90
1966-85
1969-79
1966-86
1967-95

3.60
3 60
3.29
3.94
3.29
3.33
3.37
3.53

2.90-3 . 7 ^
2.70-3 .70
3.10-3 .30
2.35-3,,90
2.60-3 30
3.00-3 ,30
>.70-3,.40
2.90-3,.60

Baa
Aa
Baa
As
A
A
A

1972-99
1968-85
1966-90
1967-85

3.59
3.46
3.42
3.21

3.10-3.. 6 3 ^
3.00-3.,50
2.70-4.30
2.70-3. 25

Aa
A
A
Aaa

1966-87
1968-92

3.39
3.76

2.70-3.
3.10-3.

A
Baa

1985
1987

5-3/4
5-1/4

5.77
5.25

$

--

A

n.a.--not ava ilable
*--Rights offering.
1/ Includes corporate and other security offerings of $15 million and c ,-t.r; Sta t-:. ana 1 . ca i
government security offerings of $ 10 million and
2/ Includes foreign government and International Bank for Reconstruction and revel, p nun:,
issues and non-guaranteed issues by Federal Agencies.
3/ In the case of State and local government securities, G.O. denotes general bliga t i:n-;
Rev,-Ut., revenue obligations secured only be income from public utilities; Rk;„-Q
*
revenue bonds secured only be revenue from quasi-utilities; Rev.-S.T., revenue bonds
secured by revenue from specific taxes only; Rev.-Rent., revenue bonds securei scit.ly by
lease payments,
4/ 5/8 per cent bonds maturing 2005 reoffered to yield 4.40 per cent.
5/ 1%% bonds maturing 1999 not publicly reoffered.
^/ 1/10% bonds maturing 1987 not publicly reoffered.
7/ Bonds maturing 1991-92 not publicly reoffered.




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 ahown
State and
Corporate
Other If
local govt.
I 1964 - Oct. 30
;
Nov, 30
Dec. 31
' 1965 - Jan. 29
Feb. 26
Mar. 31
Apr. 30
May 28
June 30
July 30
Aug. 31
Sept.30
Oct. 29

254
360
306
242
316
212
411
328
397
248
404
269
343

90
105
169
407
267
852
765
363
193
312

206
412

25
215

60
25
70

20
15
25

Subsequent to
date ahown
State and
Corporate
local govt.
549
563
435
382
599
373
635
474
524
353
450
331
578

130
105
253
504
792
852
923
410
340
636
303
489

Other 2/

25
215

Forthcoming Large Offerings as of November 19

Issuer

Type

Amount
(milliona
of
dollars)

Approximate date of
offering

Corporate
Northern Natural Gas Co.
West Penn. Power Co.
Gen. Motors Accept. Corp.
Florida Pwr. & Lt. Co.
Southern Cal. Ed. Co.
Gen. Tel Co. of Cal.
Kentucky Pwr. Co.
Macy Credit Corp.
Great Western Financial Corp.
State and local government
Philadelphia, Pa.
State of California
*Henderson, Texas
Lake Charles Harbor and Term.
Dist. , La.




Deb.
1st mtg.
Deb.
1st mtg.
1st mtg.
1st mtg.
1st mtg.
Deb.
Deb.

bds.
bds.
bds.
bds.
bds.

G.O.
G.O.
Rev.-Ut.
Rev. -Q. -Ut.

40.0
20.0
150.0
40.0
75.0
40.0
32.0
25.0
22.0

Nov. 22
Nov. 23
Nov. 23
Dec. 2
Dec. 8
Dec. 10
Dec. 15
Indefinite
Indefinite

40.7
100.0

12.0

Nov. 23
Nov. 23
Nov. 23

21.4

Dec.

5

60
25
70

20
15
25

L-2
Forthcoming Large Offerings as of November 19 (Cont'd)

Issuer

Type

Amount
(millions
of
dollars)

Approximate date of
offering

State and Ijcal government
(Cont *d)
Chicago, 111.
Port of New Orleans, La.
Public Housing Auth.
Cal. Toll.-Bridge Auth.
University of Kentucky
*Pima Co. Sch. Dist., Ariz
*Los Angeles Dept. of Wtr.
& Pwr., Calif.
^Peninsula Port AUL'U. , V A.
*University of Kentucky
Dade County, Fla.
Austin, Texas

Rev.-Ut.
Rev.-Q.-Ut
Bonds
Rev.-Q.-Ut.
Rev.-Rent.
G.O.

25.0
20.0
90.1
100.0
30.0
11.5

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

15.0
15.0
25.0
46.0
14.0

Dec.15
Dec.15
Dec.15
Indefinite
Indefinite

Other
Japan Devel. Bank
*Republic of Ireland

Bonds
Bonds

20.0
20.0

Nov. 23
Dec. 1

Dec. 7
Dec. 9
Dec. 9
Dec. 9
Dec.15
Dec.15

:

J

*--Included in table for first time.
|
1/ Includes coportate and other issues of $15 million and over; State and local government V-X
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.




M
H. 14

Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:

Sale Date

Public Offerings

Amount
(millions
• • of
dollars)

Issuer and Description of Issue

A.

Sold September 1 through November ig

»

9/16

20.0

European Investment Bank--6% bonds, maturing 1985,
reoffered to yield 6.04%.***

10/19

15.0

Republic of Finland--6-1/2% bonds, maturing 1980,
reoffered to yield 6.61%.

10/27

27.5

United Mexican States--6-1/2% bonds, maturing 1980,
reoffered to yield 6.63%.

11/9

25.0

Commonwealth of Australia--5-3/4% bonds, maturing 1985,
reoffered to yield 5.77%. ***

11/17

33.0

International Util. Corp.--conv. pfd. stk.

11.18

50.0

Quebec Hydro-Elec. Comm.--5-1/4% bonds, maturing 1987.
roeffered to yield 5.25%.

B.

11/23
12/1

20.0
20.0

Prospective Offerings

Japan Devel. Bank-Bonds
Republic of Ireland-Bonds.

Included in table for first time.
Issue sold t6 investor^ outside U.S.
^
Issues subject to interest .equalization tax.




H. 14

M-2

Part:

Date Reported ~

Private Placement--Reported September 1 through November 19

Amount
(millions
of
dollars)

Issuer and Description of Issue

9/9

40.0

Skeena Kraft, Ltd.--5-3/8% first mortgage and collateral
trust bonds, maturing 1985--no information available on
takedown.

9/8

50.0

Bell Telephone Co. of Canada--4.85% first mortgage
bonds, due 1995--no information available on takedown-

135.0

Queensland Aluminium Securities. Company--notes maturing
1968-82--no information available on takedown.

9/16..

9/16

25.0

The Alberta Government Telephone Commission--4-3/4%
sinking fund debenture, maturing 1990--no information
available on takedown.

Tote: 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 the Exhibit and that shown in Exhibits I and J because, the
latter includes privately placed securities in the period in which funds are actually
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 is reported.