Full text of H.16 Capital Market Developments : November 4, 1968
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DECONTROLLED AFTER SIX MONTHS Not for Publication H. November 4, 1968. CAPITAL MARKETS DEVELOPMENTS IN THE UNITED STATES and municipal bond markets. The volume of new municipal bond issues expected this holiday-shortened w e e k w i l l be relatively light. Dominating the corporate calendar is Pacific Gas & Electric Company's $60 million mortgage bonds, while New Y o r k State's $84 million general obligation issue accounts for m o r e than one-half of the scheduled municipal volume. Long-term Public Security Offerings—^ (In millions of dollars) Corporate New Capital I Refunding State and local Government New Capital | Refunding Sold; 52 w e e k avg. 291 October 25 250 1 75 8 120 November 1 292 356 — 1 — 253 Scheduled: November 140 Federal Reserve estimates are based upon published reports of issues sold and scheduled for offering; corporate rights offerings are included as of date subscription rights expire. Yields on new corporate bonds advanced slightly last w e e k — the new issue series overstates the extent of the yield increase due to a shift in characteristics of the component issues. Although the investor response accorded new issues early in the week was lukewarm, peace rumors late in the w e e k generated additional investor interest. By the end of the week, all of the new issues were sold out. Municipal bond yields also advanced last week. New issues were received poorly at yield levels higher than the w e e k earlier, and only about one-half of the new issues were spoken for by the close on Friday. FNMA "auction" and related secondary market operations. Implicit secondary market yields in the Federal National Mortgage Association's weekly auction moved higher in each of the three auctions conducted after H. 14 Yields on Security Markets High-Grade Notes and Bonds Change from preceding w e e k Corporate 6.66 6.16 New Seasoned + 10 + 3 5.26 5.42 + 2 - 1 4.25 4.63 + + 4 4 + 8 + 7 U.S. Government Long-term 3-5 year State and local Gov't. M o o d y 1 s Aaa Std, & Poor's high grade Money Market Federal funds Treasury bills ; 3-month 6-month 5.88 5.48 5.50 Corporate Bonds Still in Syndicate Hate Offered Amount (millions of $) 10/22 55.0 Reoffering Yield Issuer Consumers Power, 6-5/8's - 1998 Rating Estimated proportion sold 6.55 50% Blue List of Municipal Dealers' Advertised Inventories . Latest W e e k 862(10/29/68) End of Previous W e e k 848 Recent High 849(4/26/68) H. 14 -3- October 7, following a downtrend which began in mid-June. By October 28, fields on 6-month commitments had risen 7 basis points above their tecent low — m u c h less than the sharp rise in corporate and municipal yields. The higher yields on the FNMA forward commitments suggest that builders and lenders expect a somewhat higher trend in mortgage rates to be forthcoming. The increase in the implicit yield since early October occurred during a period when the total weekly dollar volume of accepted bids rose from $35 to $50 million. The increase in the auction limit was in part as a result of a greater demand for FNMA funds -- measured by bid received. Regionally the Los Angeles and Chicago districts continued to receive the largest share of accepted bids in the four October auctions. The remaining three FNMA districts combined Atlanta, Dallas and Philadelphia -- accounted for less than half of all bids accepted by FNMA during October. Stock market. Common stock prices fell slightly last week. Standard & Poor's index of 500 stocks closed on Friday at 103.06, a loss of 1.14 points from the w e e k earlier. Trading volume averaged 14.1 million shares a day, 1.0 million below the w e e k earlier pace. M o r e detailed information concerning recent capital market developments is presented in the attached exhibits. Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. EXHIBIT A, Port 1 LONG-TERM BOND YIELDS, HIGH-GRADE C O R P O R A T E Aaa U.S. G O V E R N M E N T S T A T E A N D L O C A L G O V E R N M E N T Aaa 1963 1964 1965 1967 Exhibit A -- faru.il I Corporate I Aaa 1/ Spread between U.S. Govt, and State and Corporate local Aaa Aaa 4.61(1/29/60) 5.52(9/9) 4.73(1/7) 6.24(12/29) 4.42(1/8/60) 4.87(9/2) 4.42(1/7) 3.65(9/24/59) 4.04(8/25) 3.39(1/13) .59(8/5/60) .84(12/30) .14(2/18) .92(4/22/60) 1.19(2/11) .77(9/2) 5.49(11/17) 4.37(2/3) 4.15(12/28) 3.25(2/9) .92 .44 1.51 .74 5.15 5.25 4.14 4.22 4.22 .87 1.01 18 6.02 6.06 6.10 25 6.13 1959-60 - High 1966 - High 1967 - High - Low 1968 - Oct. 1 State arid U.S. Govt. | local long-term 2/. government Aaa 3/ (per cent) 4 11 5.00(2/10) -ML 6.16 5.28 5.24e 5-26 j)/ Preliminary1/ Weekly average of daily figures. 2/ Weekly average of daily figures. 3/ Thursday figures. .81 .82 .'65 1.03 1.06 1.03 1.01 Average term of bonds included is 22-24 years. The series includes bonds due or callable in 10 Only general obligation bonds are included; average terra is 20 EXHIBIT B, Port 1 L O N G - T E R M B O N D Y I E L D S , L O W E R GRADE Week ly C O R P O R A T E Baa Moody's S T A T E A N D LOCAL G O V E R N M E N T Baa Moody's / V "Aj ":"A-V~—' V - x 11 i ji n iM 1963 M 11 ii i n 1964 f ,—/'— i 1111 111 111 i 111-111 1111 i 111 11 1111 r i j i /1 M 1965 1966 1967 |, 1968 Exhibit B -- Part II Date Corporate Baa 1J State and local govt. Baa 3/ (per cent) Spread between Aaa and Baa State and Corporate local j>ovt. 1959-60 - High Year end- 1965 1966 - High Low 1967 - High Low 5.36(2/12/60) 5.04 6.18(12/30) 5.05(1/14) 6.97(1/29) 5.81(4/14) 4.46(1/7/60) 3.79 4.55(8/25) 3.78(1/20) 4.73(12/28) 3.85(4/13) .84 .31 .81 ! .31 .82 .73 1968 - Oct. 6.78 6.79 6.84 6.88 6.92 4.80 4.90 4.90 4.90 4.95 .76 .73 .74 .75 .76 4 11 18 25 Nov. 1£/ 1.08 .39 .62 .31 .81 .37 .66 .68 .68 .69 .71 EXHIBIT C. Pari 1 S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES GOVERNMENT Weekly 6 - M O N T H BILLS Market Yields 3-5 YEAR ISSUES F.R. DISCOUNT R A T E New York 3 - M O N T H BILLS Market Y i e l d i i rl ' i i i i i i n 1963 1964 1965 1966 ii Iin n 1967 1 i i f i ni i 1 1 '' i i i I 2 1968 Exhibit C -- Part II Date Discount rate 1959-60 - High Year end - 1965 1966 1966 - High Low 1967 - High Low 4.00 4.50 4.50 4.50 4.50 4.50 4.00 1968 - Oct. 4 11 18 Nov. 25 lp/ 5.25 5.25 5.25 5.25 5.25 3-month bills U Yields 6-month bills ZJ (per cent) 3-5 year issues &/ _l Spread between yields on I 3-mo. bills and yields on j 6-mo. bills I 3-5 vr. issues 5.00(12/24/59) 4.90 4.86 5.83(9/2) 4.80(4/8) .79 .19 = 12 .52 o 09 1.81 .43 .06 .78 .01 4.59(1/8/60) 4.47 4.80 5.52(9/23) 4.39(6/24) 5o07(1/8/60) 4.66 4.92 5.92(9/23) 4.53(6/24) 4.99(12/29) 3.41(6/9) 5.50(12/12) 3.74(6/2) 5.80(11/10) 4.36(4/7) .62 .01 If. 61 .02 5.21 5.31 5.38 5.43 5.43 5.50 5.34 5.43 5.43 5.43 5.42 .10 .07 .09 .03 .02 .13 . 12 .09 .03 .06 5.31 5.34 5.40 5.48 "l/ Weekly rate shown is that in effect at end of period at the Federal Reserve Bank of 2/ Market'yieId; weekly averages computed from daily closing bid prices. j>/ Preliminary. Series of 3-5 EXHIBIT D, Fori 1 S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES, B A N K S A N D OTHER P R I V A T E B O R R O W E R S PRIME RATE r~ FINANCE C O M P A N Y PAPER Directly placed F:R. DISCOUNT RATE FEDERAL FUNDS 1963 1964 1965 1966 1967 Exhibit D — Date Prime rate 1/ Part II Finance company •paper 2/ Federal funds 3J Spread between 3-mo. bills and finance co. paper (per cent) 1959-60 - High Year end- 1964 1965 1966 1966 - Low 1967 - High Low 5.00 4.50 5.00 6.00 5.00(3/4) 6.00(12/29) 5.50(12/1) 1968 - Oct. 5.13(1/22/60) 4.06 4.75 5.88 4.75(1/7) 5.75(1/6) 4.38(6/23) 4.00(5/13/60) 4.00 4.63 5.63 3.55(1/21) 1.02 .23 .28 1.08 .20 5.25(1/6) 3.40(10/27) 1.33 .21 4 6.25 5.50 5.88 29 11 6.25 5.50 5.95 .19 18 6.25 5.50 5.75 .16 25 6.25 r/5.58 r/5.95 .10 Nov. lpy 6.25 5.75 5.88 .27 1/ 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 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. £/ Preliminary, r/ Revised. EXHIBIT STOCK E, Part 1 MARKET 1941-43 average=10 100 PRICES 8 S T O C K M A R K E T CREDIT 6 * C H A N G E IN (SERIES 4 Milf«|/i\ of ihorei VOLUME YIELDS 1 I 1 1 I-' 1 1 1|. | , | | 1 1 1 I 1 1—1—1—1—1—1—L—j_ 1963 | l i ' l 1964 | | | | i i i i i M 1965 i i i I ! 1 1 I I 1 1 I I 1966 1 1 i i : i i i i i 1967 l : I I 1 I 1 I I 1 M 1968 I I 1 Exhibit E — ' Part II Date 1961-62 - High Low 1966 - High Low 1967 - High Low Stock price index V Trading Stock market customer credit volume 3/ Customers' Bank Total (millions debit balloans to of shares) "others"5/ ances 4/ (In millions of dollars) 2.82 3.96 3.01 3.97 3.01 3.58 10.1 2.4 10.7 5.0 12.3 6.9 101.34 D3.76 r/3.00 2.93 13.4 15.1 1968 - Oct. 18 (04.82 25 104.20 Nov. lj>/ D03.06 2.90 2.93 2.96 15.4 15.1 14.1 1968 - Sept. Oct. 72.04(12/8/61) 52.68(6/22/62) 93.77(2/11) 73.20(10/7) 97.26(10/67) 82.18(1/6) Common stock yields 2/ (per cent) 5,602(12/61) 4,424(1/61) 7,997 7,302 10,347(12/67) 7,345(1/6) 4,259(12/61) 3,253(1/61) 5,835 5,169 7,883(12/67) 5,280(1/67) 1,418(5/9/62) 1,161(3/8/61) 2,241(7/6) 2,097(12/14) 2,057(11/1) 2,055(1/25) n. a. n. a. n. a. n. a. 2,515 n. a. n. a. n. a. n. a. n. a. n. a. n. a. n. a. n. a. n. a. _!/ Standard and Poor's composite index of 500. common stocks, weekly closing prices, 1941-43=10. Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are for Friday's data only. 2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve. Yields shown are for dates on which price index reached its high or low. 3/ Averages of daily trading volume on the New Y o r k Stock Exchange. Year-end figures are averages of daily figures for the year. 4/ End of m o n t h figures for member firms of the New Y o r k 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. EXHIBIT F, Pari I 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 S E C O N D A R Y MARKET O P E R A T I O N S 400 OFFERINGS J 300 200 /PURCHASES V 100 \ \ SALES 1962 1964 1966 1968 Exhibit F - Part TT. Date Estimated offerings Ito FNMA Immediate Standby Total purchase commitment Purchases by FNMA Sales by FNMA (In millions of dollars) 1967 - Aug. Sept. Oct. Nov. Dec. 1968 - Jan. Feb. Mar. Apr. May June July Aug. Sept. 261.0 260.6 168.2 167.9 260.6 260.1 324.7 324.1 209.4 206.6 212.6 212.0 164.4 164.0 212.9 212.2 214.3 210.1 104.8 103.6 (See Exhibit F Part .4 .3 .5 .6 2.8 .5 .4 .7 4.2 1.2 III) 198.3 192.4 215.1 186.9 200.1 274.9 245.2 188.9 185.7 176.7 172.8 108.0 98.8 88.8 .8 .2 .3 .1 -- * — L e s s than $50,000. 1/ Data represent unpaid principal balances of the mortgages involved, exclusive of premiums, discounts, or other charges. Offerings are amounts of applications received during the period from sellers proposing that FNMA execute purchasing contracts. A n immediate purchase contract covers existing mortgages which the seller must deliver to FNMA within 45 days. A standby commitment contract relates to proposed mortgages on housing not yet under construction which the seller must usually deliver within one year. Purchases include those under both immediate purchases and standby commitment contracts. Data exclude FNMA activity under Special Assistance and Management and Liquidating Programs. Exhibit F - Part III FNMA Weekly "Auction" Results Amounts (In millions of dollars) Accepted Offered 61 Total Total Year Month I? Week ended 90- Yields (Per Cent) 61 Day Month Year July 1 8 15 22 29 148.0 157.2 172.2 158.6 148.4 89.0 88.5 80.4 65.8 70.0 16.3 11.2 9.6 8.6 7.1 60.5 65.9 57.3 47.4 53.7 12.2 11.3 13.5 9.8 9.2 7.51 7.42 7.36 7.33 7.32 7.48 7.40 7.35 7.32 7.33 7.47 7.37 7.32 7.31 7.33 Aug. 5 12 19 . 26 121.8 108.4 93.1 99.3 66.3 60.2 54.7 51.1 9.8 9.8 10.3 7.5 49.7 43.4 37.4 37.0 6.8 7.0 7.0 6.6 7.31 7.29 7.27 7.25 7.32 7.31 7.27 7.24 7.31 7.29 7.25 7.23 5.17 50.4 47.1 34.5 36.2 5.7 5.0 6.1 4.5 3.1 37.6 39.0 29.9 21.0 24.8 8.3 6.5 11.1 9.1 8.3 7.25 7.21 7.17 7.17 7.16 7.23 7.22 7.19 7.17 7.16 7.21 7, 17 7.11 7.11 7.10 35.1 41.6 44.0 49.1 2.2 2.5 2.7 3.0 22.9 30.0 30.7 31.3 10.0 9.1 10.7 14.7 7.19 7.20 7.21 7.24 7.16 7.18 7.20 7.23 7.09 7.12 7.13 7.17 Sept. 3 9 16 23 30 90.9 82.5 81.9 93.2 91.0 Oct. 7 14 21 28 9,8.9 119.2 132.8 131.9 , Note: Total accepted shown in parenthesis for most recent w e e k indicates FNMA announced limit before the "auction" date. Average secondary market yields are gross -- before deduction of 50 basis point fee paid by investors to services: They reflect the average accepted bid price for Government-underwritten mortgages after allowance for FNMA commitment fees and FNMA stock purchase requirements, assuming a prepayment period of 15 years for 3-year loans. One-year commitments are for new homes only. EXHIBIT G, Port 1 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 Adjusted to Aaa Basil N E W ISSUES ' I I! JjF III r S E A S O N E D Aaa W Moody » lll 1 llli ' | | I I I 1 1 1 'I 1 1- 1964 . | l' ! 1 1 1 1 1965 1 1 1 1 | | | .1 l 1 1 1966 1 .1 _L 1967 1968 Exhibit G - II Yields on New Corporate Bond Issues Adjusted to an Aaa basis Number of Am't. of issues Average included (mill. yield of dollars) (per cent) Number |Am't. of issues Average of included (mill. yield issues I of dollars) (per cent) M o n t h l y averages 1968 Jan. . Feb. Mar. Apr. May June July Aug. Sept. Oct. 13 13 10 9 11 13 7 8 7 15 567.0 564.0 350.0 465.0 511.0 872.0 552.0 267.0 450.0 584.0 6.24 6.30 6.56 6.52 Oct. 4 11 18 25 6.65 6.54 Nov. l 6.66 2 4 4 3 o . R f 2 50.0 181.0 200.0 103.0 6.57 6.59 6.57 6.56 50.0 6.66 6.26 6.30 6.47 Weekly averages: 6.83(5/24/68) High 6.13(8/16/68) Low Note: Averages of offering yields on all new issues of'publicly'offered corporate bonds rated Aaa, Aa, and A by Moody's Investors Service (except serial and convertible issue's-, offerings of natural gas pipeline and foreign companies, and bonds guaranteed by the Federal Government) weighted by size of offering. Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual reoffering yield the excess of the weekly, average yield for seasoned bonds of the appropriate industry-quality group over the composite average for seasoned Aaarated bonds (Moody's). Averages considered unrepresentative because of special characteristics of the offerings included are denoted by an asterisk. £/ Preliminary. Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of^dollars) Capital 1968P/ 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter lat half Three quarters Year State and local *l} 1966 1967 1968p/ 1,648 1,398 2,317 1,302 1,237 2,446 1,133 1,147 1,384 1,482 1,196 1,438 1,188 858 865 1,385 1,825 2,334 1,973 1,474 2,611 1,553 1,058 2,364 . 1,298 1,115 1,381 1,111 1,229 1,497 1,193 901 1,141 2,121 £/l,384 e/1,650 2,457 2,406 1,723 1,039 1,670 1,382 •ilm2/1,300 943 858 1,300 701 773 1,020 ±4,800 e/1,600 2,289 1,467 2,336 829 1,085 1,635 e/2,100 1,600 974 1,400 1,182 755 969 940 5,014 5,544 e/5,155 5,364 6,058 6,584 6,092 4,985 4,975 4,091 ,3,550 3,665 r/3,794 1/4,371 4,119 3,837 3,131 3,556 2,911 3,235 2,494 2,664 11,421 18,007 24,098 9,959 14,050 17,601 7,459 #1,830 April May June October November December 1966 1,706 1,568 1,740 January February March July August September Corporate T r 1967 10,558 e/15,713 7,956 11,087 14,643 Excluding finance companies 3/ 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 4,943 5,265 Year 5,207 5,913 6,338 5,657 4,924 4,884 3,969 3,188 23,115 17,269 l i i i s s s . e/ Estimated by Federal Reserve. 6,146 8,640 11,304 Zf Exhibit I New Cornorate Security Issues, Type of Issue and Issuer (In millions of dollars) Gross proceeds for new capital and refunding 1/ Bonu s Common M e m o : Publicly Privately and Foreign Offered Placed pfd. issues stock included Net proceeds for new capital 1/ Quarter or Month Total 1967 - I II III IV 5,464 6,208 6,833 6,294 3,263 4,017 4,604 3,107 1,811 1,465 1,551 2,137 390 726 678 1,051 60 65 234 93 2,442 3,014 2,792 2,527 997 1 ,268 = 1,,219 1 ,255 = 543 548 , 595 • 269 1,382 1,228 1,976 2,040 1968 -.1 II 5,178 5,705 2,465 3,105 1,724 1,644 989 956 313 172 1,855 1,653 1,,394 1,,201 411 529 1,356 2,159 1967 - Sept, Oct. Nov. Dec. 1,763 2,409 1,500 2,385 902 1,375 645 1,087 647 566 551 1,020 214 469 304 278 637 906 512 1,109 265 573 404 278 200 119 82 68 619 690 469 881 1968 - Jnn. 1,771 Feb, 1,607 1,800 Mar. 1,428 Apr. J 1,867 May June 2,418 July £ / 2,174 Aug. P/ 1,423 Sept. £/ 1,725 903 796 766 719 1,046 1,340 546 585 593 438 521 685 561 322 226 441 271 300 385 16 61 236 31 89 52 47 537 556 761 353 550 750 839 417 546 431 178 549 474 236 186 147 78 189 103 237 236 566 321 469 663 622 874 810 74 356 525 438 400 117 125 1,244 637 725 f l _/ 2/ *• 396 700 369 390 300 8 34 19 4 30 Mfg. Public CommuniOther Utility cations. Issuers * ! Preliminary, e/ Estimated by Federal Reserve, n.a. Not available. Gross proceeds exceed net proceeds by the cost of flotation. For total see Exhibit H; other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. SOURCE: Securities and Exchange Commission. 2/ 473 600 Exhibit J Other Security Offerings (In millions of dollars) 196 8 January February . .March April May June July August September October November December 127 49 107 75 142 7 100 Jan. - July 607 Year Gross Long-term 1/ Federal Agency 3/ Foreign Government 2/ 1966 196 7 196 8 196 7 196 7 196 223 27 13 170 22 586 193 66 142 18 12 40 40 . 66 69 . 76 72 7 50 23 74 68 651 375 1,656 597 999 550 1,370 225 744 779 800 5,467 1,251 783 750 650 810 650 407 250 599 708 710 612 503 410 392 699 1,030 1,084 799 400 450 800 239 5,301 4,118 8,180 6,806 New short-term 4/ Federal Agency 3/ State and local Government 5/ January February March April May June July August September October November December Jan. - Aug. £ / . 300 89 -604 3 490 -378j>/ 5392/ 34£/ 473 Year 179 387 -594 827 515 -187 20 593 ,32 414 49 -514 103 . 39 -319 580 462. -334 -103 270 -161 -48 503 -570 1,740 698 1,721 531 490 436 -593 681 121 27 457 -203 -179 -552 -454 -559 109 93 -158 -262 1,407 606 573 36 308 -24 450 718 85 284 -590 -270 -652 -555 -283 219 1,416 -1,962 961 660 310 £/ Pre1iminary. e/ Estimated by Federal Reserve, n . a . — N o t available. _1 / These data differ from those in Exhibit H in that refunding issues, as well as new capital issues, are included. Long-term securities are defined as those maturing in more than.one year. 2/ Includes securities offered in the U.S. by foreign governments and their political subdividions and international organizations. Source: Securities and Exchange Commission. 3/ Issues not guaranteed by U.S. government. Source; Long-tera, Securities and Exchange Commission; short-term, Treasury Dept. & Fed. 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 maturity of one year or less. 5/ 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 Buyer & Federal Reserve. • 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 1967 - Aug. Sept. Oct. Nov. Dec. 1968 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Corporate Bonds Convertible (other than 1,705 794 1,458 826 978 904 757 788 696 1,009 1,461 1,243 665 . 736 350 257 285 150 437 168 105 135 723 283 120 395 143 91 1,288 473 897 461 460 652 575 415 500 656 1,161 650 405 541 Stocks State and local 67 65 276 215 81 85 77 238 73 70 180 98 117 104 473 847 505 865 633 785 591 736 794 571 758 864 1,165 693 Other 2/ 221 400 50 845 627 1,095 389 1,030 370 145 500 920 70 520 Large Individual Issues Offered October 1 through November 1, 1968. Issuer Type 3/ Amount (millions of dollars) Maturity Coupon rate or net interest cost Rating Offering yield Corporate Columbia Gas System National Industries Eckerd Drugs ^Shareholders Capital Corp. Chesapeake & Potomac Tel. Co. of Maryland Eastern Airlines Ceco Corporation Consolidated Edison of N.Y. Jersey Central Power & Light Company Wisconsin Public Service Northern Indiana Public Svc Company Canal Electric 40. 0 Debs. . Conv. sub. debs. 25.,0 Conv. sub. debs. 15.,0 19.,3 Com. stk. 1993 1988 1988 7 5-3/4 4-3/4 6..95 5.,75 4..75 A Debs. Conv. sub. debs. Conv. debs. 1st mtg. bds. 75.,0 50.,0 15.,0 60.,0 2008 1993 1988 1998 6-5/8 4-3/4 4-3/4 6.85 6. 60 4..75 4.,75 6.,85 Aaa B Ba A 1st mtg. bds.. I'fd. stk. 26..0 15.,0 1998 7-1/4 7.,10 A 1st mtg. bds. 1st mtg. bds. 20.,0 19.,0 1998 1996 6-7/8 7 6.,72 6,,90 — B - Aa Aa A K-2 Large Individual Issues Offered October 1 through November 1, 1968. Type 3/ Amount (millions of dollars) Maturity Coupon Offerrate or net inter- ing yield est cost Rating Corporate (Cont'd) 15.6 Com. stk. •Gilbert Elexi-Van Corp. 45.0 1st mtg. bds. Illinois Power Company 75.0 Debs. Pennzoil United 75.0 S.F. debs. Philip Morris, Inc, 40.0 1st mtg. bds. Carolina' Power & Light 30.0 Conv. debs. Fibreboard Corporation 40.0 Gulf States Utilities Co. 1st mtg. bds. 55.0 1st mtg. bds. Consumer Power • Transcontinental Gas , 1st mtg. p.1. bds. 40.0 Pipeline ' 28.6 Com. stk. • Northeast Utilities Co. Connecticut Light & Pwr. 40.0 1st mtg. bds. Company 25.0 Wilson Sporting Goods Co. Sub. debs, w/wts. 25.0 Conv. debs. Belco Petroleum Corp. 25.0 Delmarva Power & Light Co. 1st mtg. bds. 25.0 1st mtg. bds. Alabama Power State &T local Government Seattle, Washington Canton, Ohio Los Angeles Flood Control District, California State of Rhode Island Alachua Co. Special Tax School Dist. #1, Fla. San Francisco B.A.R.T. •State of Ohio • New York State Dormitory Authority Washington Sub. Sani. . Dist. , Maryland State of Alaska Maryland State Roads Comm. Maryland'State Roads Coram, San Diego, California Montebello,• Calif.t U.S.D. Pontiac Sch. Dist,, Mich. New York City Los Angeles U.S. D. Calif Jackson Co., Missouri Penna. State Public Sch. Building Authority Hillsborough Aviation • Authority, Tampa. Fla. San Diego Water Auth., California New Jersey Turnpike Auth. G.O. Rev. -Rent. G.O. G.O. Rev.-S.T. G.O. G.O. Rev.-Rent. G.O. G.O. Rev. -Q. -Ut. Rev. -Q. -Ut. Rev. -Ut. G.O. G.O. G.O. G.O. G.O. Rev. -Rent. Rev. -Rent. Rev.-Ut. Rev.-Q.-Ut. 10.0 45.0 6-3/4 7-3/8 6-5/8 6-7/8 4-3/4 6-3/4 6-5/8 6.75 7.38 6.77 6.80 4.75 6.65 6.55 Aa Baa A Aa Ba Aa Aaa 1989 7-1/4 7.25 Baa 1998 1988 1988 1998 1998 6-7/8 6-1/2 4-3/4 7. 7 6.80 6.50 4.75 6.80 7.00 Aa B Ba Aa A 1998 1988 1993 1998 1993 1998 1998 ; 1970-2008 1972-78/93 3.20-5.00 4.15-5.20 A-l 45.0 1970-1995 1969-1988 4.33 4.04 3.10-4.45 2.95-4.30 Aa A-l .12.8 70.0 50.0 1971-1988 1972-1999 1970-94 4.53 A. 70 4.30 3.60-5.00 3.50-5.20 3.15-4.50 A Aa Aaa 45.8 1970-99 5.15 5.25 Aa 20.0 1969-98 1969-88 1973-88 1975-1998 1970-90 1970-1987 1970-1999 1969-1993 1969-1988 4.46 5.02 . 5.22 5.22 5.07 4.53 4.73 4.98 4.51 4.35 1971-2008 ; 5.20 20.0 10.5 50.0 170.0 10.0 12.0 . 19.0 126.2 39.5 25.0 . 16.3 67.0 30.0 125.0 2008 3.10-5.20 3.50-5.05 4.10-4.90 4.10-4.90 4.00-5.10 3.40-4.60 3.50-4.80 3.75-5.25 3.10-5.00 3.10-4.50 4.00-5.38 1972-80/99 5.97 4.35-5.88 1969-2003 4.85 5.24 3.15-5.10 2008 A Baa A A A A A-l Baa-1 Aa Aa 5.20 Baa A-l A K-3 Large Individual^Issues Offered October 1 through November 1, 1968. Type 3/ Issuer Amount (millions of dollars) Maturity Coupon rate or net interest cost Offering yield Rating State & local Govt. Isle of Wight Co. Ind. Development Auth., Va. State of California Baltimore, M a r y l a n d Cleveland Sch. Dist., Ohio New York State Job Development Authority Connecticut, State of Cook Co., 111, Forest Preserve District Prince George's Co. New Y o r k City New Y o r k State Housing Finance Agency Other Province of M a n i t o b a Federal Land Banks Export-Import Bank Inter American Developm e n t Bank Quebec-Hydro Elec. Comm. G.O. 38.4 100.0 28.5 G.q. 22.0 Revl-Rent. 1961-78/90 1978-2018 1969-1993 4.86 4.44 4. 40-5. 5 0 4. 15-4. 87 3. 10-4. 75 Aa A 1970-1989 4.46 3. 40-4. 70 A 3. 25-4. 70 3. 05-4. 25 Aa . Aaa A A . Baa- Rev.-Rent. G.O. 15.0 60.0 1970-1993 1969-1988 4.45 4.09 G.O. G.O. Rev.-Rent. 14.0 21.0 23.5 1970-1988 1969-93 1969-2014 4.53 4.58 5.58 3. 40-4. 65 3. 10-4. 90 3. 50-5. 50 Rev.-Rent. 91.0 1969-1998 5.15 3. 00-5. 20 A Debs. Bonds Debs. 50.0 39.5 400.0 1993 1971 1973 6-7/8 6 . 6.15 6.90 6.00 6.15 A Bonds Debs. 70.0 50.0 1993 1991 6-5/8 7-1/4 6.66 7.30 Aaa A Rights offering. n.a. Not available. Includes corporate and other security offerings of $15 m i l l i o n and over; State and local securitv offerings of $10 m i l l i o n and over. Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. In the case of State and local Government Securities, G.O. denotes general obligation; Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. - a i H. 14 Exhibit L Forthcoming Large Long-term Public Security Offering for New Capital (Other than U.S. Treasury) If Expected Proceeds from Forthcoming Large Issues (In millions of dollars) During month following, date shown Stace and Other 27 Corporate local govt. 1967 - July 31 Aug. 31 Sept. 30 Oct. 31 Nov. 30 Dec. 31 1968 -,Jnn. 31 Fob. 29 M a r . 31 Apr. 30 May 31 June 30 July 31 Aug. 31 Sept. 30 1,261 694 534 1,357 826 968 531 873 758 1,103 1,193 1,068 619 793 512 783 768 505 865 633 449 683 494 695 485 597 1,071 1,157 100 65 50 845 402 60 130 15 45 500 75 70 490 1,313 450 -- Corporate Subsequent to date shown 1 State and | local Eovt. 1,576 1,335 1,090 2,694 2,129 1,892 736 1,105 935 1,612 1,403 1,380 679 868 887 Other 2/ 575 903 889 743 1.,684 1,,076 937 1,,079 624 ,069 1J 640 ,042 1j 1,,307 1 ;,393 150 159 126 260 875 502 75 265 125 1, 552 465 60 515 110 85 15 Forthcoming Large Offerings as of November 1, 1968. Type - ' Corpora te -Pacific Gas & Electric General Tel. of M i c h i g a n W i s c o n s i n Electric Power Co. Northern Natural Gas,Company N o r t h e r n Natural Gas Company Florida Power Corporation South Central Bell Telephone Co. Louisville & Nashville Railroad Hartford Elec. Light Co. Boston E d i s o n Florida Power G e n e r a l Telephone of Florida ^Michigan Consol. Gas Co. Public Service of New Hampshire Public Service Electric & Gas A m e r i c a n Financial Corporation *Anaconda Company 1st mtg. bds. Debs. Debs. Pfd. stk. Debs. 1st mtg. bds. Debs. Coll. tr. bds. 1st mtg. bds. 1st mtg. bds. 1st mtg. bds. S.F. debs. 1st mtg. bds. 1st mtg. bds. 1st mtg. bds. Conv. debs. Amount (millions " of dollars) 60.0 Approximate date of offering 40.0 , 30.0 85.0 40.0 25.0 50.0 50.0 35.0 31.0 15.0 40.0- November November November November November November November November November November November November November November November 15.0 150.0 November November 22.0 40.0 20.0 7 7 12 13 13 14 18 19 19 20 21 21 25 25 26 L-2 ' Forthcoming Large Offerings as of November 1, 1968. Issuer Type Amount (millions of a dollars) Approximate date of offering . Corporate (Cont'd) *New England Pwr. Company *San Diego Gas & Elec. Company *Tampa Electric Company Tesoro Petroleum Southern Company Alexander's Dept. Stores King Resources Reading & Bates Offshore Drilling Company Puerto Rico Telephone Company Cleveland Elec. Illuminating Co. International Leisure Corporation 1st mtg. bds. 1st mtg. bds. 1st mtg. bds. Debs. Debs. Com. stk. Conv. sub. debs. 20.0 35.0 30.0 15.0 15.0 20.0 20.0 December 2 December 3 December 5 Indefinite Indefinite Indefinite Indefinite Conv. debs. Debs. 1st mtg. bds. Units 20.0 25.0 50.0 25.0 Indefinite Indefinite Indefinite Indefinite State « local Government S t n1 a of Texas Hialeah, Florida New York State State of Delaware *State of Massachusetts Warren Consol. Sch. Dist., Mich. Hartford, Connecticut *Ix:awamba Co., Mississippi *Port Huron, Michigan Illinois Building, Authority ^Baltimore Co., Maryland Penna. General State Authority Los Angeles Dept. of Water & Pwr. *Pittsburgh Pa., Sch. District New Madrid, Missouri New Madrid, Missouri Port of Astoria Pennsylvania State Highway & Bridge Authority Delaware River Jt. Toll Bridge Commission Port Huron, Michigan Housing Assistance Administration Hartford, Connecticut Tampa Hillsborough Co. Expressway Authority Cobb Co., Georgia Other Nova Scotia, Province of Tennessee Valley Authority Canadian Utilities, Ltd. . G.O. Rev. -Ut. G.O. G.O. G.O. G.O. G.O. Rev.-Rent. Rev.-Rent. Rev.-Rent. G.O. Rev. -Rent. Rev.-Ut. G.O. Rev.-Rent, (alum.) Rev. -Rent, (elec.) Rev.-Rent. Rev. -Q. -Ut. Rev,-Q.-Ut. Rev. -Rent. Bonds G.O. 12.0 14.0 84.0 31.6 54.9 12.3 14.8 13.0 22.0 42.0 11.0 75.0 30.0 12.0 85.0 100.0 150.0 75.0 20.0 . 22.0 117.2 15.4 November November November November November November November November November November November November November November November November November 6 7 7 13 13 13 14 15 15 19 19 20 20 26 November November November November ,' Indefinite Rev.-Q.-Ut. Rev.-Ut. 46.0 32.5 Indefinite Indefinite S.F. debs. Bonds S.F. debs, w/wts. 35.0 80.0 15.0 November - 7 November 13 Indefinite • m L-3 . FOOTNOTES: Included .in table for first time. Includes corporate and other issues of $15 million and over; State and local Government issues of $10 million and over. 2/ Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. 1/ R Exhibit M Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Amount (millions of dollars) Sale Date Public Offerings Issuer and Description of Issue Sold; Sept. 1 through Nov. 1, 1968. International Bank for Reconstruction and Development, 6-3/8% bonds maturing 1994, reoffered to yield .Sept.'17 250.0 Sept. 19 20.0 Province of New Brunswick -- 6-7/8% -S.F. debentures maturing 1991, reoffered to yield 7.05%. Oct. 2 50.0 Pr vince of Manitoba -- 6 - 7 / 8 % S.F.- debentures maturing 1993, reoffered to yield 6.90%. Oct. 13 50.0 Quebec Hydro-Electric, Comm. — 6.44%. B B. Nov. 7 Indefinite * [ Debentures. Prospective Offerings 35.0 Nova Scotia, Province o f — 15.0 Canadian Utilities, Ltd. - S.F. debentures with 0 warrants. - Included in table for first^time. S.F. debentures. M-2. PART II: Dai e Reported Private Placements -- Reported Sept. 1'through Nov. 1, 1968. Amount (millions of dollars) 9/9/68 2.0 Issuer and Description of Issue Caribbean Finance Company (Puerto Rico) Senior notes maturing July, 1983. NOTE: For retrospective data on aggregate foreign corporate and government security offerings in the United States see Exhibits I and J. There is no simple relationship between the data shown in the Exhibit and that shown in Exhibits I and J because the latter includes privately placed securities iri the period in which funds are actually taken down 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 takedown. Full or partial takedown may take place both prior and subsequent to the date a placement is reported.
@FedFRASER