Full text of H.16 Capital Market Developments : November 5, 1962

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Not for Publication DECONTROLLED AFTER SIX MONTHS
H.14

November 5, 1962.

LIBRARY
NOV

7

CAPITAL MARKET DEVELOPMENTS
1
— " I N 1 THU UNITED STATES

1962

F E D E R A L R25F.AVE B A L K

:luding Review of Capital Markets in October)

OF lUCMWOUD
Public security financing to obtain new capital was in light
volume last week and is expected to remain so this week. During the week
ending November 2, two large corporate security issues totaling $48
million were offered to raise new capital and one State and local government bond issue for $45 million was sold. This week, ending November 9,
only one corporate issue for $23 million and one State and local issue
with a par value of $12 million are scheduled for offering.
Bond yields. Changes in yields on seasoned, long-term bonds
were mixed last week. Yields on Aaa-rated corporate bonds fell one basis
point to 4.26 per cent, their lowest level since late April 1961 and one
basis point under their late May level, but yields on Baa-rated issues
rose a basis point to 4.99 per cent. Aaa-rated State and local government
bond yields were stable at 2.88 per cent, their lowest level since late
July 1958, while yields on Baa-rated issues dropped 5 basis points to
3.53 per cent, only one basis point above their mid-May low. U. S.
Government bond yields fell 2 basis points to 3.87 per cent, 2 basis points
above their early May low.
Average yields on new corporate bonds, adjusted to an Aaa basis
were 4.04 per cent last week, only 2 basis points above their mid-May low.
Short- and intermediate-term interest rates. Yields on 3-month
Treasury bills were stable last week, but rates on 6-month bills fell a
single basis point; yields on 3-5 year U. S = Government securities dropped
3 basis points to 3.45 per cent, 2 basis points above their early April
low. Several finance companies lowered the advertised rate on their
directly-placed paper with 90-179 day maturity from 3 to 2-7/8 per cent
the middle of last week, resulting in a lowering of the average rate on
such paper by 5 basis points to 2.95 per cent. The average effective
rate on Federal funds rose slightly to 2.93 per cent. Other short- and
intermediate-term interest rates were unchanged.
Mortgage yields. Secondary market yields on 5-1/4 per cent FHA
mortgages declined 2 basis points further in September to an average of
5.56 per cent. This was 16 basis points below the level at the start of
the year and the lowest since the autumn of 1958.
Yields on new Aaa corporate bonds declined further in September
and the spread between mortgage and bond yields broadened to 143 basis
points, about the spread last June. Since new bond yields rose in
October, however, the spread apparently has narrowed again recently.
Rates on loans for conventional mortgages at large savings
and loan associations were reported to have risen in early September,
but fees as a proportion of loan volume remained appreciably below yearearlier levels and indications from other sources were that downward
pressure on these and related mortgage rates was continuing.




Stock prices. Common stock prices rose very sharply last week
in active trading. Prices, as measured by Standard and Poor's composite
index of 500 stocks, rose almost 6 per cent (their largest Friday-toFriday advance in recent years) to close at 57.75 on November 2. Trading
volume averaged 4.0 million shares a day, 1.0 million shares below the
very high average of the previous week.
Estimated November security volume. Security financing to
obtain new capital by corporations is expected to be in moderate volume
in November, and bond sales by State and local governments probably
will be rather light again this month.
Corporations are expected to offer $750 million in securities
to obtain new capital this month, one-tenth less than last month and
one-fifth below the average for November of the two previous years. Large
issues currently scheduled for public sale during the month total around
$200 million.
State^ and local government bond sales in November are estimated
at about $0.5 billion, one-sixth less than the revised October total and
more than one-third below November last year. Large issues currently
scheduled for sale in November amount to less than $100 million.
Capital markets in October. New security financing by corporations was in fairly.substantial volume in November, but bond sales of
State and local governments were rather light. Yields on seasoned,
long-term bonds continued to decline.
Corporations offered securities for new capital totaling $850
million in October, about one-third more than in September but around
one-fifth less than last October's very substantial total. The sale
of $250 million of debentures by American Telephone and Telegraph Company
was primarily responsible for an increase in public sales of nonconvertible bonds to close to $400 million, the largest monthly total
since April; large stock offerings, however, totaled only $36 million.
In addition to new capital financing large bond issues sold to refund
outstanding securities amounted to over $100 million last month.
Yields on seasoned corporate bonds dropped off further during
October, with yields on Aaa-rated issues declining 5 basis points to
4.26 per cent (daily basis) at the end of the month, their lowest level
since mid-April 1961 and one basis point below their May 1962 low.
Average yields on newly offered corporate bonds, adjusted to an Aaa basis,
were
4.24 per cent in October, 11 basis points above September, but
this increase is attributable primarily to the relatively high reoffering
yield on the AT&T issue which was sold at a time of great international
tension. Most issues sold during the month met a favorable retail reception
with several of the largest issues, including the AT&T issue, being quickly
distributed and moving to small premiums. As a result, unsold syndicate
balances were quite small throughout the month.
Bond financing by State and local governments totaled $0.6
billion in October, half again as large as the very small September
less than a year earlier. Due partly to

volume but nearly one-tenth



the continued light volume of new financing, State and local government
bond yields continued to decline. Yields on Aaa-rated municipal bonds
fell 12 basis points further to 2.88 per cent, their lowest level since
late July 1958 and 4 basis points below their early May low.
Most new municipal issues met generally favorable investor
demand and dealers' advertised inventory of unsold securities changed
very little on balance during the month at around $400 million, $280
million below the mid-May peak. There was a very sharp, but temporary,
drop of around $100 million in advertised inventories about mid-month
but this apparently reflected brief withdrawals from inventory by dealers
for repricing of securities to bring them in line with the new lowerlevel of market yields.
Common stock prices fluctuated sharply in October, particularly
late in the month in response to the changing international situation.
On balance, however, they changed little and Standard and Poor's composite
index of 500 stocks closed at 56.52. At this level prices were 23 per cent
below their late 1961 high and 8 per cent above their June low. Trading
volume averaged 3.4 million shares a day, 0.1 million more than in
September.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




EXHIBIT A,J>o
LONG-TERM BOND YIELDS," HIGH-GRADE
We.klV

1959

1960

Exhibit A - Part II

Date

Corporate
Aaa 1/

U. S. Govt,
long-term 2/

State and .
local
government
Aaa 3/

Spread between
U. S. Govt, and
Corporate
State and
Aaa
local Aaa

(per cent)
1957 - High
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - High
Low

lull*
3.55
U.6l
i|.21
1|.U6
4.43
4.26

Oct.
Oct.
Oct.
Oct.
Nov.

4.29
4.28
4.27
4.27
4.26

5
12 '
19
26
2 2/

(9/27)
(5/2)
(3/29/60)
(3/17/61
(9/15)
(2/16)
(11/2)




3.76
3.07
U.-U2
3.70
1.07
4.12
3.85
3.90
3.90
3.88
3.89
3.87

(10/lfi)
(4/25)
(1/8/60)
(5/12/61)
(12/29)
(2/23)
(5/11)

3.1*5(8/29)
2.64(5/1)
3.65(9/24/59)
2.99 (9/1/60)
3.37(7/6)
3.26 (1/4)
2.88 (11/1)

.60
.22
.59
.19
.57
.47
.29

3.00
2.99
2.89
2.88
2.88

.39
.38
.39
.38
.39

.50
.3U
.92
.U6
.76
1.08
.80
"

.90
.91
.99
1.01
.99

EXHIBIT B. Port I
L O N G - T E R M BOND YIELDS, LOWER-GRADE

CORPORATE I

STATE AND 1 0 C A I GOVERNMENT I

Exhibit B - Part II

Date

Corporate
Baa 1 /

State and
local g o v t .
Baa 3 /

Spread b e t w e e n
A a a a n d Baa
Corporate

(per cent)
1957 - High
1 9 # - Low
1 9 5 9 - 6 0 - High
1960-61 Low
1961 - High
1962 - High
Low
Oct.
Oct.
Oct.
Oct.

5
12
19
26

/Hov. 2 £/
2/
1/
2/
0/

5-10
U.5L
5.36
it. 9 8
5.13
5.11
4.98

(11/29)
(7/11)
(2/12/60)
(9/9/60)
(10/27)
(1/5)
(10/26)

5.00
4.99
4.98
4.98
4.99

4 . 5 1 (8/29)
3.61* (5/1)
i*.i*6 (3/7/60)
3.93
It. 1 6
4.04
3.52
3.65
3.65
3.59
3.58
3.53,

Preliminary,
Weekly average of daily figures.
Weekly
mv,
\ average of daily figures
-

1.27
•77

1.21
.93

.81*

1.08

.66
.74
.63

.57
.93
.82
.56

.71
.71
.71
.71
.73

.65
.66
.70
.70
.65

(11/9/61)
(3/23)
(1/11)
(5/17)

.81

Average term of bonds included in 23-26 years
- - - includes bonds due or callable in 10 years or more,
series

mv
T he

Uo1


series• For spreads, high


S t a t e and
local govt.

refers to widest, and low to narrowest#

SHORT- A N D I N T E R M E D I A T E - TERM INTEREST RATES, G O V E R N M E N T

1

F. t . DISCOUNT I A IE
3 • MONTH H t l S
k.t Yield, i

I M I I I I I I I I

II I I I I I I I I I

1 I I.I I I I I I I I

I I I I I I II I I I

1959

1940

1*&1

1951

I I I. I I I l I I I I I J .
J»«

E x h i b i t C - Part I I

Date

Discount
rate

V

3-month
b i l l s 2/

1957 - H i g h
.. 1 9 5 8 - L o w
' 1959-60 - H
1960-61 Low
1961 - High
1962 - High
Low

3.50
1.75
it. 0 0
3.00
3.00
3.00
3.00

3.6k
.58
it. 59
2.11
2.66
2.97
2.65

•

3.00
3.00
3.00
3.00
3.00

2.75
2.76
2.74
2.74
2.74^

v

x

^

Oct.
Oct.
Oct.
Oct.

V-Nov.

5
12
19
26
2 £/

(10/18)
3.02
(5/29)
(1/8/60) 5 . 0 7
(10/28/60) 2.35
2.90
(12/29)
3.13
(7/13)
2.74
(6/8)

1.

;

2.89
2.86
2.84
2.83
2.82

(12/26)
(1/8/60)
(4/28/61)
(12/29)
(7/20)
(6/8)

3-5 year
issues 2 /

Spread b e t w e e n y i e l d s on 3 m o n t h b i l l s and y i e l d s on
6 - m o . bills 13-5 y r . i s s u e s

U.OI4 (10/18)
2.lit (6/6)
5 . 0 0 (12/24/59)
3.15(5/12/61)
3.86(8/11)
3.88
3.43
3.44
3.46
3.46
3.48
3.45

(2/2)
(4/6)

—

.86
.Oit
1.81
.38
1.51
1.19
.69

.26
.79
.12
.24
.06
.14
.10
.10
.09
.08

-

.69
.70
.72
.74
.71

Weekly r a t e shown i s t h a t i n e f f e c t a t end o f p e r i o d a t t h e . F e d e r a l Reserve Bank o f Newr 1Y o r k .
M a r k e t y i e l d ; w e e k l y averages computed f r o m d a i l y c l o s i n g b i d p r i c e s .
Series of 3-5 year issues
c o n s i s t s of s e l e c t e d n o t e s and bonds; '...
N o t e . — H i g h s and lows are f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t d a t e s f o r d i f f e r e n t s e r i e s .
F o r s p r e a d s , h i g h r e f e r s t o w i d e s t , and l o w t o n a r r o w e s t .

\J
2/

t

^

Yields
6-month
bills 2/
(per c e n t )




%

EXHIBIT D, Po»t J
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
Weekly

Per cent

i
E x h i b i t D - Part I I

Date

Stock E x c h a n g e
call loan 1 /

Prime
rate 1 /

Finance company
p a p e r 2/

Federal
funds 3 /

Spread b e t w e e n
3 - m o . b i l l s and
f i n a n c e Co. caoer

(per cent)
1957 - H i g h
1958 - Low
1959-60 - High
I96O-6I Low
1961 - High
1962 - High
Low
Oct.
Oct.
Oct.
Oct.
Nov.

5
12
19
26
2 j>/

L50
3.50
5.50
U.-50
L5o
4.50
4.50

U.50
3.50
5.00
4.50
k.50
4.50
4.50

3.88
1.13
5.13
2.50
3.00
3.25
2.88

4.50
4.50
4.50
4.50
4.50

4.50
4.50
4.50
4.50
4.50

3.20
3.02
3.00
3.00
2.95

(11/15)
(8/8)
(1/22/60)
(8/5/61)
(12/29)
(7/20)
(6/1)

3.50 (11/8)
.13(5/29)
4 . 0 0 (5/13/60)
.U3 (3/27/61)
2.88 (12/29)
3 . 0 0 (9/14)
1 . 3 0 (1/26)
2.95
2.75
2.95
2.88
2.93

.63
-.35
1.02
.11
.56
.45

19
.45
.26
.26
.26
.21

Weekly rate shown is that in effect at end of p e r i o d . S t o c k Exchange call loan rate is going rate
on call loans secured by customers' 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.
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,
I 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.
3/




STOCK MARKET
1941-43 *v.,.j

.13-

(K

MARKET

C R T D Y ^
*

I
I

CHANGE IN

1 1. . . I 1 M

-U-4-U M I N I .

SERIES

, . 1 1 1 1 1 1 1 1 L-U~

-HAL

± m

E x h i b i t E - Part I I

Stock price
i n d e x 1/

Trading
Common
stock
volume y
yields 2/
(millions
(per cent) of shares)

Stock market customer credit
Customers1
Bank
Total
debit b a l - loans to
ances k /
"others" 5 /
-(In m i l l i o n s of d o l l a r s )

I960- 6 1 - High
Low
1 9 6 2 - High
Low
September
October
Oct. 19
Oct. 26
Nov. 2 £ /

72.01*
53.32
70.94
52.68

(12/8/61)
(10/21/60)
(3/16)
(6/22)

58.00
56.17
55.59
54.54
57.75

2.82

5.8

2.93
3.96

10.1
2.4

3.60
3.71
3.76
3.84
3.61

3.3
3.4
3.3
5.0
4.0

3.62

2.2

5 , 6 0 2 (12/61)1;, 259 (12/61) 1 , 3 7 7 (8/30/61)
U,ll42 ( 5/60 ) 3,OOii (7/60) 1 , 1 2 1 (5/25/60)
5,491 (4)
4,876 (7)

4,111 (1)
3 , 5 6 2 (7)

5,155

3,886

1,418 (5/9)
1,269 (9/26)
1,288
1,285
1,288

n.a.—Not a v a i l a b l e . j y P r e l i m i n a r y . .
: V Standard and Poor's composite index of 500 common stocks, weekly dosing 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.
2f 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.
jy Averages of daily trading volume on the New York Stock Exchange.
A/ End of month figures for member firms of the New York Stock Exchange which carry margin accounts}
excludes balances secured by U. S. Government obligations.
5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
U. S. Government securities. Prior to July 1, 1959, such loans are excluded only at banks in
New York and Chicago, Weekly reporting banks account for about 70 per cent of loans to others.
For further detail see Bulletin.




EXHIBII_F,. P.MJL

MORTGAGE AND
Monthl

BOND YIELDS ^

HOME MORTGAGES - FHA

A e i CORPORATE BONDS:

^

1956

,v

1957

1958

1959

Exhibit F

Date

- Part

Aaa

FHA
mortgages

2/

3/

1961

1962

II

corporate

bonds
New

I960

Spread between new
corporate bonds and

1/

| Seasoned

h / FHA. m o r t g a g e s I S e a s o n e d b o n d s

1953-58

- High

5.63

(11/57)

4.81

(6/57)

1.96

.90

Low

4.56

(2/55)

2.74

(3/54)

2.85

(4/54)

.54

-.12

1959-61

- High

6.24

(1/60)

5.29

(9/59)

4.61

(1/60)

1.76

.77

1962
1962

£7

2/

4.12

(9/57)

Low

5.57

(3/59)

4.26

(10/61)

4.12

(1/59)

.65

-. 16

High

5.72

(1/62)

4.50

(2/62)

4.42

(2/62)

1.53

.08

- July"

5.60

4.33

4.34

1.27

-.01

August

5.58

4.30

4.35

1.28

-.05

September

5.56

4.13

4.32

1.43

-.19

October

n.a.

4.24

4.28

n.a.

-.04

N e i t h e r mortgage n o r bond yields take into account servicing costs whioh are much higher for
mortgages than bonds. Generally, bonds pay interest semi-annually; mortgages, monthly. Mortgage
yields, if computed as equivalent to a semiannual interest investment, would be slightly higher
than given in the table.
Based on FHA fieId-office opinions about average bid prices in the private secondary market f o r
new-home mortgages f o r imnediate delivery. Since late 1955, data relate only t o 25-year mortgages
w i t h down payments of 10 p e r cent or more, weighted by probable volume of transactions. Yields
computed by FRB, assuming 25—year mortgages are paid off in 12 years. Dashed lines indicate
periods of adjustment t o changes in the contractual interest rate.
See note for Exhibit G .
M o ody's Investors Service. Monthly averages of daily data. See Exhibit B.

3/

Aj


Exhibit G

If

H.14

Yields on New Corporate Bond Issues Adjusted to an Aaa Basis

Number
of issues
included

sIpMonthly averages:
®|l962 - January
|
February
March
April
,
May
July
August
September.
October
November
December
Weekly averages:
—' 1962 - January 5
12
(
19
<
26
:*
February 2
1
9
#
16
|
23
|
March 2
1
9
16
^
23
|
30
fi April 6
t
13
7
20
|
27
?
May 4
1
11
1
18
I25
1
June 1
|
8

l<

Amount
of issues Average
yield
included
(per
(millions
of dollars) cent)

1

60.0

3

70.0

2
1
1
1
1
1
2
2
2
2
2

19.5
300.0
50.0
25.0
30.0
65.0
60.0
85.0
98.0
26.0
100:0

June 15
4.45
4.50 ,
22
4.23
29
4.17
July 6
13
4.09
20
4.15
27
4.33
4.30
August 3
10
4.13
17
4.24
24
31
September 7
14
21
4.50
28
October 5
12
4.40
19
26
4.40
4.52* November 2
9
4.50
16
4.37
23
4.29
30
4.23
December 7
4.21
14
4.22
21
4.21
28
4.12
4.17*

2
2
2
2
1
3

115.0
28.0
41.0
39.0
17.0
115.0

4.14
4.21*
4.02
4.07
4.06
4.24*

5
6
7
7
12
6
11
3
4

130.0
394.5
240.0
299.0
148.0
368.0
141.0
379.3
66.9
400.0

Number
of issues
included

4
3
1

Amount
of issues
included
(millions
of dollars)

Average
yield
(per
cent)

67.0
145.0
24.0

4.12
4^11
4.19

--

--

1
3
1
4
2
3
2
1
1
1

50.0
46.0
20.0
107.3
115.0
70.0
52.0
60.0
12.0
50.0

1
1

4.9
75.0

2
3

275.0
85.0

--

4.45*
4.26
4.33*
4.34*
4.43*
4.24
4.17
4.20
4.14
4.13
4.05
4.16
4.28*
4.04

Note: Averages of offering yields on all new id sues of publicly sold bonds rated.Aaa, Aa
i and A by Moody's Investors Service (except serial, equipment trust and convertible issues,
offerings of natural gas pipelines and foreign companies, and issues guaranteed by the
Federal Government) weighted by size of issues . Yields on Aa- and A--rated bonds are
first adjusted to an Aaa basis, using the comparable spreads in yields on seasoned bonds
(Moody's averages). Averages reflect changes in industrial composition, type, maturity,
and call provisions of new offerings. Weekly averages considered unusually unreliable
as indicators of interest rates on new issues because of the small number or special
characteristics of offerings included etc. are marked with an asterisk. Source:
weekly data, Federal Reserve; monthly data, First National City Bank of New York.,




H. 14

Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New cap
State^and local 2/
1960
1961

Corporate 1/
I
1961
I

1960

592
859
807

580
667
562

570
715
860

2/876
2/1,132
2/629

713
689
764

700
611
568

April
May
June

1,113
760
1,132

2,118
1,259
1,318

761
577
1,044

2/864
2/807
e/700

723
641
1 ,034

719
545
991

July
August
September

2/590
2/734
e/625

1,028
762
647

736
967
726

e/600
e/575
e/400

485
604
734

492
606
683

October
November
December

e/850
e/750

1,090
948
1,000

890
956
852

e/600
e/500

678
789
606

348
501
491

2,258
3,005
e/1,949

1,809
4,695
2,437
3,038

2,145
2,382
2,428
2,698

12/2,636
e/2,371
e/1,575

2,,166
2,,397
1,,823
2,,073

1,880
2,256
1,780
1,340

5,263
e/7,212

6,504
8,941
11,979

4,527
6,955
9,653

e/5,007
e/6,582

4,563
6,386 ~
8,,460

4,136
5,916
7,257

January
February
March

1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

1962

|

I

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

quarter
quarter
quarter
quarter

2,199
2,919
e/1,849

Year

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

1,716
2,165
2,018
2,347

11,253

8,246

.

e7
1/
2/
3/

Estimated by Federal Reserve.
£? Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance
companies.




Exhibit I
New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
Quarter
or
month

Gross proceeds for new
capital and refunding"1/
Common
Bom Is
Total Publicly Privately
offered offered

Net proc<aeds for
new capiital 1/ 2/
Memo:
foreign

pfd.

Mfg.

Public Communiutility cations

Other
issuers

included

1960 - I
II
III
IV

2 ,265
2 ,537
2 ,520
2 ,832

934
1 ,074
1 ,336
1 ,462

795
770
754
955

536
692
429
416

69
27
38
17

298
511
562
625

598
808
652
696

189
149
317
381

1 ,059
913
896
997

1961 - I
II
III
IV

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

662
2,,303
772
967

880
1 ,275
1 ,139
1 ,424

449
1,774,
654
845

76
155
69
62

515
1,466
595
836

381
1,081
595
836

81
1,095
104
147

832
1.,052
803
1,,263

1962 - I
II
III £/
IV

2.,378
3.,250
2.,173

1,,155
1,,389
847

716
1.,222
1,,025

507
639
303

68
257
66

655
996
602

430
983
303

456
231
267

717
794
698

601
695
696
2,231
1,342
1,779
1,075
813
678
1,155
987
1,094

178
273
211
713
666
924
424
225
123
336
414
217

294
255
331
348
355
572
392
411
336
509
348
567

129
167
154
1,170
320
283
259
177
218
310
225
310

54
19
3
71
35
49
52
7
10
25
12
25

169
99
248
574
447
446
428
255
252
271
215
306

137
160
84
254
439
389
369
215
111
306
362
168

21
41
19
994
85
16
16
13
75
25
80
42

647
884
847
1,217
801
1,232
616
July £/
907
Aug. £/
Sept. e/ 650
Oct.
Nov.

273
497
386
654
247
488
200
477
170

232
232
253
227
420
575
352
348
325

3
12
54
10
147
100
20

205
131
318
384
270
342
211
211
180

89
148
193
377
196
410
124
109
150

73
362
21
88
64
79
88
119
60

Feb.
Mar.
Apr.
May
July
Aug.'
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May

143
155
209/
336
134
169
65
83
155

46

.

253
368
211
297
289
467
.315
279
209
487
291
485
225
218
275
264
229
301
168
295
235

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




H. 14

Exhibit J
Other Security Offerings
(In millions of dollars)
Gross long-term 1/
Federal agency 3/
Foreign government 2/
1962
1962
1 1961
1
1961
1 1960

January
February
March
April
May
July
August
September
October
November
December

142
10
35
10
86
50
E/25
e/8
e/20

43
34

Year
Jan. -Sept.

6
29
20
2
66
29
5
2

e/386

2
175
70
34
72
40
25
1
36
34
2
41

236

533

159

455

246
156
461
——

252
100
149
278 .

--

--

150
e/175

250
193

182
150
150
148
354
--

199

--

160
149
181

1,448

1,672

1,222

1,183

225

eA ,188

1960

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

18
466
-186
127
-84
-118
78
339
2/-407

160
195
-8
-103
-42
-155
109
518
-86
-6
54
-116
520

18

%/233

588

173

Year
Jan.-Sept.
]V
1/

58
140
-80
70
-146
-157
48
415
-175
-16
50
-189

247
-156
226
-364
82
284
261
227
-157

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

-196
-202
-59
-277
170
320
95
23
-201
-23
-33
-250

-76

-633

650

—1'1'6

-327

Preliminary.
e/ Estimated by Federal Reserve.
n.a.--Not available.
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 United States by foreign governments and their
political subdivisions and international organizations, Source: Securities and
Exchange Commission.
3/ Issues not guaranteed by the U. S. Government. Source: long-term, Securities
and Exchange Commission; short-term, Treasury Department and Federal Reserve.
4/ These data differ from those in Exhibit H and above in that they represent new
offerings less retirements, whether from the proceeds of refunding issues or from
other funds. Data include only issues with original maturity of one year or less.
5/
Principally
tax and bond anticipation notes, warrants or certificates and Public

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

Federal Reserve Bank of St. Louis

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

Month

Total

1961 - October
November
December
1962 - January
February
March
April
May
-

354
391
255
195
425
366
648
200
472
165
286
191
434

July
August
September
October

Corporate
Bonds
Convertible
(other than
bonds
convertibles)
205
320
125
170
425
330
430
170
387
135
226
100
398

Stocks

67
26

81
45
130
25

15
51

21
167
30
85
30

State
and
local
government
326
480
307
561
662
259
423
373
226
361
272
153
320

60
SI
36

Other
1/
40
250
145
64
30
55
88
30
20
194
25

Large Individual Issues Offered October 1 through November. 2

Type 3/

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

Rating

CORPORATE
*San Diego Elec. & Gas Co.
Panhandle Eastern Pipe
Line Co.

Com. stk.

15.5

60.0 1982
Deb.
20.0
Pfd. stk.
Sen. deb.
Associates Investment Co.
50.0
1983
21.04/ 1987
Packaging Corp. of America
S.F. deb.
250.0
1996
Deb.
American Tel. & Tel. Co.
lst&ref. mtg. bds.17.62/ 1987
Southern Cal. Edison Co.
Columbia Gas System
Deb.
30.0
1987

4-3/8

4.42

4-1/2
4-3/8
4-3/8
4-1/2
4-3/8

4.45
4.45
4.30
4.23
4.35

A
Aaa
Aa
A

STATE AND LOCAL GOVERNMENT
De Kalb Co., Georgia
Los Angeles Co. Flood
Control Dist., Calif.
Port of New York Auth.
State of Louisiana
Hampton Roads San. Dist.,
Virginia
Commonwealth of Mass.
New York City Transit Auth.

14.0

1964-91

3.13

1.80-3.35

G.O.
Rev.-Ut.
Rev.-S.T.

10.0
25.0
20.0

1964-89
1993
1965-87

2.98
3.46
3.49 .

1.65-3.25
3.42
2.10-3.65

Aa
A
Baa

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

10.0
25.6
50.9

1963-2002
1963-2012
1965-87

3.35
2.88
3.16

1.60-3.50
1.50-3.50
2.00-3.30

A
Aa
A

G.O.




K-2

H.14

Large Individual Issues Offered October 1 though November 2

Issuer

Type 3/

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

Rating

STATE AND LOCAL GOVERNMENT
(CONT'D)
Chicago Park Dist., 111.
New York City x New York
New York State Dormitory
Authority

Rev.-Q.Ut.
G.O.

11.3
107.9

1964-84
1963-92

3.33
2.82

1.75-3.50
1.50-3.40

45.0

1965-94

3.21

6/
2.00-3.602'

OTHER

Commonwealth of Australia

1982

5-1/2

*--Rights offering.
\J Includes corporate and other security offerings of $15 million and over;
State and local government 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 lease payments.
4/ An additional $4 million was sold to refund outstanding securities.
5/ An additional $32.4 million was sold to refund outstanding securities.
6/ 0.1 per cent bonds due 1994 reoffered to yield 4.50 per cent.




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

Date of
computation

During month following
date shown
State and
Corporate
Other 2/
local govt.
346
356
161
480
222
628
185
587
120
302
170
363
203

1961 - Oct. 31
Nov. 30
Dec. 29
1962 - Jan. 31
Feb. 28
Mar. 30
Apr. 30
May :
31
June 29
July 31
Aug. 31
Sept . 28
Oct. 31

597
295
223
465
153
453
333
184
202
273
61
187
96

64

95
55
"
175

Subsequent to
date shown
State and
Corporate
local govt.
411
421
591
525
341
693
598
692
458
477
312
546
328

693
498
415
567
239
539
452
337
377
427
215
387
243

Other 2/

,
64

95
55
25
. 175

Forthcoming Large Offerings, as of November 2

Type

Issuer

Georgia Power Co.
Household Finance Corp.
Louisville and Nashville R.R., Co.
Pacific Gas & Electric Co.
Tennessee Gas Trans. Co.
Commerce Oil Refining Corp.
Columbia Bancorporation
STATE AND LOCAL GOVERNMENT
Cincinnati, Ohio
East Bay Mun. Util. Dist., Cal.
Houston, Texas
Philadelphia, Pa.
Oklahoma City Mun. Impr. Auth.
State of Rhode Island
Pittsburgh, Pa.
Jefferson County, Colorado
Dade County, Florida
Jacksonville Expressway Auth., Fla.




Amount
(millions
of dollars)

1st mtg. bds.
Deb.
Coll. tr.
1st & ref. mtg. bds.
1st mtg. bds.
Deb.; bds
Conv. sub . deb.

Approximate date
of offering

23 .0
60 .0
25 .0
65 .0
50,.0
45,.0
30,.0

Nov. 8
Nov. 14
Nov. 15
Nov. 28
Indefinite
Indefinite
Indefinite

12. 3
33.,0
14.0
26.,6
10. 0
13.,'5
35. 0
12. 9
46. 0
40. 0

Nov. 7
Nov. 14.
- Nov. 14
Nov. 15
Nov. 27
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

G.O.
G.O.
Rev.^Ut.
G.O.
Rev.
G.O. G.O.
G.O.
G.O.
Rev.-Ut.

ft
L-2

H. 14

Forthcoming Large Offerings, as of November 2 (Cont'd)

Issuer

Type

Amount
(millions
of dollars)

Approximate date
of offering

OTHER
None,
^--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.
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.