Full text of H.16 Capital Market Developments : October 29, 1962
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Not f o r P u b l i c a t i o n jgcOSTROLLED AFTER SIX MOUTHS
H.14
October 29, 1962.
LIBRARY
OCT
31
1962
'
CAPITAL TtfiirrriT-rnTT nrrTTTTTi
IN. THE UNITED STATES
FEDERAL RESERVE BANS
The volume of p u b l i c s e c u r i t y f i n a n c i n g t o o b t a i n new c a p i t a l
,
a r g e l a s t week, b u t i s e x p e c t e d t o be r e l a t i v e l y l i g h t t h i s
week. During t h e week ending October 26, two l a r g e c o r p o r a t e i s s u e s ,
i n c l u d i n g t h e $250 m i l l i o n American Telephone and T e l e g r a p h Company
d e b e n t u r e i s s u e , t o t a l i n g $271 m i l l i o n . w e r e o f f e r e d and two S t a t e and
l o c a l government i s s u e s w i t h p a r v a l u e of $119 m i l l i o n were s o l d . T h i s
week, e n d i n g November 2 , two c o r p o r a t e i s s u e s f o r $48 m i l l i o n of new
c a p i t a l a r e e x p e c t e d and two S t a t e and l o c a l i s s u e s amounting t o $49
m i l l i o n a r e on t h e c a l e n d a r .
Bond y i e l d s . Changes i n y i e l d s on s e a s o n e d , l o n g - t e r m bonds
were mixed l a s t week. Y i e l d s on A a a - r a t e d S t a t e and l o c a l government
bonds dropped a n o t h e r b a s i s p o i n t t o 2 . 8 8 p e r c e n t , t h e i r l o w e s t l e v e l
s i n c e J u l y 1958; B a a - r a t e d m u n i c i p a l y i e l d s a l s o d e c l i n e d an a d d i t i o n a l
b a s i s p o i n t b u t were s t i l l 6 b a s i s p o i n t s above t h e i r May 1962 low.
U. S . Government bond y i e l d s i n c r e a s e d one b a s i s p o i n t , w h i l e y i e l d s
on b o t h Aaa- and B a a - r a t e d c o r p o r a t e bonds were s t a b l e a t t h e i r lows
f o r the year.
Y i e l d s on newly o f f e r e d c o r p o r a t e b o n d s , a d j u s t e d t o an Aaa
b a s i s , averaged 4 . 2 8 p e r c e n t l a s t week, 12 b a s i s p o i n t s above t h e
a v e r a g e f o r t h e week ending October 5 , t h e most r e c e n t week i n which
a p p r o p r i a t e bonds were o f f e r e d . Most of t h i s i n c r e a s e i n a v e r a g e y i e l d ,
however, p r o b a b l y r e f l e c t e d t h e l a r g e s i z e of t h e AT&T o f f e r i n g and
t h e f a c t t h i s i s s u e was s o l d on a day of extreme u n c e r t a i n t y c o n c e r n i n g
i n t e r n a t i o n a l developments.
S h o r t - and i n t e r m e d i a t e - t e r m i n t e r e s t r a t e s . Changes i n y i e l d s / ^
on T r e a s u r y b i l l s and 3 - 5 y e a r U. S . Government o b l i g a t i o n s were a l s o
mixed l a s t week. R a t e s on 6-month b i l l s f e l l a s i n g l e b a s i s p o i n t ,
w h i l e t h o s e on 3-month b i l l s were s t a b l e ; y i e l d s on i n t e r m e d i a t e - t e r m
U. S. Government o b l i g a t i o n s , however, r o s e 2 b a s i s p o i n t s . The a v e r a g e
r a t e of i n t e r e s t on F e d e r a l f u n d s d e c l i n e d 7 b a s i s p o i n t s t o 2 . 8 8
p e r c e n t . Other s h o r t - and i n t e r n e d i a t e - t e r m i n t e r e s t r a t e s were unchanged.
Recent changes i n y i e l d s on m u n i c i p a l bonds of d i f f e r e n t
m a t u r i t i e s . The s a l e of a l a r g e s e r i a l bond i s s u e by t h e C i t y of New York
l a s t week p r e s e n t e d an o p p o r t u n i t y t o compare r e c e n t changes i n y i e l d s
on m u n i c i p a l bonds of d i f f e r e n t terms t o m a t u r i t y w h i l e m a i n t a i n i n g ( q u a l i t y
and o t h e r c h a r a c t e r i s t i c s c o n s t a n t s i n c e New York a l s o s o l d bonds i n l a t e
J u l y when m u n i c i p a l y i e l d s were n e a r t h e i r most r e c e n t p e a k . S i n c e t h a t
time S t a t e and l o c a l government bond y i e l d s have f a l l e n s h a r p l y and m a r k e t
comment h a s i n d i c a t e d t h a t t h i s d e c l i n e i n y i e l d s had a f f e c t e d v i r t u a l l y
a l l m a t u r i t i e s . These comments tend t o be s u b s t a n t i a t e d by t h e f o l l o w i n g
comparison of r e o f f e r i n g y i e l d s on bonds of d i f f e r e n t term f o r t h e two
most r e c e n t New York C i t y i s s u e s , b o t h r a t e d A.
Bonds Maturing I n :
1
2
3
4
5
10
15
20
25
30
year
years
years
years
years
years
years
years
years
years
J u l y 24 I s s u e
Oct. 24 I s s u e
(Per c e n t )
1.75
2.00
2.20
2.35
2.50
3.00
3.25
3.50
3.60
3.70
1.50
1.75
2.00
2.10
2.20
2.75
3.00
3.20
3.35
3.40
Changes i n Y i e l d s
(basis points)
-25
-25
-20
-25
-30
-25
-25
-30
-25
-30
FNMA secondary market o p e r a t i o n s . P u r c h a s e s of mortgages by t h e
F e d e r a l N a t i o n a l Mortgage A s s o c i a t i o n i n t h e secondary market moved downward a g a i n i n September. T h i s f o l l o w e d a moderate i n c r e a s e i n August a f t e r
e i g h t m o n t h s ' d e c l i n e . The l e v e l of $25.0 m i l l i o n was s t i l l m o d e r a t e l y
above t h e low of l a s t J u l y , however. O f f e r i n g s a l s o s h i f t e d down a g a i n
i n September and, l i k e p u r c h a s e s , remained w e l l below y e a r - e a r l i e r l e v e l s .
S a l e s by FNMA edged h i g h e r a f t e r a f u r t h e r , s h a r p drop i n August, b u t —
a t $ 8 . 4 m i l l i o n - - t h e y c o n t i n u e d below p u r c h a s e s .
Stock p r i c e s . Common s t o c k p r i c e s moved lower on b a l a n c e l a s t
week i n a c t i v e t r a d i n g , a s p r i c e s f l u c t u a t e d w i d e l y i n r e s p o n s e t o t h e
changing i n t e r n a t i o n a l s i t u a t i o n . P r i c e s , a s measured by S t a n d a r d and
P o o r ' s composite i n d e x of 500 s t o c k s , f e l l almost 2 p e r c e n t over t h e
week, c l o s i n g a t 5 4 . 5 4 on October 26. T r a d i n g volume averaged 5 . 0 m i l l i o n
s h a r e s a day, 1 . 7 m i l l i o n above t h e a v e r a g e f o r t h e p r e v i o u s week.
More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g r e c e n t c a p i t a l market
developments i s p r e s e n t e d i n t h e a t t a c h e d e x h i b i t s .
C a p i t a l Markets S e c t i o n ,
D i v i s i o n of Research and S t a t i s t i c s ,
Board of Governors of t h e F e d e r a l Reserve System.
EXHIBIT A, fori I
L O N G - T E R M B O N O YIELDS, H I G H - G R A D E
W..kly
Exhibit A - Part II
Corporate
Aaa 1/
U. S. Govt,
long-term 2/
State and
local
government
3/
(per cent)
1957 - High
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - High
Low
S e p t . 28
Oct. 5
O c t . 12
O c t . 19
JOct, 26 j>/
lt.Ht (9/27)
3.55 (5/2)
It. 6 1 (3/29/60)
it. 2 1 (3/17/61
U.l*6 (9/15)
4.43 (2/16)
4.27 (10/26)
3.76
3.07
It. 1*2
3.70
U.07
4.12
3.85
4.31
4.29
4.28
4.27
4.27/
3.93
3.90
3.90
3.88
3.89
Note: For footnotes see Exhibit B.
(10/08)
(4/25)
(1/8/60)
(5/12/61)
(12/29)
(2/23)
(5/11)
Spread between
U. S. Govt, and
Corporate State and
Aaa
local Aaa
3.1+5 (8/29)
2.6k (5/1)
3 . 6 5 (9/24/59)
2 . 9 9 (9/1/60)
3.37 (7/6)
3.26 (1/4)
2.88 (10/26)
.60
.22
.59
.19
.57
.47
.29
1.08
.80
3.00
3.00
2.99
2.89
2.88
.38
.39
.38
.39
.38
.93
.90
.91
.50
.3U
.92
.1*6
.76
.99
1.01
E X H I B I T B, P a r t I
LONG-TERM
BOND
YIELDS, LOWER-GRADE
w . . Hy
COBPOIATE I
STATI AND 10CAI GOVERNMENT »•
fl»57
S19SB
I960,
'1959
1961
Exhibit B - Part I I
Date
Coxporate
Baa 1 /
S t a t e and
local govt.
Baa 3 /
Spread between
Aaa and Baa
S t a t e and
Coxporate
local govt.
(per cent)
1957 - High
1958 - Low
1 9 5 9 - 6 0 - High
1 9 6 0 - 6 1 Low
1961 - High
1962 - High
Low
5-10
iwSL
5.36
It. 98
5.13
5.11
4.98
(11/29)
(7/11)
(2/12/60)
(9/9/60)
(10/27)
(1/5)
(10/26)
S e p t . 28
Oct. 5
O c t . 12
O c t . 19
. O c t . 26 2 /
5.02
5.00
4.99
4.98 >
4.98 /
L51
3.61
h.k6
3.93
1.16
4.04
3.52
3.65
3.65
3.65
3.59
3.58
(8/29)
(5/1)
(1/7/60)
(11/9/6I)
(3/23)
(1/11)
(5/17)
1.27
.77
.81
.66
.81
.74
.63
1.21
.93
1.08
.57
.93
.82
.56
.71
.71
.71
.71
.71
.65
.65
.66
.70
.70
p7Preliminary.
l / Weekly average of daily f i g u r e s . Average term of bonds included in 23-26 years.
2 / Weekly average of d a i l y f i g u r e s . The s e r i e s includes bonds due or callable in 10 years or more.
3 / Thursday f i g u r e s . Only general obligation bonds are included; average term i s 20 years.
Note.—-Highs and lows are f o r individual s e r i e s and may be on d i f f e r e n t dates f o r d i f f e r e n t
Digitized
forseries*
FRASER
For spreads, high r e f e r s t o widest, and low to narrowest.
EXHIBIT C, Port I
SHORT-
AND
INTERMEDIATE-
TERM INTEREST
RATES, G O V E R N M E N T
6 - MONTH BIUS
3 - $ TUI ISSUES
I. DISCOUNT IATI
J ; MONTH UllS
Worker
Yield
I I I I I I I I I I II I I I I I I I I I
195?
Exhibit C - Part I I
Bate
1957 - High
1958 - Low
1959-60 - H
1960-61 Low
1961 - High
1962 - High
Low
S e p t . 28
Oct. 5
. O c t . 12
Oct. 19
Oct. 26 2 J
Discount
rate
1/
3-month
b i l l s 2/
3.50
1.75
Loo
3.00
3.00
3.00
3.00
3.61
.58
it. 59
2.11
2.66
2.97
2.65
(10/18)
(5/29)
(1/8/60)
(10/28/60)
(12/29)
(7/13)
(6/8)
3.00
3.00
3.00
3.00
3.00
2.75
2.75
2.76
2.74 /
2.74 /
Yields
6-month
b i l l s 2/
(per cent)
3-5 year
issues 2/
3.02
5.07
2.35
2.90
3.13
2.74
lt.OU (10/18)
2.14(6/6)
5 . 0 0 (12/24/59)
3.15 (5/12/61)
3.86(8/11)
3.88 (2/2)
3.43 (4/6)
.24
.06
.86
.Oil
1.81
.38
1.51
1.19
.69
3.51
3.44
3.46
3.46
3.48
.15
.14
.10
.10
.09
.76
.69
.70
.72
.74
2.90
2.89
2.86
2.84
2.83
(12/26)
(1/8/60)
(4/28/61)
(12/29)
(7/20)
(6/8)
Spread between y i e l d s on 3 month b i l l s and y i e l d s on
6-mo. b i l l s 1 3 - 5 y r . i s s u e s
.26
.79
.12
2/ Market yield) weekly averages computed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
Note.—Highs and lows are f o r individual series and may be on d i f f e r e n t dates f o r d i f f e r e n t series.
For spreads, high refers to widest, and low to narrowest.
SHORT- AND
BANKS AND
I N T E R M E D I A T E - T E R M INTEREST RATES,
OTHER
PRIVATE BORROWERS
—/I
I I I 1.11.1,1.1. LI.1_1J_LLI.L1.LI.
E x h i b i t jD - P a r t
Date
Stock Exchange
call loan 1 /
Prime
rate 1/
II
F i n a n c e company
paper 2/
Federal .
funds 3/
Spread between
3-mo. b i l l s and
f i n a n c e Co. p a o e r
(per cent)
1957 - High
1 9 5 8 - Low
1959-60 - High
1 9 6 0 - 6 1 Low
1961 - High
1962 - High
Low
1|.50
3.50
5.50
I*. 5 0
K.5O
4.50
4.50
S e p t . 28
O c t . .5
O c t . 12
O c t . 19
O c t . 26 £ /
4.50
4.50
4.50
4.50
4.50
.
it. 50
3 . 8 8 (11/15)
3.50
5.00
L50
14.50
4.50
4.50
1 . 1 3 (8/8)
4.50
4.50
4.50
4.50
4.50
3.13
3.20
3.02
3.00
3.00
5 . 1 3 (1/22/60)
2 . 5 0 (8/5/61)
3 . 0 0 (12/29)
3.25
2.88
(7/20)
(6/1)
3 . 5 0 (11/8)
.13(5/29)
4 . 0 0 (5/13/60)
.1*3 ( 1 / 2 7 / 6 1 )
2 . 8 8 (12/29)
3.00
1.30
2.85
2.95
2.75
2.95
2.88
(9/14)
(1/26)
.63
-.35
1.02
.11
.56
.45
.19
.38
.45
.26
.26
.26
Weekly r a t e shown i s t h a t i n e f f e c t a t end of p e r i o d . Stock Exchange c a l l loan r a t e i s going r a t e
on c a l l l o a n s secured by customers' s t o c k exchange c o l l a t e r a l a t New York C i t y banks. Prime r a t e
i a t h a t charged by l a r g e banks on s h o r t - t e r m l o a n s to b u s i n e s s borrowers of the h i g h e s t c r e d i t
standing,
2 / Average o f d a i l y r a t e s p u b l i s h e d by f i n a n c e companies f o r d i r e c t l y placed paper f o r varying m a t u r i t i e s
i n t h e 9 0 - 1 7 9 day range.
3/
Weekly ave rage of d a i l y e f f e c t i v e r a t e , -which i s the rate f o r the h e a v i e s t volume of purchase and
a a l e t r a n s a c t i o n s as reported t o the F e d e r a l Reserve Bank of New York,
N o t e . — H i g h s and Iowa 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 .
For 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 low t o narrowest.
STOCK
MARKET
M.CLS
/
•'
CK MAiKlT £«I0
^
V *
Ofv CHANOE IN SERIES
kwyittDs
TTsT
19 s a
"TTST
.19*0
1961
Exhibit E - Part II
Stock p r i c e
index 1/
1 9 6 0 - 6 1 - High
Low
1962 - High
Low
August
September
O c t . 12
O c t . 19
O c t . 2 6 2.1
Y
72.04
53.32
70.94
52.68
(12/8/61)
(10/21/60)
(3/16)
(6/22)
58.52
58.00
56.95
55.59
54.54
Common
stock
volume 3 /
yields 2/
(millions
( p e r c e n t ) of s h a r e s )
Stock market customer c r e d i t
Customers1
Bank
loans to
Total debit balances h /
"others" 5/
( I n m i l l i o n s of d o l l a r s )
2.82
3.62
2.93
3.96
5.8
2.2
10.1
2.4
5,602
it,11*2
5,491
-4,876
(12/61)^,259
(5/60) 3 , 0 0 ^
(4)
4,111
(7)
3,562
3.57
3.60
3.68
3.76
3.84
3.4
3.3
2.4
3.3
5.0
5,073
5,155
3,773
3,886
(12/61)
(7/60)
(1)
(7)
1,377
1,121
1,418
1,269
(8/30/61)
(5/25/60)
(5/9)
(9/26)
1,300
1,288
1,272
1,285
.—Not available*
jyPreliminary.
Standard and Poor's composite index of 500 common s t o c k s , weekly olosing p r i c e s , 1941-43•10.
Monthly data are averages of d a i l y f i g u r e s rather than of Friday's only. Highs and lows are f o r
Friday's data only.
Standard and Poor's composite stock y i e l d based on Wednesday data converted to weekly c l o s i n g .
p r i c e s by Federal Reserve. Yields shown are f o r dates on which price index reached i t s high
Averages of d a i l y trading volume on the New York Stgok Exchange.
End of month f i g u r e s f o r member firms of the New York Stock Exchange which carry margin accounts*
excludes balances secured by U. S. Government o b l i g a t i o n s .
Wednesday f i g u r e s f o r weekly reporting member banks. Excludes loans f o r purchasing or carrying
V. S. Government s e c u r i t i e s . P r i o r t o July 1, 1959, such loans are excluded only a t banks i n
New York and Chicago. Weekly reporting banks account f o r about 7,0 pgr cent of loans t o others,
f o r f u r t h e r d e t a i l see B u l l e t i n .
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 V
S E C O N D A R Y MARKET O P E R A T I O N S
Of FIRINGS
h
>
iL
vn
r )h .
!'
•a i
I
/
V
J PUICH
LA'j
r
.~.F
ITi*
r
Exhibit F - Part I I
Date
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Estimated o f f e r i n g s to FNMA.
Immediate 1 Standby
Total
purchase |commitment
122.9
154.2
141.4
120.0
118.3
82.5
68.6
51.1
40.3
33.0
29.0
40.8
35.9
'
119.3
150.9
138.5
117.7
116.6
80.8
66.3
50.0
38.8
31.7
27.9
39.9
35.2
3.6
3.3
2.9
2.3
1.7
1.7
2.3
1.1
1.5
1.3
1.1
1.0
1.0
Purchases
by
FNMA.
60.4
92.4
112.3
107.2
104.7
89.0
81.6
51.5
42.0
29.0
21.9
29.6
25.0
Sales
by
FNMA
10.5
1.8
2.7
2.4
1.4
7.3
75.9
105.7
64.0
56.3
38.5
6.3
8.4
•—Leas t h a n $50,000,
V
Data r e p r e s e n t unpaid p r i n c i p a l b a l a n c e s of t h e mortgages i n v o l v e d , e x c l u s i v e of
"premiums, d i s c o u n t s , o r o t h e r c h a r g e s . O f f e r i n g s a r e amounts of a p p l i c a t i o n s r e c e i v e d
during the p e r i o d from s e l l e r s proposing t h a t FNMA e x e c u t e purchasing c o n t r a c t s . An
. immediate purchase c o n t r a c t c o v e r s e x i s t i n g mortgages which the s e l l e r must d e l i v e r t o
FNMA. w i t h i n 45 days, A standby oonmitment c o n t r a c t r e l a t e s t o proposed mortgages on
housing not y e t under c o n s t r u c t i o n which the s e l l e r must u s u a l l y d e l i v e r w i t h i n one
y e a r . Purchases i n c l u d e t h o s e under both immediate purchases and s t a n d b y commitment
c o n t r a c t s . Data e x c l u d e FNMA a c t i v i t y under S p e c i a l A s s i s t a n c e and Management and
L i q u i d a t i n g Programs,
Y i e l d s on New C o r p o r a t e B o n d . I s s u e s A d j u s t e d t o an Aaa B a s i s
Number
of i s s u e s
included
Monthly a v e r a g e s :
1 L962 - J a n u a r y
*
February
j
March
April
1
]
May
i
4
1
j
|
July
August
September
October
November
December
Amount
of i s s u e s Average
yield
included
(per
(millions
of d o l l a r s ) c e n t )
4
5
6
7
7
12
6
11
3
130.0
394.5
240.0
299.0
148.0
368.0
141.0
379.3
66.9
4.45
4.50
4.23
4.17
4.09
4.15
4.33
4.30
4.13
1
60.0
4.50
1
i
j Weekly a v e r a g e s :
2 1962 - J a n u a r y 5
12
19
;
26
February 2
'?
9
f
16
23
March 2
9
16
23
30
April 6
13
20
27
May 4
11
18
25
June 1
8
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
4.40
4.52*
4.50
4.37
4.29
4.23
4.21
4.22
4.21
4.12
4.17*
4.40
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*
Amountof i s s u e s
included
(millions
of d o l l a r s )
Average
yield
(per
cent)
4
3
1
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
I
1
4.9
75.0
2
275.0
Number
of i s s u e s
included
June 15
22
29
July 6
13
20
27
August 3
10
17
24
31
September 7
14
21
28
October 5
12
19
26
November 2
9
16
23
30
December 7
14
21
28
--
.
--
- -
-- '
--
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*
; N o t e : Averages of o f f e r i n g y i e l d s on a l l new id sues of pub i c l y s o l d bonds r a t e d Aaa, Aa
and A by Moody's I n v e s t o r s S e r v i c e ( e x c e p t s e r i a l , equipment t r u s t and c o n v e r t i b l e i s s u e s ,
o f f e r i n g s of n a t u r a l gas p i p e l i n e s and f o r e i g n companies, and i s s u e s g u a r a n t e e d by t h e
F e d e r a l Government) w e i g h t e d by s i z e of i s s u e s . Y i e l d s on Aa- and A - r a t e d bonds a r e
f i r s t a d j u s t e d t o an Aaa b a s i s , u s i n g t h e comparable s p r e a d s i n y i e l d s on seasoned bonds
(Moody's a v e r a g e s ) . Averages r e f l e c t changes i n i n d u s t r i a l c o m p o s i t i o n , t y p e , m a t u r i t y ,
and c a l l p r o v i s i o n s of new o f f e r i n g s . Weekly a v e r a g e s c o n s i d e r e d u n u s u a l l y u n r e l i a b l e
as i n d i c a t o r s of i n t e r e s t r a t e s on new i s s u e s b e c a u s e of t h e s m a l l number o r s p e c i a l
c h a r a c t e r i s t i c s of o f f e r i n g s i n c l u d e d e t c . a r e marked w i t h an a s t e r i s k . S o u r c e :
weekly d a t a , F e d e r a l R e s e r v e ; monthly d a t a , F i r s t N a t i o n a l C i t y Bank of New York.
H. 14
Exhibit H
Long-t erm C o r p o r a t e and S t a t e and Local Government
S e c u r i t y O f f e r i n g s and P l a c e m e n t s
( I n m i l l i o n s of d o l l a r s )
New c a p i t a l
C o r p o r a t e 1/
J
1961
8
1960
592
859
807
580
667
562
570
715
860
April
May
June
1,113
760
1,132
2,118
1,259
1,318
761
577
1,044
July
August
September
2/590
E./734
e/625
1,028
762
647
October
November
December
e/850
1962
January
February
March
1st
-2nd
3rd
4th
quarter
quarter
quarter
quarter
1st half
Three q u a r t e r s
Year -_
1962
S t a t e and l o c a l 2 /
1961
| 1960
|
£ / 876
E/1,132
2/629
713
689
764
700
611
568
2/864
2/807
e/700
723
641
1 ,034
719
545
991
736
967
726
e/600
e/575
e/400
485
604
734
492
606
683
1,090
948
' 1,000
890
956
852
e/550
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
2/2,636
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
.
|
E x c l u d i n g f i n a n c e companies 2 /
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
e f E s t i m a t e d by F e d e r a l R e s e r v e . £ /
Preliminary,
1 / S e c u r i t i e s and Exchange Commission e s t i m a t e s of n e t p r o c e e d s .
2/
I n v e s t m e n t B a n k e r s A s s o c i a t i o n of America e s t i m a t e s of p r i n c i p a l a m o u n t s .
V
T o t a l new c a p i t a l i s s u e s e x c l u d i n g o f f e r i n g s of s a l e s and consumer f i n a n c e
companies.
II
Exhibit I
New C o r p o r a t e S e c u r i t y I s s u e s , Type of I s s u e and I s s u e r
( I n m i l l i o n s of d o l l a r s )
Gross p r o c e e d s f o r new
c a p i t a l and r e f u n d i n g 1/
Common
Quarter
Total Publicly P r i v a t e l y
pfd.
offered offered
stock
^1962
Net p r o c e e d s f o r
new c a p i t a l 1 / 2 /
Memo:
foreign
Mfg.
P u b l i c Communiu t i l i t y cations
Other
issuers
included
• 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
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
I
II
I I I £/
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
253
368
211
297
289
467
315
279
209
487
291
485
273
497
386
654
247
488
200
477
170
232
232
253
227
420
575
352
348
325
{1961 - J a n .
Feb.
Mar.
*-•
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1962 - J a n .
Feb.
Mar.
Apr.
May
647
884
847
1,217
801
1,232
616
July £/
907
Aug. £ /
Sept. e/
650
Oct.
Nov.
Dec.
143
155
209
336 .
134
169
65
83
155
3
12
54
10
147
100
20
46 /
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
1,059
913 .
896
997
225
218
275
264
229
301
168
295
235
;j>/ P r e l i m i n a r y .
e / E s t i m a t e d by F e d e r a l R e s e r v e .
1/ Gross p r o c e e d s exceed
n e t p r o c e e d s by t h e c o s t of f l o t a t i o n .
2/ For t o t a l s e e E x h i b i t H; o t h e r i s s u e r s
a r e e x t r a c t i v e , r a i l r o a d and o t h e r t r a n s p o r t a t i o n , r e a l e s t a t e and f i n a n c e and
commercial and o t h e r . S o u r c e . - - S e c u r i t i e s and Exchange Commission.
H.14
Exhibit J
Other S e c u r i t y O f f e r i n g s
( I n m i l l i o n s of d o l l a r s )
Gross l o n g - t e r m 1/
F o r e i g n government 2/
F e d e r a l agency 3/
1962
1961
1960
1962
1 1961
1
January
February
March
April
May
July
August
September
October
November
December
Jan.-Sept.
142
10
35
10
86
50
£/25
£/8
e/20
6
29
20
2
66
29
5
2
43
34
--
e/386
2
175
70
34
72
40
25
1
36
34
2
41
236
533
159
455
246
156
461
- -
1960
182
150
150
148
354
252
100
149
278
——
--
150
e/175
- -
250
193
199
--
160
149
181
1,448
1,672
1,222
1,183
225
!
eA,188
Net s h o r t - t e r m 4/
S t a t e and l o c a l :government 5/
F e d e r a l agency 3/
J anuary
February
March
April
May
18
466
-186
127
-84
-118
78
339
]>/ -407
160
195
-8
-103
-42
-155
109
518
-86
-6
54
-116
520
18
Jan^-Sept.
2/233
588
173
j>/
e/
July
August
September
October
November
December
Year
If
2:/
3/
4/
5/
Preliminary.
58
140
-80
70
-146
-157
48
415
-175
-16
50
-189
Estimated by Federal Reserve,
247
-156
226
-364
82
284
261
227
-157
-144
-162
-174
-79
-87
207
22
193
108
98
56
-114
-76
-633
650
-116
-327
.
-196
-202
-59
-277
170
320
95
23
-201
-23
-33
-250
n.a.--Not available.
These d a t a d i f f e r from t h o s e i n E x h i b i t H i n t h a t r e f u n d i n g i s s u e s , as w e l l as
new c a p i t a l i s s u e s , a r e i n c l u d e d . Long-term s e c u r i t i e s a r e d e f i n e d as t h o s e
m a t u r i n g i n more t h a n one y e a r .
I n c l u d e s s e c u r i t i e s o f f e r e d i n t h e "united S t a t e s by f o r e i g n governments and t h e i r
p o l i t i c a l s u b d i v i s i o n s and i n t e r n a t i o n a l o r g a n i z a t i o n s . Source: S e c u r i t i e s and
Exchange Commission.
I s s u e s n o t g u a r a n t e e d by t h e U. S. Government. Source: l o n g - t e r m , S e c u r i t i e s
and Exchange Commission; s h o r t - t e r m . T r e a s u r y Department and F e d e r a l R e s e r v e .
These d a t a d i f f e r from t h o s e i n E x h i b i t H and above i n t h a t t h e y r e p r e s e n t 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.
P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , w a r r a n t s o r c e r t i f i c a t e s and P u b l i c
DigitizedHousing
for FRASER
A u t h o r i t y n o t e s , In seme i n s t a n c e s FHA nct.es i n c l u d e d may have a somewhat l o n g e r m a t u r i t y than one y e a r . Source: Bond Buyer and F e d e r a l R e s e r v e .
H. 14
Large Long-term P u b l i c S e c u r i t y I s s u e s f o r New C a p i t a l
(Other than U. S. T r e a s u r y ) 1 /
Proceeds of Large I s s u e s O f f e r e d
( I n m i l l i o n s of d o l l a r s )
J
Month
Total
: 1 9 6 1 - September
:
October
*
November
December
1962 - J a n u a r y
February
;
March
J
April
|
May
[
July
August
September
Corporate
Bonds
Convertible
( o t h e r than
convertibles)
168
354
391
255
195
425
366
648
200
472
165
286
191
78
205
320
125
170
425
330
430
170
387
135
226
100
Stocks
33
67
26
State
and
local
government
58
81
45
130
25
- -
21 ,
167
30
85
30
- - -
73
40
250
435
326
480
307
561
662
259
423
373
226
361
272
153
- -
15
51
Other
2/
60
91
145
64
30
55
88
30
20
194
Large I n d i v i d u a l I s s u e s O f f e r e d October 1 through 26
Type 3/
*
Coupon
Amount
(millions
Offering
Maturity
of
net inter- yield
dollars)
Rating
CORPORATE
'ic1*San Diego E l e c . & Gas Co.
| Panhandle E a s t e r n P i p e
Line Co.
- A s s o c i a t e s I n v e s t m e n t Co.
S Packaging Corp. of America
" American T e l . & T e l . Co.
Com. s t k .
15.5
Deb.
Pfd. stk.
Sen. d e b .
S.F. deb.
Deb.
60.0
20.0
50.0
21.0^/
250.0
1982
4-3/8
4.42
1983
1987
1996
4-1/2
4-3/8
4-3/8
4.45
4.45
4.30
A
. STATE AND LOCAL GOVERNMENT
De Kalb C o . , Georgia
Los Angeles Co. Flood
Control D i s t . , C a l i f ,
P o r t of New York Auth.
S t a t e of L o u i s i a n a
Hampton Roads San. D i s t . ,
Virginia
Commonwealth of Mass.
New York C i t y T r a n s i t Auth.
G.O.
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
H.14
Issuer
Type 3 /
Coupon
Amount
Offering
(millions
M
a
t
u
r
i
t
y
net i n t e r - yield
of
dollars)
Rating
J
'
STATE AND LOCAL GOVERNMENT
(CONT'D)
Chicago P a r k D i s t . , 111.
New York C i t y , New York
Rev.-Q.Ut.
G.O.
11.3
107.9
1964-84
1963-92
3.33
2.82
25.0
1982
5-1/2
1.75-3.50
1.50-3.40
—
A
OTHER
Commonwealth of A u s t r a l i a
Bonds
5.58
*--Rights offering.
1/ I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and o v e r ;
S t a t e and l o c a l government o f f e r i n g s of $10 m i l l i o n and o v e r .
If
I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and
Development i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e r a l a g e n c i e s .
I n t h e c a s e of S t a t e and l o c a l government s e c u r i t i e s , G.O. d e n o t e s g e n e r a l
o b l i g a t i o n s ; R e v . - U t . , revenue o b l i g a t i o n s s e c u r e d only by income from
p u b l i c u t i l i t i e s ; R e v . - Q . U t . , revenue bonds s e c u r e d only by revenue from
q u a s i - u t i l i t i e s ; R e v . - S . T . , revenue bonds s e c u r e d by revenue from s p e c i f i c
t a x e s o n l y ; R e v , - R e n t . , revenue bonds s e c u r e d s o l e l y by l e a s e payments.
4/ An a d d i t i o n a l $4 m i l l i o n was s o l d t o r e f u n d o u t s t a n d i n g s e c u r i t i e s .
A
H.
£
Forthcoming Large Long-term P u b l i c S e c u r i t y O f f e r i n g s f o r New C a p i t a l
(Other t h a n U. S. T r e a s u r y ) 17
Expected Proceeds from Forthcoming Large I s s u e s
computation
1
During month f o l l o w i n g
d a t e shown
S t a t e and
Corporate
Other 2/
local govt.
1961 - S e p t . 29
Oct. 31
Nov o 30
Dec. 29
1962 - J a n . 31
Feb. 28
Mar. 30
Apr. 30
May 31
J u n e 29
J u l y 31
Aug. 31
S e p t . 28
358
346
356
161
480
222
628
185 '
587
120
302
170
363
251
597
295
223
465
153
453
333
184
202
-273
61
187
Subsequent t o
d a t e shown
I S t a t e and
Corporate
[local govt.
35
504
411
421
591
525
341
693
598
692
458
477
312
546
64
95
55
——
175
- -
454
693
498
415
567
239
539
452
337
377
427
215
387
Other 2 /
35
64
95
55
25
- -
175
- -
_L
Forthcoming Large O f f e r i n g s , as of October 26
Type
S o u t h e r n C a l i f . Edison Co.
Columbia Gas System
Tennessee Gas T r a n s . Co.
Georgia Power Co.
^Household Finance Corp.
L o u i s v i l l e and N a s h v i l l e R . R . , Co.
P a c i f i c Gas & E l e c t r i c Co.
Commerce Oil R e f i n i n g Corp.
Columbia B a n c o r p o r a t i o n
Amount
(millions
of d o l l a r s )
1 s t & r e f . mtg. b d s .
Deb.
1 s t mtg. b d s .
1 s t mtg. b d s .
Deb.
C o l l . t r . bonds
1 s t & r e f . mtg. b d s .
Deb., b d s . & com.
Conv. sub. d e b .
Approximate d a t e
of o f f e r i n g
17 .6
30 . 0
50 . 0
23 . 0
60 . 0
25 . 0
65 .0
45 .0
30 .0
O c t . 31
Nov. 2
Nov. 7
Nov. 8
Nov. 14
Nov. 15
Nov. 28
Indefinite
.Indefinite
13.,5
45. 0
12. 3
33. 0
14.0
26. 6
10. 0
35. 0
12. 9
46. 0
40. 0
O c t . 29
O c t . 31
Nov. 7
Nov. 14
Nov. 14
Nov. 15
Nov. 27
Indefinite
Indefinite
Indefinite
Indefinite
STATE AND LOCAL GOVERNMENT
S t a t e of Rhode I s l a n d
New York S t a t e Dormitory Auth.
C i n c i n n a t i , Ohio
E a s t Bay Mun. U t i l . D i s t . , Cal
Houston, Texas
P h i l a d e l p h i a , Pa.
Oklahoma C i t y Mun. Impr. Auth.
P i t t s b u r g h , Pa.
J e f f e r s o n County, Colorado
Dade County, F l o r i d a
J a c k s o n v i l l e Expressway A u t h . , F l a .
G.O.
Rev.-Rent.
G.O.
G.O.
Rev.-Ut.
G.O.
Rev.
G.O.
G.O.
G.o;
Rev.-Ut.
L-2
H-. 1.4
Forthcoming Large O f f e r i n g s , as of October 26 ( C o n t ' d )
Issuer
Type
Amount
(millions
of d o l l a r s )
Approximate d a t e
of o f f e r i n g
OTHER
None.
*—Included in t a b l e f o r f i r s t time.
1/ I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of $15 m i l l i o n and o v e r ; S t a t e and l o c a l ~
government i s s u e s of $10 m i l l i o n and o v e r .
2/ I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and
Development i s s u e s and n o n - g u a r a n t e e d i s s u e s of F e d e r a l a g e n c i e s .
N o t e . — D e l e t i o n s f o r r e a s o n s o t h e r t h a n s a l e of i s s u e : None.
@FedFRASER