Full text of H.16 Capital Market Developments : October 3, 1966
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Not f o r P u b l i c a t i o n
H. 14
DECONTROLLED AFTER SIX MONTHS
O c t o b e r 3 , 1966.
""1
CAPITAL MARKETS DEVELOPMENTS
THE UNITED STATES
^ C o r p o r a t e and m u n i c i p a l bond m a r k e t s . New c o r p o r a t e and m u n i c i p a l
s e c u r i t y i s s u e s t h i s week w i l l be r e l a t i v e l y l i g h t . I n c l u d e d i n t h e c o r p o r a t e
volume i s t h e Texas I n s t r u m e n t s $55 m i l l i o n common s t o c k o f f e r i n g t o s h a r e holders.
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 1/
( I n m i l l i o n s of d o l l a r s )
Corporate
New C a p i t a l
| Refunding
S t a t e and l o c a l Government
New C a p i t a l
1 Refunding
Sold:
52 week a v g .
S e p t . 23
S e p t . 30
192
2
206
100
210
257
137
100
144
3
Scheduled:
Oct.
1/ F e d e r a l R e s e r v e e s t i m a t e s a r e b a s e d upon p u b l i s h e d r e p o r t s of i s s u e s s o l d
and s c h e d u l e d f o r o f f e r i n g ; c o r p o r a t e r i g h t s o f f e r i n g s a r e i n c l u d e d a s of t h e
date subscription rights expire.
I n v e s t o r s r e s p o n d e d e n t h u s i a s t i c a l l y t o a l l of t h e c o r p o r a t e d e b t
i s s u e s o f f e r e d l a s t week - - a l l i s s u e s were q u i c k l y s o l d o u t and s u b s e q u e n t l y
r e g i s t e r e d p r i c e g a i n s i n f r e e m a r k e t t r a d i n g . The w e e k ' s l a r g e s t o f f e r i n g ,
t h e $100 m i l l i o n S o u t h e r n B e l l Telephone i s s u e c a r r y i n g a n i n i t i a l y i e l d of
5 . 9 5 p e r c e n t , moved t o a premium e q u i v a l e n t t o a d r o p of more t h a n 10 b a s i s
points in yield.
Y i e l d s on i n v e s t m e n t - g r a d e m u n i c i p a l s d e c l i n e d i n l a s t w e e k ' s s t r o n g
m a r k e t . Good r e c e p t i o n s were a c c o r d e d most new i s s u e s , a s more t h a n t h r e e f o u r t h s of t h e new i s s u e volume was s o l d by weekend.
FNMA s e c o n d a r y m a r k e t o p e r a t i o n s . O f f e r i n g s of e l i g i b l e Governmentu n d e r w r i t t e n m o r t g a g e s from p r i v a t e h o l d e r s f o r p u r c h a s e 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 u n d e r i t s s e c o n d a r y m a r k e t o p e r a t i o n s t u r n e d upward a g a i n
i n A u g u s t , t o $150.7 m i l l i o n . But t h i s was one of t h e l o w e s t l e v e l s s i n c e l a s t
O c t o b e r and compared w i t h a r e c o r d $333.2 m i l l i o n l a s t J a n u a r y when p r i c e s
p a i d by FNMA had s t i l l b e e n a p p r e c i a b l y h i g h e r and mortgage e l i g i b i l i t y
r e s t r i c t i o n s had b e e n , o n b a l a n c e , l e s s s e v e r e t h a n t h e y have become s i n c e
then.
H. 14
-2 -
Yields in S e c u r i t y Markets
L e v e l L a t e s t Week
High-Grade
Notes and Bonds
Corporate
New
Seasoned
5.80
5.47
+11
-2
U.S. Government
Long-term
3-5 year
4.72
5.48
-21
3.88
4.02
-1
-14
4.70
-25
5.39
5.69
-13
-23
S t a t e and l o c a l G o v t .
Moody's Aaa
Std. & Poor's high grade
Money Market
Federal funds
Treasury b i l l s
3-month
6-month
C o r p o r a t e Bonds S t i l l i n S y n d i c a t e
( I n m i l l i o n s of d o l l a r s )
NONE
Blue L i s t of M u n i c i p a l D e a l e r ' s A d v e r t i s e d I n v e n t o r i e s
( I n m i l l i o n s of d o l l a r s )
L a t e s t Date
341 ( 9 / 2 8 )
End of P r e v i o u s Week
367
R e c e n t High
636
(2/17)
H. 14
-3-
While some r e v i v a l i n FNMA's p u r c h a s i n g a c t i v i t y i s i n p r o s p e c t a s
a r e s u l t of e x p a n s i o n of FNMA's p u r c h a s i n g a u t h o r i t y by Congress i n l a t e
A u g u s t , p u r c h a s e s f o r FNMA's s e c o n d a r y m a r k e t p o r t f o l i o d e c l i n e d i n t h a t
month. The t o t a l of $112.5 m i l l i o n was w e l l below t h e p e a k r e a c h e d l a s t
March ( $ 3 0 1 . 4 m i l l i o n ) though s t i l l more t h a n d o u b l e t h e volume a y e a r
e a r l i e r . Then mortgage m a r k e t p r e s s u r e s were j u s t b e g i n n i n g t o a p p e a r and
o f f e r i n g s from p r i v a t e h o l d e r s were o n l y s t a r t i n g t o show a s i g n i f i c a n t
e x p a n s i o n . Allowing f o r p u r c h a s e s by FNMA f o r i t s o t h e r two p o r t f o l i o s - 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 o n - - w h i c h have r i s e n i n
i m p o r t a n c e t h i s y e a r , t h e o v e r - a l l t o t a l i n August was $ 1 8 0 . 5 m i l l i o n ,
compared w i t h j u s t $ 5 4 . 5 m i l l i o n a y e a r e a r l i e r and $ 3 4 4 . 4 m i l l i o n l a s t
March.
I n August, a s i n most o t h e r months t h i s y e a r , s a l e s by FNMA from
a l l t h r e e of i t s p o r t f o l i o s were n i l .
S a v i n g s f l o w s . Net i n f l o w s of i n c o m e - y i e l d i n g c l a i m s a t d e p o s i t a r y t y p e i n s t i t u t i o n s d u r i n g August a g g r e g a t e d $ 1 , 0 3 5 m i l l i o n . . Commercial
banks g a i n e d $718 m i l l i o n i n s a v i n g s and time a c c o u n t s , o r more t h a n 70
p e r c e n t of t h e t o t a l . Mutual s a v i n g s banks e x p e r i e n c e d a n e t i n c r e a s e
of $159 m i l l i o n i n r e g u l a r d e p o s i t s , a d e c r e a s e of 24 p e r c e n t from t h e
y e a r e a r l i e r . S h a r e a c c o u n t s a t s a v i n g s and l o a n a s s o c i a t i o n s grew $158
m i l l i o n during August, l e s s than o n e - t h i r d t h a t r e g i s t e r e d a year ago.
S t o c k p r i c e s . Common s t o c k p r i c e s d e c l i n e d l a s t week i n m o d e r a t e
t r a d i n g . S t a n d a r d and P o o r ' s i n d e x of 500 s t o c k s c l o s e d t h e week a t
7 6 . 5 6 , a drop of 1 . 1 1 p o i n t s from t h e week e a r l i e r . T r a d i n g volume a v e r a g e d
5.7 m i l l i o n shares a day.
C a p i t a l Markets S e c t i o n ,
D i v i s i o n of R e s e a r c h and S t a t i s t i c s ,
Board of G o v e r n o r s x>f the F e d e r a l R e s e r v e System.
SAVINGS FLOWS
Year
or
Month
S a v i n g s & Loan A s s o c . 2/
Mutual S a v i n g s Banks 3 /
Commercial Banks 4 /
Current
Change
Per c e n t C u r r e n t
Change
Per c e n t C u r r e n t
Change Per c e n t
Total (millions)
from
change ( m i l l i o n s )
from
change
change ( m i l l i o n s )
from
p
r
e
v
i
o
u
s
p
r
e
v
i
o
u
s
p
revious
1/
vear
vear
• vear
Unadjusted
1960
61
62
63
64
65
1966 - Apr.
May
June
July
Aug.
14,633r/ 7,559
20,070r/ 8,743
27,901
9,351
29,100
11,072
28,957
10,579
31,953
8,384
952
1,184
608
1,721
-493
-2,195
266
-773
-680
1,997
387
-405
3,025r/
1,185
-418
422r/ - l , 5 0 8 r / - l , 0 7 6 r /
1,035
158
-396
14.4
15.7
7.0
18.4
-4. 5
-20.7
-51.1
-26. 1
- -
-71.5
1,362
1,912
3.038
3,255
4,236
3,582
-341
115
224r/
195
159
412
550
1,126
217
981
-654
.
43.4
40.4
58.9
7.1
30.1
-15.4
5,712r/
9,415r/
15,512
14,773
14,142
19,987
3,787r/
3,703i/
6,097r/
-739
-631
5,845
96.7r/
64.8r/
64.8r/
-4.8
-4.3
41.3
-319
-73
-212r/
-17
-51
-38.8
-48.6r/
-8.0
-24.3
1,380
1,495
1,616
1,735
718
89
208
-85
131
-917
6.9
16.2
-5.0
8.2
-56.1
-297
-70
-218r/
-12
-48
.
-91.7
-29.4
-64.9
-3.8
-18.4
1,226
881
1,299r/
2,188r/
557
70
135
-121r/
185r/
-930
6.1
18.1
-8.5r/
9. 2 r /
-62.5
S e a s o n a l l y Ad j u s t e d
1966 - Apr.
May
June
July
Aug.
1,146
1,325
1,710r/
2,096r/
1,152
-107
-635
276
-413
293
-468
-393r/ - l , 0 1 6 r /
382
-388
-59.9
-61.5
—
-50.4
27
168
118r/
301
213
JL/ Commercial b a n k d a t a a r e of t h e l a s t Wednesday of month e x c e p t J u n e 30 and December 31; o t h e r
d a t a a r e a s of t h e l a s t day of t h e m o n t h .
2/ D a t a a r e f o r t h e n e t i n c r e a s e i n s a v i n g s c a p i t a l a t a l l o p e r a t i n g S&L's. S o u r c e : FHLBB.
3 / D a t a a r e f o r t h e n e t i n c r e a s e i n r e g u l a r d e p o s i t s — e x c l u d e s o t h e r d e p o s i t s of a
demand n a t u r e . S o u r c e : Mutual S a v i n g s Banks A s s o c i a t i o n .
4 / D a t a a r e f o r t h e n e t i n c r e a s e i n s a v i n g s and t i m e d e p o s i t s a d j u s t e d a t a l l commercial b a n k s .
Source: Federal Reserve.
rm
1881
1883
1868
1864
1866
Exhibit A — Part I I
Date
1959-60 - High
1962-63 - Low
1965 - Low
1966 - High
Sept.
2
9
16
23
30£/
Corporate
Aaa 1 /
4.61
4.19
4.41
5.52
4.73
(3/29/60)
(3/29/63)
(3/12)
(9/9)
(1/7)
5.44
5.52
5.51
5.49
5.47
U . S . Govt.
long-term 2 /
S t a t e and
local
government
Aaa 3 /
Spread between
U. S . Govt, and
.Corporate
S t a t e and
Aaa
l o c a l Aaa
4 . 4 2 (1/8/60) 3 . 6 5 (9/24/59) . 5 9 (8/5/60)
3 i 8 5 (12/28/62) 2 . 8 8 (lJ/e/62) . 2 1 (12/27/63)
4 . 1 3 (6/25)
2 . 9 4 (2/11)
.22
4.87
(9/2) 4.04 (8/25)
.75
4.42 (1/21) 3.39(1/13)
.14
*
4.87
4.77
4.79
4.80 ,
4.72
4.02
3.99
3.85
3.89
3.88
. 9 2 (4/22/60)
. 8 0 (1/5/62)
.94
1.19
.78
:fj
.72
.69
.75
:St
.84
•of Preliminary.
Lr Weekly average of d a i l y f i g u r e s . Average term of bonds Included i s 22-24 years."
<7 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*
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
s e r i e s . For spreads, high r e f e r s t o widest, and Ion to narrowest.
iiimm «. ».n i
LONO-TIKM BOND YlllDS, LOWIR OKADI
5.5
CORPORATE B l l
5.0
4.5
4.0
3.5
3.0
1881
1983
1882
1884
1885
1888
Exhibit B - - Part II
Corpora te
Baa 1/
Date
1959-60 - High
Year end - 1962
1964
1965
1966 - High
Low .
Sept.
2
9
16
23
30£/
State and
l o c a l govt.
Baa 3 f
(per cent)
Spread between
Aaa end Baa
State and
Corporate
local govt.
5.36 (a/12/60)
4.93
4.80
5.04
6.10(9/23)
5.05(1/14)
4.46 (3/7/60)
3.57
3.51
3.79
4.55(8/25)
3.78(1/20)
.84
.70
.37
.31
.61
.31
1.08
.63
.52
.39
.62 '
.38
5.99
6.08
6.10
6.10
6.06
4.54
4.51
4.43
4.45
4.45
.56
.56
.59
.61
.59
.50
.52
.58
.56
.57
Motel Tor footnotes see Exhibit
i.
rrmtfl c. ten 1
SHORT- AND INTIRMIDIAT8-TSRM I N T I I I f T RATIf
GOVERNMENT
We.khr
J
S-5 YEAR ISSUES
y-/
r. r. o
J
ioUNT RATE
,
1
J
»•» c..i
8;• MONTN MILS J
j
3-MONTH BILLS
i M u i M 111
1881
M M II 1 M II 11 i II II 1 1 1 1I M i i i M I i i 1.111 u i i i i i
1882
1883
1884
1885
J 1 l.I 1 1 I.Li 1 I.
1888
Exhibit C — Part II
Discount
ra t e
3-month
1/
b i l l s 2/
Da t e
1959-60 -' High
Year end - 1961
1962
1963
1964
1965
1966 - High
Low
Sept.
2
9
16
23
3°£/
Yields
6-month
b i l l s 2/
(per cent]
3-r^ar
issues, 2/
Spread between y i e l d s on 3 month b i l l s and v i e l d s on
j
6-mo. b i l l s 13-5 v r . i s s u e s
4.00
3.00
3.00
3.50
4.00
4.50
4.50
4.50
4 . 5 9 (Ve/60)
2.66
2.89
3.52
3.83
4.47
5.52(9/23)
4.39(6/24)
5 . 0 7 ( 1 / 8 / 6 0 ) 5.00{12/24/59)
2.90
3.81
2.93
3.41
3.64
4.07
3.93
4; 07
4.66
4.90 .
5.92(9/23)
5.83(9/2)
4.53(6/24) 4.80(4/8)
.79
.24
,04
,13
.10
,19
,52
,09
1.81
1.15
.52
.55
.24
.43
.78
.09
4.50
4.50
4.50
4.50
4.50
5.07
5.18
5.40
5.52
5.39
5.58
5.70
5.91
5.92
5.69
.51
.51
.52
.76
.45
.13
.17
.09
5.83
5.63
5.63
5.69
5.48
.40
.30
s s s ?
& * L i s , s ^ f s s i , i K J S
consists of selected notes and bonds*
Note.—filths and lows are f o r Individual series and may be on different dates for different s e r i e s .
Tar spreads, high refers t o widest, and low to narrowest.
*
y
EXHIBIT 0. fan I
SHORT- AND INTIRMIDIATI-TIRM INT1R1ST RATI*,
BANKS AND OTHER PRIVATE BORROWIRS
PRIME RATE
FINANCE COMPANY P A P E R
F.R. DISCOUNT RATE
a a
1961
/
M
FEDERAL FUNDS
1982
1983
1984
1985
1988
E x h i b i t D — Part I I
Date
Prime r a t e
1959-60 - High
Year end - 1961
1962
1963
1964
1965
1966 - High
Low
Sept.
2
9
16
23
30£/
.
1/
Finance
company
Federal funds j,/
pacer
2/
(per cent)
5.00
4.50
4.50
4.50
4.50
5.00
6.00(9/30)
5.00(3/4)
5 . 1 3 (1/23/60)
3.00
3.19
3.88
4.06
4.75
5.75(9/30)
4.75(1/7)
4 . 0 0 (5/13/60)
2.88
3.00
3.50
4.00
4.63
6.00(9/9)
3.55(1/21)
6.00
6.00
6.00
6.00
6.00
5.63
5.63
5.63
5.75
5.75
5.35
6.00
5.63
4.95
4.70
Spread between
3-mo. b i l l s and
f i n a n c e c o . paper
1.02
.34
.30
.36
.23
.28
.99
.20
.56
.45
.23
.23
.36
Weekly rate shown Is t h a t i n e f f e c t a t end of period. Prime r a t e i s t h a t charted by large banks
on short-term loans t 6 business borrowers of the h i g i e s t c r e d i t standing.
2 / Average of d a i l y r a t e s published by finance companies f o r d i r e c t l y placed paper for varying
maturities i n the 90-179 day range.
3 / Weekly average of d a i l y e f f e c t i v e r a t e , which i s the r a t e f o r the heaviest volume of purchase and
sale transactions as reported t o the Federal Reserve Bank of N e w York.
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 s e r i e s .
for Hotel—Highs
FRASER
Tor spreads, high r e f e r s to widest, and low t o narrowest.
Digitized
IXHISfl I, r.rl I
STOCK MARKIT
lllli.ni el d.llen
100
PRICES
-
10
STOCK MARKET CREDIT
T
•0
CHANGE IN SERIES
1
1
40
1*2
.
•
VOLUME
y w l y
4
1
^
1
0
YIELDS
111111111111 M11111 i n
1961
1962
11 1 1 1 1 1 1 1 1 1 1 1 1 l l l I l I I M l I 1 1 1 I I I I I I 1 1 1 I1 I 1 1 1 1 1 1 1 1 1
1963
1964
1969
1966
Common
Date
1961-62 - High
Low
Nov. 1963
J u l y 1965
1966 - High
Low
July
Aug.
S e p t . 16
S e p t . 23
Sept. 30£/
Stock p r i c e
index U
i
Exhibit E - - Part I I
Stock mar ket customer c r e d i t
Customers 1
Bank
Total
debit balloans to
ances 4 /
"others" 5 /
( I n m i l l i o n s of d o l l a r s )
yielda 2/
fner cent)
72.04(12/8/61)
52.68(6/22/62)
72*62
84.91
93.77(2/11)
76.41(9/9)
2.82
3.96
3.14
3.09
3.02
4.04
10.1
2.4
5.3
4.1
10.7
5.0
85.83
80.65
79.09
78.39
77.19
3.37
3.60
4.04
3.74
3.80
6.0
7.1
6.2
5.0
5.9
5,60*ig/6i)
4,424(0/61)
7,298
6,833
7 ,997
7 ,726
4,259 (12/61) 1.418(9/6/62)
3,253(3/61)
1,161(W61)
5,586
1,712
4,863
1,970
5,835
2,241(7/6)
2,137(5/27)
5,551*
7 ,870
7 ,811
5,667
5,609
2,203
2,202
2,176
2,168
n* a*
a.#,.—Not available, p / Preliminary.
3/ Standard and Poor's composite Index of 500 oomaon stooks, weekly closing prices, 1941-43"10.
Monthly data are averagds of daily figures rather than of Friday's only. Highs and lows are for
Friday's data only.
2J Standard and Poor's composite a took yield based on Wednesday data converted t o weekly closing
prices by Federal Reserve. Yields shewn are f a r dates on which price index reached i t s high
3 / Averages of daily trading volume on the #ew York Stock Exchange. Yeast-end figures are averages of
daily figures for the year.
4/ End of month figures f o r maaber firms of the New York Stock Exchange w h i * carry margin accounts)
excludea balances secured by U. 3. Government obligations.
5/ Wednesday figures f o r weekly reporting member banks. Exclude a loans for purchasing or carrying
U. S. Government securities# Weekly reporting banks account for about 70 per cent of leans t o
others. For further d e t a i l see Bulletin.
IXHIIIT
t. tail
I
SECONDARY MARKET OPERATIONS
SALES
PURCHASES
I960
1961
1962
1963
1964
1965
1966
Exhibit F - Part II
E s t i m a t e d o f f e r i n g s ito FNMA
Immediate
S tandby
purchase
commitment
Date
1965 - Aug.
Sept.
Oct.
Nov.
Dec.
1966 - Jan.
Feb.
Mar.
Apr.
May
.
July
Aug.
Total
82.0
101.1
209.9
238.3
325.7
333.2
209.2
272.8
193.0
192.2
144.2
122.6
150.7
Purchases
by
FNMA .
( I n m i l l i o n s of d o l l a r s )
82.0
101.0
209.9
237.2
325.6
333.0
209.0
272.3
192.3
191.1
141.7
121.0
148.7
1.0
.3
.3
.5
.7
1.1
2.6
1.6
2.0
47.2
63.5
78.5
140.2
186.7
229.2
267.3
301.4
193.0
167.3
131.6
213.2
112.5
Sales
by
FNMA
0.2
0.1
0.2
0.1
•—-Less than $50,000.
y
Data represent unpaid p r i n c i p a l balances of the mortgages involved, exclusive of
premiums, discounts, or other dharges. Offerings are amounts of applications received
during t h e period from s e l l e r s proposing t h a t FNMA execute purohasing c o n t r a c t s . An
inmedlate purchase contract covers e x i s t i n g mortgages which t h e s e l l e r oast d e l i v e r t o
FNMA within 45 days, A standby cam&tment contract r e l a t e s t o proposed mortgages on
housing not y e t under construction which the s e l l e r must usually d e l i v e r within one
year. Purchases include thoee under both immediate purchases and standby occmitmerrt
c o n t r a c t s . Data exclude FNMA a c t i v i t y under Special Assistance and Management and
FRASER
Liquidating Pre grans.
Digitized for
\l
SEASONED All
I I I i I
1963
1964
I I I I I I I I
1965
I I I I I I I I I I I
Exhibit 0 - Part"II
Yields on Mew Corporate Bond Issues Adjusted to an Aaa basis
Number Aa r t of Issues Average
included (mil.
yield
of
(per cent)
Issues of dollars)
M o n t h l y averages:
1966 - Jan.
Feb.
Mar.
Apr.
May
^ July
Aug.
Sept.
8
10
9
13
7
11
5
5
300. .0
304. ,5
513. ,0
452. ,3
341. ,0
596. 0
155. ,0
680. ,0
4,.84
4.,98
5..13
5.,08
5. 21
5..38
5.,62
5.,70
Number Ain't of Issues Average
included (mil.
yield
of
issues of dollars)
(per fen*),
Aug.
5
12
19
26
Sept. 2
9
16
23
30
2
1
1
1
1
1
4
280.0
5.58
145.0
80.0
175.0
50.0
15.0
5.65
5.92
5.98
5.91
8,0
207.0
!:&•
5.80
Weekly a v e r a g e s :
5.98 (9/2)
4.82(1/7)
Motet Averages of offering yields on a l l now l i r n i of publicly offered ooxporate bond# rated Am. Aa aaiS
A by Moody's Investors Service (except s e r i a l and convertible issues, offerings of natural gas pipeline
and foreign companies, and bonds guaranteed by the Federal Government) weighted by else of offering.
Before averaging, new offerings are adjusted to a composite i i a basis by deducting from the a o t m l
r e o f f e r i c g yield the excess of the weekly average yield f o r seasoned tends of the appropriate indastryqualitr group over the composite average f o r seasoned Aaa-rated bonds (Moody's). Averages considered
unrepresentative because of special characteristics of t e offerings included are denoted by an asterisk^
High
Exhibit H
H.14
Long-term Corporate 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 Placements
( I n m i l l i o n s of d o l l a r s )
1966
Comorate
1965
New Cap i t a l
1964
January
February
March
1,302
1,237
2,446
795
746
1,197
April
May
June
1,553
1,058
2,364
1,152
1,691
1,946
2,237
1,095
1,405
2/1,046
e/1,725
e/1,275
1,290
850
1,392
812
680
1,130
924
1,325
1,496
953
669
1,642
2,738
4,789
3,533
3,745
2,416
4,738
2,621
3,264
July
August
September
October
November
December
1st
2nd
3rd
4th
quarter
quarter
quarter
quarter
1st half
Three q u a r t e r s
Year
4,985
4,974
e / 4,046
9,959
e/L4,005
7,527
11,060
14,805
938 '
700
778
7,153
9,775
13,038
S t a t e and l o c a l 2 /
1966
1965
1964
£ / 1 ,183
£ / 857
£/ 868
804
872
904
947
776
810
£ / l ,186
904
£ / l : ,133
, 826
924
972
1,242
667
903
679
737
975
986
648
966
906
780
892
794
1,021
754
801
529
948
2,580
2,722
, 2,600
2,569
2,533
2,811
2,578
2,278
£/
&/
B./
e/
£ / 2,,909
E/3, ,223
e/2 : ,391
£ / 6 , 132
e/8, ,622
5,302
7,902
10,471
5,345
7,923
10,201
Excluding f i n a n c e companies 3 /
1st
2nd
3rd
4th
quarter
quarter
quarter
quarter
4,924
4,884
Year
e/
E/
1/
2/
3/
2,547
4,348
3,283
3,188
2,043
4,258
2,477
2,997
13,366
11,775
Estimated by Federal Reserve.
Preliminary. '
S e c u r i t i e s and Exchange Commission e s t i m a t e s of net proceeds.
i
Investment Bankers Association of America e s t i m a t e s of p r i n c i p a l amounts.
Total new c a p i t a l i s s u e s excluding o f f e r i n g s of s a l e s and consumer f i n a n c e companie
:
i
r
«>
.1'"
•'4
St
i
S'
4
,3
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 )
Quarter
Month
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/
Total
Bonds
Common Memo:
Publicly Privately
and F o r e i g n
Offered
Placed
pfd. issues
Net proceeds
f o r new c a p i t a l
Mfg.
slack,. included
P u b l i c CommuniUtility cations
1/ 2 /
Other
Issuers
1964 - I
II
III
IV
2,548
4,965
2,876
3,568
978
1,321
792
531
1,269
1,755
1,590
2,629
300
1,890
494
408
29
105
94
227
429
723
559
1,061
438
856
642
509
273
1,666
59
135
1,275
1,492
1,361
1,559
1965 - I
II
III
IV
3,007
5,043
3,912
4,030
905
1,864
1,575
1,226
1,673
2,259
1,955
2,264
429
920
383
540
243
215
263
300
1,072
1,679
1,119
1,145
541
609
786
610
91
255
323
177
1,034
2,246
1,304
1,815
1966 - I
II
Ill
1965 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec,
5,094
5,1/15
1,774
1,941
2,586
2,033
734
1,090 .
345
168
1,860
2,205
969 .
960
602
392
1,553
1,41*
1,233
1,773
2,038
1,443
930
1,538
986
1,398
1,646
422
694
748
542
369
664
287
613
326
648
630
980
780
468
706
574
529
1,161
162
449
309
122
93
168
124
257
159
33
49
134
27
87
150
99
101
99
540
698
441
399
307
414
273
402
470
176
248
184
202
297
287
158
209
243
15
143
98
102
25
196
92
43
43
422
602
1,223
587
222
495
401
671
. 741
1,339
1,273
2,482
1,582
1,10 6
2,427
1,093
1,775
460
560
753
628
481
832
440
1,225
692
583
1,311
743
556
784
543
450
187
130
417
210
69
811
110
100
353
93
530
118
977
133
692
86
33
376.
49
1,137
25
442
n.a.
675
388
241
340
364
274
322
263
300
141
160
301
76
40
276
50
275
420
306
827
421
368
i6£9
291
475
1966 - J a n . 3 /
Feb.
Mar.
Apr.
May
June
JulyB./
Aug. e /
Sept.
£/
ej
1/
2/
Preliminary.
E s t i m a t e d by F e d e r a l R e s e r v e .
Gross proceeds exceed n e t proceeds by t h e c o s t of f l o t a t i o n .
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 .
3 / Does not i n c l u d e U.S. S t e e l $600 m i l l i o n c o n v e r s i o n of p r e f e r r e d s t o c k t o d e b e n t u r e s .
Source: S e c u r i t i e s and Exchange Commission.
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 )
Grnnn T.nng-ferm 1 (
F o r e i g n Government 11
1965
1964
1966
1966
January
February
March
April
May
June
July
Augus t
September
October
November
December
J a n . - Aug.
12
40
40
66
69
76
72j»/
Year
91
33
74
5
52
75
2
4
82
69
30
75
26
20
13
7
180
72
58
527
319
1,653
695
661
636
2,732
1,205
218
38
73
503
410
392
699
1,030
1,084%/
July
August
September
October
November
December
103
39
-319
580
462
-334
-1032/
331£/
238
91
-458
647
204
-82
119
408
152
59
' 274
-366
103
236
-407
442
81
-80
-9
127
176
7
-15
-208
129
185
325
775
275;
260 i
160 f
239
150
375
375
179
New s h o r t - t e r m 4 /
S t a t e and l o c a l Goverment 5 /
January
February
March
April
May
F e d e r a l Agency V
1965
1964 ,
308
-24
450
718
85
284
-590
n. a.
510 <
F e d e r a l Agency 3 /
-137
-174
117
-11
509
237
132
206
105
-309
202
-76
-308
-336
23
97
183
239
-333
167
1
525
113
-3
Jan.
Aug.
759%/
1,167
493
879
-268
1,286
368 ,
Year
453
801
•qJ P r e l i m i n a r y , E/ Estimated by F e d e r a l R e s e r v e , n . a . — N o t a v a i l a b l e . 1/ 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 , a s w e l l a s 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 a s t h o s e maturing i n more than one y e a r .
2 / 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 U.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.
3 / I s s u e s not g u a r a n t e e d by U.S. Government. Source: Long-term, 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 Dept. & Fed. R e s e r v e .
4 / These d a t a d i f f e r from t h o s e
in E x h i b i t H and above i n t h a t they r e p r e s e n t new o f f e r i n g s l e s s r e t i r e m e n t s , whether
from the p r o c e e d s or r e f u n d i n g i s s u e s or from o t h e r f u n d s . Data i n c l u d e only i s s u e s w i t h
o r i g i n a l m a t u r i t y of one y e a r o r l e s s .
5 / 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 , or c e r t i f i c a t e s and P u b l i c Housing Auth. n o t e s . I n some i n s t a n c e s PHA n o t e s
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 1 y e a r . Source: Bond Buyer & F e d e r a l
Reserve.
Exhibit K
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
( O t h e r t h a n U. S. T r e a s u r y ) 1/
P r o c e e d s 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 )
Total
- Sept.
.Oct.
Nov.
Dec.
- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Corporate
Bonds
Convertible
( o t h e r than
bonds
convertibles)
530
190
559
212
370
391
544
481
351
636
170
862
287
530
246
736
262
485
545
890
643
401
1,317
402
1,189 '
627
State
and
local
governments
563
409
538
413
787
424
399
720
"466
582
338
410
611
Stocks
16
-144
—115
70
271
106
-661
50
80
w-
40
33
50
84
75
55
50
20
182
247
340
Other
170
43
95
- -
- -
55
60
- -
275
15
- -
50
Large I n d i v i d u a l I s s u e s O f f e r e d During September
Type 2 /
Issuer
Corporate
Northwestern Bell Tel.Co.
Aluminum Co. of America
Burlington I n d u s t r i e s ,
Inc.
Boeing Co.
Iowa E l e c . Lt.&Pwr. Co.
C o n s o l i d a t e d C i g a r Corp.
Cenco I n s t r u m e n t s Corp.
Ampex Corp.
Kimberly C l a r k Corp.
Southern B e l l T e l . & T e l .
Co.
General T e l . Co. of C a l i f
P u b l i c S e r v . Co. of
New Hampshire
Amount
(millions
of
dollars)
Maturity
Coupon
r a t e or
net i n t e r est cost
Offering
yield
Rating
Deb.
Conv., s u b . deb.
50.,0
125,.0
2001
1991
6
5-1/4
5..91
5,.25
Aaa
Baa
Conv., sub. deb.
Conv., s u b . d e b .
1 s t mte. b d s .
S . F . deb.
Conv., deb.
Conv., sub. deb.
S . F . deb.
40.,0
130.,0
15.,0
15.,0
15.,0
30.,0
45..0
1991
1991
1996
1991
1986
1991
1991
5
5-1/2
6-1/4
6-1/2
5-1/4
5-1/4
5-7/8
5,.00
5..50
6..12
6..50
5..25
5..25
5,.90
Baa
A
Baa
Ba
Ba
Aa
-
1 s t mtg. b d s .
100,.0
45.,0
2004
1996
6
6
5,.95
6.,00
Aaa
A
1 s t mtg. b d s .
17. 0
1996
6-1/8
5.,97
A
h
K-2
Large I n d i v i d u a l I s s u e s O f f e r e d During September (Contcd)
Type
3/
(mill ions
of
dollars)
Maturity
Coupon
r a t e or
Offernet i n t e r ing
est cost
Yield
Rating
S t a t e and L o c a l Govt =
C o l o . R i v e r M u r i c Wtr. D i s t ,
Texas
Puert
R i c o Water R e s o u r c e s
Auth.
P u e r t o R i c o Aqueduct a n a
Sewer. Aut T..
L a . Cap. C o n s t . & Imp. Comm.
Memphis, T e n n .
Fub'Lic H o u s i n g A u t h o r i t i e s
Phi l a . 5 choc1 D i s t . . Pa.
S t a t e of M a s s a c h u s e t t s
L o s . A n g e . e s D e p t . of W t r . &
Pwro, C a l i f o r n i a
New J e r s e y T u r n p i k e A u t h .
F l a . S t a t e Bd. of E d u c a t i o n
T u l s a , , Oklahoma
San F r a n c i s c - » C a l i f o r n i a
W i s e . S t . A g e n c i e s B'Ldg. C o r p .
Quebec Hydro E l e c . Comm.
G o v t , c1 New Z e a l a n d
Rev „ - U t .
30 . 0
1996
Rev, - u t ,
32,. 0
1968-99
Rev. - u t .
Rev. - b t .
4.1
13 . 9
15,. 0
20,. 0
119.,9
25, ,0
46..9
G.O.
G.O.
Bonds
G.O.
G.O.
Rev. - Q . - U t . 30.,0
Rev. -Q. -Lf t . 179, 0
2 5 c ,0
G.O.
1 8 . ,2
G.O.
25. ,6
G.O.
26. 7
Rev. -Rent
Deb.
40.0
10.0
1971-86
2002
1967-86
1967-91
1967-2007
1968-90
1967-2015
1967-96
2006
1967-96
1968-91.
1967-86
1.967-2006
2991
1976
4.,90
Baa
.59
4.,50
A
4 ,57
4. ,50
A
4,.65
3,,95
3..87
4,,34
4.,23
4. , 3 5 - 4 , 5 0
3 ., 8 5 - 3 . 9 ( p /
3 ,, 7 0 - 3 . 8 5 5 /
4. 25-4.30
4 . 10
A
Aa
Aaa
A
Aa
4.,47
,80
4. ,31
a.
4. 1 2
4 . 18
4. 25-4.35
4 . 75
4 . 20
a.
3. 90-5.00
4. 0 0 - 4 . 1 0
Aa
A
Aa
Aa
6-1/4
7
6.25
7.2@
n
|
%
&
Aa
- -
n . a . - -Net: a v a i l a b l e .
* - -Rights o f f e r i n g .
U 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 . g o v e r n m e n t s e c u r i t y o f f e r i n g 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 g o v e r n m e n t and I n t e r n a t i o n a l Bank f ~>r R e c o n s t r u c t i o n and D e v e l o p m e n t
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 .
3 / 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 . ,, r e v e n u e o b l i g a t i o n s s e c u r e d o n l y by income f r o m p u b l i c u t i l i t i e s ; Rev. -Q. - U t , ,
r e v e n u e bonds s e c u r e d o n l y by r e v e n u e from q u a s i - u t i l i t i e s ; R e v . - S . T . , r e v e n u e b o n d s
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 , p a y m e n t s .
4/ Bonds due 1991. not. p u b l i c l y r e o f f e r e d .
5 / B:nd= due 196"? - 72 not p u b l i c l y r e o f f e r e d .
H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treasury) }J
Expected Proceeda from Forthcoming Large Iasuea
(In millione of dollara)
During month following
date ahown
State and
Other 2/
Corporate
local govt.
1965 - S e p t . 3 0
Oct. 29
Nov. 30
Dec. 31
1966 - J a n . 31
Feb. 28
Mar. 31
Apr. 30
May 31
June 30
J u l y 29
Aug. 31
Sept.30
206
412
297
553
530
828
489
248
1,261
317
677
662
687
269
343
398
501
340
366
253
399
584
337
403
515
300
15
25
20
20
-20
-- -
30
15
- -
40
Corporate
Subsequent to
date ahown
State and
local govt.
331
578
458
582
461
504
334
546
584
353
403
685
380
303
389
344
676
931
1 a 176
606
1,034
1,261
619
697
853
767
Other l!
15
25
20
20
20
90
55
55
85
50
35
90
35
F o r t h c a n i n g Large O f f e r i n g s a s of September 30
Issuer
Ctnmw
Texas I n s t r u m e n t s , I n c .
Cameron I r o n Works, I n c .
J e r s e y C e n t r a l Pwr. & L t . Co.
Columbia Gas System
United A i r c r a f t Corp.
Idaho Pwr. Co.
Alabama Pwr. Co.
* L i g g e t t and Meyers
Wise. Gas Co.
I l l i n o i s Pwr. Co.
* P a c i £ i c Southwest A i r l i n e s
Pa. E l e c . Co.
Southern New England T e l . Co.
Niagara Mohawk Pwr. Co.
*American A i r l i n e s
*Whirlpool Corp.
Type
Com. s t k .
Conv. sub deb.
Deb.
Deb.
Conv. sub deb.
1 s t mtg bds
1 s t mtg bds
S . F . deb.
1 s t mtg. bds
1 s t mtg. bds
Conv. deb.
1 s t mtg. bds
Deb.
1 s t mtg b d s .
Conv. sub deb.
S . F . deb.
Amount
(millions
of
dollars)
55.0
25.0
15.0
40.0
58.9
30.0
33.5
75.0
18.0
40.0
15.0
25.0
45.0
45.0
81.7
35.0
Approximate date of
offering
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
j .(rts, ex,)
4
5
7
11 ( r t s . e x . )
12
14
18
19
20
25
26
27
28
31 ( r t s . e x . )
L-2
Forthcoming L a r g e O f f e r i n g s a s of September 30 ( C o n t ' d )
j
Issuer
Tjype
!
|
Amount
(millions
of
dollars)
Approximate d a t e of O f f e r i n g
Corporate (Cont'd)
LTV Aerospace Corp.
A t c h i s o n , Topeka & Santa Fe Ry.
Gamble-Skogmo, I n c .
Sub. |deb.
Eq. t r . c e r t .
Note$
50.0
50.0
.30.0
Oct.
Indefinite
Indefinite
S t a t e and Local Government
New York S t a t e Dorm. Auth.
Rev R e n t .
S t . L o u i s & S t . L o u i s Co.,^JCD, Mo. G.O.
S t a t e cf Oregon
G.O.
* A t l a n t a , Ga.
G.O.
^ B a l t i m o r e , Md,
G.O.
Rev. --Rent.
*Univ. of O k l a . , Norman
O r l e a n s P a r i s h Sch. B d . , La.
G.O.
Los Angeles County Flood C o n t r o l
Dist. , California
G.O.
Omaha Pub. Pwr. D i s t . , Neb.
Rev. - Q . - U t .
G r e a t e r New O r l e a n s Expressway
Auth.
Rev. - Q . - U t .
*Wash. S t a t e U n i v . , Pullman
Rev. - R e n t .
S a n t a Monica U n i f . S . D . , C a l i f .
G.O.
Rev. - Q . - U t .
Oklahoma T u r n p i k e Auth.
31.7
13.6
16.5
Oct.
Oct.
Oct.
Oct.
Oct.
O c t . 10
O c t . 11
55.
25,
O c t . 11
O c t . 13
74.0
17.3
14.8
80.0
O c t . 18
O c t . 28
Oct.
Nov.
20.0
15.0
Indefinite
Indefinite
17.4
10.0
15.0
10.0
Other
R e p u b l i c of I r e l a n d
Nippon T e l . & T e l . Pub. Corp.
Bond
*--Included in table for 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 jof $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 o f { F e d e r a l A g e n c i e s .
Note:
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
\\
H. 14
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:
S a l e Date
Amount
(millions
of
dollars)
I s s u e r and D e s c r i p t i o n of I s s u e
A.
7/7
'
Public Offerings
Sold J u l y 1 through September
30
G o v t , of M e x i c o - - 6 - 7 / 8 % b o n d s , m a t u r i n g 1 9 8 1 , r e o f f e r e d
t o y i e l d 7.26%.
15.0
7/14
40.0
Quebec Hydro E l e c . Commis s i o n - - 1 / 4 % d e b e n t u r e s ,
m a t u r i n g 1 9 9 1 , r e o f f e r e d t o y i e l d 6.25%.
9/21
10.0
Government of New Z e a l a n d - - 7 % b o n d s , m a t u r i n g 1 9 7 6 ,
r e o f f e r e d t o y i e l d 7.28%.***
B.
Prospective Offerings
Indefinite
20.0
Republic of Ireland--bonds
Indefinite
15.0
Nippon Telegraph and Telephone Public Corp--bonds
•--Included in table for first time.
**..Issue sold to investors outside of U.S.
***--Issues subject to interest equalization tax.
4
M-2
Part I I :
Date R e p o r t e d
P r i v a t e P l a c e m e n t s - R e p o r t e d J u l y 1 t h r o u g h September
Amount
(millions
* of
dollars)
>0
I s s u e r and D e s c r i p t i o n of I s s u e
7/6
31.0
S t e e p Rock I r o n M i n e s , L t d . - - 6 % 1 s t m t g . . b d s . , m a t u r i n g
1987—no i n f o r m a t i o n a v a i l a b l e on takedown.
7/26
50.0
Great Canadian Oil Sands, L t d . - -
% notes, maturing
1991—no i n f o r m a t i o n a v a i l a b l e on takedown.
9/23
59,5
Savage R i v e r C o r p . - = 5 - 1 / 2 % - 5-3/4% c o l l a t e r a l t r u s t
n o t e s , m a t u r i n g 1976=83--no i n f o r m a t i o n a v a i l a b l e on
takedown,
i
N o t e : For r e t r o s p e c t i v e d a t a on a g g r e g a t e f o r e i g n c o r p o r a t e and government s e c u r i t y o f f e r i n g
\ l n t h e U n i t e d S t a t e s s e e E x h i b i t s I and J . There i s no s i m p l e r e l a t i o n s h i p between t h e
d a t a shown i n t h e E x h i b i t and t h a t shown i n E x h i b i t s I and J b e c a u s e t h e l a t t e r i n c l u d e s
p r i v a t e l y p l a c e d s e c u r i t i e s i n t h e p e r i o d i n which f u n d s a r e a c t u a l l y taken d o w n . b u t o n l y
i n t h e amount of takedown w h i l e t h e p l a c e m e n t s shown i n t h i s e x h i b i t a r e i n c l u d e d when
r e p o r t e d , f r e q u e n t l y w i t h l i t t l e or no i n f o r m a t i o n c o n c e r n i n g t i m i n g of takedown. F u l l
o r p a r t i a l takedowns may t a k e p l a c e b o t h p r i o r and s u b s e q u e n t t o t h e d a t e a p l a c e m e n t
is reported.
@FedFRASER