Full text of H.16 Capital Market Developments : October 30, 1967

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OTC0WBOLLED

AFTV* 6TT MOUTHS

f
October 30, 1967.

Not for Publicatiwr
H. 14
lb(

CLfil

&PIT IL MARKETS DEVELOPMENTS
II THE UNITED STATES

Corpdrate~and municipal* bond markets. The volume of new, publicly
offered, corporate and municipal securities expected this week will be below
the average weekly volume over the past year. The corporate volume will
feature $100 million of Cities1 Service debentures, while the unusually small
municipal volume will contain no offerings of notable size. The week's offerings
will be supplemented by the Tennessee Valley Authority's $60 million bond offering.

If

Long-term Public Security Offerings—
(In millions of dollars)
Corporate
New Capital I Refunding

State & local Government
New Capital I Refunding

Sold:
319

247

20
27

r/398
378

r/372
356

3

249

115

52 weeks avg.
October
Scheduled:
November

T / F e d e r a l Reserve estimates are based upon published reports ofj issues
sold and scheduled for offering; corporate rights offerings are
included as of date subscription rights expire.
Although the lagging seasoned-corporate yield series advan<iced last
week, yields on new issues declined. The week's offerings, furthermc re, were
generally well received, some actually advancing to a slight premium after
their initial distribution. The Federal Reserve's new ruling* requirj|ng all
lenders to attribute to a convertible bond the same loan value as its stock,
led to the cancellation of Tenneco's $203 million rights offering, bint last
week's convertible bond offerings achieved the usual sell-out. The jjisues,
however, allegedly carried terms more favorable to the investor than might
otherwise have been expected.
Yields on municipal bonds also declined last week and new issues
were very well received. Over 80 per cent of last week's offerings were
reported to be sold by the close of business Friday.




H. 14

-2-

Yields on Security Marhmts
Level Latest W — k
Change from
preceding week

High Grade
Notes and Bonds
Corporate
5.99
5.90

-35
+ 7

5.29
5.57

+ 5
+ 2

3.92
4.31

- 4

3.40

-52

4.56
5.07

- 5
- 4

New
Seasoned
U.S. Government
Long-term
3-5 year
State and Local Govt.
Moody's Aaa
Std. & Poor's high grade
Money Market
Federal funds
Treasury bills
3-month
6-month

Corporate Bonds Still in Syndicate
Amount
(millions of $)

Date
Offered
. 10/25

'25.0

100.0

10/17
10/9

75.0

Reoffering
Yield

Issuer

Wisconsin Public Service,
6-3/8*8 - 1997

6.35

Household Finance,
6-3/8»s - 1988

6.49

Philadelphia Electric,
6-1/8's - 1997

6.10

Rating
Aa

Estimated pre
portion sold
65%
98%

Aaa

30%

Blue List of Municipal Dealers' Advertised Inventories
Latest Week
355(10/25/67),


\


End of Previous Week

Recent High

363

849(4/26/67)

H. 14

-3-

Home mortgage interest rates and other loan terms. Secondary
market yields on new-home mortgages insured by the Federal Housing Administration rose further in September, to 6.63 per cent. This rise of three; basis
points marked the fifth consecutive month of yield increase since th^ series
reversed direction last April. The September rise, while less than in most
other months, reflected mainly continuing pressures in the capital markets
as a whole, which apparently increased again in October after seeming to
ease somewhat in September.
Interest rates on conventional first mortgages on new homes, as
estimated by the FHA and rounded to the nearest 5 basis points, were unchanged
in September, at 6.55 per cent, but comparable rates for loans on existing
homes rose again. Since last. June, FHA-insured mortgages traded in the secondary
market have yielded more than conventional mortgages on new homes (F^A series),
reflecting in part the unattractiveness to lenders of FHA-insured mortgages
at the heavy discounts currently required. Although average discounts in
September rose to 5.4 per cent, the highest for any month this year, they are
still 1.4 percentage points below the peak reached last November.
The Federal Home Loan Bank Board series on conventional hone mortgage
interest rates and other lending terms also indicated continued mortgage
market tightening in September. In the case of non-rate terms, maturities
at 24.2 and 21.3 years respectively, for loans on new and existing homes were
slightly lower in September than in August. Average loan/price ratios in
September were also somewhat lower than the previous month for both new and
existing homes (73.7 and 72.9 per cent respectively)• And average loan amounts
were smaller in September for existing home loans ($16.4 thousand) aid unchanged
(at $20.3 thousand) for loans on new homes.
Stock prices. Common stock prices declined somewhat last week in
active — and at times extraordinary — trading. At the close Friday.
Standard & Poor's index of 500 stocks stood at 94.96, down 0.42 from!the
previous Friday. Trading volume on the New York Stock Exchange averaged
10.2 million shares a day, while on the American Exchange the all-time record
of 7.1 million shares, set in 1929, was broken Thursday when volume purged to
almost 8.3 million shares. On Friday AMEX volume was still record breaking
at 7.2 million shares.
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, Pari 1

L O N O - T I U M BOND YIELDS, HIGH-GRADK

/V
STATE A N D L O C A L G O V E R N M E N T Aal

1963




1965

1966

1967

Exhibit' A -- Part II
Spread between
U.S. Govt, and
State and
Corporate
local Aaa
Aaa

Corporate
Aaa 1/

~
| State and
U.S. Govt. |
local
long-term 2/. government
I
Aaa 3/ __
(per cent)

4.61(1/29/60)
5.52(9/9)
4.73(1/7)
5.90(10/27)
5.00(2/10)

4.42(1/8/60)
4.87(9/2)
4.42(1/7)
5.29(10/27)
4.37(2/3)

3.65(9/24/59)
4.04(8/25)
3.39(1/13)
3.92(10/27)
3.25(2/9)

Sept. 29

5.66

5.04

3.83

.62

1.21

6
13
20
27

5.72
5.76
5.83
5.90

5.04
5.10
5.24
£ / 5.29

3.83
3.83
r/ 3.92
3.92

.68

1.21
1.27
r/1.32
2/1.37

1959-60 - High
1966 - High
- Low
1967 - High
- Low

Oct.

.59(8/5/60)
.84(12/30)
.14(2/18)
.92
.44

.66

.92(4/22/60)
1.19(2/11)
.77(9/2)
1.42
.74

sr. .sm - »—"> "™ "10
f;„ EE=: sas.......
«%= r„r
awes*



.59
£./ «61

EXHIBIT 6, Porf I
L O N G - T E R M B O N D Y I E L D S , L O W E R GRADE
Weekly

'

C O R P O R A T E Baa

S T A T E A N D LOCAL G O V E R N M E N T Baa

•\J
~s

1963




1964

_/

1965

1961

IN?

1996

Exhibit B —

Date

Part II

State and
local govt.
Baa 3/

Corporate
Baa 1 /

Spread between
Aaa and Baa
State and
Corporate
local zovt.

(per cent)
5.36(2/12/60)
5.04
6.18(12/30)
5.05(1/14)
6.60(10/27)
5.81(4/14)

4.46(1/7/60)
3.79
4.55(8/25)
3,78(1/20)
4.64(10/27)
3.85(4/13)

.84
.31
.81
.31
.82
.65

1.08
.39
.62
.31
.81
.37

6.41

4.61

.75

.78

4.64
6.45
6
4.64
6.46
13
r/4*64
6.53
. 20
4.64
6.60
27
Note: For footnotes see Exhibit A.

.73
.70
.70
.70

.81
.81
rZ-72
.72

1959-60 - High
Year end- 1965
1966 - High
Low
1967 - High
Low
Sept. 29
Oct.




S H O R T - A N D I N T E R M E D I A T E . T E R M INTEREST RATES
GOVERNMENT
Weekly

8 - M O N T H BILLS

3-5 YEAR ISSUES

R.R. DISCOUNT RATI
3 - M O N T H BILLS

1963




1984

1885

1808

IBM

Exhibit C -- Part II

Discount
rate
1/
1959-60 - High
Year end - 1965
1966
1966 - High
Low
1967 - High
Low

4.00
4.50
. 4.50
4.50
4.50
4.50
4.00

Spread between yields on
3-mo. bills and yields on
6-mo. bills)3-5 yr. issues

Yields
6-month
bills 1/

3-5 year
issues U

4.59(1/8/60)
4.47
4.80 .
5.52(9/23)
4.39(6/24)
4.81(1/13)
3.41(6/9)

5.07(1/8/60)
4.66
4.92
5.92(9/23)
4.53(6/24)
5.11(10/20)
3.74(6/2)

5.00(12/24/59)
4.90
4.86
5.83(9/2)
4.80(4/8)
5.57(10/27)
4.36(4/7)

.79
.19
.12
.52
.09

1.81
.43
.06
.78
.01

.62
.01

1.61
.02

.58

.98

3-month
bills 2/

Sept.

29

4.00

4.47

5.05

5.45

Oct.

6
13
20
27

4.00
4.00
4.00
4.00

4.47
4.57
4.61
E/4.56

5.04
5.03
5.11
2/5.07

5.44
5.48
5.55
p/5.57

.57
.46
.50
E./ .51

.97
.91
.94
2/1.01

Series of 3-5
2/ Market yield; weekly averages computed from daily closing bid prices
~ year issues consists of selected notes and bonds.
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.




EXHIBIT

D, Port 1

S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES,
B A N K S A N D OTHER P R I V A T E BORROWERS

PRIME RATE
FINANCE COMI
Directly

plated

F.R. D I S C O U N T R A T E

FEDERAL FUNDS

1963




1964

1917

Exhibit D —

Prime rate 1/

Date

Part II

Finance
company
paper 1]

Spread between
3-mo. bills and
Federal funds 3/ finance co. paper

(per cent)
1959-60 - High
Year end- 1964
1965
1966
1966 - Low
1967 - High
Low
Sept.

29

5.00
4.50
5.00
6.00
5.00(3/4)
6.00(1/6)
5.50(10/27)

5.13(1/22/60)
4.06
4.75
5.88
4.75(1/7)
5.75(1/6)
4.38(6/23)

4.00(5/13/60)
4.00
4.63
5.63
3.55(1/21)
5.25(1/6)
3.40(10/27)

5.50

4.88

3.97

1.02
•23
.28
1.08
.20
.97
.21
.41

.41
4.10
4.88
5.50
6
.43
4.06
5.00
5.50
13
.39
3.92
5.00
5.50
20
£/ . 44
E/3.40
5.00
5.50
27
1/ Weekly rate shown is that in effect at end of period. Prime rate is that
~ charged by large banks on short-term loans to business borrowers of the highest
credit standing.
2/ Average of daily rates published by finance companies for directly placed paper
for varying maturities in the 90-179 day range.
3/ weekly average of daily effective rate, which is the rate for the heaviest
volume of purchase and sale transactions as reported to the Federal Reserve
Bank of New York.
Note.-Highs and lows are for individual series and may be on different dates for
different series. For spreads, high refers to widest, and low to narrowest.
Oct.




EXHIBIT E, Pari I

K MARKET
1941-43

of dollars

100

PRICES

80

STOCK MARKET CREDIT

60
•mm

i* tieus

41
h

"l4

10

6

2

4
YIELDS

1963




1965

1117

use

2

/V)

Exhibit E —

Stock price
index I/
1961-62 - High
Low
1966 - High
Low
1967, - High
Low
Aug.
Sept.

Part II

Stock market customer credit
Trading
Common
Bank
Customers'
stock
volume 2/
debit bal- loans to
Total
yields 2/ (millions
"others"5/
ances 4/
of shares)
(per cent)
(In millions of dollars)

72.04(12/8/61)
52.68(6/22/62)
93.77(2/11)
73.20(10/7)
97.26(10/6)

10.1
2.4
10.7
5.0

82.18(1/6)

2.82
3.96
3.01
3.58
3.01
3.58

94.49
95,81

3.11
3.07

9.0
10.3

12.1
6.9

5,602(12/61) 4,259(12/61) 1,418(5/9/62)
3,253(1/61) 1,161(3/8/61)
4,424(1/61)
2,241(7/6)
5,835
7,997
2,097(12/14)
5,169
7,302
2,337(9/27)
9,162
6,825
2,055(2/1)
5,290
7,345
8,869
9,162

6,607
6,825

2,262
2,337

2,431
n.a.
9.9
3.01
97.26
6
2,446
n.a.
10,2
3.05
96.00
13
2,434
10.2
3.08
95.38
20
10.2
3.09
94.96
27
n.a. Not Available. £/ Preliminary, r/ revised.
1/ Standard and Poor's composite index of 500 common stocks, weekly closing prices, 1941-43=10.
~ Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are
for Friday's data only.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing
~ prices by Federal Reserve. Yields shown are for dates on which price index reached its high
or low.
3/ Averages of daily trading volume on the New York Stock Exchange. Year-end figures are averages
"" of daily figures for the year.
4/ E n d 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. Weekly reporting banks account for about 70 per cent of loans to
others. For further detail see Bulletin.
Oct.




EXHIBIT F. PoM I
MORTGAGE AND BOND YIELDS

V

HOME MORTGAGES:

Aaa CORPORATE BONDS:

1111J.LLLI
1959

1960

1961




1962

1963

1964

1965

1966

1967

1968

A>

Exhibit F

Conventional
mort25-year 30-year gages 2/
FHA
mortgages

1957
1958
1959-60
1961-66
1966
1967

-

High
Low
High
Low
High
High
Low

1967 - Apr.
May
June
July
Aug.
Sept

5.63
5.35
6.24
5.43
6.73

n. a.
n. a.
n.a.

1/

6; oo

Part II

Spread between yields
on conv. &
FHA mort-^y
gages

6.63
6.29

6.60
6.40

.47
.15
.23
.25
.30
.11
• 01

6.29
6.44
6.51
6.53
6.60
6.63

6.40
6.45
6.50
6.50
6.55
6.55

.11
.01
-.01
-.03
-.05
-.08

5.44

6.81

5.55
6.30
5.80
6.70

Spread between
yields on new corbonds and
6/ Borate
Seasoned
FHA^mt^i
Seasoned
bonds

Aaa Corporate
Bonds
New

4.94
3.65
5.25
4.12
5.82
5.88
5.20

4.12
3.57
4.61
4.19
5.49
5.65
5.03

1.58
.88
1.69
.77
1.11
1.26
.72

1.03
.05
.73
-.16
.46
.42
.17

5.39
5.66
5.79
5.78
5*89
5.88

5.-11
5.24
5.44
5.58
5.62
5.65

.90
.78
.72
.75
.71
,75

.28

I T

".23

secondary
Lable for
nts,
timing premortgagee.
ibrtgage
nt to
conventional
Beginning
ate, rate
ates this

3/

%

.20

ally;
-annual

2/

4/

.42
.35

m m e o « g . g e e y 6 i " d e d ; t a are fo, 25-year mortgage. through June 1961; 30-y

ear mort-

gages thereafter.
Moody"e'lnvesto^Service.




Monthly averages of dally data.

See Exhibit 4

vv

EXHIBIT F, PO.I IE

C O N V E N T I O N A L M O R T G A G E TERMS

MATURITY

EXISTING

t O A N /PRICE RATIO

EXISTING

1964




1966

1968
" C H A N G E IN SERIES

Exhibit F

t
s -

Part IV

Neia Hommm
Con- Fees &
tract Charges Maturity
Rate
(Per
(Years)
(Per
cent)
cent)
1/

Existing Home#
Loan/
Loan
Loan /
Loan
Con- Fees &
Amt.
Price
Amt. tract Charges Maturity Price
(Per
(Years) Ratio (Thous.
Ratio (Thous. Rate
cent)
(Per of $)
(Per of 1) (P*r
cent)
e/
cent)
1/
e/
centY

6.30
6.39
6.45
.6.49

0.94
1.06
1.08
1.25

23.4
23.3
22.9
23.3

71.8
71.8
71.8
72.4

6.47
6.44
6.41
6.37
6.28
6.29
6.34
6.34
6.38

1.16
1.06
1.05
0.99
0.96
0.93
0-89
r/0.83
0.82

23.8
23.6
23.6
23.6
24.2
24.0
24.2
r/24.0
24.2

73.3
73.8
74.1
73.3
74.8
73.6
74.4
74.3
73.7

New Basis
1966
Sept.
Oct.
Nov.
Dec.
1967
Jan.
Feb.
Mar.
Apr.
May
June
July
8
c"
: £//
Sept.

18.2
18.5
18.0
18.5

0.76
0.78
0.82
0.81

20.2
19.8
20.1
20.2

19.3
6.54
0.78
18.3
6.50
0.75
19.0
6.44
0.77
18.9
6.36
0.72
19.6
6.31
0.68
19.4
6.30
0.67
20.1
6.33
0.70
r/20.3 r/6.38 . 0.71
20.3
6.37
0.71

20.6
20.3
21.0
20.8
21.1
21.4
21.3
21.5
21.3

6.45
6.50
6.54
6.55

71.0
70.3
70.3
70.9

14.4
14.3
14.4
14.7

71.4
15.2
71.6
15.3
71.8
15.4
72.0
15.6
72.3
16.1
72.2
16.6
72.7
16.4
i773.1 r/16.6
72.9
16.4 ,

Note:

Compiled by Federal Home Loan Bank Board in cooperation with Federal" Deposit
Insurance Corporation. Data are weighted averages baaed on probability sample
survey of characteristics of conventional first mortgages originated by major
institutionallender groups, (including mortgage companies) for the purchase of
single family homes in large metropolitan . areas. Data exclude loans for
refinancing, reconditioning, or modernization; construction loans to home-builders;
and—in this exhib i t --permanent loans which are coupled with construction loans
to owner-builders. Related series on conventional mortgage rates only, based
on unweighted opinions of regional-office directors of the Federal Housing
Administration, are available somewhat sooner than the results of the FHLBB-FDIC
survey, and are included—in the case of new home mortgage rates—in Exhibit F
Parts I and II.

1/

Fees and charges--expressed as a percentage of the principal mortgage amount-include loan commissions, fees, discounts, and other charges which provide added
income to the lender and are paid by the borrower. They exclude any closing
costs related solely to transfer of property ownership.

e/

Estimated by Federal Reserve.




EXHIBIT

G, Port 1

YIELDS O N N E W A N D SEASONED C O R P O R A T E B O N D S
6.5

Adjuifed to Aoo Boiii
N E W ISSUES

6.0

5.5

5.0
S E A S O N E D Aaa

4.5

4.0
1964




1965

1966

Exhibit G - II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis

Number
of
Monthly averages:
1967 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.

6
7
20
20
14
23
14
17
10

Number |Am't. of issues Average
of
included (mill.
yield
(per cent)
issues I of dollars)

Am' t. of issues Average
yield
included (mill.
(per cent)
of dollars)
496.0
481.0
1073.0
916.0
570.0
993.0
772.0
1125.0
358.0

5.38
5.20
5.31
5.39
5.66
5.79
5.78
5.89
5.88

4
11
18
25

2
4
5
3

310.0
283.0
220.0
102.0

5.82
5.84
5.92
5.99

Sept. 1
8
15
22
29

3
2
4
3

210.0

5.97
5.83
5.98
5.82
5.89

Aug.

1

93.0
90.0
75.0

100.0

68.0
6.14
3
118.0
6.07
Weekly averages:
6.34
85.0
3
6.34(10/20)
20
High
27
3
295.0
5.99
5.11(2/10)
Low
Note: Averages of offering yields on all new issues of publicly offered corporate bonds rated Aaa,
Aa, and A by Moody's Investors Service (except serial and convertible issues, offerings of natural
gas- pipeline and foreign companies, and bonds guaranteed by the Federal Government) weighted by
size of offering. Before averaging, new offerings are adjusted to a composite Aaa basis by
deducting from the actual reoffering yield the excess of the weekly average yield for seasoned
bonds of the appropriate industry-quality group over the composite average for seasoned Aaarated bonds (Moody's). Averages considered unrepresentative because of special characteristics
of the offerings included are denoted by an asterisk.




Oct.

6
13

3

Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Capital
1967

Corporate 1/
1966 p/

1965

State and local
1966
1967

2r

1965

January
February
March

1,648
1,398
2,317

1,302
1,237
2,446

795
746
1,197

1,467
1,195
1,438

1,188
858
865

804
872
904

April
May
June

1,973
1,474
2,611

1,553
1,058
2,364

1,152
1,691
1,946

1,110
1,210

1,443

1,193
901
I,141

826
924
972

July
August
September

2,466
2/2,440
e/1,675

1,039
1,670
1,382

1,290
850
1,392

925
e/ 800
e/1,250

701
773
1,020

986
648
966

October
November
December

e/2,200
e/2,100

829
1,085
1,635

924
1,325
1,496

ej 925
e/1,000

755
969
940

794
1,021
754

1st
2nd
3rd
4th

5,363
6,058
e/6,581

4,985
4,974
4,091
3,549

2,738
4,789
3,533
3,745

4,100
, 3,763
e/2,975

2,911
3,235
2,494
2,664

2,580
2,722
2,600
2,569

11,421

9,959
14,050
17,600

7,527
11,060
14,805

7,874
e/10,838

6,146
8,640
II,304

5,302
7,902
10,471

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

e/18,002

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

Quarter
Quarter
Quarter
Quarter

5,207
5,913

Year

4,924
4,884
3,969
3,492

2,547
4,348
3,283
3,188

17,269

13,366

e/ Estimated by Federal Reserve.




nee companies.

Exhibit I
New Corporate Security Issues, Type of Iss
and Issuer
(In millions of dollars)
"
Net proceeds
for new capital 1/

Gross proceeds for new capital
Quarter
. or
Month

1966
1967

1966

Total

4,197
3,669

III
IV

Common
Publicly Privately and
pfd.
Offered Placed
stock
2,256
2,047

'I
II
III e/

5,464
6,208
6,836

3,263
4,017
4,576

Oct.
Nov.
Dec.

1,400
892
1,115
1,661

676
499
569
980

1,684
1,418
2,362
2,016
1,519
2,673
2,599
2,572
1,725

745
900
1,618
1,368
965
1,684
1,888
1,813
875

1967 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept,

Memo:
Foreign Mfg.
issues
included

314
375

154
117

1,558
1,232

657

567
417

1,309
918

1,811
1,465
1,596

390
726
664

60
65
225

2,442
3,014
2,877

997 •
1,268
1,140

543
548
571

1,382
1,228
1,994

67
137
111
127

62
66
27
24

643
331
228
673

81
254
320
409

198
97
168
152

460
147
369
401

91
156
143
238
158
330
215
249
200

35
10
15
16
32
17
208
17
n. a.

624
563
1,254
1,128
588
1,298
= 934
1,243
700

220
274
503
394
403
471
446
509
185

293
105
145
107
91
350
40
356
175

511
456
415
343
393
492
1,046
333
615

657
' 256
435
555
848
362
601
410
396
659
496
450
650

1/

Securities and Exchange Commission.




n

1,627
1,247

$ HSBSBSgKSgasrSOURCE:

2/

Other
Public CommuniUtility cations Issuers

Exhibit J
Other Security Offerings
(In millions of dollars)

1967

1966

1965

January
February
March
April
May
June
July
August
September
October
November
December

130

12
40
40
66
69
76
. 72
7
50

218

Jan. - Aug.

989

114
27
13
170
535

Year

January
February
March
April
May
June
July
August
September
October
November
December

38
73

74
68

91
33
74
5
52
.75
2

382

532

597

661

1,251
783
750
650
810
650
407
250

5,551

Reserve.

£/

129
185
325

4,917

1,653

6,806

2,732

--

775
—

239
150
375
375
179

New short-term 4/
Federal A%en6;
State and local Government 5/
308
-179
238
103
179
-174
-24
-552
91
39
387
117
450
-454
-458
-319
-594
-11
718
-559
647
580
827
509
85
109
204
462
515
237
284
93
-82
-334
-128
132
-590
-158
119,
-103
£/ 219
206
-270
-262
408
270
2/ -31
105
-652
152
-161
-309
-555
59
-48
202
-283
274
503
-76
219
-366
-570
879
961
-1,962
1,167
698
1,374
-310
801
1,286
422

MM
Jan. - Aug.

Year

__

503
410
392
699
1,030
1,084
- 799
400
450
800
239




These data
tal issues,
n one year,
political
ge Commission,
and Exchange
from those
whether
issues with
ion notes,
PHA notes
-r & Federal

^

H.14

Exhibit K
Large Long-term Public Security Issue* for New Capital
(Other than 0. 8. Treasury) 1,/
Proceeds of Large Issues Offered
(In millions of dollsrs)

Total

Coroort•te
Bonds
(other than
Convertible
bonds

Stocks

I

i
1966 - Sept.
. Oct. .
Nov.
Dec.
1967 -Jan.
- Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.

627
523
510
1,177
681
842
1,638
1,311
870
1,666
1,340
1,705
794

287
352
363
990
611
709
1,435
956
771
1,072
890
1,288
473

340
116
97
118
30
40
140
213
55
409
317
350
257

State
and
local
governments

Other

611
387
464
779
947
675
669
512
496
875
483
473
847

55
50
68
40
93
63
142
44
185
133
67
65

£/

50
55
60
230
530
1,000
540
391
825
85
221
400

Large Individual Issues Offered October 1 through October 27.
Issuer

Type D

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
net interest cost

Offering
yield

Rating

€fi£B8£fi£e
Lincoln First Group
Columbus & So. Ohio Elec.
ITT
Alabama Power
Columbia Gas
CIT Financial
*United Aircraft
Penn-Dixie
Orange & Rockland
. Utilities
*Southern New England Tel.
and Tel.
Metropolitan Edison
Household Finance
Carolina Power & Light
Northern States Power
-Detroit Edison

Debs.
15.0
1st mtg. bds.
15.0
Coirv. pfd. stk. 100.0
1st mtg. bds.
28.0
Debs.
25.0
Debs.
75.0
Conv. sub. debs.119.8
Conv. debs.
20.0

1992
1997

6-1/4
6-1/4

6.20-6.24

1997
1997
1986
1992
1987

6.56
6-5/8
6-3/8
4-1/2
5

6.42
4.50
5.00

1st mtg. bds.

23.0

1997

6-1/2

6.48

Com. stk.
Debs.
Debs.
1st mtg. bds.

27.0

40.0

1992
1988
1997

6-7/8
6-3/8
6-3/8

6.70
6.49
6.44

Aa

30.0

1997

6.51

6.44

Aa

1st mtg. bds.
Conv. cum. pfd.
stk.




20.0
100.0

96.1

6.33

Aa

6.56

6.60
Ba
Ba

A

:-2
Large Individual Issues Offered October 1 through October 27.

Issuer

Type 3/

Corporate (Cont'd)

Amount
(millions
of
dollars)

.ranscontinental Gas Pipeline 1st mtg. p.l.
bds.
50.0
1st mtg. bds.
15.0
3W England Power
Conv. debs.
20.0
rontier Airlines
Com. stk.
14.5
lannett Co., Inc.
Debs.
250.0
tandard Oil Co, New Jersey
Wisconsin Public Service .
1st mtg. bds.
25.0
20.0
general Telephone of Florida 1st mtg. bds.
Conv. sub. debs. 50.0
)wens-Illinois Inc.

Maturity

Coupon
Offer
rate or
net inter- ing
yield
est cost

Rating

Baa
Aa

1988
1997
1992

6-3/4
6-7/8
6

6.0i

1997
1997
1997
1992

6
6-3/8
6-1/2
4-1/2

6.0b
6.3#
6.5'
4.5

1969-98
1968-87
1969-98
1970-2007-/

5.02
5-1/2
4.19
4.50

87.0
70.0
27.8

20.0

1969-95
1968-87
1968-97
1968-95
1968-87c/
1972-99^'
1968-96

4.41 • 3.50 4.40 Aa
3.30- 4.05 Aaa
4.04
3.20-'4.15 Aa
4.15
3.40 .50 Aa
4.37
3.98
3.25f'4.00 Aa
3.85 4.50 Aa
4.41
4.31
3.354'4.40 A

15.0
35.0

1992
1992

6-1/2
6-1/2

6.7i

Aaa
Aa
A

; State and local Government
tlanta, Georgia
Zity of Cheyenne, Wyoming
;w York City
?enna. State Sch. Bldg. Auth.
AS Angeles Co. Flood Control
Dist.
state of Connecticut
St. Paul, Minnesota
Georgia Education Authority
:w York State
San Francisco B.A.R.T.
Baltimore, Maryland

G.O.
Rev.-Rent.
G.O.
Rev.-Rent.
G.O.
G.O.
G.O.
Rev.
G.O.
G.O.
G.O.

Other
New Brunswick Electric Power
! Comm.
S.F. Debs.
Province of Nova Scotia
Debs.

12.5

20.0

119.1

25.0

25.0
58.0
10.4

3.40-5.00 Baa
4.30-5.50 -4.00-|4.90 Baa
3.80-4.70 —

6.60

6.75

* Rights offering.
1/ Includes corporate and other security offerings of $15 million and over; State and
local security 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.
I
3/ In the case of State and local Government Securities, G.O. denotes general I
obligations; Rev.-Ut., revenue obligations secured only by income from public
utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities;
Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent.,
revenue boads secured solely by lease payments.
4/ Bonds maturing 2007 were not reoffered.
5/ Bonds maturing 1998-99 not publicly reoffered.
j




H.14
Exhibit L
forthcoming Large Long-term Public Security Offering for Vow Capital
(Other than U.S. Treasury)y
Expected Proceeds from forthcoming Large Ieauee
(In millioea of dollers)
Bering month follwllg
date above
State and
Corporate
Other 2/
local mt.
1966 - Sept. 30
687
Oct. 31
397
Nov. 30 > 1,098
656
Dec, 30
1967 -Jan. 31
486
Feb. 28 s1,410
Mar. 31
767
Apr. 30
963
May
31
1,449
June 30
1,636
July 31
1,261
694
Aug. 31
534
Sept. 30

300
140
496
939
780
508
227
326
596
401
512
783

80
530
250
70
100
40
--

100
65

Corporate

1Kubeequent to
date ahoam
State and
local movt.
• 390
175
571
1,154
851
528
247
346
616
402
575
903
889

767
457
1,133
811
706
1,534
SOS
1,262
2,065
1,922
1,576
1,335
1,090

Other 1/
85
35
65
95
545
265
15
85
115
• 70
150
159
126 .

Forthcoming Large Offerings as October 27, 1967.
Isauer

CmfltttS
*Eastern Airlines
Cities Service Co.
Panhandle Eastern.
Pacific Southwest Airlines
Philadelphia Electric
Union Electric
Pennsylvania Power & Light
Long Island Lighting
Natural Gas Pipeline of America
West Penn Power
*Flying Tiger Line
*Flying Tiger Line
SCM Corp.
Wisconsin Electric Power
Utah Construction
Houston Lighting & Power
Pacific Gas & Electric
Northern Natural Gas
Holiday Inns of America




Type

Conv. sub. debs.
Debs.
Debs.
Sub. debs. w. wt«.
Com. stk.
Pfd. stk.
Debs.
Conv. pfd. stk.
1st mtg. p.,1. bds.
1st mtg. bds.
Equip, tr. cert.
Conv. debs.
Com, stk.
1st mtg. bds.
Conv. sub. deb.
1st mtg. bds.
1st mtg. bds.
Debs.
Com. stk.

Amount
(millions
of
dollars)
75.0
100.0
40.0
30.0
40.0
30.0
40.0
30.0
50.0
25.0
45.0
27.0
30.0
46.0
25.0
35.0
80.0
40.0
20.0

Approximate date of
offering

October
October
October
November
November
November
November
November
November
November
November
November
November
November
November
November
November
November
November

30 31
31
1
l(rts. exp.)
9
9
10(rts. exp.)
14
14
15
15
15(rts. exp.)
15
16
20
21
21
21(rts.exp.)

Forthcoming Large Offerings as of October 27, 1967 (Cont'd)

Type

Issuer

Amount
(millions
of
dollars)

Approximate date of offering

Corporate (Cont'd)
Conv. sub. debs.
Conv. sub. debs.
Conv. sub. debs.
1st mtg. bds.
Com. stk.

*Santa Fe Drilling
. *R.H. Macey
•Twentieth Century-Fox
Montana Power
Ling-Temco-Vaught

17.0
23.0
28.1
30.0
76.0

November 22
November (rts. exp.)
Indefinite (rts. exp.
Indefinite
Indefinite

State & local Government
State pf Delaware
Nashville & Davidson Co.
Metro Government
Los Angeles, Calif., Dept.
of Water & Power
Minnesota State College
Board
Jackson County, Missouri
State of California
•Newark, New Jersey
Montgomery, Alabama
•State of Mississippi
West Virginia
State of Ohio
•State of Hawaii
Austin, Texas
•State of Minnesota
Kentucky Turnpike Auth.

G.O.

17.5

October

G. 0.

12.0

November

7

November

8

Rev.-Rent.
Rev.-Rent.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.-Rent.
G. 0.
Rev.-Q.-Ut.

,

24.0

31

13.0
12.7
100.0
15.0
15.0
130.0
20.0
50.0
20.0
10.0
. 30.0
120.0

November 8
November 8
November 14
November 14
November 14
November 14
November 14
November 16
November 16
November 16
November 22
Indefinite

6o;o
75.0
15.0

November 1
November 14
Indefinite

Other
Tennessee Valley Authority
•Province of Ontario
New Zealand

Bonds
Debs.
Bonds

•--Included in table for first time.
over; State and local Government
1/ Includes corporate and other issues of $15 million
issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and De izelopment
issues and non-guaranteed issues of Federal Agencies,
Note: The New York State Dormitory Authority's $27.7 million issue — scheduled for
October 24 — was cancelled and Tenneco's $203.0 million rights offering of convertible
debentures — scheduled to expire November 13 -- warn cancelled.




n$
Exhibit H
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:

Sale Date

Amount
(millions
of
dollars)

Public Offerings

Issuer and Description of Issue
A. Sold Sept. 1 through

' '- x

October ?7, 1967.

•

-

9/6

25.0

Kingdom of Denmark*** — 6-3/47= external loan
bonds maturing 1982, reoffered to yield 6.85%.

9/7

15.0

Finland — 7% Bonds maturing 1987, reoffered to t
yield, 7.22%.

9/20

50.0

Quebec Hydro-Electric Commission — 6-1/2%
debentures maturing 1992, reoffered to yield
6.50%.

•
1

9/26

25.0

Montreal Catholic School Commission — 6-3/4%
debentures maturing 1992, reoffered to yield :
6.88%.
„

9/28

35.0

Alberta Government Telephone Commission —'6-1/
debentures maturing 1992, reoffered to yield
6.35%.
•

10/4

15.0

New Brunswick Electric Power Commission 6-1/2%
S.F. debentures maturing 1992, reoffered to
yield 6.60%.

10/17

—35.0

November 14
Ittdefinite

75.0
15.0

Province of Nova Scotia -- 6-1/2% of S.F.
debentures maturing 1992, reoffered to
yield 6.75%.
B. Prospective Offerings
Province of Ontario
New Zealand -- Bonds ***

* - Included in table for first time.
** - Issues sold to investors outside of U.S.
*** - issue subject to interest equalization tax.




M-2
PART lis

Date Reported

9/8

Private Placements - Reported Sept. 1 through Octobe r 27, 1967.

Amount
(millions
of
dollars)
41,7

Issuer and Description of Is si

St. Anne — Nackawic Pulp & Paper Co., Ltd. 1st mtg.
notes maturing 1987 — no information available on
takedown.

9/18

3.8

Compania Desarrolladora Panamena, S.A. — 5-1/4% notes
maturing 1987 -- no information available on takedown.

9/25

6.5

Northern & Central Gas Co. Ltd., -- 6% sub. notes
maturing 1987 — no information available on takedown.

9/25

18.0

Traders Group,. Ltd. — collateral notes m aturing 1987 -no information available on takedown.

10/17

13.2

British Columbia School District Capital Financing
Authority — S.F. debentures maturing 1987.

10/23

118.0

Jamaica Alumina Security Co. Ltd.--6-1/8% notes
maturing 1992 -- no information available on
takedown.

Notes For retrospective data on aggregate foreign corporate and government security
offerings in the United States see Exhibits.I and U. There is no simple relaitionship
between the data shown in the Exhibit and that shown in Exhibits I and J hecause the latter
includes privately placed securities in the period in which funds are actually taken down
but only in the amount of takedown while the placements shown in this exhibit are included
when reported, frequently with little or no information concerning timing of takedown,
placement
Full or partial takedown may take place both prior and subsequent to the date
is reported.
I