Full text of H.16 Capital Market Developments : October 4, 1965

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Nofor

Pnh 1 icatiqd—^ECONTEOLTiKD AFTER SIX

H . j4
|

MONTHS

October 4, 1965.

_

/fcAPITAL MARKETS DEVELOPMENTS
]
IN l'HE UNITED STATES
(Including Savings Flows in August)

I
i
|
Corporate aftd municipal bond markets. The volume of public
offerings of corporate securities will decline this week to about 4/5 of
last week's substantial total, with a $40 million offering of Columbia
Gas System accounting for one-third of the total. The new supply of
municipal bonds, on the other hand, will be little changed from the
previous week's below-average volume.
Long-term Public Security Offerings 1/
(In millions of dollars)
Corporate
New Capital | Refunding

State and local government
New Capital
| Refunding

Sold:
52 week avg.
Sept.
Oct.

24
1

109
149 r/
150

3
49

186

15

301 r/
118 r/

6 r/
14 r/

Scheduled:
Oct.

8

120

118

1/ Federal Reserve estimates based upon published reports of issues sold
and scheduled for offering; corporate rights offerings are included
as of the date subscription rights expire.
Capital markets in September. Corporate security offerings
for new capital amounted to $1,250 million in September, one-tenth more
than a year earlier. Public offerings of bonds totaled around $630
million--compared with $376 million in September 1964.
Heavy demand for new issues around mid-month cleared out
syndicate balances and resulted in a slight drop in new offering yields.
But investor interest proved sluggish for issues offered late in the
month via competitive bidding. The new corporate bond yield series,
when adjusted to a Aaa basis, was 7 basis points below the late August
high, but a widening in spreads among various quality issues accounted
for this decline.
Individual offering yields on new issues in late
September w e r e about the same as those on comparable issues in late
August. At month's end, yields on recently distributed bonds were
advancing and those on seasoned issues had reached their highest level
since early 1960.




H. 14

-2-

Yields in Securities Markets
Level latest week
(per cent)
High-Grade
Notes and Bonds
. Corporate
New
Seasoned

4.53

+ 1

U. S. Govt.
Long-term
3-5 year

4.29
4.24

+ 2

State and local Govt.
Moody's Aaa
Standard and Poor's
high grade
Money Market
Federal funds
Treasury bills
3-month
6-month

Da te
Offered

Change from
preceding week
(basis points)

60.0

9/29

18.0

9/30

30.0

9/30

10.0

3.31
3.41

3.48

-64

4.01
4.17

+ 7
+ 7

Corporate Bonds Still in Syndicate
Reoffering
yield

Amount
(millions of $)

9/21

+ 4

Public Service Elec. & Gas Co.
4 - 3 / 4 U - 1995
Arvin Industries Inc.
5.10's - 1990
Pacific Power & Light Co.
5's - 1995
Sierra Pacific Power Co.
5's - 1995

Estimated
Rating Proportion

4.70

Aa

1/2

5.10

Baa

9/10

4.96

Baa

1/3

4.94

Baa

1/3

Blue List of Municipal Dealers' Advertised Inventories
(Millions of dollars)
Latest Date
754 (9/30)

End of Previous W e e k
780

Recent High
901 (6/4)

In the municipal market, about $950 million in bonds were
offered during the month to obtain new capital, a record for the month
and 5 per cent more than a year earlier. With demand for the bulk of
new issues no better than fair, dealers were forced to cut prices sharply
on their large volume of advertised inventories
to keep them from
swelling above $800 million. Yields on seasoned bonds also rose sharply
during the month--those on Aaa-rated issues advanced 14 basis points to
FRASER
3.31 per cent, their highest level since late 1961.

Digitized for


H. 14

-3-

In the stock market, prices advanced appreciably in unusually
active trading. Standard and Poor's composite index of 500 stocks
closed at 89.90 on October 1, 3 per cent above the end of August level,
but almost one per cent under the all-time high of 90.65 reached on
September 28. Trading volume for the month averaged a record 7.4
million shares a day.
Estimated security volume in October. Corporations are
expected to publicly offer or privately place around $1.0 billion in
securities to obtain new capital in October--slightly more than a
year earlier. Meanwhile, municipal bond sales for the month are
estimated at $0.7 billion--one-eighth less than in like period last
year.
Savings flows in August. During the month of August, growth
in income-yielding claims on depositary-type savings institutions
amounted to $2.4 billion--a record for the month and one-fifth greater
than in August 1964. Time and savings deposits at commercial banks
accounted for all of the year-over-year gain as it has in most other
months this year. Expansion in both savings capital at savings and loan
association and regular deposits at mutual savings banks was smaller
than a year ago.
After rough allowance for seasonal factors, the August inflow
of savings capital at savings and loan associations was the largest
thus far in 1965 and about the same as the monthly average for all of
1964.
Net Increase in Savings Capital at Savings and Loan
Associations
(In millions of dollars)
Unadjusted data
Current year
1965 - May
June
July
Aug.
8 - month total

792
1,603
- 432

.

4,317

Change from
previous year

Percentage
change

-200
-162
-451
-163
-1,860

Seasonally adjusted data
Current year
1965 - May
June
July
Aug.




791
658
622
880

Previous year
983
903
977
1,069

-20
-10
-14
-30

H. 14

-4-

The net inflow of regular deposits at mutual savings banks
was substantially smaller than last August's inflow, which reflected
extensive promotional efforts to attract funds from the Treasury's
maturing "magic fives".
Net Change in Regular Deposits at Mutual Savings
Banks
(In millions of dollars)
Unadjusted data
Current year
1965 - May
June
July
Aug.
8 - month total

Change from
previous year

188
436
212
210
2,106

Percentage
change

-82
-42
-72
-135
-457

-30
- 9
-25
-39
-18

Seasonally adjusted data
Current year
1965 - May
June
July
Aug.

238
235
363
312

Previous year
316
294
423
439

Inflows of time and savings deposits at commercial banks in
August totaled $1.6 billion, over three-fourths more than in August
1964. During the first eight months of this year, growth in these
deposits exceeded tha
for the comparable 1964 period by $5.0 billion.
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.




j LONO-TIRM B O N O YlllDS, HIOH •OBADI
i W..kly

Exhibit A —

Corporate
Aaa U

Part II

U. 8. Govt,
long-term 2J

State and
local
government
A«« 3/

(per cent)
1959-60
1961-62
1962-63
1964

-

High
High
Low
High
Low
1965 - High
Low

t i l

Sept. 3
Sept. 10
Sept. 17
Sept. 24
Oct.
1 £/

4.51
4.52
4.52
4.52
4.53-

m

titoleZisZei)
4.19 ( 3/29/63)

t

W

3.85 (13/28/62)

t

s

m

\ - . w m
2.88(13/9/62)
3.16(3/26)
2.99(12/31)

Spread between
• V- 8.8« gOTtt
fiffrt*
rat#
sState and
Corporate
Aaa
I local
X
—All
.59
.57

.92
1.04

.80

1.14

ts 1%;

SB

.34
.24

.94

4.22

3.16

.29

1.04

k.93
4.25
4.25
4.29/

3.21

.29

3.25
3.31
3.31/

.27
.27
.24

1.02
1.00
.94
.98

Preliminary,.
Weekly average of daily figures Average term of bonds included is 22-24 years#
Weekly average of daily figures, The aeries includes boAds due or callable in 10 yetrs or more.
Hoi

series. Tor spreads, high refers to widest, and lor to narrowest.




IXHItlT I, Fen 1

Weekl,

- COIFOBATI I n

X

x

fJ\

^

V'x-

—

>^4. 11111(1,
11*0

IMII

—

-

"

i

M M 1 M 1 M 1M M 1 1 1 1 M i1 i i i i i i i ii i

1**1

»»41

tt*3

1t*4

lt*l

Exhibit B -- Part II

Corporate
Baa 1/

State and
local govt.
Baa 3/
(per cent)

1959-60 - High
Year end - 1961
1962
1963
1964
1965 - High
Low

v

Sept. 3
Sept. io
Sept. 17
Sept. 24
Oct.
1 jg/

Note I

Spread between
Aaa and Baa
State and
Corporate
local govt.

5.36 (2/1^/60)
5.10
4.93
4.85
4.80
4.92 (9/10)
4.78 (3/19)

4.46 (1/7/60)
4.04
3.57
3.60
3.51
3.65 (9/30)
3.40 (2/11)

4.90

3.56

.39

.38

3.65
3.65

:l§
.39
.38

:5Z

4.91
4.91-

T o r f o o t n o t e s aee Exhibit i .




.84
.66
.70
.48
.37
.41
.35

1.08
.73
.63
.49
.52
.52
.34

.34
.34

IXHISIT C, farl I
S H O R T . A N D I N T I R M I D I A T I - T U M INTIRIST R A T # *
GOVERNMENT
Weekly

Exhibit C — Part I I

Discount
3-month
ra te
bills 2/
1/

Da t e

1959-60 - High
Year end - 1961
1962
1963
1965 Low

Yields
6-month
bills 2/
(per cent;

3-5 year
issues 2/

Spread between yields on 3month bills and vields on
6-mo. bills13-5 vr. Issues

4.00
3.00
3.00
3.50

4.59(1/6/60) 5.07(2/8/60)
2.90
2.66
2.93
2.89
3.64
3.52

5.00(l$/24/M)
3.81
3.41
4.07

.79
.24
,04
.13

i-88
4.00

2:8? ( l o / D 2:?? ( l o / D
3.76 (6/25)i 3.82 (6/25)

UO/D
4.04 (1/22)

':1S
.03

4.22
4.23
4.22
4.24
4.30

.13
.14
.16
.16
.16

Sept. 3
4.00
Sept. 10
4.00
Sept. 17
4.00
Sept. 24
4.00
/Oct.
l£/ ' 4.00

3.87
3.89
3.88
3.94
4.01/

4.00
4.03
4.04
4.10
4.17/

1.81
1.15
.52
.55
.24
.38

.35
.34
.36
.30
.29

1/ Weekly rate shown ie that in effect at end of period at the federal Reserve Bank of Mew Yoifc.
y Market yields weekly averages computed from daily closing M d prices. Series of 3-8 year issues
consists of selected notes and bonds•
Note.—Highs and lows are for individual series and may be on differsnt dates for different series.
Tor spreads, high refers to widest, and low to narrowest.




SHORT- AND I N T I R M I D I A T I - T I R M INT
BANKS AND OTHIR FRIVATI I O I R O W I R I

We.My

1
K
V
C
'
rffIII 1
If "
n

|

COUNT IATI
"W Yerk
A A

c

i

j t "

V

i

| "yll

Y '
MOIIAl
lll.«ll».FUNDI
».i.

'I

iiiiiiii iiiiiiiiiii
l»*t
1t43
E x h i b i t D -- P a r t II

1**0

Prime rate

Da te

1/

If*4

Finance
company
Federal funds 3/
paper
2/
(per c e n t )

1959-60 - High
Y e a r end - 1961
1962
1963
1964
.
1965 - Hig i
Low

5.00
4.50
4.50
4.50
4.50
4.50
4.50

5.13 (3/23/60)
3.00
3.19
3.88
4.06
4 . 2 5 (10/1)
4.00 (2/12)

4 . 0 0 (5/13/60)
2.88
3.00
3.50
4.00

Sept.

4.50
4.50
4.50
4.50
4.50

4.25
4.25
4.25
4.25
4.25

4.05
4.06
4.12
4.12
3.48

Sept.
Sept.
Sept.
Oct.

3
10
17
24
1 .£/

4 . 1 2 (9/24)
3.48 (10/1)

ii i i i M" i i' i Ii

Spread b e t w e e n
3 - m o . bills and
finance co. p a p e r

1.02
.34
.30
.36
.23
.47
.10
.38
.36
.37
.31
.24

] / Weekly rate shown is that in effect at end of period* Prime rate ie that charged by large banks
on short-term loans to business borrowers of the bluest 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.
Hotel—flighs 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.




17

ixHiBii i. r..i i
1
STOCK M A R K I T

Exhibit B -- Part II

Common
Stock price
index 1/

Date

yields 2/
foer cent)

Trading
volume 2/
(millions
of shares)

Stock mar ket customer credit
Bank
Customers'
loans to
debit bal"others"
5/
ances 4/

Total

(In millions of dollars)
5,602(13/61)
4,424(a/61)

4,259(12/61)
3,253(1/61)

1,418(5/9/62)
1.161(3/8/61)

4.7
4.7

7,242
7JD53

5,515
5.099

1,727
1.974

8.5
3.8

7,085
6,872

5,129
4,863

1961-62 - High
Low

72.04(1^/9/61)
52.68(6/23/62)

2.80
3.96

10.1
2.4

Year end
1963
1964

74.44
84.75

3.13
3.02

90.10 (5/14)
83.06 (6/25)

2.89
3.15

1965 - High

2,038 (9/22)
1,848 (3/3)

Aug.
4,886
1,988
86.49
3.06
5.0
6,874
Sept.
2.98
89.39
7.4
Sept. 17
90.05
7.0
2.94
1,987
Sept. 24
2,038
, 90.02
8.2
2.95
1 r 89.90
Oct.
8.5
2.95
n.a.
a.a.—Not a m i l a b l e . p / Preliminary.
y Standard and Poor's composite index of 500 oootaon stocks, weekly closing prices, 194V43-10.
Monthly data are averages of daily figures rather than of rridsy,s only. Highs and lows are for
Friday's data only,
2/ Standard and Poor's composite stook yield based on Wednesday data converted to weekly closing
prioes by federal Reserve. TdeMs shewn are for dates on which price index reached its high

£/

3/ Averages of daily trading voluas on the Mew Yetfc Stock exchange. Yeaz^end figures are averages of
. dally figures for the yeart
V End of month figures for o n bar firms of the New York Stock exchange which carry margin accounts |
excludes baitnoes secured by 0. 3. 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.




M O R T G A G E A N D B O N D YIELDS ^
1

1

1

1

• 11111111111M1111111M

i

HOME MORTGAGES:

"
/

\

\J

7

i

1

1

1961

1962

Exhibit F

Part II

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

miiiimiliiiMiMiu
19661

Aaa Corporate
Spread between yields
on conv. &
Seasoned^
FHA raort- .
gages

Spread between
yields on new coroorate bonds and
FHA mtge.[Seasoned
4/
1 bonds
—

5.76
5.44

5.20
6.00
5.55
6.30
5.95
5.80

.47
.47
.15
.23
.37
.25

3.08
4.94
3.65
5.25
4.72
4.12

3.08
4.12
3.57
4.61
4.52
4.22

.76
1.58
.88
1.69
1.48
.82

1.03
.05
.73
.39
-.16

5.43
5.43
5.44

5.44
5.44
5.45

5.80
! 5.80
I 5.80

n.a.

n.a.

.36
.36
.35
n.a.

4.58
4.61
4.63
4.67

4.46
4.48
4.49
4.52

.86
.83
.82
n.a.

.12
.13
.14
.15

- Low
- High
-Low
- High
- High

4.68
5.63
5.35
6.24
5.72
5.43

1965 - J u n e
July
Aug.
Sept.

i

i

1
I960

1956
1957
1958
1959-60
1961-65

—

'
i A n CORPORATE BONOS:

n.a.

than bonds. Generally, bonds pay interest semi-annuallyi mortgagee, monthly. Mortgage yields, If
computed a# equivalent to a send-*nnual interest investment, lould be • lightly higher than given 1»
the table•
2/ Based on JHA-field-offioe opinions about average bid prices in the primate secondary market tor n**hoa* mortgages for immediate delivery. Separate data available for 25-year and—beginning July 1961r—
30-year mortgagee with mIwIwum doxnpaymants, weighted by probable volmie of transactions* Yields oos>puted by TEA, assuming prepayment period of 12 years far 25—year mortgages and 15 years for 3 0 year mortgages* Over the period ftp nhioh they oan be compared, the movement of the two mortgage
g e l d series has been similar. Dae hod lino o indicate periods of adjustment to changes in contractual
y

Based on TEA field office opinion on typical infcereot rates (rounded) on ocnventi onal ifirst mortgages
prevailing in the market areas of insuring office oitieu. Beginning with April I960, rate relates
only to new^ODB mortgages! prior to that date, rate related to both new as w l l a# •zlitlii|-ooni
mortgages. Dashed line indicates this change in the series.
TEA. mortgage yield data are for 25-year mortgages through June 1961; 30-year mortgagee thereafter*
See note for Exhibit G.
Moody's Investor Service. Monthly averages of daily data* See Exhibit A*




• XMtSIT e, Fen 1

Exhibit 0 - Part II
Yields on Mew Corporate Bond Issues Adjusted to an Aaa basis
Am't of issues Average
yield
included (mil,
of
/per cent)
issues of dollars)

Number Aa't of issues Average
yield
included (mil.
of
foer cent)
issues of dollars)
Weekly averages;
1965 - Jan
\Feb.
Mar,
Apr.
Hay.
July
Aug.
Sept.

July

3
3
7
4
8
4
8
7 '
7

Weekly Average
1965 - High
Low

M




94.0
111.0
157.8
115.0
315.0
100.0
278.0
166.5
288.5

4.42
4.41
4.45
4.46
4.51
4.58
4.61
4.63
4.67

4.71 (8/27)
4.33 (1/29)

2
9
16
23
30
Aug. 6
13
20
27
Sept. 3
10
17
24
Oct. 1

m

121.0

102.0
55.0

80.0
17.0
19.5

50.0

.43.5
65.0

120.0

60.0

4.67*
4.56
4.58
4.58
4.64
4.67*
4.71
4.69
4.70
4.67
4.64

H. 14

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

New Can ital
Corporate
1964 -

1965
January
February
March

795
746
1,197

April
May
June

i:«8

July
August
September

1,94.6

e/1,250

October
November
December

e/1,000

1st
2nd
3rd
4th

2,738
4,789
e/3,328

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

*
.

7,527
e/10,855

•
:

1963

1965

State and Local 2 /
1963
1Q64

938
700
778

613
594
1,144

JD/803
fi/872
jg/946

947
776
810

732
746
976

2,237
1,P95
1,405

930
904
1,013

fi/824
5/921

A/943

1,242
667
903

869
866
930

812
680
1,130

676
637
795

a/950

' 906

e/650
e/?50

l786
892

680
708
449

9%)

1,013
819
1,415

e/700

6#
1,642
2,416
4,738
2,621
3,264

2,3bl
2,847
2,109
3,246

,801
529
i9f,8
1
t
2,553
2,8U
2,578
2,2 78

7,153
9,775
13,038

5,198
7,307
10,553

E/ 2,621
EZ 2,688
e/ 2,550

E / 5,410

1,051
729
416
2,454
2,665
1,837
2,197
5,118
6,955
9,151

5,345
7*923

10,201

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

quarter
quarter
quarter
quarter

2,547
e/4,389
e/2,978

Year
e/
e/
1/
2/
3/

.

2,043
4,283
• 2,482
, 3,006

.11,813

2,284
2,529
1,768
2,854
9,434

—;

i

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




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

Quarter
(

or

'

Month

"V

Gross proceeds for new
capital and refunding 1/
B<Dnds
Common
Total Publicly Privately and
Offered
Offered
Pfd.
stock

Net proceeds for
new capital 1/ 2/
Memo:
Foreign
issues
included

Mfg.

Public Communi- Other
Utility cations issuers

$ 1963 - I
te
II
:
• HI
IV

2,700
3,634
2,436
3,466

1,108
1,389
898
1,319

1,306
1,820
1,251
1,780

287
424
287
367

128
434
109
47

947
591
806
968

326
794
285
530

236
221
150
118

842
1,241
868
1,629

' 1964 - I

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
V*
III
\
IV

3,007
5,043

906
1,864

1,673
2,259

429
920

243
215

1,072
1,679

541
609

91
255

1,034
2,246

f

1964BE/Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

2,295
1,181
1,489
902
748
1,226
1,036
727
1,805

383
470
468
234
183
376
181
30
320

541
563
651
443
453
693
642
645
1,342

1,372
148
370
225
112
156
213
52
143

34
36
35
24
27
44
82
29
116

186
206
332
150
176
234
250
203
607

151
441
264
207
138
296
297
40
172

1,379
27
260
23
16
19
82
21
32

521
421
550
432
349
580
323
405
831

1965 - Jan.
Feb.
Mar.
Apr.
May
June
July E./
Aug. e/
Sept.
Oct.
Nov.
Dec.

858
791
1,358
1,233
1,773
2,038
1,379
960

161
187
557
422
694
748
542
380

565
450
658
648
630
980
717
500

131
155
143
162
449
309
121
80

49
51
143
33
49
134
27

385
192
494
540
698
441

97
215
229
176
248
184

417
300

204
200

21
44
26
15
143
98
102
20

292
295
448
422
602
1,223
505
330

llr
III

•p

A

IV

|

t

f
}

V"

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




Exhibit J
Other Security Offerings
(in millions of dollars)

1965
January
February
March
April
May
June
July
August
September
October
November
December
Jan. - Aug.

Gross Long-term 1/
Foreign liovernment 1/
1965
1964
1963

218
—

38
73
—

sJ
e/

91
15
50

e/493

Tear

4
82
69
30
75
26
20
13
7
180
72
58

232
133
76
57
114
11
63
83

319

769

636

Federal Agency 3/
1963
1964

148

129
185
325

—

—

—

—

275
260
160

459

—

—

510

174
200

775
J2Z —
e/ 239

——

—
—

186

—
—

—

—

2

—

e/1,653

771

695

793

1,205

1,167

New sh<art-term 4/
Federal Agency 3/
State and Local Government 5/
January
February
March
April
May
June
July
August
September
October
November
December

238
91
-458
647
204
-82
119
£/ 409

Jan.-Aug.

£/ 1,168

Tear

103
236
-407
442
81
-80
-9
127
176
7
-15
-208

-339

593

799

453

75
272
-367
589
-30
-10
62
208
-173
259

-J
-332
-255
-161
202
195
319
415
326
258
123
-102
551

-137
-174
117
-11
509
237
132
206

-308
-336
23
97
183
239
-333
167
1
125
113
-3

879

-268

709

368

1,539

146

692

.i

— J

from those in Exhibit H in that refunding issues, as well as new capital issues, are
included. Long-term securities are defined as those maturing in more than one year.
2/ Includes securities offered in the U.S. by foreign governments and their political
'<
subdivisions and international organizations. Source: Securities and Exchange Commission**^,
Issues not guaranteed by the U.S. Government. Sources Long-term, Securities & Exchange N;
Commission; short-term, Treasury Dept. & Fed. Reserve. j^/These data differ Crom those in ^ ^
Exhibit H and above in that they represent new offerings less retirements, whether from J y !
the proceeds or refunding issues ot from other funds. Data include only issues with
^
original maturity of one year or less. ^/Principally tax and bond anticipation notes,
^
warrants, or certificates and Public Housing Auth. notes. In some instances PHA notes
included may have a somewhat longer maturity than 1 year.
Source; Bond and Buyer & Fed,.




Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than D. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollsrs)

Total

1964 - Sept.
Oct.
Nov.
Dec.
1965 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.

Corooriite
Bonds
Convertible
(other thsn
convertibles)
bonds

376
187

2.69
108

Stocks

25

81
79
--

--

--

--

230
139
217
513
307
928
801
477
299
530

200
115
131
233
210
560
343
455
211
530

30
--

State
and
local
governments
558
419
226
541
419
446
395
411
492
377
655
• 312

15
86

280
97
53
320
22
62

315
138

--

--

--

--

26

'

Other

2/

15
502
15
--

•

563

235
130
19
260
40
340
20
50
170

Large Individual Issues Offered During September

Issuer

Coroorate
Georgia Pwr. Co.
Consol. Nat. Gas Co.
Ala. Pwr. Co.
Tennessee Gas Trans. Co.
Penna. Elec. Co.
Southern Bell Tel. & Tel /
Co.
Household Finance Corp.
Commercial Credit Co.
Arvin Industries, Inc.
Pacific Pwr. & Lt. Co.




Type

1/

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
net interest cost

Offering
yield

Rating

1st mtg. bds.
Deb.
1st mtg. bds.
Deb.
Deb.

36.5
25.0
40.0
60.0
20.0

1995
1990
1995
1985
1990

4-7/8
4-3/4
4-7/8
5-1/4
5

4, 78
4.72
4.83
5,25
4.85

A
Aa
A
Ba
A

Deb.
Deb.
Notes
S.F. deb.
1st mtg. bds.

100.0
125.0
75.0
18.0
30.0

. 2000
1993
1987
1990
1995

4-3/4
4-7/8
4-7/8
5.10
5

4. 68
4.91
4.91
5.10
4.98

Aaa

Baa
Baa

K-2
Large Individual Issues Offered During September (Cont'd)

Issuer

State and Local Government
State of North Carolina
State of New York
Cuyahoga Co., Ohio
State of California
Penna. Gen. State Auth.
State of New Hampshire
Florida Dev. Comm.
Los Angeles Co. Flood Control
Dist., Cal.
Commonwealth of Massachusetts
Saginaw-Midland Mun. Wtr.
Supply Corp.
New Haven, Conn.
State of Ohio
La. Capital Construction &
Imp. Comm.
Honolulu, Hawaii
Detroit, Michigan
St. Louis, Mo.
Salt River Proj. Agr. &
Imp, Pwr. Dist., Ariz.
Nassau Co., N. Y.

Type 3/

Amount
(millions
Maturity
of
dollars)

Offering
yield

Rating

1966-82
1966-85
1966-85
1967-91
1967-86
1966-92
1966-95
1968-92

3.00
3.05
3.14
3.42
3.36
3.51
3.13
3.74

2.35-2.97
2.40-3.10
2.50-3.20
2.70-3.48
2.70-3.40
2.80-3.60
2.40-3.30
3.00-3.75

Aaa
Baa

Rev.-Q.-Ut. 40.0
34.7
G.O.

1966-95
1966-2014

3.44
3.31

2.75-3.504/
2.50-3.50

Aa
Aa

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

13.7
10.0
50.0

1968-97
1967-85
1966-75

3.55
3.21
3.21

2.80-3.60
2.65-3.25
2.45-3.15

Aa
Aa
Aa

Rev.-S.T.
GO.
G.O.
G.O.

25.0
10.0
10.4
15.0

1966-90
1968-85
1966-90
1967-85

3.64
3.44
3.53
3.29

2.60-3.705/
2.95-3.50
2.65-3.606/
2.65-3.28

A
Aa
Baa
Aa

Rev.-Ut.
G.O.

14.0
30.0

1968-92
1966-94

3.51
3.48

2.90-3.607/
2.60-3.55

A

G.O.
G.O.
G.O.
G.O.
G.O.
Rev.-Rent.
G.O.
Rev.-S.T.

25.0
72.0
12.5
80.0
25.0
50.0
26.1
19.5

Coupon
rate or
net interest cost

Aaa
Aa
Aa
Aa
Aa
--

Other
-1985
20.0
Bonds
6
6.04
European Investment Bank
1967
150.0
Bonds
4-1/2
Federal Nat'l Mtg. Ass'n
4.50
-*--Rights offering.
n.a.--Not available.
1/ Includes corporate and other security offerings of $15 million and over; State and
local government 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.
3/ In the case of State and local government securities, G.O. denotes general obligations;
Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut.
revenue bonds secured only by revenue from quasi-utilities; Rev.-S.T., revenue bonds
secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely
by lease payments.
4/ Bonds maturing 1966 not publicly reoffered.
5/ 1-3/8% bonds maturing 1990 not publicly reoffered.
6/ 0.1% bonds maturing 1988-90 reoffered to yield 4.35 per cent.
7/ A n additional $13.5 million in bonds were sold to refund outstanding bonds.




i
i

H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treaaury) 1/
Expected Proceeds from Forthcoming Large Isauea
(In millions of dollars)
I
During month following
date shown
State and
Corporate
Other 2/
local eovt.
- Sept.
Oct.
Nov.
Dec.
- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.

30
30
30
31
29
26
31
30
28
30
30
31
30

186
--

90
105
169
407
267
852
765 .
363
193
312
206

500
254
360
306
242
314
212
411
328
397
248
404
269

Corporate

--

186

--

--

25
215

130
105
253
504
792
852
923
410
240
636
303

--

60
25
70
20
--

15

Subsequent to
date ahown
State and
local govt.
626
549
563
435
382
599
373
635
474
524
352
450
331

Other 2/

--

25
215
---

60
25
70
20
--

15

Forthcoming Large Offerings as of Oct. 1

j

Iaauer

Rochester Tel. Corp.
'In'diana Bell Tel. Co.
Kansas City Power & Lt. Co.
Columbia Gas System
-Northwest Bancorporation •
Panhandle Eastern P. L. Co.
Jersey Central Pwr. & Lt. Co
Canada Dry Corp.
West Penn. Power Co.
Macy Credit Corp.
Great Western Financial Corp
General Tel. Co. of Calif.




Type

Com. stk.
Deb.
1st mtg. bds.
Deb.
Deb.
Deb.
1st mtg. bds.
Deb.
1st mtg. bds.
Deb.
Deb.
S. F. deb

Amount
(millions
of
dollara)

16.0
25.0
15.0
40.0
30.0
40.0
20.0
20.0
20.0
25.0
22.0
30.0

Approximate date of
offering

Oct. 4 (r
Oct. 6
Oct. 6
Oct. 7
Oct. 14
Oct. 17
Oct. 26
Oct.
Nov. 23
Indefinite
Indefinite
Indefinite

H
L-2
Forthcoming Large Offerings as of Oct. 1

Issuer

Type

Amount
(millions
of
dollars)

(Cont'd)

Approximate date of
Offering

4

State and local Government
El Paso, Texas
Met. Seattle, Wash.
Austin, Texas
State of Maryland
"New York City, N.Y.
New York State Housing Fin. Agency
Los Angeles, Calif.
Dade County, Fla.

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

10.5
10.0
14.0
43.6
105.8
84.7
16.5
46.0

Sept.
Oct.
7
Oct.
7
Oct.
19
Oct.
20
Oct.
20
Nov.
16
Indefinite

Other
^Republic of Finland

Bonds

15.0

Oct.

14

^--Included in table for first time.
V Includes corporate and other issues of $15 million and over; State and local government
issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and Development
issues and non-guaranteed issues of Federal Agencies.
Note;--Deletions for reasons other than sale of issue: None.




%

Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I;

Sale Date

Public Offerings

Amount
(millions
of
dollars)

Issuer and Description of Issue

A.

Sold July 1 through October 1

7/7

20.0

Commonwealth of New Zealand--5-3/4% bonds, maturing
1985, reoffered to yield 5.97%.**

8/24

50.0

Province of Ontario, Canada--4-3/4% debenture, maturing
1990, reoffered to yield 4.85%.

•'•9/16

20.0

European Investment Bank--6% bonds, maturing 1985,
reoffered to yield 6.04%.***

B.

Prospective Offerings
• None

* -- Included in table for firbt time.
**-- Issue sold to investors outside U . S .
***-- Issues subject to interest equalization tax; price to U.S. citizens was therefore
placed 108.33 as compared to price of 99.50 to other investors.




j
Part II:

Date reported

M-2

Private Placement--Reported July 1 through October 1

Amount
(millions
of
dollars)

I

Issuer and Description of Issue

1

7/21

40.0

Trans-Canada Pipe Lines Ltd. --5-1/8% first mortgage,
bonds, maturing 1985--no information available on
takedown.

8/11

8.0

Celanese Mexicana S. F.--7-1/4% sinking fund bonds,
due 1977--no information available on takedown.

8/30

25.0

Imperial Chemical Corporation Ltd.--6.82% notes, due
l971-85--no information available on takedown.

8/30

10.0

Dominion Rubber Company Ltd.--5-7/8% notes, due 1985-no information available on takedown.

- 9/9

40.0

Skeena Kraft, Ltd.--5-3/8% first mortgage and collateral
trust bonds, maturing 1985--no information available on *
takedown.

9/8

50.0

Bell Telephone Co. of Canada--4.85% first mortgage bonds^
due 1995--no information available on takedown.

9/16

135.0

9/16

25.0

Note:

Queensland Aluminium Securities C o m p a n y - n o t e s maturing
1968-82--no information available on takedown.
The Alberta Government Telephone Commission--4-3/4%
sinking fund debenture, maturing 1990--no information
available on takedown.

1

For retrospective data on aggregate foreign corporate and government security
offerings in the United States see Exhibits I and J. There is no simple relationship between the data shown in the Exhibit and that shown in Exhibits I and J
because the latter includes privately placed securities in the period in which funds* ,
are actually takendown but only in the amount of takedown while the placements showi^
in this exhibit are included when* reported, frequently with little or no information concerning timing of takedowns. Full or partial takedowns may take place both '1
prior and subsequent to the date a placement is reported.
>: