Full text of H.16 Capital Market Developments : October 5, 1964
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Not for Publication DECONTROLLED AFTER SIX MONTHS H. 14 -September 5, 1964. (cAPTTAL_MA**ET DEVELOPMENTS IN THE UNITED STATES LIBRARY :T 7 1S64,(Including Review of Capital Markets in September) Co -porate and municipal bond markets. The total volume of public secur ty financing this week ($351 million) will be substantially larger than last week's moderate supply ($202 million). A $100 million bond issue of the State of California is the largest issue included in this week's substantial municipal supply, while a $50 million negotiated offering of Texas Eastern Transmission Corporation bonds makes up most of this week's corporate volume. Long-Term Public Security Offerings JL/ (In millions of dollars) Corporate New Capital | Refunding State and local govt. New Capital 1 Refunding Sold: Sept. 25 Oct. 2 111 100 r/ 244 102 r/ — Scheduled: Oct. 9 75 — 276 — 1/ Federal Reserve estimates based on published reports of issues sold and scheduled for offering; corporate rights offerings are included as of the data subscription rights expire, r/ revised. Underwriters priced last week's three medium size utility issues close to the market, but this did not result in any change in yields on either new or seasoned corporate bonds. Reception of these issues, however, was slow and no more than half of the new offering total was sold by week-end. Unsold syndicate balances probably rose to around $70-80 million. In the municipal market, demand was generally favorable for most of last week's small volume of offerings, but only minor reductions were made in dealers' large advertised inventories of unsold securities, and yields on Aaa-rated, seasoned bonds edged up slightly further. Yields on U.S. Government securities. Governments were mixed but minor last week. Changes in yields on H. 14 -2- Yields in Securities Markets Level latest week (per cent) Change from preceding week (basis points) High-Grade Notes and Bonds Corporate Seasoned TJ.S. Govt. Long-term 3-5 year 4.46 4.42 4.15 4.02 + 1 State and local govt. Money Market Federal Funds Treasury bills 3-month 6-month Finance Company Paper 3.35 3.55 3.71 3.81 ' -15 +1 +1 +6 FNMA secondary market operations. Sales in the secondary mortgage market by the Federal National Mortgage Association dropped to $4.4 million in August. This compared with $12.6 million in July and $8.5 million in August of 1963 when sales had about completed their decline from the unusually high plateau reached in the previous spring. Purchases by FNMA expanded to $15.2 million in August. As in several other recent months, however, this reflected mainly acquisitions of mortgages by FNMA from the Federal Housing Administration in exchange for FNMA-heId FHA debentures. Offerings in August, which rose to $20.5 million, were also largely related to such inter-agency transactions. Stock prices. Common stock prices, as measured by Standard and Poor's composite index of 500 stocks, edged up on balance last week to close at an all-time high of 84.36. Trading volume average 4.7 million shares a day, off 1.0 million shares from the average for the previous week. Capital markets in September. New capital security financing by corporations probably amounted to $900 million in September. This was more than three-fifths larger than the seasonally light August total and also about one-eighth more than a year earlier. Included in this total were large public offerings with total gross proceeds of $376 million; of those $295 million were bonds and $81 million stocks. In addition, a $40 million bond issue was sold primarily to refund outstanding securities. -3- H. 14 With the September calendar of corporate bond offerings larger than in any month since June, yields on new issues rose sharply during the first three weeks of the month. The average yield on new issues adjusted to an Aaa basis reached a level 15 basis points above the 4.37 level which had prevailed generally from early July through late August. Then in the latter part of the month 2/5 of this yield advance was erased. Apparently in the face of a reduced volume of prospective October offerings, underwriters bid more aggressively for the remaining supply of new September issues. State and local government bond sales totaled around $900 million in September, one-fifth larger than during the preceding month and twice the September volume,a year earlier. Retail demand for these issues was selective, however, resulting in some advance in both yields and dealers' inventories. Yields on seasoned, Aaarated municipal bonds rose three basis points during the month to 3.11 per cent, within one basis points of the top of the range that has prevailed since May. Moreover, despite continued reports of price concessions made to sell older issues from inventories, dealers' advertised inventories of unsold securities rose on balance. Common stock prices, as measured by Standard and Poor's composite index of 500 stocks, rose about 2-1/2 per cent during September, to recover all their July-August losses and edge to a new all-time high. Trading volume averaged 5.2 million shares a day, 0.1 million shares a day less than in September 1963. Estimated October security financing. New security financing by corporations is expected to be smaller this month than last, but municipal bond financing will probably continue to run at close to the September volume. Corporate security financing to obtain new capital is expected to aggregate $800 million, down one-ninth from September and one-fifth below the near-record October volume a year ago. Most of this month's financing will probably consist of private placements; large issues currently scheduled for public offering amount to only $186 million. Municipal bond sales in October are estimated at $900 million, one-eighth less than a year ago; large issues already scheduled for offering have a par value of $500 million. More detailed information concerning recent capital market developments is presented in the attached exhibits. Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. IXffUlT A / P . , 1 L O N G - T K R M B O N D YIELDS, H I O H - O R A D I | nil I nil . I I I II I I I I KX, Exhibit A - Part II Corporate Aaa y D # S. G o v t , long-term 2/ State and local government Aaa 3 / Spread between P . S . Govt, and ICorporate State a n c T local Aaa (per c e n t ) 1959-60 - High 1 9 6 1 - High low 1962 - High Low 1963 - High Low 1961* - High Low U . 61(1/29/60) U.U6(9/25) U.21(3/17) U.U3(3/16) 1*. 23(13/2$ 14.37(1^27) 1.19(3/29) 4.42(10/2) 4.35(2/28) Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 g/ 4.42 4.42 4.42 4.42 , 4.42 / f U.U2 (1/8/60) U.07 (12/29) 3.70(5/12) U.12 (2/23) 3.85(13/28) 1.16(12/27) 3.65 3.37 3.12 3.26 (9/24/39) (7/6) (3/23) (3/4) 4.20(4/17) 4.11(7/3) 3.18 2.93 3.16 3.07 (13/21) (3/28) (3/26) (7/16) 4.16 4.17 4.17 4.16 4.15 v 3.08 3.08 3.10 3.10 / 3.11 / 3.87 (Vie) 2.88 (11/8) .59 .57 ."35 .21 '.76 •U6 1.0U .80 1.05 .88 .29 .19 1.09 1.01 .26 ; 25 .25 .26 .27 1.09 1.07 1.06 1.04 1.08 Preliminary. Weekly are rage of daily figures, Average term of bond# included is 22-24 years. Weekly average of daily figures. The series Includes bonds due or oallabl* in 10 years or moie. 1 / Thursday figures. Only general obligation bonds are Inoluded) average t e n is 20 years. Note.—Sighs and lows are for individual series and nay be on different dates for different series. For spreads, high refers to widest, and low to narrowest. EXHIBIT B. fort 1 LONG-TERM B O N D YIELDS, L O W E R - G R A P E . Exhibit B - Part II Date Corporate Baa 1/ State and local govt. Baa y Spread between Aas and Bam State and Corporate local govt. (per cent) 1959-60 - High 1961 - High Low 1962 - High Low 1963 - High - Low 196U - High Low Sept. 4 Sept. 11 Sept. 18 Sept. 25 lXOct. 2 £/ 5.3$(?A?/60) 5.13(10/27) 5.00(4/21) 5.11(1/3) U.92(iVa) U.93(a/4) U.83(11/15) 4.87(6/26) 4.81(10/2) U.U6 (1/7/60) U.l6(3/23) 3.93(11/9) U.oU(i/n) 3.52(5/17) 3.63(6/27) 3.52(5/23) 3.59(10/1) 3.51(4/16) 4.83 4.82 4.82 4.81 4.81^' 3.54 3.56 3.59 3.59 3.59 Hotel for footnotes see Exhibit JU i, f. .8k .81 .66 :$ :ii 1.08 fc .93 .5? 1 .48 .39 .14h .49 .36 .41 .40 .40 .40 .39 .46 .48 .49 .49 .48 I i: ; | 1 f 7 EXHIBIT C. 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, G O V E R N M E N T Is iXA w ' 4-MONTH III Mork.l Yl.l Y 1-5 VUI ISSUES r v v 1 ^X/F.l. DISCOUNT IATI V ' Vork 1 A \ J | 3-MOWTH IIUS m a Exhibit c -"Part II Date Discount rate y 1 1 1 1 1 1 1 1 II 1 mt 1 1 1 1 1 1 1 1 1 1 1 mi mi im Yields 3-month bills 2 / 6-month . bills 2 / 3-5 year issues 2 / : " Spread between yields on 3 m o n t h bills and yields o n 6-mo. bills|3-5 yr. issues (per c e n t ) 1959-60 - High 1961 - High Low 1962 - High Low 1963 - High Low 196U - High Low Sept. 4 S e p t . 11 S e p t . 18 S e p t . 25 Oct. 2 £/ IwOO 3.00 3.00 3.00 3.00 3.50 3.00 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3:55(11/15) 2.88(3/15) 3.56(3/6) 3.74(3/6) 3.43(7/17) 3.52(7/3) 5.00(12/24/59) 3.86(8/11) 3.15(5/12) 3.88(2/2) 3.Ul(12/28) a . 0 7 (12/27) 3.UU(l/ifl) 4.23(3/27) 3.98(8/7) 3.50 3.52 3.54 3.54 3.55 - 3.64 3.67 3.69 3.70 / 3.71 / 4.03 4.04 4.05 4.02 4.02 U . 5 9 (1/8/60) 2.97(7/13) 2.65(6/8) V 2y 2.35(4/28) 3.13(7/20) 2.7U(6/e) 3.68(12/6) 2.93(3/8) .17 .OU .21 .04 1.81 1.51 .92 1.19 .52 .70 .U2 .71 .47 .14 .15 .15 .16 .16 .53 .52 .51 .48 .47 .79 •UU .12 .21; .02 Weekly rate shown is that In effect at erd of period at the Federal Reserve Bank of New York. Market yields weekly averages ocnputed from daily closing bid prioes. Series of 3-5 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. S H O R T - A N D I N T E R M E D I A T E - TERM INTEREST RATES, S AND OTHER PRIVATE BORROWERS, T, ' 1160 1 1941 11*2 11*3 11*4 Exhibit D - Part II Date Stock exchange call loan l/ Prime rate 1/ Finance companypaper 2/ Federal funds y Spread between 3-iao. bills and finance co. paper [per cent) 1959-60 1961 - High Low 1962 - High low 1963 - High Low 196lt - High 5.56 L. 50 U.50 U.50 14.50 U.50 U.5o 4.50 4.50 5.00 U.50 U.50 u.50 U.50 U.50 U.50 4.50 4.50 5.13(1/22/60) 3.00(12/30) 2.50(8/5) 3.25(7/21) 2.88(6/1) 3.88(12/27) 3.13(5/31) 3.93(4/3) 3,72(9/11) U.00 (5/13/60) 2.90 (ll/l7) .U3 (V27) 3.00 (12/28) 1.30 (3/26) 3.50 (12/27) 2.U5 (7/26) 3,50(9/25) 3,14(7/24) 1.02 .56 .11 •U5 .19 .39 .12 .41 .20 Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 £/ 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 3.74 3.72 3.75 3.75 3.81 3.50 3.38 3.45 3.50 3.35 .24 .20 .21 .21 .26 2/ . Weekly rate shown Is that In effect at end of periqd. Stock Exchange call loan rate is going 'rate on call Iqans secured b y customers' stock exchange collateral at New York City banks. Prime rate . is that charged by large banks on short-term loans to business borrowers of the highest credit standing. 2J Average of daily rates published by finance companies f o r 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. N o t e : — B i g h s and lows are for individual series and may be on different dates for differentu#eti«s. F o r spreads, high refers to widest, and low to narrowest. EXHIBIT t. Pel I STOCK MARKET . y "STOCK MAtKIT tltBII ______ : ~ IN $1111$ MilUeju_sJL.ih_ 1, iw/l; 1 , I 1 MtO 1 1 I I II 1 1 1 1 1 1 1 l 1 1 1 Li kl. 1 1 1 II 1 II II 1 II 1 1 1 II 111Lil_L • Mil 1*62 Mil J**# Exhibit E - Part II Stock price index 1/ Trading Common volume 3/ stock yields 2/ (millions (per cent) of shares) Stock market customs: credit Customers' Bank debit balloans to ances h/ 'others" 5/ (In millions of dollars) 1961-62 - High Low 1963 - High 196U - High Low 84.36(10/2) 75.50(1/3) Aug. Sept. Sept. 18 Sept. 25 Oct. 2 £/ 72.01412/8/61) 52.68(6/22/62) lkM^/27) 2.80 3.96 3.01 10.1 2.U 6.5 2.96 • 3.10 6.1 3.6 82.00 83.58 83.48 84.21 3.03 3.00 2.99 2.97 3.9 5.2 5.6 5.7 84.36 2.96 4.6 5,602(12/61) U , 259(12/61) 1,1+18(5/9/62) li,lt2U(3/61) 3,253(2/61) 1,161(3/8/61) 7,298(13/63)5,586(11/63) 1 , 7 3 8 ( 1 3 / 2 5 ) 7,314(4) 5,524(1) 1,918(9/16) 7,096(8) 5,187(8) 1,720(1/22) 7,096 5,187 1,909 1,918 1,917 n.a.—Hot available, p/ Preliminary. " ~ ~ 1/ Standard and Poor*: 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 3/ 4/ 5/ Averages of daily trading volume on the Hew York Stook Exchange. End of month figures for member firms of the New York Stock Exchange which carry margin accounts; excludes balances secured by U. S. Government obligations. Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying U . S. Government securities. Weekly reporting banks account for abcut 70 per cent of loans to others. For further detail see Bulletin* FEDERAL N A T I O N A L M O R T G A G E A S S O C I A T I O N ' ^ S E C O N D A R Y MARKET O P E R A T I O N S ' _Monthly Million! ol dollon m ,1964 E x h i b i t F - Part II Date E s t i m a t e d o f f e r i n g s to FNMA Immediate S tandby purchase commitment! Purchases by FNMA by FNMA (In m i l l i o n s of d o l l a r s ) 1963 - Aug. Sept. Oct. Nov. Dec. 1964 - Jan. Feb. 18.3 19.8 18.4 11.8 14.0 15.5 15.0 19.9 28.5 July 18.8 20.1 18.5 12.0 14.1 15.6 15.1 20.1 28.5 28.9 9.3 8.4 9.2 8.0 .3 Aug. 20.5 20.5- "" Apr. May .4 .2 .1 .1 .1 .1 .1 .3 .1 28.9 16.9 15.3 16.3 7.7 10.9 11.1 13.0 16.8 26.4 25.8 3.8 5.5 15.2 8.5 1.6 2.2 .6 15.8 8.8 2.3 3.8 12.7 10.9 9.5 12.6 4.4 »—Less than $50,000. 2/ Data represent unpaid principal balances of the mortgages involved, exclusive of premiums, discounts, or other charges.. Offerings are amounts of applications received during the period from sellers proposing that FNMA. execute purchasing contracts» An immediate purchase contract covers existing mortgages which the teller mast deliver to FNMA within 45 days. A standby 0 onmitoent contract relates to proposed mortgagee on housing nc* yet under construction which the seller must usually deliver within one year. Purchases include those under both immediate purchases and standby otxunttmant contracts. Data exclude FNMA. activity under Special Assistance and Management and Liquidating Programs. If EXHIBIT O, Pari IYIELDS O N NEW A N D S E A S O N E D C O R P O R A T E B O N D S / /Ad|uiled to A N E W ISSUES . -vU-1 Exhibit 6 - Part II Yields cm New Corporate Bond Issues Adjusted to an Aaa basis Monthly averages: 1964 • Jan.' Feb. Mar. Apr. May June Number Ain't of Issues Average included (mil. yield of (per cent) of dollars) 3 3 6 1 10 8 150.0 125.0 166.0 130.0 278.0 230.0 Weekly averages; 1964 26 3 10 17 24 31 Aug. 7 14 July 21 High 12 4.50 4.38 4.43 4.48 4.46 4.43 60.0 35.0 28 4.53(5/8) 4.30(2/21) Sept. 4 11 18 4.45 25 4.44 Oct. 2 ,41 Number Ain't of Issues Average of included (mil. yield (per cent) issues of dollars) 80.0 4.41 30.0 4.37 30.0 4.37 15.0 4.39* 15.0 45,0 40.0 40.0 60.0 69.0 70.0 4.37 4.40" 4.48* 4.48 4.52 4.46 4.46 55,n _12_ N o t a t A v e r a g e : of offering yields co all new issues of publicly offered oorporate bonds rated Aaa. JU, u d A by Moody 1 • Investors Sendee (except sexial and convertible la suae, 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 Aaa basis by deducting from the actual reoffaring yield the excess of the weekly average yield for seasoned tends of the appropriate industryquality group over the composite average for seasonsd Aaamrated bonds (Moody's), Averages considered unrepresentative because of special characteristics of fee offerings included are denoted by an asterisk^ H. 14 Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) New Capital 1964 August September October November J^ecember 1st 2nd 3rd 4th quarter quarter quarter quarter 1st half Three quarters Year 876 1,133 628 £/ 1,215 665 £/ 878 £/ 869 866 930 873 912 786 e/ e/ e/ 900 750 900 680 708 449 612 544 427 819 678 1;,064 e/ 900 1 ,051 729 416 650 578 550 2 ,351 2 ,847 2;,109 3,,246 2 ,228 3,,056 1,,902 2,,561 £/ 2,525 * £/ 2,7.58 2,,454 2,,665 1,,837 2,,197 2,637 2,571 1,528 1,779 5,,198 7j,307 10,,553 5,,284 7,,186 9,,747 £/ 5,283 5,,118 6,955 9,,151 5,208 6,790 8,568 930 904 1 ,013 1 ,153 771 1 ,132 £/ e/ e/ 797 550 900 676 637 795 573 773 557 e/ .Sin.' 1 ,013 819 1 ,415 2,369 4,625 6,994 e/9,251 1962 732 746 976 2,178 1,069 1,378 ' 1963 944 771 809 549 860 819 e/2,247 State and Local 2 / 1964 1962 613 594 1 ,144 : July 1963 930 685 754 January February Farch April Hay June Corporate £/ £/ £/ e / 2,550 e / 7,833 . Excluding finance companies 2/ 1st 2nd 3rd 4th quarter quarter quarter quarter 1,996 4,17" e/2,047 2,,284 2,,529 • 1,,768 2,,854 2,,169 2,,970 1, 767 2, 330 9, 236 9. 434 Year e/ Estimated by Federal Reserve. £/ Preliminary. ' 1_/ Securities and Exchange Commission estimates of net proceeds. If Investment Bankers Association of America estimates of principal- amounts. Zj Total new capital issues excluding offerings of sales and consumer finance companies. § I I 5 t Exhibit I 1" New Corporate Security Issues, Type of Issue & Issuer (In millions of dollars) Quarter or Month Total Gross proceeds f ar new capital and refuiiding l i Common Bonds and Publicly Privately pfd. Offered Offered 507 716 1,155 639 1,222 1,389 307 1,024 853 300 1,568 1,089 Net proceeds foi new capital 1/ If Memo: Public CommuniForeign Mfg. Utility cations issues i nel tided 456 430 655 68 231 983 996 257 275 375 601 56 .321 568 769 179 Other issuers 717 794 659 986 1*62 - I II III IV 2,378 3,250 2,184 2,957 1963 - I IX III 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 47 947 591 896 968 326 794 285 530 236 221 150 118 842 1,241 868 1,629 1964 - I II III 2,499 4,851 978 1,321 1,221 1,640 300 1,890 29 105 418 723 438 856 273 1,663 1,240 1,383 . 1963 - Jan. Feb. Mar. Apr. May 695 642 1,363 1,049 1,340 1,246 810 756 871 1,116 891 1,459 350 259 499 380 550 459 279 336 283 511 183 626 243 289 774 452 694 675 431 318 501 481 549 751 102 94 91 217 95 113 100 100 87 125 159 83 25 43 60 56 182 196 46 21 42 10 10 27 135 220 592 148 216 227 297 272 237 240 214 515 114 115 97. 341 222 230 107 100 78 201 131 198 125 68 43 71 92 58 86 25 39 41 13 64 238 191 412 369 373 499 187 187 441 531 461 637 July Aug. Sept. Oct. Nov. Dec. 515 157 109 5 149 121 338 526 1964 - Jan. 985 324 83 155 123 88 16 342 Feb. 279 710 400 34 174 146 8 91 361 353 Mar. 805 463 1,377 151 186 1,372 34 383 480 Apr. 2,234 395 27 441 206 36 537 148 May 470 1,155 525 258 264 332 35 370 468 623 June 1,461 393 23 207 173 16 224 434 234 July p./ 892 250 10 120 n. a. 170 50 340 190 580 Aug. e/ Sept. 1 ^/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. u: Other Security Offerings (In millions of dollars) 1964 January February March April hay June July August September October November December Jan. Gross long-term If Foreign government 2/ Federal agency 3/ 1963 1963 1964 1962 4 82 69 30 75 26 E/ e/ 16 25 232 133 76 57 114 11 63 ^83 2 - Ai.^. 327 Year ' 142 10 35 10 86 50 25 8 31 151 88 101 769 366 771 737 275 246 156 186 461 459 260 --- 174 200 e/ 8 5 4 103 236 -407 442 81 -80 July August September October November December Jan. Year - Aug. a/ -9 127 £/ 493 j 75 272 -367 589 -30 -10 62 208 -173 259 146 -339 18 466 -186 127 -84 -118 78 339 -406 71 234 -161 799 640 692 378 -78 -336 23 97 183 239 -333 167 -38 -- --- 793 1,013 1,167 1,188 770 1.600 -i -- -- -106 -189 -482 292 195 319 414 327 258 123 -102 551 i „ 150 175 New short-term 4/ State and local government 5/ Federal agency 3/ January February March April May "T 247 -156 226 -364 82 284 261 227 -157 379 55 -80 807 1.004 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. ^/Includes securities offered in the U.S. by foreign governments and their political subdivisions and international organizations. Source: Securities & Exchange Commission. 3/ Issues not guaranteed by the U.S. Government. Source: Long-term, Securities & Exchange Commission; short-term> Treasury Dept. & Federal Reserve. 4/These data differ from those in Exhibit H and above in that they represent new offerings less retirements, whether from the proceeds or refunding issues or from other funds. Data include only issues with original maturing of one year or less. 5/Principally tax and bond anticipation notes, warrants or certificates and Public Housing Authority notes. In some instances PHA notes j included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal Reserve. . 1962 148 ej 3 1 9 L/ 1 [.14 Exhibit K Large Long-term Public Security Issues for New Capital (Other than U . S . Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) Total 1963 - Sept. Oct. Nov. Dec. 1964 - Jan. Feb. Mar. Apr. May June July Aug. Sept. 237 446 180 547 307 263 335 1,557 452 650 291 142 376 Corporaate Bonds (other than Convertible convertibles) bonds „„ 215 380 117 515 225 200 296 235 415 390 178 125 269 60 35 51 ; Stocks 22 66 63 32 22 28 38 1,271 37 260 113 17 25 81 State and local governments 135 734 373 111 577 358 282 698 274 384 544 459 558 Other 2/ 174 200 50 20 15 275 260 104 15 Large Individual Issues Offered September 1 through Oct. 2 Issuer Type 2/ Amount (millions of dollars) Maturity Coupon rate or net interest cost Offering vield Rating Corporate Wells Fargo Bank Consumers Power Co. Western Bancorporation Public Service Elec. & Gas Co. *Wisconsin Elec. Pwr. Co. *Wells Fargo Bank Dela. Pwr. & Lt. Co. Rochester Gas & Elec. Co. Georgia Pwr. Co. Pacific Pwr. & Lt. Co. Pennsylvania Elec. Co. Columbia Gas System Inc. Cap. notes S.F. deb. Com. Stk. 1st & ref. mtg. bds. Com. stk. Conv. cap . notes 1st mtg. &: C O l l . tr. bds. 1st mtg. bds. 1st mtg. bds. 1st mtg. bds. 1st mtg. bds. Deb. 50.0 40.0 50.9 1989 1994 4-1/2 4-5/8 4.50 4.50 Aa Aa 60.0 30.5 25.3 1994 4-5/8 4.53 1989 3-1/4 3.75 25.0 16.0 28.0 30.0 20.0 40.0 . 1994 1994 1994 1994 1994 1989 4-5/8 4-5/8 4-5/8 4-5/8 4-5/8 4-5/8 * 4.50 4.48 4.53 4.65 4.47 4.57 Aa Aa A Baa Aa A K-2 Large Individual Issues Offered September 1 through 25 (Cont'd) Issuer Coupon rate or net interest cost Amount Type 3/ (millions of dollars) Maturity Rev. -Rent Rev. -Rent G.O. G.O. Rev. -Ut. G.O. 15.0 50.0 75.8 12.5 15.0 30.0 1966-84 1967-91 1965-2002 1965-84 1969-88 1965-79 3.91 3.35 3.18 3.11 3.41 2.87 2.70-3.90 2.50-3.50 2.10-3.50 2.10-3.204/ 2.75-3.40 2.10-2.95 Re^r. -Q-Ut. G.O. 60.0 10.0 1972-99 1965-89 3.46 3.30 2.85-3.555/ 6/ G.O. 16. 0 Offering yield £ Rating , State and Local Government Clark Co. Sch. Dist., Nev. Penna. Gen. State Auth. Commonwealth of Mass. Dallas, Texas Chicago, Illinois State of New York Bay Area Rapid Transit Dist., Calif. Detroit, Michigan Marion Co. Health & Hosp. Corp. Ind. Los Angeles Dept. of Wtr. & Pwr., Calif. Tallahassee, Fla. MCLIO. Seattle, Wash. State of Connecticut Public Housing Auth. Iowa State Bd. of Regents New York State Dorm. Auth. New Haven, Conn. State of West Va. Other City of Oslo, Norway Rev. -Ut. Rev. -Ut. 24.0 10.0 2.0 Re v. -Ut. 9.3 5.7 44.0 G.O. 130.3 Rev. -Rent. 15.0 Rev. -Rent. 12.0 11.2 G.O. 10.0 Rev. -Rent. • 15.0 Baa -- Aa Aa , A .. Aa Baa : 1966-85 3. 09 2.20-3.15 Aaa 1965-94 • 1968-92 1966-87 2004 1972-98 1965-84 1965-2005 1966-2004 1966-95 1966-84 1965-75 3.35 3.47 3 40 2.15-3.50 2.80-3.70 2. 60-3. 6 ^ 3.78 2.95-3.70 2.05-3.13 2.05-3.50 2.40-3. 63—' 2. 60-3.752/ 2.30-3.15 2.30-3.25 Aa 1984 3.78 3.04 3.35 3.54 3.66 3.05 3.25 5-1/2 10/ Baa Aa Aaa J Aa Baa ^ -- *--Rights offering. n.a.--Not available. 1/ Includes corporate and other security offerings of $15 million and over; State and locals 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. r 3/ In the case of State and local government securities, G.O. denotes general obligations; s 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 byl least payments. 4/ 1/10 per cent bonds due 1984 reoffered to yield 4.00 per cent. _5/ Bonds maturing 1999 not publicly reoffered. 6/ Not publicly reoffered. %/ 1/10 per cent bonds due 1990-92 &1986-87' reoffered to yield 4.25 per cent. r_ 8/ Bonds maturing 2003-04 not publicly reoffered. L 9/ 1/10 per cent bonds maturing 1995 reoffered to yield 4.40 per cent. ^ l_0/Reof fered to yield 4.89 per cent to U.S. investors and 5.60 per cent to other investors.5 .7 H. 14 Exhibit L Forthcoming Large Long-term Public Security Offering for New Capital (Other than U.S. Treasury) 1/ Expected Proceeds from Forthcoming Large Issues (In millions of dollars) During month following State and local govt. Corporate 1963 - Sept. Oct. Nov. Dec. 1964 - Jan. Feb. Mar. Apr. May June July Aug. Sept. 30 31 29 31 31 28 31 30 28 30 31 31 30 561 255 137 469 316 454 669 345 341 539 120 511 500 240 145 392 305 155 224 1,587 651 600 292 92 402 186 Other 2/ 25 15 15 Corporate 240 145 1,992 1,905 1,771 1,649 1,837 844 668 307 167 442 186 Subsequent to date shown State and local govt. 757 401 349 731 667 646 953 575 598 716 588680 626 • Other £ -— 25 15 15 Forthcoming Large Offerings as of October 2 Issuer Type Amount (millions of dollars) Approximate date of offering Corporate Texas Eastern Trans. Corp. Southern New Eng. Tel. Co. Southern Calif. Edison Co. Jersey Central Pwr. & Lt. Co. State and Local Government Aurora, Colo. Los Angeles Fid. Contl., Dist. Detroit, Mich. State of Vermont Fort Lauderdale, Fla. Santa Clara, Calif. State of Calif. Penna. Gen. State Auth. State of Hawaii Phoenix, Ariz. 1st mtg. p.1. bds. Com. stk. Com. stk. 1st mtg. bds. GO. Rev.-Q.-Ut. Rev.-Ut. G.O Rev.-S.T. G.O. G.O. Rev.-Rent G.O. GO. 50.0 24.7_ 53.4 18.0 10.0 15.0 39.0 10.8 10.7 10.0 100.0 • 21.4 15.0 10.0 Oct. 7 Oct. 9 (rts. ex.) Oct. 13 Oct. 21 Oct. 5 Oct. 6 Oct. 6 Oct. 6 Oct. 6 Oct. 6 Oct. / Oct. 14 Oct. 15 Oct. 20 Forthcoming Large Offerings as of October 2 (Cont'd) Type Amount (millions of dollars) Approximate date of offering 1 State and Local Government (Cont'd) *New York City, N. Y. ^Florida Dev. Comm. Mass. Port Auth. Georgia State Sch. Bldg. Auth. Baltimore Co., Md. Pittsburgh, Pa. Dade County, Fla. Va. State Highway Auth. Forth Worth, Texas g f G.O. Rev. -S.T. -Q.-Ut. -Rent. G.O G.O. G.O. Rev. -Q.-Ut. G.O. 139..8 33..8 43..0 30. 0 11. 5 35. 0 46. 0 31. 0 14. 1 Oct. 20 Oct. 20 Oct. 20 Oct. 20 Oct. 21 Indefinite Indefinite Indefinite Indefinite Other None ^--Included in Table for first time. 1/ Includes corporate and other issues of $15 million and over; State and local government issues of $10 million and over. . \ 2/ Includes foreign government and International Bank for Reconstruction and Development ,j issues and non-guaranteed issues for Federal agencies. Note: --Deletions for reasons other than sale cr£ issue: None. |f H. 14 Exhibit M Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Da te Public Offerings Amount (millions of dollars) Issuer and Description of Issue A. 9/22 15.0 Sold July 1 through October 2 City of Oslo, Norway—5-1/2 per cent bonds maturing 1984, reoffered to yield 4.89 per cent to investors in the U. S. and 5.60 per cent to other investors. B. Prospective Offerings None \p. M-2 part II: Date reported Amount (millions of . dollars) 7/8 45.0 Issuer and Description of Issue International Minerals and Chemicals Corp. (Canada) Ltd.—notes, maturing 1982—no information available on takedown. & 8/6 15.0 Macleod Stedman Ltd.--sinking fund debenture maturing 1984--no information available on takedown. 8/6 17.5 Government of Trinidad and Tobago--serial bonds, maturing through 1979—no information available on takedown. 9/3 6.5 Urbanizaciones Guacara C.A.--5-1/4% prom, notes, maturing 1984--no information available on takedowns. 60.0 City of Montreal, Canada—5% sinking fund debenture, maturing 2004--no information available on takedown. *9/30 Note: ' Private Placement—Reported July 1 through October. 2 For retrospective data on aggregate foreign corporate and government security offerings in the United States see Exhibits I and J. There is no simple relatibnship between the data shown in this 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 shown 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 prior and subsequent to the data a placement is reported. ^--Included in table for first time. & ^ f * 8. '