Full text of H.16 Capital Market Developments : October 7, 1963
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Hot for Publication DECONTROLLED iTTER SIX H O O T © ^ , October 7, 1963. ^ rO \ \ CAPITAL MARKET DEVELOPMENTS IN THE UMITUlf'"iJ'^ATES (Inducing Review of Capital Markets in September) The volume of public security financing to obtain new capital alf very substantial last week and will be almost as large this week. Last week, ended October 4, no large corporate issues were offered but three large State and local government bond issues with par value of $257 million were sold. This week, ending October 11, a $20 million corporate issue and eight State and local issues amounting to $201 million are on the calendar. Bond yields. Yields on most seasoned long-term bonds did not change last week; Baa-rated corporate bond yields, however, dropped one basis point to 4.83 per cent, matching the low for the year. Yields on new corporate bonds, adjusted to an Aaa-basis, averaged 4.32 per cent last week, two basis points less than a week earlier. Short- and intermediate-term interest rates. Rates on 3-month and 6-month Treasury bills rose last week by three and two basis points, respectively to 3.41 end 3.53 per cent, the highest levels since May 1960. Yields on 3-5 year U. S. Government bonds, however, were stable at 3.88 per cent. The average rate on directly-placed finance company paper with 90-179 day maturity increased five basis points to 3.68 per cent as a result of the usual adjustments in schedules occasioned by year-end maturities. The average effective Federal funds rate went back to 3.50 per cent. Housing starts and permits. Private farm and nonfarm housing starts, which had been moving downward from the high reached last April and May, declined 3 per cent further in August. The decline followed a 3 per cent upward revision in the rate for July, however, and the seasonally adjusted annual rate of 1,513 thousands for August was only 6 per cent below the unusual high earlier this year and above (by 2 per cent) the moderately advanced rate in August of last year. On a three-month moving average basis, starts in the JuneAugust period were at a seasonally adjusted annual rate of 1,549 thousand. This was within 3 per cent of the earlier high this year and was 8 per cent above a year ago. Government-underwritten starts accounted for 17 per cent of total starts in August. This compared with 24 per cent a year earlier and 27 per cent in August of 1960 and 1961. -2- H. 14 Residential building permits in permit-issuing areas edged downward further in August. At 1,240 thousand, the seasonally adjusted annual rate was 6 per cent below the very high rate in June but 7 per cent above a year earlier. Nearly all the August decline occurred in 2-4 family units, which constitute a very small proportion of the total. Permits for buildings of 5-or-more units rose again and (at an annual rate of 452 thousand) were close to their highs of last May and the end of last year and about a fifth above a year earlier. Permits on single family houses remained at their reduced July rate. Common stock prices. Common stock prices advanced last week in fairly active trading. Prices, as measured by Standard and Poor's composite index of 500 stocks, rose one per cent to close at 72.85 on October 4. Trading volume averaged 4.3 million shares a day, 1.0 million shares less than a week earlier. Estimated October security volume. Security financing to obtain new capital by corporations will be moderate in October but State and local government bond sales will be very large. New capital security financing of corporations is estimated at $0.7 billion this month, somewhat less than the revised total for September and one-sixth smaller than in October, 1962. Large issues currently scheduled for public offering amount to $240 million. Bond sales by State and local governments will likely total $950 million in October, more than double the revised estimate for last month and nearly one-half more than a year earlier. Large issues scheduled for sale total $564 million, including an$184 million issue of Douglas County Public Utility District #1, Washington. Capital markets in September. Corporate security financing to obtain new capital was in moderate volume in September, and municipal bond sales quite small. Bond yields rose fairly sharply early in the month following the Treasury's announcement of an advance refunding offer larger in size and scope than has been expected. Syndicate agreements on several large corporate issues were terminated and yields adjusted upward, while municipal dealers made sizeable price cuts in bonds carried in inventory. As a result, unsold syndicate balances declined considerably, reception of new offerings improved, and yields stabilized at, or slightly below, the early September levels. New capital security financing by corporations totaled $750 million in September, one-tenth more than the previous month and threetenths larger than in September last year. Large issues sold publicly amounted to $237 million, consisting of $215 million in nonconvertible bonds and a $22 million subscription offering of common stock. Yields on seasoned Aaa-rated corporate bonds rose three basis points to 4.32 per cent at month-end, the highest level in over a year. Yields on new corporate bonds, adjusted to an Aaa basis, rose somewhat more to average H. 14 -3- 4.34 per cent, up five basis points from August and the highest since the summer of 1962. Most new -public offerings were fairly well received at the higher level of yields and generally fully distributed by monthend. This, together with the distribution of bonds originally offered in August following termination of syndicate price restrictions, reduced syndicate balances to a negligible amount. Bond sales of State and local governments amounted to $450 million in September, one-third less than in August but about the same as a year earlier. Yields on seasoned State and local government bonds rose, with those on Aaa-rated municipals increasing six basis points to 3.15 by the end of the month, the highest level since early August 1962. Underwriters also reduced prices the equivalent of 10-20 basis points on bonds in several large slow-moving syndicates. As a result, dealers' advertised inventories of unsold municipals dropped to below $500 million at the month-end, the lowest level since late March and $140 million less than at the end of August. Common stock prices declined slightly on balance in very active trading in September. Prices, as measured by Standard and Poor's composite index of 500 stocks, rose to a new all-time high of 73.30 on September 20, one per cent above the previous peak of December, 1961, but then fell off. At 71.70 on September 30, they were one per cent below the end of August level. Trading volume averaged 5.4 million shares a day, 1.2 million shares more than in August and 2.2 million shares higher than a year earlier. 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,.fa,. LONG-TERM BOND YIELDS, HIGH-GRADE coiroim STAT* AND 10CAI 6 0 V I I H « E * T J-U.I I I I I I 1 I I II I I I I I I • I960 I'Sl ii»! Exhibit A - Part II Corporate Aaa \t Date U. 8. Govt. long-term 2/ In- state and local government Aaa 3/ Spread between U. S. Govt, and Corporate 1 State and Aaa | local Aaa (per cent) 1958 - Low 1959-60 - High 1960-61 Low 1961 - High 1962 - Low 1963 - High Low Sept. Sept. Sept. Sept. Oct. 6 13 20 27 4 b/ 3.55 4.61 4.21 4.46 A (5/2) (1/29/60) (3/17/61) (9/15) 3.07 4.42 3.70 4.07 (4/25) (3/8/60) (5/13/61) (32/29) 2.64 3.65 2.99 3.37 (5/1) (9/24/59) (9/3/60) (7/6) A W O % 4.19 (3/29) 43 0855 ((?/f0l 3.87 (1/18) 2.93 (3/28) 4.30 4.31 4.32 4.32 4.32 X 4.03 4.05 4.05 4.04 4.04 3.12 3.12 3.13 3.15 3.15 .22 .59 .19 ;! .21 .27 .26 • 27 .28 •28 .34 .92 .46 .76 .80 1.02 .89 .91 . 93 .92 .89 .89 W Preliminary, y Weekly average of daily figures. Average term of bonds included is 22-24 years* 2j Weakly average of daily figures. The series includes bonds due or callable in 10 years or more, "V Thursday figures. Only general obligation bonds are included) average term is 20 years, "ote,—ilighs and lows are for individual series and may be on different dates for different series. For spreads, high refers to widest, and loir to narrowest# EXHIBIT^ B, Pari I LONG-TERM BOND YIELDS, LOWER-GRADE :o8foa*Tt '»•? h\J V\,r r\< r v V J-LAI 1 1 1 1 1111 n1 1111111 1958 x "sun AND LotAt GOVtkHHtNTiai Wo 1 959" \/'-v 1 1 1 1 1 1 1 11 11 11 11 1 1 1 11 1 1 1 1 1 1 11 11 11 11 II 1 1 U A T I960 1961 1963 Exhibit B - Part II Date Corporate Baa 1/ State and local govt. Baa 3/ Spread between Aaa and Baa State and Corporate local govt. (per cent) 1958 - Low 1959-60 - High 1960-61 Low 1961 - High 1962 - Low 1963 - High Low 4.51 5.36 4.98 5.13 4.92 4.93 4.83 (7/11) (2/12/60) (9/9/6O) (10/27) [12/Zl) (1/4) (10/4) Sept. Sept. Sept. Sept. Oct. 6 13 20 27 4 jd/ Notes For footnotes see Exhibit A, 4.84 4.84 4.84 -4.84 4.83 ^ 3.64 4.46 3* 93 4.16 3.52 3.63 3.52 3.58 3.58 3.58 3.59 3.59 (5/1) (2/7/60) (11/9/61) (3/23) (5/17) (6/27) (5/23) .77 .84 .66 .81 .63 71 .51 .93 1.08 •57 .93 .56 .63 .44 .54 .53 .52 .52 .51 .46 .46 .45 .44 .44 .EXHIBIT C. Parish SHORT- A N D INTERMEDIATE- TERM INTEREST RATES, GOVERNMENT a 3 - 5 m i ISSUES 3 - •ONTH IIUS Marital Yield I I I H I I I I I I I I i I I I I I I I I I I I I II I I I I I I f I I I I I I I II iiy— - 1 I II I I I I I I I -—»«* I 1 II I I I I III »» Exhibit C -i Part II Discount rate If 1958 - Low ; ~ 1959-60 High 1960-61 Low i 1961-62 High 1962 - Low < 1963 - High Low f Sept. 6 : Sept. 13 : Sept. 20 Sept. 27 VOct. 4 £/ 3-month bills 2/ 1.75 4.00 3.00 3.00 3.00 .58 4.59 2.11 2.97 2.65 3.50 3.00 3.41 (10/4) 2.88 (3/15) 3.50 3.50 3.50 3.50 3.50 3.36 3.36 3.41 3.38 3.41z (5/29) (1/8/60) (10/28/60) (7/13/62) (6/8) Yields 6-month bills 2/ (per cent) 3.02 5.07 2.35 3.13 2.74 3-5 year issues 2/ (12/26) 2.14 (1/8/60)5.00 (4/28/61)3.15 (7/20/62)3.88 (6/8) 3.41 Spread between yields on 3month bills and yields on 6-mo. bills13-5 vr. issues (6/6) (12/24/59) (5/12/61) (2/2/62) (1^/28) .26 .04 .79 1.81 .44 .02 .38 1.51 .52 3.53 (10/4) 3.89 (9/20) 2.93 (3/8) 3.44 (1/18) .17 .04 .70 .46 3.47 3.48 3.51 3.51 3.53 .11 .12 .52 .52 .48 .50 .47 3.88 3.88 3.89 3.88 3.88 .12 .10 .13 .12 l/ Woekly rate shown is that in effect at ead of period at the Federal Reserre Bank of New York, 2f Market yields weekly averages oonputed from daily closing bid prices, Serleti of 3-5 year issues consists of selected notes end bonds. Hote.—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. SHORT- AND INTERMEDIATE- TERM INTEREST RATES, BANKS A N D OTHER PRIVATE BORROWERS Exhibit D - tart II Stock Exchange call loan 1/ Prime rate 1/ Finance company paper 2/ Federal funds 3/ Spread between 3-mo. bills and finance co. paper (per cent) 1958 - Low 1959-60 - High 1960-61 Low 1961-62 - High 1962 - Low 1963 - High Low 3.50 5.50 4.50 4.50 4.50 3.50 5.00 4.50 4.50 4.50 4,50' 4.50 4.50 4.50 1.13(8/0) .13(5/29) 5.13 (3/23/60) 4.00 (5/13/60) 2.50 (8/5/61) .43 (1/27/61) 3.25 (7/20/62) 3 • 00 (12/28/62) 2.88 (6/1) 1-30 (1/26) 3.68 (10/4) 3.50 (10/4) 3.13 (5/31) 2.45 (7/26) Sept. Sept. Sept. Sept. Oct. 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 3.63 3.63 3.63 3.63 3.68 2/ 6 13 20 27 4 2.1 K e ^ t f For spreads, higb r e f e r s t o w i d e s t , and l o r t o narrowest. .11 .56 .19 36 .09 .27 .27 .22 .25 .27 3.50 3.50 3.50 3.48 3.50 d a i l y r a t e s published by finance oanpanies f o r d i r e c t l y placed -.35 1.02 P S >er for vnying mturitie? (exhibit e.->-n I : STOCK MARKET 1941-43 o v . r o g . ' I O , ' STOCI MAMfl CtCDIt •AKI I I I I I I I I III t mo nil Exhibit B - Part II Stock price Index 1/ 1961-62 - High Low 1963 - High Low Augus t September Sept. 20 Sept. 27 Oct. 4 £/ Common . Trading Stock market customer credit stock volume 3/ Customers 1 Bank yields 2/ (millions debit bal- loans to (per cent) of shares) ances 4/ "others" 5/ (In millions of dollars) 72.04(12/8/61) 52.68 (6/22/62) 73.30 (9/20) 64.10 (3/1) 2.82 3.96 3.08 3.36 10,1 2.4 6.1 3.2 70.98 72.91 73.30 72.13 72.85 3.13 3.06 3.04 3.08 3.06 4.2 5.4 4.8 5.3 4.3 5,602(12/61)4,259 (12/61) 1,377(8/30/61) 4,876(7/62) 3,562 (7/62) 1,269(9/26/62) 6,660(8/63)5,034(8/63) 1,656(9/18) 5,595(1/63)4,208(1/63) 1,378(2/23) 6,660 5,034 1,626 1.655 1.656 1,655 n.a.—Not available, jg/ Preliminary. • ^ 3/ Standard and Poor's composite index of 500 oomnon stocks, weekly closing prioea, 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. y Standard and Poor'a composite stook yield based on Wednesday data converted to weekly closing prices by Federal Reserve* Yields shown are for dates on which price index reached its higx 3/ Averages of daily trading volume on the New York Stook Exchange# AJ End of month figures for member fizms of -the New York Stook Exchange ililoh carry nargLn accounts; excludes balances secured by U. S, Government obligations. 5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing ar carrying U. S, Government securities. Prior to July 1, 1959, such loans are excluded only at banks in New York and Chicago. Weekly reporting banks account ibr about 70 per cent of loans to others. For further detail see Bulletin. E X H I B I T F. fail I P R I V A T E H O U S I N G STARTS A N D PERMITS "PER CENT OF U N A D J U S T E D TO TAL STARTS' 101 e e W i w m i miiwiiwir Starts 1/ Building permits T y p e of financing T y p e of housing ( s e a s o n a l l y Seasonally adjustadjusted 1-2 MultiUnadjusted ed a n n u a l r a t e annual FHA VA family famil y rate) 2/ Total Date ! E x h i b i t F - P a r t II (Thousands o f u n i t s ) 1,185 99.2 37.3 25 104 7 137 1,442 41.8 1,160 105.9 8 112 28 148 1,486 Aug. 1 ,202 3 4 . 7 8 8 79.6 2 0 6 1 1 4 1,356 Sept. 1,195 39.1 96.1 105 23 7 135 1,537 Oct. 1 ,254 8 2 . 4 38,5 6 9 6 19 121 1,579 1,248 60.1 33.8 16 5 74 94 1,562 1 , 200 5 0 . 1 30.5 63 1 4 4 81 1,344 1963 - J a n . 30.6 1,193 56.0 13 70 4 87 1,380 Feb. 1 , 2 32 3 9 . 5 8 4 . 9 103 5 17 124 1,575 Mar. 1,214 111.1 47.0 129 21 158 7 1,618 Apr. 5 3 . 8 1,285 1 1 2 . 7 137 22 166 7 1,618 1,315 48.7 126 104.7 20 7 153 1,571 June 1,256 1 0 2 . 8 .44.9 21 119 148 7 1,563 July £/ 1,240 42.3 107.6 124 19 150 7 1.515 Aug, E/. 1 / T o t a l s t a r t s a r e Census e s t i m a t e s i n c l u d i n g f a r m f o r b o t h p e r o i t - i s s u i n g and n o n - I s s u i n g a r e a s . A d w e l l i n g u n i t i s s t a r t e d when e x c a v a t i o n b e g i n s ; a l l u n i t s i n an a p a r t m e n t s t r u c t u r e a r e c o n s i d e r e d s t a r t e d * t t h a t t i m e . FHA and VA s t a r t s a r e u n i t s s t a r t e d u n d e r o a r n d t n e n t s by t h e s e agencies t o i n s u r e o r g u a r a n t e e t h e m o r t g a g e s . ' As r e p o r t e d b y TEA and VA, a u n i t i s s t a r t e d when a f i e l d o f f i c e r e c e i v e s t h e f i r s t c o n p l i a n c e i n s p e c t i o n r e p o r t , w h i c h i s made b e f o r e f o o t i n g s a r e poured i n some oases b u t n o r m a l l y a f t e r t h e f o u n d a t i o n s have been c o m p l e t e d . Capehart m i l i t a r y housing u n i t s a r e e x c l u d e d . O t h e r s t a r t s are d e r i v e d a s a r e s i d u a l , a l t h o u g h t o t a l and IBA a n d VA s t a r t s a r e n o t s t r i c t l y comparable i n concept o r t i m i n g i o t h e r s t a r t s I n c l u d e b o t h u n i t s f i n a n c e d by c o n v e n t i o n a l mortgages and u n i t s w i t h o u t mortgages. 2 / B u i l d i n g p e r m i t s a r e Census e s t i m a t e s f o r a l l of t h e a p p r o x i m a t e l y 10,000 areas i n t h e U n i t e d S t a t e s w h i c h were i d e n t i f i e d a s h a v i n g a l o c a l b u i l d i n g p e r m i t system i n 1959. U n l i k e s t a r t s , s e a s o n a l l y a d j u s t e d b u i l d i n g p e r m i t s r e f l e c t a d i r e c t measure o f t h e i n f l u e n c e o f changes i n t h e number o f w o r k i n g d a y s p e r month, a l o n g w i t h o t h e r d i f f e r s noes i n t i m i n g and c o v e r a g e . 1962 - July EXHIBIT O, Pod I YIELDS O N NEW A N D SEASONED CORPORATE BONDS NEW ISSUES SEASONED Ai 196% Exhibit 6 - Part II Yields on Hew Corporate Bond Issues Adjuated to an Aaa baais Number Aa r t of issues Average of included (nil. yield (per cent) issues of dollars) Weekly averages: 1963 - Apr.. 5 12 19 26 Hay 3 10 17 24 31 7 14 21 28 2 1 3 3 45.0 6;0 95.0 128.0 1 2 1 3 25.0 266.0 . 30.0 76.0 4.22 4.31* 4.27 4.27 . 1 3 2 2 50.0 34.0 115.0 46.5 4.23* 4.25 4.24 4.25 4.23 4.18 4.28 4.30 Number An't of issues Average of included (mil, yield issues of dollars) (per cent) July 5 12 19 26 Aug. 2 1 1 23 30 Sept. 6 13 20 27 Oct. 4 -- -- —— 2 1 3 1 2 80.0 25.0 58; 0 70.0 75.0 4.30* 4.43* 4.31 4.28 4.27 2 1 50.0 12.0 i 1 2 15.0 . 100.0 33.5 4.33* 4.35 4.34 4.34 4.32 rote i Avenges of offering yields en allacnr issues of publioly offered bo rp orate bonds rated iftt< Aa and A. by Moody's Investors Servioe (except serial and convertible Is sues, offerings of natural gas pipeline, and foreign companies, and bonds guaranteed by the Federal Government) weighted by else of offering, 1 Before averaging, new offerings are adjusted to a composite Jaa basis by deducting from the actual reofferlng yield the excess of the weekly average yield for seasoned bands of the appropriate industryquality group over the composite average for seasoned Aa»-rated bonds (Moody's), Averages considered unrepresentative because of special characteristics of the offerings Included are denoted by »n asterisk^ H. 14 Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) ' capital 1963 Corporate 1 1962 1/ 1961 1963 January February March 613 594 1,144 592 859 807 580 667 562 April May June 930 904 1,013 1 ,113 760 1 ,132 2,118 1,259 1,318 £/ £/ £/ 70:2 675 750 582 749 579 1,028 762 647 700 835 703 1 ,103 1,090 948 1,000 2,351 2,847 e/2,127 2 ,258 3 ,005 1 ,910 2 , 641 1,809 4,695 2,437 3,038 5,198 e/7,325 5,,264 7,,173 9,,814 6,504 8,941 11,979 July August September October November December 1st 2nd 3rd 4th quarter quarter quarter quarter 1st half Three quarters Year J?/ e/ e/ e/ State and local 2/ 1962 1 1961 1 876 1,133 628 711 689 764 867 855 939 873 912 786 722 640 1,034 £/ e/ e/ 577 675 450 612 544 427 486 604 734 e/ y:0 650 578 550 679 789 610 £/2,431 £/2,661 e/1,702 2,637 2,571 1,582 1,779 2,165 2,396 1,824 2,078 £/5,092 e/6,794 5,208 6,790 8,568 4,561 6,385 . 8,463 £/ £/ £/ 731 726 973 Excluding finance companies 3/ 1st 2nd 3rd 4th quarter quarter quarter quarter- 2,284 2,529 e/1,875 Year e/ jV T/ 2/ 3/ 2, 199 2,919 1, 775 2, 410 1,554 4,552 2,337 2,807 9, 303 11,253 Estimated by Federal Reserve = Preliminary. Securities and Exchange Commission estimates of net proceeds. Investment Bankers Association of America estimates of principal amounts. Total net capital issues excluding offerings of sales and consumer finance companies. New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) Gross proceeds for new capital and refunding 1/ Common Memo: Publicly Privately foreign and pfd. offered offered included Net proceeds for new capital 1/ 2/ Mfg. Public Communiutility cations 2,832 1,462 955 416 17 625 696 381 997 1,992 5,352 2,566 3,236 662 2,303 772 967 880 1,275 1,139 1,424 449 1,774 654 845 76 155 69 62 515 1,466 935 792 381 1,081 595 836 81 1,095 104 147 832 1,052 803 1,263 2,378 3,250 2,184 2,957 1,155 1,389 853 1,089 716 1,222 1,024 1,568 507 639 307 300 68 257 56 179 655 996 601 769 430 983 375 568 456 231 275 321 717 794 659 986 2,700 3,635 1,108 1,389 1,306 1,821 287 425 128 434 947 591 326 793 236 221 842 1,241 1,155 987 1,094 336 414 217 509 348 567 310 225 310 25 12 25 271 215 306 306 362 168 25 80 42 487 291 485 647 884 847 1,217 801 1,232 630 922 632 976 784 1,197 273 497 386 654 247 488 200 477 176 539 286 264 232 232 253 227 420 575 366 363 295 314 446 808 143 155 209 336 134 169 67 82 161 123 52 125 3 12 54 10 147 100 13 43 46 34 99 205 131 318 384 270 342 217 218 166 153 271 345 89 148 193 377 196 410 118 110 148 141 175 252 73 362 21 88 64 79 88 120 67 260 4 57 225 218 275 264 229 301 159 301 199 282 253 451 695 642 1,363 1,049 1,340 1,246 845 745 350 259 499 380 550 459 279 325 243 289 774 452 694 675 466 350 102 94 91 217 95 163 19.9' 70 25 43 60 56 182 196 37. n.a. 135 220 592 148 216 227 3.0.4 225 114 115 97 341 222 230 106; 100 125 68 43 71 92 58 f8J6 238 191 412 369 373 499 207 340 J Preliminary. el Estimated by Federal Reserve. 1/ Gross proceeds exceed net proceed, y the cost of flotation. 2/ For total see Exhibit H; other issuers are extractive, railroad d other transportation, real estate and finance and commercial and other, Source.--Secu "ities and Exchange Commission- Other Security Offerings (In millions of dollars) 1963 January February March April May June July August September October November December Gross Ion e-term 1/ Foreign government 2/ 1 1963 1 1962 1 1961 232 133 76 57 114 11 ' 62 e/ 70 Jan.-Aug. e/ 75:5 Federal agency 3/ | 1961 1962 -- 148 246 156 186 461 459 -- 252 100 149 278 150 175 250 193 43 34 -- 225 -- -- 737 236 1,188 1,448 366 159 1,013 1,029 142 10 35 10 86 50 25 8 31 151 88 101 Year 1 6 29 20 2 66 29 5 2 -- --- e/ e/ -- 793 Net Short-term 4/ Year Jan.-Aug. g/ 1/ 2/ 3/ 4/ 5/ - ' 18 466 -186 127 -84 -118 78 339 -406 71 234 -161 640 " 674 247 -156 226 -364 82 284 261 227 -157 379 55 -80 1,004 520 378 2/125 -106 -189 -482 292 195 319: 414: 327 160 195 -8 -103 -42 -155 109 518 -86 -6 54 -116 : : o 807 I 75 272 -367 589 -189 -149 -62 2./ -44 - 1 State and local government 5/ January February March April May June July August September October November December -144 -162 -174 -79 -87 207 22 193 108 98 56 -114 -76 -224 Preliminary, e/ Estimated by Federal Reserven. a.--Not available. These data differ 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 United States by foreign governments and their political subdivisions and international organizations. Source: Securities and Exchange Commission. Issues not guaranteed by the U. S. Government. Source: long-term, Securities and Exchange Commission; short-term, Treasury Department and Federal Reserve. These data differ from those in Exhibit H and above in that they represent new offerings less retirements, whether from the proceeds of refunding issues or from other funds. Data include only issues with original maturity of one year or less. Principally tax and bond anticipation,notes, warrants or certificates and Public Housing Authority notes. In some instances pHA notes included may have a somewhat longer maturity than one year. Source: Bond Buyer and Federal Reserve. 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) ! Month Total 1 1962 - September ; October November December 1963 - January February March April May i \ July August September Corporate Bonds Convertible (Other than bonds convertibles) 191 434 178 198 234 186 394 409 149 348 221 236 237 100 398 178 178 215 125 372 263 149 348 180 218 215 Stocks 91 36 153 320 217 193 344 367 570 431 489 472 279 329 135 20 19 26 22 146 -- 35 State and local government 41 18 22 Other 2/ 194 25 75 48 63 134 43 460 60 20 Large Individual Issues Offered September 1 through October 4 Issuer CORPORATE CIT Financial Corp. N )rthern States Power Co. *New England Tel.&Tel. Co. uow Chemical Co. i ,1 STATE AND LOCAL GOVERNMENT |State of Washington iNew York City, New York ;Houston Ind. Sch. Dist., ' Texas Detroit, Michigan New Orleans, La. Municipality of Metro., Seattle, Wash. State of North Carolina Baltimore, Md. Los Angeles Unif. Sch., Dist., Cal. Douglas Co. Pub.Util.Dist. No. 1, Wash. OTHER - None Type 3/ Deb. 1st mtg. bds. Com. stk. Deb. Amount (millions of dollars) 100 .0 15,.0 22,.0 100..0 .1984 1993 4.55 4.38 Aa 1988 4 .35 4.35 Aa 3 .09 3,. 66 3,.22 2.00-3.20 2.00-3.65 2:.25-3.40 3,.20 3,.29 3.,67 21.05-3.50^ A 2:. 15-3.40 A 2 .60-3.70 2.,83 3.,07 3. 09 1 .90-2.90 • 2 .00-3.30^' Aa 1 .90-3.20 Aa 35.,8 25. 6 10. 0 1964-81 1964-2012 1966-92 G.O. G.O. Rev. -Ut. 11. 5 14. 7 15. 0 1964-88 1965-88 1967-2002 G.O. G.O. G.O. 22. 0 47. 5 25. 0 1964-80 1964-99 1964-88 39. 9 144.,2 1974-91 2018 Rating 4-1/2 4-3/8 Rev. -S.T. G.O. G.0. Rev. -Ut. Coupon Offerrate or net ing interest yield cost Maturity u 3. 15-3.75 3.95 A A A —— -- H.14 \| K-2 Footnotes *--Rights offering. n.a.--Not available. I./ 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/ 1/4 per cent bonds maturing 1987-88 not publicly reoffered. 5/ Bonds maturing 1996-99 not publicly reoffered. H.%4 . Exhibit L 17 Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U. S. Treasury) \J Expected Proceeds from Forthcoming Large Issues Date of 5 computation During month following date shown State and Corporate local govt. Other 2/ % U 9 6 2 - Sept. 28 % Oct. 31 3 Nov. 30 | Dec. 28 *1963 - Jan. 31 1 Feb. 28 $ Mar. 29 Apr. 30 May 31 June 28 July 31 Aug. 31 Sept. 30 363 203 170 269 167 142 376 149 223 170 221 158 240 187 96 194 177 376 458 381 447 255 142 329 210 561 Subsequent to date shown State Corporate local it | 546 328 360 314 412 572 421 234 288 215 267 183 240 75 25 45 40 460 75 20 Other 2/ 387 243 328 311 843 755 763 599 582 287 512 468 757 Forthcoming Large Offerings, as of October 7 Issuer CORPORATE Subscription Television, Inc. General Acceptance Corp. •Household Finance Corp. United California Bank •Pacific Gas & Electric -STATE AND LOCAL GOVERNMENT :|Lewisport, Ky. -jNew York State Bridge Auth. |State of Massachusetts ,Kansas City, Missouri Los Angeles Dept. of Wtr. & Pwr., California ' Cincinnati, Ohio Wayne Co., Michigan Buffalo, N. Y. State of Louisiana Austin, Texas \ Penna. State Highway & Bridge Auth. Cleveland City Sch. Dist., Ohio Los Angeles Co. Flood Control Dist., California Type Com. stk. Deb. Deb. Com. stk. 1st mtg. bds. Amount (millions of dollars) Approximate date of offering 22.8 20.0 100.0 26.9 70.0 October October October October October 7 9 15 .22 (rts. ex. ) 30 Rev.-Rent. Rev.-Q.Ut. G.O. Rev. -Ut. 50.0 25.0 39.6 12.0 October October October October 7 8 8 9 Rev.-Ut. G.O. Rev.-Q.Ut. G.O. G.O. Rev.-Ut. 12.0 17.5 33.0 12.0 30.0 14.0 October October October October October October 9 9 10 10 16 17 Rev.-Q.Ut. G.O. 35.0 10.0 October 18 October 25 Rev.-Q.Ut. 15.0 October 29 75 25 33 45 40 460 75 20 H. 1 4 L-2 Forthcoming Large Offerings, as of October 7 (Cont'd.) Issuer STATE AND LOCAL GOVERNMENT (Cont'd.) Iowa State University Los Angeles Dept. of Wtr. & Pwr., California East Bay Mun. Util., Dist. , Cal. Pittsburgh, Pa. Dade County, Florida Jacksonville Expressway Auth., Fla. Houston, Texas Type Amount (millions of dollars) Approximate date of offering Rev.-Rent. 16.0 November 15 Rev.-Ut. G.O. G.O. G.O. Rev.-Ut. G.O. 21.0 27.0 35.0 46.0 40.0 11.1 November 20 November 20 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 issues and non-guaranteed issues of Federal agencies. Note.--Deletions for reasons other than sale of issue: None. H. 14 Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Date Amount (millions of dollars) Issuer and Description of Issue A. 7/10 20.0 7/10 7/l7 20.9 25.0 7/17 15.0 8/1 20.0 8/2 7.3 Public Offerings Sold July 1 through October 4 Milan, Italy—5-1/2% bonds, due 1978—reoffered to yield 5.637. Hitachi, Ltd.--Common stock United Mexican States—6-3/4% sinking fund bonds, due 1978—reoffered to yield 7.007, United Mexican States—6% bonds due 1966-68-reoffered to yield 6.00% Nippon Telephone & Telegraph Public Corporation—5-3/4% guaranteed sinking fund bonds due 1978--reoffered to yield 6.087. Tokio Marine and Fire Insurance Co.—common stock B. None Prospective Offerings H. 14 M-2 Part II: Date reported Amount (millions of dollars) 7/18 26.0 7/18 4.0 8/6 2.1 8/6 5.0 •3/13 V13 Private Placements--Reported July 1 through October 4 Issuer and Description of Issue Pacific Petroleum Ltd.--5-1/2% secured notes, maturing 1978--no information available on takedown Copenhagen County Auth., Denmark-5-1/2% external notes, maturing 1968--no information available on takedown Banco Nacional de Credito Agricola; S.A., Mexico City-6-1/2% promissory notes, maturing 1964-68--no information available on takedown Austrian Investment Finance Corp.--notes, maturing 1973--no information available on takedown Manitoba Electric Power Commission--5-7/8% notes, maturing 1983--no information available on takedown Union Acceptance Corp.--6-1/4% debenture, maturing 1974-78--no information available on takedown Note: 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 this Exhibit and that shown in Exhibits I and JP because the latter includes privately placed securities in the period in which funds are actually tnkendown but only in the amount of takedown, while the placements shown in this exhibit are included when reported, frequently with little or no informntion concerning timing of takedowns. Full or partial takedowns may take place both prior and subsequent to the date a placement is reported. *--Included in table for first time.