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Not for P u b l i c a t i o n — ^ ^ O W R O L L E D A P T ® SIX MOUTHS H.14! ! „ - ' : | September 20, 1965. I •CAPITAL MARKET DEVELOPMENTS | IN THE UNITED STATES Corporate and municipal bond markets. The volume of public security financing this week in both the corporate and municipal markets will be about the same as last week's v-ry large totals. A $125 million Household Finance Corporation bond issue will make up nearly two-thirds of the corporate supply, while the largest municipal offering on the calendar is a $50 million State of Ohio issue. 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. 107 203 15 Sept. 10 Sept. 17 71 r/ 200 155 335 -- 200 298 -- 2 -- Scheduled: Sept. 24 1/ Federal Reserve estimates based on published reports of issues sold and scheduled for offering; corporate rights offerings are included as of the date subscription rights expire. Last week's immediate sell-out of the $100 million offering of Southern Bell Telephone and Telegraph Company bonds--priced to yield several basis points less than recent yield developments might have suggested--caught most observers by surprise and changed ths tone of the market considerably and contributed to the rapid distribution of the week's other new issues as well as those still bound by syndicate price restrictions. Reflecting these developments, the series of average yields on new corporate bonds (Aaa basis) declined 3 basis points. In the municipal market, the continuation of relatively inactive investor demand induced dealers to cut prices. Yields on seasoned Aaa-rated bonds rose by 4 basis points, reaching their highest level since early 1962. Mcr^cver, the poor recepti:r. of the week's new issues--only about one-half of the $105 million State of California issue was spoken for--contributed to the further build-up of dealers' advertised inventories of unsold bonds. H. 14 Yields in Securities Markets Level latest week (per cent) Change from preceding week (basis points) High-Grade Notes and Bonds Corporate New Seasoned 4.67 4.52 - 3 U. 5. Govt. Long-term 3-5 year 4.25 4.22 + 2 State and local Govt. Moody's Aaa Standard and Poor's high grade 3.25 + 4 3.36 + 4 4.12 + 6 3.88 4.0'. - 1 + 1 Money Market Federal funds Treasury bills 3-month 6-month - 1 Corporate Bonds Still in Syndicate None. Blue List of Municipal Dealers' Advertised Inventories (Millions of dollars) Latest Date 791 (9/16) End of Previous Week 777 Recent High 901 (6/4) Mortgage yields and conventional mortgage terms. Secondary market yields on FHA-insured, 30-year mortgages averaged 5.45 per cent in August. This was one basis point higher than in the preceding two months but within the narrow range of 5.44-5.46 per cent which has prevailed since early 1963. Contract interest rates for conventional first mortgages on existing homes in August rose from 5.85 to 5.90 per cent, according to the Federal Housing Administration which reports these rates rounded to the nearest five basis points. Comparable rates on loans for new home purchase remained at the earlier reduced average of 5.80 per cent, however. H. 14 -3- Loan-to-price ratios on conventional first mortgages for new as well as existing homes were at or near earlier highs in July. The latest month for which such data are available from the Federal Home Loan Bank Board. The average for new-home loans in July was 75.0 per cent; for existing-home loans, 72.5 per cent, as shown in Exhibit F, Part III. Maturities on loans for new homes averaged 25.0 years in July and were somewhat more liberal than in June. Maturities on existing properties, which had advanced further in the early part of the year, were unchanged at 20.6 years. Stock market credit. Total customers' credit in the stock market rose $41 million during August, a month in which average stock prices rose more than two per cent. Customers' net debit balances (except on U. S. Government securities) went up $23 million, and bank loans to others than brokers and dealers (excluding those on Governments) rose $18 million. Borrowings by member firms of the New York Stock Exchange on customers' collateral increased $9 million. Customers' free credit balances, on the other hand, went down $40 million. More detailed information on changes in stock market credit in recent months are shown in the table on the following pages. Stock prices. Common stock prices advanced further last week in active trading. Prices--as measured by Standard and Poor's index of 500 stocks--rose one per cent to close at 90.05 on September 17, only slightly under their all-time high of mid-May. Trading volume averaged 7.0 million shares a day--the highest weekly average since early June 1962. 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. H. 14 STOCK MARKET CREDIT (In millions of dollars) Months Total Customer Credit Broker & Dealer Credit Net debit Bank loans to others Money Customers 1 balances with borrowed than brokers and net free NYSE member dealers for purchas- CusL [Other credit coll. firms 1 coll. balances ing & carrying secur. Outstanding: 1955-56 High 4,047(5/56) 2,823(12/56) 1,255(4/56) 1,873 430 1,069(1/55) 1957-58 Low 3,554(1/58) 2,482(12/57) 1,060(11/57) 1,,344 188 807(4/57) 1959 1960 1961 1962 1963 4,764(4) 4,142(5) 5,602(12) 4,876(7) 7,298(11) 3,401(4) 3,004(7) 4,259(12) 3,562(7) 5,586411) 1,373(5) 1,121(5) 1,377(8) 1,269(9) 1,727(12) 2, 044 1, 801 2,572 1, 856 3, 892 318 1,257(3) 237 . 940(4) 1,508(4) 385 235 1,091(9) 1,211(11) 597 7,242 7,053 6,874 5,515 1,727 3, 852 597 1,210 5,079 4,886 1,9:1,988 3,:393 3, 108 5 L7 ; 18 1,169 : 10 3 U -64 46 -41 7 -55 -113 -68 69 60 84 -1 -251 41 -102 34 -36 -25 -81 -93 21 48 11 63 -15 -251 23 38 12 -3 32 26 -20 -89 21 49 21 U -18 -54 •50 -40 •59 •76 - High Low High Low High 1963 - Dec. 1/ 1964 - Zee. 1965 - Aug. Changes in Outstanding: 1964 - Aug, Sept. Oc t. Ni v Dec . - " - Jan. Feb. Ma r. Apr, May J uric July Aug, 1 5 82 -29 "43 33 -71 43 102 -64 -3 1 06 * 1 -1 182 7 -2 9 -320 9 23 -37 68 :0 -2 -• 38 38 10 -57 1 89 -64 -->0 Note: With the exception of bank loan data, figures are reported to the New York Stock ^ Exchange by member firms carrying margin accounts. Bank loans to others than brokers and dealers for purchasing and carrying securities are for weekly reporting member banks. Net debit balances and customer free credit balances are as of the end of the month: bank loans and money borrowed are reported for the last Wednesday of the month. 1Numbers in parenthesis denote month of year. All figures exclude credits on, or to carry,, U.S. Govt.i securities. \f November 1963 data on customers' net debit balances do not include accounts carried by a large former member firm in liquidation; most of these accounts have been transferred to other member firms and are reported in t h e i r debit figures from the month received (some in December, more in January 1964). Debit balance totals for the period from October 1963 through January 1964, therefore, are not completely comparable. LONG-TERM BOND YI1LDS, H I G H - G R A D E Weekly \ y \ - V \ ru XV Exhibit A — Corporate Aaa 1/ " V W X Part II U. S. G o v t , long-term £ / S t a t e and local government Aaa 3 / (per cent) 1959-60 1961-62 1962-63 1964 - High High Low High Low 1965 - High Low Aug. 20 Aug. 27 Sept. 3 Sept.10 Sept. 17 j>/ Spread between II. 8 . G o v t , and S t a t e and Corporate lo?*l - i ! L t : S W 4.52(9/17) 4.41(3/12) 3.85 (12/28/62) 4.20 (4/ 4.11 f 4.25(9/17) 4.13(6/25) 3.65(9/24/59) 3.3?iW61) 2.88(13/8/62) 3.16(3/%) 2.99(12/31) 3.25(9/16) 2.94(2/11) .59 .57 .21 .33 .19 .34 .25 .92 1.04 .80 1.14 1.01 1.22 .96 4.50 4.51 4.51 4.52 4.52 ' 4.20 4.21 4.22 4.23 4.25 • 3.15 3.17 3.18 3.21 z 3.25 / .30 JO .29 .29 .27 1.05 1.04 1.04 1.02 1.00 l'^le/15/61) 4.19(3/29/63) 2:£l«> «/ Preliminaafye f y Weekly average of d a i l y figures, Average term of bonds included i i 22-24 years, l J Weekly average of d a i l y figures. The series includes bonds due or callable i n 10 years or more. V Thursday figures. Only general obligation beads are inoludedi average term te 20 ysare. Note.—4tt|hs and lows are f o r individual series and may be on d i f f e r e n t dates f o r i l f f a r e n t series. For spreads, high rsfer* to widest, and lew to narrowest. L O N O - T I R M B O N D YIELDS, I O W I R O R A D I Weekly •L C O I P O I A T I See H v ID t O C A l O O V I t N A w , • r - / V Exhibit B -- Part II Corporate Baa 1/ Da te State and local govt. Baa 3 / Spread between Aaa and Baa State and Corporate local govt. (per cent) 1959-60 - High Year end - 1961 1962 1963 1964 1965 - High Aug. Aug. Sept. Sept. Sept. Notes 20 27 3 10 17 £ / 5.36 (2/12/60) 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 3.63(9/16) 3.40(2/11) .84 .66 .70 .48 .37 .41 .35 1.08 .73 .63 .49 .52 4.89 4.89 4.90 4.92 4.91 / 3.55 3.56 3.56 3.58 3.63 .39 .38 .39 .40 .39 .40 .39 .38 .37 .38 For footnote® see Exhibit JL* .52 .37 7 S N O U T - A N D I N T I R M I D I A T I . T I R M IN GOVERNMENT Exhibit C — Discount 3-month ra te bills 2/ 1/ Date 1959-60 - High Year end - 1961 1962 1963 1964 1965 - High Low Aug. Aug. Sept. Sept. Sept. 20 27 3 10 17 £/ Part II Yields 6-month bills 2/ (per cent) 3-5 year Issues 21 Spread between yields on 3month bills and vlelds on 6-mo. bills 13-5 vr. issues 4.00 3.00 3.00 3.50 4.00 4.00 4.00 4.59 (V9/60) 5.07(1/0/60) 2.90 2.66 2.93 2.89 3.64 3.52 3.93 3.83 3.99(2/26) 4.04(9/17) 3.82(6/25) 3.78(6/25) 5.00(1^2^59) 3.81 3.41 4.07 4.07 4.23(9/10) 4.04(1/22) .79 .24 .04 .13 .10 .16 .03 1.81 . 1.15 .52 .55 .24 .38 .11 4.00 4.00 4.00 4.00 4.00 v 3.82 3.86 3.87 3.89 3.88 " 4.20 4.21 4.22 4.23 4.22 .11 .10 .13 .14 .16 .38 .35 .35 .34 .36 3.93 3.96 4.00 4.03 4.04 / V Weekly rata shorn* le that in effect at end of period at the federal Reserve Bank of Mew York* y Market yield; weekly averages computed from dally closing hid prices. Series of 3-5 year issue# consists of selected notes and bonds. Note.—Highs and lows are for individual series and may be on different dates for different series, Tor spreads, high refers to widest, and lew to narrmrest. EXHIBIT 0. fori 1 S H O R T - A N D I N T E R M E D I A T E - TERM INTEREST RATES, B A N K S A N D OTHER P R I V A T E B O R R O W E R S - "'I E x h i b i t D -- P a r t II Prime rate Da te 1959-60 - High Y e a r end - 1961 1962 1963 1964 1965 - High Low Aug. Aug. Sept. Sept. Sept. 20 27 3 10 17j)/ . 1/ Finance company Federal funds 3/ paper 2/ (per c e n t ) (1/22/60) 4 . 0 0 (5/13/60) 2.88 3.00 Spread b e t w e e n 3 - m o . bills and finance co. paper 1.02 .34 .30 .36 .23 5.00 4.50 4.50 4.50 4.50 5.13 3.00 3.19 3.88 4.06 4.50 4.50 4.25(9/1?) 4.00(2/12) 4.12(9/17) 3.68(1/22) .47 .10 4.50 4.50 4.50 4.50 4.50 4.25 4.25 4.25 4.25 4.25 4.12 4.12 4.05 4.06 4.12 .43 .39 .38 .36 .37 3.50 4.00 V Weekly rate shorn is that In effect at end of period. Prime rate is that charged by large bank# on short-term loans to business borrowers of the higiest credit standing* 2/ X v e m g c of daily rates published by finance companies for directly placed paper for varying maturities in the 90-0.79 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# Notes—flighs and lows are zor individual series and may be on different dates for different series. For spreads, high refers to widest, and low to narrowest. STOCK MARKET tlllioni e I d o 11 o r i . - , STOCK M A I KIT C t E D I T : A\a LULL-MA^ Exhibit E Common Da te Stock price index 1/ yields 2/ (per cent) Part II Trading volume 2/ (millions of shares) Stock mar ket customer credit Customers' Bank debit balloans to ances 4/ "others" 5/ Total (In millions of dollars) 1961-62 - High Low Year end 1963 1964 1965 - High Low 72.04(lW6l) 52.68(6/22/62) 2.80 3.96 10.1 2.4 74.44 84.75 3.13 3.02 90.10(5/14) 83.06(6/25) 2.89 3.15 5,602(1^61) 4,424(1/61) 4,259 (12/61) 3.253(1/61) 1,418(5/9/62) 1.161(3/0/61) 4.7 4.7 7,242 7 *053 5,515 5.099 1,727 1.974 7.0 3.8 7,085 6.872 5,129 4,863 1,988(8/25) 1,848(3/3) July 84.91 3.09 4.1 6,833 4,863 1,970 Aug. 86.49 3*06 5.0 6,874 3,886 1,988 Sept. 3 88.06 3.01 n.a. 5.6 1,975 Sept.10 89.12 n.a. 2.97 6.5 1,982 Sept.17b/ 90.05 2.94 7.0 n.a. n.a. n.a. n.a.—#ot available* v/ Preliminary. V Standard and Poor's oooposite index of 500 cocoon stocks, weekly closing prices, 1941^43*10. Monthly data are averages of daily figures father than of Friday's only. Highs and lorn are for Friday's data only. 2J Standard and Poor's composite stock yield based oo Wednesday data converted to weekly closing prices by Federal Reserve* Yields shewn are far dates on which price index reached its high or low. 3/ Averages of daily trading volume on the *ew Yerk Stock Exchange* Ye art-end figures are averages of daily figures for the yeart V End of month figures for umber firms of the Hew York Stock Exchange idiith carry margim accounts# excludes balances secured by D. S. Government obligations. 5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying U. S. Govemnent securities* Weekly reporting banks account for about 70 per cent of loans to others. For further detail see Bulletin. ) MORTGAGE AND BOND YIELDS ^ !— HOME MORTGAGES: Aaa C O R P O R A T E B O N D S : 1957 1960 1959 1958 1961 FHiI ages 2/ Conventional mort25-year 30-year g a g e 3/ - Low - High -Low - High - High Low 4.68 5.63 5.35 6.24 5.72 5.43 1965 - May June July Aug. 5.43 5.43 5.43 5.44 1956 1957 1958 1959-60 1961-65 1963 1962 1964 Spread beAaa Corporate tween yields Bonds on conv. & N e w ^ Seasoned^ FHA mort- «». y 1966 1965 Spread between yields on new corporate bonds and FHA mtgs. Seasoned 4/ 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 4.49 4.22 .76 1.58 .88 1.69 1.48 .82 5.45 5.44 5.44 5.45 5.80 5.80 5.80 5.80 .35 .36 .36 .35 4.51 4.58 4.61 4.63 4.44 4.46 4.48 4.49 .94 .86 .83 .82 ... 1.03 .05 .73 .39 -: 16 .07 .12 .13 .14 Xelther mortgage nor bond yields take into account sex-rlolng ooete .which ere amah higher for mortgagee than bonds. Generally, bonds pay interest Bemi-*nnu»llyj mortgages, monthly# Mortgage yields, If computed as equivalent to a seml-«zmual Interest investment, iculd be slightly higher than given in , the table. f Based on IHArtfield-^ffice opinions about average tdd prices In the private secondary market tar newhome mortgages for immediate delivery. Separate data available for 25-year and^—beginning Jtiy 196 lr— 30-year mortgages with mini mam dcwnpaynwits, weighted by probable volume of transactions. Yields competed by rax, assuming prepayment period of 12 years fear 25—year mortgages and 15 years for 3&— year mortgagee. Over the period far -which they can be compared, the movement of the two mortgage yield series has been similar. Dae had linos indicate periods of adjustment to. changes in contractual Interest rates. ' Based on FHJL field office opinion on typical Interest rates (rounded) on convent!coal.'first mortgages prevailing in the market areas of Insuring office cities. Beginning with April 1960, rate relates only te new-home mortgagesj prior to that date, rate rslated to both new as well as eadLstlng^on mortgagee. Dashed line indicates this chenge in the series. f 7HX mertgage yield data are for 23-year mortgages through June 1961; 30-year mortgages thereafter. r See note for Exhibit G. FRASER ' Moody's Investor Service. Monthly averages of daily data* See exhibit X» Digitized for C O N V E N T I O N A L M O R T O A O I TERMS ' MATURITY NEW EXISTING X ^ " LOAN PRICE/RATIO 1964 Exhibit F Part IV New Homes Bxiiiting Homes Loan Fees & Loan / Loan Charges Maturity Price Charges Maturity Price arat. Rate (Per (Years) ratio (Thous.) Rate (Per (Years) ratio (Thous.) (Per (Per (Per (Per cent) cent) cent) 2/ cent) 2/ 1964 July Aug. Sept. Oct. 1965 Jan. Feb. Mar. Apr. May July 5.76 5.76 5.77 5.77 5.75 5.75 5.76 .59 .52 .58 .57 .58 .55 .59 25.4 24.5 24.7 25.0 24.5 24.7 25.2 74.3 73.9 74.4 74.2 73.2 73.5 73.9 17.3 17.4 17.8 17.6 17.4 17.4 17.8 5.89 5.93 5.90 5.93 5.91 5.94 5.92 .52 .53 .53 .55 .52 .57 .56 20.2 20.4 20.1 19.8 20.0 20.3 20.1 71.6 71.4 71.4 71.7 13.6 13.9 13.6 13.4 13.3 13.8 13.7 5.79 5.79 5.72 5.74 5.77 5.76 5.77 .59 .61 .49 .51 .53 .49 .55 24.7 24.9 24.9 24.9 24.9 24.6 25.0 74.0 74.0 73.7 73.7 74.4 73.9 75.0 17.5 17.6 18.5 18.1 18.2 17.5 18.3 5.95 5.93 5.91 5.89 5.88 5.86 5.86 .54 .54 .55 .49 .48 .49 .49 19.9 20.3 20.9 20.4 20.3 20.6 20.6 71.6 72.6 72.7 71.8 71.9 72.1 72.5 13.6 13.8 14.6 14.0 14.1 14.3 14.5 70.9 71.4 71.4 1f Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Da1 are weighted average# based on probability sample surrey of characteristics of conventional first mortgages originated by major institutional lender groups, (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning, or modernisation; construction loans to home-builders; and—An this exhibit—-permanent loans which are coupled with construction loans to cwnen-buildere# Data are still in a developmental stage and may reflect seasonal influences which cannot yet be measux&d because the series go back only to end of 1962* Related series on conventional mortgage rates only, based on unweighted opinions of regional-office directors cf the federal Housing Administration, are available somewhat sooner than the results of FHL8WDIC survey, and are included—da the ease of new home mortgage rates—in Exhibit F, Parts I 2f Fees and chaxigee—expressed as a percentage of the principal mortgage amount—include lean 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. ! 1 £ X H 1 8 IT O, Port \ YIELDS O N NEW AND SEASONED CORPORATE BONDS Exhibit 0 - part II Yields on New Corporate Bond taaues Adjusted to an Aaa baa la Number Aa't of lasuea Average yield Included (mil. of (per cent) of dollars) Number Aa't of issues Average yield of Included (mil. (per cent) issues of dollara) Weekly averagea: 1965 - Jan. Feb. Mar. Apr. May June July Aug. June 3 3 7 4 8 4 8 7 94.0 111.0 157.8 115.0 315.0 100.0 . 278.0 166.5 Weekly average 1965 - High Low 4.42 4.41 4.45 4.46 4.51 4.58 4.61 4.63 4.71(8/27) « 4.33(1/29) 4 11 10 25 July 2 9 16 ?3 30 Aug. 6 13 20 27 Sept. 3 10 17 — — — 2 35.0 4.60 2 65.0 4.58 3 3 2 3 1 1 2 2 2 2 121.0 102.0 55.0 80.0 17.0 19.5 50.0 43.5 65.0 120.0 4.67* 4.56 4.58 4.58 4.64 4.67* 4.71 4.69 4.70 4.67 Before averaging, new offerings are adjusted to a mnmosite l u bull ty deducting from the aotual reoffertng yield the excess of the weekly average yield for seasoned toads of the appropriate Indnetryquallty group over the composite average for seasoned ias^rated bonds (Moody's), Averages considered unrepresentative because of special characteristics of tie offerings Included are denoted by an asterisk^ . Exhibit K H.14 Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) New Cay ital 1965 January February March April May June July August September 795 746 1,197 1,946 e/1,250 October November December 1st 2nd 3rd 4th quarter quarter quarter quarter 1st half Three quarters Year 2,738 4,789 «/3,327 e/lI'Ml Corpora te 1964 r / State and Local 2/ 1964 1963 1963 1965 613 594 1,144 2/803 2/872 2/946 947 776 810 732 746 976 2,237 1,095 1,405 930 904 1,013 2/824 2/921 2/943 1,242 667 903 869 866 930 812 680 1,130 , 676 637 795 e/950 e/650 e/850 906 780 892 680 708 449 953 669 1,642 1,013 819 1,415 801 529 948 1 ,051 729 416 2,416 4,738 2,621 3,264 2,3)1 2,847 2,109 3,246 2/ 2,621 e/ 2,688 e/ 2,450 2,533 2,811 2,578 2,278 2 ,454 2 ,665 1 ,837 2,,197 7,153 9,775 13,038 5,198 7,307 10,553 e/ 5,310 5,345 7*923 10,201 5,,118 6,,955 9, 151 938 . 700 778 Excluding finance companies 3/ 1st 2nd 3rd 4th quarter quarter quarter quarter 2,547 e/4,389 e/2,977 Year e/ 2/ If 2/ 3/ 2,043 4,283 2,482 3,006 11,813 2,284 2,529 1,768 2,854 9,434 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 finance companies. H. 14 Exhibit I New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) Gross proceeds for new capital and refunding 1/ Quarter or Total Month Net proceeds for new capital 1/ 2/ Bonds Common Memo: Foreign Publicly Privately and issues Offered Offered Pfd. stock included Mfg. Public J Communi- Other Utility!cations issuers 1963 - I II 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 47 947 591 806 968 326 794 285 530 236 221 150 118 1,629 1964 - I II III IV 2,548 4,965 2,876 3,568 978 1,321 792 531 1,269 1,755 1,590 2,629 300 1,890 494 408 29 105 94 227 429 723 559 1,061 438 856 642 509 .273 1,666 59 135 1,275 1,492 1,361 1,559 1965 - I II III IV 3,007 5,043 906 1,864 1,673 2,259 429 920 243 215 1,072 1,679 541 609 91 255 1,034 2,246 1964H/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 £./ 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 n.a. 385 192 494 540 698 441 416 300 97 215 229 176 248 184 203 200 21 44 26 15 143 98 102 20 292 295 448 422 602 1,223 506 330 842 1,241 868 £ / 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 Government </ 1965 1964 1963 218 — 38 73 s/ e/ 91 15 50 e/ 493 Year 4 82 69 30 75 26 20 13 7 180 72 58 232 133 76 57 114 11 63 83 129 185 325 Federal Agency 3/ 1963 1964 148 — — 186 — — 775 2/ — e/ 239 459 275 260 160 — • — —— — — —— 510 174 200 — — • 2 319 769 636 771 — e/1,653 695 793 1,205 1,167 New short-term 4/ Federal Agency 3/ State and Local Government 5/ January February March April May June July August September October November December Jan.-Aug. 238 91 -458 647 204 -82 B/ 3 n.a. n.a. Year 103 236 -407 442 81 -80 -9 127 176 7 -15 -208 75 272 -367 589 -30 -10 62 208 -173 259 146 -339 -137 -174 117 -11 509 237 132 e/42? -308 -336 23 97 183 239 -333 167 1 525 113 -3 -332 -255 -161 202 195 319 415 326 258 123 -102 551 593 799 e/l,100 -268 709 453 692 368 1,539 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. 2 / Issues not guaranteed by the U.S. Government. Source: Long-term, Securities & Exchange Commission; short-term, Treasury Dept. & Fed. Reserve, ijlhese 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 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.Rob 11 H. 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 1964 - Aug. Sept. Oct. Nov. Dr;c 196) - Jan. Feb. Mar. Apr May June July Aug. C o r n o n ate Bonds Convertible (other than convertibles) bonds 215 269 108 142 376 187 -- -- 230 139 217 513 307 928 801 477 299 200 11* 131 233 210 560 343 455 211 17 2C -- -- 15 86 280 97 -- -- Corporate c>- c rgia Pwr. Co. C;nscl. Nat. Gas Co, Ala. Pwr. Co. T.-nnessee. Gas Trans. Co. Penna. Elec. Co. Southern Bell Tel. & Tel. Co State and Local Government State of North Carolina State of New York Cuyahoga Co,, Ohio Stat, of California P^nna Cen. State. Auth. Star of New Hampshire Florida Dev Comm Type 1 / Amount (millions of dollars) bds Jb 1st mrg 2^.0 Deb -+0 0 1st m:g. bd-> 60,0 Deb. 20-C Deb. v • i00.0 Lf b - . GO 0 0 G.O COc.o Iv3-v . -Rent c.o Rev - S i -- ; 3 320 22 62 25 0 72 0 12.3 80.0 25.0 30.0 2b. 1 19. s Other 315 138 -- 26 2/ ' 104 15 502 15 459 558 419 226 541 419 446 395 411 492 377 655 312 -- 81 79 30 LargK Inaivicujl Issuer Stocks State and local governments -- 235 130 19 260 40 340 20 50 Issu s Cfivred : Sept. 1 through 10 Coupon rate or net interest cost Offering yield 1995 1990 1995 1985 1990 2000 4-7/8 4-3/4' >-"/8 5-1/6 5 4-3/4 4.78 4. 72 4.83 5.25 4.85 4.68 A Aa A Ba A Aaa 1966-82 1966-85 19b6-cT 19*7-91 19c7-85 1966-92 1966-95 1968-92 3 00 3 05 3,13 42 3,36 j 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 Aa Aa Aa Aa Maturity Rating Aaa Baa ' K-% Large Individual Issues Offered Sept. 1 through 10 (Cont'd) Issuer Type 3/ Amount (millions of dollars) Maturity Coupon rate or net intei est cost Offering yield Rating Other European Investment Bank Bonds 20.0 1985 6 6.04 ^--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. j H. 14 Exhibit L Forthcoming Large Long-term Public Security Offering for New Capital (Other than U.S. Treasury) y . Expected Proceeds from Forthcoming Large Issues (In millions of dollars) During month following 1 1 Corporate * 1 9 6 4 - Aug. ' Sept. Oct. Nov. Dec. 1965 - Jan. Feb. Mar. Apr. May June July Aug. 31 30 30 30 31 29 26 31 30 28 30 30 31 402 186 -- 90 105 169 407 267 852 765 363 ' 193 312 State and 511 . 500 254 360 306 242. 316 212 411 328 397 248 404 Other g/ Corporate 15 442 186 -- -- 25 215 130 105 253 504 792 85% 923 410 240 636 60 25 70 20 Subsequent to date ahown State and local govt. 680 626 549 563 435 382 . 599 373 635 474 524 • 352 450 Other I ) 15 25 215 60 25 70 • 20 -- Forthcoming Large Offerings as of Sept. 17 * Issuer \ Type Amount (millions of dollsrs) Approximate date of offering 18.0 125.0 75.0 30.0 25.0 15.0 40.0 50.0 20.0 20.0 20.0 25.0 22.0 30.0 Sept. 21 Sept. 21 Sept. 28 Sept. 29 Oct. 6 Oct. 6 Oct. 7 Oct. 17 Oct. 26 Oct. Nov. 23 Indefinite Indefinite Indefinite Gensutt Arvin Indus. Inc. t Household Finance Corp. • Commercial Credit Co. ( Pacific Power & Light Co. * Indiana Bell Tel. Co. Kansas City Power & Lt. Co. . Columbia Gas System •^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. S. F. deb. Deb. Notes 1st mtg. bds. Deb. 1st mtg. bds. Deb. S. F. deb. 1st mtg. bds. Deb. 1st mtg. bds. Deb. Deb. S. F. deb. p L-2 Forthcoming Large Offerings as of Sept. 17 - Issuer Type (Cont'd) Amount (millions of dollars) Approximate date of offering State and Local Government Los Angeles Co. Flood Control Dist., Cal. State of Massachusetts ^Saginaw-Midland Mun. Wtr. Sup. Corp. *New Haven, Comm. El Paso, Texas La. Capital Construction and Imp. Comm. Honolulu, Hawaii -St. Louis Co., Mo. *Salt River Proj. Agr. & Imp. Pwr. Dist., Ariz. Nassau Co., N. Y. Met. Seattle Wash. ^Austin, Texas *S;nte of Maryland '*Los Angeles , Calif. Dade County, Fla. Rev. -Q. -Ut. G.O. Rev. -Ut. G.O. Rev. -Ut. Rev.-S.T. G.O. G.O. Rev.-Ut. G.O. Rev.-Ut. Rev.-Ut. G.O. Rev.-Q.-Ut. G.O. 40.0 34.7 13.7 10.0 10.5 25.0 10.0 15.0 27.5 30.0 10.0 14.0 43.6 16.5 46.0 Sept. 21 Sept. 21 Sept. 22 Sept. 23 Sept. 22 Sept. 22 Sept. 23 Sept. 29 Sept. 29 Sept. 30 Oct. 7 Oct. 7 Oct. 19 16 Nov. 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 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 September 17 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%.*** 1 5 ! B. Prospective Offerings None * -- Included in table for first 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. i M-2 Part II: Date reported Private Placement--Reported July 1 through September 17 Amount (millions of dollars) Issuer and Description of Issue 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. j 8/30 250 Imperial Chemical Corporation Ltd.--6.82% notes, due 1971-85--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 1 takedown. I 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: II Queensland Aluminum 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. For retrospective data on aggregate foreign corporate and government security i 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 shown in this exhibit are included w h e n reported, frequently with little or no information concerning timing of takedowns. Full or partial takedowns may take place both prior and subsequent to the date a placement is reported.
@FedFRASER