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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. 1 coll. balances
firms
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
:
U 10 3

-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. 1
Numbers in parenthesis
denote month of year. All figures exclude credits on, or to carry,, U.S. Govt. securities.
i
\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 J *
L




.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 1 o r i
1

.

-

, 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
FRASERfor Exhibit G. Monthly averages of daily data* See exhibit X»
' Moody's Investor Service.

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 I O, Port \
T
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

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

State and Local 2/
1964
1963

1,946

e/1,250

2,738
4,789
«/3,327

e/lI'Ml

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

795
746
1,197

October
November
December
1st
2nd
3rd
4th

Corpora te
1964 r /

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
,233
1.
1,
,773
2,
,038
,379
1,
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

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

232
133
76
57
114
11
63
83

Year

148

—
—

186

—
—

775
2/
—
e/ 239

459

275
260
160

—
• —

——

—

—

——

510

174
200

—

— •

2

319

769

636

e/ 493

129
185
325

Federal Agency 3/
1963
1964

—

771

695

793

1,205

e/1,653

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
--

200
11*
131
233
210
560
343
455
211

17
2C

--

30
--

15
86

280
97

--

--

LargK Inaivicujl

Issuer

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

--

230
139
217
513
307
928
801
477
299

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:

I
I

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.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102