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DECONTROLLED AFTER^fiHiOKEBS Not for Publication / H.14 September 27, 1965. / _CA£J±AL-MBKETS T 2 . A THE UNITED d e v e l o p m e n t s STATES Corporate and municipal bond markets. Public offerings of corporate securities this week will be down moderately from last week's substantial volume, with a $75 million offering cf Commercial Credit Corporation accounted for one-half of this week's total. The new supply of municipal bonds will experience a very sharp decline, with offerings scheduled to be less than half as large as last week's total. Also scheduled for offering, but not included in the table below, is a $150 million, 2-year issue of the Federal National Mortgage Association. Long-term Public Security Offerings 1/ (in millions of dollars) Corpora te New Capital ] Refunding State and local Government New Capital | Refunding Sold: 52 week avg. Sept. 17 Sept. 24 108 3 186 200 r/ 133 r/ 49 335 299 15 Scheduled: Oct. 1 150 131 _!/ Federal Reserve estimates based upon published reports of issues sold and scheduled f o r offering; corporate rights offerings are included as of the date subscription rights expire. Encouraged by the strong demand for new issues the previous week, ' underwriters were very aggressive in their bidding for last week's lone competitive corporate issue. However, investor reception for this issue was moderate with only an estimated 50% sold by the end of last week. On the other hand, a large finance company issue which reached the market in a negotiated transaction was quickly distributed. The new corporate bond yield series declined 3 basis points during the past week. However, a widening in the spreads between the various quality issue yields may have caused this decline to be overstated when adj '.st--d to an Aaa basis. In the municipal market, yields on Aaa-rated bonds rose 6 basis points to their highest level since late 1961. Demand for new issues was much stronger than in recent weeks, with about two-thirds of the weeks somewhat sizeable supply spoken for by the end of trading on Friday. 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 4.64 4.52 U.S. Govt. Long-term 3-5 year 4.25 4.24 State and local Govt. Moody's Aaa Standard and Poor's high grade 3.31 +6 3.40 +4 Money Market Federal funds Treasury Bills 3-month • 6-month Date Offered 9/21 Amount (millions of $) 60.0 -3 4.12 3.94 4.10 +6 +6 Corporate Bonds Still in Syndicate Reoffering Issue yield Rating Public Service Elec. & Gas Co. 4.70 4-3/4's - 1995 Aa Estimated Proportion sold 1/2 Blue List of Municipal Dealers' Advertised Inventories (Millions of dollars) Latest Date 776 (9/23) End of Previous Week 770 Recent High 901 (6/4) Private housing starts and permits. Seasonally adjusted housing starts declined ' per cent further in August from the advanced June rate. This brought the annual rate in August to 1,402 thousand (including farm)-below the reduced rate reached last January and the lowest since the winterinduced drop in early 1963. On a three-month moving average, however, starts in the most recent period were at a rate of 1,476 thousand and just above the recent low in the first quarter of the Government-underwritten starts accounted for 17 per cent of total starts in August. This was a slightly higher proportion than in August of last year and about the same as in August : " 1963. H. 14 Building permits were also down further in August and, like starts, were 7 per cent below a year earlier. Both single-and multi-family permits shared in the decline. Regionally, a feature of developments in recent months has been the relative stability of the seasonally adjusted rate of permits in the West. In August, these continued little changed from the earlier reduced rate for the third consecutive month. Stock prices. Common stock prices changed little on balance last week in very active trading. Standard and Poor's index of 500 stocks closed at 90.02 on September 24, still slightly below their all-time high reached in mid-May. Trading volume averaged 8.2 million shares a day--the most active week 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. 1 I x Hi. *11 A. Fen I L O N G - T E R M B O N D YIELDS, H I G H - G R A D E Exhibit A -- Part II Corporate Aaa y U. S. Govt, long-term 2/ State and local government Aaa 3/ Spread between U. 3. Govt, and State and Corporate Aaa local Aaa (per cent) 1959-60 1961-62 1962-63 1964 - High High Low High Low 1965 - High Aug. 27 Sept. 3 Sept.10 Sept.17 Sept.24 e / 3L31 (9/23) 2.94(2/11) .59 .57 .21 .33 .19 .34 .25 1.22 .94 3.17 3.18 3.21 3.25 3.31 JO .29 .29 .27 .27 1.04 1.04 1.02 1.00 .94 3:"(W«d 4.19 ( 3/29/63) 3.85 (12/28/62) 4.52(9/24) 4.41(3/12) tin (lO^) 4.25(9/24) 4.13(6/25) 4.51 4.51 4.52 4.52 4.52 4.21 4.22 4.23 4.25 4.25 , 2.88(11/8/62) .92 1.04 .80 1.14 1.01 Preliminary. Weekly average of daily figures. Average term of bonds included is 22-24 years. Weekly average of daily figures. The series includes bonds due or callable in 10 yeftrs or more. 3/ Thursday figures. Only general obligation bonds are includedi average tera is 20 years. 1 Note.—4IigSs and lows are for individual series and may be on different dates for different series. For spreads, high refers to widest, and lour to narrowest. FRASER Digitized for EXHIBIT m P - . t I LONC-TiRM BOND Y I I I D S , L O W I I GRADI L.I 1 1 L. 1 1 1 I 11 1 1 1 1 1 1 M 1**1 M 1 II 1 1 1 1 Corpora te Baa 1/ 1 1 1 1 1 1 1 1 1t*l If43 Exhibit B — Da te 1 1 1 1 1 1 1 i 1i 1i i 1i 1i i i i i i 1**2 Part II State and local govt. Baa 2 / Spread between Aaa and Baa State and Corpora te local govt. (per cent) 5.36 (2/22/60) 1959-60 - High Year end - 1961 1962 1963 1964 1965 - High Low Aug. Sept. Sept. Sept. v Sept. Notes 27 3 10 17 24 £/ 5.10 4.93 4.85 4.80 4.92(9/10) 4.78(3/19) 4.89 4.90 4.92 4.91 4.91 / For footnotes see e x h i b i t JU 4.46 (2/7/60) 4.04 3.57 3.60 3.51 3.65(9/23) 3.40(2/11) .84 .66 .70 .48 .37 .41 .35 1.08 .73 .63 .49 .52 .52 .34 3.56 3.56 3.58 3.63 3.65 .38 .39 .40 .39 .39 .39 .38 .37 .38 .34 1.0 7 EXHIBIT C. F e n I S H O R T . AND I N T K t M K D I A T K - T I R M I N T K t l S T RATKS GOVERNMENT \\ It A- 1 w 1 \j 1 V " $ 19*0 t . B. DISCOUNT BATI Nsw t . . k ^ 1 sJ 1 1 Aug. Sept. Sept. Sept. Sept. 27 3 10 17 24 2 / ,'T. / Z I 1-MONTH BIllS 1 1 1 1 1 1 1 lA^v I 1 t 1 1, U 1 1 ,1 11. 1 1 1 I I 1 I I 11 11 1 I I 1 I I 1 11 19*1 19*1 Discount 3-month rate bills 2/ 1959-60 - High Year end - 1961 1962 1963 1964 1965 - High Low ^ 0 Exhibit C — Da te .MONTH S l l l t 3-1 7I*» USUI* 1 \ | V™ - Art /m V / I I nA 19*3 19*4 19*1 Part II Yields 6-month bills 2/ (per ceht] 3-5 year issues 2/ Spread between yields on 3month bills and Yields on 6-ffio. bills!3-5 vr. issues 4.00 3.00 3.00 3.50 4.00 4.00 4.00 4.59 (1/9/60) 2.66 2.89 3.52 3.83 3.94(2/26) 3.78(6/25) 5.07 (1/8/60) 5.00(1^/24/59) 3.81 2.90 3.41 2.93 4.07 3.64 4.07 3.93 4.2^. (9/24) 40.0(9/24) 4.04(1/22) 3.82(6/25) 4.00 4.00 4.00 4.00 4.00 ' 3.86 3.87 3.89 3.88 3.94 ' 3.96 4.00 4.03 4.04 4.10 V 4.21 4.22 4.23 4.22 4.24 .79 .24 .04 .13 .10 .16 .03 1.81 1.15 .52 .55 .24 .38 .11 .10 .13 .14 .16 .16 .35 .35 .34 .36 .30 1J Weekly rate shown le that In effeot at end of period at the M e m l Reserve Bank of Mew Yozk# W Market yield* weekly averages computed from daily closing bid prices. Series of 3-5 year issues consists of selected notes and bonds. Note.—Highs and lows are for Individual series and w y be on different dates for different series. For spreads, high refers to widest, and low to narrowest. IXHISII D. Ferl I SHORT- AND INTERMEDIATE- TERM INTEREST RATES, BANKS AND OTHER PRIVATE BORROWERS Exhibit D -- Part II Date 1959-60 - High Year end - 1961 1962 1963 1964 1965 - High Low Prime rate 1/ Finance company Federal funds 1/ paper 2/ (per cent) 5.00 4.50 4.50 4.50 4.50 4.50 4.50 5.13 (1/23/60) 3.00 3.19 3.88 4.06 4.25(9/24) 4.00(2/12) 4.00 (3/13/60) 2.88 3.00 3.50 4.00 Aug. 27 Sept. 3 Sept. 10 Sept. 17 4.50 4.50 4.50 4.50 4.25 4.25 4.25 4.25 4.12 4.05 4.06 4.12 Sept. 24 y 4.50 . 4.25 4.12(9/24) 3.68(1/22) 4.12 Spread between 3-mo. bills and finance co. paper 1.02 .34 .30 .36 .23 .47 .10 .39 .38 .36 .37 .31 2/ Weekly rata shown ia that in effect at end of period. Prime rate is that charged by large banks on abort-terra loans to business borrowers of the higiest credit standing, y Average of daily rates published by finance companies for directly placed paper for varying maturities in the (XW.79 day range# 3/ Weekly average of daily effective rate, which is the rate for the heaviest volume of purchase and sale transactions as rsported to the Federal Reserve Bank of New York. Note1—High» 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. Exhibit E -- Part II Common Stock price index 1/ yields 2/ (per cent) Trading volume 3/ (millions of shares) Stock market customer credit Customers 1 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(13/8/61) 52.68(6/2^/62) 74.44 84.75 90.10 (5/14) 2.80 3.96 3.13 3.02 2.89 8 3 . 0 6 (6/25) 3.15 July Aug. Sept. 1 0 84.91 3.09 86.49 Sept. 1 7 90.05 3.06 2.97 2.94 89.12 10.1 2.4 5,60*13/61) 4,424(3/61) 4,259(13/61) 3,253(1/61) 4.7 4.7 7,242 7 JD53 5,515 5.099 8.2 3.8 7,085 6,872 5,129 4,863 4.1 5.0 6.5 7.0 6,833 4-863 3,886 6,874 n.a. n.a. 1,418(5/0/62) 1.161(3/8/61) 1,727 1.974 1,988 (8/25) 1 , 8 4 8 (3/3) 1,970 n.a. 1,988 1,982 n.a. 1,987 Sept. 24 1/90.02 n-A2.95 6.3 lie*#—Mot a v a i l a b l e ^ ^ Preliminary. 3/ Standard and Poor's composite index of 500 oomnon stocks, weekly closing prices, 194L-43»10. Monthly data are averages of daily figures rather than of Fiidsy*# only. Highs and lows are f< Friday's data only. 2J Standard and Poor's oomposite a took yield based on Wednesday data converted to weekly olosing prices by Federal Reserve, Yields shewn are for dates on which price index reached its high or low. 3/ Averages of daily trading volte i on the Mew Yeifc Stock txohange, Year^end figures are averages of daily figures for the year* y End of month figures for member firms of the New York Stock exchange which carry margin accounts; excludes balances secured by U, 3. Government obligations, 5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying U . S . Government securities. Weekly reporting banks account for about 70 per cent of leans to others. For further detail see Bulletin. PRIVATE H O U S I N G STARTS A N D PERMITS' I I I I I I I II II II I I I I I I I I. I SEASONALLY ADJUSTED DATA! HOUSING STARTS / V 7 Y A — V I — y V V V ' ^ BUILDING PERMITS PER CENT OF U N A D J U S T E D TOTAL STARTS „ / ( 3 of more ) J MULTI-FAMILY GOVERNMENT UNDERWRITTEN 19591 I960! 19611 19621 11963! 11964 11965 11966 Exhibit F - Part II Building Unadjusted permits Type of financing Type o E housing (seasonally Seasonally adjustadjusted 1-2 MultiUnadjusted ed annual rate annual FHA VA family family rate) 2/ Total Date 1964 -Aug. Sept. Oct. Nov. Dec. 1965- J a n . Feb. Mar. Apr. May June July Aug. r/ r/ 1,430 1,457 1,591 1,455 1,646 1,442 1,482 1,489 1,552 1,516 1,566 1,461 1,402 r/ (Thousands of unitta) 142 18 5 119 123 18 100 5 141 19 5 117 111 16 5 90 99 13 82 4 82 13 65 4 85 12 70 4 121 16 100 4 152 17 5 130 158 19 5 134 156 19 5 r / 131 r / 140 17 5 118 r / 132 18 5 110 94.3 47.3 39.5 83.1 45.9 95.2 37.8 73.6 35.5 62.9 26.9 54.5 31.1 54.4 4 0.2 80.5 47.5 104.7 49.9 107.6 105.2 r / 5 0 . 3 97.8 r/42.4 r/ 38.4 93.9 1,281 1,222 1,220 1,258 1,173 1,280 1,224 1,269 1,187 1,240 1,254 1,243 1,195 V Total starts are Ceneue estimates including farm for both permit-issuing and non-i|suing areas. A dwelling unit la started when excavation begins 1 all unite In an apartment structure are considered started at that tine• FHA and VI starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field of flee receive# the first oonqplianee inspection report, which is made before footings are poured in some eases but normally after the foundations have been completed. Capehart military housijg units are excluded. Other starts ars derived as a residual, although total and IHA and VA starts are not strictly comparable in concept or timing} other starts include both units financed by conventional mortgages and unite without mortgages. | / j h i i l d i n g p e r m i t s before January 1963 are Census estimates fer about 1 0 , 0 0 0 areas identified as d i f f e r e n c e s in t i m i n g and c e v e r a g e . IXHIBIt O, Pail I TIILOS O N NEW AND SEASONED C O t P O E A T I BONOS Exhibit 0 - Part II Yields on Hew Corporate Bond Issues Adjusted to en A a a basis I s o Number Average of Included (mil. yield of dollars) (»er cent) Number Am't of Issues Average of included (mil. yield (oer cent) issues of dollere) Weeklv averages: July 1965 - Jan Feb. Mar. Apr. May July Aug. Sept. 3 3 7 4 8 4 8 7 Weekly Average 1965 - High 94.0 111.0 157.8 115.0 315.0 100.0 278.0 166.5 4.42 4.41 4.45 4.46 4.51 4.58 4.61 4.63 2 9 16 23 30 Aug. 6 13 20 27 Sept. 3 10 17 24 3 3 2 3 1 1 2 2 2 2 I 121.0 102.0 55.0 80.0 17.0 19.5 50.0 .43,5 65.0 120.0 60.0 4.67* 4.56 4.58 4.58 4.64 4.67* 4.71 4.69 4.70 4.67 4.64 4.71 (8/27) 4.33 a / 2 9 ) - .JiQX Motel A t o m i c s of offering , an el* w A by MooSy 5 . Investors Sendee - rvloe*fexoept (except serial i u d ooavertible Issues, n t t n n g i a u v t n x ppvui int) weighted by * s e ef offering* sad foreign companies, and bonds guaranteed by the ~ Federal Goiei , Before averaging, new offerings are adjusted to a meposite Aaa basis by deducting from the actual reoffering yield the excess of the weekly average yield fer seasoned tends ef the appropriate industryquality group over the composite average for seasoned Aasmrated tends (Moody's), Averages considered unrepresentative boo*we of speoial oharaeteristies ef * e offerings included are denoted by an asterisk^ H. 14 Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) New Can ital 1965 January February March April May June July August September quarter quarter quarter quarter 1st half Three quarters Year 1963 1965 State and Local 2/ 1963 1964 795 746 1,197 938 700 778 613 594 1,144 2/803 2/872 2/946 947 776 810 732 746 976 1,946 2,237 1,P95 1,405 930 904 1,013 E/824 2/921 E/943 1,242 667 903 869 866 930 812 680 1,130 676 637 795 5/650 e/950 906 ,780 892 680 708 449 953 669 1,642 1,013 819 1,415 801 529 9^8 1,051 729 416 2,416 4,738 2,621 3,264 2,361 2,847 2,109 3,246 2,533 2,8(L1 2,578 2,278 2,454 2,665 1,837 2,197 7,153 9,775 13,038 5,198 7,307 10,553 5,345 7,923 10,201 5,118 6,955 9,151 iMto a/1,250 October ^ November December 1st 2nd 3rd 4th Corporate 1964 .- 2,738 4,789 2/3,328 7,527 e/10,855 e/850 p / 2,621 E/ 2,688 fi/ 2,450 B/ 5,310 Excluding finance companies 3/ 1st 2nd 3rd 4th quarter quarter quarter quarter 2,547 e/4,389 e/2,978 Yet. e/ j>/ 1/ 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) Quarter or Month : t Gross proceeds for new capital and refunding$ 1/ B<j>nds Common Total Publicly Privately and Offered Offered Pfd. stock Net proceeds for new capital 1/ 2/ Memo; Foreign issues included Mfg. Public Communi- Other Utility cations issuers 1963 - I II ' m IV 2,700 3,634 2,436 3,466 1,108 1,389 898 1,319 1,306 1,820 1,251 1,780 287 424 287 367 128 434 109 47 947 591 806 968 326 794 285 530 236 221 150 118 842 1,241 868 1,629 1964 - I 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 a 5 L tt «IVn 2,548 4,965 2,876 3,568 1965 - I II 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 1964BS/Apr. Hay June July Aug. Sept. Oct. Nov. Dec. 2,295 1,181 1,489 902 748 1,226 1,036 727 1,805 383 470 468 234 183 376 181 30 320 541 563 651 443 453 693 642 645 1,342 1,372 148 370 225 112 156 213 52 143 34 36 35 24 27 44 82 29 116 186 206 332 150 176 234 250 203 607 151 441 264 207 138 296 297 40 172 1,379 27 260 23 16 19 82 21 32 521 421 550 432 349 580 323 405 831 1965 - Jan. Feb. Mar. Apr. May June July e./ Aug. e/ Sept. Oct. Nov. D*c. 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. 385 192 494 540 698 441 417 300 97 215 229 176 248 184 204 200 21 44 26 13 143 98 102 20 292 295 448 422 602 1,223 503 330 IV t $ ? !' £/ Preliminary, e/ Estimated by Federal Reserve \J 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) IME January February March April May' June July August September October November December Jan. - Aug. Gross Long-term l/~ Foreign Government W/ 1965 1964 195T 218 38 73 vJ e/ 91 15 50 4 82 69 30 75 26 20 13 7 232 133 76 57 114 11 63 63 Federal Agency 3/ w 148 129 185 325 775 — e/ 239 jbZ 180 186 275 459 510 174 695 793 1,205 1,167 260 160 200 72 58 e/493 Year 319 769 636 771 e/1,653 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 -82 119 £/ 409 £/ 1,168 Tear 103 236 -407 442 81 -80 -9 127 176 7 -15 -208 75 272 -367 599 -30 -10 62 208 -173 259 146 -339 -137 -174 117 -11 509 237 132 S/ 427 -308 -336 23 97 183 239 -333 167 1 325 113 -3 -332 -255 -161 202 195 319 415 326 258 123 -102 551 593 799 e/1,100 -266 709 453 692 368 1,539 2/ Preliminary. ^/Estimated by Federal Reserve. n.a.-Not Available. 1/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. 2/ Includes securities offered in the U.S. by foreign governments and their political subdivisions and international organizations. Source 1 Securities and Exchange Commission. 3/ Issues not guaranteed by the U.S. Government. Source: Long-term, Securities & Exchange Commission; short-term, Treasury Dept. & Fed. Reserve. £/These data differ from those in Exhibit H and above in that they represent new offerings less retirements, whether from the proceeds or refunding issues or from other funds. Data include only issues with original maturity of one year or less. J>/fcrincipally 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.Res* H. 14 Exhibit K Large Long-term Public Security Issues for New Capital (Other than U. 8. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) Total 1964 - Aug. Sept. Oct. Nov. Dec. 1965 - Jan. Feb. Mar. Apr. May June July Aug. Corooriite Bonda Convertible (other than convertibles) bonds State and local governments Stocks 142 376 187 215 269 lr'3 17 25 230 139 217 513 307 928 801 477 299 200 115 131 233 210 560 343 455 211 30 -- -- 15 86 459 558 419 226 541 419 446 395 411 492 377 655 312 81 79 -- 280 97 53 320 22 62 315 138 -- • 26 Large Individual Issues Offered Sept. Issuer Type 2/ C m m w 1st mtg. bds. Georgia Pwr. Co. Deb. Consol. Nat. Gas Co. 1st mtg. bds. Ala. Pwr. Co. Tennessee Gas Trans. Co Deb. Deb. Penna. Elec. Co. Southern Bell Tel & Tel. Co. Deb. Deb. Household Finance' Corp. State apd Local Government State of North Carolina State of New York Cuyahoga Co., Ohio State of California Penna. Gen. State Auth. State of New Hampshire Florida Dev. Comm. 3.0. 3.0. j•0• ;.o. 3.0. lev. -Rent 3.0. lev. -S.T. Amount (millions of dollsrs) 36.5 25.0 40.0 60.0 20.0 100.0 125.0 25.0 72.0 12.5 80.0 25.0 50.0 26.1 19.5 Maturity Other 1/ 104 15 502 15 -- 235 130 19 260 .40 340 20 50 1 through; 24. Coupon rate or net intermit Offering yt«u Beting 1995 1990 1995 1985 1990 2000 1993 4-7/8 4-3/4 4-7/8 5-1/4 5 4-3/4 4-7/8 4.78 4.72 4.83 5.25 4.85 4.68 4.91 A Aa A Ba A Aaa 1966-82 1966-85 1966 85 1967-91 MA7-86 1966-92 1966-95 1968-92 3.00 3.05 3.14 3.42 3. 36 3.51 3.13 3.74 2.35-2. 97 2.40-3. 10 2.50-3. 20 2.70-3. 48 2.70-3. 40 2.80-3. 60 2.40-3. 30 3.00-3. 75 Aaa Aa Aa Aa Aa Aaa Baa K-2 Large Individual Issues Offered Sept. 1 through 2 4 (Cont'd) Issuer Type 3/ Amount (millions of dollars) Maturity Coupon rate or Offernet intering est cost 1 Yield Rating State and Local Government (Cont'd) Los Angeles Co. Flood Control Rev. -Q. -Ut. Dist. , Cal. Commonwealth of Massachusetts >G • 0. Saginaw-Midland Mun. Wtr. ' Rev.-Ut. Supply Corp. New Haven, Conn. G.O. State of Ohio G.O. La. Capital Construction & Rev.-S.T. Imp. Comm. Honolulu, Hawaii G.O. Detroit, Michigan G.O. 40.0 34.7 1966-95 1966-2014 3.44 3.31 2.75-3. 50 4/ 2.50-3. 50 Aa Aa 13. 7 10.0 50.0 1968-97 1967-85 1966-75 3.55 3.21 3.21 2.80-3. 60 2.65-3. 25 2.45-3. 15 Aa Aa Aa 25.0 10.0 10.4 1966-90 1968-85 1966-90 3.64 3.44 3.53 2.60-3. 70 5/ 2.95-3. 50 2.65-3. 60 6/ A Aa Baa 20.0 1985 6 6.04 • Other European Investment Bank Bonds ^--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 bv Federal Agencies. 3/ In the case of State and local government securities, G.O. denotes general obligations; Rev.-Ut. revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by revenue from quasi-utilities; Rev.S•T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. 4/ Bonds maturing 1966 not publicly reoffered, 5/ 1-3/8% bonds maturing 1990 not publicly reoffered. 6/ 0.17c bonds maturing 1988-90 reoffered to yield 4.35 per cent. 1 '7 H. 14 Exhibit L Forthcoming Large Long-term Public Security Offering for New Capital (Other than U.S. Treasury) 1./ Expected Proceeds from Forthcoming Large Issues (In millions of dollars) During month following date shown State and Corporate Other U local govt. A $ 1 9 6 4 - Aug. 31 Sept .30 Oct. 30 Nov. 30 Dec. 31 I * 1 9 6 5 - Jan. 29 Feb. 26 Mar. 31 g Apr. 30 May 28 June 30 July 30 Aug. 31 $ 402 186 -- 90 105 169 407 267 852 765 • 363 193 312 511 500 254 360 306 242 316 212 411 328 397 248 404 Corporate 15 442 186 - - 130 105 253 504 792 852 923 410 240 636 25 215 - - 60 25 70 20 Subsequent to date shown State and local govt. Other U 15 680 626 549 563 435 382 599 373 635 474 524 352 450 - - - 25 215 - - - 60 25 70 20 - - Forthcoming Large Offerings as of Sept. 24 Iaauer Type Amount (millions of dollars) Approximate date of offering tossartte Commercial Credit Co. ArVin Indus. Inc. Pacific Power & Light Co. Indiana Bell Tel. Co. Kansas City Power & Lt. Co. Columbia Gas System Panhandle Eastern P. L. Cc. Jersey Central Pwr. & Lt. Co. Canada Dry Corp. West Penn. Power Co. Macy Credit Corp. Great Western Financial Corp. General Tel. Co. of Calif. Notes S.F. deb. 1st mtg. bds . Deb. 1st mtg. bds. Deb. Deb. 1st mtg. bds . Deb. 1st mtg. bds. Deb. Deb, S.F. deb. 75.0 18.0 30.0 25.0 15.0 40.0 40.0 20.0 20.0 20.0 25.0 22.0 30.0 Sept. Sept. Sept. Oct. Oct. Oct. Oct. Oct. Oct. 28 29 29 6 6 7 17 26 23 Indefinite Indefinite Indefinite . L-2 Forthcoming Large Offerings as of Sept. 2 4 (Cont'd) Issuer Amount (millions of dollars) Type Approximate date of Offering State and local Government G.O. St. Louis Co., Mo. Salt River Proj. Agr. & Imp. Pwr. Dist., Ariz. Rev. -Ut. G.O. Nassau Co., N.Y. Rev. -ut. El Paso, Texas Rev. -Ut. Met. Seattle^Wash. Rev. -Ut. Austin, Texas G.O. State of Maryland Rev. -Rent. *Nev> York State Housing Fin. Agency Rev. -Q.-Ut.. Los Angeles, Calif. G.O. Dade County, Fla. 15,.0 27,.5 30,.0 10..5 10.,0 14. 0 43. 6 84. 7 16.5 46. 0 29 Sept. 29 Sept. 30 Sept. Sept. 7 Oct. Oct. 7 19 Oct. 20 Oct. 16 Nov. Indefinite Other Federal Nat'l. Mortgage Ass'n. Bonds 150. 0 Sept. 29 *--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. ' i % f f | H. 14 Exhibit M Foreign Government and Corporate Security Offerings and Placements in the United States Part I: i Sale Date Public Offerings Amount (millions of dollars) Issuer and Description of Issue A. Sold July 1 through September 2 4 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%. 1 9/16 20.0 European Investment Bank--6% bonds, maturing 1985, reoffered to yield 6.04%.*** I 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. V? M-2 Part II: Date reported 7/21 Private Placement--Reported July 1 through September Amount (millions of dollars) 40.0 8/11 Trans-Canada Pipe Lines Ltd.--5-1/8% first mortgage bonds, maturing 1985--no information available on takedown. Cblanese Mexicana S. F.--7-1/4% sinking fund bonds, djue 1977--no information available on takedown. 8/30 25,0 8/30 10.0 9/9 40.0 Skeena Kraft, Ltd.--5-3/8% first mortgage and collateral trust bonds, maturing 1985--no information available on i takedown. ••• 9/8 50.0 Bpll Telephone Co. of Canada--4.85% first mortgage bonds ^ djue 1995--no information available on takedown. 9/16 135.0 9/16 Note: Issuer and Description of Issue Imperial Chemical Corporation Ltd.--6.82% notes, due l|971-85--no information available on takedown. aminion Rubber Company Ltd.--5-7/8% notes, due 1985information available on takedown. Queensland Aluminum Securities Company--notes maturing lb68-82--no information available on takedown. The Alberta Government Telephone Commission--4-3/4% slinking fund debenture, maturing 1990--no information ah/a ilable on takedown. For retrospective data on aggregate foreign corporate and government security offerings in the United States see Exhibits I and J. There is no simple relationship between the data shown in the Exhibit and that shown in Exhibits I and J because the latter includes privately placed securities in the period in which funds are actually takendown but only in the amount of takedown while the placements 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. .• 7! Exhibit N Sources and Uses of Funds by Life Insurance Companies Quarter or Month End of period: 1963 - Dec. 1964. - Dec. 1965 - July Cash U.S. Govt. Securities Business Securitie 3 2/ Bonds & Shortterm Stocks paper (In millions of dollars) 1,465 1,443 1,279 5,813 5,511 5,311 56,050 58,621 60,034 103 116 95 -28 501 920 1964 - I II r/ III IV -171 -15 24 161 -25 -73 154 -276 1965 - I -206 -11 Changes: 1963 - III IV III 1964 - July r/ Aug. Sept. Oct. Nov. De«. 1965 b/- Jan. Feb. Mar. Apr. May June July Aug. Sept. Govt. Secur. Memo: Total Total sources Excl. ValMortuation gages Other or uses changes 2/ 387 241 870 3,686 3,808 3,652 134 -238 -62 -22 893 1,336 350 159 2,014 2,243 1,960 2,045 634 783 479 805 127 -206 81 -175 -10 -42 24 -38 910 1,032 1,094 1,619 480 433 352 50 1,945 1,912 2,208 2,146 1,751 1,762 2,113 2,269 46 -284 502 663 294 116 -21 -63 1,164 1,041 566> 372 2,345 1,834 2,114 1,779 -14 105 -72 -4 112 53 73 5 24 -18 -70 -188 97 122 158 45 210 550 163 -39 -65 194 3 -372 -15 13 24 20 -25 -33 295 341 387 424 420 775 209 106 241 144 119 -213 808 652 697 805 769 572 806 612 531 730 781 758 -128 -67 -11 -35 -12 36 53 213 37 -204 -36 -31 -217 38 111 151 240 . 103 223 337 248 250 59 -15 16 127 -27 219 13 -24 -10 -20 -13 -30 -72 447 315 402 344 310 387 279 166 165 233 231 48 93 156 1,074 636 635 603 652 579 921 1,002 547 565 490 678 611 890 . 50,596 22,942 141,121 55,179 24,942 149,318 57,663 25,609 154,418 134,940 142,637 147,420 Revised. g/ Preliminary. Uses of funds represent net changes in assets and therefore reflect net, rather than gross uses. 2/ Includes securities of domestic corporations only. 2/ Excludes changes in miscellaneous assets (one portion of the "other" la this table) which includes most, but not all, valuation changes, as well as changes in a few other items. Source1—Institute of Life Insurance. 1/ Exhibit 0 Sources and Uses of Funds by Savings and Loan Associations Quarter Month End of 1963 1964 1965 period: Dec. Dec. July V£ses of zunds 1/ U. S. Cash Govt, Mort- Other secur- gages assets ities Total sources Source of Net change Borrowing 2/ or savings uses canital (In millions of dollars) 5,015 91,308 6,191 107,559 5,596 6,983 119,295 101,847 7,499 124,616 105,598 6,083 "unds Other 11,236 11,852 3,979 4,025 3,271 6,445 6,973 7,169 90,944 101,314 106,677 Changes: 1963 - III IV -461 582 146 96 3,466 2,924 49 287 3,200 3,889 1,584 3,345 776 803 840 -259 1964 - I II III IV -351 185 -402 614 291 -48 93 192 2,223 3,001 2,827 2,319 56 489 21 226 2,219 3,627 2,539 3,351 2,320 3,068 1,862 3,289 -688 657 85 527 587 -98 592 -465 1965 - I r/ II III -467 152 • 413 -151 1,837 2,676 156 555 1,939 3,232 1,888 2,302 -658 949 709 -19 1964 - July Aug. Sept. Oct. Nov. Dec. -449 14 33 23 86 505 2 49 42 42 142 8 1,043 948 836 837 687 795 -199 114 106 71 226 -71 397 1,125 1,017 973 1,141 1,237 16 773 1,073 751 859 1,679 11 1 73 -36 -30 593 370 351 -129 258 312 -1,035 -432 16 -51 -160 35 277 -439 125 207 81 -30 50 -171 -66 530 507 800 824 841 1,011 850 -156 137 175 154 387 14 -195 67 867 1,005 788 1,313 1,131 150 254 579 1,055 -93 792 1,603 -439 -450 -106 -102 518 9 422 196 263 394 52 363 512 -894 1965 - Jan. Feb. Mar. r/ Apr. May June July Aug. Sept. 12,935 393 r/ Revised. 1_/ Uses of funds represent net changes in assets and therefore reflect net, rather than gross uses. Savings and loan associations do not hold business securities and data on holdings of State and local government bonds, presumed to be small, are not available. 2/ Advances from Home Loan Banks and other borrowing. Source: -- FSLIC Exhibit P Sources and Uses of Funds by Mutual Savings Banks Quarter or Month End of period: 1963 - Dec. 1964 - Dec. 1965 - July U.S. Govt. Cash ities Uses of funds 1/ BusiState and ness local govt, secursecuri Hem I H e s 21 (In millions 440 5,074 391 5,099 5,284 356 Sources of funds Total Net sources change Other Mort- Other or in gages uses deposits of dollars) 5,096 36,007 1,406 49,702 44,606 5,389 40,328 1,625 54.238 48,849 42,600 1,762 56,739 50,844 5,895 912 1,004 946 5,863 5,791 5,791 Changes: 1963 - III IV -42 64 -114 -213 81 -97 -5 -13 888 1,043 117 -36 927 747 740 894 186 -146 1964 - I II III IV -25 19 -23 121 254 -93 58 -292 77 -6 47 -94 -16 -15 -18 927 1,037 1,173 1,182 123 17 80 -1 1,340 959 1,338 899 1,155 862 1,133 1,092 185 99 207 -194 1965 - I II III 3 12 262 -233 46 54 -10 -21 937 922 125 45 1,364 780 1,140 634 146 —- ' 1964 - July Aug. Sept. Oct. Nov. Dec. -43 32 -12 15 7 99 1 70 -13 -233 -65 6 -3 37 13 -15 2 -81 -2 2 -6 -4 -8 436 355 382 392 360 430 26 71 -17 -10 42 -33 416 565 357 143 343 413 294 356 483 226 205 661 122 210 -125 -83 138 -249 1965 - Jan. Feb. Mar. Apr. May June July Aug. Sept. -27 15 15 -63 24 51 -73 116 109 37 -197 -16 -20 -31 6 18 22 39 4 11 85 -3 -5 -2 -2 -12 -7 -4 312 284 341 298 290 334 413 70 -2 57 -25 70 475 419 470 50 361 369 357 373 221 546 -12 189 457 221 101 198 -76 61 172 -87 136 -33 1/ Uses of funds represent net changes in assets and therefore reflect net, rather than gross uses. 2/ Includes Canadian government and political subdivision, International Bank for Reconstruction and Development, nonguaranteed Federal agency and other bonds as well as corporate bonds and stock. Source; -- NAMSB