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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Not for Publication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
@FedFRASER