Full text of H.16 Capital Market Developments : September 3, 1963
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. LIBRARY
SEP
Not f o r P u b l i c at ion
H. 14
5 1963
IDECONTROLLED AFTER SIX MOtfTffS
/
3E -RVH BAixr'C 1
OF R I C K M I
September 3 , 1963.
rAPTTAT, MAOTBT DEVELOPMENTS
IN THE UNITED STATES
( I n c l u d i n g Review of C a p i t a l Markets i n August)
P u b l i c s e c u r i t y f i n a n c i n g t o o b t a i n new c a p i t a l was l i g h t
l a s t week and i s e x p e c t e d t o remain l i g h t t h i s h o l i d a y - s h o r t e n e d week.
L a s t week, ended August £ 0 ^ f w o l a r g e c o r p o r a t e i s s u e s w i t h combined
g r o s s p r o c e e d s of $50 m i l l i o n were o f f e r e d w h i l e no l a r g e S t a t e and l o c a l
government bond i s s u e s were s o l d . This week, ending September 6, nol a r g e c o r p o r a t e i s s u e s a r e s c h e d u l e d f o r o f f e r i n g and only one S t a t e
and l o c a l i s s u e w i t h p a r v a l u e of $36 m i l l i o n i s on t h e c a l e n d a r .
Bond y i e l d s . Y i e l d s on seasoned l o n g - t e r m c o r p o r a t e and U. S.
Government bonds were s t a b l e a g a i n l a s t week. Aaa- and B a a - r a t e d S t a t e
and l o c a l government bond y i e l d s , however, f e l l two and one b a s i s p o i n t s ,
r e s p e c t i v e l y , t o 3 . 0 9 and 3 . 5 8 p e r c e n t .
Y i e l d s on new c o r p o r a t e b o n d s , a d j u s t e d t o an Aaa b a s i s , averaged
4 . 3 3 p e r c e n t l a s t week, s i x b a s i s p o i n t s above t h e a v e r a g e f o r t h e week
ended August 9 , t h e l a s t i n which any such bonds were o f f e r e d . This
i n c r e a s e , however, was p r o b a b l y due t o t h e s p e c i a l c h a r a c t e r i s t i c s of
t h e i s s u e s o f f e r e d r a t h e r t h a n a change i n i n t e r e s t r a t e s .
/
S h o r t - and i n t e r m e d i a t e - t e r m i n t e r e s t r a t e s . R a t e s on 3-month
and 6-month T r e a s u r y b i l l s i n c r e a s e d t h r e e and two b a s i s p o i n t s f u r t h e r
l a s t week t o 3 . 3 9 and 3 . 4 9 p e r c e n t , t h e i r h i g h e s t l e v e l s s i n c e t h e s p r i n g
of 1960. Y i e l d s on 3 - 5 y e a r U . S . Government o b l i g a t i o n s advanced two
b a s i s p o i n t s f u r t h e r to 3 . 8 5 p e r c e n t , the h i g h e s t l e v e l s i n c e e a r l y
F e b r u a r y 1962. The a v e r a g e e f f e c t i v e F e d e r a l f u n d s r a t e edged o f f s l i g h t l y
to 3 . 4 8 p e r c e n t . Other r a t e s were unchanged.
Stock p r i c e s . Common s t o c k p r i c e s r o s e f u r t h e r l a s t week i n
r a t h e r a c t i v e t r a d i n g . P r i c e s , as measured by S t a n d a r d and P o o r ' s
composite index of 500 common s t o c k s , i n c r e a s e d one p e r c e n t t o c l o s e
a t 72.50 on August 30. T r a d i n g volume averaged 4 . 7 m i l l i o n s h a r e s a
day, up 0 . 6 m i l l i o n s h a r e s from t h e p r e v i o u s week a n d ' t h e h i g h e s t weekly
average s i n c e e a r l y June.
E s t i m a t e d September s e c u r i t y volume. R e f l e c t i n g u s u a l s e a s o n a l
i n f l u e n c e s , s e c u r i t y f l o t a t i o n s f o r new c a p i t a l by b o t h c o r p o r a t i o n s and
S t a t e and l o c a l governments a r e e x p e c t e d to be i n r e l a t i v e l y l i g h t volume
i n September.
C o r p o r a t e s e c u r i t y f i n a n c i n g t o o b t a i n new c a p i t a l i s e s t i m a t e d
a t $650 m i l l i o n f o r t h i s month, s l i g h t l y l e s s t h a n t h e r e v i s e d August
t o t a l b u t somewhat l a r g e r t h a n t h e a v e r a g e f o r September of t h e p a s t two y e a r s
-2-
H. 14
F i n a n c i n g i n t h i s volume f o r t h e month would b r i n g t h e t h i r d q u a r t e r
t o t a l t o $ 2 . 0 b i l l i o n , s l i g h t l y above l a s t y e a r ' s low t h i r d q u a r t e r
t o t a l , b u t o n e - s i x t h l e s s t h a n d u r i n g t h e comparable p e r i o d i n 1961.
Bond o f f e r i n g s by S t a t e and l o c a l governments a r e e x p e c t e d t o
amount to $550 m i l l i o n i n September, about o n e - f i f t h below t h e r e v i s e d
August t o t a l , b u t t h r e e - t e n t h s g r e a t e r than September f l o t a t i o n s i n t h e
p r e v i o u s y e a r . T h i s would b r i n g t o t a l o f f e r i n g s t o $1,775 m i l l i o n f o r
t h e q u a r t e r , o n e - e i g h t h more than t h e r a t h e r l i g h t volume d u r i n g t h e
c o r r e s p o n d i n g p e r i o d l a s t y e a r b u t somewhat l e s s than i n 1961.
C a p i t a l m a r k e t s i n August. New c o r p o r a t e s e c u r i t y f i n a n c i n g
i n August was r e l a t i v e l y l i g h t , as i s u s u a l i n summer, w h i l e m u n i c i p a l
bond o f f e r i n g s were i n moderate volume. D e a l e r s ' i n v e n t o r i e s of u n s o l d
s e c u r i t i e s r o s e as r e t a i l d i s t r i b u t i o n Of most new o f f e r i n g s l a g g e d .
Y i e l d s on s e a s o n e d , h i g h - g r a d e b o n d s , however, changed l i t t l e .
C o r p o r a t e s e c u r i t y f i n a n c i n g t a o b t a i n new c a p i t a l amounted
t o $675 m i l l i o n i n August, n o m i n a l l y l e s s t h a n i n J u l y and about o n e - t e n t h
below t h e August t o t a l f o r each of t h e p a s t two y e a r s . Large i s s u e s
s o l d p u b l i c l y l a s t month ( i n c l u d i n g $61 m i l l i o n through e x p i r i n g subs c r i p t i o n r i g h t s ) t o t a l e d $236 m i l l i o n , i n c l u d i n g $218 m i l l i o n i n nonc o n v e r t i b l e bonds and an $18 m i l l i o n s t o c k i s s u e . In a d d i t i o n , one $70
m i l l i o n bond i s s u e was s o l d t o r e f u n d o u t s t a n d i n g s e c u r i t i e s .
New i s s u e s a c q u i r e d by u n d e r w r i t e r s through c o m p e t i t i v e b i d d i n g
met poor i n i t i a l r e t a i l r e c e p t i o n and were l a r g e l y u n s o l d a t t h e monthend. Thus, a l t h o u g h p r i c e r e s t r i c t i o n s on one i s s u e c a r r i e d over from
J u n e were t e r m i n a t e d , u n s o l d s y n d i c a t e b a l a n c e s a t t h e end of August had
r i s e n to a f a i r l y s u b s t a n t i a l l e v e l . Despite t h i s congestion in the
bond m a r k e t , c o r p o r a t e bond y i e l d s e i t h e r remained s t a b l e or d e c l i n e d
s l i g h t l y , r e f l e c t i n g c o n f l i c t i n g o p i n i o n s as to t h e f u t u r e c o u r s e of
i n t e r e s t r a t e s . Y i e l d s on seasoned A a a - r a t e d c o r p o r a t e bonds remained
a t 4 . 2 9 p e r c e n t t h r o u g h o u t t h e month, t h e same as a t t h e end of J u l y
and t h e i r h i g h e s t l e v e l s i n c e l a s t f a l l . Y i e l d s on new c o r p o r a t e b o n d s ,
a d j u s t e d t o an Aaa b a s i s a l s o averaged 4.29 p e r c e n t i n August, two b a s i s
p o i n t s below t h e a v e r a g e f o r J u l y , which was t h e top of t h e r a n g e p r e v a i l i n g
s i n c e t h e f i r s t of t h e y e a r .
Bond s a l e s by S t a t e and l o c a l governments a l s o amounted t o
$675 m i l l i o n i n August, about o n e - f o u r t h more t h a n i n e i t h e r t h e p r e v i o u s
month or August 1962. L a r g e l y b e c a u s e of poor i n v e s t o r r e c e p t i o n of t h e
two l a r g e s t o f f e r i n g s of t h e m o n t h - - t h e $100 m i l l i o n S t a t e of C a l i f o r n i a
and $116 m i l l i o n P u b l i c Housing A u t h o r i t y i s s u e s — d e a l e r s 1 a d v e r t i s e d
i n v e n t o r i e s of u n s o l d s e c u r i t i e s r o s e s h a r p l y . These r e a c h e d $680 m i l l i o n
a t mid-month, $165 m i l l i o n above t h e end of J u l y l e v e l and w i t h i n $90
m i l l i o n of t h e i r mid-May p e a k . D e s p i t e t h e s e a s o n a l l y l i g h t volume of
new i s s u e s d u r i n g t h e l a s t " h a l f of t h e month, by month-end i n v e n t o r i e s
had dropped o n l y to around $630 m i l l i o n . Y i e l d s on A a a - r a t e d S t a t e and
l o c a l government bonds changed l i t t l e on b a l a n c e d u r i n g t h e month; a t 3 . 0 9
H. 14
p e r c e n t a t month-end, were one b a s i s p o i n t above t h e i r end of J u l y l e v e l .
Common s t o c k p r i c e s advanced s h a r p l y i n a c t i v e t r a d i n g d u r i n g
August. P r i c e s , as measured by S t a n d a r d and P o o r ' s composite i n d e x of
500 common s t o c k s , r o s e f i v e p e r c e n t d u r i n g t h e month; a t 72.50 on
August 31, a v e r a g e p r i c e s approximated t h e i r r e c o r d peak of 7 2 . 6 4 r e a c h e d
i n December 1961 and had advanced 23 p e r c e n t d u r i n g t h e p a s t y e a r . T r a d ing volume averaged 4 . 2 m i l l i o n s h a r e s a day d u r i n g t h e month, 0 . 7 m i l l i o n
s h a r e s more t h a n i n J u l y and 0 . 8 m i l l i o n s h a r e s above t h e comparable 1962
period.
More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g r e c e n t c a p i t a l market
developments i s p r e s e n t e d i n t h e a t t a c h e d e x h i b i t s .
C a p i t a l Markets S e c t i o n ,
D i v i s i o n of R e s e a r c h and S t a t i s t i c s ,
Board of Governors of t h e F e d e r a l Reserve System.
LONG-TERM
Ms:
BOND
YIELDS,
, 1,59
HIGH-GRADE
I9 60
I I I I I J I I I I I I I I I .LI I I I I I I I II I I I 11 U-U 2.5
.1961'
mY
1963
Exhibit A - Part I I
Date
Corporate
Aaa 1 /
U. S. Govt.
l o n g - t e r m 2/
S t a t e and
local
government
Aaa 3 /
Spread between
U. S . Govt, and
Corporate
S t a t e and
l o c a l Aaa
Aaa
(per cent)
1958 - Low
1 9 5 9 - 6 0 - High
1960-61 Low
1961 - High
1962 - Loy
1963 - High
Low
Aug.
Aug.
Aug.
Aug.
/Aug.
I
2
9
16
23
30 £>/
3.55
4.61
4.21
4.46
4.23
4.29
4.19
(5/2)
(1/29/60)
(3/17/61)
(9/15)
(12/28)
(8/30)
(3/29)
4.29
4.29
4.29
4.29
4.29/
3.07
4.42
3.70
4.07
3.85
4.03
3.87
3.99
3.99
3.99
3.99
3.99
(4/25)
(3/8/60)
(S/1%/61)
(12/29)
(12/28)
(7/12)
(1/18)
2.64
3.65
2.99
3.37
2.88
3.11
2.93
3.08
3.08
3.08
3.11
3.09
(5/1)
(9/24/59)
(9/3/60)
(7/6)
(13/8)
(8/22)
(3/28)
.22
.59
.19
.57
.30
.35
.21
.34
- .92
.46
.76
.80
1.02
.90
.30
.30
.30
.30
.30
.91
.91
.91
.88
.90
Preliminary.
Weekly average of daily figures. Average term of tends included i s 22-24 years*
Weekly average of daily figures. The series includee bonds due or callable in 10 years or more*
Thursday figures. Only general obligation bonds are inoludedj average teztn i s 20 years,
lot e«--Highs and lows are f o r individual series and may be on different dates for different
s e r i e s . For spreads, high refers to widest, and low to narrowest.
LONG-TERM
BOND
1 iCLDS.
LOWER-GRADE
-I
/
1958
r
v
V \ , .
195 9
1960
1961
E x h i b i t B - Part I I
Date
Corporate
Baa 1 /
S t a t e and
local govt.
Baa 3 /
Spread beti »een
Aaa and ]Jaa
S t a t e and
Corporate
local govt.
(per cent)
1958 - Low
1959--60 - High
I960-•61 Low
1961 - High
1962 - Low
1963 - High
Low
4.51
5.36
4.98
5.13
4.92
4.93
4.83
Aug.
Aug.
Aug.
Aug.
Aug.
4.84
4.83
4.83
4.83
4.83 ,
Note*
2
9
16
23
30
E
/
(7/11)
(2/12/60)
(9/9/60)
(10/27)
(ig/21)
(1/4)
(8/30)
For footnotes see Exhibit A.
3.64
4.46
3-93
4.16
3.52
3.63
3.52
3.57
3.57
3.59
3.59
3.58
(5/1)
(3/7/60)
(11/9/61)
(3/23)
(5/17)
(6/27)
(5/23)
.93
1.08
.57
.93
.56
.63
.47
.77
.84
.66
.81
.63
.71
.54
.55
.54
.54
.54
.54
#
.49
.49
.51
.48
.49
SHORT-
AND
INTERMEDIATE- TERM
INTEREST
RATES,
GOVERNMENT
Exhibit C t Part I I
Date
1958 - Low
1959-60 High
1960-61 Low
1961-62 High
1962 - Low
1963 - High
Low
Aug.
Aug.
Aug.
Aug.
>ug.
2
9
16
23
30 £ /
Discount
rate
V
3-month
b i l l s 2/
1.75
4.00
3.00
3.00
3.00
3.50
3.00
.58
4.59
2.11
2.97
2.65
3.39
2.88
3.50
3.50
3.50
3.50
3.50
3.24
3.26
3.32
3.36
3.39 /
(5/29)
(1/8/60)
(10/2E/60)
(7/13/62)
(S/8)
(8/30)
(3/15)
Yields
6-month
b i l l s 2/
(per cent)
3-5 year
issuea 2/
3.02
5.07
2.35
3.13
2.74
3.49
2.93
(12/26) 2 . 1 4
(1/8/60)5.00
(4/26/61)3.15
(7/2C/62)3.88
(6/a)
3 41
(8/30) 3.85
(3/8) 3.44
3.38
3.39
3.43
3.47
3.49
3.77
3.77
3.80
3.83
3.85
Spread b e t w e e n y i e l d s on 3 month b i l l s and y i e l d s on
6-mo. b i l l s ! 3 - 5 v r . i s s u e s
(6/6)
(l%/24/59)
(5/l2/6l)
(2/2/62)
(12/28)
(8/30)
(1/18)
.26
.79
.12
.44
.02
.17
.04
.04
1.81
.38
1.51
.52
.70
.46
.14
.13
.11
.11
.10
.53
.51
.48
.47
.46
1/ Weekly rate shown la that in e f f e c t at end of period at the Federal Reserve Bank of New York.
'{J Market yield; weekly averages oonputed 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 may be on different dates f o r different s e r i e s .
For spreads, high refers to widest, and low to narrowest.
"HCTTBANKS
AN D INTERMEDIATEAND
OTHER
PRIVATE
TERM
INTEREST
RATES,
BORROWERS
Exhibit D - Part I I
Date
Prime
rate 1/
S t o c k Exchange
c a l l l o a n JL/
Finance company
paper 2 /
Federal
funds 3 /
Spread between
3-mo. b i l l s and
f i n a n c e c o . paper
(per cent)
1958 - Low
1 9 5 9 - 6 0 - High
1960-61 Low
1 9 6 1 - 6 2 - High
1962 - Low
1963 - High
Low
3.50
5.50
4.50
4.50
4.50
4.50'
4.50
Aug.
Aug.
Aug.
Aug.
Aug.
4.50
4.50
4.50
4.50
4.50
2
9
16
23
30 £./
3.50
5.00
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
, 4.50
1.13
5.13
2.50
3.25
2.88
3.63
3.13
3.38
3.53
3.56
3.63
3.63
.13
(8/8)
(3/22/60) 4 . 0 0
•43
(8/5/61)
(7/20/62) 3 - 0 0
1.30
(6/1)
3.50
(8/30)
(5/31)
2.45
3.50
3.50
3.45
3.50
3.48
(5/29)
(5/13/60)
(2/27/61)
(12/28/62)
(3/26)
(8/23)
(7/26)
-.35
1.02
.11
.56
.19
.36
.09
.14
.27
.24
.27
.24
1/
HecK-iy rat© snoiro 2.3 i-iat xu oaxcou
om «*.
— —-- — =,—" on oall loans secured ty customers' stock exchange collateral at New York City banks . . Prime rate
i s that charged by large banks on short-term loans to business borrorers of the highest credit
2/
Average^of daily r a t e s published by finance oanpanies for directly placed paper f o r vaxying maturities
3/
Weekly averlge^of daily'ef fective r a t e , -which is the rate for the heaviest volume of purchase and
sale transactions as reported to the Federal Reserve Bank of New York.
Note.
Highs
and lews are for individual series and may be on different dates f o r different s e r i e s .
For spreads, high refers to widest, and lor to narrowest.
STOCK
MARKET
1941-43 oveioge'10
Exhibit E - Part I I
Date
1961-62 - High
Low
1963 - High
Low
Stock p r i c e
i n d e x 1/
72.04(12/8/61)
5 2 . 6 8 (6/22/62)
72.50 (8/30)
64.10 (3/1)
S t o c k market customer c r e d i t
Trading
Common .
Customers 1
Bank
volume 3 /
stock
Total d e b i t b a l - loans to
y i e l d s 2/ (millions
ances 4 / " o t h e r s " 5 /
( p e r c e n t ) of s h a r e s )
(In m i l l i o n s of d o l l a r s )
2.82
3.96
3.07
3.36
10.1
2.4
5.5
3.2
5,602( 12/6I) 4 , 2 5 9 (12/61) 1,377(8/30/61)
4,876(7/62) 3 , 5 6 2 (7/62) 1,269(9/26/62)
6,511(7/63) 4,898(6/63) 1,620(7/24)
5,595(1/63) 4,208(1/63) 1,378(2/23)
3.20.
3.5 6,511
4,895
69.07
1,616
July
3.13
4.2
70.98
August
3
.
1
6
3
.
7
7
0
.
4
8
1
,604
Aug. 9
4.6
3.11
1,617
71.49
Aug. 16
3.10
71.76
4.1
1,622
Aug. 23
3.07
72.50
Aug. 30 p /
4,7
n.a.
,
..fcrflr-,-.'
a.a.—Not available, d / Preliminary,
1/ Standard and Poor's composite index of 500 ooianon stooka, weekly closing prices, 1941-43-10,
Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are for
Friday's data only,
2 / Standard aid Poor^s composite stock yield based on Wednesday data converted t o weekly closing
prices by Federal Reserve, Yields shown are for dates on which price index reached i t s high
3/ Averages of daily trading volume on the New York Stock Exchange,
Aj End of month figures for member fixms of 1he New York Stock Exchange viiioh c a n y margin accounts;
excludes balances secured by U. S. Government obligations.
5 / Wednesday figures for weekly reporting member banks. Excludes loans f o r purchasing or carrying
U . S . Government securities. Prior to July i , 1959, suoh loans are excluded only at bonks in
New York and Chicago, Weekly reporting banks account fbr about 70 per cent of loans to others.
Digitized for
For FRASER
further d e t a i l see Bulletin,
MORTGAGE
AND
BOND
YIELDS
(ORrORATi BONDS
I960
1961
Exhibit F - Part I I
Conven- S p r e a d b e t i o n a l tween y i e l d s
gages
on c o n v . &
g a g e s2 /
FHA rates.
FHA
Date
1956
1957
1958
1959-60
1962-63
- Low
- High
- Low
- High
-.High
Low
1963 - May
July
August
4.68
5.63
5.35
6.24
5.72
5.44
5.20
6.00
5.55
6.30
5.95
5.80
.47
.47
.15
.23
.38
.23
5.44
5.44
5.44
n.a.
5.80
5.80
5.80
n.a.
.36
.36
.36
n.a.
V
^
Aaa C o r p o r a t e
NewA/
Seasoned^/
S p r e a d b e t w e e n y i e l d s on
new c o r p o r a t e bonds and
FHA m t g s .
3.08
4.94
3.65
5.25
4.72
4.12
3.08
4.12
3.57
4.61
4.45
4.22
.76
1.58
.88
1.69
1.50
1.13
4.30
4.26
4.31
4.29
4.22
4.23
4.26
4.29 .
1.14
1.18
1.13
n.a.
Seasoned b d s .
..
1.03
.05
.73
.39
-.16
.08
.03
.05
Neither mortgage nor bond yields
take
into account
servicing coats
which are mi oh higher f o r mortgages
J
1 J
J
than bonds
^
-" - —
* - j - monthly,
'' '
*'Mortgage
• - - y•i e l d s , i f oomds. "
Generally,
bonds pay interest
semi-annually;
mortgages,
puted as equivalent t o a serai-annual interest investment, would be s l i g h t l y higher than given in the
table,
ZJ Based on FHA f i e l d - o f f i c e opinions about average bid prices in the private s eoondary market f o r
new-home mortgages f o r Immediate delivery. Data relate only to 2 5-year mortgages with down payments
of 10 per cent or more, weighted by probable volume of transactions. Yields computed by FRB,
assuming 25-year mortgages are paid off in 12 ^ a r s . Dashed lines indicate periods of adjustment
to changes i n the contractual i n t e r e s t rate#
y
Based on FHA f i e l d o f f i c e opinion on t y p i c a l interest rates (rounded) on conventional f i r s t
mortgages prevailing i n the market areas of insuring o f f i c e c i t i e s . Beginning with Apzll 1961,
rate relates only t o new-home mortgages) pxior to that date, rate related to both new as well as
existing-home mortgages. Dashed line indicates this change i n the s e r i e s .
Digitized
See for
noteFRASER
for Exhibit G.
5 / Moody's Investor Service, Monthly averages of daily data. See Exhibit A.
http://fraser.stlouisfed.org/
%
Federal Reserve Bank of St. Louis
V
E x h i b i t G - P a r t IX
Y i e l d s on New Corporate Bond I s s u e s Adjusted t o an Aaa b a s i s
Number Ain't o f I s s u e s Average
yield
included (mil.
of
( p e r cent).
of dollars)
Number Ain't o f I s s u e s Average
included (mil.
yield
of
(per cent)
i s s u e s of d o l l a r s )
Weekly averages:
1963 - A p r . 5
12
19
26
May
3
10
17
24
31
June 7
14
21
28
2
1
3
3
45.0
6.0
95.0
128.0
4.23
4.18
4.28
4.30.
1
2
1
3
25.0
266.0
: 30.0
76.0
4.22
4.31*
4.27
4.27
. 1
3
2
2
50.0
34.0
115.0
46.5
July
5
12
19
26
Aug. 2
11
23
30
2
1
3
1
2
80.0
25.0
58.0
70.0
75.0
2
50.0
4.30*
4.43*
4.31
4.28
4.27
4.33*
4.23*
4.25
*
4.24
4.25
A by Moody's Investors Service (except serial and convertible is sues, offerings of natural gas pipeline
and foreign companies, and bonds guaranteed by the Federal Government) weighted by size of offering.
Before averaging, new offerings are adjusted to a composite Aaa basis fcy deducting from the actual ^
reofferlng yield t b excess of the weekly average yield f o r seasoned bands of the appropriate industryquality group over the composite average for seasoned Aa&»rated bonds (Moody's)# Averages considered
unrepresentative because at special characteristics of ihe offerings included are denoted by an asterisk^
H. 14
Exhibit H
Long-term C o r p o r a t e and S t a t e and Local Government
S e c u r i t y O f f e r i n g s and Placements
( I n m i l l i o n s of d o l l a r s )
New cap:i t a l
1963
|
C o r p o r a t e 1/
1961
1962
|
1963
S t a t e and l o c a l 2/
1961
1
1962
I
613
594
1 ,144
592
859
807
580
667
,562
£/
£/
£/
731
726
973
876
1,133
628
711
689
764
April
May
June
r / 9 3D
V:' 904
I / I ,0110
1 ,113
760
1 ,132
2 ,118
1 ,259
1 ,318
£/
£/
E/
868
856
907
873
912
786
722
640
1 ,034
July
August
September
e/
e/
700
5)9
650
582
749
579
1 ,028
762
647
e/
e/
e/
550
699
550
612
544
427
486
604
734
835
703
1 ,103
1 ,090
948
1 ,000
650
578
550
679
789
610
2.,351
v / 2 ; ,R4'7
2,,025
2 ,258
3 ,005
1 ,910
2 ,641
1 ,809
4 ,695
2 ,437
3 ,038
£/2,431
/ 2,630
e/1,775
2,637
2,571
1,582
1,779
2 ,165
2 ,396
1 ,824
2 ,078
;•/5 ; ,198
e/7,223
5 ,264
7;,173
.9;,814
6 ,504
8 ;,941
11:,979
£/5,061
^76,836
5,208
6,790
8,568
4,561
6,385
8 ,463
January
February
March
£/
October
November
December
1st
2nd
3rd
4th
quarter
quarter
quarter
quarter
1st half
Three q u a r t e r s
Year
£
E x c l u d i n g f i n a n c e companies 3 /
1st
2nd
3rd
4th
quarter
quarter
quarter
quarter
2, 284
e/2,54'7
e / l s 775
Year
e/
1/
2/
3/
2,,199
2,,919
1 5,775
2 3,410
1,,554
4,552
2 3,337
2 j,807
9 j,303
11,,253
E s t i m a t e d by F e d e r a l Reserve=
£/ Preliminary.
S e c u r i t i e s and Exchange Commission e s t i m a t e s of n e t p r o c e e d s .
I n v e s t m e n t Bankers A s s o c i a t i o n of America e s t i m a t e s of p r i n c i p a l amounts.
T o t a l new c a p i t a l i s s u e s e x c l u d i n g o f f e r i n g s of s a l e s and consumer f i n a n c e
companies.
3#
. j
H.14
Exhibit I
V,
New C o r p o r a t e S e c u r i t y I s s u e s , Type of I s s u e and I s s u e r
( I n m i l l i o n s of d o l l a r s )
Quarter
or
month
. Gross p r o c e e d s f o r new
e a n i t a l and r e f u n d i n g 1/
Memo:
Common
Bemds
foreign
and
Total Publicly Privately
issues
offered. offered
included
s!c £ 2k
2,832
1,462
955
Net proc :eeds t o r
>/
new capi Ltal 1 / 'i
Mfg. .
625
416
P u b l i c Communiu t i l i t y cations
Other
issuers
696
381
997
832
1,,052
803
1.,263
1961 - I
II
III
IV
1,992
5,352
2,566
3,236
662
2,303
772
967
880
1,275
1,139
1,424
449
1,774
654
845
76
155
69
62
515
1,466
935
792
381
1,081
595
836
81
,095
104
147
1962 - I
II
III
IV
2,378
j 3,250
|2,184
12,957
1,155
1,389
853
1,089
716
1,222
1,024
1,568
507
639
307
300
68
257
56
179
655
996
601
769
430
983
375
568
456
231
275
321
717
794
659
986
700
,635
1,108
1,389
1,306
1,821
.287
425
128
434.
947
591
326
793
236
221
842
1 ,241
1,155
987
1,094
336
414
217
509
348
567
310
225
310
25
12
25
271
215
306 .
306
362
168
25
80
42
487
291
485
647
884
847
1,217
801
1,232
630
922
632
976
784
1,197
273
497
386
654
- 247
488
200
47?
176
539
286
264
232
232
253
227
4fb
575
366
363
295
314
446
143
155
209
336
134
169
67
82
161
123
52
125
3
12
54
10
147
100
13
| 695
1963 - J a n .
| 642
Feb.
1,363
Mar.
A p r . ; - ' 1,049
1,340
May >,
1,246
June •
740
J u l y e/
Aug.
1
Sept.
350
259
499
380
530
459
280
243
289
774
45,?,
694
675.
350
102
94
91
25
43
60
56
182
196 .
1963 - I
II III
1962 - J a n .
Feb. •
Mar.
Apr.
May
June
July
Aug,
Sept.
Oct.
|
Nov.
:
Dec.
111
95
1/3
110
43
46
2./ P r e l i m i n a r y ,
n e t p r o c e e d s by t h e
Digitized
e x t r a c t ifor
v e , FRASER
railroad
nd o t h e r . S o u r c e . - • S e c u r i t i e s and
Exchange Commission.
205
131
318
384
270
342
217
218
166
15 3
271
365
148
193
377
196
410
118
110
148
141
175
252
73
362
21 •
88
64
19
88
120
67
260
4
57
135
220
592
114
115
97
541'
216
22.7,
240
222'
125
68
43
7192:
230)
150
60
225
218
275
264
229
301
159
301
199
282
253
451
238
191
412
364
373
499
250
H. 14
Exhibit J
Other S e c u r i t y O f f e r i n g s
( I n m i l l i o n s of d o l l a r s )
1963
January
February
March ,
April
May
July
August
September
October
November
December
Gross l o n g - t e r m 1/
F o r e i g n government 2 /
1 1961
1
1962
232
133
76
57
114
11
e / 60
Year
Jan.-July
142
10
35
10
86
50
25
8
31
151
88
101
737
e / 683
358
1963
F e d e r a l aeency 3/
1961
1
1962
1
148
246
156
186
461
252
100
149
278
150
175
250 .
193
43
34
--
225
--
--
6
29
20
2
66
29
5
2
469
e/ —
—
236
1,188
1,448
157
863
779
e/
79-3
Net Shoir t - t e r m 4 /
F e d e r a l agency
S t a t e and l o c a l government 5 /
January
February
March
April ^
May
July
August
September
October
November
December
7.5
272
-367
589
-169
-149
£/
10
Year
Jan.-July
2/
1/
18.
466
-186
127
-84
-118
78
339
-406
71
234
-161
160
195
-8
-103
-42
-155
109
518
-86
-6
54
-116
378
520
30.1
156
|
|
-106
-189
-482
292
£ / 380
£ / 275
£ / 392
3/
247
-156
226
-364
82
284
261
227
-157
379
55
-80
1,004
562
580
Preliminary.
eZ E s t i m a t e d by F e d e r a l R e s e r v e .
n.a.—Not available.
These d a t a d i f f e r from t h o s e i n E x h i b i t H i n t h a t r e f u n d i n g i s s u e s , a s w e l l a s new
c a p i t a l i s s u e s a r t i n c l u d e d . Long-term s e c u r i t i e s a r e d e f i n e d a s t h o s e m a t u r i n g i n
more t h a n one y e a r .
2 / I n c l u d e s s e c u r i t i e s o f f e r e d i n t h e U n i t e d S t a t e s by f o r e i g n governments and t h e i r
p o l i t i c a l s u b d i v i s i o n s and i n t e r n a t i o n a l o r g a n i z a t i o n s . S o u r c e : S e c u r i t i e s and
Exchange Commission.
3 / I s s u e s n o t g u a r a n t e e d by t h e U. S. Government. S o u r c e : l o n g - t e r m , S e c u r i t i e s and
Exchange Commission; s h o r t - t e r m , T r e a s u r y Department and F e d e r a l R e s e r v e .
4 / These d a t a d i f f e r from t h o s e i n E x h i b i t H and above i n t h a t they r e p r e s e n t new
o f f e r i n g s l e s s r e t i r e m e n t s , w h e t h e r from t h e p r o c e e d s of r e f u n d i n g i s s u e s o r from
o t h e r f u n d s . Data i n c l u d e o n l y i s s u e s w i t h o r i g i n a l m a t u r i t y of one y e a r o r l e s s .
5 / P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , w a r r a n t s or c e r t i f i c a t e s and P u b l i c
"*
Housing A u t h o r i t y n o t e s . I n some i n s t a n c e s PIIA n o t e s i n c l u d e d may have a somewhat
Digitizedl ofor
n g e FRASER
r m a t u r i t y than one y e a r . S o u r c e : Bond Buyer and F e d e r a l R e s e r v e .
-144
-162
-174
-79
-87
207
22
193
108
98
56
-114
-76
-417
Exhibit K
H. 14
Large Long-term P u b l i c S e c u r i t y I s s u e s for New C a p i t a l
(Other t h a n U. S. T r e a s u r y ) 1/
Proceeds of Large I s s u e s O f f e r e d
( I n m i l l i o n s of d o l l a r s )
Month
Total
1962 - August
September
October
November
December
1963 - J a n u a r y
February
March
April
May
July
August
Corporate
Bonds
(Other than
Convertible
convertibles)
bonds
286
191
434
178
198
234
186
394
409
149
348
221
236
226
100
398
178
178
215
125
372
263
149
348
180
218
Stocks
60
91
36
20
19
26
22
146
- -
35
41
18
State
and
Local
government
272
153
320
217
193
344
367
570
431
489
472
279
329
Other 2/
194
25
75
48
63
134
43
460
60
20
Large I n d i v i d u a l I s s u e s O f f e r e d d u r i n g Month of August
|
Amount
;(millions
of
j
, dollars)
, • |
Type 3/
CORPORATE
*Burroughs Corp.
M i n n e a p o l i s Honeywell Reg. Co.
I n d i a n a & Michigan E l e c . Co.
Commercial C r e d i t Co.
^United A i r c r a f t Corp.
Lone S t a r Gas Co.
' Sprague E l e c . Co.
. stk.
S.F, . deb.
1 s t mtg. b d s .
Notes
Deb,
S . F . deb.
S . F . deb.
STATE AND LOCAL GOVERNMENT
S t a t e of New Hampshire
P h o e n i x , Arizona
S t a t e of C a l i f o r n i a
New York C i t y T r a n s i t Auth.
Southern I l l i n o i s University
P u b l i c Housing Auth.
A l e x a n d r i a , La.
F u l t o n County } Georgia
Rev. - U t .
G.O.
OTHER
Nippon T e l . & T e l . P u b l i c Corp.
Bonds
G.O.
Rev. - U t .
G.O.
Rev. -Q.Ut.
Rev. -Rent
--
17.6
30.0
45.0
50.0
42.9
35.0
15.0
Maturity
1993
1988
1985
1988
1988
1988
OfferCoupon
r a t e o r n e t ing
i n t e r e s t yield Rating
4-3/8
4-1/4
4-1/2
4-1/2
4-3/8
4-3/8
23.4
12.0
100.0
38.3
11.3
116.2
11,4
16.0
1964-93
1969-90
1965-90
1965-87
1966-2003
1964-2004
1965-93
1967-88
2.74
3.25
2.99
3.32
3.61
3.17
3.56
3.10
20.0
1978
5-3/4
4.33
4.27
4.50
4.50
4.38
4.40
Aa
Aa
Aa
A
1. 7 0 - 3 . 1 5 , Aaa
2 . 6 0 - 3 . 3 5i A
1. 9 5 - 4 . 2 5 i Aa
2. 1 0 - 3 . 4 0 - 2. 3 0 - 3 . 7 5 4 / ~
1. 8 0 - 3 . 3 0 I Aaa
2. 2 0 - 3 . 6 0 i A
2 . 3 0 - 3 . 2 5 Aa
6.08
"
H. 14
K-2
Footnotes
*
1/
2/
3/
4/
Rights o f f e r i n g .
n.a.--Not available.
I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and o v e r ; S t a t e and
l o c a l government s e c u r i t y o f f e r i n g s of $10 m i l l i o n and o v e r .
I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and Development
i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e r a l a g e n c i e s .
I n t h e c a s e of S t a t e and l o c a l government s e c u r i t i e s , G.O. d e n o t e s g e n e r a l
o b l i g a t i o n s ; R e v . - U t . , revenue o b l i g a t i o n s s e c u r e d only by income from p u b l i c
u t i l i t i e s ; R e v . - Q . U t . , r e v e n u e bonds s e c u r e d o n l y by revenue from q u a s i - u t i l i t i e s ;
R e v . - S . T . , r e v e n u e bonds s e c u r e d by revenue from s p e c i f i c t a x e s o n l y ; R e v . - R e n t ,
r e v e n u e bonds s e c u r e d s o l e l y by l e a s e payments.
$ 3 . 0 m i l l i o n i n bonds w i t h 3 - 1 / 2 p e r c e n t coupons m a t u r i n g 1989-2003 p u r c h a s e d
by F e d e r a l Housing & Home F i n a n c e Agency a t p a r .
I
H. 14
Exhibit L
Forthcoming Large Long-term P u b l i c S e c u r i t y O f f e r i n g s f o r New C a p i t a l
(Other than U. S. T r e a s u r y ) 1/
Expected Proceeds from Forthcoming Large I s s u e s
Date of
< computation
1
1962 - Aug.
Sept.
Oct.
Nov.
. Dec.
1963 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
31
28
31
30
28
31
28
29
30
31
28
31
31
During month f o l l o w i n g
d a t e shown
S t a t e and
Corporate
local govt.
Other 2/
170
363
203
170
269
167
142
376
149
223
170
221
158 .
61
187
96
194
177
376
458
381
447
255
142
329
210
Subsequent t o
d a t e shown
S t a t e and
Corporate
local govt.
175
312
546
328
360
314
412
572
421
234
288
215
267
183
75
25
45
40
460
75
20
;
215
387
243
328
311
843
755
763
599
582
287
512
468 /
Other 2/
175
75
25
33
45
40
460
75
20 "
Forthcoming Large O f f e r i n g s , a s of August 30
Issuer
CORPORATE
CIT F i n a n c i a l Corp.
A t l a n t i c Coast Line R.R. Co.
N o r t h e r n S t a t e s Power Co.
New England T e l . & T e l . Co.
*United C a l i f o r n i a Bank
STATE AND LOCAL GOVERNMENT
I S t a t e of Washington
j Houston I n d . Sch, D i s c . , Tex.
'New York City, New York
D e t r o i t , Michigan
• Los Angeles U n i f . Sch. D i s t . , :
t
California
1 New O r l e a n s , La.
; M u n i c i p a l i t y of Metro. S e a t t l e ,
! Washington
^ S t a t e of North C a r o l i n a
I L e w i s p o r t , Kentucky
1 A u s t i n , Texas
| Los Angeles Dept. of Wtr. & P w r . ,
) California
Type
Deb,
Deb.
1 s t mtg. b d s .
Com. s t k .
Com. s t k .
Amount
( m i l l i o n s of
. dollars)
100.0
20.0
. 15.0
22,6
25.0
Approximate d a t e of
offering
September 11
September 18
September 19
September 23 ( r t s . e x . )
October ( r t s . e x . )
Rev.-Rent
G.O.
Rev.-Rent
G.O.
G.O.
35.8
10.6
25.6
11,5
2 5 . 0 •,
September
September
September
September
September
4
10
10
17
17
G.O.
Rev.-Ut.
14.7
15.0
September 18
September 18
G.O.
Rev.-Rent
Rev.-Ut.
Rev.-Ut.
22.0
50.0
14.0
12.0
September 18
September
October 3
October 9
;
H. 14
L-2
Forthcoming Large O f f e r i n g s , as of August 30
Issuer
Type
Amount
( m i l l i o n s of
dollars)
Approximate d a t e of
offering
STATE AND LOCAL GOVERNMENT ( c o n t ' d )
^ C i n c i n n a t i , Ohio
* S t a t e of L o u i s i a n a
C l e v e l a n d C i t y Sch. D i s t . , Ohio
* E a s t Bay Mun. U t i l , D i s t , , C a l .
P i t t s b u r g h , Pa.
J e f f e r s o n County, Colorado
Dade County, F l o r i d a
J a c k s o n v i l l e Expressway A u t h . , F l a .
Houston, Tex.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev. - U t .
G.O.
20.0
30.0
10.0
27.0
35.0
12.9
46.0
40.0
11.1
October 9
October 16
October 25
November 20
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Included in t a b l e f o r f i r s t time.
•
I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of $15 m i l l i o n and o v e r ; S t a t e and l o c a l
government i s s u e s of $10 m i l l i o n and o v e r .
2/ I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and
Development i s s u e s and n o n - g u a r a n t e e d i s s u e s of F e d e r a l a g e n c i e s .
N o t e . - - D e l e t i o n s f o r r e a s o n s o t h e r t h a n s a l e of i s s u e : The $ 1 1 . 1 m i l l i o n i s s u e of
New Mexico S t a t e Univ. was s o l d t o r e f u n d o u t s t a n d i n g s e c u r i t i e s .
•
. ^
vj
•.%
*
1/
%
Exhibit M
H. 14
F o r e i g n Government and C o r p o r a t e S e c u r i t y O f f e r i n g s
and Placements i n t h e United S t a t e s
Part I:
Sale
Date
Amount
( m i l l i o n s of
Hnl 1 n r s t
I s s u e r and D e s c r i p t i o n of I s s u e
A.
6/12
10.0
7/10
20.0
7/10
7/17
20.9
25.0
7/17
15.0
8/1
20.0
8/2
7.3
Public Offerings
Sold J u n e 1 through August ) 0
O s l o , Norway--5-1/4% b o n d s , due 1 9 7 8 - - r e o f f e r e d t o
y i e l d 5.477,
M i l a n , I t a l y - - 5 - l / 2 % b o n d s , due 1 9 7 8 — r e o f f e r e d t o
y i e l d 5.63%
H i t a c h i , Ltd.--Common s t o c k
United Mexican S t a t e s - - 6 - 3 / 4 % s i n k i n g fund b o n d s ,
due 1 9 7 8 - - r e o f f e r e d t o y i e l d 7^00%'
United Mexican S t a t e s - - 6 % bonds due 1 9 6 6 - 6 8 - r e o f f e r e d t o y i e l d 6.00%
Nippon Telephone & T e l e g r a p h P u b l i c C o r p o r a t i o n - - 5 - 3 / 4 %
g u a r a n t e e d s i n k i n g fund bonds due 1 9 7 8 - - r e o f f e r e d t o
y i e l d 6.08%
Tokio Marine and F i r e I n s u r a n c e Co.--common s t o c k
B.
None
Prospective Offerings
M-2
Part II:
Date
Reported
Private Placements--Reported June 1 through August
Amount ,
( m i l l i o n s of
dollars) 1
6/4
18.0
6/13
15.0
6/20
13.5
6/25
12.5
6/28
10.0
6/28
5.0
7/18
26.0
7/18
4.0
*8/6
2V1
-
*8/6
5.0
Issuer and Description of Issue
C o n s o l i d a t e d Gold F i e l d s of South A f r i c a , L t d . - promissory n o t e s , maturing 1971--no i n f o r m a t i o n
a v a i l a b l e on takedown
Nippon E x p r e s s C o . - - 6 - 1 / 2 % c o n v e r t i b l e d e b e n t u r e s ,
m a t u r i n g - 1 9 7 8 - - n o i n f o r m a t i o n a v a i l a b l e on takedown
Mitsubishi E l e c t r i c Corp.--6-1/2% convertible debentures
m a t u r i n g 1 9 7 8 - - n o i n f o r m a t i o n a v a i l a b l e on takedown
Quebec N a t u r a l Gas C o r p . - - 5 - 1 / 2 % f i r s t m o r t g a g e b o n d s ,
m a t u r i n g 1987~-no i n f o r m a t i o n a v a i l a b l e on takedown
F a r b w e r k e H o e c h s t A.G.--5% p r o m i s s o r y n o t e s , m a t u r i n g
1 9 6 8 - - n o i n f o r m a t i o n a v a i l a b l e on takedown
Dai Nippon P r i n t i n g Co. L t d . - - c o n v e r t i b l e d e b e n t u r e s ,
m a t u r i n g 1 9 7 8 - - n o i n f o r m a t i o n a v a i l a b l e on takedown
P a c i f i c Petroleum Ltd.--5-1/2% secured notes, maturing
1 9 7 8 - - n o i n f o r m a t i o n a v a i l a b l e on takedown
Copenhagen County A u t h . , Denmark--5-1/2% e x t e r n a l n o t e s , "
m a t u r i n g 1 9 6 8 - - n o i n f o r m a t i o n a v a i l a b l e "on takedown
Banco N a c i o n a l de C r e d i t o A g r i c o l a ; S . A . , Mexico C i t y - 6-1/2% p r o m i s s o r y n o t e s , m a t u r i n g 1 9 6 4 - 6 8 - - n o
i n f o r m a t i o n a v a i l a b l e on takedown
Austrian Investment Finance C o r p . - - n o t e s , maturing
1 9 7 3 - - n o i n f o r m a t i o n a v a i l a b l e on takedown
Note:
For r e t r o s p e c t i v e d a t a on a g g r e g a t e f o r e i g n c o r p o r a t e and government
s e c u r i t y o f f e r i n g s i n t h e U n i t e d S t a t e s s e e E x h i b i t s I and J .
T h e r e i s no s i m p l e
r e l a t i o n s h i p b e t w e e n t h e d a t a shown i n t h i s E x h i b i t and t h a t shown i n E x h i b i t s I
and J b e c a u s e t h e l a t t e r i n c l u d e s p r i v a t e l y p l a c e d s e c u r i t i e s i n t h e p e r i o d i n
which f u n d s a r e a c t u a l l y takendown b u t o n l y i n t h e amount of t a k e d o w n , w h i l e t h e
p l a c e m e n t s shown i n t h i s e x h i b i t a r e i n c l u d e d when r e p o r t e d , f r e q u e n t l y w i t h
l i t t l e o r no i n f o r m a t i o n c o n c e r n i n g t i m i n g of t a k e d o w n s . F u l l o r p a r t i a l takedowns
may t a k e p l a c e b o t h p r i o r and s u b s e q u e n t t o t h e d a t e a p l a c e m e n t i s r e p o r t e d .
•
• - - I nFRASER
cluded i n t a b l e f o r f i r s t time.
• v
Digitized 'for
@FedFRASER