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Not for Publication DECONTBOLLED AFTER SIX MONTHS
UBRRBX
3
1968
GC 1 v b s £ r V £
September 30 , 1968.
\
\
I
fr]
CAPITAL MARKETS DEVELOPMENTS
IN THE UNITED STATES
^r
"
Xogptrrate and municipal bond markets. The volume of new, publicly
, offetfe3\ corporate and municipal securities expected this week will be below
the average weekly volume over the past year. The largest corporate offering
will be the Columbia Gas System's $40 million of debentures, while the largest
municipal offering will be the Los Angeles Flood Control District's
$45 million of general obligation bonds. The week's volume of long-term
issues will be supplemented by a $50 million offering by the Province of
Manitoba.
Long-term Public Security Offerings^/
(In millions of dollars)
Corporate
New Capital 1 Refunding
State and local Government
New Capital I Refunding
Sold:
52 week avg.
291
September 20
r/145
1 r/581
September 27
320
148
Scheduled:
October
\J
4
|
j
100
1
—
283
1
217
Federal Reserve estimates are based upon published reports of
issues sold and scheduled for offering; corporate rights offerings
are included as of date subscription rights expire.
Despite the reduction in the prime rate at mid-week, yields on new
and seasoned corporate bonds advanced slightly last week. Most new issues-most notably the $150 Detroit Edison offering—were well received, but the
competitively offered Commonwealth Edison issue, totalling $75 million,
experienced a cool reception. Sales by the unsuccessful New England Tel & Tel.
syndicate were also limited again.
Yields on municipals declined somewhat last week, but new issues
in this market were not enthusiastically received. By the end of the week
only 66 per cent of the week's small volume of offerings had been sold.
Home mortgage interest rates and other terms. Secondary market yields
on certain FHA-insured new-home mortgages declined again in August to an
average of 7i35 per cent. Discounts on these mortgages dropped to 5 points,
the lowest in more than a year. With yields on new Aaa corporate bonds falling
H. 14
. -2-
Yields on Security Markets
Change from
preceding week
High-Grade
Notes and Bonds
Corporate
6.26
New
Seasoned
6.00
+
+
2
2
+
+
1
1
TT.S. Government.
5.09
5.28
Long-term
3-5 year
State and local Gov't*
Moody's Aaa
Std. & Poor's high grade
4.20
4.40
Money Market
+ 30
5.90
Federal funds
Treasury bills
3-month
6-month
+
-
5.13
5.24
5
1
Corporate Bonds Still in Syndicate
Date
Offered
Amount
(millions of $)
Reoffering
Yield
Rating
Issuer
9/24
75.0
Commonwealth Edison,
6-3/8's - 1998
6.33
9/10
60.0
Tenneco,
7's - 1988
7.00
9/9
125.0
New England Tel. & Tel,6.35
6-3/8's - 2008
Aaa
Estimated proportion sold
35%
907.
Aaa
55%
ulna List of Municipal Dealers ' Advertised Inventories
Latest Week .
609(9/24/68).
End of Previous Week
604
1968 High
849(8/28/68)
H. 14
sharply during the month, the average spread between these two yields widened
to 109 basis points in favor of FHA loans, the most attractive margins in a
year and a half.
Interest rates on conventional home mortgages as reported by the
Federal Housing Administration were unchanged during August at 7.30 per cent
for new-home loans and 7.35 per cent for existing-home loans. While the
individual regions generally showed no change from July, rates in the North
Central area eased somewhat on both new and existing-home loans.
The West and Southwest regions also reported a slight decline in
the rates charged for new-home loans. This was the first time that any
region had been reported to have had a lower average rate in almost a year.
According;to Federal Home Loan Bank Board data, interest rates on
conventional first mortgages for both new and existing homes rose slightly
during August. This series, which tends to lag the FHA conventional series,
followed much the same pattern in August as the FHA series did in July,
reporting the smallest monthly advance since the first quarter. Non-rate
terms were generally somewhat easier in August. Maturities on existing-home
loans lengthened as the loan-to-price ratios on new as well as existing-rhome
loans rose slightly during the month, implied downpayments, however, advanced
to or remained at record highs—$8,200 for new homes and $7,100 for existing
homes.
Nohbank financial intermediaries. The growth In savings during
August showed limited recovery from the reduced July pace at savings and loan
associations and particularly at the savings banks. Net new money flows into
both institutions remained well below their year-ago volume.
Stock market credit. Declines in both trading volume and actual
margin debt led to a substantial decline in customers' net debit balances
during August. Such balances were reduced by $390 million to $8,435 during
the month. Bank purpose loans to non-brokers, however, which include loans
associated with bonds (other than U. S. Governments) as well as stock, rose
by $71 million to $2,487 million. The general lack of enthusiasm for common
stocks during August evidently led many rrarket participants to remove funds
from their free credit balances; these balances declined $286 million to
$2,983 million.
Stock prices. Common stock prices established new all-time highs
last week in trading which continued heavy. On Tuesday, the Standard & Poor's
index of 500 stocks closed at 102.59, 0.20 above the previous high reached
in mid-July. The index closed Friday slightly lower at 102.31, up 0.65 from
the previous Friday. Trading volume averaged 14.9 million shares a day.
SAVINGS FLOWS AT NONBANK DEPOSITARY INTERMEDIARIES
($ millions)
Mutual Savings Banks
Regular Deposits
Annual
Net,
Growth
Rate 1/
Flow
Net
New
Money—
Savings & Loan Associations
Share Capital
Net
Annual
New
Growth
Net
MoneysRate
Flow
Total
Deposits
Annual
Growth
Net
Flow
Net
New
Money
Not Seasonally Adjusted
3,563
2,591
5,079
1965
1966
1967
1967 - June
July
August
1968
June r/
July £/
August j>/
622
319
325
r/453
186
238
7.,4%
4..9
9,,3
—
__
——
8.3%
3.3
9.1
1,527
227
2,376
8,396
3,656
10,686
130
222
283
1,935
55
646
. --
-111
75
181
r/1,623
r/ -605
389
—
--
--
4,458e
-552
6,136
11,959
6,247
15,765
463
34
623
2,557
374
971
158
r/-606
370
2,076
r/-419
627
8..0%
3,.8
9 .2
5,985e
-325
8,512
593
256.
906
-
---
47
-531
551
Seasonally Adjusted
Mar.
Apr.
May
June r/
July £./
August £/
2/
e/
427
241
r/458
r/324
r/292
316
8.5
4.7
9.0
6.3
5.7
6.1
887
406
621
r/813
r/467
.689
8.5
3.9
5.9
7.7
4.4
6.5
1,314
647
1,079
1,137
759
1,005
8.5
4.2
6.9
7.3
4.8
6.4
^ t t e / M ^ e y ^ L p o s i T n e ^ o f b o t ^ w i t h d r a w a l ^ a n d i n t e r e L ™ " * t ^ for s S ' s ^ r e for insured associations
o n l y , which represent 96% of the total resources of the industry.
Estimated.
£./ Preliminary.
r/ Revised.
September 30, 1968.
H. 14
STOCK MARKET CREDIT
(In millions of dollars)
Months
Total
Customer Credit
Money
Net Debit Bank locns to others
Borrowed
balances with than brokers and
Cust; Other
NYSE member dealers for purchascoll. coll.
f-iritis—„ jn? & carry*ny secur,
Outstanding:
1955-56 High
4,047 (5/56) 2,823 (12/56)
1,255 (4/56)
1,873
430
1957-58 Low
3,554 (1/58) 2,482 (12/57)
1,060 (11/57)
1,344
188
High
Low
High
Low
High
Low
4,764
4,142
5,602
4,876
7,298
6,833
1964 - Dec;
1965 - Dec*
1-968 - Aug.
7,053
7,705
L0,922
1959
•1960
1961
1962
1963
1965
-
(4)
(5)
(12)
(7)
(11)
(7)
3,401
3,004
4,259
3,562
5,586
4,863
(4)
(7)
(12)
(7)
(11)
(7)
5,079
5,521
8,435
1,373
1,121
1,377
1,269
1,727
1,865
(5)
(5)
(8)
(9)
(12)
(2)
1,974
2,184
2,487
Customers
net free
credit
balances
1,069 (1/55)
807 (4/57)
2,044
1,801
2,572
1,856
3,892
2,882
318
237
385
235
597
446
1,257 (3)
940(4)
1,508 (4)
1,091 (9)
3,393
2,889
n. a.
517
687
n. a •
1,169
1,666
2,983
1,211 (11)
1,192 (8)
Change in
outstanding:
1967 -Aug.
Sept.
Oct.
Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
69
293
271
62
852
-154
-391
-216
426
576
513
r/140
"-319
4
218
185
43
830
-122
-380
-169
454
565
460
r/134
-390
65
75
86
19
22
-32
-11
-47
n.a.
n.a.
n.a.
n.a.
n.a.
-28
11
53
n.a.
6
n.a.
_Z1_
i are reported uv
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n. a.
n.a.
tuav—
-60
120
112
-13
263
179
-174
-76
287
85
229
r/-24
-286
Stock
EXHIBIT
A, Pari. 1
L O N G - T E R M B O N D YIELDS, H I G H - G R A D E
Weekly
CORPORATE Aaa
U.S. GOVERNMENT
Long-term
I STATE AND LOCAL GOVERNMENT Aaa
1963
1964
1965
1966
1967
1968
Exhibit A -- faru j_x
Date
1959-60 - High
1966 - High
- Low
1967 - High
- Low
Corporate
Aaa 1/
State and
U.S. Govt. |
local
long-term 2/j government
Aaa 3/
1
(per cent)
4.61(1/29/60)
5.52(9/9)
4.73(1/7)
6.24(12/29)
5.00(2/10)
4.42(1/8/60)
4.87(9/2)
4,42(1/7)
5.49(11/17)
4.37(2/3)
3.65(9/24/59)
4.04(8/25)
3.39(1/13)
4.15(12/28)
3.25(2/9)
5.06
5.07
5.12
5.08
5.09
4.25
4.25
4.25
4.21
4.20
5.97
.1968 - Aug. 30
5.95
Sept. 6
5.95
13
r/5.98
20
27£/ " 6.00
Spread between
U.S. Govt, and
| State and
Corporate
| local Aaa
Aaa
.59(8/5/60)
.84(12/30)
.14(2/18)
.92
.44
.91
.88
.83
r/.90
.91
„92(4/22/60)
1.19(2/11)
.77(9/2)
1.51
.74
.81
.82
.87
.87
.89
p/ Preliminary. r/ Revised.
.
1/ Weekly average of daily figures. Average term of bonds included is 22-24 years.
2/ Weekly average of daily figures. The series includes bonds due or callable in 10
years or niuie.
0_
3/ Thursday figures. Only general obligation bonds are included; average term is 20
Note--Highs 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 B, Pari
L O N G - T E R M B O N D YIELDS, LOWER GRADE
We ekly
CORPORATE Baa
STATE AND LOCAL GOVERNMENT Baa
1964
1965
1967
1968
Exhibit B -- Part II
Date
State and
local govt.
Baa 3/
Corporate
Baa 1/
(per cent)
1959-60 - High
Year end- 1965
1966 -r High
Low
1967 - High
Low
5.36(2/12/60)
5.04
6.18(12/30)
5.05(1/14)
6.97(1/29)
5.81(4/14)
6.79
1968 - Aug. 30
Sept. 6
6.79
6.80
13
20
6.79
6.79
27j>/
Note: For footnotes see Exhibit A.
£/ Preliminary.
Spread between
Aaa and Baa
State and
Corporate
local aovt.
4.46(1/7/60)
3.79 .
4.55(8/25)
3.78(1/20)
4.73(12/28)
3.85(4/13)
.84
.31
.81
.31
.82
.63
1.08
.39
.62
.31
.81
.37
4.80
4.80
4.80
4.78
4.75
.82
.84
.85
.82
.79
.55
.55
.55
.57
.55
S H O R T - A N D INTERMEDIATE-TERM INTEREST RATES
GOVERNMENT
6 - M O N T H BILLS
3 - 5 YEAR ISSUES
F.R. DISCOUNT RATE
3-MONTH B I L L S
Market Yields
1964
1965
1966
1967
1968
Exhibit C -- Part II
Discount
rate
1/
1959-60 " High
Year end - 1965
1966
1966 - High
Low
1967 - High
Low
4.00
4.50
4.50
4.50
4.50
4.50
4.00
3-month
bills U
4.59(1/8/60)
4.47
4.80
5.52(9/23)
4.39(6/24)
4.99(12/29)
3.41(6/9)
Yields
6-month
bills !]
(per cent)
5.07(1/8/60)
4.66
4.92
5.92(9/23)
4,53(6/24)
5.50(12/12)
3.74(6/2)
3-5 year
issuesj/
Spread between yields on
3-mo. bills and yields on
6-mo. billsI3^5 vr. issues
5.00(12/24/59)
4.90
4.86
5.83(9/2)
4.80(4/8)
5;80(11/10)
4.36(4/7)
.79
.19
.12
.52
.09
.62
.01
1.81
.43
.06
.78
.01
1.61
.02
.08
5.33
5.26
5.18
1968 - Aug. 30
5.25
.01
5.30
5.22
5.21
5.25
Sept. 6
.03
5.36
5.31
5.28
5.25
13
.07
5.27
5.25
5.18
5.25
20
.11
53.
.28
Z7p/
5. 25
5.13
ZQ
—
^
5.13
5.25
5,24
1/ Weekly rate shown is that in effect at end of period at the Federal Reserve Bank of
New York.
2/ 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 may be on different dates for
different series. For spreads, high refers to widest, and low to narrowest.
j>/
Preliminary.
.15
.09
.08
.09
.15
EXHIBIT
D. Port
1
S H O R T - A N D INTERMEDIATE-TERM INTEREST RATES,
B A N K S A N D OTHER PRIVATE BORROWERS
Weekly
PRIME RATE
FINANCE COMPANY PAPER
Directly
placed
F.R. DISCOUNT RATE
FEDERAL FUNDS
1963
1964
1965
1968
Exhibit D —
Date
Prime rate JL/
Part II
Finance
company
-paper 2/
Spread between
3-mo. bills and
Federal funds 3/ finance co. paper
(per cent)
^
1959-60 - High
Year end- 1964
1965
1966
1966 - Low
1967 - High
Low
5.00
4.50
5.00
6.00
5.00(3/4)
6.00(12/29)
5.50(12/1)
5.13(1/22/60)
4.06
4.75
5.88
4.75(1/7)
5.75(1/6)
4.38(6/23)
4.00(5/13/60)
4.00
i
4.63
5.63
3.55(1/21)
5.25(1/6)
3.40(10/27)
1968 - Aug; 30
Sept. 6
13
20
27 E f
6.50
6.50
6.50
6.50
6.25
5.63
5.63
5.63
5.63
5.50
5.93
5.94
5.70
5.60
5.90
1.02
.23
.28
1.08
. 20
1.33
.21
.45
.42
.35
.45
.37
charged by large banks on short-term loans to business borrowers of, the highest
credit standing.
2/ Average of daily rates published by finance companies for directly placed paper
for varying maturities in the 90-179 day range.
3/ Weekly average of daily effective rate, which is the rate for the heaviest
volume of purchase and sale transactions as reported to the Federal Reserve
Bank of New York.
Note.-Highs 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.
jj/ Preliminary.
EXHIBIT
E, Port I
STOCK MARKET
1941-43 q.verage= 10
100
PRICES
STOCK MARKET CREDIT
60
* CHANGE IN .SERIES
VOLUME
YIELDS
1 1 M i l 1 1 1 1 1l 1 1 1 1 1 1 II 1 1 1
1963
V
1964
f
,—S
i i i i i i i I ' l l i 1 i I.I i i i m i
1965
1966
i i
ill
r i 1.1 i I I i
1967
I t ! II 1 1 II II
1968
Exhibit E -- Part II
Date
Stock price
index 1/
Common
Trading
Stock market customer credit
stock
volume j*/
Customers'
Bank
yields 2/ (millions
Total
debit bal- loans to
(per cent)
of shares)
ances 4/
"others"5/
(In millions of dollars)
1961-62 - High
Low
1966 - High
Low
1967 - High
Low
72.04(12/8/61)
52.68(6/22/62)
93.77(2/11)
73.20(10/7)
97.26(10/67)
85.18(1/6)
2.82
3.96
3.01
3.97
3.01
3.58
10.1
2.4
10. 7
5.0
12.3
6.9
5,602(12/61)
4,424(1/61)
7,997
7,302
10,347(12/67)
7,345(1/6)
4,259(12/61)
3,253(1/61)
5,835
5,169
7,883(12/67)
5,280(1/67)
1,418(5/9/62)
1,161(3/8/61)
2,241(7/6)
2,097(12/14)
2,057(11/1)
2,055(1/25)
1968 - July
Aug.
LOO. 30
98.11
2.98
3.09
14.3
10. 9
11,270
n. a.
8,854
n. a.
2,424
n.a.
„
1968 - Sept,13 too. 86
3.02
12.8
n. a.
n. a.
2,497
r/2,519
20 101.66
2.97
14.8
n. a.
n.a.
2.98
14.9
n.a.
n.a.
n.a.
27r/1102.31
n.a. Not Available, p/ Preliminary, r/ Revised.
.
1/ Standard and Poor's composite index of 500 common stocks, 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 and Poor's composite stock yield based on Wednesday data converted to weekly closing
prices by Federal Reserve. Yields shown are for dates on which price index reached its high
or low.
3/ Averages of daily trading volume on the New York Stock Exchange. Year-end figures are averages
of daily figures for the year.
4/ End of month figures for member firms of the New York Stock Exchange which carry margin accounts;
excludes balances secured by U. S. 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 loans to
others. For further detail see Bulletin.
\Qg
EXHIBIT F, Port I
M O R T G A G E A N D B O N D YIELDS
;
I
i
I
I
-
-l 7
lyW,
H O M E MORTGAGES:
Cpnvenlionol
Aaa CORPORATE BONDS:
I
1"
,959
1960
1961
1962
1963
1964
1965
1966
1967
1968
j
Exhibit F
FHA
morteajzes —/
Conventional
mort25-year 30-year gages 3/
1957 - High
1958 - Low
1959-60 - High
• 1961-66 - Low
1966 - High
1967 - High
Low
5.63
5.35
6.24
5.43
6.73
--
—
—
.
5.44
6.81
6.81
6.29
Part II
Spread between yields
on conv. &
FHA mort-^y
gages
-
6.00
5.55
6.30
5.80
6.70
6.65
6.40
.47
.15
.23
.25
.30
.11
-.12
1968 - Apr.
May .
June
July
Aaa Corporate
Bonds
6/
N e W ^ Seasoned
4.94
3.65
5.25
4.12
5.82
6.53
5.20
4.12
3.57
4.61
4.19
5.49
6.07
5.03
Spread between
yields.on new corporate bonds and
FHA mtgs. Seasoned
4/
bonds
1.58
.88
1.69
.77
1.11
1.26
.24
1.03
.05
.73
-.16
.46
.46
.17
n. a.
6.94
6.90
-.04
6.52
6.21
.42
.31
--n. a.
• —
7.15
6.66
6.27
.39
-.27
n.a.
7.52
7.25
6.65
6.28
• 87
.37
-.12
n. a.
7.42
7.30
6.54
6.24
.88
.30
-.05
n.a.
AUK.
7.35
.24
7.30
6.26
6.02
1,09
T 7 N e i t h e r mortgage nor bond yields take into account servicing costs which are much
higher for mortgages than bonds. Generally, bonds pay interest semi-annually;
mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual
interest investment, would be slightly higher than given in the table.
2/ Based on FHA-field-office opinions about average bid prices in the private secondary
market for new-home mortgages for immediate delivery. Separate data available for
25-year and—beginning July 1961—30-year mortgages with minimum downpayments,
weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgages.
Over the period for which they can be compared, the movement of the two mortgage
yield series has been similar. Dashed lines indicate periods of adjustment to
changes in contractual interest rates.
3/ Based on FHA-field-office opinion on typical interest rates (rounded) on conventional
first mortgages prevailing in the market areas of insuring office cities. Beginning
with April 1960, rate relates only to new-home mortgages; prior to that date, rate
related to both new as well as existing-home mortgages. Dashed line indicates this
change in the series.
4/ FHA mortgage yield data are for 25-year mortgages through June 1961; 30-year mortgages thereafter.
5/ See note for Exhibit G.
6/ Moody's Investor Service. Monthly averages of daily data. See Exhibit A.
n.a. - Not Available.
-64"
n
YIELDS O N NEW A N D SEASONED CORPORATE BONDS
Weekly
6.5
Adjusted to
Aao
Basil
NEW ISSUES
6.0
5.5
5.0
SEASONED Aaa
4.5
1964 :
1966
1967
1968
Exhibit G - II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number
of
Number |Am11. of issues Average
yield
of
included (mill.
(per cent)
issues I of dollars)
Ain't, of issues Average
included (mill.
yield
(per cent)
of dollars)
Monthly averages:
1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
13
13
10
7
11
13
7
8
567.0
564.0
350.0
415.0
531.0
872.0
552.0
267.0
6.24
6.29
6.56
6.52
6.66
6.65
6.54
6.26
Aug.
2
9
16
23
30
Sept. 6
13
20
27
a/
1
1
1
3
2
12.0
15.0
110.0
67.0
75.0
6.36
2
2
1
45.0
150.0
30.0
225.0
6.40
6.33
6.24
6.26
6.46
6.13
6.26
6.36
Weekly averages:
6.83(5/24/68)
High
6.13(8/16/68)
Low
Note: Averages of offering yields on all new issues of publicly offered corporate bonds rated Aaa,
Aa, and A by Moody's Investors Service (except serial and convertible issues, 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 by
deducting from the actual reoffering yield the excess of the weekly average yield for seasoned
bonds of the appropriate industry-quality group over the composite average for seasoned Aaarated bonds (Moody's). Averages considered unrepresentative because of special characteristics
of the offerings included are denoted by an asterisk.
£/ Preliminary.
p
Exhibit H
Long-term Corporate and State and Local Government
Security OfferInge and Placements
(In millions of dollars)
1966P/
New CaPital
Corporate
1967P/
1966
State and local 2/
1968p/
1966
1967p/
January
February
March
1,706
1,568
1,740
1,648
1,398
2,317
1,302
1,237
2,446
1,133
1,147
1,384
1,482
1,196
1,438
1,188
858
865
April
May
June
1,383
1,825
2,334
1,973
1,474 \
2,611
1,553
1,058
2,364
1,298
1,117
1,354
1,111
1,229
1,497
1,193
901
1,141
2,457
2,407
1,723
1,039
1,670
1,382
2/1,444
2/1,677
e/1,250
943
858
1,330
701
773
1,020
974
1,400
1,182
755
969
940
4,119
2,911
3,235
2,494
2,664
July
August
September .
£/2,121
e/1,500
e/1,725
2,289
1,467
October
November
December
1st
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
1st half
Three quarters
Year
2,336
5,014
5,544
e/5,346
10,558
e/15,904
5,364
6,058.
6,584
6,092
11,421
18,007
24,098
'
829
1,085
1,635
4,985
4,975
4,091
3,550
9,959
14,050
17,601
3,665
3,769
e/4,371
3,837
3,131
3,556
e/7,434
S i , 805
7,956
11,087
14,643
6,146
8,640 1
11,304
Excluding finance companies 3/
1st
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
Year
ef
£/
If
2/
3/
4,943
5,265
5,207
5,913
6,338
5,657
4,924
4,884
3,969
3,188
23,115
17,269
Estimated by Fedeiral Reserve.
Preliminary.
Securities anci 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.
Exhibit I
New Coroorate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
Net proceeds
for new capital 1;f
Gross proceeds for new capital
2/
Quarter
or
Month
Total
1967 - I
II
III
IV
5,464
6,208
6,833
6,294
3,263
4,017
4,604
3,107
1,811
1,465
1,551
2,137
390
726
678
1,051
60
65
234
93
2,442
3,014
2,792
2,527
997
1,268
1,219
1,255
543
548
595
269
1,382
1,228
1,976
2,040
1968 - I
II
5,178
5,705
2,465
3,105
1,724
1,644
989
956
313
172
1,855
1,653
1,394
1,201
411
529
1,356
2,159
1967 - Aug.
Sept.
Oct.
Nov.
Dec.
2,481
1,763
2,409
1,500
2,385
1,813
902
1,375
645
1,087
412
647
566
551
1,020
250
214
469
304
278
13
8
34
19
30
1,229
637
906
512
1,109
509
265
573
404
278
356
200
119
82
68
313
619
690
469
881
1,771
1968 - Jan.
1,607
Feb.
1,800
Mar.
1,428
Apr.
{1,867
May
2,418
June
July g/ 2,174
Aug. e/ 1,565
903
796
766
719
1,046
1,340
1,244
615
546
585
593
438
521
685
561
600
322
226
441
271
300
385
369
350
16
61
236
31
89
52
47
n. a.
537
556
761
353
550
750
839
600
417
546
431
178
549
474
236
365
186
147
78
189
103
237
236
70
566
321
469
663
622
874
810
465
Common Memo:
Bono s
Foreign
Publicly Privately and
pfd. issues
Offered Placed
stock
Mfg.
Other
Public CommuniUtility cations Issuers
p/. 'preliminary, e/ Estimated by Federal Reserve, n.a. Not available.
T/ Gross proceeds exceed net proceeds by the cost of flotation.
*2/ For total see Exhibit H; other issuers are extractive, railroad and other
"" • transportation, real estate and finance, and commercial and other.
SOURCE: Securities and Exchange Commission.
Exhibit J
Other Security Offerings
(In millions of dollars)
Gross Long-term 1/
Federal Agency 3/
Foreign Government 2/
"
"
196b
1967,
"1567"
1968
1968..
January
February
March
April
May
June
July
August
September
October
November
December
Jan. - July
127
49
107
75
142
100
607
Year
January
February
March
April;
May
June
July
August
September
October ;
November
December.
Jan. - July
223
27
13
170
22
586
193
66
142
18
651
12
40
40
66
69
76
72
7
50
23
74
68
375
1,656
597
196
999
550
1,370
225
744
779
800
5,467
1966
1,251
783
750
650
810
650
407
250
599
708
710
612
5,301
503
410
392
699
1,030
1,084
799
400
450
800
239
4,118
8,180
6,806
New short-term 4/
Federal Agency 3/
State and local Government 5/
398
-179
490
103
179
300
-24
-552
39
436
387
89
450
-454
-593
-319
-594
-604
718
-559
580
827
681
85
109
121
462
515
496
27
284
93
-334
-187
457
-590
-158
-103
- S ®
20
-262
-270
270
593
-652
1,407
-161
32
-555
606
-48
414
-283
573
503
49
219
36
-570
-514
1,231
1,700
1,619
428
1,147
439
Year
1,127
531
660
310
p/ Preliminary, e/ Estimated by Federal Reserve, n.a.—Not available, j./ 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: Securities and Exchange Commission.
3/ issues not guaranteed by U.S. government. Source: Long-term, Securities and Exchange
Commission; short-term, Treasury Dept. & Fed. Reserve. 4/ These data differ from t ose
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 wi
original maturity of one year or less. 5/ Principally tax and bond anticipation notes,
warrants, or certificates and Public Housing Auth. notes. In some instances PHA notes
included mav have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal
Reserve,
"-• '
H.14
Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)
Total
! -1967 - July
1
Aug.
Sept.
;
Oct.
f
Nov.
Dec.
1968 - Jan.
f
Feb.
!
Mar.
Apr.
May
June
July
Aug.
1,340
1,705
794
1,458
826
978
904
757
788
696
1,009
1,461
1,243
665
Corooriite
Bonds
(other than
Convertible
convertibles)
bonds
890
1,288
473
897
461
460
652
575
415
500
656
1,161
650
405
State
and
local
governments '
Stocks
133
67
65
276
215
81
85
77
238
73
70
180
98
117
317
350
257
285
150
437
168
105
135
723
283
120
495
143
483
473
847
. 505
865
633
785
591
736
794
571
758
864
1,165
Other
2/
85
221
400
50
845
627
1,095
389
1,030
370
145
500
920
70
.
Large Individual Issues Offered Sept. 3 through Sept. 27, 1968.
Issuer
Type 3/
Amount
(millions
of
dollars)
Maturity
Coupon
ra te or
Offernet inter- - ing
yield
est cost
Rating
Corporate
]ondec Corporation
Conv. sub. debs. 20.0
lichigan Consolidated Gas Co. 1st mtg. bds.
25.0
South Carolina Elec. & Gas 1st & ref. mtg.
bds.
20.0
Miles Laboratories
22.5
Com. stk.
15.0
Natomas
Com. stk.
Kane-Miller Corporation
Com. skt.
15.0
1st mtg. p.l.
Tenneco Inc.
60.0
bds.
1st mtg. bds.
Metropolitan Edison
31.0
Debs.
125.0
New England Tel. & Tel.
30.0
New York State Elec. & Gas 1st mtg. bds.
Gulf Life Holding
Com. stk.
23.2
sub.
debs.
16.0
Conv.
Dearborn Computer
Wisconsin Electric Power
Com. skt.
28.5
Computer Applications,. Inc. Conv. debs.
15.0
Harris Trust & Savings Bank Conv. cap. notes 25.0
Wilson & Company
Debs. w./wts.
25.0
Commonwealth Edison
1st mtg. bds.
75.0
1993
1993
5
7
5.00
6.80
B
A
1998
6-1/2
6.50
A
1988
1998
2008
1998
7
7
6-3/8
6-1/2
7.00
6.85
6.35
6.40
Baa
A
Aaa
Aa
1988
5-1/4
5.25
™-
1988
5-7/8
5.88
1988
1998
6 1/2
6-3/8
6.50
6.33
Ba
Aaa
K-2
Large Individual Issues Offered Sept. 3 through Sept. 27, 1968.(Cont'd)
Issuer
Type 3/
Amount
(millions
of
dollars)
Maturity
Coupon
rate or
Offering
net interyield
est cost
Rating
Corporate (Cont'd)
Allegheny Airlines
Detroit Edison
Conv. debs.
1st mtg. bds.
15.0
150.0
1993
1998
5-3/4
6.40
G. 0.
G. 0.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
20.0
12.5
100.0
10.0
30.0
20.3
25.0
10.0
10.5
1977-81
1970-83
1969-78
1970-2007
1970-93
1970-94
1982-84
1971-98
1970-83
4.30
4.06
3.83
4.56
4.89
4.23
4.20
4.28
3.90
5.75
6.42
B
Aa
State & locil Government
-Jacksonville, Florida
Portland, Oregon
State of Ohio
Columbus, Ohio
Philadelphia, Pennsylvania
Mecklenburg Co. , N. C.
State of Oregon
State of Oregon
State of South Carolina
Ardmore Development Authority, Oklahoma
Ardmore Development Authority, Oklahoma
Los Angeles, California
Alabama Highway Authority
Cleveland, Ohio
Solano Co., Calif., Jr.
College District
Beauregard Parish, La.
State of .Pennsylvania
Houston, Texas.
New Orleans, Louisiana
Southeastern Pa. Transportation Authority, Phila.
Kings Co., Washington
State of Hawaii
Fairfax Co., Virginia
Other
World Bank
Province of New Brunswick
F.N.I4.A.
4.00-4. 25
3.20-4. 20
3.00-3. 95
3.25-4. 70,,
3.50-5.oo=/
3.20-4. 25
4.10-4. 25
3.35-5. 50
3.15-3. 90
Aa
Aa
Aa
Aa
Baa-1
Aa
Aa
Aa
Aaa
59.0
1993
n. a.
5.50
Rev. -Rent.
G.O.
Rev. -S.T.
G.O.
14.0
25.2
25.0
22.0
1971-78
1969-1988
1969-1988
1970-1994
n. a.
4.15
4,66
4.55
4.40-5.00
3.05-4.30
3.20-4. 70
3.30-4. 70
G. 0.
Rev. -Rent.
G.O.
Rev.-Ut.
G.O.
12.6
19.1
88.5
25.0
20,0
1971-1988 4.52
1971-1993 5.70
1969-1998 4.15
1985-2000 4.76
1970-1993 4.54
3.50-4.60
4.60-5. 75
2.90-4.50
4.40-4. 85
3.30-4.85
A-l
A-l
A-l
Rev. -Rent.
G.O.
G.O.
G.O.
55.0
39.1
38.0
12.4
1972-2002 5.17
1970-2008 4.64
1971-88
4.17
4.60
1970-94
4.00-5. 12
3.20-4. 90
3,35-4. 35
3.40-5.20
Baa-1
A
A
Baa
Rev. -Rent.
Bonds
S.F. debs.
Debs.
1994
250.0
20.0 " xJ991
1973
250.0
6-3/8
6-7/8
6
6.44
7.05
6.00
—
Aa
A-l
A •
--
Aaa
A
K-3
FOOTNOTE!
* Rights offering.
1/ Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction
and Development issues and non-guaranteed issues by Federal Agencies.
3/ In the case of State and local Government Securities, G.O. denotes general
obligation; Rev.-Ut., revenue obligations secured only by income from
public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from
quasi-uti1ities; Rev.-S.T., revenue bonds secured by revenue from specific
taxes only; Rev.-Rent,, revenue bonds secured solely by lease payments.
1 <
.
l b
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 2/
local govt.
- July 31
Aug. 31
Sept.30
Oct. 31
Nov. 30
Dec. 31
- Jan. 31
Feb.- 29
Mar. 31
Apr. 30
May 31
June 30
July 31
1,261
694
534
1,357
826
968
. 531
873
758
1,103
1,193
1,068
619
512
783
768
505
865
633
449
683
494
695
485
597
1,071
——
100
65
50
845
402
60
130
15
45
500
75
70
Corporate
1,576
1,335
1,090
2,694
2,129
1,892
736
1,105
935
1,612
1,403
1,380
679
Subsequent to
date shown
State and
local govt.
Forthcoming Large Offerings as of September 27, 1968.
•
Type
Issuer '
Corporate
/Columbia Gas System
jChesapeake & Potomac Tel. Co. of
Maryland
Consolidated Edison of New York
Jersey Central Power & Light Co.
Wisconsin Public Service
Canal Electric
Northern Indiana Public Svc. Co.
Illinois Power Company
Carolina Power & Light
Fibreboard Corporation
Gulf State's Utilities Company
*Consumers Power
*Aiabama Power
Tesoro Petroleum
Southern Company
National Industries
Alexander's Dept. Stores
King Resources
Amount
(millions
of
dollars)
Debs.
40.0
Debs.
1st mtg. bds.
1st mtg. bds.
Pfd. stk.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Conv. debs.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Debs.
Debs.
Conv. sub. debs.
Com. stk.
Conv. sub. debs.
75.0
60.0
26.0
15.0
19.0
20.0
45.0
40.0
30.0
40.0
55.0
25.0
15.0
15.0
25.0
20.0
20.0
Approximate di
offering
October
Other 2/
150
159
126
260
875
502
75
265
125
60
515
110
85
575
903
889
743
1,684.
1,076
937
1,079
624
1,069
640
1,042
1,307
3
October
7
8
October
8
October
October
8
,October
9
October .9
October 14
October 15
October 15
October 17
October 22
October 29
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
L-2
Forthcoming Large Oggerings as of September 27, 1968 (Cont'd)
Issuer
Corporate (Cont'd)
Ceco Corporation
Transcontinental Gas Pipeline
Cleveland Elec. Illuminating Co.
General Tel. of Michigan
Belco Petroleum Corporation
Eastern Airlines
Eckerd Drugs
Pennzoil United
Type 3/
Amount
(millions
of
dollars)
Approximate date of
offering
Conv. debs.
Debs.
1st mtg. bds.
Debs.
Conv. debs.
Conv. sub. debs.
Conv. sub. debs.
Debs.
15.0
50.0
50.0
22.0
25.0
50.0
15.0
75.0
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
G.O,
G.O,
15.0
23.3
October
October
1
1
October
October
October
October
October
October
October
October
October
1
1
2
8
8
8
8
9
9
12.8
10.0
70.0
19.0
15.4
25.0
39.5
October
October
October
October
October
October
October
10
10
10
14
15
15
15
16.3
30.0
100.0
22.0
21.0
October
October
October
October
October
15
15
22
22
29
State & local Government
Detroit, Michigan
Genesee Co., Michigan
Los Angeles Flood Control Dist.,
California
Seattle, Washington
*State of Rhode Island
*Montebello, Calif., U.S.D.
*New York State Dormitory Auth.
State of Ohio
Washington Sub. Sani. Dist., Md.
State of Alaska
Maryland State Roads Comm.
Alachva Co. Special Tax Sch.
Dist. #1, Florida
San Diego, Claifornia
San Francisco B.A.R.T.
Pontiac Sch. Dist., Michigan
Hartford, Connecticut
Jackson Co., Missouri
Los Angeles U.S.D., California
*Penna. State Public Sch. Bldg.
Authority
San Diego Water Auth., Calif.
*State of California
*Cleveland Sch. Dist., Ohio
*Prince George's Co., Maryland
Pennsylvania State Highway &
Bridge Authority
*New Madrid, Missouri
*New Madrid, Missouri
Port of Astoria
Canton, Ohio
Tampa Hillsborough Co., Expressway Authority
Kentucky Turnpike Authority
Hillsborough Aviation Authority,
Tampa, Florida
Cobbfor
Co.,
Georgia
Digitized
FRASER
G.O,
G.O.
G.O.
G.O.
Rev. -Rent.
G.O.
G.O.
G.O.
Rev. -Q. -Ut.
Rev. -S.T.
Rev. -Ut.
G. 0.
G.O.
G.O.
G.O.
G.O.
Rev. -Rent.
Rev. -Ut.
G.O.
G.O.
G.O.
45.0 ;>
10.0
20.0
12.0
45.8
50.0 —
20.0
10.5
225.0
75.0
Rev. -Q.-Ut.
. * 85.0
Rev. -Rent.
100.0
Rev. -Rent. (elec.)
150.0
Rev. -Rent.
45.0
Rev. -Rent.
October
October
October
October
October
Rev. -Q.-Ut.
Rev. -Q.-Ut.
46.0
120.0
Indefinite
Indefinite
41.0
32.5
Indefinite
. Indefinite
Rev. -Rent
Rev. -Ut.
L-3
Forthcoming Large Offerings as of September 27, 1968. (Cont'd)
Issuer.
Type
Amount
(millions
of
dollars)
'
Other
*Etfport - Import Bank
*Province of Manitoba
Canadian Utilities, Ltd.
Approximate date of
offering
Debs.
Debs.
S.F. debs, w/wts.
400.0
50.0
15.0
-
October 2
October Z
Indefinite
*'--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.
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:
Sale Date
Amount
(millions
of
dollars)
Public Offerings
Issuer and Description of Issue
A.
Sold: May 1 through Sept. 27, 1968.
May
15
20.0
Montreal Catholic School Commission—7-1/2% S.F. debs,
maturing 1993, reoffered to yield 7.88%.
May
21
25.0
Newfoundland and Labrador Power Commission--7-3/4%
S.F. debentures, maturing 1993, reoffered to yield
8%.
May
28
100.0
July
10
75.0
Canada, Government of, 6-7/8% bonds maturing 1988,
reoffered to yield 6.90%.
July
23
20.1
Province of Ontario, 7-1/8% debentures maturing 1998,
reoffered to yield 7.19%.
Husky Oil Canada Ltd.
July
25
25.0
Province of Nova Scotia -- debentures.
Sept. 17
250.0
Sept. 19
20.0
International Bank for Reconstruction and Development,
6-3/8% bonds maturing 1994, reoffered to yield
6.44%.
Province of New Brunswick -- 6-7/8% S.F. debentures
maturing 1991, reoffered to yield 7.05%.
B.
^October 2,
Indefinite
50.0
15.0
Prospective Offerings
Province of Manitoba -- Debentures.
Canadian Utilities, Ltd., -- S.F. debs, with warrants.
* - Included in table for first time.
** - Issues sold to investors outside of U.S.
*** - Issue subject to interest equalization tax.
M-2
PART II:
Date Reported
6/68
Private Placements —
Amount
(millions
of
dollars)
Reported May 1 through Sept.27* 1968.
Issuer and Description of Issue
29.4
Seaboard Finance Co. of Canada, Ltd., Sr. notes
maturing 1983, take down at various dates
through 1969.
7/1/68
25.0
Argentina, Government of —
June, 1973.
7/1/68
1.4
British Columbia Forest Products, Ltd. —
secured notes.
20 year
7/1/68
.5
British Columbia Forest Products, Ltd. —
secured notes.
10 year
external bonds maturing
8/20/68
75.0
Bell Telephone Company of C a n a d a —
6.90% 1st mortgage bonds maturing 1998.
8/21768
40.0
Placer Development Ltd., Vancouver
9/9/68
2.0
Caribbean Finance Company (Puerto Rico) Senior
notes maturing July, 1983.
NOTE: 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 taken
down but only in the amount of takedown while the placements shown in this exhibit are
included when reported, frequently with little or no information concerning timing of
takedown. Full or partial takedown may take place both prior and subsequent to the date
a placement is reported.
@FedFRASER