Full text of H.16 Capital Market Developments : September 7, 1965
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Not for Publication
^CONTROLLED
AFTER SIX MONTHS
—H~L4
September 7, 1965.
,~r
; J
I
C A P I T A L MARKET DEVELOPMENTS
I
IN THE UNITED STATES
. ^ I n c l u d i n g Review of Changes in Investment Holdings of
vvr
I Selected Financial Intermediaries During the First
_J
Half of 1965 and Savings Flows in July)
Corporate and municipal bond markets.
Public security
financing by both corporations and State and local governments this
Labor Day shortened week will be little changed from last week's
moderate totals. A $40 million offering of Alabama Power Company bonds
will account for one-half of the corporate total, while nearly one-half
of the municipal total will be attributable to a $72 million issue of
New York State bonds.
Long-term Public Security Offerings 1/
(In millions of dollars)
Corporate
New Capital | Refunding
State and 1 oca ^ g o v e r n m e n t
New Capital | Refunding
Sold:
52 week avg.
Aug. 27
Sept. 3
107
67
70
2
r/
38
185
r/
15
118
128
Scheduled:
Sept. 10
80
155
1/ Federal Reserve estimates based on published reports of issues sold
and scheduled for offering; corporate rights offerings are included
as of the date subscription rights expire.
Yields in Securities Markets
Level latest week
(per cent)
High-Grade
Notes and Bonds
Corporate
New
Seasoned
4.69
4.51
U. S. Govt.
Long-term
3-5 year
4.22
4.
Change from
preceding week
(basis points)
-
2
+ 1
+ 1
H. 14
-2-
Yields in Securities Markets (Cont'd)
Level latest week
(per cent)
State and local Govt.
Moody's Aaa
Standard and Poor's
high grade
Money Market
Federal funds
Treasury bills
3-month
6-month
Change from
preceding week
(basis points)
3.18
+ 1
3.30
+3
4.05
- 7
3.87
4.00
+ 1
+ 4
Corporate Bonds Still in Syndicate
Date
Offered
8/24
9/1
Amount
(millions of $)
50.0
36.5
Issuer
Transcontinental Gas
P. L. Co.
4-7/8's - 1986
Georgia Pwr. Co.
4-7/8's - 1995
Reoffering
Yield
,
Rating
Estimated Pro
portion sold
4.95
Baa
7/10
4.78
A
3/10
Blue List of Municipal Dealers' Advertised Inventories
(Millions of dollars)
Latest Date
765(9/2)
End of Previous Week
789
Recent High
901(6/4)
Capital markets in August. During August corporations
publicly offered or privately placed securities with net proceeds of
$850 million to raise new capital, one-third more than the average for
the month over the two previous years.
Public offerings of bonds amounted
tq $380 million, appreciably below the unusually large volume in the
spring and early summer but the highest for any August since 1962.
With the calendar of public offerings building up for the
period after Labor Day and uncertainty over sterling continuing, yields
on new issues of corporate bonds have tended to rise.
Yields on public
offerings of new corporate bonds (Aaa basis), which had stabilized at a
level slightly below the early June peak, resumed their increase in
August and late in the month reached the highest level since the summer
of 1961.
For the week ending September 3, offering yields averaged 4.69-11 basis points higher than in late July and only 2 basis points below
the 1965 peaks of late August.
Because underwriters have been quick to
terminate price restrictions on slow moving issues, unsold syndicate
balances have been kept at a relatively low level.
<
H. 14
-3-
In the municipal bond market, August offerings for new capital
had a par value of about $650 million, one-sixth less than a year
earlier. Sales of refunding issues added about $50 million to this
total. With the new issues volume sharply lower than in recent months,
dealers succeeded in reducing their advertised inventories during the
first half of the month by nearly $50 million, to below $700 million.
After mid-month, however, demand for many new issues was only fair, and
dealers inventories again rose to around $800 million in early September.
Yields on seasoned Aaa-rated issues, which had eased slightly during
early August, rose to 3.18 per cent in early September, the high for the
year and 3 basis points more than in mid-August.
Common stock prices rose substantially in active trading during
August and early September.
Prices--as measured by Standard and Poor's
index of 500 s t o c k s — r o s e over 3 per cent to close at 88.06 on September
3, only 2-1/2 per cent under their all-time high in mid-May.
August
trading volume averaged 5.0 million shares a day.
Estimated security volume in September.
Corporate security
offerings for new capital are expected to total $1,250 million in
September, over one-tenth greater than a year ago.
Financing in this
volume will bring the total for the quarter to a record $3,200 million,
one-fourth more than in the comparable period last year and one-tenth
larger than the previous record third quarter volume of 1957.
Offerings of State and local government bonds for new
capital are estimated at $850 million this month, somewhat less than a
year earlier but nearly twice as large as in September 1963. This would
bring the total for July-September to $2,450 million, about 5 per cent
less than the record third quarter total for last year but appreciably
larger than in the third quarter of any other year.
Changes in investment holdings of selected financial intermediaries
during the first half of 1965.
Depositary-type savings institutions. During the first
half of this year, the combined growth in income-yielding claims on
depositary type savings institutions amounted to a record $16.4 billion,
up 8 per cent from the comparable 1964 period and 3 per cent larger than
the previous record first half gain in 1963.
The record expansion in
these flows this year was entirely attributable to the sharp rise in
time and savings deposits at commercial banks which followed the increase
in interest rates on such deposits announced by many banks at the start
of the year; these deposits rose a record $10.5 billion during the
period, 52 per cent more than in the similar period last year and onetenth more than the previous first half record set in 1962.
Gains in
savings capital at savings and loan associations ($4.2 billion),on the
other hand, were down nearly one-fourth from the first half of last
year, and deposits at mutual savings banks ($1.8 billion) also fell
below last year's levels.
Savings and loan associations adjusted their mortgage lending
activities in line with their reduced inflow of savings capital with
net acquisitions of mortgages ($4.5 billion) one-eight less than a year
H. 14
earlier. At the same time, cash holdings were reduced twice as much as in
the comparable 1964 period and associations found it necessary to
borrow nearly $0.3 billion from the Federal Home Loan Banks whereas they
had made minor net repayments in the first half last year.
The net increase in holdings of mortgages at mutual savings
banks in the first half was $1.9 billion, only about 6 per cent less
than in the similar 1964 period.
Holdings of casn and Governments
increased only one-third as much as last year, but the rise in net
acquisitions of businesses and miscellaneous securities ($0.1 billion)
were somewhat larger.
Life insurance companies. The net gain during January-June in
assets of life insurance companies--excluding valuation adjustments-totaled $3.9 billion, a record for the period and was one-seventh greater
than during the first half last year. Net mortgage acquisitions totaled
a record $2.2 billion, one-seventh more than the previous record first
half total of last year. Net acquisitions of business securities of all
types were a record $1.6 billion, one-sixth more than a year earlier.
This increase was largely the result of an $0.4 billion increase in
holdings of short-term commercial and finance company paper in contrast
to a moderate decline last year. Despite a record volume of acquisitions
of new long-term bonds, maturities of such securities have been rising
sharply recently, and the net increase in insurance company bond holdings
($0.8 billion) was one-fifth less than last year. The net reduction in
holdings of cash and U. S. Government securities combined ($0.5 billion)
was appreciably larger than in the first half last year.
Savings flows in July. During the month of July, expansion
in income-yielding claims on depositary-type savings institutions
totaled $1.4 billion, a record for that month and 15 per cent more than
in July 1964.
As in other recent months, all of the year-over-year gain
took place in time and savings deposits at commercial banks; there was
a sizable net outflow of savings capital at savings and loan associations
in contrast to a nominal inflow a year earlier and the gain in regular
deposits at mutual savings banks was smaller than last year's.
At savings and loan associations, July is normally a month of
heavy withdrawals, but new savings have usually been sufficient to
offset them. The July increase in withdrawals this year was less than
in other recent years, but the inflow of new savings showed much less
than the usual seasonal gain.
On a seasonally adjusted basis, July
showed an inflow that was less than the average for the first six months
of the year, but not so low as in April w h e n withdrawals for payment of
1964 income taxes were larger than usual.
Sources and Uses of Funds of Major Types of Savings Institutions
First Half 1957-1965
(In millions of dollars)
Uses of funds
U. S.
BusiState &
Year
Cash Govt.
ness
local
secur- securgovt.
1 ities ities
Life
2,205
-84
-238
1,575
' 1965 -217
1,942
-52
-98
1,338
1964 -186
1,410
-85
-425
1,304
;| 1963D -210
920
134
-179
144
1,241
1962
1,172
138
-60
-19
1,137
" 1961
1,323
156
-121
-288
862
,1 1960
793
315
-160
1,315
41
1959
790
163
-84
46
1,191
" 1958
1,190
59
-207
1,096
1 1957 -137
Savings and Loan Associations
•
J; 1965
i 1964
: 1963
1
1962
1961
1960
:
^ 1959
1958
1957
Total Memo:
Sources o
func
sources Total Excl. Net change
in deposits cr Bor- Other
Other
Valuation
assets
savings
Change ^
capital
ing.
Insurance Companies
--938
4,179
3,893
--3,857
3,513
913
--—
3,573
3,139
1,579
--—
2,561
2,923
301
—
3,422
3,041
1,054
--2,715
2,604
783
2,876
2,746
572
--—
669
2,775
2,625
2,571
2,486
570
-—
--
-315
-166
-68
61
278
75
-240
606
-60
262
243
640
197
396
113
577
156
347
—
--------
4,513
5,224
5,784
4,692
3,986
3,223
3,791
2,279
2,105
n.a.
n. a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1,859
1,964
2,019
1,497
1,069
884
841
987
721
-31
-31
-69
-95
15
-26
18
40
10
711
545
509
461
365
324
441
185
408
5,171
5,846
6,865
5,411
5,025
3,735
4,569
3,226
2,798
4,190
5,388
6,143
4,507
4,435
3,718
3,480
3,125
2,578
291
-31
-193
27
-168
-446
231
-344
-166
690
489
915
877
758
463
858
445
386
Mutual !Savings Bank
:
15
1965
-6
1964
1963V -66
1962
-54
-13
1961
11
1960
-118
1959
36
1958
-49
1957
29
161
82
136
53
-309
31
-164
-108
100
71
-87
29
82
81
-5
537
402
170
141
28
79
28
55
10
65
58
2,144
2,299
1,907
1,592
1,235
697
776
1,501
1,034
1,774
2,018
1,636
1,365
1,084
486
593
1,298
876
-----—
369
281
271
228
151
211
184
202
158
n.a.---Not available.
1 r/ Revised.
1/ Excludes changes in miscellaneous assets (one portion of the "other" in this table) which
includes most, but not a 11, valuation changes as well as changes in a few other items.
H. 14
-6-
Net Increase in Savings Capital at Savings and Loan
Associa tions
(In millions of dollars)
Unadjusted data
Current year
1965 - Apr.
MayJune
July
7 - month total
-93
792
1,603
-435
3,755
Change from
previous year
-414
-200
-162
-451
-1,649
Seasonally adjusted data
Current year
1965
Apr.
May
June
July
Percentage
change
-20
-10
• -31
Previous year
424
791
658
595
788
983
903
977
Although growth in regular deposits at mutual savings banks
in July was somewhat smaller than a year earlier, this is partly
attributable to the fact that last year several large New York City
mutuals were conducting intensive compaigns to attract funds received
from the Treasury's maturing "magic fives".
On a seasonally adjusted
basis, the July inflow was exceeded this year only in March, the only
month this year to show a larger gain than in the comparable month of
1964.
Net Change in Regular Deposits at Mutual Savings
Banks
(In millions of dollars)
Unadjusted data
Current year
1965 - Apr.
May
June
July
7 - month total
Change from
previous year
-22
188
436
212
1,896
Seasonally adjusted data
Current year
1965
Apr.
May
June
July
324
238235
369
Percentage
change
-109
-82
-42
-72
-322
-30
-9
-25
-15
Previous year
404
316
294
363
H. 14
-7-
Time and savings deposits at commercial banks increased $1.6
billion in July, a record for that month and three-fourths more than a
year earlier.
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.
EXHIBIT A. ran 1
L O N O - T I R M B O N D YIELDS, H I O H - O t A D I
Weekly
XV
Exhibit A —
Date
Part II
Corporate
Aaa 1/
u. S. Govt.
long-term 2/
4.61(1/29/60)
4.46 {9/15/61)
4.42 (1/9/60)
4.12 (2/»/«z)
4.19(3/29/63)
3.85 (12/28/62)
4.45(12/11)
4 . 2 0 (4/17)
State and
local
government
Aaa 3/
Spread between
U. S. GOTtt. and
State and
Corporate
Aaa
local Aaa
(per cent)
1959-60
1961-62
1962-63
1964
-
High
High
Low
High
1964 -High
Low
Aug.
6
Aug. 13
Aug. 20
Aug. 27
Sept. 3£/
4.35 ( % )
4.11 (1V20)
4.51 (9/3)
4.41 (3/12)
4.22,(9/3)
4.13 (6/25)
4.47
4.48
4.50
4.51
4.51 /
4.16
4.16
4.20
4.21
4.22
3.65(9/24/59)
3.37v/6/61)
2.88(11/8/62)
3.16(3/26)
2.99(12/31)
3.18 (9/2)
2.94 (2/11)
3.16
3.15
3.15
3.17
3.18 ^
.59
.57
.21
.33
.19
.34
.25
.31
.30
.30
.30
.29
.92
1.04
.80
1.14
1.01
1.22
.96
1.00
1.03
1.05
1.04
1.04
p/ Preliminary,
y Weekly average of dally figurese Average term of bonds included is 22-24 years.
2j Weekly average of daily figures. The series includes bonds due or callable in 10 years or more.
3/ Thursday figures. Only general obligation bonds are included) average term Is 20 years.
Note,—^Ughs 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.
LONG-TERM BOND Y l i l D S , LOWIK OKADI
- coirotAti
X
,y,
„
V\J
i it i i i 1i II II II 1 1 1 ll
1 l 1 II I l I 1
l 1
I 1 1 1 1 11 111111 1 1 1 1 1 1t 1I 11 1 1 1 1 1
Exhibit B -- Part II
State and
local govt.
Baa 3/
5.36 {2/12/60)
5.10
4.93
4.85
4.80
4.90 (9/3)
4.78 (3/19)
4.46 (1/7/60)
4.04
3.57
3.60
3.51
3.57 (7/8)
3.40 (2/11)
.84
.66
.70
.48
.37
;u
•35
1.08
.73
.63
.49
.52
.52
.38
3.55
3.55
3.55
3.56
3.56
.41
.39
.39
.36
.39
.39
.40
.40
.39
.38
(per cent)
1959-60 - High
Year end - 1961
1962
1963
1964
1965 - High
Low
Aug.
6
Aug. 13
Aug. 20
Aug. 27
Sept . 3B/
Note*
4.88
4.87
4.89
4.89
4.90
For footnotes see e x h i b i t A.
Spread between
Aaa and Baa
State and
Corporate
local govt
Corporate
Baa 1/
EXHIBIT C. P a r t I
SHOUT-
AND
INT11M1DIAT1-TI8M
IN
GOVERNMENT
Weekly
1 VX/|V-U
LJ
w
1
I
^
V
f.
V
1
J
D I S C O U N T • ATI
N „ Verk
\
l»*l
rate
1/
If *3
C
—
Part
If *4
Spread
3-month
6-month
3-5
bills
bills
(per
issues
2/
2/
cent)
If 4S
II
year
2/
between yields
month
bills
and
vields
6-mo.
b i l l s 13-5 vr.
4.00
4.59 (V9/60)
5 . 0 7 (1/8/60)
5.00(12/24/59)
.79
1.81
- 1961
3.00
2.66
2.90
3.81
.24
1.15
1962
3.00
2.89
2.93
3.41
.04
1963
3.50
3.52
3.64
4.07
- High
1964
1965
1 1 1 II 1 1 1 1 1I 111 1 l.l.L.LAO-k
1i 1M 1 1 1 1 1 1 1 1
Yields
Discount
end
T P "
19*2
Exhibit
1959-60
^
*
1 . M O N T H Sllll
1 1 1 1 1 1 1II 11 11 11.111 ,II
Year
i
1
| I | I I 1 1 |
19*0
. M O N T H Sllll
Mwkei T M *
- High
Low
Aug.
6
Aug.
Aug.
13
20
Aug.
27
Sept.
3£/
4.00
4.00
3.83
3.99
4.07
3.93
(2/26) 4.04
(9/3)
.13
(6/25)
(1/22)
.03
3.78
(6/25) 3.82
4.00
3.84
3.94
4.16
3.83
3.93
4.17
4.00
3.93
3.96
4.00
4.20
4.21
H.22
.52
.38
4.22
4.04
.10
.10
.11
.10
.13
.11
.32
.34
.38
.35
.35
Weekly rate shown is that in effect at end of period at the Fedexml Reserve Bank of N e w Y o r k ,
Market yield; weekly averages computed from daily closing bid prioee. Series of 3 - 5 y e a r issues
consists of selected notes and bonds.
N o t e * — S i g h s and lows are f o r individual series a n d m a y be on different dates for different series.
T o r spreads, high refers t o w i d e s t , and low to narrowest.
3-
on
issues
.55
.24
(2/26)
4.00
3.82
4.00
3.86
4.00
4.00 y 3 . 8 7
.13
.10
on
EXHIBIT D, Pen I
S H O R T - A N D I N T E R M E D I A T E - TERM I N T E R E S T R A T E S ,
B A N K S A N D OTHER PRIVATE B O R R O W E R S
\
MIMI: HATE
1/
r-.! yVVVMfV^
J
|"
FINANCE COIAPANY PAPE
-r»
f.t. DISCOUNT tATE
1
a
ijAff
!i Y
V
'
M
A
I960
1
X
li
A
1
| -yl
1961
1962
196$
1*64
1t45
E x h i b i t D -- Part II
Prime rate
!_/
Finance
company
Federal funds 3/
paper
2/
(per c e n t )
Spread b e t w e e n
3 - m o . bills and
finance co. paper
1.02
.34
.30
.36
.23
1959-60 - High
Y e a r end - 1961
1962
1963
1964
5.00
4.50
4.50
4.50
4.50
5.13
3.00
3.19
3.88
4.06
4 . 0 0 (5/13/60)
2.88
3.00
3.50
4.00
1965 - High
Low
4.50
4.50
4.25 (9/3)
4.00 (2/12)
4.12(8/27)
3.68 (1/22)
.47
.10
4.50
4.50
4.50
4.50
4.50
4.25
4.25
4.25
4.25
4.10
4.12
4.12
4.12
4.05
.41
.42
.43
.39
.38
Aug.
6
Aug.
13
Aug.
20
Aug.
2?
Sept.
3b
4.25
(3/23/60)
V Weekly rate shown is that in effect at end of period. Prime rate is that charged by large banks
on short-term loans to business borrowers of the b l u e s t 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*—flighs 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.
STOCK
MARKET
1*41-41
Exhibit E
Common
Stock price
Date
i n d e x \J
atock
y i e l d s 2/
(oer
cent)
Pert
II
Trading
S t o c k marlket c u s t o m e r c r e d i t
volume 2/
(milliona
Total
Customers'
debit balances
96 *h*ree)
4/
Bank
l o a n a to
" o t h e r a " 5/
(In millions of d o l l s r s )
1961-62
- High
72.04(12/8/61)
2.80
52.68(6/22/62)
3.96
10.1
2.4
5,602(12/61)
4 , 2 5 9 (12/61)
1,418(5/9/62)
4,424(3/61)
3 , 2 5 3 (3/6I)
1,161(3/8/61)
Y e a r end
1963
74.44
3.13
4.7
7,242
5,515
1964
84.75
3.02
4.7
7.053
5.099
1,727
1.974
1965
- High
Low
July
2.89
6.8
7,085
5,129
1,988
(A/25)
3.15
3.8
6,872
4,986
1,848
(3/3)
6,#3
4,863
n.a.
1,988
84.91
Aug.
Aug.
20
Aug.
27
Sept.
90.10(5/14)
83.06(6/25)
3.09
4.1
86.49
3.06
5.0
86.69
3.05
5.0
n.a.
37.20
1,961
.3.0k
5.4
n.a.
1,988
n . a .
88.06
3.01
n,at
1,970
n . a . — N o t available, e / Preliminary,
1/ Standard and Poor's oomposite index of 500 eommon stocks, weekly closing prices, 1941-43-10.
Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are far
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 shewn are for dates on which price index reached its high
3/ Averages of daily trading volume on the New York Stock Exchange* Yeax^end figures are averages of
daily figures for the year*
A/ End of month figures for man be r firms of the New York Stock Exchange whl<fc 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.
M O R T G A G E AND BOND YIELDS
HOME MORTGAGES:
Aaa C O R P O R A T E B O N D S :
1959
1958
1957
1960
1961
Conventional
mortgages
25-vear 30-vear 3/
FHA
mortgages 2 /
Date
1956 1957 1958 1959-601961-65
Low
High
Low
High
High
Tow
1965 - May
June
July
Aug*
4.68
5.63
5.35
6.24
5.72
5.43
5.70
5.44
5.43
5.43
5.43
5.45
5.44
5.44
--
1962
1964
1965
1966
Spread between
Aaa Corporate
Spread beyields on new corBonds
tween yields
porate bonds and
on conv. &
„e*4/ Seasoned—^ 25-year
Seasoned
25-year FHA
FHA mtes.
mortgages
.47
.47
.15
.23
.38
.23
5.20
6.00
5.55
6.30
5.95
5.80
5.80
5.80
5.80
n.a.
1963
.37
.37
.37
3.08
4.12
3.57
4.61
4.49
4.22
3.08
4.94
3.65
5.25
4.72
4.12
4.51
4.58
4.61
4.63
4.44
4.46
4.48
4.49
.76
1.58
.88
1.69
1.50
.82
.92
.85
.82
1.03
.05
.73
' .39
-.16
.07
.12
.13
.14
EHSaMKBHWRIIffiL
line indicates this change in the series.
Digitized forDashed
FRASER
Moody*i»einvestoriSerrio«« Monthly averages of daily
data. See Exhibit A.
EXHIBIT O , F o r i 1
YIELDS O N NEW A N D S E A S O N E D C O R P O R A T E B O N D S
E x h i b i t C - P a r t IX
Y i e l d s o n N e w C o r p o r a t e Bond Issues A d j u s t e d to a n A a a b a s i s
N u m b e r A a r t o f Issues A v e r a g e
of
Included (mil.
yield
(per c e n t )
Issues
of dollars)
M o n t h l y averages:
1965 - J a n .
Feb.
Mar.
Apr.
May
July
Aug.
3
3
7
4
8
4
8
7
94.0
111:0
157.8
115.0
315.0
100.0
278.0
166.5
Weekly average
1965
- High
4.42
4.41
4.45
4.46
4.51
4.58
4.61
4.63
N u m b e r Ain't o f issues A v e r a g e
included (mil.
yield
of
(ner cent).
Issues o f d o l l a r s )
—
4
11
25
2
9
16
23
30
Aug.
6
13
20
4.71(8/27) <
27
4.33(1/29)
Sept. 3
.
2
35.0
4.60
2
65.0
4.58
3
3
2
121.0
102.0
55.0
3
1
80.0
17.0
4.58
1
2
19.5
50.0
4.t7*
4.71
2
43.5
4.69
4.67*
4.3*
4.58
4.64
Notes A r e rage a of offering yields on all new Issues of publicly offered oorporate bonds rated As*. Aa and
A by Moody's Investors Serrioe (except serial and convertible Issues, offerings of natural gas pipeline
and foreign oonqpanles, and bonds guaranteed by the Federal Government) weighted by A a e of offering.
Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual
reoffaring yield the excess of the weekly average yield for seasoned tends of the appropriate industryquality group over the composite average for seasoned Aaa-rated bonds (Moody's)* Averages considered
unrepresentative because of special characteristics of the 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 Cap ital
1965
January
February
March
April
May
June
2/803
2/872
,2/946
947
776
810
732
746
976
1,152
1,691
1,946
2,178
1,069
1,378
930
904
1,013
g/824
2/921
2/943
1,242
667
903
869
866
930
e/1,100
780
661
1A09
676
637
795
e/950
e/650
e/850
906
780
892
680
708
449
949
2 / ' % 621
2/^2,688;
e/ 2 , 4 5 0
801
529
948
1,051
729
416
2 / 5,310
1,419
1,013
819
1,415
2,738
4,789
e/ 3,200
2,369
4,625
2,550
3,013
2,3)1
2,847
2,109
3,246
7,527
6,994
9,544
12,557
5,198
7,307
10,553
646
1st h a l f
T h r e e quarters
Year
State and Local 2/
1963
1964
613
594
1,144
t j 850
e/1,250
quarter
quarter
quarter
quarter
1965
930
685
754
October
November
December
1st
2nd
3rd
4th
1963
795
746
1,197
,
July
August
September
Corporate
1964
e/lC>,727
2,533'
2,811_
2,578
:2,278
2,454
2,665
1,837
2,197
5,345
7,923
10,201
5,118
6,955
9,151
Excluding finance companies 3/
1st
2nd
3rd
4th
Year
e/
£/
1/
2/
3/
quarter
quarter
quarter
quarter
2,547
e/4,389
e/2,950
j
1,996
4,170
2,411
2,755
2,284
2,529
1,768
2,854
11,332
9,434
Estimated b y Federal Reserve.
Preliminary.
Securities and E x c h a n g e Commission estimates of net proceeds.
Investment Bankers A s s o c i a t i o n 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)
1962 - IV
Gross proceeds for new
capital and refunding 1/
Bond
Common Memo:
Total
Publicly
Privately
and
Foreign
Offered
Offered
Pfd. issues
Inel lided
2,875
1,088
1,510
277
135
1963 - I
II
III
IV
2,700
3,634
2,436
3,466
1,108
1,389
1964 - I
II
III
IV
Quarter
or
Month
Mfg. Public Communi- Other
Utility cations issuers
747
552
317
945
947
591
806
968
236
898
1,319
128
434
109
47
326
424
287
367
794
285
530
221
150
118
842
1 ,241
868
1 ,629
2,499
4,851
2,802
3,311
978
1,321
792
531
1,221
1,640
1,516
2,372
300
1,890
494
408
29
105
85
223
418
723
547
1.,045
438
856
642
509
273
1,663
59
128
1 ,240
1,,383
ls,303
1,,332
3,007
5,043
906
1,864
1,673
2,259
429
920
243
1 ,072
215
1 ,679
541
609
91
255
1, 034
2, 246
121
88
91
1,372
148
370
225
112
156
213
52
143
5
16
8
34
36
35
21
21
44
82
27
114
149
123
146
186
206
332
149
164
234
249
188
607
109
155
174
151
441
264
207
138
296
297
40
172
157
83
34
1,377
27
258
23
16
19
81
17
30
131
155
143
162
449
309
90
49
51
143
33
49
385 ' 97
192
215
494
229
176
54»
:
1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
. 985
710
805
2,234
1,155
1,461
869
728
1,204
1,032
702
1,577
338
279
361
383
470
468
234
183
376
181
30
320
526
342
353
480
537
623
411
433
672
638
620
1,114
858
791
1,358
1,233
1,773
2,038
1,130
161
187
557
422
694
748
540
565
450
658
Mar.
Apr.
May
June
July e/
Aug.
2/
1,306
1,820
1,251
1,780
1965 - I
II
in
1965 - Jan.
Net proceeds for
new can Ltal 1/
648
630
980
500
287
134
n.a.
698
441
330
248
184
340
515
324
400
463
395
525
401
342 .
560
321
401
610
21
44
26
15
292
295
448
143
98
70
602
1,223
360
422
j>/ Preliminary,
e/ Estimated by Federal Reserve.
1/ Gross proceeds exceed net proceeds by the cost of flotation.
2/ For total see Exhibit H; other issuers are extractive, railroad & other transportation,
real estate & finance, & commercial & other.
Source: Securities & Exchange Commission
Exhibit J
Other Security Offerings
(In millions of dollars)
Gross Long-term \t
Foreign government 2/
1964
1963
1Q6S
January
February
March
April
May
June
July
August
September
October
November
December
91
e/ 20
Jan. - July
@/44e
218
232
133
76
57
114
11
63
83
4
82
69
30
75
26
20
13
7
180
72
58
--
38
73
—-
Year
Jan.-July
91
2/
-458
647
204
-82
3
--
--
186
——
--
--
775
e/ --
275
260
160
459
—-
——
——
--
174
--
——
200
2
--
--
306
686
636
771
Rhn
e/1,414
535
1,204
793
1,167
•f-t-erm 4/
Federal agencv 3/
103
236
-407
442
81
-80
-9
127
176
7
-15
-208
643
148
--
509
Npxj
238
——
129
185
325
--
<3<-n 1-e
January
February
March
April
May
June
July
August
September
October
November
December
Federal aeencv 3/
1963
1964
366
75
272
-367
589
-30
-10
62
208
-173
259
146
-339
-137
-174
117
-11
509
237
e/120
591
661
-308
-336
23
97
183
239
-333
167
1
525
113
-3
-435
-332
-255
-161
202
195
319
415
326
258
123
-102
551
383
Year
453
692
36fl .
2./ Preliminary, e/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: Securities & Exchange Commission.
3/ Issues not guaranteed by the U.S. Government. Source: Long-term, Securities & Exchange
Commission; short-term, Treasury Dept. & Federal Reserve. 4/These data differ from
those in Exhibit H and above in that they represent new offerings less retirements,
t whether*-from the •proceeds or refunding issues or from other funds. Data include only
issues with original, maturity o f one1 .year or less. "5/ Principally tax and bond
anticipation notes'warrants, or certificates "and Public Housing Auth. , •,
n C
f y l a r * n s o m e instances PHA notes included may have a somewhat longer maturity than
Source:
Bond and Buyer & Federal Reserve.
V?
H. 14
Exhibit K
Large Lotlg-term Public Security Issues for New Capital
(Other than U. 8. Treasury) .1/
Proceeds of Large Issues Offered
(In millions of dollars)
•
-
Corooriite
Bonds
Convertible
(other than
bonds
convertibles)
Total
| 1964 - Aug.
i
Sept.
[
Oct.
;
Nov .
j
Dec.
• 1965 - Jan.
:
Feb.
1
Mar.
Apr.
;
May
June
July
i
Aug.
Stocks
142
376
187
215
269 .
108
17
25
--
--
--
230
139
217
513
307
928
801
477
299
200
115
131
233
210
560
343
455
211
30
--
--
15
86
--
--
315
138
• --
26
Other
2/
104
15
502
15
459
558
419
226
541
419
446
395
411
492
377
655
312
--
81
79
--
280
97
53
320
22
62
State
and
local
governments
235
130
19
260
40
340
20
50
Large Individual Issues Offered Aug. 1 through Sept. 3
)
—
Issuer
C0VP9KHS
Southern Counties Gas Co.
General Mills Inc.
Beaunit Corp.
Orange & Rockland Util.
Corp.
r ^Northern States Pwr. Co.
Southern Calif.- Ed. Co.
! National Fuel Gas Co.
Magnavox Co.
Lone Star Gas Co.
Transcontinental Gas
P. L. Co.
Georgia Pwr. Co.
•
Type 1/
Amount
(millions
of
dollars)
•
Maturity
Coupon
rate or
net interest cost
Offering
vield
Rating
1st mtg. bds.
40.0
35.0
S. F. deb.
Conv. sub. deb. 25.0
1990
1990
1990
4-3/4
4-5/8
4-1/4
4.70
4.63
4.25
A
A
1st mtg. bds.
Com. stk.
Conv. deb.
S. F. deb.
S. F. deb.
S. F. deb.
1995
4-7/8
4.73
A
. 1980
1990
1986
1990
3-1/8
4-3/4
4-3/4
4-7/8
2.89
4.70
4.75
4.80
A
Aa
A
A
1986
1995
4-7/8
4-7/8
4.95
4.78
Baa
A
17.0
25.5
37.1 4/
19.5
20.0
30.0
1st mtg. p . 1.bds50.0
1st mtg. bds.
36.5
K-2
Large Individual Issues Offered August 1 through September 3 (Cont'd)
Issuer
Type 3/
Amount
(millions
of
dollars)
Maturity
OfferCoupon
rate or
ing
net inter- Yield
est cost
Rating
State and Local Government
Ala„ Pub. Sch. & College
Auth.
Pittsburgh, Pa.
Newark, N.J.
San Francisco, Calif.
Public Housing Auth.
Hamilton Co., Ohio
Tarrant Co. Wtr. & Imp.
Dist. #1, Texas
Suffolk Co. Wtr. Auth., N.Y.
Madison, Wisconsin
San Antonio, Texas
State of Washington
New York State Dorm. Auth.
State of North Carolina
Rev.-Rent.
G.O.
G.O.
G.O.
Bonds
G.O.
25,.0
10,.0
12,.0
12,.7
132,.0
30.,0
1966-85
1966-85
1966-85
1966-85
1966-2006
1966-85
3..36
3.,11
n. a.
2.,97
3.,22
2.50-3,.40
2.40-3,.15
2.40-3,.20
2.35-3,.10
2.30-3,,40
2.35 3..10
Ad
A
A
Aa
Aaa
Aaa
Rev.-Ut.
Rev.-Ut.
G.O.
G.O.
G.O.
Rev.-Rent.
G.O.
11. 6
15. 0
11. 7
15. 0
26. 0
21. 0
25. 0
1970-95
1966-2002
1966-75
1968-85
1966-85
1967-96
1966-82
3. 39
3. 46
2. 96
3. 21
3. 35
3. 61
3. 00
2.80-3. 45
2.45-3. 60
2.40-2. 95
2.70-3. 30
2.55-3. 405/
2.80-3.706/
2.35-2. 97
A
A
Aa
A
A
-Aaa
Bonds
50.0
1990
4-3/4
4.85
Aa
Other
Province
of Ontario
^--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.
27
Includes foreign government and International Bank for Reconstruction and Development
issues and non-guaranteed issues by Federal agencies.
3/
In the case of State and local government securities, G.O. denotes general obligations;
Rev.-Ut. revenue obligations secured only by income from public utilities; Rev.-Q.-Ut.,
revenue bonds secured only by revenue from quasi-utilities; Rev.-S.T., revenue bonds
secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely
by lease payments.
4/ An additional $37.9 million in bonds sold to refund outstanding securities.
5/
1/10 per cent bonds maturing 1985 reoffered to yield 4.15 per cent.
6/
1/10 per cent bonds maturing 1996 reoffered to yield 4.40 per cent.
u
H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treaaury) 1/
Expected Froceeda from Forthcoming Large Iaauea
(In milliona of dollara)
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
.
1
1964 - Aug. 31
Sept.30
Oct. 30
Nov. 30
Dec. 31
1965 - Jan. 29
Feb. 26
Mar. 31
Apr. 30
May
28
June 30
July 30
Aug. 31
Subaequent to
2
•5
During month following
date ahown
State and
Corporate
Other 1/
local govt.
State and
local govt.
Corporate
15
442
186
680
626
549
563
435
382
. 599
373
635
474
524
352
450
--
25
215
130
105
253
504
792
852
923
410
240
---
60
25
70
20
636
Other 2/
15
25
215
---
'
60
25
70
20
--
"
Forthcoming Large Offerings as of Sept. 3
laauer
Ctrnntt
Consolidated Nat. Gas Co.
Alabama Pwr. Co.
Tenn. Gas Trans. Co.
Penna Elec. Co.
Southern Bell Tel. & Tel. Co.
Pacific Power & Light Co.
^Household Finance Corp.
Indiana Bell Tel. Co.
Kansas City Power & Lt. Co.
Columbia Gas System
Jersey Central Power & Lt. Co.
West Penn. Power Co.
Macy Credit Corp.
Great Western Financial Corp.
General Tel Co. of Calif.
Type
Amount
(milliona
of
dollara)
Deb.
25.0
1st mtg. bds.
40.0
1st mtg. p. 1. bds. 60.0
Deb.
20.0
Deb.
100.0
1st mtg. bds.
30.0
Deb.
125.0
Deb.
25.0
1st mtg. bds.
15.0
Debs.
40.0
1st mtg. bds.
20.0
1st mtg. bds.
20.0
Deb.
25.0
Deb.
22.0
S. F. deb.
30.0
Approximate date of
offering
Sept. 9
Sept. 10
Sept. 14
Sept. 15
Sept. 16
Sept. 29
Sept.-Oct.
Oct.
5
Oct.
5
Oct.
7
Oct. 26
Nov. 23
Indefinite
Indefinite
Indefinite
L-2
Forthcoming Large Offerings as of Sept. 3 (Cont'd)
Issuer
Type
Amount
(millions
of
dollars)
Approximate date of
Offering
Stare and Local Government
Tulsa, Oklahoma
G.O.
State of New York
G.O.
Cuyahoga Co., Ohio
G.O.
State of Calif.
G.O.
*Penna. Gen. State Auth.
Rev.-Rent.
State of Ohio Highway Imp.
G.O.
Rev.-S.T.
Florida Dev. Comm.
State of New Hampshire
G.O.
Los Angeles Co. Flood Control Dist.Cal. Rev.-Q.-Ut.
El Paso, Texas
iRev. -Ut.
La. Capital Construction and Imp. Comm Rev.-S.T.
Nassau Co,, N,Y.
G.O.
13.1
70.0
13.0
105.0
50.0
50.0
19.5
26.1
40.0
10.5
25.0
30.0
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
*Met. Seattle, Wash.
Dade County, Fla.
Other
lu. u
46.0
Oct.
7
Indefinite
Rev.-Ut.
G.O.
8
9
9
14
15
16
16
17
21
22
22
30
NONE
*--Included in table for first time.
'
1/ Includes corporate and other issues of $15 million and over; State and local
government issues of $10 million and over.
3:
2/ Includes foreign government and International Bank for Reconstruction and Development^
issues and non-guaranteed issues of Federal Agencies.
I
N o t e - D e l e t i o n s for •mncn-.o nt-her t^an sale of issue: None
J;
H. lft
Exhibit M
F o r e i g n G o v e r n m e n t and C o r p o r a t e S e c u r i t y O f f e r i n g s
and P l a c e m e n t s in the U n i t e d S t a t e s
Part I:
Sale Date
Public Offerings
Amount
(milliohs
of
dollars)
I s s u e r and D e s c r i p t i o n of Issue
A.
Sold J u n e
1 through Septembv :
3
6/15 ;
50.0
Quebec Hydro-Electric Commission--4-5/8% debenture,
m a t u r i n g 1985, r e o f f e r e d to yield 4.75%*'
6/17
20.0
K i n g d o m of D e n m a r k - - 6 % b o n d s , m a t u r i n g 1985,
r e o f f e r e d to yield 6 . 0 9 % . * *
6/22
20.0
7/7
Metropolis of Tokyo--6% bonds, maturing
. r e o f f e r e d to yield 6 . 5 0 % . * *
20.0
C o m m o n w e a l t h of New Z e a l a n d - - 5 - 3 / 4 % b o n d s , m a t u r i n g
1985, r e o f f e r e d
3/24
50.0
to yield 5 . 9 7 % . * *
P r o v i n c e of O n t a r i o , C a n a d a - - 4 - 3 / 4 % d e b e n t u r e , m a t u r i n g
1990, reoffered to yivld 4 , 8 5 % .
B.
Prospective Offerings
NONE
*
**
1980,
Included in table
Issue sold Lv
for first time.
to i n v e s t o r s o u t s i d e U . S .
v
M-2
Part II:
Date
Reported
--
7/21
m
Amount
(millions
of
dotie r 8 )
Private Placement--Reported June I through September 3
' Issuer and Description of Issue
it
.
40.0
Trans-Canada Pipe Lines Ltd. --5-1/87. first mortgage
bonds, maturing 1985--no information available on
takedown.
8.0
Celanese Mexicana S. F.--7-1/4% sinkings fund bonds,
due 1 9 7 7 — n o information available on takedown.
*t$/3€
25.0
*8/30
XQ.O
Note:
H.14
Imperial Chemical Corporation Ltd.--6.82% notes, due
1971-85--no information available on takedown.
Dominion Rubber Company Ltd.--5-7/8% notes, due 1985no information available on takedown.
•,
For retrospective data on aggregate foreign Corporate and government security offer
ings 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 th<
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 when reported, frequently with little or no
information concerning timing of takedowns. Full or partial takedowns may take
place both prior and aubsequent to the data a placement is reported.
@FedFRASER