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DECONTROLLED AFTER SIX MONTHS
Publican
SEf-

11

September 9, 1968.

ib8
v'
CAPITAL MARKETS DEVELOPMENTS
IN THE UNITED. STATES

O F fir

^HMCND

Corporate and municipal bond markets. The
offered, corporate and municipal securities expected
below the average weekly volume over the past year.
market will be $125 million of New England Telephone
In the municipal market the largest offering will be
$32.5 million of general obligations.
•

( f t t y u j f a j

f h a A A c t '

volume of new, publiclythis week is only slightly
Dominating the corporate
and Telegraph debentures.
Cobb County, Georgia's

Long-term Public Security Offerings —^
(In millions of dollars)
Corporate
New Capital | Refunding

State and local Government
New Capital | Refunding

Sold:
52 week avg.
August

294
r/190

30

1
—

279

6

100

200

September 13

275

244

September

1

r/277
—

Scheduled:
—

issues sold and scheduled for offering; corporate rights offerings
are included as of date subscription rights expire.
Although the lagging seasoned corporate bond yield series declined,
last week) yields on new issues advanced. New issues, however, received a
mixed reception. The rising yields brought forth a series of syndicate terminations. The unsold portions of four issues offered only one or two weeks
earlier were released from syndicate and in free market trading the yields
on these issues advanced 8 to 15 basis points.
Yields on municipals advanced last week, but new issue receptions
remained generally poor. Only very liberally pricech issues, such as $100
million State of Ohio offering, were received with any enthusiasm. At the close
Friday, about 61 per cent of the week's total offerings had been sold. The
Blue List of dealer advertised inventories remained high.
FNMA "auction" and related secondary market operations. After
changing little through mid-August, implicit yields in the Federal National
Mortgage Association's weekly forward commitment auction of Government underwritten
home loans available for future delivery to FNMA edged down in each of the three
weeks following the initial reduction in the Federal Reserve discount rate




H. 14
Yields on Security Markets
High-Grade
Notes and Bonds

Change from
preceding week

Corporate
New
Seasoned

6.40
5.95

U. S. Government
Long-term
3-5 year

5.07
5.30

State and local Gov't.
Moody's Aaa
Std. & Poor's high grade

4.25
4.48

Money Market
Federal funds
Treasury bills
3-month
6-month

5.94
5.21
5.22
Corporate Bonds Still in Syndicate

Date
Offered

Amount
(millions of $)

9/5

25.0,

Reoffering
Yield

Issuer

Michigan Consolidated Gas,
7's - 1993

Rating

Estimated proportion sold

6.80

30%

Blue List of Municipal Dealers' Advertised Inventories
Latest Week.
749.5(9/3/68)




End of Previous Week
794

1968 High
848(8/28/68)

H. 14

effective August 16. For 6-month commitments, which comprise the largest
share of the weekly auction, implicit yields slipped 10 basis points to
7.23 per cent from July 29 through September 3. This is the lowest rate
since the maximum ceiling on Government underwritten home mortgages was
raised to 6.75 per cent. Implied discounts edged lower to 4 points on
6-month commitments, the lowest since the new auction system began early in
May.
During the four auctions in August, FNMA, continued to reduce
the. size of the weekly auctions, and bids received during the last three
auctions held averaged less than $100 million — relatively low by previous
standards. The lower weekly bid volume may suggest that the private market is
beginning to absorb more Government-underwritten mortgages, and as a result
is relieving some of the pressure on FNMA.
Mortgage companies, as in the old fixed-price system prevailing
prior to this spring, have absorbed the largest portion of FNMA accepted
bids, according to data which have recently became available. During August,
the average proportion of the total dollar volume of accepted bids going to
mortgage companies ranged from 85 to 90 per cent. Banks (commercial and
savings) accounted for the second largest share of accepted bids (8 per cent),
Savings and Loan Associations and Life Insurance Companies made up the
remainder of the auction bidders.
Regionally, the Los Angeles and Chicago FNMA field market district
continue to dominate the auction system. Total bids by these two regions
accounted for more than one-half of the total dollar volume of all accepted
bids during each of the five auctions conducted since July 29.
Stock prices. Common stock prices advanced sharply last week in
rising trading volume. At the close Friday, Standard & Poor's index of 500
stocks stood at 101.20 up 2.34 from the previous Friday, and only 1.19 below
the all-time high reached July 11.
Trading volume averaged 11.4 million
shares a day.
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, Port 1

LONG-TERM BOND YIELDS, HIGH-GRADE

C O R P O R A T E Aaa

U.S. G O V E R N M E N T
Long-term

STATE A N D L O C A L G O V E R N M E N T Aaa
II M

M

I I

1963



Mill

1964

1965

1 I H

1966

1967

I I I I I I

1968

Exhibit A -- Fari n

Date

I

Corporate
| Aaa If

j
1959-60 - High
1966 - High
- Low
1967 - High
- Low

4.61(1/29/60)
5.52(9/9)
4.73(1/7)
6.24(12/29)
5.00(2/10)

State and
U.S. Govt. |
local
long-term 2/i government
Aaa 3/
(per cent)
4.42(1/8/60) 3.65(9/24/59)
4.04(8/25)
4o 87(9/2)
4=42(1/7)
3.39(1/13)
4.15(12/28)
5.49(11/17)
3.25(2/9)
4.37(2/3)

Spread between
U.S. Govt, and
State and
Corporate
local Aaa '
Aaa
.92(4/22/60)
.59(8/5/60)
1.19(2/11)
.84(12/30)
.77(9/2)
.14(2/18)
.92
1 .51
.74
.44

1.08
1.19
9
3.80
4.99
6.07
1.06
1.06
5.06
4.00
6.00
16
1.04
.89
5.09
4.05
23
5.98
.81
.91
5.06
5.97
4.25
30
,82
.88
4.25
5.07
Sept. 6p/ 5.95
£/ Preliminaryo
If Weekly average of daily figures. Average term of bonds included is 22-24 years.
~2f 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—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.
1968 - Aug.




EXHIBIT 6, Pari 1

L O N G - T E R M B O N D Y I E L D S , L O W E R GRADE
Weekly

C O R P O R A T E Baa

STATE A N D LOCAL G O V E R N M E N T Baa

-Moody's

—

_/

1963



1964

1965

1966

1967

1968

Exhibit B —

Part II

State and
local govt.
Baa 3/

Corporate
Baa 1/

(per cent)

Spread between
Aaa and Baa
State and
Corporate
local govt.

1959-60 - High
Year end- 1965
1966 - 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)

4.46(1/7/60)
3.79
4.55(8/25)
3.78(1/20)
4.73(12/28)
3.85(4/13)

.81

1968 - Aug.

6.83
6.82

4.68
4.70
4.70
4.80
4.80

.82
.82
.82

9
16
23
30
Sept. 6j>/

6.80
6.79
6.79

Note: For footnotes see Exhibit A.
£/ Preliminary.




.84
.31

.31

.82
.63

1.08
.39

.62
.31

.81
.37

.76

.88

.84

.70
.65
.55
.55

S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES
GOVERNMENT
Weekly

far cent

6 - M O N T H BILLS

3-5 YEAR ISSUES

F.R. DISCOUNT R A T E

3 - M O N T H BILLS

1963



1964

1965

1967

1968

Or-.

Exhibit C -- Part II

Discount 1
rate
• 3-month
1/
1 bills 2/
1959-60 - High
Year end - 1965
1966
1966 - High
Low
1967 - High
Low
9
16
23 I
30 I
Sept. 6j>/

1968 - Aug.

4.00
4.50
4.50
4.50
4.50
4.50
4.00
5.50
5.50
5.50
5.25
5.25

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).
4.96
5.11
5.15
5.18
5.21

Yields
6-month
bills 2/
(per cent)

1 3-5 year
| issues 2/

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)
5.16
5.29
5.24
5.26
5.22

Spread between yields on
3-mo. bills and vields on
6-mo. bills|3-5 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)
5.29
5.35
5.36
5.33
5.30

.62
; 01

1.81
.43
.06
.78
.01
1.61
.02

.20
.18
.09
.08
.01

.33
.24
.21
.15
.09

.79
.19
.12
.52
.09

1/ Weekly rate shlwn is that in effect at end of period at the Federal Reserve Bank of
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.
£/

Preliminary.




/

EXHIBIT

D. Port

1

S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES,
B A N K S A N D OTHER P R I V A T E B O R R O W E R S

PRIME RATE
FINANCE C O M P A N Y PAPER

F.R. DISCOUNT RATE

FEDERAL FUNDS

1963



1964

1965

1966

1967

1968

Exhibit D —

Prime rate 1/

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
1968 - Aug.

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
4.63
5.63
3.55(1/21)
5.25(1/6)
3.40(10/27)

6.50
6.50
6.50
6.50
6.50

5.75
5.75
5.75
5.63
5.63

6.13
6.13
5.95
5.93
5.94

5.00

4.50

5.00
6.00

1.02
.23

.28
1.08

.20

1.33
.21
.79
.64

.60
.45
.42

2/ Average S ofiaU; rates published by finance companies for directly placed paper

2./ Preliminary.




EXHIBIT E, Part 1

STOCK M A R K E T

14-3
914

Billions, of dollars

100

PRICES

STOCK M A R K E T CREDIT

60

* C H A N G E IN (SERIES
Millions of s k e r o i

VOLUME

YIELDS
1 !-! 1 1 1 1 1 1 1 !'i l l ! II 1 1 M l 1 l-i i i i I I ri i M . 1 I: r II 1 1 1 M l 1 I'l 1 I I M I N I
1964
1965
1966
1967



1! 1 1 1 I II II 1
1968

Exhibit E —

Date

Stock price
index 1/

Part II

Stock market customer credit
Trading
Bank
Customers'
volume 3/
stock
debit bal- loans to
Total
(millions
yields 2/
"others"5/
ances 4/
of shares^
(per cent)
(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(1/6)
83.18(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)

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.

98.69
23
98.86
30
Sept. 6£/ 101.20

3.09
3.08
3.01

11.4
9.6
11.4

n. a.
n. a.
n.a.

n. a.

2,473
r/2,486
n.a.

1968 - Aug.

4,259(12/61) 1,418(5/9/62)
3,253(1/61) 1,161(3/8/61)
5,835
2.241(7/6)
5,169
2,097(12/14)
7,883(12/67) 2,057(11/1)
5,280(1/67) 2,055(1/25)

n.a. Not Available. £/ Preliminary, r/ Revised.
__ n
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
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.
„
i
5/ Wednesday figures for weekly repotting 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.




EXHIBIT f. Port 1

FEDERAL N A T I O N A L MORTGAGE ASSOCIATION ^
SECONDARY. MARKET- OPERATIONS

400

OFFERINGS

300

200

/ PURCHASESV

1962




1964

1966

100

\\

1968

Exhibit F - Part TI
Date

Estimated offerings to FNMA
S tandby
Immediate
Total
purchase
commitment

Purchases
by
FNMA

Sales
by
FNMA

(In millions of dollars)

1967 • June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1968 - Jan.
Feb. ,
Mar.
Apr.
May
June

229.1
228.8
.3
232.8
232.6
.2
261.0
260.6
.4
168.2
167.9
.3
260.6
260.1
.5
324.7
. .6
324.1
209.4
206.6
2.8
212.6
212.0
.5
164.4
164.0
.4
212.9
212.2
.7
214.3
210.1
4.2
104.8
103.6
1.2
(See Exhibit F Part III)

26.9
81.2
198.3
192.4
215.1
186.9
200.1
274.9
245.2
188.9
185.7
176.7
r/172.8

6.0
.9
.8
.2
.3
.1
——

- — «•

--

*—Less than $50,000.
1/ Data represent unpaid principal balances of the mortgages involved, exclusive
of premiums, discounts, or other charges. Offerings are amounts of applications
received during the period from sellers proposing that FNMA execute purchasing
contracts. An immediate purchase contract covers existing mortgages which the
seller must deliver to FNMA within 45 days. A standby commitment contract relates to proposed mortgages on housing not yet under construction which the
seller must usually deliver within one year. Purchases include those under
both immediate purchases and standby commitment contracts. Data exclude FNMA
activity under Special Assistance and Management and Liquidating Programs.




Exhibit F - Part III
FNMA Weekly "Auction" Results
Amounts (In millions of dollars)
Accepted
Offered
1
690total
Total
Year
Month
Day

Yields
90-

6-

Day

Month

1
Year

173.4
168.8
176.8
206.8

40.3
49.9
49.5
51.6

19.7
15.6
10.5
6.1

18.3
27.4
28.3
35.5

2.4
6.9
10.7

7.11
7.39
7.49
7.54

7.12
7.38
7.47
7.54

7*07
7.33
7.40
7.49

231.8
179.7
145.3
135.4

60.7
74.6

7.7
14.4
15.1
15.9

40.0
44.8
49.8
50.4

13.1
15.4
15.3
14.1

7.63

7.69
7.62

7.65
7.71
7.69
7.60

7.59
7.64
7.63
7.55

89.0 16.3
88.5 11.2
9.6
80.4
8.6
65.8
70.6 7.1

60.5
65.9
57.3
47.4
53.7

12.2
11.3
13.5
9.8
9.2

7.51
7.42
7.36
7.33
7.32

7.48
7.40
7.35
7.32
7.33

7.47
7.37
7.32
7.31
7.33

9.8
9.8
10.3
7.5

49.7
43.4
37.4
37.0

6.8
7.0
7.0

6.6

7.31
7.29
7.27
7.25

7.32
7.31
7.27
7.24

7.31
7.29
7.25
7.23

51.7
5.7
(50.0)

37.6

8.3

7.26

7.23

7.21
7.21

148.0
.157.2
172.2
158.6
148.4
121.8
108.4
93.1
99.3
90.0

80.2
80.4

66.3
60.2
54.7
51.1

10.0

7.68

Note: Total accepted shown in parenthesis for most recent week indicates
FNMA*announced limit before the "auction" date.. Yields are gross to FNMA
and are based on successful bid prices after allowance for commitment fees
and initial stock purchase requirements and assuming a prepayment period of
15 years for 30-year mortgages. One-year commitments are for new homes only.
r/

Revised.




EXHIBIT G, Port I

YIELDS O N NEW A N D SEASONED CORPORATE B O N D S
Weekly

1964



6.5

A d j u i l e d to

Aaa

Baiit

N E W ISSUES

5.5

5.0

S E A S O N E D Aaa

4.5

4.0

1965

1966

1967

\
Exhibit G - II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis

Number
of

Number |Am't. of issues Average
yield
of
included (mill.
(per cent)
issues I of dollars)

Am't. of issues Average
yield
included (mill.
(per cent)
of dollars)

Monthly averages:
1968 - Jan.
Feb.
Mar.
Apr.
May .
June
July
Aug.

j.

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£

12.0
15.0
110.0
67.0
75.0

6.36

45.0

6.40

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.
j>/ Preliminary.




Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Capital
1968P/

Corporate
1967p/

1966

State and local
1967P/
1968p/

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
I,438

1,188
858
865

April
May
June

1,383
1,824
2,335

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
I,141

2,457
2,40.7
I,723

1,039
1,670
1,382

e/1,400
e/1,700
e/1,500

943
858
1,330

701
773
1,020

2,289
1,467
2,336

829
1,085
1,635

974
1,400
1,182

755
969
940

5,014
5,542
e/5,450

5,364
6,058
6,584
6,092

4,985
4,975
4,091
3,550

3,665
3,769
2/4,600

.4,119
3,837
3,131
3,556

2,911
3,235
2,494
2,664

10,556
e/16,456

II,421
18,007
24,098

9,959
14,050
17,601

7,434
.#2,034

7,956
II,087
14,643

6,146
8,640
II,304

4,943

5,207
5,913
6,338
5,657

4,924
4,884
3,969
3,188

23,115

17,269

July
August
September

e/2,225
e/1,500
e/1,725

October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

let half
Three quarters
Year

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

Year
e/

Estimated by Federal Reserve.

I




ElEeJEi^. —.

Exhibit I
New Cornorate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
Net proceeds
Gross proceeds for new capital
for new capital 1/ 2/
and refunding 1/
Bonu s
Common Memo:
Other
Publicly Privately and
Mfg. Public CommuniForeign
Placed
Utility cations Issuers
Offered
pfd. issues
stock included

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

1,613
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

903
796
766
719
1,046
1,340
1,260
615

546
585
593
438
521
685
600
600

322
226
441
r/271
r/300
r/385
450
350

537
556
761
353
550
750
965
600

417
546
431
178
549
474
200
365

186
147
78
189
103
237
235
70

566
321
469
663
622
874
825
465

1,771
1968 - Jan.
1,607
Feb..
1,800
Mar.
1,428
Apr.
May
; 1,867
2,418
June
July e/ 2,310
Aug. e/ 1,565

16
61
236
31
89
52
n.a.
n. a.

xj Revised.
e/ Estimated by Federal Reserve, n. a. Not available.
1/ 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.




'

n y

Exhibit J
Other Security Offerings
(In millions of dollars)
Gross Long-term 1/
Foreign Government 2 /
-.
Federal Agency 3/
1966
1967
1968
1968
1967 .
January
February
March
April
May
'
June
July
August
September
October
November
December
Jan. - Junje

127
49
107
75
142
7

196

1,656

307

Year

223
27
13
170
22
586
193
66
142
18
629

12
40
40
66
69
76
72
7
50
23
74
68
303
597

—

1

4,667

1,251
783
750
650
810
650
407
250
599
708
710
612
4,894

503
410
392
699
1,030
1,084
799
400
450
800
239
3,034

8,180

999
550
1,370
225
744
779

6,806

January
February
March
April
'
May
June
July
August .
September . .
October
November
December

New short-term 4/
Federal Agency
State and local Government 5/
179
103 .
490
-179,
300
387
39
-552
436
89
-594
. -319
-593
-454
-604
827
580
-559
3
681
515
462
121
490
. 109
27
-378^/
-187
-334
93
539£/
457
-103
20
-158
270
-262
593
-161
32
1,407
-48 "
606
414
503
49
573
. -570 •
36
" -514

Jan, - July

439

Year

1,147

428

1,127

531

1966

1,619

3/
308
-24
450
718
85
284
-590
-270
-652
-555
-283
219

1,700

1,231

660

310

j>/ 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.
If
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 those
in Exhibit R and above in that they represent new offerings less retirements, whether
from the proceeds or refunding issues or from other funds. Data include only issues with
original maturity of one year or less. 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.
. -




r

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
Aug.
Sept.
Oct.
. Nov.
Dec.
1968 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.

Cornori•te
Bonds
Convertible
(other than
convertibles)
bonds

1,340
1,705
794
1,458
826
978
904
757
788
696
1,009
1,461
1,243
665

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
J
591
736
794
571
758
864
1,165

Other

£/

85
221
400
50
845
627
1,095
389
1,030
370
145
500
920
70

Large Individual Issues Offered Sept. 3 through Sept. 6, 1968.
Issuer

StaOTft*
Condec Corporation
Michigan Consolidated
Gas Company
South Carolina Elec.& Gas
State & local Government
Jacksonville, Florida
Portland, Oregon
State of Ohio

Type £/

Amount
(millions
of
dollars)

Maturity

Coupon
ra te or
net interest cost

Offering
yield

Rating

Cony, sub, debs. 20.0
.

1993

5

5.00

B

1st mtg. bds.
1st & ref. mt&
bds.

25.0

1993

7

6.80

A

20.0

1998

6-1/2

6.50

A

1977-81
1970-83
1969-78

4.30
4.06
3.83

4.00-4.25
3.20-4.20
3.00-3.95

Aa
Aa
Aa

G.O.
G.O.
G.O.

Other
NONE




20.0
12.5
100.0

.

K-2

.

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-utilities; Rev.-S.T., revenue bonds secured by revenue from specific
taxes only; Rev.-Rent., revenue bonds secured solely by lease payments.




. H. 14

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)

-

1967

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

During month following
date shown
State and
Corporate
Other 2/
local govt.
——
512
1 ,261
694
783
100
534
768
65
1 ,357
505
50
826
865
845
633
968
402
531
449
60
873
683
130
758
494
15
,103
1:
695
45
,193
485
1,
500
,068
1,
597
75
619
1,071
70

Corporate
1 ,576
1 ,335
1 ,090
2 ,694
2 ,129
1 ,892
736
,105
1.
935
,612
1:
,403
1,
,380
1,
679

Subsequent to
date shown
State and
local govt.

Other 2/

575
903
889
743
1,684
1,076
937
1,079
624
1,069
640
1,042
1,307

150
159
126
260
875
502
75
265
125
60
515
110
85

Forthcoming Large Offerings as of September 6, 1968.

Issuer

Type

Corporate
New England Tel. & Tel.
Debs.
Belco Petroleum Corporation
3onv. debs.
1st mtg. bds.
Metropolitan Edison
1st mtg. p.l. bds
Tenneco Inc.
2onv. sub. debs.
Eckerd Drugs
2onv. debs.
Fibreboard Corporation
Debs.
General Tel. of Michigan
1st mtg. bds.
New York State Elec. & Gas.
3onv. debs. .
Allegheny Airlines
]onv. cap. notes
Harris Trust & Savings Bank
1st mtg. bds.
Commonwealth Edison
Cleveland Electric IlluminatingGo. 1st mtg. bds.
Debs.
Transcontinental Gas Pipeline
1st mtg. bds.
Detroit Edison
Debs.
•Columbia Gas System
1st mtg. bds.
•Consolidated Edison of New York
*Jersey Central Bower & Light Co. 1st mtg. bds.
•Wisconsin Public Service
Pfd. stk.
•Chesapeake & Potomac Tel. Co. of
Maryland
Debs.
•Northern Indiana Public Svc. Co. 1st mtg. bds.




Amount
(millions
of
dollars)
125.0
25.0
31.0
60.0
15.0
30.0
22.0
30.0
15.0
25.0
75.0
50.0
50.0
150.0
40.0
60.0
26.0
15.0
75.0
20.0

Approximate date o
offering

September
September
September
September
September
September
September
September
September
September
September
September
September
September
October
October
October
October
October
October

9
10 •
10
10
16
17
17
18
23
23 (r
24
23
25
26
3
8
8
8
9
9

L-2
Forthcoming Large Offerings as of September 6, 1968.

Issuer

Type

Amount
(millions
of
dollars)

Approximate date of offering

Corporate (Cont'd)
National Industries
Alexander's Dept. Stores
*King Resources
Computer Applications, Inc.

Oonv. sub. debs.
Com. stk.
Conv. sub. debs.
Conv. debs.

20.0
15.0

Indefinite
Indefinite
Indefinite
Indefinite

10.0
18.3
32.5
10.5
34.6
30.0
12.4
10.5
73.0.
25:0
22.0
25:2
20.0
88.5
.105.0
25.0

September
September
. September
September
September
September
September
September
September
September
September
September
September.
September
September
September

25.0

20.0

State & local Government

G.O.
Columbus, Ohio
Mecklenburg Co., North Carolina G.O.
Rev. -Ut.
Cobb Co., Georgia
G.O.
State of South Carolina
G.O.
State of Oregon
G.O.
Philadelphia, Pennsylvania
G.O.
Fairfax Co., Virginia
Rev. -Rent.
Virginia Polytechnic Inst.
Rev.-Rent.
Ardmore Development Authority
Rev.-S.T.
Alabama Highway Authority
G.O.
Cleveland, Ohio
G.O.
Los Angeles, California
G.O.
" New Orleans, Louisiana
G.O.
State of Pennsylvania
Rev.-Rent.
Beauregard Parish, Louisiana
Rev.-Ut.
Houston, Texas
Southeastern Pennsylvania
Rev. -Rent.
Transportation Auth., Phila.
G.O.
Kings Co., Washington
Rev.-Rent.
Port of Astoria
Pennsylvania State Highway &
Rev.-Q.-Ut.
Bridge Authority
Rev.-Q.-Ut.
Maryland State Roads Comm.
Los Angeles Flood Control Dist.,
G.O.
California
G.O.
•Detroit, M i c h i g a n
G.O.
*Seattie, Washington
,Md. G.O.
•Washington Sub. Sani. Dist.
G.O.
State of Ohio
G.O.
*San Francisco B.A.R.T.
Rev.-Ut.
* S a n Diego, California
Tampa Hillsborough Co.
Rev.-Q.-Ut.
Expressway Authority
Rev.-Q.-Ut.
Kentucky Turnpike Authority
Hillsborough Aviation Auth.
Tampa, Florida
Other '
•World Bank
Canadian,Utilities, Ltd.




55.0 '
39.1
115.0

September
September
September

19
24
24

75.0
225.0

September
September

25

October
October
October
October
October
October
October

1
1
1
8
8
10
10

45.0
15.0
10.0
22.0
25.0
70.0
10.0
46.0
120.0

Indefinite
Indefinite

41.0
Bonds
S.F. debs, w/wts.

9
10
10
10
10
11
11
12
12
17
17
17
18
18
18
18

Indefinite

250.0
15.0

September
16
Indefinite

L-3

FOOTNOTES:
*—Included in table for first time.
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)

Issuer and Description of Issue
A.

May

15

20.0

•May

21

28

x

25.0

May

Public Offerings

100.0

Sold: May 1 through Sept. 6, 1968.
Montreal Catholic School Commission--?-1/2% S.F. debs.
maturing 1993, reoffered to yield 7.88%.
Newfoundland and Labrador Power Commission—7-3/4%
S.F. debentures, maturing 1993, reoffered to yield
8%.
•
"

-

'

-

Canada, Government of, 6-7/8% bonds maturing 1988,
reoffered to yield 6.90%.

g
B
'
&

{

July

75.0

July
-

10
23

20.1

Province of Ontario, 7-1/8% debentures maturing 1998, §
reoffered to yield 7.19%.
f
Husky Oil Canada Ltd.
|

July

25

25.0

Province of Nova Scotia -- debentures.

h
)'

i

B.
Indefinite

15.0

Prospective Offerings

Canadian Utilities, Ltd., -- S.F. debs, with warrants, i

* - Included in table for first time.
* * - Issues sold to investors outside
* * * - Issue subject to interest equalization tax.




\

PART II:

Date Reported

Private Placements -- Reported May 1 through Sept. 6, 1968.

Amount
(millions
of
dollars)

Issuer and Description of Issue

6/68

7/1/68

25.0

Argentina, Government of —
June, 1973.

1.4

7/1/68

.5

British Columbia Forest Products, Ltd. —
secured notes.

8/20/68

75.0

Bell Telephone Company of Canada —
6.907. 1st mortgage bonds maturing 1998.

8/21/68
|

Seaboard Finance Co. of Canada, Ltd., Sr. notes
maturing 1983, take down at various dates
through 1969.

7/1/68

40.0

Placer Development Ltd., Vancouver

9/9/68

.

29.4

2.0

extemal_bonds maturing

British Columbia Forest Products, Ltd. -- 20 year
secured notes.
10 year

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
l % % e r i l c l u d i r p r i % e l y p l L ^ s e c u r i t i e ^ i n the period in which funds a r ^ ^ 1 ^ e t a k
down but only in the amount of takedown while the placements shown in this exhibit are

a placement is reported.




1<t

e n


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102