OCR Text |
Show ' n Bond Demand Still Immense , By Ira C. Tichenor TIOSE vho were led to believe that the slight recession in the prices of bonds and the moderate decrease in the activity of such securities on the New York stock exchange, a few days ago might mean a decided reaction in the investment market most certainly realized their mistake by the oversubscription In one day of nearly :00,000,00 of new Issues. Something more than half of the new offering's were of foreign orison, while the remainder Were domestic, a clrcumstano which tended to prove the theory that tha investing power of the American public is still so treat that there -la no danger of the foreign or domestic demands overtaxing the j market to the detriment of either. (Included in the offerings were 4a,000,000 of fifty-year New Tork City oonds, and the placing of this issue simultaneous with Ita offering definitely proved the strength of the present financial situation and set a mark for future transactions of a similar character. The New York City bonds carry an iatereat rate of 4 per cent. The successful bid of $10.7 placea the .loan on an Interest basis of 4.1! per rcent. as aifalnat a basis of 4 83 for the 4H per cent loan of last December and of 4 i for the city's last previous long term borrowing, made in July. If 17. These figures show that the loan Just negotiated was at the most advantageous price to the city that any loan with that Interest rata lias ever received. Whlls he price of this loan Is splendid testimony to the position of the Investment market, It is only one tof numerous recent events of a like character. In the recent case of the offering of fl6.000.00f province of Ontario Issue the bonds were quoted at about a 6.35 basis at the time the offering waa made, yet the bonds were brought out at a 5.05 per cent basis and Immediately sold, i Although the advance In the price of bonds has averaged possibly much an 16 per cent during the past six months, the average price still has far to go before reaching what is regarded -as the normal. |