Full text of H.16 Capital Market Developments : February 28, 1958

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Not for Publication DECONTROLLED AFTER SIX MOUTHS

H.lU

February 28, 1958
CAPITAL MARKET DEVELOPMaiTS
(Including Monthly Review of Sources and Uses
of Funds of Financial Intermediaries)

The volume of large public security offerings was substantial
_/-^last week and is expected to be only moderately smaller this week. During
the week ending February 21, corporations sold large issues totaling $200
million and State and local governments offered issues amounting to $173
million. This week, large corporate issues are expected to total $11*9
million. State and local government offerings with aggregate proceeds of
$135 million and a foreign government issue for §1$ million are also scheduled for sale.
Bond yields - Yields on outstanding bonds changed little again
last week. Yields on State and local government and U. S. Government obligations increased slightly, while corporate bond yields declined.
Yields on new corporate issues have increased recently. Two
new Aa-rated first mortgage public utility bond issues were.offered to
investors this week — one to yield 3.95 per cent and the other li.OO per
cent as compared to a yield of 3.80 per cent for comparable offerings made
last week and the week before. An A-rated issue with similar.terms was
offered on Friday to yield U. ItO per cent •— J46 basis points above the
yield for a comparable issue offered a week earlier.
March security volume estimates - The volume of corporate issues
for new capital is expected to be very large in March. The estimated total
of $1.5 billion would be more than two-thirds larger than the volume in
February and nearly one-eighth greater than in March of last year. Large
public issues, including the $718 million AT&T convertible debenture issue
for which subscription rights expire in mid-March, are expected to total
about $1.1 billion. (Last March, AT&T sold a $250 million nonconvertible
debenture issue.) A volume of $1.5 billion in March would bring the first
quarter issue total to $3.2 billion, only one-tenth below the first quarter
of 1957.
State and local government issues are currently estimated at about
$550 million. This volume would be about three-eighths below the revised
estimate for February, but nearly one-tenth above the volume in March 1957.
For the first quarter of this year State and local government financing is
expected to be $2.2 billion (a record for the first quarter), more than 20
per cent above the volume in the corresponding quarter last year.




H.lh
Stock prices - Stock prices, as measured by the Standard and Poor's
index of 500 common stocks, declined last week, closing at U0.88 on February 21.
Trading activity was light, averaging only 1.8 million shares a day. Prices
declined further on balance for the first four days of this week, closing on
Thursday at 1*0.68.
Institutional investors - In December, savings capital at savings
and loan associations and deposits at mutual savings banks increased more
rapidly than in December 195^, while life insurance company assets increased
less rapidly. The investment pattern of these institutions showed some
changes in December from that of other recent months, holdings of mortgages
generally increased more rapidly than earlier in 1957, but holdings of business securities gained less rapidly than earlier in the year, however, net
acquisitions of mortgages in December were still below a year earlier (with
the exception of savings and loan associations) while the "increase in holdings
of business securities were above the previous year.
For the year 1957, the combined growth in savings at these three
major savings institutions — life insurance companies, savings and loan
associations and mutual savings banks — w a s 5 per cent smaller than in
1956. (§11,750 million in 1957 compared with $12,378 mill ion in 1956.)
Savings lagged behind 1956 rates at each of the institutions, with mutual
savings banks showing the largest percentage decline. In contrast to developments at these three institutions, savings and time deposits at commercial banks increased $5.5 billion in 1<?57, about 2 1/2 times as much as
in 1956.
The increase in life insurance company assets in 1957 amounted to
$5,199 million, about 7 per cent less than in 1956 and 16 per cent less than
in 1955- Net liquidation of
S. uoverament securities was about half as
great as the unusually large liquidation in 1956. The increase in life
insurance company holdings of mortgages was smaller in each month last year
than in the corresponding period of 1956 — with the total increase being
only five-eighths as large as in 1956. In January and February of 1957,
business security holdings increased less rapidly than in 1956, but in
each succeeding month the increase was greater than during the corresponding
month a year earlier, and for the year was one-fourth greater.
The net increase in share capital at savings and loan associations
for the year was
890 million, only slightly smaller than in 1956 and about
the same as in 1955. Early in 1957, the growth had been at a slower rate
than a year earlier, but the increased pace in later months nearly offset
this lag. Associations increased their indebtedness, to home Loan Banks
slightly in 1957, in contrast to substantial debt repayment in 1956, thereby permitting a slightly greater, increase in mortgage holdings than a year
earlier. The increased rate of growth in mortgage holdings was concentrated
in the last five months of the year. Holdings of U. S. Government securities,
increased 10 per cent less than a year earlier.




H.l4
Sources and Uses of Funds of Major Types of Savings Institutions
1953 - 1957
(In millions of dollars)

Year

1957
1956
.1955 '
1951
1953

Cash

-9
18
55
5
80

u. s.
Govt.
securities

-1,026
-476
-746
-428

1957
1956
1955
1954
1953

26
52
87
501
190

387
440
321
101
133

1957
1956
1955
195k
1953

-18
-45
-61
43
65

-405
-489
-288
-136
-238

Uses of funds
StateS
Business
local Other
Mortsecur- gages. govt.
ities
2,473
1,972
2,126
2,280
2,792

—

798
177
-178
230
388

2,236
3,569
3,497
2,653
2,030

Sources of funds
Net change
Total
Borrowsources in deposits
ing
or savings
and
capital

Life Insurance Companies .
141
927
5,199
808
236
5,577
165
832
6,199
1,120
5,867
555
152
541
5,167
—

Savings and Loan Associations
610
14,390
5,4oo
4,890
it, 268
5,156
408
4,956
320
5,267
4,858
5,983
4,232
5,003 .
4,488
174
3,566
189
3,651
4,073
1,409
2,284
2,429
2,050
1,556

1/

Mutual Savings Banks
1,837
44
9
32
78
2,037 *
1,998
37
57
68
2,146
193
82
44
. 1,897

—

34
-211
598
-67
83

The growth in deposits at mutual savings banks was #1,661 million,
less than in each of the four previous.years and 10 per cent less than in
1956. Net liquidation of U. 3. Government securities, although substantial
was about 15 per cent less than a year earlier. Net acquisition of.mortgages
was three-eighths less. Acquisitions of business securities were extremely
large throughout 1957, totaling $798 million as compared to $177 million in
1956.
„ More detailed information concerning recent capital market developments is presented in the attached exhibits.




—

476
411
527
582
339

-

1,661
1,845
1,828
1,961
1,777

\J For description of data see exhibits H, I and J.

Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.

Other

176
192
169
186
120

A
EXHIBIT A
HIGH-GRADE

BOND

YIELDS

\ A

Date

Corporate
Aaa 1/

U. S. Govt,
long-term,2/

State and
local govt.
Aaa J/

Spread between
U. S. Govt, and
Corporate 1 State and
Aaa
,||local Aaa

(Percent)

1958 - High
Low

3.1*2 (6/19)
3-19 (6/5)
2.99 (1/9)
2.71 (12/31)
3.09 (1/8)
2.71 (1/8)
2.85 (lt/23)
2.145 (8/6)
3.17 (12/23)
2.97 (8/5)
2.91 (1/7)
2.61 (1/7)
3.79 (12/28)
3.1t5 (12/28)
3.07 (3/2)
2.814 (2/17)
3.76 (10/18)
U.1U (9/27)
3.66 (V12) . 3.18 (2/8)
3.68 (1/3)
3.28 (1/31)
3.20 (1/10)
3.56 (1/31)

January 2h
January 31
February 7
February ill
February 21

3.57
3.56
3.59
3.59
3.58

1953 - High
1951* - High
1955 - High
1956 - High
Low
1957 - High

3.27
3.28
3.27
3.2U
3.25

2.73
1.98
2.21
1.90
2.31*
2.05
3.05
2.17
3.145
2.76
2.86
2.65
2.65
2.68
2.70
2.70
2.73

(6/25)
(1/8)
(6/10)
(9/2)
(9/8)
(5/26)
(-12/27)
(2/23)
( 8/29)
(2/21)
(1/9)
(1/23)

^

.38
.20
.143
. .30
.27
.11
.141
.12
.60
.27
.16
.28
.30
.28
.32
• 35
.33

.83
.33,
.62
.30
.76
.57.
.71
.32
.147
.15
.62
.3k
.62
.60
•57
.5U
.52

1/ Weekly average of daily figures. Average term of bonds included is 25-26 years.
2/ Weekly average of daily figures. The series includes bonds due or callable in
10 years or more.
y Thursday figures. Only general obligation bonds are included; average term is
20 years.
Not.—Highs and lows are for individual series and may be on different dates for
different series.




LOWER - GRADE

BOND

YIELDS.

CORPORATE. Baa

/

V

I STATE AND LOCAL GOVT

Corporate
Baa 1/

State and
local govt.
Baa 2/

Spread between
Aaa and Baa
I State and
Corporate 1local govt.

(Per cent)
1953 - High
1954 - High
Low
1955 - High
1956 - High
1957 - High

3.89
3.50
3.74
3.44
3.63

(9/18)
(1/2)
(1/8)
(12/31
(12/30)

3.^5 (1/14)%

4.41 (12/28)
3.58 (3/9)
5.10 (11/29)

1958 - High
Low

v

z

January 24
January 31
February 7
February lit
February 21

U-77
4.72
4.68

m

4.64 (2/21)

3.26 (12/29)

3.02 (1/6)

4.22 (12/27)
3.20 (3/8)
4.51 (8/29)
3.73 (1/23)

I'M
3.77
3.77
3.78

4.66
4.64

1/ Weekly average of daily figures.
25-2
ten

2/Thursday figures.

..69
.42
.68
.52
.54
.45
.63
.42
1.27
.64
1.28
1.06

1.21
.98
1.16
.93
1.03
.87
1.17
.89
1.21
1.04
1.09
1.02

1.20
1.16
1.09
1.07
1.06

1.08
1.08
1.07
1.07
1.05

Average term of bonds includes is

Only general obligation bonds are included; average

" Note?--Sghs and lows are for individual series and may be on different

dates for different series.



STOCK MARKET

L

v j1

;

I

1

1

"L
M

Date

1

YIELDS

Stock price
index 1/

M

M U

~!

T

Common
Trading
Stock market customer credit
volume 2/
Customers'
(millions
yields 2/ Total debit bal- 1 loans to
of shares) (per cent)
ances It/ 1"others" 5/
(Millions of dollars)

1953 - High
Low
1951 - High
Low
1955 - High
Low
1956 - High
1957 - High
Low
1958 - High
Low
December
February 7
February lit
February 21

26.5k (1/2)
2.5
22.95 (9/18)
0.9
35.98 (12/31)> 3.7
1.1*
21.93 (1/8)
1*.6
1*5.69 (12/9)
35.28 (1/11*).
1.5
1*9.61* (8/3)
3.1
1*3.22 (1/20)
1.5
1*9.08 (7/12)
1*.2
39.1*8 (12/20)
1.1*
1*1.73 (2/7)
2.5
1*0.37 (1/10)
1.8
1*0.33
1*1.12
1*1.73
1*1.33

2.6
2.3
2.5
2.0
1.8

6.25
5.38
5.82
1**32
1*.1*2
3.61*
U.35
3.82
lt.72
3.91
L.58
1*.1*2

2,1*55
2,055
3,1*36
2,1*05
It,030
3,537
l*,0lt7
3,911*
1*,031
3,576
n.a.
n.a.

1,665
1,311*
2,388
1,653
2,805
2,517
2,823
2,71*0
2,887
2,1*82
n.a.
n.a.

780
661,
1,01*8
71*6
1,21*1
1,018
1,267
1,155
1,163
1,051*
1,067
1,051

1**63
U.l*8
i*. 1*2
1*.1*7
lt.52

3,576
3,551*
n.a.

2,1*82
2,1*87

n.a.

n.a.

1,091*
1,067
1,065
1,058
n.a.

n.a.—Not available.
1/ Standard and Poor's composite index of $00 common stocks, weekly closing
prices, 19l*l-l*3"10. Monthly data are averages of. daily figures rather than of
Fridays' only. Highs and lows are for Friday's data only.
2/ Averages of daily trading volume on the New York Stock Exchange.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve.
h/ 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.
£/ Wednesday figures for weekly reporting member banks. Excludes loans for
purchasing or carrying U. S. Government securities at banks in New York and
Chicago. Weekly reporting banks account for about 70 per cent of loans to others.
For further detail see Bulletin.
. Note.—Highs and lows are for individual series and may be on different dates
for different series.




Exhibit D

H.lii

Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New capital
1958
January
February
March

e/ 800
. y 875
e/1,500

April
May
June
July
August
September
October
November
December
1st quarter
2nd quarter
3rd quarter
Uth quarter

e/3,175

1

Corporate
1
1957
1,063
1,071
1,3UU

573 712
817.

1958
796
; e/875
f/550

State and local 1/
1
195b
1
1957
7U2
572
506

UoU
696
390

92U
771
1,U89

818
1,1U6
8U1

765
5U6
393

378
U90
735

991
91U
973

1,063
65U
838

529
58U
U31

U08
206
357

1,055
792
1,086

7U5
1,089 2/
1,088

698
633
698

639
3U7
U09

3,479
3,18U
2,878
2,933

2,102
2,805
2,556 .
2,922

1,820
1,70U
1,5UU
2,029

1,U90
1,603
971
1,395

3,52U
5,069
7,099

3,093
U,06U
5,U59

6,662
9,5U0
12,U73

1st half
Three quarters
Year

1956

U,907
7,U63
10,38U

e/2,221

Excluding finance companies 2/
1st
2nd
3rd
Uth

quarter
quarter
'quarter
quarter

e/2,875

Year

3,268
2,92U
2,560
2,788

1,6U7
2,5Ul
2,2U6
2,826

11,5U0

9,260

1/ Data through June 1956 are Bond Buyer data classified as new capital by
Federal Reserve; later data are from the Investment Bankers Association of America
and are somewhat more complete as to coverage than the earlier data, particularly
for Federal Government loans.
2/ Includes $571.5 million AT&T common stock issue.
2/ Total new capital issues excluding offerings of sales and consumer finance
companies.
Note.—Details may not add to totals due to rounding.




Exhibit E

H.lii

Large Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(Millions of dollars)

Corporate

Month

1957 - January
February
March
April
May
June
July.
Augusrt
September
October
November
December
1958 - January

State and
local government

567
671
788
1*77
329
877
525
5#
537
57k
1*20
#9
310

Other 2/

386
306

100
50

1*99
218
176
265
357
185
1*35
#6
139
506

125
25 •
39
25

19k

30
75
215

•

Large Individual Issues Offered February 1 through 21

Type y

Issuer

Amount
Coupon
(millions
Offering
Maturity
of
net inter- yield
dollars)
est cost

Com. stk.
30.8
16.6
Com. stk.
Com. stk. 136.8
Com. stk.
21.8
Pfd. stk.
25.0
1st mtg. bds.25.0.
Pfd. stk.
25.0
Deb.
150.0
1st mtg. bds.25.0

Tennessee Gas Trans. Co.
Texas Utilities Co.
Royal Dutch Petroleum Co.
Northern Natural Gas Co.
Southern Calif. Edison Co.
Ind. & Mich. Electric Co.
Niagara.Mohawk Power Co.
Gen. Motors Accept. Corp.
N.Y. State Elec. & Gas Co.

Rating

1988

3 7/8

3.80

• Aa

1979
1988

h

Lil
3.80

Aa

2.30-3.60
1.50-2.90

AAa

3 7/8

——

STATE AND LOCAL GOVERNMENT
Springfield, 111.
Columbus C. S. D., Ohio




I
|

Swr. rev.
G. 0.

5.6
5.0

1962-97/72
1959-82

3.53
2.73

H.14

E-2
Large Individual Issues Offered February 1 through 21 (Cont'd)

Type 3/

Coupon
Amount
Offering .
rate or
(millions
Rating
Maturity net inter- yield
of
est cost
dollars)

STATE AND LOCAL GOVERNMENT
Continued)
Wtr. rev.
Detroit, Michigan
5.0
Swr. rev.
Allegheny Co.San^Auth.,Pa
25.0
East Baton Rouge Par. Sch,
G.O.
10.0
Dist. No. 1, La,
G.O.
Memphis, Tennessee
12.5
Wtr. rev.
20.0
Denver, Colorado
—
Public Housing Auth.
67.1
50.0
•N.Y. State Thruway Auth.
G.R.
G.O.
No. Hempstead S.D.Ko.9,N.Y.
7.4
G.O.
Detroit, Michigan
13.7
G.O.
New Orleans, La„
6.3
G.O.
Wichita S. D. No. 1, Kan,
5.0
12.0
G.O.
State of Minnesota
G.O.
Hartford, Connecticut
6.9
Rev.
18.0
Met.Wtr.Dist. of So.Calif„
6.0
G.O.
Guilford Co., N. C.
G.O.
„ Hempstead U.F.S.D.No.l5,NT.
5.4
G.O.
Kansas City S.D., Mo.
7.0
G.O.
10.1
Long Beach, California
G.R.
State of Connecticut
77.0
State of Alabama
G.O.
21.0
18.8
State of Rhode Island
G.O.
G.O.
St. Louis, Missouri
12.3
21.0
State of Delaware
G.O.
Utilities rev., 5.5
Colorado Springs, Colo.

1962-78/68
196I-96/63

3.02
3.55

2.15-3.05
2.20-3.60

Aa

1959-78
1959-88 .
1969-97/68
1959-98/67
1985-95/65
1958-86
1959-83
1959-87/73
1959-78
1961-77
1959-78
1959-70
1961-80
1959-87
1959-78/73
1960-83/73
1968-97/66
19^9-87/63
1959-86
1962-77
1959-78
1958-79

3-19
2.82
3.25
2.89
3.12
3.72
2.98 3.25
3.1U
2.45
2.41
2.39
2.70
3.39
2.66
-3.15
3.26
2.78
3.09
2.75
2.60
3.37

1.80-3.25
1.50-3.70
2.65-3.24
1.45-3.10
2.85-3.10
1.60-3.75
1.65-3.15
1.80-3.35
1.80-3.30
1.70-2.60
1.50-2.60
1.50-2.50
1.80-2.85
1.75-3.50
1.40-2.80
1.70-3.40
2.25-3.25
1,50-3.30
1.50-3.30
1.80-2.90
1.25-2.80
1.50-3.30

A
Aa
Aa
Aaa
Aaa
Baa
A
A
A
Aa
Aaa
Aa
Aa
A
Aa
Aa
• Aaa
A
A
Aa
Aa
n.a.

—

OTHER
None
n„a.—Not available.
1/ Includes corporate and other security offerings of $15 million and over;
State and local government security offerings of $5 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues.
•
2% In the case of State and local government securities, G.O. denotes general
obligations; Rev., revenue bonds; G.R., general obligations additionally secured by
facilities revenues; L.L., limited liability obligations secured by pledge of designated revenueSo




v>

H.lU
Forthcoming Large Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues

Date of
computation

- Dec. 31
- Jan. 31
Feb. 28
Mar. 29
Apr. 30
May 31
June 28
July 31
Aug. 30
Sept. 30
Oct. 31
Nov. 29
Dec. 31

Subsequent to
date shown

During month following
date shown
C o r p o r a t e | i ^ f i e g ^ . Other 2/
1*76
591

7U0

I161
187
525
370
526
578
576
1x58
383
378

280
153
290
179
97
172
252
2k3
370
• 369
387
383

100
35

Corporate

796

966

30

795
486
258
525
lti5
811
8L5

30
18
1%

815
1,193
1,161

25
25
25

6h7

Forthcoming Large Offerings,. as of
Type

,

^ J ^ h e r

763
6I4.8
631
862
396
388
498
511*

U39

5#
573
589
61U

100
35
25
25
25
30
15
U5
63
165

February 21

Amount
Approximate date
(millions
of offering
of dollars)

CORPORATE
Pennsylvania Electric Co.
Cleveland Electric Illuminating Co.
Central' Illinois Public Service Co
United Gas Corp.
Southern New England Telephone Co.
Potomac Electric Co.
Baltimore Gas & Electric Co.
Ohio Edison Co.
Public Service Electric & Gas Co.
Union Electric Co.
Columbia Gas System, Inc.
*Sylvania Electric Products, Inc.
*Sylvania Electric Products, Inc.
American Telephone & Telegraph Co.




2/

1st mtg. bds.
29.0
1st mtg. bds.
30.0
1st mtg. bds.
15.0
1st mt g. &coll. tr. bds.30.0
Deb.
30.0
Pfd. stk.
15.0
1st & ref. mtg. bds • 30.0
1st mtg. bds.
1x0.0
Pfd. stk.
25.0
1st mtg. bds.
35.0
Deb.
30.0
S.F. deb.
20.0
Conv. sub. deb.
20.0
Conv. deb.
713.3

Feb. 25
Feb. 26
Feb. 26
Feb. 27
. Feb. 27
Feb. 28
Mar. h
'•liar. 5
Mar. 5
Mar. 6
Mar. 7
Mar. 11
Mar. 11
Mar. 12
(rights expire)

w
H.llt

F-2
Forthcoming Large Offerings, as of February 21 (Cont'd)
Issuer

Type

Amount
Approximate date
(millions
of offering
of dollars)

' . CORPORATE (Continued)
^ Chicagoj Rock Island & Pacific R.R.
General Telephone Co. of Calif.
Mississippi River Fuel Corp.
Carolina Power and Light Co.
^Georgia Power Co.
Commerce Oil Refining Corp.
Natural Gas Pipeline Co. of America

1st mfcg. bds.
1st mtg. bds.
S.F. deb.
1st mtg. bds.
1st mtg. bds.
Deb. ,bds.&common
1st mtg. bds.

16.0
20.0
30.0
20.0
21.0
. 1*5*0
Uo.o .

Mar. 13
Mar. 13
Mar. 13
Mar. 18
Mar. 20
Winter
Winter

STATE AND LOCAL GOVERNMENT
New York, New York
Cleveland, -Ohio
State of Kentucky
' Houston Ind. Sch. Dist., Texas
State of Tennessee
San Antonio, Texas
Washington Tp. Local Sch. Dist.,Ohio
Louisiana State University
Seattle, Washington
Miami, Florida
State of Mississippi
*Harrisburg Sewerage Auth., Pa.
• Newark, New Jersey
•sCuyaboga Co., Ohio
Milwaukee, Wisconsin
Lafayette, Louisiana
*State of Ohio
State of Louisiana
Providence, Rhode Island
^Lafayette Sch. Dist. No. 1, La.
-Pennsylvania Turnpike Commission
Inter-American Center Authority ,Fla.
: Met. Fair & Exposition Auth., 111.

G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Bldg. rev.
Rev."
G.O.
G.O.
Sewer.rev.
G.O.
Wtr. rev.
Util. rev.
Rev.
G.O.
G.O.
G.O.
Rev.
Rev.
Bldg. rev.

Uii.5
-15.3
35.0
15.0
15.0
5.0
5.0
7.5
20.0
12.7
20.0
7.2
15.0
5.3
10.0
8.0
32.0
8.1
6.7
7.0
62.0
20.0
25.0

S.F. bds.

15.0

Feb. 25
Feb. 25
Feb. 25
Feb. 26
Feb. 26
Feb. 27
Feb. 27
Mar. 1
Mar. k
• Mar. 5
Mar. 6
war. 6
Mar. 11
Mar. 13
'Mar. 18
Mar. 18
Mar. 20
. Mar. 26
Mar. 26
Apr. 2
Winter
Winter
Winter

OTHER
Amsterdam, The Netherlands

Feb. 26

*—Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and local
government issues of 55 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues.
Note.—Deletions for reasons other than sale of issue: Los Angeles Metropolitan
Transit Authority, California's # 0 . 0 million revenue bond issue — no bids received.




Exhibit G

H-UU

Yields on New and Outstanding
Electric power Bonds, Rated Aa and A 1/
Aa-rated offering yields
A-rated offering yields
Amount above
Amount above
Actual
Actual
seasoned yields
seasoned yields
(per cent)
(per cent)
(basis points)
(basis points)

Date

1952 - 1956
High
Low

U. 30(12/12/56)
2.93(3/31/51)

1957 - January
February
March
April
May
June
July
August
September 5
October 1
15
17

L.Wi
L.25
None
*1.29
iwMi
1.71

20
21

22
December 6
12
1958 - January 8
9
17
21
23
February 5
lit
20

21

II

None
h.50
, h .55

15

*5.10

106

ii.80
U.85

U.78

hS

U.97
lj. .86 2/

63
52

U.82

53
37
.39
Hi

It .65
L.65
ii.30

1.62

1.80

I4.86 2/

None ~

5U
79

70

5.10

51
39

3h

1.95
5.30
5.50

67

5.05 2/

U3

li.liO
li.O?

3.80

li
9
13
-3
-8 ,

3.90

-3

3.92

-3

3.85 ~

3.60

6k

5.00

I.10 2/

3.80
3.80

70
-15

3.00(3A7/5U)

U.66
*5.00

2h

1.58(12/6/56)

-3

50
58
81
57
75
51
56

25

November 7
8
15

62

13
12

*—Single observation, not an average.
1/ Covers only 30-year first mortgage bonds, as reported in Moody's Bond
Survey. Except where indicated, the actual yield figure and the amount above
seasoned yields are averages of offerings during the indicated period and of the
differences between these new offering yields and yields on seasoned issues of
similar quality for the same day. Average maturity for the seasoned issues varies
from 26 to 28 years.
2/ Both issues on which July average is based and other issues so marked
provide for a 5-year period during which issue may not be called for refunding at
a lower coupon rate. Other issues have no such provision.




Exhibit H
Sources and Uses of Funds by Life
Insurance Companies
Monthly

(In millions of dollars)

Cash

U.S.
Govt.
ities

1956 - Jan.
Feb.
Mar.
Apr.
May

X

-113
-lit
27
19
-9

16

July
Aug.
Sept.
Oct.
Nov.
Bee.

-29

11
16
16

Value of Assets
at End of Year
Jan.
Feb.
Mar.
Apl\
May
July
Aug. .
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year

;

-152
-157
-191

ho

-99
-66
-36
-109

2k
hi

Uses of Funds 1/
State and
Busilocal
ness
govt.
securities
ities
27 k
230
169
116
153
-106
297

125
20

10

-Ik

8

. a
16
5
u
12

lh2

Mortgages

373

85

280
269
3U0
293
329
282
215
289
307
288

57

115
12,272

30k

166

-101
-226

71
108
98
208

1,273

7,519

39,552

2,23li

32,99k

-132
-38

172
160
192
165
165
172

10

-22
60
-5
-30

69
-liU
-117
3
-90
-70
36
-38

-16 lU
138

9
-98
-185

i5u
186
237
202
#2

285
200
193
168
182
137
197
191
150
162
127

6,950

12,025

-k7
•2k

k5

1,26k

-kk

6

7
13
26

klk

.

33
10
7
12
10
13
2,375

93
8
55

65
56
109
93
-1

73

66

ikk

2kk

108
hi
119
72
91
82
92
8
118
-16

35,230

13,199

k72

122
336
lilii
3&0
371
766
369
L38

k!2

373
UU6
L01,0if3

Jan.
Feb.
"Mar.
1/ Uses of funds represent net changes in assets and therefore reflect net,
rather than gross, uses.
Source: Institute of Life Insurance.
1958




Exhibit I
Sources and Uses of Funds
by Savings and Loan Associations
Monthly
(In millions of dollars)
Uses of Funds 1/
U.S.
Govt. Mortsecur- gages
ities
1956 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-1*8

110
73
57
55
1*3

-h

-1*7
-62
12
122
-178
-96
-43
36
58
302

-3h
3h

39
13
ll*
25
11

Value of Assets .
at End of Xeai

2,119

2,782

TSftZ/- Jan.
Feb.
Mar.
Apr.
May

-172
-1*0
-23
-1*8
38
187
-320
-106
8
-21
81*
1*39

11*2
117
91
30
18
-1*1
1*1
23
-26
-10
19
-69

July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year

2,11*4

3,169

Sources of Funds
Other
assets

211*
296 397
1*08
136
1*1*0
1*11*
1*1*7
35U
356
27U
232
35,729
200
266
361*
1*01*
1*58
1*65
391*
1*63
363
1*26
303.
281*
1*0,119

-27
56
1*1*
88
127
12
-81*
954
68
81
-21
2,199

Total
sources

248
420
45o
188
617
539
186
398
377
473
437
523
1*2,875

-21*
57
81*
112
12*1
1*1
-100
59

11*5
399
515
497
651*
651
ill
1*38
5 5 - . 1*51
1:88
. 94
69
1*73
22
675
2,809

1*8,275

H i t

"

change
Borrowsavings
ing 2/
capital]
1*13
3l*6
3U7
319
1*62
769
11*2
287
267
1*05
377
822
37,11*8
336
315
#9
313
466
8#
-68
252
321*
367
399
966
1*2,038

-200
-75
-51
-5
-2
54
-59
16
28
2
81

35
11*9
I5ii
174
157
-281*
103
95
82
•66
60
-380

1,31*7 4,380
21*
-215
-70
151*
-21
177
11*
170
167
19
* 106 -311*
-3li 116
11*7^
39
60
1*7
18
103
66
8
123 -1*11*
1,381 1*,856

1S£8*/ - Jan.
Feb.
Mar.
r
p/ Preliminary.
_
1/ Uses of funds represent net changes in assets and therefore reflect net,
rather than gross, uses. Savings and loan associations do not hold business securities and data on holdings of State and local government bonds, presumed to be small,
are not available.
2/ Advances from Home Loan Banks and other borrowing.
Source: Federal Savings and Loan Insurance Corporation.




Exhibit J
Sources and Uses of Funds by
Mutual Savings Banks
•
Monthly
^

Cash

1956 - Jan.
. Feb.
Mar..
Apr.
May
June
July
Aug.
• Sept.
Oct.
^_Nov.
Dec .

-52
-lb
-13
-56
-2
89
-63
-19
-33
-22
lbO

Value of Assets 920
at End of Year
1957 - Jan.
Feb.
Mar.
Apr.
May
June
July
. Aug.
Sept.
Oct.
Nov.
Dec.

-89
13
-56
12
71
-73
-Li 2
27
-2b
6
137

Value of Assets
at End of Year 870

1958

(In millions of dollars)
Uses of Funds j./
State and
DualTotal
Mortlocal
gages Other sources
govt.
securities
ities

U.S.
Govt.
securities
21
-8
8
-52
-12
-90
-7
-17
-37
-lb 7
-78
-10

13
3U
3
2
19
1*5
3b
2
Ik
13
-7
5

25
2
16
-3
-5
-5.
1
2
-5
-5 ,
l
8

192
190
205
183
19b
183
198
227
186
205
175
lii6

7,971

3,523

669

19,529

21
20
18
-76
-19
-72
-7
11
-17
-136
-136
-12

68
5b
83
63
62
72
62
61
55
60
93
65

6
1

136
92
127
121
127
116
122
111
103
12b
100
128

7,609

.

k,27h

.

2
2
-1

7
-3
2
-3
7
-11
679

20,851

-20
179
18
222
32
251
5
79
62
226
190
-32
-2b
139
16
. 181
183
25
- 18
-15
53 -- 122
-b2
2b7
698 33,311

-5
27
32
-20
62
-38

-29
.28
18
-bl
38
-28

137
19b
. 273
3b
2b6
150
82
166
188.
-20
108
279

775 35,057

Sources of Funds
Net
changes
in
deposits

Other

139
135
238
b5
162
278
76
102
159
62
50
399

UO
87
13
3b
6b
-88
63
79
2b
-bb
72
-152

30,032

3,279

85
112
238
7
169
265
16
90
206
3b .
, 36
lt03
31,463

52
82
. 35
27
77
-115
66
76
-18
-5b
72

-lih

3,59b.

Jan.
Feb. •
Mar.

1/ Uses of funds represent net changes in assets and therefore reflect net,
rather than gross, uses.
I n s u r a S S C £ o r p o ? a t e ! Association of Mutual - Savings Banks and Federal Deposit