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

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Not f o r Publication

DECONTROLLED AFTER SIX MOHTHS

H.li;

:

. June 16, 1958.

CAPITAL MARKET DEVELOPMENTS
(Including Monthly Review of Sources and Uses of
Funds of Financial Intermediaries)
.The volume of large public s e c u r i t y i s s u e s f o r new c a p i t a l
was small last week, but is expected t o be somewhat l a r g e r t h i s week,
l u r i n g the week ending June 13, corporations sold two large i s s u e s
totaling ^75 million, ho large State and l o c a l government i s s u e s were
o f f e r e d f o r s a l e . This week, large corporate i s s u e s t o t a l i n g #31
m i l l i o n and State and l o c a l government o f f e r i n g s amounting t o -£Lli|
m i l l i o n are expected. A f o r e i g n government i s s u e f o r $36 m i l l i o n i s
a l s o scheduled f o r s a l e .
Bond y i e l d s - Changes i n y i e l d s on outstanding bonds were
minor during the week ending June 13. Yields on State and l o c a l government and high-grade corporate bonds remained s t a b l e j those f o r U. S.
Government bonds increased and y i e l d s f o r corporate Baa-rated bonds
declined.
|
Yields on new corporate i s s u e s a l s o showed l i t t l e change l a s t
week, a new Aa-rated f i r s t mortgage e l e c t r i c u t i l i t y bond i s s u e was
o f f e r e d to i n v e s t o r s on June 9 t o y i e l d 3 . 8 5 per cent — the same as
t h a t . f o r the l a s t comparable i s s u e , -an o f f e r i n g made on May 31.
Stock market c r e d i t - Customer c r e d i t i n the stock market
(excluding that f o r U. S. Government s e c u r i t i e s ) reached a new postwar
peak i n nay.. Sucn c r e d i t t o t a l e d »1j.,069 m i l l i o n a t the end of l a s t
month, s l i g h t l y above the May 1956 peak and ll; per cent higher than
when margin requirements were reduced t h i s January. The i n c r e a s e of
$89 m i l l i o n i n hay r e f l e c t s a s u b s t a n t i a l r i s e i n net debit balances;
bank loans to "others" declined.
End of month
May
1 Apr.
Customer c r e d i t
Excluding U. S. Government s e c u r i t i e s - t o t a l
Net d e b i t . b a l a n c e s
Bank l o a n s t o "others" ~
Net d e b i t balances secured by U. S. Govt, s e c u r i t i e s
Bank l o a n s to others f o r purchasing or carrying
U« S. Government s e c u r i t i e s
Broker and d e a l e r c r e d i t
Money borrowed except on I).. S, Government s e c u r i t i e s
On customer c o l l a t e r a l
Money borrowed on U, S. Government s e c u r i t i e s
Customers 8 net f r e e c r e d i t balances




Change

( m i l l i o n s of d o l l a r s )
+89
+121
-32
+7

1,069
2,856
1,213
liil

3^80
2,735
1,2 hS

75

70

+5

1,808
l,k95
2W1
979

• 1,822
l,Wi3
230
985

-iii
+52
+14
-6

13h

H.lii

- 2 -

Borrowing by member f i l m s of the NYSE maintaining margin
accounts (excluding borrowing on U. ST Government s e c u r i t i e s ) d e c l i n e d
l a s t month. Customers' n e t f r e e c r e d i t balances a l s o d e c l i n e d , t o t a l ing $979 m i l l i o n a t the end of Hay. These and o t h e r data on stock
market c r e d i t are shown i n the t a b l e on the proceeding page.
Stock p r i c e s - Common stock p r i c e s , as measured by Standard
and Poor's index of 500 s t o c k s , advanced f u r t h e r l a s t week, c l o s i n g a t
kSc02 on June 13. P r i c e s are now l b per cent higher than the December
1957 low and 8 per cent below the July 1957 high.
I n s t i t u t i o n a l i n v e s t o r s - In A p r i l , d e p o s i t s a t mutual s a v ings banks and savings c a p i t a l a t savings and loan a s s o c i a t i o n s continued t o increase more rapidly than a year e a r l i e r , while the i n c r e a se
i n l i f e insurance company assets, was smaller. Over t h e f i r s t four
months of t h i s year, savings i n f l o w f o r the three major f i n a n c i a l i n s t i t u t i o n s combined was o n e - f i f t h greater than i n the corresponding
period of 1957» Mutual savings banks showed the l a r g e s t increase i n
t h i s period, with a deposit growth f o u r - f i f t h s greater than i n the corresponding months of 1957. Savings and loan share c a p i t a l increased
one-fourth more than l a s t y e a r , while l i f e insurance company a s s e t s
increased only 2 per cent more rapidly.
The pattern of l i f e insurance company new investments has
shown l i t t l e change t h i s year from t h a t of 1957, as t h e s e companies
have continued t o increase t h e i r n e t a c q u i s i t i o n s of business s e c u r i t i e s
whereas net a c q u i s i t i o n s of mortgages have been smaller than l a s t year.
Mutual savings banks have continued t o make large purchases of business,
s e c u r i t i e s . Last year, rapid growth of bond p o r t f o l i o s was accompanied
by reduced expansion of mortgage holdings. This year, the r i s i n g i n flow of d e p o s i t s has permitted expansion i n mortgage a c q u i s i t i o n s as
w e l l as i n bond purchases. The increase i n funds of savings and loan
a s s o c i a t i o n s i n v e s t e d i n mortgages continues t o be s l i g h t l y l e s s than
i n the corresponding period l a s t year; savings and loan a s s o c i a t i o n s
have, on balance, added more t o cash and U. S. Government s e c u r i t y
balances and repaid more debt than in e a r l y 1957.
The increase i n l i f e insurance company a s s e t s i n April amounted
t o $332 m i l l i o n , o n e - f i f t h l e s s than a year e a r l i e r . Net a c q u i s i t i o n s
of U0 S. Government s e c u r i t i e s were about the same a s i n April 1957.
The increase i n holdings of business s e c u r i t i e s was o n e - f i f t h l a r g e r ,
while the increase i n mortgage holdings was one-third l e s s than l a s t year.
Savings c a p i t a l a t savings and loan a s s o c i a t i o n s increased
$363 m i l l i o n , $50 m i l l i o n more than i n April 1957. The increase i n holdi n g s of U, S. Government s e c u r i t i e s and mortgage? was about the same as
a year e a r l i e r . These a s s o c i a t i o n s borrowed h e a v i l y from the home Loan
Banks in A p r i l , i n contrast to l a r g e repayment e a r l i e r i n the year. The
new borrowing was under a new program permitting borrowing by savings
and loan a s s o c i a t i o n s on a 5-year non-amortized b a s i s a t 3 1 / b - 3 1/2
per cent of up to 5 per cent of share c a p i t a l , i n addition t o the previous
borrowing l i m i t of 12 1 / 2 per cent o f share c a p i t a l . This was r e f l e c t e d
primarily i n an increase i n cash balances i n A p r i l .




H.1U

- 3 -

. The growth i n d e p o s i t s a t mutual savings banks was $93 m i l l i o n
i n A p r i l , compared w i t h an i n c r e a s e o f o n l y $7 m i l l i o n l a s t A p r i l . Net
l i q u i d a t i o n of U. S. Government s e c u r i t i e s was about t h e same as a year
e a r l i e r . Net purchases of both b u s i n e s s s e c u r i t i e s and mortgages were
g r e a t e r t h i s y e a r than l a s t , t h e former o n e - h a l f more and the l a t t e r onef o u r t h largero
More d e t a i l e d information concerning r e c e n t c a p i t a l market
developments i s p r e s e n t e d i n t h e a t t a c h e d e x h i b i t s .

C a p i t a l Markets S e c t i o n ,
D i v i s i o n of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




EXHIBIT A

HIGH-GRADE B O N D YIELDS

AY

LOWER - GRADE B O N D YIELDS

!.y\l
1
\—




H.Ik

Exhibit B
Tables f o r Exhibit A
High-grade Bond Y i e l d s
U. S. Govt.
long-term 2 /

Corporate
Aaa 1 /

Date

S t a t e and
local govt.
Aaa y

Spread between
U. S. Govt, and
Corporate State and
Aaa
l o c a l Aaa

(Per cent)
1953
1954
1957
1958

-

3.U2 (6/19)
2 . 8 5 (4/23)
lull* ( 9 / 2 7 )

High
Low
High
High '
Low

May 16
May 23
May 30
June 6
June 13 2 /

3.57
3.57

3.19
2.45
3.76
3.28
3.07

(6/5)
(8/6)
(10/18)
(1/31)
(1/25) .

(6/25)
(9/2)
(8/29)
(1/9)
(5/1)

2.71
2.71
2.71
2.72
2.72

3.15
3.13
3.13
3.11
3.15

i

2.73
1.90
3.45
2.86
2.64

.38

.83
.30

.51
.28

.62
.34

.42

:8

.47

.44
.44

.42
.42
.13

.42
.41

Lower-grade Bond Yields
Corporate
Baa 1 /

Bate

S t a t e and
l o c a l govt.
Baa y

Spread between
Aaa and Baa
S t a t e and
Corporate
l o c a l govt.

(Per cent)
1953
1954
1957
1958

-

May 16
May 23
May 30
June 6
June 13

High
Low
High
High
Low

2/

-

3.89
3.44
5.10
4.96
4.55
4.62
4.-62
4.60
4.58
4.55

(9/18)
(12/31)
(11/29)
(1/3)
(6/13)

. 3.79 ( 6 / 2 5 )
2.93 ( 8 / 5 )
4.51(8/29)
3.92 ( 1 / 2 )
- 3.64 ( 5 / 1 )
3.76
3.76
3.76
3.76
3.76

.69
.52
1.27
1.28
.99

1.21
.96
1.21
1.11
.99

1.05
1.05
1.03
1.02
.99

1.05
1.05
1.05
1.04
1.04

2 / Preliminary.
1 / Weekly average of d a i l y f i g u r e s . Average terra of bonds included i s 25-26 y e a r s .
2 / Weekly a-verage of d a i l y "figures. The s e r i e s includes bonds due or c a l l a b l e i n
10 y e a r s or more.
2 / Thursday f i g u r e s . Only general o b l i g a t i o n s bonds are included; avurape term
i s 20 years.
Note.—Highs and lows are f o r individual s e r i e s and may be on d i f f e r e n t dates f o r
different series.




STOCK MARKET

-nzrtzrrtirlrriz: ±

1953

1954




1955

^TVOIUME
i : "t - j

1956

I

p

1957

1958

1
Exhibit D
Stock' Market

Date

Stock p r i c e
index 1 /

Common
Trading
volume 2 /
stock
(millions
yields 3/
(per
cent)
of shares)

Stock market customer c r e d i t
Customers'
Bank
debit bal- loans to
ances 4 / "others" 5 /

Total

( M i l l i o n s of d o l l a r s )
1953 - High
Low
1954 - High
Low
1955 - High
"Low
1956; - High
Low
1957 - High
Low
1958 - High '
Low

26.51
22.95
35.98
24.93
15.69
35.28
49.64
U3.22
19.08
39.W
45.02
40.37

April
May
May 30
June 6
June 13 £ /

13.70
44. 09
16.64
45.02

(1/2)
(9/10)
(12/31)
(1/8)
(12/9)
(1/14)
(6/3)
(1/20)
(7/12)
(12/20)
(6/13)
(1/10)

h2.3h

~~

2.5
0.9
3.7
1.4
4.6
1.5
3.1
1.5
4.2
1.4
2.8
1.7

6.25
5.38
5.02
4.32
4.42
3.64
4.35
3.82
4.72
3.91
4.58
4.05

2,455
2,055
3,436
2,405
4,030
3,537
4,047
3,914
4,031
3,576
4,069
3,#4

1,665
1,314
2,388
1,653
2,805
2,517
2,823
2,740
2,887
2,482
2,856
2,487

780
664
1,048
746
1,241
1,018
1,267
1,155
1,163
1,054
1,245
1,051

2.4
2.6
2.3
2.7
2.6

4.33
4.17
4.14
4.09
4.05

3,980
4,069

2,735
2,856

n.a.

n.a.

1,245
1,213
1,213
1,220
n.a.

.

n . a . —Not a v a i l a b l e .
g / Preliminary.
1 / Standard and Poor's composite index of 500 common s t o c k s , weekly c l o s i n g
p r i c e s , 1941-43=10. Monthly data are averages of d a i l y f i g u r e s rather than of
Fridays' only. Highs and lows are f o r F r i d a y ' s data o n l y .
2 / Averages of d a i l y trading volume on t h e New York Stock Exchange.
3 / Standard and Poor's composite stock y i e l d based on Wednesday data conv e r t e d t o weekly c l o s i n g p r i c e s by Federal Reserve.
4/. End of month f i g u r e s f o r member firms of the Mew York Stock Exchange which
carry margin accounts; excludes balances secured by U. S. Government o b l i g a t i o n s .
5 / Wednesday f i g u r e s f o r weekly r e p o r t i n g member banks. Excludes loans f o r
purchasing or carrying U. S. Government s e c u r i t i e s a t banks in New York and
Chicago. Weekly reporting banks account f o r about 70 per cent of loans t o o t h e r s .
For f u r t h e r d e t a i l s e e B u l l e t i n .
Note.—Highs and lows are f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t d a t e s
for different series.




Exhibit E
Long-term Corporate and State and Local Government
S e c u r i t y O f f e r i n g s and Placements
( I n m i l l i o n s of d o l l a r s )

1958
January
February
March

New c a p i t a l
Corporate 1 /
S t a t e and l o c a l 2 /
1
1956
1
1956
1958
1
1957
1
1957

723

1,060
1,065
1,320.

573
712
817

812
953
511

742
572
506

404 •
696
390

£/l,12U
e/70O
e/900

931
765
1,453

818
1,146
841

795
E/856
e/550

765
546
393

378
490
735

July
August
September

1,003
921;
973

1,063
654
838

529
584
431

408
206
357

October
November
December

1,090
789
1,076

J g y

698
633
698

639
347
409

3,135
e/2,724

3,445
3,119
2,899
2,954

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

2,276
e/2,201

1,820
1,704
1,544
2,029

1,490
1,603
971
1,395

e/5,859

6,59k
9,493
12,447

7(463
10,384

e/4,477

3,524
5,069
7,099

3,093
4,064
5,459

April
May
June

1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

1,088

Excluding f i n a n c e companies %/
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

2,89k
e/2,674

Year

3,237
2,889
2,582
2,810
11,518

I S

2,246
2,826

9,260

1/ S e c u r i t i e s and Exchange Commission e s t i m a t e s of n e t proceeds.
2 / Data through June 19$6 are Bond Buyer data c l a s s i f i e d as new c a p i t a l by
Federal Reserve; l a t e r data are from the Investment Bankers A s s o c i a t i o n of America
and are somewhat more complete as t o coverage than t h e e a r l i e r data, p a r t i c u l a r l y
f o r Federal Government l o a n s .
3 / Includes $718.3 m i l l i o n AT&T c o n v e r t i b l e debenture i s s u e .
V Includes 8 5 7 1 . 5 m i l l i o n AT&T common stock i s s u e .
jy T o t a l new c a p i t a l i s s u e s excluding o f f e r i n g s of s a l e s and consumer f i n a n c e
companies.




Exhibit F

H.lii

Other S e c u r i t y O f f e r i n g s 1 /
( I n m i l l i o n s of d o l l a r s )
g-term

Federal agency 3 /
1958
I
1957
1

Foreign government 2/
1956
195b
1957
1
January
February
March

196
53

81*
1*9
30

~8

April
May
June

139

123
1*8
1*2

95

37

72

523

125

50

July
August
. September

28
7
30

2
39

October
November
December

1*
60
1

1*1*
5
21

Year

1,163
251

507

233
1*60
E/271

326
1*55
11*7

60

109
215

300

-

-

60

Short-term
S t a t e and l o c a l government 1*/
January
February
March

1956

100

"

572

169

Federal agency 3 /

196
357
21*9

371
208
11*1*

638
1*30
505

380
.220
283

209

336
1*69
501

323
311*
260

April '
May
June

205
337
153

125
252
176

July,
August
September

272
272
252

195
207
179

221*
370
512

222
1*25
273

October
November
December

303
9b
1*59

29b
328
U*8

1,238
255
116

1*07
222
128

3,27k

2,706

5,51*3

Year

3>57

e / Estimated.
jg/ Preliminary.
1/ Data presented i n t h i s e x h i b i t d i f f e r from t h o s e i n E x h i b i t E i n t h a t r e f u n d ing i s s u e s , a s w e l l a s new c a p i t a l i s s u e s , are included. Long-term s e c u r i t i e s are d e f i n e d a s t h o s e maturing i n more than one y e a r .
2 / I n c l u d e s s e c u r i t i e s o f f e r e d i n t h e United S t a t e s by f o r e i g n governments and
t h e i r s u b d i v i s i o n s and by i n t e r n a t i o n a l o r g a n i z a t i o n s . Source: S e c u r i t i e s and Exchange Commission.
jj/ I s s u e s not guaranteed by t h e U. S. Government. Source: l o n g - t e r m , S e c u r i t i e s
and Exchange Commission; short-term, Federal Reserve.
b/ P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , warrants or c e r t i f i c a t e s and P ublic
 n o t e s . In some i n s t a n c e s PHA n o t e s i n c l u d e d may have a somewhat
Housing'Authority
l
o
n
g
e
r
term than one y e a r . Source: Bond Buyer.
http://fraser.stlouisfed.org/

Federal Reserve Bank of St. Louis

H.1U

Exhibit G
Large Long-tern Public Security I s s u e s f o r New Capital
(Other than U. 5. Treasuiy) 1 /
Proceeds of Large I s s u e s Offered
( M i l l i o n s of d o l l a r s )

Month

Corporate

1957 - May

S t a t e and
l o c a l government

176
81 .
221+
2#
133
393
3U4
I0I4
Uio
#3
182
300
• 505

329
677
525
#6
537
57h
U20
#9
318
6#
1,093
725
3#

July
August
September
October
November
December
1958 - January
February
March
April
May

Other 2 /

25
99
25
215
75
100
1,378
266
#3
165

Large I n d i v i d u a l I s s u e s Offered June 1 through 13

Issuer

Type y

Coupon
Amount
Offering
(millions
Matwity
net i n t e r - y i e l d
of
e
s
t
c
o
s
t
. dollar:;)

Rating

-

CORPORATE
Consolidated Edison Co.
l s t . r e f .mtr>btis. 50.0
Texas Eastern Trans. Corp.
Pfd. s t k .
15.0
S.I-. deb.
O w e n s - I l l i n o i s Glass Co.
31.7
V i r g i n i a Elec. & Pwr. Co. Lst r e f .mtg.bds. 25.0
Niagara Ilohawk Pwr. Corp.
Gen. mtg. bds. 5 0 . 0

1908

L

3.85

Aa •

1988 1988
1988

3 3/h
3 7/8
3 7/8

3.72
3.82
3.80

Aa
Aa

3. a

3.10

A

1.50

3ea

STATE AND LOCAL GOVERNMENT'
Port of New York Authority
Tulsa Mun. Airport Trust,
Oklahoma
OTHER
None
n.a.—Not available.




Rev.-Ut.

35.0

1988/68

Rev.-Ut.

20.5

1983/59

G-2

1 / I n c l u d e s corporate and other s e c u r i t y o f f e r i n g s o f $15 m i l l i o n and over;
S t a t e and l o c a l government s e c u r i t y o f f e r i n g s of $10 m i l l i o n and over.
2 / I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed' i s s u e s by Federal a g e n c i e s .
3 / In the c a s e of S t a t e and l o c a l government s e c u r i t i e s , G.O., denotes general
o b l i g a t i o n s ; R e v . - U t . , revenue o b l i g a t i o n s secured only by income from p u b l i c
u t i l i t i e s ; R e v . - Q . U t . , revenue bonds secured only by revenue of q u a s i - u t i l i t i e s ;
R e v . - S . T . , revenue bonds secured by revenue from s p e c i f i c t a x e s only; R e v . - R e n t . ,
revenue bonds secured s o l e l y by l e a s e payments.




Exhibit H

H.lb

forthcoming Large Long-term Public S e c u r i t y O f f e r i n g s f o r New Capital
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
Date of
computation

1957 - May 31
June 28
July 31
Aug. 30
Sept. 30
Oct. 31
Nov. 29
Dec. 31
1958 - Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 29

Subsequent to
date shown

During month f o l l o w i n g
date shown
| S t a t e and
Corporate
I l o c a l g o v t . Jother 2 /
525
370
526
57%
576
li58
383
378
198
1,123
555
356
2#

87
153
218
183
334
339
363
345
370
13k
298
193
177

25
30
30
18
. 150
110
150
36

|ioc:i%Z.
525
415
811
81,5
6U7
815
1,193
1,101
1,378
1,20b.
O70
561
464

'

107
179
171
379
551
543
558
5bh
487
341
330
193
208

Other 2/

25
30
15
45
63
165
110
150
36

Forthcoming Large O f f e r i n g s , as of June 13
Approximate date
of o f f e r i n g

Oklahoma Gas & E l e c t r i c Co.
Mountain Fuel Supply Co.
P a c i f i c Power & Light Co.
W i l s o n & Co.
United Gas Corp.
Standard Oil Co. of C a l i f o r n i a
Florida Power Corp.
^Martin Co.
P a c i f i c Gas & E l e c t r i c Co.
New England Telephone & Telegraph Co.

1 s t mtg. bds.
Deb.
1 s t mtg. bds.
S.F. deb.
S.F. deb.
Deb.
1 s t mtg. bds.
S . f . deb.
Common s t k .

15.0
16.0
20.0
15.0
40.0
150.0
25.0
25.0
20.0

Common s t k .

22.6

S.F. deb.
<Southern Natural Gas Co.
Deb., bds, & common
Commerce Oil Refining Corp.
1 s t mtg. b d s . Natural Gas P i p e l i n e Co. of America
S.F. deb.
Consolidated Natural Gas Co.
|




30.0
45.0

4o.o
45.0

June 17
June 19
June 25
June 25
June 26
June 26
July 2
July 3
July 8
( r i g h t s e x pir e )
July 11
( r i g h t s e x pir e )
July 11
1958
l f /58
lS6h

H.lh
Forthcoming Large O f f e r i n g s , a s of June 13 (Cont'd)
•Type

Amount
Approximate date
(millions
of o f f e r i n g
of d o l l a r s )

STATE AND LOCAL GOVERNMENT
S t a t e of New York
S t a t e of Minnesota
Milwaukee, Wisconsin
State of Texas
Maryland State Roads Commission
^Pennsylvania General S t a t e Auth.
S t a t e of Ohio '
*San Diego U n i f . Sch. D i s t . , C a l i f .

G.O*
G.O.
G.O.
G.O.
G.O.
Rev.-Ut.
Rev.-S.T.
G.O.

h9»0
. 35.0
17.8
12.5
25.0
30.0
31.0
. 10.0

June 17
June 17
June 17
June 18
June 2h
July 9
July 22
Sept. 10

OTHER
Metropolitan Toronto, Canada
High Authority of European Coal &
S t e e l Community
High Authority of European Coal &
S t e e l Community

S.F. deb.

35.8

June 19

Bonds

25.0

June 26

Notes

15.0

June 26

*—included i n t a b l e f o r f i r s t timq.
1 / Includes corporate and o t h e r i s s u e s of $15 m i l l i o n and over; S t a t e and
l o c a l government i s s u e s of $10 m i l l i o n and over.
2 / Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal a g e n c i e s .
Note.—Deletions f o r reasons other than s a l e of i s s u e : None.




H.lU

Exhibit I
Y i e l d s on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /

Bate

1952 - 1957
High
Low
1958 - January
February
March it
5
6
12
19
21
25
April 1
2
17
23
29
May 7
13
15
16
20
21
22
28
June 9

A-rated o f f e r i n g y i e l d s
Aa-rated o f f e r i n g y i e l d s
Amount above
Amount above
Actual
Actual
seasoned y i e l d s
seasoned y i e l d s
(per cent)
(per cent)
(basis points)
(basis points)

5.00(8/lV57)
2.93(3/31/5U)

87
-3

*3.60 .
3.892/

-8
22

U.15
1.22

Loo

it. 00

Wt
50
28
26

5.50(11/7/57)
3.00(3/17/51)
3.962/
it. 07
it.25

it.07

it. 05
3.98
it. 00

31
23

3.75

5

3.90

21

3.85
3.85

16
16

3.85

17

25

123
-15
3
9
6

-7

3.98

5

it. Oit
it.00

11
3

it. 35

lt.07

h
32

it.00
3.95

-1
-6

*—Single observation, not an average.
1 / Covers only 30-year f i r s t mortgage bonds, as reported i n Moody's Bond
Survey. Except where i n d i c a t e d , the a c t u a l y i e l d f i g u r e and the amount above
seasoned y i e l d s are averages of o f f e r i n g s during the i n d i c a t e d period and of t h e
d i f f e r e n c e s between t h e s e new o f f e r i n g y i e l d s and y i e l d s on seasoned i s s u e s of
s i m i l a r q u a l i t y f o r t h e same day. Average maturity f o r the seasoned i s s u e s v a r i e s
from 26 t o 28 y e a r s .
2 / Provides f o r a 5-year period during which i s s u e may not be c a l l e d f o r
refunding at a lower coupon r a t e . Monthly averages so marked i n c l u d e one or more
i s s u e s with such a p r o v i s i o n . Other i s s u e s have no such p r o v i s i o n .




Exhibit J
Sources and Uses o f Funds by L i f e
Insurance Companies
Monthly
( I n m i l l i o n s of d o l l a r s )

U. S.
Govt.
ities
1956 - Apr.
• May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of A s s e t s
a t End of Year
1957 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of A s s e t s
a t End o f Year

27
19
-9
16
-29
11
16
16
166

1*0
-99
-66
-36
-109
2k
k7
-101
-226

Uses of Funds 1 /
S t a t e and
Busilocal
govt,
securities
ities
116
153
106
297
11*2
' 71
108
98
208

-11*
8
kk
16
5
h
12
6

Mortgages

.

Other

269
31*0
293
329
282
215
289
307
288

8
55
65
56
109
93
-1
73
115

1,273

7,519

39,552

2,231*

32,99h

12,272

-132
-38
-1*7
2l*
-22
60
-5
-30
JU5
-16
U
138

69
-Mi
-117
3
-90
-70
36
-38
-1*1*
9
-98
-185

172
160
192
165
165
172
i*ii*
15k
188
237
202
252

10

33
10
7
12
10
13

285
200
193
168
182
137
197
191
150
162
127
21*1*

68
11*1*
108
la
119
72
91
82
92
8
118
-16

12,025

• 2,375

1,26k

6,950

7
13
26

35,230

13,199

Total
sources
or uses

1*60
1*51*
397
706
1*11
1*19
1*63
1*05
557
95,81*1*

1*72
1*22
336
1*11*
380
371
766
369
1*38
1*12
373
1*1*6
101,01*3

180
629
195& - Jan.
163
21k
123
1*3
-9k
""""
Feb.
11
8
11*8
328
119
-57
99
-122
Mar.
19
271 .
22.
61
131*
385
-18
Apr.
202
12
110
7
19
332
May
June
1 / Uses of funds r e p r e s e n t n e t changes i n a s s e t s and t h e r e f o r e r e f l e c t neb,
r a t h e r than g r o s s , u s e s .
Source: I n s t i t u t e of L i f e Insurance.




Exhibit K

H.1U

S o u r c e s and Uses o f Funds
by S a v i n g s and Loan A s s o c i a t i o n s
Monthly
(In m i l l i o n s of d o l l a r s )
Uses o f Funds 1 /
U.S.
Govt. MortCash
gages
ities
1956 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of A s s e t s
a t End of Year
19572/- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value o f A s s e t s
a t End o f Year
1958^" Jan.
Feb.
Mar.
Apr.
May

-62
12
122

55
1*3
-31*
31*
39
13
11*
25
11

178
-96
-1*3
36
58
102
2,119

1*08
1*36 "
1*1*0
1*11*
1*1*7
351*
356
271*
232

Other
assets

88
127
12
-81*
9
51*
68
81
-21

2,782

35,729

2,199

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

200
266
361*
1*01*
1*58
1*65
391*
1*63
363
1*26
303

-21*

-172
-1*0
-23
-I48
38
167
-320
-106
8
-21
81*
1*39

281*

a

112
11*1
1*1
-100

59
55

91*
69
22

Total
sources
or uses

S o u r c e s o f Funds
Net
Borrowchange
Other
savings
ing 2/
capital

1*88
617
539
186
398
377
1*73
1*37
523

319
1*62
769
11*2
287
267
1*05
377
822

1*2,875

11*5
399
515
1*97
65b
651
11*
1*38
1*51
1*88

81

171*
157
-281*
103
95
82
66
60
-380

37,11*8

1,31*7

1*,380

336
315
359
313

-215

1*68

859
-68
252
321*
367
399

-5
-2
51*
-59
16
28
2

-70
-21
11*
19
106
-31*

S

21*

151*
177
170

167
-3U*
116

11*7
80

103
66

966

18
8
123

-1*11*

2,11*1*

3,169

1*0,119

2,809

1*8,275

1*2,038

1,381

1*,856

-121
175
209
117

1*6
-20
-3
37

216
251*
31*1*
1*00

7
13
11
108

11*8
1*22
561
662

1*53
381*
1*91
363

-377
-127
-89
112

72
165
159
187

2 / Preliminary.
1 / U s e s o f f u n d s r e p r e s e n t n e t changes i n a s s e t s and t h e r e f o r e r e f l e c t n e t ,
r a t h e r t h a n g r o s s , u s e s . S a v i n g s and l o a n a s s o c i a t i o n s do n o t h o l d b u s i n e s s s e c u r i t i e s and d a t a on h o l d i n g s o f S t a t e and l o c a l government bonds, presumed t o be s m a l l ,
are not a v a i l a b l e .
2 / Advances from Home Loan Banks and o t h e r borrowings
S o u r c e : F e d e r a l S a v i n g s and Loan I n s u r a n c e C o r p o r a t i o n .




Exhibit L

H.lU '

Sources and Uses of Funds by
Mutual Savings Banks
Monthly
( I n m i l l i o n s of d o l l a r s )

Cash

U.S.
Govt.
ities

1956 - Apr.
May
July
Aug.
Sept.
Oct,
. Nov.
Dec.

-56
-2
89
-63
-19

-33

-22
IliO

Value of A s s e t s ! 9 2 0
a t End of Year!
1957 - Jan. *
Feb.
Mar.
Apr.
/
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec.

-89
13
-56
12
71
-73
-i|2
27
-2lt
6
125

2
19
k$
3l
2
Ik
13
-7
5

-52
-1*2
-90
-7
-17
-37
-lb7
-78
-10
7,971

,#3

21
20
18
-76
-19
-72
-7
11
-17
-136
-136
-26

68
5k
83
63
62
72
62
61
55
60
93
75

Value of A s s e t s 890
a t End of Year

7,552

-61
63
36
-k7

20
-21
la
-85

1 9 5 8 . - Jan.
Feb.
Mar. •
Apr.
MayJune

Uses of Funds 1 /
State anc
Total
l o c a l MortBusiness
govt. gages Other s o u r c e s
or u s e s
ities
ities

4,331

r/

1I18
86
86
97

-3
-5
1
2
-5
-5
l
8

183
19k
183
198
227
186
205
175
II46

669 19,529
6
1

.

2
. 2
-1
7
-3
2 •
-3
7
-7

136
92
127
121
127
118
122
111
103
12U
100
na

682 20,951
19
14
r/ 6
k

120
99
165
151;

5
62
-32
-2li
16
25
-15 53
-U2

79
226
190

139

181
183
18
122
2h7

Sources of Funds
Net
changes
in
deposits

Other

15
162
278
76
102
159
62
50

3k
6k
-88
63
79
.24

-a

#9

72
152

698 3 3 , 3 1 1

30,032

3,279

137
19U
273
3ii
216
150
82
166
188
-20
108
299

85
112
238
7
169
265
16
90
206
3k
36
U05

52
82
,35
27
77
-115
66
76
-18
Sk
72
-106

-5
27
32
-20
62
-38
-29
28
18
-111
38
-9

761 35,168

31,695

255
251
3ii3
9k

228
lh9
336
93

9
20
9
-29

3 , to
27
102
7
1

1 / Uses of funds represent n e t changes i n a s s e t s and t h e r e f o r e r e f l e c t n e t ,
r a t h e r than g r o s s , u s e s .
Source: N a t i o n a l A s s o c i a t i o n of Mutual Savings Banks and Federal Deposit
Insurance Corporation.