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N °t. f o r P u b l i c a t i o n DECONTROLLED AFTER SIX MOIITHS H.lli September 28, 1959. CAPITAL MARKET DEVELOPMENTS (Including Monthly Review of Sources and Uses of Funds of F i n a n c i a l Intermediaries) The volume of l a r g e public s e c u r i t y f i n a n c i n g f o r new c a p i t a l t h i s week i s expected to be somewhat l a r g e r , p a r t i c u l a r l y f o r corporate s e c u r i t i e s , than i n recent weeks. During the week ending September 25, one l a r g e corporate i s s u e f o r $^5 m i l l i o n was o f f e r e d and two State and l o c a l government i s s u e s with aggregate proceeds of $56 m i l l i o n were s o l d . Another S t a t e and l o c a l government i s s u e — Port of New York A u t h o r i t y ' s $25 m i l l i o n revenue bond i s s u e — had been o r i g i n a l l y scheduled f o r s a l e l a s t week. The Authority r e j e c t e d the only bid o f f e r e d and postponed i n d e f i n i t e l y the s a l e of t h e i s s u e l a r g e l y because of a l e g a l a c t i o n taken a g a i n s t the Authority t h e previous day. mixed local local bonds Bond y i e l d s - Changes i n y i e l d s on outstanding bonds were l a s t week. Yields on corporate bonds and high-grade S t a t e and government bonds rose f u r t h e r ; those on lower grade S t a t e and government bonds remained s t a b l e ; and those on U. S. Government declined somewhat. Mortgage and bond y i e l d s - Discounts reported by Federal Housing Administration f i e l d o f f i c e s on 5 1/1; per cent FHA-insured new-home mortgages a v a i l a b l e f o r immediate d e l i v e r y i n the secondary market rose f u r t h e r i n August and the implied gross y i e l d increased 5 b a s i s p o i n t s t o 5,80 per c e n t . Since y i e l d s on new o f f e r i n g s of high-grade corporate bonds declined somewhat i n August, the spread between bond and mortgage y i e l d s increased to 106 b a s i s p o i n t s . Last week, the Federal Housing Administration announced an i n c r e a s e i n the a d m i n i s t r a t i v e c e i l i n g on c o n t r a c t u a l i n t e r e s t r a t e s on FHA-insured mortgages on a l l one- t o f o u r - f a m i l y home programs from 5 l / U p e r cent t o 5 3/h p e r cent e f f e c t i v e immediately. October s e c u r i t y volume - New corporate s e c u r i t y o f f e r i n g s during October a r e expected to t o t a l $800 m i l l i o n , nearly one-fourth l a r g e r than in September, but f s l i g h t l y smaller than i n October 1958. Large p u b l i c l y - o f f e r e d i s s u e s a r e expected t o t o t a l over $300 m i l l i o n . State and l o c a l government bond s a l e s i n October a r e c u r r e n t l y estimated a t $600 m i l l i o n . This volume would be one-seventh more than the volume t h i s month and o n e - t h i r d more than i n October l a s t year. — 2 — Stock p r i c e s - Stock p r i c e s f l u c t u a t e d widely l a s t week, but on balance increased f o r the f i r s t time in f o u r weeks. Standard and P o o r ' s index of 500 common stocks closed a t 56.73 on September 25, one p e r cent higher than a week e a r l i e r . Trading a c t i v i t y increased sharply, averaging 3-2 i.J.llion shares a day. This i s the l a r g e s t volume since e a r l y July. I n s t i t u t i o n a l i n v e s t o r s - In J u l y , savings i n f l o w a t l i f e i n s u r ance companies and savings and loan a s s o c i a t i o n s was l a r g e r than a year e a r l i e r , while deposits a t mutual s avings banks declined i n c o n t r a s t t o a small increase l a s t y e a r . This i s similar t o the p a t t e r n of savings inflow a t t h e s e i n s t i t u t i o n s in most recent months. For t h e f i r s t seven months of 1959 combined, l i f e insurance company a s s e t s increased oneseventh more rapidly than i n t h e corresponding period of 1958, share c a p i t a l a t savings and l o a n a s s o c i a t i o n s o n e - s i x t h more r a p i d l y ; howe v e r , the growth in d ep o s i t s a t mutual savings banks has been t w o - f i f t h s smaller. The increase i n l i f e insurance company a s s e t s i n July amounted to $7 28 m i l l i o n , more than o n e - f o u r t h g r e a t e r than i n July 1958. The s u b s t a n t i a l l y increased inflow of savings t h i s July was r e f l e c t e d i n l a r g e r a c q u i s i t i o n s of a l l types of investments, except U. S. Government bonds. Net a c q u i s i t i o n of Federal o b l i g a t i o n s was s l i g h t i n c o n t r a s t to a l a r g e increase l a s t July. The increase i n mortgage holdings was more than twice as l a r g e as a year e a r l i e r , while t h e i n c r e a s e i n b u s i ness s e c u r i t y p o r t f o l i o s was n e a r l y o n e - f i f t h l a r g e r . Net a c q u i s i t i o n s of S t a t e and l o c a l government bonds continued to be l a r g e in July t o t a l ing n e a r l y $100 m i l l i o n , nearly f o u r times more than a year e a r l i e r . 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 $190 m i l l i o n , t h r e e times a s much a s in July 1958. The increase in FHLB advances was smaller than i n past r e c e n t months; however, t h e s e a s s o c i a t i o n s often repay borrowing i n J u l y . The volume of mortgage a c q u i s i t i o n s continued t o be much l a r g e r than a year e a r l i e r with t h e July i n c r e a s e being nearly one-half l a r g e r than l a s t y e a r . Net a c q u i s i t i o n s of U. S. Government s e c u r i t i e s increased v e i y s u b s t a n t i a l l y compared with a moderate i n c r e a s e in July 1958. Total deposits a t mutual savings banks declined $54 m i l l i o n during July i n c o n t r a s t t o a deposit gain of $88 million a y e a r e a r l i e r . (Savings inflow to these banks i s seasonally small i n J u l y . ) Business s e c u r i t y p o r t f o l i o s declined f u r t h e r i n J u l y ; in July 1958 they had increased somewhat, holdings of mortgages i n c r e a s e d , but s l i g h t l y l e s s zap i d l y than a year e a r l i e r . More d e t a i l e d information concerning recent c a p i t a l market developments i s presented in t h e a t t a c h e d e x h i b i t s . Capital Markets Section, Division of Research and S t a t i s t i c s , Board of Governors of t h e Federal Reserve System. HIGH-GRADE BOND YIELDS COBPOBATE Aee STATE A N D 1 0 C A I GOVERNMENT * o a LOWER-GRADE BOND YIELDS COBPOBATE AND LOCAL Bee GOVT. H.llt Exhibit b Tables f o r Exhibit A lligh-grade Bond Yields Date U. S. Govt, long-term 2/ Corporate Aaa 1/ Spread between U. S. Govt, and Corporate S t a t e and Aaa l o c a l Aaa S t a t e and l o c a l govt. Aaa y (Per cent) 1954 - Low 1957 - High 1958 - High Low 1959 - High Low 2.85 4.14 4.13 3-55 4.54 L.09 (4/23) (9/27) (10/10) (5/2) (9/25) (1/9) Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 2 / 4.44 4.47 4.49 4.52 4.54 2.45 3.76 3.84 3.07 4.30 3.83 (8/6) (10/18) (12/26) (4/25) (9/18) (1/2) 4.15 4.24 4.25 4.30 4.27 1.90 3.45 3.31 2.64 3.65 3.06 (9/2) (8/29) (9/11) (5/1) (9/24) (3/26) 3.44 3.52 3.59 3.63 3.65 .30 .60 .51 .22 •39 .16 .30 .47 .72 .34 .92 .57 .29 .23 .24 .22 .27 .71 • 72 .66 .67 .62 Lower-grade Bond Yields Date Corporate Baa 1 / S t a t e and l o c a l govt. Baa y 3.44 5.10 4.96 4.51 5.22 4.83 2.93(8/5) 4.51 (0/29) 4.34 (9/11) 3,64 (5/1) 4.46 (7/2) 3.92 (3/26) Spread between Aaa and Baa S t a t e and Corporate l o c a l govt. (Per cent) 1954 - Low 1957 - High 1958 - H i g h Low 1959 - High Low Aug. 28 Sept. 4 Sept. 11 Sept. 18 Sept. 25 2 / / 5.11 5.13 5.15 5.18 5.22 (12/31) (11/29) (1/3) (7/11) (9/25) (4/17) 4.35 4.38 4.41 4.44 4.44 .52 1.27 1.28 .77 .77 .56 .67 .66 .65 .66 .68 . .96 1.21 1.11 .93 .98 .79 .91 .86 .82 .81 .79 g / Prelimihaiy. 1 / Weekly average of d a i l y f i g u r e s . Average t e r n of bonds included i s 25-26 y e a r s . \ 2 / Weekly average of daily f i g u r e s . The s e r i e s includes bonds due or c a l l a b l e in 10 years or more. 1 J / Thursday f i g u r e s . Only general obligation bonds a r e included3 average term | i s 20 y e a r s . Note.—liiphs and lows a r e 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 dates f o r /5 Digitized d i ffor f e rFRASER ent series. d STOCK MARKET *< 1156 MORTGAGE 1157 AND BOND YIELDS 1951 1959 Exhibit D - Tables l o r Exhibit C Stock Market Date Stock price index 1/ 1953-1958 - High Low 1959 - High Low 5i4.ll 22.95 60.51 5L37 July August Sept. 4 Sept. 11 Sept. 18 Sept. 25 £ / 59.71* 59.W 58.54 57.41 56,09 56.73 Trading Coiiunon stock volume 2 / yields 2/ (millions (per cent) of shares) (12/2V58) (9/18/53) (7/31) (2/6) Stock market customer c r e d i t Customers1 Bank debit b a l - loans to ances 4 / "others" 5 / (Mil] ions of do!Liars) Total 3.30 6.25 3.08 3.34 4.9 0.9 4.3 2.1 i»,te2 2,055 It,721 It,528 3,285 1,314 3,388 3,253 3.12 3.13 3.18 3.24 3.32 3.28 3.2 2.4 2.3 2.8 2.4 3.2 It,61.8 It,529 n.a. n.a. n.a. n.a. 3,374 3,270 n.a. n.a. n.a. 1,317 669 1,332 1,210 1,274 1,259 1,273 1,251 1,21(0 n.a. n.a.--Not available. g/ Preliminary. 1 / Standard and P o o r ' s r»mposlte Index of 500. oomnon s t o c k s , weekly c l o s i n g p r i c e s , 1941-43=10, Monthly d a t a a r e a v e r a g e s of d a i l y f i g u r e s r a t h e r t h a n of F r i d a y s ' o n l y . Highs and lows a r e f o r F r i d a y s ' d a t a o n l y . 2 / Standard and P o o r ' s composite s t o c k y i e l d based on Wednesday d a t a c o n v e r t e d t o weekly c l o s i n g p r i c e s by F e d e r a l R e s e r v e . Y i e l d s shown a r e f o r d a l e s on which p r i c e index reached I t s filgh or low. 3 / Averages of d a i l y t r a d i n g volume on t h e New York Stock Exchange. 4 / End of month f i g u r e s f o r member f i r m s of t h e New York Stock Exchange which c a r r y margin a c c o u n t s , e x c l u d e s b a l a n c e s 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 l o a n s f o r p u r c h a s i n g or c a r r y i n g U, S. Government s e c u r i t i e s • P r i o r t o J u l y 1 , 1959, such l o a n s a r e excluded only a t banks In New York and Chicago. Weekly r e p o r t i n g hanks account f o r about 70 p a r c e n t of loan* t o o t h e r s . For f u r t h e r d e t a i l sea B u l l e t i n . Mortgage and Bond Yields 1/ FHA mortgages 2/ Spread between now Aaa corporate corporate bonds and bonds 1 / New 3/ | Seasoned k/|FHA mortf/aftesl Seasoned bonds 1953-1958 - High Low 1959 - High Low 5.63 (11/57) It. 56 ( 2/55) 5.80 5.57 4.12 (9/57 2.74 (3/51*) 2.85 (4/54) 4.47 It. 82 1.12 1.29 1959 - May June JulyAugust 5.61 m til , 5.80 4 / Hooc^y's I n v e s t o r s S e r v i c e . Monthly 4.81 ii.82 4.80 U.7U U.37 4.46 4.47 4.43 a v e r t s of d a l l y d a t a . See E x h i b i t 1.96 .5U 1.29 .83 .90 -.12 .44 .15 .83 .89 •95 .a .36 .33 .31 1.06 1 Exhibit E H.Ik Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) ISW New c a p i t a l Corporate 1/ 195b r / T i n - 1959 state and local 2/ I 1958 I 1957" January February March 8k0 7 1*5 631 728 857v 1,553^/ 1,060 1,065 1,320 el 645 812 953 5U $ April May June 899 791 871* l,ll|0 297 887 765 1,1*53 931 592 981 798 895 551 i s 393 1,107 i ® e/650 1,003 1,111* 973 92k 567 E/U98 e/525 806 U03 651 529 581* 1*31 862 518 920 1,090 e/600 1*56 1*71* 1*35 698 633 698 July August September e/800 October November December 1st 2nd 3rd j*th quarter quarter quarter quarter 1 s t half Three quarters Year 2,216 - e/1,975 , 4780 e/6,755 Sko 3,139 2,623 2,760 2,300 5,762 8,522 10,823 789 1,076 3,1*1*5 3,U9 2,899 2,951,. 2,138 2,50li fe/1,590 6,59k 9,193 4,61*2 e/6,232 12,W 2,276 2,2iiU 1,860 1,365 It,520 71*2 1,820 1,701* i,51<lt 2,029 3,521* 5,069 7,099 Excluding finance companies k/ 1st 2nd 3rd Lth quarter quarter quarter quarter 2,011 2,L09 e/1,675 Year 2,899 2,5% 2,731 2,213 2,810 10,129 11,518 3,237 2,889 2,582 e/ Estimated. jo/ Preliminary. r/ Revised, . 1 / Securities and Exchange Commission estimates of net, proceeds, 2/ Investment Bankers Association of America estimates of principal amounts, 3/ Includes $718,3 million AT&T convertible debenture issue, k j Total new capital issues excluding offerings of sales and consumer finance companies. Exhibit F Other Security Offerings 1 / ( I n m i l l i o n s of d o l l a r s ) Foreign government 2/ "1959 I 1956 ' January February March 77 59 2 196 53 April May 56 50 1*2 139 198 120 July August September 71* — 9 5 17 October November December 58 123 74 Year 992 Long-term "19^9 1,163 251 72 123 1*8 1+2 523 125 28 7 30 161* 1* 60 1 220 81* 1*9 30 199 175 60 215 April May July August September 572 Federal agency 3/ 190 U28 295 233 1*60 273 326 1*55 11*7 359 500 1*89 371 208 11*1* 638 1*30 505 563 1*11 2U5 • 357 351* 261* 205 337 153 1*86 675 289 209 161 329 336 1*69 501 2l*6 289 727 365 1*37 206 330 221* 370 512 1*51* 111* 137 1,238 255 116 2/1*62 October November December Year 100 2,321 507 Short-1 S t a t e and l o c a l government h/ January February March Federal agency 3T~ 1957 19J8 ^ 212 369 272 252 U5 21*3 1*59 3,910 3,271* % 3,098 5,51*3 e / Estimated. g / Preliminary. 1 / Data presented in t h i s exhibit d i f f e r ' f r o m those in Exhibit E in t h a t refunding i s s u e s , as well as 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 def i n e d as those maturing i n more than one year. 2/ Includes s e c u r i t i e s o f f e r e d i n the United S t a t e s by foreign governments and t h e i r subdivisions and by i n t e r n a t i o n a l organizations. Sources S e c u r i t i e s and Exchange Commission. 3 / Issues not guaranteed by the U. S. Government. Source: long-term, S e c u r i t i e s and Exchange Commission; short-term, Federal Reserve. h/ 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 notes, warrants or c e r t i f i c a t e s and Public DigitizedHousing for FRASER Authority n o t e s . In some instances PtiA notes included may have a somewhat http://fraser.stlouisfed.org/ longer term than one year. Source: Bond, Buyer. Federal Reserve Bank of St. Louis I 1 Exhibit 0 H.lti Large Long-term Public Security Issues f o r New Capital (Other than U. S. Treasuxy) 1 / Proceeds of Large Issues Offered (Millions of d o l l a r s ) Corporate Month 1958 - August September October November December 1959 - January February March April May June July August State and l o c a l government 209 825 259 227 305 3 69 340 215 359 342 284 110 363 • Other 2/ 109 288 172 259 229 335 551 369 563 258 635 194 263 18 209 100 79 174 35 176 20 50 60 5o 98 Large Individual Issues Offered September 1 through 25 Issuer Type 3/ Amount Coupon Offering (millions rate or Maturity net i n t e r - y i e l d of est post dollars) Rating CORPORATE Associates Investment Co. Deb. Georgia Power Co. 1 s t mtg. bds. New England Tel. & Tel. Co. Deb. 50.0 18.0 1*5.0 1979 1989 199k 12.5 22.5 1960-79 1961-87 5 1/8 5.13 5.65 5.63 A Aa 3.88 3.73 2.75-1.00 2.60-3.75 Aa Aaa 4.24 Aa A 5 3/k STATE AND LOCAL GOVERNMENT Los Angeles, C a l i f o r n i a G.O. State of Connecticut G.O. Allegheny Co.San.Dist., Pa. Serial Rev.-Ut. Tern Rev.-Ut. State of California G.O, Cook Co., I l l i n o i s G.O. Orange Co. Flood Control I D i s t . , California | G.O. 7.5 1961-81 7.5 1996/65 50.0 1961-85/80 44.0 1960-77 h.00 3.00-4.00 it. 30 3. oo-l*. 00 3.10-4.00 12.0 2*. 11 3.15-1+. 2 5 ^ Aa 1962-96 4.01 Ho 11; G-2 Large I n d i v i d u a l Issues Offered September 1 through 25 (Cont'd) Type 3/ Coupon Amount r a t e or O f f e r i n g Rating ( m i l l i o n s Maturity net inter- yield of e s t cost dollars) OTHER Fed. Nat. Mtg. Assoc. Commonwealth of A u s t r a l i a Deb. Ext. deb. 150.0 25.0 1961 1979 5 1/8 5 1/2 5.26 5.75 A n.a.—Not a v a i l a b l e . 1 / Includes corporate and other s e c u r i t y o f f e r i n g s of $15 million 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 4>10 million and oyer. 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 agencies. 3( In t h e case 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 ; Rev.-Ut., 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 ; Rev.-Q.Ut., revenue bonds secured only by revenue from q u a s i - u t i l i t i e s ; Rev.-S.T., revenue bonds secured by revenue from s p e c i f i c t a x e s only; Rev.-Rent., revenue bonds secured s o l e l y by l e a s e payments. h / I s of 1995 and 1996 not r e o f f e r e d . M H.Ill Exhibit H Forthcoming Large Long-term Public Security Offerings, 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 Airing month following Subsequent t o date shown date shown S t a t e and Corporate Other 2/ Corporate S tate and Other 2/ l o c a l govt. l o c a l govt. 1958 - Aug. 29 Sept. 30 Oct. 31 Nov. 28 Dec. 31 1959 - Jan. 30 Feb. 27 Mar. 31 Apr. 30 May 29 June 30 July 31 Aug. 31 785 113 20k 301 210 270 198 396 21*6 287 165 238 198 21*1 295 258 229 261 551 292 550 254 21*7 11*6 356 385 71 75 1*5 20 50 50 25 1*35 521* 675 683 515 856 1*81 761 517 761 500 1*06 1*02 91k 216 326 1*01 370 365 279 1*76 31*6 332 272 305 517 71 75 1*5 20 50 50 25 Forthcoming Large O f f e r i n g s , as of September 25 Issuer Type Amount Approximate date (millions of o f f e r i n g of d o l l a r s ) CORPORA'IE Southern C a l i f o r n i a Gas Co. Hooker Chemical Corp. Union E l e c t r i c Co. Boston Edison Co. Southern New England Telephone Co. Columbia Gas System, I n c . •Boston Edison Co. 1 s t mtg. bds. Conv. deb. 30.0 2l*.l* Com. s t k . 31.1 1 s t mtg. bds. Com. s t k . 15.0 18.8 Deb. Com. s t k . 25.0 15.1* •Philadelphia E l e c t r i c Co. 1 s t r e f . mtg. bds. 50.0 •Northern Natural Gas Co. Pfd. s t k . 20.0 Deb. •Southern B e l l Telephone & Telegraph 70.0 American E l e c t r i c Power Com. s t k . 60.0 •Puget Sound Power & Light Co. 1 s t mtg. bds. 20.0 • C e n t r a l & South West Corp. Com. s t k . 15.0 American Telephone and Telegraph Co. Deb. 250.0 Commerce Oil Refining Corp. Deb., bds. & com. 1*5.0 S.F< deb. Sylvania E l e c t r i c Products, I n c . 25.0 Sept. 30 Sept. 30 ( r i g h t s expire) Sept. 30 ( r i g h t s expire) Oct. 1 Oct. 9 ( r i g h t s expire) Oct. 9 Oct. 13 ( r i g h t s expire) Oct. 15 Oct. 16 Oct. 21 Oct. 23 Oct. 29 Oct. 30 Nov. 17 Indefinite Indefinite H-2 h.lli Forthcoming Large O f f e r i n g s , as of September 25 (Cont'd) Amount Approximate date (millions j of d o l l a r s ) ] of o f f e r i n g STATE AND LOCAL GOVERNMENT Indianapolis-Marion Go., Inc. Oakland Unif. Sch. H i s t . , C a l i f . D e t r o i t , Michigan S t a t e of M i s s i s s i p p i *Wayne Co., Mich. Denver, Colorado *New York, New York S t a t e of New Hampshire *Public Housing A u t h o r i t i e s -*Los Angeles Flood Control D i s t . , California ^Baltimore Co., Md. Columbus, Ohio Chesapeake Bay Ferry Commission Port of New York Authority G.O. G.O. G.O. Rev.-Ut. G.O. G.O. G.O. G.O. G.O. 32.0 10.0 15.9 12.0 26.0 17.0 18.0 16.0 102.1 Sept. 29 Sept. 29 Sept. 29 Sept. 30 Oct. 6 Oct. lit Oct. 15 Oct. 15 Oct. 20 G.O. G.O. G.O. Rev.-Ut. Rev.—Ut. 21.2 20.0 10.0 190.0 25.0 Oct. 27 Oct. 28 Dec. 1 Indefinite Indefinite OTHER None Included in t a b l e f o r f i r s t time. 1 / Includes corporate and o t h e r i s s u e s of $L5 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 foreign 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 agencies. Note.—Deletions f o r reasons o t h e r than s a l e of i s s u e : None. Exhibit I H.Ik Yields on New and Outstanding E l e c t r i c Power Bonds, Rated Aa and A 1 / Date 1952 - 1958 High Low 5.00 (9/14/57) 2.93 ( 3 / 3 1 / 5 4 ) 1959 - Jan. 7 20 28 Feb. 18 Mar. 11 4.60 It 3 lt.U3 1U3 g 1..60 31 Apr. 3 May 1 Aa-rated offering yields A-rated offering yields Amount above Amount above Actual Actual (per c e n t ) seasoned yields (per cent) seasoned yields (basis points) (basis points) 29 Ik 20 21 26 June 1* 17 26 July 9 10 15 30 Aug. 5 20 Sept. 18 if# 87 -3 $ 5.50 (11/7/57) 3.00 (3/17/54) 4.75%/ 23 4.67 18 4.85 5.06 17 13 5.13 27 4.92^/ 5.10 5.10 24 19 11 9 9 13 22 21 7 4.95 4.95 34 5.oo 4.95 38 29 4.93 31 4.85 4.80 24 123 -15 6 5.10 5.00 19 13 5.65 60 22 *—Single observation, not an average. 1 / Covers only 30-year f i r s t mortgage bonds, a s 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 the d i f f e r e n c e s between these new o f f e r i n g y i e l d s and y i e l d s tin 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 the same dqy. Average maturity f o r t h e seasoned i s s u e s v a r i e s from 26 t o 28 years. „ 2 / Provides f o r a 5-year period during which issud may not be c a l l e d f o r . refunding a t a lower coupon r a t e . Monthly averages so marked include 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 . 2 / Provides f o r a 7 - y e a r period during which i s s u e may not be c a l l e d f o r refunding a t a lower coupon r a t e . Exhibit J 11. Ill Sources and Uses of iunds by L i f e Insurance Companies ( I n m i l l i o n s of d o l l a r s ) Uses of Funds l / U. S. 1 LiusiState and l o c a l govt, MortGovt, | nees gages secur- I secursecurities 1 ities ities Cash 1957 - July Aug. Sept. Oct. Nov. Dec. Value of Assets a t End of Year 1958 - Jan. teb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. Value of Assets a t End of Year 1959 - Jan. Feb. Mar. Apr. May July Aug. Sept. . - Other -9 -30 hi -17 22 138 5 -32 -32 13 -92 -181 32k 163 198 2kh 212 258 lit 11 7 13 10 10 163 195 151 170 132 237 87 77 93 6 110 7 1,29k -7,028 12,133 2,377 35,271 13,206 -93 -51 20 -17 7h 171 15 -1.19 13. -70 U7 175 k2 7 12 25 -139 51 10 23 13 28 35 2k 36 19 25 31 13 191 125 Iho 113 116 10k 123 1U0 139 186 lk6 303 111 liiii 60 19 167 liiO -20 20 -17 -1 -19 52 123 221 106 277 208 135 191 102 128 201 303 133 _3?Jl_ 1,365 7,205 Im,6l5 2,685 37,097 -83 -57 -lit -2k 10 3 -15 280 -71 -185 22 -16 11 13 185 223 251 2L2 193 2L2 21k 59 30 66 h9 79 23 9h Ilk 139 136 116 135 157 279 Total sources or uses 38k 167 12939 U 1*69 i|6 lit7 71 53 100 185 lk,k$2 • 171 17k 108 80 97 60 lh3 726 438 362 !i85 1I98 1*96 728 1 / Uses of 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 than gross, us es . Source: I n s t i t u t e of L i f e I n s u r a n c e . Exhibit K Sources and Uses of Funds t y Savings and Loan Associations (In millions of dollars) Uses of Funds 1 / U. S. MortGovt. Cash gages 2/ ities July Aug. Sept. Oct. Nov. Dec. Value of Assets at End of Year 19582/ - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Value of Assets at End of Year 19599/ Jan. Feb. Mar. Apr. May June July Aug. Sept. -320 -103 11 -18 86 431 41 24 26 -5 23 -65 2,1# -94 59 56 87 60 -5 3,173 4 0 , 2 , 7 7 0 44 Sources of Funds Net change BorrowOther savings IngJ/ capital 34 440 450 480 447 614 -52 252 "324 361 378 923 -37 37 47 16 10 125 •8 79 103 59 48,138 41,912 1,379 4,847 131 409 553 654 679 803 450 373 484 356 508 937 6o? 685 735 661 353 440 5oi 477 1,073 -377 -127 -89 113 -32 169 -39 58 163 158 185 203 -303 173 199 160 176 143 -425 1 582 533 1 465 532 42 131 102 -44 3,821 45,599 3,125 55,114 47,926 1,451 5,737 410 427 593 704 750 840 779 -53 80 92 153 181 6 -92 353 578 765 780 982 1,090 348 434 408 529 420 604 1,090 190 -181 -57 -5 98 63 313 31 100 227 241 262 315 -313 127 -19 194 247 -1 38 13 81 40 111 147 107 50 37 44 338 2,569 Total sources or uses 12 8 10 102 100 -37 -80 -119 173 209 116 38 177 -297 -70 -78 -108 -300 -26 1 -183 28 249 -444 407 460 357 416 278 253 Other . 296 97 79 106 23 -5 105 62 85 £ 215 I ^ Preliminary. 1 / Uses of funds represent net changes i n a s s e t s and therefore r e f l e c t n e t , rather than>gross, uses. Savings and loan associations do not hold business securi t i e s and data on holdings of State and l o c a l government bonds, presumed to be small, are not available. 2 / 1957 data adjusted to include mortgage pledged shares as currently reported. 3/ Advances from Home Loan Banks and other borrowing. Source: Federal Savings and Loan Insurance Corporation. Exhibit L Sources and Uses of Funds by Mutual Savings Banks ( I n m i l l i o n s of d o l l a r s ) 1 ICMl ities Uses of Funds 1/ S t a t e and local Mortgovt. gages Other nil Cash U. S. Govt. Sources of Funds Total sources or uses ities Net change in deposits Other 1957 - July Aug. Sept. Oct. Nov. Dec. -73 -42 27 -24 6 125 -7 11 -17 -136 -136 -26 62 61 55 60 93 75 7 -3 2 -3 7 -7 122 111 103 124 100 l4l -29 28 18 -ill 38 -9 82 166 188 -20 108 299 16 90 206 34 36 405 72 -I06 Value of Assets a t End of Year 890 7,552 4,331 682 20,951 761 35,168 31,695 3,473 160 86 86 97 120 -24 34 8 34 -6 130 99 165 154 195 253 193 198 181 195 151 174 25 20 9 -29 4o 5 -28 29 29 -46 43 -3 278 251 343 94 269 264 152 251 237 4o 123 309 234 149 336 93 181 300 88 143 267 95 42 418 44 102 7 1 88 -36 64 108 -30 -55 81 -109 1958 - Jan. Feb. Mar. Apr. Kay July Aug. Sept. Oct. Nov. Dec. Value of Assets a t End of Year 1959 - Jan.-2/ Feb. Mar. Apr. May July Aug. Sept. -60 63 36 -47 -5 42 -66 -5 18 ; -6 -38 66 76 -18 -54 47 23 4 6 4 -19 24 8 2 2 -3 -1 -7 921 7,266 4,973 725 23,039 855 37,779 34,041 3,738 119 39 62 -44 13 -85 -13 -16 6 -31 58 -20 17 -4 41 -33 10 19 4 208 125 175 155 161 145 179 -58 32 38 -32 45 39 -12 175 216 330 -10 217 161 32 122 113 313 6 120 202 -54 53 103 17 -16 97 -4l 86 ; 101 -96 18 45 -114 8 43 -79 -21 41 -85 -62 -36 11 19 -27 -92 -32 -2 -47 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 , uses, 2/ Includes Canadian government and p o l i t i c a l subdivisions, I n t e r n a t i o n a l Bank f o r Reconstruction and Development, non-guaranteed Federal agency and other bonds as v e i l as corporate bonds and stocks. 2 / Adjusted t o eliminate the e f f e c t of a consolidation of a large savings bank with a commercial bank. Digitized forSource.—Nat. FRASER Assoc. of Mutual Savings Banks and Federal Deposit Insurance Corp.
@FedFRASER