Full text of H.16 Capital Market Developments : October 15, 1962

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Not for Publication DECONTROLLED AFTER SIX MONTHS
October 15, 1962.
OCT 17

#62.

CAPITALJMAB0MEVELOPMENTS
THE UNITED STATES

paJERAL RESERVE BANK
OF RiCHMotiEncluding Review of Sources and Uses of Funds of Financial
"
'
Intermediaries during August)
The volume of public security financing to obtain new capital
was l i g h t l a s t week but i s expected to be substantial t h i s week. During
the week ending October 12, only one large corporate security i s s u e - - a
$16 million expiring rights offer--and two State and local government
bond issues with par value of $45 million were sold. This week, ending
October 19, three large corporate issues totaling $151 million are
scheduled for o f f e r i n g , three State and local issues amounting to $86
million are on the calendar, and the Commonwealth of Australia i s expected
to o f f e r $25 millio n in bonds.
Bond y i e l d s . Yields on seasoned, long-term bonds either declined
further l a s t week or were stable. Yields on both Aaa- and Baa-rated
corporate bonds dropped a basis point and, at 4.28 and 4.99 per cent, were
within a single basis point of their lows for the year, while Aaa-rated
State and local government bond y i e l d s also f e l l one basis point to 2.99
per cent, 7 basis points above their May low. Yields on both U. S.
Government and Baa-rated municipal bonds were stable.
Short- and intermediate-term i n t e r e s t rates. Yields on 6-month
Treasury b i l l s f e l l 3 basis points further l a s t week, while rates on
3-month b i l l s and 3-5 year U. S. Government obligations rose one and
two basis points, respectively. The average rate of i n t e r e s t on d i r e c t l y placed finance company paper with 90-179 day maturity f e l l 18 basis points
to 3.02 per cent, largely as the result of a reduction in the advertised
rate on such paper from 3-1/8 to 3 per cent announced by a l l major finance
companies early l a s t week. The average e f f e c t i v e rate on Federal funds
declined 20 basis points to 2.75 per cent. Other short- and intermediateterm i n t e r e s t rates were unchanged.
FNMA secondary market operations. Mortgage purchases by the
Federal National Mortgage Association in the secondary market rose
moderately in August a f t e r eight consecutive months of decline. The l e v e l
of $29.6 million was about the same as that of l a s t June and substantially
below a year ago when purchases were expanding f a i r l y sharply. Offerings
also turned up in August but were well below year-earlier l e v e l s . Sales
by. FNMA dropped sharply further and, at $6.3 m i l l i o n , were the lowest
since the s ta r t of the year and l e s s than purchases for the f i r s t time
since March.
Stock prices. Common stock prices, as measured by Standard
and Poor's composite index of 500 stocks, were off s l i g h t l y on balance
l a s t week, closing at 56.95 on October 12. The average daily volume of
trading f e l l to i t s lowest level t h i s year, averaging 2 . 4 m i l l i o n shares,
0 . 4 m illio n shares below the previous low of a week e a r l i e r .




Institutional investors. The net inflow of savings during August
to three major types of financial intermediaries—life insurance companies,
savings and loan associations and mutual savings banks--totaled $1.5
b i l l i o n , one-third more than a year e a r l i e r . All three types of i n s t i t u t i o n s
had a substantially larger inflow than a year e a r l i e r with mutual savings
banks experiencing the sharpest r e l a t i v e increase. (Time and savings deposits
at commercial banks rose $1.0 b i l l i o n in August, about t w o - f i f t h s more than
a year e a r l i e r . )
Assets of l i f e insurance companies rose $0.6 b i l l i o n in August,
14 per cent more than a year e a r l i e r . Holdings of business s e c u r i t i e s
increased over $0.2 b i l l i o n , almost one-sixth more than in August 1961;
the expansion in holdings of long-term bonds and stocks ($213 million) was
one-fourth l e s s than l a s t year, but net acquisitions of commercial and
finance company paper amounted to $30 m i l l i o n , in contrast to net s a l e s of
$74 million l a s t year. Net acquisitions of mortgages totaled over $0.2
b i l l i o n , more than t w o - f i f t h s greater than a year e a r l i e r and the largest
August increase since 1956. Holdings of cash and U. S. Government s e c u r i t i e s
f e l l $50 million, sharply more than l a s t August.
Savings capital at savings and loan associations increased $0.7
b i l l i o n in August, 35 per cent more than l a s t year, as new savings capital
rose more than withdrawals. Mortgage holdings rose $1.0 b i l l i o n , a record
for the month and 5 4>er cent more than in August 1961. These associations
supplemented their savings flow, as they had a year e a r l i e r , by reducing
their holdings of cash and U. S. Government s e c u r i t i e s ($47 million) and
increasing their borrowings ($92 m i l l i o n ) .
Deposits at mutual savings banks were up $0.2 b i l l i o n in August,
over twice l a s t year's expansion, as an increase in new deposits was
accompanied by a small decline in withdrawals. Mortgage holdings rose a
record $0.3 b i l l i o n , one-half more than a year e a r l i e r . Holdings of cash
and U. S. Government s e c u r i t i e s were reduced s l i g h t l y as they had been
in August 1961.
More detailed information concerning recent capital market
developments i s presented in the attached exhibits.

Capital Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




E X H I B I T A. P o r t I
LONG-TERM

BOND

YIELDS,

HIGH-GRADE

f

Exhibit A - P a r t I I

1
1
1
i

|

1I
J
i

Date

Corporate
Aaa 1 /

U. S. Govt.
long-term 2 /

State and .
local
government
Aaa 3 /

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

(per cent)
1957 - High
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - High
Low
Sept. 14
Sept. 21
Sept. 28
Oct. 5
/ O c t . 12 2 /
Note:

It.lit
3.55
It. 61
it. 21
k.h6
4.43
4.27

(9/27)
(5/2)
(3/29/60)
(3/17/61
(9/15)
(2/16)
(5/25)

4.32
4.31
4.31
4.29 x
4.28^

3.76
3.07
it.it2
3.70
It.07
4.12
3.85
3.95
3.94
3.93
3.90
3.90

For footnotes see Exhibit B.




(10/18)
(4/25)
(2/8/60)
(5/12/61)
(12/29)
(2/23)
(5/11)

3.1t5 (8/29)
2.66(5/1)
3.65 (9/24/59)
2.99 (9/1/60)
3.37 (7/6)
3.26 (1/4)
2.92 (5/3)
3.02
. 3.01
3.00
3.00
2.99

.60
.22
.59
.19
.57
.47
.29
.37
.37
.38
.39
.38

.50
.31
•?2
.U6
.76
1.08
.80
'

.93
.93
.93
.90
.91

LONG-TERM

BOND

YIELDS,

LOWER-GRADE

CORPORATE B

1959

1960

Exhibit B - Part II

Date

Coip o r a t e
Baa 1 /

1

S t a t s and
local, g o v t .
Baa 3 /

Spread between
Aaa and Baa
S t a t e and
Corporate
local govt.

(per cent)
1957 - High
1958 - Low
1 9 5 9 - 6 0 - High
1 9 6 0 - 6 1 Low
1961 - High
1962 - High
Low
S e p t . 14
S e p t . 21
S e p t . 28
Oct. 5
Oct. 12 j>/

5-10

(U/29)

It.SL

(7/11)

k . 5 1 (8/29)
3.61 ( 5 / 1 )

5.36

(2/12/60)

U.I16

1.27
.77
.81
.66
.81

(1/7/60)

1.21
• 93
1.08
.57
.93
.82

U.98

(9/9/60)

3.93

(11/9/61)

5.13

(10/27)

It.16

(3/23)

5.11

(1/5)

4.04 (1/11)

.74

4.98 (6/1)

3.52

.63

.56

5.03

3.66

.71

.64

5.03

3.66

5.02
5.00

4.99

.

-

(5/17)

-

.72

.65

3.65

.71

.65

3.65

.71

.65

3.65

.71

. 66

p / Preliminary,
jJ Weekly average of daily figures. Average term of bonds included in 23-26 years.
2 / Weekly average of daily f i g u r e s . The series includes bonds due or callable in 10 years or r
3 / Thursday figures. Only general obligation bonds are included; average tern i s 20 years.
Note.-—Highs and lows are f o r individual series and may be on different dates for different
Digitized
for sFRASER
e r i e s . For spreads, high refers to widest, and low to narrowest.



EXHIBIT C, Pari I
SHORT-

AND

INTERMEDIATE-

TERM INTEREST

RATES, G O V E R N M E N T

Wt.ity

t • MONTH I I U S

3 - $ YIAI ISSUES

I . D I S C O U N T KATE

1_L_LL1-L11_U

J..U21_1.LUJ.J._UJ..I I.L.LU I 1.1 .; I I 113 .1 I 1.1 H i 1 1 1 I I I I I I. 1 I
IISI

I960

1961

1962

Exhibit C - Part I I
Date

I 1957
1958
195919&).
1961
1962

- High
- Low
60 - H
61 Low
- High
- High
Low

S e p t . 14
S e p t . 21
S e p t . 28
Oct. 5
/ O c t . 12 jj/

Discount
rate
1/

3-month
b i l l s 2/

3.00
3.00

3.61*
.58
4.59
2.11
2.66
2.97
2.65

3.00
3.00
3.00
3.00
3.00

2.78
2.77
2.75
2.75 /
2.76/

3.50
1.75
it. 00

3.00
3.00

(10/16)
(5/29 )
(1/8/60)
(10/26/60)
(12/29)
(7/13)
(6/8)

1/
2/

Yields
6-month
b i l l s 2/
(per cent)

3-5 year
issues 2/

—
3.02
5.07
2.35
2.90
3.13
2,74

V-OU (10/18)
2 . 1 k (6/6)
5 . 0 0 (12/24/59)
3 . 1 5 (5/12/61)
3.66(8/11)
(2/2)
3.88
3.43 (4/6)

2.93
2.93
2.90
2.89
2.86

(12/26 )
(1/8/60)
(4/28/61)
(12/29 )
(7/20)
(6/8)

3.59
. 3.57
3.51
3.44
3.46

Spread between y i e l d s on 3 raonth b i l l s and y i e l d s on
6-tno. b i l l s 13-5 y r . i s s u e s "

.26
.79

.12

.86
.OU

1.81

M
.24
.06

.38
1.51
1.19
.69

.15
.16
.15
.14
.10

.81
.80
.76
.69
.70

Weekly rate shown la that in e f f e c t at end. of period at the Federal Reserve Bank of New York.
Market y i e l d ) 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 f o r individual series and may be on d i f f e r e n t dates for d i f f e r e n t s e r i e s .
For spreads, high refers to widest, and low t o narrowest.




EXHIBIT D, Port I
SHORTBANKS

AND
AND

INTERMEDIATE-TERM
OTHER

INTEREST

RATES,

PRIVATE BORROWERS

E x h i b i t D - Part I I
Date

Stock Exchange
c a l l loan 1 /

Prime
rate 1 /

Finance company
paper 2 /

Federal
funds 3 /

Spread between
3-mo. b i l l s and \
f i n a n c e Co. o a o e W

(per cent)
1957 - High
1958 - Low
1 9 5 9 - 6 0 - High
1 9 6 0 - 6 1 Low
1 9 6 1 - High
1962 - High
Low
S e p t . 14
S e p t . 21
S e p t . 28
Oct. 5
Oct. 12 j>/

U.50
3.50
5.50
U.50
L5o
4.50
4.50

It. 50
3.50
5.00
L50
lt.50
4.50
4.10

3.88
1.13
5.13
2.50
3.00
3.25
2.88

4.50
4.50
4.50.
4.50
4.50

4.50
4.50
4.50
4.50
4.50

3.13
3.13
3.13
3.20
3.02

J7

(11/15)
(8/8)
(1/22/60)
(8/5/61)
(12/29)
(7/20)
(6/1)

3 . 5 0 (11/8)
.13(5/29)
U.00 (5/13/60)
.1*3 (1/27/61)
2 . 8 8 (12/29)
3.00 (9/14)
1.30 (1/26)
3.00
2.75
2.85
2.95
2.75

.63
1.02
.11
.56
.45
.19

.

.

.35
.36
.38
.45
.26

Weekly rate shown i s that in e f f e c t at end of period. Stock Exchange c a l l loan rate i s going rate
on c a l l loans secured by customers' stock exchange c o l l a t e r a l at New York City banks. Prime rate
i s that charged by large banks on short-term loans to business borrowers* of the highest credit
standing.
2 / Average of daily rates published by finance conqpanies for directly placed paper for varying maturities
in the 90-179 day range.
3 / Weekly average of daily e f f e c t i v e rate, which i s the rate for the heaviest volume of purchase and
s a l e transactions as reported to the Federal Reserve Bank of New York.
Note.—Highs and lows are for individual s e r i e s and may be on different dates for different s e r i e s .
Digitized
for For
FRASER
spreads, high refers to widest, and low to narrowest.



/:

E X H I B I T E. P m l

I

2 5 n.

ol

Dollars

/ -

'«vv.v.H'7'

• % . CHA 1 N G E I N S E R I E S
Million,

of

^xrl
!

VOIUME

YIELDS
- w
1 1 1 1 I I 1 1 I I 1 M1 I N I M U M

M

II II 1 1 1A h

1159
.19*0
E x h i b i t £ - Part I I

Date

1 9 6 0 - 6 1 - High
Low
1962 - High
Low
August
September
S e p t . 28.
Oct. 5
Oct. 12 2 /

Stock p r i c e
index 1 /

72.01*
53.32
70.94
52.68

(13/8/61)
(10/21/60)
(3/16)
(6/22)

58.52
58.00
56.27
57.07
56.95

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

Stock market customer c r e d i t
Customers 1
Bank
Total debit b a l - loans t o
a n c e s k / " o t h e r s " SL
( I n m i l l i o n s of d o l l a r s )

2.82
3.62
2.93
3.96

5.8
2.2
10.1
2.4

5,602
k,H2
5,491
4,876

(12/61)14,259
(5/60) 3 , 0 0 4
(4) 4,111
(7) 3,562

3.57
3.60
3.71
3.66
3.68

3.3
3.3
3.7
2.8
2.4

5,049

3,749

(12/61)
(7/60)
(1)
(7)

1,377
1,121
1,418
1,269

(8/30/61)
(5/25/60)
(5/9)
(9/26)

1,300
1,288
r/1,269
1,270

n.a.—Not available.
jyPreliminary*
,
'
3 / Standard and Poor's composite index of 500 common stocks, weekly d o s i n g prices, 1941-43•10.
Monthly data are averages of dally figures rather than of Friday's only. Highs and lows are for
Friday's data only,
y
Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing
prices by Federal Reserve. Yields shown are f o r dates on which price index reached i t s high

%

Averages of daily trading volume on the New York Stock Exchange.
End of month figures for member firms of the New York Stock Exchange which carry margin accountss
excludes balances secured by U. S. Government obligations.
Wednesday figures f o r weekly reporting member banks. Excludes loans f o r purchasing or carrying
U. S, Government s e c u r i t i e s . Prior t o July 1, 1959., such loans are excluded only at banks in
New York.and Chicago. Weekly reporting banks account f o r about 70 per cent of loans to others.
For further d e t a i l see B u l l e t i n .




EXHIBIT F, Por» I
FEDERAL

NATIONAL

SECONDARY

MORTGAGE

ASSOCIATION 1/

M A ROCHET O P E R A T I O N S

Millions eI dollo

1957

19S8

1959

Exhibit F - Part I I
Date

1961 - Aug.
Sept.
Oct.
Nov.
Dec.
1962 - J a n .
Feb.
Mar.
Apr.
May
July
Aug.

E s t i m a t e d o f f e r i n g s t o FNMA.
Purchases
Immediate
Standbyby
p u r c h a s e commitment
FNMA
( I n m i l ] Lions of doJLiars)

Total

111.2
122.9
154.2
141.4
120.0
118.3
82.5
68.6
51.1
40.3
33.0
29.0
40.8

108.0
119.3
150.9
138.5
117.7
116.6
80.8
66.3
50.0
38.8
31.7
27.9
39.9

3.2
3.6
3.3
2.9
2.3
1.7
1.7
2.3
1.1
1.5
1.3
. 1.1
1.0

52.7
60.4
92.4
112.3
107.2
104.7
89.0
81.6
51.5
42.0
29.0
21.9
29.6

Sales
by
FNMA.

2.4
10.5
1.8
2.7
2.4
1.4
7.3
75.9
105.7
64.0
56.3
38.5
6.3

2 / Data represent unpaid principal balances of the mortgages involved, exclusive of
premiums, discounts, o r other charges. Offerings are amounts of applications received
during the period from s e l l e r s proposing that FNMA execute purchasing contracts. An
immediate purchase contract covers existing mortgages which the s e l l e r must deliver to
FNMA. within 45 days. A standby ooomitment contract relates t o proposed mortgages on
housing not y e t under construction which the s e l l e r must usually d e l i v e r within one
year. Purchases include those under both inroediate purchases and standby commitment
contracts. Data exclude FNMA a c t i v i t y under Special Assistance and Management and
Liquidating Programs,
FRASER

Digitized for


H.lit

Exhibit G
Yields on New Corporate Bond Issues Adjusted to an Aaa Basis
Number
of issues
included
Monthly averages:
1962 - January
February
March
April
May
June
July
August
September
October
November
December
Weekly averages:
1962 - January 5
12
19
26
February 2
9
16
23
March 2
9
16
23
30
April 6
13
20
27
May 1|
11
18
25
June 1

8

Note:

h
5
6
7
7
12
6
11
3

Amount
of issues Average
yield
included
(per
(millions
of dollars) cent)
130.0
39k. 5
2U0.0
299.0
li;8.0
368.0
litl.O
379.3
66.9

hchS
L50
it.23
1.17
1.09
it. 15
bo 33
1.30
4.13

1

60.0

it,50

3

70.0

it.itO

——
2

1
1
1
1
1
2

2
2
2
2
2
2
2
2

I
1
3

——

——

Number
of issues
included

June 15
22
29
July 6
13
20
27 .
August 3
10
17
2k
31
September 7
lit
21
28
October 5
12
19

19.5
300 = 0
50.o
25.0
30.0
65.0
60.0
85.0
98.0
26.0
100.0

26
It.itO
It. 52* November 2
it.50
9
16
it. 37
23
it. 29
it.23
30
it. 21 December 7
it. 22
lit
21
it.21
28 |
it.12
it, 17*

115.0
28,0
ia.o
39.0
17.0
115.0

it. lit
It. 21*
it. 02
it. 07
it.06
it.2it*

Amount
of issues
included
(millions
of dollars)

Average
yield
(per
cent)

it
3
1

67.0
iit5.o
2U.0

it.12
it.11
it. 19

1
3
1
k
2
3
2
1
1
1

50.0
1+6.0
20.0
107.3
H5.0
70.0
52.0
60.0
12.0
50.0

lt«l+5*
I t . 26
it. 33*
it.3it*
it. 1+3*
it.2i+
It. 17
it. 20
it.lit
it.13

1
1

4.9
75.0

4.05

4,16

Averages of offering y i e l d s on a l l new issues of publ:i c l y sold bonds rated Aaa, Aa

offerings of natural gas pipelines and foreign companies, and issues guaranteed by the
Federal Government) weighted by size of issues. Yields on Aa- and A-rated bonds are
f i r s t adjusted to an Aaa basis, using the comparable spreads in y i e l d s on seasoned bonds
(Moody's averages). Averages r e f l e c t changes in industrial,composition, type, maturity,
and c a l l provisions of new offerings. Weekly averages considered unusually unreliable
as indicators of interest rates on new issues because of the small number or special
characteristics of offerings included etc. are marked with an asterisk. Sources
weekly
Federal Reserve; monthly data, First National City Bank of New York,
Digitized
fordata,
FRASER



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

State and l o c a l 2/
1961

Corporate 1/
1 1961

I960

1962

#2
8#
807

580
667
562

570
715
860

P/876
E/1,132
2/629

713
689
764

700
611
568

April
May
June

1,113
760
1,132

2,118
1,259
1,318

761
577
l,oa

2/864
2/807
e/700

723
641
1,034

719
545
991

July
August
September

2/#0
e/75o
e/625

1,028
762
61*7

736
967
726

e/600
e/575
e/hOO

485
604
734

492
606
683

October
November
December

e/850

1,090
918
1,000

890
956
852

- e/500

678
789
606

348
501
491

2,258
3,005
e/1,965

1,809
k,6°5
2,137
3,038

2,115
2,382
2,428
2,698

e/2,636
1/2,371
e/1,575

2,166
2,397
1,823
2,073

1,880
2,256
1,780
1,340

5,263
f/7,228

6,504
8,9la
11,979

4,527
6,955
9,653

e/5,007
e/6 s 582

4,563
6,386
8,460

4,136.
5,916
7,257

1962
January
February
March

1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

I960

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

quarter
quarter
quarter
quarter

2,199
2,91?
e/1,865

Tear
e/
1/
2/
3/

1,554
4,552
2,337
2,807

1,716
2,165
2,018
2,347

11,253

8,246

Estimated by Federal Reserve.
Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance
companies.




H.Ik

Exhibit I
New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

Quarter
or
month

I960

Gross proceeds f o r new
Net proceeds f o r
new c a p i t a l 1 / 2/
capital and refunding 1/
Bonds
Common
and
Public CommuniTotal Publicly Privately pfd.
Mfg. u t i l i t y cations
offered offered
stock

I
II
III
IV

2,265
2,537
2,520
2,832

93k
1,07k
1,336
l,k62

795
770
75k
955

536
692
k29
kl6

298
511
562
625

1961 - I
II
III
IV

1,992
5,352
2,566
3,236

662
2,303
772
967

880
1,275
1,139
l,k2k

kk9
1,77k
65k
8k5

515
l,k66
595
836

2,378
3,250

1,155
1,389

1962

I
II
I I I e/
IV

1961 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1962 - Jan.
Feb.
Mar.
Apr.
May
June
July 2 /
Aug. e /
Sept.e/
Oct.
Nov.
Dec.

2,156

840

Other
issuers

189
lk9
317
381

1,059
913
896
997

81
381
1,081 1,095
10k
595
#6.
lk7

8#
1,052
803
1,263

598
808
652
696

716
1,222

507
639

655
996

983

k56
231

717
79k

1,027

290

651

374

248

693

b30

678
1,155
987
1,09k

178
273
211
713
666
92k
k2k
225
123
336
klk
217

29k
255
331
3k8
355
572
392
kll
336
509
3k8
567

129
167
15k
1,170
320
283
259
177
218
310
225
310

169
99
2k8
57k
kk7
kk6
k28
255
252
271
215
306

21
137
160
kl
8k
19
25k
99k
85
k 39
16
389
16
369
215
13
111
75
306 . 25.
80
362
168
k2

253
368
211
297
289
k67
315
279
209
k87
291
k85

61|7
88k
8k7
1,217
801
1,232
616
890

273
k97
386
65k
2k7
k88
200
k70

232
232
253
227
k20
575
352
350

lk3
155
209
336
13k
169
65
70

205
131
318
38k
270
3k2
211
260

89
lk8
193
377
196
klO
12k
100

73
362
21
88
6k
79
88
100

225
218
275
26k
229
301
168
290

170

325

155

180

150

60

235

695
696
2,231
1,31,2
1,779
1,075
813

650

2 / Preliminary.
e / Estimated by Federal Reserve.
Tf Gross proceeds ~
exceed net proceeds by the cost of f l o t a t i o n .
2/ For t o t a l see Exhibit Hj
other i s s u e r s are extractive, r a i l r o a d and other transportation, real e s t a t e and
finance and commercial and other. Source, —Securities and Exchange Commission,




H.1U
Other Security Offerings
(In m i l l i o n s of d o l l a r s )
Gross long-term 1 /
Foreign government 2/
Federal agency 3T~
1962
1
1961
|
I960
1962
| 1961
|
JanuaryFebruary
March
April
May
June
July
August
September
October
November
December

.1U2

6

10
35
10
86
50
25
e/—
ey 20

29
20
2
66
29
5
2
U3
3h

Year
Jan. - Sep

e/378

2
175
70
3U
72
ho
25

I960

2U6
156
1+61

i ®

1

36

182
150
150
11*8
351

252
100
1U9
278
250
193

199

2
hi

225

160
11*9
181

236

533

l,hh$

1,672

159

455

1,222

1,183

31

ig/1,188

I\et short-term TxJ
State and Local government 5 / I
Federal agency 3J~
January
r ebruary
March
April
June
July
August
September
October
November
December

16

i|66
-186

127
->}i4
-118

d/78
jo/338

Year
Jan.-Sept.

160
195
-8

-103

36
lUo
-80
70

-155
109
518

-157
1*8

-86

-175
-16
50
.189

-6

Sh

-116

520

18

588

173

j
i

2U7
-156
226
! -3oU
j
82
1
2-8L
i
261
i
22?
£/.152

£ / 655

-lUli
-162
-17U
-75
-67
207
22
193
108
98
56
-llli

-196
-202
-59
-277
170
320
95
23
-201
-23
-33
-250

-76

-633

-116

-327

Preliminary. ^ "e/ Estimated by Federal Reserve,
n.a.—Not a v a i l a b l e !
"
These data d i f f e r from t h o s e in Exhibit ti in that refunding i s s u e s , as 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 those
maturing i n more than one year.
1/ Includes s e c u r i t i e s o f f e r e d in the United S t a t e s by f o r e i g n governments and t h e i r
p o l i t i c a l s u b d i v i s i o n s and i n t e r n a t i o n a l organizations, Source: S e c u r i t i e s and
Exchange Commission.
3 / I s s u e s 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, Treasury Department and Federal Reserve.
y- These data d i f f e r from those in Exhibit H and above in that t h e y represent new
o f f e r i n g s l e s s retirements, whether from the proceeds of refunding i s s u e s orflrom
o t h e r funds. Data include only i s s u e s with o r i g i n a l maturity of one year or l e s s .
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 Public
it'
Digitized Housing
for FRASER
Authority n o t e s . In some i n s t a n c e s PHA n o t e s included may have a somewhat longer maturity than one year. Source: Bond Buyer and Federal Reserve.
http://fraser.stlouisfed.org/

Federal Reserve Bank of St. Louis

Exhibit K

'3
H. 14

Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) If
Proceeds of Large Issues Offered
(In millions of dollars)
Con >orate
Month

Total

1961 - September
October
November
December
1962 - January
February
March
April
May

(other than
convertibles)

168
354
391
255
195
425
366
648
200
472
165
286
191

July
August
September

78
205
320
125
170
425
330
430
170
387
135
226
100

Convertible
bonds
33
67
26

Stocks

State
and
local
government

58
81
45
130
25

--

435
326
480
307
561
662
259
423
373
226
361
272
153

"

15
51

21
167
30
85
30

60

91

Other
2/
73
40
250
145
64
30
55
88
30
20
--

194

Large Individual Issues Offered October 1 through 12

Issuer
^

Coupon
Amount
(millions
Offering
Maturity
net inter- yield
of
dollars)
e s t cost

Rating

CORPORATE
•*San Diego Elec. & Gas Co.

-

Type 3/

Com. stk.

15.5

STATE AND LOCAL GOVERNMENT

De Kalb Co., Georgia
Los Angeles Co. Flood Control
Dist. , California
/• Port of New York Auth.
State of Louisiana
OTHER
None.




G.O.

14.0

1964-91

3.13

1.80-3.35

A

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

10.0
25.0
20.0

1964-89
1993
1965-87

2.98
3.46
3.49

1.65-3.25
3.42
2.10-3.65

Aa
A
Baa

K-2

H.Ik

Footnotes
*—Rights offering.
1 / Includes coxporate and other security offerings of $15 million and over;
State and l o c a l government offerings of $10 million and over.
2/ Includes foreign government and International 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 the case of State and l o c a l government s e c u r i t i e s , G.O. denotes general
obligations; Rev.-Ut., revenue obligations secured only by income from
public 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
taxes only; Rev.-Rent., revenue bonds secured s o l e l y by l e a s e payments.




(T
Exhibit L

H.14

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
During month following
date shown
Corporate State and
Other 2/
local govt.

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

358
346
356
161
480
222
628
185
587
120
302
170
363

251
597
295
223
465
153
453
333
184
202
273
61
187

35

64
95
55
175
- -

Subsisquent to
da te shown
State and
Corporate
local govt.
504
411
421
591
525
341
693
598
692
458
477
312
546

.

454
693
498
415
567
239
539 ,
452
337
377
427
215
387

Other 2/
35

64
95
55
25
175
--

Forthcoming Large Offerings, as of October 12
Issuer

Type

Amount
(millions
of dollars)

Approximate date
of offering

CORPORATE
1
f

Panhandle Eastern Pipe Line Co.
Associates Investment Co.
Packaging Corp. of America
American Tel. & Tel. Co.
Southern C a l i f . Edison Co.
*Tennessee Gas Trans. Co.
Columbia Gas System
Georgia Power Co.
P a c i f i c Gas & Electric Co.
*Louisville and Nashville R.R.. Co.
Commerce Oil Refining Corp.
Columbia Bancorporation

Deb. & pfd. stk
80.0
Sen. deb.
50.0
S. F. deb.
21.0
Deb.
250.0
1st & r e f . mtg. bds. 17.6
1st mtg. bds.
50.0
Deb.
20.0
1st mtg. bds.
23.0
1st & r e f . mtg. bds. 65.0
Coll. t r . bonds
25.0
Deb., bds. & com.
45.0
30.0
Ctinv. sub. deb.

Oct. 17
Oct. 18
Oct. 18
Oct. 24
Oct. 31
l a t e Oct . - e a r l y Nov.
Nov. 2
Nov. 8
Nov. 8
Nov. 15
Indefinite
Indefinite

STATE AND LOCAL GOVERNMENT

#b

1
1

Hampton Roads San. D i s t . , Va.
Commonwealth of Massachusetts
New York City Transit Auth.
* Chicago Park D i s t . , 111.
New York City, New York
*New York State Dormitory Auth.
Cincinnati, Ohio
East Bay Mun. U t i l . D i s t . , Cal.




Rev.-Ut.
G.O.
Rev.-Ut.
Rev.-Q.Ut.
G.O.
Rev.-Rent.
G.O.
G.O.

10.0
25.0
51.0
11.3
107.9
45.0
1
12.3
30.0

Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Nov.
Nov.

16
16
17
23
24
31
7
14

H. 14

L-2
(Cont'd)
Forthcoming Large Offerings, as of October 12 <
Issuer

Type

Amount
(millions
of dollars)

Approximate date
of offering

STATE AND LOCAL GOVERNMENT (C0NT"D)
Houston, Texas
^Philadelphia, Pa.
Oklahoma City Mun. Impr. Auth.
Pittsburgh, Penna.
Jefferson County, Colorado
Dade County, Florida
Jacksonville Expressway Auth., Fla.

— Rev.-Ut.
Go 0.
Rev.
G.O.
G .0.
G.O.
Rev.-Ut.

14.0
26.6
10.0
35.0
12,9
46.0
40.0

Nov. 14
Nov. 15
Nov. 27
Indefinite
Indefinite
Indefinite
Indefinite

25.0

Oct. 17

OTHER
Commonwealth of Australia

Bonds

*—Included in table for f i r s t time.
V Includes corporate and other issues of $15 million and over; State and local
__ government issues of $10 million and over.
It Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal agencies,
ifote.--Deletions for reasons other than sale of issue: None,




H.ll*

Exhibit M
Sources and Uses of Funds by
L i f e Insurance Companies

Cash

% Value
| at end
" 1958
|
1959
jj i 9 6 0
1961
1962

of a s s e t s
of period:
- Dec.
- Dec.
- Dec.
Dec.
Aug,

: Changes:
I I960 - Apr.
May
I
•J
l
«<

July
Aug.
Sept.
Oct.
Nov.
Dec.

'ip/1961 - Jan.
Feb.
1:
Mar.
Apr.
f
May.
June
V
July
Aug.
Sept.

rf;

Oct.
Nov.
Dec.

.,P/1962 - Jan.
I
Feb.
f
Mar.
j
Apr.
\
May

>•

p

SS?

Aug.
Sept.

Uses of funds 1 /
State and
U. S. Business s e c u r i t i e s 2/
l o c a l govt,
Govt, Long-term Commercial
secursecur- bonds and and f i n a n c e
ities
company paper
stocks
ities

Mort-

Other

118
295
183
615

3,221

6,385

16,783
18,631
5l,3Ul
52,608

3,606
3,922
4,090

37,092
39,237
ill,815
l*l*,2l*l
45,576

ll*,61*0
16,126
17,1*72
19,k09
20,087

U2
-12
31
"U2
3
-1*9
93
-35
89

-85
-63
-102
52
-1*5
-2
-62
18
-103

108
165
209
11*3
133
111
100
257
300

17
1*7
-25
81
53
-61
205
-59
-100

25
29
19
21*
1*6
82
33
26
18

218
209
187
153
227
179
217
197
282

89
109
11*1*
87
113
110

-51
-9
-50
9
75
-39
1*0
-18
H*
31
1*3
15

117
-3
-7
-1*7
63
-182
71

88
167
175
72
236
301*
136
285
21*3
261*
220
520

121*
-39
-27
63
-66
-3k
109
-7k
-30
21*
-11*
-11*8

65
31
33
31*
5
-13
25
36
29
17
36
18

193
-135
208
202
170
222
107
161*
165
199
235
1*26

355
202
186
119
58
31
11*2
128
138
105
165
308

#1
1*81*
518
1*52
51*1
289
630
521
509
653
61*2
883

-108
-5
-71*
12
3
-22
69

210
21
-78
9k
-26
-95
176
-21

101
126
11*1*
53
21*2
253
135

223
1*7
k9
171
-1*3
-117
72

36
2
118
-11*
-11*
8
1*

137
116
H*3
111*
195
196
198

722
1*20
377
1*61
362
213
858

28

236

123
113
75
31
5
-10
201*
137

1,363
1,307
1,329
1,389
1,235

-29

7,182
6,858
6,1*28

6,10k

Ilk,612

-50
13
-1*3
-256

213

2,691

30

- 6

92
167

Uses of funds represent n e t changes i n a s s e t s ancL-therefore r e f l e c t n e t , rather
gross, u s e s .
! 2 / Includes s e c u r i t i e s o f domestic corporations only.
j S o u r c e . — I n s t i t u t e of L i f e Insurance.




-

1*11*
1*81*
1*6 3
582
530
370
580
1*96
653

594

H.lU.

Exhibit N
Sources and Uses of Funds by
Savings and Loan Associations

Cash
Value of assets
, at end of period
1958 - Dec.
1959 - Dec.
1960 - Dec.
1961 - Dec.
1962 - Aug.
Changes:
i960 - ~pr.
/
May

^

July
Aug.
Sept.
Oct.
Nov.
Dec.

p/1961 — Jan.
Feb.
Mar.
Apr.
I-Iay
July
Aug.
Sept.
\Oct.
Nov.
Dec,
^ 6 2

r/
1/
~

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.

IJses of f i inds 1 /
U. S.
Mort- Other
Govt.
gages 2/ assets
ities
(in mix.Lions 03

a?

2,585
2,183
2,680
3,298

1,595
5,222

45,627 3,108
5 3 , i 4 l 3,729
60,070 It,131
68,833 4,743

2,934

5,441

75.483

5,111

2S of funcIs
Total
sources
or uses
dollars;

Net
change
savings
capital

55,139
63,530
71,476
82,096

47,976
54,583
62,142
70,851

88,969

76,135

Borrowing 3/

1,444
2,387
2,197
2,863
3,071

Otner

5,719

6,560

7,137
8,382
9,763

-26
81
320
-233
30
25
102
83
415

18
-143
-32
-23
5
110
-54
-1

564
635
762
645
722
656
602
515
566

108
210
-50
-148
-6
50
-1
233
-50

646
944
889
232
723
736
813
777
930

370
622
1,220
157
486
604
666
552
1,379

39
4
210
-124
22
49
-14
52
271

237
318
-541
199
215
83
161
173
-720

-95
59
3
23
150
131
-227
-86
47
81
84
448

93
191
107
-18
-3
32
-8
66
-5
45
82
45

369
428
690
695
809
997
737
910
802
810
752
764

-106
71
122
113
224
-64
-150
76
83
103
198
-58

261
749
922
813
1,180
1,096
966
927
1,039
1,116
1,199

591
553
705
417
800
1,362
111
496
662
726
775
1,511

-465
-80
-26
88
41
274
-1
132
130
74
81
418

135
276
243
308
339
-540
242
338
135
239
260
-730

-365
98
131
-78
10
263
-394
-29

186
95
36
-46
-13
-67
46

535
600
801
847
971
1,044
894

-115
40
93
90
413
-58
-194
99

241
833
1,061
813
1,381
1,182
352
1,010

491
578
934
386
782
1,427
18
668

-383
-96
-83
126
98
365
89

133
351
210
301
501
-610
245

92

250

__

-18

958

%

.

Revised.
p7 Preliminary.
^ ^
Uses of funds represent net changes in assets and therefore r e f l e c t net, rather
than gross, uses. Savings and loan associations do not hold business s e c u r i t i e s
and data on holdings of State and l o c a l government bonds, presumed to b e small,
Digitized
arefor
notFRASER
available. 2/ Data f o r 1957 adjusted to include mortgage pledged
http://fraser.stlouisfed.org/
shares as currently reported.
3/ Advances from Home Loan Banks and other
Source.—FSLiC.
Federalborrowing.
Reserve Bank
of St. Louis

Exhibit 0

hoik

Sources and Uses of Funds
by Mutual Savings Banks
Uses of funds 1 /
Busi- State &
ness
local
Mortgovt.
gages Other
ities
2/
ities
(In mill:
dollars

U.S.
Cash Govt.
ities
Value of a s s e t s
at end of period
1958 - Dec.
1959 - Dec.
i960 - Dec.
1961 - Dec.
1962 - Aug,

921
829
872
828
809

Changes:
i960 - Apr.
May
June
July
Aug.
Sept.
Oct,
Nov.
Dec.

-86 -1U8
-60
42
108
-93
-69
-48
-6
30
22
-32
-8 -156
-68
?
81 -k2

-19
13
57
38
-8
32
-4
3k
57

13
-23
-4
-4
-5
1
-6
-5
-5

106
-49
21 100
117
9
-51 -216
30
-13
30
-52
-26
18
6
-lit
46
-15
-27 -120
7
-13
-20
-21

3
-15
46
-11
27
3k
2
-23
-19
-56
-20
5

-5

10
9k
47
77
12
209
-79 -216
12
16
= 38
54
-46
-11
=29
26

17
1
25
-35
2
17
66
14

1961 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1962 - Jan.
Feb.
Mar.
Apr.
May
June r /
July
Aug.
Sept.

7,266
6,66k
6,239
6,136
6,296

1,973
4,849
5,080
5,053
5,155

'

I/

Total
sources

Sources of funds
Net
change in
deposits

Other

3,738.
3,959
4,220
4,346
4,932

725 23,039
855
722 24,768
910
672 26,709 1,001
677 28,915 1.22k
569 31,023 1.233

37,779
38,912
W,573
12,833
45,085

3b,oia
31,983
36,353
38,487.
40,153

129
161
169
159
206
196
168
171
157

-21
63
-59
k2
6
lit
-25
13
-lit

-132
176
178
118
223
233
-31
15k
237

-95
58
221
21
105
278
56
39
385

-1
-2
l
23
-2
1
1
-5
-5
-l

161
140
204
176
187
217
201
207
156
178
167
212

17
26
29
-51
30
-23
-28
55
k9
~kk
k6
117

233
272
4o4
-154
262
228
164
232
220
-7k
181
292

170
136
351
-5k
ilk /
3663/
23
99
310
-15
. m
471

63
136
53
"100
148 .
-1383/
l4l
133
-90
-59
133
-179

-7
-18
-18
-26
-20
-5
-5
•9

253
188
230
270
254
302
290
312

-118
12
62
-45
68
-3
-10
53

250
307519
-131
33k
306
285
367

83
165
472
-51
184
548
172
215

166
142
47
-80
150
-242
113
152

Uses of funds represent net changes in assets and therefore r e f l e c t net, rather
than gross, uses.
Includes Canadian government and p o l i t i c a l subdivisions, International Bank for
Reconstruction and Development, nonguaranteed Federal agency and other bonds as
well as corporate bonds and stock,
3/ Adjusted so as not t o r e f l e c t $115 million other l i a b i l i t y r e c l a s s i f i e d as
deposits
in conformity with FDIC redefinition. Source—NAMSB and FDIC.

2/



-37
- 118
-43
97
118
-45
-87
115
-148