Full text of H.16 Capital Market Developments : December 15, 1958

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Not f o r P u b l i c a t i o n

DECONTROLLED AFTER SIX MONTHS

H.lb

December 1 5 , 1958
CAPITAL MARKET DEVELOPMENTS

( I n c l u d i n g Monthly Review of S o u r c e s and Uses of
F i n a n c i a l I n t e r m e d i a r i e s and Q u a r t e r l y Review
of C o r p o r a t e S e c u r i t y F i n a n c i n g )
The volume of p u b l i c 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 was
l a r g e l a s t week. L a r g e c o r p o r a t e i s s u e s , i n c l u d i n g e x p i r a t i o n of s u b - '
s c r i p t i o n r i g h t s , t o t a l e d $172 m i l l i o n a n d S t a t e and l o c a l g o v e r n m e n t
bond o f f e r i n g s a m o u n t e d t o 599 m i l l i o n . A f o r e i g n g o v e r n m e n t o f f e r i n g .
f o r $29 m i l l i o n was a l s o s o l d . No l a r g e new s e c u r i t y i s s u e s a r e e x p e c t e d t o be s o l d t h i s week. Only o n e - l a r g e c o r p o r a t e i s s u e , f o r w h i c h
s u b s c r i p t i o n r i g h t s e x p i r e a t t h e end of t h e month, r e m a i n s on t h e
calendar for t h i s year.
Bond y i e l d s - Changes i n y i e l d s on o u t s t a n d i n g bonds were
m i x e d l a s t w e e k . Y i e l d s on U. S . Government o b l i g a t i o n s i n c r e a s e d and
y i e l d s on c o r p o r a t e A a a - r a t e d a n d S t a t e and l o c a l B a a - r a t e d b o n d s r e m a i n e d s t a b l e . Y i e l d s on h i g h - g r a d e S t a t e a n d l o c a l government and
l o w e r g r a d e c o r p o r a t e bonds d e c l i n e d s l i g h t l y ,
S t o c k p r i c e s - S t o c k p r i c e s and t r a d i n g a c t i v i t y i n c r e a s e d
l a s t week. S t a n d a r d and P o o r ' s i n d e x of 500 common s t o c k s , which
r e a c h e d a new r e c o r d p e a k of 53=46 on Wednesday, c l o s e d a t 5 3 - 2 2 on
December 1 2 . The volume of t r a d i n g a v e r a g e d 3 . 8 m i l l i o n s h a r e s a d a y .
I n s t i t u t i o n a l i n v e s t o r s - In October, savings inflow a t t h r e e
m a j o r t y p e s of f i n a n c i a l i n s t i t u t i o n s — l i f e i n s u r a n c e c o m p a n i e s / s a v i n g s
a n d l o a n a s s o c i a t i o n s and m u t u a l s a v i n g s b a n k s — i n c r e a s e d more r a p i d l y
t h a n i n O c t o b e r 1 9 5 7 . I n c o n t r a s t , t h e i n c r e a s e i n s a v i n g s and t i m e
d e p o s i t s a t c o m m e r c i a l b a n k s was a t a s l o w e r r a t e t h a n a y e a r , e a r l i e r .
F o r t h e f i r s t t e n m o n t h s combined, m u t u a l s a v i n g s b a n k s
showed t h e l a r g e s t r e l a t i v e i n c r e a s e , w i t h a d e p o s i t growth more t h a n
one-half g r e a t e r than in the corresponding period l a s t year.
Share
c a p i t a l o f s a v i n g s and l o a n a s s o c i a t i o n s a l s o i n c r e a s e d much more
rapidly than a year e a r l i e r , with the inflow f o r the ten months-period
b e i n g more t h a n o n e - f o u r t h l a r g e r . The i n c r e a s e i n l i f e i n s u r a n c e
company a s s e t s was l e s s t h a n o n e - t e n t h l a r g e r t h a n i n t h e c o m p a r a b l e
1957 p e r i o d .
( I n r e c e n t monti.s t h e r a t e of i n c r e a s e i n : t i m e a n d s a v i n g s d e p o s i t s a t commercial banks has slowed from t h e v e i y r a p i d growth
e a r l i e r i n t h e y e a r , b u t t h e c u m u l a t i v e i n c r e a s e f o r t e n months e x c e e d e d t h e J a n u a r y - O c t o b e r i n c r e a s e l a s t y e a r by more t h a n a t h i r d . )




H.1U

-

2 -

The O c t o b e r i n c r e a s e i n l i f e i n s u r a n c e company a s s e t s amounted
t o $560 m i l l i o n , n e a r l y o n e - t h i r d g r e a t e r t h a n a y e a r e a r l i e r . The i n c r e a s e i n h o l d i n g s of U. S. Government s e c u r i t i e s was about t h e same a s
i n O c t o b e r 1957* Net . . a c q u i s i t i o n of b u s i n e s s s e c u r i t i e s was o n e - f o u r t h
l a r g e r t h a n a y e a r e a r l i e r . For t h e f i r s t time t h i s y e a r , t h e i n c r e a s e
i n h o l d i n g s of mortgages was l a r g e r t h a n i n t h e c o r r e s p o n d i n g month a
year earlier.
Savings c a p i t a l a t s a v i n g s and l o a n a s s o c i a t i o n s i n c r e a s e d
$501 m i l l i o n , t w o - f i f t h s more t h a n i n O c t o b e r 1957. H o l d i n g s of U. S.
Government s e c u r i t i e s i n c r e a s e d #107 m i l l i o n i n c o n t r a s t t o a s l i g h t
d e c l i n e l a s t y e a r . Net a c q u i s i t i o n of mortgages was l a r g e r t h a n a y e a r
e a r l i e r a s i t has been i n o t h e r r e c e n t months, w i t h t h e October i n c r e a s e
b e i n g more t h a n t w o - f i f t h s g r e a t e r .
The growth i n d e p o s i t s a t m u t u a l s a v i n g s banks was $95 m i l l i o n
a s compared w i t h $3i| m i l l i o n i n October 1957. As i n e v e r y month t h i s
y e a r s i n c e J a n u a r y , t h e i n c r e a s e i n mortgage h o l d i n g s c o n t i n u e d t o be
l a r g e r t h a n l a s t y e a r . Holdings of b u s i n e s s s e c u r i t i e s d e c l i n e d s l i g h t l y .
E a r l y t h i s y e a r s a v i n g s banks i n c r e a s e d t h e i r p o r t f o l i o s of b u s i n e s s
s e c u r i t i e s s u b s t a n t i a l l y , b u t t h e growth s i n c e May has been v e r y s m a l l .
„
'/

Corporate Security O f f e r i n g s
i n t h e T h i r d Q u a r t e r 1958

Net' p r o c e e d s f o r new c a p i t a l - C o r p o r a t i o n s s o l d $ 2 . 8 b i l l i o n
of s e c u r i t y i s s u e s t o o b t a i n new c a p i t a l i n t h e t h i r d q u a r t e r of 1958.
T h i s volume was h p e r c e n t below t h e c o r r e s p o n d i n g p e r i o d l a s t y e a r ,
b u t was s u b s t a n t i a l l y above any o t h e r t h i r d q u a r t e r .
T o t a l volume f o r t h e f i r s t n i n e months t h i s y e a r amounted t o
$ 8 . 5 b i l l i o n , o n e - t e n t h below t h e volume l a s t y e a r . F o r t h e J a n u a r y September p e r i o d , f i n a n c i n g by e l e c t r i c , g a s and w a t e r u t i l i t i e s e x ceeded t h a t of m a n u f a c t u r i n g companies. The volume of bonds s o l d by
u t i l i t i e s was u n u s u a l l y l a r g e i n t h e f i r s t q u a r t e r b u t i n s u b s e q u e n t
q u a r t e r s has been s m a l l e r t h a n a y e a r e a r l i e r . I n c o n t r a s t , m a n u f a c t u r i n g i s s u e s f o r new c a p i t a l were s m a l l i n t h e f i r s t q u a r t e r b u t have
s i n c e been s u b s t a n t i a l l y l a r g e r .
.
M a n u f a c t u r i n g companies were t h e most i m p o r t a n t group of
i s s u e r s during t h e t h i r d q u a r t e r , o f f e r i n g s e c u r i t i e s with aggregate
p r o c e e d s of $ 1 . 1 b i l l i o n . Accounting f o r 39 p e r c e n t of t o t a l o f f e r i n g s , such i s s u e s were n e a r l y t w o - f i f t h s l a r g e r t h a n a y e a r e a r l i e r .
( M a n u f a c t u r i n g and commercial and o t h e r companies were t h e o n l y m a j o r
i n d u s t r i a l groups s e l l i n g a l a r g e r volume pf s e c u r i t i e s i n t h e t h i r d
q u a r t e r t h i s y e a r t h a n d u r i n g t h e c o r r e s p o n d i n g p e r i o d of 1 9 5 7 . ) New
i s s u e volume by p e t r o l e u m and p r i m a r y i r o n and s t e e l m a n u f a c t u r e r s
a c c o u n t e d f o r t h r e e - f i f t h s of t h e t o t a l m a n u f a c t u r i n g volume. O f f e r i n g s by t h e s e g r o u p s i n c l u d e d v e r y l a r g e i s s u e s ( o y e r $150 m i l l i o n )
by S t a n d a r d O i l Company of I n d i a n a , S t a n d a r d O i l Company of C a l i f o r n i a
and U n i t e d S t a t e s S t e e l C o r p o r a t i o n . F i n a n c i n g by o t h e r m a n u f a c t u r e r s
was m o d e r a t e .




h.lh
Table 1
C o r p o r a t e S e c u r i t y O f f e r i n g s f o r New C a p i t a l
by Type of B u s i n e s s of I s s u e r
T h i r d Q u a r t e r 195U-1958
(Net p r o c e e d s i n m i l l i o n s of d o l l a r s )
1958

.1957

1956

1955

1951i

All corporate offerings

2,78k

2,899

2,556

1,911

1,991

Manufacturing
P e t r o l e u m and r e f i n i n g
P r i m a r y i r o n and s t e e l
O t h e r t r a n s p o r t a t i o n equipment
N o n e l e c t r i c a l machinery.
Paper
Motor v e h i c l e s and equipment
Chemicals
Foods
T e x t i l e s and a p p a r e l
Primazy n o n f e r r o u s m e t a l s
S t o n e , c l a y and g l a s s
Leverages
Fabricated metal products
Other 2 /

1,126
333
320
79
62
57

• m. i

736
6
72

1:95
"11
32
2

E l e c t r i c , g a s and w a t e r u t i l i t i e s

815

Communication

127

h9 '
h6

23
21
17
111
13
12
60

102
92
10
Ui5
19
lli9
32

h

2k

•

735
70
327
28
26
li2
77
32
26

U6
62
' 63
5
11
71
2

1
16
80

106
52
.
126
128
9
17
30
1 .
25
160

23
150

912

632

3#

I166

21^3

399

155

353

62

87

59

37
109

h

16
95

h9

'

y

h
3
7
7
86

Railroad

L3

Otner t r a n s p o r t a t i o n

76

9ii

1*9

65

Commercial and o t h e r

-• li3U

80

65

65

6U

57

77

11*9

lOli

102

107
31
76

620

1*39
309
,130

573

302

Mining
F i n a n c i a l and r e a l e s t a t e
S a l e s and'consumer f i n a n c e cos.
Other

•

.

106

123

~W
h3

1 / L e s s t h a n #500,000.
'
'
'
~
2 / I n c l u d e s s m a l l volume of f o r e i g n i s s u e s n o t f u r t h e r c l a s s i f i e d i n t h e manuf a c t u r i n g group.
N o t e . — D e t a i l s may n o t add t o t o t a l s due t o r o u n d i n g .
. S o u r c e . — S e c u r i t i e s and Exchange Commission and F e d e r a l Reserve.




H.lU

-

h

-

-New c a p i t a l o f f e r i n g s by e l e c t r i c , gas and w a t e r u t i l i t i e s
t o t a l e d ^815 m i l l i o n , o n e - t e n t h l e s s than i n the. t i i i r a q u a r t e r of 1957,
b u t . a c c o u n t e d f o r n e a r l y 30 p e r c e n t of t o t a l o f f e r i n g s . O f f e r i n g s by
commercial and o t h e r companies ranked t h i r d i n importance w i t h proceeds!
of $1*3U m i l l i o n , i n c l u d i n g a $3W> m i l l i o n i s s u e of S e a r s , Roebuck and
Company.
Tne volume of o f f e r i n g s by f i n a n c e and r e a l e s t a t e companies •
t o t a l e d $107 m i l l i o n , t h e s m a l l e s t volume s i n c e 1952, and f o u r - f i f t h s
l e s s t h a n l a s t y e a r . New c a p i t a l i s s u e s " o f s a l e s and consumer f i n a n c e
companies continued t o be very s m a l l . O f f e r i n g s by communication,
mining, r a i l r o a d and o t h e r t r a n s p o r t a t i o n concerns were a l s o i n s m a l l e r
volume t h a n a y e a r e a r l i e r .
Total g r o s s proceeds - Gross proceeds f r o m c o r p o r a t e o f f e r . i n g s , which i n c l u d e r e f u n d i n g i s s u e s and c o s t of f l o t a t i o n , were #2.9
b i l l i o n , only s l i g h t l y below t h e volume a y e a r e a r l i e r . The b i g g e r dec l i n e i n t h e volume of n e t proceeds f o r n e w " c a p i t a l o f f e r i n g s t h a n i n
t o t a l g r o s s proceeds l a r g e l y r e f l e c t s t h e i n c r e a s e d volume of r e f u n d i n g
i s s u e s ' t h i s y e a r . These r e f u n d i n g i s s u e s t o t a l e d $L12 m i l l i o n , more
t h a n o n e - h a l f l a r g e r than in t h e t h i r d q u a r t e r of 1957.
Table 2
T o t a l Corporate S e c u r i t y O f f e r i n g s by Type of I s s u e
Third Quarter' 195^-1958
(Gross proceeds i n m i l l i o n s of d o l l a r s )
Type of i s s u e

1958

1957

1956

1955

1951*

Total corporate offerings

2,9bk'

2,997

2,690

2,358

2,685

Type of o f f e r i n g
Public
Private

2,199
715

2,02*1*
951

1,881
609

1,1*27
931

1,767
918

Type of s e c u r i t y
Bonds and n o t e s
Public
Private

2,496
1,795
701

2,521
1,586
935

2,13k
1,352
782

1,801*'
928
875

2,323
1,1*60
862

101*

72

99

150

160

3hb

1*01*

157

1*05

182

Preferred s t o c k . /
Common s t o c k

J

N o t e . — D e t a i l s may n o t add t o t o t a l s due t o rounding.
S o u r c e . — - S e c u r i t i e s and Exchange Commission.




.

- 5 -

The d e c l i n e i n t o t a l g r o s s p r o c e e d s r e f l e c t e d e n t i r e l y t h e s h a r p
drop i n p r i v a t e l y - p l a c e d s e c u r i t i e s . P u b l i c l y - o f f e r e d i s s u e s t o t a l e d #2.2
b i l l i o n i n t h e t h i r d q u a r t e r of t h i s y e a r , o n e - t w e l f t h l a r g e r t h a n a y e a r
earlier.
Debt f i n a n c i n g was i n s l i g h t l y s m a l l e r volume t h i s y e a r t h a n
l a s t j a s a d e c l i n e i n p r i v a t e l y - o f f e r e d bond i s s u e s more t h a n o f f s e t an
i n c r e a s e i n bonds o f f e r e d t o t h e g e n e r a l p u b l i c . F i n a n c i n g t h r o u g h
p r e f e r r e d s t o c k i s s u e s i n c r e a s e d somewhat t h i s y e a r . The"volume of
common s t o c k f i n a n c i n g was s m a l l e r t h a n i n t h e t h i r d q u a r t e r of 1957,
b u t l a r g e r t h a n i n e i t h e r of t h e e a r l i e r q u a r t e r s t h i s y e a r . C o n v e r t i b l e bond i s s u e s i n t h e t h i r d q u a r t e r amounted t o C?80 m i l l i o n , t h e
s m a l l e s t volume s i n c e t h e t h i r d q u a r t e r of 1955.
More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g r e c e n t c a p i t a l m a r k e t
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 R e s e a r c h and S t a t i s t i c s ,
Board of Governors of t h e F e d e r a l Reserve System.







STATE AND LOCAL
GOVERNMENT Aoo

CORPORATE Boa

r+r

-I— STAT E A» D LOCAL GOAT. B

H.lh

Exhibit B
Tables f o r E x h i b i t A
High-grade-Bond Y i e l d s

Date

Corporate .
Aaa 1 /

U. S. Govt,
long-term 2 /

3.k2
2.85
h.lh
U.13
3.55

3.19
2.L5
3.76
3.83
3.07

«

1953
195U
1957
1958

-

high
Low
high
High
Low

Nov.
Nov.
Nov.
Dec.
Dec.

Hi
21
28
5
12 2/

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

S t a t e and
local govt.
Aaa y

( P e r cent)
(6/19)
(U/23)
(9/27)
(10/10)
(5/2)

U.10
h.08

(6/5)
(8/6)
(10/16)
(10/3)
(V25)

3.71
3.69
3.67
:3.73
3.77

. h.07

U.06
a.06

2.73 ( 6 / 2 5 )
1.90 ( 9 / 2 )
3.15 ( 6 / 2 9 )
3 . 3 1 (9/11)
2.61.(5/1)

• 38
.30
.60
.51
.22

.83
.30

3.17
3.17
3.1U
3.11
3.13

.39
.39

.5h

• hi
,6h
.31
> .52
.53
.59 .
.6h

.ho
.33
.29

Lower-grade Bond Yields

Bate

Corporate
Baa 1 /

High
Low
High
High
Low

3.89 (9/18)
3.2ili (12/31)
5.10 (11/29)
h.?6 ( 1 / 3 )
h.5± (7/11)

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 c e n t )
1953
195L
1957
1958

-

Nov.
Nov.
Nov.
Dec.
Dec.

IJ4
21
28
5
12 2 /

•J4.88
k.86
L85
L85

h.8h

3,79
2.93
h.Sl
h.lh
3.64
It. 12
lull
ii.10
10
1.10

(6/25)
(8/5)
(8/2?)
(9/11)
(5/1)
.

.69
.52
1.27
1.28
.77

1.21
-96
1.21
1.11
_.93

.78
.78
,.78
.79
.78

.95

.9h

.96
.96
.97

2/ Preliminary.
1 / Weekly average of d a i l y f i g u r e s . Average tcmi of bonds included i s Z'J-'sJy y e a r g .
2 / Weekly average of d a i l y f i g u r e s . The s e r i e s i n c l u d e s bonds due or c a l l a b l e in
10 y e a r s or-more.
2 / Thursday f i g u r e s . Only g e n e r a l o b l i g a t i o n s bonds a r e i n c l u d e d ; ave 1 a • e m
i s 20 y e a r s .
Note.—Highs 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 d a t e s f o r
different series.




STOCK MARKET




zi

Exhibit D
Table f o r E x h i b i t C
Stock Market
Stock p r i c e
index 1 /

Date

Trading
Common
stock
volume 2 /
yields V
(millions
of s h a r e s ) ( p e r c e n t )

Stock market customer c r e d i t
Wank
Customers'
Total debit b a l - loans t o
a n c e s h/ " o t h e r s " 5 /
( M i l l i o n s of d o l l a r s )

26.514
22.95
35.98
21.93
15.89
35.28
U9.6U
13.22
2*9.08
39.18
53.22
10.37

1953 - High
Low
195U - High
1955 - High
Low
1956 - High
Low
1957 - High
Low
1958 - High
Low
October
November
Nov. 28.
Dec. 5
Dec. 12 JD/

'

(1/2)
(9/18)
(12/31) >
(1/8)
(12/9)
(1/llt)
(8/3)
(1/20)
(7/12)
(12/20)
(12/12)
(1/10)

#.95
52.50
52.18"
52.16
53.22

2.5
0.9
3.7

l.h

. it. 6
1.5
3.1
1.5
1.2

l.h
U.9
1.7

h.l
h.l
h.2
3.5
3.8

5.38
,6.25
1.32
5.82
U. 08
L.kl
3.82
U.3U
3,91
1.72
3.38
L.58

2,155
2,055
3,U36
2,1|05
1,030
3,537
U,oU7
3,9lU
1,031
3,576
l,3o?
3,55k

1,665
l,3lU
2,388
1,653
2,805
2,517
2,823
2,7liO
2,887
2,182
3,188
2,187

3.52
3.k2
. 3.k2
3.1:2
3.38

1,309

3,188

n.a.

780
66U
1,0U8
716
1,21a
1,018
1,267
1,155
1,163
1,051
1,31-7
1,051

1,181
1.179
n.a.
r/1,178
n.a. "
1,106

n.a.—Not available.
r j Revised.
1 / S t a n d a r d and P o o r ' s composite index of $00 common s t o c k s , weekly c l o s i n g
p r i c e s , 19ltl-li3=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 / Averages of d a i l y t r a d i n g volume on t h e New York Stock Exchange.
2 / S t a n d a r d 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 t e s
on which p r i c e i n d e x reached i t s high o r low.
h / 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 s e c u r e d by U. S. Government o b l i g a t i o n s .
£ / Wednesday f i g u r e s f o r weekly r e p o r t i n g member b a n k s . Excludes l o a n s f o r
p u r c h a s i n g o r c a r r y i n g U. S. Government s e c u r i t i e s a t banks i n New York and
Chicago. Weekly r e p o r t i n g banks a c c o u n t f o r a b o u t 70 p e r c e n t o f l o a n s 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 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 d a t e s ,
for different series.




Exhibit E
Long-term Corporate and S t a t e 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 )

1956

New c a p i t a l
Corporate 1 /
S t a t e and l o c a l 2 /
1
1956
1958
1957
1957
1
1956
1
1
812
953
513.

7k2
572
506

kOk
696
390

818
-1,116
8kl

798
895
551

7#
5k6
.393

378
k90
735

1,003
921
973

1,063
65k
838

806
k03
650

529
58k
k31 :

k08
206
357

1,090
789
1,076

1,069V
1,088

k55
p/k6l
e/k50

698
633
698

6#
3k7
k09

3,kk5
3,1L9
2,899
2,95k

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

2,276
2,2kk
1,859
1,366

7:k%
10.38k

k,520
6,379
e/7,7k5

i,say

1,060
1,065
1,320

April
May

1,11*1
foo
881

931
765
1,453

July
August
September

1,102
538
l,lkk

October
-November
December

E/G15
e/600
e/950

January February
March

1st
2nd
3rd
iith

quarter
quarter
quarter
quarter

1st half
Three q u a r t e r s
Year

723

3,135
2,622
2,78k
e/2,365
5,757
8,5kl
2/10,906

:

6,59k
9,k93
12,kk7

573
712 '
817

1,820
1,70k
2,029

l,k90
1,603
971
1,395

3,S2k
5,069
7,099

3,093
k,06k
5,k59

l,5hh

.

Excluding f i n a n c e companies ^Z.
1st
2nd
3rd
kth

'quarter
quarter
quarter
quarter

Year

2,89k
2,563
2,753
n/2,290

3,237
2,089
2,582
2,810

2/10,520

11,519

l,6k7
2,5kl
2,2k6
2^826
9,260'

Estimated:
g / Preliminary.
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 1?56 a r e Pond Buyer data c l a s s i f i e d as nirw capjl.ai. t.v
Federal Reserve; l a t e r d a t a a r e from the Investment Bankers. Association of , mv.rj.cn
and a r e somewhat more complete as t o coverage than t h e e a r l i e r d a t a , p a r t i c u l a r l y
f o r F e d e r a l Government l o a n s .
3 / I n c l u d e s 'J716.3 m i l l i o n AT.vT c o n v e r t i b l e debenture i s s u e .
k / I n c l u d e s $571.5 m i l l i o n AT'/V common stock i s s u e .
'5/ T o t a l new c a p i t a l i s s u e s exeluvi in.-r o f f ' - r j n p s of s a l e s ar-i consumer ri.*wnoe
companies.

¥/




.

II. Ill
Other Security Offerings 1 /
( I n m i l l i o n s of d o l l a r s )
Long-term
F o r e i g n government 2 /
F e d e r a l agency 3 /
1956
1956
1
1958
1957
1
1
1957
1

1956

January
February
March

196
53

30

8

—

—

—

April
May

1#
198
120

123
U8

50

523

125

60

h2

95

—

9
5
17

28
7
30

—

58

h

July
August
September
October
November
December

—

Year

81

h9

. 1,161
251

37

2
39

60
1

IJU
5
21

507

300

April
May
July
August
September
October
November
December

273

326
1,55
• 11*7

196
357
2L9

357
351i
26k

205
337
153

289

272
272
252

233

h60

h23
369
E/231

Year

#3

9k

60

—

109
—

220

__

100
....

169

572
F e d e r a l apenny 3 /
371
.208

Ihh

638
1,30
505

380
220
283

.125
252
176

209
161
329

336
I169
501

260

195
207
179

437
206
330

22h
370
512

222
1:25
273

29h

hSh
ilk

1,238
2#.
116

107
222
128

5,5L3

3,,li57

159

328
118

3,27lt

2,706

.

I61i

Shcrt-i
S t a t e and l o c a l government U/
January
February
March

72

.

.

323

jlh

e / Estimated.
jy/ P r e l i m i n a r y .
1 / E&ta p r e s e n t e d i n t h i s e x h i b i t d i f f e r f r o m 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 i n g 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 , a r e i n c l u d e d . Long- te r m s e c u r i t i e s a r e d e f i n e d a s t h o p e m a t u r i n g i n more t h a n 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 government:: 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 . S o u r c e : S e c u r i t i e s and Exchange Commission.
3 / I s s u e s n o t g u a r a n t e e d by t h e U. S. Government. S o u r c e : l o n g - t e r m , S e c u r i t i e s
and Exchange Commission; s h o r t - t e r n , F e d e r a l D e s e r v e .
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 n o t e s , w a r r a n t s o r c e r t i f i c a t e s and P u b l i c
Housing A u t h o r i t y n o t e s .
In some i n s t a n c e s PI1A n o t e s i n c l u d e d may have a somewhat
Digitized
l o n gfor
e r FRASER
t e r m t h a n one y e a r . S o u r c e : Bond b u y e r .
„



11. Ill
Lai-fC Lui.c-tAii-ui 1'ub.Lj r .".rcuvity Tssiu::; l\",r l.'vu C a p i t a l
(Ut.iu-r t.lian U. Id, Treasury) 1 /
Proceed:; of Laiyo Isruiuu O f f e r e d
( M i l l i o n s of d o l l a r s )

Corporate

Month

1957 - November
December
1958 - J a n u a r y
February
March
April
May
July
August
September
October
November

I

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

Other 2 /

3UU
hOh

1|20
399
318
60S
1,093
725
. 3#
• 281
771
#9
825
259
227

. lbli

1,10
553
182
300
505
195
27 5
109
288
172
2#

1,357
266
653
16U
86
11
18
209
100

Large I n d i v i d u a l I s s u e s O f f e r e d December 1 through 12

Issuer

Type 3 /

1 Amount
Coupon
(millions
Offering
Maturity
net i n t e r yield
of
dollars)
est cost

Kating

CORPO loVTE
P a c i f i c Gas & E l e c t r i c Co. 1 s t r e f . m t p . b d s . 6 5 . 0 . 1 9 9 0
P u b l i c S e r v i c e E l e c . & Gas
Com. s t k .
26.L
1 s t mtg. b d s .
Potomac E l e c . Pwr. Co.
25.0
1993
P. L o r i l l a r d Co.
Com. s t k .
2U.8
"Southern B e l l T e l . & T e l .
Deb.
70.0
1993
P h i l a d e l p h i a E l e c . Co.
1 s t r e f . mtg* bds 5 0 . 0 . 1986
A r v i d a Corp.
Com. s t k .
27.5

1, 1 / 2
^ 5/8
5/8
13/8

.

a . 50

Aa

h.55

Aa

L55
1.38

Aaa
Aaa

STATE AND LOCAL GOVERNMENT
S t a t e of Ohio
S t a t e of C a l i f o r n i a
E a s t .Baton Rouge P a r . , La.
S t a t e of tiew .York
1
Chicago Bd. of E d u c . , 1 1 1 . |




G.O.
G.O.
G.O.
G.O.
G.O.

"

30.0
100.0
22.5
51.0
25.0

1959-73
1959-05
1960-79
1960-79
17-1-78

2.72
3.60
3.60
2.86
n.a.

1.60-2.80
1.80-3.65
2.00-3.1-0
1.70-3.00
2.50-3.50

Aaa
Aa
A

H.llt

G-2
Large I n d i v i d u a l I s s u e s O f f e r e d December 1 t h r o u g h 12 ( C o n t ' d )

Issuer

Type 3 /

Amount
Coupon
Offering
'millions
Maturity net i n t e r - y i e l d
of
dollars)
est cost

Rating

OTHER
R e p u b l i c of A u s t r i a
Bonds
25.0
1973
5 1/2
5-91
Union of South A f r i c a
Bonds
2 5 . 0 1961-68 5, 5 1 / 2 5 . 0 0 - 5 . 7 0
A
Metro. T o r o n t o . Canada
S.F. deb.
2 8 . 6 1959-88
h 3/U 3 . 5 0 - 1 . 8 0
A
,
n.a.—Not available.
1 / I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and o v e r ;
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 o v e r .
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 R e c o n s t r u c t i o n and
Development i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e r a l a g e n c i e s .
3 / Ii' t h e 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. d e n o t e s g e n e r a l .
o b l i g a t i o n s ; R e v . - U t . , r e v e n u e o b l i g a t i o n s s e c u r e d 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 s e c u r e d o n l y by revenue f r o m q u a s i - u t i l i t i e s ;
R e v . - S . T . , r e v e n u e bonds s e c u r e d by revenue from s p e c i f i c t a x e s o n l y ; R e v . - R e n t . ,
revenue bonds s e c u r e d s o l e l y by l e a s e payments.




H.il*

Exliibit 11
forthcoming Large Long-term P u b l i c ! l e c u r i t y O f f e r i n g s f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
During month f o l l o w i n g
d a t e shown
S t a t e and
Corporate
Other 2 /
l o c a l govt.

computation
1957 - Oct. 31
Nov. 29
Dec. 31
1958 - J a n . 31
Feb. 28
Mar. 31
Apr. 30
May 29
June 30
J u l y 31
Aug. 29
S e p t . 30
Oct. 31
Nov. 38

1*5 8
383
378
1*98
1,123
555
356
266
768
161
785
113
20JU
301

339
363
3L5
370
131*
298
193
177
225
55

30
18
150
110
150
36

2la

295
258
229

71

Subsequent t o
d a t e shown
S t a t e and
Other 2 /
Corporate
l o c a l govt.
.

815
1,193
1,161
1,378
1,208
670
561
1*61*
1,01*8
381
911*
216
326
ltOl

51*3
558
561*
1*87 3WL
330
1*93
. 208
2#
125
1*35
521*
675
683

1*5
63
165
110
- 150
36

71

Forthcoming Large O f f e r i n g s , a s of December 12
Issuer

P a c i f i c Telephone and Telegraph Co.
W a s h i n g t o n Water Power Co.
*San Diego Gas & E l e c t r i c Co.
Consumers Power Co.
Montana Power Co.
Commerce O i l -Refining Corp.
I n d i a n a & Michigan E l e c t r i c Co.
-v

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

Common s t k .
1 s t mtg. b d s .
S.F. deb.
Pfd..stk.
1 s t mtg. b d s .
3eb., b d s . & common
1 s t mtg. b d s .

16.6
15-0
15.0

15.0

20.0
1*5.0

20.0

Dec. 30
( r i g h t s expire)
Jan. 8
Jan. 9
Winter
Winter
Winter
Winter

STATE AND LOCAL GOVERNMENT

New York S t a t e Power A u t h o r i t y
•^Sacramento Mun. Ut. D i s t . , C a l i f .
Chesapeake Bay F e r r y Commission
D e t r o i t - M e t r o . Expressway
Massachusetts Port Authority
OTbER
None

Type




Rev.-Ut.
Rev.-Ut.
Rev.-Ut.
Rev.-Ut.
Rev.-Ut.

200.0

25.0

lWl.0
35.0
75.0

Jan. 6
Jan. 15
Winter
Winter
Winter

H.lU

H-2

*-•-Included i n t a b l e f o r f i r s t t i m e .
1 / I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of $15 m i l l i o n and o v e r ; S t a t e and
l o c a l . g o v e r n m e n t i s s u e s of $10 m i l l i o n and o v e r .
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 R e c o n s t r u c t i o n
and Development i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e r a l a g e n c i e s .
N o t e . — D e l e t i o n s f o r r e a s o n s o t h e r t h a n s a l e of i s s u e : None.




H.ltt

" Exhibit I
Yields on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1/
Date

1952 - 1957
High
Lav s
19$8 - / Januaiy
February
March
April
May 7.
13
15
16
20
21
22
28
June 10
17
25
July 2
9
18
23
Oct. 7
15
28
29

Aa-rated <offering y i e l d s
A-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
(per cent)
(per cent) seasoned y i e l d s
(basis points)
(basis points)
5.00(8/lU/57)
2.93(3/31/54)

87
-3

5.50(11/7/57)
3.00(3/17/51«)

123
-15

*3.60,,
3.89^/
U.08
3.91

-8
22
35
18

3.96^/
I1.07
Ll6
U.01
U.00.

3
9
-1
8
3

U.07
U.35

U
32

Loo
3.95

-1
-6

3.90

21

3.85
3.85

16
16

3.85
3.82
3.95

17
12
2k

LOO
U.IO
U.IO
U.57
U.50
U.Uo 2/
U.U2^

25
28
29
25
22
12.
1U

'

3.98^/

1

U.35^

31

*—Single observation, not an average.
1 / Covers only 30-year f i r s t mortgage bonds, as reported in Moody's Bond
Survey, Except where indicated, the actual y i e l d figure and the amount above
seasoned y i e l d s are averages of offerings during the indicated 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 on seasoned i s s u e s of
similar q u a l i t y f o r the same day. Average maturity f o r the seasoned i s s u e s
v a r i e s from 26 to 28 years.
2 / Provides f o r a 5-year period during which issue may not be called f o r
refunding a t a lower coupon rate. Monthly averages so marked include one or more
i s s u e s with such a provision. Other i s s u e s have no such provision.




H.lk
Sources and Uses of^Funds 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 )

U. S. .
Govt,
securities
1956 - Oct.
Nov.
Dec.
Value of A s s e t s
a t End of Year
1 9 5 7 ^ - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
.Sept.
Oct.
Nov.
Dec.
Value of A s s e t s
a t End of Year
1958 - Jan.
Feb.
Mar.
Apr.
May

16
16
166

-101
-226

1,273

7,519

. -127
-37
-k2
: -18
59
-9
-30
k7
-17
22
138

65
-33
-109
11
-79
-62
5
-32
- • -32
13
-92.
-181

1,29k.

7,028

-93
-51
20
-17
7k
-20
20
-17
-1
-19

171
15
.-119
11
-70
k7
175
k2
7
12

28

hi

Uses of Funds 1 /
S t a t e and
Busilocal
ness
govt,
securities
ities
108.
98
208

Mortgages

k
12
6

289
307
28

115

39,552

2,23k

32,99k

12,272

202
169
200
172
169
18k
32k
163
198
2kk
212
258

12
9
10
26
2
lk
11
7
13
10
10

286
205
197
172
186
lkk
163
195
15k
170
132
237

87
lk7
102
3k
135
65
87
77
93
6
110
7

k2,133

2,377

35,271

13,206

221
106
277
208
135
19k
182
128
201
303

51
10
23
13
28
35
' 2k
36
19
25

191
125
lko
113
116
10k
123
lko
139
186

111
lkk
60
19
167
IkO
k6
lk7.
7k
53

;•

5#
. k5l
357
k27
ki9
392
58k
38k
k6?
k29.
39k
k69
101,309
652
3k9
kOl
3k7 '
/k50
500
570
k76
k39
560

July
Aug.
Sept.
Oct.
Nov.
Dec.
J_
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 g r o s s , u s e s .
2 / The sum of t h e twelve monthly changes w i l l n o t equal t h e d i f f e r e n c e between
t h e a s s e t v a l u e s f o r 1956 and 1957 shown because of adjustment of t h e change d a t a t o
e l i m i n a t e t h e e f f e c t of a change in e s t i m a t i n g p r o c e d u r e s .
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 f u n d s
by Savings and Loan A s s o c i a t i o n s
( I n m i l l i o n s 01' d o l l a r s )
Uses of Funds 1 J
u. s .
Govt.
MortCash
gages
securities
1956 - Oct.
Nov.
Dec.
Value of A s s e t s
a t End-of Year
1957^/-- J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept..
Oct.
Nov.
Dec..
f Assets
of Year
Jan.
Feb.
Mar.
Apr..
May

Other
assets

Total
sources
or uses

Sources of Funds
Net
change . Borrowsavings
ing 2/
capital

66

4o5

36
58
302

14
25
11

356
274
232

81
-21

173
437
523

377
822

61

60
-380

2,119

2,782

35,729

2,199

12/875

37,148

1,347

4,380

-171
-I4O
-49
39
185
-320
-103
11
-18
86
431

143
115
89
26
14
-4o
41
24
26
-5
23
-65

-20
56
86
115
140
31
-94
59
56
87
60
-5

172
390
508
492
639
597
34
44o
450
480
447
614

-211
-69
-19
11
21
101
-37
37
47
16
10
125

46
151
175
173
166
-325
123
151
79
103
59
-434

2,146

3,173

hO,007

2,770

48,138

-119
173
209
116
38
177
-297
-70
-78
-108

-19
-1
38
13
81
4o
ill
147
107

bh

194
247
335
398
528
582
533
557
574
605

-2k

221.
^259
358
400
446
421
407
460
357 .
417
278
254 .

12
8
10
102
100
-37
-80
9
42
131 .

.

337
308
.352
308
452
821
-52
252
-324
361
378 .
923
41,912

1,379

4,847

131 '
450
409
373
484
553
654*
356
679 .
508
803
937
62
196
607
353
685
' .440
501
735

-377
-127
-69
113
-3?
169
-39
55
85
58

58
163
158
185
203
-303
173
199
160
176

July
Aug.
Sept.
Oct.
Nov.
Dec.
tJ Revised.
1 / Uses of f u n d s r e p r e s e n t n e t chanp.es 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 p r e s s , u s e s . Savings and loan a s s o c i a t i o n s do n o t hold 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 of S t a t e and l o c a l government bonds, presunod t o be s m a l l ,
are.not available.
2 / Advances from Home Loan banks and o t h e r borrowing.
Source: ' f e d e r a l Savings and Loan Insurance C o r p o r a t i o n .




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 )

Cash

1956 - Oct.
Nov.
Bee.

-33
-22
lliO

Uses of Funds 1 /
Sources of Funds
li. S. • B u s i - S t a t e and
Total
Net
local
Govt,
Morts o u r c e s change '
govt.
Otiier
Other
securgages
securor, u s e s . i n
itiesf!/
ities
deposits
ities
-147
-78
-10

13
-7
5

Value of A s s e t s
1957 - J a n .
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of A s s e t s
a t End of Year

,-89
13
-56
12
71
-73

-b2

27
-2I4
6
125
890

21
20
18
-76
-19
-72
-7
11
-17
-136
-136
-26
7,552

-

68
51i
83
63
62
72
62
61
55
60
93
75
It, 331.

-5
1
8

205
.175
11,6

-15
53
-L2

669 19,529

698

33,311
137
19li
273

100
llil

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

682 20,951

761

6
1
2
2
-1
7
-3
2
-3
7
-7

136
92
127
121
127
118
122
111
103

12b

18
122
2li7 "

62
50
399
30,032

35,168

-hU
72
-152
3,279

36
Ii05

52
82
35
27
77
-115
66
76
-18
-51i
72
-106

31,695

3,1,73

3h

216
150
82
166
108
-20
108
299

i

.
.

85112
2#
7
169
265
16
90
206

3k

—60
1958 - Jan.
160
130
liU
25
278
23
23k
Feb.
86
63
-21
20 - 2 m
L
102
111 9
99
Mar.
86
6
•111
36
1#
3li3
336,
9
7
Apr.
-85
-17
h
I51i
97
-29
1
9/i
93
' May
-62
120
1,0
88
-5
101
-19
269
195
June .
261,
Ii2
- 2 h
21,
-36
300
-36
253
5
(if
:-i66
July
11
8
-28
3lt
6I1
152
193
Aug.
8
2
19
198
108
-5
29
251
lli3
Sept.
18
-27
2
181
29
267
3h
-30
237
Oct.
-8
-6
-I16
-92
liO
195
-3
95
-55
Nov.
Dec.
.
l / . U s e s of f u n d s r e p r e s e n t n e t changes in a s s e t s and t h e r e f o r e r e l l e c t n e l ,
r a t h e r than g r o s s , u s e s .
2 / I n c l u d e s Canadian government and p o l i t i c a l s u b d i v i s i o n s , I n t e r n a t i o n a l bank
f o r R e c o n s t r u c t i o n 'and Development, non-guaranteed Federal agency and o t h e r bonds
a s v e i l a s c o r p o r a t e bonds and s t o c k s .
Source: N a t i o n a l A s s o c i a t i o n of J-iutual Savings Banks and F e d e r a l Deposit I n s u r ance C o r p o r a t i o n .