Full text of H.16 Capital Market Developments : July 17, 1961

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Not f o r Publication

DECONTROLLED AFTER SIX MONTHS

H.Ik

July 17, 1961.

196'

/CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES

(Including Monthly Review of Sources and
Uses of Funds of F i n a n c i a l Intermediaries)
Public s e c u r i t y f i n a n c i n g to obtain new c a p i t a l was i n moderate
volume l a s t week and while corporate o f f e r i n g s a r e to much l a r g e r t h i s
week, no l a r g e Sta te and l o c a l government i s s u e s are"oh the c a l e n d a r .
Last week, ending July l i t , due p r i m a r i l y t o the e x p i r a t i o n of r i g h t s
o f f e r i n g s , corporations sold l a r g e s e c u r i t y i s s u e s aggregating $90
m i l l i o n . S t a t e and l o c a l government bend o f f e r i n g s t o t a l e d $113 m i l l i o n .
This week, ending July 21, corporate i s s u e s t o t a l i n g $221 m i l l i o n a r e
scheduled c o n s i s t i n g p r i m a r i l y of t h e Shell Oil Company $200 million
i s s u e of debentures.
Bond y i e l d s . While y i e l d s on both Aaa and Baa rated corporate
bonds continued t o r i s e , y i e l d s on Aaa r a t e d bonds e s t a b l i s h i n g another
new high f o r the y e a r , y i e l d s on<Aaa r a t e d S t a t e and l o c a l government
bonds declined s l i g h t l y . Yields on long-term U. S. Government bonds
were unchanged.
Short- and i n t e r m e d i a t e - t e m i n t e r e s t r a t e s . Yields changes
on s h o r t - and intermediate-term U. S. Government s e c u r i t i e s were a l s o
mixed during t h e week. Yields on 3-month and 6-month Treasury b i l l s
declined 6 and 3 b a s i s p o i n t s , r e s p e c t i v e l y , while y i e l d s on 3-5 year
U. S. Government o b l i g a t i o n s rose 3 b a s i s p o i n t s . I n t e r e s t r a t e s on
d i r e c t l y planned f i n a n c e company paper with 90-179 day m a t u r i t y , a s well
as a l l other s h o r t - and intermediate -term i n t e r e s t r a t e s , were unchangp d.
Stock market. Common stock p r i c e s , a s measured by Standard
and P o o r ' s composite index of $00 s t o c k s , declined 1 p e r cent on balance
l a s t week, closing on July Ik a t 65.28. Trading volume continued a t
about the r a t e of l a s t week, averaging 3.0 m i l l i o n shares a day.
I n s t i t u t i o n a l i n v e s t o r s . Savings inflows a t l i f e insurance
companies, savings and loan a s s o c i a t i o n s , and mutual savings banks
increased sharply during May. Savings were l a r g e r a t each of t h e s e
i n s t i t u t i o n s with the combined n e t inflow t o t a l i n g $1.5 b i l l i o n , onef i f t h l a r g e r than i n May i960. Savings flows through time and
savings deposits a t commercial banks were a l s o s u b s t a n t i a l l y l a r g e r
than a year ago.
Combined inflow f o r t h e s e t h r e e major savings i n s t i t u t i o n s
thus f a r t h i s y e a r has aggregated 56,5 b i l l i o n , 30 p e r cent l a r g e r than
in the f i r s t f i v e months of i960, and o n e - f o u r t h l a r g e r than i n both
1958 and 1959.




Savings Growth a t Major -Financial I n s t i t u t i o n s
F i r s t Five Months
(Millions of d o l l a r s )
Year

Total

Life
insurance
companies

1958
1959
I960
1961

5,1*52
5,1*52
5,025
6,530

2,269
2,387
2,258
2,7k5

Savings
|
and loan
1
associations |
2,190
2,391
2,502
3,068

Mutual
savings
banks
993
671
265
717

L i f e insurance company a s s e t s increased $51jl million in May,
5 p e r cent more than a y e a r e a r l i e r . Net a c q u i s i t i o n s of business s e c u r i t i e s were l a r g e r t h a n during the p a s t s e v e r a l months, but were down
o n e - f o u r t h from a year e a r l i e r . Net a c q u i s i t i o n s of r e a l e s t a t e mortgages were i n l i g h t volume, o n e - f i f t h l e s s than i n i960. Liquid a s s e t s ,
i . e . , cash and U. S. Government s e c u r i t i e s increased sharply in May in
c o n t r a s t t o a d e c l i n e in holdings of t h i s type i n recent months and a
year e a r l i e r .
The inflow of savings t o savings and loan a s s o c i a t i o n s continued
t o advance a t a record pace in May. Share c a p i t a l increased $802 m i l l i o n ,
27 per cent more than i n the corresponding month a y e a r e a r l i e r . Both
new savings c a p i t a l and withdrawals were l a r g e r t h i s year than l a s t , bub
t h e former increased more than the l a t t e r . Borrowings mainly from t h e
Home Loan Bank increased as usual i n May. Net mortgage a c q u i s i t i o n s of
$816 m i l l i o n were 29 p e r cent above May i960 and represented the
l a r g e s t monthly change since June 1959.
Deposits a t mutual savings banks increased $lllt m i l l i o n ,
almost double the i n c r e a s e during May i960. Net a c q u i s i t i o n s of mortgages i n May of $18? m i l l i o n were one-eighth l a r g e r than a year ago.
A l l o t h e r a s s e t s increased s l i g h t l y except f o r U. S. Government s e c u r i t i e s ,
which, however, declined l e s s than i n May i960.
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 the a t t a c h e d e x h i b i t s .

Capital Maricets 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.




H
Ex
LONG-TERM

BOND

y.'i'L *.

YIELDS

HIGH-GRADE

per onnum
LOWER-GRADE




STATE AND LOCAL

Exhibit B - Tables f o r Exhibit A

-5-

Long-tera Bond Yields
High-grade
Bate

Corporate
Aaa 1 /

State and
local
government
Aaa 3 /

U. S. Govt.
long-tera 2 /
(per cent)

195& - Low
1957 - High
1958 - Low
1959-60 - High
I960 - Low
1961 - High
Low

2 . 8 5 (4/23)
It. l i t (9/27)
3.55 (5/2)
It. 6 1 (1/29/60)
It. 23 (9/9)

lt.iti i i / i k )
It. 21 (3/17)

lt.lt2
3.75
3.93
3.70

June
June
June
July
July

It. 33
lt.3lt
It. 36
It. 39
It.ltl^

3.86
3.90
3.93
3.92
3.92

16
23
30
7
ill 2/

2.1t5 (8/6)
3.76 (ioAa)

1.90 (9/2)

2.99 ( 9 A )
3.37 ( 7 / 6 )
3.12 (2/23)

(9/24/ee)

.30
.60
.22
.59
.19
•57
.ItO

.30
.50
.31*
.92
.53
,76
.it6

3.37
3.37
3.37
3.37
3.36

'

•w
.a
.143
.lt7
.li9

.53
.56
.55
.56

3 . U 5 (e/29)

2.6it (5/1)

3 . 0 7 (4/25)

(i/Veo)
(V5)
(6/30)
(5A2)

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

3.65

Lower-grade

Date

Corporate
Baa 1 /

State and
l o c a l govt.
Baa 1 /

Spread between
Aaa and Baa
State and
Corporate
l o c a l govt.

(per cent)
3.1*1* (12/31)

1951| - Low
1957 - High
1958 - Low
1959-60 - High
i960 - Low
1961 - High
Low

5.12 (1/27)
5.00 (lt/21) '

lt.16 ( 3 / 2 3 )
3.9lt (7/6)

June
June
June
July
July

5.03
5.01l
5.05
5.07 ^
5.08^

3.99
3.97
3.9lt
3.9lt
3.95

16
23
30
7
lit e /

5 . 1 0 (11/29)
It. 5 1 (7/11)
5 . 3 6 (?/l2/60)
it. 98 (9/9)

.52
1.27
.77
,81t
.71
.81
.67

2.93 «V»)
It. 5 1 (e/29)

3.61t (#A)

L 1*6 (1/7/60)
3 . 9 8 (12/29) ,

.

.

.70
.70
.69
.68
.67

g / Preliminary.
\ / Weekly average of dally figure*# Average term of beads Included l e 23 *26 year#.
2/ Weekly average of daily figure*, the series lnoludes bond* due or callable In 10 years or sore.
3/ Thursday figures. Only general obligation beads are Inoludsdj average term l e 20 years.
Mote.—-Highs and lows are for lixtvidml series and may be en different dates for different series,
fbr spreads, high refers t o widest, and lew to narrowest.




.96
1.21
.93
1.08
M
.93
.57
.62
.60
.57
.57
.59

VO

SHORT-

AND

I N T E R M E D I A T E - TERM

INTEREST RATES

GOVERNMENT

(V. 3 . 5 VEAt ISSUES
Mo.k.^Y

|
/ f
>w^A/

1 i X / /
M

i. 1.

DISCOUNT IATI

1

Market Yi«

1
BANKS

AND

OTHER

PRIVATE

I DISCOUNT J
lAItS
/




BORROWERS

A

w

-7Exhibit D - Tables f o r Exhibit C
3 i o r t - and Intermediate-tena I n t e r e s t hates
Government
Date

I11951*

Discount
rate
__1L

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

3-month
b i l l s 2/
.61 (6/11)

- Low
11957 - High
*1958 - Low
11959-60 - High
1
1960 - Low
41961 - High
4
Low

1.50
3.50
1.75
Loo
3.00
3.00
3.00

2.56 ( 3 / 3 )
2.17 (1/27)

3.02
5.07
2.38
2.75
2.35

June
iJune
June
July
July

16
23
30
7
ll* 2 /

3.00
3.00
3.00
3.00
3.00

2.32
2.31
2.27
2.31
2.25"

2.56
2.50
2.1*5
2.49
2.1*6

\

Date

3.61*
.58
k.$9
2.11

do/is)
(5/29)
(1/8/60)
(10/28)

3-5 year
issues 2/

Spread between y i e l d s on
3-month b i l l s and y i e l d s on
6-mo. b i l l s | 3 - 5 yr. issues

1.66 (V3o)
ix.Oh (10/18)
2.1U (t/6)
3.71* (6/23)
3.15 (5/12)

.26
.79
.16
• 2f>
.12

.66
.86
.oU
1.81
.38
1.1*7
.92

3.67
3.71*
3.71
3.69
3.72

.18
.19
.18
.18
.21

1.35
1.1*3
1.1*1*
1.38
1.1*7

(12/26)
(1/8/60)
(12/30)

5 . 0 0 (12/24/89)
3.1)0 (12/30)

(3/3)
(V28)

M
m MI
mrnrn

'

Btoka an0, Othierr Private Borrowers
Stock Exchange
c a l l loan y

Finance company
paper 2 /

Federal
funds Jj/

Spread between
3-rao. b i l l s and
finance co. paper

(per cent)

I

Jl951* - Low
41957 - High
91958 - Low
41959-60 - High.
^1960 - Low
1.961 - High
1
Low
-June
tJune
June
July
July

Prime
rate 1 /

16
23
30
7
ll* jo/

.

3*00
l|,5q
3*$d
5.50
4.50
l*.5o
1*.5Q

3.00
l*.5b
3.50
5.00
1*.50
l*.5o
4.50

l*.5o
l*.5d
l*.5o
l*.5o
l*.5o

l*.5o
l*.5o
l*.5o
l*.5o
l*.5o

fj

1

1.25(1*/)!)
3,88.(11/15)
lU3(«/8):
5!. 1 9 (1/22/60)
2 ; 8 8 (12/30)

n.a.
3.50 (li/e)

2.88 (3/10)
2.50 (7/11*) .

2.85 (2/17)
.1*3 (1/27)

2.75
2.65
2.51*
2.50
2.50

1.15
2.25
.85
.85
.85

. 1 3 (5/29)
4 . 0 0 (6A3/60)
.95 U2/2)

.

0
.63
-.35
1.02
.22
.56
.11
.1*3
.34
.27
.19
.25

Weekly rate ehowa lsitBmt i n effect at end of period.
—
Stock Exchange M i l Itattfata la going rate on call lean* ssoured by eustemers' stock sxohange eollateral at
Men York City banks,. him rate I s that ehapged by large banks en «hort»tero leans to business borrowers of
the highest credit standing.
2/ Market yield; weekly averagea computed from daily oloaing bid prices. Series of 3-6 year issues consists of
selected notea and bonds.
•
3/ Average of dally rates published by finance companies for dlreetly placed paper for varylag maturities In ths
90-179 day ragge.
4/ Weekly average uf dally effective rate, which Is the rate for ths heaviest vol w e of purchase and sale transactions
as reported to the Federal Reserve Bank of Mew York,
'
Mot*.--Highs and lows are for individual series and may be on different dates for different dates for different series.
h>r spreads, high refers to widest, and lew to narrowest.




%

STOCK

MARKET

Million! of Shores

PRIVATE H O U S I N G
Monthly

STARTS
Ihouionds

/including

A h ir \
V

V^l

1954
1955
1956



K\\
ivu
Jj V /
i
1 /X y
/

/

\

v

i

/

'

OLD

CONVENT

/I
1

X
\

I

1
1957

1951

1959

1940

„

1941

ol

li n i l i

Exhibit.K - Tables f o r Exhibit E
Stock Market
Stock p r i c o
index 1 /

Date

1957-60 - High
Low
1961 - High
Low
MayJune 30
July 7
July Ik £/

Trading
Common
stock
volume J /
y i e l d s 2/ (millions
(per cent) of shares)

39.48 (12/20/37)
67.27 (5/19)

58.18 (1/6)

3.08
4.72
2.90
3.32

b.9
l.li
5.8
2.7

66.50
65.62
64.64
65.77
65.28

2.92
2.99
3.03
2.97
3.00

4.6
3.3
2.7
3.0
3.0

6 0 . 5 1 (7/31/59)

Stock market customer c r e d i t
Customers *
Bank
""
debit b a l loans to
ances 4 / . "others" 5 /
(In millions of d o l l a r s )

Total

4,76k
3,554

(4/59) 3 , l j 0 1 (4/69) 1 , 3 7 3 (5/59)
( V 5 8 ) 2 , 4 0 2 (12/57) 1 , 0 6 0 ( l l / § ? )

5,382(5/61)1,, 056(5/61) 1,3(0(7/4)
1,,1,16(1/61)3,253(1/61) 1,152( 3/8)
5,382
n,a.
n.a.
n.a.
n.a.

14,056
n.a.
n.a.
n.a.
n.a.

1,326

1,31*3
1,31*3

1,360
n.a.

n.a,—.Not a v a i l a b l e .
& Fr*ll«.Uary.
•
1 / Standard and Poop's cotapoelte index nt 5U0 ecanon stocks, weekly c l o e l i y p r t e e i , I94l-43»10. Kcntl,ly date are
average* of d a l l y flfiuros rather than of M d c y ' e only. Hlgk« and lows are for M d a y t * data only,
2 / Standard and Poor's ocapoolte stock y i e l d baned on Wednesday data converted t o weekly e l o e l n e ' p r i c e s by fe.1eral
Reserve. Yields shotm are for dates on which price Index reached I t s high or lew.
3 / Averages o f d a l l y trading volivae on the New York Stock Exchange,
4 / End of month f i g u r e s f o r member firms of the Haw York Stock Exchange which carry margin accounts* excludeu balances
secured by U. S . Government o b l i g a t i o n s .
6 / Wednesday flgureo f o r weekly reporting member tanks. Excludes loans for purchasing or carrying U. S, Government
jreeurlties. Prior t o July 1 , 1959, such l o w s are excluded only a t banks I n Now York and Chicago. Weekly reportlr«g
banks account for about 70 per oont of loans, t o others. For further d e t a i l see B u l l e t i n .

P r i v a t e Housing S t a r t s 1 /
Date

1960 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1961 - Jan.
Feb.
Mar.
. Apr. p /
May e /

Unadjusted
Total
Seasonally a d j u s t e d Unadjusted
VA
FHA
annual r a t e
(Thousand of u n i t s )
1,342
1,302

1,182
1,292

1,066
1,256

1,216
979
1,105
1,187
1,314

1,200

1,298

127
122
111
125
97
109
9k
65
70
76
105
112
124 .

25
. 26
24
26
22
23
20
lit
Ik
• 13
20
20
23

.

7
8
7
8
7
6
5
. 5
5
5
6
6
8

Conventional
95
88
80
90
68
81
69
47
51
58
79
86
93

T o t a l s t a r t s are Census e s t i m a t e s , which a r e not s t r i c t l y comparable with old nonfarm s e r i e s developed by BLS. A
dwelling u n i t I s s t a r t e d when excavation begins, a l l u n i t s l p an a p a r t a o n t s t r u c t u r e are considered s t a r t e d a t t h a t
time
FHA and VA s t a r t s a r e u n i t s s t a r t e d under commitments by t h e s e a g e n c i e s t o Insure or guarantee the mortgages.
As r e p o r t e d by FHA and VA, a u n i t i s s t a r t e d when a f i e l d o f f i c e r e c e i v e s the f i r s t compliance I n s p e c t i o n r e p o r t ,
which I s made before f o o t i n g s a r e poured I n some cases but normally a f t e r the foundations have been completed.
Capehart m i l i t a r y housing u n i t s a r e excluded. Conventional s t a r t s a r e derived a s a r e s i d u a l , although t o t a l and
FHA and VA s t a r t s a r e not s t r i c t l y comparable I n concept or t i m i n g ; t h e y Include both u n i t s financed by conventional
mortgages and u n i t s without mortgages.




Exhibit 0
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

1961
January
February
March
April
May
June
July
August
September

580
66?
562
2,115
e/1,000

a/i,ioo
e/1,000

October
November
December

— New caip i t a l
State and l o c a l 2/
Corporate 1 /
! 1959
1961
I1 I960
1 I960
I 1959

ea

85

738
6I t

708
661
759

577
. 1,044 .

•894
785
887

678
a/550
e/1,0#

* 736
967
726

740
703

570

890
' 956
852

535'

e/550

S :
900 '

700
611
568

;

61|8 .
638

719
545
991 .

8
987

192
606
683

443
521
470

3W
501
191

593
450
478

quarter
quarter
quarter
quarter

1,809
e/4,215

2,145
2,382
2,128
2,698

2,20k
2,567
1,979
2,6142

2,128
e/2,278

1,880
2,256
I >780
1,340

2,145
2,488
1,433
1,521 .

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

e/6,330

1,527
6,955
9,653

4,771
6,750
9,392

e/h,ko6

1,136
5,916
7,257

6,067
7,508

1st
2nd
3rd
4th

4,634

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

quarter
quarter
quarter
quarter

1,55k
e/J4#065

Tear
17
2/
2/

1,716
2,165
2,016
2,317

1,999
2,U12
1,716
2,503

8,216

8,630

S e c u r i t i e s and Exchange Comn&ssion estimates of net proceeds.
Investment Bankers Association of America estimates of p r i n c i p a l amounts.
Total new c a p i t a l i s s u e s excluding o f f e r i n g s of sales and consumer finance
companies*




Exhibit H
Other Security Offerings
( I n millions of d o l l a r s )
Gross long-term 17"
Foreign government 2/
Federal agency 3/
1961
1961
|
I I960
I960
1 1959
1
January
February
March

6 .
29
20

1959

2
175
70

81
60
2

April
Hay
June

31*
72
1*0

. 58
50
1*2

July
August
September

25
1
36

85
1
35

199

October
November
December

31*
2
1*1

33
30
70

160
11*9
181

86

1,672

707

Year

'

252
100

199
175

11*8
351*
—

98
150

—

51*7 -

533

182
150
150

Net short-term 1*/
State and l o c a l government 5/
Federal agency 3/
January
February
March

160
195
368

58
11*0
-80

April
May
June

103

70
-11*6
-157

197
-25
-197

July
August
September

1*8
1*15
-175

57
392
131

95
23
-201

362
133
79

October
November
December

-16
5b
-189

-81
-176
-117

-23
-33
-250

280
21*0
1*1*

18

362

-633

Year
e/
1/

•

-1*
181
h

-11*1*
-162
-171*
-79

-196
-202
-59
-277
170 '
320

-82
176
33
. 50
368
286

1,969

Preliminary.
These data d i f f e r from thorn# In Exhibit 0 i n that refunding iaau«s ( a s well a s mw capital I s s u e s , are Included.
Long-term s e o t r l t l e s are defined a s those maturing i n more than one year.
2 / Includes s s o u r l t l e s o f f e r s d In the United S t a t e s by foreign governments and t h s l r subdivisions and by Internutlonal organizations. Source I S e c u r i t i e s and Exchange Coavnisslon.
3 / Isoues not guprantmed by the U. S . Government. Sourcei long-term, S e c u r i t i e s and Exchange Commissi en; shortterm , Treaatvy Department and federal Ressrvs.
4 / These data d i f f e r from those i n Odd b i t 0 and above In that they represent now o f f e r i n g s leBs retirements, whether
from the proceeds of refunding i s s u e s or from other funds, ftita Include only Issues with original maturity of one
ye»r or l e s s .
5 / P r i n c i p a l l y tax end bond a n t i c i p a t i o n notes, warrants or e s r t l f l c a t e s and Public Housing Authority n o t e s . In
aooik instances PHA notes Included may have a somewhat longer term than one year. Sourcei Bond Buyer and
Pddernl fifserve.




Exhibit I
Large Long-term Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large Issues Offered
( I n millions of d o l l a r s )
Month
i960 - June
July
August
September
October
November
December
1961 - January
February
March
April
May
Jme

Corporate

State and
local
government

442
303
581
266
566
1*65
26o
147
267
70
1,572
557
532

191
298
367
1*6
186
222
391
360
405
383
256
616

Other 2/
30
75
25
77
150
99
67
25
151

Large Individual Issues Offered July 1 through lit

Issuer

Type y

Amount
Coupon
Offering
(millions
r a t e or
Maturity
Rating
of
net i n t e r - y i e l d
dollars)
e s t cost .

CORPORATE
P a c i f i c Gas & Elec. Co.
Jim Walters Corp.
General Acceptance"Sorp.
Northern 111, Gas Co.
Hunt. Foods & I n d u s t r i e s
Harvey. Aluminum, Inc.
STATE AND LOCAL GOVERNMENT
Milwaukee County, Wise.
Dade Co. Port Auth., Fla.
City of Los Angeles, C a l i f .
Memphis, Tennessee
New York St. Housing
Finance Agency
OTHER
None




Com. s t k .
1st sub.deb.
Conv.cap.deb.
Com.stk.
3onv.sub.deb.
Com.stk.

63.6
20.0
15.0
22.3
38.8
29.3

G.O.
Rev.-Rent.
G.O.
G.O.

11. 4 1962-81
1.60-3.30 Aaa
3.07
17.3 1964-91 3 - 3 / 4 - 4 - 3 / 4 3.25-4.75 —
18.8 1962-81
1.65-3.60, Aa
3.39
1.60-3»55ar Aa
3.28
1'3.5 1962-91

Rev.

1981
1981

5-7/8
5

5.85
5.00

1986

4-3/8

4.38

51.9 • 1964-2004 3.97

2.20—4.00

Ba

—

ii.lh
footnotes
1/

Includes corporate and other 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 over;
S t a t e and l o c a l government s e c u r i t y o f f e r i n g s of *>10 million and over.
2 / Includes f o r e i g n government and I n t e r n a t i o n a l bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal agencies.
2 / 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. 0. denotes general
o b l i g a t i o n s j Rev.-lit., revenue o u l i gat ions secured only by income from
p u b l i c u t i l i t i e s j 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 c n l y j Rev.-Rent., revenue uonds secured solely bj l e a s e payments.
h / 1 per cent bonds of 1989-91 not r e o f f e r e d .




-Ill-

Exhibit J
Forthcoming Large Long-term Public Security Offerings f o r Mew Capital
(Other than U. S. Treasuiy) 1 /
Expected Proceeds from Forthcoming Large Issues
Subsequent to
date shown

During month following
date shown

Date of
computation

Corporate ^

1960 - June 30
July 29
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 30
1961 - Jan. 31
Feb. 28
Mar. 31
Apr. 28
May 31
June 30

237
596
216
276
ao
260
91
^ 110

55

187
521

^ y t . Other 2/
180
275
283
212
258
2\&.
la 2
181

Corporate

30
77
50

3
236
431
195

15
72

455
1,006
731
836
585
335
1,036
1,0U6
1,125
1,700
687
611
666

Other 2/
380
321*
283
336
391
560
682
360
638
806
579
771
291

30
127
5o

15
75

Forthcoming Large Offerings, as of July l b
Issuer
CORPORATE
Automatic Canteen Co. of America
Shell Oil Co.
Union E l e c t r i c Co.
Northern Natural Gas Co.
Long Island Lighting Co.
#Kimberly-Clark Corp.
Northern State Power Co.
ConsumersPower Co.
Clark Equipment Credit Corp.
Commerce Oil Refining Corp.
Realty Collateral Corp.
Texas Eastern Transmission Co.
STATE AND LOCAL GOVERNMENT
State of Michigan
State of Alaska
State of North Carolina
State of Maryland
Public Housing Authority




Type

Amount
Approximate date
(millions • of o f f e r i n g
of dollars)

Conv. sub. deb.

20.8

- Deb.
1st mtg. bds.
S.F. deb.
1st mtg. bds.
S.F. deb.

200.0
30.0
35.0
25.0
35.0

1st mtg. bds.
1st mtg. bds.
Deb.
Deb., bds. & com.
Coll. t r . notes
Deb. & p f d . s t k .
Rev.-S.T.
G.O.
G.O.
G.O.

20.0
I40.0
20.0
1*5.0
20.0
50.0
35.0,
1I4.0
17.2
16.9
60.3

July 18
( r i g h t s expire)
July 19
July 26
July 26
July 27
l a t e July or
early August
Aug. 9
Aug. 16
Indefinite
Indefinite
Indefinite
Indefinite
July
July
July
Aug.
Aug.

26
26
26
2
2

-15J-2
Forthcoming Large O f f e r i n g s , a s of J u l y lit (Cont'd)
Issuer

Type

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

STATE AND LOCAL GOVERNMENT (Cont'd)
s-State of C a l i f o r n i a
*Cook County, I l l i n o i s
Orleans Parish School D i s t . , La.
Dade County, Florida
Jacksonville Expressway Auth.
S t a t e of Kentucky

G.O.
G.O.
G.O.
G.O.
Rev. -Ut.
G.O.

225.0
25.0
10.0
16.0
liO.O
35.0

:

Aug. 16
Aug. 22
Indefinite
Indefinite
Indefinite
Indefinite

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




Exhibit K
Yields on New and Outstanding
Electric fewer Bonds, Rated Aa and A 1/
Aa-rated o f f e r i n g y i e l d s

Date

1952-195!? - High
low
I960 • Jan.
Feb.
Mar.
Apr.
Hay
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1961 - Jan. 12
18
25
Feb. 8
16
16
Har. 23
24
Apr. 13
a

26

27
May 17

18

tl
19

June 8
13

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 ( p e r cent) seasoned yields
(per cent) (basis
(basis points).
points)
5.30
2.93

3

5.09
It. 82
lt.91
*4.88
4.83

45
25
37
32
26

U.60|C
4.652/
4.82
*5.00
4.60
4.55
4.44

22
23
37
49
11'
7
-2

U. 37

4.80
L5&
it. 57

43
29
13
20

14.65 .

27

4,07

ill

5.65 ...
3.00 (3^
*5.302/
4.97
5*.l5
*4.95
4.87

-15
28

35
29
11

6

*4.80

2lt

li.97

35

4.60
h.65
h.hl
U.50

-2
5
-13

-I

li.eoiZ

17
32

It. 72

19

It. 80

27

4.94
5.12
lt.92

40.

$

July 13
29
*—Single observation, not an average.
Covers only 30-year f i r s t mortgage bonds, as reported in Moocfy'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 - 1
encea between these new offering y i e l d s and y i e l d s on seasoned issues of
similar quality f o r the same day. Average maturity for the seasoned issues
varies from 26 to 28 years.
Provides
for a 5-year period during which issue may not be c a l l e d f o r refund2/
ing at a lower coupon rate. Monthly averages so marked include one or more
issues with such a provision. Other issues have no such provision.




-17-

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

Cash

U. S.
Govt.
ities

Value of a s s e t s a t
end of p e r i o d :
1957 - Dec.
1958 - Dec.
1959 - Dec.
i960 - Dec.
1961 - May

Uses of funds 1/
S t a t e and
Bu s i l o c a l govt; Mortgages
securities
i ties 2/

Other

Total
sources
or usee

(In m i l l i o n s of d o l l a r s )
1,291
1,363
1,307
1,332
1,303

7,028
7,182
6,858
6,1*1*1*
6,551

12,133
a,6i2
16,901
1|8,896
19,719

2,377
2,691
3,221
3,622
3,77 It

35,271
37,092
39,237
1*1,798
1*2,723

13,206
11*, 61*0
16,126
17,625
18,392

Changes:
1959 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-29
15
2
-25
16
-39
20
33
99

19
-15
10
39
95
-181
-18
-132
-168

258
182
227
191
81
. 82
203
195
219

51
82
31:
110
31
18
. 11*
18
21*

110
126
156
191*
167
207
21*5
235
301*

113
85
60
11*6
110
108
91
11*6
313

522
1*75
1*69
658
500
195
555
1*95
791

i960 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-71
-53
-30
39
-12
33
12
It
-51
90
-35
99

153
-36
-I67
-85
-62
-102
73
-ltO
-6
-62
23
-103

20JU
125
101*
1314
231
125
167
168
1*0
311
198
188

-21*
25
35
21
26
13
101*
1*3
82
33
26
17

3#
196
21*2
225
203
192
63
226
179
211*
208
277

—Ii 6
207
115
95
128
211
206
175
122
11
102
173

552
1*61,
• : 2<-9
1*29
, 511*
' 1*69
628
576
366
597
522
651

-51*
-9
-50
9
75

101
-3
-7
-1*7
63

21*2
128
11*8
135
170

1*9
31
33
3It
5

210
135
208
202
170

202
202
186
119
58

1961 - Jan.
Feb.
Mar.
Apr.
May
"
June
July
TJ

101,309 •
107,580
113,650
119,717
122,1*62

750
1*81*
518
1*52
51ti

Uses of funds represent net changes in 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, uses.
2/ Includes s e c u r i t i e s of domestic corporations only.
S o u r c e . — I n s t i t u t e of L i f e Insurance.




Exhibit M

-18-

Sources and Uses of Funds by
Savings and Loan Associations

Value of assets
at end of period
19^7 - Dec.
1958 - Dec.
1959 - Dec.
1960 - Dec.
1961 - May-

Changes:
1959 - Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
2/1960 - Jan.
Feb.
Mar.
Apr.
May

Sources of funds
Uses of funds l7~
Net
Total
U. S.
Borrow- Other
change
sources
Other
Mort/
Govt.
2
ing 3/
or uses savings
gages-/
capital
ities
irs)
(In millions of dollars
2,ll*6
2,585
2,183
2,715
2,81:6

3,173
3,819
1*,1*77
1*,586
1*,968

1*0,01*9
1*5,627
5:3,194
60,081*
63,061

2,770
3,108
3,676
l*,10l*
1*,1*95

1*8,136
55,139
63,530
71,1*89
75,390

1*1,912
1*7,976
51*, 583
62,151*
65,222

1,379
1,W*
2,387
2,191
1,71*6

4,81*7
5,719

-180

105

238

-3
108
23
-7
10

710
757

151
185
-36

786
990
1,083
367
735

1*11*
599
1,089
201
391*
1*1*7
396
1*81*
1,205

97
62
311*
31
119
11*8
136
56
222

275
329
-320
135
222
89
121
9h

1*68
1*09
623
372

-1*62
-111*
-126
37
5

27

-1*31
-1*2

-52

-69

61
371
-301

-3k
1*9
-27
80
329

21

-25
196
65

316
398

-119
65
93
106
203
-58
-127

-22
-2

21

-11*3
-33
-27
1
36
-3

p/1961 — Jan.

-95
59
3

93
192
107

Feb.
Mar.
Apr. r /
May
June
July

86

21*

86

11*1

1*28

101*

61*

1*60
1*68

-236

21*

626

-28

July
Aug.
Sept.
Oct.
Nov.
Dec.

30

881*

803
71*0
679

20

-18

11*0

635
780
615
713
61*3
605
501
572
371
1*27

689
69I*
816

-65

2

63
85
153
-38
-107
71
123
113
191

681*

653
631*
71*9
92
h9h
667

61*2

939
908
219

630

1,216
11*9
1*89

211
-127

776
959

558
1,388

22
1*9
-11*
51
272

262

591
553
705
1*17
802

-1*65
-80
-26
88
38

718

731

811*

71*9

922

813
1,155

602
667

7,11*1*
8,1*22

-678

86

199
170
233
301*
-519
lv7
207
80
161
16?

-701
136
276
21*3
308
315

Revised.
p/ Preliminary.
Uses of funds represent net changes in assets and therefore reflect net, rather
than gross, uses. Savings and loan associations do not hold business securities
and data on holdings of State and l o c a l government bonds, presumed to be small,
are not available.
Data for 1957 adjusted to include mortgage pledged shares as currently reported.
Advances
from Home Loan Banks and other borrowing.

Source.—Federal Savings and Loan Insurance Corporation.

y

Hi



Exhibit N

-19-

Sources and Uses of Funds
by Mutual Savings Banks

U. S.
Govt,
secur! ities
Value of a s s e t s
a t end of p e r i o d
1957 - Dec.
1958 - Dec.
1 9 # - Dec.
1960 - Dec.
1961 - May-

Uses of funds 1 /
Busi- S t a t e &
Total
local
sources
Mortgovt.
o r uses
gages
ities
2/
i l l i o n s of d o l l a r s )

890
921
829
87k
83k

7,552
7,266
6,86k
6,236
6,330

k,33l
k,973
k,8k9
5,080
5,130

682
725
722
673
666

20,951
23,039
2k,768
26,701
27,569

761
855
910
1,005
1,056

Changes !
1959 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-Ilk
8
k3
-79
3
-2
-27
20
111

-kk
13
-85
-13
-12
-32
-281
-85
-12

58
-20
-k7
13
-2
-55
-28
23

-33
10
19
k
-1
8
-20
-8
-2k

155
161
lk5
179
156
160
137
12k
132

-32
k5
39
-12
33
31
-37
k2
-12

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-131
37
kl
-86
k2
108
-69
-6
22
-8
9
86

-9
-11
32
-lk8
-80
:
-93
-k8
30
-32
-156
-68
-k5

-12
-9
52
-19
13
57
38
-8
32
-k
3k
57

-6
-9
3
13
-23
-k
-k
-5
l
-6
-5
-k

159
116
150
129
161
169
159
206
196
168
171
lk9

-12
k3
kl
-21
63
-59
k2
6
lk
-25
• 13
-10

1961 — J a n .
Feb.
Mar.
Apr.
May
June
July

-k9
21
9
-51
30

106
100
117
-216
-13

3
-15
k6
-11
27

-5

161
lkO
20k
176
187

17
26
29
-51
30

I960

V

-1
-2
l

35,168

Sources of f u n d s
Net
change i n
deposits

Other

31,695
3k,0kl
3k,983
36,3k9
37,066

3,k73
3,738
3,959
k,219
k,5l9

6
120
202
-5k
80
197
-187
-27
3k0

-16
97
-kl
86
112
-3k
-96
92
-122
57
117

118
223
233
-31
15k
232

-68
50
320
-95
58
221
21
105
278
56
39
381

-37
118
-k3
97
118
-k5
-87
115
-lk9

233
272
holt
-i5k
262

170
136
351
-5k
Ilk

63
136
53
-100
lk8

37,779

38,91*2
140,568

l a , 585
-10

217
161
32
192
163
-283
65
218

-11.
167
319
~176
178

.

"Uses of funds 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 f l e c t n e t , r a t h e r

1/
S o u r c e ^ - N a t i o r a l ^ s d o c i a t i o n ' c ^ M u t u a l Savings Banks and Federal Deposit Insurance

Digitized for Corporation.
FRASER


-1