Full text of H.16 Capital Market Developments : August 14, 1961
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Not f o r Publication DECONTROLLED AFTER SIX MONTHS
H.Ik
August lit, 1961.
n
\ f?TT/lTi MrmTHHTVFT 1PMFMT9
IN THE UNITED STATES
(Including Quarterly Review of Sources and
Uses of Funds of F i n a n c i a l Intermediaries)
Although t h e volume of new p u b l i c s e c u r i t y financing was
l i g h t l a s t week and new coiporate o f f e r i n g s a r e not expected t o
increase much t h i s -week, o f f e r i n g s of new S t a t e and l o c a l government
bonds a r e expected to be i n l a r g e volume t h i s week. Last week, ending
August 11, only one l a r g e c o i p o r a t e s e c u r i t y i s s u e f o r $20 m i l l i o n was
sold while two S t a t e and l o c a l government bond i s s u e s t o t a l i n g $39
m i l l i o n were s o l d . This week, ending August 21, one l a r g e corporate
bond i s s u e of $1*0 m i l l i o n i s scheduled f o r s a l e and two S t a t e and l o c a l
bond i s s u e s with p a r value of $235 m i l l i o n are on the c a l e n d a r .
This week S t a t e and l o c a l f i n a n c i n g w i l l be dominated by
the $225 mill ion o f f e r i n g of t h e S t a t e of C a l i f o r n i a . This f o r t h coming o f f e r i n g i s the l a r g e s t o f f e r i n g ever made by t h e S t a t e and
t h e l a r g e s t S t a t e and l o c a l government bond o f f e r i n g since t h e $250
m i l l i o n Chelan County Public U t i l i t y D i s t r i c t , Washington, revenue
i s s u e i n December 1957.
Bond y i e l d s . Yields on corporate bonds and Aaa-rated S t a t e
and l o c a l government bonds did not change l a s t week. Yields on longterm U. S. Government bonds rose t o another new higjh f o r the year with
an i n c r e a s e of 8 b a s i s p o i n t s , but a t It.03 p e r cent were s t i l l 39
b a s i s p o i n t s below t h e i r e a r l y i960 peak. Yields on Baa-rated S t a t e
and l o c a l government bonds i n c r e a s e d It b a s i s p o i n t s .
A new Aa-rated 30-year f i r s t mortgage e l e c t r i c u t i l i t y bond
i s s u e was o f f e r e d to i n v e s t o r s l a s t week a t It.85 p e r c e n t , 20 b a s i s
p o i n t s above the l a s t comparable i s s u e sold i n l a t e J u l y , and only 2
b a s i s p o i n t s below the high f o r the year reached i n l a t e June.
S h o r t - and i n t e m e d i a t e - t e r m i n t e r e s t r a t e s . Yields on
Treasury b i l l s and 3-5 year U. S. Government o b l i g a t i o n s i n c r e a s e d
10-13 b a s i s p o i n t s l a s t week. The average r a t e on d i r e c t l y placed
f i n a n c e company paper with 90-179 day m a t u r i t y rose 10 b a s i s p o i n t s
l a s t week a s a r e s u l t of an increase of one-fourth of a percentage
p o i n t on paper with 150-179 day maturity announced by most major
f i n a n c e companies the middle of l a s t week3 r a t e s on such paper with
90-lit9 day maturity were not changed. The average e f f e c t i v e r a t e on
Federal funds a t 2.70 p e r cent was up 65 b a s i s p o i n t s from t h e previous
week.
-2-
Stock p r i c e s . Common stock p r i c e s , as measured tjy Standard
and P o o r ' s composite index of 500 s t o c k s , continued t o r i s e l a s t week,
reaching a new a l l - t i m e high p f 68.06 on August 11. The i n c r e a s e ,
however, was much smaller than i n the two preceding weeks. Trading
volume averaged 3 . 6 million shares a day, down 0.2 m i l l i o n from t h e
previous week.
I n s t i t u t i o n a l i n v e s t o r s . Total savings inflow during June
a t t h r e e major 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 insurance companies,
savings and loan a s s o c i a t i o n s and mutual savings banks—amounted t o
$2.0 b i l l i o n , or 7 p e r cent more than a y e a r e a r l i e r . The increased
growth a t savings and loan a s s o c i a t i o n s and mutual savings banks more
than o f f s e t a smaller growth in l i f e insurance company a s s e t s . On a
seasonally a d j u s t e d b a s i s inflow i n June was about 5 per cent l e s s
than t h e average f o r t h e f i r s t f i v e months of the y e a r .
For the f i r s t s i x months of t h i s y e a r , combined growth a t
these t h r e e i n s t i t u t i o n s t o t a l e d §8.6 b i l l i o n , o n e - f i f t h more than i n
t h e comparable months of I960. A l l t h r e e i n s t i t u t i o n s experienced
g r e a t e r growth t h i s y e a r than l a s t year—the g r e a t e s t increase i n
savings occurred a t mutual savings banks where d e p o s i t s grew by more
than twice a s much a s l a s t y e a r ; savings shares a t savings and loan
a s s o c i a t i o n s increased by more than o n e - t h i r d more than l a s t y e a r , and
the increase in l i f e insurance company a s s e t s was about o n e - f i f t h
l a r g e r than during the comparable p e r i o d of i960. (The i n c r e a s e in
time deposits a t commercial banks was b e t t e r than 2-1/2 times l a r g e r
t h i s y e a r than l a s t . )
While savings inflow a t these i n s t i t u t i o n s i n t h e second
q u a r t e r was one-eighth l a r g e r than a y e a r e a r l i e r , a f t e r adjustment
f o r seasonal f a c t o r s i t was moderately smaller (about 7 per cent) than
in the two preceding q u a r t e r s and about the same as i n the t h i r d q u a r t e r
of i960. Inflow ( s e a s o n a l l y a d j u s t e d ) in t h e second q u a r t e r was s m i l e r
than i n the f i r s t q u a r t e r of the year a t a l l t h r e e types of i n s t i t u t i o n s ,
but most of t h e d e c l i n e was in the growth i n l i f e insurance company
assets.
Although the net i n c r e a s e i n l i f e insurance company a s s e t s
of $3«1 b i l l i o n i n the f i r s t h a l f was up o n e - f i f t h from a year e a r l i e r ,
a l l of t h i s i n c r e a s e took p l a c e i n the f i r s t q u a r t e r . Net a c q u i s i t i o n
of mortgages, amounting t o $ 1 . 1 b i l l i o n , were down o n e - f i f t h from l a s t
y e a r . In c o n t r a s t , the l i q u i d a t i o n of U. S. Government s e c u r i t i e s
was only one-seventh as l a r g e . Net a c q u i s i t i o n of business s e c u r i t i e s
and S t a t e and l o c a l government bonds amounting to $1.0 b i l l i o n and
SO.2 b i l l i o n , r e s p e c t i v e l y , were up 6 per cent and lit p e r cent,
r e s p e c t i v e l y , from l a s t y e a r . Foreign corporate bond a c q u i s i t i o n s
(included in o t h e r a s s e t s ) of $0.3 b i l l i o n were over twice as l a r g e a s
a year e a r l i e r .
-3The growth in share c a p i t a l a t savings and loan a s s o c i a t i o n s
amounted to
b i l l i o n during t h e f i r s t half of 1961, or o n e - t h i r d
more than l a s t y e a r . The increase i n share c a p i t a l has been g r e a t e r zi n each month t h i s y e a r than in the corresponding month of I960. b e t
repayments of borrowings (mainly from the Federal home Loan Banks)
amounting to $0.2 b i l l i o n , were l e s s than one-half as l a r g e as l a s t
y e a r due t o both l a r g e r borrowings in the second q u a r t e r of t h i s y e a r
and smaller repayments i n the f i r s t q u a r t e r , but the increase i n holdings of cash and U. S. Government s e c u r i t i e s was t h r e e times l a r g e r
t h i s year than l a s t . Net a c q u i s i t i o n of mortgages t o t a l e d $3*9 b i l l i o n
during t h e f i r s t half of t h i s y e a r , or o n e - f i f t h more than a year ago,
as mortgage extensions i n May and June s e t successive records.
Deposits a t mutual savings banks i n the f i r s t half increased
$1.0 b i l l i o n or b e t t e r than twice the i n c r e a s e l a s t y e a r , with every
month showing an i n c r e a s e over the comparable month of i960. Net
a c q u i s i t i o n s of mortgages of £L.l b i l l i o n were o n e - f i f t h l a r g e r than
l a s t y e a r while holdings of U. S. Government s e c u r i t i e s increased-by
about *0.1 b i l l i o n t h i s y e a r in c o n t r a s t with l i q u i d a t i o n of over $0.3
b i l l i o n l a s t y e a r . Acquisitions of business s e c u r i t i e s ($66 million)
were s l i g h t l y l e s s than i n t h e f i r s t h a l f of i960, r e f l e c t i n g smaller
purchase of non-guaranteed Federal agency obligations which are
included in t h i s category.
iiore d e t a i l e d information concerning recent c a p i t a l market
developments a r e presented i n the a t t a c h e d e x h i b i t s .
Capital Markets Section,
Division of Besearch and S t a t i s t i c s ,
Board of Governors of t h e Federal Reserve System.
-kSources and Uses of Funds of Major Types of Savings I n s t i t u t i o n s 1 /
F i r s t Half 1953-1961
( I n m i l l i o n s of d o l l a r s )
Sources of funds
Uses of funds
U. S. BusiState &
Total Net change
Year Cash Govt.
Mort- l o c a l Other sources in d e p o s i t s Borrow- Other
o r savings
gages govt. a s s e t s
or
ing
sec.
uses
capital
ities ities
L i f e Insurance Companies
1961
I960 r j
1 9 # rj
1958
1957
1956
1955
195k
1953
-62
-9k
-160
-8k
-137
-178
-136
-12k
-191
-k3
-299
kl
k6
-207
-625
25
-k2k
-165
976 1,107
923 1,39k
1,315
793
1,191
790'
1,096 1,190
l , 0 k 8 1,859
968 1,556
1,135 1,109
1,502
976
157
96
315
163
59
lk9
12k
363
69
1,009
710
572
669
570
363
365
692
178
3,lkk
2,727
2,876
2,775
2,571
2,616
2,902
2,751
2,3$
—
—
—
Savings and Loan Associations
1961
2k5
I960 r /
96
1959 r j -2k0
606
1958
-60
1957
1956
-27
-12
1955
311
195k
1953
kk
389
115
577
156
3k7
30k
256
36
210
——
——
-
3,936
3,2kl
3,791
2,279
2,105
2,191
2,878
1,835
1,703
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
369
290
kkl
185
k08
300
162
130
110
k,939
3,7k2
k,569
3,226
2,798
2,762
3,30k
2,312
2,06k
k,362
3,718
3,k80
3,125
2,578
2,656
2,603
2,282
l,9k5
-183
-kk9
231
,-3kk
-166
-279
301
-21k
-lk6
760
k73
858
kk5
386
385
koo
2kk
265
Mutual Savings Banks
1961
I960 r /
1959 r/
1958
1957
1956
1955
195k
1953
60
-13
11 -309 _ .
-96
95
29 -163
-k9 -108
-k8 -163
-37
-73
k -167
-51
k2
66 1,06k
82
88k
980
15
525
996
k02
721
116 l , l k 7
-38 1,155
226
933
726
285
17
-26
39
k2
10
30
56
125
53
26
55
62
70
58
65
ko
6k
kk
1,221
697
1,096
1,1*9
1,03k
l,lk7
1,106
1,185
1,100
r / Revised.
n.a."—Not a v a i l a b l e .
1 / For d e s c r i p t i o n of data see E x h i b i t s J , K and L.
2 / Includes Federal Home Loan Bank advances only.
1,065
k86
885
1,293
876
997
975
l,0k2
1,007
—
156
211
211
206
158
150
130
lk3
93
Sources and Uses of Funds of Major Types of Savings I n s t i t u t i o n s 1 /
Second Quarter 1953-1961
'
^
(In m i l l i o n s of d o l l a r s )
U. S.
Cash Gov to
Year
ities
Uses of funds
State &
Business
l o c a l Other
Mortgages
securgovt.
sec.
ities
Sources of funds
Total Net change
sources in deposits Borrowor savings
ing
capital
L i f e Insurance Companies
1961
I960 r /
1959 t /
1958
1957
1956
1955
1951 •
1953
51 -134
60 -249
-12
14
-12
39
69 -130
37 -125
35
-45
36 -318
-37
-33
458
490
667
560
525
375
455
57 It
739
554
620
392
335
502
902
757
615
496
44
60
167
77
38
-6
-7
195
17
419
434
258
351
234
128
143
213
-74
1,392
1,412
1,486
1,350
1,238
1,311
1,338
1,315
1,108
—
—
Savings and Loan Associations
1961
I960 rj
1959 r/
1958
1957
1956
.1955
1954
1953
1
278
382
85
339
175
72
42
311
74
-3
-124
123
130
64
77
36
71
-—
—
—
—
—
—
—
—
2,449
1,980
2,351
i,5o4
1*267
1,284
1,705
1,836
1,048
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
282
251
300
158
286
227
154
130
90
3,006
2,489
2,859
2,131
1,728
1,644
1,975
2,312
1,282
2,513
2,218
2.102
1,808
1,581
1,550
1,456
2,282
1,068
388
253
473
248
133
47
340
-281,/
108^/
10 5
18
284
75
14
47
179
311
106
Mutual Savings Banks
1961
i960 1/
1959 £ /
1958
1957
1956
1955
1951
1953
1/
2/
6
64
-63
-10
27
31
5
-18
-6
-263
-321
-125
-183
-167
-184
-117
-137
-52
32
51
56
193
197
66
-64
53
150
559
459
472
602
366
560
605
528
427
23
-14
-15
9
3
-3,3
5
83
-22
-46
-17
50
16
4
35
-2
19
For d e s c r i p t i o n of data see E x h i b i t s L, M and N.
Includes Federal Home Loan Bank advances only.
312
222
375
627
430
495
435
528
498
408
184
337
574
44l
485
409
502
501
-96
38
38
53
-11
10
26
26
-3
EXHIBIT A
LONG-TERM
BOND
YIELDS
HIGH-GRADE
per o n n u m
LOWER-GRADE
-7-
E x h i b i t B - Tables f o r E x h i b i t A
Long-tenn Bond Yields
High-grade
Date
Corporate
Aaa 1 /
U. S. Govt,
long-term 2 /
( p e r cent)
1951* - Low
1957 - High
1958 - Low
1959-60 - High
I960 - Low
1961 - High
Low
July
July
July
Aug.
<&ug.
lit
21
28
It
11 2 /
S t a t e and
local
government
Asa 3 /
2 . 8 5 (4/23)
2.15
1.90
l * . 6 l (1/29/60)
i i . 2 3 (9/9)
1*.1*2 (1/9/60)
3.75 (t/s)
U.03 ( 8 / 1 1 )
3.70 (5/12)
2.99 (»A)
3.37 (7/6)
3.12 ( 2 / 2 3 )
3.92
3.88
3.89
3.95
li.03
3.36
3.3U
3.33
3.32
3.32
(8/6)
3 . 7 6 (10/18)
3 . 0 7 (4/23)
lt.ll* (9/27)
3.55 (5/2)
lt.l*5 ( 8 / 1 1 )
lt.21 ( 3 A 7 )
it.i*i
li.ll1
It. 1*2
fcjg/
Spread between
U. S. Govt, and
Corporate S t a t e and
Aaa
l o c a l Aaa
.-30
.60
.22
.59
.19
.57
(9/2)
3.1*5 (8/29)
2.61* ( 5 / i )
3 . 6 5 (9/24/59)
.30
.50
.31*
.92
.53
.76
.16
.1*0
.1*9
.53
.53
.51
.42
.56
,5k
.56
.62
.71
Lower-grade
Date
Corporate
Baa 1 /
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 )
1951* - Low
1957 - High
1958 - Low
1959-60 - High
i960 - Low
1961 - High
Low
It. 98
5.12 (1/27)
5.00 (A/21)
It. 16 (3/23)
3.93 ( 8 / 3 )
July
July
July
Aug.
Aug.
5.08
5.09
5.10
5.11 z
5.11^
3.95
3.93
3.93
3.93
3.97
lit
21
28
It
11 £ /
3.14*
5.10
U.51
5.36
(12/31)
(11/20)
(7/11)
(2/12/60)
(9/9)
2.93 (a/5)
U . 5 1 (8/29)
3.61 (5/1)
4.1*6 (1/7/60)
3 . 9 8 (12/291
.
.52
1.27
.77
.81*
.71
,81
.66
.96
1.21
.93
1.08
.86
.93
.57
.67
.68
.68
.66
.66
.59
.59
.60
.61
.65
g / Preliminary.
1 / Weekly average of d a l l y f i g u r e s . Average term of bonds loeludsd l e 23 *26 year*.
2 / Weekly average of dally f i g u r e s . The aeries Inoludea bonds due or c a l l a b l e I n 10 years or mors.
3/ Thursday f i g u r e s . Only general obligation bonds are Included) average term l e 20 y e a r s .
Note.—Highs and lows are for Individual s e r i e s and may be on d i f f e r e n t dates f o r d i f f e r e n t s e r i e s ,
for spreads, high r e f e r s t o widest, and lew t o narrowest.
EXHIBIT E
STOCK MARKET
,, ,
vW
US 7
1958
rLr
1959
1960
1961
MORTGAGE AND BOND YIELDS
Per cenl p e t a n n u m
Monthly
1954
1955
1956
1957
1958
1959
1960
1961
-9E x h i b i t D - Tables f o r E x h i b i t C
Q i o r t - and I n t e r m e d i a t e - t e r m I n t e r e s t hates
Government
Discount
rate
1/
J
11951* - Low
;1957 - High
i 1 9 5 8 - Low
1959-60 - High
1960 - Low
1961 - High
;
LOW
July
iJuly
' July
' Aug.
j''Aug.
ll*
21
28
1*
11 2 /
Yields
6-month
b i l l s 2/
(per cent)
3-month
b i l l s 2/
. 6 1 (6/11)
3.61* (10/18)
1.50
3.50
1.75
Loo
3.00
3.00
3.00
4.59
2.11
2.56
2.17
3.00
3.00
3.00
3.00
3.00
2.25
2.19
2.22
2.28
2.38^
. 5 8 (5/29)
(1/8/60)
(10/28)
(3/3)
(1/27)
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 13-5 y r . i s s u e s
.66
.86
1 . 6 6 (4/30)
3.02 (12/26)
5.07 (1/8/60)
k.Qk (10/18)
2 . l i t (6/6)
2 . 3 8 (12/30)
5 . 0 0 (12/24/89)
3 . 1 | 0 (12/30)
2.75 4 3 / 3 )
2.35 ( V 2 8 )
3.15 (5/12)
2.16
2.39
2.1*6
2.51
2.61*
.26
.Ok
1.81
it
3.86 (6/11)
.25
.12
.38
1.1*8
.92
3.72
.21
.20
.21*
.23
.26-
1.1*7
1.1*7
1.1*6
1.1*6
1.1*8
3.66
3.68
3.7k
3.86
Bulks an£, Others P r i v a t e Borrowers
Date
Stock Exchange
c a l l l o a n 1/
Prime
rate 1/
Finance company
paper ] /
(per cent)
1951* - Low
1957 - High
1958 - Low
1959-60 - High.
i960 - Low
1961 - High
' Low
3.00
i|>50
3.56
5.50
It. 50
l*.5o
l*.5o
3.00
k.50
3.50
5.00
1*.50
l*.5o
l*.5o
July
July
July
Aug.
Aug.
l*.5o
1*.50
l*.5o
l*.5o
l*.5o
l*.5o
1*.50
l*.5o
l*.5o
l*.5o
ll*
21
28
1*
11 2 /
Spread between
3-mo. b i l l s and
f i n a n c e co. paper
Federal
funds U/
.
1.25(12/31)
3*88 (ii/15)
r . 1 3 (a/a)
5'. 1 3 (1/22/60)
2 . 8 8 (12/30)
n.a.
3.50
.13
1*.00
.95
(11/8)
(5/29)
(5/13/60)
(12/2)
2.88 (3/10)
2.50 (7/28)
2 . 8 5 (2/17)
.1*3 (1/27)
2.50
2.50
2.50
2.50
2.60
.85
1.30
.85
2.05
2.70
~
0
*63
-.35
1.02
.22
.56
.11
.25
.31
.28
.22
.22
Weekly rata ehowa isttfclat'in e f f e c t a t end of period. Dieoouot rate l a for kederal Reserve Bank of New York.
Stock Exchange call l o a h f a U I s going rate on oall loans seourod by 0listeners' atook exchange collateral a t
Hen York City banks*. Ptiee rate I s that charged by large banks on ihnrt-terw loans t o business borrowers of
the highest credit standing,
2/ Market yield; weekly averages computed from daily closing bid prices. Series of 3-5 year issues consists of
selected notes and bonds.
t
3/ Average of dally rates published by finance companies for directly plated paper for varylmg maturities in the
90-179 day r s % e .
4/ Weekly average of dally effective r a t e , which i s the rate for the heaviest vol use of purchase and sale transactions
as reported to the Federal Reserve Bank of New York.
'
Mot* .--Highs and lows are for 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 dates for d i f f e r e n t sorles.
for spreads, high r e f e r s to widest, and low to narrowest.
vx
SHORT-
AND
INTERMEDIATE-
TERM
INTEREST RATES
GOVERNMENT
-
tV
mis
y
^
3 - 5 YIAI ISSUE!
A/P1
- / V
x
xMV'A/
A
\
I v y
/>
11
f. I . DISCOUNT lATt
I
Y l - MONTH 1
Market Yie
BANKS
AND
OTHER
PRIVATE
DISCOUNT
I
BORROWERS
w
Exhibit F - Tables f o r Exhibit L
Stock Market
Date
Stock p r i c e
index 1 /
1957-60 - High
Low
1961 - High
Low
6 0 . 5 1 (7/31/59)
3 9 . L8 (12/20/57)
June
July
July 28
Aug. U
Aug. 11 2/
n.a,— Not available.
1/
Trading
Common
volume 3/
stock
y i e l d s 2/ (millions
(per cent) of shares)
Stock market customer c r e d i t
Customers 1
Bank
Total
debit.balloans t o
ances h/
"others" 5/
(In millions of d o l l a r s )
(4/59) 3 , 1 0 1 (4/E9) 1,373 (V59)
(V5S) 2 , 1 8 2 (12/57) 1 , 0 6 0 (11/57)
68.06 (8/11)
58.W (1/6)
3.08
li.72
2.89
3.32
h.9
l.h
5.8
2.7
5,386(5/61) i;,060(5/6l) 1,376(7/19)
l i , l j l 6 ( l / 6 l ) 3,253(1/61) 1,152(3/8)
65.62
65.38
66.71
67.68
68.06
2.99
2.98
2.93
2.90 c /
2.89
3.3
3.0
3.5
3.8
3.6
5,358
n.a.
n.a.
n.a.
n.a.
L76k
3,55k
14,015
n.a.
n.a.
n.a.
n.a.
l,3lt3
1,364
1,36L
1,371
n.a.
2/ PrnllitlLary.
Standard and Poor's ecmpotite Index nf 500 ocamon stocks, weekly olootiy p r i o n , 1911-43*10. Monthly data ure
^
averages of dolly flcureo rathor than of MUcy'e only. Higlvi and lows are for Fridays' data only.
2/ Standard and Poor'o ocmpotlto otook yield laced on Wednenday data converted to weekly closing prices by Federal
Reocrve, Yloldo shown are for dateo on which prloe Index roaohod I t s high or low.
3/ Avercsee of dally trading volvr.ia on the Mew York Stock Exchange,.
4 / End of month flgurco f o r member flir.fl of the Maw York Stock Exchange wlileh carry margin account*; exclude0 balance®
oedvred by U. S. Government obllecXlons.
5/ Wednesday figure0 for weekly reporting member tanks. Excludes loans for purchasing or earning U. S. Ooverivnont
Fdcurl t i e s . Prior to July 1, 1959, auth lomn are excluded only a t banlco In Hew York and Chlcr^o.
banks account for about 70 per oont of loans to others. For further detail nee Bulletin.
Weekly reporting
Mortgage and Bond Yields 1/
Date
1953-58 - High
Low
1959-60 - High
Low
FilA
mortgages 2/ •
5.63 (11/57)
L 5 6 (2/55)
6.21* (1/60)
5.57 (3/59)
Spread between now
Aaa corporate
corporate bonds and
bonds 1 /
New 3/ lSeasoned"~li7 F11A m o r t ^ o s |Si-asonod bonds
ii.81
2.7U
5.29
4.29
(6/57)
(3/5W
(9/59)
(2/59)
4.12
2.81,
I1.61
U.12
(9/57)
(V5U
(1/60)
(1/59)
1.96
.$h
1.76
.83
.90
-.12
.77
.08
.Oli
1.57
U.27
i;.31
.Oh
1.56
It. 22
U.26
.17
1.33
ii.25
k.bZ
5.75
.21
n.a.
U.27
L51
.32
n.a.
h.33
U.65
*ZL.
n
.
a
.
,
)i.6?
.MM
1UL vleldo take Into account aorvlolng cootc which are much higher for mortg/i«ea t
J
1
Am 4 f
mm A/lltfuAl*
b o n d , y o « r o m U , 7 l o " C L l - n n n u i U y i m n » n t h i y . Ht.r«e«W j K U " . If eooput.d « . . m l . a l . n t
1961 - FebruaryMarch
April
May
June
July-
5.88
5.82
and foreign oompunleo) weighted by nlze of l33uo, Yields on Aa and A losuna ore first adjusted to an Aaa baole
T
h
l
offcrlngo.
a.aj
A/ Mood's Invefltore Service. Monthly a v e r t s of daily data. See Exhibit B.
Exhibit G
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of d o l l a r s )
1961
January
February
March
580
667
562
April
May
June
2,115
2/1,223
2/l,li#
July
August
September
e/1,000
e/600
October
November
December
1st
2nd
3rd
4th
quarter
quarter
quarter
quarter
1st half
Three q u a r t e r s
Year
Mew ca p i t a l
State and l o c a l 2/
Corporate 1/
! 1959
1961
1 I960
1 I960
1 1959
821
738
646
715
681
758
$
-l,oa .
•894
785
887
720
588
e/1,050
"736
967
726
535
7hD
703
e/450
e/750
570
715
860
890
'9#
852
8
900 •
700
611
568
/
648 .
J38
719
545
991 .
s
987
492
606
683
443
521
470
348
5dl
491
593
450
478
1,809
2/4,1*87
2,145
2,382
2,1*28
2,698
2,204
2,567
1,979
2,6142
2,154
e/2,358
1,880
2,256
I >780
1,340
2,U,5
2,1,88
1,1,33
1,521 .
2/6,296
4,527
6,955
9,653
4,771
6,750
9,392
e/4,512
4,136
5,916
7,257
4,63k
6,067
7,588
Excluding finance companies j /
1st
2nd
3rd
4th
quarter
quarter
quarter
quarter
1,551*
2/14,337
Year
€/
3/
2/
2/
1,716
2,165
2,016
2,347
1,9992,1*12
1,716
2,503
8,21*6
8,630
Dsvajnaueue
,
S e c u r i t i e s and Exchange Commission 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 linance
companies.
Exhibit H
Other Security Offerings
( I n millions of d o l l a r s )
Foreign government 2/
1961
|
I960
|
1959
January
February
March
6 .
29
20
April
May
June
61
Federal agency 3/
1961
|
1960
|
81
60
2
31*
72
1*0
58
50
1*2
July
August
September
25
1
36
85
1
35
199
October
Ifovember
December
31*
2
1*1
33
30
70
160
11*9
181
86
51*7
1,672
707
Year
'
533
252
182
150
150
100
Ik:
11*8
351
1959
2
175
70
—
Federal apcncy 3/
-11*1*
-162
-174
-196
-202
-59
-82
176
33
-79
-67
207
-277
170
320
. 50
368
286
57
392
131
95
23
-201
362
133
79
-16
50
-189
-81
-176
-117
-23
-33
-250
280
21*0
1*1*
18
362
-633
-1*
181
1*
160
195
368
58
11*0
-80
April
MayJune
103
1*2
70
-11*6
-157
197
-25
-197
July
August
September
1*8
1*15
-175
October
November .
December
2/
1/
98
150
—
State and l o c a l government 5/
Januaty
February
March
Year
199
175
'
1,969
Preliminary.
f h e e s data d i f f e r from those In Exhibit 0 I n that refunding laauea, a s well a s new c a p i t a l i s s u e s , are Included.
Long-term e e e i r l t l e * are dsfined a s those maturing In more than «n» y e a r ,
7/ Inoludee 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 foreign govornaants and t h e i r subdivisions and by I n t i r r a t i o n a l organ! s a t l o n o . Source I S e o u r l t l e s and Exchange Commission.
3/ Isouea not guprantned by the U. 8 , Government. Souroei long-term, S e c u r i t i e s and Exchange Commission; shortterm , Tree a i r y Department and federal Reeerve.
4 / Theee data d i f f e r from those In Exhibit 0 and above In t h a t they represent now o f f e r l n g e lebs r e t l r s m e n t e , whether
from the proossds of rsAindlng leaue* or from other funds, fcta Includs only Issues with o r i g i n a l maturity of one
year or l e a s ,
y
Prltioipklly tax and bond a n t i c i p a t i o n notes, warranto or c e r t i f i c a t e s and Public Housing Authority n o t e s , l a
join, instances PH* notes included may have a somewhat longer term than one y e a r . Snuroei Bond Uuyir and
I'edernl Afsnrve,
Large Long-term Public Security I s s u e s f o r New Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large I s s u e s Offered
(In m i l l i o n s of d o l l a r s )
Month
State and
local
government
Corporate
I960 - July
August
September
October
November
December
1961 - January
February
March
April
May
191
298
367
1*6
186
222
391
360
4o5
383
256
616
179
303
581
266
566
m
260
lit?
267
70
1,572
557
532
175
^
July
Other 2 /
75
25
77
150
99
67
25
151
Large "Individual Issues Offered August 1 through 11
Issuer
Type y
Coupon
Amount
r a t e or O f f e r i n g
( m i l l i o n s Maturity
net i n t e r - yield
• of
dollars)
est cost
Rating
CORPORATE
Texas Eastern Trans. Co.
Texas Eastern Trans. Co.
Long I s l a n d Lighting Co.
Kimberly-Clark Corp.
Northern S t a t s P w r . Co.
STATE AND LOCAL GOVERNMENT
Deb.
Conv.pfd.stk.
1 s t mtg. bds.
S.F. deb.
1 s t mtg. bds.
S t a t e of Maryland
Public Housing Authority
Sacramento USD, C a l i f .
OTHER
None
G.O.
G.O.
30.0
20.0
25.0
30.0
20.0
16.9
60.3
10.0
1981
5-3/8
5 . 38
Ba
1991
1986
1991
5
ji-5/8
4-7/8
4.90
{*•63
4.85
A
Aa
Aa
1964-76
1962-2002
1963-86
2.92
3.45
3.39
Aaa
2.00-3.10
Aaa
1.40-3.63
1.85-3.53 4 / A a
H.lu
1-2
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.
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 f e d e r a l a g e n c i e s .
} / 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 ; Rev.-lit., revenue o b l i g a t i o n s secured only t y income from
p u b l i c u t i l i t i e s ; Rev.-Q.Ut., revenue bonds secured only by revenue from
q u a s i - u t i l i t i e s ; Rev.-S.T., revenue bonds secured by revenue from s p e c i f i c
taxes only; Rev.-Rent., revenue uonds secured s o l e l y bj l e a s e payments.
h/ 1966"maturity :.o i c o f f e r e d .
.
2/
Exhibit J
-16-
Forthcoming Large Long-term Public Security O f f e r i n g s f o r New Capital
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
Subsequent to
date shown
During month following
date shown
Date of
computation
Corporate
1960 - July 29
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 3D
1961 - Jan. 31
Feb. 28
Mar. 31
Apr. 28
May 31
June 30
July 31
^
# 6
216
576
44o
260
91
110
55
1,580
542
:
487
521
170
^
Other 2/
Corporate | % £
1,006
275
283
212
258
8#
585
77
50
21*2
1,036
1,046
1,125
412
181
307
559
236
131
195
J4O6
15
75
1,700
687
611
666
255
K
r
324
283
336
12
682
360
638
806
579
771
291
537
^
127
SO
15
75
Forthcoming Large O f f e r i n g s , as of August 11
Issuer
CORPORATE
Consumers Power Co.
Armour & Co.
Clark Equipment Credit Corp.
Commerce Oil Refining Corp.
Realty C o l l a t e r a l Corp.
Type
Amount
Approximate date
(millions
of o f f e r i n g
of d o l l a r s )
1 s t mt£. bds.
Conv. sub. deb.
40.0
32.5
Deb.
Deb., bds. & com.
Coll. t r . notes
20.0
45.0
20.0
Aug. 16
Sept.
( r i g h t s expire)
Indefinite
Indefinite
Indefinite
STATE AND LOCAL GOVERNMENT
S t . Petersburgh, 21a.
Pennsylvania General Sta te Authority
Washington Sub. Sanitary D i s t . , Md.
S t a t e of C a l i f o r n i a
Cook County, I l l i n o i s
San Diego Unif. Soh. D i s t . , Calif
Orleans Parish Sch. D i s t . , La.
Dade County, Florida
J a c k s o n v i l l e Expressway Auth.
S t a t e of Kentucky
None
Digitized
for
OTHER
FRASER
Rev.-Ut.
Rev.-Rent.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev. -Ut.
G.O.
14.0
25.0
10.0
225.0
25.0
20.0
10.0
46.0
40.0
35.0
Aug. 8
Aug. 8
Aug. 15
Aug. 16
Aug. 22
Aug. 29
Indefinite
Indefinite
Indefinite
Indefinite
J-2
-sl7.-»-
Footnotes
*—Included i n t a b l e f o r f i r s t time.
1/
Includes corporate and other i s s u e s of $1$ m i l l i o n and over; State and
l o c a l government i s s u e s of $10 m i l l i o n and over.
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 reasons other than sale of i s s u e : hone.
2/
-1-6'-
rixhibit
K
Yields on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1/
Date
1952-1960 - high
^
Low
1961 - Jan. 12
18
25
^
Feb. 8
16
16
Mar. 23
2k
Apr. 13
21
26
27
May 17
18
19
23
26
June 8
13
28
July 13
26
Aug. 3
9
1/
2/
Aa-rated o f f e r i n g y i e l d s
Amount above
Actual
(per cent) seasoned y i e l d s
( b a s i s points)
5.30 (12/8/59)
2.93 ( 3 / 3 1 / 5 U
67
-8
I1.60
4.55
it.Wi
11
7
-2
4.37
8
k3
it. 80
it.67
it.50 2/
it.57
29
13
20
it. 65
27
1.87
a
It. 65
lb
4.85
29
A-rated o f f e r i n g y i e l d s
Actual
1k
o u n t
above
5.65 (9/18/59)
3.00 (3/17/51)
123
-15
1.60
it. 65
It. 1*7
1.50
U.ltO
It. 65 2 /
it. 80 2/
-2
5
-13
5
-5
17
32
it.72
19
it.80
27
it.9it
5.12
U.92
ltO
55
36
lt.93
29
it. 90
20
Covers only 30-year f i r s t mortgage bonds, a s reported i n Moody's Bond Survey.
Except where i n d i c a t e d , the actual y i e l d f i g u r e and the amount above seasoned
y i e l d s a r e averages of o f f e r i n g s during the i n d i c a t e d period and of the d i f f e r ences 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 issues of
s i m i l a r q u a l i t y f o r t h e same day. Average maturity f o r the seasoned i s s u e s
v a r i e s from 26 to 28 years.
Provides f o r a 5 - y e a r period during which i s s u e may not be c a l l e d f o r refunding a t a lower coupon r a t e . Monthly averages so marked include one or more
i s s u e s with such a p r o v i s i o n . Other issues have no such p r o v i s i o n .
I
Exhibit L
-19-
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 - June
Uses of funds 1/
S t a t e and
Business
l o c a l govt. Mortgages
ities
i t i e s 2/
Other
Total
sources
or uses
13,206
ll*,61*0
16,126
17,625
18,631*
101,309
107,580
113,650
119,717
122,861
(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
1,270
7,028
7,182
6,858
6 ,1*1*1*
6,1*01
1*2,133
1*1*, 612
1*6,901
1*8,896
1*9,872
2,377
2,691
3,221
3,622
3,779
35,271
37,092
39,237
ia,798
1*2,905
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
19l*
167
207
21*5
235
301*
113
85
60
11*6
110
108
91 .
11*6
313
i960 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
-71
-53
-30
39
-12
33
12
1*
-51
90
-35
99
153
-36
-167
-85
-62
-102
73
-I4O
-6
-62
23
-103
201*
125
101*
131*
231
125
167
168
1*0
311
198
188
-21*
25
35
21
26
13
101*
1*3
82
33
26
17
336
196
21*2
225
203
192
63
226
179
211*
208
277
-1*6
207
115
95
128
211
206
175
122
11
102
173
1961 - Jan.
Feb.
Mar.
Apr.
May
June
July
-51*
-9
-50
9
75
-33
101
-3
-7
-1*7
63
-150
21*2
128
11*8
135
170
153
1*9
31
33
31*
5
5
210
135
" 208^
202
170
182
\J
202
202
186
119
58
21*2
522
1*75
1*89
658
500
/195
555
1*95
791
552
1*61*-.
299
- 1*29
.
5nr
1*69
628
#6
366
597
522
651
750
1*81*
518
1*52
51*1
399
Uses of funds r e p r e s e n t 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 g r o s s , u s e s .
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
Sources and Uses of Funds bySavings and Loan Associations
Cash
Value of a s s e t s
a t end of period
1957 - Dec.
1958 - Dec.
1959 - Dec.
I960 - Dec.
1961 - J u n e
Changes
1 9 # - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
2/19.60 •- Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
' Oct.
Nov.
Dec.
2/1961 -• Jan.
Feb.
Mar.
Apr.
May tJ
June
July
2,11*6
2,585
2,183
2,715
2,960
Sources of f u n d s
Uses of f u n d s 1 /
U. S.
Total
Net
BorrowGovt.
Mort- , Other
sources change
Other
gages-/
o r uses savings
ing 3 /
capital
ities
( I n m i l l i o n s of d o l l a r s )
3,173 1*0,01*9
3,819 1*5,627
1*,!*77 53,191
l+,586 60,081*
It,975 62*,020
2,770
3,108
3,676
1*,101*
a,1*73
1*8,138
25,139
63,530
71,1*89.
76,2*28
1*1,912
1*7,976
51,583
62,151*
6ti,5lo
1,379
1,1M
2,387
2,191
2,008
4,81*7
5,719
6,56p
7,m
7,901*
710
757
881*
803
71*0
679
626
1*60
1*68
151
185
-36
-113
11*
61*
86
11*1
-65
786
990
1,083
367
735
681*
653
63I*
71*9
1*11*
599
1,089
201
39k
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
-678
1*68
1*09
623
372
630
1,216
11*9
1*89
602
667
558
1,388
-1*62
-111*
-126
37
5
211
-127
22
1*9
-11*
51
272
86
199
170
233
30l*
-519
197
• 207
80
161
167
-701
591
553
705
1*17
800
1,296
-1*65
-80
-26
88
1*1
259
136
276
21*3
308
339
-5U2
-180
27
238
-431
-1*2
-52
-69
61
371
105
21
-3
108
23
-7
10
-28
-25
-301
-3k
1*9
-27
80
329
-236
30
21*
10l*
86
1*28
196
65
-22
-2
21
-11*3
-33
-27
1
20
36
-3
316
398
51*7
565
635
780
615
713
61*3
605
^#1
572
-119
65
93
106
203
-58
-127
2
63
85
153
-38
-95
59
3
2l*
11+9
105
93
192
107
-18
371
1*27
689
691*
815
9l*0
-107
71
123
113
216
-1*7
15
92
1*91*
667
61*2
939
908
219
718
731 ,
811*
776
959
262
71*9
922
813
1,180
1,013
Preliminary.
Revised.
Uses of f u n d s r e p r e s e n t net 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 . Savings and loan a s s o c i a t i o n s do not hold business s e c u r i t i e s
and data on h o l d i n g s of S t a t e and l o c a l government bonds, presumed t o be small,
a r e not a v a i l a b l e .
Data f o r 1957 a d j u s t e d to i n c l u d e mortgage pledged shares as c u r r e n t l y r e p o r t e d .
Advances from Home Loan Banks and o t h e r borrowing.
Source.—Federal Savings and Loan Insurance Corporation.
y
%
Exhibit N
Sources and Uses of Funds
by Mutual Savings Banks
u. "s.
Govt.
ities
Value of a s s e t s
a t end of period
1957 - Dec.
89D 7,552
1958 - Dec.
921 7,266
1959 - Dec.
829 6,86k
1960 - Dec. r / 872 6 , 2 3 9
1961 - June
859 6,300
Changes:
1959 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
-114
8
43
-79
3
-2
-27
20
111
-44
13
-65
-13
-12
-32
-281
-85
-12
-131
37
41
-86
42
108
July
-69
Aug.
-6
Sept.
22
Oct.
-8
Nov.
9
Dec. r /
84
I960 - Jan.
Feb.
Mar.
Apr.
May
1961 •- Jan.
Feb.
Mar.
Apr.
May
June
July
-49
21
9
-51
30
27
Uses of funds 1 /
Busi- State &
local
Mortgovt.
gages
ities
2/
ities
Sources of funds
Other
Total
sources
Net
change in
deposits
Other
35,168
37,779
38,942
40,573
41,794
31,695
34,041
34,983
36,353
37,416
3,473
3,738
3,959
4,220
4,376
( I n millions of dollars)
1,331
1,973
4,849
5,080
5,146
58
-20
682 20,951
761
725 23,039
855
722 24,768
910
672 26,709 1,001
689 27,773 1,027
-47
13
-2
-55
-28
23
-33
10
19
4
-1
8
-20
-8
-24
155
161
145
179
156
160
137
124
132
-32
45
39
-12
33
31
-37
42
-12
-10
217
161
32
192
163
-263
65
218
6
120
202
-54
80
197
-187
-27
340
-16
97
-41
86
112
-34
-96
92
-122
-9
-11
32
-148
-80
-93
-48
30
-32
-156
-68
-il2
-12
-9
52
-19
13
57
38
-8
32
-4
34
57
-6
-9
3
13
-23
-4
-4
-5
1
-6
-5
-5
159
116
150
129
161
169
159
206
196
168
171
157
-12
43
41
-21
63
-59
42
6
14
-25
13
-14
-11
167
319
-132
176
178
118
223
233
-31
154
237
-68
' 50
320
-95
58
221
21
105
278
56
39
385
57
117
-1
-37
118
97
118
-45
-87
115
-148
106
100
117
-216
-13
-34
3
-15
46
-11
27
16
-5
-1
-2
1
24
161
140
204
176
187
196
17
26
29
-51
30
-25
233
272404
-154
262
204
170
136
351
-54
114
348
63
136
53
-100
148
-144
y U s e s 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 Canadian government and p o l i t i c a l subdivisions, International Bank f o r
Reconstruction and Development, n on guaranteed Federal agency and cither bonds as
•well as corporate bonds and stocks.
Source.—National Association of Mutual Savings Banks and Federal Deposit Insurance
Corporation.
-h3
@FedFRASER