Full text of H.16 Capital Market Developments : June 22, 1964

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. „ .
.
Nor -tor Publication deconTHOLLBD AFTER SIX MONTHS

•

H.14

June 22, 1964.
CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES
\

(Including Review of Sources and Uses of Funds
of Financial Intermediaries During April)

Security financing. The total volume of public security
financing is expected to decline moderately from last week's substantial
total, as shown in the table below. Included in this week's financing
is a $50 million debenture offering of Deere and Company.
Long-Term Public Security Offerings 1/
(In millions of dollars)

f,

i
f

Week
Ending
' Sold:
June
June

Corporate
New Capital
I
Refunding

12
19

;

State and local govt.
New Capital
1 Refunding

$275
79

$123
279

13

Scheduled;

V

June 26
116
179
Federal Reserve estimates based on published reports of issues sold and scheduled
for offering; corporate rights offerings are included as of the date subscription
rights expire.
Security yields. Changes in yields on securities showed
minor mixed changes last week.
Yields in Securities Markets
Change from
preceding week'
(basis points)

Level latest week
(per cent)
High-Grade
Notes and Bonds
Corporate
New
Seasoned

4.43
4.41

U.S. Govt.
Long-term
3-5 year

4.13
4.04

- 1

3.11

+1

State and local govt.
Money Market
Federal Funds
Treasury bills
3-month
6-month
Finance
Company Paper




.

-

3.50
3.49
3.58
3.88

+2
+1
--'

\

•2
Private housing starts and permits. Private housing starts
edged off slightly further in May following a 3 per cent downward
revision in the already reduced rate for April. The seasonally
adjusted annual rate, including farm, in May was 1,501 thousand, the
lowest since August of last year and 7 per cent below the advanced
rate a year earlier.
On a three-month moving average, starts were 1,560 thousand
in the most recent period. This was down 3 per cent from the previous
period and 9 per cent below the recent high in the September-November
period of 1963.
Conventional starts accounted for 82 per cent of total
starts in May. This share was moderately lower than in any of the
first four months of the year, though it matched the advanced proportion reached in May of 1963.
Seasonally adjusted building permits, which also dropped
sharply in April, were virtually unchanged in May at a level 5 per
cent below a year earlier. Permits for single family homes'rose
somewhat from April to May, but permits for 5-or-more family
buildings declined further and were 7 per cent below a year earlier
and substantially below their peak in December of last year.
Stock market credit. Total customer credit in the stock
market eased moderately in May, declining $37 million to $7.3 billion
at the month-end.- Customers' net debit balances (except on U. S.
Government securities),which had advanced in April reflecting borrowing
to finance acquisition of AT&T stock, fell $71 million, but this was
partly offset by an advance of $34 million in bank loans to others
than brokers or dealers for purchasing or carrying securities (other
than Governments).
Money borrowed on customers1 collateral by member firms of
the New York Stock Exchange dropped $48 million in May, thus reestablishing the downward trend that had been broken during April
when borrowings had increased due to financing of the AT&T offering.
Customers 5 net free credit balances declined $27 million. More
detailed information on stock market credit in recent months is shown
in the table on the oposite page.
Stock prices. Common stock prices rose sharply last week on
rising trading volume. Prices, as measured by Standard and Poor's
composite index of 500 stocks, rose almost two per cent on balance to
close at 80.89 on June 19. This level was less than one-half of a
per cent below the all-time peak reached in mid-May. Trading averaged
4,6 million shares a day, up 0.6 million shares from the average for
the previous week.




H. 14

-3-

?

STOCK MARKET CREDIT
(In millions of dollars)

•:»

I
1

Months

lOuts tending'.
4955-56 High

Total,
except on
U.S. Govt.
securities

Customer credit
Net debit
balances
with NYSE
member firms
secured
b
U.S.
Govt. Other
sec.

Broker and Dealer credit
Bank loans
to others than
brokers and
dealers for
purchasing
atrying
U.S.
Govt. Other
sec.

"

Customers'
net
free
credit
balances

Honey
borrowed

Other sec.
U.S.
Govt. Cuot. Other
coll. coll.

i'1963 - High

4,047
(5/56)
3,554
(1/58)
4,764(4)
4,142(5)
5,602(12)
4,876(7)
7,298 (11)

41

2,823
(12/56)
2,482
(12/57)
3,401(4)
3,004(7)
4,259(12)
3,562(7)
5,586 (11)

140

1,255
(4/56)
1,060
(11/57)
1,373(5)
1,121(5)
1,377(8)
1,269(9)
1,727 (12)

!1963 - Dec. 1/

7,241

26

5,514

140

1,727

32

3,852

597

1,210

.1964 - May

7,277

19

5,439

96

1,838

113

3,868

494

1,138

251
191
91
149
311
209
118
-56
8
-130
21
173
-37

-3
8
-7
-2
18
-12
5
-8
-4
-1

211
161
-3
139
282
179
91
-71
9
-140
-18
144
-71

-24
29
-23
6
-1
-3
7
50
-32
-11

11
-15
-6
46
-36
-5
4
9
-8
-15
-1
96

261
183
26
108
125
121
179
-40
-57
-57
-92
270
-48

155
71
-99
-11
42
-3
60
32
-182
5
72
3
-1

-35
-17
-23
-33
87
-4
35
-1
52
-63
32
-66
-27

J
"
1
1957-58 Low
V'
,1959
I960
.1961
1962

-

High
Low
High
Low

-• Changes in
Outstanding:
1963 - May
July
Aug.
Sept.
Oct.
Nov.1/
Dec.1/
1964 - J a n . V
Feb.
Mar. Apr.
May

163
28
168
95
77
23

-2

48
21
169
133
132
80

4
-5

40
30
94 •
10
29
30
27
15
-1
10
39
29
34

113

1,873

430

42

1,244

188

252
139
101
28
69

2,044
1,801
2,572
1,856
3,892

318
237
385
235
597

1,069
(1/55)
807
(4/57)
1,257(3)
940(4)
1,508(4)
1,091(9)
1,211(11)

Note: With the exception of bank loan data, figures are reported to the New York Stock Exchange by member firms carrying margin accounts. Bank loans to others than brokers and
dealers for purchasing and carrying securities are for weekly reporting member banks. Net
debit balances and customer free credit balances are as of the end of the month; bank loans
and money borrowed are reported for the last Wednesday of the month. Numbers in parenthesis
denote month of year.
\f
November 1963 data on customers 1 net debit balances do not include accounts carried by
a large former member firm in liquidation; most of thede accounts have been transferred to
other member firms and are reported in their debit figures from the month received (some in
December, more in January 1964). Debit balance totals for the period -from October 1963
through January 1964, therefore, are not completely comparable.




H. 14
Institutional investors. Net inflows of savings to life
insurance companies, savings and loan associations and mutual savings
banks totaled $0.9 billion during; April, 14 per cent less than the
record for the month a year s a r h c r , but 8 per cent greater than the
April 1962, inflow, Although the increase in deposits at mutual
savings banks was larger than in April 1963, growth in assets of life
insurance companies and in savings capital at savings and loan associations lagged behind .la?;, year, more than offsetting the increase at
mutual savings banks. (Time and. savings deposits at: commercial banks
rose $1.3 billion in April, a postwar record for that month and 14
per cent greater than a year earlier, The increase in savings deposits
(that portion most like the above, inflows), however, was less than
last year,)
Assets of life insurance companies—axeluoirig valuation
adjustments-vent up $0.5 billion in April, while holdings of business
securities rose only $0.2 billion--one-fourth less than a year
earlier--this was wholly accounted for by net acquisitions of longterm bonds and stocks, which were substantially larger than last year;
holdings of short-term commercial and finance company paper were
reduced moderately, in contrast with a year earlier when they showed
a net rise of nearly $0.1 billion. Holdings of cash and U. S.
Government securities were also reduced, by $0.2 billion, almost five
times the modest April 1963 reduction. Net acquisitions of mortgages,
on the other hand, amounted to $0.4 billion, a record for the"month,
and holdings of State and local government securities, which had been
falling since late 1962, increased nominally.
Growth in savings capital at savings and loan associations
amounted to $0.3 billion in April, down 34 per cent from a year
earlier and down 16 per cent from April 1962. While savings flows
began to lag cn a year-over-year basis laf: last year9 mortgage
acquisitions generally continued to hold th--tir ground through March.
However, in April net mortgage acquisitions amounted to $0.9 billion,
off one-sixth from April 1963. Also, holdings of cash and Governments
were reduced $0.2 billion, two-thirds more than a year earlier. At
the same time,borrowings of these associations at $0.3 billion, vere
more than double their level in the coj.parable period last year.
Deposits at mutual savings barks advanced $90 million in
April, which compares with an $11 million increase a year earlier
and a $51 million reduction in April 1952, Withdrawals usually rise
sharply in April after the crediting of interest at the end of March,
apparently because c-f payment of income taxes cue by mid-month, but
this year the flow of new deposits had been so great that the usual
pickup in withdrawals was not nearly sufficient to offset the inflow
of new deposits. Mortgage acquisitions, amounting to $333 million,




-5.-

H. 14

were only slightly greater than a year earlier. The reduction in
holdings of U. S. Government V-onds at' $53 million, however, was less than
seasonal and only about one-fifth as much as last year. Also,
the reduction in holdings of business and miscellaneous securities
was modest in contrast with the previous year's reduction of $0.1
billion.

Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




tXHIBIT A._Poil l_
L O N G - T E R M B O N D YIELDf, H I G H - G R A D E

f \ J

Exhibit A - Part II

Date

Corporate
Aaa y

U . S . Govt,
long-term 2 /

State and
local
government
Aaa 2 /

Spread between
U . S. Govt, and
State and
Corporate
Aaa
local A a a

(per cent)
C

I
^
f
%
*
\
<4

1959-60 - High
1961 - High
Itfv
1962 - High
Low
1963 - High
Low
196U - High
Low
May
May
June
June
June

22
29
5
12
19 £/

U.6l(l/29/60)
U.U6(9/15)
U.2K3/17)
U.U3(2/16)
14.23(1^/2^
U.37(lV27)
U.19(3/29)
4.41(6/19)
4.35(2/28)

U.142 (l/e/60)
U.07 (12/29)
3.70(5/12)
1^.12(2/23)
3.85(12/28)
U.16 (12/27)
3.87 (1/18)
4.20(4/17)
4.13(6/19)

3.65 (9/24/59)
3.37 (7/6)
3.12 (2/23)
3.26 (1/4)
2.88 (11/8)
3.18 (11/21)
2.93 (3/28)
3.16(3/26)
3.07(5/21)

.59
.57
•3U
oh7
.30
.35
.21
.28
. 19

1.09
1.02

4.41
4.41
4.41
4.41
4.41-

4.14
4.14
4.15
4.14
4.13

3.07
3.08
3.08
3.10
3.11

.27
.27
.26
.27
.28

1.07
1.06
1.07
1.04
1 02

.92
.76
.1*6
l«0lt
.80
1.05
.88

jd/ Preliminary.
1/ Weekly average of daily figure a. Average tern of bonds included ie 22-24 years*
"zf Weekly average of daily figures. The series includes- bonds due or callable in 10 years or more.
3/ Thursday figures. Only general obligation bonds are included| average term is 20 years.
Note.—Highs and lews are for individual series and may be on different dates for different
series, for spreads, high refers to widest, and low to narrowest.




L O N G - T E R M B O N D YIELDS, L O W E R - G R A D E

coirotm in

v X ^ A
Vl

\

SUIi AND 10(11 GOVilNMEHT
s\

Mo o d y ' »

/V.
I
\s-~-

t 1 I I II I 1 J. I 1 I 1 1 I 1 LLJ-U 3.0
Exhibit B - Part II

Corporate
Baa 1/

State and
local govt.
Baa y

Spread between
Aaa and Baa
State and
Corporate
local govt.

(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
- Low
1961* - High
Low

5.3$ (2/13/60)
5.13(10/27)
5.00(4/21)
5.110/5):
u. 92(12/21)
1.93(1/4)
U.83(11/15)
4.86(6/19)
4.82(2/7)

U.U6 (V7/60)
U. 16 (3/23)
3.93(U/9)
U. 01; (1/11)
3.52(5/17)
3,63(6/27)
3.52(5/23)
3.58(3/26)
3.51(4/16)

.8U
.81
.66
•7U
.63
.71
.1*8
.48
.43

1.08
.93
.57
.82
.56
.63
.a
.49
.36

May
May

4.84
4.84
4.85
4.85
4.86/

3.52
3.53
3.53
3.54
3.54

.43
.43
.44
.44
.45

.45
.45
.45
.44
.43

22
29

June
June

12
19 2/

Note*

For footnotes see Exhibit JL.




S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST R A T E S , G O V E R N M E N T

Exhibit C - Part II
Discount
rate

y

1959--60 - High . U.oo
3.00
1961 - High
3.00
3.00
1962 - High
3.00
Low
3.50
1963 - High
3.00
Low
196U - High
3.50
Low
3.50
22
M.iy
29
M;iy
j une 5
12
June 19 £/

3.50
3.50
3.50
3.50
3.50

3-month
bills 2/

Yields
3-5 year
6-month
issues 2/
bills 2/
(per cent)

U. 59 (1/8/60) S.07 (1/8/60) 5.00(12/24/59)
2 66
12/29) 2.90(1/29) 3.86(8/11)
2.17(1/27)
2.35(4/28) 3.15(5/12)
2.97(7/13) 3.13(7/20) 3.88(2/2)
3.Ul(12/28)
2.65(6/8)
2.71(6/6)
3.55(11/15) 3.68(12/6) U.07 (12/27)
3.UU(i/is)
2.93(3/0)
2.88(3/15)
4.23(3/27)
3.74(3/6)
3.56(3/6)
3.57(6/12) 3.99(2/7)
3.45(5/1)
3.47
3.47
3.47
3.47 ,
3.49 /

V
y

3.60
3.58
3.57
3.57
3.58

4.07
4.06
4.05
4.04
4.04

Spread between yields on 3month bills and yields <
6-mo. bills 13-5 yr. issues

- .79
.Wi
.12
• 2U
.02
.17
.Oii
.21
.09

1.81
1.51
.92
1.19
.52
.70

.13
. 11
. 10
. 10
.09

.60
.59
.58
.57
.55

.k2

. 71
.48

Vfeekly rate shown is that in effect at end of period at the Federal Reserve Bank of New York*
Market yield; weekly averages oanputed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
Note.—Highs and lows are for individual series and may be on different dates for different series.
For spreads, high refers to widest, and low to narrowest.




S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST R A T E S ,
B A N K S A N D OTHER PRIVATE B O R R O W E R S

E x h i b i t D - P a r t II

Date

Stock e x c h a n g e
call loan 1 /

Prime
rate 1 /

F i n a n c e companypaper 2 /

Federal
funds 3/

Spread between
3 - m o , b i l l s and
finance co. paper

'per c e n t )
1959-60 High
1961 - High
Low
1962 - High
1963 - High
Low
196L - High
Low
May
May

22
29

June
June

12
19 2 /

5.50
U.50
li.5o
U.5o
U.5o
U.5o
U.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50

5.00
a . 50
L50
U.50
U.50
li.50
•U.50
4.50
4.-50
4.50
4.50
4.50
4.50
4.50

5.13(1/22/60)
3.00(12/30)
2.50(8/$$)
3.25(7/21)
2.88(6/1)
3.88(12/27)
3.13(5/31)

U.00 (5/13/60)
2 . 9 0 (11/17)
.1*3(3/27)
3 . 0 0 (12/28)
1 . 3 0 (1/26)
3 . 5 0 (12/27)
2.U5 (7/26)

3*93(4/3)
3i75(5/22)

3.50(6/19)
3-. 2 0 ( 3 / 6 )

• 41
•22

3.75
3.80
3.88
3.88
3.88

3.50
3.50
3.50
3.50
3.50

.28
.33
.41
.41
.39

1.02
.56
.11
.U5
.19
.39
.12

Weekly rate shown is that la effect at end of period. Stock Exchange call loan rate is going rate
on call lqans secured by customers* stock exchange collateral at New York City banks. Prime rate
is that charged by large banks on short-term loans to business borrowers of the highest credit
standing.
2J Average of daily rates published by finance companies for directly placed paper for varying maturities
in the 90-179 day range*
3/ Weekly average of daily effective rate, which is the rate for the heaviest volxaas of purchase an*
sale transactions as reported to the federal Reserve Bank of New York.
Motet—Highs and lows are for individual series and may be on different dates for different series*
For spreads, high refers to widest, and low to narrowest*
l/




STOCK M A R K E T

Exhibit E - Part II

Stock price
index 2/

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

Stock mairket c u s t o m ;
Customers' Bank
debit balloans to
ances h/
"others"

Total

(In millions of dollars)
1961-62 - High
Low
1963 - High
196b. - High
Low
April
May

June

19 £/

72 * 0 U 12/8/61)
52.68(6/22/62)
7L.Wl(12/2%)
81.01(5/15)
75.50(1/3)

2.80
3.96
3.01
3.00
3.10

79.94
80.72
79.02
79.60
80.89

3.00
3.01
3.10
3.07
3.03

10.1
2.1*
6.5

'

5,602(12/01)^259(12/61) 1,418(5/9/62)
U,U21*(1/61) 3,253(1/61) 1,161(3/8/61)
7,298(13/63)5,586(11/63) 1,738(1^25)

6.1
4.0

7,314(4)
7,120(2)

5,524(1)
5,366(3)

5.6
5.0
4.3
4.0
4.6

7,314
7,277

5,510
5,439

r,851(6/10)
1,720(1/22)
1,804
1,838
r/1,850
1,851

n.a.—Not areliable, jy Preliminary.
~~
—
•
y Standard and Poor*a ooaposite index of 500 cannon stocks, weekly closing prices, 1941-43-10.
Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are for
Friday's data only.
y Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing
prioes by Federal Reserve. Yields shown are for dates on i&ioh price index reached its high
3/ Averages of daily trading volume on the New York Stock Exchange.
y
End of month figures for member firms of the New York Stock Exchange which carry mrtfin accountsi
excludes balances secured by U. S. Government obligations.
Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
U. S. Government securities. Weekly reporting banks account for about 70 per cant of loans to
others. For further detail see Bulletin.

Jy




SL

PRIVATE H O U S I N G STARTS A N D PERMITS

St AbONAUY ADJUSIfcD D A I A

| IUIIDIWG rim

HfcK C t N I

OF U N A D J U S T E D TOTAL STARTS

I
I

|
'J

I MUIII-IAMllI
| |3 e i • oill.
0V1INMI*! UNPIIWIIIUS
1

E x h i b i t F - Part II

Total
Date

1963

- May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1 9 6 4 - Jan.
Feb.
Mar.
Apr.
May

S e a s o n a l l y adjustUnadjusted
ed annual rate
FHA

1,618
1,571
1,588
1,455
1,732
1,847
1,564
1,564
1,718
1,657
r/ 1,663
r / 1,515
1,501

Building
permit*
E housing ( s e a s o n a l l y
adjusted
Multi1-2
family
family
r a t e ) 2/ __

Unadlusted
T y p e o f financing

(Thousaiids of
22
166
153
20
150
21
144
19
145
19
163
21
119
17
95
16
100
11
100
12
130
16
18
147
155
23

VA
unitC8)
7
137
7
126
8
121
7
119
6
120
6
136
5
97
5
74
4
84
4
84
5
109
5
jr/ 123
5
127

112.6
104.7
103.0
100.5
97.5
107.8
75.8
53.6
58.5
68.5
88.1

53.8
48.7
47.1
43.8
47.8
55.3
43.5
41.4
41.0
31.9
42.2

1,328
1,363
1,308
1,262
1,372
1,412
1,369
1,426
1,314
1,405
1,384
1,256
1,258

1/ Total starts are Census estimates Including farm for both permit-Issuing and non-Issuing areas, A
Swelling unit Is started when excavation begins| ell unite In an apartment structure aye considered
started at that time. IN A. and VA starts are units started under commitments by these agencies to Insure
or guarantee the mortgages. As reported b y ITU and VA., a unit Is started when a field office receives
the first compliance inspection report, which is made before footings are poured in some cases bat
normally after the foundations have been completed. Capehart military houslig units are excluded*
Other starts are derived as a residual, although total and FHA and VA. starts are not strictly comparable
in oonoept or timing; other starts include both units financed by conventional mortgages and unite
without mortgages*
|Z Puildlng permita before January 1963 aro Cenem estimates fer about 10,000 areas identified as

leoal tulldlng permit system in 1959. Estimates beginning January 1963, axe fir approximately
Digitized
for *FRASER
12,000, or ill taewn, pemit-iesuing places. Unlike starts, seasonally adjusted building permits
reflect dlract adjuatnont fer differences in the nuntoer ef welting days per month, as well as other
http://fraser.stlouisfed.org/
** if er»"Aeft xn timinrf end cm verage*
Federal Reserve Bank of St. Louis

ft
YIELDS O N

NEW

A N D SEASONED CORPORATE BONDS

Exhibit G - Pert II
Y i e l d s o n N e w C o r p o r a t e Bond Issues A d j u s t e d to a n A a a b a s i s
N u m b e r A m r t o f issues A v e r a g e
of
included (mil.
yield
(per c e n t )
of d o l l a r s )
W e e k l y averages:

June 5

1964
13
20
27
Apr,
3
10
17
24
May
1
8
15
22
29

N u m b e r A m ' t o f issues A v e r a g e
of
included (mil.
yield
of d o l l a r s )
(per c e n t )

81.0

4.39

85.0

4.46

13.0
8.0
50.0
89.0
95.0
36.0

4.48
4.45
4.53
4.45
4.43
4.45

12

60.0
35.0

4.45
4.44

19

55.0

4.43

Note; Averages of offering yields on al^L new leaves of publicly offered corporate bonds rated Aaa. Aa and
A by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline
and foreign companies, and bonds guaranteed by the Federal Government) weighted by size of offering.
Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual
reoffaring yield ttu excess of the weekly average yield for seasoned bonds of the appropriate Industryquality group over the composite average for seasoned Aaa-rated bonds (Moody's), Averages considered
unrepresentative because or special characteristics of the offerings included are denoted by an asterisk^




W
H. 14
Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

New Capital
1964
January
February

April
May

1

1963

1st half
Three quarters
Year

State and
1
1963

-2/
1962

A

876
1 ,133
628

e/1,100
e/ 600
e/ 750

869
866
930

873
912
786

(

573
773
557

680
708
449

612
544
427

'
,';i
.

1,013
819
1,415

819
678
1 ,064

1 ,051
729
416

650
578
550

' '
:•)

2,351
2,847
2,109
3,246

2 ,228
3 ,056
1 ,902
2 ,561

2 ,454
2 ,665
1 ,837
2 ,197

2 ,637
2 .571
1 ,5i28
1 ,779

5 ,118
6 ,955
9 ,151

5 ,208
6 ,790
8 ,568

JV 2,111
e/ 950
e/1,400

930
904
1,013

1 ,153
771
1 ,132

676
637
795

e/6,819

j

732
746
976

549
860
819

2/2,369
e/4,461

1964
944
772
789

613
594
1,144

October
November
December
quarter
quarter
quarter
quarter

1962 ..."

930
685
754

£/
£/
£/

July
August
September

1st
2nd
3rd
4th

1

5,198
7,307
10,553

5 ,284
7 ,186
9 ,747

£/
£/

£/

2/2,505
e/2,350

;

.;

1,

Excluding finance companies—^
1st
2nd
3rd
4th
Year
e/
j)/
1/
2/
3/

quarter
quarter
quarter
quarter

&/L996
e/4,011.

2,284
2,529
1,768
2,854

2 ,169
2.,970
l',767
2,,330

9,434

9 ,236
j

-

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




X

11.14
Exhibit 1
New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

Quarter
>

Month

Total

Gross proceeds for now
capital and refunding 1/
Common Memo:
Foreign
'Bonds
Mfg.
Publicly
Privately pfd. issues
included
offered
offered

Net proceeds tor
new capital 1/ 2/
Public Communi Other
utility cations issuers

'i 1961 - III
i
iv

2,566
3,236

772
967

1,139
1,424

654
845

69
62

935
792

595
836

104
147

893
1,263

:1962 - I
II
III
IV

2,378
3,250
2,184
2,957

1,155
1,389
853
1,089

716
1,222
1,024
1,568

507
639
307
300

68
257
56
179

655
996
601
769

430
983
375
568

456
231
275
321

717
794
659
986

)1963 - I
II
III
IV

2,700
3,634
2,436
3,466

1,108
1,389
898
1,319

1,306
1,820
1,251
1,780

287
424
287
367

128
434
109
47

947
591
806
968

326
794
285
530

236
221
150
118

842
1,241
868
1,629

I 1964 - I
II

2,499

978

1,221

30:0

29

418

43 8

273

1,240

i. 1962 - July
I
Aug.
;
Sept.
\
Oct.
:
Nov.
•
Dec.

630
922
632
976
784
1,197

200
477
176
539
286
264

366
363
295
314
446
808

67
82
161
123
52
125

13

217
218
166
153
271
345

118
110
148
141
175
252

88
120
67
260
4
57

159
301
199
282
253
451

; 1963 - Jan.
|
Feb.
I
Mar.
i
Apr.
\
May
I
June
I
July
!
Aug.^
I
Sept.
]
Oct.
s
Nov.
I
Dec.

695
642
1,363
1,049
1,340
1,246
810
756
871
1,116
891
1,459

350
259
499
380
550
459
279
336
283
511
183
626

243
289
774
452
694
675
431
318
501
481
549
751

102
94
91
217
95
113
100
100
87
125
159
83

135
220
592
148
216
227
297
272
237
240
214
515

114
115
97
341
222
230
107
100
78
201
131
198

125
68
43
71
92
58
86
25
39
41
13
64

238
191
412
369
373
499
187
240
441
531
461
637

| 1964 - Jan.
Feb.
'•
Mar.
<
April £_/
May
e/

985
710
805
2,173
9/0

338
279
361
383
470

526
342
353
429
380

121
88
91
1,36 j
120

149
123
1.46

157
109
83
155
174
34
160 - 1,354
10
420

43
46
34
99
25
43
60
56
182
196
46
21
42 2r
10
10
27
5
16
8
* >2
n. a.

150

515
326
400
4 ,J5
370

g/ Preliminary. e/Estimated by Federal Reserve. %/Gross Proceeds exceed net proceeds by the
i co'.t. of flotation. 2/For total see Exhibit H; other issuers are extractive, railroad and other
| transportation, real estate and finance and commercial and other. Source. --Securities and
Digitized
FRASER
Exchangefor
Commission.



Exhibit J
Other Security Offerings
(In millions of dollars)

Gross lone-term 1/
Federal agency 3/

Foreign government 2/
19 6 4

January
February

4
82
69

April
May :

E/

2 V

e/

65

July
August
September
October
November
December
Jan. - May

|

1963

232
133
76
57
114
11
63
83

2
e/ 247

Year

|

196?

142
10
35
10
86
50
25
8
3>
iii
88
101

612

283

771

737

1 964

—

-

April
May
June
July
August
September
October
November
December
Jan. - May

103
236
jd/

£/

-4

427

75
272
-367
589
-30
-10
62
208
-173
259
146
-339
539

18
466,
-186
127
-84
-118
78
339
-406
71 ^
234
-161
341

|

1963

1962

148

246
156

186

461

459
150
175
174
200

e/

r

r

Net short-term 4/
State and local government 5/
January
February

yr

12
-459
198
£/
2/167

13

--

--

334

863

1,167

1,188

Federal agency 3/
-106
-189
-482
292
195
319
414
327
258
123
-102
551
-290

••

247
-156
226
-364
82
284
261
227
-157
379
55
-80
35

i
Year
1.004
1.600
692 — —
m
L
2./ Preliminary. e/Estimated by Federal Reserve, n. a. --Not available. V T h e s e data differ
•;
from those in Exhibit H in that refunding issues, as well as new capital issues are included:-'
Long-term securities are defined as -those maturing in more than one year. 2/lncludes securities offered in the United States by foreign governments and their political subdivisions
and international organizations. Source: Securities and Exchange Commission 3/Issues not
guaranteed by the U . S . Government. Source: long-term, Securities and Exchange Commission;
short-term, Treasury Department and Federal Reserve. 4/These data differ from those in
Exhibit H and above in that they represent new offerings less retirements, whether from the
proceeds of refunding issues or from other funds. Data include only issues with original
maturity of one year or less. 5/Principally tax and bond anticipation notes, warrants or
certificates and Public Housing Authority notes. In some instances PHA notes included may
have a for
somewhat
longer maturity than one year. Source: Bond Buyer and Federal Reserve,
Digitized
FRASER



Exhibit K
Large Long-term Public Security Issues for New Capital
(Otherthan U. S. Treasury) If
Proceeds of Large Issues Offered
(In millions of dollars)

Total
.963 - May
June
July
August
September
October
1
November
December
<
:.964 - January
February
I
March
1
April .
May

\

|

149
348
199
236
237
446
180
547
307
263
335
1,557
452

Corporate
Bonds
Convertible
(Other than
convertibles)
' -149
348
180
218
215
380
117
515
225
60
200
35
296
235
51
415

Stocks

--

19
18
22
66
63
32
22
28
38
1,271
37

State
and
local
governments
389
372
279
329
135
734
373
111
577
358
282
698
274

Other 2/
43
460
60
20
174
200

50
20
15

Large Individual Issues Offered June 1 through 19
1
Issuer
Corporate
ommunications Satellite Corp.
..ong Island Lighting Co.
general Telephone Co. of Cal.
Michigan Wisconsin Pipe Line Co.
general Motors Acceptance Corp.
^ ouisiana Pwr. & Lt. Co.
Consolidated Edison Co.
public Service Co. of Colo.
iaclede Gas Co. "
tate and Local Government
, tate of Maryland
s ew York Port Auth.
Dallas Inc. Sch. Dist., Tex.
.,08 Angeles Un. Sch. Dist. , Cal.
lorfolk, Va.
,iinnesota State College Bd.
grange Co. Spec. Tax Sch Dist #1, Fla
*?enna State Highway & Bridge Auth.
public Housing Auth.
Jew York City, N. Y.
'arrant Co. , Texas

I


i


Type

Amount
(millions
°f =
dollars)

Coupon
Maturity rate or
Offer- Ratnet inter- ing
ing
est cost
yield

Com. stk.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Deb.
1st mtg. bds.
Pfd. stk.
1st mtg. bds.
1st mtg. bds.

200.0
25.0
35.0
20.0
150.0
25.0
60.0
35.0
20.0

1994
1994
1984
1986
1994

4-5/8
4-1/2
4-7/8
4-5/8
4-5/8

4.53
4.56
4.73
4.64
4.58

Aa
A
Baa

1994
1984

4-1/2
4-5/8

4.48
4.57

Aa
A

G.O.
Rev. -Q.-Ut.
G.O.
G.O.
G.O.
-Rent.
--S.T. ,
-Q.-Ut.

37.4
35.0
10.0
25.0
12.0
10.0
25.0
25.0
119.8
13.9
12.0

1967-79
1995
1965-84
1965-89
1965-89
1968-2003
1966-84
1964-83
1965-2004
1965-2013
1965-84

2. 93
3. 54
3. 04
3. 22
3. 14
3. 89
3. 26 1
3. 06
3. 34
3. 67
3, 11

-•

Rev. -Rent.
G.O.

2. 40-2 .95
3.50
2. 10-3..15
2. 15-3. 35
2. 15-3..254/
2.80-3. 85
2. 40-3. 301/
2. 00-3. lOi/
2. 10-3. 45
2. 20-3.
2. 15-3. % z /

Asa
A
Aa
Aa
Aa
Aa
Aa
Aaa
A
Aa

K-2

Issuer

Type

Amount
(millions
of
dollars)

Coupon
Maturity

net inter-

Offering
yield

Other
Federal Home Loan Banks

Bonds

265.0

1966

4-1/4

4.19

Rating

I
-a

*--Rights offering, n.a.--Not available.
'if Includes corporate and other security offerings of $15 million and over; State and
local government security offerings of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and Development
issues and non-guaranteed issued by Federal agencies.
3/ In the case of State and local government securities, G.O. denotes general obligations; Revi-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut.3 revenue bonds secured only by revenue from quasi-utilities; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds
secured solely by lease payments.
4/ Bonds maturing 1988-89 not publicly reoffered.
5/ Bonds maturing 1981-83 not publicly reoffered.
6/ Bonds maturing 1981-83 not publicly reoffered.
2/ 1/10 per cent bonds maturing 1984 reoffered to yield 4.10 per cent.




n

7\
•; t

Exhibit L
Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues

F 1963 - May 31
|
June 28
July 31
!
Aug. 31
Sept. 30
Oct. 31
Nov. 29
Dec. 31
1964 -Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 28

During month following
3ate shown
State.and
Corporate
local govt.
Other 2/
233
255
460
170
142
75
221
20
329
210
158
240
561
255
145
392
137
305
469
316
155
224
454
25
1,587
669
651
345
15
600
341

Corporate
288
215
267
183
240
145
1,992
1,905
1,771
1,649
1,837
844
668

Subsequent to
date shown
State and
local eovt.
Other 2/
582
460
287
75
20
512
468
757
401
J 49
731
667
646
953
25
15
575
598

Forthcoming Large Offerings as of June 19 _

Issuer

Type

Amount
(millions of
dollars)

Corporate
Carolina Pwr. & Lt. Co.
Deere & Co.
Pacific Gas. & Elec. Co.
Baltimore Gas & Elec. Co.
Milwaukee Gas Light Co.
^Nationwide Corp.

1st mtg . bds.
Deb.
Stk.
1st mtg,. bds.
1st mtg., bds.
Stk.

30.0
50.0
64.1
30.0
18.0
35.0

State and Local Government
Milwaukee Co., Wise.
Omaha Met., Utah Dist., Neb.
^Jacksonville, Fla.
Alabama Highway Auth.
State of Oregon
,
Memphis, Tenn.
^Houston Ind. Sch. Dist., Tex.
*Met. Denver Sewage Dis. Dist.,#1, Colo.
Seattle, Wash.
Merced Irr. Dist., Cal.
Florida Dev. Comm.

G.0.
Rev. -Ut.
Rev. -Ut.
Rev. -Q.-•Ut.
G.0.
G. 0.
G.0.
Rev. -Ut.
Rev. -Ut.
Rev. -Q.-•Ut.
Rev. -Q.-•Ut.

17.2
18.0
25.0
10.0
13.6
14. 0
10.0
32.5
60.0
36.0
12.7




Approximate date
of offering

July
July
July
July
June
June
July
July
July
July
July
July
July
July

24
24
7 (rts. ex."
8
18

23
25
25
8
8
14
14
15
15
15
20

H. 14
L-2

Issuer

State and Local Government
Va. State Highway Auth.
^.Mass. Turnpike Auth.
*San Francisco, Cal.
Pittsburghs Pa.
Dade County, Florida
Forth Worthy Tex.
Atlanta Fulton Co. Rec. Auth. Ga.

Type

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

Amount
(millions of
dollars)

31.0
35.0
15.8
35.0
46.0
14.1
18.0

Approximate date of
offering

July
July
Aug. 10
Indefinite
Indefinite
Indefinite
Indefinite

Other
None.

^--includes in Table for first time.
V Includes corporate and other issues of $15 million and over; State and local
government issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues for Federal agencies.
Note:--Deletions for reasons other than sale of issue: None.




H. 14
E^hi

I

Foreign Government and Corporate Security Offerings
and Placements in the United States

Part I:

Sale
Da te

Amount(millions/of
dollars)

Public Offerings

Issuer and Description of Issue

A.

Sold April 1 through June .19

4/1

25.0

United Mexican States--6-l/2% sinking
fund debentures, maturing 1979
offered to yield 6.75%

5/7

15.0

Republic of Finland--6% bonds, maturing
1976, offered to yield 6.24%

5
!

B.

S
!




Prospective Offerings

M-2
Part II:

Date
reported

Private Placement--Reported April 1 through June

Amount
(millions of
dollars)

4/1

12.5

Issuer and Description of Issue

C. Itoh & Co. Ltd--6-l/2% convertible
unsecured debentures, maturing 1984-no information available on takedown.

^

5/8

4.0

5/8

10.0

Pacific Great Eastern Railroad Co.--4-1/2%
sinking fund debentures, maturing 1994-no information available on takedown.

5/18

21.0

Upper Lakes Shipping Ltd.--6% installment
notes, maturing 1966-79--no information
available on takedown.

50.0

Quebec-Hydro-Electric Power Authority-4-1/2% debenture, maturing 1984--no
information available on takedown.

*6/2

Israel Discount Bank Ltd.--5-1/2% capital
notes, maturing 1979--no information
available on takedown.

Note: For retrospective data on aggregate foreign corporate and government security
offerings in the United States see Exhibit I and J. There is no simple relationship
between the data shown in this Exhibit and that shown in Exhibits I and J because
the latter includes privately placed securities in the period in which funds are
actually takendown but only in the amount of takedown, while the placements shown
in this exhibit are included when reported, frequently with little or no information
concerning timing of takedowns. ^Full or partial takedowns may take place both
prior and subsequent to the data a placement is reported.
"--Included in table for first time.




-

.

A

Exhibit N
Sources and Uses of Funds by
Life Insurance Companies

lu. S.
Cash]Govt.
SecuriIities
Value of assets
at end of period:
1960 - Dec.
1961 - Dec.
1962 - Dec.
1963 - Dec.
1964 - Apr.
Changes:
1962 - Jan.
Feb.
Mar.
Apr.
May
Juris
July
Aug.
Sept.
Oct.
Nov.
Dec.
1563 - Jan.
Feb.
Mar.
Apr. r/
May
July
Aug.
Sept.
Oct.
Dec.
2/1964 - Jan.
Feb.
Mar.
Apr.
May

Uses of Funds 1/
Business
|State and
Securities 2/
local
Mort- Other
Bonds &|Short-term Govt, se- gages
Stocks 1 paper
curities
(In millions of dollars)

1,329
1,392
1,456
1,442
1,168

6,428
6,135
6,171
5,755
5,689

48,631
51,362
53,468
55,997
56,813

295
193
348
381
463

- 99
1
- 75
12
4
- 22
58
- 24
42
12
35
120

223
25
-76
91
-24
-95
121
-21
-48
28
36
-224

65
156
135
44
265
248
132
206
182
: 36
135
402

225
43
52
179
-53
-118
72
31
20
69
-40
-325

-134
-17
-75
-13
29
-1
54
-10
87
6
-21
: :9

133
-71
-211
-19
-162
-94
86
-33
14
5
-42
-32

190
58 .
143
50
233
13
141
84
367
-139
219
-50
156
105
106
88
186
-56
225
64
109
274
391
-411
261
131
233
191

-159
-15
8
-108

27
23
-74
-42

270
-68
-94
-26

3,606
3,902
4,037
3,876
3,853

41,815
44,250
46,957
50,543
51,806

17,472
19,582
20,854
22,909
23,884

119,576
126,816
133,291
140,903
143,676

114,925 ,
121,270 I
127,796
134,805
137,063

29
3
117
-15
12
12
11
25
12
-21
-17
-9

149
114
143
119
197
198
139
237
178
296
332
605

145
100
60
27
-17
-14
148
149
87
159
290
138

737
442
356
457
360
209
681
603
473
679
771
707

712
418
351
542 i
575 l
325 •
634
. 531
484 •
717 :
666 '
571 i

31
-9
-'18
-27
-] 9
-1''
-19
-43
1
-4
-13

215
139
270
285
255
256
244
299
269
303
277
730

360
236
256
178
312
151
354
260
-54
242
4.
-88

842
471
468
629
626
462
972
691
403
846
597
696

778 •
418 •
371 »
591 '•
557 '
454 1
743 S
561 •
551 '•
653 •
605 704 '

-17
- 2
- 8
4

285
298
315
365

296
298
156
225

963
665
536
609

774'
518 j
440 •
526 :

'

,

Total Memo:Total
sources Excluding
Valuation
Change 3/

1/ Uses of funds represent net changes in assets and therefore reflect net, rather than gross
2/ Includes securities of domestic corporations only. Source.--Institute of Life Insurance,
r/ Revised.
2./ Preliminary.
3/ Excludes changes in miscellaneous assets (one portion of the "other" in this table) which
includes most, but not all, valuation changes, as well as changes in a few other items.




H. 14
Exhibit 0
Sources and Uses of Funds by
Savings and Loan Associations
Uses of funds 1/
U. S.
Govt. MortCash
secur- gages
2/
ities
Value of assets
at end of period:
1960 - Dec.
1961 - Dec.
1962 - Dec.
1963 - Dec.
1964 - Apr.
Changes:
1962 - Jan.
Feb.
Mar.
Apr.
MayJuly
Aug.
Sept.
Oct.
Dec.
1963 - Jan.
Feb.
- Mar.
Apr.
June
July
Aug.
.Sept.
Oct.
Dec.

Sources of funds
Other
assets

Total
sources

Net
change
savings

Borrowing 3/

Other
"C:
'' f

(In millions of dollars)
2,680
3,315
3,926
3,964
3,459

4,595
5,211
5,563
6,440
6,716

60,070
68,834
78,770
90,849
93,944

-354
96
128
-77
10
258
-384
-37
82
93
100
696

182
95
35
-43
-8
-64
46
-8
42
35
46
-6

518
592
784
830
962
1,006
880
1,003
829
944
790
798

188
172
177
35
-24
90
70
-38
' 112
74
129
-108

671
696
905
1,061
1,178
1,244
1,103
1,208
1,097
1,118
806
992

-333
106
90
-139
-37
237
-449
-48
30
67
32
482

4,131 71,476
4,775 82,135
5,346 93,605
6,178 107,431
6,390 110,509

62,142
70,885
80,236
91,205
93,841

2,197
2,856
3,629
5,011
4,595

-105
39
95
93
401
-62
-178
100
83
40
164
-99

241
822
1,042
803
1,365
1,138
364
1,058
1,036
1,112
1,100
1,389

494
565
918
374
761
1,395
25
635
857
815
857
1,655

-318
-98
-81
125
98
364
89
91
* 96
36
-23
457

128
355
205
,
304 A
506 A
-621 , '
250 - ;
332 /
83
261 -;
266
-723
,

108
46
117
92
394
-29
-150
151
38
82
175
24

418
1,020
1,289
1,049
1,511
1,542
1,574
1,273
1,277
1,341
1,142
1,390

985
844
1,195
478
969
1,642
-36
643
916
795
804
1,734

-737
-195
-96
124
115
594
254
224
296
197
59
547

170
371 -V
190
447
427
-694
356
406
65 >•
349 '•
279
-891
.

7,137
8,394
9,740
11,215"
12,073

.

604
158
-189
-421
464
134 .
177
-396
1964 - Jan.
710
109
-213
64
916
754
375
33
Feb....
76
<•'
906
1,124
71
135
1,102
-54
12
Mar.
875
157
-17
273
861
272
316
-154
Apr.
May
June
1/ 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 local government bonds, presumed to be small, are not available.
2/ Advances from Home Loan Banks and other borrowing. Source--FSLIC.




Exhibit P
Sources and Uses of Funds
by Mutual Savings Banks

Cash
Value of assets
at end of period:
1960 - Dec.
1961 - Dec.
1962 - Dec.
1963 - Dec.
1964 - Apr.

U. s.
Govt.
securities

Uses of funds 1/
State and
local govt.

I

Mortities 2/
ities
(In millions of dollars)

S cu re." -£ ti s
Total
Net
sources
change
Other
Other
in
deposits

874
937
956
912
819

6,243
6,160
6,107
5,863
6,064

5,076
5,040
5,177
5,074
5,138

672
677
527
440
423

26,702
28,902
32,056
36,007
37,266

1,005
1,115
1,297
1,406
1,466

40,571
42,829
46,121
49,702
51,177

36,343
38,277
41,336
44,606
45,851

4,228
4,552
4,785
5,096
5,326

July
Aug.
Sept.
Oct.
Nov.
Dec.

10
47
12
-79
12
54
-46
-29
44
15
-35
124

94
77
209
-216
16
-38
-11
26
3
-162
-19
-26

17
1
25
-35
2
17
66
14
2
3
27
-4

-7
-18
-18
-26
-20
-5
-5
-9
-5
-15
-6
-15

253
188
230
270
254
302
290
312
243
305
272
236

-118
12
62
-45
68
-22
-10
53
28
-32
36
28

250
307
-519
-131
334
306
285
367
315
114
274
345

83
165
472
-51
184
424
172
215
429
186
147
545

167
142
47
-80
150
-118
113
152
-114
-72
127
-200

• 1063 - Jan.
Feb.
Mar.
Apr.
May
JunG
July
Aug.
Sept.
Oct.
Nov.
Dec.

-137
51
21
-61
22
37
-63
-18
38
-28
-8
101

39
31
260
-241
-25
13
-19
-34
-61
-177
-14
-22

4
-11
-9
-72
-5
19
14
25
~
43
-22
-75
1

-15
-11
-26
-5
-8
-3
-3

436
320
313
327
357
354
314
300
274
369
321
353

13
-6
49
-58
52
-11
11
71
37
-42
38
-34

330
375
610
-111
392
306
254
344
329
97
259
390

229
215
526
11
232
422
137
174
430
198
118
578

101
160
8'.
122
160
-119
lid
171
-102
101
141
-188

1964 - Jan.
Feb.
Mar.
Apr.
May

64
32
6
-68

88
82
84
-53

15
47
16
-13

345
283
298
333

93
5
25
-63

477
435
327
135

400
260
495
90

77
17:
-69
46

Changes:
1962 - Jan.
Feb.
Mar.
Apr.
May

-

-2
-3
-2
-8
--

-13
-3
-1

'

-.

2/ Preliminary.
1/ Uses of funds represent net changes in assets and therefore reflect net, rather than
gross uses.
2/ Includes Canadian government and political subdivisions, International Bank for Reconstruction and Development, nonguaranteed Federal agency and other bonds as well as
corporate bonds and stock.
Source.--NAMSB