Full text of H.16 Capital Market Developments : April 22, 1963

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Not for Publication DECONTROLLED AFTER SIX MONTHS

April 22, 1963

H. 14
UBRARY

CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES

APR 2 4 1963
FEDERAL
OF RICHMOND

ing Review of Sources and Uses of Funds of
Financial Intermediaries in
February)

Public security financing to obtain new capital was in
substantial volume last week and is expected to be in even larger
volume this week. During the week ending April 19, two large
corporate issues totaling $80 million, five State and local government
bond issues amounting to $87 million and $64 million in long-term
bonds of the Federal Land Banks were offered to obtain new capital.
This week, ending April 26, four corporate issues amounting to $120
million entirely for new capital purposes are anticipated, four State
and local issues with par value of $148 million are on the calendar
and the Kingdom of Norway is expected to offer $25 million in bonds.
In addition the Tampa Electric Company has scheduled a $48 million
bond issue of which $25 million is to refund outstanding securities.
Bond yields. Yields on seasoned, long-term bonds either
rose or were stable last week- Yields on Aaa-rated corporate bonds
edged up a basis point to 4,21 per cent, while Aaa-rated State and
local government bond yields rose four basis points to 2.99 per cent,
U« S. Government bond yields advanced three basis points to 3.99
per cent, their highest level since mid-August. Yields on both Baarated corporate and municipal bonds were stable.
The average yield on new corporate bonds, adjusted to an Aaa
basis, was 4=28 per cent last week, ten basis points above the average
for the previous week.
Short- and intermediate-term interest rates. Rates on
3-month Treasury bills were stable last week, while those on 6-month
bills increased two basis points to match their high for the year;
yields on 3-5 year U. S. Government obligations rose five basis
points to 3.59 per cent, their highest level since mid-September,
The average rate of interest on directly-placed finance company paper
dropped six basis points to 3=13.per cent, matching the low for the
year, reflecting the full effect of the rate change the previous week.
The average effective Federal funds rate fell 15 basis points to
2.85 per cent. Other rates were unchanged.
Housing starts. Seasonally adjusted private housing starts
(including farm) rose 17 per cent in March. The rise, which followed
a moderate upturn in February, was to an annual rate of 1,494
thousand--the highest since November of last year and 4 per cent
above the year earlier level.
Reflecting the reduced rates earlier this year, the annual
rate of starts in the first quarter as a whole was 1,338 thousand.
This was 13 per cent below the advanced rate in the fourth quarter
FRASER
of 1962, although 4 per cent above a year earlier.

Digitized for


-2-

Government-underwritten starts accounted for no more than
18 per cent of total starts in March. This compared with 24 per cent
in March of 1962 and 25 per cent at this time in 1961.
Seasonally adjusted building permits in permit-issuing
areas edged higher in March 5 following a moderate downward revision
for February.
The annual rate of 1,240 thousand was about 6 per cent
below the recent high reached in December but 8 per cent above a
year earlier.
Stock market credit. Customers credit in the stock market
increased $37 million during March to a new record of $5.8 billion at
month-end. All of this increase was attributable to a $38 million
rise in bank loans to others than brokers and dealers for purchasing
and carrying securities (except U. S. Government securities) to a
peak of $1.4 billion at the end of the month. Customer debit balances
(except these secured by U. S= Government securities) edged off $1
million from their February high.
Money borrowed by member firms of the New York Stock Exchange
rose $133 million in March, the fourth consecutive month-to-month
increase, but customers' free credit balances fell $16 billion. More
detailed information on stock market credit in February and March is
shown in the following table.

End of month

Customer credit
Excluding U. S. Government securities - total
Net debit balances
Bank loans to "others"
Net debit balances secured by U. S. Govt, securities
Bank loans to "others" for purchasing or carrying
U« S. Government securities.
Broker and dealer credit
Money borrowed except on U. S. Govt, securities
On customer collateral
Money borrowed on U. S. Government securities
Customers' net free credit balances
r/

Change

5,754
4,331
1,423
28

5,717
4,332
1,385
23

+37
-1
+38
+5

100

91

+9

3,192 r/3,059
2,754 r/2,695
63
35
1,175
1,191

+133
+59
+28
-16

Revised.
Stock prices. Common stock prices advanced moderately further
in very active trading last week. Prices, as measured by Standard and
Poor's composite index of 500 stocks, rose almost one per cent on balance
to close at. 69.23 on April 22. This was the highest level since the
beginning of April 1962 and brought prices to within five per cent of
the December 1961 high.




•3

Institutional investors. The net. inflow of funds during
February at three major types of financial intermediaries--life insurance
companies, savings and loan associations and mutual savings banks-totaled $1.6 billion, a record for the month and one-third more than a
year earlier. Inflows at all three types of institutions were larger
this February than last, with savings capital at savings and loan
associations increasing most sharply. (Time and savings deposits at
commercial banks rose $1.5 billion in February, about 6 per cent less
than the very large increase in February 1962.)
Assets of life insurance companies increased $0,5 billion in
February, 11 per cent more than last year and a record for the month.
Net acquisitions of business securities totaled $0.2 billion,
about the same as a year earlier, with increases in holdings of both
long-term bonds and stocks ($159 million) and short-term commercial
and finance company paper ($46 million) little difference than in
February 1962. The increase in mortgage holdings, however, at $145
million, was over one-fourth larger than a year earlier. Cash and
U. S. Government holdings fell $0.1 billion, whereas they rose somewhat
in February last year. Acquisitions of foreign government securities
(included in other assets) were unusually large this February, totaling
$102 million, reflecting primarily takedowns of part of a large issue
of Quebec Hydro-Electric Authority bonds.
Savings capital at savings and loan associations rose. $0.9
billion in February, a record for that month and 53 per cent greater
than a year earlier when, however, inflows at these associations
probably were still affected somewhat by the increase in interest rates
on time and savings deposits put into effect by many commercial banks
at the start of the year. Mortgage acquisitions totaled $0.7 billion,
also a record for the month and 15 per cent larger than in February 1962.
Holdings of cash and U. S. Government securities rose $0.3 billion, twofifths more than last year, while these associations reduced their
borrowings (primarily from the Federal Home Loan Banks) by $0.2
billion, over twice as much as in February 1962.
Deposits at mutual savings banks rose $0.2 billion in February,
30 per cent more than last year and a February record. Mortgage holdings
continued to increase sharply in February, expanding $0.3 billion, a
record for the month and seven-tenths greater than a year earlier.
Cash holdings rose slightly more than last year, but acquisition of
U. S. Government securities (primarily Treasury bills) were less than
one-half as large.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

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




jX.HI.MT * , Port I
LLONG-TERM B O N D YIELDS, H I G H - G R A D E

tqirqim_*ee

U. S. COmmilHT

r J ~ \

Exhibit A

- P a r t II
S t a t e and

Date

Corporate
A a a 1/

U. 8. Govt,
l o n g - t e r m 2/

local
government
A a a 3/

Spread between
U . S . G o v t , and
Corporate
S t a t e and
local Aaa
Aaa

(per c e n t )
1958 - Low
1959-60 - High
1960-61 Low
1961 - H i g h
1962 - Low
1963 - High
Low
Mar.
Mar.

22
29

Apr. 5
Apr. 12
'Apr. 19 j>/

3.55
4.61
4.21
4.46

(5/2)
(1/29/60)
(3/17/61)
(9/15)

4 . 2 3 (12/2Q)
4.22 (1/4)
4.19 (3/29)
4.19
4.19
4.20
4.20

z

'

4.21 /

3 . 7 0 (5/12/61)

2 . 6 4 (5/1)
3 . 6 5 (9/24/59)
2 . 9 9 (9/2/60)

.22
.59
.19

.34
.92
.46

4 . 0 7 (1^/29)
3 . 8 5 (12/28)
3.99 (4/19)
3.87 (1/18)

3.37
2.88
3.02
2.93

.57
30
.35
.22

.76
.80
1.02
.90

3.94
3.95 .
3.95

2.93
2.93
2.94
2.95

.24
.25
.24

2.99

.22

3 . 0 7 (4/25)
4 . 4 2 (3/8/60)

3.96
3.99

(7/6)
(11/8)
(3/7)
(3/28)

.25

1.01
1.02
1.01
1.01
1.00

p / Preliminary.
y
Weekly average of daily figures. Average term of tends included ia 22-24 years.
y
Weekly average of daily figures. The series include a bonds due or callable in 10 years or rrore,
3/ Thursday figures. Only general obligation bonds are includedl average term Is 20 years.
Bote.—Highs a/id lows are f o r individual series and may be on different dates for different
series, for r.preads, high refers to widest, and low to narrowest, '




EXHIBIT B, Part I
LONG-TERM BOND YIELDS, LOWER-GRADE

Exhibit B - Part II

Date

Corporate
Baa 1/

State and
local govt.
Baa 3/

4.51
5.36
4.98
5.13
4.92
4.93
4.87

3.64
4.46
3.93
4.16
3.52
3.57
3.55

Spread between
Aaa and Baa
State and
Corporate
local ROVt.

(per cent)
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - Low
1963 - High
Low
Mar.
Mar.
Apr.
Apr.
X&pr.

22
29
5
12
19 j)/

(7/11)
(2/12/60)
( 9/9/60)
(10/27)
{12/21)
(1/4)
(4/19)

4.87
4.88
4.87
4.87
4.87^

Note: For footnotes see Exhibit A.




3.55
3.55
3.55
3.55
3.55

(5/1)
(3/7/60)
(11/9/61)
(3/23)
(5/17)
(3/14)
(4/18)

.77
.84
.66
.81
.63
.71
• 66

.93
1.08
.57
.93
.56
.63
.55

.68
.69
.67
.67
. 66

.62
.62
.61
.60
.56

z
EXHIL.IT C
5

Y . 9 J1 T - A Y D . !_N T 1 R M E D I A T E - T E R M

POM

I

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

3 - J YEAI ISSUES

1 - MONTH BILLS

I I II I II II I I I I I 11 I II 1 I I I I I I I I I I II I 1 III I I II I I I I I I II I I I I I I
HSS
19S1
1910
19*1
11*2
1143

Exhibit C t Part II
Discount
rate
1/

1958 - Low
1959-60 High
1960-61 Low
1961-62 High
1962 - Low
1963 - High
Low
Mar.
Mar.
Apr.
Apr.
Lpr.
A

22
29
5
12
19 £/

3-month
bills 2/

1..75
4.00 *
3 .00
3..00
3 .00
3 .00
3,.00

.58
4.59
2.11
2.97
2.65
•2.95
2.88

(5/29)
(1/8/60)
(10/28/60)
(7/13/62)
(6/8)
(2/8)
(3/15)

3..00
3..00
3..00
3..00
3.,00

2.90
2.91
2.91
2.90 /
2.90/

Yields
6-month
bills 2/
(per cent)

3-5 yeftr
issues 2/

3.02 (12/26) 2.14
5.07 (1/8/60)5.00
2.35 (4/26/61)3.15
3.13 (7/20/62)3.88
2.74(6/8)
3.41
3.00 (4/19) 3.59
2.93 (3/8) 3.44
2.96
2.98
2.98
2.98
3.00

3.51
3.53
3.53
3.54
3.59

Spread between yields on 3month bills and yields on
6-mo. bills!3-5 vr. issues

(6/6)
(1^/24/59)
(5/12/61)
(Z/2/6Z)
[12/ZQ)
(4/19)
(1/18)

.26
.79
.12
.44
.02
.10
.04

.04
1.81
.38
1.51
.52
.69
.52

.06
.07
.07
.08
.10

.61
.62
.62
; 64
.69

1/ Weekly rate shown is that In effect at end of period at the Federal Reserve Bank of New York.
2/ ' Market yield; weekly averages computed from daily olosing bid prices. Series of 3-5 year is sues
consists of selected notes and bonds.
rote.—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.




SHORT- AND
BANKS AND
Weekly

I N T E R M E D I A T E - TERM INTEREST RATES,
OTHER

PRIVATE BORROWERS

Exhibit D

Date

Stock Exchange
call

loan 1/

Finance

Prime
rate
(per

- Part

1/

paper

II

company

Federal

2/

funds

3/

Spread between
3-mo.

bills

finance co.

cent)
(5/29)

-.35

4.00

(5/13/60)

1.02

.43

( 3/27/61)

.11

.13

3.50

3.50

1 . 1 3 (8/8)

5.50

5.00

5 . 1 3 (1/22/60)

1960-61 Low

4.50

4.50

2 . 5 0 (8/5/61)

1961-62

4.50

4.50

3 . 2 5 (7/20/62)

3.00

(12/28/62)1

4.50

4.50

2 . 8 8 (6/1)

1.30

( 3/26)

•19

1958

- Low

1959-60

1962

- High
- High

- Low

1963

.56

- High

4.50

4.50

3.25

(4/5)

3.00

(4/12)

.36

Low

4.50

4.50

3.13

(4/19)

2.63

(4/5)

.18

Mar.

22

4.50

4.50

3.13

2.90

.23

Mar.

29

4.50

4.50

3.23

3.00

.32

Apr.

5

4.50

4.50

3.25

2.63

.34

Apr.

12

4.50

4.50

3.19

3.00

.29

Apr.

19 2 /

4.50

4.50

3.13

2.85

.23

77

and
paper.

.

Weekly rate s h a m is that in effect at end of period. Stock Exchange c a l l loan rate is going rate
on call loans secured by oust oners' stock exchange collateral at N e w York City banks.. Prime rate
is that charged by large banks on short-term loans to business borrowers of t h e highest credit
standinge
2 / Average of d a i l y rates published by finance companies f o r directly placed paper f o r varying maturities
in t h e 90-179 day r a n g e ,
3/ Weekly average of d a i l y effective r a t e , w h i c h is the rate for the heaviest w l u m e of purchase and
sale transactions a s reported to the Federal Reserve Bank of N e w Y o r k .
N o t e . — S i g h s a n d loirs a r e f o r iniividual series and m a y be on d i f f e r e n t i a t e s f o r different series.
For spreads, high refers to widest, and lor to narrowest.




?

EXHIBIT E. Port I

1

STOCK MARKET

M i l l i o n s of d o l l

STOCK MAIKiT CIIDI1
CHANGE IN SERIES

Mill
iisi

1 1 1 . II 1 M

us?

II

' ' ' 1 II 1 1 1 1 1 1

m o

mi

Exhibit B

- Part

Common .
Date

Stock price
index 1/

stock
yields
(per

II
S t o c k m arket

Trading
volume

If

customer

Customers'

3/
Total

(millions

cent) of

1 1 1 I_1 1 1 1 1 1 1 1 -tvt-. 2
m i

shares)

debit balances

(In m i l l i o n s
1961-62
1963

- High

- High
Low

February
March
Apr.

5

4/

credit
Bank

loans

to

"others" 5/

of dollars)

72.04(12/8/61)

2.82

10.1

5 2 . 6 8 (6/2%/62)
69-23 (4/19)

3.96

2.4

4 , 8 7 6 ( 7 / 6 2 ) 3 , 5 6 2 ( 7/62) 1 , 2 6 9 ( 9 / 2 6 / 6 2 )

3.12

5.5

5,754(3/63)4,332

(2/63)1,435

(4/10)

64.10

3.36

3.3

5,595(1/63)4,208

(1/63)1,378

(2/23)

3.27

4.2

5,717

4,332

1,385

5,754

4,331

1,423

(3/1)

65.92

5 , 6 0 2 ( 1 2 / 6 I ) 4 , 2 5 9 (12/61) 1 , 3 7 7 ( 8 / 3 0 / 6 1 )

65.67

3.28

3.6

68.28

3.16

4.7

1,432
1,435

Apr.

12

68.77

3.14

5.5

Apr.

19 £ /

69.23

3.12

5.2

a . a . — N o t available, ja/ Preliminary#
L/ Standard and Poor's composite index of 5 0 0 oonmon stocks, weekly d o s i n g prices, 1941-43«10.
Monthly d a t a are averages of daily figures rather than of Friday's only. Highs and lows are f o r
Friday's data only.
2 / Standard and Poor's composite stock yield based on Wednesday d a t a converted t o w e e k l y closing
prices by Federal Reserve. Yields shewn are for dates on which piioe index reached its high

%
y

Averages of daily trading volume on t h e N e w Y o r k Stock Exchange,
End of month figures for m e m b e r films of 1he N e w Y o r k Stock Exchange viiioh carry margin accounts;
excludes balances secured b y U . S, Government obligations.
Wednesday figures for w e e k l y reporting m e m b e r banks. Excludes loans f o r purchasing or carrying
U . S. Government secu.ritie s. - P r i o r to July 1, 1959, such loans are excluded only ait banks in
N e w Y 0 r k and Chicago. Weekly reporting banks account ibr about 7 0 p e r cent of loans to others.
For further d e t a i l s e e Bulletin.




P R I V A T E H O U S I N G STARTS

V

CONVENTIONAL:

Exhibit F - Part II
Unadjusted

Total
FHA

m

Conventional

(Thousands of units)
-Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
- Jan,
Feb.
Mar. £/

1,431
1,542
1,579
1,425
1,466
1,529
1,289
1,550
1,586
1,472
r/1,242
r/1,278
1,494

115
147
154
136
136
146
114
134
120
94
r/81
r/86
121

21
25
26
24
25
28
20
23
19
16
14
13
17

6
8
8
7
7
8
6
7
6
5
4
4
5

88
114
120
105
103
110
87
104
96
73
Tr/63
r/69
100

T 7 Total starts are Census estimates, whioh are not striotly comparable with old nonfarm aeries
developed by BLS. A dwelling unit is started when excavation begins $ all units in an apartment
structure are considered started at that time. FHA and VA starts are units started under commitments
by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started
when a field office receives the first compliance inspection report, which is made before footings
are poured in sons cases but normally after the foundations have been conpleted. Capehart military
housing units are excluded. Conventional starts are derived as a residual, although total and FHA
and VA starts are not strictly comparable in concept or timing; they include both units financed
by conventional mortgages and units without mortgages.




4

EXHIBIT O. P H
YIELDS O N NEW AND SEASONED CORPORATE BONDS

ISMSONED A

Exhibit G - Part II
Yields on Hew Corporate Bond Issues Adjusted to an Aaa basis
Number Am't of issues Average
included, (mil.
yield
of
(ner cent).
issues of dollars)

Number Arn't of issues Average
yield
Included (mil.
of
(per cent)
issues of dollars)
Weekly averages:
1962 - Nov.* 2
9
16
23
30
Dec. 7
14
21
28
1963 - Jan. 4
11
18
,
25

.
\

3
2

85.0
37.0

4.14
4.13

2
2
3
1

19.8
72.5
87.0
45.0

4.00*
4.17
4.24
4.25

1
1
1
2

25.0
70.0
35.0
75.0

4.19
4.23
4.13
4.22

'

Feb. 1
8
15
22
Mar. 1
8
15
22
29
Apr. 5
12
19

1
2

25.0
64.0

4
1
2
• 2
3
2
2
1
3

100.0
12.0
55.0
24.4
87.0
222.0
45.0
6.0
95.0

,

4.21
4.27*
4.19
4.14
4.25*
4.16
4.16
4.36*
4.23
_4.18
4.28

,toi Averages of offering yields on al* new issues ox pufcuooy onerea corporate oonaa raxea j»B, JUI ana
JL by Moody's Investors Sendee (except serial and convertible Issues, offerings of natural gas pipeline
and foreign companies, a ad bonds guaranteed by the Federal Government) weighted by else of offering.
Before averaging, new offerings are adjusted to a composite iaa basis by deducting from the aotual
reoffering yield tha excess of the weekly average yield for seasoned tends of the appropriate industryquality group over the 001 site average for seasoned Aa»-rat*d bonds (Moody's), Averages considered

special characteristics of fee offerings included are denoted by an asterisk^
unrepresentative
because



•XI
H, 1 4

Exhibit H

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

1963
January
February
March

2/584
&/602
e/850

April
May
June

e/850

July
August
September
October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

e/2,036

1st half
Thrae quarters
Year

New capital
Corporate 1/
State and local 2/
1 1961
1 1962
1963
1 1962
1
592
859807

1961

580
667
562

2/694
e/700
e/950

876
1 ,133
628

711
689
764

1 ,113
760
1 ,132

2 ,118
1 ,259
1 ,318

e/850

873
912
786

722
640
1,034

582
749
579

1 ,028
762
647

612
544
427

486
604
734

835
703
1 ,103

1 ,090
948
1 ,000

650
578
550

679
789
610

2 ,258
3
1 ,910
2 ,641

1 ,809
4,695
2 ,437
3 ,038

2,,637
2,,571
1.,582
1.,779

2,165
2,396
1,824
2,078

5,,264
7.,173
9.,814

6j,504
8:,941
11,,979

5 j,208
6,,790
8,568

4,561
6,385
8,463

e/2,350

Excluding finance companies 3J
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

e/1,936

Year

1/
2/
3/

2, 199
2,919
1,775
2,410

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

9,303

11,253

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.




Exhibit I

If. "14

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

Quarter
or
month

Total

Gross proceeds for new
capital and refunding 1/
Common Memo:
Bon is
foreign
Publicly Privately pfd.
issues
offered offered
included
stock

Net proceeds for
new capiltal 1/ 2/
Mfg.

Public Communiutility cations

Other
issuers

1960 - II
III
IV

2,537
2,520
2,832

1,074
1,336
1,462

770
754
955

692
429
416

27
38
17

511
562
625

808
652
696

149
317
381

913
896
997

1961 - I
II
III
IV

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

662
2,303
772
967

880
1,275
1,139
1,424

449
1,774
654
845

76
155
69
62

515
1,466
935
792

381
1,081
595
836

81
1,095
104
147

832
1,052
803
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 e/

2,254

1,099

878

278

n.a.

739

333

283

682

71
35
49
52
7
10
25
12
25

574
447
446
428
255
252
271
215
306

254
439
389
269
215
111
306
362
168

994
85
16
16
13
75
25
80
42

297
289
467
315
279 .
209
487
291
485

3
12
54
10
147
100
13
43
46
34
99

205
131
318
384
270
342
217
218
166
153
271
345

89
148
193
377
196
410
118
110
148
141
175
252

73
362
21
88
64
79
88
120
67
260
4
57

225
218
275
264
229
301
.159
301
199
282
253
451

18
.43.
n.a.

133
216
390

118
115
100

125
68
90

208
204
270

1961 - Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1962 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1963 - Jan.2/
Feb .£/
Mar.e/

2,231
1,342
1,779
1,075
813
678
1,155
987
1,094

713
666
924
424
225
123
336
414
217

348
355
572
392
411
336
509
348
567

647
884
847
1,217
801
1,232
630
922
632
976
. 784
1,197

273
497
386
654
247
488
200
477
176
539
286
264

232
232
253
227
420
575
366
363
295
314
446
808

350
259
490

238
290
350

681
643
930

1,170
320
283
259
177
218
310
225
310
143 .
155
209
336
134
169
67
82
161
123
52
125
94
54
90

£/ Preliminary.
e/ Estimated by Federal Reserve.
1/ Gross proceeds exceed
net proceeds by the cost 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 Exchange Commission.




Exhibit J
Other Security Offerings
(In millions of dollars)
Gross long-term 1/
Federal agency 3/
Foreign government 2/
1962
I
1963
1962
1961
1963
1
January
February
March
April
May
<

!
!

2/232
2/128

July
August
September
October
November
December
Year
Jan.-Mar.

e/ 41C

142
10
35
10
86
50
25
8
31
151
88
101

6
29
20
2
66
29
5
2

£/ —
ja/148
e/ —

1961
__

246
156

252
100
149
278

461

1

250
193

150
175

43
34

225

-~

--

--

737

236

1,188

1,448

187

55

402

252

e/148

Net ishort-term 4/
State and local government 5/
Federal agency- 3/
January
February
March
April
May

7%
2./ 269

July
Augus t
September
October
November
December
Year
Jan. -Mar.

E/o

JJ/
1/

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

160
195
-8
-103
-42
-155
109
518
-86
-6
54
-116

378

520

298

347

-106
-189
2/-185

j>/-48G

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

-144
-162
-174
-79
-87
207
22
193
108
98
56
-114

1,004

-76

317

-480

Preliminary.
e/ Estimated by Federal Reserve.
n.a.--Not available.
These 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/ Included 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 somehttp://fraser.stlouisfed.org/
what longer maturity than one year. Source: Bond Buyer and Federal Reserve.

Federal Reserve Bank of St. Louis

rs

S.

Exhibit K
Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(In millions of dollars)

Month

1962 - March
April
May
July
August
September
October
November
December
1963 - January
February
March

Total

Corporate
Bonds
Convertible
(other than,
bonds
convertibles)

366
648
200
472
165
286
191
434
178
198
234
186
394

330
430
170
387
135
226
100
398
178
178
215
125
372

State
and
local
government

Stocks

21
167
30
85
30

15
51
--

259
423
373
266
321
272
153
320
217
193
344
367
570

60
91
36
20
19
26
22

35

Other
2/

30
55
88
30
20
194
25

'•

75
48
63

Large Individual Issues Offered April 1 through 19

Issuer

Type 3/

Coupon
Amount
rate or
(millions
Offering
Maturity
net inter- yield
of
dollars)
est cost

Rating

CORPORATE
Commercial Credit Corp.
Hartford Elec. Light Cc«
'Consolidated Edison Co.
Pacific Northwest Bell Tel.
Co.
Northern Indiana P.S. Co.

Notes
1st mtg. bds.
Com.stk.

50.0
15.0
107.4

1981
1993

Deb.
1st mtg. bds.

50.0
30.0

2003
1993

1

4-3/8
4-1/4

4.38
4.30

Aa

4-1/2
4-1/2

4.37
4.37

Aa
Aa

--

STATE AND LOCAL GOVERNMENT
Cleveland, Ohio
Philadelphia, Pa.
Brevard Co. Spec. Tax S.D.
#1, Fla.
City of Detroit, Mich,
State of California
Duval Co. Spec. Tax S.D., Fla.
Omaha City Sch. Dist., Neb.
Albiiqcerque, N. M.
Detroit, Mich.

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




12.0
37.2

1968-84
1964-88

2.93
2.95

2.15-3.00 Aa
.1.60-3.204/A

12.0
10.5
100.0
10.0
25.0
10.4
11.5

1966-81
1967-93
1965-89
1965-81
1965-84
1964-83
1964-88

3.15
3.16
2.95
2.82
2.79
2.98
3.16

2.15-3.25 Baa
2.05-3.252/Aa
1.65-3.15i/Aa
1.80-3.00 Aa
1.75-3.00
1.60-3.20 A '
1.70-3.40lz A

K-2

^

H.14

Large Individual Issues Offered April 1 through 19 (Cont'd)

Issuer

Type 3/

Coupon
Amount
(millions Maturity
Offering
of
net inter- yield
dollars)

Rating

STATE AND LOCAL GOVERNMENT
(Cont'd)
State of-Louisiana
Alabama State Highway Auth.

G.O.
Rev.-Ut.

15.0
25.0

S.F.deb.
Bonds
Bonds

15.0
30.0
64.0i/

1964-88
1970-83

3.17
3.30

1978
1983
1968

5-3/8
5
4

1.70-3.35
2.50-3.30

A
A

OTHER
Copenhagen Telephone Co.
Govt, of Australia
Federal Land Banks

5.57
5.20
3.95

*--Rights Offering.
1/ 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 issues by Federal agencies.
3J In the case of State and local government securities, G.O. denotes general
obligations; Rev.-Ut., revenue obligations secured only by income from
public utilities; Rev.-Q.Ut., 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/ 0.1 per cent bonds due 1987-88 not publicly reoffered.
5/ 1 per cent bonds due 1993 reoffered to yield 3.90 per cent.
6/ 0.1 per cent bonds due 1989 not publicly reoffered.
7/ 1/4 per cent bonds due 1987-88 reoffered to yield 4.25 per cent.
8/ An additional $122 million in bonds was sold to refund outstanding securities.




A

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

Date of
computation

628
185
587
120
302
170
363
203
170
269
167
142
376

1962 - Mar. 30
Apr. 30
May 31
. June 29
July 31
Aug. 31
Sept. 28
Oct. 31
Nov. 30
Dec. 28
• 1963 - Jan. 31
Feb. 28
Mar. 29

Subsequent to
date shown
Corporate State and
local govt.

__

453
333
184
202
273
61
187
96
194
177
376
458
381

95
55

175

75
25

45

693
598
692
458
477
312
546
328
360
314
412
572
421

Other 2/

539
452
337
377
427
215
387
243
328
311
843
755
763

95
55
25
175

75
25
33
45

Forthcoming Large Offerings, as of April 19

Type

Amount
(millions
of dollars)

Approximate date
of offering

CORPORATE
Arkansas Louisiana Gas Co.
Tennessee Gas Trans. Co.
Consolidated Natural Gas Co.
Tampa Electric Co.
Portland General Elec. Co.
Victor Comptometer Corp.
•General Tel. Co. of Cal.
•Alabama Pwr. Co.
Virginia Elec. & Pwr. Co.
•Southern Cal. Edison Co.
Commerce Oil Refining Corp.

1st mtg. bds. .
Pfd.stk.
S.F.deb.
1st mtg. bds.
Com.stk.
Deb.
Deb
-1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Deb., bds. & com.

30.0
27.6
45.0

April 23
April 23
April 24
April 25
April 25
April 29
May 3
May 10
May 15
May 24
Indefinite

14.0

April 22

45.0

20.0
35.0
23.2

20.0
15.0
25.0

16.0

STATE AND LOCAL GOVERNMENT
Washington Sub. San Dist.
Los Angeles Co. Flood Control Dist.
Cal.
State of Oregon
New York City, New York
Orlando Utilities Comm., Fla.
Maryland State Roads Comm.
Greenville Co. Sch. Dist., S. C.
Placer County Water Agency9 Cal.




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

15.0
10.5
108.7
14.0
17.5
12.0
115.0

April
April
April
April
May 1
May 1
May 1

23
23
24
30

ti

L-2

H.14

Forthcoming Large Offerings, as of April 19 (Cont'd)

Type

Amount
Approximate date
(millions
of offering
I of dollars)

STATE AND LOCAL GOVERNMENT (CONT'D)
Washington Public Power Supply System
Cincinnati, Ohio
*State of Hawaii
Cleveland, Ohio
*Penna State Pub. Sch. Bldg. Auth.
Pittsburgh, Pa.
Jefferson County, Colorado
Dade County, Florida
Jacksonville Expressway Auth., Fla.
Houston, Texas

Rev.-Ut.
G.O.
!G.O.
G.O.
Rev.-Rent.
G.O. •
G._0.
G.O.
Rev.-Ut.
G.O.

122.0
15.3
13.2
25.0
35.0
12.9
46.0
40.0
13.3

May 8
May 8
May 16
May 21
May 23
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

25.0
25.0

April 24
May 1

10.0

OTHER
Kingdom of Norway
*Govfc. of Japan

Bonds
S.F.bonds

*--Included in table for first time.
1/ 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 of Federal agencies.
Note.--Deletions for reasons other than sale of issue: The $16.1 million issue of
Fort Lauderdale, Florida scheduled for offering on April 30 is to refund outstanding
securities.




H. 14

Exhibit M

Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:
Sale
Date

Amount
(millions
of dollars)

Issuer and Description of Issue

A.
2/26

30.0

3/13

12.5

3/13
4/2
4/9

21.8
5.2
15.0

4/10

30.0

Sold February 1 through April 19

Kingdom of Denmark--5-1/4% bonds, due 1978, reoffered
at 5.37%
Republic of Finland--6% bonds, due 1973, reoffered at
6.17%
Kansai Electric Power Co., Inc.--common stock
Sony Corp.—common stock
Copenhagen Tel. Co.--5-3/8% bonds, due 1978, reoffered
at 5.57%
Govt, of Australia--5% bonds, due 1983, reoffered
at 5.20%

B.

4/24
4/24
*5/1

Public Offerings

Prospective Offerings

10.0
25.0

Mitsui & Co., Ltd.--convertible
Kingdom of Norway--bonds

25.0

Govt,




of J a p a n — s i n k i n g

sinking

fund b o n d s

fund b o n d s

M-2
Part II.:

reported
2/4

2/4

3.0

2/12

9.0

2/18

25.0

- 2/19

5.0

2/25

2.5

3/4

3.0

3/7

12.0

3/13

1.0

3/13

30.0

3/13

25.0

3/27

50.0

3/28^

Private Placements --Reported February 1 through April l9

Amount
(millions
of dollars)
300.0

3.0

4/3

10.0

4/4

4.7

H-14

Issuer and Description of Issue

Quebec Hydro-Electric Commission--5% bonds, due
1988, placed to yield 5 - 07%--$100 million to be
taken down in February with the remainder to be
taken down by the end cf 1964
Government of Jamaica--7% sinking fund debentures-no information available on cakedown
-Federation Chemicals, Ltd,--subordinated notes,
due 1977'-$5,9 million to be taken down in February
with the remainder to be taken down by the end
of January 1964
Province of Saskatchewan, Canada--5% bonds, due 1983-no information available on takedown
Tubos de Acsro de Mexico, S. A.--7-1/2% convertible
debentures, due 1975— no information available on
takedown
Quebec Natural Gas Corp,--5-1/2% first mortgage bonds,
due 1980--no information available on takedown
Protestant School Board of Greater Montreal--5-1/4%
bonds, due 1982--no information available on takedown
Government of Norway--bonds, due 1983--no information
available on takedown
City of Aalborg, Denmark--notes due 1978- -no information
available on takedown
Bayer Foreign Investments, Ltd.--5-1/2%, promissory notes,
maturing 1983--r.o information available on takelown
Manitoba Hydro-Electric Board--4-7/8 sinking fund bonds,
maturing 1988--no information available on takedown
Bell Telephone Cc, of Canada - -M--7/8% first mortgage
bonds--no information available on takedown
Pacific Eastern Railway Go --4-7/8% sinking fund
debenture; due 1988--no information available on
takedown
Industrial Acceptance Corp. , Ltd,--5-1/8% secured
notes, maturing 1988r-no information available on
takedown
City of Vancouver--4-3/8 & 5% serial debentures,
maturing 1964-83--no information available on takedown

Note; For retrospective data on aggregate foreign corporate and government
security offerings in the United States see Exhibits 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 date a placement
Included in table for first time.
Digitizedisforreported.
FRASER



f
I
Exhioit N
Sources and Uses of Funds by
Life Insurance Companies

Cash
Value of assets
at end of period:
1958 - Dec.
1959 - Dec.
1960 - Dec.
1961 - Dec.
1962 - Dec.
f 1963 - Fet.*
.Changes:
1960 - Oct.
Nov.
Dec.
;

>

,

,
;

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

j>/1962 - Jan. r/
Feb. r/
Mar.r/
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
jVi963 - Jan.
Feb.

Uses of funds 1/
u. s. Business securities 2/ State and
Govt, Long-term Commercial
local govt,
secur- bonds and and finance
company paper
ities
stocks
ities

1,363
1,307
1,329
1,392
1,411
1,266

7,182
6,858
6,428
6,135
6,189
6,243

93
-35
89

-62
18
-103

100
257
300

205
-59
-100

33
26
18

-34
-10
-54
7
74
-43
48
-23
15
30
40
13

125
-2
-7
-43
20
-112
70

152
156
174
112
234
280
130
276
241
260
211
505

118
-27
-26
66
-66
-36
110
-72
-30
23
16
-178

49
27
28
34
1
-1
21
30
27
13
44
23

-99

1

44,612
46,783
118
48,631
295
51,362
193
53,810
341
53,680
571

-51
14
-46
-261
223
25

Other

37,092 . 14,640
39,237
16,126
41,815
17,472
44,250
19,582
46,980
20,719
47,348
21,312

-"

Total
sources

107,580
113,650
119,576
126,816
133,169
134,500

217
197
282

-6
92
167

580
496
653

186
141
223
262
173
187
109
167
164
204
237
382

257
199
192
158
114
134
156
150
155
121
149
325

853
484
530
596
550
409
644
528
521
665
651
809

Ofv

225

29

149

143

;• v

L36

A3

3

114

100

' u-'>2

144

124

-107

171
-43
-117
72
30
20
64
-40
-318

-14
-14
8
4
28
14
-24
-18
-2

114
195
196
198
236
182
293
329
600

31
5
-10
204
137
85
160
293
94

461
362
213
858
594
473
666
770
664

184
46

28
-8

223
145

360
233

842
489

-92

-126

12
3
-22
69
-29
33
6
26
111

94
-26
-95
176
-21
-48
31
37
-216

U9
53
242
253
135
213
187
136
143
395

-128
-17

123
-69

159

il/

2,691
3,221
3,606
3,902
4,060
4; 080

Mortgages

52

41

Jses of funds represent net changes in assets and therefore reflect net, rather than
gross, uses.
2/ Includes securities of domestic corporations only.
Source.—Institute of Life Insurance.




I t )

Exhibit

14

0

Sources and Uses of Funds by
Savings and Loan Associations
Uses of :unds 1/
Total
U. S.
sources
Mort- Other
Govt.
secur- gages^/ assets
ities
(In millions of dollars)
Value of assets
at end of period;
1958 - Dec
1959 - Dec
1960 - Dec.
1961 - Dec.
1962 - Dec.
• Feb

/

Dec.
1961 ~ Jan.
^
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.

Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1963 - Jan. _r/
Feb.

2 ,585
2 ,183
2 ,680
3 ,315
3.,946
3
102
83
415

Net
savings
capital

Borrowing 3/

3,,819 45, 627
4,,477 53, 141
4,595 60,,070
5.,211 68,,834
78,,973
5,,5'
.90 : SO, 338
602
110
515
-54
566
-1

3 ,108
3 ,729
4 ,131
4 ,775
5 ,348
.233

55,139
63,530
71,476
82,135
93,816
T. ,1:9

47,976
54,583
62,142
70,885
".422
82.291

1,444
2,387
2,197
2,856
3,633
2,701

5,719
6,560
7,137
8,394
8,761
10.20

-1
233
™50

813
77?
930

666
552
1,379

-14
52
271

161
173
-720

-91
60
6
25
149
129
-216
-81
51
82
84
437

92
188
106
-17
-1
28
-9
65
-2
43
79
44

367
437
695
696
816
975
741
915
809
811
757
745

-103
69
123
115
223
-62
-144
84
82
107
203
-53

265
754
930
819
1,187
1.070
3%2
983
940 .
1,043
1,123
1,173

594
556
708
419
802
1,356
124
507
679
724
779
1,495

-465
-80
-26
90
41
270
132
128
75
79
415

136
278
248
310
344
-556
248
344
133
244
265
-737

-357
96
133
-78
7
265
-394
-38
87
99
99
712

186
95
36
-46
-14
-66
46
-11
42
30
47
-7

529
601
802
842
977
1 ,046
880
1 ,016
844
962
804
836

-116
41
90
94
413
-60
-183
104
78
40
172
-100

242
833
1,061
812
1,383
1/185
349
1.071
1,051
1,131
1,122
1,4M

491
578
934
386
782
1,431
14
648
870
835
874
1,694

-382
-96
-82
126
98
365
87
93
95
36
-23
460

133
351
209
300
503
-611
248
330
86
260
271
-713

-334
106

190
166

690

-11-

-73 7
-195

1 r0
277

' rnmmmm


http://fraser.stlouisfed.org/
Source
--FSLIC
Federalborrowing.
Reserve Bank
of St.
Louis

H.14

Exh:bitP
Sources and Uses of Funds
by Mutual Savings Banks

u. s.
Govt,
Cash
securities
Value of assets
at end of period;
1958 - Dec.
1959 - Dec.
1960 - Dec
1961 - Dec.
1962 - Dec.
1963 - Feb.
Changes:
I960 - Oct.
Nov.
Dec.
1961 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov;
Dec.
1962 - Jan.
Feb
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1963 - Jan.
Feb.

Jses of funds 1/
Busi- State &
Total
local
ness
sources
MortOther
govt.
gages
ities
2/
ities
(In millions of dollars)

Sources of funds
Net
change in
deposits

Other

921
829
872
828
957
871

7,266
6,864
6,239
6,136
6,089
6,159

4,973
4,849
5,080
5,053
5,188
5,171

725
722
672
677
528
504

23,039
24,768
26,709
28,915
32,070
32,826

855
910
1,001
1,224
1,284
1,291

37,779
38,942
40,573
42,833
46,118
46,822

34,041
34,983
36,353
38,487
41,582
42,025

3,738
3,959
4,220
4,346
4,536
4,797

-8
9
84

-156
-68
-42

-4
34
57

-6
-5I
-5i

168
171
157

-25
13
-14

-31
154
237

56
39
385

-87
115
-148

-49
21
9
-51
30
30
-26
-14
46
-27
7
-20

106
100
117
-216
-13
>52
18
6
-15
-120
-13
-21

3
-15
46
-11
27
34
2
-23
-19
-56
-20
5

-5

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

17
26
29
-51
30
-23
-28
55
49
-44
46
117

233
272
404
-154
262
228
. 164
!
232
220
-74
181
292

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

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

10
47
12
"79
12
54
-46
-29
44
15
-35
124
-137
51

94
77
209
-216
16
=38
-11
26
3
-162
-19
-26
39
31

V

-1
-2
1
23
-2
.1
1
~5
-5
-1

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

-4
-13

-15
~9

436
320

13
-6

330
374

V

170
136
351
-54
114 ;
3661/
23
99
310
-15
48
471

63
136
53
-100
148
-1381/
141
133
-90
-59
133
-179

83
165
472
-51
184
548
172
215
429
186
147
545

167
142
47
-80
150
-242
113
152
-114
-72
127
-200

229
214

101
160

Uses of funds represent net changes in assets and therefore reflect net, rather
than gross, uses.
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,
3/ Adjusted so as not to reflect $115 million other liability reclassified as

deposits in conformity with FDIC redefinition. Source--NAMSB and FDIC.
2/