Full text of H.16 Capital Market Developments : April 24, 1961

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Not f o r Publication

DECONTROLLED AFTER SIX MONTHS

H.lU
'it

April 2k, 1961.
•

" '

ApR

.

, CAPITAL MARKET DEVELOPMENTS
Z 3 S - T H E UNITED STATES

(Including Corporate Security Offerings i n i960)

Public o f f e r i n g s of l a r g e new corporate s e c u r i t y i s s u e s l a s t
week t o t a l e d $335 m i l l i o n — i n c l u d i n g the $300 debenture i s s u e by United
S t a t e s S t e e l Corporation. Also o f f e r e d during the week was a $50 m i l l i o n
State and l o c a l government bond i s s u e .
S t a t e and l o c a l government o f f e r i n g s w i l l be somewhat heavier
t h i s week with three large i s s u e s scheduled t o r a i s e $70.6 m i l l i o n . The
corporate calendar i s l i g h t , including only $35 m i l l i o n in large new
financing.
Long-term bond y i e l d s - Changes i n the y i e l d a v a i l a b l e from
outstanding i s s u e s continued to be mixed l a s t week. Yields on State
and l o c a l issues—both Baa and Aaa rated—declined measurably; in the
case of lower grade i s s u e s the y i e l d i s at a new low f o r the year.
Yields on Aaa-rated corporate i s s u e s increased two b a s i s p o i n t s while
those on lower rated i s s u e s remained unchanged. Also unchanged were
long-term U„ S. Government bonds.
A new
week a t a y i e l d
points from the
i s s u e s provided

30-year A-rated e l e c t r i c u t i l i t y bond was o f f e r e d l a s t
of ii,80 per cent. This was an increase of 15 b a s i s
return on a comparable i s s u e one week e a r l i e r . Both
5-year p r o te c ti o n against refunding.

Short- and intermediate-teim i n t e r e s t r a t e s - Yields on most
c a t e g o r i e s of s h o r t - and intermediate-dated s e c u r i t i e s declined l a s t
week. A l l U. S. Government y i e l d s were down, but the sharpest d e c l i n e —
11 b a s i s points—came i n the six-month b i l l s which are now s e l l i n g a t
the lowest y i e l d t h i s year. Also down sharply t o a new low f o r the year
i s the return on d i r e c t l y placed f i n a n c e company paper. The average
e f f e c t i v e rate f o r Federal funds declined by 115 b a s i s points t o 1 . 1 0
per cent. Other short-term r a t e s remain unchanged.
Stock market c r e d i t - Customer c r e d i t i n the stock market
increased sharply in March t o a new peak l e v e l . Almojt the e n t i r e
increase of more than $250 m i l l i o n took the form of higher n e t debit
balances. At the same time customers' net f r e e c r e d i t balances continued t o increase s u b s t a n t i a l l y . Money borrowed by NYSE member firms
increased l i t t l e and remains r e l a t i v e l y low.




^

—2—

End of month
Mar,

Change

( M i l l i o n s of d o l l a r s )
Customer c r e d i t
Excluding U. S. Government s e c u r i t i e s - t o t a l
. Net d e b i t balances
Bank l o a n s to "others"
Net d e b i t b a l a n c e s secured by U, S, Govt, s e c u r i t i e s
Bank l o a n s to "others" f o r purchasing or c a r r y i n g U, S,
Government s e c u r i t i e s
Broker and d e a l e r c r e d i t
Money borrowed e x c e p t on U„ S. Government s e c u r i t i e s
On customer c o l l a t e r a l
Money borrowed on U, S, Government s e c u r i t i e s
Customers 1 n e t f r e e c r e d i t balances
c/

1,778
3,60k
1A7L
55

U,52U
3,328
1,166
68

+251i
+2k6
+8
-13

110

127

-17

1,927
1,62k
70
1,507

1,905
c/l,6l5
9k
1,392

+22

+

Corrected

Stock p r i c e s ~ Stock p r i c e s , a s measured by Standard and Poor's
index of 500 s t o c k s , d e c l i n e d 1 p e r cent l a s t week, c l o s i n g at 65,77 on
Friday, Trading a c t i v i t y moderated s l i g h t l y but remained high a t an
average of h*-9 m i l l i o n shares per day.
Corporate S e c u r i t y O f f e r i n g s i n i 9 6 0
D e t a i l e d data now a v a i l a b l e f o r the f o u r t h quarter of i 9 6 0 makes
p o s s i b l e 2 review of corporate s e c u r i t y f i n a n c i n g l a s t y e a r . Corporate
s e c u r i t y i s s u e s t o t a l e d §2.8 b i l l i o n i n the f o u r t h quarter of I960, $ 0 , 1
b i l l i o n more than i n the corresponding period of 1959. T h i s brought t h e
t o t a l f o r the year to $9 = 9 b i l l i o n , it per cent more than i n 19593 but
l e s s than in the three preceding y e a r s . New f i n a n c i n g t o refund o u t standing s e c u r i t i e s amounted t o § 0 , 3 b i l l i o n , t w i c e the volume i n 1959
when i n t e r e s t r a t e s were higher, but only about h a l f as much a s in 1958,
Net proceeds f o r new c a p i t a l - Corporations s o l d ^9«7 b i l l i o n
of s e c u r i t i e s t o r a i s e new c a p i t a l l a s t y e a r . Although the aggregate
amount of new f i n a n c i n g i n 1560 was only about 3 per c e n t more than i n
1959= i t s d i s t r i b u t i o n among i n d u s t r i e s changed s i g n i f i c a n t l y .
As i n the two preceding y e a r s , e l e c t r i c , gas and water u t i l i t i e s
were the most important group of s e c u r i t y i s s u e r s , s e l l i n g bonds and stock
t o t a l i n g § 2 , 7 b i l l i o n . However, f i n a n c i n g by such u t i l i t i e s was l b p e r
c e n t l e s s than in 1959 and accounted f o r only 28 p e r cent of a l l new
corporate f i n a n c e , in c o n t r a s t t o o n e - t h i r d of the 1959 t o t a l . The d e c l i n e
i n f i n a n c i n g by u t i l i t i e s l a s t y e a r was even g r e a t e r i n comparison w i t h




?

»2ii
+115

Table 1

-3-

Corporate S e c u r i t y O f f e r i n g s f o r New Capit al
by Type o f Business of I s s u e r
1956-60
(Net proceeds in m i l l i o n s of d o l l a r s )
I960

1959

1958

1957

1956

9,9#

9,527

11,372

-12,661

10,749

282
9,6#

135
9,392

549
10,823

214
12,44-7

364
10,384

2,0#
258
232
219
135
119
116
108
98
88
76
67
536

1,941
298
198
251
125
67
128
69
52
91
103
44
515

3,265
408
220
139
233
135
218
31
12
207
116
34
1,512

4,104
313
244
129
689
106
48
60
22
111
51
49
2,282

3,336
198
234
419
362
68
94
130
56
298
113
157
1,207

E l e c t r i c , gas and water u t i l i t i e s

2,738

3,189

3,605

3,821

2,474

Communication

1,023

707

1,294

1,41a

1,384

174

172

206

326

3#

Total corporate o f f e r i n g s
Refunding
New c a p i t a l

•

Manufacturing
Primary i r o n and s t e e l
Chemicals
E l e c t r i c a l machinery
N o n e l e c t r i c a l machinery
Fabricated metal products
Other t r a n s p o r t a t i o n equipment
T e x t i l e s and apparel
Rubber products
Paper
Foods
Lumber, wood products
Other 1 /

Railro-d
Other t r a n s p o r t a t i o n

485

769

572

475

329

Commercial and o t h e r

$66

670

630

309

284

Mining

231

142

237

270

398

2,38k
1,W7
977

1,801
758
1,043

1,014
394
620

1,701
929
772

1,815
1,125
690

F i n a n c i a l and r e a l e s t a t e
S a l e s and consumer f i n a n c e
Other

1 / I n c l u d e s small volume of i s s u e s of f o r e i g n manufacturers not f u r t h e r c l a s s i f i e d .
N o t e . — D e t a i l s may not add t o t o t a l s due t o rounding.
S o u r c e . — S e c u r i t i e s and Exchange Commission and Federal Reserve.




-It1957 and 1958 5 when c a p i t a l e x p e n d i t u r e s were a t a r e c o r d l e v e l . A l t h o u g h
p l a n t and equipment o u t l a y s were about t h e same i n i 9 6 0 a s i n 1959s a
l a r g e r p r o p o r t i o n was f i n a n c e d from d e p r e c i a t i o n a l l o w a n c e s .
F i n a n c e and r e a l e s t a t e companies were the n e x t most important
group of b o r r o w e r s , s e l l i n g s e c u r i t i e s t o t a l i n g a r e c o r d
b i l l i o n in
i 9 6 0 and a c c o u n t i n g f o r o n e - f o u r t h of t o t a l new c o r p o r a t e f i n a n c i n g .
W i t h i n t h i s group, s a l e s and consumer f i n a n c e companies a c c o u n t e d f o r
SLoU b i l l i o n o f new s e c u r i t i e s , n e a r l y t w i c e a s much a s i n 1959* Although
customer r e c e i v a b l e s o f t h e s e companies i n c r e a s e d somewhat l e s s i n i 9 6 0
than i n 195>9S t h e y s h i f t e d t o c a p i t a l market f i n a n c i n g i n i 9 6 0 a n d s on
b a l a n c e , t h e i r bank d e b t changed l i t t l e o v e r t h e y e a r .
New f i n a n c i n g by m a n u f a c t u r e r s i n i 9 6 0 t o t a l e d $ 2 . 1 b i l l i o n ,
about t h e same a s i n 1959* but l e s s than t w o - t h i r d s a s much a s i n each
of the t h r e e preceding y e a r s .
Much of t h e d e c l i n e from t h e 1957 and
1958 l e v e l s of f i n a n c i n g i s a c c o u n t e d f o r by o i l companies and primary
n o n f e r r o u s metal m a n u f a c t u r e r s ( i n c l u d e d i n "other") which had i s s u e d a
l a r g e volume o f s e c u r i t i e s i n t h o s e y e a r s .
P l a n t and equipment e x p e n d i t r u e s of m a n u f a c t u r i n g c o r p o r a t i o n s were l a r g e r i n i 9 6 0 than i n 1959
and 1 9 5 8 (though l e s s than i n 1957 and 1 9 5 6 ) . A l a r g e r p o r t i o n of t h e s e
e x p e n d i t u r e s , however, were f i n a n c e d from i n t e r n a l s o u r c e s .
S e c u r i t y f i n a n c i n g by communications and mining companies was
l a r g e r i n i 9 6 0 than i n 1 9 5 9 / w h i l e f i n a n c i n g by n o n - r a i l t r a n s p o r t a t i o n
and commercial and m i s c e l l a n e o u s companies was i n s m a l l e r volume.
Type o f i s s u e - The i n c r e a s e i n t h e volume of c o r p o r a t e f i n a n c i n g from 1959 t o I 9 6 0 was e n t i r e l y i n p u b l i c l y - o f f e r e d i s s u e s , which r o s e
one-tenth to $ 6 . 7 b i l l i o n .
P r i v a t e placement f i n a n c i n g , p r i n c i p a l l y o f
debt i s s u e s , was 7 p e r c e n t s m a l l e r t h a n i n 1959=
Although t o t a l ( g r o s s ! c o r p o r a t e s e c u r i t y o f f e r i n g s r o s e o n l y
h p e r c e n t from 1959 t o i 9 6 0 , d e b t i s s u e s i n c r e a s e d more t h a n 12 p e r
c e n t , a l l i n t h e form o f p u b l i c f i n a n c i n g . Both p r e f e r r e d and common
s t o c k o f f e r i n g s were i n s m a l l e r volume than i n 1959= The d e c l i n e i n
p r e f e r r e d s t o c k s a l e s r e f l e c t e d p r i m a r i l y t h e l o w e r volume of f i n a n c i n g
by u t i l i t i e s , which a r e the p r i n c i p a l i s s u e r s of s u c h s t o c k .
(See
Table 2 on f o l l o w i n g p a g e . )
Mortgage r e c o r d i n g s - Nonfarm mortgage r e c o r d i n g s d e c l i n e d
f u r t h e r i n February and were 7 p e r c e n t l o w e r than a y e a r e a r l i e r .
C o n v e n t i o n a l l e n d i n g , a s w e l l a s F e d e r a l l y u n d e r w r i t t e n , was r e d u c e d .
More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g r e c e n t c a p i t a l market
developments i s presented in the a t t a c h e d e x h i b i t s .




-5Table 2
Total Corporate S e c u r i t y O f f e r i n g s by Type of I s s u e
1956-60
(Gross proceeds i n m i l l i o n s of d o l l a r s )
Type of i s s u e

i

IfTotal corporate o f f e r i n g s
tType of o f f e r i n g
|
Public
Private
Type of s e c u r i t y
Bonds and n o t e s
Public
Private
(Memo: Convertible)
Preferred stock
Common s t o c k

I960

1959

1958

1957

1956

10,159

9,718

11,558

12,88b

10,939

6,656
3,503

5,993
3,755

IS

gi

8,959
3,925

7,053
3,886

8,122
it,817

7,190
3,557
3,632
(628)

9,653
6,332
3,320
(1,11*7)

9,957
6,118
3,839
(1,064)

8,002
k,225
3,777
(925)

393

531

. 571

Ijll

636

1.6U,

2,027

1,33k

2,516

2,301

Capital Markets S e c t i o n ,
D i v i s i o n of Research and S t a t i s t i c s ,
Board of Governors of t h e Federal Reserve System.




EXHIBIT A
LONG-TERM

BOND

YIELDS

Weekly -

Per cent per a n n u m

HIGH-GRADE

per a n n u m
LOWER-GRADE




-7-

Exhibit B - Tables f o r Exhibit A
Long-teim Bond Y i e l d s
High-grade
Date

Corporate
Aaa 1 /

1951* - Low
1957 - High
1958 - Low
1959-60 - High
i 9 6 0 - Low
1961 - High
Low

2 . 8 5 (4/23)
h . l k (9/27)
3.55 (5/2)

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

Mar.
Mar.
Apr.
Apr.
'Apr.

2k
30
7
ll*
21 jd/

'

2.1*5 (8/6)
3.76 (lo/ia)

State and
local
government
Aaa 3 /

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

1 . 9 0 (9/2)

I4.6I (1/29/60)

3 . 0 7 (4/25)
U. 1*2 (1/8/60)

il.23 (9/9)
h.3k ( 1 / 6 )
1*.21 ( 3 / 1 7 )

3.75 (8/s)
3.92 ( 1 / 2 0 )
3.75 ( 3 / 1 0 )

2.99 (9/1)
3.30 U / 1 3 )
3.12 ( 2 / 2 3 )

.30
.60
.22
.59
.19
.50
.1*0

1*.22
It. 22
L23
k.2h
h.26/

3.80
3.81
3.82
3.81
3.81

3.29
3.30
3.30
3.30
3.21*

.1*2
.1*1
.la
.1*3
.1*5

-

3.1*5

(8/29)

3.65

(9/24/59)

2.61* (s/i)

.30
.50
.31*
.92
.53
.76
.51
.51
.51
.52
.51
.57

Lower-grade

Date

Corporate
Baa 1 /

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

Spread between
Aaa and Baa
S t a t e and
Corporate
l o c a l govt.

(per cent)
1951* - Low
1957 - High
1958 - Low
1959-60 - High
I960 - Low
1961 - High
Low
Mar.
Mar.
Apr.
Apr.
Apr.

2i*
30
7
lit

21 e /

3.1*1* (12/31)
5 . 1 0 (11/29)
1*.5L (7/11)
5 . 3 6 (2/12/60)
1*.98 (9/9)

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

5.12 ( 1 / 2 7 )
5.00 (li/21) .

1*.16 ( 3 / 2 3 )
3.98 (lt/20)

5.02
5.02
5.01
5.00
5.00/

l*.l6
li.ll
1*.06
1* 03
3.98

.81
.71*

.96
1.21
.93
1.08
*6
.93
.73

.80
.80
.78
.76
.71*

.87
.81
.76
.73
.71*

.52
1.27
•77
.81*

2.93 (8/5)
I t . 5 1 (8/29)
3.61* (5/1)
.

'

. ? !

E/ Preliminary.
1/ Weekly average of dally figures* Average term of boade Included la 23 *26 y e a r s .
2/ Weekly average of daily f i g u r e s . The s e r i e s lnoludas bonds due or c a l l a b l e I n 10 yearf o r more*
3/ Thursday f i g u r e s . Only general obligation bonds are Included* average term i s 20 y e a r s .
Note.—Higha 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 low t o narrowest,
„
t




EXHIBIT C
SHORT-

AND

INTERMEDIATE- TERM

INTEREST

RATES

i-i

Per cent per onnum

GOVERNMENT
Weekly

m i s
Morke.^T

fSf

11

r

R . D I S C O U N T RATE

f

/r

• 3 - MONTH 1
M o r k e l Yie

1

AND

V .

J - s YEA* ISSUE!

\t

W s /

BANKS

\/r*

OTHER

I

PRIVATE

DISCOUNT
I
HATES
/




BORROWERS

w

A

Exhibit D - Tables

for Exhibit

Short- and I n t e r m e d i a t e - t e r n I n t e r e s t
^

Date

Yields
6-month
bills 2/
(per cent)

1951* - Low
1957 - High
1 9 5 8 - Low
1 9 5 9 - 6 0 - High
1 9 6 0 - Low

3.50
1.75
li.00
3.00

3 . 6 1 4 (10/18)
. 5 8 ( 5/29)
k. 59
2.11

(1/8/60)
(10/28)
(3/3)
(1/27)

2.75
2 . a

3.36

2.U5
2.5k
2.58
2.52
2.I4I

3.45
3.13
3.45
3.10
3.38

3-month
b i l l s 2/

.61

1.50

1961

- High
Low

3.00
3.00

2.56
2.17

Mar.
Mar.
Apr.
Apr/Apr.

2h
30
7
lU
21 2 /

3.00
3.00
3.00
3.00
3.00

2.28

3-5 year
issues 2/

S p r e a d b e t w e e n 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

JuOU (10/18)
2 . 1 k ( 6/6)

.26

5.07
2,38

5 . 0 0 (12/24/59)
3.1*0 (12/30)

.16

(6/11)

2.38
2.36
2.31
/
2 . 2 5 ^

hates

Government

Discount
rate

v

-9-'

C

1.81

.79

3.59 (1/20)

.36
l.hO

.25'

.12

(3A0)

.92
1.17'
1.05
1.09
1.09
1.13

.17

.16
.22

.21

.16

Banks a n d . O t h e r r P r i v a t e Borrowers
Prime rate 1/

Stock Exchange
call loan 1/

F i n a n c e company
paper 3 /

Federal
funds h j

Spread between
3-mo. b i l l s and
l'inance co. paper

(per cent)
1 9 S h - Low
1957 - High
1 9 5 8 - Low
1959-60 - High,
1 9 6 0 - Low
- High
Low

Mar.
Mar.
Apr.
Apr.
Apr.

2h
30
7
Ik
21 2 /
1/

3.00
li.50
3.50
5.00
li.50

1.25
3.88
1'.13
5'. 1 3
2 . 88

(12/31)
(11/15)
(8/8)
(1/22/60)
(12/30)

L50
4.50

It. 5 0
li 5 0

2.88
2.53

(3/10)
(li/21)

0 0 0 p 0
XAlAlAlTvAA

1961

3.00
11,50
3.50
5.50
k.50

L50
ii.50
it. 5 o
li.5o
ii.5o

•

2.68
2 63
2.66
2.61i
2.53

n.a.
3.50
.13
ii.OO
.95

0
.63

(11/8)
(V2»)
(5/13/60)
(12/2)

-.35

1.02
.22

2.85 (2/17)
.W (1/27)

.56
.15

1.80
1.65
1.55
2.35
1.10

.lio
.25
.30

y

Meekly r a t e show* Isitttiri i n e f f e c t a t end of p e r i o d . Discount r a t e i s f o r Federal Reserve Barit of New York.
Stock Exchange c a l l leaft f a t * I s going r a t e on c a l l loa.no secured by customers' stock exchange c o l l a t e r a l a t
Nat» York City banks. Prime r a t e l o t h a t charged by l a r g e banks on s h o r t - t e r m l o a n s t o b u s i n e s s borrowers of
the hlgheut credit standing,
»
Market y i e l d ; weekly averages computed from d a i l y d o s i n g b i d p r i c e s . S e r i e s of 3-5 year i s s u e s c o n s i s t s of

y

Average of d a l l y r a t e s published by f i n a n c e companies f o r d i r e c t l y p i t t e d paper f o r varying m a t u - i t i e s i n t h e

eelocted notes and bonds,

' .

.

4 / Weekly v / e r o g e ^ ' f d a l l y e f f e c t i v e r a t e , which i s t h e r a t e f o r t h e h e a v i e s t voluoe of purchase and s a l e t r a n s a c t i o n
as r e p o r t e d t o t h e Federal Reserve Bank of Now York.
'
Not*.--Highs and lows are f o r i n d i v i d u a l s e r i e s »nd may be on d i f f e r e n t d a t e s f o r d i f f e r e n t d a t e s f o r d i f f e r e n t s o r i e s .
per s p r e a d s , high r e f e r s t o w i d e s t , and low t o n a r r o w e s t .
•




STOCK MARKET CREDIT
•*CHANGE IN SERIES

MORTGAGE

RECORDINGS

AND




LOANS

Exhibit F - Tables f o r Exhibit E
S t o c k Market

Stock p r i c e
index 1 /

Date

Low
1 9 6 1 - High
Low

60.51
39.1*8
66.37
58.48

February
Ma r c h
Apr. 7
Apr. 14
A p r . 21 jd/

62.17
61*. 1 2
65.96
66.37
65.77

1957-60

-

Trading
Common
stock
volume J /
yields 2/ (millions
(per cent) of shares).

High

(7/31/59)
(12/20/57)
(4A4)
(1/6)

3.08
4.72
2.93
3.32
3.13
3.03
2.95
2.93
2.95

-

Stock market customer c r e d i t
Customers1
Bank
debit balloans to
"others" 5 /
ances 4 /
t i n millions of dollars)

Total

4.9
1.4
5.8
3.6

U,764(4/59)
3,554(1/59)
11,778(3/61)
li,1116(1/61)

5.8
5.1
4.9

4,524
1,778
n.a.
n.a.
n.a.

&

3,401(V59) 1,373(5/59)
2,182(12/57)1,060(11/57)
3,60li(3/6l) l,213(liAlt)
3,253(1/61) 1,152(3/10)

1:8

1,166.
1,174

1,198

1,213

n.a.—Not available.
2 / Prnllfclfcary.
1 / Standard and Poor's composite index of 500 coamon stocks, weekly cloning prices, 1941-43»10, Monthly data are
average* of daily figureo rather than of FlriUey'e only. Hlghst and lows are for M d a y s ' data only,
2/ Standard and Poor's ocmpoelte stook yield baoed on Wednesday data converted to weekly closing prlcep by Federal
Reserve, Yields.shown are for dates on which price Index roaohod i t # high or low,
3/ Averages of dally trading volume on the New York Stock Exchange,
4 / End of month figures f o r member firms of the New York Stock Exchange which carry margin accounts) excludeu balance*
secured by U. S. Government obligations.
5 / Wednesday figures f o r weekly reporting member banks. Excludee loans for purchasing or carrying U. S. Government
r e c u r t t i e e . Prior to July 1, 1959, such loans are excluded only a t banks I n Now York and Chicago. Weekly reporting
Nonfarm M o r t g a g e R e c o r d i n g s a n d L o a n s 1 /

Date

1960 - Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Dec.
1961 - Jan.
Feb.

Unadjusted
Total
Seasonally
-VA.
FHA
Unadjusted
adjusted 2/
(Millions of d o l l a r s )

as
2,100

2,446
2,127
2,493
2,488
• 2,U6ii
2,161
2,426
2,407
2,373
n,a.

2,149

2,W6

2,?66
2,500
2,690

2,528
2,784
2,598
2,525'
2,378
2,338
2,075
1,997

368
361
336
322
365
362
417
425
434
404
390
I4I0

341

:

170
173
153
155
175
160
181
169
162
150
142
132
108

'

.

1,612
1,872
1,878
2,023
2,150
2,006
2,186
2,004
1,929
1,824
1,806
1,533
1,548

n.a.—Not available.
1/ Total recordings data are estimates based on reports from about 450 areas and include
mortgages of $20,000 or less secured by nonfarm real e s t a t e , primarily residential properties,
FHA-lnsured loans represent gross amount of insurance written, and VA-guaranteed loans the gross amount
of loans closed,on 1-4 family houses. Conventional data are derived as a residual, although t o t a l
recording" "id VA and FHA loans are not s t r i c t l y comparable i n concept or timing.
2/ Three-month moving average, seasonally adjusted by Federal Reserve.
Source1 federal Home Loan Bank Board, Federal Housing Administration and Veterans Administration




Exhibit G

-12-

Long-term Corporate and S t a t e and Local Government
S e c u r i t y O f f e r i n g s and Placements
( I n m i l l i o n s of d o l l a r s )

1961
Januaiy
February
March

2/526
2/6#
e/500

April
May

e/2,000

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

quarter
quarter
quarter
quarter

e/1,679

1st half
Three Q u a r t e r s
1 ear

New c a p i t a l
State and l o c a l 2 /
Corporate 1 /
1 I960 1 1959
1961
I I960
1 1959
577
715
860

821
738
6J46

708
63I4
e/800

739
623
582

639
858
6k6

766
567
1,03k

8?k
785
8#

e/725

731
550
1,033

932
593
1,006

727
9#
738

#5
7h0
703

572
602
689

567
516
k65

jo/965
e/875
e/850

879
86k
900

336
g/k68
e/500

597

2,151
2,367
2,427
2/2,6?0

2,20k
2,567
1,979
2,6k2

l,9k3
2,31k
1,863
e/l,3Ck

2,lk3
2,531
l,5k8
1,571

k,257
6,200
e/7 ,h2h

k, 67k
6,222
7,793

4,519
6,9k5
&/9,635

•

k,771
6,750
9,392

e/2,lU2

k55

Excluding f i n a n c e companies 3/
1st
2nd
3rd
kth

quarter
quarter
quarter
quarter

5/1,379

Year
1/
2/
3/

1,722
2,150
2,017
2/2,290.

1,999
2,412
1,716
2,503

2/^,179

8,630

intimated!
^7 Preliminary.
S e c u r i t i e s and exchange Commission e s t i m a t e s of n e t proceeds.
Investment Bankers A s s o c i a t i o n of America e s t i m a t e s 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 s a l e s and consumer f i n a n c e
companies.




-13Other Security Offerings
( I n m i l l i o n s of d o l l a r s )
Gross long-term 1 /
1961

|

I960

1

195?

1961

1

I960

1959

|

2
175
70

81
60
2

182
150
150

April
May
June

34
72
40

58
50
42

148
354

——

July
August
September

25
1
36

85
1
35

—

——

199

October
November
December

34
2
4l

33
30
70

160
149
181

547

1,672

January
February
March

•3

Year

533

•

199
175

98
150
——

86

,

707

N e t short, - t e r m U/
Federal agency 3/
S t a t e and l o c a l government 5 /
58
l4o
-fto

-4
4

-196
-202
-59

-82
176
33

April
May
June

70
-146
-157

197
-25
-197

-277
170
320

50
368
286

July
August
September

48
415
-175

57
392
131

95
23
-201

362
133
79

October
November
December

-16
50
-189

-81
-176
-117

-23
-33
-250

280
240
44

18

362

-633

1,969

January
February
March

160

Year
2/
1/

-14U
-l6z

.

.

Preliminary.
These data d i f f e r from those In BcnlbH 0 I n that refunding i s s u e s , a s well a s new c a p i t a l I s s u e s , are Included.
Long-term a e e u - l t l a s are defined a s those maturing In more than one y e a r .
Includes 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 governments and t h e i r subdivisions and by I n t e r national organizations. Source: S e c u r i t i e s and Exchange Commission.
3/ Issues not guyantnad by the U. S. Government. Source: long-term. S e c u r i t i e s and Exchange Comnilsulon; s h o r t term , Treasury Department and Federal Reserve.
4 / These data d i f f e r from those In Bchlblt 0 and above In t h a t they represent new o f f e r i n g s l e w r e t i r e m e n t s , whether
from the proceeds of refunding Issues or from other funds, k t a include only Issues with o r i g i n a l maturity of one
year or l e s s .
5/ Principally t«x and bond a n t i c i p a t i o n not i s , warrants or c e r t i f i c a t e s and Public Housing Authority n o t e s . I s
some Instances PHA notes Included may have a somewhat longer term than one y e a r . Source: Bond Buyor and
Federal iKes«rve.
2/




-14-

Exhibit I
Large Long-term Public Security Issues 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

i 9 6 0 - March
April
May

225
370

384
309
139
442
303
581
266
566
465
26C
147
26?
< 70

July
August
September
October
November
December
1961 - January
February
March

Other 2 /
191
71
28
30

23I4-

561
191
298

75
25
77
150
99

46
186
222
391
360
405

67

Large Individual Issues Offered April 1 through 21

Type 3 /

Coupon
Amount
Offering
(millions
Maturity net i n t e r - y i e l d
of
e s t cost
"do 11a rs)

Rating

CORPORATE
1st r e f . m t g . b d s . 30.0
25.0
Deb. •
20.0
Pfd. stk.
Deb.
35.0
Deb.
21.0
Com. s t k .
965.4
1*0.0
Deb.
Deb.
25.0
Pfd. stk.
25.0
1 s t m t g . p . l . b d s . 35.0
S.F. deb.
300.0

So. C a l i f . Edison Co.
John Deere Credit Co.
Tennessee Gas Trans. Co.
F l i n t k o t e Co.
Head Corp.
Amer. T e l . & T e l . Co.
Spiegel, Inc.
Hinnea polis-Honeywell
Regulator Co.
T r a n s . C-as Pipe Line Co.
United S t a t e s S t e e l Corp.

1986
1981

4-1/2
4-3/4

4.42
4.85

Aa

1981
1986

4-5/8
4-1/2

4.60
4.57

A
A

1983
1986

5-1/4
4-1/2

5.25
4.47

Baa
Aa

1981
1986

5
4-1/2

5.08
4.55

Baa
Aa

3.87
3.15

1.70-3.97
1.60-3.1:0.

Aa
Aa

3.68

2.00-3.80

A

STATE AND LOCAL GOVERNMENT
S t a t e of C a l i f o r n i a
Cleveland, Ohio
Univ. System Bldg. Auth.
DigitizedofforGeorgia
FRASER

I
J

G.O.
G.O.

(Rev.Ut.



190.0 1962-86/81
1 4 . 5 1962-81
13.0

1962-86

-15-

1-2
Large I n d i v i d u a l I s s u e s O f f e r e d A p r i l 1 through 21 (Cont'd)

Issuer

Type y

Amount
Coupon
r a t e or O f f e r i n g
(millions
Maturity
net i n t e r - y i e l d
of
dollars)
est cost

Rating

STATE AND LOCAL GOVERNMENT
(Cont'd)
Los Angeles Co. Flood
Cont. D i s t . , C a l i f .
Chicago, I l l i n o i s
Public Housing Auths.

Rev.-Ut.
G.O.

15.0 - 1962-89
30.3
50.0

1963-79
1962-2001

3.60

1.60-3.65

Aa

3.37
3.1*9

2.00-3.50
1.50-3.60

A
Aaa

OTHER
None
• 1/
2/
3/

I n c l u d e s 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 ^nd 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 m i l l i o n and o v e r .
I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal agencies„
In t h e c a s e of State and l o c a l government s e c u r i t i e s , G.O. denotes general
o b l i g a t i o n s ; R e v . - U t . s revenue o b l i g a t i o n s secured o n l y by income from p u b l i c
u t i l i t i e s ; R e v . - Q . U t . , revenue bonds secured o n l y by revenue from q u a s i u t i l i t i e s ; Rev„-S.T. 9 revenue bonds secured by revenue from s p e c i f i c t a x e s
only; R e v . - R e n t . , revenue bonds secured s o l e l y by l e a s e payments»




_16-

Exhibit J
forthcoming Large Long-term Public Security Offerings f o r New Capital
(Other than U. S. Treasuiy) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
Date of
computation

I960

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

Subsequent t o
date shown

During month f o l l o w i n g
date shown
borate

llocal g v t .

2 99
202
1I83
237
596
216
576
hhO
260

91
110
55
1,580

3/

259
2li3
277
180
275
283
212
258
21+2
l£2
181
307
559

Corporate

30
30
——
——

77
50

—

Forthcoming Large O f f e r i n g s , a s o f
•type

3a
357
553
155
1,006
731
836
585
335
1,036
1,01*6
1,125
1,700

Other 2/

•

280
258
502
380
3214
283
336
391
560
682
360
6#
806

——

60
30
- -

—

127
50

—
—

A p r i l 21
Amount
Approximate date
(millions
of o f f e r i n g
of d o l l a r s )

CORPORATE
I o w a - I l l i n o i s Gas & E l e c . Co.
Motorola, Inc.
B e l l Telephone Co. of Pa.
Washington Gas Light Co.
Continental Oil Co.
U. S. Freight Co.
-x-Haloid Xerox, Inc.
Peoples Gas Light and Coke Co.
New York S t a t e E l e c . & Gas Co.
New England T e l . & Tel. Co.
Aero j e t - G e n e r a l Corp.
New Orleans Public Service Corp.
Tennessee Gas Transmission Corp.
Nippon Tel. & T e l . Corp.
Duke Power Co.
Commerce O i l Refining Corp.
Realty C o l l a t e r a l Corp.




15.0

1 s t mtg. bds.
Deb.
Deb.
Ref. mtg. bds.
Deb.
Conv. sub. deb.

100.0
l5.lt

Conv. sub. deb.

15.1

1 s t mtg. bds.
1 s t mtg. bds.
Com. s t k .

25.0

S.F. deb.
1 s t mtg. bds.
Deb.
Ex. bds.
Com. s t k .
Deb., bds. & com.
Coll. t r . notes

30.0
20.0

15.0

30.0

15.0

15.0

i5.o
75.0

15.0
15.0

15.0
20.0

Apr. 26
Apr. 26
hay 2
Hay U
May It
May 8
( r i g h t s expire)
May 8
( r i g h t s expire)
May 10
May 17
May 19
( r i g h t s e x pir e )
May 25
May 25
May
May
May
I r i g h t s expire)
Indef i n i t e
Indefinite

J-2

-17-

Forthcoming Large O f f e r i n g s , a s of A p r i l 21 (Cont'd)
Issuer

Type

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

STATE AND LOCAL GOVERNMENT
S t a t e of Oregon
S t a t e of Tennessee
S t a t e o f Michigan
Los Angeles U n i f . Sch. D i s t . , C a l i f .
Grand Rapids, Mich.
' Port of New York Authority
C i n c i n n a t i , Ohio
^Sacramento Mun. U t i l i t y D i s t , , G a l i £
Massachusetts Turnpike Auth.
Orleans P a r i s h School D i s t . , La.
Dade County, Florida
New York S t a t e housing F i n . Agency
J a c k s o n v i l l e Expressway Auth.

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

30.0
15.6
25.0
30.0
13.1
35.0
21.5
30.0
175.0
10.0
2*6.0
100.0
1*0.0

Apr. 25
Apr. 26
Apr. 26
May 2
May 2
May 3
May 9
June 1
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

OTHER
Kingdom of Norway-,

Ex. bds.

15.0

May 3

*—Included i n t a b l e f o r f i r s t t i m e .
1/

I n c l u d e s corporate and o t h e r i s s u e s of $15 m i l l i o n and o v e r ; S t a t e and l o c a l
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 a g e n c i e s .
N o t e . — D e l e t i o n s f o r reasons o t h e r than s a l e of i s s u e : None.
2/




Exhibit K
Y i e l d s on New and Outstanding
E l e c t r i c Power Bonds, Bated Aa and A 1 /
Aa-rated o f f e r i n g y i e l d s
A-rated o f f e r i n g y i e l d s
Amount.above
Amount above
Actual
Actual
seasoned
y
i
e
l
d
s
1
(per c e n t )
( p e r c e n t ) seasoned y i e l d s
(basis points)
(basis points)

Date

1952-59 - High
Low
i 9 6 0 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug..
Sept.
Oct. 5
21
Nov. 1;
16
17
18
Dec. 7
1961 - Jan. 12
18
25
Feb. 8
16
16
Mar. 23
2k
Apr. 13
21

5:30 ( 1 2 / 8 / 5 9 )
2 . 9 3 (3/31/5U)
5.09
a. 82
1.91
*it.88
it.83

'

,

87
-8
1*5
25
37
32
26

it.60 ,
h.6W.
4.67iZ

22
2h
22

4.78
It. 85

33
ito

5.00
it.60
it.55
ii.a

h9
11
7
-2

it. 37

8

5.65 (9/18/59)
3.00 (3/17/5W

123
-15

*5.30^/

28

'it. 97
5.lit
5.15
*it.95
it. 87

9
35
29
11
6 .

it. 80

2it

it. 88

26

5.05

it3

it. 60
it. 65
it.it7
it. 50
it.itO .
li.65|Z
k.&ol/

-2
5
-13
5
-5
17
32

* — S i n g l e o b s e r v a t i o n , not an average.
1 / Covers only 3 0 - y e a r f i r s t mortgage bonds, as reported in Moody 1 s Bond Survey.
Except where i n d i c a t e d , t h e a c t u a l y i e l d f i g u r e and t h e amount above seasoned
y i e l d s are averages of o f f e r i n g s during the i n d i c a t e d p e r i o d and of t h e d i f f e r ences between t h e s e new o f f e r i n g y i e l d s and y i e l d s . o n seasoned i s s u e s 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 t h e seasoned i s s u e s v a r i e s from
26 to 28 y e a r s .
2 / 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 i n c l u d e one or more i s s u e s
w i t h such a p r o v i s i o n . Other i s s u e s have no such p r o v i s i o n .