Full text of H.16 Capital Market Developments : December 18, 1961

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Not f o r P u b l i c a t i o n DECONTROLLED AFTER SIX^MONTHS H.lij.

December 18, 19 6 l ,
(Next i s s u e :

c z :

;

1S61
V . : HANK

C-

January 2 , 1962.)

(CAPITAL MARKET DEVELOPMENTS
THE UNITED STATES
( I n c l u d i n g Monthly Review of Sources
and Uses -of F i n a n c i a l I n t e r m e d i a r i e s )

The volume of p u b l i c s e c u r i t y f i n a n c i n g t o obtain new c a p i t a l
was s u b s t a n t i a l l a s t week but i s expected t o be l i g h t throughout t h e
remainder of 1961= During t h e week ending December 15, t h r e e c o r p o r a t e
s e c u r i t y i s s u e s a g g r e g a t i n g $180 m i l l i o n were o f f e r e d and t h r e e S t a t e
and l o c a l government bond i s s u e s t o t a l i n g $92 m i l l i o n were s o l d . During
the l a s t two weeks of 1961, the o n l y c o r p o r a t e s e c u r i t y i s s u e which may —
be s o l d i s a $100 m i l l i o n r i g h t s o f f e r i n g of t h e K r a t t e r Corporation,
o f f e r e d w i t h o u t u n d e r w r i t i n g , which w i l l be t e r m i n a t e d whenever i t i s
f u l l y s u b s c r i b e d j one o f t e n delayed S t a t e and l o c a l bond i s s u e may a l s o
be o f f e r e d through n e g o t i a t e d s a l e t o obtain approximately $100 m i l l i o n
i n new c a p i t a l „
Bond y i e l d s . Yields on Aaa- and B a a - r a t e d c o r p o r a t e bonds
i n c r e a s e d t h r e e and one b a s i s p o i n t s , r e s p e c t i v e l y , l a s t week, while
y i e l d s on S t a t e and l o c a l government bonds continued t h e i r s t e a d y r i s e of
t h e p a s t s e v e r a l weeks, i n c r e a s i n g one b a s i s p o i n t . Y i e l d s on l o n g - t e r n
U. S. Government bonds a l s o continued to r i s e , i n c r e a s i n g another b a s i s
p o i n t t o t h e i r p r e v i o u s high f o r the y e a r .
The average y i e l d on new c o r p o r a t e bonds o f f e r e d l a s t week,
a d j u s t e d t o a Aaa b a s i s , was 2;.55> per c e n t , or 16 b a s i s p o i n t s above t h e
average f o r t h e week ending December 8. T h i s a v e r a g e , however, i s
probably n o t r e p r e s e n t a t i v e of the y i e l d which most companies could have
obtained l a s t week s i n c e t h i s average r e p r e s e n t s a. s i n g l e debenture o f f e r ing of a p u b l i c u t i l i t y which has f i r s t mortgage bonds outstanding and
the bonds had a 50-year m a t u r i t y a s compared with a 20-30 year m a t u r i t y
of most new bond i s s u e s .
S h o r t - and i n t e r m e d i a t e - t e r m i n t e r e s t r a t e s . Yields on Treasury
b i l l s and 3-5 y e a r U. S. Government o b l i g a t i o n s a l s o i n c r e a s e d l a s t week.
Yields on 3-month and 6-month Treasury b i l l s continued t o r e a c h new h i g h s ,
i n c r e a s i n g a s i n g l e b a s i s p o i n t each, while y i e l d s on i n t e r m e d i a t e - t e r m
U. S. Government o b l i g a t i o n s advanced two b a s i s p o i n t s . Several f i n a n c e
companies announced e a r l y l a s t week t h a t thqy were r a i s i n g t h e r a t e on
t h e i r paper w i t h 90-179 days m a t u r i t y from 2 - 7 / 8 t o 3 p e r cent3 t h e average
i n t e r e s t r a t e p a i d on such f i n a n c e company p a p e r i n c r e a s e d 11 b a s i s p o i n t s
t o 2o9h per cent a s a r e s u l t . The average r a t e on Federal f u n d s d e c l i n e d
50 basis p o i n t s t o 1.70 per c e n t . Other s h o r t - and i n t e r m e d i a t e - t e r m
i n t e r e s t r a t e s were unchanged.




I-iortgage y i e l d s . Average y i e l d s on 5 - 1 A P e r cent FLA home
mortgages s o ld i n t h e secondary market i n Novenfoer were unchanged f o r t h e
t h i r d c o n s e c u t i v e month a t 5.72 p e r c e n t , s l i g h t l y above t h e r e c e n t low
of 5 . 7 0 p e r cent r e a c h e d i n J u l y . O f f e r i n g y i e l d s on new c o r p o r a t e
bonds i n November—adjusted t o a Aaa b a s i s — r o s e 6 b a s i s p o i n t s a f t e r
s e v e r a l months of d e c l i n e , and t h e spread between bond and mortgage
y i e l d s narrowed somewhat t o lltO b a s i s p o i n t s . This was about t h e same
a s t h e average spread e a r l y t h i s s p r i n g ; t h e c y c l i c a l low spread was
108 b a s i s p o i n t s i n J u l y .
Stock market c r e d i t . Customer c r e d i t in t h e stock market
i n c r e a s e d s u b s t a n t i a l l y i n November, r i s i n g $127 m i l l i o n t o a r e c o r d l e v e l
of $ 5 . 5 b i l l i o n a t t h e end of t h e month. Customer d e b i t b a l a n c e s , except
f o r those s e c u r e d by U. S. Government s e c u r i t i e s i n c r e a s e d §112 m i l l i o n ;
t h i s t o g e t h e r w i t h the s m a l l i n c r e a s e s of t h e p a s t two months, was more
t h a n s u f f i c i e n t t o o f f s e t t h e June-August d e c l i n e s from t h e p r e v i o u s high
reached i n May. Bank loans t o o t h e r s f o r purchasing and c a r i y i n g
s e c u r i t i e s i n c r e a s e d by $15 m i l l i o n .
Money borrowed by NYSE member f i r m s a l s o r o s e t o a new high in
November, f o l l o w i n g f o u r s u c c e s s i v e months of moderate d e c l i n e s from t h e
p r e v i o u s high reached in June; c u s t o m e r s ' f r e e c r e d i t b a l a n c e s i n c r e a s e d
s l i g h t l y . These and o t h e r d a t a on s t o c k - m a r k e t c r e d i t f o r October and
November a r e shown i n t h e f o l l o w i n g t a b l e .

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 b a l a n c e s
Bank loans t o " o t h e r s "
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 t o " o t h e r s " f o r p u r c h a s i n g 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
Honey borrowed except 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
Honey borrowed on U. S. Government s e c u r i t i e s
Customers' n e t f r e e c r e d i t b a l a n c e s
£7

End of month
.Change
Nov.
| Oct.
( M i l l i o n s of d o l l a r s )
5,460
li,lUl
1,319
39

5,333
4,029
1,30k
a

102

103

2,7#
2,k3k
51
1,219

2,65k
c/2,360
56
1,214

Corrected.
StocL p r i c e s . Common stock p r i c e s , a s measured by Standard
and P o o r ' s composite index of 500 s t o c k s , changed l i t t l e l a s t week,
c l o s i n g on Decemb e r 15 a t 72.01, s l i g h t l y below the p r e c e d i n g w e e k ' s c l o s e
and down somewhat more from the peak reached e a r l i e r in t h e week. Trading
was i n s u b s t a n t i a l volume, a v e r a g i n g h . 5 m i l l i o n s h a r e s a day.




+127
+112
+15
-5
-l

+

7h
-5
+
5

-3I n s t i t u t i o n a l i n v e s t o r s . Total savings inflow during October
a t t h r e e major f i n a n c i a l i n s t i t u t i o n s — l i f e insurance companies, savings
and loan a s s o c i a t i o n s , and mutual savings banks—amounted t o $1.1* b i l l i o n ,
or s l i g h t l y more than a y e a r ago. While t h e increase in both a s s e t s of
l i f e insurance companies and share c a p i t a l of savings and loan a s s o c i a t i o n s
•was about one-tenth more than l a s t y e a r , deposits of mutual savings banks
declined s l i g h t l y i n c o n t r a s t t o a modest net inflow a year e a r l i e r . Time
deposits a t commercial banks increased about $0.5 b i l l i o n , one-sixth l e s s
than in i960.
On a seasonally adjusted b a s i s , t h e October net inflow was about
one-tenth l a r g e r than t h e monthly average f o r t h e y e a r t o d a t e . Appreciably
l a r g e r flows in October a t both l i f e insurance companies and s a v i n g and
loan a s s o c i a t i o n s were more than s u f f i c i e n t to o f f s e t a smaller i n c r e a s e in
depo s its of mutual savings banks.
Assets of l i f e insurance companies increased $0.7 b i l l i o n i n
October, or about o n e - t a i t h more than i n October i960. Net a c q u i s i t i o n
of business s e c u r i t i e s amounting t o $0.3 b i l l i o n were the l a r g e s t of any
month t h i s year, although somewhat l e s s than a year e a r l i e r viien acquis i t i o n s were i n f l a t e d by short-term commercial paper purchases. Mortgage
a c q u i s i t i o n s of $0.2 b i l l i o n were l a r g e r than in o t h e r r e c e n t months but
about the same as l a s t y e a r .
The n e t inflow of savings a t savings and loan a s s o c i a t i o n s in
October was in very l a r g e volume, amounting t o $0.7 b i l l i o n , or 8 per cent
more than i n i960 due t o a g r e a t e r i n c r e a s e in new deposits than i n withdrawals. On a seasonally a d j u s t e d b a s i s , inflow i n October was a t a record
r a t e , about o n e - f i f t h l a r g e r than e a r l i e r t h i s y e a r . Associations cont i n u e d to make mortgage loans i n very l a r g e volume i n October. Net a c q u i s i t i o n s of mortgages of $0.8 b i l l i o n were one-third l a r g e r than a year ago
and, although they were l e s s than i n September, the September-October
d e c l i n e was l e s s than s e a s o n a l .
Deposits a t mutual savings banks declined s l i g h t l y i n October as
withdrawals, following q u a r t e r l y c r e d i t i n g of i n t e r e s t , exceeded new
d e p o s i t s , f a s t October d e p o s i t s increased by S£7 m i l l i o n . While both new
deposits and withdrawals were l a r g e r than l a s t y e a r , t h e r i s e in the l a t t e r
was g r e a t e r than i n new d e p o s i t s . On a seasonally a d j u s t e d b a s i s , t h e
deposit increase was about o n e - f i f t h l e s s than the average f o r t h i s year
and the s m a l l e s t since l a s t s p r i n g . Mortgage a c q u i s i t i o n s of §0.2 b i l l i o n
were l i t t l e changed from the average of t h e f i r s t nine months of 1961 but
were s l i g h t l y l a r g e r than l a s t y e a r . A l l other balance sheet items d e c l i n e d
as they u s u a l l y do in October; the d e c l i n e in business and Federal agency
s e c u r i t i e s of $5>6 m i l l i o n was the l a r g e s t s i n c e January I9f?9.
More d e t a i l e d information concerning r e c e n t c a p i t a l market
developments i s presented i n t h e a t t a c h e d e x h i b i t s .
Capital Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of t h e Federal Reserve System.




"

LONG-TERM

BOND

YIELDS

HIGH-GRADE

LOWER-GRADE




V—V-,,—

Exhibit B - Tables f o r Exhibit A
Long-term Bond Yields
High-grade
Date

Corporate
Aaa 1 /

State and
local
government
Aaa 3/

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

195U - Low
1957 - High
1958 - Low
1959-60 - High ,
I960 - Low
1961 - High
Low
Nov.
Nov.
Dec.
Dec.
/;ec.

17
2h
1
8
15 e /

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

4.46 (9/15)
4.21 (3/17)
it. 39
.4.39
4.38
4.39/
4.42 ^

2.45 (8/6)
3 . 7 6 (10/18)
3 . 0 7 (4/23)
h.h2 (1/8/60)
3.75 (8/5)

Spread between
U. S. Govt and
Corporate State and
Aaa
local Aaa

1.90 (9/2)

4.06 (12/15)
3.70(5/12)

2.99 (9/1)
3.37 (7/6)
3.12 (2/23)

.30
.60
,22
.59
.19
.57
.34

4.00
3.98
4.01
4.05
4.06

3.26
3.29 . "
3.31
3.32 /
3.33^

.39
.a
.37
.34
.36

3.45

(8/29)

3,65

(9/24/Sfl)

2.64 (5/1)

.30
.50
.34
.92
.53
.76
.46
.74
.69
.70
.73
.73

Lower-grade
Date

Corporate
Baa 1 /

State and
l o c a l govt.
Baa

Spread between
Aaa and Baa
State and
Corporate
local govt.

(per cent)
2.93 (8/5)
4 . 5 1 (8/29)

1954 - Low
1957 - High
1958 - Low
1959-60 - High
i960 - Low
1961 - High
Low

3.44
5.10
4.51
5.36

4.98
5.13 (10/27)
5.00 (4/21)

4.16 (3/23)
3.93 (11/9)

Nov.
Nov.
Dec.
Dec.
Dec.

5.11
5.10
5.10
5.10
5.11 '

3.95
3.96
4.01
4.03
4.o4

17
24
1
8
15 e /

(12/31)
(11/20)
(7/11)
(2/12/60)
(9/9)

3.64 (6/1)

4 . 4 6 (1/7/60)
3 . 9 8 (12/29)

.52
1.27
.77
.84
.71
.81
.66

.96
1.21
.93
1.08
M
.93
,57

.72
.71
.72
.71
.69

.69
.67
.70
.71
.71

B/ Preliminary*
1/ Weekly average of del ly figures. Average term of bowde Inoluded l a 23 »20 year#.
if Weekly average of dally figures. The eerie# lnoludee bonds due or callable In 10 years or more.
3/ Thursday figures. Only general obligation bonds are Inoluded; average term 1# 20 years.
Note,--Highs and lows are for Individual series and nay be on different dates for 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 wldsst, and lew to narrowest.




•
•

'

U
EXHIBIT C
SHORT-

AND

INTERMEDIATE-

TERM

INTEREST

RATES

GOVERNMENT

3 - 5 YEAR ISSUES
6 - MONTH BIUS

1

f(

r" A /
r n\
^
/ .IAA;
A

X/v

1
\

BANKS

AND

u

i

i x <

OTHER

|

/

Z

1

*

|A
«J\
m

,
1

!

D!SC0U::TJIATE

| | New York

I
0

1™. r

PRIVATE

J y j DISCOUNT

\Jr>

I




,u

.L

BORROWERS

!

!

I

, '

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

Discount
rate
1/

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

1.50
3.50
1.75
it. 00
3.00
3.00
3.00

.61
3.61
.58
it. 5 9
2.11

Nov.
Nov.
Dec.
Dec.
Dec.

3.00
3.00
3.00
3.00
3.00

2.53
2.5it
2.56
2.58 /
2.59/^

17
2it
1
8
15 2 /

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

3-month
b i l l s 2/
(6/11)
(10/I8)
(5/29)
(1/8/60)
(10/28)

3-5 year
issues 2/

Spread between y i e l d s on
3-month b i l l s and y i e l d s d
6-mo. b i l l s 1 3 - 5 y r . issues!

3.il0 (12/30)
3 . 8 6 (8/11)
3.15 (5/L2)

.26
.79
.16
.it h
.12 .

.66
.86
.Oh
1.81
.38
1.51
.92

3,69
3.69
3.7it
3.82
3.8it

.21
.19
.22
.30
.30

1.16
1.15
1.18
1.2it
1.25

1 . 6 6 (4/30)

il.Oii (10/18)
2.11* (6/6)

3 . 0 2 (12/26)
5 . 0 7 (1/8/60)
2 . 3 8 (12/30)

5 . 0 0 (12/24/59)

2.59 ( 1 2 / 1 5 ) - 2 . 8 9 (12/15)
2.17 (1/27) 2.35 (it/28)
2.7it
2.73
2.78
2.88
;2.89

-

Banks anipl. Otherr Private Borrowers
Prime
rate 1/

Stock Exchange
c a l l loan 1 /

Finance company
paper 3 /

Federal
funds lj/

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

(per cent)
19$k - Low
1957 - High
1958 - Low
1959-60 - High,
1960 - Low
1961 - High
Low

3.00
i*,50
3.50
5.50
U.50
it.5o

3.00
It. 50
3.50
5.00
•it. 50
it.5o
it.5o

Nov.
Nov.
Dec.
Dec.
Dec.

k.to
It. 50
li.5o
lt.50
li.5o

L5o
JU-5 0
it.5o
it.5o
it.5o

17
2k
1
8
15 g /

'

1.25(12/31)
3 . 8 8 (11/15)

1'.13 (e/a)
5'. 1 3 (1/72/60)

2.68 (lz/JO)
2.9it (12/15)
2.50 (7/28)
2.73
2.78
2.81
2.83
2.9U

3.50
.13
it.00
.95

(11/a)
(%/M)
(5/13/60)
(12/2)

2.88 (11/10)
.it3 (1/27)

2.90
2.75
1.75
2.20
1.70

0
.63
-.35
1.02
.22
.56

.11

.20
.2it
.25
.23
.3b

1/ W.ekly rata .how* l
in e f f e c t at end of period. Dl,count r a t i t a for h d . r U R . « r v i Bark of Hew York.
Stock Exchange call Icah rat* I s going rat* on call loawa siourod by customer*' stock exchsnge collateral at
Hon York City banks, M « e rat* lo that charged by large banks on Jhort-ter* loana to bualnaaa borrowera of
the highest credit standing,
•
2/ Harltut yield) weekly average a computed from dally oloalng bid prices. Series of 3-5 year laauaa coital ate or
aeleoted note a and bonds.
•
3/ Average of dally rates publlahad by flnaace coopanlee for directly pitied paper for varying maturities In the
4/ WMkly
dally effective r a t e , which la the rate for the heavleat voluae of purchase and sale tranaactlona
aa reported to the Federal Reaarve Bank of Now York.
Not,...HIaha and lows are for Individual eeriea and may be on different dates for different dates for d i f f e r e n t series,
for apreada, high r e f e r s to wideat, and low to narrowest.




STOCK

MARKET

STOCK H A I K U CREDIT
'-XrCHANGE IN SERIES

MORTGAGE

AND

B O N D YIELDS




Exhibit ? - Tables f o r Exhibit E

"9-

Stock Market

Date

1957-60 - High
Low
1961 - High
Low
October
November
Dec. 1
Dec. 6
Dec. 15 2 /

Stock p r i c e
index 1/

Trading
Gonrnon
volume y
yields 2/ (millions
( p e r c e n t ) of shares)

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

39.it8 (12/1:9/57)
72.0it (12/8)
58.it8 ( 1 / 6 )
68.00
.71.07
71.78
72.0it
72.01

Stock market customer c r e d i t
Customers 1
Bank
debit balloans t o
ances it/
"others" 5 /
( I n imLllions o l d o l l a r s )

Total

it,76it (4/59) 3,it0l (4/59) 1,373 ( 5/59)

3.08
it. 72
i/2.82
3.32

it.'9
l.it
5.8
2.7

5, it60(12/6l)it,ia(12/61)i,377(8/30)
it,it2it(l/6l) 3,253(1/61) 1 , 1 6 1 ( 3 / 8 )

2.90
2.82
2.83
2.82
2.8it

3.3
it.it
it . 5
it. 2
it.5

5,333
5,it6o
n.a.
n.a.
n.a.

3,55ii

(1/53) 2shG2

it, 029
it,litl
n.a.
n.a.
n.a.

(12/57) 1 , 0 6 0 (11/57)

1,30it
1,319
1,319
l,32it
n.a.

n.a.—Not a v a i l a b l e .
fi/
Ppnlle-lwry.
1 / Standard and Poor's cciapoelte Index of 500 ocianon s t o c k j , weekly o l o s l i y prlo»?, 1911-43*10. Monthly data are
aviragos of d a l l y f l e u r c o r a t h o r than of Rrltlcy'a only. Hlghn and lows ore f o r M d n y n ' data only,
2 / Standard and Poor'o ocopotlto otock y i e l d baood on WednenCay data converted t o weekly e l c o l i y prleeo by Federal
Reserve. Yleldo ohovn are f o r datco on which prloa Index reached i t s high or low.
3 / Averages of dally t r a d i n g volviie on the Hew York Stock Bcctmye,
Aj End of month fleuroo f o r member flir.fi of the I law York Stock Ecchange which carry margin accounts) exclude u balance*
oecured by U, S. Oovcrimor.t o b l i g a t i o n s .
5 / Wednesday flcureo f o r weekly reporting member tanks. Excludes loans for purchasing or carry! *6 V, S, Government
re curl t i e s . P r i o r t o July 1, 1059, euth lo.-nn are excluded only a t banks I n How York and Chlcwco. Weekly reporting
banks account f o r about 70 per cont of loans to othero. For f u r t h e r d e t a i l oeu B u l l e t i n .

Mortgage and Bond Yields 1/
FHA
mortgages 2/
1953-58 - High
Low
19^9-60 - High
Low

5.63
1.56
6.2U
5.57

(11/57)
(2/5$)
(1/60)
(3/^9)

Spread between now
Aaa c o r p o r a t e
c o r p o r a t e bonds and
bonds 1 /
New 3/ [Seasoned U/ F11A mortf'fiKoo j Soaoonud bonds
it. 81
2.7it
5.29
it. 29

(6/57)
(3/5W
(9/59)
(2/59)

it. 12
2.8it
L.61
1.12

(9/57
(V5W
(1/60)
(1/59)

1.96
.5it
1.76
.83

.90
-.12
.77
-.16
.21
.lit
-.07
-.16
-.07

wmmm
1961 - J u l y
August
September
October
November

it.62

5.70
5.71
5.72
5.72
5.72

4 / Mco^y', Inventors Service.

it. 59
lt.38
L26

it. 32

h.hl
it.it5
U.U5
h.hZ
it. 39

Monthly a v e r t s of d.vily dat*.




See Exhibit

1.08
1.12
1.31
1.U6
l.itO

Exhibit

-10-

G

Yields on New Corporate Bond Issues Adjusted to an Aaa Basis
Amount
Average
Number of issues
yield
of issues included
(per
included (millions
of dollars) c e i t )
inthly averages;
>ol - January
February
March
April
May
July.
August
September
October
November
December
ekly averages:
61 - January 6
13
20
27
February 3
10
17
24
March 3
10
17
24
31
April 7
Ik
21
28
May 5
12
19
26 '

3
6
It
12
15
18
4
4
2
7
9

29.0
97.8
108.0
563.0
451.0
701.5
273.0
115.0
78.8
200.0
229.0

1
1
1
1
2
3

10.0
7.0
12.0
6.8
48.0
43.0

k

108.0

3
3
2
k
3
1
6
5

90.0
82.0
312.0
79.0
165.0
30.0
91.0
165.0

14.35 June 2
4.31
9
4.26
16
4.42
23
4.51
30
4.65 July 7
4.62
14
21
4.59
28
4.38
4.26 August 4
4.32
11
18
25
September 1
8
4.45
15
4.4o
22
4.27
29
4.61* October 6
4.32
13
20
4.27
27
November 3
10
17
4.26
24
December 1
4.28
8
4.40
15
22
4.42 29
4.54
4.49 :1962
4.47 January 5
12
4.47
4.55
11

Amount
Average
Number of issues
yield
of issues Included
(per
included (millions
cent)
of dollars)
3
4
6
3
2

60.0
307.0
137.0
130.0
67.5

4.-66
4.68
4.68
4.56
4.58

1
1
2
2
1
1

8.0
200.0
65.0
55.0
20.0
4o.o

4.60
4.64
4.46
4.54
4.73*
4.60

1

18.0

4.46

1
2

60.8
45.0

4.36
4.25

2
3
3

60.0
95.0
45.0

4.21
4.28
4.21

:
|
;

*4
l
l
2
1

94.0
60.0
30.0
75.0
Loo

4.29
4.35
4.40
4.29

:
;
:
,

id A by Moody'a Investors Service (except s e r i a l , equipment-trust and convertible i s s u e s ,
E'ferings'of natural gas pipeline and foreign companies, and issues guaranteed by the
jderal Government) weighted by s i z e of issues. Yields on Aa- and A-rated bonds are f i r s t
3justed to an Aaa b a s i s , using the comparable spreads in yields on seasoned bonds (Moody1a
reroges). Averages r e f l e c t changes in industrial composition, type, maturity, and c a l l
"ovisions of new o f f e r i n g s . Weekly averages considered unusually unreliable as
tdicators of Interest rates on new issues because of the small number or special
laracteristios of offerings included e t c . are marked with an asterisk.




Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(3h m i l l i o n s of d o l l a r s )

1961
January
February
March

580
66?
562

Corporate 1 /
1 I960
|
570
715
860

April
May
June

2,118
1,2#
1,318

761
577
. 1 , 0 i*u.

July
.August
September

1,028
762
61*7

" 736
967
726

'New ca p i t a l
1959

1961

State and l o c a l 2/
! 1959
1 I960

•891*
785
887

720
61*1
1,085

719
51*5
991 .

931
568
987

535"
710
703

1*70
£/58l
e/750

1*92
606
683

1*1*3
521
470

f l
900 '

e/600
e/800
e/550

3it8
501
1*91

593
1*50
1*70

700
611
568

2/1,033
e/800
e/975

1st
2nd
3rd
Z*th

1,80?
1*,695
2,1*37
e/2,808

2,11:5
2,382
2,1*28
2,698

2,201*
2,567
1,979
2,61*2

2,168
2,1*1*6
e/l,801
e/1,950

1,880
2,256
1>780
l,3h0

1st half
6,Soli
Three quarters
8,911
Year
, . <y i l , . 7 k 9

1,527
6,955
9,653

it, 771
6,750
9,392

U, 613
e/6,ia5
e/8,365

L,136
5,916
7,257

quarter
quarter
quarter
quarter

6i*8 .
859
638

715
689
763

October
November
December

890
'956.
852

;

821
738
6#

2,11*5
2,1.88
I,li33
1,521 .
L,631*
. 6,067
7,588

Excluding i ' i m n c e companies ] /
1st
2nd
3rd
l*th

quarter
quarter
quarter
quarter

Year

f

.

1,55U
4,552
2,337
2 / 2 , 708

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

1,999
2,1*12
1,716
2,503

</11,11*6

8,21*6

8,630

57

S e c u r i t i e s and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal 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 finance
companies.




Exhibit I
New Corporate Security Issues, VType of Issue and Issuer
(In millions of dollars)
Quarter
or
month

Net proceeds f o r
Gross proceeds f o r new
c a p i t a l and refunding 1 /
new capital 1/ 2/
Bonds
Common
Mfg. Public Communi- Other
Total Publicly Privately and
u t i l i t y cations issuers
offered
offered pfd.
stk.

•I
II
III
IV

2,281
787
2,6o5
9"60
2,062
807
2,739 1,00k

I960

I
II.
in
IV

2,265
934
2,537 1,071
2,520 1,336
2,832 1,162

1961

I
II
HI
IV

1,992
5,352
2,566

19#

i960 - Jan.
Feb.
Mar.
-Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1961

Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct. 2I
Nov. e /
Dec.

835
891
8#
i,o44

660
811
396
691

3#
750
468
364

813
979
170
927

105
13
99
I460

928
79k
942
890

795
770
751
955

536
692
429
416

298
511
562
625

598
808
652
696

189
149
317
381

1,059
913
896
997

662
2,303
772

880
1,275
1,139

449

61*1
324
253
735
88&--"357
805
318
608
186
1,124
510
415
777
996
592
329
747
621
928
1,009
518
895
323

190
29k
311
232
220
319
236
229
289
157
357
441

126
189
221
226
202
265
127
175
128
150
131
131

601
695
696
2,231
1,312
1,779
1,075
813
678
1,101
820

178
273
211
713
666
424
225
123
336
380

'

%$
^935

129
294
167
331
154
1,170
318
320
355
572 .
283
.259
. 392
111
177
336
218
30b
158
160
280

381
X,

595

x

81

832

>%\

1,052

803

59 .
67
172
171
92
249
182
220
161
185
249
191

155
245
198
303
144
362
126
222
303
203
314
180

36
• 05
68
52
36
61
57
165
94
254
27
100

319
318
422
236
304
373
370
359
168
249
366
381

169
99
248
574
447
446
428
255
252
293
210

137
160
84
254
439
389
269
215
111
262
2(J0

21
41
19
994
85
i 16
16
13
75
25
70

253
368
211
297
289
467
315
279
209
434
240

p7 Preliminary.
e? Estimated.
1~J Gross proceeds exceed net proceeds
by the cost of f l o t a t i o n .
2 / For t o t a l see Exhibit Rj other i s s u e r s are
e x t r a c t i v e , r a i l r o a d and other t r a n s p o r t a t i o n , r e a l estate and finance and
commercial and other.
Source.—Securities and Exchange Commission.




Exhibit J
Other Security Offerings
(In millions of d o l l a r s )
Gross long-term 17"
Foreign government 2/
Federal agency 3/
1961
I960
|
1961
|
1959
I960
|
Januaiy
February
Ma reh

6
29
20

2
175
70

81
60
2

252

April
May
June

2
66
29

3h
72
ljO

58
50
U2

100
lli9
278

lii8
3514

25
1
36

85
1
35

250
193

199

July
August
September

•£

2

October
November
December

3h
2
111

Year

533

'

April
May
June
July
August
September

1959
199
175

—

98
150

—

33
30
70

160
1JU9
181

86

517

1,672

707

State and l o c a l government 5/
JanuaryFebruary
March

182
150
150

Federal agency 3/

160
195
-8

58
II4O
-80

-k
181
h

-1U1
-162
-171*

-196
-202
-59

-82
176
33

-103
-1*2
-155

70
-II16
-157

197
-25
-197

-79
-87
207

-277
170
320

50
368
286

109
518
-86

1*8
1*15
-175

57
392
131

22
193
108

95
23
-201

362
133
79

. -16
'50
-189

-81
-176
-117

98

-23
-33
-250

280
21*0

18

362

-633

1,969

October
November
December
Year
E/
1/

Preliminary.
Thooe data d i f f e r from those i n Exhibit 0 i n t h a t refunding iaeuea, as well ee new capital i s s u e s , are Included*
Long-term s e o i r i t i e s are defined aa those maturing in more than one y e a r .
2/ Include a s e c u r i t i e s o f f e r e d in the United State a by foreign /'overnuont.i and t h e i r subdivisions and by i n t a r national organizations. Sourcet Seouritles and Exchange Commission.
3/ Isaues not guprantwed by the U. S. Cover reient, Sourcoi long-term, Soourltles and Exchange Commissi onj shorttorm , Treasury Department and Federal Reserve.
4 / These data d i f f e r from those i n Exhibit 0 and above i n t h a t they represent now o f f e r i n g s leBa r e t i r e m e n t s , whether
from the proceeds of refunding issues or from other funds. Data include only issues with original maturity-of one
year or l e s s .
"
5 / P r i n c i p a l l y tax and bond a n t i c i p a t i o n notas, warrants or c e r t i f i c a t e s and Public Housing Authority notes, I *
soma Instances PHA notes Included may have a somewhat longer term than one y e a r . Sourcei Bond
Buyer and
Federal fieaorvo.
• 1 "" 1 '• •




Exhibit K

—ill—

Large Long-term Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large Issues Offered
(In millions of d o l l a r s )

Month

I960 - November
December
1961 - JanuaryFebruary
March
April
May
July
August
September
October
November

Total

Corporate
Bonds
(other than Convertible
bonds
convertibles)

165
260
• U7
26?
70
1,572
557
532
hlS
185
168
35U
391

1#
235
106
230
25
560
kbo
ii35
285
165
78
205
320 .

Stocks

State
and
local
government

25
la
37
5
1,010
62
97
115
20
58
81

186
222
391
360
105
383
256
616
179
281
h3$
326
1*80

——
——
——

I4O
15
75
33
67
26

Other 2/

150
99
67
25
151
•

100
73
1*0
. 250

Large Individual .Issues Offered December 1 through 15
Type 3 /

Amount
Coupon
(millions Maturity
Offering
of
net i n t e r - y i e l d
dollars)
est cost

CORPORATE
Deb.
Borden Co.
Gen. Tel. Co. of C a l i f .
1 s t mtg. bds.
Deb.
Tenn. Gas Transmission Co.
P a c i f i c Lighting Corp.
Com. s t k .
-fr Bank of America
Com. s t k .

Rating

50.0
25.0
50.0
35.9
9h.k

1991
1991
1981

28.5
25.0

1962-87
1963-82

3.30
3.11

1.60-3.50
1.60-3.35

33.7
35.0
53.1

1963-92
2002
1962-86

3.83
3.31

1.75-1.00
A
k.hD £/
1.70-3.70
A

23.0
15.9

1962-2000 3.65
196i|-87
n.a.

1.75-11.10^ __
2.10-3.60
A

li-3/8
1-5/8
5-l/ii

Aa
A
Baa

1U5
L63
5.15

STATE AND LOCAL GOVERNMENT
G.O.
Baltimore, Maryland
State of Connecticut
G.O.
Oakland Co., Twelve Town
Drainage D i s t . , Mich.
G.O.
Rev.
Grand River Dam Auth.,0kla
G.O.
New York City, New York
Penna. S t a t e Public Sch.
. Rev.-Rent.
Bldg. Auth.
Oklahoma City, Okla.
G.O.
OTHER



V

Aa
Aaa

lootnotes
—Rights o f f e r i n g .
1/ I n c l u d e s c o r p o r a t e and o t h e r 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 ana o v e r ;
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 over.
2 / 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 sank f o r R e c o n s t r u c t i o n and "
Development i s s u e s and non-guaranteed i s s u e s by f e d e r a l a g e n c i e s .
3 / I n t h e case of S t a t e and l o c a l government s e c u r i t i e s , G.O. denotes g e n e r a l
o b l i g a t i o n s j R e v . - U t . , revenue o b l i g a t i o n s secured only by inccv •. from
p u b l i c u t i l i t i e s ; R e v . - Q . U t . , revenue bonus s e c u r e d only by revenue from
q u a s i - u t i l i t i e s ; R e v . - S . T . , revenue bonds secureo by revenue from s p e c i f i c
t a x e s o n l y ; R e v . - R e n t . , revenue bonds secured s o l e l y by l e a s e payments»
h / 1>86-87 M a t u r i t i e s n o t r e o f f e r e d .
5/ An a d d i t i o n a l
m i l l i o n in bonds due 15*65-68 were sold t o refund o u t standing s e c u r i t i e s ,
6 / 1997-2000 m a t u r i t i e s not r e o f f e r e d .




-16-

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) ( 1 /
E j e c t e d Proceeds from Forthcoming Large Issues
During month following
date shown

Date of
computation

Corporate
260
91
110
55
1,580
5i|2
197
521
170
175
358
316
356

I960 - Nov. 30
Dec. 30
1961 - Jan. 31
Feb. 28
Mar. 31
Apr. 28
May 31
June 30
July 31
Aug. 31
Sept. 29
Oct. 31
Nov. 30

. Others/
2h2
UL2
181
307
559
236
U3L
195
106
399
251
597
295

Subsequent to
date shown
State and
Corporate l o c a l govt,
335
1,036
1,0U6
1,125
1,700
687
611
666
255
21*0
5ok
In
• 1*21

15
75
73
.35

560
682
360
638
806
579
771
291
537
530
h$h
693
198

15
75

§

Forthcoming Large Offerings, as of December l5
Issuer

Type

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

CORPORATE
K r a t t e r Corp.
New York Telephone Co.
Commerce Oil Refining Corp.
Realty C o l l a t e r a l Corp.

Sub. deb.
Htg. bds.
Deb., bds. & com
; Coll. t r . notes

100.0
60.0
1,5.0
20.0

Dec. •
( r i g h t s expire)
Jan. 10
Indefinite
Indefinite

STATE AND LOCAL GOVERNMENT
Florida Turnpike Auth.
Georgia Rural Roads Auth.
-^Commonwealth of Puerto Rico
Montgomery Co., I-ialyland
East Bay Hun. U t i l . D i s t . , C a l i f .
San Jose, C a l i f o r n i a
Ascension-St. James Bridge & Ferry
Auth.
Orleans Parish Sch. D i s t . , La.
Dade County, Florida
Jacksonville Expressway Auth.
Los Angeles Dept. of Ktr. & Pwr.
None

OTHER




Rev.
Rev.-S.T.
6.0.
0.0.
G.O.
G.O.
. Rev.-Ut.
G.O.
G.O.
Rev.-Ut.
Rev.-Ut.

100.0
13.0
25.0
13.2
30.0
20.0
30.8
10.0
16.0
liO.O
16.0

Dec.
Jan.
Jan.
Jan.
Jan.
Jan.

It
3
9
9
10

Jan. 15
Indefinite
"Indefinite
Indefinite
Indefinite

J-2

-47>

Footnotes
*—Included in table for f i r s t time.
1/

Includes corporate and other issues of $15 million and over; State and
l o c a l government i s s u e s of $10 million and over.
Includes foreign government and International Bank f o r Reconstruction and
Development i s s u e s and ncn-guaranteed issues by federal agencies.
Note.—Deletions f o r reasons other than sale of issue: None.
2/




Exhibit H
Sources and Uses of Funds by
L i f e Insurance Companies
U.S.
Govt.

Cash

i t i es
Value of a s s e t s a t
end of p e r i o d :
1957 - Dec.
1958 - Dec.
1959 - Dec.
i960 - Dec.
19.61 » Oct.
Changes:
1959 - July
Aug.
Sept „
Oct.
Nov.
Dec.
I960 - Jan.
Feb.
liar.
Apr.
i-iay
July
Aug.
Sept.
Oct.
l;:ov.
Dec.
1961 - Jan.
Feb.
tar.
apr.
llay
June 2 /
July
Aug.
Sept.
Oct.
l.o v."
Dec.

Uses of funds 1/
S t a t e and
l o c a l govt.
securi t i e s 2 / ities

Mortgages

Other

Total
sources

(In m i l l i o n s of d o l l a r s )
13,206 101,309
lk,6k0 107,580
16,126 113,650
17,625 119,717
18,936 125,06k

7,026
7,182
6,858
6,m
6,103

k2,133
kk,6l2
16,901
48,896
50,916

-25
16
-39
20
33
99

39
95
-181
-18
-132
-168

191
81
82
203
195
219

110
31
18
Ik
18
2k

19k
167
207
2k5
235
30k

lk6
110
106
91
lk6
313

656
500
195
555
k95
791

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

153
-36
-167
^85
-62
-102
73
-kO
-6
-62
23
-103

20k
125
10k
13k
231
125
167
168
kO
311
198
188

-2k
25
35
21
26
13
10k
k3
82
33
26
17

336
196
2^2
225
203
192
63
226
179
21k
206
277

-•k6
207
115
_95
128
211
206
175
122
11
102"
173

552
k6k
299
k29
51k
k69
6#
57^

2k2
128lk8
135
170
270
2k5
211
213
288

k9
31
33
3k
5
-13
25
36
29
17

210
135
208
202
170
222
107
16k
165
199

^

-5k
-9
-50
9
75
-39
kO
-18
lk
31

17

101
-3
-k7
63
-182
71
-50
13

2,377
2,691
3,221^
3,622
3,868

35,271
37,092
39,237
kl,798
k3,580

1,29k
1,363
1,307
1,332
1,331

202
202
186
119
58
31
lk2 |
128 1
138
105.

59,
522
651
750
kEk
518
k52
5k:
289
630
521
509
653

Uses of funds represent net changes i n a s s e t s and t h e r e f o r e r e f l e c t n e t , r a t h e r
than gross, uses,
2/ i n c l u d e s s e c u r i t i e s of domestic corporations only*
S
o
u
r
. - - I n s t i t u t e of L i f e Insurance.
Digitized forc eFRASER



.

Exhibit N

-19-

Sources and Uses of Funds by
Savings and Loan Associations

Cash
Value of a s s e t s
a t end of period
1957 - Dec.
1958 - Dec.
1959 - Dec.
I960 - Dec.
1961 - Oct.
Changes:
1959 - July
Aug.
Sept.
Oct.
Nov.
Dec.
2/1960 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
2 / I 9 6 I - Jan.
Feb.
Mar.
Apr.
May

Uses of funds 1 /
U. S.
Govt.
Mortgages
ities
2/

Other

Total
sources

Sources of funds
Net
change
Borrowsavings
ing y Other
capital

( I n m i l l i o n s of d o l l a r s )
2,11*6
2,585
2,183
2,715
2,805

1,586
5,086

40,049
45,627
53,194
60,084
67,305

2,770
3,108
3,676
4,104
4,578

48,138
55,139
63,530
71,489
79,774

41,912
47,976
54,583
62,154
68,570

-U31
-42
-52
-69
61
371

108
23
-7
10
-28
-25

803
740
679
626
460
468

-113
14
64
86
141
-65

367
735
684
653
634
749

201
394
447
396
484
1,205

-301
-34
49
-27
80
329
-236
30
24
104
86
428

196
65
-22
-2
21
-143
-33
-27
1
20
36
-3

316
398
547
565
635
780
615
713
643
605
501
572

-119
65
93
106
203
-58
-127
2
63
85
153
-38

92
494
667
642
939
908
219
718
731
814
776
959

468
409
623
372
630
1,216
149
489
602
667
558
1,388

-462
-114
-126
37
5
211
-127
22
49
-14
51
272

86
199
170
233
304
-519
197
207
80
161
167
-701

-95
59
3

93
192
107
-18

371
427
689
694
815
993
738
906
802
786

-107
71
123
113
216
-60
-152
79
83
108

262
749
922
813
1,180
1,096
351
967
927
1,018

591
553
705
417
800
1,362
ill
496
662
719

-465
—80
-26
88
41
274
-l
132
130
73

136
276
243
308
339
-54o
241
3#
135
226

3,173
3,819

k,k77

2k

1U9
132
-227
-86

1,379
1,444
2,387
2,191
2,357
31
119 '
148
136
56
222

4,847
5,719
6,560
7,144
8,847
135
222
89
121
94
-678

31
-8
July
Aug.
68
Sept.i/
k7
. -5
Oct.
8k
ko
Nov.
Dec.
y
Preliminary.
~rj Revised.
1 / Uses of funds represent n e t changes in a s s e t s and t h e r e f o r e r e f l e c t n e t , r a t h e r
than g r o s s , u s e s . Savings and loan a s s o c i a t i o n s do not hold business s e c u r i t i e s
and data on holdings of State and l o c a l government bonds, presumed to be small,
are n o t a v a i l a b l e .
2/ Data f o r 1957 adjusted t o include mortgage pledged shares a s c u r r e n t l y r e p o r t e d .
3 / Advances from Home Loan Banks and o t h e r borrowing.
DigitizedSource.—Federal
for FRASER Savings and Loan Insurance Corporation.



Exhibit 0

-20-

Sources and Uses of Funds
by Mutual Savings Banks

Value of a s s e t s
a t end of period
• 1957 - Dec.
1958 - Dec.
1959 - Dec.
1960 - Dec.
1961 - Oct.
Changes:
1959 - July
Aug,
Sept,
Oct,
Nov,
Dec.
I960 - Jan,
Feb.
liar.
Apr.
May
July
Aug.
.Sept.
Oct.
Nov.
Dec.
1961 .- Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Dec.
2/

Uses of funds 1 /
Busi- State &
Total
U. So
ness
local
Govt.
sources
MortCash secur- secur- govt.
Other
gages
ities
ities
ities
2/
(In millions of d o l l a r s )

6,170

1,331
4,973
4,849
5,080

5,068

682
725
722
672
683

-79
3
-2
-27
20
111

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

-47
13
-2
-55
-28
23

4
-I
8
-20
-8
-24

-131
37
41
-86
42
108
-69
-6
22
-8
9
84

-9
-11
32
-148
-80
-93
-48
30
-32
-156
- 68
-42

-12
-9
52
-19
13
57
38
-8
32
. -4
34
57

-49
21
9
-51
30
27
-26
-14
46
-2?

106
100
117
-216
-13
-41
18
6
-15
-120

3
-15
46
-11
27
32
2
-23
-19
-56

890
921
82?
872
84l

7,552
7,266
6,861
6,239

20,951
761
23,039
855
211,768 910
26,709 1,001
28,536 1,061

35,168
37,779
38,942
40,573
42,360 •

Sources of funds
Net
change in
deposits

31,695
34,041
34,983
36,353
37,968

179
156
160
137
124
132

-12
33
31
-37
42
-12

32
192
163
-283
65
218

-54
80
197
-187
-27
340

-6
159
116
-9
150
3 '
13
129
161
-23
169
-4
-4
-159
206
-5
1
196
-6
168
. 171
-5
-5
157

-12
1J3
41
-21
63
-59
42
6
14
-25
- 13
-14

-11
167
319
-132
176
178
118
223
233
-31
154
, 237

-68
50
320
-95
58
221
21
105
278
56
39
385

17
26
29
-51
30
-23
-28
54
49
-Ii4

233
272
4o4
-154
262
218
164
232
220
-?4

170
136
351
-54
114 ,
367 J!/
23
99
310
-15

-5
-l
-2
. 1
22
»2
- 1
1
-5

161
i4o
204
.176
187
201
201
207
156
178

Other

3,473
3,738
3,959
4,220
4,392
86
112

-34
-96
92,
-122

57117
-1,

-37-:
118 ,
-43 ••
97 '
118
-45 .
-87

115
-148
63X
136.
53;:
-100 4

1485

133#
-90L
-59 &

1

than g r o s s , uses,
'
Includes Canadian government and p o l i t i c a l subdivisions, International Bank f o r
Reconstruction and Development, nonguaranteed federal agency and other bonds as
well as corporate bonds and stock.




j
j
I
f