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H. 14
Not for Publication

MOONTKOIiffl AWER SIX K0OTS9

D e c e m b e r 21, 1964,

(Next issue:

January 4, 1965)

-ja

\
CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES
I
(Inclutilhi Review of Sources and Uses of Funds of Financial
Intermediaries in October)
Corporate and municipal bond markets. Both corporate and
'limnicipal security financing will be seasonally very light in volume
during the remaining two weeks in 1964.
Long-Term Public Security Offerings 1/
Corporate
New Capital | Refunding

State and local R O V t .
New Capital | Refunding

Sold:
52 week avg.

113

1

183

Dec.
Dec.

115 r/
50

--

369 r/
346 r/

11
18

9
79 r/

Scheduled:
Dec.
Jan.

25
1

10

44
21

--

1J Federal Reserve estimates based on published reports of issues sold
and scheduled for offering; corporate rights offerings are included
as of the date subscription rights expire.
Only one medium-sized corporate bond issue reached the market
last week, and with the scarcity of new issues, was very well received.
The secondary market was only moderately active with price changes on
recently distributed issues mixed but minor. Yields on seasoned Aaarated bonds, however, fell 2 basis points.
The municipal market remained firm last week and yields edged
down further, with those on seasoned, Aaa-rated issues falling to their
lowest level since late-May 1963. Last week's large volume of new
issues was moderately well received with about three-fifths purchased
by investors by the weekend; dealers' advertised inventories of unsold
securities jumped $105 million to $691 million, the highest since last
October.




H. 14
Yields in Securities Markets

High-Grade
Notes and Bonds
Corporate
New
Seasoned

Level latest week
(per cent)

Change from
preceding week
(basis points)

—
4.43

n.a.
- 2

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

4.13
4.06

+1

State and local govt.

2.99

-2

4.00

+70

3.86
3.95
3.94

+5
+1

Money Market
Federal Funds
Treasury bills
3-month
6-month
Finance Company Paper

Private housing starts and permits. Seasonally adjusted
housing starts, which had advanced 12 per cent in the two preceding
months, dropped 11 per cent in November. The annual rate of 1,420
thousand (including farm) was the lowest this year and nearly a
fourth below the recent peak in October of last year.
On a three-month moving average, starts in the SeptemberNovember period were at an annual rate of 1,492 thousand. This was
virtually the same as in August-October and 14 per cent under the
recent high reached in September-November last year.
Government-underwritten starts accounted for 19 per cent of
total starts in November. While still well below earlier highs, this
marked the third consecutive month in which the share was greater
than at the same time last year.
Seasonally adjusted residential buildings permits in permitissuing areas rose 3 per cent in November front a reduced earlier rate.
Permits for l-to-4-family buildings turned upward appreciably, while
permits for 5-or-more-family structures declined further.
Stock market credit. Total customer credit in the stock
market changed little during November with an increase of $32 million
in bank loans to others than brokers or dealers for purchasing or
carrying securities (other than U.S. Government securities) more than
offsetting a $25 million decline in customer debit balances on nonGovernment securities. At month-end, the total outstanding remained
at $7.1 billion.
Borrowings of member firms of the New York Stock Exchange on
customers collateral dropped $59 million further in November, the seventh
consecutive month-to-month decline. Customers1 net free credit balances
 million. More detailed information on stock market credit in
fell $24
recent months
http://fraser.stlouisfed.org/ is shown in the tables on the following page.

Federal Reserve Bank of St. Louis

H. 14
-3STOCK MARKET CREDIT
(In millions of dollars)

—-

I
$

Months

Total

Broker & Dealer Credit
Customer Credit
Customers1
Net debit
Bank loans to others Money
borrowed
net free
balances with
than brokers and
dealers for purchas- Cust. [Other credit
NYSE member
ol
ing & carrying secur. c l . | coll. balances
firms

Outstanding:
; 1955-56 High

4,047(5/56)

2,823(12/56)

1,255(4/56)

I.
,873

430

1,069(1/55)

1957-58 Low

3,554(1/58)

2,482(12/57)

1,060(11/57)

1,344

188

807(4/57)

4,764(4)
4,142(5)
5,602(12)
4,876(7)
7,298(11)

3,401(4)
3,004(7)
4,259(12)
3,562(7)
5,586(11)

1,373(5)
1,121(5)
1,377(8)
1,269(9)
1,727(12)

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

318
237.
385
235
597

1,257(3)
940(4)
1,508(4)
1,091(9)
1,211(11)

7,242
7,108

5,515
5,160

1,727
1,948

,852
3,
3,469

597
482

1,210
1,131

91
-71
9
-140
-18
144
-71
-69
-81
-102
34
i-36
-25

27
15
-1
10
39
29
34
21
12
38
12
-5
32

179
-40
-57
-57
-92
270
-48
102
-94
-54
-50
-40
-59

60
32
-182
5
72
3
-1
-15
-52
15
82
-29
-43

35
-1
52
-63
32
-66
-27
8
-32
-37
68
10
-24

; 1959
I 1960
f 1961
\ 1962
j 1963

-

High
Low
High
Low
High

f 1963 - Dec. 1/
1964 - Nov.
| Changes in
; Outstanding;
i 1963 - Nov. 1/
1
Dec. 1J
$ 1964 - Jan. 1/
z
$
Feb.
Mar.
Apr.
s
May
1
f
|

I

I

July
Aug.
Sept.
Oct.
Nov.

118
-56
8
-130
21
173 .
-37
-48
-69
-64
46
-41
7

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




H. 14

-4-

Stock prices. A three-week decline in common stock prices
was reversed at mid-week, and for the week as a whole Standard and
Poor's composite index of 500 stocks was up almost one per cent. At
the December 18 close of 84.29, the index remains over 2 per cent
below its all-time high of November 20. Trading volume averaged 4.8
million shares a day, the same as in the previous week.
Institutional investors. During the month of October net
growth in income yielding claims on depositary-type savings institutions
totaled $2.4 billion, off 17 per cent: from the net inflow in the comparable
1963 month. The decline was attributable largely to commercial banks
where the $1.4 billion increase in time and savings deposits was 25
per cent less than the increase in October last year. At savings and
loan associations also, the increase in savings capital ($0.8 billion)
was 3 per cent less than a year earlier, though this figure will
probably be revised upward as a result of sampling problems. Meanwhile,
deposit growth at mutual savings banks ($0.2 billion) was 14 per cent
greater than a year earlier.
For savings and loan associations the net gain in mortgage
holdings for the month ($0.8 billion) was one-fourth less than a year
earlier, and net increases in cash and U.S. Government securities
were also down substantially.,%th their relatively unchanged savings
experience, these associations were consequently able to reduce
borrowings somewhat in contrast to a $0.2 billion net addition last
year.
Mutual savings banks used their large deposit gains in October,
to make net mortgage acquisitions of $0.4 billion, 6 per cent more than
a year earlier. Their seasonal reduction in holdings of cash and
Governments ($80.2 billion), on the other hand was slightly larger than
a year earlier.
Life insurance companies. The net increase in assets of life
insurance companies during October-excluding valuation adjustmentsamounted to $0.8 billion, 12 per cent larger than in October 1963.
Roughly three-fifths of this increase ($0.4 billion) was invested in
mortgages, over_one-third more than a year earlier. The net addition
of domestic business securities ($0.2 billion), on the other hand, was
about one-fifth smaller than a year earlier. Modest net acquisitions
of municipal bonds this October contrasted with a minor reduction last
year.
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.




LONG-TERM BOND

YIELDS, HIGH-GRADE

U S OOVHMMim,
..

f\J
k

..\ '*
. v„y*"

xy-J_,Ayv'
.
f

Exhibit A - Part II
Corporate
Aaa 3/

U. S. Govt,
long-term 2/

State and
local
government
Aaa 1/

(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
196U - High
Low
Nov.
Nov.
Dec.
Dec.
•Dec.

f

20
27
4
11
18 2/

Spread between
U. S. Govt, and
Corporate
State and"
Aae
local Aaa

4.61(3/29/60)
Il.li6(9/15)
U. 21 (3/17)
U.U3(a/i6)
U.23(12/2$
U.37(l?/27)
1.19(3/29)
4.45(12/11)
4.35(2/28)

U.U2 (1/8/60)
1.07 (12/29)
3.70(5/12)
U.12 (2/23)
3.85(12/28)
U.16 (12/27)
3.87 (Vie)
4.20(4/17)
4.11(11/20)

3.65 (9/24/59)
3.37 (7/6)
3.12 (2/23)
3.26 (3/4)
2.88 (13/8)
3.18 (13/21)
2.93 (3/28)
3.16(3/26)
2.99(12/17)

.59
.57
.3k
.1*7
•30
.35
.21
.33
.19

1.0k
.80
1.05
.88
1.14
1.01

4.42
4.44
4.45
4.45
4.43 /

4.11
4.15
4.15
4.12
4.13^

3.05
3.09
3.05
3.01
2.99 ^

.31
.29
.30
.33
.30

1.06
1.06
1.10
1.11
1.14

.92
.76

Preliminary.

E S i B E S




- •

. w
EXHIBIT B, P . 1
ol
L O N G - T E R M B O N D YIELDS, L O W E R - G R A D E

Exhibit B - Part II

Date

Corporate
Baa 1/

State and
local govt.
Baa y

Spread between
Aaa and Baa
State and
Corporate
local govt.

(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
196] - High
- Low
196k - High
Low
Nov.
Nov.
Dec.
Dec.
/ Dec^Rote *

20
27
4
11
18 jo/

5.3$(2/lV60)
5.13(10/27)
5.00(4/21)
5.11(1/5);
U. 92 (12/21)
U.93(i/4)
14.83(11/35)
4.87(6/26)
4.80(11/20)

ii. 1 6 (3/7/60)
*
i . 16 (3/23)
t
3.93(11/9)
I . o t (2/11)
t l
3.52(5/17)
3.63(6/27)
3.52(5/23)
3.59(10/8)
3.49(11/19)

•Sit
.81
.66
.7h
.63
.71
.I48
.48
.37

1.08
.93

4.80
4.81
4.83
4.83
4.81

3.49
3.54
3.52
3.52
3.51

.38
.37
.38
,38
.38

.44
.45
.47
.51
.52

F o r footnotes see Exhibit A .




£
•63
.44
II
.52
.36

1
EXHIBIT C, P i 1
al
S H O R T - A N D INTERMEDIATE-TERM INTEREST RATES, G O V E R N M E N T

V

&

. t-MONlH I I
I

MY
n i L A
""

w

Date

Discount
rate

y

1959-60 - High li.OO
3.00
1961 - High
3.00
Low
3.00
1962 - High
3.00
Low
3.50
1963 - High
3.00
Low
196U - High
4.00
Low
3.50
Nov.
Nov.
Dec.
Dec.
Dec.

20
27
4
11
18 2/

3.50
4.00
4.00
4.00
4.00/

i

v

' MONIH
J
Mork.l Y e d
ils

!

_LU-1.1 I M I I I
mo"

r

„

1 1 1 1 1 1 1 1 1 1 1 1 1 1 111111tM 111
1 1 1
mi
mi
mi~
Exhibit C - Part II

3-month
bills 2/

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

It. 59 (V8/6O)5.07(3/8/60) 5.00(12/24/59)

2.66(12/29)
2.17 (V27)
2.97(7/13)
2.65(6/8)
3.55(12/15)
2.88(3/15)
3.86(12/18)
3.43(7/17)

3.86(8/11)
3.15(5/12)
3.88(2/2)
3. la (12/28)
U.07 (12/27)
2.93(3/8)
3,UU(V3fl)
3.97(12/4) 4.23(3/27)
3.98(8/7)
3.52(7/3)

3.61
3.78
3.82
3.81
3.86/

3.78
3.96
3.97
3.94
3.95

2.90(3/29)
2.35(4/28)
3.13(7/20)
2.7li(6/8)
3.68(12/6)

.

4.02
4.11
4.11
4.06
4.06

1 1 1 1 II 1 1 1 1 1
n*«

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

.79
.au
.12
.2k
.02
.17
,0k
.21
. 04.17
.18
.15
.13
.09

1.81
1.51
.92
1.19
.52
.70
.U2

.71
.20

.41
.33
.29
.25
.20

Weekly rate ah own is that in effect at end of period at the Federal Reserve Bank of New York*
Market yield; weekly averages computed from daily closing bid prices. Series of 3-5 year issue#
consists of selected notes and bonds.
N o t e , — H i g h s and lows are for Individual series and may be on different dates for different series#
Tor spreads, high refers to widest, and low to narrowest.




SHORT-

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

BANKS AND

OTHER

PRIVATE BORROWERS

JJ
-yv .yj
/

A
—/Xv—
runy-v VV f '

ifixhibit D - Part II

Date

1

Stock exchange
call loan 1/

Prime
rate 3/

Finance company j Federal
paper 2/
funds 2/

Spread between
3-mo. bills and
finance co. paper

[per cent)
1959-60High'
1961 - high
Low
1962 - High
low
1963 - High
Low
196b - High
Low
Nov.
Nov.
Dec.
Dec.
Dec.

20
27
4
11
18 2/

5.50
U.50
U.50
U.50
U.50
U.50
U.50
4.50
4.50

5.00
U.50
U.50
U.50
U.50
U.50
U.50
4.50
4.50

5.13(1/22/60)
3.00(12/30)
2.50(8/5)
3.25(7/21)
2.68(6/1)
3.88(12/27)
3.13(5/31)
3,94(12/18)
3*72(9/11)

U.00 (5/13/60)
2.90 (11/37)
•U3 (V27)
3.00 (12/28)
1.30 (3/26)
3.50 (32/27)
2.U5 (7/26)
4;00(12/18)
3;07(10/16)

- 4.50
4.50
4.50
4.5 d
4.50

4.50
4.50
4.50
4.50
4.50

3.88
3.91
3.94
3.94
3.94

3.59
3.34
3.90
3.30
4.00

3/

1.02
.56
.11
. .U5
.19
.39
.12
•41
•08
.27
.13
.12
.10
.08

Weekly rate shown is that In effect at end of periqd. Stook Exchange call -loan rate i s g o i n g rate
en call lpans secured b y oust oners* stook exchange collateral at N e w York City banks. Prima rate
is that charged by large banks on short-term loans to business borrowers of the highest credit
standing.
2J Average of daily rates published b y finance companies for directly placed paper for varying maturities
in the 90-179 day range*
3 / Weekly average of daily effective rate, which is the rate for the heaviest volume of purchase an*
sale transactions as reported to the Federal Reserve Bank of New York.
' N o t e i — H i g h s and lows are for individual series and .may be on different dates for different series#
F o r spreads, high refers to widest* and low to narrowest#




-L.LL-L.LL1 II I L I i-ll-L I I I I I I I I I I I t I I I I I - j 1
.
J
I
JyJ
Exhibit E - Part II

Stock price
index 3/

1961-62 - High
1963 - High
196U - High
Low
Oct.
Nov.
Dec. 4
Dec. 11
Dec. 18 £ /
_

Common
stock
yields 2/
(per cent)

Trading
volume 3/
(millions
of shares)

Stock market customs credit
Customers1
Bank
debit balloans to
ances k/
others" 5/
(In millions of dollars)

72.0ii(12/8/6l|
$2.68(6/22/62)
7U.UU(12/27j
86.28(11/20)
75.50(1/3)

-2.80
3.96
3.01
2.95
3.10

10.1
2.U
6.5
6.1
3.6

5,
u,
7,
7,
7,

5,524(1)
5,185(11)

1,950(11/18)
1,720(1/22)

84.85
85.44
84.35
83.66
84.29

2.95
2.96
3.03
3.05
3.03

4.8
4.9
4.7
4.8
4.8

7,
7,

5,185
5,160

1,916
1,948
1,936
1,936

n.a.—Not a v a i l a b l e . g f P r e l i m i n a r y .
1/ Standard and Poor's composite index of 500 common stocks, weekly closing prices, 1941—43*10*
Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are for
Friday's data only.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing
prices by Federal Reserve. Yields shown are for dates on nhioh price index .reached its high
3f
4/
5/

Averages of daily trading volume on the New York Stock Exchange.
End of month figures for member firms of the New York Stock Exchange which carry margin accounts;
excludes balances secured by U. S. Government obligations.
Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
U. S. Government securities. Weekly reporting banks account for about 70 per cent of loans to
others. For further detail see Bulletin.




h
PRIVATE HOUSING

SEASONALLY

STARTS AND

ADJUSTED

PERMITS

DATA

! IIDH PRlS
UIIG tMI

PER C E N T

OF

UNADJUSTED

TOTAL STARTS

Exhibit F - Part II
Total
Date

Starts
Unadlusted
Type of financing Type o

Seasonally adjustUnadjusted
ed annual rate
FHA

VA

Other

(Thousands of uni*"«^
1963 - Nov.
Dec.
1964 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.

1,577
1,570
1,718
1,657
1,663
1,531
1,529
1,611
1,505
1,430
r/ 1,457
r/ 1,599
p/ 1,420




121
96
100
100
130
149
158
159
143
142
123
142
p/ 109

17
16
11
12
16
18
23
19
20
18
18
19
16

5
5
4
4
5
5
5
6
6
5
5
5
5

98
75
84
84
109
125
129
134
117
119
100
118
88

1-2
family

Building
permits
housing (seasonally
adjusted
Multiannual
family
rate) 2/

76.3
44.1
' 54.0
41.7
58.5
41.0
68.5
31.9
87.0
43.1
96.0
52.4
106.1
51.5
107.2
51.3
96.1
46.6
94.3
47.3
r/83.1 r/39.5
95.9
45.9 r/
n.a. p/

1,359
1,402
1,333
1,404
1,377
1,280
1,271
1,306
1,242
1,281
1.222
1,220
1.257

(I

E H B T O, P r I
XII
ai
YIELDS O N

NEW

AND

SEASONED

CORPORATE BONDS

Exhibit G - Part II
Yields cm New Corporate Bond Issues Adjusted to an Aaa basis
Number Aa't of Issues Average
of
included (mil. yield
of dollars) (per cent)

Mnnrt,ir averages;
1964 - Jan.
3
Feb.
3
Mar.
6
Apr.
1
May
10
8
July
3
Aug.
4 .
Sept.
7
Oct.
3
Nov.
Dec.

150.0
125.0
166.0
130.0
278.0
230.0
60.0
75.0
239.0
70.0

4.50
4.38
4.43
4.48
4.46
4.43
4.37
4.39
4.49
4.46

Number Ain't of Issues| Average
of
included (oil. yield
issues of dollars) j (per cent)
Weekly averages
1964 - Higi
53(5/8)
2°
30(2/21)
Oct.
46
9
44
16

23
30
6
13
20
27
4

11
18

4.46

140

4.47 .

IHHHBIHare



Exhibit H

H.14

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

1964
January
February
March

Corporate
1963

930
685
754

. 613
594
1,144

New Capital
1962

1964

State and Local 2/
1963

f
i
g
1962

549
860
819

B / 946
£/ 772
£/ 809

732
746
976

876
1,133
628

April
May
June s

2,178
1,069
1,378

930
904
1,013

1,153
771
1,132

EA,216
2/ 666
£/ 903

869
866
930

873
912
786

July
August
September

780
661
1,035

676
637
795

573
773
557

£/ 906
£/ 756
£/ 892

680
708
449

612
544
42.7

October
November
December

B/
951
e/
650
e/ 1,150

1,013
819
1,415

819
678
1,064

e/ 850
e/ 550
e/ 700

1 ,051
729
416

1st
2nd
3rd
4th

2,369
4,625
2,476
e/ 2,751

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

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

£/2,527
£/2,785
p/2,554
e/2,100

' 2
' ,454
,665
2;
1 ,837
1
2,
,197

6,994
9,470
e/12,221

5,198
7,307
10,553

5,284
7,186
9,747

p/5,312
B/7,866
e/9,966

,118
5,
6,
,955
9,
>151

quarter
quarter
quarter
quarter

1st half
Three quarters
- Year

.

650
578 •
550
.

2,637
2,571
1,528
1,779
5,208
6,790
8,568

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

quarter
quarter
quarter
quarter

1,996
4,170
£ / 2,226
e/ 2,501

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

2,169
2,970
1,767
2,330

e/10,893
Year
9,236
9.434
e/ Estimated by Federal Reserve.
I / Preliminary.
>
1/ Securities and Exchange Commission estimates of net proceeds.
2/ Investment Bankers Association of America estimates of principal amounts.
3/ Total new capital issues excluding offerings of sales and consumer finance companies.




i •

Exhibit I

H. 14

New Corporate Security Issues, Type of Issue
and Issuer
(In millions of dollars)
Gross proceeds for new

Quarter

2,345
3,317
2,167
2,875
2,700
3,634
2,436
3,466

1,108
1,389
898
1,319

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

2,499
4,851
2,728

978
1,321
792

1,221
1,640
1,442

1,049
1,340
1,246
810
. 756
871
1,116
891
1,459

380
550
459
279
336
283
511
183
626

452
694
675
431
318
501
481
549
751

217
95
113
100
100
87
125
159
83

985
710
805
2,234
2 S - 1,155
June 1,461
July
8 69
728
Aug.
Sept. 1,130
Oct.p/ 1,030
680
Nov.e/
Dec.

338
279
361
383
470
468
234
183
375
181
30

526
342
353
480
537
623
411
433
598
633
600

121
88
91
1 ,372
148
370
225
112
156
217
50

Month
£

1962 - I
II

i

s*

*

£

1963 - I

3

m
IV

I

i 1964 - I .

i

|

in

I

1963 - Apr.
May
3
June
|
July
S
Aug.
%
Sept.
4
Oct.
1
Nov.

i

^
j
#

i

|
J
1
I
j
1

Net proceeds for
1/

Common Memo:
Bonds
Foreign
Publicly Privately pfd. issues
Offered Offered
stock included
1,114
724
508
70
1,386
1,289
642
251
1,006
852
308
55
1,088
1,510
135
277

1964 - Jan.
Feb.
Mar.

Total

Mfg.

Public
Utility

649
996
566
747

429
984
376
552

456
228
274
317

694
848
685
945

128434
109
47

947
591
896
968

326
794
285
530

236
221
150
118

842
1,241
868
1,629

300
1 ,890
494

29
105
85

418
723
547

438
856
642

273
1,663
59

1,240
1,383
1,229

56
182
196
46
21
42
10
10
~27

148
216
227
297
272
237
240
214
515

341
222
230
107
100
78
201
131
198

71
92
58
86
25
39
41
13
64

369
373
499
187
187
441
531
461
637

5
16
8
34
36
35
21
21
44
101
n...

149
123
146
186
206
332
149
164
234
218
200

157
109
83
155
34
174
1,377
151
27
441
258
264
23
207
138
16
19
296 •
306
82
10
50

515
324
400
463
395
525
401
342
486
345
390

287
424
287
367

Communications

Other
issuers

£/ 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 & other transportation,
real estate & finance, & commercial & other.
' Source: Securities & Exchange Commission.




H. 14

Exhibit J
Ottwr Security Offerings
. (In millions of dollars)

1964
January
February
March
April
May
June
- July
August
September
October
November
December
Jan.

- Nov.

Gross long-term If
Federal agency 3/
Foreign government 2/
1963
1963
1962
1964

2

&

£/
e/
e/

232
133
76
57
114
11
63
83

550

Year

^

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

769

4
M
69
30
75
26
20
13
7
180
44

636

771

1962

737

246
156

j

148
186

461

j

459

—

----

275
260
160
£ / 509

e/

--

150
175
174
200

—

--

--

1,167

1,188

1,167

e/1,204

1,188

Ii

New short-term 4/
State and local government 5/
January
February
March
April
May
June
July
August
September
October
November
December
Jan.

- Nov.

£/
£/

£/

103
236
-407
442
81
-80
-9
130
159
26

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

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

n.a.

1,031

539

-78
-336
23
97
183
239
-333
167
1
525
r / 442

E

/ 930

3/

-106
-189
-482
292
195
319
414
327
258
123
-102
551
1,049

247
-156
226
-364
82
284
261
227
-157
379
55
-80
1,084

692
378
U600
Year
1.994
2,/ Preliminary. e/Estimated by Federal Reserve. n.a.-Not available. 1/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 thoae maturing In more than one year. 2/Includes securities offered in the U.S. by foreign governments and'their political subdivisions and international organizations. Source: Securities & Exchange Commission. 3/
Issues not guaranteed by the U.S. Government. Source: Long-term, Securities & Exchange
Commission; short-term* Treasury Dept. & 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 or refunding issues or from other funds. Data include only issues with
original maturing of one year or less. 5/Principelly tax and bond anticipation notes,
warrants or certificates and Public Housing Authority notes. In some instances PHA notes
included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal
 J
Reserve.



lb

H. 14
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)

#

Total

%
!

„
•
,
=
!
t
?
1
7

.963 - Nov.
Dec.
1964 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.

180
547
307
263
335
1,557
452
650
291
142
376
187

Corporaate
Bonds
(other than
Convertible
convertibles)
bonds
-117
-515
60
225
200
35
296
51
235
415
390
178
17
125
269
25
108

Stocks
63
32
22
28
38
1,271
37
260
113
81
79

State
and
local
governments
373
111
577
358
282
698
274
, 284
544
459
558
419
226*

Other

2/

200

50
20
15
275
260
104
15
502
15

Large Individual Issues Offered December 1 through 18
Type 1/

Corporate
Pacific Gas & Elec. Co.
i Stauffer Chemical Co.
j Niagara Mohawk Pwr. Corp.
Granite City Steel Co.
Tennessee Gas Trans. Co.
Bank of California
State and Local Government
Boston, Mass.
N-.w York State Dorm Auth.
Houston, Texas
Stickn-.y Twp. Road Dist. ,
Illinois.
State of Oregon
Nashville & Davidsoi) Co. ,
Met. Govt., Tenn.

Amount
(millions
of
dollars)

Maturity

1st & ref. mtg. bds. 65 .0
.0
Deb.
35,
.0
Gen. mtg. bds.
40.
30,
.0
Conv. sub. deb.
40,
Deb.
.0
20.
,0
Cap.

Coupon
rate or
net interest cost

1966
1989
1994
1994
1984
1989

4-1/2
4-1/2
4-5/8
4-5/8
5
4.55

Offering
yield
4.50
4.48
4.49
4.63
5.00
. 4-55

Rating

Aa"
A
Aa

G.O.
Rev.
G.O.

13.
,1
11.5
27.0

1965-94
1966-95
1966-85

3.20
3.59
3.13

2, 40-3.35^
.
2.
,60-3.67—
2.
,30-3.20

A
A
A

G.O.
G.O.

12.5
30.0

1970-79
1974-90

3.30
3.00

,00-3.30
3.
2.80-3.00

Baa
Aa

G.O.

13.8

1966-90

3.12

2.25-3.20^

Aa




K-2
Large Individual Issues Offered December 1 through 18

Type 3/

Amount
(millions
of
dollars)

State and Local Govt. (Cont'd)
Florida State Bd. of Education
Los Angeles Unif. Sch. Dist.,
Calif.
Public Housing Auth.
Mass. Port Auth.
State of Calif.

GO.

City of Anaheim Stadium
Inc., Calif.
Prattsville Ind. Dev. Bd., Ala.

Rev.-Rent.

Rev.-Rent.

Rev.-Q.

Rev.-Rent.

25.0
25.0
104.0
33.0
100.0
50.0
21.5
27.0
18.0

Maturity

Coupon
rate or
net inter
est cost

Offering
yield'

Rating
<

1965-94

3.30

2.10-3.40

Aa

1966-90
1966-2005
1966-89

3.12
3.22

2.20-3.22
2.15-3.30
2.50-3.65

Aa

1966-91

3.20
3.21

2.20-3.34

Aa

1967-2001
1987
1968-77

3.99

3.15-3.90^

4.05

Aa

8/

Other

*--Rights offering, n.a.--Not available.
1/ Includes corporate and other security offerings of $15 million and over; State & 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 & local govt, securities, G.O. denotes general obligations; Rev.-Ut.j
revenue obligation 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 least payments.
4/ 1/4 per cent bonds maturing 1994 reoffered to yield 4.00 per cent.
5/ 1/10 per cent bonds maturing 1995 reoffered to yield 4.40 per cent.
6/ 1/10 per cent bonds maturing 1990 not publicly reoffered.
7 / Bonds maturing 1967-71 and 1999-2001 not publicly reoffered.
.
8/ Bonds not publicly reoffered.




H. 14

\1

Exhibit L
Forthcoming Large Long-term Public Security Offering for New Capital
(Other than U.S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
(In millions of dollars)
During month following
date shown
State and
Corporate
Other 2J

1
i

1963 - Nov.
Dec.
1964 - Jan.
Feb.
Mar.
Apr.
May

|

!

J

f

29
31
31
28
31
30
28
30
July 31
Aug. 31
Sept.
,30
Oct. 30
Nov. 30

392
305
155
224
1,587
651
600
292
'92
402
186

137
469
316
454
' 669
345
341
539
120
511
500
254
360

90

-——

25
15

15
25

Corporate

Subsequent to
date shown
State and
local govt.

1,992
1,905
1,771
1,649
1,837
844
668
307
167
442
186

--

349
731
667
646
953
575.
598
716
588
680
626
549
563

130

Other 2/
--

25
15

15
25

Forthcoming Large Offerings as of December 18
*

i

J

Issuer

*
Corporate
"onn. Yankee Atomic Pwr. Co.
jTimes Mirror Co.
-State and Local Government
State of Washington
- o Angeles, Calif.
.s
.-State of New Jersey
.?enna State Publ Sch. Auth.
Pittsburgh, Pa.
Jade County, Fla.
7a. State Highway Auth.
Forth Worth, Texas
•Florida Dev. Comm.
Other

Type

Amount
(millions
of
dollars)

Approximate d ite of
offering

1st mtg. bds.
S.F. deb.

40.0
40.0

Jan.
Jan.

Rev.-S.T.
G.O.
G.O.
Rev.-Rent.
G.O.
G.O.
Rev.-Q.tUt.
G.O.
Rev.-S.T.

15.0
15.0
45.0
20.0
35.0
46.0
31.0
14.1
33.8

Dec. 29
Jan. 6
Jan. 12
June 21
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

27
6

•

'^--Included in Table for first time.
If Includes corporate and other issues o£ $15 million and over; State and local government
issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and Development
!
issues and non-guaranteed issues for Federal Agencies.
riote:--Deletions for reasons other than sale of issue: None.




!

11
H. 14
Exhibit M
j

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

Sale
Date

Amount
(millions
of
'
dollars)

Public Offerings

Issuer and Description of Issue
A.

Sold Oct. 1 through December t&

10/27

35.0

United Mexican States—6-1/4% sinking fund bonds
maturing 1979, reoffered to yield 6.43%.

10/29

100.0

Inter-American Development Bank-4-1/2% bonds
maturing 1984, reoffered to yield 4.57%.

11/25

15.0

Republic of Finland--6% bonds maturing 1979 —
reoffered to yield 6.26%.

* 12/15

25.0

* 12/11

20.1

European Investment
—5-1/2% bonds maturing
in 1984, reoffered to yield 4.85% to investors in the
U.S. and 5.54% to other investors.
Home Oil Co. Ltd.—5-1/8% :convertible subordinate
debenture maturing 1984, offered to stockholders
of record November 19 to yield 5.13%.

i
i

1

B. hospective Offerings
'None.

' .
'

_*. .Difference, in reoffering yields on bonds sold to U.S. citizens and those sold to
foreign-^citizens- reflects an upward adjustment of 8.87 per cent in the price paid by
U.S. citizens. This premium was collected by the underwriters in accordance with the
provisions of the new Interest Equalization Tax. This tax is collected--undet a scale
of rates which rises with maturity—when U.S. lenders buy new security offerings from

borrowers in certain designated "developed" countries.



Part II:

Date
reported

Private Placement--Reported Oct. 1 through December 18

Amount
(millions
of
dollars)

10/2

50.0

10/19

7.5

10/20

11/4
11/5

Issuer and Description of Issue

Bell Telephone Co. of Canada--4.60% 1st mtg. bds..
maturing 1989--no information available on takedown*
Province of New Brunswick--4/3-4% sinking funds debenture;
maturijng 1989--no information available on takedown.

5

25.0

The Alberta Government Telephone Commission--4-3/4%
debenture, maturing 1989--no information available on
taked<jton.

;
.

60.0

City of Montreal--5% sinking fund debenture, maturing 2004"*
no information available on takedown.

7.?.

Montreal Catholic School Comm.--5% sinking fund debenture,
maturing 1989--no information available on takedown.

11/11

25.0

Toronto--Dominion Tower, Ltd.--4.85% first mortgage sinking
fund bonds, maturing 1989--no information available on
t^k^down.
i

11/18

29.1

Banco Naclonal Hipotecario Urbano y de Obras Pub1leas,
j
S.A.--promissary notes, maturing 1965-69--no Information 4
available on takedown.
,!
;

|

j

I

Note:
1

For retrospective data on aggregate foreign corporate a i government security
rd
j
offerings in the United States see Exhibits I and J. There is no simple relationship .
t
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
1
j
exhibit are included when reported, frequently with little or no information concerning timing of takedowns. Full or partial takedowns may take place both prior and
subsequent to the data a'placement is reported. *--Included in table for first time.
for FRASER

Digitized


Sources and Uses of Funds by
Life Insurance Companies
Uses of Funds 1/
Total
Business
sources
State &
U.S.
Securities 2/
Other
local MortCash Govt.
Bonds &I Short-term Govt. gages
SecuriStocks I paper
secur
itisa
(In millions of dollars)
End of period:
1,456 6,171
53,468
348
4,037
46,957 20,854 133,291
1962 - Dec.
1,442 5,755 55,997
381
3,876 50,543 22,909 140,903
1963 - Dec.
1964 - 6et.
1,278 5,769
57,861
610
3,866
53,984 24,609 -147,977
Quarter

Changes:
1962 I
II
III
IV
1963

I
II
III
IV

1964 I
III

1963 -Oct. r/
Nov.
Dec.

Memo: Total
Excl. Valuation
Change ^
127,796
134,805
141,098

76
167

172
-28
52
-160

356
557
520
673

320
8
123
-296

149
-15
48
-47

406
514
554
1,233

305
-4
384
587

1,535
1,026
1,757
2,157

1,481
1,442
1,649
1,954

-226
16
103
104

-149
-276
95
-69

434
727
501
890

253
-110
134
-238

4
-89
-62
-16

624
786
893
1,310

920
659
350
158

1,860
1,713
2,014
2,139

1,567
1,572
1,960
1,962

-166
-18

24

-24
-101
154

625
715
479

108
-154
81

-27
-27
24

898
1,025
1,094

750
454
352

2,164
1,897
2,208

1,732
1,718
2,113

-20
-21
119

24
-42
-32

235
274
391

68
109
-411

-13

-173
-6

"4

277
730

io$
-88

m

696

963
285
296
261
-17
270
-159
27
; 2/1964 - Jan.
-2
665
-68
298
298
131
23
-15
Feb.
-8
536
315
-94
156
233
-74
8
!
;
Mar.
-26
225
609
191
365
-42
4
-108
^
Apr.
232
-26
109
636
-44
311
42
12
May
-84
5
349
120
292
652
-101
78
I
June
185
-13
366
859
125
199
5
-9
July
13
-39
122
106
341
105
5
Au
I
8697
241
24
38 7
-65
158
24
-72
?
Sept.
Oct.
194
-4
-18
45
20
424
144
805
r/ Revised.
£/ Preliminary.
1/ Uses of funds represent net changes in assets and therefore reflect net, rather
than gross uses.
2/ Includes securities of domestic corporations only.
3/ Excludes changes in miscellaneous assets (one portion of the "other" in this
table) which includes most, but not all, valuation changes, as well as changes
in a few other items.
Source.--Institute of Life Insurance.
t




651
605
704
774
518
440
526
608
584
970

!M
730

H. 14

Sources and Uses of Funds by
Savings arid Loan Associations
Uses of funds 1/
Total
D. S.
Other
sources
Govt,
securities
(In millions of

Quarter or
Month
End of period:
1962 - Dec.
1963 —Dec.
1964 - Oct,

3,926 5,563 78,770 5,346
3,964 6,440 90,849 6.178
3,416 6,798 99,730 6,829

Changes:
1962 I
II
III
IV

' -130
191
-339
889

312
-115
80
75

1,894
2,798
2,712
2,532

I
II
III
IV

-137
61
-467
581

537
101
144
95

I
II

-351
182
-405

67
32
482

1963

1964

III

1963

Oct. .
Nov.
Dec.

Sources of funds
Net
Borrowing 2/
change
savings
capital
dollars)
3,629
5,011
5,029

Other

93,605
107,431
116,773

80,236
91,205
99,228

29
432
5
105

2,105
3,306
2,458
3,601

1,977
2,530
1,517
3,327

2,272
3,483
3,408
2,916

55
457
39
281

2,727
4,102
3,124
3,873

3,024
3,089
1,523
3,333

-1,028
833
774
803

731
180
827
-263

293
-48
89

2,220
2,998
2,807

55
495
-3

2,217
3,627
2,488

2,320
3,068
1,816

-688
657
85

585
-97
586

74
129
-108

1,118
806
992

82
175
24

1,341
1,142
1,390

795
804
1,734

197
59
547

349
279
-891

-560
587
276 <
470

9,740
11,215
12,5^6

688
189
665
-196

-396
158
604
-189
• Jan.
177
464
-421
134
64
33
710
Feb.
109
916
754
-213
375
12
71
906
135
1,124
Mar.
1,102
-54
76
-146
-16
909
120
Apr.
867
321
278
268
37
-5
993
385
May
1,410
982
-57
485
291
-27
1,096
-10
June
1,350
1,765
436
-851
-456
2
1,044
-192
398
July
16
11
371
1
1,125
773
113
948
15
49
Aug.
-129
73
1,073
836
42
1,017
37
102
Sept. r/
221
-36
773
958
78
835
20
25
Oct. p/
r/ Revised.
jJ Preliminary#
1/ Uses of funds represent net changes in assets and therefore reflect net, rather than
gross uses. Savings and loan associations do not hold business securities and data
on holdings of State and lpcal government bonds, presumed to be small, are not
available.
%J Advances from Home Loan Banks and other borrowing.
Source:--FSLIC




Exhibit P
Sources and Uses of Funds by
Mutual Savings Banks
Uses
Business
securities 2/

Sources af funds
of funds 1/
Total
State and
Mortsources Met
Other
Other
change
local govt, gages
or
uses
In
securdeposits
ities
E
(In millions oi dollars)

I
1
Quarter
1
or
1
S
Month
f End of period:
; 1962 - Dec.
1963 - J)ec.

956
912

6,107
5,863

1964 - Oct.

898

5,849

Changes:
1962 I
II
III
IV

-41
-13
-31
104

371
-235
18
-207

50
-21,
82
26

-44
-51
-19
-36

661
836
844
813

I
II
III
IV

-65
- 1
-42
64

325
-243
-114
-213

-20
-67

-52
-17

-97

-13

I
II

-25
19
-23

254
-93
58

78
-6
47

-16
-15

-29

-8

101

-177
-14
-22

-22
-76
1

-63
32
6
-68
28
59
-43
32
-12
15

88
82
84
-53
-12
-28
1
70
-13
-233

15
47
16
-13
12
-5
-3
37
13
-15

1963

1964

ni
1963 - 0ct.
Nov#
Dec.
!

1964 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.

U.S.
Cash Govt.
ities

5,177
5,074
5,178

81

32,056 1,297 46,121 41,336
36,007 1,406 49,702 44,606
39,538 1,616 53,482 47,982

4,785
5,096

32

1,068
524
967
733

806
559
816
878

261
-33
150
-146

1,069
950
888
1,043

57
-28
117
-36

1,315
592
927
747

970
666
740
894

344
-73
186
-146

926
1,037
1,173

124
17
80

1,339
959
1,338

1,155
862
1,133

183
207

-2
-3
-8

369
321
353

-40
38
-34

97
260
390

198
118
576

-100
142
-188

-13
-3
-1
-4

345
283
298
334
333
370
436

93
5
26
-64
75
6
26

477
435
427
135
433
391
416
$65
357
143

400
260
495

77
175
-69
47
161
-109
122
210
-125
-83

527

440
403

-5

"

-10
-2
2
-6

355
382
392

69
10
71

71
-17
-10

90

272

500

294
356
483
226

5,500

99

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





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102