Full text of H.16 Capital Market Developments : February 24, 1959

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Not f o r Publication DECONTROLLED AFTER SIX MONTHS
H.lli

February 2k, 1959.
CAPITAL MARKET DEVELOPMENTS
(Including Monthly Review of Sources and Uses
of Funds 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 new corporate s e c u r i t y f i n a n c i n g continues t o
be small while S t a t e and l o c a l government f i n a n c i n g i s heavy. During
the week ending February 20, only one l a r g e corporate i s s u e f o r #25
m i l l i o n was sold and S t a t e and l o c a l governments sold l a r g e i s s u e s
amounting t o $228 m i l l i o n . A f o r e i g n government bond i s s u e f o r $15
m i l l i o n was a l s o s o l d . The calendar f o r t h i s holiday-shortened week
includes corporate o f f e r i n g s t o t a l i n g $6? m i l l i o n and S t a t e and l o c a l
government i s s u e s with aggregate proceeds of $179 m i l l i o n .
Bond y i e l d s - Yields d e c l i n e d l a s t week f o r a l l c a t e g o r i e s
of outstanding bonds, except those f o r high-grade corporate bonds,
which remained s t a b l e . The decline was s u b s t a n t i a l f o r y i e l d s on S tate
and l o c a l government bonds, but s l i g h t f o r those on U. S. Government
and lower-grade corporate bonds.
A new Aa-rated, f i r s t mortgage e l e c t r i c u t i l i t y i s s u e was
o f f e r e d t o i n v e s t o r s t h i s week t o y i e l d k»35 per cent—30 b a s i s points
below t h a t f o r a comparable o f f e r i n g made i n l a t e January. The recent
i s s u e , however, c a r r i e d a 5-year nonrefundable provision while the
e a r l i e r one d i d not have such a r e s t r i c t i o n .
Stock p r i c e s - Stock p r i c e s and t r a d i n g a c t i v i t y increased
s u b s t a n t i a l l y l a s t week. Standard and P o o r ' s index of 500 common
stocks closed a t 55.52 on February 20, 2 p e r cent zagher than a week
e a r l i e r , but s t i l l below the peak of 56.01* reached in January. Trading volume averaged 3.7 m i l l i o n shares a day.
I n s t i t u t i o n a l i n v e s t o r s - In December, l i f e insurance company
a s s e t s and share c a p i t a l a t savings and loan a s s o c i a t i o n s continued to
i n c r e a s e more r a p i d l y than a y e a r e a r l i e r , while the i n c r e a s e i n deposits
of mutual savings banks was s l i g h t l y l e s s f o r the f i r s t time i n 1958.
The investment p a t t e r n of t h e s e i n s t i t u t i o n s showed l i t t l e change i n
December from t h a t of other r e c e n t months as holdings of mortgages
g e n e r a l l y continued t o i n c r e a s e r a p i d l y and'growth in holdings of b u s i ness s e c u r i t i e s was moderate.




v

R.Ik

- 2 Sources and Uses of Funds of Major Types of Savings I n s t i t u t i o n s ] /
1953 - 1958
( I n m i l l i o n s of d o l l a r s )

Year

Cash

U. S.
Govt.
ities

Uses of Funds
Business
Mortgages
ities

State &
local
govt,
sec.

Other

Sburces of funds
Total
sources Net bhange
i
n
deposits Borrow- Other
and
ing
or savings
uses
capital

L i f e I n s u r a n c e Companies
71
177
111 -526
18 - 1 , 0 2 6
-476
55
-7U6
5
80
-428

2,182
2,195
1,972
2,126
2,280
2,792

1,826

2,241
3,569
3,197
?,653

2,030-

124
236
165
555
152

1,246
950
808
832

1,120
5ia

6,110
5,298
5,577
6,199
5,867
5,167

Savings and Loan A s s o c i a t i o n s
1958
1957
1956
1955
1954
1953

1*23
27
52
87
501
190

6k8
391
ao
321
101
133

—

5,550
4,275
4,268
5,267
4,232
3,566

n.a.
n.a.

355
571
1*08
320
171*
189

6,976
5,263
5,156
5,983
5,003
4,073

6,011*
4,761*
4,956
4,858
4,488
3,651

72
32
-211
#8
-67
83

#0
467
1*11
527
#2

„
''
, i'
-!|

Mutual Savings Banks
1958
1957
1956
1955
1954
1953

34
-30
-45
-6l
43
65

-323
-419
-1*89
-288
-1*36
-238

607
808
177
-178
230
388

2,072
1,1*22
2,281*
2,1*29
2,050
1,556

1*0
13
32
37
193
82

117
63
78
57
. 68
1*1*

2,51*7
1,857
2,037
1,998
2,11*6
1,897

1 / For d e s c r i p t i o n of d a t a see E x n i b i t s J , K and L.
n.a.—Not a v a i l a b l e .




2,326
1,663
1,845
1,828
1,961
1,777

__

—

221
194
#2
1#
186
120

,
V
''
;;

H.lit
For the year 1958, the combined growth i n savings a t these
t h r e e major savings i n s t i t u t i o n s — l i f e insurance companies, savings and
loan associations and mutual savings banks—was nearly one-fourth l a r g e r
than f o r the previous year. ($lli.5 b i l l i o n in 1958 compared with #11.7
b i l l i o n in 1957.) Savings increased more rapidly than in 1957 a t each
of the i n s t i t u t i o n s , with mutual savings banks showing the l a r g e s t p e r centage increase. Growth i n time and savings deposits a t commercial
banks was o n e - f i f t h g r e a t e r than in 1957. These deposits had increased
very rapidly early in 1958 but i n l a t e months of the year, increases
lagged behind 1957 r a t e s .
The increase in l i f e insurance company a s s e t s i n 1958 amounted
t o $6.1 b i l l i o n , 15 per cent more than i n 1957, r e f l e c t i n g i n part an
increase in the market value of stock p o r t f o l i o s . In most months of
1958, the increase in a s s e t s was somewhat l a r g e r than the comparable
month of 1957; the December increase was p a r t i c u l a r l y sharp, about f i v e s i x t h s above the r i s e a year e a r l i e r . Nearly half of the December
increase i s accounted f o r by an increase in valuation reserves. (This
i s r e f l e c t e d in the unusually l a r g e increases i n business s e c u r i t i e s
and "other" a s s e t s c a t e g o r i e s . ) Without t h i s adjustment, growth i n
l i f e insurance company a s s e t s in 1958 would be much more moderate—onet w e l f t h greater than i n 1957. Holdings of U. S. Government s e c u r i t i e s
increased l a s t year in contrast to. net l i q u i d a t i o n in other recent years.
Although l i f e insurance company a c q u i s i t i o n s of mortgages were l a r g e r
in the l a s t quarter of the y e a r than in the comparable quarter of 1957,
net a c q u i s i t i o n s f o r the year 1958 were o n e - f i f t h smaller than a year
e a r l i e r . The increase in holdings of business s e c u r i t i e s was about
the same as in 1957. Net a c q u i s i t i o n of State and l o c a l government
s e c u r i t i e s was much more rapid l a s t year than a year e a r l i e r .
The net increase in share c a p i t a l a t savings and loan a s s o c i a t i o n s was l a r g e r i n each month l a s t year than in 1957 with the t o t a l
f o r the year being a record $6.0 b i l l i o n , one-fourth l a r g e r than a year
e a r l i e r . Associations increased t h e i r indebtedness to Home Loan Banks
in the second half of 1958 a f t e r s u b s t a n t i a l debt repayment e a r l i e r i n
the y e a r . Mortgage holdings were increased more rapidly in each month
of 1958 a f t e r hay, with the t o t a l being 30 per cent g r e a t e r than i n 1957.
The increase in holdings of U. S. Government s e c u r i t i e s was nearly twot h i r d s greater than a year e a r l i e r , l a r g e l y r e f l e c t i n g the s u b s t a n t i a l
a c q u i s i t i o n s made in the second half of the year.
The growth in deposits a t mutual savings banks was a record
$2.3 b i l l i o n , t w o - f i f t h s g r e a t e r than in 1957. Net l i q u i d a t i o n of U. S.
Government s e c u r i t i e s , although s u b s t a n t i a l , was o n e - f i f t h l e s s than a
year e a r l i e r . Acquisitions of mortgages were very large throughout
1958, t o t a l i n g $2.1 b i l l i o n as compared with #l.li b i l l i o n in 1957. In
c o n t r a s t , the increase in business s e c u r i t y p o r t f o l i o s was one-fourth
smaller in 1958. Early in t h e year, a c q u i s i t i o n s of these s e c u r i t i e s
were l a r g e , but a f t e r May holdings increased only s l i g h t l y .




H.lii

- k

More d e t a i l e d information concerning recent c a p i t a l market
developments i s presented in the attached 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 the Federal Reserve System.




;
HIGH-GRADE

BOND

YII1PS

V\/

U.S. GOVHWMMr

y—^

LOWER-GRADE

BOND

YIELDS

/\




(

H.lli

Exhibit b
Tables f o r Exhibit A
High-grade Bond Yields

Date

U. S. Govt,
long-term 2 /

Corporate
Aaa 1 /

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

S t a t e and
l o c a l govt.
Aaa y

( P e r cent)
1951* — Low
1957 - High
1958 - H i g h
Low
1959 - High
Low

2.85
4.14
4.13
3.55
4.16
4.09

Jan.
Jan.
Feb.
Feb.
Feb.

4.12 •
4.16
4.15
4.14
4.14

23
30
6
13
20 e /

(4/23)
(9/27)
(10/10)
(5/2)
(1/30)
(1/9)

2.45
3.76
3.84
3.07
3.96
3.83

(8/6)
(10/18)
(12/26)
(4/25)
(1/16)
(1/2)

1.90
3.45
3.31
2.64
3.20
3.13

3.96
3.94
3.93
3.92
3.91

(9/2)
(8/29)
(9/11)
(5/1)
(2/5)
(2/19)

3.19
3.20
3.20
3.18
3.13

.30
.60
.51
.22
.27
.16

.30
.47
.72
.34
.78
.65

.16
.22
.22
.22
.23

.77
.74
.73
.74
.78

Lower-grade Bond Yields
Spread between
Aaa and Baa
State and
Corporate
l o c a l govt.

Corporate
Baa 1 /

State and
l o c a l govt.
Baa y

1954 - Low
1957 - High
1958 - High
Low
1959 - High
Low

3.44
5.10
4.96
4.51
4.90
4.85

2.93(8/5)
4 . 5 1 (0/29)
4.34 ( 9 / 1 1 )
3.64 ( 5 / D
4.13 ( 2 / 5 )
4 . 0 5 (2/19)

. .52
1.27
1.28
.77
.77
.74

.96
1.21
1.11
.93
.98
.89

Jan.
Jan.
Feb.
Feb.
Feb.

4.88
4.90
4.90
4.90
4.89

4.10
4.13 ~
4.13
4.11
4.05

.76
.74
.75
.76
.75

.91
.93
.93
.93
.92

Date

(Per cent)

23
30
6
13
20 g /

(12/31)
(11/29)
(1/3)
(7/11) ,
(2/13)
(1/9)

2 / Preliminary.
1J Weekly average of d a i l y f i g u r e s . Average term of bonds included i s 25-26 y e a r s .
2 / Weekly average of daily f i g u r e s . The s e r i e s includes bonds due or c a l l a b l e in
10 years or more.
J / Thursday f i g u r e s . Only general obligation bondc are included; average term
i s 20 y e a r s .
Note.—highs and lows are f o r individual s e r i e s and may be on d i f f e r e n t dates f o r
Digitizedd for
i f f e FRASER
rent series.



STOCK

MARKIT
—

—

[

I"-

-

1

.1 0. II.,.

"V

v / V




V a
y
S10CI NAtltT CIIDIT

X.

1

— 1 —

/ v

- -

Exhibit D
Table f o r Ex] l i b i t C
Stock Market
Stock p r i c e
index 1 /

Date

Trading
Conunon
vol.ume 2 /
stock
(millions
yields 3/
of shareo) ( p e r c e n t )

Stock market customer c r e d i t
Customers 1
Bank
debit bal- loans to
ances 4 / " o t h e r s " $ /

Total

( M i l l i o n s of d o l l a r s )
1953 - High
Low
1954 - High
Low
1 9 # - High
Low
1956 - High
Low
1957 - High
• Low
1958 - High
Low
1959 - High
Low

26.5k
22.95
35.98
21.93
45.89
35.28
49.64
1)3.22
49.08
39.18
5U.11
10.37
56.00
54-37

December
January
Feb. 6
Feb. 13
Feb. 20 2 /

53.2*9
55.82
54.37
54.42
55.52

'

(1/2)
(9/16)
(12/31)
(1/8)
(12/9)
(1/lU)
(8/3)
(1/20)
(7/12)
(12/20)
(12/26)
(1/10)
(1/23)
(2/6)

4.9
1.7
4.2
3.0

5.38
6.25
4.32
5.82
4.08
4.4l
3.82
k.Vi
3.91
U-72
3.30
4.58
3.19
3.34

- 2,165
2,055
3,1*36
2,105
4,030
3,537
4,047
3,914
4,031
3,576
^492
3,554
n.a. |
n.a.

1,665
1,314
2,388
1,653
2,805
2,517
2,823
2,740
2,987
2,4#
3,285
2,467

3.6
4.0
3.2
3.0
3.7

3.35
3.24
3.34
3.35
3.28

4,492
4,554
n.a.
n.a.
n.a.

3,285
3,297

2.5
0.9
3.7
1.4
4.6
1.5
3-1
1.5
li.2
l.h

n.a.

n.a.

780
664
1,048
746
1,241
1,018
1,267
1,155
1,163
1,054
1,317
1,051
1,259 .
1,210
1,207
1,257
1,251
1,259

• n . a . —Mot a v a i l a b l e .
o/"Preli:ninary.
1 / Standard and Poor's composite index of $00 common stoc::s, vv.ehly cloning
p r i c e s , 191*1-^3=10. Monthly data are averages of daily f i g u r e s r.-iUiur than of
Fridays' only. Highs and lows are for I'riday 1 s data only.
2/ Averages of d a i l y trading volume on the New York Steele Exchange.
2 / Standard and Poor's composite stock y i e l d based on Wednesday data converted t o weekly c l o s i n g p r i c e s by Federal Reserve. Yields shown are for dates
on which price index reached i t s hirh or low.
b/ End of month f i g u r e s for member firms of the iiew York -'"itock Exchange which
carry margin accounts; excludes balances secured by U. S. Government, o b l i g a t i o n s .
5 / Wednesday f i g u r e s f o r weekly reporting memt-er banks. Excludes loans f o r
purchasing or carrying U. S. Government s e c u r i t i e s at banks in 1'iow York and Chicago.
Weekly reporting banks account f o r about 70 per cent of loans to others. l ; or
f u r t h e r d e t a i l see Mulletin.
Note.—Highs and lows "are f o r individual s e r i e s and may l<3 on dif'fer.mt dates
for different series.




Exhibit E

H.Ik

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

1959
January
February
March

1

e/700
e/650

New c a p i t a l
Co m o r a l e 1 /
S t a t e and l o c a l 2 /
195b
1
1957
1959
1
1958
1
1957

J

y

1,060
1,065
1,320

7k2

E/629
2/800

%

April
May
June

l.lUl
600
881

•'8
l,k53

July
August
September

1,102
538
i,ia

1,003
924
973

651

858
1*73
91U

1,090
789
1,076

k56
k7k
k35

698

2,276
2,2a
1,660
1,365

1,820

October
November
December
1st
2nd
3rd
kth

quarter
quarter
quarter
quarter

.

1st half
Three quarters
Year

3,135
2,622
2,78k
2,250

3,lk9
2,899
2,95k

5,757
s,sa
10,791

6,59k
9,193
12,a?

3,hU$

798
. . g
806

393
529
58k
k31

1^5kk
2,029

1,520
7 ^

i s
7,099

Excluding finance companies U/
1st
2nd
3rd
kth

quarter
quarter
quarter
quarter

Year

2,89b
2,583
I'M
n,ko5

3,237
2,889
2,582
2,810
11,518

1 / S e c u r i t i e s and Exchange Commission estimates of n e t proceeds.
2 / Investment Bankers A s s o c i a t i o n of America estimates of p r i n c i p a l amounts.
3 / Includes $718.3 m i l l i o n AT&T c o n v e r t i b l e debenture i s s u e .
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.




Exhibit F

ii.IU

Other Security Offerings 1 /
(In millions of dollars)
Long-term
Federal agency 3 /
Foreign government 2/
19^5"
1958
I
1957 * ^ l " 1 9 3 T
1958
I W
January
February
March

196
53

April
May
June

139
198
120

123
1*8
1*2

9
5
17

28
7
30

—

58
123
71*

1*
60
1

1*1*
5
21

July
August
September
October
November
December
Year

—

992

.

81*
149
30

507

37
8

1,163
251

72

523

125

50

2
39

300

161*

April
May
July
August
September
October
November
December
Year

109

215
220

2,321

'
Short-term
fetate and l o c a l government U/
January
February
March

60

60

. 95

100
169

572
Federal ap,ency3/

233
1*60
273

326
155
iii7

196
357
21*9

371
208
11*1*

638
1*30
505

I26k

205
337
153

125
252
176

209
161
329

501

260

289
1*23
369

272
272
252

195
207
179

1*37
206
330

221*

370
512

222
1*25
273

105
E/2U1

1*59

11*8

137

1,238
255
116

1*07
222
128

E/3,909

3,274

2,706.

3,098

5,5U3

3,157

=52

29l*
328

h$k

3)6
1*69

380
220
283

s

8/ Estimated.
jd/ Preliminary.
1/ Data presented in t h i s exhibit d i f f e r from those i a Kjdiibit E in that refunding i s s u e s , ft0 well as new capital issues, are included. Long-term s e c u r i t i e s are defined as those maturing in moro t H n one year.
2 / Includes securities offered in the United Statew by foreign governments and
t h e i r subdivisions and by international organizations. Source1 Securities and Exchange Commission.
2 / Issues not guaranteed by the U, S. Government. Sources long-term, Securities
and Exchange Commission; short-term, Federal Reserve.
h/ Principally tax and bond anticipation notes, warrants or c e r t i f i c a t e s and Public
HousingAuthority
notes. In some instances PHA notes included may have a somewhat
Digitizedlonger
for FRASER
t e m than one year. Source 1 Bond Buyer.



H.lli

Exhibit 0
Large Long-term Public Security Issues f o r New Capital
(Other than U. S. Treasury) 3 /
Proceeds of Large Issues Offered
(Millions of dollars)

Month

Corporate

1957 - December
1958 - January
February
March
April
May
June
July
August
September
October
November
December
1959 - January

399
318
605
1,093
725
356
281
771
209
825
259
227
305
369

State and
l o c a l government
404
1*10
553
182
300
505
195
275
109
288
172
259
229
335

.

Other 2 /

1,357
266
653
164
86
ill
18
209
100
79
75

Large Individual Issues Offered February 1 through 20
Issuer

Type y

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

Hating

CORPORATE
Southern Co.
Com. stk.
Universal Oil Processes,3nc Cap. stk.
Avco Manufacturing Co.
Conv. deb.
Reynolds Metals Co.
Conv.pfd.stk .
Consolidated Edison Co.
Conv. deb.
Public Service Co. of Ind. 1st mtg. bds .

1*5.3
72.5
14.9
55.0
59-6
25.0

1979

5

5.00

Ba

1973
1989

4
4 3/8

4.00
4.35

A
Aa

SPATE AND LOCAL GOVERNMENT
Milwaukee Co., Wisconsin
Los Angeles, California
Massachusetts Port Auth.
Louisiana Dept. of Highway!
State of Minnesota
State of Washington
St. Louis, Missouri




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

14.0
11.0
50.1
20.0
22.9
34.9
12.6

1960-74
1960-79
1998/64
1960-81/68
1964-76
1960-79/69
1965-78

2.70
3.47
4.86
3.50
2.96
3.19
3.05

1.80-3.00
1.90-3.60
4.75
1.90-3.60
2.40-3.10
1.80-3.35
2,55-3.10

Aaa
Aa
A
Aa
Aa
Aa

!l

H.lU

G-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 February 1 through 20 ( C o n t ' d )

Issuer

Type 2 /

Coupon
Amount
rate or Offering
(millions Maturity
yield
of
net i n t e r dollars)
est cost

Rating

-

STATE AND LOCAL GOVERNMENT
(Cont'd)
Chicago, I l l i n o i s
Monroe Co. Wtr. Auth.,N.Y.
Los Angeles Co. Flood
Control D i s t . , C a l i f .
E a s t Bay M u n . U t . D i s t . , C a l .
S t a t e of New York

Rev.-Ut.
Rev.-Ut.

120.0
13.2

1999/65
1961-99/69

G.O.
G.O.
G.O.

10.0
25.0
60.0

1960-9h/lS

1960-89
1960-79 '

h.86

k.06

k.75
2.30-k.lO

2.92

2.15-3.75
1.85-3.60
1.70-3.00

5 1/2
5 1/2

5.75
5.70

3.3k
3-bS

Aa
Aa
Aaa

OTHER
Kingdom of Denmark
Empire of Japan

E x t . l o a n b d s . 20.0
E x t . l o a n bds. 1 5 . 0

197k
197k

n.a.—Not available.
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 and 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 o v e r .
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 Bank 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 c a s e 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 ; R e v . - U t . , revenue o b l i g a t i o n s secured only 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 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 s e c u r e d 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 s e c u r e d s o l e l y by l e a s e payments.




Exhibit M

H.1U

Forthcoming Large Long-term Public Security Offerings f o r New Capital,
(Other titan U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
Date of
computation

1957 - Nov. 29
Dec. 31
1958 - Jan. 31
Feb. 26
Mar. 31
Apr. 30
May 29
June 30
July 31
Aug. 29
Sept. 30
Oct. 31
Nov. 28
Dec. 31
1959 — Jan. 30

During month following
date shown
S t a t e and
Coiporate l o c a l povt. Other 2 /
383
378
198
1,123
555
356
266
768 .
161
785
113
20k
301
210
270

363
315
370
13li
298
1*93
177
225
55
21*1
295
258
229
261
551

Subsequent t o
date shown
S t a t e and
Corporate l o c a l govt. Other 2 /

18
150
110
150
36

71
75
1*5

1,193
1,161
1,378
1,208
670
561
1*61*
1,01.8
381
91U
216
326
1*01
370
365

558
561*
1*87
3U
330
1*93
208
235
125
U35
521*
675
683
.515
856

63
165
110
150
36

71
75
1*5

Forthcoming Large O f f e r i n g s , as of February 20
Issuer

Type

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

CORPORATE
Connecticut Light and Power Co.

Feb. 2l*
( r i g h t s expire)
Feb. 25
Mar. 11
Mar. 11
Mar. 12
( r i g h t s expire)
^Colorado I n t e r s t a t e Gas Co.
1 s t mtg. p. 1. bds.
33.0'
Mar. 12
•^Cleveland E l e c t r i c I l l u m i n a t i n g Co.
1 s t mtg. bds.
25.0
Mar. 25
Montana Power Co.
1 s t mtg. bds.
20.0
Winter
Commerce Oil Refining Corp.
Deb., bds. and common 1*5.0
Winter
I l l i n o i s Bell Telephone Co.
Northern Indiana Public Service Co.
*KLM Royal Dutch A i r l i n e s
American Natural Gas Co.




Common s t k .

17.2

1 s t mtg. bds.
1 s t mtg. bds.
Conv. sub. deb.
Common s t k .

50.0
25.0
17.0
30.0

H.lit
Forthcoming Large O f f e r i n g s , a s of February 20 ( C o n t ' d )
type

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

STATE AND LOCAL GOVERNMENT
San Antonio, Texas
S t a t e of Michigan
Chicago, I l l i n o i s
P u b l i c Housing A u t h o r i t i e s
. Memphis, Tennessee
P h i l a d e l p h i a , Pa.
New York, N. Y.
Metro. Water D i s t . of So. C a l i f o r n i a
S t a t e of C a l i f o r n i a
^General S t a t e Auth. of Pa.
^ B u f f a l o , New York
Chesapeake Bay Ferry Commission
D e t r o i t - M e t r o . Expressway
S t a t e of New J e r s e y

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

10.8
25.0

1*0.0

103.0
10.0
25.5
26.3
26. U
100.0
30.0
10.2
ia.o
35.0
25.0

Feb. 2k
Feb. 2k
Feb. 25
Feb. 26
Mar. 1
Mar. k
Mar. 10
Mar. 10
Mar. 11
Mar. 31
Apr.
Winter
Winter
Winter

OTHER
None
*—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 c o r p o r a t e 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 o v e r .
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 Bank 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 .
N o t e . — D e l e t i o n s f o r r e a s o n s o t h e r t h a n s a l e of i s s u e : None.




Exhibit I

H.lU

Yields on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /

Date
1952 - 1957
High
Low
1958

January
February
March
April
May 7
13
15
16
20
21
22
28
June 10
17
25
July 2
9
18
23
Oct. 7
15

29
Dec. 17
1959 - Jan. 7
20
28
Feb. 18

Aa-rated offering yields A-rated offering yields
Amount above
Amount above
Actual
Actual
seasoned yields
(per cent) seasoned y i e l d s (per cent)
(basis points)
(basis points)
S.oo(8/Ui/57)
2.93(3/31/511)

87
-3

5.50(11/7/57)
3.00(3/17/51)

123
-15

it. 08
3.91

-8
22
35
18

3.90

21

3.96^
U.07
It. 16
it.01
Loo

3
9
-1
8
3

3.85
3.65

16
16

lt.07
it. 35

it
32

3.82

17
12

it. 00
3.95

-1
-6

3.85
3.95

2k

LOO
it. 10
it. 10
li.57
it. 50

25
28
29
25
22
12
lit
23

£

>

h.hh

It. 60

i:36!/

3.98^

1
31

it. 7 $

23

g
k

*—Single observation, not an average.
1 / Covers only 30-year f i r s t mortgage bonds, as reported in Moody's Bond
Survey. Except where i n d i c a t e d , the actual y i e l d f i g u r e and the amount above
seasoned y i e l d s are averages of o f f e r i n g s during the indicated period and of the
d i f f e r e n c e s 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 on 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 the 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-year 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 include one or more
i s s u e s with 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 .




Exhibit J
Sources and Uses of Funds by L i f e
Insurance Companies
(In m i l l i o n s of d o l l a r s )

Cash

-127
-37
-1*2
28
-18
59
-9
-30
47
-17
22
138

1957 - Jan. Zl
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
a t End of Year
1958 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
a t End of Year

1,29k

-93
-51
20
-17
7h

1

• -20
20
-17
-1
-19
52
123
1,365

U. S.
Govt.

S t a t e and
l o c a l govt, Mortgages
securities

Total
sources
or uses

ities

Business
securities

65
-33
-109
11
-79
-62
5
-32
-32
13
-92
-181

202
I69
200
172
169
181*
321*
163
198
2l*l*
212
258

7,028

1*2,133

2,377

35,271

13,206

101,309

171
15
-119
11
-70
1*7
175
1*2
7
12
25
-139

221
106
277
208
135.
19l*
182
.128
201
303
133
391*

51
10
23
13
28
35
21*
36
19
25
31
13

191
125
11*0
113
116
101*
123
11*0
139
186
11*6
303

111
11*1*
60
19
167
11*0
1*6
11*7
71*
53
100
185

652
31*9
1*01
31*7
1*50
500
570
1*76
1*39
560
1*87
879

7,205

11,615

12
9
10
26
2
11*
11
7
13
10
10

2,685

286
205
197
172
186
11*1*
163
195
151*
170
132
237

37,097

Other

525
1*51
357
1*27
1*19
392
581*
381*
1*67
1*29 •
391*
1*69

87
11*7
102
31*
135
65
87
77
93
6
110
.
7

Hi, 2*52

1959 - Jan.
Feb.
Mar.
1/ Uses of funds represent net 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 gross, uses.
2 / Adjusted to eliminate t h e e f f e c t of a change i n estimating procedures.
Source: I n s t i t u t e of L i f e Insurance.




Exhibit K
Sources and Uses of Funds
by Savings and Loan Associations
(In m i l l i o n s of d o l l a r s )
Uses of Funds 1 /
U. S.
Govt. MortCash
gages
2/
ities
• Jan.
Feb.
Mar.
Apr.
May

-171
-40
-24
-49
39
185
-320
-103
11
-18
86
431

-40
4i
24
26
-5
, 23
-65

of Assets
d of Year

2,146

3,173

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

-119
173
209
116
38
177
-297
-70
-78
-108

44
-19

338

hi1

Value of Assets
a t End of Year

2,569

July
Aug.
Sept.
Oct.
Nov.
Dec.

1958

1U3
115
89
26
11a

220
259
357400
166
421
1*07
I460
357
4l6
278
253

Other
assets

-20
56
86
115
m o

Total
sources
or uses

172
390
508
492
639
597
34

Sources of Funds
Net
change
Borrowsavings
ing 3 / Other
capital
. 337
308
352
308
. 1*52
821
-52
252
32U
361
378
923

-211
-69
-19
11
21
101
-37
37
47
16
10
125

46
151
175
173
166
-325
123
151
79
103 '
59
-434

31
-9k
59
56
87
60
-5

150
U80
447
614

2,770

W,138

111,912

1,379

4,847

107
50
37

247
335
398
526
582
533
557
574
605
, 465
532

12
8
10
102
100
-37
-80
9
42
131
102
-44

131
409
553
654
679
803
196
607
685
735
661
863

450
373
484
3#
508
937
62
353
440
501
477
1.073

-377
-127
-89
113
-32
169
-39
• 55
85
58
41
215

58
163
158
185
203
-303
173
199
160
176
143
-425

3,821

45,599

3,125

55,114

47,926

-1

38
13
81
ho

111
lh7

40,049

19h

hhO

1,451

5,737

1959 - Jan.
Feb.
Mar.
2 / Preliminary.
1 / 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, 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 S t a t e and l o c a l government bonds, presumed t o be small,
are not available.
2 / 1957 data a d j u s t e d t o include mortgage pledged shares as c u r r ently r e p o r t e d .
3/ Advances from Home Loan Banks and o t h e r borrowing.
Source: Federal Savings and Loan Insurance Corporation.




Exhibit L

H.Ik

Sources and Uses of Funds by
Mutual Savings Banks
( I n m i l l i o n s of d o l l a r s )

Cash

U. S.
Govt.
ities

- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
of A s s e t s
id of Year
1958 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of A s s e t s
a t End of Year

-89
13
-56
12
71
-73
-1*2
27
-21*
6
125

21
20
18
-76
-19
-72
-7
11
-17
-136
-136
-26

890

7,552

-60
63
36
-1*7
-5
1*2
-66
-5
18
-8
-38
10k

-21
1*1
-85
-62
-36
11
19
-27
-92
-32
-39

921*

7,229

Uses of hinds 1 /
Sources of Funds
S t a t e and
Net
BusiTotal
local
ness
change
Mort- Other sources
Other
govt.
gages
or uses
in
ities!/
deposits
ities
68
51*
83
63
62
72
62
61
55
60
93
75

6
1
2
2
-1
7
-3
2
-3
7
-7

136
-5
27
92
127
32
-20
121
62
127
118
-38
122
-29
28
111
103 - .1,18
12l* ^ - l a
100 . 38
11*1
-9

4,331

682

20,951

160
86
86
97
120
-2lt
31*
8
31*
-6

23
1*
6
1*
-19
21*
8
2
2
-3
-1
-10

130
99
165
151*
195
253
193
198
181
195
151
158

12
k,938

722

#,023

137
19U
273
31*
21*6
150
82
166
188.
-20
108
299

761 35,168

25
20
9
-29
1*0
5
-28
29
29
-1*6
1*3
20

278
251
31*3
' 9h

269
261*
152
251
237
1*0
123
21*5

8%8 37,715

85
112
238
7
I69
265
16
90
206
31*
36
1*05

52
82
35
27
77
-115
• 66
76
-18
-51*
72
-106

31,695

3,1*73

231*.
11*9
336
93
181
300
88
11*3
267
95
1*2
398
31,021

1*1*
102
7
1
88
-36
61*
108
-30
-55
81
-153
3,691*

1959 - Jan.
Feb.
Mar.
1 / Uses of f u n d s r e p r e s e n t n e t 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 g r o s s , u s e s .
2 / I n c l u d e s Canadian government and p o l i t i c a l s u b d i v i s i o n s , I n t e r n a t i o n a l Bank
f o r R e c o n s t r u c t i o n and Development, non-guaranteed F e d e r a l agency and o t h e r bonds a s
w e l l a s c o r p o r a t e bonds and s t o c k s .
Source: N a t i o n a l A s s o c i a t i o n of Mutual Savings Banks and F e d e r a l Deposit I n s u r ance
orporation.
Digitized
forCFRASER