Full text of H.16 Capital Market Developments : January 22, 1962

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r
Not f o r I^blication-nannMTRnTJ.m AFTER SIX MOUTHS
January 22, 1962.

H.lU
1 CAPITAL MARKET DBVh&OPMMTS
1
iiTfHEr UNITED STATES
JA;V
-I*-

^ icluding Monthly Review of Sources and Uses
of F i n a n c i a l Intermedia r i e s )

y.; L.uNX

iC«NO

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 o b t a i n new c a p i t a l
was r e l a t i v e l y l i g h t l a s t week but i s expected t o be q u i t e s u b s t a n t i a l
t h i s week. During t h e week ending January 19, one l a r g e c o r p o r a t e
s e c u r i t y i s s u e f o r $20 m i l l i o n was 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 a g g r e g a t i n g $67 m i l l i o n were s o l d . This week,
ending January 26, 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 $86
m i l l i o n a r e scheduled t o be o f f e r e d , t h r e e S t a t e and l o c a l i s s u e s w i t h
p a r value of &13L . l i l l i o n a r e on t h e c a l e n d a r ana the Tennessee Valley
A u t h o r i t y i s p l a n n i n g t o s e l l »U5 m i l l i o n i n bonds.
•
„
The Federal N a t i o n a l Mortgage A s s o c i a t i o n and t h e Government
of A u s t r a l i a a r e a l s o o f f e r i n g *200 m i l l i o n and &30 m i l l i o n , r e s p e c t i v e l y ,
i n bonds t o r e f u n d o u t s t a n d i n g l o n g - t e r m s e c u r i t i e s t h i s week.
Bond y i e l d s . Y i e l d s on A a a - r a t e d S t a t e and l o c a l bonds continued
t h e i r d e c l i n e l a s t week, d e c r e a s i n g 3 more b a s i s p o i n t s t o 3.19 p e r c e n t ,
the lowest l e v e l s i n c e e a r l y l a s t March, w h i l e y i e l d s on B a a - r a t e d
c o r p o r a t e and S t a t e and l o c a l bonds d e c l i n e d one and It b a s i s p o i n t s ,
r e s p e c t i v e l y . Y i e l d s on A a a - r a t e d c o r p o r a t e bonds and long-term U. S.
Government bonds were unchanged.
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 . Y i e l d s on 3-month
and 6-month Treasury b i l l s , which had r i s e n c o n t i n u o u s l y over t h e p a s t
two months, d e c l i n e d $ and 12 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..
Y i e l d s on 3 - 5 y e a r U. S. Government i s s u e s i n c r e a s e d it b a s i s p o i n t s .
The average r a t e of i n t e r e s t on d i r e c t l y - p l a c e d f i n a n c e comparypaper w i t h
90-179 day m a t u r i t y i n c r e a s e d It b a s i s p o i n t s t o 3.13 p e r c e n t , t h e
h i g h e s t l e v e l s i n c e October i 9 6 0 , r e f l e c t i n g the f u l l e f f e c t of t h e r a t e
change of t h e p r e v i o u s week. The F e d e r a l f u n d s r a t e i n c r e a s e d 65
b a s i s p o i n t s to 2.50 p e r 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.
housing s t a r t s . P r i v a t e housing s t a r t s , i n c l u d i n g farm, d e c l i n e d
somewhat f u r t h e r i n December t o a s e a s o n a l l y a d j u s t e d annual r a t e of 1 . 3
m i l l i o n . For t h e f o u r t h - q u a r t e r a s a whole, t h e average r a t e was l . l i m i l l i o n ,
1 p e r cent above t h e improved r a t e i n t h e t h i r d q u a r t e r of t h e y e a r and 17
p e r cent above t h e r a t e i n t h e f o u r t h q u a r t e r of 1960 when s t a r t s reached
t h e i r r e c e s s i o n low. For t h e y e a r a s a whole, s t a r t s t o t a l e d 1 . 3 m i l l i o n
o r k p e r c e n t above t h e l e v e l i n I960; c o n v e n t i o n a l s t a r t s r o s e 7 per c e n t
i n I96I and accounted f o r 75 p e r cent of the t o t a l , compared w i t h a 73-peiX
c e n t share i n i 9 6 0 and 71 p e r cent i n 1959.
»




—2—
Stock ma ricet c r e d i t . Customer c r e d i t i n 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 f u r t h e r i n December, r i s i n g $11*2 m i l l i o n t o a
r e c o r d l e v e l of $ 5 . 6 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 t h o s e 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 by $118 m i l l i o n f u r t h e r t o a new r e c o r d l e v e l of $U.3 b i l l i o n .
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 s e c u r i t i e s i n c r e a s e d by
$2l* m i l l i o n .
Money borrowed by NYSE member f i r m s a l s o i n c r e a s e d s u b s t a n t i a l l y
d u r i n g December t o r e a c h a new p e a k . Customers' 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 stock market c r e d i t f o r
November and December a r e shown i n t h e f o l l o w i n g t a b l e .
End of month
Dec.
I Nov.
( M i l l i o n s of d o l l a r s )
Customer c r e d i t
Excluding U. S. Government s e c u r i t i e s - t o t a l
Net d e b i t b a l a n c e s
Bank l o a n s t o " o t h e r s "
Net d e b i t b a l a n c e s s e c u r e d 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 o r c a r r y i n g U. S.
Government s e c u r i t i e s
Broker and d e a l e r c r e d i t
Money borrowed 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
Money borrowed on U. S. Government s e c u r i t i e s
Customers 1 n e t f r e e c r e d i t b a l a n c e s
~r]

5,602
4,259
l,3li3
35

5,460

+142
+118

1,319
39

+2h

125

"102

+23

2,752

+202
+138
-3
+6

2,95k

2,572
U8
1,219

2,h3k

51
i/l,213

Revised.
Stock 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 , d e c l i n e d one p e r cent l a s t wedc,
c l o s i n g a t 68.75 on January 19 . T r a d i n g volume was moderately heavy,
a v e r a g i n g 3 . 6 m i l l i o n s h a r e s a day.
I n s t i t u t i o n a l i n v e s t o r s . T o t a l s a v i n g s i n f l o w during November
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 i n s u r a n c e companies, savings
and loan a s s o c i a t i o n s and mutual savings banks—amounted t o $1.5 b i l l i o n ,
which was more t h a n o n e - f o u r t h h i g h e r than a year e a r l i e r . Y e a r - t o - y e a r
gains i n n e t i n f l o w of savings were r e p o r t e d by a l l t h r e e i n s t i t u t i o n s ,
b u t t h e l a r g e r i n c r e a s e s were i n s h a r e c a p i t a l of savings and loan
a s s o c i a t i o n s and a s s e t s of l i f e i n s u r a n c e companies. (Time d e p o s i t s a t
commercial banks d e c l i n e d jtfO.2 b i l l i o n d u r i n g November, whereas t h e y did
n o t change d u r i n g I 9 6 0 . )
On a s e a s o n a l l y a d j u s t e d b a s i s , t h e November n e t i n f l o w was i n
r e c o r d volume, a l m o s t o n e - f i f t h l a r g e r than t h e monthly average f o r t h e
f i r s t t e n months of I961. Though a l l t h r e e i n s t i t u t i o n s had r e l a t i v e l y




-k

l a r g e i n f l o w s , t h e r e c o r d n a t u r e of t h e November i n c r e a s e was accounted
f o r by t h e s a v i n g s and l o a n a s s o c i a t i o n s .
A s s e t s of l i f e i n s u r a n c e companies i n c r e a s e d #0.7 b i l l i o n i n
November, or by almost o n e - f o u r t h more than a y e a r e a r l i e r . Net a c q u i s i t i o n s of mortgages amounting t o 50.2 b i l l i o n were i n t h e l a r g e s t
volume of any month d u r i n g 1961 and o n e - e i g h t h l a r g e r t h a n i n November
i 9 6 0 . A c q u i s i t i o n s of b u s i n e s s s e c u r i t i e s a t # 0 . 2 b i l l i o n , on t h e o t h e r
hand, were i n t h e s m a l l e s t volume s i n c e May b u t s l i g h t l y l a r g e r than i n
November i 9 6 0 .
The n e t i n c r e a s e in s h a r e c a p i t a l a t s a v i n g s and loan a s s o c i a t i o n s i n November t o t a l e d $0.8 b i l l i o n , almost t w o - f i f t h s more t h a n l a s t
y e a r , r e f l e c t i n g a g r e a t e r i n c r e a s e i n new savings than i n w i t h d r a w a l s .
On a s e a s o n a l l y a d j u s t e d b a s i s , n e t i n f l o w i n November was a t a new higfc
f o r t h e second month i n a row, o n e - f i f t h above the monthly average f o r
t h e f i r s t ten months of 1961. A c q u i s i t i o n s of mortgages d e c l i n e d
s e a s o n a l l y during November, b u t , a t $0.7 b i l l i o n , the n e t i n c r e a s e was
i n s u b s t a n t i a l volume and t w o - f i f t h s l a r g e r t h a n a y e a r e a r l i e r .
Deposits a t mutual s a v i n g s banks i n c r e a s e d
tyr
million in
November a s the u s u a l November withdrawal of f u n d s i n Christmas s a v i n g s
club a c c o u n t s n e a r l y o f f s e t t h e n e t a d d i t i o n s t o r e g u l a r deposit a c c o u n t s .
Last November t o t a l d e p o s i t s i n c r e a s e d by 439 m i l l i o n . On a s e a s o n a l l y
a d j u s t e d b a s i s , t h e November g a i n i n r e g u l a r d e p o s i t s was about i n l i n e
w i t h t h e monthly average f o r J a n u a r y - O c t o b e r . Mortgage a c q u i s i t i o n s
amounted t o $0.2 b i l l i o n , s l i g h t l y l e s s than i n both October and a y e a r
e a r l i e r . T o t a l s e c u r i t y h o l d i n g s dropped s l i g h t l y , a s i s u s u a l i n
November, but most of t h i s d e c l i n e was i n b u s i n e s s s e c u r i t i e s which had
i n c r e a s e d during November i 9 6 0 .
More d e t a i l e d 1 i n f o r m a t i o n concerning r e c e n t c a p i t a l market
developments i s p r e s e n t e d i n t h e a t t a c h e d e x h i b i t s .

C a p i t a l Markets S e c t i o n ,
D i v i s i o n of Research and S t a t i s t i c s ,
Board of Governors of the F e d e r a l Reserve System.




EXHIBIT »
LONG-TERM

BOND

YIELDS

HIGH-GRADE

LOWER-GRADE




Exhibit B - T a b l e s f o r Exhibit A

-5-

Long-tem Bond Yields
High-grade
Date

Corporate
Aaa \ J

U. S. Govt.
long-term 2/
( p e r cent)

1951* - Low
1957 - High
1958 - Low
1959-60 - High
I960 - Low
1961 - High
Low
Dec.
Dec.
Jan.
Jan.
Jan.

22
29
5
12
19 e /

2 . 8 5 (4/23)

lj.llj (9/27)
3.55 (5/2)

2.45 (8/6)
3.76 (10/18)
3 . 0 7 (4/23)

I4.6I (1/29/60)

4-42
3.75
1.07
3.70

4.44

4.06
4.07
4.06
1+.08
4.08

4. 23 (9/9)
4.46 (9/15)
4.21 (3/17)
Li.hU

4.43'
4.42
kAi2-

(1/8/60)
(«Vs)
(12/29)
(5/12)

State and
local
government
Aaa 3/

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

1.90 (9/2)

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

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

.30
.50 >
.31*
.92
•53
.76
.46

3.32
3.31
3.26
3.22
3.19

.38
.36
.37
-.34
.34

.74
.76
.80
.86
.89

3 . 4 5 (8/29)

2.64'(sA)

3 . 6 5 (9/24/59)

-

Lower-grade
Corporate
Baa 1 /

Date

State and
l o c a l govt.
Baa y

Spread between
Aaa and Baa
' S t a t e and
Corporate
l o c a l rcovt.

(per cent)
1954 - Low
1957 - High
1958 - Low
1959-60 - High
1960 - Low
1961 - High
Low
Dec.
Dec.
Jan.
Jan.
ydan.

22
29
5
12
19 fi/ '

3 . 4 4 (12/31)

2.93 (e/5)
4 . 5 1 (8/29)

.52
1.2?

5.10 (11/20)
4.5L (7AD

3.64 (5A)

4.98 (9/9)
5.13 (10/27)
5.00 (4/21)

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

.81
.66

4.04
4.04
4.04
4.04
4.00

.67
.66
.68
.67
.66

5 . 3 6 (2/12/60)

5.11
5.10
5.11 ^
5.09
5.08^

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

I

2/ Preliminary.
y Meekly average of dally figure a. Average term of bonds heluded te 23 "26 year#.
2/ Weekly average of did ly figures. The sorles lmludes bonds due or callable In 10 ysari or Bore.
3/ Thursday figures. Only general obligation bonds are Included) average term la 20 years.
Note .—111 ghe and lows are for Individual series and nay be on different dates for dlffsrsnt sarlss,
Fbr spreads, high refers t o widest, and low to narrowest.




.96
1.21
• 93
1.08
M

.93
.57

.72
.73
.78
.62
.81

SHORT-

AND

I N T E R M 1 P I A T E - TERM INTEREST RATES

GOVERNMENT

F. 8 . D I S C O U N T « A T f ,

BANKS

AND

OTHER

PRIVATE

W..kly




BORROWERS

Ooing tele

-7Exhibit D - Tables l'or Exhibit C
3 i o r t - and Intermediate-tera I n t e r e s t totes
Government
Date

Discount
rate
V

195U - Low
1957 - High
1958 - Low
1959-60 - High
i960 - Low
1961 - High
Low

1.50
31.50
1.75
it. 00
3.00
3.00
3.00

.61
3.61&
.58
U. 59
2.11
2.66
2.17

3.00
3.00
3.00
3.00
3.00

2.61
2.66
2.72
2.78 ,
2.73/

Dec.
Dec.
Jan.
Jan.
/fan.

22
29
5
12
19.fi/

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

3-month
b i l l s 2/
wm
(10/18)
(5/29)
(1/8/60)
(10/28)
(12/29)
(1/27)

3-5 year
issues 2 /

Spread between yields on
3-month b i l l s and yields oi
6-mo. b i l l s 13-5 yr. issues

1.66 (4/30)
LOL (10A8)
2.1U (6/6)
3 . 02 (12/26)
5.07 (1/8/60) 5.00 (12/24/69)
2.38 (12/30)
3.1|0 (12/30)
2.90 (12/29) 3.86 (8/11)
3.15 (5/12)
2.35 (it/28)

.26
.79
.16
.a
.12

.66
.86
,0k
1.81
.38
1.51
.92

.25
.21
• 2it'
.21
.17

1.20
1.20
1.07
1.05
. 1.14

__

* 2.86
2.90
2.96
3.02
2.90

'

3.81
3.81
3.79
3.83.
3.87

mum

--

Banks an^l, Otheri• Private -Borrowers
Finance company
paper J3/

Prime
rate 3/

Date

Stock Exchange
c a l l loan 1/

195L - Low
1957 - High
1958 - Low
1959-60 - High,
i960 - Low
1961 - High
Low

3.00
il>50
3.50
,5.5o
L50
it. 50
it. 50

3.50
5.00
L.50
it. 50
it. 50

Dec.
Dec.
Jan.
Jan.
Jan.

li.50
U.50
U.50
L.50
ii.5o

it. 50
it. 50
U.50
it. 50
it. 50

Federal
funds h/

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

(per cent)

1/

7/
3/

22
29
5
12
19 E/

3.00
k.So

1.25 (12/31)
3.88 (11/is)
1'. 13 («/8)
5l. 13 (1/22/60)
2; 88 (12/30)
3.00 (12/29)
2.50 ( 7/28)
3.00
3 00
3.00
3.09
3.13
1
r-» - - -A
•*4 fM BAAtin*

Hinmv r u n •linn*
»n »•»»". - • •>« «•
Stock Exchange c a l l l e a h f a t a l a going r a t e on call leawa
Xe.i York City banks, Prt»e rata l a t h a t charged by Urge
the hlgheut c r e d i t standing.
Market y i e l d ; weekly averages'computed from dally oloalna
aelooted notea and bonds.
Averse of dally r a t e s publlehad by finance coapanlea f o r

4/

0
.63
-.35;
1.02
.22
.56
.11

n.a.
3.50 (11/a)
.13 (V2»)
li.00 (5/13/60)
. 9 5 (12/2)

2.88 (12/29.)
.it3 (1/27)
2.55
2.88
2.63
1.85
2.50
11

;

.39
•3lt
.28
•31
,itO

1 Bark of, New ,York.
aeourod by customers atook exchange c o l l a t e r a l a t
banks on «hort-teni lcana t e bueinees borrower* of
. . .
'
. . '
bid prleaa. Serial of 5-5 year laaue# aonalata of
- '
'
d l r e o t l y plated paper for varyl>| m a t i r l t l e e In the

W«kly Bveroge^'f dully e f f e c t i v e r a t e , which U the r a t a for tha haavleat vol w e of purohaae and aide trananetlono
»s reported to the Federal Reserve Bank of Hewjfor^.
„
'
t
Mot-».--Hiaha and Iowa are f o r Individual aerlea ind . a y be on d i f f e r e n t d a t e , for d i f f e r e n t data*, for d i f f e r e n t sorlea.
For apreade, high r e f e r # t o wldeat, and low t o narrowest.




STOCK

MARKET

Million! of Dolloni

S T O C K MARKET CREDIT

* CHANGE IN SE8IES

PRIVATE H O U S I N G
! Monthly

STARTS




Thousands

\

\ J

/

V

COJL*limOHA|:

of

Exhibit F - Tables f o r Exhibit L
Stock Market
Stock p r i c e
index 1 /

Date

6 0 . 5 1 (7/31/59)
1957-60 - High
39.1*8 (12A-0/57)
Low
72.01* (12/8)
1961 - High
-58.1*8 (1/6)
Low

71.07
71.71*
69.66
69.61
68.75

November
December
Jan. 5
Jan. 12
Jan. 19 2 /

Trading
Common
volume y
stock
y i e l d s 2 / (millions
(per cent) of shares)

Stock market customer c r e d i t
Customers1
bank
debit b a l loans to
ancea U/
"otters" 5/
(In millions of dollars)

Total

3.08
1*.72
2.82
3.32

1.9
1.1*
5.8
2.7

ii,76U (V59) 3,1|01 (V69) 1,373 ( 5/59)
3,55U (V59) 2,l*fl2 (12/57) 1,060 (ll/fc7)
1^60(11/61)4,ia'(ll/6l)l,377(ti/>) .
U,U21*(l/61) 3,253(1/61) 1,161(3/6)

2.82
2.81*
2.9h
r/2.9l*
2.98

l*.l*
l*.l
3.9
3.7
3.6

5,1*60
5,602

l*,ll*l
It, 259

1,319
1,31*3 .
r/1,358
1,358

n.a e -»Hot a v a i l a b l e .
£/ Hrtille-Uary.
...
1 / Standard and Poor's composite Index of 600 oeioraon stocke, weekly e l o i l i y p r l e t t , 1041-43*10. r-cnU-ly data are
averages of d a l l y figure# r a t h e r than of M U c y ' e only. High:, and lcv« are for frldays' data only.
1
2/ Standard and Poor * composite otoek y i e l d baoed on Wednesday data oonverttd to weekly closing prices by federal
Reserve. Yields shown a r e f o r dates on which price Index reached I t s high or low.
3 / Average• of dally t r a d i n g volisie on the New York Stock Exchange,
4 / End of month f i g u r e s f o r member firms of the Man York Stock Exchange whleh oarry margin account#, exclude* balances
geovred by U. S. Ooverment o b l i g a t i o n s .
banks aooount f o r about 70 per oont of loans, to o t h e r s .

For f u r t h e r d e t a i l see Bulletin.

Private Housing S t a r t s 1 /
Date
1960 - Dec.
1961 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov. £ /
Dec. 2 /

Total
Sea so r a l l y a d j u s t e d Unadjusted
annual r a t e
996
1,127
1,169
1,296

1,166

1,291
1,381
1,31*3
1,326

1,306

and units without mortgages.
DigitizedmortRiv.es
for FRASER


FHA
11*
11* .
13
20
20
21*
22
21
26
21
23
23
17

61*

70
76
105
111
127
132
125
127
r/122
J/121*
102
83

-

Unadjusted
Conventional
VA
5
5
5
6
6
8
8
7
8
7
9
7
6

1*6
51
58
78
85
95
• 103
97
93
91*
r/91
72
60

Exhibit G

-10-

Yields on New Corporate Bond issues Adjusted t o an Aaa Basis
Amount
Average
Number
of i s s u e s
yield
of i s s u e s included
(per
included (millions
cent)
of d o l l a r s )
Monthly averages:
1961 - January
February
March
April
. May
July
August
September
October
November
December
Weekly averages:
1961 - January 6
13
20
27
<
• February 3
10
17
March. 3
. 10
17
2k

31
April 7
'
lit
21
28
May-5
12
19
26

3
6
it
12
15
18
it
h
2
7
9
3

29.0
97.8
108.0
563.0
#1.0
701.5
273.0
115.0
78.8
200.0
229.0
115.0

1
1
1
1
2
3

10.0
7.0
12.0
6.8
ItG.O
U3.0

it

108.0

3
3
2

90.0
82.0 .
312.0
79.0
165.0
30.0
91.0
165.0

2h

h

3
1
6
5

it. 35 June 2
it. 31
9
16
It. 26
lt.U2
23
it. 51
30
It. 65 July 7
It. 62
lit
21
it. 59
28
it. 36
it. 26 August h
It. 32
11
it. 39
18
25
September 1
8
15
h.hS
it.itO
22
it. 27
29
It. 61* October 6
it. 32
13
20
it. 27
27
November. 3
10
17
it. 26
2lt
December 1
it. 28
8
it.itO
15
It. 1*2
22
It.51
29
it. 19 1962
it.it? January 5
It. 1+7
12,
19
it.55
26

Amount
Average
Number of issues
yield
of issues included
(per
included (millions
cent)
of dollars).

.

3
it
6
3
2

60.0
307.0
137.0
130.0
67.5

it.66
it. 68
it.68
it.56
it.58

1
1
2
2
1
1

8.0
200.0
65.0
55.0
20.0
itO.O

it. 60 .
lt.61t
lt.li6
lt.5it
it. 73*
it. 60

1

18.0

It.lt6

1
2

60.8
U5.0

it. 36
it. 25

2
3
3

60.0
^95.0
it5.o

lt.2l
it. 28
it. 21

7
1
1
2
1

Iflt.O
60.0
30.0
75.0
ItO.O

it. 29
it. 35
it.itO
it. 29
it.55*

—

- -

1

—

60.0

it.5o

and A by Moody's Investors Service (except s e r i a l , equipment t r u s t and convertible i s s u e s ,
o f f e r i n g s of n a t u r a l gas p i p e l i n e and f o r e i g n companies, and issues guaranteed by the
Federal Government) weighted by size of i s s u e s . Yields on Aa- and A-rated bonds are f i r s t
a d j u s t e d to an Aaa b a s i s , using the comparable spreads in y i e l d s on seasoned bonds (Moody's
averages). Averages r e f l e c t changes in i n d u s t r i a l composition, type, maturity, and c a l l
provisions of new o f f e r i n g s . Weekly averages considered unusually u n r e l i a b l e as
i n d i c a t o r s of i n t e r e s t r a t e s on new issues because of the small number or s p e c i a l
c h a r a c t e r i s t i c s of o f f e r i n g s included e t c . are marked with an a s t e r i s k .




-11-

Exhibit H
Long-term Corporate and S t a t e and Local Government.
Security Offerings and Placements
(In m i l l i o n s of dollars)

New c a p i t a l
Corporate 1 /
State and l o c a l 2 /
| 1961
1 I960
1962
1 1961
1 I960

1962
January
February
March
April
May
June

e/600

580
667
562

570
715
860

2,118
1,259
. 1,318
1,028
762
61* 7

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

quarter
quarter
quarter
quarter

l e t half
Three quarters
Year

sA,033

£/881I
S/875
h',695

Je'.W

6,SOU
8,9la
g/11,733

715
689
763

700
611
568

577
1,01*1*

720
61*1
1,085

719
515
991

736
967
726

BA76
e/6oi
fi/701

1*92
606
683

890
956
852

e/600
e/800
2/550

31*8
501
1*91

2,145
2,382
2,1*28
2,698

2,168
2,W*6
fi/1,777
e/1,950

1,880
2,256
1,780
1,31*0

S
as

s&s

1*,136
5,916
7,257

2/700

>613

Excluding finance companies 2 /
1st
2nd
3rd
l*th

quarter
quarter
quarter
quarter

Year
e/
1/
2/
2/

£>552
S/2!#2

2,018
2,31*7

e/11,235

8,2^6

Estimated,
S e c u r i t i e s and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of pri nci pal 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.




-

Exliibit I

-1.2-

New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
Quarter
~^or
month

1 9 #

-

I
II
III
IV

1960

-

I
II

in

IV

Net proceeds f o r
Gross proceeds f o r n<
new capital 1 / 2/
c a p i t a l and refund!n« 1 /
Bon<3s
Common
and
Mfg. Public Communi- Other
Total Publicly Privately
u t i l i t y cations i s s uers
offered o f f e r e d pfd.
stk.

2,281

787
960
2,062
807
2,739 1,00k

2,663

2,265
93k
2,537 1,071
2,520 1,336
2,832 1,462

835
89k
859
l,0kk
795
770
75k
955 ~

660
811
396
691

358
750
k68
36k

813
979
k70
927

105
k3
99
k60

928
79k
9k2
890

536
692
129
kl6

298
511
562
625

598
808
652
696

189
lk9
317
381

1,059
913
896
997

515
kk9
1,77k 1,^66
65k
935

381
1,081
595

81
1,095
10k

832
1,052
803

59
67
172
171
92
2k9
182
220
161
185
2k9
191

155
2k5
198
303
lkk
362
126
222
303
203
31k
180

36
85
68
52
36
61
57
165
9k
25k
27
100

319
318
k22
236
30k
373
370
359
168
2k9
- 366
381

169
99
2k8
57k
kk7
kk6
k28
255
252
293
202
3k0

137
160
8k
25k
k39
389
269
215
111
282
352,
120

21
kl
19
99k
85
.16
16
13
75
25

253
368
211
297
289
k67
315
279
209
k3k
259
390

1,992

662
2,303
772

880
1,275
1,139

1960 - Jan.
Feb.
Mar.
Apr. .
May
June
July
Aug.
Sept.
Oct.
Nov. "
Dec.

6kl
735
889
805
608
1,12k
• 777
996
7k7
928
1,009
895

32k
253
357
3k8
186
5kO
kl5
592
329
621
518
323

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

1961 - Jan.
Feb.
Mar.
Apr.
May

601
695
696
2,231
l,3k2
1,779,
.1,075
813
678
1,101
925
950

178
273
211
713
666
92k
k2k
225
123
•336
kl3
190

129
29k
167
255
331 •
15k
1,170
3k8
320
355
283
572
. 259
392
kil
177
218
336
k58
. 308_
228
28k
310
k50

1961 - 1

n

h i
IV

July
Aug.
Sept. •
Oct. 2 /
Nov. p /
Dec. §/

I'M

126
189
221
226
202
265
127
175
128
150
13k
131

£5

g7 Preliminary.
e / Estimated!
Yj 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 h; 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.




-13-

Exhibit J
Other Security Offerings
( I n m i l l i o n s of d o l l a r s )

Gross long-term 1 /
Foreign government 2 /
Federal agency 3 /
1961
| ,1960
|
195?
1961
I
1 9 6 0 T - 19W
6.
29

20
2

66
29
5
2

?8

2
175
70

81
60
2

31*
72
Uo

58

252

182
150
150

8

100
11*9
278

ll*8

36

1

85
1
35

250
193

199

31*
2
la

33
30
70

533

517

25

225

199
175

35U

98
150

160
11*9
181

86

1,672

707

Net short-term V
State and l o c a l government 5 /
Federal agency 3/
-82

-11*1*
-162
-171*

-196
-202
-59

197
-25
-197

-79
-87
207

-277
170 •
. 320

57
392
131

22
193
108

95
23
-201

362
133
79

SO

-189

-81
-176
-117

98
56

-23
-33
-250

280
21*0
W

18

362

-633

1,969

-8

58
11*0
-80

-103
-1*2
-155

70
-11*6
-157
1*8

-86

1*15
-175

160
195

-16

-1*

181
1*

176
33

•

s

286

EZ Preliminary.
1 / These d&t* d i f f e r from those I n Bchlblt 0 i n that refunding i s s u e s , a s well a s new c a p i t a l i s s u e s ; are -included.
Long-term s e o t r l t i e e are defined a s these maturing i n more than one y e a r .
2 / Includes s e c u r i t i e s o f f e r e d i n the United S t a t e s by foreign governments and t h e i r subdivisions and by l n t i r n a t l o m l organizations. Source* S e c u r i t i e s and Exchange Commission.
3 / I s s u e s not guaranteed by the U. S. Qoverment. Sourcei long-term, Securities and Exchange Commissi on; shortterm , Treasury Department and federal Reserve.
4 / These data d i f f e r from those im Bchlblt 0 and above In t h a t they represent new offerlnge lebs retirements, whether
from the proceeds of refunding Issues or f r e e qther f u n d s . 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 notes', warrants or c e r t i f i c a t e s and Public Housing Authority notes. I n
corns lnstanoes PHA notes Included may have » somewhat longer term than one y e a r . Sourcei Bond Buyer and
Federal Reserve.
'" ^ •




-14Large Long-term l a b i l e Security Issues l o r New Capital
(Other than U. S. Treasuiy) 1/
"Proceeds of Large Issues Offered
(In m i l l i o n s of d o l l a r s )

Month

Total

Corporate
Bonds
(other than Convertible
bonds
convertibles)

I960 - December
260
1961 - Januaryl U l
February 1! : 26?
March
70
April
1,572
May
557
532
July
1*75
August
185
September
168
October
354
November
391
December
255

^

235
106
230
25
560
180
1*35
285
165
78
205
320
125

liO

75
33
67
26

type y

. CORPORATE
New York Telephone Co.
Natural Gas Pipeline Co.
of America
Garrett Corp.

Other 2 /

222
391
360
405
383
256
616
179
281
435
326
480
307

25
41
37
5 .
1,010
62
97
115
20
58
81
15
130

15

Large Individual Issues Offered

State
and
local
government

Stocks

99

67
25
151
100
73
40
250

January 1 through 19

Coupon
Amount
(millions
r a t e or Offering
Maturity
Rating
of
n e t i n t e r - yield
dollars)
e s t cost

Ref.nrtg.bds.
1st mtg. p . l .
bds.
Deb.

60.0

2002

4-5/8

4.50

30.0
20.0

1982
1982

4-5/8
5-1/1*

It. 63
5.25

25.0
25.0
15.0

1963-84
1992
1963-82

STATE AND LOCAL GOViiftNMfeNT
G.O.
Commonwealth of Puerto Rlcc
Rev.
Port of New York Auth.,N.Y.
Rev.
Puerto Rico Indus. Develop.
iSast Bay Mun. U t i l . £BLst.,
G.O.
California
G.O..
San Jose, C a l i f .
G.O.
State of New York
Rev.-S.T.
S t a t e of Washington
Ascension-St. James Bridge
Rev.-Ut.
and Ferry Auth.
G.O.
Montgomery Co., Maryland




30.0 1963-97
20.0 1963-82
3.31 1963-2012
22.6 1962-81
30.8
13.2

2001
1963-87

3.45
3.62

1.85-1.00 A
3.58 y k
4.oo-4.4o~^' —

3.31
3.08
3.39
3.18

1.70-3.90 Aa
1.70-3.30 A
- 1.65-3.48 t / Aaa

4.52
3.25

1.10-3

.hQ& A

4.50
1.75-4.50

—
A

)
K-2

"15-

Large I n d i v i d u a l I s s u e s O f f e r e d January 1 through 19 (Cont'd)

Issuer

OTHER
None

Type y

Coupon
Amount
(millions
r a t e or
Offering
Maturity
of .
net inter- yield
dollars)
e s t cost

Rating

%

*—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 i 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 / In 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 ; 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 secured only b y revenue f r o m s p e c i f i c
t a x e s ; 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.
] J P r i v a t e l y p l a c e d with i n s t i t u t i o n s .
£ / # 7 . 3 m i l l i o n of bonds maturing 1967-81 n o t r e o f f e r e d .




-16-

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

1961

Dec. 30
Jan. 31
Feb. 28
Mar. 31
Apr. 28
May 31
June 3&
July 31
Aug. 31
Sept. 29
Oct. 31
Nov. 30
Dec. 29

During month following
date shorn
State and
Corporate l o c a l govt. Other 2 /
91
110
55
1,580
512
1*87
521
170
175
358
3M>
356
161

,

1412
181
307
559
236
431
195
1*06
399
251
597
295
223

15
75
73 .
35

Subsequent t o
date shown
State' and ,
Corporate local govt. Other 2/
1,036
1,01*6
• 1,125
.
1*700 .
687
611
666 ,
255
210
50U
I4II

1*21/
591

--

682
360
638 806
579 ..
771 ,
291
537
530
U51t
693
I498

145

—

15
75
73
35
——
—

Forthcoming Large O f f e r i n g s , as of January 19
Amount
Approximate date
(millions
of o f f e r i n g
of d o l l a r s )
CORPORATE
Southern C a l i f , Edison Co.
Grant (W. T.) Co.
Shamrock O i l & Gas Corp.
-K-Westehi Union Telegraph Co.
Stokely-Van Camp Inc.
American Tel. & Tel. Co.
Duke Power Co.
-it-Consolidated Natural Gas Co.
Commerce Oil -Refining Corp.

Com. s t k .
S.F. deb.
S.F. deb.
S.F. deb.
Conv. sub. deb.
Deb.
1st mtg. bds.
S.F. deb.
Deb., bds. & com.

26.0
35.0
25.0
50.0
15.0
300.0
50.0
25.0
hS.O

Jan. 22
Jan. 23
Jan. 2k
>eb. 7
Feb. 5
Feb. 15
Feb. 21
Feb. 28
Indefinite

STATE AND LOCAL GOV&KNMKNT
Georgia Rural Roads Auth.
S t a t e of California
Kansas City, No.
Los Angeles, C a l i f o r n i a
State of Delaware
State of New Jersey
S t a t e of Michigan
S t . Louis, Mo.
•^Public Housing Auth.
Los Angeles School D i s t . , C a l i f .




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

15.6
100.0
18.5
lii.O
18.2
1(2.0
25.0
12.7
79.6
30.0

Jan.
Jan.
Jan.
Jan.
Jan.
Feb.
Feb.
Feb.
Feb.
Feb.

23
2k
2k

31
31
6
6
7
7
13

-17-

L-2
Forthcoming Large O f f e r i n g s , a s of January 19 (Cont'd)
Issuer

type

Amount
date
(mil],ions Approximate
of o f f e r i n g
of d o l l a r s )

STATE AND LOCAL GOVERNMENT (Cont'd)
City and County of San Francisco,
California
^Philadelphia School D i s t . , Pa.
S t a t e of Tennessee
Orleans Parish Sch. D i s t . , La.
Dade County, Florida
J a c k s o n v i l l e expressway Auth., F l a .
Los Angeles Dept. of Wtr." & Pwr.,
California

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

27.3
12.0
12.3
10.0
1(6.0
140.0

Feb. 13
Feb. 13
Feb. 28
Indefinite
Indefinite
Indefinite '

Rev.-Ut.

16.0

Indefinite

Bonds

15.0

J a n . 25

OTHER
Tennessee Valley Authority

*—Included i n t a b l e f o r f i r s t time.
1 / Includes corporate and o t h e r i s s u e s of $15 m i l l i o n and over; 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/ Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal a g e n c i e s .
Note.—Deletions f o r reasons other than s a l e of i s s u e : Realty C o l l a t e r a l Corp.
c o l l a t e r a l t r u s t n o t e s have been d e l e t e d because they a r e being o f f e r e d
on a continuous b a s i s .




Exhibit M

—18—

Sources and Uses of Funds by
L i f e Insurance Companies

Cash

U. S.
Govt.
ities

Value of a s s e t s a t
end of period:
1957 - Dec.
1958 - Dec.
1959 - Dec.
I960 - Dec.
1961 - Nov.
Changes:
1959 - July
Aug.
Sept;
' Oct.
Nov.
Dec.
i960 — Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1961 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.

Uses of funds 1 /
BusiState and
ness
l o c a l govt, Mortgages
i t i e s 2/
ities
(In m i l l i o n s of d o l l a r s )

Other

Total
Sources

1,29k
1,363
1,307
1.332
1,37k

7,028
7,182
6,858
6,U*1*
b,3#

1*2,133
Mi, 612
16,901
18,896
51,152

2,377
2,691
3,221
3,622
3,90k

35,271
37,092
39,237
a,798
43,015

13,206
lk,6k0
16,126
17,625
iy,ioi

101,309
107,580
113,650
119,717
125,706

-25
16
-39
20
33
99

39
95
-181
—18
-132
-168

191*
81
82
203
195
219

110
31
18
11*
18
2h

19h
167
207
215
235
30U

11*6
110
108
91
11*6
313

658
500
195
555
1*95
791

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

153
-36
-167
-85
-62
-102
73
-1*0
-6
-62
23
-103

201*
125
10 h
131*
231
125
167
168
ho
311
198
188

-2h
25
35
21
26
13
10I*
. 1*3
82
33
26
17

336
196
2h2
225
203
192
63
226
179
21k
208
277

-I46
207
115
95
128
211
206
175
122
11
102
173

552
l*di
299
1*29
51U
1*69
628
576
366
• 597
522
651

-54
-9
-50
9
75
-33
1*0
*18
lit
31
1*3

101
-3
-7
-1*7 •
63
-150
71

2I4.2
128
lh8
135
170
2b$
2 1*5
211
213
288
206

h9
31
33
31
5
5
25
36
29
17
36

210
135
208
202
170
182
107
16U
165
199
235

-50
13
-hi

202
202
186
119
58
150
lh2
128
138
105
165

750
1*81*
518
1*52
51*1
399
630
£21
509
653
61*2

17 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 .
2/ Includes s e c u r i t i e s of domestic corporations only. ,
S o u r c e . — I n s t i t u t e of L i f e Insurance.




-19Sources arid Uses of Funds by
Savings and Loan Associations

Value of a s s e t s
a t end of period
1957 - Dec.
1958 - Dec.
1959 - Dec.
1960 - Dec.
1961 - Nov.
Changes:
1959 - J u l y
Aug.
Sept.
Oct.
Nov.
Dec.
E/I96O

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

p/1961.- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept
Octi rj
Nov
Dec,

2/

Sources of funds
Uses of funds 1 /
Net
Total
U. S.
Borrowsources change
Morfc- , Other
Govt.
Other
gageshf a s s e t s o r uses savings ing y
capital I
ities
(In millions of d o l l a r s )
4,847
5,719

2,11*6
2,585
2,183
2,715
2,890

3.173
3,819
4,477
4,586
5.174

2,770
40,049
145,627
53,19k
60.084 - 4 , i o 4
4,72b
68,039

U8,138
55,139
63,530
71,1489
80,823

a , 912
147,976
514,583
62.15U
69,340

1,379
1,444
2,387
2,191
2,437

9,016

-431
:-42
-52
-69
61
371

108
23
-7
10
-28
-25

-113
803
14
740
64;
679
86
626
141
460
-65
468 ..

367
735
684
653
749

201
3914
W
396
484
1,205

31
119
148
136
56
222

135
222
89
121
94
-678

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

-119
316
65
398
93
547
565 - 106
203
635
-58
780
-127
615
2
713
63
643
85
605
153
501
-38
572

92
14914
667
642
939
908
219
718
731
81U
776
959

I468
I4O9
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

-107
71
123
113
216
-60
-152
. 79
83
102
148

262
749
922
813
1,180
1,096
351
96 7
927
1,0140
1,027

-465
-80
-26
88
41
274
-1
132
130
74
79

136
276
243
308
339
-54o
241.
339
135
240
185

-301
-314
b9
-27
80
329
-236
30
2I4
IOI4

86
428

-95
59
3
24
149
132
-227
-86

to
81
88

93
192
107
-18
31
-8
68
-5
46
82

371
427
689
694
815
993
738
906
802
611
709

63I4

I

800
1,362
111
1496
662
726
763

a d j u s t e d t o Include mortgage pledged shares a s c u i r e n t l y r ^ o r t e d .




-20-

Exhibit 0
Sources and Uses of Funds
by Mutual Savings Banks

U. S.
Cash Govt.

Uses of funds 1 /
Busi- State &
local
Mortsecur- govt.
gages
ities
2/
ities

Value o f - a s s e t s
a t end of period
1957 - Dec.
890 7,552
1958 - Dec.
921 7,266
829 6,861
1959 - Dec.
I960 - Dec.
872 6,239
1961 - Nov.
6,157
m
Changes:
1959 - July
-13
-79
Aug.
-12
3
Sept.
-2
-32
Oct.
-281
-27
Nov.
20
-85
Dec.
m
-12

Other

Total
sources
or uses

Sources of funds
|1
Net
change i n Other
deposits

( I n m i l l i o n s of d o l l a r s )
14,331
1,973
It, 810
5,080
5,01*8

682
725
722
672
678

•47
13
-2
-55
-28
23

1*
-1
8
-20
-8
-2U

179
156
160
137
121*
132

-12
33
31
-37
1*2
-12

-6
-9
3
13
-23
-1*
-1*
-5
1
-6
-5
-5

-12
159
116
1*3
150 . a
129 - -21
161
63
169
-59
1|2
159
6
206
11*
196
168
-25
171
13
-11*
157

i960 - Jan.
Feb.
Mar.
Apr.
May
June
• July
' Aug.
Sept.
Oct.
Nov.
Dec.

-131
37
1*1
-86
1*2
108
-69
-6
22
-8
9
81*

-9
-11
32
-118
—80
-93
-I18
30
-32
-156
-68
-1*2

-12
-9
52
-19
13
57
38
-8
32
-i*
31*
57

1961 - ' J a n .
Feb.
Mar.
Apr.
May

106
-U9
21
100
9 • 117
-216
-51
30
-13
-ia
27
-26.
18
6
-Ik
1*6
-15
-120
-27
-13
7

3
-15
L6
-11
27
32
2
-23
-19
-56
-20

-5
-1
-2
1
22
-2
1 '
1
-5
-5

20,951 761
23,039
855
21*, 768 910
26,709 1,001
2b,703 1,107

161
11*0
201*
176
187
201
201
207
156
178
167

17
26
29
-51
30
-23
-28
51*
1*9
-1*1*
1*6

35,168
37,779
38,91*2
1*0,573
1*2,51*1

31,695
31*, 01*1
31*,983
36,353
38,016

3,1*73
3,738
3,959
1*,220
U,525

32
192
163
-283
65
218

-51*
80
197
-187
-27
31*0

86
112
-3U
-96
92
-122

' -11
167
319
-132
176
178
118
223
233
•-31
151*
237

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

57
117
-1
-37
118
-1*3
97
118
-1*5
-87
115
-11*8

233
272
l*ol*
-151*
262
218
16U
232
220
--71*
181

170
63
136
136
351 .
53
-100
-51*
H I * , / 11*8.
367 3 / -11*9^
11*1
23
133
99
310
-90
-15
-59
1*8
133

July
Aug.
Sept.
Oct.
Nov.
Dec.
27 Uses of funds represent net cmnges 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/ • Includes Canadian government and p o l i t i c a l subdivisions, I n t e r n a t i o n a l Bank f o r
Reconstruction and Development, nonguaranteed Federal agency and other bonds as
well as corporate bonds and stock.
Source.—National Association of Mutual Savings Banks and Federal Deposit Insurance
Corporation.
3/ Conforming to FDIC r e d e f i n i t i o n , ^115 million o t h e r l i a b i l . r e c l a s s i f i e d as d e p o s i t s .