Full text of H.16 Capital Market Developments : July 20, 1959

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Not f o r P u b l i c a t i o n * * ,
DECONTROLLED AFTER SIX MONTHS
H.lU

J u l y 20, 1959CAPITAL 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 l a r g e p u b l i c s e c u r i t y f i n a n c i n g c o n t i n u e s t o
be s n a i l . During t h e week ending J u l y 17, two S t a t e and l o c a l government bond i s s u e s with a g g r e g a t e proceeds of $k9 m i l l i o n and a f o r e i g n
government agency o f f e r i n g f o r $50 m i l l i o n were s o l d ; no l a r g e c o r p o r a t e
i s s u e s were o f f e r e d f o r s a l e . The c a l e n d a r f o r t h i s week i n c l u d e s a
c o r p o r a t e o f f e r i n g f o r §50 m i l l i o n and a S t a t e and l o c a l government
i s s u e f o r $13 m i l l i o n .
Bond y i e l d s - Y i e l d s 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 o u t s t a n d i n g bonds, except t h o s e f o r lower grade c o r p o r a t e bonds
which i n c r e a s e d s l i g h t l y . The d e c l i n e was s l i g h t f o r y i e l d s on h i g h grade c o r p o r a t e and S t a t e and l o c a l government bonds, but l a r g e r f o r
t h o s e on U. S. Government and B a a - r a t e d S t a t e and l o c a l government
obligations.
O f f e r i n g y i e l d s on new i s s u e s continued t o show l i t t l e change.
A new A - r a t e d , f i r s t mortgage e l e c t r i c u t i l i t y bond i s s u e was o f f e r e d
t o i n v e s t o r s l a s t week t o y i e l d 5-10 p e r c e n t — t h e same a s t h e y i e l d
on t h e two p r e v i o u s o f f e r i n g s , one made a week e a r l i e r and one made
t h e end of June.
Housing s t a r t s - P r i v a t e n o n f a r a dwelling u n i t s s t a r t e d i n
June r o s e s l i g h t l y 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 1,370,000
u n i t s , a c c o r d i n g t o p r e l i m i n a r y e s t i m a t e s of t h e Bureau of t h e Census.
On an u n a d j u s t e d b a s i s , FHA and VA s t a r t s i n c r e a s e d v e r y s l i g h t l y w h i l e
conventional s t a r t s declined very s l i g h t l y .
I n the f i r s t h a l f of t h i s y e a r , p r i v a t e s t a r t s t o t a l e d a b o u t
691,000 u n i t s . This f e l l about 6,000 u n i t s s h o r t of t h e r e c o r d f i r s t
h a l f i n 1950, a y e a r i n which p r i v a t e s t a r t s reached a peak of 1 , 3 5 2 , 0 0 0
u n i t s . The 1959 f i r s t h a l f , on t h e o t h e r hand, exceeded by 6,000 u n i t s
t h e f i r s t h a l f t o t a l of 1955, t h e s e c o n d - h i g h e s t y e a r when p r i v a t e s t a r t s
were 1,310,000 u n i t s .
Stock market c r e d i t - Customer c r e d i t i n t h e s t o c k market
( e x c l u d i n g t h a t on U. S. Government s e c u r i t i e s ) changed l i t t l e a g a i n
l a s t month, t o t a l i n g $U.7 b i l l i o n a t t h e end of June* T o t a l c r e d i t
d e c l i n e d $19 m i l l i o n a s a d e c l i n e i n bank l o a n s t o " o t h e r s " more t h a n
o f f s e t a very s l i g h t i n c r e a s e i n n e t d e b i t b a l a n c e s .




H.lii

-

2

-

Borrowing by member f i r m s of t h e New York Stock Exchange
m a i n t a i n i n g margin a c c o u n t s ( e x c l u d i n g b o r r o w i n g on U. S. Government
s e c u r i t i e s ) i n c r e a s e d s u b s t a n t i a l l y i n J u n e , t o t a l i n g $2.2 b i l l i o n
a t t h e end of t h e month. The i n c r e a s e of $113 m i l l i o n i n money b o r rowed a g a i n s t customer c o l l a t e r a l more t h a n b a l a n c e d a s h a r p d e c l i n e
i n c u s t o m e r s ' n e t f r e e c r e d i t b a l a n c e s . At # 1 . 1 b i l l i o n , f r e e c r e d i t
b a l a n c e s a r e now lower t h a n t h e y Lave been a t any t i m e s i n c e l a s t
J u l y . These and o t h e r d a t a on s t o c k market c r e d i t f o r June and May
a r e shown i n t h e f o l l o w i n g t a b l e .

( M i l l i o n s of d o l l a r s )
Customer c r e d i t
E x c l u d i n g 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
Uo So Government s e c u r i t i e s
Broker and d e a l e r c r e d i t
Money borrowed e x c e p t on U, S. Government s e c u r i t i e s
On c u s t o m e r 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' n e t f r e e c r e d i t b a l a n c e s

a , 692
3,388
1,30k
158

711
3,385
1,326
163

58

58

2,246
1,970
237
1,09k

2,159
1,857
252
1,188

-19
+3
-22
-5
—

+87
+113
-15
-9 k

Stock p r i c e s - Stock p r i c e s d e c l i n e d l a s t week f o r t h e f i r s t
time in f i v e weeks. S t a n d a r d and P o o r ' s i n d e x of 500 common s t o c k s
c l o s e d a t 59 -19 > one p e r c e n t lower t h a n a week e a r l i e r . Trading a c t i v i t y s l a c k e n e d , a v e r a g i n g 3 . 1 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 - I n May, l i f e i n s u r a n c e company a s s e t s
and s h a r e c a p i t a l a t s a v i n g s and l o a n a s s o c i a t i o n s c o n t i n u e d t o i n c r e a s e
"T more r a p i d l y t h a n a y e a r e a r l i e r , w h i l e t h e i n c r e a s e i n d e p o s i t s a t
m u t u a l s a v i n g s banks was much s m a l l e r . This i s s i m i l a r t o t h e growth
p a t t e r n i n most e a r l i e r months t h i s y e a r . For t h e f i r s t l i v e months
a s a whole 5 t h e growtn was o n e - s e v e n t h l a r g e r t h i s y e a r t h a n l a s t f o r
l i f e i n s u r a n c e company a s s e t s , o n e - t e n t h l a r g e r f o r s a v i n g s c a p i t a l a t
s a v i n g s and l o a n a s s o c i a t i o n s and n e a r l y o n e - t h i r d s m a l l e r f o r d e p o s i t s
a t m u t u a l s a v i n g s b a n k s . (The i n c r e a s e i n t i m e d e p o s i t s a t commercial
b a n k s h a s a l s o been much l e s s than t h e v e r y r a p i d growth l a s t y e a r . )
The i n c r e a s e i n l i f e i n s u r a n c e company a s s e t s amounted t o
n e a r l y $500 m i l l i o n i n May, o n e - t e n t h more t h a n a y e a r e a r l i e r . 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 was s m a l l e r t h a n i n May 1958.




H.lli

Net a c q u i s i t i o n s by t h e s e companies of both b u s i n e s s s e c u r i t i e s and
mortgages were l a r g e r t h i s y e a r , w i t h t h e f o r m e r being t w o - f i f t h s
l a r g e r and t h e l a t t e r o n e - s i x t h l a r g e r .
The May i n c r e a s e i n a c q u i s i t i o n s of S t a t e and l o c a l government o b l i g a t i o n s was v e r y l a r g e ;
a c q u i s i t i o n s of t h e s e s e c u r i t i e s i n t h e f i r s t f i v e months of t h e y e a r
have been t w i c e a s l a r g e a s i n t h e c o r r e s p o n d i n g p e r i o d of 1958 „
Savings c a p i t a l a t s a v i n g s and l o a n a s s o c i a t i o n s i n c r e a s e d
$60h m i l l i o n , o n e - f i f t h more t h a n l a s t May. The i n c r e a s e i n JHLB a d v a n c e s , t h e l a r g e s t i n c r e a s e i n May s i n c e 1955, i n p a r t , r e f l e c t s borrowing by t h e s e a s s o c i a t i o n s t o o b t a i n f u n d s f o r t h e i r h e a v y mortgage
l e n d i n g a c t i v i t y . The volume of n e t mortgage a c q u i s i t i o n s h a s b e e n
l a r g e r i n each month s i n c e F e b r u a r y t h a n i n t h e c o r r e s p o n d i n g month
of 1953| t h e i n c r e a s e i n May was t w o - f i f t h s g r e a t e r .
The growth i n d e p o s i t s a t m u t u a l s a v i n g s banks, t o t a l i n g
§120 m i l l i o n , was ; o n e - t h i r d s m a l l e r t h a n i n toy 1958. There was a
n e t l i q u i d a t i o n by s a v i n g s banks of b u s i n e s s s e c u r i t i e s , i n c o n t r a s t
w i t h a s u b s t a n t i a l n e t a c q u i s i t i o n i n May 1958—the most r e c e n t month
i n which such h o l d i n g s i n c r e a s e d s u b s t a n t i a l l y . For t h e f i r s t t i m e
t h i s y e a r t h e i n c r e a s e i n mortgage h o l d i n g s was s m a l l e r ( o n e - s i x t h
s m a l l e r ) t h a n i n t h e c o r r e s p o n d i n g month of 1958„ There was a n e t
a c q u i s i t i o n of U, S, Government s e c u r i t i e s t h i s May w h i l e l a s t y e a r
t h e r e was a l i q u i d a t i o n of t h e s e s e c u r i t i e s .
More d e t a i l e d i n f o r m a t i o n * c o n c e r n i n g r e c e n t c a p i t a l - m a r k e t
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 t h e F e d e r a l R e s e r v e System,




HIGH-GRADE

lOWfU-OBAO*

BOND

BOND

YIELDS

YIELDS




ti.lh

Exhibit ii
Tables l o r Exhibit A
High-grade itond Y i e l d s

Date

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

U. S. Govt,
long-term 2 /

Corporate
Aaa 1/

(Per cent)
195k - Low
1957 - High
1958 - High
Low
1959 - High
Low

2.85
it. lit
li.13
3.55
it.it8
it.09

June
June
July
July
July

it. 16
it.it?
it.it8
it.it8
it.it7

19
26
3
10
17 2 /

(it/23)
(9/27)
(10/10)
(5/2)
(7/10)
(1/9)

2.1,5
3.76
3.8U
3.07
it. 13
3.83

(8/6)
(10/18)
(12/26)
(it/25)
(7/10)
(1/2)

1.90
3.U5
3.31
2.6U
3.5it
3.06

it.09
ii.10
it.12
it. 13
it. 08

(9/2)
(8/29)
(9/11)
(5/1)
(7/2)
(3/26)
.

3.39
3.it5
3.54
3.52
3.51

.30
.60
.51
.22
.39
.16

.30
Ml
.72
.3U
.92
.57

.37
.37
.36
.35
.39

.70
.65
.58
.61
.57

Lower-grade Bond Y i e l d s

Date

Corporate
Baa 1 /

S t a t e and
l o c a l govt.
Baa | /

Spread between
Aaa and Baa
S t a t e and
Corporate
local govt.

(Per cent)
195U - Low
1957 - High
1958 - High
Low
1959 - High
Low

3.itit
5.10
it.96
it. 51
5.09
it.83

June
June
July
July
July

5.0k
5.0it
5.05
5.07
5.09

19
26
3
10
17 E/.

(12/31)
(11/29)
(1/3)
(7/11)
(7/17)
( W )

2.93
it. 51
it.3it
3.6it
it.it6
3.92
it. 29
it. 38
it.it6
it.it5
it.itl

(8/5)
(8/29)
(9/11)
(5/1)
(7/2)
(3/26)

.52
1.27
1.28
.77
.77
.56

.96
1.21
1.11
.93
.98
.86

.58
.57
.57
.59
.62

.90
.93
.92
.93
.90

g / Preliminary."
1 / 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 d a i l y f i g u r e s . The s e r i e s i n c l u d e s bonds due or c a l l a b l e i n
10 y e a r s or more.
jj/ Thursday f i g u r e s . Only general o b l i g a t i o n bonds are included; average term
i s 20 y e a r s .
Note.—highs and lows are f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t dates f o r
different series.




t

STOCK

MARKET

VOLUME ~]~

1954
PRIVATE

1957
PERMANENT

1953
1954



NONFARM

1958
DWELLING

WJ
~V

1955

1954

1959

UNITS

STARTED

v

CONVENTIONAL "

1957

195:

1959

E x h i b i t D - Tables f o r Exhibit, C
Stock Market

Date

Stock p r i c e
i n d e x 1/

Common
Trading
stock
volume 2 /
yields 2 / (millions
( p e r c e n t ) o f shares)

-

1959 - High
Low

51^.11
22.95
59.91
54.37

May
June
June
July
July
July

57.96
57.46
57.98
59-28
59.91
59.19

1953-1958 - High
Low

26
3
10
17 2 /

(12/24/58)
(9/18/53)
(7/10)
(2/6)

Stock market customer c r e d i t
Customers'
Bank
debit bal- loans to
ances 4 / "others" 5 /
(Mil]Lions of do]Liars)

Total

3.30
6.25
3.11
3-34

4.9
0.9
1.3
2.6

4.L92
2,055
4,721
4,527

3,285
1,314
3,401
3,253

1,317
669
1,332
1,210

3.20
3.23
3.21
3.13
3.11
3.14

3.4
2.9
3.0
3.2
3.7
3.1

4,711
4,692

3,385
3,388
n.a.
n.a.

1,326
1,304
1,304
1,301

n.a.

1,253
1,248

n.a.—Not available.
g/ Preliminary.
1 / S t a n d a r d and P o o r ' s T m p o s i t e i n d e x of 500. common s t o c k s , weekly c l o s i n g p r i c e s , 1941-43=10, Monthly d a t a
a r e a v e r a g e s of d a i l y f i g u r e s r a t h e r t h a n of F r i d a y s ' o n l y . Highs and lows a r e f o r F r i d a y s ' d a t a o n l y .
2 / S t a n d a r d and P o o r ' s composite s t o c k y i e l d based on Wednesday d a t a c o n v e r t e d t o weekly c l o s i n g p r i c e s by
F e d e r a l R e s e r v e . Y i e l d s shown a r e f o r d a t e s on which p r i c e index r e a c h e d i t s h i g h o r low.
3 / Averages of d a i l y t r a d i n g volume on t h e New York Stock Exchange.
4 / End of month f i g u r e s f o r member f i r m s of t h e New York Stock Exchange which c a r r y margin a c c o u n t s ; e x c l u d e s
b a l a n c e s s e c u r e d 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 r e p o r t i n g member b a n k s . Excludes l o a n s f o r p u r c h a s i n g or c a r r y i n g U. S .
Government s e c u r i t i e s " P r i o r t o J u l y 1 , 1959, such l o a n s a r e e x c l u d e d only a t banks i n New York and C h i c a g o .
Weekly r e p o r t i n g banks a c c o u n t f o r a b o u t 70 p e r c e n t of l o a n * t o o t h e r s . For f u r t h e r d e t a i l sea B u l l e t i n .

P r i v a t e Permanent Nonfarm Dwelling U n i t s S t a r t e d

1958 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1959 - Jan.
Feb.
Mar.
Apr.
May
June

.

1/

Unadjusted

Total
Seasonally
adjusted
annual r a t e

Unadjusted

1,057
1,174
1,228
1,255
1,303
1,427
,1,1*32
1,364
1,403
1,403 '
2/1,390
2/1,340
2/1,370

101
109
115
111
113
107
90
84
94
118
2/133
2/131
2/131

FHA

Conv.

VA

(Thousands of u n i t s )
28
30
30
32
35
26
25
20
20
30
34
34
35

8
11
13
14
15
11
9
7
6
10
11
10
11

65
68
71
65
64
70
55
57
67
78
2/g9
E/86
2/85

1 / T o t a l s t e . r t s a r e BLS e s t i m a t e s . A d w e l l i n g u n i t i s s t a r t e d when e x c a v a t i o n b e g i n s ; a l l u n i t s
i n an a p a r t m e n t s t r u c t u r e a r e c o n s i d e r e d s t a r t e d a t t h a t t i m e . FHA and VA s t a r t s a r e u n i t s s t a r t e d
under commitments by t h e s e a g e n c i e s t o i n s u r e o r g u a r a n t e e t h e m o r t g a g e s . As r e p o r t e d by FHA and VA,
a u n i t i s s t a r t e d when a f i e l d o f f i c e r e c e i v e s t h e f i r s t compliance I n s p e c t i o n r e p o r t , which i s made
b e f o r e f o o t i n g s a r e poured i n some c a s e s b u t normally a f t e r t h e f o u n d a t i o n s have been c o m p l e t e d .
Capchart m i l i t a r y h o u s i n g u n i t s are e x c l u d e d . Conventional s t a r t s a r e d e r i v e d a s a r e s i d u a l , a l t h o u g h
t o t a l and FHA and VA s t a r t s a r e n o t s t r i c t l y comparable i n c o n c e p t o r t i m i n g ; t h e y i n c l u d e b o t h u n i t s
f i n a n c e d by c o n v e n t i o n a l mortgages and u n i t s w i t h o u t m o r t g a g e s . ^




Exhibit E
Long-term Corporate and State and Local Government
Security Offerings and Placements
( I n m i l l i o n s of dollars)

1959

Corporate 1 /
1
1958
1

New ca p i t a l
1957

1959

State and l o c a l 2/
1
1958
1
1957

8U0
71*5
631

728
857
1,553

1,060
1,065
1,320

636
856
61*1*

812
953
511

712
572
506

April
May
June

R/826
j^8o6
e/9£0

1,11*0
597
887

931
765
.1,153

930
592
p/980

798
895
551

765
51*6
393

July •
August
September

e/550

1,107
5W
1,11k

1,003
921*
973

e/550

806
1*03
651

529
581*
1*31

862
518
920

1,090
789
1,076

1*56
1*71*
1*35

698
633
698

2,216
9/2,582

3,139
2,623
2,760
2,300

3,W5
3,ll*9
2,899
2,951

2,136
9/2,502

2,276
2,21*1*
1,860
1,365

1,820
l,70l*
l,5W*
2,029

©A.798'

5,762
8,522
10,823

6,59k
9,1*93
12,1*1*7

9/^,638

1*,520
6,380
7,71*6

3,521*
5,06?
7,099

January
February
March

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

quarter
quarter
quarter
quarter

1 s t half
Three quarters
Year

*
•

Excluding[ f i n a n c e companies h /
1st
2nd
3rd
Lth

quarter
quarter
quarter
quarter

2.011
e/2,332

Year

2,899
2,586
2,731
2,213

3,237
2,809
2,582
2,610

10,129

11,518

e / Estimated.
__
1 / S e c u r i t i e s and Exchange Commission estimates of net proceeds.
2 / Investment Bankers Association 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 convertible debenture i s s u e .
h / 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.




H.1U

Exhibit F
Other S e c u r i t y O f f e r i n g s 1 /
( I n m i l l i o n s of d o l l a r s )
Long-tern
Foreigi 1 government 2 /
Federal agencyf 3/
1959
)
1956
1
1957
1959
1
1958
1957

January
February
March

77
59
2

197
54

56
50

139
200.
120

8k
k9
30

199
175

1,163
251

72

—

—

123
48
1*2

523

125

9
5
17

28
7
30

164

October
November
December

57
123
74

4
60
1

220

Year

99$

507

2,321

April
May
July
August
September

—

100

359
500
k89

357
35k
26k

20 5
337
153

486
675
289-

July
August
September

289
423
369

October
November
December

563
b/W

Year

572

Federal agency 3 / "

326
455
147

April
May

—

—

233
460
273

190
#8"

215

—

Short-term
S t a t e and l o c a l government 4 /
January
February
March

60

—

371
208
i a

638
430
505

* 209
161
329

336
469
501

272
272
252

437
206
330

224
370
512

231
1*15
243

303
9k
k59

k5k
114
137

1,238
255
116

3,910

3,27k

3,098

5,543

2/ P r e l i m i n a r y . '
1 / Data p r e s e n t e d i n t h i s e x h i b i t d i f f e r from t h o s e i n E x h i b i t E i n t h a t refundi n g i s s u e s , a s w e l l as new c a p i t a l i s s u e s , are i n c l u d e d . Long-term s e c u r i t i e s are d e f i n e d a s t h o s e 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 t h e United S t a t e s by f o r e i g n governments and
t h e i r s u b d i v i s i o n s and by i n t e r n a t i o n a l o r g a n i z a t i o n s . 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. Government. Source: long-term, S e c u r i t i e s
and Exchange Commission5 short-term, Federal Reserve.
4 / P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , warrants or c e r t i f i c a t e s and P ublic
Housing
Authority n o t e s . In some i n s t a n c e s EtiA n o t e s included may have a somewhat

l o n g e r term than one year. Source: Bond Buyer.



id

Exhibit G

H.m

Large Long-term Public S e c u r i t y I s s u e s f o r New C a p i t a l
(Other than U. S. Tre'asury) l /
Proceeds of Large I s s u e s O f f e r e d
( M i l l i o n s of d o l l a r s )

Corporate

Month

S t a t e and
l o c a l government

281
771
209
825
259
227
305
369
3U0
215
359
3U2
281*

1958 - June
JulyAugust
September
October
November
December
1959 - JanuaryFebruary
March
April
May

Other 2 /

86
Li

195
275
109
288
172
259
229
335
551
369
563
258
635

18
209
100
79
17U
35
176
20
50
60

Large I n d i v i d u a l I s s u e s Offered J u l y 1 through 17

Type 3 /

Issuer

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

Offering
Rating
yield

CORPORATE
Long I s l a n d Lighting Co.

1 s t mtg. bds.

25.0

Rev.-Ut.
Rev.-S.T.
Rev.-Q.Ut.

10.0
31.0
18.0

1960-79
1060-72
n.a.

50.0

1981

1989

5 i/k

5.10

A

STATE AND LOCAL GOVERNMENT
Univ. of Texas, Agr. &
Mech. College of Texas
State o f Ohio
Univ. of C a l i f o r n i a

2.1*0-3.50, . Aaa
2.1i0-3.60iy Aa

3.17
3.5U
2.88

—

OTHER
Quebec Hydro-Elec. Cotnm.




Deb.

,- 5

.

5.00

A

f

Ho lit

G-2
Footnotes

n=a 0 —Not a v a i l a b l 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 s e c u r i t y o f f e r i n g s - o f $ l £ 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 n o n - g u a r a n t e e d 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. 0 . d e n o t e s ~ 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 s e c u r e d o n l y
by income from p u b l i c u t i l i t i e s j R e v . - Q . U t 0 , revenue bonds s e c u r e d o n l y
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 b y
r e v e n u e 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 b y l e a s e payments.
h / 1972 m a t u r i t i e s n o t r e o f f e r e d .




Exhibit ti

11. Ill

Forthcoming; Large Long-term Public S e c u r i t y O f f e r i n g s f o r New Capital
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
During month f o l l o w i n g
date shown
Corporate S t a t e and
Other 2 /
l o c a l govt.

Date of
computation

195# - June 30
July 31
Auk. 29
Sept. 30
Oct. 31
Nov. 28
Dec. 31
1 9 # - Jan. 30
Feb. 2?
Mar. 31
Apr. 30
May 29
June 30

768
161
7 85
113
20h
301
210
270
1<8
396
216
287
165

225
55
2hl
2#
258
229
261
551
292
550
25)1
247
II46

71
75
it5
20
50
50

Subsequent to
date shown
Other 2 /
Corporate S t a t e and
local govt.
1,048
381
91k
216
#6
hoi
370
365
279
U76
316
332
272

235
125
U35
52ii
675
683
515
856
hH 1
761
517
761
500

71
75
h$
20
50
50

Forthcoming Large O f f e r i n g s , a s of July 17
Type

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

CORPORATE

1 s t m t g . p . l . bds.
Tennessee Gas Transmission Corp.
Pfd. s t k .
Transcontinental Gas Pipe Line Corp.
Transcontinental Gas Pipe Line Corp. 1 s t m t g . p . l . bds.
Conv.
sub. deb.
United S t a t e s Plywood Corp.
Com. s t k .
I n t e r n a t i o n a l Recreation Corp.
Pennsylvania E l e c t r i c Co.
1 s t mtg. bds.
.^-Northern S t a t e s Power Co.
Com. s t k .
Pan American World Airways, I n c .
P a c i f i c Gas & E l e c t r i c Co.
American and Foreign Power Co.
Commerce O i l Refining Corp.

July 21
July 28
July 28
July 28
July
Aug. 1|
Aug. 11
( r i g h t s expire)
Conv. sub. deb.
Aug. 12
h7.0
( r i g h t s expire)
1 s t & r e f . mtg. bds. 6 5 . 0
Aug. 25
Summer
Conv. j r . deb.
22.5
Summer
Deb.,bds. &. common
45.0
50.0
15.0
20.0
15.0
17.2
15.0
20.0

STATE AND LOCAL GOVERNMENT
T e r r i t o r y of Hawaii
C a l i f o r n i a T o l l Bridge Authority
^Commonwealth of Puerto Rico
* S t a t e of Vermont
DigitizedMichigan
for FRASER
Highway Department
Commonwealth of Pennsylvania
http://fraser.stlouisfed.org/

Federal Reserve Bank of St. Louis

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

12.5
3h»0
15.2
13.0
50,0
120.0

July
July
July
July
July
Aug.

21
28
28
28
30
h

0

H-2

h.iii

Forthcoming Large O f f e r i n g s , a s of J u l y 17 ( C o n t ' d )
Issuer

Type

Amount
(millions.
I of d o l l a r s )

Approximate d a t e
. of o f f e r i n g

STATE AND LOCAL GOVERNMENT ( C o n t ' d )
Los Angeles Sch. D i s t s . , . C a l i f .
S t a t e of Ohio
Chesapeake Bay F e r r y Commission
New York Thruway A u t h o r i t y

G.Q.
G.O.
Rev.-lit.
Rev.-Ut.

26.0
30.0
lliU.O
50.0

Aug. ij.
Aug. 11
Summer
Summer

OTHER
None
%—Included i n t a b l e f o r f i r s t t i m e .
y 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 $ l £ 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 n o n - g u a r a n t e e d 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
Y i e l d s on New and O u t s t a n d i n g
E l e c t r i c Power Bonds, Rated Aa and A 1 /
Aa.-rated o f f e r i n g y i e l d s
A-rated o f f e r i n g yields
Amount above
Amount above
Actual
Actual
( p e r c e n t ) seasoned y i e l d s ( p e r c e n t ) seasoned y i e l d s
(basis points)
(basis points)
1952 - 1958
High
Low

5.00 (9/14/57)
2 . 9 3 (3/31/510

1959 - Jan. 7
20
28
Feb. 18
Mar. 11
25
26
31
Apr. 3
15
16
29
May 1
13
14
20
21
26
June 4
17
26
July 9
10
15

4.60

1*-U3
4.43
4 . 41

87
-3

22
21
7

4.95
4.95

38
34

5.oo

38
29

4.93

31

123
-15

4.752/

23

4.67

18

4.85
5.06

17
13

5.13

27

4.92^
5.10
5.10

6
24
19

5.10

19

34
40
4
11
9
9
13

4.60

4.95

5.50 (11/7/57)
3.00 (3/17/510

* — S i n g l e o b s e r v a t i o n , not an a v e r a g e .
1 / Covers o n l y 3 0 - y e a r f i r s t mortgage bonds, a s r e p o r t e d i n Moody's Bond
S u r v e y . Except where i n d i c a t e d , t h e a c t u a l y i e l d f i g u r e and t h e amount above
s e a s o n e d y i e l d s a r e a v e r a g e s of o f f e r i n g s d u r i n g t h e i n d i c a t e d p e r i o d and of
t h e d i f f e r 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 d a y . Average m a t u r i t y f o r t h e seasoned i s s u e s
v a r i e s from 26 t o 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 i n c l u d e 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 .
3 / P r o v i d e s f o r a 7 - y e a r p e r i o d d u r i n g which i s s u e may n o t be c a l l e d f o r
r e f u n d i n g a t a lower coupon r a t e .




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

-

U. S.
Govt.

Cash

ities
1957 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of A s s e t s
a t End of Year
1958 - Jan.
Feb.
Mar.
Apr.
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value o f A s s e t s
a t End of Year
1959 - Jan.
Feb.
Mar.
Apr.
May

Uses of Funds 1 /
BusiS t a t e and
ness
local govt
ities

Mortgages

Other

ities

28
-18
59
-9
-30
47
-17
22
138

11
-79
-62
5
-32
-32
13
-92
-181

1,29k

7,028

42,133

2,377

35,271

13,206

-93
-51
20
-17
74
-20
20
-17
-1
-19
52
12?

171
15
-119
11
-70
47
175
42
7
12
25
-139

221
106
277
208
135
194
182
128
201
303
133
394

51
10
23
13
28
35
24
36
19
25
31
13

191
125
11*0
113
116
10I4
123
140
139
186
146
303

111
144
60
19
. 167
140
46
147
74
53
100
185

172
169
181*
321*
163
198
2a
212
258

Total
sources
or uses

10
26
2
lit
11
7
13
10
10

172
186
i a
163
195
151+
170
132
237

;

1*27
1*19
392
584
381
467
1*29
394.
469

34
135
65
87
77
93
6
110
7

101,309

652
349
• 401
347
450
5oo
570
476
439
560
467 .
879

1,365

7,205

44,615

2,685

37,097

14,452

107,419

-83
-57
-14
-24
10

280
-71
-185
22
-16

185
223
251
21*2
193

59
30
66
49
79

114
139
136
116
135

171
174
108
80
97

726
438
362
485
498

1/ Uses of funds represent 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 ,
rather than g r o s s , u s e s .
Source! I n s t i t u t e o f L i f e Insurance.




Exhibit K
Sources and Uses of Funds by
Savings and Loan A s s o c i a t i o n s
( I n m i l l i o n s of d o l l a r s )
Uses of Funds 1 /
u. s .
Govt.
MortGash
gages
ities
2/
I957 - Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of A s s e t s
a t End of Year
1958E/- Jan.
Feb.
Mar.
Apr.
MayJuly
Aug.
Sept.
Oct.
Nov.
Dec.
Value of A s s e t s
a t End of Year
1959 - Jan.
Feb.
Mar.
Apr.
May
June

26

Loo
1*1*6

Other

Total
sources
or u s e s
1*92
639
597
3k
1*1*0
1*50
480
1*1*7
6ll*

Sources of Funds
Net
change BorrowOther
s a v i n g s ing J /
capital
308
li52
821
-52
252
321*
361
378
923 '

11
21
101
-37
37
1*7
16
10
125

-1*9
39
185
-320
-103
11
-18
86
U31

26

1*07
ii60
357

-5
23
-65

1*16
278
253

115
ll*0
31
-9h
59
56
87
60
-5

2,11*6

3,173

1*0,01*9

2,770

1*8,138

1*1,912

1,379

1*, 81*7

191*
21*7
335
398
528
582
533
557
571*
605
1*65
532

12
8
10
102
100
-37
-80
9
1*2
131
102
-1*1*

131
1*09
553
651*
679
803
196
607
685
735
661
863

l*5o
373
1*81*
356
508.
937
62
353
1*1*0
501
1*77
1,073

-377
-127
-89
113
-32
I69
-39
55
85
58
1*1
215

58
163
158
185
203
-303
173
199
160
176
11*3
-1,25

-119
173
209
116
38
177
-297
-70
-76
-108
1*1*
338

Ik
-1*0

1*1
2h

=

1*1*
-19
-1
38
13
81
1*0
111
11*7
107
50
37

1*21

173
166
-325
123
151
79
103
59
-Ii3l4

2,569

3,821

1*5,599

3,125

55,H1*

1*7,926

1,1*51

5,737

-300
-26
1
-183
28

296
97
79
106
23

1*10
1*27
593
701*
750

-53
^ 80
92
153
181

353
578
765
780
982

1*31*
1*08
529
1*20
601*

-181
-57
-5
98
63

100
227
21*1
262
315

~

2 / Preliminary.
~
'
1 / Uses of funds represent 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 ,
rather than g r o s s , u s e s . Savings and loan a s s o c i a t i o n s do not hold b u s i n e s s s e c u r i t i e s and data on h o l d i n g s of S t a t e and l o c a l government bonds, presumed t o be s m a l l ,
are not a v a i l a b l e .
2 / 1957 data ad ju sted t o include mortgage pledged shares a s c u r r e n t l y reported.
2 / Advances from Home Loan Banks and o t h e r borrowing.
Digitized forSource:
FRASER
Federal Savings and Loan Insurance Corporation.



Exhibit L

H.ll*

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

Cash

U. S.
Govt.
itles

1957 - Apr.
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec.

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

-76
-19
-72
-7
11
-17
-136
-136
-26

Value of A s s e t s
a t End o f Year

890

7,552

-60
63
36
-1*7
-5
1*2
-66
-5
18
-8
-38
101

-21
1*1
-85
-62
-36
11
19
-27
-92
-32
-2

1958 - Jan.
Feb.
Mar.
Apr.
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec. r /

Value of A s s e t s .
a t End of YearZ/ 921
Jan. y
Feb.
Mar.
Apr.
May
June

-96
18
bS
-111*
8

Uses o f Funds 1 /
B u s i - S t a t e and
local
ness
Mortgovt.
securgages Other
itiesE/
ities

60
93
75

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

121
127
118
122
111
103
121*
100
11*1

-20
62
-38
-29
28
18

4,331

682

20,951

76l

160
86
86
97
120
-21*
31*
8
3li
-6

23
1*
6
1*
-19
21*
8
2
2
-3
-1
-7

130
99
165
151*
195
253
193
198
181
195
151
171*

25
20
9
-29
1*0
5
-28
29
29
-1*6
li3
-3

63
62
72
62
61

55

1*7

Sources of Funds
Total
sources
or u s e s

3lt
21*6
150
82
166
188
-20
108
299

38
-9

35,168

278
251
31*3
91*
269
261*
152 .
251
237
1*0
123
309

Net
change
in
deposits

Other

7
169
265
16
90
206
3k
36
1*05

27
77
-115
66
76
-18
• -5U
72
-106

31,695

3,1*73

231*
11*9
336
93
181
300
88
11*3
267
95
1*2
1*18

_

a
102
7
1
88
-36
61*
108
-30
-55
81
-109

7,266

It,973

725

23,039

855

37,779

31*,01*1

3,738

119
39
62
-1*1*
13

-16
6
-31
58
-20

17
-1*
ia
-33
10

208
125
175
155
161

-58
32
38
-32
hs

175
216
330
-10
217

122
113
313
6
120

53
103
17
-16
97

,

1 / Uses of funds 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 .
£ / Includes 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
Reconstruction and Development, non-guaranteed Federal agency and o t h e r bonds a s w e l l
a s corporate bonds and s t o c k s .
' 1
y Adjusted t o e l i m i n a t e the e f f e c t of a merger of a l a r g e savings bank with a

commercial
bank.
Source.—Nat. Assoc. of Mutual Savings Banks and Federal D e p o s i t Insurance.Corp.
http://fraser.stlouisfed.org/

Federal Reserve Bank of St. Louis