Full text of H.16 Capital Market Developments : July 27, 1964
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Not for PublicationDECONTROT.TYFD AFTER SIX MONTHS H. 14 July 27, 1964. CAPITAL MARKET DEVELOPMENTS IN THE UNITED STATES eluding Review of Sources and Uses of Funds [of Financial Intermediaries During May) L 29 security financing. The volume of public security financing market this week will be somewhat smaller than last week's • s u b s t a n t i a l total, with the mix of offerings more heavily feed in State and local government issues. A substantial portion of this week's municipal volume will consist of $100 million of State of California bonds, on which bids received last week were rejected for purely technical reasons. c Long-Term Public Security Offerings 1/ (In millions of dollars) Week Ending Corporate New Capital | Refunding State and local govt. New Capital | Refunding Sold: July 17 July 24 36 r/ 115 217 r/ 284 12 Scheduled: July 31 30 216 . -- 1/ Federal Reserve estimates based on published reports of issues sold and scheduled for offering; corporate rights offerings are included as of the date subscription rights expire, r/ Revised. Security yields. Bond yields showed mixed changes last week, but on balance remained generally steady. Rates on Treasury bills showed some net advance. Early in the week they rose in response to the announcement of a $1 billion Treasury bill strip and to some concern about the possibility of an increase in the discount rate at the Bank of England. When the lal. r increase did not occur and the bill strip was well received, rates turned down again. The average effective Federal funds rate dropped to its lowest level since late July 1963. Yields in Securities Markets Level latest week (per cent) Change from preceding week (basis points) High-Grade Notes and Bonds Corporate New Seasoned U. S. Govt. Long-term 3-5 year State and local govt. 4.14 4.00 3.09 + 1 + 2 H. 14 Yields in Securities Markets (Cont'd) Level latest week (per cent) Change from preceding week (basis points) High-Grade Notes and Bonds Money Market Federal Funds Treasury bills 3-month 6-month Finance Company Paper 3.00 3.46 3.61 '3.78 - 50 + 3 + 6 3 FNMA secondary market operations. Sales in the secondary mortgage market by the Federal National Mortgage Association edged off further in June, to $9.5 million. The June total exceeded the reduced average in the first-three months of this year. But it was less than a sixth of the volume in June of last year even though at that time, sales were already moving sharply downward from earlier highs. Purchases by FNMA in June dropped to $3.8 million, the lowest since May, 1955. Purchasing volume earlier this year had reflected mainly exchanges with the Federal Housing Administration for FNMA-held FHA-debentures. Offerings in June also declined—to $9.3 million. Stock prices. Common stock prices, as measured by Standard and Poor's composite index of 500 stocks, eased one-half of a per cent last week to close at 83.46 on July 24. Trading volume averaged 4.5 million shares a day, down 0.2 million shares from the average /'"for the previous week. Institutional investors. Net inflows of savings during May at life insurance companies, savings and loan associations and mutual savings banks totaled $1.9 billion, a May record and 7 per cent greater than a year earlier. Assets of life insurance companies and deposits at mutual savings banks posted substantially larger gains this May than a year before. Growth in savings capital at savings and loan associations while only slightly greater than last year, reversed the pattern of year-over-year short-falls evident in earlier months this year. (Time and savings deposits at commercial banks rose $1.3 billion in May, 7 per cent less than in May 1963.) Assets of life insurance companies, excluding valuation changes, grew $0.6 billion in May, 15 per cent more than a year earlier. Net mortgage acquisitions, at $0.3 billion, were in the largest May volume since 1956 and one-fourth more than a year earlier. Moreover, holdings of U. S. Government securities rose moderately in contrast to a $0.2 billion reduction during May 1963, and the cutback in municipal holdings was moderately smaller. Net acquisition of business securities, on the other hand, totaled $0.2 billion, one-fifth less than last year. In H. 14 addition, acquisitions of foreign business securities (included in other assets) were only about one-third as large as in May 1963 when they amounted to $0.1 billion. Shareholders added $1.0 billion to their savings share accounts at savings and loan associations during May, a record by a small margin for that month. Mortgage activity continued in large volume, but net acquisitions, at $1.0 billion, were one-fifth less than a year earlier. Association borrowings (primarily from the Federal Home Loan Banks) declined moderately, and holdings of cash and Governments rose slightly. Growth in deposits at mutual savings banks amounted to $0.3 billion in May, one-sixth more than a year earlier. While net mortgage acquisitons, at $0.3 billion, were somewhat smaller, than in May 1963, holdings of Governments were reduced less than in the preceding year and business and miscellaneous security holdings rose moderately. More detailed information concerning recent capital market developments is presented in the attached exhibits. Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. LONG-TERM B O N D YIELDS, H I G H - G R A D E r\J m i l m e ioui covuhmjhi _Ll_L-U-l-l-Li-AA J JJ Exhibit A - Part II Date Corporate Aaa 1/ U . S . Govt. long-term 2/ State and local government Aaa 3/ Spread between U. S. Govt, and State and Corporate local Aaa Aaa (per cent) 1959-60 - High 1961 - High Low 1962 - High Low 1963 - High Low I96I4 - High Low June July July July , July 26 3 10 17 24 j>/ 3.65 3.37 3.12 3.26 (9/24/59) (7/6) (2/23) (1/4) .59 .57. 14.61(1/29/60) a. 16(9/15) k.21(3/17) i4.U3(2/!6) 1,. 23(12/2$ u.37(12/27) u. 19(3/29) 4.41(7/17) 4.35(2/28) 14.1*2 (1/8/60) U.07 (12/29) 3.70(5/12) U.12 (2/23) 3.85 (12/28) In 16 (12/27) 3.87(1/18) 4.20(4/17) 4.11(7/3) 2.88 (11/8) .31: .1+7 .30 3.18 (11/21) 2.93 (3/28) 3.16(3/26) 3.07(7/16) .35 .21 .29 .19 .k6 1.01* .80 1.05 .88 1.09 1.01 4.41 4.40 4.40 • 4.41 4.40/ 4.12 4.11 4.12 4.13 4.14// 3.11 3.10 3.07 3.07 3.09^ .29 .29 .28 .28 .26 1.01 1.01 1.05 1.06 1.05 .92 .76 2 / Weekly average of daily figures* Average term of bonds included ie 22-24 years® Weekly average of daily figures. The series includes bonds due or callable in 10 years or more, 3/ Thursday figures. Only general obligation bonds are included; average term is 20 years. Note*—Highs and Iowa are for individual series and may be on different dates for different series. For spreads, high refers to widest, and low to narrowest# EXHfeiT e. fon 2. L O N G - T E R M B O N D YIELDS, L O W E R - G R A D E Til Date Corporate Baa 1/ State and local govt. Baa 3/ Spread between Aaac and Baa State and Corporate local govt. (per cent) 1959-60 - High 1961 - High Low 1962 - High Low 1963 - High 1961* - High Low June July July July / July Notes 26 3 10 17 24 £/ 5.3$(2Z«/60) 5.13(10/27) 5.00(4/21) 5.11(1/3): u. 92 (12/21) U.93(1/4) U.83(13/15) 4.87(6/26) 4.82(2/24) U.U6 (1/7/60) U.l6(3/23) 3.93(IV») U.OU(Vn) 3.52(5/17) 3.63(6/27) 3.52(5/23) 3.58(3/26) 3.51(4/16) .81* .81 .66 •71* .63 .71 .1*8 .48 .42 1.08 .93 .57 .82 .56 .63 .1*1* .49 .36 4.87 4.86 4.84 4.83 4.82 , 3.55 3.55 3.55 3.53 3.53 . 46 .46 .44 .42 .42 .44 .45 .48 . 46 .44 Tor footnotes see Exhibit i* EXHIBIT C. f o r t I SHORT- A N D V i\A I N T E R M E D I A T E - T E R M INTEREST RATES/ G O V I R N M I N T t-MONIH III M o r k . l Yl.l I p L ^ v f ^ y L n . Piscoum: R IHI - . , A ' JMIOHTH IIUS' Mork.l Vl.ldi w 1 M 1 M M M 1 M M I M I M I I II M 11 M IT Exhibit C - Part II Discount rate y 1959-60 - High U.00 3.00 1961 - High 3.00 Low 3.00 ' 1962 - High 3.00 Low 3.50 1963 - High Low 3.00 3.50 196U - High Low 3.50 July July July July 26 3 10 17 24 £/ 3.50 3.50 3.50 3.50 3.50 3-month bills 2/ Yields 6-month , bills 2/ 3-5 year Issues 2/ Spread between yields cm > month bills and yields on 6-mo* bills|3-5 yr* issues U. 5 9 ( W 6 0 ) 5*07(1/8/60) 5.00(12/24/39) 2*90(1/29) 3*86(8/11) 2*35(4/28) 3.15(5/12) 2.97(7/13) 3.13(7/20) 3.88(2/2) 2.65(6/8) 2.7U 6/8) 3.J|l(l?/28) 3.55(1Vis) 3.68(1^6) 14.07(12/27) 2.88(3/15) 2.93(3/8) 3.UU(i/ifl) 3.56(3/6) 3.74(3/6) 4.23(3/27) 3.43(7/17) 3.52(7/3) 3.98(7/17) .12 • 2U .02 .17 .ou .21 .04 1.81 1.51 .92 1.19 .52 .70 .12 .71 .48 3.47 3.48 3.48 3.43 3.46^ .06 .04 .05 .12 .15 .55 .52 .51 .55 .54 \ ' X 3.53 3.52 3.53 3.55 3.61/ 4.02 4.00 3.99 3.98 4.00 .79 .a JZ 5®* 1 ? Show ii that in effect at end of period at the M e t a l Reserve Bank of Be* York. & mrket yield) weekly averages ocmputed from daily closing bid prices. Series of 3-6 year issue* consists of selected notes and bonds* Note.—flighs and lam are for Individual series and nay be on different dates for different series* Tor spreads, high refers to widest, and low to narrowest* EXHIBIT D. Port I SHORT- A N D BANKS AND INTERMEDIATE- T E R M INTEREST RATES, OTHER PRIVATE B O R R O W E R S / Exhibit D Stock exchange call loan l / Prime rate l / v —4 - Part II Finance company paper 2/ Federal funds 3/ Spread between 3-mcu bills and finance co. paper (per cent) 1959-6CHigh 1961 - High Low 1962 - High Low 1963 - High 5.5o U.5o U.50 It. 5 0 U.50 U.5o U.50 U.50 U.So U.50 L.5o 5.00 5.13(1/22/60) U.00 (5/13/60) li.50 3.00(12/30) 2.50(8/5) 2.90 (11/17) ,U3 ( V 2 7 ) 3.25(7/21) 2.88(6/1) 3.88(12/27) 3.00 (12/28) 1.30 (1/26) 3.50 (12/27) 1.02 .56 .11 .li5 .19 .39 .12 .41 .22 4.50 U.50 4,50 3.13(5/31) 3,93(4/3) 2.U5 ( 7 / 2 f \ 3.50(7/17) 4.50 4,50 3,75(5/22) 3.00(7/24) June ^ 2 6 4.50 4.50 3.88 3.50 .41 July 3 4.50 4.50 3.88 3.50 .40 July 10 4.50 4.50 3.86 196U - High Low 3.50 .38 July 17 4.50 4.50 3.81 3.50 .38 July 24 2/ 4.50 4.50 3 . 78 3.00 .32 2/ Weekly rate shown is that in effect at end of periqd. Stook Exchange call loan rate is going rat* on call leans secured b y customers* stock exchange collateral at N e w York City banks. Prima rate is that charged by large banks on short-term loans to business borrowers of the highest credit standing. 2/ Average of daily rates published b y finance companies for directly placed paper for varying maturities in the 90-179 day range. 3 / Weekly average of daily effective rate, which is the rate for the heaviest volume of purchase and sale transactions as reported to the Federal Reserve Bank of Hew York. N o t e t — H i g h s and lows are for individual series and may be on different dates for different.series. ' T o r spreads, high refers to widest, and low to narrowest. STOCK M A R K E T on* of do II on A V v # x y N / V / V f I / ^ r" $10(1 HAIKU CkiDIT ^CHANGI IN $1111$ „ MUJisni.9i.jh_ v J w y i I I I I I I I I I I I I 1 I t 1 I I I I I I t I I I I I 1112 Mil Exhibit E - Part II May June July July July 10 17 24 £/ 2.80 3.96 3.01 10.1 2.U 7U.W12/27) 84.01(7/17) 75.50(1/3) 2.93 3.10 6.3 6.1 4.0 80.72 80.24 83.36 84.01 83.46 3.01 3.05 2.94 2.93 2.94 5.0 4.4 5.1 4.7 4.5 credit Customers' Bank debit balloans to "others" 5/ ances h/ (In millions of dollars) Stock ma] 3 1961-62 - High Lew 1963 - High 196k - High Low Trading Common volume 3/ stock yields 2/ (millions (per cent) of shares) I I Stock price index 3/ Total 5 , 602(12/61) U, 259 (12/61) 1 , Ul8 ( 5/9/62) U,i|2U(l/6l) 3,253(3/61) 1,161(3/8/61) 7,298(11/63)5,586(11/63) 1,738(1^25) 7,314(4) 7,120(2) 5,524(1) 5,366(3) 1,867(7/8) 1,720(1/22) 7,277 7,232 5,439 5,373 1,838 1,859 1,867 1,862 2/1 |/ E^"Ev2EE*.E"iitE others, ior further detail tee Bulletin. York'atook'rShtoe. lAloh oiriy nmrjlk .ooountli FEDERAL N A T I O N A L M O R T G A G E ASSOCIATION-^ S E C O N D A R Y MARKET O P E R A T I O N S Million! el dell I I I I I T T T T T T I 140 PURCHASES \ Exhibit F Estimated Total offerings Immediate purchase - Part II to F N M A S tandby commitment! Purchases Sales by by FNMA FNMA (In m i l l i o n s o f d o l l a r s ) 1963 - June 21.2 .5 20.7 61.3 15.7 .1 14.9 35.7 18.3 16.9 8.5 Sept. 19.8 .4 .2 Oct. 18.5 18.4 .1 15.3 16.3 1.6 2.2 7.7 10.9 .6 15.8 Nov. Dec. 1964 20.7 15.8 18.8 20.1 July Aug. 12.0 11.8 14.1 15.6 14.0 .1 15.5 Mar. 15.1 20.1 15.0 19.9 .1 .1 .3 Apr. 28.5 28.5 .1 May June 28.9 9.3 28.9 9.2 - Jan. Feb. . . .1 11.1 13.0 8.8 2.3 16.8 3.8 26.4 12.7 25.8 3.8 10.9 9.5 • — L e s s than $50,000. 1/ Data represent unpaid principal balances of the mortgages involved, exclusive of premiums, discounts, or other charges. Offerings are amounts of applications received during the period from sellers proposing that FNMA. execute purchasing contracts. An Immediate purchase oonfcract covers existing mortgages which the seller must deliver t o FNMA within 4 5 days. A standby c cmnitment contract relates to proposed mortgages on housing not yet under construction which the seller must usually deliver within one year. Purchases include those under both immediate purchases and standby commitment contracts. Data exclude FNMA activity under Special Assistance and Management and Liquid ating Pro grams. YjELPS O N NEW A N D SEASONED CORPORATE BONDS ; NEW ISSUES Exhibit Q - Part II Y i e l d s o n N e w C o r p o r a t e B o n d Issues A d j u s t e d to a n A a a b a s i s 1964 - Jan. Feb. Mar. Apr. May June W e e k l y averages 1964 - High Low Apr. 3 10 17 24 Number Average of included (mil. yield of dollars) (per c e n t ) issues May 3 3 6 1 10 8 1 • 1 150.0 125.0 166.0 130.0 278.0 230.0 50.0 50.0 :: 2 13.0 1 8 15 22 29 June 5 12 19 26 4.53(5/8) July 3 4.30(2/21) 10 17 » 24 4.50 4.38 4.43 4.48 4.46 4.43 1 1 3 3 2 2 2 • 2 2 1 - 0 M o n t h l y averages: 1 1 N u m b e r A m ' t o f Issues A v e r a g e of included (mil. yield of dollars) (per c e n t ) 8.0 50.0 89.0 95.0 36.0 60.0 35.0 55.0 80.0 4.45 4.53 4.45 4.43 4.45 4.45 4.44 4.43 4.41 30.0 4.37 :: 4.4ft X by Moody's Inroators Service lexcept aerial ana convertible is sues, orreringe or natural gas pipeline, and foreign companies, and bonds guaranteed by the Federal Government) weighted by fd.se of offering* ' Before averaging, new offerings are adjoated to a composite iaa bails by deducting from the actual reofferlng yield the excess of the weekly average yield for seasoned tenia of the appropriate into at tyquallty group over the conmosite average for aeaaoned iaa-rated bonds (Moody's), Averages oonsidered unrepresentative beoauae of apeelal oharaoteristioa of 1he offerings included are denoted by an asterisk^ H i g h and low r e f e r only to y i e l d s , and n u m b e r s and a m o u n t o f issues a r e t h o s e o n w h i c h these averages are based. H. 14 Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) Capital New 1 Corporate 1/ 1963 1964 January February """ March April May July August September 613 594 1,144 2,111 1,040 e/ 1,400 930 904 1,013 1,153 771 1,132 800 676 637 795 573 773 557 1,013 819 1,415 819 678 1,064 2,369 4,551 2,351 2,847 2,109 3,246 2,228 3,056 1,902 2,561 e/ 6,920 5,198 7,307 10,553 5,284 7,186 9,747 % &/ e/ October November December 1st,quarter — 2 n d quarter 3rd quarter 4th quarter 1st half Three quarters Year 549 860 819 930 685 754 JBf % State and Local 2/ 1963 1964 1962 ' 1962 944 773 812 732 746 976 876 1,133 628 j £/ 1,180 £/ 600 e/ 800 869 866 930 873 912 786 e/ 680 708 449 612 544 427 S>1 £/ £/ 900 1 ,051 729 416 650 578 i 550; SJ 2,529 e/ 2,580 2 ,454 2 ,665 1 ,837 2 ,197 2,637 0 2,571 1,528 : 1,779 I e/ 5,109 ,118 5j 6 ,955 9,,151 5,208 ; 6,790 ' 8,568 ?• Excluding finance companies^/ 1st 2nd . 3rd 4th Year e/ 2/ 1/ 2/ 3/ quarter quarter quarter quarter 2,169 2,970 1,767 2,330 2,284 2,529 1,768 2,854 1,996 ej 4, 101 SJ . 9,434 ' 9.236 Estimated by Federal Reserve. Preliminary. Securities and Exchange Commission estimates of net proceeds. Investment Bankers Association of America estimates of principal amounts. Total new capital issues excluding offerings of sales and consumer finance companies. ? H. 14 New Corporate Security Issues, Type of Issuq and Issuer (In nillions of dollars)r Quarter or Month Total Gross proceeds f<K n e w rnni t-fll anH rufni Common Bom is Publicly' Privately pfd. Offered Offered Net proiDeeds for Memo: Foreign issues Mfg. Public Communi- Other included Utility cations issuers 1962 - X II III IV 2,37.8 3,250 2,184 2,957 1,155 1,389 853 1,089 716 1,222 1,024 1,568 507 639 307 300 68 257 56 179 655 996 601 769 430 983 375 568 456 231 275 321 717 794 659 986 1963 - I II III IV 2,700 3,634 2,436 3,466 1,108 1,389 898 1,319 1,306 1,820 1,251 1,780 287 424 287 367 128 . 434 109 47 947 591 896 968 326 794 285 530 236 221 150 118 842 1,241 868 1,629 1964 - I II e/ III 2,499 4,74 V 978 1,313 1,221 i,r>3b 300 1,850 29 418 5%2 438 863 273 1,64b 1,240 1,462 1962 ~ July Aug. Sept. Oct. Nov. Dec. 630 922 632 976 784 1,197 200 477 176 539 286 264 366 363 295 314 446, 808 67 82 161 123 52 125 13 43 46 34 99 217 218 166 153 271 345 118 110 148 141 175' 252 88 120 67 260 4 57 159 301 199 ' 282 2531 451 695 642 1,363 1,049 1,340 1,246 810 756 = 871 1,116 891 1,459 350 259 499 380 550 459 279 336 283 511 183 626 102 94 91 217 95 113 100 100 87 125 159 83 25 43 60 56 182 196. 46 21 42 10 10 27 135 220 592 148 216 227 297 272 237 240 214 515 114 115 97 341 222 230 107 100 78 201 131 198 149 123 146 157 175 250 109 155 174 150 442 270 1963 - Jan. Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. 1964 - Jan. Feb. Mar. Apr. p/ May c/ 985 710 805 2,175 1,1%4 1,450 338 279 361 383 470 460 243 289 - 774 452 694 675 431 318 501 481 549 751 526 342 353 429 507 650 121 88 91 1,363 . 147 340 5 16 8 32 •,.36 125 68 43. . 71 92 58 86 25 "• 39 41 \13 64 157 83 34 1,369 ?J 238 191 412 369 373 499 187 ' 240 441 531 461 637 515 324 400 435 3V7 630 250 July ~ Aug. Sept. £/ Preliminary. e/Estimated by Federal Reserve. 1/Gross Proceeds exceed net proceeds by the cost of flotation. 2/For total see Exhibit Hj other issuers are extractive, railroad and other transportation, real estate and finance and commercial and other. Source.--Securities and Exchange Commission. v-i Other Security Offerings (In millions of dollars) Gross long-term 1/ January February March April May June July August September E/ J e/ 1964 4 82 69 27 If. 75 Foreign government 2/ 1963 232 133 . 76 57 114 11 63 83 November December Jan- - June 2 e/ 33 J. Year January February March April May JuOfc^/ Juiy August September 333 Federal agency 3/ 1963 1964 148 1962 246 156 186 461 -- P/ -- 2 75 459 -- 150 175 ; 174 200 e/ 2 75 -- -- 793 863 1.167 1 .188 737 New short-term 4/ Federsi'i agancv 3/ State and local government 5/ 247 12 -106 18 75 -156 -189 -459 272 466 226 -482 -186 198 -367 -364 292 97 127 589 82 195 -30 -84 18J 284 228 319 -118 -10 261 414 62 78 227 327 208 339 -157 258 -173 -406 379 123 259 71 -102 55 146 234 551 -80 -339 -161 771 103 236 -407 442 79 £/ Nov-.mbe.r December Jan. - June 623 1962 142 10 35 10 86 50 25 8 31 151 88 101 n.a. Year 529 223 692 378 259 29 319 1.600 1 ,004 < 4 , ^/Preliminary. e/Estimated by Federal Reserve, n.a.--Not.available. V T h e s e data differ from those in Exhibit H in that refunding issues, as well as new capital issues are included. Long-term securities are defined as those maturing in more than one. year. 2/Includes securities offered in the United States by foreign governments and their political subdivisions and international organizations. Source: Securities and Exchange. Commission. 3/ Issues not guaranteed by the U. S. Government. Source, long-term Securities and Exchange Commission short-term, Treasury Department and Federal Reserve. 4/These data differ from chose in Exhibit H and above in that they represent new offerings less retirementswhether from the proceeds of refunding issues or from other funds, Data include only issues with original maturity of one. year or less. 5/Principally tax and bond anticipation notes, warrants or certificates and Public Housing. Authority notes. In some instances PHA notes included may have a somewhat longer maturity than one year. Source. Bond Buyer and Federal Reserve, ' I / h H. 14 Exhibit K Large Long-term Public Security Issues for New Capital (Other than U. S. Treasury) 1/ Proceeds of Large Issues Offered (In millions of dollars) Corporate Bonds (Other than Convertible bonds convertibles) - J une . July Aug. Se.pt. Oct. No 7. - Jan. Feb. Mar. Apr. May June 348 180 218 215 380 117 515 225 200 296 235 415 390 348 199 236 237 446 180 547 307 263 335 1,557 452 650 State and local governments --- 60 35 51 --- Other 2/ 372 279 329 135 734 373 111 577 358 282 698 274 384 -- 19 18 22 66 63 32 22 . 28 38 1,271 37 260 460 60 20 174 200 50 20 15 275 Large Individual Issues Offered July 1 through 24 Type 3/ Amount (millions of dollars) Coupon Maturity rate or Offernet in- ing terest cost yield Rating Corporate Com. stk. 1st ref. mtg. bds. Deb. Com. stk. Pfd. stk. Deb. 1st mtg. bds. 64.1 30.0 50.0 33/9 15.0 G.O. G.O. Rev.-Q.-Ut. G.O. G.O. Rev. -Q. -Ut. 13.6 15.0 18.0 14.0 10.0 10.0 Rev.-Ut. 32.5 1968-2003 Pacific Gas & Elec. Co. Baltimore Gas & Elec. Co. J. C. Penney Credit Corp. Nationwide Corp. Northern State Pwr. Corp. Marine Midland Corp. Milwaukee Gas Light Co. 60.0 18.0 1994 1984 4-1/2 4-1/2 4.40 4.57 1989 1989 4-1/2 4-3/4 4.60 4.65 State and Local Government Oregon State Bd. of Higher Ed San Juan 3 Puerto Rico Atlanta Fulton Co. Rec. Auth. Memphiss Tenn. Houston Ind. Sch. Dist., Tex. Alabama Highway Auth. Met, Denver Sewage Disp. Dist. #1, Cole. 1967-94 1965-87 1966-93 1965-89 1966-92 1970-84 3.15 3.50 3.28 3.03 3.25 3.48 4/ 2.40-3.30" 2.20-3.55 2,35-3.40 2.10-3.15—' 2.35-3.206/ 2.90-3.50 3.41 2.50-3.50 Aa A Aa Aa A A V K-2 Large Individual Issues Offered July 1 through 24 (Cont'd) Type 3/ Amount (millions of dollars) Coupon rate or OfferMaturity net inte • ing est cost vield Rating State and Local Government (Cont'd) Seattle, Wash. Merced Irr. Dist., Cal. Penr.c. State Pub. Sch. Bldg. Auth. New York State Housing Fin. Agency New York City, New York Rev. -Ut. Rev. -Q.-Ut. Rev. -Rent. Rev. -Rent. G.O. 45.0 36.0 13.4 75.1 123.2 1968-94 1969-89 1966-2003 1965-95 1966-95 3.48 3.65 3.39 3.64 3.14 Bonds 260.0 1966 4-1/8 2.65-3.70 A 2.70-3.62-, A 2.30-3.SO 17 2.20-3.70 2.30-3.50 A Other Federal HomeJLoan Bank 4.13 -- ^--Rights offering, n.a.—Not available. If Includes corporate and other security offerings of $15 million and over; State and local government security offerings of $10 million and over. 2/ Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issued by Federal agencies. 3/ In the case of State and local government securities, G.O. denotes general obligations; Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by revenue from quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev-Rent., revenue bonds secured solely by least payments. 4/ 1/10 per cent bonds maturing 1994 not publicly reoffered. 5/ 1/10 per cent bonds maturing 1988-89 not publicly reoffered. -61 Bonds maturing 1982-92 not publicly reoffered. 2/ 1 per cent bonds.maturing 2003 reoffered to yield 3.95 per cent. : : | ' H.14 Exhibit L Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U. S. Treasury) 1/ Expected Proceeds from Forthcoming Large Issues (In millions of dollars) During month following date shown State and Other 2/ local govt. Corporate 1963 - June July Aug. Sept. Oct. Nov. Dec. 1964 - Jan. • Feb. Mar. Apr. May June 28 31 31 30 31 29 31 31 28 31 30 28 30 142 329 210 561 255 137 469 316 454 669 345 341 ' 539 170 221 158 240 145 392 305 155 224 1,587 651 600 292 75 20 25 15 Subsequent to late shown State and local govt. Corporate Other 2/ 75 20 287 512 468 757 401 349 731 667 646 953 575 598 716 215 267 183 240 145 1,992 1,905 1,771 1,649 1,837 844 668 307 25 15 Forthcoming Large Offerings as of July 24 Type Corporate Northern 111. Gas. Co. Texas Gas Trans..Corp. *First Natl. Bank of Atlanta Northern State Pwr. Co. Utah Pwr. & Lt. Co. San Diego Gas & Elec. Co. Wells Fargo Bank State and Local Government ^Colorado Springs, Colo. Florida State Bd. of Ed. State of California Nashville & Davidson Co. Met. Govt. Tenn. Sacramento Mun. Util. Dist., Cal. San Francisco, Calif. Amount (millions of dollars) 20.0 25.0 16.9 15.0 15.0 20.0 Approximate date of offering July Aug. Aug. Aug. Aug. Aug. 30 5 11 (rts. ex.) 12 19 26 1st mtgc bds. Deb. Conv. cap. notes 1st mtg. bds. 1st mtg. bds. S. F. deb. Conv. cap. note & com. stk. 100.0 Sept. Rev.-Ut. Rev.-Rent. G.O. 13.5 25.0 100.0 July July July 28 28 30 12.0 12.0 15.8 Aug. Aug. Aug. 4 6 10 G.O. Rev.-Ut. G • 0. (rts. ex.) Forth Coming Large Offerings as of July 24 (Cont'd) Issuer Type Amount (millions of dollars) Approximate date of offering State and Local Government (Cont'd) *Los Angeles Dept. of Wtr. & Pwr., Cal. Va. State Highway Auth. Mass, Turnpike Auth. ^Dallas, Tex. Pittsburgh, Pa. Dade County, Fla. Forth Worth, Tex. Rev.-Ut. Rev.-Q.-Ut. Rev.-Q.-Ut. G.O. G.O. G.O. G.O. 24.0 31.0 35.0 12.5 35,0 46.0 14.1 Aug. 26 Aug. Aug. Sept. 14 Indefinite Indefinite Indefinite Other None. ^--Included in Table for first time. 1/ Includes corporate and other issues of $15 million and over; State and local government issues of $10 million and over. 2/. Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues for Federal agencies. Note:--Deletions for reasons other than sale of issue: None. 1 HV14 Exhibit M Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Date Amount (millions of dollars) Public Offerings Issuer and Description of Issue A. 5/7 15.0 Sold May 1 through July 2'. Republic of Finland—6% bonds, maturing . 1976, offered to yield 6.247, ' B. None Prospective Offerings H. 14 M-2 Part II: Date reported Note: Private Placement--Reported May 1 through July / Amount (millions of dollars) Issuer and Description of Issue 5/8 4.0 5/8 10.0 Pacific Great Eastern Railroad Co.--4-1/2% sinking fund debentures, maturing 1994--! no information available on takedown. 5/18 21.0 Upper Lakes Shipping Ltd.--6% installment; notes, maturing 1966-79--no information available on takedown. 6/2 50.0 Quebec-Hydro-Electric Power Authority-4-1/2% debenture, maturing 1984--no information available on takedown. 6/23 25.0 7/8 45.0 Israel Discount Bank Ltd.--5-1/2% capital notes, maturing 1979--no information available on takedown. " City of Montreal--4-7/8% debentures, maturing 1966--no information available on takedown. International Minerals and Chemicals Corp. (Canada) Ltd.--notes, maturing 19S2--no : information available on takedown For retrospective data on aggregate foreign corporate and government security offerings in the United States see Exhibits I and J. There is no simple relationship between the data shown in this Exhibit and that shown in Exhibits I and J because the latter includes privately placed securities in the period in which funds are actually takendown but only in the amount of takedown, while the placements shown in this exhibit are included when reported, frequently with little or no information coiicerning::tir/iing df tbkedotinsr Full' or::partial-takddowns may take place both prior and for FRASERto the data a placement is reported. ^--Includes in table for first time. subsequent Digitized i - ' l\ Exhibit N Sources and Uses of Funds by Life Insurance Companies U. S. Cash Govt. Securities Value, of assets at end of period: 1960 - Dec. 1961 - Dec. 1962 - Dec. 1963 - Dec. 1964 - M?y Changes; 1962 - Jan. Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. 1903 - Jan. Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. xj 1,329 1,392 1,456 1,442 1,1C0 Uses of Funds 1/ Business 1State and Securities 2/ local Mort- Other Bonds & Short-term Govt, se- gages Stocks paper curities (In millions of dollars) 48,631 51,362 53,468 55,997 57,043 295 193 348 381 419 3,606 3 3 902 4,037 3,876 3,8:7 223 - 99 65 1 25 156 - 75 135 -76 12 91 44 -24 265 4 - 22 248 -95 132 58 121 206 - 24 -21 42 182 -48 12 28 136 3 6 • 135 35 120 - -224 402 225 43 52 179 -53 » -118 72 31 20 69 -40 -325 29 3 117 -15 -12 12 11 25 12 -21 -17 -9 -134 -17 -75 -13 29 -1 54 -10 87 6 -21 119 6,428 6,135 6,171 5,755 5,731 133 -71 -211 rl9 -IG: -94 36 -33 14 -43 -42 -32 58 143 233 141 ,367 219 156 106 186 & 5 274 391 190 ' 50 13 84 . -50 105 88 -56 64 109 -411 41,815 44,250 46,957 50,543 512, 11- Total Memo:Total. sources Excluding Valuation Change 3/ 17,472 19,582 20,854 22,909 23.9\) 119,576 126,816 133,291 160.903 144.31 i 114,925 121,270 127,796 134,805 137,671 149 114 H3 119 19/ 198 139 237 178 296 332 . 605 145 100 60 27 -17 -14 148 149 87 159 290 138 73,7 442: 356 457 360 209 681 603 473 679 771 707 712 • 418 351 542 575 325 634 531 484 717 666 . 571 31 -9 -18 -27 215 139 270 285 360 236 256 178 842 471 468 629 778 418 371 591 -29 -2? -15 -43 1 -4 -13 256 244 299 269 303 277 730 151 354 260 -54 242 4 -88 46% 454 743 561 551 653 605 704 r 972 631 403 846 597 696 -159 270 27 261 285 296 963 774 -17 2./1964 - Jan. -15 - 2 23 298 Feb. 131 -68 298 518 665 8 -74 233 -94 440 - 8 315 156 536 Mar. -108 -42 -26 191 225 526 Apr. 365 609 4 606 .09 c36 -Uu 311 -26 232 42 12 May June 1/ Uses of funds represent net changes in assets and therefore reflect net,, rather than gross 2/ Includes securities of domestic corporations only. Source.—Institute of Life Insurance. xj Revised. 3/ Excludes changes in miscellaneous assets (one portion of the "other" in this table) which includes most, but not all, valuation changes, as well as changes in a few other items. , H. 14 Exhibit 0 I; & ^ Sources and Uses of Funds by Savings and Loan Associations Uses of f ands 1/ U. S. Govt. MortCash secur- gages ities Value of assets at end of period: 1960 - Dec. . 1961 - Dec. 1962 - Dec. 1963 - Dec. 1964 . Changes: 1962 - Jan. Feb. -Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1963 - Jan. Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. 1964 - Jan. Feb. Mar. Apr. 5:/ May June 2,680 3:, 315 3,926 3,964 3,493 -354 96 128 -77 10 258 -384 -37 82 93 100 696 -333 106 90 -139 -37 237 -449 -48 30 67 32 482 -396 33 12 -1-46 32 4,595 5,211 5,563 6,440 6,700 60,070 68,834 78,770 90,849 94,93/ 182 95 35 -43 -8 -64 46 -8 42 35 46 -6 518 592 784 830 962 1,006 880 1,003 829 944 790 798 188 172 177 35 -24 90 70 -38 % 112 74 129 -108 158 64 71 -1C -17 f §• ZSources of [funds Net change savings capital (In millions of dollars) Other assets Total sources 4,131 71,476 4,775 82,135 5,346 93,605 6,178 107,431 6,'/VI U I . v j ; -105 39 95 93 401 -62 -178 100 83 40 164 -99 Borrowing 21 ST gK Other 62,142 70,885 80,236 91,205 94,U20 2,197 2,856 3,629 5,011 4,-5 u j 7,137 8,394 9,740 11,215 12,, 241 822 1,042 803 1,365 1,138 364 1,058 1,036 1,112 1,100 1,389 494 565 918 374 761 1,395 25 635 857 815 857 1,655 -318 -98 -81. 125 98 364 - 89 91 * 96 36 -23 457 128 355 205 304 506 -621 250 332 83 261 266 -723 170 371 190 447 427 -694 356 406 65 349 279 -891 671 696 905/ 1,061 1,178 1,244 1,103 1,208 1,097 1,118 806 992 108 46 117 92 394 -29 -150 151 38 82 175 24 418 1,020 1,289 1,049 1,511 1,542 1,574 1,273 1,277 1,341 1,142 1,390 985 844 1,195 478 969 1,642 -36 643 916 795 804 1,734 -737 -195 -96 124 115 594 254 224 296 197 . 59 547 604 710 906 909 959 -189 109 135 123 438 177 916 1,124 464 754 1,102 321 974 -421 -213 -54 134 375 76 -58 :9b 1,412 uses. Savings and loan associations do not hold business securities and data on holdings of State and local government bonds, presumed to be small, are not available. 2/ Advances from Home Loan Banks and other borrowing. Source--FSLIC. lJ R-visad ' 2 3 Exhibit P . Sources and Uses of Funds by Mutual Savings Banks ' Cash Value of assets at end of period: | I960 - Dec. 1961 - Dec. 1962 - Dec. 1963 - Dec. 1964 - Mpy. Changes: 1962 - Jan. Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. 1963 - Jan. Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. 1964 - Jan. Feb. Mar. Apr: May June U. s. Govt. securities Uses of funds 1/ State and Business local govt. securities 2/ ities Rages (In millions of dollars) SomceaaTotal Net sources change Other in Other deposit: 874 937 956 912 847 6,243 6,160 6,107 5,863 6,05^ 5,076 5,040 5,177 5,074 5,150 672 677 527 440 419 26,702 28,902 32,056 36,007 37,601 1,005 1,115 1,297 1,406 1,541 40,571 42,829 46,121 49,702 51,610 36,343 38,277 41,336 44,606 46,124 4,228 4,552 4,785 5,096 5,486 10 47 12 -79 12 54 -46 -29 44 15 -35 124 94 77 209 -216 16 -38 -11 26 3 -162 -19 -26 17 1 25 -35 2 17 66 14 2 3 27 -4 -7 -18 -18 -26 -20 -5 -5 -9 -5 -15 -6 -15 253 188 230 270 254 302 290 312 243 305 272 236 -118 12 62 -45 68 -22 -10 53 28 -32 36 28 250 307 -519 -131 334 306 285 367 315 114 274 345 83 165 472 -51 184 424 172 215 429 186 147 545 167 142 150 -11S 119 153 -114 -72 127 -200 -137 51 21 -61 22 37 -63 -18 38 -28 -8 101 39 31 260 -241 -25 13 -19 -34 -61 -177 -14 -22 4 -11 -9 -72 -5 19 14 25 43 -22 -75 1 -15 -11 -26 -5 -8 -3 -3 -2 -3 -2 -8 436 320 313 327 357 354 314 300 274 369 321 353 13 -6 49 -58 52 -11 11 71 37 -42 38 -34 330 375 610 -111 392 306 254 344 329 97 259 390 229 215 526 11 232 422 137 174 430 198 118 578 101 160 84 122 160 -119 US 171 -102 101 141 -188 64 32 6 -68 28 88 82 84 -53 -12 15 47 16 -13 12 -13 -3 -1 -4 345 283 298 r/ 334 333 93 5 25 r/ -64 75 477 435 327 135 433 77 400 175 260 495 k -69 90 r/ 47272 161 r/' Revifefed', • 7. I/ Uses of funds represent net changes in assets and therefore reflect net, rather than gross uses. 2/ Includes Canadian government and political subdivisions, International Bank for Reconstruction and Development, nonguaranteed Federal agency and other bonds as well as corporate bonds and stock. Source.--NAMSB 47 -so