Full text of H.16 Capital Market Developments : June 12, 1961

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Not f o r Publication DECONTROLLED AFTER SIX MONTHS
June 12, 1961

H.Ik
}CAPITAL MARKET DEVELOPMENTS
iTATES
iuding Monthly Review of Sources and
Uses of Funds of Financial Intermediaries)

The volume of large public security financing to obtain new
capital was up considerably from the previous week which was shortened
by the Memorial Day holiday and i s expected to be even larger t h i s week.
Last week security o f f e r i n g s by corporations aggregated $87 m i l l i o n ,
State and l o c a l government bond sales t o t a l e d $Hi2 million, and the
Federal Land Banks sold $76 million of bonds for new c a p i t a l . This
week, ending June 16, seven large State and,local government bond o f f e r ings with par value of $163 million are on t h e calendar while corporate
issues with gross proceeds of $198 million are scheduled.
The t o t a l volume of security offerings l a s t week was expanded
greatly by the large AT&T and Federal Land Banks refunding i s s u e s .
AT&T sold $250 million of debentures maturing in 1998 with a k-3/k per
cent coupon, at a net cost to the company of in73 per cent, to refund
a l i k e amount of debentures due in 1986, bearing a 5-3/8 per cent coupon.
The Federal Land Banks sold two §115 million issues of bonds of which
a l l but # 6 millio n was f o r refunding.
Long-term bond y i e l d s . Yields on a l l tvnes of long-term bonds
increased l a s t week. The y i e l d on Aaa State and l o c a l government bonds
rose seven basis points, bringing yields on tnese bonds t o a new ixxgh
for 1961. U. S. Government bond y i e l d s rose six basis points while
corporate bond yields advanced only s l i g h t l y .
Short- and intermediate-teim i n t e r e s t rates. Yields on U. S.
Government s e c u r i t i e s rose l a s t week. Interaiediate-tena Government
y i e l d s rose another 13 basis points to e s t a b l i s h a new high f o r the
year, while the y i e l d on 3-month and 6-month Treasury b i l l s rose two and
four basis points, r e s p e c t i v e l y . The interest rate on directly placed
finance company paper with 90-179 day maturity was increased another
one-eighth per cent l a s t week t o 2-3/k per cent, raiding z .the weekly
average to 2.71 per cent from 2.58 per cent. The average e f f e c t i v e rate
for Federal funds was 1.95 per cent, considerably l e s s than in the
previous four weeks. Other short- and interaediate-term i n t e r e s t rates
were unchanged.
•
?
.
Stock p r i c e s . Common stock prices, as measured by Standard
and Poor's composite index, declined s l i g h t l y l a s t week, c l o s i n g on
June 9 at 66.66. Trading volume averaged 3.9 million shares per day,
about the same as during -the two previous weeks, but considerably l e s s
than during the similar period of May.




I n s t i t u t i o n a l i n v e s t o r s . The n e t i n f l o w a t t h r e e major types
of savings i n s t i t u t i o n s — l i f e insurance companies, mutual savings banks,
and savings and loan a s s o c i a t i o n s — t o t a l e d $0.8 b i l l i o n i n A p r i l , onee i ^ i t h more than a y e a r e a r l i e r . " (The i n c r e a s e in time and savings
d e p o s i t s a t commercial banks was also larger than a y e a r ago.) On a
s e a s o n a l l y adjusted b a s i s , however, t h e April i n f l o w t o each of t h e s e
i n s t i t u t i o n s was probably moderately smaller than the record rate of
recent months.
L i f e insurance company a s s e t s increased
m i l l i o n in A p r i l ,
5 per cent more than a year e a r l i e r . Although.a record volume of b u s i ness s e c u r i t i e s was sold in A p r i l , l i f e insurance company a c q u i s i t i o n s
were r e l a t i v e l y l i g h t , about the same a s a year e a r l i e r . Both the
increase i n mortgages and the reduction i n U. S. Government s e c u r i t y
holdings were somewhat l e s s than l a s t A p r i l .
The net i n f l o w of savings c a p i t a l at saving and loan a s s o c i a t i o n s i n A p r i l was $397 m i l l i o n , 7 p e r cent more than i n t h e corresponding month a year ea r l i e r . Both new savings c a p i t a l and withdrawals were
l a r g e r t h i s year than l a s t , but the former increased more than t h e l a t t e r .
Borrowing—largely from, t h e Home Loan Banks—which had "been reduced l e s s
i n t h e f i r s t quarter t h i s year than in i 9 6 0 , rose a s usual i n A p r i l , but
the i n c r e a s e t h i s y e a r was s u b s t a n t i a l l y more than l a s t A p r i l . Net
mortgage a c q u i s i t i o n s were $68? m i l l i o n , more than o n e - f i f t h l a r g e r than
in April i 9 6 0 . A small reduction i n U. S. Government s e c u r i t y holdings
was o f f s e t by a s i m i l a r in c r e a s e in cash and d e p o s i t s .
Deposits a t mutual savings banks declined s e a s o n a l l y in A p r i l ,
as withdrawals exceeded d e p o s i t s f o l l o w i n g quarterly payment of i n t e r e s t .
m i l l i o n , however, was s u b s t a n t i a l l y l e s s
The n e t d e p o s i t reduction of
than l a s t y e a r , r e f l e c t i n g a l a r g e r r i s e in new d e p o s i t s than in w i t h drawals. Net a c q u i s i t i o n s of mortgages t o t a l e d $179 m i l l i o n , t h r e e - e i g h t h s
more than in April i 9 6 0 . A l l other types of investment holdings were
reduced, as they were a y e a r e a r l i e r . Reduction i n U. S. Government
s e c u r i t y holdings t h i s year was p a r t i c u l a r l y large—$216 m i l l i o n ; Treasury
b i l l h o l d i n g s , which had been b u i l t up e a r l i e r in the year, were reduced
sharply and there were a l s o s u b s t a n t i a l d e c l i n e s i n holdings of n o t e s
and marketable bonds.
More d e t a i l e d information concerning recent c a p i t a l market
developments i s presented i n the attached e x h i b i t s .

Capital 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 Federal Reserve System.




LONG-TERM

BONP

YIELDS

HIGH-GRADE

\ i
i-J




\A

Exhibit B - Tables f o r Exhibit A

-5-

Long-tera Bond Yields
High-grade

Date

U. S. Govt.
long-term 2 /

Corporate
Aaa 1 /

(per cent)
1^51* - Low
1957 - High
1958 - Low
1959-60 - High
I960 - Low
1961 - High
Low
May 12
May 19
May 26
Jv.ne 2
June 9 p /

2 . 8 5 (4/23)
k . l h (9/27)
3.55 (5/2)
It. 6 1 (1/29/60)
It. 23 (9/9)

p

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

State and
local
government
Aaa 3 /

2.1£ (8/6)

1.90 (9/2)

3 . 7 6 (10/18)
3 . 0 7 (4/25)
It • 1*2 (1/8/60)

3.1*5

2.61*

3.65

•30
.60

(8/29)
(5/1)
(9/24/59)
(9/1)

h.3h ( 1 / 6 )
It. 21 (3/17)

3.75 (8/s)
3.92 ( 1 / 2 0 )
3.70 (5/12)

2.99
3.35 ( 6 / 8 )
3.12 ( 2 / 2 3 )

it. 27
It. 25
It. 27
it. 29
it. 3 1 /

3.70
3.71
3.78
3.80
3.86

3.2lt
3.21*
3.27
3.28
3.35

.30
.50
.31*
.92
• 53
.76
.1*6

.22

'

.59
.19
.57
.ltO

.1*6
.lt7

•57 .
. 5it
.lt9
.lt9
.lt5

't1
.52
.51

Lower-grade

Date

State and
l o c a l govt.
Baa 1 /

Corporate
Baa 1 /

Spread between
•Aaa and Baa
S t a t e and
Corporate
l o c a l govt.

(per cent)
19 Sit - Low
1957 - High
1958 - Low
1959-60 - High
i960 - Low
IS'61 - high
Low
May 12
May 19
May 26
June 2
June 9 2/

5 . 1 0 (11/29)
I t . 5 1 (7/11)
5 . 3 6 (2/12/60)
It. 98 (9/9)

5.12 (1/27)
5.00 ( 1 / 2 1 )
5.01
5.01
5.01
5.02
.
5.03-^

i*.16 (3/23)
3.95 ( 6 / 1 )

.71
.81
.72

.96
1.21
.93
1.08
. 96
.93
.61*

3.95
3.95
3.95"
3.95
3.99

.71*
.76
.71*
.73
.72

.71
.71
.68
.67
. 6it

.52
1.27

2.93 (8/5)
^ i t . 5 l (8/29)
3.61* (5/1)

3.1tlt (12/31)

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

.

.

g / Preliminary.
1 / Weekly average of daily figure a. Average term of bomta Included i e 23 *26 year*.
2/ Weekly average of daily figures. The aeries includes bonds due or callable i n 10 yearf or more.
3 / Thursday figures. Only general obligation bonds are included) average term i e 20 years.
Note.—-Highs a»4 lows are for individual series and may be on different dates for different s e r i e s .
For spreads, high refers to widest, and low to narrowest.




3
EXHIBIT C
SHORT-

AND

INTERMEDIATE-

TERM

INTEREST

RATES

GOVERNMENT

l V

mis
•id.

\

V p
, y

/

i

r

j

H

fr

Y 3

-

-

MONTH

1.

DISCOUNT

1

Market Yie

BANKS

AND

OTHER

PRIVATE

[DISCOUNT
|

RATES

/
/




BORROWERS

RATE

- S

YEAR

ISSUES

A
W

A M /
\ 1-V\/

|

3

V

v

Exhibit D - Tables l'or Exhibit C
3 i o r t - and Intermediate-tern I n t e r e s t hates
Government
Discount
rate

1/

19514 - Low
1957 - High
•1958 - Low
1959-60 - High
i960 - Low
.1961 - High
Low
. May 12
% May 19
^ May 26
f|June 2
U'June 9 jp/

1.50
3.50
1.75
Loo
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00

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

3-month
b i l l s 2/
.61

L 59
2.11

(1/8/M)
(10/20)

Spread between y i e l d s on
3-month b i l l s and y i e l d s on
6-mo. b i l l s | 3 - 5 yr. i s s u e s

.66
.86

1 . 6 6 (4/30)

(6/11)

3 . 6 1 * (10/18)
.58 ( 5/29)

3-5 year
issues 2/

3.02
5.07
2.38

(12/26)
(1/8/60)
(12/30)

I4.0U (10/16)
2,11* ( 6 / 6 )

.26

5 . 0 0 (12/24/69)
3.1*0 (12/30)

2.56 ( 3 / 3 )
2.17 (1/27)

2.75 ( 3 / 3 )
2.35 (14/28)

3.69 ( 6 / 9 )
3 . 1 5 (5/12)

2.23
2.29
2.39
2.38
2.1*0 X

2.1*0
2.1*3
2.53
2.60
2.61*

3.15
3.21*
3.1*3
3.56
3.69

.Oli

1.81

. 1

.12

.92

.17
.11*
•.Hi
.22
.2li

.92
•95
1.0I*
1.18
1.29

Banks an^i. Otherj-Private Borrowers
Prime
rate 1 /

Finance company
paper 3 /

Federal
funds. U/

Date

Stock Exchange
c a l l loan 1 /

1951* - Low
"1957 - High
,1950 - Low
1959-60 - High,
i 9 6 0 - Low
1961 - High
Low

3.00
11,50
3.50
5.50
U.50
l*.5o
l*.5o

3.00
1*.50
3.50
5.00
1*.50
1*.50
l*.5o

2.88 (3/10)
2.50 15/26) .

2.85 ( 2 / 1 7 )
.1*3 ( 1 / 2 7 )

May 12
May 19
May 26
June 2
June 9 2 /

l*.5o
l*.5o
l*.5b
l*.5b
l*.5o

l*.5o '
I4.50
l*.5o
1*.50
l*.5o

2.50
2.50
2.50
2.58 .
2.71

2.hO
2.70
2.55
2.06
1.95

r

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

(per cent)
1.25
3*88
1.13
5'. 13

(12/31)
(11/15)
(8/8)
(1/22/60)

2 ; 8 8 (12/30)

n.a.
3.50 (11/8)
.13 (V2»)
1 * . 0 0 (5/13/60)
. 9 5 (12/2)

0
.63
-.35
1.02
.22
.56
.11
.27
.21
.11
.20
•31

Stock Exchange c a l l loah rut* l a going rate on oall loans secured by oustonere 1 stock exchange c o l l a t e r a l a t
Nan York City banks. M a e rate In that charged by large banks on ahnrt-ter* l o a m t o business borrowers of
t h e hlgheut credit standing,
2 / h-.rfctt y i e l d ; weekly averages computed from d a l l y c l o s i n g bid prloea. S e r i e s of 3-5 year I s s u e s c o n s i s t s of
s e l e c t e d notes and bonds,
»
3 / Average of d a l l y r a t e s published by finance companies f o r d i r e c t l y planed paper for varylsg maturities i n the
90-179 day r a ^ e .
4 / Weekly average of d a l l y e f f e c t i v e r a t e , which I s ths rate for the heaviest vol urns of purohass and sale t r a n s a c t i o n
1
as reported t o the Federal Reserve flank of Now York.
Not*.—Hltfhs and lows are f o r individual s e r i e s and may be on d i f f e r e n t dates f o r d i f f e r s * dates for d i f f e r s n t s o r i s s .
hir spreads, high r s f e r s t o widest, and lew t o narrowest.




STOCK

MARKET

M O R T G A G E A N D B O N D YIELDS




hxhibit r - Tables f o r Exhibit E

%

Stock Market
Date

Com ton
Trading
stock
volume 3/
yields 2/ (millions
(per cent) of shares)

Stock pricc
index 1 /

-9-

Stock market customer credit
Customers
Bank
debit balloans to
ances 4/
"others" i z
(In millions of dollars)

Total

60.51
39.^8
67.27
58.48

3.08
4.72
2.90
3.32

4.9
1.4
5.8
3.6

5,190(4/61) 3 , 9 3 6 ( V 6 l ) 1,326 (5/31)
4, 1416(1/61) 3,253(1/61) 1,152 (3/8) .

April
May
May 26
June 2
June 9 e /

65.83
66.50
66.43
66.73
66.66

2.95
2.92
2.92
2.91
2.94

5.1
4.6
3.8
3.9
3.9

5,190
n.a.
n.a.
n.a.
n.a.

Hi

1957-60 - High
Low
1961 - High
Low

4,764

(4/59) 3 , h 0 1 ( 4 / 5 9 )

3,554

( 1 / 5 0 ) 2 , 1 8 2 (12/57) 1 , 0 6 0 (11/57)

1 , 3 7 3 (5/59)'

3,936

1,254
1,326
1,310
1,326

n.a.
n.a.
n.a.

n.a.-.Hot available.
J>/ P r n l l e - l r a r y ,
§ 1 / Standard and P o o r ' s composite lndox of 500 ocijmon s t o c k s , v j t k l y o l o n t i j p r i c e s , 1911-43=10. hiontt.ly data a r e
is
avwrages of d a l l y f i c u r o o r a t h e r t h a n of F r l d c y ' c o n l y . HitJim and loi-s nre f o r Friday*. 1 data o n l y ,
V
Standard and P o o r ' o ocmposlto otook y i e l d tnocd on Wednesday data converted t o wookly c l o s i n g p r l e e o by Federal
Roccrve. Yluldo nhovn o r e f o r dateo on which p r i c e Index reached I t s high or low.
# 3 / Avercyea of d a l l y t r a d i n g volv.-.ie on t h e Keif York Stock Exchange'.
% 5 / B n c l o f ™<>nth flfiurco f o r member f l i r . a of the Nov York Stock Exchange whloh c a r r y margin account#! excludeo balance*
secured by U. S . Govcrinier.t o b l i g a t i o n s .
,v 5 / t'eclncadiy f i g u r e a f o r weekly r e p o r t i n g member t a n k s . Excludes loans f o r purchaslr-: or carryt«VS U. S. 0 o v e r r e n t
f:to curl t l » e . P r i o r t o J u l y 1 , 1959, ouch lo.-nn are excluded only a t tanks I n Hoi; York and Chicrw<o. Vonkly r e p o r t i n g
tanks account f o r about 70 per cant of loans t o o t h e r o . Por f u r t h e r d e t a i l sou B n l l e l t n .

Mortgage and bond Yields 1/
Date

FHA
mortgages 2/

1953-58 - High
Low
1959-60 - High
Low

5.63
4.56
6.2k
5.57

1961 - January
February
March
April
May

6.00
5.88
5.82
5.75
n.a.

(11/57)
(2/55)
(1/60)
(3/59)

Aaa corporaito
Spread between now
bonds 1 /
corporate bonds and
New 3/ | Seasoned i\/ FHA mortfagtic |Sou.«jonod bonds
4.81
2.714
5.29
4.29
1.35
4.31
4.26
4.42
4.51

(6/57)
(3/51)
(9/59)
(2/59)

1.12
2.81*
4.61
4.12
4.32
4.27
4.22
4.25
4.27

(9/57)
(4/54)
(1/60)
(1/59)

1.96
.54
1.76
' .83
1.65
1.57
1.56
1.33
n.a.

.90
-.12
.77
.08

"

;

.03
.04
.04
.17
.21

1 / Nolthor mortgage nor bond y i e l d s take I n t o account oorvlolr.g eootc which are much higher f o r mortgftp.es than
bonda. G e n e r a l l y , bonds pay i n t e r e n t eeml-nnnually; mortgages, monthly. Mortgage y i e l d s , i f computed a s e q u i v a l e n t -4
t o a semiannual i n t e r e s t investment, would bo s l i g h t l y higher than given i n the t a b l e .
2/ D*uod on FHA f i n l d - o f r i o e opinions about average bid p r i c e s I n the p r i v a t e secondary market f o r new-home
mortgnges f o r Immediate d e l i v e r y . Since l a t e 1955, d a t a r e l a t e only to 25-yenr mortgajres with downpayments of 10
per cent o r more, weighted by probable volume of t r a n s a c t i o n s . Yields computed by FT'B, assuming 25-ycnr mortgap.es
a r e paid off In 12 y e a r s . Danhed l i n e s I n d i c a t e periods of odjuatnent t o ehnnges I n the c o n t r a c t u a l I n t e r e s t r a t e .
3/ f i r s t Kationnl City Dunk of New York. Averageo of o f f e r i n g y i e l d s of a l l new I s s u e s of p u b l i c l y - s o l d bonds
r a t e d MA, Aa or A by Moody's I n v e n t o r s Servloo (except s e r i a l and convertible i s s u e s and o f f e r i n g s of n a t u r a l gas
and f o r e i g n oompmUeo) weighted by nlze of I s s u e . Yields on Aa and A I s s u e s are f i r s t a d j u s t e d t o a n Aaa b a s i s
by the fiivf nd b«twc«in y i e l d s of outstanding bonds in those c a t e g o r i e s and those on .\aa-rated bonds. The s e r i e s r e i clvingno i n i n d u . i t r i e l oon-.p o s l t l o n , m i t u r i t y , t y p e , e t c . of new o f f e r i n g s .
4 / Hooity' s I n v e n t o r s S e r v i c e . Monthly averages of d u l l y d a t a . See Exhibit B.




-10-

Exhibit G
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In m i l l i o n s of d o l l a r s )

1961
January
February
March

New c a p i t a l
Corporate 1 /
State and l o c a l 2/
1 I960 r / 1 1959
1961
1 I960
! 1959
570
715
860

821
738
6#

708
661
71*0

761
577
1,0& •

89k
785
887

e/725
e/550
e/800

July
August
September

" 736:
967
726

October
November
December

890
'956
852

900 *

April
May '
June

1st
2nd
3rd
hth

quarter
quarter
quarter
auarter

"1st h a l f
Three Quarters
Year

580
667
$62
e/2,000
3/1,000
1,100

1,609
h,100e/

'6,909

SI

991 .

931
568
987

535
7it0
703

k92
606
683

1*1+3
521
1*70

879

3lt8
501
191

$

86JU-

2,lil5
2,382
2,128
2,698

2,201
2,567
1,979
2,6142

ts

1,771
6,750
9,392

9,653

6I48
859
638

700
bll
568

2,109
2,075e/

593

m

1,880
2,25:6
I>780 '
1,3^0

i,;i*33
li52l

14,136
5,916
7,257

14631*
6,067
7,588

Excluding f i n a n c e companies 2 /
1st
2nd
3rd
Itth

quarter
quarter
quarter
quarter

EA>509
S/3,9#

I ear
e7
1/
2/
y

i;?i6
2,165
2,018 .
2,3h7

1,9992,412
1,716
2,503

8,216

8,630

Estimated.
g / Preliminary.
r j Revised.
S e c u r i t i e s and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of p r i n c i p a l 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 f i n a n c e
companies.




- C l -

Exhibit H
othe r Security Offerings
(In millions of dollars)
Foreign government 2/
1961
I960
1 195?
January
February
March

. 6

2
175
70

81
60
2

April
May
June

31*
72
1*0

58
50
1*2

July
August
September

25
1
36

October
November
December

20

Year

Federal agency 3/
|
1961
I I960

252

1959

182/
150
150

199
175

11*8
351*
—

—

85
1
35

199
—

98
150

3k
2
1*1

33
30
70

160
11*9
181

86

533

51*7

1,672

.

707 .

Net shorti-term h/
Federal agency 3/
State and l o c a l government 5 /
January
February
March

160
195.

58
11*0
-80

.

-1*
181
1*

-1W*
-162
-171*

-196
-202
-59

-82
176
33

79

-277
170
320

50
368
286

95
23
-201 .

362
133
79

-81
-176
-117

-23
-33
-250

280
21*0
1*1*

362

-633

April
May
June

70
-ike
-157

197
-25
-197

July
August
September

1*8
145
-175

57
392
131

October
November
December

-16
5b
-189 ' •

Year
B/
1/

18

1,969

Preliminary.
These data d i f f e r from those In Exhibit 0 i n that refunding i s s u e s , as well as new capital i s s u e s , are included.
Long-term eeeurlties are defined a i those maturing in more than one year.
y
Includes s e c u r i t i e s offered in the United States by foreign governments and their subdivisions and by i n t e r national organisations. Source* Securities and Exchange Commission.
3 / Issues not guaranteed by the U. S. Oovoranoat. Source* long-term. Securities and Exchange Commission* shorttare , Treasury Department and Federal Deserve.
^
f j These data d i f f e r from those i n Exhibit 0 and above In that they represent new offerlnge l e s s retirements, whether
from the proceeds of refunding issues or from other funds, frta Include only Issues with original maturity of one
year gr l e s s .
5 / Principally tax and bond anticipation notes, warranto t-r e e r t l f i o a t e e and Public Housing Authority notee. I »
sons Instances PHI notee Included may have a somewhat longer term than one year. Source* Bond Buyer and
Federal Reserve.
—:—




Exhibit I
Large Long-term Public Security Issues f o r New. Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large I s s u e s Offered
(In m i l l i o n s of d o l l a r s )
Month

State and
local
government

Corporate

i960 - May
June
July
August
September
October
November
December
1961
January
February
March
April
May

139
1*1*2
303
581
266
566
1*65
260
. 11*7
2#
70
1,572
557

Other 2 /
.

23U
561
191
#8
367
1*6
186
222
391
360
1405
383
256

28
30

75
25
77
150
• 99
67
25

Large Individual Issues Offered June 1 through 9

Issuer

Type 3 J

Amount
Coupon
Offering
( m i l l i o n s Maturity
net i n t e r - y i e l d
of
dollars)
e s t cost

Rating

CORPORATE
Indiana and Michigan Elec.
Columbia Gas System Inc.
Public Service Elec'. & Gas
Union Tank Car Co.

1986
1986

5-1/8
5-1/8

5.00
5.10

A
A

1986

5

5.00

A

S.F. deb.
Deb.
Com. stk.
S.F. deb.

20.0
30.0
1*7.0
1*0.0

Rev.-Ut.

17.0

1965-2001

3.88

2.1*0-3.90

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

30.0
11*. 0
10.0
32.0
19.7
60.1*
20.0

1966-99
1962-86
1962-90
1962-72
1962-90
1962-86»
1962-85

3.77
3.71
3.57
2.92
3.60
3.55
3.1*0

2.50-3.83
1.75-3.75
1-.50-3.70
1.50-3.15
1.70-3.80
1.70-3.80
1.60-3.60

STATE AND LOCAL GOVERNMENT
Monroe Co. Wtr. Resources
Auth., New York
Sacramento Mun, U t i l . D i s t .
Calif.
La. St. Bond & Bldg. Comm.
Milwaukee, Wisconsin
State of Ohio
Nassau County, New York
New York, New York
Santa Clara County, C a l i f .
OTHER
Federal Land Banks




Bds.

76.0

1965

1*

1*.29

Aa '
Baa
Aa
Aa
A
A
Aa

1-2

footnotes
1/

Includes corporate and other security offerings of £L5 million and over;
State and l o c a l government security offerings of t>10 million and over,
2 / Includes foreign government and International Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal agencies.
J / In the case of State and l o c a l government s e c u r i t i e s , G. 0. denotes general
obligations; Rev. - U t . , revenue ooligations secured only by income from
public u t i l i t i e s ; Rev.-Q.Ut., revenue bonds secured only by revenue from
q u a s i - u t i l i t i e s j Eev.-S.T., revenue bonds secured by revenue from s p e c i f i c
. taxes only; Rev.-Rent.,- revenue uonds secured s o l e l y bj l e a s e payments„




-IllForthcoming Large Long-term Public Security Offerings f o r New Capital
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues
During month following
date shown
Corporate State and
Other 2 /
l o c a l govt.

Date of
computation
I960 - May 31
June 30
July 29
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 30
1961 - Jan. 31
Feb. 28
Mar. 31
Apr. 28
May 31

1*83
237
596
216
576
1*1*0
260
91
110
55
1,580
51*2
1*87

30
30

277
180
275
283
212
258
'

77
50

2k2

1*12
' 181
307
559
236
1*31

15
75

Subsequent to
date shown
Corporate State and
Other 2 /
l o c a l govt.
553
1*55
1,006
731
836
585
335
1,036
1,0146
1,125
1,700
687
611

Forthcoming Large Offerings, a s of
Type

502
380
321*
283
336
391
560
682
3&)
638
806
579
771

60
• 30
127
50

15
75

June 9

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

CORPORATE
Arizona Public Service Co.
P. Loriliard Co.
Virginia E l e c t r i c Power Co.
S t a l e Loan and Finance Corp.
Gimbel B r o s . , Inc.
Baltimore Gas and E l e c t r i c
Michigan -Wisconsin Pipe Line Co.
Southern E l e c t r i c Generating Co.
Vai-ian A s s o c i a t e s
Brooklyn Union Gas Co.
Consolidated Edison Co.
C a t e r p i l l a r Tractor Co.
Jim Walters Corp.
Thompson Ramo Wooldridge Inc.
Clark Equipment Credit Corp.
^Northern I l l i n o i s Gas Co.

Com. s t k .
S.F. deb.
1 s t ref.mt.g.bds.
S.l'. deb.
S.F. deb.
• S.F. deb.
1st mtg. p. 1. bds.
1 s t mtg. bds.
Com. s t k ,
1 s t mtg. bds.
1st refTDitg. bds.
S.F. deb.
1 s t sub. deb.
Deb.
Deb.
Com. s t k .

15.9
1*0.0

30.0

25.0
17.2
20.0
30.0
20.0
17. h
20.0

50.0

50.0
20.0
25.0
20.0
20.0

Hunt Foods and Industries Inc.

Conv. sub. deb.

38.8

Automatic
Canteen Co. of America



Conv. sub. deb.

20.8

June 13
( r i g h t s expire)
June lit
June lit
June l h
June l h
June 15
June 15
June 16
June 19
( r i g h t s expire)
• June 20
June 21
June 28

July 11
( r i g h t s expire)
July
I r i g h t s expire) .
July
I r i g h t s expire)

Forthcoming Large O f f e r i n g s , as of June 9 (Cont'd)
Amount
Approximate date
(millions
of o f f e r i n g
of dollars)
CORPORATE (Cont'd)
Commerce Oil Refming Corp,
Realty C o l l a t e r a l Corp.

Deb., bds. & com.
C o l l . t r . notes

h$.o
20.0

Indefinite
Indefinite

11.3

June 12
June 13
June 13
June 13
June 15
June 15
June 15
June 22
June 23
June 27
June 28
June 28
July 11
July 11
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

STATE AND LOCAL GOVERNMENT
San Francisco, California
State of Connecticut
Indianapolis, Indiana
State of Kentucky
S e a t t l e , Washington
Georgia State Highway Authority
Philadelphia, Pa,
State of Texas
ttState of Delaware
-"-San Diego, California
Harris County> Texas
-^Maryland State Roads Commission
Los Angeles, California
*Memph;.ss Tennessee
New York State housing Fin. Agency
Massachusetts Turnpike Authority
Orleans Parish School D i s t . , La,
- Dade County, Florida
Jacksonville Expressway Auth.

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

10.0
25.0
20.0
30.0
25.0
25.0
10.6
12.5
29.5
15.0
18.8
13.5
5o.o
175.0
10.0
1*6.0
iiO.O

Bds.
Rev. bds.

25.0
50.0

a.It

OTHER
Commonwealth of Australia
Tennessee Valley Authority

June 28
June 29

v " I l T O l u d L 1 M ^ o r a t e ° m d 1 o t h e r 1 t o m e s of $15 m i l l i o n and over; State and l o c a l
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 sale of i s s u e : None.

2/




Exhibit K
Yields on New and Outstanding
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 y i e l d s
Amount above
Amount above
Actual
Actual
seasoned
y
i
e
l
d
s
seasoned y i e l d s
(per cent)
( p e r cent)
(basis points)
(basis points)
1952-1959 - High
Low

5.30
2.93

1960 — Jan.
Feb,
Mar,
Apr.
May
June
July
Aug,
V Sept,
Oct,
Nov.
Dec,
1961 - Jan. 12
18
Feb, 8
16
16
Mar, 23
24
Apr, 13
21
26
27
May 1?
18
19
23
26

87

5.09
4.82
It. 91
*li.88
4.83

i:!$

4,82
*5.00

4.60

4.55
4.44

45
25
37
32
26
.22

.

23
37
49
11
7

123
-15

*5.30^/

28

4.97
5.14
5.15
*1.95
L87

9
35
29
11
6

*4.80

24

4.97

35

4. 60

-2

4.65

5
-13
5
-5
17
32

-2

h.h7
4.50

k.37

4.80

5.65 ( 9 / 1 8 / 5 9 )
3.00 ( 3 / 1 7 / 5 1 )

%
4.802/

4.57

43
29
13
20

4.65

27

4.72

19

4.80

27

4.94

40

* — S i n g l e observation, not an average,
n.a.—Not a v a i l a b l e .
1 / Covers only 30-year f i r s t mortgage bonds, as reported in Moody's Bond Survey.
Except where i n d i c a t e d , the actual y i e l d f i g u r e and the amount above seasoned
y i e l d s a r e a v e r a g e s of o i l c r i n g s auiing the i n d i c a t e a period and of the d i f f e r ences 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 the same day. Average maturity f o r the seasoned i s s u e s
v a r i e s from 26 to 28 y e a r s .
2/ Provides f o r a 5 - y e a r p e r i o d during which i s s u e may n o t be c a l l e d f o r refunding a t a lower coupon r a t e . Monthly averages so marked include one or more
i s s u e s with such a p r o v i s i o n . Other i s s u e s have no such p r o v i s i o n .




17-

Exilibit L

,

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 at
end of period: 1957 - Dec.
1958 - Dec.
1959 - Dec.
i960 - Dec.
I96I - Apr.
Changes:
1959 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
i960 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1961 - Jan.
Feb.
Mar.
Apr.
May

Uses of funds 1 /
State and
Business
l o c a l govt, Mortsecurgages
ities
i t i e s 2/

Other

Total
sources

(In m i l l i o n s of d o l l a r s )
1,29k
1,363
1,307
1,332
1,228

7,028
7,182
6,858
6,1M
6,1*88

-29
15
2
-25
16
-39
20
33
99

- 19
-15
10
39
95
-181
-18
-132
-168

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

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

20I4
125
101*
-13k
- 231
125
167
168
hO
311
198
188

-21*
25
35
21
26
13
101*
k3
82
33
26
17

-5U
-9
-50
9

101
-3
-7
-1*7

21*2
1#
11*8
135

1*9
31
33
3k

42,133
16,612
146,901
18,896
19,549
258
182 •
227
19h
81
82
203
195
219

•

2,377
2,691
3,221
3,622
3,769

35,271
37,092
39,237
141,798
If,553

13,206
11*, 61*0
16,126
17,625
18,3314

101,309
107,580
113,650
119,717
121,921

51
82
3k
110
31
18
. 11*
18
21*

110
126
156
I9I4
167
207
215
235
30I4

113
85
60
1I46
110
108
91
II46
313

522
175
1*89
658
500
195
555
1495"
791

336
196 '
21*2
225 , 203 ; 192 '
63
226
179
211*
208
277

-1*6
207
115
95
128
211
206
175
122
11
102
173

552
I46I*
299
I429
5114
1*69
628
576
366
597
522
651

210
135
208
202

202
202
186
119

750
1*81*
518
1*52

July
TJ

Uses of funds represent net changes in -assets and t h e r e f o r e r e f l e c t n e t , rather
than gross, u s e s .
2 / Includes s e c u r i t i e s of domestic corporations only.
Source.—Institute of L i f e Insurance.




tixnibit

H

Sources and Uses of Funds by
Savings and Loan Associations

Cash
Value of a s s e t s
a t end of period
1957 - Dec.
1958 - Dec.
1959 - Dec.
i 9 6 0 - Dec.
1961 - A p r .
Changes
1959 - Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
2/1960 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
2/1961 - • Jan.
Feb.
Mar .rj
Apr.
May
June
July

Uses of funds 1 /
Sources of funds
U. S.
Total
Net
Mort- 2 , Other
Govt.
sources change
BorrowOther
gages-/
or uses savings
ing 3/
ities
capital
( I n m i l l i o n s of d o l l a r s )

2,146
2,585
2,183
2,715
2,705

3,173
3,819
4,477
4,586
4,954

-180
27
238
-431
-42
-52
-69
61
371

105
21
-3
108
23
-7
10
-28
-25

-301
-34
1*9
-27
80
329
-236
30
24
104
86
428

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

-95
59
3
23

93
192
107
-24

48,138
55,139
63,530
71,489
74,191

41,912
47,976
54,583
62,154
64,4oo

1,379
1,444
2,387
2,191
1,710

4,847
5,719
6,560
7,144
8,081

710
757
884
803
740
679
626
4#
468

151
786
185
990
-36
1,083
-113
367
14
73 5
64
684
86
653
141 ' 634
-65
749

4i4
599
1,089
201
394
447
396
484
1,205

97
62
314
31
119
148
136
56
222

275
329
-320
135
222
89
121
94
-678

316
398
547
565
635 '
780
615
713
643
605
531
572

-119
65 .
93
106
20]
-58
-127
2
63
85
153
-38

92
494
667
642
939
908
219
718
731
814
776
959

468 - -462
-114
409 .
-126
623
372
37
630
5
1,216
211
-127
149
22
489
602
49
667
-14^
51
558
272
1,388

371
427
689
687

-107
71
123
83.

262
749
922
769

h0,0k9
2,770
15,627 - 3,108
3,676
53,19k
60,084
4,io4
62,258
4,274

#1
553
705
397

-465
-80
-26
90

86
199
170
2#
304
-519 .
197
207
80
161
167
-701
136
276
243
282

Preliminary.
Revised.
Uses of funds represent net changes in a s s e t s and therefore r e f l e c t n e t , rather
than g r o s s , uses. Savings and loan a s s o c i a t i o n s do not hold business s e c u r i t i e s
and data on holdings of State and l o c a l government bonds, presumed to be small,
are not a v a i l a b l e .
Data f o r 1957 adjusted to include mortgage pledged shares as currently reported.
HJ Advances from Home"Loan Banks and other borrowing.
Source.—Federal
Savings and Loan Insurance Corporation.

y



Exhibit N

-19-

Sources and Uses of Funds
by Mutual Savings Banks

Cash

Value of a s s e t s
at end of period
1957 - Dec.
1958 - Dec.
1959 - Dec.
I960 - Dec.
1961 - Apr.
Changes
1959 - Apr.
May
I
%

4
&
^

1

July
Aug.
Sept.
Oct.
Nov.
Dec.
1 9 ( ^ ' - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.

1961 -• Jan.
Feb.
Mar.
Apr.
MayJune
July

U. S.
Govt,
securities

Uses of funds 1 /
Busi- State &
"local
Mortgovt.
gages
ities
2/
ities

Sources of funds
Other

Total
sources

Net
change i n
deposits

Other

( I n m i l l i o n s of d o l l a r s )
890
921
829
81k
80k
-Ilk

8
k3
-79
3
-2
-27
20
111

7,552
7,266
6,861i
6,236
6,31*3

1,331
4,973
W
5,080
5,103

682
725
722
673
665

20,951
23,039
214,768
26,701
27,382

761
855
910
1,005
1,026

35,168
37,779
38,9L2
1*0,568
1*1,323

31,695
31*,01*1
314,983
36,31*9
36,952

3,1*73
3,738
3,959
It,219
4,371

-It It
13
-85
-13
-12
-32
-281
-85
-12

58
-20
-kl
13
-2
-55
-28
23

-33
10
19
k
-1
8
-20
-8
-2li

155
161
11*5
179
156
160
137
12k
132

-32
15
39
-12
33
31
-37
1*2
-12

-10
217
161
32
192
163
-283
65
218

6
120
202
-51*
80
197
-187
-27
31*0

-16
97
-1*1
,86
112
-31*
-96
92
-122

-6
-9
• 3
13
-23
-It
-k
-5
1
-6
-5
. -1*

159
116
150
129
•161
169
159
206
196
168
171
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1*3
1*1
-21
63
-59
1*2
6
Ik
-25
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-10

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167
319
-132
176
178
118
223
233
. -31
151*
232

161
iko
20k
176

17
26
29
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233
272
l*ol*
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1-131
37
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-86
k2
108
-69
-6
22
-8
9
86

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-11
32
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-80
-93
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30
-32
-156
-68
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-9
52
-19
13
57
38
. -8
32
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3k
57

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21
9
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106
100
117
-216

3
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lt6
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-5
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-2

•

'

-68
50
320
-95
58
221
21
105
278
56
39
381

57
117
-1
-37
118
-1*3
97
118 .
-1*5 ^
-87
115
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170
136
351
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136
53
-100

Uses of funds represent net changes in a s s e t s and t h e r e f o r e r e f l e c t n e t , rather
than g r o s s , uses.
Includes Canadian government and p o l i t i c a l subdivisions, International Bank f o r
Reconstruction and Development, n on guaranteed Federal agency and <n.ther bonds as
w e l l a s corporate bonds and s t o c k s .
Source. —National Association of Mutual Savings Banks and Federal Deposit Insurance
Corporation.
2/