Full text of H.16 Capital Market Developments : June 17, 1963

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1
Not for Publication

DECONTROLLED AFTER SIX MONTflS

H. 14

June 17, 1963

LIBRARY.

JUN 1 9 1963

IN THE UNITED STATES
(tn<luding Review of Sources and Uses of Funds
of Financial Intermediaries in April)

FEDERAL RESERVE BANK
OF RICHMOND

E w W ic security financing to obtain new capital was in moderate
volume last week but is expected to be in much larger volume this week.
During the week ending June 14, two large corporate security issues
totaling $70 million were offered and two State and local government
bond issues with par value of $32 million were sold. This week, ending
June 21, four corporate issues amounting to $190 million and five State
and local issues totaling $87 million are on the calendar for public
offering.
Bond yields. Changes in yields on seasoned, long-term bonds
were mixed but minor last week. Yields on both Aaa and Baa-rated State
and local government bonds rose two basis points to 3.08 and 3.62 per cent,
respectively, their highest levels since last August and October. Baa-rated
corporate bond yields fell a basis point to 4.83 per cent, the lowest since
late-summer 1958; yields on U. S. Government bonds also edged off a basis
point to 3.99 per cent. Aaa-rated corporate bond yields were stable.
Yields on new corporate bonds, adjusted to an Aaa basis,
averaged 4.25 per cent last week.
Short- and intermediate-term interest rates. Rates on 3-month
and 6-month Treasury bills declined two and one basis points, respectively,
last week, while yields on 3-5 year U. S. Government obligations dropped
two basis points. The average effective Federal funds rate remained at
3.00 per cent. Other rates were unchanged.
Mortgage yields, interest rates and other terms. Reflecting
continued heavy investor demand for mortgages, secondary market yields on
25-year, 5-1/4 per cent, FHA-insured mortgages in May remained at the
reduced level of 5.44 per cent reached in April and were 18 basis points
below a year earlier. Offering yields on new Aaa corporate bonds edged
higher, narrowing the spread between mortgage and bond yields to 114
basis points. This compared with a spread of 150 basis points a year
earlier and a recent high of 169 in the summer of 1960.
Average interest rates for conventional first mortgages on new
houses also held at the reduced April rate (5.80 per cent), according to
the Federal Housing Administration. Rates on loans for existing houses,
however, dropped 5 basis points further and at an average of 5.90 per cent,
were—like new house loans—15 basis points below a year earlier.




H.14 1

According to the Home Loan'Bank Board's survey of conventional
first mortgages on single family homes for April, the softening in interest
rates so far this year has been associated with some reduction in fees
and charges as well. But non-rate terms on such mortgages in April were
somewhat more restrictive than in Marchj perhaps partly reflecting seasonal
influences. Maturity terms averaged 23.5 years on new house loans and
19.0 years for existing home loans; in March the comparable averages
were 24.0 years and 19.2 years. Loan-to-value ratios were also down
somewhat in April—to 72.6 per cent for new house loans and 70.5 per cent
for existing house loans.
.j
The downward pressure on mortgage interest rates has been
accompanied by scattered but significant response by savings and loan
associations toward reduction in dividends paid on loan shares. Most
changes which have been announced are scheduled to become effective on
July 1, and recently the Home Loan Banks undertook a $735 million financing
partly to meet possible expansion in borrowing requirements if cut backs
become widespread and associations experience materially smaller net
inflows as a* result.
Stock prices. Common stock prices, as measured by Standard
and Poor's composite index of 500 stocks, edged off slightly further on
balance last week to close at 70.25 on June 14. Trading was active,
averaging 4.6 million shares a day.
Institutional investors. The net inflow of savings during
April at three major types of financial intermediaries—life insurance
companies, savings and loan associations, and mutual savings banks—totaled
$1.1 billion,arecord for the month, 41 per cent greater than a year earlier
and 17 per cent larger than in April 1961. Inflows at all three types of
institutions were appreciably larger than last April, but this reflected
in part, the fact that growth in assets of life insurance companies was
reduced by a decline in the market value of common, stocks holdings last
year and savings flows at savings and loan associations and mutual savings
banks were probably still somewhat curtailed By the increased rates paid
at commercial banks on time and savings deposits. (Time and savings
deposits at commercial banks rose $0.8 billion in April, 11 per cent less
than a year earlier.)
Assets of life insurance companies rose a record $0.6 billion
in April, 39 per cent greater than a year earlier, but only six per cent
larger than the previous April record of 1961. Net acquisitions of business
securities amounted to $0.2 billion, eight per cent more than last year.
In contrast to last year, however, net acquisitions of long-term bonds
and stocks accounted for most of the increase and, at $160 million, were
almost four times as large as a year earlier, while holdings of short-term
business securities rose $81 million, less than half as much as in April
1962. Mortgage holdings increased $0.3 billion, two and one-half times




-3-

H. 14

the increase of a year earlier. Holdings of cash and U. S. Government
securities fell $33 million, whereas they rose over $0.1 billion last
year, and holdings of State and local government securities were reduced
somewhat more than a year earlier.
Savings capital at savings and loan associations increased a
record $0.5 billion in April, 23 per cent more than a year earlier but
only 14 per cent larger than the previous April record of 1961. Net
acquisition of mortgages totaled a record $1.1 billion, one-fourth more
than a year earlier and slightly larger than the previous peak of
June 1962. Holdings of cash and U. S. Government securities fell $0.1
billion, about one-fifth less than last year, while borrowings by these
associations, at $0.1 billion, were about the same as a year earlier.
Deposits at mutual savings banks increased only $11 million
in A p r i l — a month of heavy withdrawals—but this is in contrast to a
decline of $51 million a year earlier. Mortgages, as usual, was the
only category of assets to rise in April, increasing a record $0.3
billion, one-fifth more than a year earlier. Holdings of cash and U.S.
Government securities (mostly Treasury bills) fell $0.3 billion, slightly
more than in April 1962, while holdings of business and Federal agency
securities were reduced by $0.1 billion, twice as much as a year earlier.




EXHIBIT A, Pa

LONG-TERM BOND Y I U D S , HIGH-GRADE

4 I [ I) I

IJILLJ J J 1 J 1.1.1 .1 I I.I J 1.1 LI J.I. IJJ.l.Li L_U.LLJJ.iJJ
1940

I I I II I II I

1961

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)
3.55
4.61
4.21
4.46

(5/2)
(1/29/60)
(3/17/61)
(9/15)

1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - Low
1963 - High
Low

s
m
.
4.19 (3/29)

3.07
4.42
3.70
4.07
3.85
4.00
3.87

May 17
May 24
May 31
June 7
June 14 j>/

4.21
4.22
4.23
4.23
4.23/

3.96
3.97
3.99
4.00
3.99

1

(4/25)
(3/8/60)
(5/12/61)
(12/29)
(12/28)
(6/7)
(1/18)

2.64
3-65
2.99
3.37
2.88
3.08
2.93

(5/1)
(9/24/59)
(9/3/60)
(7/6)
(13/8)
(6/13)
(3/28)

2.97.
2.97
3.00
3.06
3.08

.22
.59
.19
.57
.30
.35
.22

.34
.92
.46
.76
.80
1.02
.90

.25
.25
.24
.23
.24

.99
1.00
• 99
.94
.91

p/ Preliminary.
17 Weekly average of daily figures. Average ~t e m of tends inoluded is 22-24 years.
y . 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 includedj average term is 20 years. _
Bote.—Jlighs and lows are f or individual series and may be on different dates for different
series, for spreads, high refers to widest, and low to narrowest.




EXHIBIT B, Port I
LONG-TERM BOND YIELDS, LOWER-GRADE

COtrOIATt lee

U-lAI I I I I I II I I I I I I II I I 1 I I t I I I I I I I II I I I I I I II I II I 1 I 1 1 II I I I I I
19SS
1951
1940
Mil
1962
1913
Exhibit B - Part II

Corporate
Baa 1/

State and
local govt.
Baa 3/

Spread between
Aaa and Baa
State and
Corporate
local govt.

(per cent)
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - Low
1963 - High
Low

4.51
5.36
4.98
•5.13
4.92
4.93
4.83

May 17
May 24
May 31
June 7
June 14 j>/

4.86
4.85
4.84
4.84
4.83 -

Notat

(7/11)
(2/12/60)
(9/9/60)
(10/27)
(13/21)
(1/4)
(6/14)

For footnotes sea Exhibit K




3.64
4.46
3>93
4.16
3.52
3.62
3.52
3.52
3.52
3.55
3.60

3.62

(5/1)
(1/7/60)
(11/9/61)
(3/23)
(5/17)'
(6/13)
(5/23)

.77
.84

.66

.81
.63
.71

.60
.65
.63

.61
.61

.60

.93

1.08
.57
.93
.56
.63
.54
.55
^55
.55
.54
.54

'

•

7

EXHIBIT C. Pari I

?tiP R T -

A

N D INTERMEDIATE- TERM INTEREST RATES, GOVERNMENT

W««kly

Per cent

Exhibit C

Date

Discount
rate
1/

•3-month
bills 21

1958 - Low
1959-60 High
1960-61 Low
1961-62 High
1962 - Low
1963 - High
Low

1.75
4.00
3.00
3.00
3.00
3.00
3.00

.58
4.59
2.11
2.97
2.65
3.00
2.88

May 17
May 24
May 31
/June 7
June 14 j>/

3.00
3.00
3.00
3.00

2.90
2.94
2.98
3.00
2.98 /

3.00

(5/29)
(1/8/60)
(10/28/60)
(7/13/62)
(6/8)
(6/7)
(3/15)

Yields
6-month
bills 2/
(per cent)

Part II

3-5 year
issues 2/

Spread between yields on 3 month bills and yields on
6-mo. bills 13-5
1
vr. issues

3.02 (12/26) 2.14 (6/6)
5 . 07 ( 3/8/60) 5.00 (12/24/59)
2.35 (4/28/61)3.15 (5/12/61)
3.13 (7/20/62)3.88 (2/2/62)
3.41 (12/28)
2.74 (6/8)
3.08 (6/7) 3.68 (6/7)
2.93 (3/8) 3.44 (1/18)

.26
.79
.12
.44
.02
.10
.04

2.99
3.02
3.06
3.08
3.07

.09
.08
.08
. 08
.09

3.55
3.59
3.64
3.68
3.66

'

.04
1.81
.38
1.51
.52
.70
.52
.65
.65
. 66
.68
.68

1/ Weekly rate shown is that in effect at end of period at the Federal Reserve Bank of New York.
Z/ Market yield; weekly averages conputed from daily olosing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
note.—Highs and lows are for individual series and may be on different dates for different series.
For spreads, high refers to widest, and lew to narrowest#




S H O R T - AND INTERMEDIATE- TERM INTEREST RATES,
BANKS AND OTHER PRIVATE BORROWERS

f-1

Exhibit D - Part II

Date

Stock Exchange
call loan 1/

Prime
rate 1/

Finance company
paper 2/

Federal
funds 3/

Spread between
3-mo. bills and
finance co. paper

(per cent)
1958 - Low
1959-60 - High
1960-61 Low
1961-62 - High
1962 - Low
1963 - High
Low

3.50
5.50
4.50
4.50
4.50
4.50'
4.50

May 17
May 24
May 31
June 7
June 14 £/

4.50
4.50
4.50
4.50
4.50

3.50
5.00
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
4.50
.4.50

1.13(8/8)
5.13 (1/22/60)
2.50 (8/5/61)
3.25 (7/20/62)
2.88 (6/1)
3.25 (4/5)
3.13 (5/31)

.13
4.00
.43
3-00
1.30
3.00
2.63

3.19
3.15
3.13
3.19
3.19

3.00
3.00
3.00
3.00
3.00

(5/29)
(5/13/60)
(1/27/61)
(12/28/62)1
(1/26)
(6/14)
(4/5)

-.35
1.02
.11
.56
•19
.36
.15
.29
.21
.15
.19
.21

r\A . S+.n<*lr ihrnhi
ill loan rsite is eointf rate
0+ rt'f r
on call loans secured by oust oners' stock exchange collateral at New York City banto
Prime rate
is that charged by large banks on short-term loans to business borrowers of the highest credit
2/

Average^of daily rates published by finance companies for directly placed pq>er for varying maturities

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 New
Note. Highs and lows are for individual series and may be on different dates for different series.
Digitized
for
For FRASER
spreads, high refers to widest, and lor to narrowest.



STOCK MARKET

Exhibit E - Part II

Stock price
index 1/

1961-62 - High
Low
1963 - High •
Low
April
May
May 31
June 7
June 14 3)/

Common .
Trading
itock market customer credit
titcck
volume 3/
Customers 1
Bank
yields 2/ (millions
debit bal- loans to
(per cent) of shares)
ances 4/ "others" 5/
(In millions of dollars)

72.04(12/8/61)
52.68 ( 6/22/62)
70.80 (5/31)
64.10 (3/1)

2.32
3.96
3.13
3.36

10.1
2.4
5.5
3.3

5,978(4/63)4,526 (4/63)1,492(5/29)
5,595(1/63)4,208 (1/63)1,378.(2/23)

68.76
70.14
70.80
70.41
70.25

3.15
3.13
3.13
3.15
3.16

5.1
4.8
4.2
5.5
4.6

5,978

5,602( 12/61)4,259 (12/61) 1,377(8/30/61)
4,876(7/62) 3,562 (7/62) 1,269(9/26/62)

4,526

1,452
1,492
1,492
1,489

n.a.

Not available, jg/ Preliminary.
Standard and Poor's composite index of 500 oonmon stocks, weekly dosing prices, 1941-43"10.
Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are for
Friday's data only.
Standard and Poor s composite stock yield based on Wednesday data converted to weekly closing
prices by Federal Reserve. Yields shown are for dates on which price inclex reached its high

r->

Averages of daily trading volume on the New York Stock Exchange.
End of month figures for member films of the New York Stock Exchange v&ioh carry imrgln accounts;
excludes balances secured by U. S, Government obligations.
Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
U. S. Government securities. Prior to July 1, 1959, such loans are excluded only at banks in
New York and Chicago, Weekly reporting banks account fbr about 70 per cent of loans to others.
For further detail see Bulletin.




MORTGAGE AND BOND YIELDS
Monthly

1ITGAGtS:

'

v

1

i / — zV

_ -

tPORATE I0NDS

S
J ]

v

1

1

i-i New lnuti

Seasoned

4

1959

I960

If&l

Exhibit F - Part II
Conven- Spread betional tween yields
on conv. &
gages mortgages!/ FHA mtgs.
2/

FHA

1956
1957
1958
1959-60
I')-63

-

Low
High
Low
High
High
Low

4.68
5.63
5.35
6.24
5.72
5.44

1963 - February '5.50
5.47
March
5.44
April
May
5.44

5.20

6.00
5.55
6.30
5.95
5.80
5.85
5.85
5.80
5.80

Aaa Corporate
Newft/

Seasoned^

Spread between yields on
new corporate bonds and
FHA mtgs.

.47
.47
.15
.23
.38
.23

3.08
4.94
3.65
5.25
4.72
4.12

3.08
4.12
3.57
4.61
4.45
4.22

.76
1.58

.35
.38
.36
.36

4.21
4.28
4.23
4.30

4.19
4.19
4.21
4.22

1.29
1.19
1.16
1.14

1.69
1.50

Seasoned bds.

1.03
.05
.73
.39
-.16
.02
.09
.07

n
3/

hantfes in the contractual Interest rate,
.
.
d on FHA
rtft.field
iieja office
oiixuoopinion
u>jauj-viaon
vaatypical
w^awo*interest rate# (rounded)'on "conventional
7" ".,v .first
. « 1a£1
Based


axiating-home mortgages. Dashed line indicates this change
http://fraser.stlouisfed.org/
Moody's Investor Service. Monthly averages of daily data.
Federal Reserve Bank of St. Louis

in the series.
See Exhibit A.

EXHIBIT 0, Feu I
YIELDS O N

NEW

AND

SEASONED CORPORATE BONDS

HIW I SUIt

/•

I

Meeiv'i

'
%

&

Exhibit 0 - Part It
Yields on New Corporate Bond Issues Adjusted to aa Aee basis

Number Am't of Issues Average
of
included (mil. yield
IfSMil 9t d9iU¥ff)
S E E «yfirasea!
1963 - Jan. 4
25.0
4.19
11
70.0
4.23
18
35.0
4.13
25
75.0
4.22
Feb. 1
25.0
4.21
8
64.0
4.27*
15
22
100.0
4.19
Mar. 1
12.0
4.14
8
55.0
4.25*
15
24.4
4.16
22
87.0
4.16
29
222.0
4.36*

Number Am't of Issues Average
of
included (mil. yield
/per cent)
I s i m 9t M M ? # )
Apr. 5
12
19
26
Hay 3
10

17
24
31
June 7
14 '

2
1

3
3
1

2
I

3
1

3

45.0
95.0
128.0
25.0
266.0
30.0
76.0

4.23
4.18
4.28
4.30
4.22
4.31*
4.27
4.27

50.0
34.0

4.23*
4.25

6.0

1 Hotel Afexeges of offering yield# «n all unr issues of publloly offered corporate bonds rated iu, it mud
A
- by Moody's Investors Serrloe (except serial and convertible issues, offerings of natural gas pipeline
end foreign eonpealee, sad bonds guaranteed by the Federal Government) weighted by oLse of offering.
Before are raging, new offerings are adjusted to a composite iaa basis by deducting from the actual
reoffends* yield the excess of the weekly average yield.for seasonedtendsof the appropriate indasttyquali^r froupover the eoweposite average for seasoned Aae-rated bonds (Moody's), Averages considered
unrepresentative became ef special characteristics of the offerings included are denoted by an asterisk,




H. 14

Exhibit H
Long-term Corporate and State and LOCAL Government
Security Offerings and Placements
(In millions of dollars)
New ca nital

January
February
March
April
May
June

1963

Corporate 1/
1 1962
1

613
595
1,144

592
859
807

580
667
562

~i/~M5
e/750
e/1,100

1,113
760
1,132

2,118
1,259
1,318

582
749
579

1st half
Three quarters
Year

State and local 2/
1
1 1962

873
912
786

722
640
1,034

1,028
762
647

612
544
427

486
604
734

835
703
1,103

1,090
948
1,000

650
578
550

679
789
610

2,351
e/2,765

2,258
3,005
1,910
2,641

1,809
4,695
2,437
3,038

2/2,422
e/2,462

2 ,637
2,,571
1.,582
1.,779

2,165
2,396
1,824
2,078

e/5 !,'1-16

5,264
7,173
9,814

6,504
8,941
11,979

e/4,905

5.,208
6,,790
8,,566

4,561
6,385
8,463

E/732
2/722
2/968
2 -' 812
e/850
e/800

Excluding finance companies 3/
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

e/2,050
e/2,465

Year

i3/t

1961
711
689
764

October
November
December
quarter
quarter
quarter
quarter

1963

876
1 ,133
628

July
August
September

1st
2nd
3rd
4th

1961

2,199
2,919
1,775
2,410

1,554
4,552
2,337
2,807

9,303

11,253

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 rnd consumer finance
companies.




Exhibit I

H. 14

.

a

New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

Quarter
or
month

Total

Gross proceeds for new
capital and refunding 1/
Boiids
Common Memo:
and
foreign
Publicly Privately
pfd.
offered offered
stock
included

Net proceisds for
new canitj91 1/ 2/
Mfg.

Public Communiutility cations

Other
issuers

I960 - III
IV

2,520
2,832

1,336
1,462

754
955

429
416

38
17

562
625

652
696

317
381

896
997

1961 - I
II
III
IV

1,992
5,352
2,566
3,236

662
2,303
772
967

880
1,275
1,139
1,424

449
1,774
654
845

76
155
69
62

515
1,466
935
792

381
1,081
595
836

81
1,095
104
147

832
1,052
803
1,263

1962 - I
II
III
IV

2,378
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

2,700

1,108

1,306

287

128

947

326

236

842

1961 - July
Aug.
Sept.
Oct.
Nov.

1 >075
813
678
1,155
987
1,094

424
225
123
336
414
217

392
411
336
509
348
567

259
177
218
310
225
310

428
255
252
271
215
306

269
215
111
306
362
168

16
13
75
25
80
42

315
279
209
... 483
291
485
225
218
275
264
229
301
159
301
199
282
253
451

1962 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.

647
884
847
1,217
801
1,232
630
922
632
976
784
1,192:

1963 - Jan.
695
Feb.
642
Mar.
1,363
Apr .j)/ 1,067
May e/ 1,080
June

273
497
386
654
247
488
200
477
176
539
286
264

232
232
253
227
420
575
366
363
295
314
446
808

350
259
499
380
540

243
289
774
458
450

,

52
7
10
25
12 25

143
155
209
336
134
169
67
82
161
123
52
125
102
94
91
218
90

3
12
54
10
147
100
13
43
46
34
99

.

25
43
60
r.9.

205
131
318
384
270
342
217
218
166
153
271
345

89
148
193
377
196
410 '
118
110
148
141
175
252

73
362
21
88
64
79
88
120
67
260
4
57

135
220
592
155
250

114
115
97
363
100

125
68
43
72
30

238
191
412
355
370

£/ Preliminary.
e/ Estimated by Federal Reserve.
1/
Gross proceedis exceed
net proceeds by the cost of flotation.
2/ For total see Exhibit H; other issuers
; a r e extractive, railroad and other transportation, real estate and finance and
| commercial and other. Source.—Securities and Exchange Commission.




Exhibit J
Other Security Offerings
(In million!; of dollars)

Foreign government 2/
1963
1962
-^January
February
March
April
May

232
133
76
£/ 57
W120

July
August
September
October
November
December
Year
Jan.-May

e/6is

142
10
35
10
86
50
25
8
31
151
88
101

Gross long-term 1/
Federal agency 3/
1961
1963
6
29
20
2
66
29
5
2

Jp/186
e/--

461

150
175

43
34

737

236

283

123

1961

246
156
252
100
149
278
250
193
225

e/334

1,188

1,448

863

501

Net short-term 4/
State and local government 5/ I
Federal agency 3/
January
February
March
April
May

2/414

-106
-189
-482
292
2/380

July
August
September
October
November
December
Year
Jan.-May

247
-156
226
-364
82
284
261
227
-157
379
55
-80

-144
-162
-174
-79
-87
207
22
193
108
98
56
-114
-76

2/-105

-646

reliminary.
£./ Estimated by Federal Reserve.
n.a. --Not available.
it These 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.
Includes securities offered in the United States by foreign governments and their
political subdivisions and international organizations. Source: Securities and
Exchange Commission.
Issues not guaranteed by the U. S. Government. Source: long-term, Securities
and Exchange Commission; short-term, Treasury Department and Federal Reserve.
Ihese data differ from those in Exhibit H and above in that they represent new
• L e s s r e t i y e m e n t s » whether from the proceeds of refunding issues or from
er 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
Digitizeddousing
for FRASER
Authority notes. In some instances PHA notes included may have a somewhat longer maturity than one year. Source: Bond Buyer and Federal Reserve.
http://fraser.stlouisfed.org/

Federal Reserve Bank of St. Louis

I

\<

Exhibit K

H.14

Large Long-term Public Security Issues for New Capital
(Other than U. S. Treasury ) 1/
Proceeds of Large Issues Offered
(In millions of dollars)

Month

1962 - May
July
August
September
October
November
December
1963 - January
February
March
April
May

Total

Corpo rate
Bonds
Convertible
(other than
bonds
convertibles)

200
472
165
286
191
434
178
198
234
186
394
409
149

__

170
387
135
226
100
398
178
178
215
125
372
263
149

State
and
local
government

Stocks

91
36
20
-» —
--

19
26
22
146

—

88
30
20

373
266
321
272
153
320
217
193
344
367
570
431
489

30
85
30

60

35

Other
2/

--

194
25
75
48
63
134
43

Large Individual Issues Offered June 1 through 14

Issuer

Type 3/

Coupon
Amount
Offering
rate or
(millions
Maturity
net inter- yield
of
est cost
dollars)

Rating

CORPORATE
Southern Railway Co.
lst&gen.mtg.bds.
Indiana Bell Tel. Co.
Deb.
Coastal States Gas Produc. Co. 1st mtg. bds.
STATE AND LOCAL GOVERNMENT
Louisiana State Bond & Bldg.
Comm.
Sacramento Mun. Util. Dist.,
Cal.
Oklahoma City, Oklahoma
St. Petersburg, Florida

37.
20.0
50.0

1988
2003
1983

4-5/8
4-3/8
5

4.63
4.27
5.00

A
Aaa
Baa

Rev.-S.T.

15.0

1964-83

3.33

1.75-3.55

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

10.0
15.1
17.0

1966-83
1965-88
1964-83

2.98
3.11
3.26

2.80-3.15^3
2.00-3.30 A
1.80-3.406/A

Oct.1964

3.50

A

OTHER
Federal Home Loan Banks




Bonds

460.0

3.60

--

K-2

H. 14

Footnotes
*—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.
2J Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal agencies.
2/ 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 lease payments.
4/ An additional $12.2 million in bonds sold to refund outstanding securities.
5f
Bonds maturing 1966-73 not publicly reoffered.
6>/ 0.1 per cent bonds maturing 1983 reoffered to yield 4.40 per cent.




H. 14
Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) JL/
Expected Proceeds from Forthcoming Large Issues
Date of
computation

During month following
date shown
State and
Corporate
Other 2/
local govt.

1962 - May 31
June 29
July 31
Aug. 31
Sept. 28
Oct. 31
Nov. 30
Dec. 28
1963 • Jan. 31
Feb. 28
Mar. 29
Apr. 30
May 31

587
120
302
170
363
203
170
269
167
142
376
149
223

184
202
273
61
187
96
194
177
376
458
381
447
255

Subsequent to
date shown
State and
Corporate
local govt.
692
458
477
312
546
328
360
314
412
572
421
234
288

175

75
25

45
40
460

Other 2/

337
377
427
215
387
243
328
311
843
755
763
599
582

55
25

75
25

45
40
460

Forthcoming Large Offerings, as of June 14

Type

Amount
(millions
of dollars)

Approximate date
of offering

CORPORATE
Tennessee Gas Trans. Co.
State Loan and Finance Co.
Firestone Tire & Rubber Co.
Public Service Elec. & Gas Co.
Texas Eastern Trans. Co.
Pacific Northwest Bell Tel. Co.

Deb.
Deb.
Deb.
1st & ref. mtg. bds.
1st mtg, bds.
Com. stk.

45.0
30.0
75.0
40.0
50.0
20.0

Hitachi, Ltd.
Commerce Oil Refining Corp.

Com. stk.
Deb., bds. & com.

20.0
45.0

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

10.9
21.4
15.0
22.0
39.0

June 17
June 18
June 19
June 19
June 26
July 3
(rights expire)
July 10
Indefinite

STATE AND LOCAL GOVERNMENT
Univ. of Illinois
Nassau Co., N. Y.
Virginia Public School Auth.
Jacksonville, Florida
Atlanta, Georgia




June
June
June
June
June

18
18
18
20
25

H. 14

Issuer

Type

Amount
(millions
of dollars)

Approximate date
of offering

STATE AND LOCAL GOVERNMENT (CONTD)
Cleveland, Ohio
State of Minnesota
State of Maine
Nevada Irr. Dist., Gal.
Fairfax Co-., Virginia
Chicago Public Bldg. Comm., 111.
New York State Housing Finance
Agency
^Memphis, Tenn.
*Penna. Gen. State Auth.
Racine, Sturtevant etc. Unif.
Sch. Dist. No. 1, Wise.
Pittsburgh, Pa.
Jefferson County, Colorado
Dade County, Florida
Jacksonville Expressway Auth., Fla.
Southern 111. Univ.

June
June
June
June
June
June

25
25
25
26
26
26

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

13.2
40.6
14.0
57.2
10.0
87.0

Rev.-Rent.
G.O.
Rev.-Rent.

108.0
10.0
50.0

G.O.
G.O.
G.O.
G. 0.
Rev.-Ut.
Rev. -Rent.

10.6
35.0
12.9
46.0
40.0
10.5

July 10
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

20.0
20.0

June
July

June 26
July 9
July 9

OTHER
Milan, Italy
*Nippen Tele. & Tel. Public Corp.

Bonds
Bonds

*--Included in table for first time.
IJ 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 of Federal agencies.
Note.--Deletions for reasons other than sale, of issue: An $18.1 million issue of
Wauwatessa, Wisconsin, scheduled for sale on June 19 has been reduced to
$3.1 million.




i j
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:
Sale
Date

Amount
(millions
of dollars)

Issuer and Description of Issue

A.
4/2
4/9

5.2
15.0

4/10
4/24

30.0
10.0

4/24
4/25

1.8
25.0

5/1

27.5

5/22

15.0

*6/12

10.0

Public Offerings

Sold April 1 through June 14

Sony C o r p . — c o m m o n stock
Copenhagen Tel. Co.--5-3/8% bonds, due 1978, reoffered at
. 5.577,
Govt, of Australia--5% bonds, due 1983, reoffered at 5.20%
Mitsui & Co.--6-3/8% convertible debentures, due 1978,
reoffered at 6.38%
Mitsui & Co.--common stock
Kingdom of N o r w a y — 5 - 1 / 4 % bonds, due 1978, reoffered to
yield 5.42%
Government of Japan--5-l/2% bonds, due 1980--reoffered to
yield 5.71%
Copenhagen, Denmark--5-3/8% bonds, due 1978--reoffered to
yield 5.55%
Oslo, Norway--5-1/4% bonds, due 1 9 7 8 — reoffered to yield
5.47%

B. Prospective Offerings
6/
7/10

20.0
20.0

Milan, Italy--bonds
Hitachi, Ltd.--common stock




H. 14

• M-2
Part II:
Date
reported

Amount
(millions
of dollars)

4/3

10.0

4/4

4.7

5/1

50.0

5/2

10.0

5/6

20.0

5/14

16.3

6/4

18.0

*6/13

15.0

:

H.14

Private Placements--Reported April 1 through June 14

Issuer and Description of Issue

Industrial Acceptance Corp., Ltd.--5-1/8% secured notes,
maturing 1988--no information available on takedown
City of Vancouver--4-3/8% & 5% serial debentures, maturing
1964-83--no information available on takedown
Bell Telephone Company of Canada—4-7/8% first mortgage
bonds, maturing 1988--no information available on takedown
Laurentide Financial Corp.--5% senior notes, maturing
1978--no information available on takedown
Province of 0ntario--4% debentures, maturing 1966-69-no information available on takedown
Delta Acceptance Corp., Ltd.--notes, maturing 1975--no
information available on takedown
Consolidated Gold Fields of South Africa, Ltd.—promissory
notes, maturing 1971--no information available on takedown
Nippon Express Co,--6-1/2% convertible debentures 5 maturing
1978-~"i.o information available on takedown

Note: 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 concerning timing of takedowns. Full or partial
takedowns
may take place both prior and subsequent to the date a placement

is reported.
^--Included in table for first time.



•

H. 14

Exhibit N
Sources and Uses of Funds by
Life Insurance Companies

ities

Uses of funds 1
Business securities 2/ State and
local govt,
Long-term Commercial
securbonds and and finance
ities
company paper

1,307
1,329
1,392
1,411
1,179

6,858
6,428
6,135
6,189
6,013

46,783
48,631
51,362
53,469
54,073

118
295
193
341
671

3,221
3,606
3,902
4,060
4,036

39,237
41,815
44,250
46,980
47,910

16,126
17,472
19,582
20,719
21,728

-34
-10
-54
7
74
-43
48
-23
15
30
40
13

125
-2
-7
-43
20
-112
70
-51
14
-46
-261

152
156
174
112
234
280
130
276
241
260
211
505

118
-27
-26
66
-66
-36
110
-72
-30
23
16
-178

49
27
28
34
1
-1
21
30
27
13
44
23

186
141
223
262
173
187
109
167
164
204
237
382

257
199
192
158
114
134
156
150
155
121
149
325

-99
1
-75
12
3
-22
69
-29
33
6
26
111

223
25
-76
91
-26
-95
176
-21
-48
31
37
-216

65
156
135
44
242
253
135
213
187
136
143
395

225
43
52
179
-43
-117
72
30
20
64
-40
-318

29
3
117
-15
-14
8
4
28
14
-24
-18
-2

149
114
143
119
195
196
198
236
182
293
329

600

145
100
60
27
5
-10
204
137
85
160
293
94

52
159
233
160

184
46
19
81

28
-8
-17
-27

223
145
270
292

360
233
256
160

U. S.
Govt.

Value of assets
at end of period:
1959 - Dec.
1960 - Dec.
1961 - Dec.
1962 - Dec.
1953 - Apr.
Changes:
1961 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1962 - Jan.
Feb.
Mar.;
Apr.r/
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
jd/1963 - Jan.
Feb.
Mar.
Apr.
May
1/

-128
-17
-73
-14

123
-69
-211
-19

Mortgages

Other

Uses of funds represent net changes in assets and therefore reflect net, rather than

gross, uses.
2/ Includes securities of domestic-corporations only.
Source.--Institute of Life Insurance.




il

H. 14

Exhibit 0
Sources and Uses of Funds by
Savings and Loan Associations

Cash

Value of assets
at end of period:
1959 - Dec.
i960 - Dec.
1961 - Dec.
1962 - Dec.
1963 - Apr.
Changes:
1961 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1962 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1963^- Jan.
^
Feb.
Mar.
Apr.
May

U ses of funds 1/
U^S.
Total
sources
Govt. MortOther
gages^/ assets
ities
(In millLions of dollars)

Sources of funds
Net
Borrowchange
Other
savings ing 3/
capital

63,530
71,476
82,135
93,816
97,554

54,583
62,142
70,885
80,422
83,922

2,387
2,197
2,856
3,633
2,724

6,560
7,137
8,394
9,761
10,908

-103
69
123
115
223
-62
-144
84
82
107
203
-53

265
754
930
819
'1,187
1,070
372
983
940
1,043
1,123
1,173

594
556
708
419
802
1,356
124
507
679
724
779
1,495

-465
-80
-26
90
41
270

136
278
248
310
344
-556
248
344
133
244
265
-737

529
601
802
842
977
1,046
880
1,016
844.
962
804
836

-116
41
90
94
413
-60
-183
104
78
40
172
-100

242
833
1,061
812
1,383
1,185
349
1,071
1,051
1,131
1,122
1,441

491
578
934
386
782
1,431
14
648
870
835
874
1,694

-382
-96
-82
126
98
365
87
93
95
36
-23
460

133
351
209
300
503
-611
248
330
86
260
271
-713

675
693
906
1,060

-114
49
116
55

417
1,020
1,289
1,012

-737
-195
-96
119

169
371
190
417

2,183
2,680
3,315
3,946
3,673

4,477
4,595
5,211
5,549
6,120

53,141
60,070
68,834
78,973
82,307

3,729
4,131
4,775
5,348
5,454

-91
60
6
25
149
129
-216
-81
51
82
84
437

92
188
106
-17
-1
28
-9
65
-2
43
79
44

367
437
695
696
816
975
741
915
809
811
757
745

-357
96
133
-78
7
265
-394
-38
87
99
99
712

186
95
36
-46
-14
-66
46
-11
42
30
47
-7

-334
107
90
-136

190
171
177
33

-

rj
If

'

.

985
844
1,195
476

132 .
128
75
79
415

Revised.
j>/ Preliminary.
Uses of funds represent net changes in assets and therefore reflect net, rather
than gross, uses. Savings and loan associations do not hold business securities
and data on holdings of State and local goveimment bonds, presumed to be small,
are not available.
2/ Data for 1957 adjusted to include mortgage pledged
shares as currently reported.
3/ Advances from Home Loan Banks and other

borrowing. Source.—FSLIC.



J

&

''
%
\

,
i
S

Exhibit P

H.14

^ 2

Sources and Uses of Funds
by Mutual Savings Banks

u. S.
Cash
ities
jp Value
< at end
•5 1959
<
1960
1961
4
1962
F
1963

of assets
of period:
- Dec.
- Dec.
- Dec.
- Dec.
- A[>r,

t Changes:
1961 - Jan.
Feb.
Mar.
Apr.
May

t

July
Aug.
Sept.
Oct.
Nov.
Dec.
1962 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.

1963 - Jan.
Feb.
Mar.
Apr.
May

Uses of funds 1/
Busi- State &
Total
ness
local
sources
MortOther
govt.
gages
ities
21
ities
(In millions oJE dollars0

Sources of funds
Net
change in
deposits

34,983
36,353
38,487
41,582
42,563

Other

3,959
4,220
4,346
4,536
4,759

829
872
828
957
831

6,864
6,239
6,136
6,089
6,178

4,849
5,080
5,053
5,188
5,092

722
672
677
528
471

24J68
26,709
28,915
32,070
33,466

910
1,001
1,224
1,284
1,283

38,942
40,573
42,833
46,118
47,322

-49
21
9
-51
30
30
-26
-14
46
-27
7
-20

106
100
117
-216
-13
-52
18
6
-15
-120
-13
-21

3
-15
46
-11
27
34
2
-23
-19
-56
-20
5

-5
-1
-2
1
23
-2
1
1
-5
-5
-1

161
140
204
176
187
217
201
207
156
178
167
212

17
26
29
-51
30
-23
-28
55
49
-44
46
117

233
272
404
-154
262
228
164
232
220
-74
181
292

170
136
351
-54
H4_
366^
, 23
99
310
-15
48
471

63
136
53
-100
148
-1382/
141
133
-90
-59
133
-179

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

,-io
53
28
-32
36
28

250
307
-519
-131
334
306
285
367
315
114
274
345

"83
165
472
-51
184
548
172
215
429
186
147
545

167
142
47
-80
150
242
113
152
-114
-72
127
-200

-137
51
21
-61

39
31
r/260
-241

-4
-11
-9
-72

-15
-11
-26
-5

436
320
313
327

13
-6
49
-58

330
375
r/610
-111

229
215
r/526
11

101
160
84
-122

r/
If

Revised.
£/ Preliminary.
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.
3/ Adjusted so as not to reflect $115 million other liability reclassified as
deposits
in conformity with FDIC redefinition. Source.—NAMSB and FDIC.




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