Full text of H.16 Capital Market Developments : March 12, 1962

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Not f o r P u b l i c a t i o n DECONTROLLED AFTER SIX MONTHS
March 12, 1962.

LIBRAA "

MAR 1 5

1962

U^LETEALJIARKET DEVELOPMENTS
IN THE UNITED STATES

FEDERAL RESERVE BANK
OF RICHMOND

Public s e c u r i t y financing t o obtain new c a p i t a l was l i g h t l a s t
week, but i s expected t o be i n f a i r l y s u b s t a n t i a l volume t h i s week. During
the week ending March 9, two l a r g e corporate s e c u r i t y i s s u e s t o t a l i n g
m i l l i o n were o f f e r e d and one S t a t e and l o c a l government bond i s s u e with
par value of $16 m i l l i o n was sold. This week, ending March 16, two corporate
s e c u r i t y i s s u e s t o t a l i n g $105 m i l l i o n are scheduled, and s i x S t a t e and l o c a l
government bond i s s u e s aggregating $132 m i l l i o n are on the calendar.

Bond y i e l d s . Bond y i e l d s g e n e r a l l y declined l a s t week t o t h e i r
lowest l e v e l s i n 1962. Yields on Aaa-rated S t a t e and l o c a l government
bonds declined 5 b a s i s p o i n t s t o 3.03 per c e n t , 28 b a s i s p o i n t s below the
end of 1961 l e v e l and t h e lowest r a t e since September i960, while y i e l d s
on Baa-rated i s s u e s declined 10 b a s i s p o i n t s t o 3.71 per c e n t , 33 b a s i s
p o i n t s below the l e v e l a t the end of 1961 and the lowest l e v e l since June
195>8. Yields on Aaa-rated corporate bonds declined 2 b a s i s p o i n t s while
y i e l d s on Baa-rated i s s u e s were unchanged from the l e v e l of the previous
week. Yields on long-term U. S. Government bonds declined 2 b a s i s p o i n t s .
The average y i e l d on new corporate bonds, a d j u s t e d t o an Aaa b a s i s ,
was U.29 per cent l a s t week, 8 b a s i s p o i n t s below the average f o r the previous
week. At t h i s l e v e l , new o f f e r i n g y i e l d s were a t t h e i r lowest l e v e l t h i s
year and only 8 b a s i s p o i n t s above the 1961 low.
S h o r t - and intermediate-term i n t e r e s t r a t e s . Yields on 3-month
and 6-month Treasury b i l l s increased Ii and 1 b a s i s p o i n t s , r e s p e c t i v e l y ,
l a s t week while y i e l d s on 3-5 year U. S. Government bonds continued t h e i r
decline of the p a s t s e v e r a l weeks, decreasing an a d d i t i o n a l b a s i s p o i n t .
The Federal funds r a t e increased 25 b a s i s points t o 2.85 per c e n t , the
h i g h e s t l e v e l thus f a r t h i s year. Other s h o r t - and intermediate-term i n t e r e s t
r a t e s were unchanged.
Seasonally a d j u s t e d changes i n savings and loan share c a p i t a l
and mutual savings bank d e p o s i t s i n January. The net inflow of savings
i n t o savings and loan a s s o c i a t i o n s and mutual savings banks i n January
continued l a r g e , d e s p i t e the sharp r i s e i n time and saving deposits a t
commercial banks following the widespread announcement of i n c r e a s e s i n
r a t e s p a id on such d e p o s i t s . (Commercial bank time and savings d e p o s i t s ,
s e a s o n a l l y a d j u s t e d , increased $2.2 b i l l i o n i n January, t h r e e times the
average monthly r i s e i n l a t e 1961.)
The s e a s o n a l l y a d j u s t e d n e t increase i n new savings c a p i t a l a t
savings and loan a s s o c i a t i o n s i n January was $61*9 m i l l i o n , o n e - f i f t h l e s s
than the monthly average f o r the f o u r t h q u a r t e r of 1961. The decline
r e f l e c t e d an i n c r e a s e i n withdrawals and some decline i n new savings
c a p i t a l , as shown in the t a b l e on the following page. Net new r e g u l a r
deposits a t mutual savings banks, a f t e r seasonal adjustment, t o t a l e d a near




Table 1 - Selected I n s t i t u t i o n a l Savings How
Savings and Loan Associations 1/

Date

1961 - JanuaryFebruary
March
April
May
June
July
August
September
x
October
November
December r /
1962 - January

New savings c a p i t a l
Withdrawals of
(including uivioends savings c a p i t a l
""credited)
Unadjusted Seasonally Unadjusted Seasonally
adjusted
adjusted
(In millions of d o l l a r s )
3,k09
1,80k
2,060
1,978
1,877
2,758
2,97k
2,008
1,965
2,21*1
1,87k
2,73k
3,887

2,120
2,197
2,309
2,258
2,391
2,376
2,126
2,329
2,339
2,k90
2,557
2,kl5
2,kl9

2,81k
1,253
1,357
1,562
1,075
1,395
2,866
1,518
1,30k
1,517
1,100
1,226
3,U8

l,k57
l,k83
1,629
1,597
l,6k6
1,703
l,k98
1,638
1,55k
1,667
1,667
1,698
1,770

Net new
savings c a p i t a l
U n a d j u s t e d l ^ - m l l y

595
551
703
. kl6
802
1,363
108
k90
661
72k
77k
1,508
k69

663
71k
660
661
7k5
673
628
691
78£
823
891
717
6k9

1 / Net new savings c a p i t a l i s derived a s the d i f f e r e n c e oetween new savinps c a p i t a l and withdrawals. TTTe
u n a d j u s t e d n e t new savings c a p i t a l s e r i e s d i f f e r s from the n e t change i n savings c a p i t a l s e r i e s shown i n Exhibit M
beoause of s t a t i s t l e a l d i s c r e p a n c i e s between t h e flow a e r i e s from which the fcrmer i s derived and t h e balance sheet
M p l e s from which the l a t t e r i s computed. The t o t a l s of the seasonally a d j u s t e d and unadjusted data for any 12month p e r i o d w i l l not n e c e s s a r i l y be I d e n t i c a l because of t h e nature of the adjustment procedure.
Source.—Federal Savings and Loan Insurance Corporation; seasonal adjustment by Federal Reserve.

Mutual Savings Banks 1 /

Date

1961

1962

January
February
March
April
May
July
August
September
October
November
December
January

New regular deposits
Withdrawals of
Net new
(including i n t e r e s t regular deposits
r e g u l a r deposits
credited)
Unadjusted Seasona l l y Unadjusted Seasonally Unadjusted Seasonally
adjusted
adjusted
adj usted
(In millions of d o l l a r s )
1,178
1,029
lk9
950
197
753
600
119
170
719
9k5
775
885
328
1,057
1,009
12k
729
-88
1,083
8#
12k
995
959
870
105
898
1,023
153
793
1,101 822
166
825
279
991
1,010
1,053
962
165
k3
797
818
966
7140
823
78
lk3
661
288
950
779
17k
. 9#
1,021
128
1,029
965
837
-9
682
1,023
871
152
177
859
1,081
807
981
6k5
k36
17k
1,203
1,356
1,099
883
216
153

1 / " Regular d e p o s i t s comprise 99 per oent of mutual savings bank d e p o s i t s , but exclude Christmas and other c l u b ,
Industrial ( p a y r o l l ) , and school savings d e p o s i t s . Net new d e p o s i t s a r e derived a s t h e d i f f e r e n c e between
the new d e p o s i t and withdrawal s e r i e s . The u n a d j u s t e d net new d e p o s i t s e r i e s d i f f e r s from t h e net change
In d e p o s i t s e r i e s shown in Exhibit 0 because of t h e exclusion of s p e c i a l d e p o e l t a . The t o t a l s of t h e seasonally
adjusted and u n a d j u s t e d d a t a f o r any 12-month p e r i o d w i l l not n e c e s s a r i l y be i d e n t i c a l because of t h e nature
of t h e adjustment procedure .
S o i r e e . - - N a t i o n a l Association of Mutual Savings Banks1 seasonal adjustment by Federal Reserve.




record $216 m i l . i o n , t w o - f i f t h s more than the average l a t e l a s t y e a r .
Most of the increase reflected, a r i s e in new d e p o s i t s ; withdrawals were
l i t t l e changed from the e a r l i e r r a t e .
The January p a t t e r n of savings flow to major f i n a n c i a l i n s t i t u t i o n s indicated above r e p r e s e n t s only an i n i t i a l response to the
changed s t r u c t u r e . o f i n t e r e s t r a t e s on savings. I t may well be t h a t the
adjustment in the competitive i n t e r e s t r a t e s t r u c t u r e among f i n a n c i a l
i n s t i t u t i o n s i s s t i l l - i n c o m p l e t e . Two-thirds of a l l member commercial
banks, as i n d i c a t e d by the Board's r e c e n t survey, r a i s e d i n t e r e s t r a t e s
on time and/or savings d ep o s i t s between December and mid-January. In
some c a s e s , however, these changes may have been announced and a d v e r t i s e d
too l a t e t o have had a s i g n i f i c a n t a f f e c t on January savings f l o w s .
Competitive r a t e increases by mutual savings banks and savings and loan
a s s o c i a t i o n s are probably l e s s complete, since many i n s t i t u t i o n s may have
delayed a c t i o n u n t i l r e s u l t s of l o c a l r a t e developments could be appraised.
In t h i s connection, i t i s i n t e r e s t i n g to note t h a t the aggregate
savings f i g u r e s f o r January concealed widely d i f f e r e n t but l a r g e l y o f f s e t t i n g experiences by geographic are&s. Although the mutual savings banks
i n t o t a l r e p o r t e d a s l i g h t l y l a r g e r inflow t h i s January than i n January
1961, savings banks i n New York S t a t e had sharply reduced gains t h i s y e a r ,
but t h i s was more than o f f s e t by s u b s t a n t i a l y e a r - t o - y e a r i n c r e a s e s in
o t h e r S t a t e s such as Connecticut and New J e r s e y . Similar r e g i o n a l d i f f e r ences occurred among the savings and loan a s s o c i a t i o n s ; while i n aggregate,
and i n most p a r t s of the country, the n e t inflow to a s s o c i a t i o n s was
moderately smaller t h i s January than l a s t , equal or l a r g e r net gains were
reported i n the Boston, Greensboro, Topeka and Indianapolis Home Loan Bank
D i s t r i c t s . This divergent p a t t e r n would suggest a competitive s i t u a t i o n
s t i l l i n a s t a t e of f l u x , although information p e r m i t t i n g a d e t a i l e d a r e a by-area a n a l y s i s of i n t e r e s t r a t e changes and savings flow responses i s not
yet available.
Stock p r i c e s . Common stock p r i c e s , as measured by Standard and
P o o r ' s composite index of £00 stocks, increased s l i g h t l y on balance l a s t
week, closing a t 70.ii2 on March 9. Trading volume averaged 3 . 1 m i l l i o n
shares a day, 0 . 1 m i l l i o n shares more than the r a t h e r low average of t h e
previous week.
More d e t a i l e d information concerning r e c e n t c a p i t a l market
developments i s presented in t h e a t t a c h e d e x h i b i t s .

Capital Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




Ut<K

NEW

S A V I N G S CAPITAL AND WITHDRAWALS -

SAVINGS AND

LOAN ASSOCIATIONS^

Mon>hly, a d i u < t * d lor i t a t o n a l v a r l a l l o o

•IT WEWSAVIK6S CAPITAL




•f
DEPOSITS AND WITHDRAWALS




—

MUTUAL S A V I N G S BANKS

letlein lilirtst Cr«dlte< /

Jj\

LONG-TERM

BOND

YIELDS

HIGH-GRADE
COtrOKATI A l l

V'"™:'"
s u n AND 10CA1
60Vt»HM£HT A««

LOWER-GRADE




v ^ v

Exhibit B - Tables f o r Exhibit A

-7-

Long-term Bond Y i e l d s
high-grade
S t a t e and
local
government
Aaa 3/

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

Date

Corporate
Aaa y

U. S. Govt.
. long-term 2 /

1957 - High
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - High
Low

1*.H* (9/2?)
1.55 (5/2)
. l*.6l (V29/60)
Le2^f3A7/a)
1.1*6 (9/15)
Ll*3 (2/16)
1*.1*0 ( 3 / 9 } ^ .

3 . 7 6 (ioAe)
3.07
(4/25)
1*.1*2 (1/0/6O)
3*70 (sAt/si)
4.07 (12/29)
li. 12. (2/23)
1*.06 ( 3 / 9 )

3.45
2.61*
3.65

(8/29)
(SA)
(9/24/59)

2.99

(9/1/60)

4.09
1*.08
14.12
14.06
It. 06

3.09
3.Oil
3.08
3.08
3.03

(per cent)

Feb.
Feb.
Feb.
Mar.
Mar.

9
16
23
2
9 p/

1*.1*2
U.U3
1*.1*2
h.h2
h.hO^

3.37 ( 7 / 6 )
3.26 (1/1*)
3.03 ( 3 / 9 )

.60
.22
.59
•19
.57
.37
.30

.50
.31.92

•

.76
1.31*
.80
1.00
. l.ol*
1.01*
1.34
1.03

.33
.35
.30
.31*

.31*

Lower grade

•

Date

Corporate
Baa y

S t a t e and
l o c a l govt.
Baa 3 /

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

( p e r cent)
1957 - High
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - High
Low
Febr
Feb.
Feb.
Mar.
/far.

9
16
23
2
9 2/

5.10
L 51
5.36
U«98
5.13
5.11
5.05

(U/29)
(7/11)
(2A2/60)
(9/9/60)
(10/27)
(1/5)
(3/9)

5.08
5.08
5.07
5.05
5.05/

vj Preliminary.

l*.5l
- 3.61*
1*.1*6
3.93
1*.16
U.oii
3.71
3.83
3.78
3.81
3.81.
3.71

(6/29)
(sA)
(1/7/60)
(11/9/61)
(3/23)
(1/11)
(3/9)

1.27
.77
.81*
• 66
.81
.68
.63
.66
.65
.65
. .63
.65

1 / Weekly average o f imlly f i g u r e s . Average t e n s o f bonds Included I s 23-26 y e a r s .
2 / Weekly average of d a l l y f i g u r e s . The a e r i e s Includes bonds Jue or o a l l a b l e In 10 years or more.
1 / Tbureky f i g u r e * . Only general o b l i g a t i o n bondo are Included; average t e r n I s 20 y e a r e .
Mote.--Highs and lows are for Individual s e r i e s and may be on d i f f e r e n t dates for d i f f e r e n t s e r i e s .
Pter spreads, high r e f e r s t o w i d e s t , and l o * t o narrowest.




.

.

1.21
-93.
1.08
.57
.93
.82
.68
.71*
.71*
.73
.73
,..68

.

%
EXHIBIT

C

S H O R T - A N D I N T E R M E D I A T E - TERM INTEREST R A T E S
W..hly

GOVERNMENT

yv

BANKS A N D OTHER PRIVATE B O R R O W E R S

Plfctly Plofd




Exhibit I) - Tables f o r Exhibit C

-9-

Snort- and Intermediate-term I n t e r e s t hates
Government
Date

Discount
rate

1957 - High 3.50
1958 - Low
1.75
1959-60 - H LOO
1 ^ 6 0 - 6 1 Low 3.00
1961 - High
3.00
1962 - high 3.00
3.00
Low
Feb.
Feb.
Feb.
Mar.
\Mar.

9
16
23
2
9 p/

3.00
3.00
3.00
3.00
3.00

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

3-month
bills 2/

V

s

3.64 (10/16)
*58 (5/29)
59

Spread between y i e l a s on 3 month b i l l s and y i e l d s on
b-mo. b i l l s 13-5 y r . i s s u e s

3-5 year
issues 2/

—
4.04 (10/16)
3 . 02 (12/26) 2.14 (6/6)

(1/8/60)

5.07

(1/8/60)

5 . 0 0 (12/24/59)

2 . 1 1 (10/28/60) 2 . 3 5

(4/2^61) 3 e l £ (5/12/61)

2.66

(12/29)

(12/29)

2.90

3 . 8 6 (8A1)

2.81 (2/16)

3.02 (1/12)
2.87 (3/2)

3.61 (3/9)

2.70
2.81
2.74
2.69
2.73^

2.90
3.00
2.93
2.87

3.83
3.78
3.73
3.62
3.61

2.67 (1/26)

2.88

.86

.26

3.88 (2/2)

.Oh

1.81

.79

v.li

'.44
.24.
.15

1.19

.20
.19
.19

1.13
.97
.99
.93

.18

.15

Banks and Other Private Borrowers
Stock Exchange
c a l l loan 1/

Prime
rate 1 /

Finance compary
paper 3/

Federal
funds 4/

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

(per cent)
3.88 (liAs)
1.13 (d/0)

3.50
.13
4.00

1957 - High
1958 - Low
1959-60 - High
I96O-6I Low
1961 - High
1962 - High
Low

4.50
3.50
5.50
U.50
4.50
a. 50
4.5o

4.50
3.50
5.00
4.50
4.50
4.50
4.5o

3.11 (1/19)
3.00 (3/9)

2.88 (12/2V)
2.85 ( V #
1.30 (1/26)

Feb.
Feb.
Feb.
Mar.
Mar.

4.50
4.5o
4.5o
4.50
4.50

4.5o
4.50
4.5o
4.5o
4.50

3.00
3.00
3.00
3.00
3.Q0

2.66
2.44
2.25
2.60
2.85

9
16
23
2
9 £/

1/

5 . 1 3 (1/22/60)
2 . ^ 0 (8/5/61)
3 . 0 0 (12/29)

.43

.63
-.35
1.02
.11

(11/8)
(5/29)
(5/13/G0)
(1/27/61)
•

-5b

.38
.19
.30
.19
.26
.31
.27

Weekly rate shown I s that In e f f e c t a t end of parted. Discount rate I s for Federal Reserve 3«ik of Hew York,
Stock txebansti w , l l loen rate l a going rate on c e l l lo&um eeoured by cuatomere1 etook exch&nge eollr.teral a t
Mow York City banks. Prime rate i # that charged by large bank# on short-tore loans to bueinee# borrower# of
the highest credit standing.
.
9/ Market y i e l d ; weekly averages computed from d a l l y closing t l d p r i c e s . Series o f $-5 y<ar I s s u e s ccnalsts of
s e l e c t e d n o t e s and bonds,
,
'
3 / Average of d a i l y r a t e s published by finance companies for d i r e c t l y plr.eed paper for varying maturities i n the
PC-178 day range.
4 / Weekly a v e n g e of d a l l y e f f e c t i v e r » t o , which i s the rate for the heaviest volume of purchase end sale transactions
a s reported t o the Federal Reserve Bank of Mew York.
Note .--Highs and lows are f o r Individual s e r i e s and nay be on d i f f e r e n t dates for d i f f e r e n t s e r i e s .
For spreads, high r e f e r s t o widest, and low to narrowest.




STOCK

MARKET

1941-43 Avro*«=!0

m

n ft of Dollars

L«i°0_

J

CK MARKET CRJD

*

CH

*NOE IN

SERIES

Millions ol S h a f t

,,,

-LM 1 1 1 1 1 I 1 1
1957

,MM

1 II 1 1 1 1 1 11 11 11 1 1 II i u v

1958

"MORTGAGE AND

BOND

YIELDS

HOME M0IT6A6ES • FHA

A«i CORPORA!! BONDS:

1955

195*

1957




1151

1959

19*0

19*1

!»«J

E x h i b i t F - Tables f o r h x h i b i t E

-11 »

Stock Market
Stock p r i c e
index 1 /

1960-61 - High
Low
1962 - High
Low
JanuaryFebruary
Feb. 23
Mar. 2
Mar. 9 g /

72.0it (12/6/61)
70.59 W

68.13 (1/26)
69.07
70.22
70.16
70.16
70.42

Common
Trading
stock
volume 3 /
y i e l d s 2/ (millions
( p e r c e n t ) of shares)

5.8

Stock market customer c r e d i t
bank
I Customers'
I d e b i t b a l - loans t o
ances 4 / " o t h e r s " 5 /
( I n m i l l i o n s of d o l l a r s )
5,602 (i2/a)l;,259 (12/61) 1,377 (0/30/61)

2.82
3.62
2.92
3.01

2.2
3.9
3.0

ii,li+2 (5/60)3,OOll(7/60) 1 , 1 2 1 -(5/25/60)

n.a.

n.a.

2.97
2.94
.2.96
2.96
2.94

3.7
3.5
3.3
3.0
3.1

5,463

a,no

n.a

1,362 (2/11*)

1,316 (1/24)
1,353
. 1,360
1,361
1,360

n.a.—Not available
2 / Preliminary
1 / Standard and P o o r ' s oomposite index of 500 common s t o c k s , weekly c l o s i n g p r i c e s , 1941-43=10. Monthly d a t a a r e
averages of d a l l y f i g u r e s r a t h e r than of F r i d a y ' s only. Highs and lows are fop Fridays' data only.
2 / Standard and P o o r ' s composite stock y i e l d based on Wednesday data converted to weekly c l o s i n g p r i c e s by Federal
R e s e r v e . Yields shown are for d a t e s on which p r i c e index reached i t s high or low,
3 / Averages of d a i l y t r a d i n g volume on t h e New York Stock Exchange.
4 / End of month f i g u r e s f o r member firms of t h e New York Stock Exchange which carry margin a c c o u n t s j excludes balani
secured by U, S . Government o b l i g a t i o n s .
5 / Wednesday f i g u r e s for weekly r e p o r t i n g member banks. Excludes loans f o r purchasing or c a r r y i n g U, S. Government
Securities., P r i o r t o July 1 , 1959, such loans a r e excluded only a t banks i n New York and Chicago, Weekly repoi
banks account f o r about 70 per cent of loans to o t h e r s . For ftirther d e t a i l see B u l l e t i n .

Mortgage and Bond Yields 1 /
FHA.
mortgages 2 /
1953-58 - High
Low
1959-60 - High
1960-61 - Low

5.63 ( U / 5 7 )
a.56 (2/55)

1961 - October
November
December
1962 - January
February

5.72
5.72
5.71
5.72

Spread between new
Aaa corporate
c o r p o r a t e bonds and
bonds 1 /
New 3 / 1 Seasoned V|PHA mortgages|Seasoned bonds
4.81 (6/57)
2.74 (3/54)

1 m i m

1/

4.26

4.32
4.39
4.45
4.50

i t of

.90
-.12
.77
-.16

1.46
1.40
1.32
1.27

-.16
-.07
-.02
.03

4.12 (9/57)
2.84 (4/54)

4.42
4.39
4.41
4.42
4.42

.08

i

N e i t h e r mortgage nor bond y i e l d s take i n t o account s e r v i c i n g c o a t s wru.cn are muoh higher for mortgages than bonds*
G e n e r a l l y , bonds pay I n t e r e s t semi-annually; mortgages, monthly. Mortgage y i e l d s , i f computed as e q u i v a l e n t t o a
semiannual I n t e r e s t Investment, would be s l i g h t l y higher than given i n t h e t a b l e .
;
2 / Based on fflA f i e l d - o f f i c e opinions about average bid p r i c e s i n the p r i v a t e secondary market for new-home mortgagee
f o r lmnedlate d e l i v e r y . Since l a t e 1955, data r e l a t e only t o 25-year mortgages with downpeyments of 10 per cent
or mors, weighted by probable volume of t r a n s a c t i o n s . Yields computed by FRB, assuming 25-year mortgages are
paid o f f i n 12 y e a r s . Dashed l i n e s i n d i c a t e p e r i o d s of adjustment t o changes 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 N a t i o n a l C i t y Bank of Hew York, Averages 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 o l y - s o l d bonds r a t e d
Xen Aa or A by Moody's I n v e s t o r s Service (except s e r i a l and c o n v e r t i b l e 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
for s i g n companies) weighted by s i z e of l s s u s . Yields on Aa and A i s s u e s a r e f i r s t a d j u s t e d to an Aaa b a s i s by t h e
spread between y i e l d s of outstanding bonds In t h e s e c a t e g o r i e s and those on Aaa-rated bonds. The s e r i e s r e f l e o t e
onangee I n i n d u s t r i a l composition, m a 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 / Moody's I n v e s t o r s S e r v i c e . Monthly averages of d a i l y d a t a . See Exhibit B.




Exhibit G
Yields on New Corporate Bond Issues Adjusted t o an Aaa Basis
Number
of issues
included
Monthly averages:
1961 - July
August
September
October
November
December
1962 - January
February
t
March
April
May
June

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

Number
of issues
included

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

December 15
1
• 4o.o
4.55*
4.62
22
29
4.59
4.38
4.26 1961 - high
4.68 (6/16) ,
Low
4.32
4.21 (11/3)
4.39
4.45 1962
4.50 January 5
12
1
60.0
4.50
19
26
70.0
4.40
3
Febiuary 2
9
2
19.5
4.4o
•Weekly averages:
16
1
300.0
4.52*
19til - July 7
1
50.0
23
4.50
1
14
8.0
4.60 March 2
25.0
1
4.37
21
1
200.0
1
4.64
30.0
4.29
9
28
2
16
65.0
4.46
. • t.
August it
2
23
55.0
4.54
' 11
1
20.0
30
4.73*
18
•1
40.0
4.6o April 6
—
—
25
13
September 1
20
—
8
27
1
15
18.0
L 4 6 hay 4
22
11
1
60.8
29
18
4.36
October 6
2
U5.o
25
4.25
June 1
13
20
2
60.0
8
4.21
27
4.28
15
95.0
; 3
November 3 .
22
1*5.0
4.21
3
10
29
•17
4
94.0
4.29
60.0
1
24
4.35
December 1
:• 1
30.0
4; 40
8
; 2
75.0
4.29
1
Averages of offering yields on a l l new issues, of publicly sold bonds rated Aaa, Aa
and A by Moody's Investors Service (except s e r i a l , equipment t r u s t and convertible issues,
o f f e r i n g s of natural gas pipeline and fbreign companies, and issues guaranteed by the
Federal Government) weighted by size of issues. Yields on Aa- ana A-rated bonds are
f i r s t adjusted to an Aaa b a s i s , using the comparable spreads in yields on seasoned bonds
(Moody's averages). Averages r e f l e c t changes in i n d u s t r i a l composition, type, maturity,
and c a l l provisions of new o f f e r i n g s , v/eekly averages considered unusually unreliable
as indicators of i n t e r e s t r a t e s on new issues because of the small number or special
c h a r a c t e r i s t i c s of offerings included e t c . are marked with an a s t e r i s k .
4
4
2
7
9
3
4
5




273.0
115.0
78.8
200.0
229.0 .
115.0
130.0
39L5

-13Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

-----

1962

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

5/600
e/900
e/750

e/850
e/ipCO
e/500

713
689
76U

700
611
568

570
715
860

2,118
1,259
1,318

761
577
i,o44

723
6141
1,084

ai
991

July
August
September

1,028
762
61*7

736
967
726

185
6o4
728

492
606
683

October
November
December

1,090
948
1,000

890
956
852

lii
quarter
quarter
quarter
quarter

0/2,250

1,809
4,695
2,1+37
3,038

.

-6,50k
8,941
11,979

1 s t half
Three quarters
Year

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

ill

1st
2nd
3rd
4th

11

580
667
562

January
February
March

e/2,350

348
501
491

2,166
2,W«7

&S

1,880
2,256
1,780
1,340

4,613
2/6,630
e/8,354

4,136
5,916
7,257

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

quarter
quarter
quarter
quarter

e/2,150

Year

1,55k
4,552
2,337
2,807
11,253

•

1,716
2,165
2,018
2,3U7
8,246

17 Estimated?
„
1 / S e c u r i t i e s and Exchange Commission estimates of net proceeds.
2/ Investment Bankers Association of America estimates of principal amounts.
2 / Total new c a p i t a l issues excluding o f f e r i n g s of s a l e s and consumer finance
companies.




.

Exhibit I

Ik-

New Corporate Security Issues, Type of Issue and I s s u e r
(In m i l l i o n s of d o l l a r s )
Quarter
or
month

Gross proceeds f o r new
Net proceeds f o r
c a p i t a l and refunding 1 /
rfew c a p i t a l 1/ 2/
Bonds
Common
and
Mfg. Public Communi- Other
Total PubliclyJ P r i v a t e l y p f d .
u t i l i t y cations issuers
offered
offered
stock

I960 - I
II
in
IV

2,26$
2,537
2,520
2,832

934
1,07k
1,336
l,k62

795
770
75k
955

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

601
695
696
2,231
1,342
1,779
1,075
813
678
1,155
987
1,09 k

178
273
211
713
666
92k
k2l+
225
123
336
klk
217

29k
255
331
3k8
355
572
392
kll
336
509
3k8
567

129
167
154
1,170
320
283
259
177
218
310
225
310

169
99
248
574
447
446
428
2 55
252
271
215
306

640
930

200
500

250
300

.190
130

220
200

598
808
652
696 .

189
149
317
361

1,059
913
896
997

381
515
kk9
1,77k 1,466 1,081
654
595
935
836 .
845
792

81
1,095
104
147

832
1,052
803
1,263

137
160
84
254
439
389
369
215
111
306
362
168

21
41
19
994
85
16
16
13
75
25
80
42

253
368
211
297
289
467
315
279
209
487
. 291
485

130
100

10
350

240
250

536
692
429
416

298
511
562
625

1962 - I
II
III
IV
I 9 6 I — Jan.
Feb.
Mar.
Apr
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1962 - Jan. p /
Feb. 2 /
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

by the cost of f l o t a t i o n .
2/ For t o t a l see Exhibit K; o t h e r i s s u e r s are
e x t r a c t i v e , r a i l r o a d and other t r a n s p o r t a t i o n , r e a l e s t a t e and f i n a n c e and
commercial and o t h e r .
Source.—Securities and Exchange Commission.




Exhibit J

-15-

Other Security Offerings
(In millions of d o l l a r s )
Gross long-terra 1 /
a l agency 3/
Foreign government 2/
Federal
| 1961
|
1962
I 1961
| I960
IS62
6
29
20
. 2

66
29
5
2

k3
3k
236

I960
182
150
150

2

175
70
' 3k
72
kO
25

252

100

11*8

1U9

35k

278

250
193

1

36
3k

19.9

2

225

160
11*9
161

531

1,W3

1,672

1*1

.
Net short-term k/
S t a t e and Local government 5/
Federal agency 3/
160
195
-8

-103
-k2
-155
109
518

-80

70
-lli6
-157

21*7

-Ikk

-162

-171*
-79
-87
207

1*8

22

-86

lil 5
-175

-6

-16

193
108
98
56

51*
2/ -207
E/

58
lUo

1*29

-196
-202

-59
-277
170
320
95
23

-201

50
-189

-111*

-23
-33
-250

18

-76

-633

p/Preliminary.
1 / These data d i f f e r from those in Exhibit # in t h a t refunding i s s u e s , as well as new
c a p i t a l i s s u e s , are included. Long-term s e c u r i t i e s are defined as those maturing in
more than one y e a r .
2/ Includes s e c u r i t i e s o f f e r e d in the United S t a t e s by f o r e i g n governments and t h e i r
i n t e r n a t i o n a l o r g a n i z a t i o n s . Source: S e c u r i t i e s and Exchange Commission.
3 / . Issues not guaranteed by the U. S. Government. Source: long-term, S e c u r i t i e s and
Exchange Commission$ short-term, Treasury Department and Federal Reserve.
k/ These data d i f f e r from those in Exhibit H and above i n t h a t they represent new
o f f e r i n g s l e s s r e t i r e m e n t s , whether from the proceeds of refunding issues or from
o t h e r funds. Data include only issues with o r i g i n a l maturity of one year or l e s s .
5 / Pfor
r i nFRASER
c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , warrants or c e r t i f i c a t e s and Public
Digitized
Housing Authority n o t e s . In sone instances PHA notes included may have a somewhat
http://fraser.stlouisfed.org/
longer than one y e a r . Source: Bond Buy.er and Federal Reserve.

Federal Reserve Bank of St. Louis

-16 -

Large Long-term Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large Issues Offered *
(In millions of d o l l a r s )

Month

Total

1961 - February
March
April
May
June
July
August
September
October
November
December
1962 - January
February

26?
70
1,572
557
532
475
185
168
351t
391
255
195
425

Corporate
Bonds
Convertible
( o t h e r than
bonds
convertibles)
230
25
560
Wo
135
285
165
78
205
320
125
170
it25

ko
15
.75
33
67
26

S t a te
te
and
local
government

Stocks

360
li05
383
256
616
179
281
135
326
L80
307
561
662

37
5
1,010
62
97
115
20
58
81
16
130
25

Other
2/

67
25
151
100
73
itO
250
lh

,f
6k

Large Individual Issues Offered. March 1 through 9

Issuer

CORPORATE
West Penn Power Co.
Stokely-Van Camp I n c .

Type 1 /

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

1st mtg. bds.
Conv.sub.deb.

30.0
15.0

1992
1982

li-1/2

lt-l/U

U.U3
U.25

Aa
Baa

STATE AND LOCAL GOVERNMENT
Los Angeles Dept. of Wtr.
and Pwr., C a l i f o r n i a
Georgia S t . Hwy. Auth.
Colunfous, Ohio

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

OTHER
None




16.0 1963-92
35.0 1963-91
11.1196U-98

3.15
3.3U
3.08

1.70-3.UO Aa
1.75-3.50 A
1.90-3.50 Aa

K-2

-17-

Footnotes
-Rights o f f e r i n g .
Includes c o i p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and over;
S t a t e and l o c a l government s e c u r i t y o f f e r i n g s of $10 million and over.
Includes foreign government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal agencies.
In the case of S t a t e and l o c a l government s e c u r i t i e s , G.O. denotes general
b b l i g a t i o n s ; Rev.-Ut., revenue o b l i g a t i o n s 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 ; Rev.-S.T., revenue bonds secured by revenue from s p e c i f i c
t a x e s only; Rev. - R e n t . , revenue bonds secured s o l e l y by l e a s e payments.




-18-

Exhibit L
Forthcoming Large Long-term Public Security Offerings f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues
During month following
date shown

Date of
computation

Corporate

- Feb. 28
Mar. 31
Apr. 28
May 31
June 30
J u l y 31
Aug. 31
Sept. 29
Oct. 31
Nov. 30
Dec. 29
1962 - Jan. y i
Feb. 28

55
1,580
5U2
U87
521
170
175
358
316
356
161
180
222

l o c a l govt. j

Subsequent t o
date slawn
j/"

Cor

__

307
559
236
131
195
lt06
399
251 .
597
295
223
165
153

P°rate l l o % % . | 0 t h e r 2 /
1,125
1,700
687
611
666

15
75
73
35

50k
I4II
li21

m

61t

31a

638
806
579
771
291
537
530
I6h
693
h96
ia5
567
239

75

35

6lt

Forthcoming Large Offerings, as of March 9
Issuer

P a c i f i c Gas & E l e c t r i c Co.
South European Pipeline Co.
Ashland Oil and Refining Corp.
National Dairy Products Corp.
National Cash R e g i s t e r Co.
Potomac E l e c t r i c Power Co.
•National Cash Register Co.
Long Island Lighting Co.
• I n t e r n a t i o n a l Tel. & Tel. Co.
•Ohio Oil Co.
• P a c i f i c Power & Light Co.
•Consolidated Edison Co.

Type

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

1st & r e f . m t g . b d s .
S.F. deb.
S.F. deb.
S . F . deb.
S.F. deb.
Com. s t k .
Com. s t k .

36.7

Com. s t k .

23.0

S.F. deb.
S.F. deb.
1 s t mtg. bds.
Conv. p f d . s t k .

50.0
90.0
35.0
9U.7

•Northern Indiana Public Service Co.
1 s t mtg. bds.
• T r anscontinen ta l Gas Pipeline Corp. 1 s t mtg. p . 1. bds.
1 s t mtg. p . 1. bds.
•Lone S t a r Gas Co.
•Appalachian Power Co.
1 s t mtg. bds.
S.F. deb.
Com. s t k .
• P a c i f i c Power & Light Co.




65.0
ItO.O
25.0
35.0
50.0
22.0

20.0
ItO.O
35.0
25.0
20.0
20.0

Mar. lit
Mar. 15
Mar. 22
Mar. 27
Mar. 28
March 21
( r i g h t s expire)
April 1
( r i g h t s expire)
Apr. 2
( r i g h t s expire)
Apr. 3
Apr. It
Apr. 13
Apr. 16
( r i g h t s expire)
Apr. 11
Apr. 18
Apr. 19
Apr. 25
April
( r i g h t s expire)

Forthcoming Large O f f e r i n g s , as of March 9 (Cont'd)
Issuer

Type

|

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

CORPORATE (Cont'd)
L i t t o n I n d u s t r i e s Inc.
Commerce Oil Refining Corp.

Conv. sub. deb.

50.7

Deb., bds 0 & com.

U5.0

April
( r i g h t s empire)
Indefinite

STATE AND LOCAL GOVERNMENT
Dallas, Texas
Penna. Gen. S t a t e Auth c
Denver, Colorado
jI
Puerto Rico Water Resources Auth.
j
%State of Connecticut
j
Louisiana S t a t e Bond and Building
Authority
Washington S t a t e Public Power Supply
System
D e t r o i t , Michigan
Detroit School D i s t . , Mich.
^Shelby County, Tenn.
!
-*Cook Co., I l l i n o i s
-*Los Angeles County Flood Control
j
District, California
;
->City of P h i l a d e l p h i a . Pa,
j
*Pehna. S t a t e Public Sch, Bldg c Auth.i
^Cleveland, Ohio
j
^Georgia S t a t e School Bldg. Autho "
j
-a-Tampa, Florida
J
Bade County3 F l o r i d a
j
J a c k s o n v i l l e Expressway Auth., F l a .

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

10.8
25=0
15.0
12.5
53.7

Mar.
Mar.
Mar.
Mar.
Mar.

12
13
13
lit
Ik

Rev.-Rent.

15.0

Mar. 15

Rev o - t i t .
G.O.
G.O.
G.O,

10c 5
15.0
10.0
12.5
25.0

Mar.
Mar.
Mar.
Apr.
Apr.

#.0
25.0
26. k
16.0
35«0
15.0
il6.0
uo.o

Apr. 3
Apr. h
Apr. 13
Apr. 2h
Apr. 25
Apr. 26
Indefinite
Indefinite

G.Oc

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

20
27
27
2
2

None
%—Included i n t a b l e f o r f i r s t time,
1 / Includes corporate and other i s s u e s of $15 m i l l i o n and over; S t a t e and l o c a l
government i s s u e s of §10 m i l l i o n and over.
__
2 / Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal agencies.
Note.—Deletions f o r reasons other than sale of i s s u e ; None.