Full text of H.16 Capital Market Developments : March 19, 1962

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NOT FOR PUBLICATION DECONTROLLED AFTER SIX MONTHS
H.lU

March 19, 1962.

LIBRARY

MAR 23

1962

FEDERAL RESERVE BANK

, CAPITAL JMARKET DEVELOPMENTS
IN THE UNITED STATES .
(Including Monthly Review of Sources and
Uses of Financial Intermediaries)

OF RICHMOND

The volume of public security financing to obtain new capital was
in fairly substantial volume last week. Although the calendar is light
this week and for the rest of March, the corporate new issue calendar for
April has built up substantially recently and over $600 million in large
issues are already scheduled for offering next month.
During the week ending March 16, 3 large corporate security
issues totaling $127 million were offered and six State and local government
bond issues with par value of $132 million were sold. This week, ending
March 2k, two corporate issues aggregating $60 million are scheduled and
only one State and local issue with par value of $11 million is on the
calendar.
Bond yields. Yields tin long-term bonds declined again last week
to new lows for the year. Yields on Aaa-rated State and local government
bonds declined 3 more basis points to 3.00 per cent, 31 basis points below
their level at the end of 1961 and the lowest since August 1958. Yields
on Baa-rated municipal issues declined 12 basis points further to 3.59
per cent, their lowest level since August 1956. Yields on both Aaa-rated
and Baa-rated corporate bonds declined a single basis point, while yields
on long-term U. S. Government bonds declined 1* basis points.
The average yield on new corporate bonds, adjusted to an Aaa
basis, was it.23 per cent last week, 6 basis points below the average for
the previous week. At this level, new offering yields were at their lowest
level this year and only 2 basis points above the I96I low.
Short- and intermediate-term interest rates. Yields on 3-month
and 6-month Treasury bills increased 1 and 3 basis points, respectively,
last week, while yields on 3-5 year U. S. Government obligations were
unchanged. The average Federal funds rate declined 5 basis points to 2,80
per cent. Other short- and intermediate-term interest rates were unchanged.
Mortgage yields. Secondary market yields on 5-l/U per cent FHA
home mortgages averaged 5.70 per cent in February. This was down 2 basis
points from the January average and the same as in July of 1961. Since
July, when reporting on mortgages bearing the 5-l/it per cent maximum
(which was put into effect in late May) first became available, such yields
have moved within a range of only 2 basis points.
Offering yields on new corporate bonds—adjusted to an Aaa basis—
increased 5 basis points further in February to maintain the rise begun in
November, and the spread between mortgage and bond yields continued to
narrow. At 120 basis points, however, it was still moderately above the
recent low of 108 reached last July.




1

Stock market credit. Customer credit in the stock market declined
slightly further in February for the second straight month, decreasing $38
million to $5»1* billion at the end of the month. This decline was due
entirely to a $i*5 million decline in customer debit balances, except for
those secured by U. S. Government securities, which totaled $U.l billion at
the month-end. Bank loans to others for purchasing or carrying securities
increased slightly for the fourth consecutive month, rising $7 million.
Money borrowed by New York Stock Exchange member firms declined
for the second straight month, decreasing an additional $U9 million.
Customers' free credit balances, which had increased slightly the preceding two months, declined $35 million in February to $1,2 billion at the
end of the month, the lowest level in over a year. These and other data
on stock market credit for January and February are shown in the following
table.
•.

End of month
Change
Feb.
Jan,
(Millions of dollars)
Customer credit
Excluding U. S. Government securities - total
Net debit balances
Bank loans to "others"
Net debit balances secured by U. S. Govt, securities
Bank loans to "others" for purchasing or carrying U. S.
Government securities
Broker and dealer credit
Money borrowed except on U. S. Government securities
On customer collateral
Money borrowed on U, S. Government securities
Customers' net free credit balances
-7

5,k26

U,o66

1,360

3k

r/5,li61i
r/1,111
1,353

3k

-38
-U5
7

133

2,811
2,1*80

2,860

1,190

-k9

r/2,517

-37

r/1,225

-35

71

20

_ _ _ _ _
Stock prices. Common stock prices, as measured by Standard and
Poor's composite index of 500 stocks, increased slightly further on balance
last week, closing at 70,9k on March 16. Trading volume continued to
increase moderately from its low levels of recent weeks, averaging 3.3
million shares a day, 0.^2 million shares above the average for the previous
week.
Institutional investors. The net inflow of savings during January
at three major types of financial institutions—life insurance companies,
savings and loan associations, and mutual savings banks—amounted to $l»k
billion, one-tenth less than in January 1961 but more than in any other
January. (For seasonally adjusted data see last week's Capital Market
Developments.) The bulk of this decline was attributable to a smaller
increase in new savings capital at savings and loan associations this
January than last year; assets of life insurance companies increased slightly
less while the net rise in deposits at mutual savings banks was about the same
as in January 1961. (Time and savings deposits at commercial banks increased
$2.5 billion in January, about eight times more than a year earlier.)




Assets of life insurance companies increased $0.7 billion in
January, slightly less than a year earlier. Over one-half of the increase
this year was in short-term investments, however, in contrast to only onefifth last year. Net acquisitions of business securities totaled $0.3
billion, one-third more than a year earlier; $0.2 billion of this year's
acquisitions were commercial and finance company paper, compared with less
than one-half that amount last year, net investment in long-term bonds and
corporate stock was smaller this January than last. Net acquisition^ of
U. S. Government securities (primarily Treasury bills) totaled $0.2 billion,
twice as much as in January 1961, when these companies also increased their
bill holdings. Mortgage acquisition was in small volume, totaling $137
million, one-third less than a year earlier. Cash holdings declined as usual
in January, but the decrease this year of $0.1 billion was twice as large as
a year earlier.
The net inflow of new savings capital at savings and loan associations in January amounted to $0.5 billion, one-fifth less than in January
1961, due to a larger year-over-year increase in withdrawals than in new
savings capital. Net acquisitions of mortgage loans declined about seasonally from the large December volume, but continued to be sharply larger than
a year earlier; January acquisitions amounted to $0.5 billion. Cash holdings
declined in January, but the reduction of $0.3 billion this year was three
times larger than in January 1961. Associations reduced their borrowings
(primarily from the Federal Home Loan Banks) this year as last but repayments were less than in 1961.
Deposits at mutual savings banks increased by $0.2 billion in
January, about the same as a year earlier. Mortgage acquisitions were in
the largest volume since June 1958, totaling $0.3 billion, one-half larger
than a year earlier. Cash holdings declined seasonally in January, decreasing $0.1 billion, double the reduction in January 1961. Holdings of U. S.
Government securities increased by about $0.1 billion as mutual savings
banks increased their holdings of Treasury bills.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

Capital Markets Section,
Hivision of Research and Statistics,
Board of Governors of the Federal Reserve System.




EXHIBIT A
LONG-TERM

BOND

YIELDS

HIGH-GRADE

VU.S. 60 VEIN BENT

L O W E R- G R A D E

\ f " J STATE AMP IQCAl GOVEINMEMT !«•




-5-

Exhibit B - Tables for Exhibit A
Long-term Bond Yields
high-grade

Date

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

Corporate
Aaa y

Spread between
U. S. Govt, and
State and
Corporate
local Aaa
Aaa

State and
local
government
Aaa 3/
'

(per cent)
1957 - High
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - High
Low
Feb.
Feb.
Mar.
Mar.
yMar.

16
23
2
9
16 2 /

4 . 1 4 (9/27)

3.76

(10AQ)

I'M <!/«/»)

h.h2

<W60)

ti.ti (2/16) 4.12 (2/23)
1.02 (3/16)
4.39 (3A6)
4.08
4.12
4.08

4.43
4.42
4.42
4.40
4.39 ^

(8/29)
(SA)
3.65 (9/24/59)
2.99
3.37
3.26 (1/4)
3.00 (3/16)
3.45

2.64

3.04

3.08
3.08

4.06

3.03

4.02

3.00

.60

.50
.34.92
J*6
.76

.22
.59

3?

.37
.30

V

1.04

.35
.30
.34
.34
.37

1.04
1.04
c/ 1.00
1.03

.80

1.02

Lower grade

Date

Corporate
Baa 1/

State and
local govt.
Baa 2/

Spread between
Aaa and Baa
State and
Corporate
local- jrovt.

(per cent)
1957 - High
1958 - Low
1959-60 - High
1960-61 Low :
1961 - High
1962 - High
Low
Feb.
Feb.
Mar.
Mar.
;
v Mar.

16
23
2
9
16 jo/

5.10
4.51
5.36
4.98

(U/29)
(7A1)
(2A2/60)
(9/9/60)

. 5.13 (10/27)
5.11 (1/5)
5.04 (3/16)
5.08
5.07
5.05
5.05
5.04/

4.51 (8/29)
3.64 (sA)
it. 46 (1/7/60)

til dy/r
4.04 (l/ll)
3.59 (3/16)

3.78

3.81

•3.81
3.71'
3.59

g/ Preliminary-'

for epreede, high refers to widest, and lo#r to mrroweet.




.63

1.21
.93
1.08
.57
.93
.82
.59

.65
.65
.63
.65
.65

.74
.73
.73
.68
' .59

1.27
.77
.84
.66
.81
.68

.

EXHIBIT C
SHORT-

AND

INTERMEDIATE-

TERM INTEREST

GOVERNMENT

BANKS

AND

OTHER

PRIVATE

\K\




BORROWERS

RATES

Exhibit 1) - Tables for Exhibit C

-7-

Snort- ana Intermediate-tera Interest hates
Goveroment

Date

Discount
rate
1/

1957 - High
1958 - Low
1959-60 - H
1560 - 6 1 Low
.1961 - High
1962 - High
Low

3.50
1.75

Feb.
Feb.
Mar.
Mar.
yMar.

3.00
3.00
3.00
3.00
3.00

16
23
2

9

l6 y

Loo
3.00
3.00
3.00
3.00

-

Yields
6-month
bills 2/
(per cent)

3-month
bills 2/

3.6U (io/ie)
- 5 8 (5/29)

3.02

4.59 (1/6/60) 5.07
2.11 (10/28/60) 2,35
2.66

(12/29)

Spread between yields on 33-5 year „ month bills and yields on
issues 2/
o-mo. billsj 3-5 yr. issues

4.04 (10/16)
(12/26) 2.1k (6/6)
(1/6/50) 5.00 (12/24/59)

.86

" .26

.Oil

1.81

.79

d l

#

2.90

2.87(3/2)

3.61 (3/16)

3fu
• 2|i
.15

2.81

3.00

2.74
2.69
2.73
2.7 V

2.93
2.87

3.78
3.73

.19
.19

.18

.97
.99
.93

3.61

.15
.17

.87

2.81 (2/16)
2.67 (1/26)

3.02 (1/12) 3.88 (2/2)

3.62

2.88

3.61

2.91

1.19
.87

.88

Banks and Other Private Borrowers

Date

Stock Exchange
call loan 1/

Pzlme
late 1/

Finance comparer
paper 2/

Federal
funds 4/

Spread between
3-mo. bills and
i'irance co. paper

(per cent) ,
1957 - High
1958 - Low
1959-60 - High
1960-61- Low
1961 - High
1962 - High
Low

4.50
3.50
5.50
ji.5>0
4.50
4.50
1.50

Feb.
Feb.
Mar.
Mar.
Mar.

4.50
4.50
4.50
4.5o
4.5o

16
23
2
9
16 2 /

4.50
3.50
5.00

3.88
1.13
5.13
2 .50
3.00
3.11
3.00

4.50
4.50
4.50

3.00
3.00
3.00
3.00
3.00

4.50
4.50
4.50
4.50

4.50
4.50

(n/»)
(d/a)
(1/22/60)
(8/5/61)
(12/29)
(1A9)
(3/16)

3.50 (11/0)
.13 (V2S)
4.00 (6/13/60)
•43
(1/27/61).
2.88 (12/29)
2.85 (3/9)
1.30 (1/26) .

2.44
2.25
2.60
2.85
2.80

.63
-.35
1.02
.11
.56
.38
.19
.19
.26
.31
.27
.26

1/ Weekly rato shown Is that in effeot at end of period.
. . .
Stock Exchange M I L LE*a rate is going rat* on cell IOM.F secured by euatomers' stock exchange ecllr.t*r*l at
Now York City banks. Prlne rate la that charged by l&rs- bank# on short-tore loans to business borrower# of
the highest credit standing.
2/ Market yield; weekly averages computed from dally doting lid prlees. Series of 5-9 year Issues consists ef
selected notes and bond*.
3/ Average of dally rites publtAed by finance companies for dticctly plr.ced paper for varying maturities In the
4/ Weekly awMge^of dally effective rste, which is th* rate for the heaviest voltmo of purchase end sale trannaottons
as reported to the Federal Rsoerv* Bank of New York.
Note .--Highs and lows are for individual series and nay be on different dates for different series.
For spreads, high refers to widest, and lew to narrowest.




EXHIBIT

STOCK

E

MARKET

CHANGE IN

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

Monthly




I

..... . L_
| \ -New lnu#»

SERIES

Exhibit F - Tables f o r hxhibit E

-9-

Stock Market
Trading
Common
stock
v o l u m e 3/
y i e l d s 2/ (millions
(per c e n t ) o f shares)

S t o c k price
index 1/

1 9 6 0 - 6 1 - High
Low
1962 - High
Low
January
February
Mar. 2
Mar. 9
Mar. 1 6 2 /

72.01* (12/8/61)

68.13 (1/26)
69.07

70.22
70.16
70.1*2
70.91*

2.82
3.62
2.93
3.01

5.8
2.2

2.97
2.91*
2.96
2.91*

3.7
3.5
3.0
3.1
3.3

2.93

StpjCk market customer credit
yank
Customers'
Total debit bal- loans to
ances!^
"others" 5 /
(In millions OJ dollars)

5 , 6 0 2 (12/61)U,259 (12/61) 1 , 3 7 7 ( 8/30/61)
l*,li*2 (5/60)3,00li(7/60) 1 , 1 2 1 (5/25/60)

5,1*61* (1) 1*,111 (1)

3.9
3.0

5,1*26(2) 1*,066 (2)
r/5,1*61*

5,1*26
n.a.
n.a.

i/k,lll

1*,066
n.a.
n.a.
n.a.

1,373 (3/7)

1,31*8 (1/21*)
1,353
1,360
1,360
1,373
n.a.

11.&.—Not available
g/ Preliminary.
1/ Standard and Poor's composite index of 500 common stocks, weekly closing prices, 1941-43=10, Monthly data are
averages of dally figures rather than of Friday's only. Highs and lows are for Fridays' data only.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prloes by Federal
Reserve. Yields shown are for dates on which price Index reached Its high or low.
3/ Averages of dally trading volume on the New York Stock Exchange.
4/ End of month figures for member firms of the New York Stock Exchange which carry margin accountsi excludes balance
secured by B, S. Government obligations.
5/ Wednescfay 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 Y0rk and Chicago, Weekly reporting
banks account for about 70 per cent of loans to others. For further detail see Bulletin.
Mortgage and Bond Y i e l d s 1 /

Date

1959-60 - High
1960-61 - Low

L 5 6 ( 2/55)
6.21* ( 1 / 6 0 )
5.70 (7/61)

It. 81
2.71*
5.29
1*.26

(6/57) 1*.12 (9/57)
(3/510
2.81* ( V W
(9/59) U . 6 1 (1/60)
(10/61) lt.22 (3/61)

1961 - October
November
December
1 9 6 2 - January
February

5.72
5.72
5.71
5.72
5.70

lw26
1a-32
1*.39
b.hS
l*.5o

1*.1*2
1*.39
1*.1*1
1*.1*2
1*.1*2

1953-58 - High
Low

Spread between n e w
corporate bonds a n d

1.96

.5k

1.76
1.08
1.1*6
1.1*0
1.32
1.27
1.20

I
1

5.63 (11/57)

Aaa corporate
bonds 1 /
New 3/
| Seasoned 1*/

1
i

!

FHA
mortgages 2/

.90
-.12
.77
-.16
-.16
-.07
-.02
.03
.08

Generally, bonds pay Interest semi-annually; mortgages, monthly. Mortgage yields, If computed as equivalent to a
semiannual Interest Investment, would be slightly hlghir than given in the table.
2/ Based onfflAfleld-offloe opinions about average bid price# In the private secondary market for new-home mortgages
for immediate delivery. Since late 1955, data relate only to 25-year mortgages with downpeyments of 10 per cent
or more, weighted by probable volume of transactions. Yields computed by IRB, assuming 25-year mort«*R«s_are
paid off in 12 years. Dashed lines Indicate periods of adjustment to changes In the contractual Interest rate.
3/ First National City Bank of New York. Averages of offering yields of all new Issues of publicly-sold bonds rated
Aea, Aa or A by Moody's Investors Service (except serial, and convertible issues and offerings of natural gas and
foreign companies) weighted by size of Issue. Yields on Aa and"A issues are first adjusted to an Aaa basis by the
spread between yields of outstanding bonds in these categories and those on Aaa-rated bends. The series reflects
changes in industrial composition, maturity, type, etc. of new offerings.
4/ Moody's Investors Service. Monthly averages of dally data. See Exhibit B.




-10-

Exhibit G
Yiexds on New Corporate Bond Issues Adjusted to an Aaa Basis
Number
of issues
included

Monthly averages:
1961 - July
August
September
October
November.
December
1962 - January
February
March
April
May
June
•Weekly averages:
1961 - July 7
14
21
28
August 4
11
18
25
September 1
8
15
22
29.
October 6
13'
20
27
November 3
10
•17

2k

December 1
8

Amount
Average1
of issues
yield
included
(per
(millions
cent)
of dollars)

4

k
2

7
9
3

- k
5

273.0
115.0
78.8
200.0
229.0
115.0
130.0
39 it. 5

1
1
2
2
1
; 1

8.0
200.0
65.0
55.0
20.0
1*0.0

1

18.0

1
2

60.8
45.0

2
3
3

60.0
95.0
15.0

k.

91*.0
60.0
30.0
75.0

1
1
2

December 15
1.62
22
4.59
29
4.36
14.26 1961 - high
Low
4.32
1.39
4.45 1962
4.50 January $
12
19
26
Febittary 2
9
16
23
4.6o March 2
4.64
9
16
4.46
4.54
23
30
4.73*
4.6o April 6
13
20
27
4.46 May 4
11
18
4.36
25
4.25
June 1
8
4.21
4.28
15
4.21
22
29
-4.29
4.35
• 4.40
4.29

Number
of issues
included

1

Amount
Average
of issues
yield
included
(per
(millions
cent)
of dollars)
• 40.0

4.55*

4.68 (6/16) 4.21 (11/3)

1

60.0

• 3

70.0

4.4o

19.5
300.0
5o.o
25.0
30.0
65.0

4.4o
4.52*
4.50
4.37
4.29
4.23

2
1
1
1
1
1

4.50

::

Averages of offering yields on all new issues, of publicly sold bonus rated Aaa, Aa
and A by Moody's Investors Service (except serial, equipment trust and convertible issues,
offerings of natural gas pipeline and foreign companies, and issues guaranteed by the
Federal Government) weighted by size of issues. Yields on Aa- ana A-rated bonds are
first adjusted to an Aaa basis, using the comparable spreads in yields on seasoned bonus
(Moody's averages). Averages reflect changes in industrial composition, type, maturity,
and cal^T provisions of new offerings, vtfeekly averages considered unusually unreliable
as
indicators
of interest rates on new issues because of the small number or special

characteristics of offerings included etc. are marked with an asterisk.



Extebit H
Long-term Corporate and State and Local Government
Security Offerings, and Placements
(In millions of dollars)
New capital
Corporate 1/
1 1961
1

1962
January
February
March

p/660
e/900
e/750

I960

700
611
560

761
577
i,o44

723
6ia
1,08k

515
991

736
967
726

185
60I4.
728

492
606
683

890
956
852

g/648
2/726
e/550

348
501
491

2,166
2,UU7

1,860
2,256
1,780
1,340

14,613
2/6,430
6/8,354

4,136
5,916
7,257

570
715
860

April
May

2,118
1,259
1,318

July
August
September

1,028
762
61*7
1,090
948
1,000

1st
2nd
3rd
iith

quarter
quarterquarter
quarter

e/2,310

IS

2,ii37
" 3,038

1st half
Three quarters
Year

e/850
e/LpOO
e/500

713
689
764

580
667
562

October
November
December

State and local 2/
1962
1 1961
1 I960

2,145
2,382
2,428
2,698

6,50li
8,91a
11,979

e/2,350

sas

Excluding finance companies 3 /
1st
2nd
3rd
iith

quarter
quarter
quarter
quarter

8/2,210

Year
e/
1/
2/
2J

tfii

2,337
2,807

11,253

1,716
2,165
2,018
2,347 .
8,246

Estimated/
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America-'estimates of principal amounts,
Total new capital issues excluding offerings of sales and consumer finance
companies.
-




Exhibit I
New Corporate Security issues. Type of. Issue and Issuer
(In millions of dollars)

Quarter

I960

19 61

Gross proceeds for new
Net proceeds for
capital and refunding 1/
hew capital 1/ 2/
Common
and
Public uoi.uiiuni- Other
Publicly Privately
Mfg.
pfd.
utility cations issuers
offered
offered
stock |

I
II
III
IV

2,265
2,537
2,520

I
II
III
IV

1,992
5,352

2,832

2,566

3,236

934
1,07k
1,336

1,462

^ 6 6 2

2,303
772
967

298
511
562
625

795
770
75k
955

536

880
1,275
1,139
l,k2k

kk9
1,77k

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

129
167
15k
1,170
320
283
259
177
218
310
225
310

271
215
306

IkO
130

246
200

692
k29
kl6

654

8k5

515
l,k66
935
792

598
808
652
696

189
lk9
317
381

381

81
1,095
104
lk7

803
1,263

21
kl
19
99k
85

211
297
289

1,081
595
836

1,059
913
890

997
832

1,052

1962 - I
II
III
IV

1961 — J-- n.

601

July
Aug.
• Sept.
Oct.
Nov.
Dec.

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

Feb.
Mar.
Apr
May

1962 - Jan. g/
Feb. e/
Mar.
Apr.
May '

720
930

178
273
211
713

666
92k
k2k
225
123
336
klk
217
273

500

308 300

169
99
2k8
57k
kk7
kk6
k28
255

252

137
160
6k
25k
k39
389
369
215
111
306
362

168

253
308

16

467

16
13
75
25

315
279
209
487
291
485

80
42

3P0

na

July
Aug.
Sept.
Oct.
Nov.
Dec.
p/ Preliminary.
~ef Estimated.
1/ Gross proceeds exceed net proceeds
by the cost of flotation.
2/ tor total see Exhibit h; other issuers are
extractive, railroad and other transportation, real estate and finance and
commercial and other.
Source.--Securities and Exchange Commission.




Exhibit J

-13-

Other Security Offerings
(In millions of dollars)
Gross long-terra 1/
foreign government 2/
federal arency 3/
1962
| 1961
1 1960
19 o2
1 1961
| I960
January
February
Ma rch
April
May
June
July
August
September
October
November
December
Year

11*2

6
29
20.
2
66
29
5
2

.

2U6

3k

UO

25
1
36

3k

43
—

2#

181
150
150
118

252
100
ite278

72

3k
/

2
175
70

35k

——

——

250
193

199

2
ill

225

533

IMS'

160
ito
181

—

1,672

Net shorib-term 4/
State and Local government SI
Federal agency 3/
January
February
March
April
May
July
August
September
October
November
December

160
195
-8
-103

-h2

2/

Year

J7
1/

-1#
109
518
-86
-6
5U
-207

E/ 129

•

58

IhO

-80
70
-lit6
-157
Ii8

/

blS

-175
-16
50
-189
•

18

21*7

-liiii-162
-17b
-79
-87
207
22
193
108

-196 '
-202
-59
-277
170
320

95

-Ill

23
-201
-23
-33
-250

-76

-633

98
56.

Preliminary.
' "
These data differ from those in Exhibit # in that refunding issues, as well as new
capital issues, are included. Long-tern securities are defined as those maturing in
more than one year.
J1/ Includes securities offered in the United States by foreign governments and their
international organizations. Source: Securities and Exchange Commission.
J / Issues not guaranteed by the V. S. Government. Source: long-term, Securities and
Exchange Commission; short-term, Treasury Department and Federal Reserve.
h/
These data differ from those in Exhibit K and above in that they represent new
offerings less retirements, whether from the proceeds of refunding issues or from
other funds. Data include only issues with original maturity of one year or less.
5/ Principally tax and bond anticipation notes, warrants or certificates and Public
~
Housing Authority notes. In sone instances PHA notes included may have a somewhat
longer than one year. Source: Bond Buyer and Federal Reserve.




-i.il-

Exhibit K
Lnty/j

Lut'-i-.-tonn j'ublic Security Issues for New Capital
(OLhtir th:m U. S Treasury) 1/
J'rucuods of Large issues Offered

*

(In millions of dollars)

Month

Total

IV61 - February
March
April
May

26?
70
1,572
#7
532
1*75
185
160
351
391
2#
1#
125

July
August
Septcmber
October
November
December
1962 - January
February

Corporate
tiondy
Convertible
(other than
bonds
convertible:?)
__

230
25
560
180
1*35
205
165
78
205
320
125
170
I25

ho
15
75
33
67
26

Large Individual Issues Offered

State
and
local
government

Stocks

360
1*05
383
256
616
179
281
1*35
326
L80
307
561
662

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

Other
2/
__

67
25
151
100
73
Lo
250
115
61*

March 1 through 16

Coupon
rate or
i i l o n a Maturity net interest cost
1 dollars)
1 Amount

Issuer

Type 2 /

(mi

luting

CORPORATE
West Penn Power Co.
Lst mtg. bds,
Stokely-Van Camp Inc.
3onv.sub.deb,.
Pacific Gas & Electric Co. Lst & ref.
mtg. bds. -—
Southern European Pipeline S.F. deb.

30.0
15.0

1992
1982

h-l/h

U-1'2

1*.1*3
U.25

Aa
Baa

65.0
1*0.0

1991*
1982

U—3/8
5-1/2 -

U.36
5.1*6

Aa

16.0
35.0
11.1
10.6
25.0

1963-92
1963-91
1904-98
1963-82
1965-69

—

STATE AND LOCAL GOVERNMENT
Los Angeles Dept. of Wtr.
and Prcr., California
Rev.-Ut.
Georgia St. Hwy. Auth.
Rcv.-S.T.
Columbus, Ohio
G.O.
Dallas, Texas
G.O.
Penn. Gen. State Auth.
Rev.-Rent.
City and County of
Denver, Col.
G.O.
Puerto Rico Wtr. Resources
AuthorityRev.-ITt.
State of Connecticut
G.O.
Louisiana State Bond &
J

Rev.-Rent.
Blrig.
Auth.



3.15
3.31*
3.08
2.86
3.05

1.70-3.1*0 Aa
1.75-3.50 A
1.90-3.50 A a
1.65-3.10 A
2.00-3.25

15.0

1972-99

3.%)

2.60-3.W

12.5
53.7

1964-98
1968-75

3.2*0
2.59

1.90-3.75
2.20-2.70

15.0

1963-87

3.27

Aa

A
Aaa
/
1.75-3.35 Baa

.

K-2

-15-

Large Individual Issues Offered March 1 through 9 (Cont'd)

Issuer

Type 3/

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

OTHER
None

1/

Includes corporate and other security offerings of $15 million and over;
State and local government security offerings of $10 million and over.
2/ includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal agencies.
3/ In the case of State and local government securities, G.O. denotes general
obligations; Rev.-Ut., revenue obligations secured only by income from
public utilities; Rev.-Q.Ut., revenue bonds secured only by revenue from
quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific
taxes only; Rev.-Rent., revenue bonds secured solely by lease payments.
k/ 3 per cent bonds due 1985-87 not reoffered.




Rating

-16-

Forthcoraing La;

Long-term Public Security Offerings for New Capital
(Other than U. S. Treasuiy) 1/

Ezmected Proceeds from Forthcoming Large Issues
Date of
computation

g'ort,|0ther 2/

Corporate

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

55
1.580
51*2
187
521
170
175
:
3#
3h6
3#
161
180
222

307
559
2#
131
195
I4O6
399
251
597
2#
223
165
153

__

Subsequent to
date sliown __

Daring nonth following
shown

Corporate

638
806

1,125
1,700
687
611
666
255
210
50k
101
U21
591
525
311

15
75
73
35

6U
—

^ J o t h e r 2/

579
771
291
537
530

h5h

693
198
105
567
239

15
75
73
35

61*
—

Forthcoming Large Offerings, as of March 16

Issuer

Amount
Approximate date
(millions
of offering
of dollars)

Type

CORPORATE

22.0

Potomac Electric Power Co.

Com. stk.

Ashland Oil and Refining Corp.
National Dairy Products Corp.
International Tel. & Tel. Co.
National Cash Register Co.
National Cash Register Co.

S.F.
S.F.
S.F.
S.F.
Com.

Long Island Lighting Co.

Com. stk.

21.1

Ohio Oil Co.
^Tennessee Gas Trans. Co.
^General Tel. & Elec. Co.
Northern Indiana Public Service Co.
Pacific Power & Light Co.
Consolidated Edison Co.

S.F. deb.
Deb.
Deb.
1st mtg. bds.
1st mtg. bds. Conv. pfd. stk.

90.0
50.0
20.0

Transcontinental Gas Pipeline Corp.
Lone Star Gas Co.
Appalachian Power Co.

1st mtg. p. 1. bds.
S.F. deb.
1st mtg. bds.
S.F. deb.
Com. stk.

25.0

Pacific Power & Light Co.




deb.
deb.
deb.
deb.
stk.

25.0
35.0

50.0
50.0
36.7

75.0

35.0
91.7
liO.O
35.0

20.0
20.0

March 21
(rights expire)
Mar. 22
Mar. 22
March 27
Mar. 28
April 1
(rights expire)
Apr. 2
(rights expire)
Apr. k
April 10
April 10
Apr. 11
Apr. 13
Apr. 16
(rights expire)
Apr. 18
Apr. 16
Apr. 25
April
(rights expire)

Forthcoming Large Offerings, as of March 16 (Cont'd)

Type

Amount
Approximate date
(millions
of offering
of dollars)

CORPORATE (Cont'd)
Litton Industries Inc.
Commerce Oil Refining Corp.

Conv. sub. deb.

50.7

Deb., bds. & com.

1*5.0

April
(rights expire)
Indefinite

STATE AND LOCAL GOVERNMENT
Washington State Public Power Supply
System
Detroit, Michigan
Detroit School Dist., Mich.
Shelby County, Term.
Cook Co., Illinois
Los Angeles County Flood Control
District, California
City of Philadelphia, Pa.
Penna. State Public Sch. Bldg. Auth,
•^Sacramento Mun. Utility Diet. ,Cal.
Cleveland, Ohio
Georgia State School Bldg. Auth.
Tampa, Florida
Dade County, Florida
Jacksonville Expressway Auth., Fla.

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

10.5
15.0
10.0
12.5
25.0

Mar.
Mar.
Mar.
Apr.
Apr.

20
27
27
2
2

25.0
25.0
26.1;
10.0
18.0
35.0
15.0
U6.0
2*0.0

Apr. 3
Apr. k
Apr. 17
Apr. 17
Apr. 2k
Apr. 25
Apr. 26
Indefinite
Indefinite

30.0

March 29

OTHER
^Kingdom of Belgium

Bonds

*—Included in table for first time
1/ Includes corporate and other issues of $15 million and over; State and local
government issues of $10 million and over.^
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by federal agencies.
Note. —Deletions for reasons other than sale of issues None.




Exhibit M

-18-

Sources and Uses of Funds by
Life Insurance Companies

Cash

U.S.
Govt.
ities

Value of assets at
end of period:
1958 - Dec.
1959 - Dec.
I960 - Dec.
1961 - Dec.
1962 - Jan.

jo/1960 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.

1962 - Jan.
Feb.
Mar.

Total
sources

(In millions of dollars)

Changes:
1959 - Oct.
Nov.
Dec.

2/1961 - Jan.
Feb.
Mar.
Apr.
May
June r/
July
Aug.
Sept.
Oct.
. Nov.
Dec.

Uses of funds 1/
BusiState and
ness
local govt. Mortsecurgages
ities 2/ ities

1,363
1,307
1,332
1,389
1,281

7,182
6,858
6,iM
6,10k
6,31k

kk,612
k6,901
k8,896
51,52k
5l,8k8

2,691
3,221
3,622
3,922
3,958

37,092
39,237
kl,798
kk,2kl
kk,378

lk,6ko
16,126
17,625
19,k09
19,532

107,580
113,650
119,717
126,589
127,311

20
33
99

-18
-132
-168

203
195
219

Ik
18
2k

2k5
235
30k

91
lk6
313

555
k95
791

-71
-S3
-30
39
-12
33
12
k
-51

153
-36
-167
-85

-2k
25
35
21
26
13
10k
k3
82
33
26
17

336
196
2k2
225
203
192
63
226
179
21k
208
277

-k6
207
115
95
128
211
206
175

552
k6k
299
k29
5lk
k69
628
576

-62
23
-103

20k
"125
10k
13k
231
125
167
168
kO
311
198
188

173

101

2k2

210

202 '

135

107
16k
165
199"
235
k26

202
186
119
58
1#
lk2
128
138
105
165
308

750
k8k
518
k52
5kl
289
630
521
509
653
6k2
883

1#

123

722

90

-35
99
-5k
-9
-50
9
75
-39
kO

-62

-102
73
-kO

-6

Ik
31
k3
15

-5o
13
-k3
-256

288
206
372

k9
31
33
3k
5
-13
25
36
29
17
36
18

-108

210

32k

36

-3
-7
-k7
63

-182

71

-18
^

128

lk8
135

170

270
2k5
211

213

122
11
102

208
202

170

222

.

1/ Uses of funds represent net changes in assets and therefore reflect net3
than gross, uses.
2/ Includes securities of domestic corporations only.
 of Life Insurance.
Source.—Institute



366

597
522
651

Exhibit N

-19-

Sources and Uses of Funds bySavings and Loan Associations

Cash
Value of assets
at end of period
1958 - Dec.
1959 - Dec. r/
1960 - Dec. r/
1961 - Dec. ~
1962 - J a n *
Changes:
1929 - Oct.
Nov.
Dec.
I960 - Jan.
Feb.
Mar.
Apr.
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec.
2/1961 •- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec. r/
1962 -• Jan.
Feb.
Mar.
r7
1/

Uses of funds 1/
u. s.
Mort-, Other
Govt,
gages-/
ities

Total
sources

Sources of funds
Net
change
BorrowOther
savings
ing' 3/
capital

(In millions of dollars)
2,285
2,183
2,680
3,298
2,951

3,819
1*,1*77
L, 595
5,222
5,1*03

U5,627
53,lltl
60,070
68,633
69,373

3,108
3,729
1*, 131
l*,7l*3
4,568

55,139
63,530
71,1*76
62,096
82,295

1*7,976
51*, 583
62,11*2
70,651
71,312

-69
61
371

10
-28
-25

626
1*61*
167

86
137
-61*

6#
631*
71*9

3#
1*61*
1,205

136
56
222

-315
-3k
1*9
-26
81
320
-233
30
25
102
83
1*15

199
65
-26
18
-1U3
-32
-23
5
110
-51*
-l

321
1*00
51*1,
56U.
635
762
615
722
656
602
515
566

-112
61*
101*
108
210
-50
-11*8
-6
50
-1
233
-50

93
1*95
668
61*6
91*1*
869
232
723
736
613
777
930

1*67
1*06
630
370
622
1,220
157
1*86
601*
666
552
1,379

-1*51
-123
-125
39
1*
210
-121*
22
1*9
-11*
52
271

-95
59
3
23
150
131
-227
—86
1*7
81
81*
1*1*8

93
191
107
-18
-3
32
-8
66
-5
1*5
82
1*5

369
1*28
690
695
809
997
737
910
602
810
752
76U

-106
71
122
113
221*
-61*
-150
76
63
103
' 198
-56

261
71*9
922
. 613
1,180
1,096
352
966
927
1,039
1,116
1,199

591
553
705
1*17
600
1,362.
Ill
1*96
662
726
775
1,511

- -1*65
-60
-26
68
1*1
271*
-1
132
130
71*
81
1*18

135
276
21*3
308
339
-51*0
2l*2_
3#
135
239
260
-730

-3U7

181

5i*o

-175

-383

121

199

1*61

1,1*1*1*
2,367
2,197
2,863
2,1*60

5,719
6,560
7,137
8,382
8,503
121
91*
-676
z.

77
212
163
237
318
-51*1
199
215
63
161
173
-720

Revised.
p7 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 government bonds, presumed to be small,

borrowing.
Source.—FSLIC.



Exhibit 0
-20-

Sources and Uses of Funds
by Mutual'Savings Banks

Cash

Value of assets
at end of period
1958 - Dec.
1959 - Dec.
1960 - Dec.
1961 - Dec. r/
1962 - Jan.

921
829
872
938
838

Changes:
1959 - Oct.
Nov.
,Dec.
1960 — Jan.
Feb.
Mar.
Apr.
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec.
1961 - Jan.
Feb.
Mar.
Apr.
May
June r/
July
Aug.
Sept.
Oct.
Nov.
Dec. r/
1962 - Jan.
Feb.
Mar.

Uses of funds 1/
Busi- State &
Total
local
ness
sources
Mortgovt,
gages Other or uses
securities
ities
ities
2/
(In millions of dollars)

U. S.
Govt.(

7,266

23,039
855
21*, 768
910
26,709 1,001
28,925 1,111
29,168 1,106

6,230

6,1#

5,01*6
5,070

725
722
672
678
670

-27
20
111

-281
-85
-12

-55
-28
23

-20
-8
-2U

137
12U
132

-37
1*2
-12

-131
37
1*1
-86

-9
-11
32
-11*8
-80
-93
-1*8
30
-32
-156
-68
-1*2

-12
-9
52
-19
13
57
38
-8
32
-1*
31*
57

-6
-9
3
13
-23
-1*
-1*
-5
1
-6
-5
-5

159
116
150
129
161
169
.159
206
196
168
171
157

-12
1*3
1*1
-21
63
-59

106
100
117
-216
-13
-52

3
-15
.1*6
-11
27
31*
2
-23
-19
-56
-20

-5

-2

161
11*0
20U
176
187
217
201
207
156
178
167
222

21*

21*3

1*2

108
-69
-6
22
-8
9
81*
-1*9

21

6,861*
6,239

9
-51
30
30
-26
-ll*
1*6
-27
7
90

-15
-120
-13
-12

-100

85

18
6

U, 973
1*,8L9

5,080

-1
-2
1
23
-2

1
1
-5
-5'

1*2

6
11*
-25
13
-11*

17
26
29
-51
30
-23
-28
55
1*9
-1*1*
1*6
1*

Sources of ifunds
Net
change in
deposits

31*, 01*1
31*, 983
36,353

Other

38,570

-3,738
3,959
1*, 220
1*, 1*1*0
1*,513

-283
65
218

-187
-27
3li0

-96
"92
-122

-11
167
319
-132
176
178
118
223
233
-31
15U
237

-68
50
320
--95
58
221
21
105
278
56
39
385

57
117
-1
-37

233
272
1*01*
-151*
262
228

170
136

37,779
38,91*2
1*0,573
1*2,81*1
1*3,083

38,1*01

351
-51*

300

367^/
23
99
310
-15
1*8
385

21*2

169

16U

232
220
-71*

181

118

-1*3
97
118
-1*5
-87
115
-11*8
63
136
53
-100
-1392/
11*1

133

-90

-59
133
-85
73

YJ—uses of funds represent net changes in assets and therefore reflect net, rather
2/
~

Includes Canadian government and political subdivisions, International Bank for
Reconstruction and Development, nonguaranteed Federal agency and other bonds as

Digitized
for as
FRASER
well
corporate bonds and stock.
3/ conforming to FDIC redefinition, $115
http://fraser.stlouisfed.org/
Source.—NAMSB and FDIC.
Federal Reserve Bank of St. Louis

million other liabil. reclassified as deposits.