Full text of H.16 Capital Market Developments : March 23, 1964

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Not for Publication DECONTROLLED AFTER SIX MONTHS
H. 14

March 23, 1964.

MAR 2 0 1964
CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES

FEDERAL RESERVE BANK
Qg MCHMOND

(Including Review of Sources and Uses of Funds
of Financial Intermediaries in
January)
Public security financing to obtain new capital was very
light last week, but will be quite substantial this week. Last week,
ended March ^ l ^ n o large corporate issues were sold, but one $18
million State and local government bond issue was sold to obtain new
capital. This week, ending March 27, five large corporate issues
(including an expiring rights offer and a tentatively scheduled bank
debenture issue) totaling $219 million and four large"State and
local issues with par value of $70 million are scheduled for sale.
In addition, the Inter-American Development Bank is expected to offer
$50 million in bonds.
Bond Yields. Yields on most seasoned, long-term bonds rose
last week. Aaa-rated corporate bond yields rose another basis point to
4.38 per cent, matching their high for the year; yields on U. S.
Government bonds also increased another basis point to 4.18 per cent,
the highest since May 1960. Yields on Aaa-rated State and local
government bonds rose three more basis points to 3.16 per cent, the
high for this year and only two basis points below their late November
high, while lower-grade municipal bond yields went up two basis points to
3.57 per cent. Yields on Baa-rated corporate bonds were unchanged.
Short- and intermediate-term interest rates. Rates on both
3-month and 6-month Treasury bills were stable last week, but yields
on 3-5 year U. S. Government obligation rose four basis points further
to 4.16 per cent, the highest since the spring of 1960. The average
effective Federal funds rate eased to 3.40 per cent. Other rates
were unchanged.
Housing starts and permits. Seasonally adjusted private
housing starts declined 5 per cent in February. The decline followed
a sharp rise in January, however and--at 1,643 thousand, including
farm--the February rate about matched the average in the previous two
months andtias one-fifth above the reduced rate in February of last year.
On a three-month moving average basis, the December-February rate was
4 per cent below the recent high in the September-November period and
15 per cent above a year earlier.
Government-underwritten starts constituted 17 per cent of
total starts in February. This compared with 20 per cent a year
earlier and 27 per cent in February of 1962.

February.

Seasonally adjusted building permits turned up again in
Permits for structures of 5-or-mcre units, which accounted




ri.14
for all of the decline in total permits in January, recovered
appreciably while permits on single family structures expanded
further.
Stock market credit. Customer credit in the stock market
fell $130 million during January to $7.1 billion at month-end. All of
the decline was accounted for by customers debit balances (except on
U. S. Government securities) which dropped $140 million. Bank loans
to other than brokers and dealers for purchasing and carrying
securities (other than U. S. Government securities), on the other
hand, increased $10 million.
Money borrowed by member firms of the
on customers collateral fell $57 million during
free credit balances dropped $63 million. More
on stock market credit is shown in the table on

New York Stock Exchange
January, and customers
detailed information
the following page.

Stock prices. Common stock prices, as measured by Standard
and Poor's composite index of 500 stocks, eased slightly on balance
last week to close at 78.92 on March 20. Trading volume averaged 5.4
million shares a day, down 0.2 million shares from the average for
the previous week.
Institutional investors. The net inflow of savings during
January at three major types of financial intermediaries--life insurance
companies, savings and loan associations and mutual savings banks-totaled $1.6 billion, 19 per cent less than last year, but 26 per
cent larger than in January 1962. A large year-over-year decline in
growth of savings capital at savings and loan associations was only
partly offset by sharply increased growth of deposits at mutual savings
banks, while the increase in assets of life insurance companies was
about the same as in January 1963. (Time and savings deposits at
commercial banks rose $1.1 billion between December 31, and the last
Wednesday of January, 9 per cent less than a year earlier.)
Assets of life insurance companies, excluding valuation
adjustments, totaled $0.8 billion in January, about the same as a year
earlier, but 9 per cent greater than in January 1962. (This t o t a l shown as a memorandum item in Exhibit N,--excludes the change in the
miscellaneous portion of other assets, which includes most, but not all,
valuation adjustments as well as changes in some minor asset items.
Despite imperfections in this adjusted total, itSI:MS imore analytically
useful than the unadjusted one, and will be used in future analyses.)
Net acquisitions of business securities totaled a January record of
$0.5 billion, over twice that of a year earlier; acquisitions of longterm bonds and stocks amounted to $0.3 billion--over four times as
much as in January 1963, while holdings of short-term commercial and
finance company paper rose $0.3 billion—about two-fifths more than
last year. Mortgage acquisitions totaled $0.3 billion, one-third
greater than last year. Holdings of cash and U. S. Government
securities, on the other hand, fell $0.1 billion in contrast to
virtually no change in January 1963, and holdings of State and local
government securities were reduced somewhat whereas they had increased
slightly in the comparable period last year. Also, acquisitions of




H. 14
STOCK MARKET CREDIT
(In millions of dollars)

Total,
except on
U.S. Govt,
securities

Outstanding!
1955-56 High
1957-58 Low
1959
1960
1961
1962
1963

- High
- Low
- High
- Low
- High

4,047
(5/56)
3,554
d/58)
4,764(4)
4,142(5)
5,602(12)
4,876(7)
7,298 (11)

1963 - Dec. 1/ 7,241
1964 - Feb.l/ 7,120
Changes in
Outstanding:
1963 - Feb.
122
Mar.
37
Apr.
224
May
• 251
June
191
July
91
Aug.
149
Sept.
311
Oct.
209
Nov.1/
118
Dec.1/ r/-56
1964 - Jan.1/ r/ 8
Feb.l/
-130

Customer credit
Net debit
Bank loans
balances
to others•than
brokers and
with NYSE
dealers for
member firms
secured
purchasing
and carrying
bv
U.S.
U.S.
Govt. Other
Govt. Other
sec. sec.
sec.
2,823
(12/56)
28 2,482
(12/57)
168 3,401(4)
95 3,004(7)
77 4,259(12)
23 3,562(7)
41 5,586 (11)

48
21
169
133
132
80
140

Broker and Dealer credit
Customers'
net
free
credit
balances

Money
borrowed

U.S.
Govt. Cust.
coll.

1,255
(4/56)
1,060
(11/57)
1,373(5)
1,121(5)
1,377(8)
1,269(9)
1,727 (12)

Other
coll.

1,873
1,244
252
139
101
28
'69

2,044
1,801
2,572
1,856
3,892.

318
237
385
235
597

1,069
(1/55)
807
(4/57)
1,257(3)
. 940(4)
1,508(4)
1,091(9)
1,211(11)

26

5,514

140

1,727

32

3,852,

597

1,210

21

5,384

97

1,736

33

3,738

420

1,199

-5
124
5
-1
-1
195
-3
2;i
8
161
-7
-3
-2
139
18
282
-12 . 179
5
91
-8 r/-71
-4 r/ 9
-1
-140

-4
9
-1
-24
29
-23
6
-1
-3
7
50
-32
-11

3
28
. -30

139
59
135
261
183
26
108
125
121
179
-40
-57
-57

-2
38
29
40
30
94 •
10
29
•
30
27
15
-1
10

• 11
-15
-6
46
-36
-5
4
9
-8

25
11
-25,
155
71
.-99
I'll
42
-3
60
32
•182
5

-8
-16
26
-35
-17
-23
-33
87
-4
35
-1
52
-63 .

Note: With the exception of bank loan data, figures are reported to the New York Stock Exchange by member firms carrying margin accounts. Bank loans to others than brokers and
dealers for purchasing and carrying securities are for weekly reporting member banks. Net
debit balances and customer free credit balances are as of the end of the month; bank loans
and money borrowed are reported for the last Wednesday of the month. Numbers in parenthesis
denote month of year.
1/ November 1963 data on customers' net debit balances do not include accounts carried by
a large former member firm in liquidation; most of these accounts have been transferred to
other member firms and are reported in their debit figures from the month received (some in
December, more in January 1964). Debit balance totals for the period from October 1963
through January 1964, therefore, are not completely comparable.
r/ Revised.




H. 14

-4-

foreign government securities (included in other assets), amounting to
$25 million, were only one-seventh as large as in January 1963 when
final takedowns were made of a large placement of Canadian Government
bonds.
The growth in savings capital at savings and loan associations
amounted to $0.4 billion in January, 54 per cent less than last year's
record gain for the month and 9 per cent less than in the similar 1962
period, as withdrawals went up much more sharply than did new savings
capital. Mortgage acquisitions, which had registered year-over-year
gains each month starting with November 1960, were down 5 per cent
from a year earlier to $0.6 billion; they were, however, larger than
in any other January. To finance the continued large volume of
mortgages acquisitions with sharply reduced net inflow of savings
capital, these associations reduced their holdings of U. S. Governments
by $0.4 billion, one-fourth more than last year, and repaid only $0.4
billion in borrowing, more than two-fifths less than a year earlier.
The deposit gain at mutual savings banks set a record for
the month of January in totaling $0.4 billion, 74 per cent more than
a year earlier; the year-over year rise in new deposits was much
sharper than in withdrawals, due largely to an increase in interest
rates paid on over one-year deposits by many banks in New York starting
the first of the year. Despite the large deposit gain, holdings of
mortgages rose only $0.3 billion, one-fifth under the record January
gain last year. Holdings of cash and Governments, however, rose
slightly in contrast to a $0.1 billion decline last year and business
and miscellaneous security holdings increased slightly more than a
year earlier.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

Captial Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




t

EXHIBIT A, Porl

LONG-TERM B O N D YIELDS, H I G H - G R A D E

SUM A*0 LOCAL 60V[IHHEHT A.e

j

• 1 19*0

1*61

1**2

J113

Exhibit A - Part II

Date

Corporate
Aaa y

U . S. Govt,
long-term 2/

State and
local
government
Aaa 3/

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

(per cent)
1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
196U - High
Low
Feb.
Feb.
Mar.
Mar.
yMar.

21
28
6
13
20 &/

4.18(3/20)
4.14(2/21)

3.65 (9/24/59)
3.37 (7/6)
3.12 (2/23)
3.26 (3/4)
2.88 (ll/e)
3.18 (13/21)
2.93 (3/28)
3.16(3/19)
3.07(2/20) z-

-.59
.57
•3U
.U7
.30
.35
.21
.23
.20

.92
.76
.46
1.04
.80
1.05
.88
1.08
1.02

4.14
4.15
4.16
4.17
4.18

3.07
3.09
3.12
3.13
3.16

.22
.20
.20
.20
.20

1.07
1.06
1.04
1.04
1.02

U. 61(1/29/60)
k.li6(9/!5)
U.21(3/17)
4.1*3(2/16)
ii.23(12/2#
4.37(12/27)
k.19(3/29)
4.38(3/20)
4.35(2/28)
.

4.42 (1/8/60)
L.07 (12/29)
3o70 (5/12)
4.12(2/23)
3.85(12/28)
4.16(12/27)

4.36
4.35
4.36
4.37
4.38/

f

3.87 (Via)

Preliminary.
Weekly average of daily figures. Average term of bonds included is 22-24 years•
Weekly average of daily figures. The series includes bonds due or callable in 10 years or mom*
3/ Thursday figures. Only general obligation bonds are Included; average term is 20 years.
Mote.—Highs and lows are for individual series and may be on different dates for different
series. For spreads, high refers to widest, and low to narrowest#




LONG-TERM

BOND

YIELDS, L O W J R - G R A P E

Exhibit B - Part II

Date

Corporate
Baa 1/

State and
local govt.
Baa 3/

Spread between
Aaa and Baa;
Corporate

|

^

(per cent)
"1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
- Low
196U - High
Low

5.3$ (2/1%/M)
5.13(10/27)
5.00(4/21)
5.11(3/5)
U. 92 (12/21)
a.93(]/4)
U.83(ll/35)
4.84(1/17)
4.82(2/7)

U.U6(1/7/60)
4.16(3/23)
3.93(U/9)
it. ou (1/11)
3.52(5/17)
3.63(6/27)
3.52(5/23)
3.57(3/19)
3.53(2/7)

.63
.71
.1*8
.48
.45

1.08
.93
.57
.82
.56
.63
.Wi
.49
.41

Feb.
Feb.
Mar.
Mar.
Mar.

4.83
4.83
4.83
4.83
4.83

3.55
3.55
3.57
3.55
3.57

.47
.48
.47
.46
.45

.48
.46
.45
.42
.41

21
28
6
13
20

&/

/

Notei For footnotes aee Exhibit JL«




.8U
.81
,66

.7k

.
EXHIBIT C, P o r t I
SHORT-

K

AND

INTERMEDIATE-TERM

INTEREST RATES, G O V E R N M E N T

"T-MONIHYICIS

M
w

"

u

1-1

,
1

\/F.*.
DISCOUNT BATE
v
y.TT

.
i

1
y

'3-MONTH IIUS
Market Yi.ldt

W " '

I

*"* lssu "

1r

1 1 1 1 1 1 111111111111
1 1 1 1
_LL 1 1 | | | I II
L. 11 11 1! II 1! 1 1 1 1 1 1 1 1 M i
I960

1961

Mil

1963

1164

Exhibit C - Part II
Discount
rate

y

1959-60 - High
1961 - High
Low
1962 - High
Low
1963 - High
Low
196U - High
Low

U.00

3.00
3.00
3.00
3.00
3.50

3.00

3.50
3.50
3.50
3.50
3.50

3-month
bills 2/

Yields
6-month
, bills 2/
(per cent)

3-5 year
issues 2/

Spread between yields on 3month bills and yields on
6-mo. billsj3-5 yr. issues

.79
.a
.12
.2U

07 (1/8/60) 5,00(12/24/59)
3.86(8/11)
2.90(1/29)
2.35(4/26)
3.15(5/12)
3.88(2/2)
3.13(7/20)
2.65(6/8) 2.7U(6/8)
3.ltl (12/28)
U.07 (12/27)
3.55(12/13) 3.68(12/6)
2.93(3/8)
3.UU(VlB)
2.88(3/15)
3.74(3/6)
4.16(3/20)
3.61(1/31) 3,99(2/7)

.02
.17
.oL
.18
.11

3.53
3.56
3.56
3.54
3.54/

.15
. 16
.18
.18
.18

2.66(

t i W
2*97(7/13)

3.68
3.72
3.74
3.72
3.72

4.02
4.05
4.10
4-12
4.16

1.81
1.51
.92
1.19
. .52
.70
• U2
.62
.48
.49
.49
.54
.58
.62

1/ Weekly rate shown is that in effect at end of period at the Federal Reserve Bank of New York.
Market yield) weekly averages computed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds*
Note.—flighs and lows are for individual series and nay be on different dates for different series*
For spreads, high refers to widest, and low to narrowest.




7

S H O R T - A N D I N T E R M E D I A T E - TERM I N T E R E S T R A T E S ,
B A N K S A N D OTHER PRIVATE B O R R O W E R S

• I960

1941

'mi

19*3

1964

Exhibit D - Part II

Stock exchange
call loan l/

Prime
rate 1/

Finance company
paper 2/

Federal
funds 3/

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

(per cent)

5.50

U.50
U.5o
U.50
U.5o
4.50
4.50

5.00
U.50
U.50
U.50
U.50
U.50
U.5o
4.50
4.50

5.13(1/22/60)
3.00(12/30)
2.50(8/5)
3.25(7/21)
2.88(6/1)
3.88(12/27)
3.13(5/31)

U.00
2.90
•U3
3.00
1.30
3.50
2.U5

3.88(3/20)
3.75(2/21)

3.50(3/13)
3.20(3/6)

.34
.22

4.50
4.50
4.50
4.50
4.50

4.50
4.50
4.50
4.50
4.50

3.75
3.78
3.88
3.88
3.88

3.40
3.50
3.20
3.50
3.40

.22
.22
.32
.34
.34

1959-60 High
1961 - High

U.5o

1962 - High
Low
1963 - High
Low
196U - High
Low
Feb.
Feb.
Mar.
Mar.
Mar.

Low

21
28
6
13
20

£/

U.50

(5/13/60)
(11/17)
(V27)
(12/28)
(3/26)
(12/27)
(7/26)

1.02

.56

.11
.U5
.19
.39
.12

3/ Weekly rate shown is that In effect at end of periqd. Stook Exchange call loan rate Is going rate
on call lpans secured by customers* stook exchange collateral at New York City banks. Prime rat#
is that charged by large banks on short-term loans to business borrowers of the highest credit
standing.
2/ Average of daily rates published by finance companies for directly placed paper for varying maturities
in the 90-179 day range#
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 Saw York#
Notei—Highs and lows are for individual series and may be on different dates for different -series.
For spreads, high refers to widest, and low to narrowest#




STOCK MARKET

/

—=£--7
STOCK MASUT CREDIT
CHAHGt IN StIIIS

I I I I I I I I I I I I I I III II I II

kHJ

Exhibit E - Part II

Stock price
index 1/

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

Stock ma]cket customei credit
Customers'
Bank
debit bal- . loans to
ances k/
"others"

Total

(In millions of dollars)
1961-62 - High
Low
1963 - High
1961* - High
Low

72.0^12/8/61)
52.68(6/22/62)
7ll.Wl(l2/2%)
79.14(3/13)
75.50(1/3)

2.80
3.96
3.01
3.01
3.09

January
February
Mar. 6
Mar. 13
Mar. 20 E /

76.45
77.37
78.31
79.14
78.92

3.06
3.05
3.04
3.01
3.03

.

10.1
2.h
6.5
6.1
4.3
5.3
4.6
5.2
5.6
5.4

5, 602(12/61) U, 259 (12/61) 1, i|l8 (5/9/62)
U,U2U(1/61) 3,253(2/61) 1,161(3/8/61)
7,298( 13/63 )5,586( n/63) 1,738( 12/25)
7,250(1)
7,120(2)

5,524(1)
5,384(2)

1,773(3/11)
1,720(1/22)

7,250
7,120

5,524
5,384

1,726
1,736
1,768
1,773

n.a.—Not available, p/Preliminary.
V Standard and Poor's composite Index of 500 common stocks, weekly closing prices, 1941^43*10*
Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are
Friday's data only.
2/ 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 index .reached its high
3/ Averages of daily 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 accounts;
excludes balances secured by U. S. Government obligations.
5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying
U. S. Government securities. Weekly reporting banks account for about 70 per cent of loans to
others. For further detail see Bulletin.




PRIVATE HOUSING STARTS AND PERMITS

PER C E N T

1959

OF

UNADJUSTED

I960

TOTAL

1911

STARTS

1962

1943

, 1944

Exhibit F - Part II

Date

1963 - Feb.
Apr.
May
July
Aug.
Sept.
^Oct.
Nov.
Dec.
1964 - Jan.
Feb.

Building
Unadjusted
permits
Type of financing Type of housing (seasonally
adjusted
Seasonally adjustMulti1-2
Unadjusted
annual
ed annual rate
VA
FHA
family family
rate) 2/
1,380
1,575
1,618
1,618
1,571
1,588
1,455
1,732
1,847
1,564
r/ 1,564
r/ 1,729
1,643

, (Thousands of units)
70
13
4
87
103
5
124
17
129
21
7
158
137
22
7
166
126
20
7
153
121
8
21
150
119
19
7
144
120
6
19
145
136
6
21
163
97
5
17
119
74
5
16
95
84
r/ 100
11
4
83
12
4
99

30.6
56.0
84.9 r/39.4
47.0
111.1
53.8
112.6
48.7
104.7
47.1
103.0
43.8
100.5
47.8
97.5
55.3
107.8
43.5
75.8

1,228
1,274
1,264
1,328
1,363
1,308
1,262
1,372
1,412
1,369
1,426
1,314
1,404

V Total starts are Census estimates including farm for both permit-issuing and non-issuing areas, A
dwelling unit is started when excavation begins; all units in an apartment structure are considered
started at that tiro. 1HA and VI starts are units started under oonmitmenfca by these agencies to insure
or guarantee the mortgages. As reported by TEA and VA, a unit is started when a field office receives
the first oonplianee inspection report, which is made before, footings are poured in some oases but
normally after the foundations have been completed* Capehart military housing units are excluded*
Other starts are derived as a residual, although total and FHA and VA starts are not strictly comparable
in oonoept or timing) other starts include both unite financed by conventional mortgages and units
without mortgages.
2/ Building permits before January 1963 are Census estimates for about 10,000 areas
identified as having a leoal building permit system in 1959, Estimates thereof
are for approximately 12,000, or all known, issuing places. Unlike starts, seasonally
adjusted building penults reflect direof adjustment for differences in the number
of walking days per month, as well as ether differences in timing and o eve rage*




1/
EXHIBIT O, P a n I
YIELDS O N

NEW

AND

SEASONED

CORPORATE BONDS

Exhibit G - Part II
Yields on New Corporate Bond Issues Adjusted to an Aaa basis
Number Ain't of issues
included (mil.
of
Weekly averages:
1963 - Oct. -4
11
18
25
Nov. 1
- 8
15
22
29
13
20
27
1964 - Jan. 3

V

2

33.5

Number Ao't of issues Average
yield
included (mil.
of
(per cent).
of dollars)

Average
yield

4.32

--

1
2
1
1
4

40.0
75.0
30.0
22.0
, 115.0

4.37
4.35
4.41
4.21*
4.42

2
2
1

60.0
95.0
150.0

4.41
4.45
4.54*

Jan. 17
24
31
Feb. 7
14
21
28

5.0
15.0

4.44
4.41

15.0

4.33
4.30
4.34

18:8

13
20

—

130,0
4.50
bta; Averages of offering yields on al^L now issues of
A by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline,
and foreign companies, and bonds guaranteed by the Federal Government) weighted by else of offering.
Before averaging, new offerings are adjusted to a composite Aaa basis by deducting from the actual
reoffaring yield tte excess of the weekly average yield for seasoned bonds of the appropriate industzyqualitv group over the oonmoeite average for seasoned Aaa-rated tends (Moody s)# Averages considered
unrepresentative because of apodal characteristics of t o offerings included are denoted by an asterisk^
m




Exhibit H

v

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

Corporate 1/
1964
1963
January
February
March

2/
e/
e/

'925
700
750

592
859
807

930
904
1,013

1,113
760
1,132

676
637
795

582
749
579

1,013
819
1,415

835
703
1,103

' 2,351
2,847
2,109
3,246

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

July
August.
September
October
. November
December
quarter
quarter
quarter
quarter

e/2,375

1st half
Three quarters

1962

613
594
1,144

April
Mny
June

1st
2nd
3rd
4th

New Clapital
1

5,198 ,
7,307
10,553

1964
e/
e/
e/

950
750
850

State and Local 2/
1962
I
1963
1
E/
£/

732
.746
976

876
1,133
628

R/
£/

869
866
930

873
912
786

E/
e/
e/

680
708
449

612
544
427

P/1,051
729
2J 416

650
578
550

E/2:,454
2/2 ,665
en.,837
e/ 2 ,197

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

B/5,118
E/6,955
2/9,151

5,208
6,790
8,568

£/
JD/

£/

e/2,550

5,264
7,173
9,814

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

quarter
quarter
quarter
quarter

2/2,035

Year

e/
£/
1/
2/
3J

2,284
2,529
1,768
2,854

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

9,434

9,303

.

Estimated by Federal Reserve.
Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance companies.




H.14
Exhibit I
New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

Quarter
Month

Gross proceeds for net
capital and refunding 1/
Common
Foreign
Total Publicly Privately
pfd.
offered offered
included

Net proceeds for
tiew capital 1/ 2
Mfg.

• Public CommuniOther
utility cations
issuers

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
10.4
If

832
1,052
893
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
III
IV

2,700
3,634
2,436
3,466

1,108
1,389
898
1,319

1,306
1,820
1,251
1,780

287
424
287
367

128
434
109
47

947
591
806
968

326
794
285
530

236
221
150
118

842
1,241
868
1,629

1962 - Apr.
May

1,217
801
1,232
630
922
632
976
784
1,197

654
247
488
200
477
176
539
286
264

227
420
575
366
363
295
314
446
808

336
134
169
67
82
161
123
52
125

10
147
100
13
43
46
34
99

384
270
342
217
218
166
153
271
345

37?
196
410
118
110
148
141
175
252

695
642
1,363
1,049
1,340
1,246
810
756
871
1,116
891
1,459

243
350
289
259 774
499
452
380
694
550
' 675
459
431
279
318
336
501
283
481
511
549
183
751
626

102
94
91
217
95
113
100
100
87
125
159
83

25
43
60
56
182
196
46
21
42
10
10
27

.135
220
592
148
216
227
297
272
237
240
214
515

114
115
97
341
222
230
107
100
78
201
131
198

. 125
68
43
71
92
58
86
25
- 39
41
13
64

338
280

120
100

! .5-

153
150

iou
160

152
80

July
SepL
Oct.
Nov.
Dec.
1963 - Jan.
Feb.
Mat.
Apr.
May
July
Aug.
Sept.
Oct.
Dec.
1964 - Jan.
Feb. e/
Mar.

991
720

533
340

.

88
64 ;
79
88
120
. 67
,260
4 '
57

264
229
301
159
301 ;
199
282
253
451
238
191
412
369
373
499
187
240
441
531
461
637
512
310 .

£/ Preliminary, e/ Estimated by Federal Reserve. JL/ Gross Proceeds exceed net.proceeds by the
cost of flotation. 2/ For 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.




v\

H. 14
Exhibit J

-

Other Security Offerings
(In millions of dollars)
Cross 1
Fere:
1964
|
January
February
March.
April
May

£/ 4
e/ 50

July
August
September
October
November
December
Jan, - Feb.

e/ 5 4

Year

January
February
April
May
June
July
August
September
October
November
December
Jan. - Feb.

.

1963
232
133
76
57
114
11
63
83

it 2/
1

1964

1962

£/ -T
e/ --

2

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

365

152

2/

771

737

347

484

692

375

1962

148

246
156

186

461

459
-—

--

'

150
175

174
200

--

Net short-term 4/ State and local gover:nment 5/
75
£/ -61
18
12
272
466
£/ 22
-367
-186
589
127
-30
-84
-10
-118
62
78
208
339
-173
-406
259 —
71
146
234
-339
-161
n.a.

Federal agency 3/
1
1
1963

R/ 34

--

--

148

402

1,167

1,138

Federal agency 3/
-106
-189
-482
292
195
319
414
327
258
123
-102
551

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

-295

91

1,600

1,004

jV Preliminary, e/ Estimated by Federal Reserve, n.a.--Not available. 1/ These data differ
frgm those in Exhibit H in that refunding issues, as well as new capital issues are included.
Tiong-term securities are defined as those maturing in more than one year. 2! Includes securities offered in the United States by foreign governments and their political subdivisions
and international organizations. Source: Securities and Exchange Commission. 3/ Issues not
guaranteed by the U. S. Government. Source: long-term, Securities and Exchange Commission;
short-term, Treasury Department and Federal Reserve. 4/ These data differ from those in
Exhibit H 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 some instances PHA notes included may
{

have a somewhat longer maturity than one year. Source: Bond Buyer and Federal Reserve.
{



if
H. 14

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

I

Cornorate
Bonds
1
Total j (Other than
Convertible
convertibles) |

i
J 1963 - February
|
March
1
April
:
May
|
June
July
f
|
August
September
October
!
November
?
December
| 1964 - January
;
February

186
394
409
149
348
199
236
237
446
180
547
307
263

*

Month

1

125
372
263
149
348
180
218
215
380
117
515
225
200

26
22
146

35

60
35

Stocks

;

19
18
22
66
63
32
22
28

Stcte
and
local
government
367
570
431
389
: 372
279
329
135
734
373
111
577
358

Other 2/

63
134
43
460
60
20
174
200
——
— -

Large Individual Issues Offered March 1 through 20

!

Issuer

Type

Amount
(millions
;
of
dollars)

Coupon
1 OfferRating
Maturity rate or net ing
interest
yieid
cost
|

Corporate
Southwestern P. S. Co.
Anheuser-Busch Inc.
Beneficial Finance Co.
Potomac Edison Co.

1st mtg. bds.
Deb.
Deb.
1st mtg. & coll.
tr. bds.

15.4^/
40.0
50.0

1994
1989
1992

4-1/2
4-1/2
4-1/2

4.50
4.47
4.58

A
A

16.0

1994

4-5/8

4.50

A

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

15.0
10.7
50.0
50.0

1965-84 3.43
1965-89 2.92
1972-90 3.24
1968-87 . 3 .00

2.,20-3.50
2.,10-3.20
2.,75-3.30
2.,45-3.15

A

State and Local Government
Louisiana State Bond & Bldg.
Comm.
Minneapolis, Minn.
State of Kentucky
State of Connecticut




A

H. 14

\v

K-2
Large Individual Issues Offered March 1 through 20 (Cont'd)

Issuer

Type

Amount
(millions Maturity
of
dollars

Coupon
rate or net
interest
cost

Offering
yield

Rating

State and Local Government
Jacksonville Expressway
Auth., Fla.
City of Tacoma, Washington

Rev. -Q. Ut.
Rev.-Ut.

5/
7.3—'

1992 "
2003
2010-14

3.86

4.00
4.10
2.90-3.90T Baa

Other

* Rights offering, n.a.--Not available.
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.
4/ An additional $9.6 million in bonds sold to refund outstanding securities.
5/ An additional $66.6 million in bonds sold to refund outstanding securities.
6/ Bonds maturing 2012-14 not publicly reoffered.




17

H. 14

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues

Subsequent to
date shown

During month following
date shown
State and
local govt.

Corporate

j
I 1963 - Feb. 28
|
Mar. 29
\
Apr. 30
%
May 31
|
June 28
!
July 31
'
Aug. 31
Sept. 30
!
Oct. 31
Nov. 29
|
Dec. 31
1964 - Jan. 31
Feb. 28 ,

142
376
149
223
170
221
158
240
145
392
305
155
224

458
381
447
255
142
329
210
561
255
137
469
316
454

Other 2/
--

45
40
460
75
20

---

Corporate

State and
local govt.

572
421
234
288
215
267
183
240
145
1,992
1,905
1,771
1.649

755
763
599
582
287
512
468
757
401
349
731
667
646

Other 2/
--

45
40
460
75
20

---

Forthcoming Large Offerings, as of March 20

?
|
i
1
f
'•
;

Issuer
Corporate
Texas Utilities Co.
Panhandle Eastern P. L. Co.
United Utilities Inc.
Florida Pwr & Lt. Co.
*Crocker-Citizen Natl. Bank
Pennsylvania Railroad Co.
Northwest Airlines Inc.
^Associates Investment Co.
American Tel. & Tel. Corp.
Tennessee Gas Trans. Co.
Pacific Tel. & Tel. Corp.
Xerox Corp.
Communications Satellite Co.

Type

Com. stk.
Deb.
Com. stk.
1st mtg. bds.
Cap. notes
Bonds
Com. stk.
Deb.
Com. stk.
Deb. & pfd. stk.
Deb.
Conv. sub, deb.
Com. stk.




Amount
(millions
of
dollars)
24.0
40.0
20.0
35.0
100.0
50.0
31.9
50.0
1,225.0
65.0
100.0
51.4
200.0

Approximate date
of offering

March
March
March
March
March
March
April
April
April
April
April
April
April

26
24
24 (rts,. ex.)
26
29
1 (rts. ex.)
2
6 (rts. ex.)
7
22
28 (rts. ex.)

H. 14
L-2
Forthcoming Large Offerings, as of March 20 (Cont'd)

^

Issuer

Type

Amount
(millions
of
dollars)

Approximate date
of offering

State and Local Government
Rochester, New York
El Paso Ind. Sch. Dist.,
Tex.
Los Angeles Dept. of Wtr.
& Pwr., Cal.
Illinois Bldg., Auth.
Florida Dev. Comm.
Public Housing Auth.
Metropolitan Seattle, Wash.
Detroit. Mich.
^Baltimore Co., Md.
Philadelphia, Pa.
New York State Housing Finance
A-«L. Nassau Co., N. Y.
Sabine River Auth., New
Orleans, La.
Sabine River Auth. of Texas,
Orange, Tex.
Univ. of California
"Cleveland, Ohio
Washington Sub, San. Dist., Md.
Delaware River.& Bay Auth.
Pittsburgh, Pa.
Dnde County, Florida
Forth Worth, Texas
Houston, Texas
Other
Inter-American Dev. Bank
Govt, of Mexico

G.O.
G.O.

12 .6

March 24

10 .0

March 24
March
March
April
April
April
April
April
April

25
25
1
1
2
7
7
8

Rev. -Ut.
Rev. - Re.nt.
Rev. -Q.Ut.
Bonds
Rev. -Ut.
G.O.
—
G.O.
G.O.

22,.0
25,.0
17,,0
141,.4
15..0
18..3
13,.0
20,.8

R'.. -R'..Vu.
G.O.

93.,0
20..0

April 8
April 14

G.O.

15.0

April 15

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

15.,0
19. 6
11. 0
16.0
105.0
35. 0
46. 0
14. 1
11.0

S. F . bonds

50.0
20. 0

April 15
April 15
April 24
April 30
April
Indefinite
Indefinite
Indefinite
Indefinite
March 23
April 2

^--Included in Table for first time.
J L / 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: None.




,

H. 14

Exhibit X
Foreign Government and Corporate Security Offerings
and Placements in the United States

Part I:

Sale
Date

Amount
(millions of

Public Offerings

Issuer and Description of Issue

- dollars)

A.

Sold January 1 through March 20

Tubos de Acero de Mexico, S.A. - 7% convertible debenture,
maturing 1970, offered to yield 7.00%

2/6

B,

Pr -iioactive Offerings

3/23

50.0

Inter-American Development Bank - bonds

4/2

20.0

Govt* of Mexico - sinking fund debenture*




A?
H. 14

Part II:

Da te
reported

Private Placement--Reported January I through Hareh 20

Amount
(millions of
dollars)

Issuer and Description of Issue

1/7

14.0

Laurentide Financial Corp., Ltd.—5-1/4% collateral twrst
notes, maturing 1989--no information available on takedown

2/3

28.0

Manitoba Hydro-Electric Board—4-1/4X debentures, maturing
1986—no information available on takedown

2/3

5.0

Scottish United Investors, Ltd.— 5% notes, maturing I 9 W - W —
no information available on takedown

2/10

8.0

British American Construction Co. —promissory notes, maturing
1979--no information available on takedown.

2/10

4.0

British Assets Trust Ltd. (Scotland)—51 notes, maturing
1981—takedown in February

Note: For retrggpggtive 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 placeswnts shewn
in this exhibit are included when reported, frequently with little or no infonsatlM
concerning timing of takedowns. Full or partial takedowns may take place both
prior and subsequent-td"the date a placement is reported.
^--Included in table for first time.




il

Exhibit N
Sources and Uses of Funds by
Life Insurance Companies

Cash
Value of
f period:
at end
Dec.
1960
1961 - Dec.
1962 - Dec.
1963 - Dec. •
1964 ch

i9%isi

I
$
|

Oct.
Nov.
Dec.

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

i

|
3
!
\
|
|
|

j

I
f
|

1963 - Jan. r/
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.

Total Memo: Total
sources Excluding
Valuation
Change 3/

lisps of Funds 1/
State and
Business
U. S.
2/
Mortlocal
Securities
Govt.
Govt,
se- gages
Bonds
&
Short-term
(
Securicurities
Stocks
paper
ities
(In millions of dollars)

1 ,329
1 ,392
1 ,456
1 ,442
1 ,283

6 ,428
6 ,135
6 ,171
5 ,755
5 ,782

48,,631
51,,362
53.,468
55.,997
56 ,258

295
193
348
381
651

3,,606
3.,902
4.,037
3.,876
3.,859

41,815
44,250
46,957
50,543
50,828

17,472
19,582
20,854
22,909
23,205

119,576
126,816
133,291
140,903
141,866

30
40
13

14
-46
-261

260
211
505

23
16
-178

13
44
23

204
237
382

121
149
325

665
651
809

-99
1
-75
12
4
-22
58
-24
42
12
35
120

223
25
-76
91
-24
-95
121
-21
-48
28
36
-224

65
156
135
44
265
248
132
206
182
136
135
402

225
43
52
179
-53
-118
72
31
20
69
-40
-325

29
3
117
-15
-12
12
11
25
12
-21
-17
-9

149
114
143
119
197
198
139
237
178
296
332
605

145
100
60
27
-17
-14
148
149
87
r/159
290
138

737
442
356
457
360
209
681
603
473
679
771
707

-134
-17
-73
-14
29
-1
54
-10
87
6
-21
119

133
-69
-211
-19
-162
-94
86
-33
14
5
-42
-32

58
159
233
160
367
219
156
106
186
225
274
391

190
46
19
81
-139
-50
105
88
-56
64
109
-411

31
-8
-17
-27
-36
-19
-27
-19
-43
1
-4
-13

215
145
270
292
255
256
244
299
269
303
277
730

360
233
256
160
312
151
354
260
-54
242
4
-88

842
489
477
633
626
462
972
691
403
846
597
696

2/1964 - Jan.
Feb.
Mar.

285

963

1/

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

2/

Includes securities of domestic corporations only.
Revised.
p/ Preliminary.

r/

17



Source.--Institute of Life Insurance,

. ta «? ^

il,.c

H. 14
Exhibit 0
Sources and Uses of Funds by
Savings and Loan Associations

Value of assets
at end of period:
1960 - Dec.
1961 - Dec.
1962 - Dec.
1963 - Dec.
1964 - Jan.
Changes:
1961 - Oct.
Nov.
Dec.
1962 - Jan.
Feb.
Mar.
Apr.
MayJuly
~ Aug.
Sept.
Oct.
Nov.
. Dec.
1963 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.

Source o : funds

Uses Df funds 1/
Net
U. S.
change
Total
Other
MortGovt.
savings
secur- g a g e s ^ assets sources
capital
ities
(In millions of dollars)

Borrowing 3/

Other

4,595
5,211
5,563
6,440
6,584

60,070
68,834
78,770
90,849
91,484

4,131
4,775
5,346
6,178
5,967

71,476
82,135
93,605
107,431
107,590

62,142
70,885
80,236
91,205
91,654

2,197
2,856
3,629
5,011
4,596

7,137
8,394
9,740
11,215
11,340

43
79
44

811
757
745

107
203
-53

1,043
1,123
1,173

724
779
1,495

75
79
415

244
265
-737

182
-354
96
95
128
35
-43
-77
10
-8
258—- -64
46
-384
-37
-8
42
82
93
35
100
46
696
-6

518
592
784
830
962
1,006
880
1,003
829
944
790
798

-105
39
95
93
401
-62
-178
100
83
40
164
-99

241
822
1,042
803
1,365
1,138
364
1,058
1,036
1,112
1,100
1,389

494
565
918
374
761
1,395
25
635
857
815
857
1,655

-318
-98
-81
125
98
364
89
91
96
36
-23
457

128
355
205
304
506
-621
250
332
83
261
266
-723

671
696
905
1,061
1,178
1,244
1,103
1,208
1,097
1,118
806
992

108
46
117
92
394
-29
-150
151
38
82
175
24

418
1,020
1,289
1,049
1,511
1,542
1,574
1,273
1,277
1,341
1,142
1,390

985
844
1,195
478
969
1,642
-36
643
916
795
804
1,734

-737
-195
-96
124
115
594
254
224
296
197
59
547

170
371
wo
447
427
-694
356
406
65
349
279
-891

2,680
3,315
3,926
3,964c/
3,555

82
84
437

-333
. 106
90
-139
-37
237
-449
-48
30
67
32
482

188
172
177
35
-24
90
70
-38
112
74
129
-108

125
-415
159
635
-211
449
409
144
1964 - Jan.
Feb.
Mar.
1/ 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, are not available.

2/ Advances from Home Loan Banks and other borrowing. Source—FSLIC.



j.

:
%
V

'!
•1
A
j
^
>j
{•
'1
7
,

V*?

Sources and Uses of Funds
by Mutual Savings Banks

u. s.
Govt.
securities
/alue of assets
jt end of period:
| 1960 - Dec.
I 1961 - Dec.
« 1962 - Dec.
I 1963 - Dec.
§ 1964 - Jan.
Changes:
| 1961 - Oct.
jj
Nov.
|
Dec.
1962
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
1/1963 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
r/Dec.
| 1964 - Jan.
|
Feb.
•
7

Uses of funds 1/
State
Busilocal j
ness
ities 2/

Total
Sources of funds
sources
Net
change
in
deposits

Mortgages

ities

872
828
957
912
848

6,239
6,136
6,089
5,839
5,927

5,080
5,053
5,188
5,092
5,107

672
677
528
442
442

26,709
28,915
32,070
36,008
36,353

1,001
1,224
1,284
1,402
1,495

40,573
42,833
46,118
49,693
50,169

36,353
38,487
41,582
44,833
45,282

-27
7
-20

-120
-13
-21

-56
-20
5

-5
-5
-1

178
167
212

-44
46
117

-74
181
292

-15
48
471

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

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

83
165
472
-51
184
424
172
215
429
186
147
545

-137
51
21
-61
22
37
-63

4
-11
-9
-72
-5
19
14
25
43
-22
-75
1

-15
-11
-26
-5
-8
-3
-3
-2
-3
-2
-8

436
320
313
327
357
254
314
300
274
369
321
353

13

101

39
31
260
-241
-25
13
-19
-34
-61
-177
-14
-22

49"
-58
52
-11
11
71
37
-42
38
-34

330
375
610
-111
392
306
254
344
329
97
259
390

229
215
526
11
232
422
137
174
430
198
118
578

-64

88

15

-

345

93

476

399

-18

38
-28
-8

-10

53
28
-32
36
28

-6

Mar.
;
r/ Revised—
Use^ofHfunds represent net changes^n alsets'and therefore reflect net, rather than


corporate
bonds and stock.
Source--NAMSB and FDIC