Full text of H.16 Capital Market Developments : March 5, 1962
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DECONTROLLED AgZEB_SIX MONTHS Not f o r P u b l i c a t i o n H.llt J / March 5 , 1962. 10FMENTS ( I n c l u d i n g Monthly Review of C a p i t a l Market Developments and Review of Sources and Uses of Funds of F i n a n c i a l I n t e r m e d i a r i e s i n 1961) The volume of p u b l i c s e c u r i t y f i n a n c i n g t o o b t a i n new c a p i t a l was i n v e r y s u b s t a n t i a l volume l a s t week b u t i s e x p e c t e d t o be q u i t e l i g h t t h i s week. During t h e week ending March 2, one l a r g e c o r p o r a t e s e c u r i t y i s s u e f o r $2$ m i l l i o n was s o l d and e i g h t S t a t e and l o c a l government bond i s s u e s a g g r e g a t i n g $220 m i l l i o n were p u b l i c l y o f f e r e d . The $y~> m i l l i o n Puerto Rico Water Resources A u t h o r i t y i s s u e (of which $13 m i l l i o n was f o r new c a p i t a l ) , which had been scheduled f o r n e g o t i a t e d s a l e l a s t week, was c a n c e l e d when an u n d e r w r i t e r e x p r e s s e d i n t e r e s t i n s u b m i t t i n g a competing b i d , and t h e A u t h o r i t y announced r e s c h e d u l i n g of t h e new c a p i t a l p o r t i o n of t h e i s s u e f o r c o m p e t i t i v e b i d d i n g on March l i t . This week, ending March 9, one c o r p o r a t e s e c u r i t y i s s u e f o r $30 m i l l i o n i s scheduled and one S t a t e and l o c a l i s s u e w i t h p a r value of $16 m i l l i o n i s on t h e c a l e n d a r . Bond y i e l d s . Y i e l d s on l o n g - t e r m U. S. Government bonds and on B a a - r a t e d c o r p o r a t e bonds d e c l i n e d U and 2 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. Yields on A a a - r a t e d c o r p o r a t e bonds and on S t a t e and l o c a l government bonds w e r e unchanged. The average y i e l d on new c o r p o r a t e bonds, a d j u s t e d t o an Aaa b a s i s , was U. 37 p e r c e n t l a s t week, o r 13 b a s i s p o i n t s below the average f o r the p r e v i o u s 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 y e a r and o n l y 16 b a s i s p o i n t s above t h e 1961 low. S h o r t - and i n t e r m e d i a t e - t e r m i n t e r e s t r a t e s . Y i e l d s on T r e a s u r y b i l l s and 3-5 y e a r U. S . Government o b l i g a t i o n s d e c l i n e d f o r t h e second s t r a i g h t week. Y i e l d s on 3-month and 6-month Treasury b i l l s d e c l i n e d $ and 6 b a s i s p o i n t s , r e s p e c t i v e l y , w h i l e y i e l d s on i n t e r m e d i a t e term i s s u e s dropped 9 b a s i s p o i n t s . The average F e d e r a l f u n d s r a t e i n c r e a s e d 35 b a s i s p o i n t s from t h e r e v i s e d l e v e l of t h e p r e v i o u s week t o 2.60 p e r c e n t . Other s h o r t - and i n t e r m e d i a t e - t e r m i n t e r e s t r a t e s were unchanged. Housing s t a r t s . P r i v a t e housing s t a r t s ( f a r m and nonfarm) edged down f u r t h e r i n J a n u a r y a f t e r a s i z e a b l e d e c l i n e i n t h e p r e v i o u s two months and were a t a s e a s o n a l l y a d j u s t e d a n n u a l r a t e of 1 . 3 m i l l i o n . This was s u b s t a n t i a l l y above a y e a r e a r l i e r when s t a r t s had j u s t begun t o r i s e , b u t o n e - t e n t h below t h e advanced r a t e r e a c h e d i n October. I n J a n u a r y , s t a r t s under c o n v e n t i o n a l mortgages accounted f o r 73 p e r c e n t of t h e t o t a l , compared w i t h an average s h a r e of 75 p e r c e n t i n 1961. The s h a r e r e p r e s e n t e d by FHA-insured s t a r t s i n c r e a s e d i n J a n u a r y t o 22 p e r c e n t , w h i l e t h e VA p r o p o r t i o n , which had a v e r a g e d o n l y 6 p e r c e n t of t h e t o t a l l a s t y e a r , dropped t o j u s t 5 p e r c e n t „ While a l l t y p e s of h o u s i n g have a p p a r e n t l y s h a r e d i n t h e d e c l i n e i n s t a r t s s i n c e O c t o b e r , r e d u c t i o n s have been more pronounced f o r s i n g l e f a m i l y houses t h a n f o r a p a r t m e n t s . Apartment b u i l d i n g advanced s u b s t a n t i a l l y l a s t y e a r a n d i n December i t a c c o u n t e d f o r 2? p e r c e n t of t o t a l s t a r t s compared w i t h an a v e r a g e of 22 p e r c e n t f o r t h e y e a r as a whole. The 1961 a v e r a g e s h a r e was t h e h i g h e s t s i n c e t h e 1 9 2 0 ' s 0 To s t i m u l a t e m u l t i ~ f a m i l y c o n s t r u c t i o n f u r t h e r , FHA. r e c e n t l y a l t e r e d t h e r e q u i r e m e n t of-'a 10 p e r c e n t c a s h bond t o g u a r a n t e e p r o j e c t c o m p l e t i o n from b u i l d e r s on most t y p e s of i n s u r e d - p r o j e c t l o a n s , Under t h e new a r r a n g e m e n t , a b u i l d e r may now s u b s t i t u t e a l e t t e r of c r e d i t f o r t h e r e q u i r e d amount from h i s bank and, w h i l e t h e amount must remain i n h i s bank, he can now c o n t i n u e t o draw i n t e r e s t t h e r e o n . Stock p r i c e s o Common s t o c k p r i c e s , as measured by S t a n d a r d and P o o r ' s composite i n d e x of $00 s t o c k s , changed l i t t l e l a s t week, c l o s i n g on March 2 a t 70,l6<, t h e same a s a week e a r l i e r e T r a d i n g volume c o n t i n u e d t o d e c l i n e , a v e r a g i n g 3=0 m i l l i o n s h a r e s a d a y , 0 , 3 m i l l i o n s h a r e s l e s s t h a n t h e a v e r a g e f o r t h e p r e v i o u s week and t h e l o w e s t weekly a v e r a g e s i n c e t h e week ending September 15, 1961* March s e c u r i t y volume 0 S e c u r i t y f i n a n c i n g by c o r p o r a t i o n s t o o b t a i n new c a p i t a l i s e x p e c t e d t o be i n moderate volume t h i s month w h i l e s e c u r i t y s a l e s by S t a t e and l o c a l governments w i l l p r o b a b l y be quite light, Corporate s e c u r i t y f i n a n c i n g i s expected to t o t a l 0 million, one-sixth l e s s than the revised t o t a l f o r February, but about o n e - t h i r d more t h a n l a s t y e a r c Large p u b l i c s e c u r i t y o f f e r i n g s a r e e x p e c t e d t o t o t a l around $22$ m i l l i o n , March f i n a n c i n g i n t h i s volume would b r i n g t h e t o t a l f o r t h e f i r s t q u a r t e r t o $2,250 m i l l i o n , o n e - f o u r t h more t h a n l a s t y e a r ' s small t o t a l , but l e s s than i n other r e c e n t q u a r t e r s , S t a t e and l o c a l governments a r e e x p e c t e d t o o f f e r a b o u t $$00 m i l l i o n i n bonds i n March, o n l y c n e - h a l f t h e v e r y l a r g e F e b r u a r y t o t a l and a b o u t o n e - f o u r t h l e s s t h a n t h e a v e r a g e f o r March of t h e p a s t two y e a r s c T h i s would b r i n g t o t a l f i n a n c i n g f o r t h e q u a r t e r t o $ 2 , 3 5 0 m i l l i o n , o n e - t w e l f t h more t h a n i n t h e c o r r e s p o n d i n g p e r i o d l a s t y e a r . C a p i t a l m a r k e t s i n F e b r u a r y , Both c o r p o r a t i o n s and S t a t e and l o c a l governments s o l d s e c u r i t i e s ' t b ^ o b t a i n new c a p i t a l i n v e r y l a r g e -volume d u r i n g F e b r u a r y . Long-term f i n a n c i n g b y c o r p o r a t i o n s i n F e b r u a r y t o t a l e d $900 m i l l i o n , o n e - h a l f more t h a n i n J a n u a r y and a b o u t t h r e e - t e n t h s more t h a n i n F e b r u a r y of t h e two p r e v i o u s y e a r s . P u b l i c o f f e r i n g s were p r o b a b l y i n t h e l a r g e s t volume s i n c e l a s t O c t o b e r , b u t had r e l a t i v e l y l i t t l e impact on m a r k e t y i e l d s , Large o f f e r i n g s , most of t h e p u b l i c t o t a l , were composed of f o u r n o n c o n v e r t i b l e bond i s s u e s which a g g r e g a t e d $h2$ m i l l i o n , more t h a n i n any month s i n c e l a s t J u n e , -3The most i m p o r t a n t of t h e m o n t h ' s o f f e r i n g s was a S300 m i l l i o n AT&T d e b e n t u r e i s s u e , t h e l a r g e s t s t r a i g h t bond i s s u e e v e r s o l d a t comp e t i t i v e b i d d i n g ? t h i s A a a - r a t e d i s s u e was r e o f f e r e d b y t h e u n d e r w r i t e r s t o y i e l d ii.52 p e r c e n t , s l i g h t l y l e s s t h a n some i n v e s t o r s had e x p e c t e d , and g o t o f f t o a slow s t a r t . Over h a l f t h e AT&T i s s u e was u n d i s t r i b u t e d a week a f t e r t h e o r i g i n a l o f f e r i n g when $50 m i l l i o n of Duke Power b o n d s , a l s o r a t e d Aaa, were r e o f f e r e d t o y i e l d s l i g h t l y l e s s (It.$0 p e r c e n t ) and a l s o were slow a t r e t a i l . By t h e end of t h e month, however, t h e s e i s s u e s were s u c c e s s f u l l y d i s t r i b u t e d and q u o t e d a t s m a l l premiums a s i n v e s t o r i n t e r e s t i n c r e a s e d , i n p a r t b e c a u s e of t h e f a i l u r e of t h e c a l e n d a r of f o r t h c o m i n g o f f e r i n g s t o i n c r e a s e s u b s t a n t i a l l y . The s e v e r a l o t h e r s m a l l e r p u b l i c bond i s s u e s s o l d d u r i n g t h e month were w e l l r e c e i v e d a n d , a s a r e s u l t , t h e volume of s e c u r i t i e s s t i l l i n s y n d i c a t e a t month-end was q u i t e s m a l l . Average y i e l d s on new c o r p o r a t e o f f e r i n g s , a d j u s t e d t o an Aaa b a s i s , i n c r e a s e d a n o t h e r 5 b a s i s p o i n t s d u r i n g t h e month t o U.50 p e r c e n t , r e f l e c t i n g p a r t l y t h e l a r g e s i z e of t h e i s s u e s i n c l u d e d , w h i l e y i e l d s on s e a s o n e d i s s u e s changed l i t t l e . New bond i s s u e s of S t a t e and l o c a l governments a g g r e g a t e d $L b i l l i o n i n F e b r u a r y , about o n e - s i x t h more t h a n i n J a n u a r y and o n e - h a l f more t h a n i n F e b r u a r y of t h e p a s t two y e a r s . This l a r g e F e b r u a r y f i n a n c i n g p r o b a b l y r e f l e c t e d i n p a r t t h e s t i m u l u s of d e c l i n i n g y i e l d s , p a r t i c u l a r l y f o r bonds i n t h e 10-20 y e a r m a t u r i t y r a n g e where commercial banks were r e p o r t e d t o have c o n c e n t r a t e d t h e i r a c q u i s i t i o n s s i n c e l a t e last year. I n c o n t r a s t t o J a n u a r y , when u n d e r w r i t e r s were a b l e t o d i s t r i b u t e hew i s s u e s p r o m p t l y , t h e y began t o e n c o u n t e r c o n s i d e r a b l e i n v e s t o r r e s i s t a n c e t o new o f f e r i n g s a t lower y i e l d s e a r l y l a s t month and t h e volume of a d v e r t i s e d i n v e n t o r i e s of u n s o l d s e c u r i t i e s c l i m b e d a l m o s t $300 m i l l i o n d u r i n g t h e month t o a r e c o r d h i g h o f $562 m i l l i o n a t month-end. Y i e l d s on m u n i c i p a l bonds c o n t i n u e d t o d e c l i n e d u r i n g most of F e b r u a r y as b i d d i n g on new i s s u e s c o n t i n u e d t o be a g g r e s s i v e , b u t a s t h e volume of u n s o l d i n v e n t o r i e s i n c r e a s e d , p r i c e s were c u t on some of t h e l o n g e r m a t u r i t i e s of a few i s s u e s s u f f i c i e n t l y t o r a i s e t h e i r y i e l d s s l i g h t l y . Y i e l d s on A a a - r a t e d bonds d e c l i n e d a n e t of h b a s i s p o i n t s d u r i n g t h e month t o 3»08 p e r c e n t , a s t h e i n c r e a s e i n y i e l d s l a t e i n t h e month o n l y p a r t i a l l y o f f s e t t h e e a r l i e r d e c l i n e . Common s t o c k p r i c e s changed l i t t l e d u r i n g F e b r u a r y . P r i c e s , a s measured by S t a n d a r d and P o o r ' s composite i n d e x of 500 common s t o c k s , c l o s e d t h e month a t 6 9 . 9 6 , somewhat l e s s t h a n two p e r c e n t above t h e end of J a n u a r y l e v e l , b u t s t i l l a b o u t t h r e e p e r c e n t u n d e r t h e r e c o r d h i g h of December 1 2 . T r a d i n g was m o d e r a t e l y a c t i v e on b a l a n c e , a v e r a g i n g 3 . 5 m i l l i o n s h a r e s a d a y , or somewhat l e s s t h a n i n J a n u a r y , b u t volume was d e c l i n i n g t h r o u g h o u t most of t h e month. / I n s t i t u t i o n a l i n v e s t o r s . T o t a l s a v i n g s i n f l o w d u r i n g December a t t h r e e m a j o r f i n a n c i a l i n s t i t u t i o n s — l i f e i n s u r a n c e companies, s a v i n g s and l o a n a s s o c i a t i o n s , and m u t u a l s a v i n g s banks—amounted t o $ 2 . 8 b i l l i o n , o n e - e i g h t h more t h a n i n December I 9 6 0 . A l l t h e s e i n s t i t u t i o n s r e p o r t e d year-to-year increases i n net inflow with the l a r g e s t increase reported -uf o r a s s e t s of l i f e i n s u r a n c e companies. (Time d e p o s i t s a t commercial banks i n c r e a s e d $ 0 . 5 b i l l i o n during December, o n l y o n e - t h i r d a s much as a y e a r earlier.) During 1961 t h e n e t i n f l o w of s a v i n g s a t t h e s e t h r e e major t y p e s of s a v i n g s i n s t i t u t i o n s amounted t o a r e c o r d $17=6 b i l l i o n , o n e - s i x t h l a r g e r t h a n t h e p r e v i o u s r e c o r d volume of i 9 6 0 . A l l t h r e e major t y p e s of i n s t i t u t i o n s r e p o r t e d l a r g e r n e t i n f l o w s than during t h e p r e v i o u s y e a r , b u t t h e l a r g e s t i n c r e a s e s were i n savings c a p i t a l a t savings and l o a n a s s o c i a t i o n s and a s s e t s of l i f e i n s u r a n c e companies e A s s e t s of l i f e i n s u r a n c e companies i n c r e a s e d a r e c o r d $6=9 b i l l i o n i n 1961, or o n e - e i g h t h more t h a n i n i 9 6 0 . Net purchases of b u s i n e s s s e c u r i t i e s , amounting t o $2,6 b i l l i o n , were i n t h e l a r g e s t volume s i n c e 1953 and o n e - t h i r d g r e a t e r than i n I960; a c q u i s i t i o n s were l a r g e r i n most months of 1961 than i n I960 with t h e l a r g e s t y e a r - o v e r y e a r i n c r e a s e s t a k i n g p l a c e i n t h e l a s t h a l f of t h e y e a r . Mortgage a c q u i s i t i o n s during 1961, t o t a l i n g #2,U b i l l i o n , were s l i g h t l y l e s s t h a n a y e a r e a r l i e r and o n e - t h i r d l e s s t h a n t h e r e c o r d 1956 r i s e i n h o l d i n g s , as mortgages were a c q u i r e d i n o n l y moderate volume u n t i l l a t e i n t h e y e a r . Net l i q u i d a t i o n of U, S, Government s e c u r i t i e s ($3llO m i l l i o n ) was i n somewhat s m a l l e r volume than i n I960, The n e t i n f l o w of new s a v i n g s c a p i t a l t o savings and l o a n a s s o c i a t i o n s was i n r e c o r d volume i n 1961, amounting t o $8,7 b i l l i o n , or about one-seventh more t h a n i n t h e p r e v i o u s year,. A c q u i s i t i o n s of mortgages, t o t a l i n g 38.6 b i l l i o n , were a l s o i n r e c o r d volume and onef o u r t h l a r g e r t h a n i n i 9 6 0 , Borrowings from t h e F e d e r a l Home Loan Bank r o s e by $0.7 b i l l i o n i n c o n t r a s t w i t h n e t repayment of #0.2 b i l l i o n i n I 9 6 0 . These enabled a s s o c i a t i o n s t o i n c r e a s e t h e i r cash and Government h o l d i n g s d e s p i t e t h e l a r g e r i n c r e a s e i n mortgage, a c q u i s i t i o n s t h a n i n savings c a p i t a l . D e p o s i t s a t mutual savings banks i n c r e a s e d by $ 2 , 1 b i l l i o n during 1961, o n e - h a l f more t h a n during t h e p r e v i o u s y e a r b u t o n e - e i g h t h l e s s than t h e r e c o r d i n c r e a s e i n d e p o s i t s during 1958= Mortgage a c q u i s i t i o n s of $2,2 b i l l i o n were one-seventh l a r g e r than a y e a r e a r l i e r and l a r g e r t h a n i n any e a r l i e r years except 1955 and 1956. Holdings of b u s i n e s s s e c u r i t i e s d e c l i n e d by $U1 m i l l i o n i n c o n t r a s t with a moderate i n c r e a s e i n i9 6 0 , whereas, n e t l i q u i d a t i o n of U= S-* Government s e c u r i t i e s of $ 0 , 1 b i l l i o n were only about o n e - s e v e n t h t h a t i n I960, More d e t a i l e d i n f o r m a t i o n concerning r e c e n t c a p i t a l market developments i s p r e s e n t e d i n t h e a t t a c h e d e x h i b i t s , C a p i t a l Markets S e c t i o n , D i v i s i o n of Research and S t a t i s t i c s , Board of Governors of t h e F e d e r a l Reserve System, -5- Sources and Uses of Funds of Major Types of Savings I n s t i t u t i o n s 1 / 1953-1961 ( I n m i l l i o n s of d o l l a r s ) Uses of f u n d s U. S. B u s i Govt, n e s s Mortgages ities ities Year Sources of f u n d s Total s o u r c e s Net change State & i n d e p o s i t s Borrow- O t h e r l o c a l Other or or savings ing govt. a s s e t s uses capital sec. L i f e I n s u r a n c e Companies 1961 I960 r] 1959 3 / 1958 1957 1956 1955 195b -340 57 -ijlii 25 -56 -32U 69 15b -526 111 18 - 1 , 0 2 6 -176 55 < -746 2,628 1,995 2,289 2,179 2,495 1,972 2,126 2,280 2,to 2,561 2,Ut5 1,821 2,2$. 3,569 3,li97 2,653 300 401 530 31U 124 236 165 555 1,784 1,499 1,486 1,434 950 808 832 1,120 6,872 6,067 6,070 6,271 5,298 5,577 6,199 5,867 . — —* —— — — Savings and Loan A s s o c i a t i o n s 1961 I960 r / 1959 £ / 1958 1957 1956 1955 1954 53^ 197 -402 439 27 52 92 492 586 118 658 646 391 ao 325 93 1961 I960 r/ 1959 j y 1958 . 1957 1956 1955 1954 68 43 -70 31 -30 -45 -61 43 -93 -625 -3W -286 -419 -189 -288 -436 — 8,780 6,929 7,514 5,578 4,278 4, 268 5,300 4,146 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 685 402 621 338 571 408 320 172 10,585 7,946 8,391 7,001 5,263 5,156 6,023 4,900 657 1 , 2 0 8 -190 577 84L 943 872 65 467 32 -211 361 537 596 571 -77 8,720 7,559 6,607 6,064 h,76h 5,006 U,890 it, 1)06 Mutual Savings Banks -ill 231 -81 6U2 808 177 -178 230 2,213 1,910. 1,868 2,088 1,122 2,281 2,429 2,050 7 -50 -2 43 13 32 37 193 109 91 107 94 63 78 57 68 TJ Revised. n.a.—Not a v a i l a b l e . 1 / F o r d e s c r i p t i o n of data see Exhibit:: M N and 0, 2,262 1,631 1,483 2,611 1,857 2,037 1,998 2,146 2,051 1,363 1,23k 2,3W 1,663 1,81(5 1,828 1,961 . —w —— —— 1 —— 211 268 249 265 194 192 170 185 L O N G - T E R M B O N O YIELDS HJGH-GRADE LOWER-GRADE l / J STATI AMD IQOt SOVttHMtWT Is. -7- E x h i b i t B - Tables f o r Exhibit Ji Long-term Bond Y i e l d s high-grade Corporate Aaa 1/ Date S t a t e and local government Aaa 3 / U. S. Govt. . long-term 2 / (per cent) 1957 - High 1958 - Low 1959-60 - High 1960-61 Low 1961 - High 1962 - High Low Feb. Feb. Feb. Feb. /Mar. 2 9 16 23 2 g/ 4.14 3.76 3.07 4.42 (9/27) tit t i l (10/I8) (V25) (1/8/60) &%V LW (2/16) 4.12 ( 2 / 2 3 ) 4.06 (1/5) 4.42 4.10 4.09 4.41 (1/26) 4.1t2 2.61* (8/29) (SA) 3.65 ( 9 / 2 4 / 5 9 ) 2.99 3.37 3.26 ( 1 A ) 3.011 (2/15) z6-r' 3.12 3.09 3.04 4.08 it. 43 4.42 4 . 4 2 / 3.45 Spread between U. S. Govt, and S t a t e and Corporate Aaa l o c a l Aaa .32 .33 .35 .30 .34 3.08 3.08 4.12 4.08 .60 .22 .59 •19 .57 .37 .30 * - .50 ,34.92 Ji6 .76 1.34 .80 .98 . 1.00 1.04 1.04 1.34 ' Lower grade • Date Coiporate Baa 1 / S t a t e and local govt. Baa y Spread between Aaa and Baa S t a t e and , Coiporate 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 Feb. Feb. Feb. Feb. liar. 2 9 16 23 y 2 2/ 5.10 (11/29) 4 . 5 1 (7/11) 5 . 3 6 (2/12/60) 4 . 9 8 (9/9/60) 5 . 1 3 (10/27) 5.11 (1/5) 5.05 (3/2) 5.07 5.08 5.08 5.07 ; 5.05z ' 4.51 3.64 (8/29) (5/1) 4.46 (1/7/6O) tiuma) 4.04 ( l / i l ) 3.78 (2/15) 3.88 3.83 . 3.78 3.81' 3.81 1.27 3 .81 .68 .63 .65 .66 .65 • ; ? 1 / weekly m n w t of M l y fls«res. Average Urn of bonds Included i e 23-26 y e a r s . I / Weekly average of d a l l y f i g u r e * . The s e r i e s I n c l u d e s bond# hie 0? c a l l a b l e I n 10 y e w s or " o r e . I / T b u r e k y f i g u r e s . Only g e n e r a l o b l i g a t i o n bonds a r e i n c l u d e d ; average term l a 20 y e a r a . Note.—Highs and lews a r e f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t d a t e s f o r d i f f e r e n t s e r i e s , f o r s p r e a d s , 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 .82 3 .73 .76 .74 .74 .73 .73 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 GOVERNMENT yv B A N K S A N D OTHER PRIVATE B O R R O W E R S .LLLLl. LLLI Ll LIJ..J. IJ .1 J..LL -9Exhibit S n o r t - and D - Tables l o r Exhibit C Intermediate-term Interest hates Government Date | I I 1 i | 1 1957 - High 1 9 5 8 - Low 1959-60 - H 3 9 6 0 - 6 1 Low 1961 - High 1962 - High Low 1 Feb. 2 g Feb. 9 1 Feb. 16 I Feb. 23 |v/Mar. 2 g / Discount rate 1/ 3.50 1.75 h.OO 3.00 3.00 3.00 3.00 3.00 ' 3.00 3.00 3.00 3.00 Yields 6-month „ b i l l s 2/ (per cent) 3-month bills 2/ 3.6k .58 b- 5 9 2.11 2.66 ^ — do/16) 3.02 (5/29) 5.07 (i/e/60) (10/28/60) 2 . 3 5 (12/29) 2.90 2.81 (2/16) 2.6? (1/26) 3.02 2.87 2.69 2.70 (12/26) (1/8/60) (4/2^61) (12/29) (1/12) (3/2) 2.92 2.90 3.00 2.93 2.87 2.81 2.7h / 2 . 6 ? / S p r e a d between y i e l o 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/ h - O k (10A6) 2.12* (6/6) 5 . 0 0 (12/24/59) .86.OU 1.81 —— • .26 .79 3 . 1 5 (5/12/61) 3 . 8 6 (8/11) 3.88 (2/2) 3.62 (3/2) .12 .Mt . 2 4 .17 .38 1.51 1..19 3.88 3.83 3.78 3.73 3.62 .23 .20 1.19 \.13 .97 .99 •93. .93 .19 .19 .18 Banks and O t h e r P r i v a t e Borrowers \ Date Stock Exchange call loan 1/ Prime late 1/ (per 1957 - High 1 9 5 8 - Low 1959-60 - High paper 2/ 3.88 1.13 (xiAO (a/o) (1/22/60) (8/5/61) (12/29) (1/19) (3/2) 1 9 6 0 - 6 1 Low 1961 - High 1962 - High Low it. 50 U.50 it. 50 4.50 it.5o It. 5 0 it. 5 0 5.13 2.50 3.00 3.11 3.00 Feb. Feb. Feb. Feb. Mar. it. 5 o 4.5o U.50 4.50 4.50 it.50 It. 5 0 it. 50 ii.50 it. 5 0 3.00 3.00 3.00 3.Q0 3..00 ' \) 2 9 16 23 2 p/ r Federal funds h/ Spread between 3-mo. b i l l s and finance co. paper cent) it. 50 3.50 5.00 U. 5 0 3.50 5.50 k.5° F i n a n c e compary 3.50 (u/a) .13 U. 0 0 (5/ze) (5/13/60) •U3 (1/27/61) 2.88 (12/20) 2.66 (2/9) 1.30(1/26) 1.85 2.66 2 . a 1/2.25 2.60 •63 -.35 1.02 • • •• *s > .38 .19 .31 .30 .19 .26 .31 Weekly r a t e shown 1* t h a t I n e f f e o t a t and of p e r i o d . Dlsoount r a t e i s f o r Federal Reserve Bwik o r Hew TorK, Stock Exchange w l l loan r a t e I s going r a t e on c a l l Iom.f secured by customers' stock exchange e o l t r . t e m l a t New York City banks. Prl«e r a t e i s t h a t charged by large banks on s h o r t - t o r e l o a n s t o b u s i n e s s borrowers o f J/ K a r k e t ^ e l d i weekly Averages ooeputed from d a i l y c l o s i n g t i d p r i e e s , 3/ A v e ^ e ^ o f ^ i l y ' r C i t e ^ p u b l i n h e d by finance companies f o r d i r e c t l y plr.ced paper f o r varying m a t u r i t i e s l » t h e 4/ w l k l y w r l g ^ o f d a l l y e f f e c t i v e r a t e , nhieh i s t h e r a t e f o r t h e h e a v i e s t voluee of purchase and s a l e t r a n n a e t l e n s a s r e p o r t e d t o t h e Federal Reoerve Bank of New York. dates for d i f f e r e n t s e r i e s . Mote.—Highs and lows a r e f o r I n d i v i d u a l s e r i e s and nay be en d i f f e r e n t Digitized forForFRASER s p r e a d s , h i g h r e f e r s t o w i d e s t , and lew t o n a r r o w e s t . S e r i e s of 1 - 5 y e a r I s s u e s c o n s i s t s of . STOCK MARKET % PRIVATE Monthly HOUSING CHANGE IN SERIES STARTS T h o u s a n d s of U n i t s t j y CONVENTIONAL: Exliibit F - Tables f o r Exhibit E S t o c k Ma i k e t Stock p r i c e index 1 / Date 1960-61 - High Low 1 9 6 2 - High ' Low Common stock yields 2/ (per cent) Trading volume J / (millions of s h a r e s ) 2.82 3.62 2.92 3.01 5.8 2.2 3.9 3.0 72.01* (12/8/61) 5 3 . 3 2 (10/21/60) 70.59 (2/16) 68.13 (1/26) ' Stock market customer c r e d i t Customers' Bank Total debit balloans to ances h / "others" 5/ ( I n m i l l i o n s of d o l l a r s ) 5,602(12/61)14,259 (12/61) 1 , 3 7 7 it, 11+2 (5/60) 3 , 0 0 k (7/60) 1,121 n.a. n.a. 1,362 n.a. n.a. 1,31*8 (8/30/61) (5/25/60) (2/llt) (1/2U) January 5,1*63 it,110 1,353 69.07 2.97 3.7 February n»8# n•8e 70.22 2.91* 3.5 Feb. 9 70.1*8 n.a. n.a. . 1,357 3.8 2.93 n.a. n.a 1,362 Feb. 16 2.92 3.1* 70.59 n.a. n.a. 1,361 F e b . 23 70.16 2.96 3.3 n.a. n.a. n.a. 70.16 M a r . 2 0/ .. 3 . 0 2.96 n.a,--No-rrkv*iiatu*. ^E/ Preliminary. 1/ Standard and Poor's composite Index of 500 oommon stocks, weekly closing prices, 1941-43210. Monthly data are 1 averages of dally figures rather than of Friday's only. Highs and lows are for Mday 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 i t s high or low. 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 ty U. S. Government obligations. 5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying U. S, Government s e c u r i t i e s . Prior to July 1, 1959, such loans are excluded only a t banks in New York and Chicago. Weekly reporting banks account for about 70 per cent of loans to others. For further detail see Bulletin. P r i v a t e Housing S t a r t s 3 / Total Date Unadjusted rS^r-l^uatedl VA Conventional (Thousands of u n i t s ) Jan. Feb. Mar. Apr. May June July Aug. Sept Oct. Nov. Dec. g / Jan. 2 / 1,127 1,169 1,296 1,166 1,291 1,381 1,31*3 1,326 1,383 1,1*3U z/1,351 1,309 1,292 70 76 105 111 127 132 125 127 • 122 121* r/103 83 82 11* 13 20 20 21* 22 21 26 21 23 23 17 18 5 5 6 6 8 8 7 8 7 9 7 6 1* 51 58 78 85 95 103 97 93 9l* 91 72 60 60 1/ Total s t a r t s are Census estimates, which are not s t r i o t l y comparable with old nonlXm series developed'by BLS. A dwelling unit i s started when excavation begins; a l l units In an apartment structure are considered started a t that time. FHA and VA s t a r t s are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit le started when a f i e l d o f f i c e receives the f i r s t compliance inspection report, which i s made before footings are poured In soms eases t u t normally a f t e r the foundatlone have been completed. mortgages and unite without mortgages. Exhibit G -12- Yields en New Corporate Bond I s s u e s A d j u s t e d t o an Aaa Basis Number of i s s u e s included Monthly a v e r a g e s : 1961 - J u l y August September October November December 1962 - January February March April May •Weekly a v e r a g e s : 1961 - J u l y 7 lit 21 28 August It 11 18 25 September 1 8 15. 22 29; October 6 13 20 27 November 3 10 •17 2h December 1 8 It h 2 7 9 3 h 5 1 1 2 2 1 1 1 1 2 . 2 3 3 : h 1 1 2 Amount Average of i s s u e s yield included (per (millions cent) of d o l l a r s ) December 15 It. 62 22 It.59 29 It. 38 lt.26 I96I - h i g h Low L 32 It. 39 lt.U5 1962 It. 50 January 5 12 19 26 February 2 9 16 23 8.0 It. 60 March 2 200.0 lt.61t 9 16 65.0 lt.lt6 55.0 23 !t.5lt 20.0 It. 73* 30 ito.o It. 60 A p r i l 6 13 20 27 18.0 lt.lt6 hay It 11 60.8 18 It. 36 1*5.0 - It. 25 25 June 1 60.0 It. 21 8 It. 28 15 95.0 Ii5.0 It. 21 22 29 It. 29 9k.0 60.0 It. 35 30.0 ' It.ltO It. 29 75.0 Number of i s s u e s included 1 273.0 115.0 78.8 200.0 229.0 115.0 130.0 3914.5 Ampunt Average of i s s u e s yield included (per (millions cent) of d o l l a r s ) • ItO.O lt.55* — it. 68 (6/16) ! It. 21 ( 1 1 / 3 ) , jt ' ! 1 60.0 lt.5o& 3 70.0 It.ltO | 2 1 1 1 19.5 300.0 50.0 25.0 It.ltO t L52 lt.50f It. 3 7 ^ - I h 'k r $% % 1 k & —r—i and A by Moody's I n v e s t o r s Service ( e x c e p t s e r i a l , equipment t r u s t and c o n v e r t i b l e issue;, o f f e r i n g s of n a t u r a l gas p i p e l i n e and f o r e i g n companies, and i s s u e s guaranteed by t h e F e d e r a l Government) weighted by s i z e of i s s u e s . Yields on Aa- ana A - r a t e d bonds a r e f i r s t a d j u s t e d to an Aaa b a s i s , using t h e comparable spreads i n y i e l d s on seasoned bonds I (Moody's a v e r a g e s ) . Averages r e f l e c t changes in i n d u s t r i a l composition, t y p e , m a t u r i t y , f and c a l l p r o v i s i o n s of new o f f e r i n g s . v/eekly averages considered unusually u n r e l i a b l e \ a s i n d i c a t o r s of i n t e r e s t r a t e s on new i s s u e s because of t h e s m a l l number or s p e c i a l c h a r a c t e r i s t i c s of o f f e r i n g s included e t c . a r e marked with an a s t e r i s k . -13Exhibit H Long-term Corporate and S t a t e and Local Government S e c u r i t y O f f e r i n g s and Placements ( I n m i l l i o n s of d o l l a r s ) 1962 January February March e/600 e/900 e/750 Corporate 1 / 1 1961 | 580 New c a p i t a l I960 S t a t e and l o c a l 2 / 1 I9601962 I 1961 e/850 iAPoo e/500 713 689 761* 700 611 568 723 719 51*5 991 *2 570 715 860 April Hay 2,118 1,259 1,318 577 1,0144 1,081* July August September 1,028 762 61*7 736 967 726 728 683 October November December 1,090 9b8 1,000 890 956 852 2/61*8 JE/726 e/550 31*8 501 1*91 1,809 1,695 2,1*37 3,038 2,11*5 2,382 2,1*28 2,698 2,166 2,1*1*7 2/1,817 - e/l,92l4 1,680 2,2 56 1,780 1,31*0 1*, 613 2/6,1*30 e/8,351* 1*,136 5,916 7,257 1st 2nd 3rd itth quarter quarter quarter quarter 0/2,2*0 1st half Three q u a r t e r s Year 667 6,504 8,91*1 11,979 9,653 6I4I 1*85 60I4 e/2,350 1*92 606 Excluding f i n a n c e companies 3 / 1st 2nd 3rd Utb quarter quarter quarter quarter e/2,150 Tear 1/ 2/ 2/ 1,551* U,552 2,337 2,938 11,381 • 1,716 2,165 2,018 2,31*7 8,21*6 Estimated. „ S e c u r i t i e s and Exchange Commission e s t i m a t e s of n e t proceeds. Investment Bankers A s s o c i a t i o n of America e s t i m a t e s of p r i n c i p a l amounts. T o t a l new c a p i t a l i s s u e s excluding o f f e r i n g s of s a l e s and consumer f i n a n c e companies. -lk- Exhibit I New C o r p o r a t e S e c u r i t y I s s u e s , Type of I s s u e and I s s u e r ( I n m i l l i o n s of d o l l a r s ) Quarter or month Gross p r o c e e d s f o r new ^let p r o c e e d s f o r c a p i t a l and r e f u n d i n g 1 / new c a p i t a l ~1/ 2 / Bonds Common and P u b l i c Communi- Other Total Publicly J Privately Mfg. pfd. u t i l i t y cations issuers offered offered stock I960 - I II III IV 2,262 2,537 2,520 2,832 93k 1,07k 1,336 l,k62 795 770 75k 955 536 692 k29 kl6 298 511 562 625 598 808 652 696 189 lk9 317 351 1,059 913 896 997 1961 - I II III IV 1,992 5,352 2,566 3,236 662 2,303 772 967 880 1,275 1,139 l,k2k kk9 1,77k 65k 8k5 515 l,k66 935 792 381 1,081 595 836 81 1,095 10k lk7 832 1,052 803 1,263 178 273 211 713 666 92k k2k . 225 123 #6 klk 217 29k 255 331 3k8 355 572 392 kll 3# 509 3k8 567 129 167 15k 1,170 320 263 259 177 218 310 2# 310 169 99 2k8 57k kk7 kk6 k28 255 252 271 215 306 137 l'6o 8k 25k k39 389 369 215 111 306 362 168 21 kl 19 99k 65 16 16 13 75 25 80 k2 253 368 211 297 289 k67 315 279 209 k87 291 k65 200 250 190 220- 130 10 2k0 1962 - I II III IV 1961 - J a n . Feb. Mar. Apr May July Aug. Sept. Oct. Nov. Dec. 1962 - J a n . 2 / Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 601 695 696 2,231 1,342 1,779 1,075 813 678 1,155 987 1,09k 6k0 g/ Preliminary. ~ej E s t i m a t e d . 1 / Gross p r o c e e d s exceed n e t p r o c e e d s by t h e c o s t of f l o t a t i o n . 2 / f o r t o t a l see E x h i b i t H; o t h e r i s s u e r s a r e r e a l e s t a t e and f i n a n c e and and Exchange Commission. t r aFRASER c t i v e , r a i l r o a d and o t h e r t r a n s p o r t a t i o n , Digitizede xfor commercial and o t h e r . Source.—Securities Exhibit J Other Security Offerings ( I n m i l l i o n s of d o l l a r s ) " Gross long-term 1 / F e d e r a l agency 3 / " Foreign government 2/ I960 195? W January February March 6 29 20 April May June July August September October November December Year 2 175 70 81 60 2 2. 66 29 31* 72 1*0 5 2 — 1*3 3k 236 252 182 150 150 175 58 50 1*2 100 11*9 278 11*8 351* — — 25 1 36 85 1 .35 250 193 199 — 98 150 31* 2 ia 33 30 70 225 — 160 11*9 181 51*7 1,14*8 533 ' 199 _ mm e« . 86 1,672 707 Net s h o r t - t e r m k / Federal agency 3/ S t a t e and l o c a l government 5 / January February March 160 195 -8 . 58 11*0 -80 . -1* 181 h -11*1* -162 -171* 70 -11*6 -157 197 -2ST -197 -79 -87 207 -277 170 ' 320 109 518 -86 1*8 1*15 -175 57 392 131 22 193 108 95 23 -201 - October November December -6 51* &/-207 -16 50 -189 -81 -176 -117 98 56 -111* -23 -33 -250 Year B/l*29 18 362 -76 -633 April May June July August September -103 -1*2 -155 • E/ 1/ -82 176 33 -196 -202 -59 • ' &• 368 286 362 133 79 280 2lt0 1*1* 1,969 Preliminary. These data d i f f e r f r e e those I n Exhibit 0 i n that re fundi i s s u e s , a s well a s new c a p i t a l I s s u e s , are included. Loiy-term s e o i r l t l e s are defined a s those maturing In mere than one y e a r . Includes s e c u r i t i e s o f f e r e d i n the.United S t a t e s by foreign governments and t h e i r subdivisions and by I n t e r n a t i o m l organizations. Source t Seourltlee and Exchange Coralsslolt, 3 / Issues not guaranteed by the U. S. Government. Souroei long-term, S e c u r i t i e s and Exchange Commissions shortterm , Treasury Department and federal Reserve. 4 / These feta d i f f e r from those i n Exhibit 0 and above In t h a t they represent new o f f e r i n g s lens retirements, whether from the proceeds of refunding Issues or from other funds. Data Include only i s s u s s with original maturity of one year or l e s s . 5 / P r i n c i p a l l y tax and bond a n t i c i p a t i o n notes, warrants or c e r t i f i c a t e s and Public Housing Authority n o t e s . I n some instances PHA notes included may have a somewhat longer term than one y e a r . Sourcei Bond Buyer and Federal Reserve. 2/ -16- Exhibit K Large Long-tern Public S e c u r i t y I s s u e s f o r New C a p i t a l ( O t t e r than U. S. Treasury) 1 / Proceeds of Large I s s u e s O f f e r e d ( I n m i l l i o n s of d o l l a r s ) Month Total 1961 - February March April May June July August September October November December 1962 - J a n u a r y February 267 70 1,572 557 532 475 185 168 354 391 255 195 Corporate Bonds Convertible (other than bonds convertibles) h2S 230 25 560 lt80 435 285 165 78 205 320 125 170 425 40 15 75 33 67 26 State and local government Stocks Other 2/ 360 405 383 256 616 179 281 435 326 L80 307 561 662 37 5 1,010 62 97 115 20 58 81 45 130 25 67 25 151 100 73 40 250 145 6h Large I n d i v i d u a l I s s u e s O f f e r e d February 1 through March 2 Issuer Type 3 / I Coupon Amount r a t e or (millions Maturity net i n t e r - ° y U l T S k t i n g of est cost dollars) CORPORATE Western Union Telegraph Co. S.F. deb. American T e l . & T e l . Co. Deb. 1 s t mtg. b d s . Duke Power Co. Deb. Consolidated N a t u r a l J3as 50.0 300.0 50.0 25.0 1987 1994 1992 1987 5-1/4 4-5/8 4-1/2 4-1/2 5.17 4.52 4.50 4.50 Baa Aaa Aaa Aa 1.90-3.75, / 2.00-3.2SB/ 2.10-3.50 1.65-3.15 1.50-3.50 1.60-3.1*0 1.60-2.90 1.60-3.00 1.90-3.252/ 2.00-3.552/ 1.70-3.50 1.90-3.08 it. 13 A Aaa A Aa Aaa Aa Aa Aa A Aa A A STATE AND. LOCAL GOVERNMENT New York S t a t e Dormitory A i t hh.. Rev. S t a t e of New J e r s e y G.O. ^ Rev.-S.T. S t a t e of Michigan S t . L o u i s , Missouri G.O. P u b l i c Housing A u t h o r i t y G.O. G.O. Los Angeles S c h . D i s t . , C a l . City and County of San G.O. Rev. - U t . Francisco, California G.O. City of P h i l a . S c h . D i s t . , P a . G.O. S t a t e of Oregon G.O. New York C i t y , New York G.O. Chicago, I l l i n o i s Rev. - U t . Maryland S t a t e Roads Com. 12.5 42.0 25.0 12.7 79.6 30.0 21.0 6.3 12.0 28.9 89.4 27.5 74.0 1963-97 1965-92 1964-84 1963-82 1962-2002 1963-87 1963-87 1963-82 1964-87 1965-92 1963-92 1961-79 2002 3.68 3.05 3.36 3.11 3.33 3.15 2.74 2.89 3.07 2.93 3.21 2.99 4.18 Large I n d i v i d u a l I s s u e s O f f e r e d F e b r u a i y 1 t h r o u g h March 2 (Cont'd) Issuer Type 3 / Amount Coupon (millions rate or Offering Maturity of net i n t e r - yield dollars) est cost Rating STATE AND LOCAL GOVERNMENT (Cont'd) Delaware S t . Highway Dept. New York S t a t e Thruway Auth. Rev.-Ut. ,28.0 2U.0 P r i n c e Georges C o . , Md. G.O. S t a t e of Maryland G.O. Orleans P a r i s h School Board, La. G.O. S t a t e of Tennessee G.O. S t a t e of M a s s a c h u s e t t s G.O. Georgia S t a t e Highway Auth. Rev.-S.T. Columbus, Ohio G.O. 1*8.0 11.5 27.7 10.0 12.3 llO.O 35.0 11.1 2002 U.18 U. 13 1967-85 1996 1963-87 1965-77 3.21 1962-2001 1963-82 1963-82 1963-91 196U-98 3.02 3.31 3.08 1.50-3.70 1.65-3.10 1.70-3.20 1.75-3.50 1.90-3.50 k-1/2 1U6 3-6k 3.55 2.96 OTHER Federal Land Banks Bonds 6it.O 197k *—Rights o f f e r i n g . 1 / I n c l u d e s c o r 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 $L5 m i l l i o n and o v e r ; 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 $10 mill ion and o v e r . 2/ I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and Development i s s u e s and n o n - g u a r a n t e e d i s s u e s by Federal a g e n c i e s . y In the c a s e of S t a t e and l o c a l government s e c u r i t i e s , G.O. d e n o t e s g e n e r a l o b l i g a t i o n s ; R e v . - U t . , revenue o b l i g a t i o n s s e c u r e d only by income f r o m p u b l i c u t i l i t i e s ; R e v . - Q . U t . , revenue bonds s e c u r e d only by revenue from q u a s i - u t i l i t i e s ; R e v . - S . T . , revenue bonds s e c u r e d by revenue from s p e c i f i c t a x e s o n l y ; R e v . - R e n t . , revenue bonds s e c u r e d s o l e l y by l e a s e payments. V 2 p e r c e n t bonds of 1992 r e o f f e r e d t o y i e l d 3.60 p e r c e n t , 5 / 0 . 1 p e r cent bonds of 1987 r e o f f e r e d t o yielxM*. 1*5 p e r c e n t . 6 / 1 p e r c e n t bonds of 1992 r e o f f e r e d t o y i e l d L.00 p e r c e n t . 7 / 1 per cent bonds of 1986 and 0 . 1 p e r cent bond of 1987 n o t r e o f f e r e d . - 2.50-3.50 . 3.70 7 / 1.75-3.1*5 A 2.00-2.88 Aaa A Aa Aa A Aa —18— Exhibit L Forthcoming Large Long-term P u b l i c S e c u r i t y O f f e r i n g s f o r New C a p i t a l (Other t h a n U. S. Treasuiy) 1 / Expected Proceeds f r o m Forthc cming'Large I s s u e s During month f o l l o w i n g d a t e shown S t a t e and Corporate l o c a l g o v t . Other 2 / Date of computation 1961 - Feb. 28 Mar. 31 Apr. 28 May 31 June 30 J u l y 31 Aug. 31 Sept. 29 Oct. 31 Nov. 30 Dec. 29 1962 - Jan. 31 Feb. 28 55 1,580 5h 2 1*87 521 170 175 358 3i|6 356 161 180 222 307 559 236 131 195 ii06 399 251 597 295 223 165 153 Subsequent t o date shown S t a t e and Corporate l o c a l govt. Other 2 / 1,125 1,700 687 611 666 255 2ii0 50li iOl li21 591 525 3W. 15 75 -73 35 6U — 638 806 579 771 291 537 530 h$h 693 198 ia5 567 239 15 75 73 35 6L Forthcoming Large O f f e r i n g s , a s of March 2 Issuer Type Amount Approximate d a t e (mill i o n s of o f f e r i n g of d o l l a r s ) CORPORATE West Penn. Power Co. P a c i f i c Gas & E l e c t r i c Co. South European P i p e l i n e Co. *Ashland O i l and R e f i n i n g Corp. ^ N a t i o n a l 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. Stokely-Van Camp I n c . -Long I s l a n d L i g h t i n g Co. Litton Industries Inc. Commerce O i l R e f i n i n g Corp. 1 s t mtg. b d s . 1st & ref.mtg.bds. S . F . deb. S . F . deb. S . F . deb. S . F . deb. Com. s t k . 30.0 62.0 UO.O 25.0 35.0 5o.o 22.0 Conv. sub. deb. Com. s t k . 15.0 23.0 Conv. sub. deb. 50.7 Deb., b d s . & com. U5.0 Mar. 6 Mar. Ik Mar. 15 Mar. 22 Mar. 27 , Mar. 28 March (rights expire) March Apr. 2 (rights expire) April ( r i g h t s expire) Indefinite STATE AND LOCAL GOVERNMENT Los Angeles Dept. of Wtr. & Pwr., California D a l l a s , Texas Penna. Gen. S t a t e Auth. Denver, Colorado Rev.-Ut. G.O. Rev.-Rent. G.O. 16.0 10.8 25.0 15.0 Mar. Mar. Mar. Mar. 7 12 13 13 -19- L-2 Forthcoming Large O f f e r i n g s , a s of March 2 ( C o n t ' d ) Issuer Type Amount Approximate d a t e (millions of o f f e r i n g of d o l l a r s ) STATE AND LOCAL GOVERNMENT ( C o n t ' d ) P u e r t o Rico Water R e s o u r c e s A u t h . L o u i s i a n a S t a t e Bond and B u i l d i n g Authority D e t r o i t , Michigan D e t r o i t S c hool D i s t . , Mich. Dade County, F l o r i d a J a c k s o n v i l l e Expressway A u t h . , F l a . Rey.-Ut. Rev.-Rent. G.O. G.O. G.O. Rev.-Ut. 12.5 15.0 15.0 10.0 1*6.0 . liO.O Mar. Ik Mar. 15 Mar. 27 Mar. 27 Indefinite Indefinite OTHER None 1/ i n c l u d e s c o r p o r a t e and o t h e r i s s u e s of $15 m i l l i o n and o v e r ; 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 o v e r . 2 / i n c l u d e s 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 R e c o n s t r u c t i o n and ~~ Development i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e r a l a g e n c i e s . N o t e , — D e l e t i o n s f o r r e a s o n s o t h e r t h a n s a l e of i s s u e ; $ 1 1 , 9 m i l l i o n i s s u e of F l o r i d a S t a t e Board of A d m i n i s t r a t i o n was removed b e c a u s e i t was a s e c o n d a r y issue. -20- Exhibit M Sources and Uses of Funds by L i f e Insurance Companies U. s . Govt. Cash ities Value of a s s e t s a t end of p e r i o d : 1957 - Dec. 1958 - Dec. 1959 - Dec. I960 - Dec. 1961 - Dec. 1961 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Uses of funds 1 / BusiS t a t e and ness l o c a l govt, Mortgages securi t i e s 2/ ities Other Total Sources or uses ( I n m i l l i o n s of d o l l a r s ) Changes: 1959 - J u l y Aug. Sept. Oct. Nov. Dec. i 9 6 0 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. ^ | 1,29k 1,363 1,307 1.332 1,389 7,028 7,182 6,858 6,W4 6,104 42,133 44,612 46,901 48,896 51,524 2,377 2,691 3,221 3,622 3,922 35,271 37,092 39,237 41,798 44,241 13,206 14,640 16,126 17,625 19,409 101,309 107,580 113,650 119,717 126,589 -25 16 -39 20 33 99 39 95 ^181 -18 -132 -168 194 81 82 203 195 219 110 31 18 14 18 24 194 167 207 245 235 304 146 110 108 91 146 313 658 500 195 555 495 791 -71 -53 -30 39 -12 33 12 It -51 90 -35 99 153 -36 -167 -85 -62 -102 73 -liO -6 -62 23 -103 204 125 104 134 231 125 167 168 40 311 198 188 -24 25 35 21 26 .13 104 43 82 33 26 17 336 196 242 225 203 192 63 226 179 214 208 277 -46 207 115 95 128 211 206 175 122 11 102 173 552 464 299 429 514 469 x 628 576 366 597 522 651 -54 -9 -50 9 75 -33 40 101 -3 -7 -47 63 -150 71 242 128 148 135 170 245 245 49 31 33 34 5 5 25 36 29 17 36 18 210 135 208 202 170 182 107 164 165 199 235 426 202 202 186 119 58 150 142 128 138 105 165 308 750 484 518 452 541 399 630 521 509 653 642 883 -18 14 31 43 15 -50 13 ' -43 -256 \J 211 213 288 206 372 Uses of f u n d s r e p r e s e n t n e t changes in a s s e t s and t h e r e f o r e r e f l e c t n e t , r a t h e r than g r o s s , u s e s . 2 / I n c l u d e s s e c u r i t i e s of domestic c o r p o r a t i o n s o n l y . S o u r c e . — I n s t i t u t e of L i f e I n s u r a n c e . Exhibit N Sources and Uses of Funds by Savings and Loan Associations Value of a s s e t s a t end of period 1957 - Dec. 1958 - Dec. 1959 - Dec. i960 - Dec. 1961 - Dec. Uses of funds 1 / U. S. Mort- . Other Cash Govt. gages!/ ities (In millions Sources of funds Net change Borrow- Other savings ing i / capital of d o l l a r s ) Total sources o r uses 2,1U6 2,585 2,183 2,715 3,21k 3,173 3,819 4,477 4,586 5,181 40,049 45,627 53,194 60,084 68,850 2,770 3,108 3,676 4,104 4,816 48,138 55,139 63,530 71,489 82,061 41,912 47,976 54,583 62,154 70,862 1,379 1,444 2,387 2,191 2,854 -4,847 5,719 6,560 7,144 8,345 Changes: r/1959 - July Aug. Sept. Oct. Nov. Dec. -431 -42 -52 -69 61 371 108 23 -7 10 -28 -25 804 740 676 626 464 467 -114 14 67 86 137 -64 367 735 684 653 634 749 201 394 447 396 484 1,205 31 119 148 136 56 222 135 222 89 121 94 -678 1/I96O - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -315 -34 1*9 -26 81 320 -233 30 25 102 83 415 199 65 -26 -112 64 104 108 210 -50 -148 -6 50 -1 321 400 541 564 635 762 645 722 656 602 515 566 233 -50 93 495 668 646 944 889 232 723 736 813 777 930 467 406 630 370 622 1,220 157 486 6o4 666 552 1,379 -451 -123 -125 39 4 210 -124 22 49/ -14 52 271 77 212 163 237 318 -541 199 215 83 161 173 -720 93 191 107 -18 -3 32 -8 66 -5 45 82 4 369 428 690 695 809 997 737. 910 802 810 752 781 -106 71 122 113 224 -64 -15) 76 83 103 198 15 261 749 922 813 1,180 1,096 352 966 927 1,039 1,116 1,164 591 553 705 417 800 1,362 111 496 662 726 775 1,522 -465 -80 -26 88 41 274 135 276 243 308 339 -540 242 , 338 135 239 260 -767 /p/1961 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. F -95 59 3 23 150 131 -227 -86 47 81 84 364 18 -143 -32 -23 5 110 -54 -1 -1 132 130 74 81 409 Preliminary. Revised. Uses of funds represent net changes in a s s e t s and t h e r e f o r e r e f l e c t n e t , r a t h e r than gross, uses. Savings and loan associations do not hold business s e c u r i t i e s and data on holdings of State and l o c a l government bonds, presumed t o be small, are not available. Data f o r 1957 adjusted to include mortgage pledged shares as currently reported. Advances from Home Loan Banks and other borrowing. Source.— FSLIC. % Exhibit 0 S o u r c e s and Uses of Funds by M u t u a l S a v i n g s Banks Uses of funds 1 / Busi- . State & local Mortgovt. gages ities ities 2/ ities Cash U. S. Govt. Value of a s s e t s a t end of p e r i o d 1957 - Dec. 1958 - Dec. 1959 - Dec. I 9 6 0 - Dec. 1961 - Dec. 890 921 829 872 940 7,552 7,266 6,864 6,239 6,146 4,331 4,973 4,849 5,080 5,039 682 725 722 672 679 Changes: 1959 - J u l y Aug. Sept. Oct. Nov. Dec. -79 3 -2 -27 20 111 -13 -12 -32 -281 -85 -12 -47 13 -2 -55 -28 23 4 -1 8 -20-8 -24 i 9 6 0 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -131 37 ill -86 42 108 -69 -6 22 -8 9 84 -9 -11 32 -148 -80 -93 -48 30 -32 -156 -68 -42 -12 -9 52 -19 13 57 38 -8 32 -4 3k 57 -6 -9 3 13 -23 -4 -4 -5 1 -6 -5 -5 Sources o f f u n d s Other Total sources Net change i n deposits Other ( I n m i l l i o n s of d o l l a r s ) 761 20,951 855 23,039 24,768 910 26,709 1 , 0 0 1 28,922 1,110 35,168 37,779 38,912 40,573 42)835 31,695 34,041 34,983 36,353 38,404 3,473 3,738 3,959 4,220 4,431 179 156 160 137 124 132 -12 33 31 -37 42 -12 32 192 163 ^283 65 218 -54 80 197 -187 -27 340 86 112 . -34 -96 92 -122 159 116 150 129 161 169 159 206 196 168 171 157 -12 43 41 -21 63 -59 42 6 14 -25 13 -14 -11 167 319 -132 176 178 118 223 233 -31 154 237 -68 50 320 -95 58 221 21 105 278 56 39 385 57 117 -1 -37 118 -43 97 118 -1*5 -87 115 -148 170 63 161 106 17 233 -5 3 -49 26 136 136 272 21 140 100 -15 204 404 351 46 -1 29 53 117 9 -100 -2 -216 -11 176 -154 -51 -54 -51 148 2# 1 187 30 27 30 -13 4^3/ 3672/ -149^ 218 201 -23 22 32 27 -41 141 -28 164 201 23 -26 2 -2 18 July 232 6 1 207 133 99 Aug. 54 -23 -14 220 310 Sept. -90 1 156 46 -15 -19 k? -15 -120 178 -74 Oct. -5b -44 -59 -27 -5 161 48 46 167 133 -20 Nov. -13 -5 7 388 Dec. 219 1 3 294 -11 -9 ?2 -?k • 1 / Uses of f u n d s r e p r e s e n t n e t cxjanges i n a s s e t s and t h e r e f o r e r e f l e c t n e t , r a t h e r than g r o s s , u s e s . 2 / I n c l u d e s Canadian government and p o l i t i c a l s u b d i v i s i o n s , I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and Development, nonguaranteed F e d e r a l agency and o t h e r bonds a s w e l l a s c o r p o r a t e bonds and s t o c k . Source. — N a t i o n a l A s s o c i a t i o n o f Mutual S a v i n g s Banks and Federal D e p o s i t Insurance Corporation. 3 / Conforming t o FDIC r e d e f i n i t i o n , *>115 m i l l i o n o t i . e r l i s b i l . r e c l a s s i f i e d a s d e p o s i t s . 1 9 6 1 - Jan. Feb. Mar. Apr. May