Full text of H.16 Capital Market Developments : March 9, 1964
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Not f o r P u b l i c a t i o n DECONTBOUSD AOTEB SIX MOUTHS H.14 \ \t! ... - ' ' X ^ March 9 , 1964. \VCAPITAL MARKET DEVELOPMENTS IN THE UNITED STATES l u d i n g S o u r c e s 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 D u r i n g 1963) 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 r e l a t i v e l y l i g h t volume l a s t w e e k , b u t w i l l b e i n f a i r l y s u b s t a n t i a l volume t h i s week. L a s t w e e k , ended M a r c h ^ & f t l o l a r g e c o r p o r a t e i s s u e s w e r e o f f e r e d , b u t t h r e e l a r g e S C a t e and l o c a l g o v e r n m e n t bond i s s u e s a m o u n t i n g t o $76 m i l l i o n w e r e s o l d . T h i s w e e k , e n d i n g March 1 3 , new c a p i t a l f i n a n c i n g e x p e c t e d i n c l u d e s f o u r l a r g e c o r p o r a t e i s s u e s w i t h g r o s s p r o c e e d s a g g r e g a t i n g $122 m i l l i o n and one $50 m i l l i o n S t a t e and l o c a l i s s u e . I n a d d i t i o n , t h e J a c k s o n v i l l e Expressway A u t h o r i t y , F l o r i d a , h a s a $135 m i l l i o n bond i s s u e on t h e c a l e n d a r ; $67 m i l l i o n of t h i s i s s u e w i l l b e u s e d f o r t h e a d v a n c e r e f u n d i n g of a s i m i l a r amount of b o n d s f i r s t c a l l a b l e i n 1967 and t h e r e m a i n d e r w i l l p r o v i d e new c a p i t a l . Bond y i e l d s . Y i e l d s on m o s t s e a s o n e d , l o n g - t e r m b o n d s i n c r e a s e d l a s t week. Y i e l d s i n A a a - r a t e d S t a t e and l o c a l g o v e r n m e n t bonds r o s e t h r e e b a s i s p o i n t s t o 3 . 1 2 p e r c e n t ; t h i s was t h e h i g h e s t l e v e l s i n c e e a r l y l a s t December, b u t s t i l l s i x b a s i s p o i n t s below t h e l a t e November h i g h . L o w e r - g r a d e m u n i c i p a l y i e l d s a d v a n c e d two b a s i s p o i n t s to 3.57 per c e n t , matching t h e i r high f o r the year. A a a - r a t e d c o r p o r a t e bond y i e l d s and t h o s e on U. S . Government b o n d s edged up one b a s i s p o i n t e a c h t o 4 . 3 6 and 4 . 1 6 p e r c e n t , r e s p e c t i v e l y , with the l a t t e r at the previous high f o r the year. Y i e l d s on B a a r a t e d c o r p o r a t e bonds w e r e s t a b l e . 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 . R a t e s on 3 - m o n t h T r e a s u r y b i l l s w e r e u n c h a n g e d l a s t w e e k , b u t t h o s e on 6 - m o n t h b i l l s r o s e two b a s i s p o i n t s f u r t h e r t o 3 . 7 4 p e r c e n t , t h e h i g h e s t l e v e l s i n c e t h e w i n t e r of 1960. Y i e l d s on 3 - 5 y e a r U. S. Government obligations increased f i v e basis points to 4.10 per cent, the highest s i n c e J u n e 1960. R e f l e c t i n g t h e f u l l e f f e c t of t h e a d v e r t i z e d r a t e c h a n g e t h e p r e v i o u s w e e k , t h e a v e r a g e r a t e on d i r e c t l y - p l a c e d f i n a n c e company p a p e r w i t h 9 0 - 1 7 9 day m a t u r i t y i n c r e a s e d 10 b a s i s p o i n t s t o 3.88 per cent, equaling the high f o r the year. The a v e r a g e e f f e c t i v e F e d e r a l f u n d s r a t e , h o w e v e r , d r o p p e d 30 b a s i s p o i n t s t o 3 . 2 0 p e r c e n t . Other r a t e s were unchanged. Mortgage r e c o r d i n g s . S e a s o n a l l y a d j u s t e d nonfarm r e c o r d i n g s of $ 2 0 , 0 0 0 o r l e s s c h a n g e d l i t t l e i n November, t h e l a t e s t month a v a i l a b l e on a t h r e e - m o n t h moving a v e r a g e b a s i s . The m o n t h l y r a t e of $ 3 , 1 4 9 m i l l i o n c o n t i n u e d 7 p e r c e n t a b o v e a y e a r e a r l i e r and w i t h i n 2 p e r c e n t of t h e h i g h i n A u g u s t . H. 14 S t o c k p r i c e s . Common s t o c k p r i c e s advanced m o d e r a t e l y f u r t h e r l a s t week i n a c t i v e t r a d i n g . 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 500 s t o c k s , i n c r e a s e d one-haL, of one p e r c e n t t o c l o s e a t an a l l - t i m e h i g h of 78.31 on March 6, T r a d i n g volume averaged 5 . 3 m i l l i o n " s h a r e s a d a y , s l i g h t l y l e s s t h a n t h e p r e v i o u s week. S o u r c e s 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 d u r i n g 1963. December f l o w s The n e t i n f l o w of s a v i n g s d u r i n g December a t t h r e e m a j o r t y p e s of f i n a n c i a l i n t e r m e d i a r i e 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 mutual s a v i n g s b a n k s - - t o t a l e d a r e c o r d $ 3 . 0 b i l l i o n , 3 p e r c e n t more t h a n a y e a r e a r l i e r . M o d e r a t e l y l a r g e r i n f l o w s t h a n a y e a r e a r l i e r of b o t h s a v i n g s c a p i t a l a t 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 d e p o s i t s a t mutual s a v i n g s banks more t h a n o f f s e t a s m a l l e r growth i n a s s e t s of l i f e i n s u r a n c e companies. (Time and s a v i n g s d e p o s i t s a t commercial banks a r e e s t i m a t e d t o have r i s e n $2.3 b i l l i o n between t h e end of November and December 31, 8 ,;cr c e n t more t h a n i n t h e same month of 1962.) Annual f l o w s I n f l o w a t t h e s e t h r e e m a j o r t y p e s of f i n a n c i a l i n s t i t u t i o n s d u r i n g 1963 amounted t o a r e c o r d $22 m i l l i o n , 17 p e r c e n t more t h a n t h e p r e v i o u s peak s e t i n 1962. Growth a t a l l t h r e e t y p e s of i n s t i t u t i o n s was i n r e c o r d volume and s h a r p l y l a r g e r than i n t h e p r e v i o u s y e a r ; t h e l a r g e s t g a i n s were i n a s s e t s of l i f e i n s u r a n c e companies and s a v i n g s c a p i t a l a t s a v i n g s and l o a n a s s o c i a t i o n s . I n f l o w s t o s a v i n g s and lo a n a s s o c i a t i o n s and mutual s a v i n g s banks slowed somewhat l a t e i n t h e y e a r , and second h a l f f l o w s were s m a l l e r t h a n i n t h e f i r s t s i x months. Time and s a v i n g s d e p o s i t s a t commercial banks i n c r e a s e d an e s t i m a t e d $14.6 b i l l i o n i n 1963, 6 p e r c e n t l e s s than t h e 1962 p o s t w a r r e c o r d . Moreover, passbook s a v i n g s - # - t h e t y p e most n e a r l y comparable t o s a v i n g s a t mutual s a v i n g s banks and s a v i n g s and loa n a s s o c i a t i o n s a c c o u n t e d f o r o n l y a b o u t t w o - f i f t h s of l a s t y e a r ' s g a i n s , compared w i t h o n e - h a l f of t h e l a r g e r 1962 t o t a l . L i f e i n s u r a n c e companies A s s e t s of l i f e i n s u r a n c e companies r o s e a r e c o r d $ 7 . 7 b i l l i o n i n 1963, 19 p e r c e n t more t h a n i n t h e p r e v i o u s y e a r . About e i g h t - t e n t h s of t h e y e a r - o v e r - y e a r i n c r e a s e of $ 1 . 3 b i l l i o n , however, r e f l e c t e d changes i n t h e v a l u a t i o n of a s s e t s ( p r i n c i p a l l y common s t o c k s ) ; i n 1963 u n r e a l i z e d c a p i t a l g a i n s amounted t o about $ 0 . 6 b i l l i o n , whereas u n r e a l i z e d l o s s e s a y e a r e a r l i e r were about $ 0 . 4 . The 1962-63 i n c r e a s e a f t e r a d j u s t m e n t f o r t h e s e v a l u a t i o n changes was l e s s t h a n 5 p e r H. 14 -3- Expansion i n h o l d i n g s of b u s i n e s s s e c u r i t i e s t o t a l e d $2.6 b i l l i o n l a s t y e a r , 14 p e r c e n t more t h a n t h e p r e v i o u s y e a r , b u t s l i g h t l y l e s s t h a n t h e r e c o r d 1961 g a i n . Net a c q u i s i t i o n s of domestic c o r p o r a t e d e b t amounted t o a r e c o r d $ 2 , 1 . b i l l i o n ( i n c l u d i n g o n l y $40 m i l l i o n i n s h o r t - t e r m commercial and f i n a n c e company p a p e r , compared w i t h $155 m i l l i o n i n 1962) , up 8 p e r c e n t from t h e r e c o r d of t h e p r e v i o u s y e a r ; h o l d i n g s of common and p r e f e r r e d s t o c k s i n c r e a s e d $0.5 b i l l i o n , t w o - f i f t h s more t h a n t h e p r e v i o u s y e a r , b u t o n e - t h i r d l e s s t h a n t h e r e c o t d 1961 g a i n . Mortgage a c q u i s i t i o n s amounted t o $3.6 b i l l i o n , n e a r l y o n e - t h i r d more than i n t h e p r e v i o u s y e a r and about t h e same as t h e 1956 p e a k . Holdings of U. S. Government s e c u r i t i e s were reduced $ 0 . 4 b i l l i o n , i n c o n t r a s t t o a $ 0 . 1 b i l l i o n i n c r e a s e - i n 1962, and S t a t e and l o c a l government s e c u r i t y h o l d i n g s were c u t back $0.2 b i l l i o n , a l s o i n c o n t r a s t t o a moderate i n c r e a s e t h e p r e v i o u s y e a r . A c q u i s i t i o n of f o r e i g n c o r p o r a t e bonds ($0.3 b i l l i o n ) were n o m i n a l l y l e s s t h a n i n 1962, w h i l e f o r e i g n government bond a c q u i s i t i o n s ( $ 0 . 4 b i l l i o n ) were m o d e r a t e l y l a r g e r ; v i r t u a l l y a l l of t h e s e a c q u i s i t i o n s ( i n c l u d e d i n o t h e r a s s e t s ) took p l a c e p r i o r t o t h e p r o p o s a l f o r an i n t e r e s t e q u a l i z a t i o n t a x on f o r e i g n s e c u r i t i e s , Savings and l o a n a s s o c i a t i o n s . Growth i n s a v i n g s c a p i t a l a t s a v i n g s and l o a n a s s o c i a t i o n s amounted t o a r e c o r d $11 b i l l i o n l a s t y e a r , 17 p e r c e n t l a r g e r than i n 1962. V i r t u a l l y a l l of t h i s g a i n over 1962, however, took p l a c e d u r i n g t h e f i r s t h a l f of t h e y e a r when t h e n e t i n f l o w of s a v i n g s c a p i t a l was over o n e - t h i r d l a r g e r t h a n i n t h e comparable p e r i o d a y e a r e a r l i e r ; n e t i n f l o w s d u r i n g t h e l a s t h a l f of t h e y e a r were about t h e same as i n 1962. Mortgage a c q u i s i t i o n s , a t $ 1 2 . 1 b i l l i o n , were a l s o i n r e c o r d volume and o n e - f i f t h more t h a n i n t h e p r e v i o u s y e a r . The i n c r e a s e i n c a s h and U. S. Government s e c u r i t y h o l d i n g s ( $ 0 . 9 b i l l i o n ) , however, was m o d e r a t e l y l e s s t h a n i n 1962. I n o r d e r to f i n a n c e t h e l a r g e r i n crease in investments than in savings c a p i t a l , these a s s o c i a t i o n s borrowed a r e c o r d $ 1 . 4 b i l l i o n , c l o s e t o t w i c e as much- as i n t h e previous year. Mutual s a v i n g s b a n k s . D e p o s i t s a t mutual s a v i n g s banks r o s e a r e c o r d $ 3 . 6 b i l l i o n l a s t y e a r , 9 p e r c e n t more t h a n i n 1962. As i n t h e c a s e of s a v i n g s and loa n a s s o c i a t i o n s , a l l of t h i s i n c r e a s e d growth o c c u r r e d d u r i n g t h e f i r s t h a l f of t h e y e a r ; t h e d e p o s i t g a i n d u r i n g t h e l a s t h a l f of t h e y e a r was 4 p e r c e n t l e s s t h a n d u r i n g t h e c o r r e s p o n d i n g p e r i o d of 1962. Mortgage h o l d i n g s r o s e a r e c o r d $3.9 b i l l i o n , o n e - f o u r t h more t h a n i n t h e p r e v i o u s y e a r , w h i l e t h e n e t r e d u c t i o n i n h o l d i n g s of S t a t e and l o c a l government s e c u r i t i e s ($80 m i l l i o n ) was o n l y about oneh a l f t h a t of t h e p r e v i o u s y e a r . Cash and Government s e c u r i t y h o l d i n g s and t h o s e of b u s i n e s s and m i s c e l l a n e o u s s e c u r i t i e s , however, were reduced $ 0 . 3 and $ 0 . 1 b i l l i o n , r e s p e c t i v e l y , i n c o n t r a s t t o small n e t a c q u i s i t i o n s d u r i n g 1962. -4- H. More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g 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. Sources and Uses of Funds of Major Types of Savings I n s t i t u t i o n s V 1955-1963 ( 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 Business Mortgages ities ities U. S. State & Other local govt, sec. Total sources Sources of fund Net change i n d e p o s i t s Borrowor s a v i n g s ing capital L i f e I n s u r a n c e Companies 1963 1962 r / » ' i . j * - 1961 1960 1959 1958 1957 1956 1955 31 64 63 22 -56 69 14 18 55 -434 36 -293 -430 -324 154 -526 -1,026 -476 2 ,568 2 ,261 2 ,629 2 ,025 2 ,289 2,,479 2.,495 1,,972 2 j,126 3 ,563 2 ,707 2 ,435 2 ,578 2.,145 1.,821 2.,241 3 j,569 3 3,497 -184 135 296 385 530 314 124 236 165 2 ,190 1 ,272 2 ,110 1 ,346 1.,486 1.,434 950 808 832 7 ,734 6 ,475 7.,240 5.,926 6 ;,070 6.,271 5, ,298 5, ,577 6, 199 Savings and Loan A s s o c i a t i o n s i 1963 1962 r / 1 1961 1960 1959 1958 1957 1956 1955 •i i 1963 1962 *5 1961 1960 1959 1958 1957 1956 1 1955 t i 38 611 635 497 -402 439 27 52 92 . 877 352 616 118 658 646 391 440 325 -- 12 ,079 9 ,936 8 ,764 6 ,929 7 ,514 5 ,578. 4 ,278 4 ,268 5.,300 n.a. 3 3,911 3, ,155 2, ,206 1, 941 1, 868 2 , 088 1, 422 2 , 284 2 , 429 -80 -149 5 50 -2 43 13 32 37 832 571 644 402 621 338 571 408 320 13,826 11,470 10,659 7,946 8,391 7,001 5,263 5,156 6,023 10,969 9,351 8,743 7,559 6,607 6,064 4,764 5,006 4,890 1,382 773 661 -190 943 65 32 -211 596 1,475 1,346 1,255 577 841 872 467 361 537 Mutual Savings Banks -47 r / 129 -44 43 -70 31 -30 -45 -61 -259 -47 -103 -625 -340 -286 -419 -489 -288 -83 135 -27 231 -81 642 808 177 -178 119 60 220 91 107 94 63 78 57 ^ r / Revised. n.a.--Not available. y U For d e s c r i p t i o n of d a t a Bee E x h i b i t s N, 0 , and P. 3,557 3,285 2,260 1,631 1,483 2,611 1,857 2,037 1,998 3,253 2,973 r/2,020 r/1,370 1,234 2,346 1,663 1,845 1,828 304 314 r/240 261 249 265 194 192 170 -6- Sources and Uses of Funds of Major Types of Savings I n s t i t u t i o n s 1/ Fourth Quarter 1955-1963 (In m i l l i o n s of d o l l a r s ) Year Cash U.S. Govt. ities Uses of funds State & Busil o c a l Other Mortness govt, a s s e t s gages sec. ities Total sources Sources of funds Net change i n d e p o s i t s BorrowOther ing or s a v i n g s capital L i f e I n s u r a n c e Companies 104 167 83 147 152 148 143 198 113 -69 -160 -293 -147 -318 -112 -260 -280 -584 652 377 837 703 617 754 714 414 707 1 ,310 1 ,233 823 696 784 622 539 884 1 ,175 -16 -47 80 77 56 70 33 22 15 ' 158 595 253 550 494 123 187 312 2,139 2,157 2,125 1,729 1,841 1,976 1,292 1,425 1,738 __ Savings and Loan A s s o c i a t i o n s 581 889 603 600 363 270 499 396 453 95 75 166 55 -43 192 -47 50 15 63 104 -40 85 104 55 107 85 48 -222 -207 -154 -266 -378 -126 -298 -235 -197 n.a. -- 2 ,916 2.,532 2.,313 1.,683 1,,557 1,,603 949 862 813 n.a. -85 26 -71 87 -60 41 228 11 -45 1, 016 813 557 496 393 520 365 526 605 -7 .-36 -11 -16 -52 -11 -3 4 -15 __ 281 105 257 182 159 186 142 128 153 3,873 3,601 3,339 2,520 2,036 2,251 1,541 1,433 1,431 3 ,333 3 ,327 2 ,998 2 ,597 2,,085 2.,059 1 ;,662 L ,604 1.,595 803 470 569 309 414 311 151 83 143 -263 -196 -228 -386 -463 -119 -272 -254 -307 Mutual Savings Banks -37 22 119 -26 -7 -6 -12 -4 6 £ / Preliminary. n. a . - - N o t a v a i l a b l e . 1/ For d e s c r i p t i o n of d a t a s e e E x h i b i t s N, 0, and P. 728 733 399 360 472 387 387 399 877 878 504 480 126 555 475 511 464 -- --- -149 -145 •105 -120 . -12: 83 38 124 65 i LONG-TERM BOND YIELDS, HIGH-GRADE V \ STATE AND 1 0 C A I G O V f B N M t N T A a « E x h i b i t A - Part I I Corporate Aaa 1/ U . S . Govt, long-term 2 / S t a t e and local government Aaa 3 / Spread between U. S . Govt, and S t a t e and Corporate Aaa l o c a l Aaa (per cent) 1 9 5 9 - 6 0 - High 1 9 6 1 - High Low 1962 - High Low 1963 - High Low 196k - High Low 4» 61(1/29/60) 4.46(9/15) *1.21(3/17) 4.43(2/16) U.23(12/2^ 4.37(12/27) L.19(V29) 4.38(1/24) 4.35(2/28) 4 . 4 2 (1/8/60) a . 0 7 (12/29) 3 . 7 0 (5/12) 4.12(2/23) 3.85(12/28) 4 . 1 6 (12/27) 3.87(1/18) 4.16(3/6) 4.14(2/21) 3.65 3.37 3.12 3.26 2.88 3.18 2.93 Feb. Feb. Feb. Feb. Mar, 4.36 4.36 4.36 4.35 4.36 / 4.14 4.14 4.14 4.15 4.16 7 14 21 28 6 j>/ . (9/24/59) (7/6) (2/23) (1/4) (li/e) (11/21) (3/28) .59 .57 .34 .47 .30 .35 .21 .92 .76 .46 1.04 .80 1.05 .88 3.12(3/5) 3.07(2/20) .23 .20 1.08 1.04 3.08 3.08 3.07 3.09 3.12 .22 .22 .22 .20 .20 1.06 1.06 1.07 1.06 1.04 p / Preliminary. Xr Weekly average of d a i l y figures* Average term of bonds included i s 22-24 y e a r s . Weekly average of d a i l y f i g u r e s . The s e r i e s includes bonds due o r callable i n 10 years o r more. Thursday f i g u r e s . Only general obligation bonds are included* average term i s 20 y e a r s . Note .——Highs and lows are f o r individual s e r i e s and may be on d i f f e r e n t dates f o r d i f f e r e n t s e r i e s . For spreads, high r e f e r s t o w i d e s t , and loir t o narrowest# L O N G - T E R M B O N D YIELDS, L O W E R - G R A D E .1 J IJ.i.LLJ-U Exhibit B - Part I I Date Corporate Baa 1 / State and l o c a l govt. Baa 2 / Spread between Aas and Baa S t a t e and Corporate l o c a l govt. " (per cent) 1959-60 - High 1961 - High Low 1962 - High Low 1963 - High - Low 1964 - High Low Feb. Feb. Feb. Feb. , Mar. 7 14 21 28 6 jj/ 5.3^(2/12/60) 5.13(10/27) 5.00(4/21) 5.11(1/5) 14.92(12/21) 4.93(3/4) U.83(31/15) 4.84(1/17) 4.82(2/7) li.U6 (3/7/60) 4.16(3/23) 3.93(11/9) Oil (3/11) 3.52(5/17) 3.63(6/27) 3.52(5/23) 3.57(3/5) 3.53(2/7) .84 .81 .66 .74 .63 .71 .48 .48 .45 1.08 .93 .57 .82 .56 .63 .44 .49 .45 4.82 4.83 4.83 4.83 4.83 - 3.53 3.54 3.55 3.55 3.57 .46 .47 .47 .48 .47 .45 .46 .48 . 46 .45 Note* For footnotes see Exhibit JU S H O R T - A N D INTERMEDIATE-TERM INTEREST RATES, G O V E R N M E N T 3-5 YEAK ISSUES Date Discount rate y • 1959-60 - High U.00 3.00 " 1961 - High 3.00 Low 3.00 "1 1962 - High 3.00 Low 3.50 '} 1963 - High Low 3.00 3.50 ; 196k - High t Lew 3.50 :Feb. Feb. ' Feb. . Feb. '/Mar. 7 14 21 28 6 £/ 3.50 3.50 3.50 3.50 3.50 3-month bills 2/ Yields 6-month , bills 2/ (per c e n t ) 3 - 5 year issues 2/ 1.81 5.00(12/24/59) ll.59(l/8/60) 2 . 66 {12/29) 2.17 (V27) 2.97(7/13) 2.65(6/8) 3.55(11/15) 2.88(3/15) 3.56(3/6) 3.50(1/31) 2.35(4/28) 3.13(7/20) 2 0 7l|(6/8) 3.68(1^/6) 2.93(3/8) 3.74(3/6) 3.61(1/31) 3.15(5/12) 3.88(2/2) з.1il(l%/28) и.07 (12/27) 3.a(l/ifl) 4.10(3/6) 3,99(2/7) 3.51 3.52 3.53 3.56 3.56/ 3.63 3.66 3.68 3.72 3.74 3.99 4.00 4.02 4.05 4.10 , V jy Spread between y i e l d s on 3 month b i l l s and y i e l d s on 6-mo. b i l l s | 3 - 5 y r . i s s u e s 3.86(8/11) .11 1.51 .92 1.19 .52 .70 .k2 .55 .48 .12 .14 .15 .16 .18 .48 .48 .49 .49. .54 .12 .2lt .02 .17 .Oli .18 Weekly rate shown i s that i n e f f e c t a t ezd of period at the Federal Reserve Bank of New Yorka Market yield; weekly averages computed from daily closing bid prices. Series of 3-5 year issues consists of selected notes and bonds, • Note.—Highs and lows are f o r individual series and nay be on different dates for different series* For spreads, high refers to widest, and low t o narrowest. SHORT- AND INTERMEDIATE- TERM INTEREST RATES, BANKS AND OTHER PRIVATE BORROWERS Exhibit D - Part I I Date Stock exchange c a l l loan l / Prime rate 1/ F i n a n c e company paper 2 / Federal funds 3/ Spread between 3-mo. b i l l s and finance co. paper 1.02 .56 .11 .U5 .19 .39 .12 .34 .22 [per c e n t ) 1959-60High 1961 - High Low 1962 - High Low 1963 - High Low 1961 - High Low 5.50 U.50 u.50 U.50 U.50 U.50 U.50 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) 3.88(3/6) 3.75(2/21) U.00 (5/13/60) 2 . 9 0 (11/17) •U3 (V27) 3 . 0 0 (12/28) 1 . 3 0 (1/26) 3*50 (12/27) 2.U5 (7/26) 3.50(2/28) 3.20(3/6) Feb. Feb. Feb. Feb. Mar. 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 3.75 3.75 3.75 3.78 3.88 3.50 3.50 3.40 3.50 3.20 V 7 14 . 21 28 6 g/ .24 .23 .22 .22 .32 Weekly rate shown i s that i n e f f e c t at end of period. Stock Exchange c a l l loan rate i s going rate on c a l l lpans secured by customers* stock exchange c o l l a t e r a l at New York City banks. Prime rate i s that charged by large banks on short-term loans to business borrowers of the highest c r e d i t Z j Average^of daily rates published by finance oompanies f o r d i r e c t l y placed paper f o r varying maturities i n the 90-179 day range* 3 / Weekly average of daily e f f e c t i v e r a t e , which i s the rate f o r the heaviest volume of purchase and sale transactions as reported t o the f e d e r a l Reserve Bank of Jfcw York. Noter—Highs and lows are f o r individual series and may be on d i f f e r e n t dates f o r d i f f e r e n t series* Digitized for Tor FRASER spreads, high r e f e r s t o widest, and low to narrowest* STOCK MARKET 1 j w / / - — ^ r v S l O t K MARKET CREDIT ^ " ^ C H A N G E IW SERIES Millions ol s h o VIII MM! l.LLU 1 .1111111.11 1 1 1- I I II I I I 1 I J ^ mi Exhibit E - P a r t I I Date Trading Common volume 3 / stock yields 2/ (millions (per c e n t ) of s h a r e s ) Stock p r i c e index 1/ 2.80 1961-62 - High Low 1963 - High 196k - High Low 7b.Wi(i%/2%) 78.31(3/6) 75.50(1/3) January February Feb. 21 Feb. 28 Mar. 6 g / 76.45 77.37 77.62 77.80 78.31 3.96 3.01 3.03 3.09 c/ cj 3.06 3.05 3.04 3.06 3.04 10.1 2.u 6.5 6.1 4.3 Stock market customei r c r e d i t Customers' Bank Total {debit b a l loans to jances h / "others" 5 / (In millions of dollars) 5,602(12/61)14,259(12/61) U,U2U(V61) 3,25312/61) 7,298(11/63)5,586(11/63) 7,250(1) 5,524(1) 5.3 4.6 4.6 7,250 n.a. n.a. 5.2 n.a. 5,524 1,1*18(5/9/62) 1,161(3/8/61) 1,738(12/25) 1,741(2/12) 1,720(1/22) 1,726 1,736 1,736 1,736 " " • n.a.—Not available. p7 Preliminary. 1/ Standard and Poor's composite Index of 500 oenmon stocks, weekly closing prices, 1941-43*10* Monthly data are averages of daily figures rather than of Friday's only. Highs and lows are f o r Friday's data only. 2\J Standard and Poor's composite stock yield based on Wednesday data converted to -weekly closing prices by Federal Reserve. Yields shown are f o r dates on Tftioh price index reached i t s high 3 / Averages of daily trading volume on the Hew York Stock Exchange. 4 / End of month figures f o r nember firms of the New. York Stock Exchange which carry margin accounts; excludes balances secured by U. S. Government obligations. 5/ Wednesday figures f o r weekly reporting member banks. Excludes loans f o r purchasing or carrying U . S . Government s e c u r i t i e s . Weekly reporting banks account f o r about 70 per cent of loans to others. For f u r t h e r d e t a i l see Bulletin, MORTGAGE Monthly RECORDINGS " AND LOANS J y B i l l i o n s of d o l l c I960 1941 1962 Exhibit F - Part II Seasonally a d j u s t e d 2/ Unadjusted Average s i z e of recordings (1959 = 100) 3 / Unadjusted Other ( M i l l i o n s of d o l l a r s ) 1962 - Dec. .1963 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 2,916 2,876 2,869 2,907 2,986 3,066 3,121 3,183 3,213 3,189 3,134 3,149 2,682 2,658 2,424 2,751 3,065 3,233 3,177 3,515 3,525 3,177 3,534 2,880 2,987 429 504 400 416 392 415 419 511 508 505 568 445 487 236 254 202 219 245 260 226 265 278 267 316 258 255 2,017 1,900 1,822 2,116 2,428 2,558 2,532 2.738 2.739 2,404 2,650 2,177 2,245 110.2 109.8 108.7 110.4 110.6 111.7 112.8 112.6 113.5 111.2 111.5 110.7 111.3 n.a.—Not available. 1/ Total recordings data are estimates based on reports from about 450 areas and include mortgages of $20,000 or lass secured by nonfarm r e a l e s t a t e , primarily r e s i d e n t i a l properties. FHA-insured loans represent gross amount of insurance written, and VAguaranteed loans the gross amount of loans closed, on 1-4 family bouses. Other recordings data are derived as a residual, although t o t a l recordings aid VA and FHA loans are not s t r i c t l y comparable in concept or timing* 2/ Three-month moving average, seasonally adjusted by Federal Reserve. ]y This index r e l a t e s the average size of mortgage recordings f o r each month ( t o t a l d o l l a r recordings divided by number of mortgage recordings) to the average size during 1959. .—Federal Home Loan Bank Board, Federal Housing Administration and Veterans Administration. Digitized Source for FRASER EXHIBIT G. P a r i I YIELDS O N N E W A N D S E A S O N E D C O R P O R A T E B O N D S A d| u s I e d I o A a a B a NtW ISSUES Exhibit 6 • Part II Y i e l d s o n New C o r p o r a t e Bond I s s u e s A d j u s t e d t o a n Aaa b a s i s Number A m r t o f I s s u e s A v e r a g e of included (mil. yield (per cent) of d o l l a r s ) Weekly a v e r a g e s : 963 - O c t . 4 11 18 25 Nov. 1 - 8 15 22 29 13 20 27 964 - J a n . 3 in Number A i n ' t o f i s s u e s A v e r a g e included ( o i l . yield of (per cent) of d o l l a r s ) Jan. 2 33.5 1 2 1 1 4 40.0 75.0 30.0 22.0 . 115.0 17 24 31 Feb. 7 14 21 28 4.32 4.37 4.35 4.41 4.21* 4.42 1 1 5.0 15.0 4.44 4.41 1 1 1 15.0 50.0 60.0 4.33 4.30 4.34 Mar. 6 -- 2 2 1 60.0 95.0 150.0 -- -- .1 4.41 4.45 4.54* 130.0 • • 4,50 A by Moody's I n v e s t o r s Service (except s e r i a l and convertible la sues, 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 bonds guaranteed by the Federal Government) weighted by a l a e of o f f e r i n g . Before averaging, new o f f e r i n g s a r e adjusted to a composite Aaa basis by deducting from t h e a c t u a l r e o f f e r i n g y i e l d the excess of t h e weekly average y i e l d f o r seasoned tends of the appropriate i n d u s t r y q u a l i t y group over t h e composite average f o r seasoned Aaa-rated bonds (Moody's). Averages considered u n r e p r e s e n t a t i v e because or s p e c i a l c h a r a c t e r i s t i c s of the o f f e r i n g s included are denoted by an a s t e r i s k . H. 14 Exhibit H Long-term C o r p o r a t e 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 ) New C a o i t a l C o r o o r a t e 1/ 1964 1 1963 732 7 l+,) 97' 876 1,133 628 1,113 760 1,132 £/ £/ £/ 869 86 930 873 912 786 676 /637 795 582 749 579 £/ £/ £/ 6 30 708 449 612 544 427 1,013 819 1,415 835 703 1,103 £/l,051 £/ 729 pA 416 650 578 550 2,351 2,847 2,109 3,246 2,258 3,005 1,910 2,641 £/2,454 £ / 2 , 6 65 2/1,837 jg/2,1-9 7 2,637 2,571 1,582 1,779 5,198 7,307 10,553 5,264 7,173 9,814 £/5, US £ / 6 , 9 55 2 / 3,151 5,208 6,790 8,568 930 904 1,013 July : August September October . November December April May June 1st 2nd 3rd 4th e/2,200 quarter quarter quarter quarter 1st half Three q u a r t e r s Year S t a t e and Local 2/ 1962 1 1963 1 £/ £/ £/ 592 859 807 750 700 750 1964 1962 613 594 1,144 e/ e/ e/ January February . 1 e/ e/ e/ 950 750 850 e/2,550 E x c l u d i n g f i n a n c e companies 3 / 1st 2nd 3rd 4th e/1 ,950 quarter quarter quarter quarter Year 2,284 2,529 1,768 2,854 2,199 2,919 1,775 2,410 9,434 9,303 l ]>/ 1/ 2/ 3/ Preliminary. 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 p r o c e e d s . I n v e s t m e n t 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 e x c l u d i n g 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. 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 n e t c a p i t a l and r e f u n d i n g 1/ Common Foreign Total Publicly Privately pfd. o f f e r e d offered included Net p r o c e e d s f o r new c a p i t a l 1/ 2/ Mfg. P u b l i c CommuniOther u t i l i t y 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 1,095 104 147 832 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 13 384 270 342 217 218 \ 166 153 271 345 377 196 410 118 110 148 141 175 252 88 64 79 88 120 67 260 4 57 264 229 301 159 301 199 282 253 451 695 642 1,363 1,049 1,340 1,246 810 756 871 1,116 891 1,459 350 259 499 380 550 459 279 336 283 511 183 626 243 289 774 452 694 675 431 318 501 481 549 751 102 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 64 238 191 412 369 373 499 187 240 441 531 461 637 780 720 340 280 350 340 90 100 n. a . n.a. 170 150 100 160 130 80 350 310 July Aug. Sept. Oct. Nov. Dec. 1963 - J a n . Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. 1964 - J a n . e / Feb. e / Mar. ' 43 46 34 99 . jV P r e l i m i n a r y , e / E s t i m a t e d by F e d e r a l R e s e r v e . 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 / For t o t a l s e e E x h i b i t H; o t h e r i s s u e r s a r e e x t r a 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 for t a t i FRASER o n , r e a l e s t a t e and f i n a n c e and commercial and o t h e r . S o u r c e . — S e c u r i t i e s and Digitized Exchange Commission. H. 14 Other S e c u r i t y O f f e r i n g s ( I n m i l l i o n s of d o l l a r s ) Gross 1 1964 January February F o r e : En government 2 / | 1963 1 e/ -e / 50 April ' May July August September October November December J a n . - Feb. e / 50 April May. June July August September October November December J a n . - Feb. Year 1964 142 10 35 10 86 50 25 8 31 151 88 101 e / -*• e/ -- 365 152 3/ -- 771 737 2 Year January February 232 133 76 57 114 11 63 83 1962 347 454 692 375 1962 148 246 156 186 461 -- 459 --174 200 — Net s h o r t - t e r m 4/ S t a t e and l o c a l government 5 / 75 2./ - 6 1 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. F e d e r a l agency 3 / 1 1963 1 r / 34 | -- -150 175 -- 148 402 1,167 1,133 F e d e r a l 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 £ / P r e l i m i n a r y , e / E s t i m a t e d by F e d e r a l R e s e r v e , n . a . - - N o t a v a i l a b l e . 1/ These d a t a d i f f e r from t h o s e i n E x h i b i t H i n t h a t r e f u n d i n g i s s u e s , as w e l l as new c a p i t a l i s s u e s a r e i n c l u d e d . Long-term s e c u r i t i e s a r e d e f i n e d as t h o s e m a t u r i n g i n more t h a n one y e a r . 2/ I n c l u d e s s e c u r i t i e s o f f e r e d i n t h e U n i t e d S t a t e s by foreign—governments and t h e i r p o l i t i c a l s u b d i v i s i o n s and i n t e r n a t i o n a l o r g a n i z a t i o n s . S o u r c e : S e c u r i t i e s and Exchange Commission. 3/ I s s u e s n o t g u a r a n t e e d by t h e U. S. Government. S o u r c e : l o n g - t e r m , S e c u r i t i e s and Exchange Commission; s h o r t - t e r m , T r e a s u r y Department and F e d e r a l R e s e r v e . 4/ These d a t a d i f f e r from t h o s e i n E x h i b i t H and above i n t h a t they r e p r e s e n t new o f f e r i n g s l e s s r e t i r e m e n t s , w h e t h e r from t h e p r o c e e d s of r e f u n d i n g i s s u e s o r from o t h e r f u n d s . Data i n c l u d e o n l y i s s u e s w i t h o r i g i n a l m a t u r i t y of one y e a r or l e s s . 5/ P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , w a r r a n t s or c e r t i f i c a t e s and P u b l i c Housing A u t h o r i t y n o t e s . I n some i n s t a n c e s PHA n o t e s i n c l u d e d may have a somewhat l o n g e r m a t u r i t y t h a n one y e a r . S o u r c e : Bond Buyer and F e d e r a l R e s e r v e . (7 H. 14 Exhibit K Large Long-term P u b l i c 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 (Other t h a n U. S. T r e a s u r y ) JL/ 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 February March April May July August September October November December January February Total 186 394 409 149 348 199 236 237 446 180 . 547 307 263 Corporate Bonds Convertible (Other t h a n convertibles) 125 372 263 149 348 180 218 215 380 117 515 225 200 Stocks 26 22 146 35 —— —— 19 18 22 66 63 32 22 28 —— -— 60 35 State 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 I n d i v i d u a l I s s u e s O f f e r e d March 1 t h r o u g h 6 Issuer Type Amount (millions Maturity of dollars) „ Coupon r a t e or n e t interest cost OfferRating . ing yield Corporate S t a t e and Local Government L o u i s i a n a S t a t e Bond & Bldg. Comm. M i n n e a p o l i s , Minn. S t a t e of Kentucky G.O. C-.O. Other None 10.7 50.0 1965-89 1972-90 3.43 2.20-3.50 A 2.92 3.24 2.10-3.20 2.75-3.30 Aaa A u H.14 K-2 Footnotes *--Rights offering, n.a.—Not available. 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 $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 s e c u r i t y o f f e r i n g 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 . 3 / I n t h e 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 . , r e v e n u e o b l i g a t i o n s s e c u r e d o n l y by income from p u b l i c u t i l i t i e s ; R e v . - Q . U t . , r e v e n u e bonds s e c u r e d o n l y by revenue from q u a s i - u t i l i t i e s ; R e v . - S . T . , r e v e n u e 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 . , r e v e n u e bonds s e c u r e d s o l e l y by l e a s e payments. H. 14 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 ' N e w C a p i t a l (Other t h a n U. S. T r e a s u r y ) _1/ Expected Proceeds from Forthcoming Large I s s u e s Daring month f o l l o w i n g d a t a 2ho-,.Ti C o r p o r a t e S t a t e and Other 2 / l o c a l govt. 1963 - Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. 1964 - J a n . Feb. 28 29 30 31 28 31 31 30 31 29 31 31 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 -- 45 40 . 460 ?5 20 - - Subsequent t o d a t e shown. S t a t e and Corporate l o c a l govt. 755 763 599 582 287 512 468 757 401 349 731 667 646 572 421 234 288 215 267 183 240 145 1.,992 1,,905 1,,771 1,,649 Other 2 / - - 45 40 460 75 20 Forthcoming Large O f f e r i n g s , as of March 6 Issuer Type Amount (millions of dollars) Approximate d a t e of o f f e r i n g Corporate S o u t h w e s t e r n P . S . Co. Anheuser-Busch I n c . B e n e f i c i a l F i n a n c e Co. Potomac Edison Co. *Texas U t i l i t i e s Co. 1 s t mtg. b d s . Deb. Deb. 1 s t mtg. b d s . Com. s t k . 15.6 40.0 50.0 16.0 24.0 March March March March March 9 10 10 11 24 F l o r i d a Pwr & L t . Co. P e n n s y l v a n i a R a i l r o a d Co. ^National Airlines Inc. American T e l . & T e l . Corp. ^ P a c i f i c Tel. & TeL Co. *Xerox Corp. Communications S a t e l l i t e Co. 1 s t mtg. b d s . 35.0 50.0 Com. s t k . 31.9 Com. s t k . 1,225.0 Deb. 100.0 Conv. s u b . deb. 51.4 Com. s t k . 200.0 March March April April April ApriJ. April 26 1 ( r t s . ex.) 6 ( r t s . ex.) 22 28 ( r t s . e x . ) H. 14 L-2 Forthcoming Large O f f e r i n g s , as of March 6 ( C o n t ' d ) Issuer Type Amount (millions of dollars) Approximate d a t e of o f f e r i n g S t a t e and Local Government S t a t e of C o n n e c t i c u t J a c k s o n v i l l e Expressway Auth., Fla. C i t y of Tacomaj Wash. S a b i n e R i v e r A u t h . , New O r l e a n s , La. S a b i n e R i v e r Auth. of Texas. Orange, Tex. R o c h e s t e r , New York El Paso I n d . Sch. D i s t . , Tex. Los Angeles Dept. of Wtr. & Pwr., Cal. I l l i n o i s B l d g . , Auth, Delaware R i v e r & Bay Auth. F l o r i d a Dev. Comm. - P u b l i c Housing Au-k. M e t r o p o l i t a n S e a t t l e , Wash. D e t r o i t , Mich. *Nassau C o . , N. Y. Univ. of C a l i f o r n i a Washington Sub. San. D i s t . , Md. *New York S t a t e Housing F i n a n c e Agency P i t t s b u r g h , Pa. Dade. County, F l o r i d a F o r t Worth, Texas Houston, Texas G.O. Rev. - Q . U t . 50.0 68.0 March 10 March 12 Rev.-Ut. G.O. 50.0 15.0 March 17 March 24 G.O. 15.0 March 24 G.O. G.O. 12.6 10.0 March 24 March 24 Rev.-Ut. 22.0 March 25 Rev.-Ut. Rev.-Q.Ut. Rev.-Q.Ut. Bonds Rev.-Ut. G.O. G.O. Rev.-Rent. G.O. Rev.-Rent. G.O. G.O. G.O. G.O.. , 25.0 105.0 17.0 141.4 15.0 18.3 20.0 19.6 16.0 93.0 35.0 46.0 14.1 11.1 March March April April April April April April April April 25 1 1 2 7 14 15 30 Indefinite Indefinite Indefinite Indefinite Other None ^ - - I n c l u d e d in Table f o r f i r s t time. 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 of 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 : None. H. 14 Exhibit M Foreign Government and Corporate Security Offerings and Placements i n . t h e United S t a t e s PArt I: Sale Date Amount ( m i l l i o n s of dollarb) Issuer and Description of I s s u e A. 12/24 •2/6 Public Offerings Sold December 1 through , .-<*> d Province of Sante Fe, Republic of Argentina - 7 % Treasury bonds, maturing 1969, o f f e r e d to y i e l d 9.45% B.O Tubos de Acero de Mexico, S.A. - 7% c o n v e r t i b l e debenture, maturing 1970, o f f e r e d to y i e l d 7.00% B. Prospective O f f e r i n g s None H. 14 M-2 Part II: Date reported P r i v a t e P l a c e m e n t - - R e p o r t e d December 1 through Marc; (•. Amount ( m i l l i o n s of dollars) I s s u e r and D e s c r i p t i o n of I s s u e 1/7 14.0 Laurentide F i n a n c i a l Corp., Ltd. --5-1/47, c o l l a t e r a l t u r s t n o t e s , m a t u r i n g 1989--no i n f o r m a t i o n a v a i l a b l e on t a k e - 2/3 28.0 Manitoba H y d r o - E l e c t r i c B o a r d - - 4 - l / 4 % d e b e n t u r e s , m a t u r i n g 1986--no i n f o r m a t i o n a v a i l a b l e on takedown 2/3 5.0 S c o t t i s h United I n v e s t o r s , L t d . - - 5 % n o t e s , m a t u r i n g 1 9 6 9 - 7 9 - no ^ i n f o r m a t i o n a v a i l a b l e on takedown 2/10 8.0 B r i t i s h American C o n s t r u c t i o n C o . - - p r o m i s s o r y n o t e s , m a t u r i n g 1979--no i n f o r m a t i o n a v a i l a b l e on takedown 2/10 4.0 B r i t i s h Assets Trust Ltd. (Scotland)--5% n o t e s , maturing 1981--takedown i n F e b r u a r y Note: For r e t r o s p e c t i v e d a t a on a g g r e g a t e f o r e i g n c o r p o r a t e and government s e c u r i t y o f f e r i n g s i n t h e United S t a t e s s e e E x h i b i t s I and J . There i s no s i m p l e r e l a t i o n s h i p between t h e d a t a shown i n t h i s E x h i b i t and t h a t shown i n E x h i b i t s I and J b e c a u s e t h e l a t t e r i n c l u d e s p r i v a t e l y p l a c e d s e c u r i t i e s i n t h e p e r i o d i n which f u n d s a r e a c t u a l l y takendown b u t only i n t h e amount of takedown, w h i l e t h e p l a c e m e n t s shown i n t h i s e x h i b i t a r e i n c l u d e d when r e p o r t e d , f r e q u e n t l y w i t h l i t t l e o r no i n f o r m a t i o n c o n c e r n i n g t i m i n g of takedowns. F u l l or p a r t i a l takedowns may t a k e p l a c e b o t h p r i o r and s u b s e q u e n t t o t h e d a t e a p l a c e m e n t i s r e p o r t e d . ^--Included in t a b l e f o r f i r s t time. W M' 4 1 V $ Exhibit N Sources and Uses of Funds by L i f e I n s u r a n c e Companies Cash a l u e of a s s e t s t end of p e r i o d : 1959 - Dec. 1960 - Dec. 1961 - Dec. 1962 - D e c . r / 1963 - Dec. • •hanges: 1961 - J u l y Aug. Sept. Oct. Nov. Dec. 1962 - J a n . Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. r / £/1963 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. J V 7 1,307 1,329 1,392 1,456 J-, 442 Total sources U. S. Govt, securities Uses of Funds 1/ • S t a t e and B u s i n e s s s<a c u r i t i e s 2/ local govt, Commercial Long-term securbonds and and f i n a n c e ities company p a p e r ( I n m i l l i o n s of d o l l a r s ) 6,858 6,428 6,135 6,171 5,755 46,783 48,631 51,362 53,468 $5,997 118 295 193 348 381 3,221 3,606 3,902 4,037 3,876 39,237 41,815 44,250 46,957 5 16,126 17,472 19,582 20,354 :).,909 113,650 .119,576 126,816 133,201 140,903 70 110 -72 -30 23 16 -178 21 30 27 13 44 23 109 167 164 204 237 382 156 150 155 121 149 325 644 528 521 665 651 809 225 43 52 179 -53 -118 72 31 20 69 -40 -325 29 3 117 -15 -12 12 11 25 12 -21 -17 -9 145 149 100 114 60 143 27 119 -17 197 -14 198 148 139 149 237 87 178 29.6 r/15-9. 322 290 605 138, 737 442 356 457 360 209 681 603 473 m 771 707' 28 -8 -17 -27 -36 -19 -27 -19 -43 1 -4 -13 223 145 270 292 255 256 244 299 269 303 277 730 360 233 256 160 312 151 354 260 -54 242 4 -88 842 489 477 633 626 462 972 691 403 846 597 696 48 -23 15 30 40 13 -51 14 -46 -261 130 276 241 260 211 505 -99 1 -75 12 4 -22 58 -24 42 12 35 120 223 25 -76 91 -24 -95 121 -21 -48 28 36 -224* 65 156 135 44 265 248 132 206 182 136 135 40Z -128 -17 -73 -14 29 -1 54 -10 87 6 -21 119 123 -69 -211 -19 -162 -94 86 -33 14 5 -42 -32 52 159 233 160 367 219 156 106 186 225 274 391 184 46 19 81 -139 -50 105 88 -56 64 109 -411 M o r t - Other gages Uses of f u n d s r e p r e s e n t n e t changes i n a s s e t s and t h e r e f o r e r e f l e c t n e t , r a t h e r t h a n gross, uses. I n c l u d e s s e c u r i t i e s of d o m e s t i c c o r p o r a t i o n s o n l y . S o u r c e . - - I n s t i t u t e of L i f e I n s u r a n c e . Revised jd/ P r e l i m i n a r y H. 14 Sources and Uses of Funds by Savings and Loan A s s o c i a t i o n s Cash Value of a s s e t s a t end of p e r i o d : 1959 - Dec. 1960 - Dec. 1961 - Dec. 1962 - Dec. 1963 - Dec, Changes: 1961 - J u l y Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Uses of f u n d s 1/ U. S. Total Other Mortsources gages 2/ a s s e t s or u s e s ities ( I n m i l l ] Lons of dol Other 4,477 4,595 5,211 5,563 6 448 53,141 60,070 68,834 78,770 90,849 3,729 4,131 4,775 5,346 6.178 63,530 71,476 82,135 93/605 107 431' 54,583 62,142 70,885 80,23% 91,205 2,387 2,197 2,856 3,62$ 5,011 -216 -81 51 82 84 437 -9 65 -2 43 79 44 741 915 809 811 757 745 -144 84 82 107 203 -53 372 983 940 1,043 1,123 1,173 124 507 679 724 779 1,495 132 128 75 79 415 248 344 133 244 265 -737 182 95 35 -43 -8 -64 46 -8 42 35 46 -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 -381 -98 -81 125 98 364 89 91 96 36 -23 457 128 ' 355 205 304 506 -621 250 332 " 83 261 266 -723 . . ' 6,560 7,137 8,394 9, 740 11.215 -333 188 -108 671 418 170 985 -737 106 172 1,020 696 46 371 844 -195 90 177 905 1,289 117 190 1,195 -96 -139 1,061 35 92 1,049 124 447 : 478 -37 -24 1,178 394 1,511 427 969 115 237 90 1,244 • -29 1,542 I 1,642 -694 594 July -449 70 1,103 -150 356 ,574 254 -36 Aug. -48 1,208 -38 406 . 1'51 224 1,273 643 Sept. 30 112 1,097 38 65 1,277 296 916 Oc t . 67 74 1*118 8Z 1,341 795 197 349 32 806 175 129 1,142 504 59 279 482 -108 992 24 1,390 1,734 547 -891 Uses of f u n d s r e p r e s e n t n e t changes 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 "rtetry** iclfhet" t h a n g r o s u s e s . S a v i n g s and l o a n a s s o c i a t i o n s do n o t h o l d b u s i n e s s s e c u r i t i e s and d a t a on h o l d i n g s of S t a t e and l o c a l government b o n d s , presumed to b e s m a l l , a r e n o t a v a i l a b l e . Advances from Home Loan Banks and o t h e r b o r r o w i n g . Source--FSLIC. - Jan. Feb. Mar. Apr. May 2/ Borrowing 3 / 2,183 2,680 3,315 3,926 3,9'6f -354 96 128 -77 10 258 July -384 Aug. -37 Sept. 82 Oct. 93 Nov. — 100 Dec. 696 1/ Source of f u n d s Net change savings capital Lars) Sources and Uses of Funds by Mutual Savings Banks Cash Uses Of funds l 7 State &" Busil o c a l govt. Mart-. Govt. ness gages securities . ities-2/ ities. .. u. s. •alue of a s s e t s t end ot period; 1959 - Dec. 1960 * Bee. 1961 - Dec, 1962 * Dec. 1963 T Dec,.. 829 872 828 957 910 6,864 6,239 6,136 6,089 5,830 4,849 5,080 5,053 5,188 ^,103 722 672 677 528 448 24,768 26,709 28,915 32,070 35,981 lhanges: 1961 - July Aug. Sept. Oct. . Nov. Dec. -26 -14 46 -27 7 -20 18 6 -15 -120 *13 -21 2 -23 -19 -56 -20 5 -2 1 1 -5 -5 -1 201 207 156 178 167 212 1962 - Jan. Feb. Mar. Apr. Key June. July Aug. Sept. Oct. tJov. Dec. 10 47 . 1i -n 12 54 -46 -29 44 15 -33 124 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 25> 188 230 270 254 302 290 312 243 305 272 236 39 -137 -4 31 51 -11 260 21 -9 -241 -61 -72 -25 22 -5 13 37 19 -19 -63 14 -34 -18 .25 -61 38 43 -22 -177 •28 -75 -14 -8 . 12 99 ... -31 Disc. Revised. fi/ Preliminary. Ofes of iEuhds represent net changes in 1963 - Jaou Feb. Mar. Apr. May Jutte : July Aug, S$pt. Get. Nov. t 2/ - -26 -20 -5 -5 -9 -5 -15 -6 -15 Other 38,942 40,573 42,833 46,118 49,675 34,983 38,353 38,487 41,582 4#,866 3,959 4,220 4,346 4,536 -28 55 49 -44 46 117 164 232 220 -74 181 292. 23 99 310 -15 48 471 141 133 -90 -59 133 -179 -118 12 62 -45 68 •22 -10 53 28 '32: 36 28 250 307. -519 -131 334 306 285 „ 367 315 ;•. 114 274 345 si i65 472 . -51 184 424 172 215 429 186 147 545 167 142 47 -SO 150 • -11S 113; 152 -114 -72 127 -200 330 375 610 -111 392 366 254 344 329 97 259 372 229 215 526 11 232 422 137 174 430 198 118 101 160 84 -122 160 -119 118 171 -102 -101 141 -1,89. 910 ' 1 ,doi 1 ,224 1 ,284 1,,403 1 Total Sources of "fund# Net sources Other • '6i • change in depdsits 436 13' 320 -6 313 49 327 ..'58 357 52 254'11 314 11 300 71 274 -2 37 -42 369 -3 38. 321 -2 -2 , 526 -33. . - , c / Corrected. a s s e t s and therefore r e f l e c t -15 -11 -26 -5 -8 -3 -3 . 4f810 n e t , rather than Includes Canadian government and p o l i t i c a l s u b d i v i s i o n s , International Bank for Recons t r u c t i o n and Development, nonguaranteed Federal agency and other bonds as w e l l as corporate botids 3nd stock. Source--NAMSB and FDIC. .