Full text of H.16 Capital Market Developments : May 22, 1961

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Not f o r P u b l i c a t i o n
•
;

DECONTROLLED AFTER SIX MONTHS

H.lir

May 22, l ? 6 l .
;

CAPITAL MARKET DEVELOPMENTS
— - F I R T H F UNITED STATES

Public s e c u r i t y f i n a n c i n g was i n l a r g e volume l a s t week and
w i l l continue t o be so t h i s week. Large corporate i s s u e s with proceeds
aggregating $212 m i l l i o n were sold during t h e week ending May 19 w h i l e
two l a r g e State and l o c a l government bond i s s u e s t o t a l i n g $65 m i l l i o n
were p u b l i c l y o f f e r e d . This week large corporate o f f e r i n g s amounting
to $180 m i l l i o n are scheduled f o r s a l e while State and l o c a l government
bond i s s u e s on the calendar t o t a l $60 m i l l i o n .
Bond y i e l d s . Changes i n long-term bond y i e l d s were mixed bub
minor l a s t week. F i e l d s on U. S. Government bonds rose s l i g h t l y while
those on Aaa-rated corporate bonds d e c l i n e d . Yields on S t a t e and l o c a l
government bonds and lower grade corporate s e c u r i t i e s were s t a b l e .
New o f f e r i n g y i e l d s on corporate bonds have d e c l i n e d moderately
in recent weeks. Two new Aa-rated f i r s t mortgage public u t i l i t y bond
i s s u e s were s o l d l a s t week. One, which provided refunding p r o t e c t i o n ,
was o f f e r e d t o i n v e s t o r s a t k*$Q-per c e n t , and t h e other, with no such
p r o t e c t i o n , a t i;.57 per c e n t . This compares with o f f e r i n g y i e l d s on
comparable s e c u r i t i e s s o l d i n l a t e A p r i l of it.80 per cent and It.6? per
cent.
Short- and intermediate-term i n t e r e s t r a t e s . Y i e l d s on
Treasury b i l l s and 3 - 5 year U. S. Government o b l i g a t i o n s rose l a s t
week. The 3 - and 6-month b i l l y i e l d s , a t 2.29 per cent and 2.1:3 per
cent r e s p e c t i v e l y , were the highest s i n c e e a r l y A p r i l . The average
e f f e c t i v e rate f o r Federal funds rose f u r t h e r t o 2.70 per cent, a l e v e l
c l o s e to the high f o r t h e year. Other s h o r t - and intermediate?-term
i n t e r e s t r a t e s were s t a b l e .
Housing s t a r t s . P r i v a t e housing s t a r t s i n April rose l e s s
than s e a s o n a l l y , and were a t a s e a s o n a l l y adjusted annual rate of
1,233*000 compared with a r e v i s e d rate of 1,317jOOO i n March. FHA and
VA s t a r t s a l s o showed l e s s r i s e than u s u a l . This movement may r e f l e c t
the f a c t t h a t A p r i l had three working days l e s s than March.
Stock market c r e d i t . Customer credit i n the stock market
increased sharply f u r t h e r i n A p r i l . A $1|15 m i l l i o n increase brought
the t o t a l t o a new peak of $5.2 b i l l i o n , more than $1 b i l l i o n above
the l e v e l of l a s t July when margin requirements were lowered t o 70
per cent. As in March a s u b s t a n t i a l , but unknown, part of the r i s e i s
a t t r i b u t a b l e to the AT&T stock i s s u e . Customers' debit balances, excluding those secured by U. S. Government o b l i g a t i o n s , rose $335 m i l l i o n .
Bank loans t o o t h e r than brokers and d e a l e r s f o r purchasing and carrying
s e c u r i t i e s rose $80 m i l l i o n . Both d e b i t balances and bank loans were
a t peak l e v e l s a t the end of A p r i l .




Honey borrowed by NYSE member f i r m s increased §357 million
i n A p r i l . Customers' f r e e c r e d i t balances, which had r i s e n sharply
e a r l i e r i n the y e a r , changed l i t t l e . These and o t h e r data on stock
market c r e d i t f o r March and April a r e shown in the following t a b l e .
End of month
Change
Apr.
I Mar.
(Millions of d o l l a r s )
Customer c r e d i t
Excluding U. S. Government s e c u r i t i e s - t o t a l
Net debit balances
Bank loans to "others"
Net d e b i t balances secured by U. S. Govt, s e c u r i t i e s
Bank loans to " o t h e r s " f o r purchasing or c a r r y i n g U. S.
Government s e c u r i t i e s
Broker and dealer c r e d i t
Money borrowed except on U. S. Government s e c u r i t i e s
On customer c o l l a t e r a l
Money borrowed on U. S. Government s e c u r i t i e s
Customers' n e t f r e e c r e d i t balances
.r/

5,190
3,936
1,251;
50

r/4,775
r/3,601
1,171;
55

+415
+335
+80
-5

112

110

+2

2,281;
1,917
67
1,508

1,927
1,621;
70
1,507

+357
+323
-3
+1

Revised.
Stock p r i c e s . Common stock p r i c e s , as measured by Standard
and Poor's index of 500 common stocks, rose 1 per cent l a s t week,
closing a t 67.27 on May 19. Trading volume continued t o be heavy,
averaging 1^.9 m i l l i o n shares a day. The shaip increase in stock p r i c e s
t h i s year has brought the average y i e l d on stocks included i n t h e
Standard and P o o r ' s index down to 2.90 per cent.
I n s t i t u t i o n a l i n v e s t o r s . The t o t a l n e t inflow at three major
types of savings i n s t i t u t i o n s — l i f e insurance companies, mutual savings
banks, savings and loan a s s o c i a t i o n s — t o t a l e d a record #1.5 b i l l i o n in
March, one-fourth more than a y e a r e a r l i e r . Growth was a record f o r
each of t h e t h r e e types of i n s t i t u t i o n s . On a seasonally a d j u s t e d
b a s i s , the i n c r e a s e in l i f e insurance company a s s e t s was probably somewhat l a r g e r than i n most other recent months while the increase in
deposits a t mutual savings banks and share c a p i t a l a t savings and loan
a s s o c i a t i o n s was about the same.
For the e n t i r e f i r s t q u a r t e r , inflow was a l s o a record,
t o t a l i n g % . 2 b i l l i o n , 36 per cent more than a year e a r l i e r . Growth
was s h a r p l y higher a t each type of savings i n s t i t u t i o n . (The i n c r e a s e
in time and savings d e p o s i t s a t commercial banks i n March and in the
f i r s t quarter was a l s o s u b s t a n t i a l l y l a r g e r than a y e a r e a r l i e r . )




Sources and Uses of Funds of Major Types of Savings I n s t i t u t i o n s 1 /
Fir s t Quarter 1953-1960
(In millions of dollars)

Year

Uses of funds
State &
U. S. BusiGovt.
ness
Mortl o c a l Other
Cash
gages
govt,
sec.
ities ities

Sources of funds
Total
sources Net change
in deposits Borrow- Other
ing
or savings
capital

Life Insurance Companies
1961
1960r/
19592/
1958
1957
1956
1955
195k
1953

-113
-15U

91
-50
-US
27
-123
58
-206
-77
-215 -500
-171
70
-160 -106
-15k -132

518
133
61*8
631
571
673
513
563
763

553
77li

bPl

1*55
688
957
799
l*9l*
180

113
36
ll*9 •
86
21
155
131
168
52

590
276
31 It
318
336
235
222
1*79
252

1,752
1,315
1,390
1,1*25
1,333
1,305
1,561*
1,1*36
1,261

—

—

Savings and Loan Associations
1961
19601/
19591/
1958
1957
1956
1955
1951
1953

-31
-286
-325
267
-235
-99

-5k

136
-30

381*
239
1*51*
26

3h7

2lj0
179
5
139

—

1,431
1,261
1,1*1*0
775
838
907
1,180
736
655

n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.

80 1,861*
39 1,253
111 1,710
27 1,095
122 1,070
73 1,118
28 1,329
906
30
20
782

1,821
1,500
1,378
1,317
997
1,106
1,11*7
1,01*7
877

618
-575
-702
1*55
-21*2
571*
-592
370
372
-2 99
-326
338
221
-39
- 3 3 5 , , 191*
-251*2/ 159

657
302
. 51*8
719
1*35
512
566
51*0
506

252
173
173
153
169
11*0
105
117
96

Mutual Savings Banks
1961
i960
1959
1958
1957
1956
1955
1951
1953

-19
-53
-33
39
-76
-79
-1*2
22
-1*5

323
12
220
20
59
21
a
-30
9l*

3k

31
-la
332
205
50
26
173
135

505
U25
508
391*
355
587
550
I405
299

-6
-12
55
33
7
1*3
51
1*2
75

72
72
12
51*

5k

30
1*2

k5
k5

909
1*75
721
872
60l*
652
671
657
602

rj Revised.
n.a.—Not available.
1 / For description of data see Exhibits L, M and N.
2/ Includes Federal Home Loan Bank advances only.




—
—

The y e a r - t o - y e a r increases in t h e d o l l a r amount of l i f e
insurance conpany a s s e t s have been q u i t e steady i n the past f i v e years
and have been a l i t t l e smaller than in 1955. In t h e f i r s t q u a r t e r of
1961, however, t h e i n c r e a s e i n a s s e t s t o t a l e d $1.8 b i l l i o n , o n e - t h i r d
more than a year e a r l i e r and one-eighth more than the previous record
growth i n t h e f i r s t q u a r t e r of 1955. A s u b s t a n t i a l p a r t of t h i s y e a r ' s
b i g g e r growth r e f l e c t s appreciation in p o r t f o l i o s of common s t o c k , and
i s shown under o t h e r a s s e t s . Net a c q u i s i t i o n s of business s e c u r i t i e s
t o t a l e d §0.5 b i l l i o n , o n e - f i f t h more than in t h e f i r s t q u a r t e r of
i960 but l e s s than in o t h e r recent f i r s t q u a r t e r s , mortgage holdings
rose *0.6 b i l l i o n , n e a r l y o n e - t h i r d l e s s than a year e a r l i e r . The
usual f i r s t q u a r t e r decline i n cash and d e p o s i t s was l e s s than in the
f i r s t q u a r t e r of l%6o and net a c q u i s i t i o n s of U. S. Government s e c u r i t i e s
amounted t o $0«1 b i l l i o n i n c o n t r a s t t o a decline in such holdings in
the corresponding period a y e a r ago. The increase in other a s s e t s
t o t a l e d #0.6 b i l l i o n , r e f l e c t i n g not only the r i s e in stock p r i c e s but
a l s o s u b s t a n t i a l a c q u i s i t i o n s of foreign corporate s e c u r i t i e s .
'

The net increase in savings c a p i t a l with savings and loan
a s s o c i a t i o n s i n the f i r s t q u a r t e r was a record $1.8 b i l l i o n , o n e - f i f t h
more than i n t h e corresponding period of i 9 6 0 , t h e previous peak. The
usual f i r s t q u a r t e r repayment of debt, p r i n c i p a l l y to t h e Federal
Home Loan Banks, t o t a l e d $0,6 b i l l i o n , o n e - f i f t h l e s s than a year
e a r l i e r but s u b s t a n t i a l l y more than u s u a l .

As usual, most funds were invested in mortgages. Holdings
of U. S. Government s e c u r i t i e s a l s o increased s u b s t a n t i a l l y — b y $0.1j.
b i l l i o n — a s they have i n most recent f i r s t q u a r t e r s , Cash and deposits
declined l e s s than in t h e corresponding period of the two preceding
years.
The n e t i n c r e a s e i n d e p o s i t s a t mutual savings banks in t h e
f i r s t q u a r t e r t o t a l e d 40,7 b i l l i o n , over twice the r i s e i n t h e f i r s t
quarter of i960 but somewhat l e s s than the record f i r s t q u a r t e r i n c r e a s e
in 1958. The increase in such d e p o s i t s during March was also a record
f o r t h a t m o n t h b a t r e f l e c t e d i n p a r t s u b s t a n t i a l l y l a r g e r c r e d i t s of
i n t e r e s t . Withdrawals of d e p o s i t s a s well as new deposits were higher
i n March than a year e a r l i e r whereas i n January and February new d e p o s i t s
exceeded those made a year e a r l i e r while withdrawals were l e s s . Net
a c q u i s i t i o n s of mortgages t o t a l e d #0.5 b i l l i o n i n the f i r s t q u a r t e r ,
nearly o n e - f i f t h more than a year e a r l i e r when deposit growth was l e s s
than one-half t h a t of t h i s y e a r . Holdings of U„ S„ Government o b l i g a t i o n s rose £0,3 b i l l i o n , primarily i n short-term Treasury b i l l s , in
c o n t r a s t t o an i n c r e a s e of only $12 million l a s t y e a r .
More d e t a i l e d information concerning recent c a p i t a l market
developments i s contained in t h e attached e x h i b i t s .
Capital Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




EXHIBIT A
LONG-TERM BOND YIELDS
W««k|y
HIGH-GRADE




P>r c«nl p«r onnum

-7-

Exhibit B - Tables f o r Exhibit A
Long-tern Bond Yields
High-grade
Date

U. S. Govt,
long-tern 2 /

Corporate
Aaa 1/

(per cent)
195k - Low
1957 - High
1958 - Low
1959-60 - High
1960 - Low
1961 - High
Low

l*.3l* (1/6)
1*.21 (3/17)

2.1i5
3.76
3.07
1*.1*2
3.75
3.92
3.70

Apr. 21
Apr. 28
May 5
May 12
May 19 2 / /

1*.26
1*.28
h.29
b.27 y
1*.25/

3.81
3.78
3.73
3.70
3.71

2 . 8 5 (4/23)
k . l k (9/27)
3.55 (5/2)
l * . 6 l (1/29/60)
1|.23 (9/9)

^ ^

(8/6)
(10/18)
(4/25)
(1/8/60)
(8/5)

(1/20)
(5A2)

State and
local
government
Aaa
3/
1.90
3.1*5
2.61*
3.65
2.99
3.30
3.12

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

(9/2)
(8/29)
(5/1)
(9/24/59)
(9/1)

(1*/13)
(2/23)

3.21*
3.21*
3,21*
3.21*
3.21*

•30
.60
.22
.59
.19
.57
.1*0

1
1

.1*5
.51
.56
,57
.51*

:§
.1*6

.i*6
.57

.1*7

Lower-grade

Date

Corporate
Baa 1 /

State and
l o c a l govt.
Baa y

Spread between
•Aaa and Baa
State and
Corporate
l o c a l govt.

(per cent)
2.93 (0/5)
U . 5 1 (8/29)
3-614 (5/1)

1951* - Low
1957 - High
1958 - Low
1959-60 - High
1960 - LoW
1961 - High
Low

3.1*1*
5.10
h.Bl
5.36

1*.1*6 (1/7/60)

5.12 (1/27)
5.00 (14/21)

3.95 (5/18)

Apr. 21
Apr. 28
May 5
May 12
May 19 j o / /

5.oo
5.oi
5.02
5.oi /
5.01

(12/31)
(11/29)
(7/11)
(2/12/60)
I4.98 (9/9)

3 . 9 8 (12/29)
L 1 6 (3/23)

3.98

3.98
3.95
3.95
3.95

.52
1.27
.77
.81*
.71
.81
.73

.

.71*
.73
.73
.71*
.76

2/ Preliminary.
1/ Weekly average of daily figures. Average term of bond* included i s 23 *26 years.
2/ Weekly average of dally figures. The series includes bonds due or callable i n 10 year: or more,
3/ Thursday figures. Only general obligation bonds are Included; average term i s 20 years.
Note.—Highs and lows are for Individual series and may be on d i f f e r e n t dates for d i f f e r e n t s e r i e s ,
Fbr spreads, high r e f e r s t o widest, and low to narrowest.




.96
1.21
.93
1.08
.96
.93
.71
.71*
• 71*
.71
.71
.71

1961

0961




6Stl

»J6l

r v

r~

s a a M o a a o a aivAiad a a n i o QNV s»Nva \

IN3WN«3AOG

S3iva isaaaiNi waai - a i v i a a w a a i m

QNV -IMOHS

-9.-

Exhibit D - Tables f o r Exhibit C
Short- and Intermediate-tera I n t e r e s t hates
Government
Date

Discount
rate
V

195b - Low
1957 - High
1958 - Low
1959-60 - High
I960 - Low
I96I - High
Low

1.50
3.50
1.75
1.00
3.00
3.00
3.00

.61
3.61*
.58
L59
2.11
2.56
2.17

3.00
3.00
3.00
3.00
3.00

2.25
2.23
2.22
2.23
2.29

Apr. 21
Apr. 28
May 5
i May 12
•May 19 • / ^

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

3-month
b i l l s 2/
(6/U)
(10/ia)
( 5/29)
(1/8/60)
(10/26)
(3/3)
(1/27)

3 . 02
5.07
2 . 38
2.75
2.35

Spread between y i e l d s on
3-month b i l l s and y i e l d s 01
6-mo. b i l l s 13-5 y r . i s s u e s

3-5 year
issues 2/
1.66
li.Oli
2.Ill
5 . 00
3.140
3.59
3.15

(12/26)
(1/8/60)
(12/30)
(3/3)
(V28)

2.10.
2.35
2.#
2.1*0
2.13

(4/30)
(10/18)
(6/6)
(12/24/69)
(12/30)
(1/20)
(5/12)

3.38
3.32
3.23
3.15
3.2k

.26
.79
.16
.25
.12

.66
.86
.Oil
1.81
.38
l.liO
.92

.16
.12.16
.17
.lit

1.13
1.09
1.01
.92
.95

Banks an<^. 0ther<-Private Borrowers
Prime
rate 1 /

Finance company
paper 3 /

Federal
funds \\J

Date

Stock Exchange
c a l l loan 1 /

19Sh - Low
1957 - High
1958 - Low
1959-60 - High-.
i960 - Low
I96I - High
Low

3.00
If,50
3.50
5.50
L 50
L50
It. 50

3.00
It. 50
3.50
5.00
14.50
It.50
lt.5o

1.25(12/31)
3.88 (u/15)
1.13 (e/8)
5.13 (1/22/60)
2.88 (12/30)
2.88 (3/10)
2.50 ( 5 / 1 9 ) .

3.50
.13
It.00
.95
2.85
.lt3

Apr. 21
Apr. 28
May 5
May 12
May 19 jo/

k.5o
it. 50
It. 50
It. 50
it.5o

It. 50
It. 50
I4.50
lt.5o
it. 50

2.53
2.50
2.50
2.50
2.50

1.15
.75
.60
2.1+0
2.70

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

(per cent)

-

(11/8)
(5/29)
(5/13/60)
(12/2)
(2/17)
(1/27)

0
.63
-.35
1.02
.22
.56
.15
.26
.27
.28
.27
.21

Stook Exohange c a l l leah r a t e I s going r a t e on call loans secured by customers' stook exohange c o l l a t e r a l a t
Haw York City banks. Prime r a t e lo that charged by large banks on ahort-term loans t o business borrowers of
the highest c r e d i t standing.
2/ Markat y i e l d ; weekly averages computed from dally oloalng bid p r i c e s . Series of 3-5 year Issues consists of
selected notes and bonds.
»
3/ Average of dally r a t e s published by finance companies f o r d i r e c t l y p i t i e d paper for varying maturities In the
90-179 day r a % e .
4/ Weekly average of dally e f f e c t i v e r a t e , which i s the r a t e f o r the heaviest voluae of purchase and sale transactions
as reported t o the Federal Reserve Bank of Now York.
'
Not-*.--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 for d i f f e r e n t dates for d i f f e r e n t s e r i e s .
For spreads, high r e f e r s to widest, and low t o narrowest.




.y
EXHIBIT E
STOCK

MARKET

Million: o( Sho.rei

PRIVATE H O U S I N G
Monthly

STARTS




I

\/l

—11—

Exhibit F - Tables f o r Exhibit E
Stock Market
Date

Stock price
index 1 /

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

Stock market customer c r e d i t
Customers1
Bank
debit b a l loans to
ances k L "others" 5/
(In millions of dollars)

Total

1957-60 - High
Low
1961 - High
Low

60.51 (7/31/59)
39.18 (12/20/57)
67.27 (5/19)
58.18 (1/6)

3.08
a. 72
2.90
3.32

1.9
l.L
5.8
3.6

^,76U
3,5'5h

March
April
May 5 '
May 12
May 19 2 /

61.12
65.83
66.52
66.15
67.27

3.03
2.95
2.92
2.92
2.90

S.k
5.1
In 6
5.2
k.9

vJksllS
5,190
n.a.
n.a.

(4/59) 3 , 1 , 0 1 (4/69) 1 , 3 7 3 ( 5/59)
(1/6S) 2 , i | 0 2 (12/57) 1 , 0 6 0 ( U / 5 7 )

5,190(V6l) 3,93b(Vtil)l,275(5/12)
k,hl6(l/6l)
3, 253(1/61)1,152(3/10)

r/3,601

3,936

1,17k
1,254
1,271
1,275
n.a.

n.*,-»Not a v a i l a b l e .
5 / Prnlin.li.ary.
1 / Standard and P o o r ' s ccrapor.lte index of 5U0 ocromon stocks, weekly o l o n l : ^ p r i c e ? , 1941-43=10. Monthly data are
averages of d a l l y f i e u r o o r a t h o r thnn of PrlUcy's only. High:' and Ions are for F r l d a y t ' data only,
2 / Standard and Poor'o ocmpo&lto stock y i e l d baoed on Wednesday data converted t o weekly closing prleeo by Federal
Reeerve. Yields shown ore f o r dateo on which prloa Index rcaohod i t s high or low.
3 / Average0 of d a l l y t r a d i n g volv-.w on the Hew'York Stock Exchange.
4 / End of month f i g u r e s f o r member firms of the Maw York Stock Exchange whloh carry margin accountsj excludes balance*
secured by U. S . Government o b l i g a t i o n s .
&/ Wednesday f i g u r e 0 f o r weekly r e p o r t i n g member t a n k s . Excludes loans for purchasing or carrying U. S. Government
F o c u r l t l e r . P r i o r t o J u l y 1, 1959, euch losnn are excluded only a t banko i n Ho»f York and Chlcr^o. Weekly r e p o r t i n g
banks account f o r about 70 per oont of loans t o o t h e r s . For f u r t h e r d e t a i l 000 B u l l e t i n .

Private Housing- Starts 1/

Seasonally adjusted
Unadjusted
annual r a t e
Total
Date
Conventional
Nonfarm
Total
Nonfarm
Total
FHA VA Nonfarm
Total
old s e r i e s new s e r i e s old series new series
old s e r i e s new series
(Thousand of units)
i960 - Apr.
1,135
1,325
109
122*
25
76
7
91
May
1,342
127
25
7
95
1,302
122
26
8
88
July
1,182
111
2k
80
7
Aug.
1,292
26
125
8
90
Sept.
1,066
22
. 97
68
7
Oct.
1,256
6
109
23
81
Nov.
1,216
20
9k
5
69
Dec.
979
65 - Ik
5
k7
1961 - Jan.
1,105
70
lit
5
51
Feb.
1,187
76
13
5
58
——
Mar. jg/
1,317
105
6
20
Apr.oy
1,233
115
21
6
—
88
~
—
Total s t a r t s a r e Census e s t i m a t e s , whloh are not o t r l o t l y oomparable with old nonfarm s e r i e s developed by BLS.
dwelling u n i t I s s t a r t e d when excavation begins; a l l u n i t s i n an apartment s t r u c t u r e are considered s t a r t e d a t t h a t
t i m e . PHA and VA s t a r t s a r e u n i t s s t a r t e d under commitments by these agencies t o insure or guarantee the mortgagee.
As reported by FHA and VA, a u n i t i s s t a r t e d when a f i e l d o f f i c e receives the f i r s t compliance Inspection r e p o r t , .
which I s made before f o o t i n g s are poured i n some cases but normally a f t e r the foundations have been completed.
Caoohart m i l i t a r y housing u n i t s are nxoluded. Conventional s t a r t s are derived a s a r e s i d u a l , although t o t a l and
p
t
t K
f
™
"
"
"
"
f l « n « d t y oonventlotwl




Exhibit G
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of d o l l a r s )

1961

Corporate If
1 I960
|

New c a p i t a l
1959

State and l o c a l 2/
1961
1 I960
! 1959

280
66?

577
715
860

821
738
6#

708
661
740

e/2,000

766
567
1,0314

891*
785
887

e/725
e/550

July
August
September

727
962
738

535
740
703

492
606 '
683

443
521
470

October
November
December

87U
959
876

879
86^
900

348
501
491

593
450.
478

2,151
2,367
2,127
2,709

2,204
2,567
1,979
2/#

4,519
6,915.
?,o55

1,771
6,750
9,392

January
February
March
April May

1st
2nd
3rd
Irth

quarter
quarter
quarter
quarter

1,809

1 s t half
Three q u a r t e r s
Year

- 2,109

700
611
568

648
859
638

M
• 991

934
568
987

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

2,145
2,488
1,433
1,521

4,136
5,916
7,257

4,634
6,067
7,588

Excluding f i n a n c e companies J3/
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

2/1,509

Year

1,722
2,150
2,017
2,358

1,999
2,412
1,716
2,503

8,248

8,630

E/ Preliminary.
Estimated.
1/ S e c u r i t i e s and Exchange Commission estimates of net proceeds.
2 / \Investment Bankers Association of America estimates of p r i n c i p a l amounts.
2 / Total 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 sales and consumer finance
companies.




< 3
E x h i b i t ti
Other Security Offerings
( I n m i l l i o n s of d o l l a r s )

Gross long-term l / ~
Foreign government 2/
Federal agency 3/
1961
January
February
March

29
20

I

I960

I

1959

1961

|

1950

2

81
60
2

3U

ll|8
35U

175
70

182
150
150

252

W

199
175

April
May
June

i:

58
50

July
August
September

25
36

65
L
35

199

October
November
December

31*
2
la

33
30
70

160
H*9
181

86

533

SU7

1,672

707

1

Year

1*2

Net s h o r t - t e r m S T
Federal
S t a t e a n d l o c a l government 5 /
January
February
March

160
195.

April
May
June
July
August
September
October
November
December
Year

58

-1*
181
, V

70

197
-25
-197

iko

-11*6

-157

57
392
131

1*8

-ill
-16
50

-189
18

1

-116
-162

-17b

98

150

agency 3/ "

-196

-82

-202

-59

176
33

-277
170

50
368
286

320

95
23

-201 .

362

133
79

-81
-176

-117

-23
-33

-250

280
21*0
A

362

-633

1,969

e / Preliminary.
1/ These data d i f f e r from those In Exhibit 0 In that refunding issues, as well a# new capital lssuss, are Included.
Long-term seoiritles are defined ae those maturing In more than one year,
2/ Includes securities offered In the United States by foreign governments and their subdivisions and by international organisations. Sourest Securities and teoheige Commission.
3/ Issues not guaranteed by the 0. S. Oovermnent, Source1 long-term. Securities and Exchange Commission; shorttens , Treasury Department and federal He serve.
4/ These data d i f f e r from those im Exhibit 0 and abevs in that they represent new offerings less retirements, whether
from the proceeds of reminding leeuee or from other funds, lkta lne*9dftnl*_*esuee with original maturity of on#
year ?r l e s s .
5/ Principally tax and bond anticipation notes, warrants or certificates and Public Housing Authority notes. Im
some Instances PHA notes Included may have a somewhat longer term than one year. Source1 Bond Buyer and
Reserve.
Digitized Federal
for FRASER



-Ik-

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

Month
I960 - April
May
June
July
August
September
October
November
December
1961 - January
February
March
April

State and
local
government

309
139
B2
303
581
266
566
h65
260
litf
267
70
1,5.72

Olner 2/
71
28
30

370
23U
561
191
298
367
k6
186
222
391
360
ii05
383

75
25
77
150
99
67

Large Individual Issues Offered May 1 through 1?
Issuer

Type 3/

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

CORPORATE
Bell. Tel. of Pa.
Nippon Tel. & Tel. Corp.
Washington Gas Light Co.
Continental Oil Co.
U. S. Freight Co.
Duke Power Co.
Term. Gas Trans. Corp.
New York St. Elec. & Gas
Aerojet-General Corp.
Federal Paper Board Co.
New England Tel. & Tel. Co.
Allegheny-Ludlum Steel Corp.

Deb.
Ex. bds.
Ref.mtg.bds.
Deb.
Conv.sub.deb.
Com. stk.
Deb.
1st mtg. bds.
S.F. deb.
S.F. deb.
Com. stk.
S.F. deb.

20.0
15.0
15.0
100.0
15. U
16.6
75.0
25.0
15.0
20.0
L5.0
15.0

2001
1976
1986
1991
1981

h-3/h
6
U-l/8
1-1/2
5

•I4.60
6.I17
1.85
L55
5.00

A
Aa
Ba

1981
1991
1981
1981

5-1/8
24-5/8
5-l/lf
5

5.13
h. 50
5.25
5.08

Baa
Aa
Baa
A

1986

h-3/k

14.78

A

STATE AND LOCAL GOVERNMENT
Los *nrelec Unif. tich.
^ . s t . , Calif.
Grand Rapids, 1-d.ch.
Port ox' New York Auth.

Cincinnati,
Ohio

fV 1 .
Rev.-Ut.
Rev. -Ut.
0.0.



30.0"
13.1
35.0
21.5

1962-86
3.1|2
1962-82
3.31
1962-81
3.a
1962-2001 3.18

Aa
1.50-3.00
Aa
I.60-L10
1.60-3.60, . A
i.ho-y.hoh/ Aaa

Large Individual Issues Offered May 1 through 19 (Cont'd)
Issuer

Type ] /

Coupon
Amount
Offering
(millions Maturity rate or
c
net i n t e r - y i e l d
of
est cost
dollars)

Rating

STATE AND LOCAL GOVERNMENT
(Cont'd)
Puerto Rico Wtr. Resources
Auth.
Chicago Bd. of Educ., 111.
Penn. St. Pub. Sch. Bldg.
Auth.

Rev.-Ut.
G.O.

22.0
1*0.0

1963-98
1963-81

U.08
3.28

2.15-LlO
1.85-3.50

A
A

Rev. -Rent.

2U.6

1961-2000

3.6b

I.I4O-U. 25

—

S.F. deb.
S.F. deb.

15.0
10.0

1981
1986

5
5

5.00
5.00

A
A

OTHER
Montreal, Canada
TJ
2/
2/

h/

Includes corporate and other security o f f e r i n g s of $15 m i l l i o n and over;
State and l o c a l government security o f f e r i n g s of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development i s s u e s and non-guaranteed issues by Federal agencies.
In the case of State and l o c a l government s e c u r i t i e s , G.O. denotes general
obligations; Rev.-Ut,, revenue obligations secured only by income from
public u t i l i t i e s ; Rev.-Q.Ut., revenue bonds secured only by revenue from
q u a s i - u t i l i t i e s ; Rev. - S . T . , revenue bonds secured by revenue from s p e c i f i c
taxes only; Rev.-Rent,, revenue bonds secured s o l e l y by lease payments..
3 per cent bonds of 1990-2001 not re offered.




-16-

Exiiibit J
I* o i i l looming Large L o n g - t e r n Public S e c u r i t y O f f e r i n g s f o r New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming 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 govt. Other 2 /

computation
I960 - Apr. 29
May 31
June 30
July ?9
Aug. 31
Se p t. 30
Oct. 31
Wov. 30
Dec. 30
1961 - Jan. 31
t e b . 28
Mar. 31
Apr. 29

202
463
237
596
216
576
440
260
91
110
55
1,580
542

243
277
160
275
203
212
258
212
412
181
307
559
2#

30
30
77
50

15

Subsequent t o
date shown
S t a t e and
Corporate l o c a l govt. Other 2 /
258
502
380
324
283
336
391
560
68'2
360
638
806
579

357
553
455
1,006
731
836
~
585
335
1,036
1,046
1,125
1,700
687

60
30
127
50

15

Forthcoming Large O f f e r i n g s , a s of May 19
Type

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

CORPORATE
Ohio Edison Co.
Armco S t e e l Corp.
Michigan Consolidated Gas Co.
Consolidated Natural Gas J o .
Aldens, I n c .
New Orleans Public S e r v i c e Corp.
Clark Equipment C r e d i t Corp.
Indiana and Michigan E l e c t r i c Co.
Columbia Gas System. I n c .
F. L o r i l l a r d Co.
Brooklyn Union Gas Co.
-^Virginia E l e c t r i c Power Co.
Michigan-V.'isconsin ^ i p e Line Co.
Southern E l e c t r i c Generating Co.
Consolidated Edison Co.
Union Tank Car Co.
Gimbel B r o s . , I n c .
Commerce O i l R e f i n i n g Corp.
R e a l t y C o l l a t e r a l Corp.




1 s t mtg. bds.
S . F . deb.
1 s t mtg. b d s . .
Deb.
S.F. deb.
1 s t mtg. bds.
Deb.
S . F . deb.
Deb.
S.F. deb.
1 s t mtg. b d s .
1 s t r e f . • mtg. b d s .
1st mtg.p.1.bds.
1 s t mtg. bds.
1st ref.mtg.bds.
S.F. deb.
S.F. deb.
Deb., bds. & com.
Coll. t r . notes

30.0

50.0

30.0
40.0

15.0
15.0
20.0
20.0
30.0
2*0.0
20.0
30.0
30.0
20.0
5o.o
Lo. o
17.2
45.0
20.0

May 23
May 23
May 2k
May 25
May 25
May 26
May
June 1
June 2
June 7
June 9
June lb.
June 15
June 16
June 21
June
June
Indefinite
Indefinite

J-2-

-17-

Forthccming Large O f f e r i n g s , a s of May 19 ( 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
•^Wisconsin S t a t e Public Bldg. Corp.
Owensburg, Kentucky
Houston, Texas
J^ew York S t a t e housing F i n . Agency
Monroe County V/tr. Resources A u t h . ,
New York
Sacramento Mun. U t i l . D i s t . , C a l i f .
Louisiana S t a t e Bond & Bldg. Comm.
Milwaukee, Wisconsin
S t a t e of Ohio
1
-"•New York, New York
-«-Santa Clara County, C a l i f .
*San F r a n c i s c o , C a l i f .
^-Philadelphia, Pa.
Nassau County, New York
Massachusetts Turnpike A u t h o r i t y
Orleans P a r i s h School L i s t . , La.
Dade County, F l o r i d a
. J a c k s o n v i l l e Expressway Auth.

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

i7. a

25.0
17.2
50.0
17.0
30.0
lk.0
10.0
32.0
60. h
20.0
U.3
25.0
19.7
175.0
10.0
1*6.0
liO.O

May 22
May 23
May 2h
May
June 1
June 1
June 1
June 6
June 6
June 8
June 8
June 12
June 15
June
Indefinite
Indefinite
Indefinite
Indefinite

OTHER
none
*—Included i n t a b l e f o r f i r s t t i m e .
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 $ . 5 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 non-guaranteed 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 reasons o t h e r than s a l e of i s s u e : none.




Exhibit K

-16-

Yields on New and Outstanding
hilectric Power Bonds,. Rated Aa and A 1/
Date

1952-1959 - High
Low
I960

Jan.
. Feb,
Mar.
Apr.
May

Aa-rated o f f e r i n g y i e l d s
A-rated o f f e r i n g y i e l d s
Amount above
Actual
I Amount above
Actual
(per - r n + J seasoned yields (per cent) seasoned yields
' j(basis points)
( b a s i s points)
5,30 (12/8/59)
2.93 (3/31/54)
5.09
1.82
1.91
*4.88
1,83

July

8?

5.65 (9/18/59)
3.00 (3/17/54)

45
25
37
32
26

AUg a

Sept.
Oct.
Nov,
Decc

1961 - Jan, 12
18
25"
Feb. 8
16
16
t a r . 23
24

4.82
*5.00
U. 60
4/55
1L 44

•U 37

22
23
37
49
11
7

8

Apr.. 13
•

21

26
2?

May 1?
18
19

4.80
it-5 7

43
29
13
20

i
:

123
-15

*5.30^/

28

4.97
5.14
5,15
*4.95
4.87

9
35
29
11
6

*4.80

24

4.97

35

4=60
4,65
4.47
4c 50

-2
5
-13
5
-5
17
32

i i >
4.802/
4,72

19

4.80

27

*—Single observation
ot .
verage „
1 / Covers only 30-year f i r s t mortgage bonds., as reported in Moody's Bond Survey.
Except where indicated, the actual y i e l d f i g u r e and the amount above seasoned
y i e l d s are averages of o f f e r i n g s during the indicated period and of the d i f f e r ences between these new o f f e r i n g y i e l d s and y i e l d s on seasoned issues of
similar quality f o r the same day. Average maturity for the seasoned issues
v a r i e s from 26 to 28 years,
y . Provides f o r a 5-year period during which issue may not be c a l l e d f o r refunding a t a lower coupon r a t e . Monthly averages so marked include one or more
i s s u e s with such a provision. Other issues have no such provision.




Exhibit L
Sources and Uses of Funds by
Life Insurance Companies

Value of a s s e t s at
end of period:
1957 - Dec.
1958 - Dec.
1959 - Dec. ,
I960 - Dec.
1961 - Har ,^-.
Changes:
1959 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Get.
Nov.
Dec.
1^60 - Jan.
Feb.
1-Jar.
Apr.
Hay
July
Aug.
Sept.
Oct.
Nov.
Dec.
1961 - Jan.
Feb.
Mar.

Uses of funds 1 /
BusiState and
l o c a l govt Mortsecurgages
ities
i t i e s 2/
ities
(In millions of dollars)

Cash

u. s .
Govt.

1,29k
1,363
1,307
1,332
1,219

7,028
7,182
6,858
6,444
6,535

42,133
a , 612
16,901
18,896
49,414

2,377
2,691
3,221
3,622
3,735

35,271
37,092
39,237
41,798
42,351

-81
-U7
-20
-29
15
2
-25
16
-39
20
33
99

279
-69
-183
19
-15
10
39
95
-181
-18
-132
-168

190
223
235
258
182
227
194
81
82
203
195
219

39
38
71
51
82
34
110
31
18
14
18
24

138
126
137
110
126
156
194
167
207
245
235
304

58
170
86
113
85
60
146
110
108
91
146
313

623
441
326
522
475
489
658
500
195
555
495
791

-71
-53
-30
39
-12
33
12
4
-51
90
-35
99

153
-36
-167
-85
-62
-102
73
—1|0
-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
5L4
469
628
576
366
597
522
651

-54
-y
-50

101
-3
-7

242
126
148

49
31
33

210
135
208

202
202
186

750
484
518

1/

Other

Total
sources
or uses

13,206 101,309
14,61# 107,580
16,126 113,650
17,625 119,717
1 8 * 2 # 121*469

Uses of funds represent net changes in a s s e t s and therefore r e f l e c t net, rather
than gross, uses.
2/ Includes s e c u r i t i e s of domestic coip orations only.
Source.—Institute of L i f e Insurance.




Exhibit M

-20-

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. r /
1961 - liar.
Changes:
'1959 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept,
Oct.
Nov.
Dec.
vj .If uG —

.

Cash

Uses of funds 1 /
Sources of funds
Net
Total
U. S.
change BorrowGovt.
sources
Mort- Other
s e c u r - gages^/ a s s e t s or uses savings
ing 3/ Other
capital
ities
(In m i l l i o n s of d o l l a r s )

2,1^6
2,585
2,183
2,715
2,681:

3,173
3,819
1,177
4,586
4,970

40,01:9
45,627
53,194
60,081:
61,515

2,770
3,108
3,676
4,101:
4,181:

48,138
55,139
63,530
71,489
73,353

41,912
47,97b
54,583
62,154
63,975

1,379
1,444
2,387
2,191
1,616

4,847
5,719
6,5#
7,144
7,762

-297
-27
-1
-180
27
238
-1*31
-1*2
-52
-69
CI
371

283
96
75
105
21
-3
108
23
-7
10
-28
-25

414
430
596
710
757
884
803
740
679
626
460
468

-hi
83
99
151
185
^36
-113.
14
64
86
14-65

359
582
769
786
990
1,063
367
735
681:
653
634
749

1*46
4o5
527
1*14
599
1,089
201
394
447
396
481*
1,205

-180
-54
-8
97
62
314
31
119
148
136
56
222

93
231
250
275
329
-320
135
222
89
121
94
-678

-01
-3a
US'

196
- 65
-22
2?i.
-11*3
-33
-•27
1
20
36
-3

398
547
565
635
?80
6:5
713
61:3
.605
501
572

b5
93
105
203
-58
-1?7
2
63
85
153
-38

92
1*94
667
642
939
908
219
718
' 731
811:
776
959

465
409
623
372
630
1,216
149
489
602
667
558
1,388

23
192
99

371
427
633

-107
71
116

262
749
853

591
553
677

:'3y
80
'ur.e
32f
Julj.
-236
'•ug.
30
Sept.—- "
2k
Oct.
10h
Incv,
86
1:28
3/I96I - Jan.
Feb. r /
Mar.

~95
59
5

86
-462
-111
199
-126
170
233
37
304
5
211
-519
-127
197
22
207
80
49
161
-14
51
167
1/272 1/-701
-466
-UO
-30

136
276
206

~rj Revised.
jay7 Preliminary.
1 / Uses of funds represent net 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
than g r o s s , u s e s . Savings and loan a s s o c i a t i o n s do not hold business s e c u r i t i e s
and data on holdings of S t a t e and l o c a l government bonds, presumed to be &%all„
are not available,
2/ Data f o r 1957 a d j u s t e d t o include mortgage pledged shares as c u r r e n t l y r e p o r t e d .
3 / Advances from Home Loan Bnnks and other borroi/ing.
oovrce. — -Federal Savings and Loan Insurance Corporation.




Exhibit N
Sources and Uses of Funds
by Mutual Savings Banks

Cash

U. S.
Govt.
ities

Value of a s s e t s
a t end of period
1957 - Dec.
1958 - Dec.
1959 - Dec.
I960 - Dec.
I96I - Mar.
Changes:
1959 - Jan. y
Feb.
Mar.
Apr.
May
June
July
Aug,
Sept.
Oct.
Nov„
Dec.
i960 - Jan.
Feb.

Mar.

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

890 7,552
921 7,266
829 6,861*
874 6,236
855 6,559
-96
18
45
-ill
8
43
-79
3
-2
-27
20
111
-131
37
4l

-86
42

119
39
62

-44

13
-85
-13
-12
-32
-281

-85

-12
-9
-11
32

-11*8
-80

108
-69
-6
22
-8
9
86

-93
-1*8
30
-32
-156
-68
-JU5

-49
21
9

106
100
117

1/

Uses of funds 1 /
Busi- State &
Total
local
ness
Mort- Other sources
govt.
gages
or
uses
ities
ities
2/
(In millions of dollars)
a,331
4,973
1,81*9
5 >080
5,llk
-16
6
-31
58
-20
-47
13
-2

682 20,951
761
725 23,039
855
722 21*,768
910
673 26,701 1,005
# 7 ' 27,206 1,077.
17
-1*

la

-33
10
19

1*

-55
-28
23

-1
8
-20
-8
-21*

-12
-9
52
-19
13

-6
-9
3
13
-23

57
38

-8
32
-1*
34
53
3
-15
46

-2
-1*
-5

1
-6
-5

-2*
-5
-l

35,168
37,779
38,942
1*0,568
a,1*77 ..

208
-58
125
32
38
175
155
-32
161
45
11*5 39
-12
179
156
33
160
31
137
-37
121*
1*2
-12
132

175
216
330
-10
217
161
32
192
163
-283
65
218

-12
43
41
-21
63
-59
1*2

-11
167
319
-132
176

159
116
150
129
161
169
159
206
196
168
171
149
161
UiO
201*

4

178
118

6

11*
-25
13
-10

223
233
-31
154
232

17
26
29

233
272
1*01*

Sources of f u r t t
Net
change in
deposits

Other

31,695
34,01*1
34,983
36,349
37,006

3,473
3,738
3,959
4,219
4*471

122
113
313
6
120
202
-54
80
197
-187
-27
340

53
103
. 17
-16
97
-41
86
112
-34
-96
92
-122

-68
50
320 "
-95

57
117
-1
-37

118

58
221
21
105

-43

97

278
56
39

391

118
-45
-87
115
-149

170
136
. 351

63
136
53

.

Uses of funds represent net changes in a s s e t s and therefore r e f l e c t net, rather
than gross, uses.
2/ Includes Canadian government and p o l i t i c a l subdivisions, International Bank f o r
Reconstruction and Development, nongua ran teed Federal agency and other bonds as
v e i l as corporate bonds and stocks.
2 / Adjusted to eliminate the e f f e c t of a consolidation of a large savings bank with
a commercial bank.
Source.—National Association of Mutual Savings Banks and Federal Deposit Insurance Corp.