Full text of H.16 Capital Market Developments : May 25, 1964

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Not for Publication d e c 0 N T E 0 LLED .AFTER SIX MONTHS
H.14

May 25, 1964.
CAPITAL MARKETS DEVELOPMENTS
IN THE UNITED STATES
(Including Review of Sources and Uses of Funds of
Financial Intermediaries During the First Quarter)

Large public offerings of securities to obtain new capital
were in moderate volume last week, and will be in somewhat smaller
volume this week. Last week, ended May 22, four corporate issues
totaling $131 million and two State and local government bond issues
amounting to $26 million were sold. This week, ending May 29, three
corporate bond offerings with gross proceeds of $76 million and a
$24 million State and local issue are scheduled for offering to
obtain new capital. In addition, the New Jersey Highway Authroity
is expected to offer $25 million in bonds to refund outstanding
securities.
Bond yields. Yields on most seasoned, long-term bonds
declined last week. Aaa-rated State and local government bond yields
and those on U. S. Government bonds fell three and one basis points
to 3.07 and 4.14 per cent, respectively, to match their February lows.
Yields on lower-grade corporate and municipal bonds dropped two and
three basis points to 4.84 and 3.52 per cent, respectively.
Although seasoned, Aaa-rated corporate bond yields were
stable, yields onJ new offerings of corporate bonds (adjusted to an
Aaa basis) dropped two basis points further to 4.43 per cent.
Short- and intermediate-term interest rates. Rates on
6-month Treasury bills edged up a basis point.to 3.60 per cent last
week, but the 3-month bill rate was unchanged. Yields on 3-5 year
U. S. Government obligations rose three basis points to 4.07 per
The average effective Federal funds rate remained at
3.50 per cent, while most other money market rates were also unchanged.
Private housing starts and permits. Seasonally adjusted
private housing starts declined 6 per cent in April from the advanced
March rate. The annual rate of 1,558 thousand was moderately below a
year earlier and the lowest since last August.
On a three-month moving average basis, the annual rate of
starts in the most recent period was 1,627 thousand. This exceeded
the year-earlier average by 7 per cent and was within 5 per cent of
the recent peak reached in September-November.
Seasonally adjusted building permits also declined from
March to April and were just below a year earlier. While the month-




H. 14
to-month drop for structures of 5-or-more units was particularly sharp,
the rate in April was still substantially higher than at the same time
last year.
Government-underwritten starts have continued below year
earlier levels in each month this year. And in April, they accounted
for only 15 per cent of total starts, compared with 18 per cent in
April of last year and 23 per cent in April of 1961 and 1962.
Stock market. Common stock prices, as measured by Standard
and Poor's composite index of 500 stocks, declined slightly on balance
last week to close at 80.73 on May 22. Trading volume averaged 4.7
million shares a day, down 0.4 million shares from the average for the
previous week.
Institutional investors. Net inflows of savings to life
insurance companies, savings and loan associations, and mutual savings
banks totaled $2.0 billion during March, 3 per cent less than the
record inflow to these institutions a year earlier. Although growth in assets
of life insurance companies was larger than in March a year ago,
growth in savings capital at savings and loan associations and in
;
deposits at mutual savings banks fell behind last year, more than
offsetting the gain at insurance companies. (Time and savings
deposits at commercial banks rose $1.1 billion in March, three-tenths
i
less than in the corresponding month of 1963.
Net inflows to these three types of institutions amounted to
$5.2 billion during the entire first quarter of 1964, 6 per cent less
than last year's record January-March gain, but one-fourth more than
during the similar period of 1962. The lag in this year's quarterly
inflows behind last year was wholly attributable to slower growth in
savings capital at savings and loan associations. Assets at life
insurance companies and deposits at mutual savings banks both showed
larger quarterly gains than .in the corresponding period a year ago.
(Time and savings deposits at commercial banks increased $3.4 billion
during the quarter, one-fourth less than during January-March 1963.)
Growth; in assets of, life -insurance .companies during the
first quarter of, this year•amounted to $1.7- billion,--excluding
valuation adjustments--a record for the quarter and 11 per cent
greater than in the comparable period last year. Holdings of business securities advanced $0.7- billion, also a record for the quarter
and 6 per cent more than a year ago. While net acquisitions of
short-term commercial and finance company paper (at $0.1 billion)
were only two-fifths as large as last year, the increase in holdings
of long-term bonds and stocks (at $0.6 billion) was two-fifths larger.
Moreover, mortgage acquisitions amounted to $0.9 billion, two-fifths
more than a year earlier and only 6 per cent less than the 1956
rccord first qunrtcr total; and the seasonal reduction in holdings of




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-3-

H. 14

cash and U. S. Government securities combined (at $0.2 billion) was
limited to about half that of the first quarter last year. On the
other hand, acquisitions of foreign government securities (included in
other assets) dropped to about one-third the very substantial total of
a year earlier when large takedowns of Canadian government bonds were
occurring.
Savings capital at savings and loan associations went up
$2.3 billion during January-March, 23 per cent less than last year's
record first quarter gain, as withdrawals increased much more than
new savings capital. The increase, however, was one-sixth larger
than in the comparable period of 1962. Despite the shortfall in
growth of savings capital, net acquisitions of mortgages, amounting fo
$2.7 billion, were only nominally less than last year's record first
quarter volume. To help finance this large volume of mortgage
financing, the associations cut back their holdings of cash and Governments
somewhat--in contrast to a $0.4 billion gain a year earlier. Also, their
seasonal repayments of borrowings (primarily to the Federal Home Loan
Banks) were proportionally smaller than in other recent years.
The net gain in deposits at mutual savings banks during the
first quarter amounted to $1.2 billion, a first quarter record, 19 per
cent larger than during the similar period J.ast year, The growth of
net inflows was- attributable to larger gains in new deposits than in
withdrawals, apparently reflecting the impact of January increases in
rates paid at banks in the New York metropolitan area. Not withstanding this larger inflow of savings, however, growth in mortgage holdings
of savings banks (amounting to $0.9 billion) and in U. S. Government
security holdings(amounting to $0.2 billion), were one-eighth and Rnefourth smaller, than in the first quarter a year ago. Holdings of
business and miscellaneous securities, on the other hand, increased
$0.1 billion in contrast to a small reduction a year earlier; and
holdings of State and local government securities were reduced less
than in January-March 1963.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

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




-4Sources and Uses of Funds of Major Types of Savings Institutions 1/
First Quarter 1956-196.4
(In millions of dollars)
Uses of funds
Year

1964
1963r/
1962
1961
1960
1959
1958
1957
1956

U.S.
Govt.

Business

ities

ities

-166 -24
-226 -149
-173 172
-98 116
-182 -38
27
-148
-123
58
-206 -77
-215 -500

733
687
676
547
341
648
631
571
673

Mortgages

898
624
-406 '
550
- 709
401
455
688
957

State &
local
govt,
sec.

Memo:
Total
ExcludOther Total
assets sources ing
Valuation
change 2/

Life Insurance Companies
-27
1,732
750
2,164
4
1,567
1,860
920
149
1,535
1,481
305
104
1,557
648
1,867
83
1,227
... 441 1,354
149
1,285
1,390
314
86
1,345
1,425
318
21
1,221
336
1,333
155
1,218
1,305
235

Source of funds
Net change Borrow- Other
in deposits ing
or savings
capital

--

--

---

Savings and Loan Associations
1964
1963
1962r/
1961
1960
1959
1958
1957
1956

-351 293
-137 537
-130 312
-25 386
-300 238
-325 454
26
267
-235 347
-99 240

--

2,220
2,272
1,894
1,499
1,262
1,440
775
838
907

n. a.

n.a.

55
55
29
89
56
141
27
122
73

2,217
2,727
2,105
1,949
1,256
1,710
1,095
1,070
1,118

---

--

2,320
3,024 .
1,977
1,858
1,503
1,378
1,317
997
1,106

-688
-1,028
-560
-571
-699
-242
-592
-299
-326

585
730
688
662 :
455
574!
370:
372 ,
338<

Mutual Savings Banks
1964
1963
1962
1961
1960
1959
1958
1957
1956

-25
-65
69
-19
-53
-33
39
-76
-79

254
329
380
323
12
220
20
59
21

78
-24
43
34
31
-41
332
205
50

926
1,069
671
505
425
508
394
355
587

-16
-52
-43
-6
-12
55
33
7
43

123
57
-44
72.
72
12
54
54
30

1,339
1,314 .
1,076
909
475
721
872
604
652

--

--

.1,155
969
720
657
302
548
719
435
512

.

r/ Revised.
n. a.--Not available.
1/ For description of data see Exhibits N, 0, and P.
2/ Excludeschangesin miscellaneous assets of life insurance companies•(one portion of the
••other'1 in this table) which includes most, but not all, valuation changes, as well as
changes in:a few other items.




183;
345 !
356:
252
173
173
153
169
140

/-

I X IIIft1 I A. Hail I

J?

L O N G - T E R M B O N D YIELDS, H I G H - G R A D E

-A_/v

Exhibit A - Part II
Corporate
Aaa 1/

U . S . Govt*
long-term 2/

State and
local
government
Aaa 3/

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

(per cent)
1959-60 - High
1961 - High !f
Low
1962 - High
Low
1963 - High
Low
1964 - High
Low
Apr. 24
May
1
May
8
May 15
j May 22 £/

U . 61(1/29/60)
4.46(9/15)
L21(3/17)

4.43(2/16)
4.23(12/2$

4.42 (1/8/60)
U . 0 7 (12/29)
3.70(5/12)
4.12(2/23)

3.85(12/28)

3 . 6 5 (9/24/59)
(7/6)
3 . 1 2 (2/23)

3.37

3.26 (1/4)
2.88 (11/8)
3.18 (11/21)

4*37(12/27)
1.19(3/29)

4 . 1 6 (12/27)
3.87(1/18)

4.41(5/22)
4.35(2/28)

4.20(4/17)
4.14(5/22)

3.16(3/26)
3.07(5/21)

4.41
4.41
4.41
4.41 z
4.41 /

4.19
4.19
4.18
4.16
4.14

3.10
3.12
3.12
3.10
3.07

.

2 . 9 3 (3/28)

.59
.57
.34
.47
.30
.35

.92
.76
.46
1.04
.80
1.05

.27
.19

1.09
1.02

.22

1.09
1.07
1.06
1.06
1.07

.21

.22
.23
.25
.27

.88

jp/ P r e l i m i n a r y .
*U Weekly average of daily figures. Average term of bonds included is 22-24 years,
y Weekly average of daily figures. The series includes bonds due or callable in 10 years or more.
3f Thursday figures. Only general obligation bonds are included; average term is 20 years.
Note.—Highs and lows are for individual series and may be on different dates for different
series. For spreads, high refers to widest, and low to narrowest.




L O N G - T E R M B O N D YIELDS, L O W E R - G R A D E

Exhibit B - Part II

Corporate
Baa 1/

Date

State and
local govt.
Baa 3/

Spread between
Aaa and Baa
State and
Corporate
local govt.

(per cent)
1959-60 - High
1961 - High
Low
1962 - High

14.92(12/21)

1963 - High
- Low
1961* - High
Low

3.52(5/17)

U.93(1/4)
U.83(11/15)
4,86(5/15)
4.82(2/7)

3.63(6/27)
3.52(5/23)

3.58(3/26)
3.50(5/7)

.8U
.81
.66
.7U
.63
.71
•U8
.48
.43

Apr. 24
May
1
May
8
May 15
May 22

4.85
4.85
4.86
4.86
4.84^

3.52
3.52
3.54
3.55
3.52

.44
.44
.45
.45
.43

Note*

g/

j

5.3$(2/l2/60)

U . 16(1/7/60)

5.13(10/27)
5.00(4/21)

U.16(3/23)
3.93(11/9)

5.1KV5)

U.oMVii)

For footnotes see Exhibit A.




1.08
.93
.57
.82
.56
.63
.1ib
.49
.36
.42
.40
.42
.45
.45

S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST RATES, G O V E R N M E N T

Exhibit C - Part II
Date

Discount
y

1959-60 - High b.OO
3.00
1961 - High
3.00
Low
3.00
1962 - High
3.00
Low
3.50
1963 - High
Low
3.00
3.50
1961* - High
3.50
Low
Apr.
May
May
May
May

24
1
8
15
22 j)/

3.50
3.50
3.50
3.50
3.50

3-month
bills 2/

Yields
3-5 year
6-month
, bills 2/ issues 2/
(per cent)

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

k.59(i/8/60)
5.07(1/8/60) 5.00(12/24/59)
2.66 12/29) 2.90(1/29) 3.86(8/11)
2.17 (V27) 2.35(4/28) 3,15(5/12)
2.97(7/13) 3.13(7/20) 3.88(2/2)
2.65(6/8) 2.7U(6/e) 3.141(12/28)
3.55(11/15) 3.68(12/6) U.07 (12/27)
2.88(3/15) 2.93(3/8) 3.UU(1/18)
3.56(3/6) 3.74(3/6) 4.23(3/27)
3.45(5/1) 3.59(5/15) 3.99(2/7)

•79
.kh
.12
.2U
.02
.17
.oU
.21
.11

1.81
1.51
.92
1.19
.52
.70
.1*2
.71
.48

3.45
3.45
3.49
3.47. .
3.47y

.19
•15
.14
.12
.13

.71
.69
.61
.57
.60

3.64
3.60
3.63
3.59
3.60

4.16
4.14
4.10
4.04
4.07

Weekly rate eh own is that in effect at end of period at the Inderal Reserve Bank of New York*
Market yield} weekly averages computed from daily closing bid prices. Series of 3-5 year issues
consists of selected notes and bonds.
Note e —Highs and lows are for individual series and may be on different dates for different series#
Tor spreads, high refers to widest, and low to narrcwest.




SHORT- AND INTERMEDIATE- TERM INTEREST RATES,
HANKS AND OTHER PRIVATE BOIt ROWERS

I.I. OlSCOUHt 1AII

• T^"6 Monll..—

ID

I ,

V

V

W

f)

f

1101**1 IUH6S
.L_l-LJ_l_U_L.U.l. L.I_LJ..l .1-1.1.1.1-1.11. LI..LU.LIJ J .11..1.I.1J..L1_1.UL1 J-l-L I I I I L.LLU
Exhibit D - Part II
Stock exchange
call loan 1/

Prime
rate 1/

Finance company
paper 2/

Federal
funds 3/

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

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

U.50
U.50
U.50
U.50
U.50
U.50

4.50
4.50

Apr. 24
May
1
May
8
May 15
May 22 g/

4.50
4.50
4.50
4.50
4.50

standing0

5.50
U.50

5.00

°

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% 93(4/3)
3.75(5/22)

U.00 (5/13/60)
2 . 9 0 (11/37)
• U3 (V27)
3.00 (12/28)
1 . 3 0 (3/26)
3 . 5 0 (12/27)
2.U5 (7/26)
3.50(5/22)
3.20(3/6)

4.50
4.50
4.50
4.50
4.50

3.75
3.75
3.75
3.75
3.75

3.45
3.42
3.50
3.50
3.50

°n

8hort-term loans to

ineSee9£l79idayrraSgePUbli8bfld ^

y

finan0e

00m

P&nies

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

1.02
.U5
.15
.39

.12
• 41
• 22

.30
.30
.26
.28
.28

business borrowers of the highest credit
for

direotly placed paper for varying maturities

Weekly average of daily effective rate, which is the rate for the heaviest volume of purchase an!
sale transactions as reported to the Federal Reserve Bank of New Yoric.
Note i—Highs and lows are for individual series and may be on different dates for different .series. '
For spreads, high refers to widest, and low to narrowest#




STOCK MARKET

Exhibit E - Part II

!
!

Stock price
index 1/

1961-62 - High
Low
1963 - High
1964 - High
Low
March
April
May
8
May
15
May
22

]V

Common
stock
yields 2/
(per cent)
2.80

Trading
volume 3/
(millions
of shares)

72.014(12/8/61)
52.68(6/22/62)
lk.Uk[12/27)
81.01(5/15)
75.50(1/3)

3.01
3.00
3.09

10.1
2,k
6.5
6.1
4.3

78.80
79.94
81.00
81.01
80.73

3.03
3.00
2.96
3.00
3.03

5.4
5.6
5.4
5.1
4.7

3.96

* credit
Customers'
Bank
debit balloans to
"others" 5/
ances k/
(In millions of dollars)

Stock mai
Total

5 , 602( 12/61) It, 259 (12/61) 1, U18 (5/9/62)
L,ll2k(l/61) 3,253(3/61) 1,161(3/8/61)

7,298(1V63)5,586(11/63) 1,738(12/25)
7,314(4) 5,524(1)
1,810(4/15)
7,120(2) 5,366(3)
1,720(1/22)
7,141
7,314

5,366
5,510

1,775
1,804
1,808

2/ Standard and PoorU composite stock yield based on Wednesd«r data converted to *»*kly. f3®
prices by Federal Reserve. Yields shown are for dates on nhioh price index jnsaohed its high
3/ Averages of daily trading volume on the New Yortc Stock Exchange*
y
End of month figures for msober firms of the New York Stock Exchange which oarry nargin accounts)
excludes balances secured by U. S. Government obligations.
. . ..
t
others. For further detail see Bulletin.




\9
PRIVATE H O U S I N G STARTS AND PERMITS

E x h i b i t F - Part II

srartfr
Date

Building
permits
f housing ( s e a s o n a l l y
adjusted
Multi1-2
annual
family
family
r a t e ) 2/

Unadjustf id
T y p e of financing
S e a s o n a l l y adjustUnadjusted
FHA
ed annual rate

VA

Other

(Thousands of u n i t s )

1963 - Apr.
May
June
July
Aug.
Sept.

Oct.

1,618
1,618

1,571
1,588

1,455

1,732
1,847
1,564

1,564
1964 - J a n .
Feb.
Mar.
Apr.

1,718
r / - 1,657
r/
1,665
1,558

158
166
153

150

144
145
163

119
95
100

100

r/130

151

21
22
20
21
19
19
21
17
16
11
12
16
18

7
7
7
8
7
6
6
5
5
4
4
5
5

129
137
126

111.1
112.6
104.7

121

103.0

119
120
136
97
74
84
r/84

r/109
128

100.5
97.5
107.8
75.8
53.6
58.5

68.5

88.1
101.7

47.0

53.8
48.7
47.1
43.8
47.8
55.3
43.5
r/41.4
41.0
31.9

1,264
1,328
1,363
1,308

1,262
1,372

-1,412
1,369
1,426

1,314

1,405

42.2 r / 1,384
49.3
1.249

l l S i m i E ® :

in concept or timing! other starts inolnde both units financed by conventional mortgages and unit#
without mortgages.
2/ Building permits before January 1963 are Census estimates fer about 10,000 areas Identified as
having a leoal building permit system in 1959. Estimates beginning January 1963, are for approximately
12,000, or all known, peimit-iasuing place3. Unlike starts, seasonally adjusted building peraits
reflect direct adjustnent fer differences in the nuntoer ef working days per month, as well as other
differences in timing and coverage.




If
JXHIilT O^Parl '
YIELDS O N NEW 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 ,

I I I II II 11 I

ku-i I I I I I I 1

Exhibit G - Part II
Yields on Mew Corporate Bond Issues Adjusted to anAaa baa la

1963 - Dec. 6
13
20
27
1964 - Jan. 3
10
17
24
31
Feb. 7
14
21
•
28

.

4,41
4.45
4.54*

2
2
1

60.0
95.0
150.0

1
1

130.0
5.0
; 15.0

4.50
4.44
4.41

15.0
50.0
60.0

4.33
4.30
4.34

1
1

N o t e s A r e r a g e s of o f f e r i n g .
A. by M o o d y ' s I m s t o r e S e n d e e
and f o r e i g n o o s p a a i e a , a n d b e a d s g o a n m t e e d tar




Number Aa't of issues Average
yield
Included (mil.
of
fner cent)
isauea of dollara)

ii|

Number Aart of laauea
included (mil.
of
of dollara)
tfeefclv averages:

Mar.

6
13
20
27
Apr. 3
10
17
24
Hay
1
8
15
22

--

--

3

81.0

4.39

3

85.0

4.46
"

2
1
1
3
3

13.0
8.0
50.0
89.0
95.0

4.48
4-45
4.53
4.45
4.43

H. 14,
Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Capital
1964

1

Pnrnnraf-p 1 /
« «
|

919
749
700

732
746
976

876
1,133
628

E/ 1 , 1 0 0
e/
600

869
866
930

873
912
786

582
749
579

680
708
449

612
544
427

1,013
819
1,415

835
703
1,103

1,,051
729
416

650
578
550

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

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

2, ,454
2, ,665
1, ,837
2, 197

2,637
1,528
1,779

5 , 118
6 , 955
9 , 151

5,2086,790
8,568

January
February
March

E/
E/

930
685
754

613
594
1,144

592
: 859
807

April
May

e/ 2 , 1 0 0
e/
W -

930
904
1,013

1,113
760
1,132

^676
637
795

£./

-

July
August
September
October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

E/ 2,369

i

State and Loca:1 2/
1962
| 1963 p/ |

1964

1962

5,198
7,307
10,553

5,264
?*1?3
9,814

E/
E/
£/

i

& 2,368

Excluding finance companies-^
1st
2nd
3rd
4th

quarter ^
quarter
quarter
quarter

e/ 2,019

Year
e/
£/
1/
2/
3/

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

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

.9,434

9,303

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




(
:
J
i

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

Quarter
i

i

or
Month
1961

Total

Gross proceeds for new
capital and refunding 1/
Common
Bonds
and
Foreign
Mfg.
Publicly
Privately pfd. issues
included
offered
offered

Ill
IV

2 ,566
3 ,236

772
967

1 ,139
1 ,424

654
845

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

1963 - I
II
III
IV

2.,700
3,,634
2.,436
3:,466

1 ,108
1,,389
898
1,,319

1,,306
13,820
1,,251
1,,780

287
424
287
367 .

1964 - I
II

2,499

978

1,221

1962 - July
Aug.
Sept.
Oct.
Nov.
Dec.

630
922
632
976
784
1,197

200
477
176
539
286
264

1963 - Jan.
Feb.
Mar.
Apr.
My
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

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

1964 - Jan.
Feb.
Mar.
April e/
May

985
710
805
2,140

Net proceeds tor
new capital 1/ 2/
Public Communi Other
utility cations issuers

935
792

595
836

104
' 147

893
1 ,263

68 .
257
56
179

655
996
601
769

430
983
375
568

456
231
275
321

717
794
659
986

128
434
109
47

947
591
806
968

326
794
285
530

236
221
150
118

842
1 ,241
868
1:,629

300

29

418

43 8

273

.1:,240

366
363
295
314
446
808

67
82
161
123
52
125

13
43
46
34
99

217
218
166
153
271
345

118
110
148
141
175
252

88
120
67
260
4
57

159
301
199
282
253
451

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

338
279
361
38u

526
342
353
400

121
88
9:1
1,360

5
16
8
n. a.

149
123
146
220

109
155
174
140

157
83
34
1,330

515
326
L 00
0

69
62

g/ Preliminary. e/Estimated by Federal Reserve. %/Gross Proceeds exceed net proceeds by the
ca.f. of flotation. 2/For total see Exhibit H; other issuers are extractive, railroad and other
transportation, real estate and finance and commercial and other. Source.--Securities and
Digitized
forCommission.
FRASER
Exchange



H. 14

Other Security Offerings
(In millions of dollars)

1964
January
February
March
; April
May

£/
R/

£/:
e/

Gross lpng -term 1/
Federal agency 3/
Fore ten government 2/
1962
|
1963
|
1963
1962
1964

4
81
69
25

July
August
September
October
November
December
Jan. - April

e/

17 9

Year

2

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

498

197

771

January
February
March
April
May
July
August
September
October
November
December
Jan

232
133
76
57
114
11
63
83

- April

-

£/

737

•

R/
£/
sJ
e/

25

148

246
156

186

461

459
150
175
174
200
--

e/

25

Year

569

425

692

378

-"

33A

863

1,167

1,188

Net short-term 4/
Federal agency 3/
State and local government 5/
75
18
12
103
-106
236
272
46b
-189
-459
-186
-367
198
-482
'•458
127
589
292
92
E/
-30
-84
195
-118
-10
319
78
62
414
339
208
327
-406
-173
258
71
259
123
234
146
-102
-161
-339
551
n .a.

$

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

1,600

1,004

.
£/ Preliminary. e/Estimated by Federal Reserve, n.a.—Not available. 1/These data differ
from those in Exhibit H in that refunding issues, as well as new capital issues are included*
Long-term securities are defined as those maturing in more than one year. 2/lncludes secu- rities offered in the United States by foreign governments and their political subdivisions
and international organizations. Source: Securities and Exchange Commission. 3/Issues not
guaranteed by the U. S. Government. Source: long-term, Securities and Exchange Commission;
short-term, Treasury Department and Federal Reserve. 4/These data differ from those in
Exhibit H and above in that they represent new offerings less retirements, whether from the I
proceeds, of refunding issues or from other funds. Data include only issues with original
maturity of one year or less. 5/Principally tax and bond anticipation notes, warrants or

certificates and Public Housing Authority notes. In some instances PHA notes included may
http://fraser.stlouisfed.org/
have a somewhat longer maturity than one year. Source: Bond Buyer and Federal Reserve.

Federal Reserve Bank of St. Louis

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

Total
"'1963 - April
May

409
149
348
•
July
199
August
236
|
§
September
237
October
446
November,
180
December
547
L964 - January
307
263
February
|
March
335
I
April
1,557

I

. Corporate
State
Bonds
and
(Other than
Stocks
local
Convertible
convertibles)
bonds
governments
-263
146
431
—
389
149
-372
348
279
180
19
x
329
218
18
22
135
215
380
66
734
373
63
117
32
111
515
22
225
60
577
200
358
35
28
282
296
38
698
235
1.271
51
Large Individual Issues Offered Hay 1 through 22

1
)

Other 2/

--

.
Issuer

Type

'Amount
(millions '
of
dollars) --

|
Corporate
Jv.I.T. Financ '.1 Corp.
,Columbia Gas System,Inc.
f'uget Sound Pwr. & Lt. Co.
Philadelphia Elec. Co.
.Alabama Pwr. Co.
^irginia Elec. & Pwr. Co.
/Central 111. Pub. Ser. Co.
f otomac Elec. Pwr. Co.
.lichigan Consol. Gas Co.

Deb.
100,.0
Deb.
50,,0
1st mtg. bds.
15. 0
1st & ref. mtg. bds. 50. 0
1st mtg. bds.
29. 0
Com. stk.
36.0
20.0
1st mtg. bds.
1st mtg. bds.
45. 0
1st mtg. bds.
30.0

•otate and Local Government
-State of California
f •
:N. Y. State Pwr. Auth.

Rev. -ut.

G.0.

Cincinnati, Ohio
G.0.
Maryland State Roads Comm.
Rev. -S.T.
Denverj Colo.
Rev. -Ut.
Columbus, Ohio
G.0.
Boston, Mass.
G.0.
Puerto Rico Wtr. Resources Auth. Rev. -Ut.
State of Hawaii
G.0.
Oklahoma City, Okla.
G.0.
New Orleans, La.
G.0.




50.0
50.0
4.8
11.2
21.3
17.5
10.0
13.2
10.6
20.0
15.0
11.9
14.5

134
43
460
60
20
174
200

--

50
20

Coupon
Offerrate or
Rating
Maturity net inter ing
est cost vield
1989
1989
1994
1994
1994

'

1994
1999
1989
1966-90
1974-2014
1967-84
2006
1965-97
1965-79
1974-99
1965-99
1965-94
1966-99
1967-84
1966-89
1966-89

4-5/8 4.68
4-5/8 4.64
4-3/4 4.75
4-1/2 4.45
4-5/8 4.55

A
Baa
Aaa
A

4-1/2 4.45
4-1/2 4.46
4-3/4 4.60

Aa
Aa
Aa

3,.21
3,.53
3.,55
3. 16
3. 15
3.30
3. 19
3.45
3.68
3.21
3.22

-•

2.25-3.40^2.95-3.631/A
2.50-3.30
A
3.55
A
2 . 1 5 - 3 . 4 0 Aa
2 . 1 5 - 3 . 1 3 Aa
2.95-3.402-Aa
2 . 1 5 - 3 . 4 0 Aa
3.30-3.60lfiae
2.40-3.70
A
2.60-3.30. A
2.40-3.20^'A
2.50-3,40
A

H. 14
K-2
Large Individual Issues Offered May 1 through 22

Issuer

Type

Amount
(millions
of
dollars)

Maturity

Coupon
rate or
net interest cost

Offering
yield

Rating

V

Other
Republic of Finland

Bonds

15.0

1976

6

6.24

^--Rights offering. n,a.--Not available.
1/ Includes corporate and other security offerings of $15 million and over; State and
local government security offerings of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and Development
issues.and non-guaranteed issues by Federal agencies.
3/ In the case of State and local government securities, G.O. denotes general obligations;
Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.Ut.,
revenue bonds secured only by revenue from quasi-utilities; Rev.-S.T., revenue bonds
^ secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely
by lease payments.
4/ Bonds maturing 1989-90 not publicly reoffered.
5/ Bonds maturing 2014 not publicly reoffered.
6/ Bonds maturing 1974-76 not publicly reoffered.
%/ Bonds maturing 1965-79 not publicly reoffered.
8/ Bonds maturing 1988-89 not publicly reoffered.




i
5
7*

!

i7
H. 14
Exhibit L
Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
During month following
date shown
State end
Corporate
local govt. 1 Other 2/
.963 - Apr. 30
May 31
1
June 28
|
]
July 31
IS
Aug. 31
4
Sept. 30
%
Oct. 31
^
Nov. 29
Dec. 31
4964 - Jan. 31
1
Feb. 28
J
Mar. 31
Apr. 30

1

i

!

149
223
170
221
158
240
145
392
305
155
224
1,587
651

Corporate

40
447
255
460
142
75
329
20
210
561
255
137
469
316
454
669
25
345
15
Forthcoming Large Offerings as

Issuer

Corporate
1
Jexas Eastern Trans. Co.
fountain Fuel Supply Co.
Wisconsin Pub. Ser. Corp.
Communications Satellite Corp.
„jOng Island Lighting Co.
general Tel. Co. of Cal.
ichigan-Wisconsin Pipe Line Co.
^Louisiana Pwr. & Lt. Co.
public Ser. Co. of Colorado
aclede Gas Co.
^Carolina Pwr. & Lt. Co.
2 Consolidated Edison Co.
.•General Motors Accpt. Corp.
acific Gas. & Elec. Co.




Type
Deb.
Deb.
1st mtg. bds.
Com. stk.
1st mtg. bds.
1st mtg. bds.
1st mtg. bdis.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Pfd. stk.
Deb.
Com. stk.

234
288
215
267
183
240
145
1 ,992
1 ,905
1 ,771
L ,649
1,,837
844
of May 22

Amount
(millions
of
dollars)
40.0
18.0
18.0
200.0
25.0
35.0
20.0
25.0
35.0
20. 0
30.0
60.0
150.0
68.0

Subsequent to
date shown
State and
local govt. Other 2/
40 .
460
75
20

599
582
287
512
468
757
401
349
731
667
646
953
575

25
15

Approximate date
of offering
May
May
May
June
June
June
June
June
June
June
June

26
27
28
2
3
4
10
11
17
19
24

July

(rts. ex.)

n
H. 14
L-2
Forthcoming Large Offerings, as of May 22 (Cont'd)

Issuer
State and Local Government
Houston, Texas
Los Angeles Un. Sch. Dist., Calif.
*Ballas Ind. Sch. Dist., Tex.
Penna. State Highway & Bridge Auth.
^Public Housing Auth.
Orange Co. Spec. Tax Dist. #1, Fla.
Florida Dev. Comm.
Va. State Highway Auth.
Seattle, Wash.
Merced Irr. Dist., Cal.
Pittsburgh, Pa.
Dade County, Florida
Forth Worth, Texas
Atlanta Fulton Co. Rec. Auth., Ga.

Type

G.O.
G.O.
G.O.
Rev.^Q.-Ut.
--

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

Amount
(millions
of
dollars)

Approximate date
of offering

23.5
25.0
10.0
25.0
119.1
25.0
17.0
31.0
60.0
36.0
35.0
46.0
14.1
18.0

May
June
June
June
June
June

27
2
4
16
17
29

Spring
July 15
July 15
Indefinite
Indefinite
Indefinite
Indefinite

Other
None
^--Included in Table for first time.
1/ Includes corporate and other issues of $15 million and over; State and local
government issues of $10 million and over.
If Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues for Federal agencies.
Note.--Deletions for reasons other than sale of issue: None.




)•

5#
0

M
H. 14
Exhibit M
Foreign Government and Corporate Security Offerings
and Placements in the United States
Part I:

Sale
Date
!

3/23

Amount
(millions of
dollars)
50.0

Public Offerings

Issuer and Description of Issue
~~
A! Sold March 1 through May 22
Inter-American Development Bank-4-1/2
bonds, maturing 1984, offered to
yield 4.507.

4/1

25.0

United Mexican States—6-1/2% sinking
fund debentures, maturing 1979
offered to yield 6.75%

5/7

15.0

Republic of Finland--6% bonds, maturing
197f>, offered to yield 6.24%




B.
None

Prospective Offerings

'

H. 14
M-2

Part XI:
Date
reported

Private Placement--Reported March 1 through May 22
Amount
(millions of
dollars)

Issuer and Description of Issue

4/1

.12.5

5/8

4.0

Israel Discount Bank Ltd.--5-1/2% capital
notes, maturing 1979--no information
available on takedown.

5/8

10.0

Pacific Great Eastern Railroad Co.--4-1/2%
sinking fund debentures, maturing 1994-no information available on takedown

21.0

Upper Lakes Shipping Ltd.--6% installment
notes, maturing 1966-79--no information
available on takedown.

* 5/18

C. Itoh & Co. Ltd--6-l/2% convertible
unsecured debentures, maturing 1984-no information available on takedown.

Note: For retrospective data on aggregate foreign corporate and government security
offerings in the United States see Exhibit I and J. There is no simple relationship
between the data showiT in this Exhibit and that shown in Exhibits I and J because
the latter includes privately placed securities in the period in which funds are
actually takendown but only in the amount of takedown, while the placements shown
in this exhibit arc included when reported, frequently with little or no information
concerning timing of takedowns. Full or partial takedowns may take place both
prior and subsequent to the data a placement is reported.
*--Included in table for first time.




21
Exhibit N
Sources and Uses of Funds by
Life Insurance Companies

Cash
Value of assets
at end of period:
1960 - Dec.
1961 - Dec.
1962 - Dec.
1963 - Dec.
1964 - Mar.
Ch

,13
44
23

204
237
382

1.21
149
325!

e<=5
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

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

145
10?
CO
27
-17
-14
14C
143
87
159
2= 0
136

737
442
356
457
360
209
681
603
4:3
679
771
707

-94
86
-33
14
5
-42
-32

190
58
50
143
13
233
81
160 :
-139
367
-50
219
105
156
88
106
-56
186
64
225
109
274
-411
391

31
-9
-18
-27
-36
-19
-27
-19
-43
1
-4
-13

215
139
270
292
255
256
244
299
269
303
277
730

360
236
256
160
312
151
354
260
-54
242
-88

842
471
46 8
633
626
462
972
591
403
846
5:
696

27
23
-74

261
131
233

-17
- 2
- 8

296
285
298 c/ 2 98
156
315

9.63
665
536

Oct.
Nov.
Dec.

30
40
13

14
-46

260
211
505

1962 - Jan.
Feb.
Mar.
Apr.
i May

-99
1
-75
12
4

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

1962' - Jan.
Feb.
Mar. r /
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.

p/1964 - Jan.
Feb.
Mar.

58
-24
42
12
35
120
-134
-17
-75
-14
29
-1
54
-10

87
6
-21

119
-159
-15

119,576
126,816
133,291
140,903
143,067

23 .
16
-178

48,631
51,362
53,468
55,997
56,622

-22

IT-,472
19,582
20,854
22,909
23,659

41,815
44,250
46,957
50,543
51,441

6,428
6,135
6,17.1
5,755
5,731

i9i!s-

Other

1
Total Memo: Total
sources Excluding
Valuation
Change 3/

3,606
3,902
4,037
3,876
3,849

1,329
1,392
1,456
1,442
1,276

. July
Aug.
Sept.
Oct.
Nov.
Dec.
:

lisps of Funds 1/
State and
Business 2 ,
U. S.
Mortlocal
Securities
Govt.
Govt,
se gages
Securi- Bonds & I Short-tern
curities
Stocks I paper
ties
(In millions of dollars)

-261

223
25
-76
91
-24
-95
121
-21

-48
28
36
-224
133
-71
-211

-19
-162

295
193
348
381
489

270
-68
-94

.

changes in assets and therefore reflect net.
!

2/

Include^securities of domestic corporations only.

% EE




Source.-Institute of Life Insurance.,

rrusti

H. 14

Sources and Uses of Funds by
Savings and Loan Associations

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

.

Uses of funds 1/
Net
U. S.
change
Total
Other
Govt.
Mortsavings
secur- gages 2/ assets sources
capital
ities
(In millions of dollars)

-

724
779
1,495

75
79
415

244
. 265
-737

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

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

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

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

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

170
371
190
.447
427
-694
356
406
65
349
279
-891

177
916
1,124

464
754
1,102

-421
-213
-54

134
375
76

60 ,070
68 ,834
78 ,770
90,849
93

4,131
4,775
5,346
6,178
6,233

71,476
82,135
93,605
107,431
105,648

82
84
437

43
. 79
44

811
757
745

107
203
-53

1,043
1,123
1,173

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

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

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

671
696
905
1, 061
1, 178
1, 244
1, 103
1, 208
1,097
1, 118
&06
992

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

158
64
71

604
710
906

-189
109
135

-396
33
12

Borrowing 3/

7,137
8,394
9,740
11,215
11;80..

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

62,142
70,885
80,236
91;205
93 . 525

.

'

1

|

§

128
355
h
205
P
304
f
506.
-621
' 250
332
t
83 .
I
261
266
-723
i

!

uses. Savings and loan associations do not hold business securities and data on holdings
of State and local government bonds, presumed to be.small, are not available.
other borrowing. Source--FSLIC.


2/ Advances
from Home Loan Banks and


5

. Other

2,197
2,856
3,629
5,011
4,323

2,680
3,315
3,926
3,964
3,613

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

Source ol: funds

j

'

Exhibit P
Sources and Uses of Funds
by Mutual Savings Banks

U. S.

Uses )f funds 1/
BusiState
ness
local govt.

ities

ities 2/ ities

6,239
6,136
6,089
5,837
6,093

5,080
5,053
5,188
5,092
5,3 70

672
677
528
442
426f

26,709
28,915
32,070
36,008
36,934

-27
7
-20

-120
-13
-21

-56
-20
5

-5
-5
-1

178
167
212

10
47
12
-79
12
54
-46
-29
44
15
-35
124

94
77
209
-216
16
-38
-11
26
3
-162
-19
-26

17
1
25
-35
2
17
66
14
2
3
27
-4

-7
-18
-18
-26
-20
-5
-5
-9
-5
-15
-6
-15

-137
51
21
-61
22
37
-63
-18
38
-28
-8
101

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

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

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

Cash
Value of assets
at end of period:
1960 - Dec.
872
1961 - Dec.
828
1962 - Dec.
957
1963 - Dec.
912
1964 -Mar..
88 7
Changes:
1961 - Oct.
Nov.
1962 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
2/1963 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.

-2
-3
-2
-8

Mortgages

Other

Total
Sources <of funds
sources
Net
Other
change
in
denosits

1,001 40,573
1,224 42,833
1,284 46,118
1,402 49,693
1.525 51,032

36,353
38,487
41,582
44.883
'46,038

4,220
4,346
4,536
4,811
4,994

-44
46
117

-74
181
292

-15
48
471

-59
133
-179

253
188
230
270
254 .
302
290
312
243
305
272
236

-118
12
62
-45
68
-22
-10
53
28
-32
36
28

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

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

167
142
47
-80
150
-118
113
152
-114
-72
' 127
-200

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

13
-6
49
-58
52
-11
11
71
37
-42
38
-34

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

229
215
526
11
232 .
422
137
174
410
198
118
578

101
160
84
-122
160
-119
118
171
-102
-101
141
-188

...
77
J4
345
93
400
47 7
1964 - Jan.
88
15
Feb.
32
82
-13
283
47
5
435
260
175
Mar.
6
16
84
-3
298
25
427
495
-69 ;
)/ Preliminary.
L/ Uses of funds represent net changes in assets and therefore reflect net, rather than
gross uses.
]_/ Includes Canadian government and political subdivisions, International Bank for Reconstruction and Development, nonguaranteed Federal agency and other bonds as well as
corporate bonds and stock.

Source--NAMSB
and FDIC