Full text of H.16 Capital Market Developments : November 26, 1962

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Not for PublicationTOSCONTBOLLTTOAFTER SIX MCWTHS

November 26, 1962.
V CAPITAL MARKETiDEVELQPMENTS
tN THE UNITED STATES
f e d e r a l r e s e r v e b a n k A ncluding Sources and Uses of Funds of Financial
OF RICHMOND
1
Intermediaries During the Third Quarter)

The volume of public security financing was quite light last
week, but is expected to be fairly substantial this week. During the
week ending November 23, no large issues of either corporations or State
and local governments were publicly offered. This week, ending November
30, one $65 million corporate issue for new capital and four States and
local issues with par value of $64 million are scheduled for offering.
In addition Pacific Power and Light Company is expected to offer $32
million of first mortgage bonds r.o refund outstanding securities.
Bond yields. Changes in yields on seasoned, long-term bonds
were mixed again last week. Both Aaa- and Baa rated corporate bond yields
edged down another basis point to 4„ 24 and 4,95 per cent, respectively,
their lowest levels since early-April 1961 and mid-May 1959. Yields on
both Aaa- and Baa-rated State and local government bonds were stable at
2.89 and 3.53 per cent, respectively. U. S, Government bond yields
rose an additional basis point to 3.88 per cent.
Average yields on newly offered corporate bonds, adjusted to
an Aaa basis, were 4.00 per cent last week, 13 basis points under the
average for the week ending November 9, the last week any such bonds were
offered; most of this decline, however, was probably due to the special
characteristics of one of last week's issues.
Short- and intermediate-term interest rates. Yields on Treasury *
bills and 3-5 year U. S. Government obligations advanced last week. Rates
on 3-month and 6-month Treasury bills rose 2 and 4 basis points, respectively,
while yields on intermediate-term U. S. Government obligations were up
3 basis points. The average rate of interest on directly-placed finance
company paper with 90-179 day maturity increased 2 basis points to 3 13
per cent, reflecting the full effect of the rate change of the previous
week. The effective rate for Federal funds rate declined slightly to 2,94
per cent. Other short- and intermediate-term interest rates were unchanged.
Housing starts. Private housing starts (including farm) rose
to a seasonally adjusted annual rate of 1,497 thousand in October. This
was up 17 per cent from the reduced rate in September, when the number of
potential working days was considerably less, and was 4 per cent above
a year earlier, On a three-month moving average basis, the rate for the
most recent period was 1,435 thousand, about the same as the third quarter
average and also 4 per cent above a year earlier,
Housing permits in permit-issuing areas declined somewhat
in October, following an appreciable rise in September. The seasonally
adjusted annual rate of 1,169 thousand was 5 per cent below the peak
reached early this year and the same proportion above a year earlier.




-2-

Stock prices. Common stock prices advanced sharply further
last week in very active trading. Prices, as measured by Standard and
Poor's composite index of 500 stocks, rose over 2 per cent on balance
to close at 61=54 on November 23, At Friday's closing level, stock
prices had advanced 15 per cent from their late October low and were
one-sixth above this year's late June low, but still 15 per cent belowlast December's high. Trading volume was heavy last week, averaging
4,6 million shares a day.
Institutional investors. The net inflpw of savings during
September at three major types of financial intermediaries--life insurance
companies, savings and loan associations, and mutual savings banks-totaled $1.7 billion, 15 per cent greater than a year earlier. Appreciably
larger increases this year than last in both savings capital at savings
and loan associations and deposits at mutual savings banks more than offset
a somewhat smaller increase in assets of life insurance companies < (Time
and savings deposits at commercial banks rose $0.9 billion in September,
one-half more than last year,)
During the third quarter this year, the net inflow of savings
at these institutions amounted to $4.2 billion, one-fourth larger than
during the corresponding period of last year. Inflow at all three types
of institutions was appreciably larger than last year with the sharpest
increase taking place in deposits at mutual savings banks. (Time and
savings deposits at commercial banks climbed $2,3 billion during the
third quarter, one-third larger than the July-September increase last
year.)
Assets of life insurance companies rose $1.9 billion during
the third quarter, 14 per cent more than during the comparable period of
1961. Although holdings of business securities expanded $0.7 billion,
about the same as last year, the increase in holdings of long-term bonds
and stocks ($535 million) was one-sixth less than last year, while
holdings of short-term commercial and finance company paper rose more.
Net acquisitions of mortgages totaled $0.6 billion, the largest third
quarter total since 1956 and two-fifths more than last year. Holdings
of cash and U. S. Government securities rose $0.2 billion, three times
the increase last year.
Savings capital at savings and loan associations went up
$ 1 5 billion during July-September, a record for the quarter and one-sixth
more than last year, Net acquisitions of mortgages amounted to $2.7
billion, about one-tenth more than a year earlier and, except for the
second quarter of this year, the largest quarterly increase on record.
In order to acquire these mortgages, associations supplemented their
savings flow, as they had a year earlier, by reducing their holdings
of cash and U. S. Government securities ($279 million) and increasing
their borrowings ($276 million).




Deposits at mutual savings banks climbed $0.8 billion during
the third quarter, the largest quarterly increase on record and nine-tenths
more than during the corresponding period of 1961. Holdings of mortgages
rose $0.8 billion, also the largest increase for any quarter on record
and one-half larger than last year. Holdings of cash and U. S. Government
securities declined slightly, in contrast to a slight rise last year, but
net acquisitions of business and other securities totaled almost $0.1
billion, whereas, during the third quarter of last year holdings of such
securities were reduced by $40 million.
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.




Sources and Uses of Funds of Major Types of Savings Institutions V
Third Quarter 1953-62
(In millions of dollars)
U. S.
Year

Cash
ities

Uses of funds
State &
BusiMort- local Other
govt. assets
gages
ities

Total

Sources of funds
Net change
in deposits BorrowOther
or savings
ing

Life insurance companies
1962
1961r/
1960r/
1959
1958
1957
1956
1955
1954
1953

73 107
40
19
-4
5
-48 -47
5 220
8 -59
-2 -121
78
83
5 -257
83 -100

657
655
460
357
534
685
510
451
619
558

616
440
559
568
409
512
826
766
651
477

46
78
152
159
81
32
65
26
136
42

426
461
310
364
271
257
258
155
258
149

1,925
1,693
1,482
1,353
1,520
1,435
1,536
1,559
1,412
1,209

——

——

--

--

——

' ——

——

--

Savings and loan associations
1962
1961r/
1960r/
1959
1958
1957
1956
1955
1954
1953

-348
70
-266
53
-178 -50
-525 124
-437 298
-412
91
86
-317
54
-349
-113 • 10
-137 -15

--—

-—
—
—

2 ,668
2 ,449
2 ,023
2 ,222
1 ,696
1 ,224
1 ,215
1 ,602
1 ,184
1 ,017

n.a.

n.a.

7
9
-104
-35
-33
21
-20
-15
-58
-6

2,397
2,245
1,691
1,786
1,524
924
961
1,288
1,022
858

1,485
1,269
1,247
1,042
880
524
696
692
696
595

967
616
574
387
640
436
503
505
492
444

816
432
404
223
498
312
337
413
407
357

276
261
-53
298
98
47
-15
301
15
83

636
715
497
446
546
353
280
295
.an
180

Mutual savings banks
1962
1961
1960
1959
1958
1957
1956
1955
1954
1953

18
-31
6
9
-53 -50
-78 -57
-53
3
-88 -13
-82 -91
-66 -18
-38 -•145
-27 -44

82
-40
62
-36
76
178
50
-95
72
94

845
564
561
495
572
336
611
676
543
372

-19
-8
11
12
6
-2
-4
36
18

71
76
62
52
30
17
17
12
24
31

n.a.--Not available.
. r/ Revised.
1/ For description of data see Exhibits M, N and 0.
2j Includes Federal Home Loan Bank advances only.




.1

'I
s
•
.'3

151
184
170
164
142
124
166
92
85
87

h
%
^
,;
;;'

:

Sources and Uses of Funds of Major Types of Savings Institutions 1/
First nine months 1953-1962
(In millions of dollars)
Uses of funds
U. S. BusiGovt, ness Mortgages
securities ities

Year

State &
local
Other
govt,
sec.

Total
sources

Sources of funds
Net change
in deposits BorrowOther
or savings
ing
capital

Life insurance companies
1962
1961r/
1960r/
1959r/
1958
1957
1956
1955
1954
1953

-124
-20
-125
-208
-79
-129
-180
-58
-119
-108

-283
-6
266
-266
-746
108
-681
-265

1962
1961r/
1960r/
1959r/
1958
1957
1956
1955
1954
1953

-289
5
-103
-765
169
-472
-344
-361
198
-93

261
455
63
701
454
438
390
310
46
195

202

1 ,875
1 ,792
1 ,322
1,,672
1 :,725
1.,781
1.,558
1,,419
1,,754
2,,060

1 ,508
1 ,612
1 ,882
1.,361
1.,199
1.,702
2.,685
2,,322
I,,760
1,,453

202
216
308
474
244
91
214
150
499
111

590
1,515
1,093
936
940
827
621
520
950
327

4,253
5,115
4,197
4,229
4,295
4,006
4,152
4,461
4,163
3,578

Savings and loan associations

——
-——

—

7 ,466
6 ,437
5 ,246
5 ,957
3 ,975
3 ,329
3 ,406
4 ,487
3:,020
2 ,720

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

n.a.

470
369
220
462
152
429
280
167
72
104

7,908
7,266
5,426
6,355
4,750
3,722
3,723
4,592
3,334
2,922

6,083
5,697
4,962
4,522
4,005
3,102
3,402
.3,295
2,978
2,540

303
93
-499
529
-246
-119
-294
453
-266
-63

1,522
1,476
963
1,304
991
739
615
844
622
445

—

335
r/346
381
375
348
282
316
223
228
180

Mutual isavings banks
1962
1961
1960
-959
1958
1957
1956
1955
1954
1953

25
160
51
-4
-42 -359
38
-174
-24 -160
-137 -121
-130 -254
-103
-91
-34 -312
-78 - -2

109
44
144
-21
601
580
166
-133
298
379

2.,342
1.,649
1.,445
1.,475
1,,568
1, 057
1,758
1,831
1,476
1,098

-113
16
-34
51
54
16
28
52
161
71

28
104
117
114
100
75
82
52
88
75

2,552
1,861
1,271
1,483
2,139
1,470
1,650
1,611
1,677
1,544

n.a.--Not available.
r/ Revised.
1/ For description of data see Exhibits M, N and 0.




2,217
r/1,515
890
1,108
1,791
1,188
1,334
1,388
1,449
1,364

---

EXHIBIT A, Pari I
j LONG-TERM BOND YIELD$7 HTGH.dRADE

COKPOIATI A

j

f

U.S. OOVUHMIHT

Change In

Exhibit A - Part II

Corporate
Aaa y

U. S. Govt,
long-term 2/

State and
local
government

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

(per cent)
1957 - High
1958 - Low
1959-60 - High
1960-61 Low
1961 - High
1962 - High
Low
Oct.
Nov.
Nov,
Nov.
/Nov.
Note:

26
2
9
16
23 £/

1*.H*
3.55
l*.6l
it. 21
1*.1*6
4.43
4.24

(9/27)
(5/2)
(3/29/60)
(3/17/61
(9/15)
(2/16)
(11/23)

4.27
4.26
4.26
4.25
4.24 >

3.76 (10/18)
3.07 (4/25)
it. 2*2 (7/8/60)
3.70 (5/12/61)
il.07 (12/29)
4.12 (2/23)
3.85 (5/11)

3.1*5(8/29)
2.61; (5/1)
3. 65 (9/24/59)
2.99 (9/3/60)
3.37 (7/6)
3.26 (1/4)
2.88 (11/8)

.60
.22
.59
.19
.57
.47
.29

3.89
3.87
3.86
3.87
3.88

2.88
2.88
2.88
2.89
2.89

.38
.39
.40
.38
.36

For footnotes see Exhibit B.




.50
,3U
.92
.1*6
.76
1.08
.80

-

1.01
.99
.98
.98
.99

EXHIBIT 8, Port I
LONG-TERM BOND YIELDS, LOWER-GRADE

.M

COepOBATt Be

STATE AND 1 0 C A I GOVERNMENT I

[1957

1958

1959
Exhibit

Date

Corporate
Baa 1 /

1961

I960
B

- Part

State and
local govt.
Baa

1962;

II

3/

Spread between
Aaa

and

Corporate

Baa
State and
local govt.

(per cent)
1957

- High

5 - 1 0 (11/29)

1958

- Low

k . $ L (7/11)

3 , 6 k (5/1)

5 . 3 6 (2/12/60)

W 6

1959-60

- High

U . 5 1 (8/29)
(1/7/60)

1.27

1.21

.77
.81

.93
1.08

1960-61 Low

U . 9 8 (9/9/60)

3 . 9 3 (11/9/61)

.66

.57

1961

5 . 1 3 (10/27)

It. 1 6 (3/23)

.81

5.11

(1/5)

4.04

(1/11)

.74

.93
.82

4.95

(11/23)

3.52

(5/17)

.63

.56

.71

.70

.73

1962

- High
- High
Low
26

4.98

3.58

Nov.

2

4.99

3.53

Nov.

9

4.97

3.53

.71

.65

4.96

3.53

.71

.64

4.95 /

3.53

.71

.64

Oct.

Nov.

16

-'Nov. 2 3 j>/

.65

p 7 Preliminary.
v/ Weekly average of daily figures. Average term of bonds included in 23-26 years.
2 / Weekly average of daily figures. The-sieries includes bonds due or callable in 10 years or more.
3 / Thursday figures. Only general obligation bonds are included; average tern is 20 years.
N o t e . — H i g h s and lows are f o r individual series and m a y be on different dates for different
series. For spreads, high refers to widest, and low to narrowest.




EXHIBIT C, P e t 1
SHORT;

AND

INTERMEDIATE-

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

Wt.Uy j

S - $ YEA# ISSUES

F. I . DISCOUNT ( A T E
3 - MONTH t l l l S
Market Yield

LLLLLU

I II I II II

Exhibit
Discount
Date

rate
V

1957

- High

1958

- Low

1959-60

- H

1960-61 Low

3.50
1-75
it. 0 0
3.00

C

- Part

II

Yields

Spread

3-month

6-month

bills

bills

2/

3.64(10/18)
.58

( 5/29 )

ii.59 ( 3/8/60)

2/

—

3-5 year
issues

2/

1,81

M
.24

1.19

2 . 1 1 (10/28/60 ) 2 . 3 5 (4/28/61) 3 . 1 5 ( 5/12/61)
2 . 6 6 (12/29)

2 . 9 0 (12/29)

3.86 (8/11)

3.00

2.97

(7/13)

3.13

(7/20)

3.88

(2/2)

3.00

2.65

(6/8)

2.74

(6/8)

3.43

(11/9)

3.00

2.74

2.83

3.48

.12

.38
1.51

.04

.61

.09

.74

Nov.

2

3.00

2.74

2.82

Nov.

9

3.45

3.00

2.82

.08

2.87

3.43

Nov.

16

3.00

.05

2.82

2.86

3.46

.61

23 £ /

3.00

.04

2.84/

2.90

.64

3.49

.06

.65

V^ov.
y

.86

.26
.79

3.00

on

.Oh

2 . 1 k (6/6)
5 . 0 0 (12/24/59)

- High

on 3 -

issues

5 . 0 7 (1/8/60)

- High
Low

bills|3-5 yr.

U . O U (10/18)

1961

26

6-mo.

between yields

bills and yields

3 . 0 2 (12/26)

1962

Oct.

month

.71

Weekly rate shown is that in effect at end of period at the Federal Reserve Bank of N e w Y o r k .

2 / Market yield; weekly averages computed from daily closing bid prices.
Series of 3 - 5 year issues
consists of selected notes and bonds.
N o t e . — H i g h s and lows are for individual series and m a y be on different dates for different series
For spreads, high refers to widest, and low to narrowest.




EXHIBIT 0, Pari I
SHORT--AND
BANKS AND

I N T E R M E D I A T E - T E R M INTEREST RATES,
OTHER

PRIVATE BORROWERS

STOCK E X C H A N G E
( A l l LOANS

F I N A N C E C O M P A N Y PACER
PRIME RATE

N. T. DISCOUNT
RATES

FEDERAL FUNDS

I I I I 1 I I

I I I I I I I I I I I I I I I l - L L U - L L L L J-LLLl-L-LLLJJ_l-1 I I I I . U I I I I J X

Tl'sT

I960
lixhibit D

Date

Stock Exchange
call loan 1 /

Prime
rate 1 /

19 61

- Part

Finance

1162

II

company

paper 2/

Federal
funds 3 /

Spread
3-mo.

between
bills and

finance Co.

paper

(per cent)
1957

- High

1958

- Low

1959-60

- High

L50

3 . 8 8 (11/15)

3.50

3.50

1 . 1 3 (8/8)

5.50

5.00

5 . 1 3 (1/22/60)

L 5 0

3 . 5 0 (11/8)

.63

.13(5/29)

-.35
1.02

L O O (5/13/60)

1960-61 Low

ii.50

L 5 o

2 . 5 0 (8/5/61)

1961

- High

1|.50

2 . 8 8 (12/29)

- High

L5o

3 . 0 0 (12/29)

1962

.56

4.50

4.50

3.25

(7/20)

3.00

(11/16)

Low

.45

4.50

4.50

2.88

(6/1)

1.30

(1/26)

.19

Oct.

26

4.50

• ii3 (1/27/61)

.11

4.50

3.00

2.88

.26

Nov . 2

4.50

4.50

2.95

2.93

.21

Nov.

4.50

4.50

3.03

3.00

9

.21

Nov.

16

4.50

4.50

3.11

3.00

.29

Nov.

2 3 ]>/

4.50

4.50

3.13

2.94

.29

IJ

Weekly rate shown is that in effect at end of period. Stock Exchange call loan rate is going rate
'
on c a l l loans secured by customers 1 stock exchange collateral at New York City banks. Prime rate
is that charged by large banks on short-term loans to business borrowers of the highest credit
standing.
2 / Average of d a i l y rates published by finance companies for directly placed paper for varying maturities
in the 90-179 day range.
3 / Weekly average of daily effective rate, which is the rate for the heaviest volume of purchase and
sale transactions as reported to the Federal Reserve Bank of New York.
N o t e . — H i g h s and Iowa are for individual series and m a y be on different dates for different series.
For spreads, high refers to w i d e s t , and low to narrowest.




0
-I

!

0

EXHIBji^Jor. I
STOCK

MARKET
p1--4-3

Av

'ro°

Jl.
1» 0 1 Dollar:

V.'.V.'

f

+000

/

5'°°_

CI 1MB* EI 7 m >
r

>

.

'

"

\

.

_i5_

V^Z'

£!•* N^OE IN^ SERIES
Million! of Sho

1
1962

m o
Exhibit E

-- P a r t

Common
Stock price
index 1/

Trading

stock
yields
(per

II

volume
2/

Stock market

cent) of

Total

shares)

debit bala n c e s 1*/

(In m i l l i o n s
1960-61

- High
Low

1962

- High
Low

September

72.01* (12/8/61)

2.82

customer credit

Customers

3/

(millions

Bank
loans

to

"others" 5 /

of d o l l a r s )

5.8

5,602 (12/61)1;,259 (12/6I) 1,377 (e/30/6i)

2.2

l i , 1 1 * 2 ( 5 / 6 0 ) 3,001* ( 7 / 6 0 )

53.32

(10/21/60)

3.62

70.94

(3/16)

2.93

10.1

5,491

(4)

4,111(1)

1,418

(5/9)

52.68

(6/22)

3.96

2.4

4,876

(7)

3,562

1,269

(9/26)

3.60

3.3

r/5,156

r/3,887

October

56.17

3.71

3.4

5,165

3,864

Nov.

9

58.78

3.55

Nov.

16

60.16

3.47

4.8

Nov.

2 3 j>/

61.54

3.45

4.6

58.00

(7)

1,121 (5/25/60)

r/1,269
1,301
1,320
1,322

n . a . — N o t available.
% / Preliminary.
'
V
Standard and Poor's composite index of 5 0 0 common stocks, weekly closing prioos, 1941-43=10.
Monthly data are averages of daily figures rather than of Friday's only* Highs and lows are for
Friday's data only.
2/ Standard and Poor's composite stook yield based on Wednesday data converted to weekly closing
prices by Federal Reserve, Yields shown are f o r dates on which price index reached its high
or low.
3/ Averages of daily trading volume o n the New York Stock Exchange.
4 / End of m o n t h figures for member firms of the New Y o r k Stock Exchange which carry margin accounts;
excludes balances secured by U . S, Government obligations.
5/ -Wednesday figures for weekly reporting m e m b e r banks. Excludes loans for purchasing o r carrying
U. S. Government securities. P r i o r to July 1, 1959, such loans are excluded only at banks in
N e w York and Chicago. Weekly reporting banks account for about 70 per cent of loans to others.
F o r further detail see Bulletin.




^
EXHIBIT F, Port

PRIVATE

HOUSING

STARTS

N\—f\'i?rr

CONVENTIONAL

Exhibit F - Part II

"Seasonally adjust- U n a d j U S t e d
FHA
ed annual rate
I
.
(Thousands of units)
1961 - Oct.
Nov.
Dec.
1962 - Jan.
Feb.
Mar.
Apr.
Hay
July
Aug.
Sept.
Oct. £/

1,434
1,351
1,297
1,273
1,152
1,431
1,542
1,579
1,425
r/1,466
r/1,529
r/1,278
1,497




124
103
82
81
76
115
147
154
136
r/136T
r/146
r/113
129

23
23
17
18
15
21
25
26
24
25
28
20
23

VA

9
7
6
4
5
6
8
8
7
7
8
6
7

Conventional

91
72
59
58
56
88
114
120
105
r/103
r/110
r / 87
99

-

EXHIBIT O, Perl I
YIELDS O N NEW A N D

SEASONED CORPORATE BONDS

Exhibit G
Yields
/•

issues
Weekly

Corporate Bond
of

issues

included

of

1962

on New

Number Am't

(mil.

of dollars)

- Part

II

Issues Adjusted

Average

Number Am't

yield
(per

to an Aaa basis
of

issues

included

of

cent)

(mil.

of dollars)

Average
yield
(per

cent)

averages:

- June

1
8

July

Aug.

1
3

17.0
115.0

4.18

Sept.

4.30

14

1

50.0

4.22

4.9

4.16

1
--

75.0

4.22
--

26

2

275.0

2

3

85.0

4.14

9

2

37.0

4.13

2

19.8

4.00*

4

67.0

4.22

21

3

145.0

4.18

28

1

6

--

13
20

1
3

24.0

4.35

50.0

4.44

Oct.

5
12

46.0

19

4.29

27

1

20.0

4.33

3

4

107.3

4.33

2

115.0

Nov.

4.45

16

17

3

70.0

4.27

23

24

2

52.0

4.29

30

31

1

60.0

4.28

10

4.23

1

15
22
29

12.0

7

4.29

N o t ® : Averages of offering yields on all n e w issues of publicly offered corporate bonds rated Aaa, Aa and
A by Moody's Investors Service (except serial and convertible Is sues, offerings of n a t u r a l gas pipeline
and foreign companies, and bonds guaranteed by the Federal Government) weighted by size of offering.
Before averaging, n e w offerings are adjusted to a composite A a a basis by deducting f r o m t h e actual
reoffering yield the excess of the w e e k l y average yield f o r seasoned bonds of the appropriate industryquality group over t h e composite average f o r seasoned Aaa-rated bonis (Moody's). Averages considered
unrepresentative because of special characteristics of the offerings included are denoted by a n asterisk.




/Y

H.14

Exhibit H
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
3

1

lital

Corporate 1/
1
1961
1

1960

592
859
807

580
667
562

570
715
860

2/876
E/1,133
2/629

713
689
764

700
611
568

1,113
760
1,132

2,118
1,259
1,318

761
577
1,044

2/873
2/913
2/784

723
641
1,034

719
545
991

582
749
579

1,028
762
647

736
967
726

2/594
e/575
e/400

485
604
734

492
606
683

October
November
December

e/850
e/750

1,090
948
1,000

890
956
852

e/ 600
e/500

678
789
606

348
501
491

1st
2nd
3rd
4th

2,258
3,005
1,910

1,809
4,695
2,437
3,038

2,145
2,382
2,428
2,698

2/2,639
2/2,569
e/1,569

2,166
2,397
1,823
2,073

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

5,263
7,173

6,504
8,941
11,979

4,527
6,955
9,653

2/5,208
e/6,777

4,563
6,386
8,460

4.,136
5.,916
7.,257

1962
January
February
March
April
May

July
August
September

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

State and local V
1962
1 1961

|

1960

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

quarter
quarter
quarter
quarter

2,199
2,919
1,810

Year
e/
1/
2/
3/

1,554
4,552
2,337
2,807

1,716
2,165
2,018
2,347

11,253

8,246

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




•f
H. 14

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

Quarter
month

Gross proceeds f
capital and refunding 1/
Bonds
Common Memo:
and
foreign
Total Publicly Privately
pfd.
issues
offered offered
included

1Slew"proceeds for
lew capital 1 / 2 /
Mfg.

Public Communiutility cations

Other
issuers

1960 - I
II
III
IV

2 ,265
2 ,537
2 ,520
2 ,832

934
1 ,074
1 ,336
1 ,462

795
770
754
955

536
692
429
416

69
27
38
17

298
511
562
625

598
808
652
696

189
149
317
381

1961 - I
II
III
IV

1 :,992
5.,352
2.,566
3 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
595
836

381
1,081
595
836

.81
1,095
104
147

803
L ,263

1962 - I
II
III
IV

,378
2j
3,,250
2, 184

1,,155
1 .,389

853

716
1 ,222
1,,024

507
639
307

68
257*
56

655
996
601

430
983
375

456
, 231
275

717
794
659

601
695
696
2,231
1,342
1,779
July 1,075
Aug.
813
Sept.
678
Oct. 1,155
987
Nov.
Dec. 1,094

178
273
211
713
666
- 924
424
225
123
336
414
217

294
255
331
348
' 355
572
392
411
336
509
348
567

129
167
154
1,170
320
283
259
177
218
310
225
310

54
19
3
71
35
49
52
7
10
25
12
25

169
99
248
574
447
446
428
255
252
271
215
306

137
160
84
254
439
389
369
215
111
306
362
168

21
41
19
994
85
16
16
13
75
25
80
42

253
368
211
297
289
467
315
279
209
487
291
485

647
884
847
1,217
801
1,232
630
July
922
Aug.
Sept.
632
Oct.e/ 980
Nov.
Dec.

273
497
386
654
247
. 488
200
477
176
530

143
155
209
336
134
169
67
82
161
100

3
12
54
10
147
100
13

205
131
318
384
270
342
217
218
166
210

89
148
193
377
196
410
118
110
148
140

73
362
21
88
64
79
88
120
67
260

225
218
275
264
229
301
159
301
199
240

- Jan.
Feb.
Mar.
Apr.
May

- Jan.
Feb.
Mar.
Apr.
May

232
232
253
227
420
575
366
363
295
350

43
n.a.

1 ,059
913
896
997
832
1:,052

£/ Preliminary.
ef Estimated by Federal Reserve,
1/ Gross proceeds exceed
net proceeds by the cost of flotation.
2/ For total see Exhibit H; other issuers
are extractive, railroad and other transportation, real estate and finance and
commercial and other. Source.--Securities and Exchange Commission. .




Exhibit J
Other Security Offerings
(In millions of dollars)

Foreign
1962
I
January
February
March
April
May ^
July
August
September
October
November
December

142
10
35
10
86
50
.25

e/'i j0

Year
Jan.-Oct.

1961
6
29
20
2
66
29
5
2
43
34

236
in-

202

Gross long-term 1/
I
Federal agency 3/
nt2/
I
I960
I 1962
1
I 1961
2
175
70
34
72
40
25
1
36
34
2 ,
41

246
156
461

182
150
150
148
354

--

--

--

150
175
e/--

250
193

199

225
—

533
489

252
100
149
278

1960

j
!
je/L ,188

160
149
181

1,448

1,672

1,222

1,343

Net she-::t-term 4/
Federal agency 3/
state and local government 5/
January
February
March
April
May
July
August
September
October
November
December

18
466
-186
127
-84
-118
78
339
%/-407

Year
Jan.-Oct.

n.a.

£/
V

160
195
-8
-103
-42
-155
109
518
-86
-6
54
-116

58
140
-80
70
-146
-157
48
415
-175
-16
50
-189

520

18

580

157

247
-156
226
-364
82
284
261
227
-157
jp/557

VI,207

-144
-162
-174
-79
-87
207
22
193
108
98
56
-114

-196
-202
-59
-277
170
320
95
23
-201
-23
-33
-250

-76

-633

-18

-350

Preliminary.
ej Estimated by Federal Reserve,
n.a.--Not available,
These data differ from those in Exhibit H ir. that refunding issues, as well as
new capital iss\vs, are included, Longrterm securities are defined as chose
maturing in more than one year.
2/ Includes securities offered in the United States by foreign governments and their
political subdivisions and international organizations. Source; Securities and
Exchange Commission..
3/ Issues not guaranteed by the u, S. Government. Source; Long-term, Securities
and Exchange Commission; short-term^ Treasury Department and Federal Reserve.
4/ These data differ from those in Exhibit K and above in that they represent new
offerings less retirements, whether from the proceeds of refunding issues or from
other funds
Data include only issues with original maturity of one year or less.
5/ Principally tax and bond anticipation notes warrants or certificates and Public

Housing Authority notes. In some instances FHA notes included may have a somehttp://fraser.stlouisfed.org/
what longer maturity than one year. Source: Bond Buyer and Federal Reserve.

Federal Reserve Bank of St. Louis

tf
H. 14

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

1961 - October
November
December
1962 - January
February
March
April
May
July
August
September
October

Total

(other than
convertibles)

354
391
255
195
425
366
648
200
472
165
286
191
434

205
320
125
170
425
330
430
170
387
135
226
100
398

Convertible
bonds

Stocks

67
26

81
45
130
25

15
51

21
167
30
85
30

State
and
local
government

Other
2/

326
480
307
561
662
259
423
373
226
361
272
153
320

60
91
36

40
250
145
64
30
55
88
30
20
194
25

Large Individual Issues Offered November 1 through 23

Type 3/

Columbia Gas System
Georgia Power Co.
Household Finance Corp.
Louisville and Nashville
RR. Co.

Deb,
1st mtg. bds.
Deb.
Coll,tr.bds.

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

30 .0
23 .0
60 .0
9,,7i/

Rating

1987
1992
1987

4-3/8
4-3/8
4-3/8

4.35
4.30
4.40

A
A

1987

-4-7/8

4.88

Baa

STATE AND LOCAL GOVERNMENT
Cincinnati, Ohio
East Bay Mun. Util. Dist.,
Cal,
Houston, Texas
Lincoln Sch. Dist., Neb,
State of Connecticut
Philadelphia, Pa.
Gateway Union Sch. Disc., Pa.
OTHER

G.O,
G.O.
Rev,-Ut.
G.O,
G.O,
G.O.
Rev.-Rent.

None,




12.3

1964-98

2 .90

1 .55-3,,15

33.0
14.0
12.0
48.0
21,72/
11.71/

1963-92
1963-96
1964-82
1967-83
1964-93
1963-85

2 .92
3 .30
2,.78
2,,56
2.,97
3.,71

1 .50-3,>15|/
1 .50-3,,406/
1 ,60-2.,85
1,,90-2.• 90
1.,55-3.,258/

Aa
A
Aa
A
CO CT,

K-2

H-.14

Footnote Page

*--Rights offering.
1/ Includes corporate and other security offerings of $15 million and over;
State and local government offerings of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal agencies.
3/ In the case of State and local government securities, G.O. denotes general
obligations; Rev.-Ut,. revenue obligations secured only by income from
public utilities: Rev.-Q,Ut., revenue bonds secured only by revenue from
quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific
taxes only; Rev,-Rent.> revenue bonds secured solely by lease payments.
4/ An additional $15.3 million in bonds was sold to refund outstanding securities.
5/ 2 per cent bonds maturing 1990-92 reoffered to yield 3.55 per cent.
6/ 2 per cent bonds maturing 1996 reoffered to yield 3,70 per cent.
V
An additional $5.0 million was sold to refund outstanding securities.
8/ 0.1 per cent bends maturing 1990-93 not. reoffered
9_/ Placed privavv-ly.




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

Date of
computation

%

1961 - Oct. 31
Nov, 30
Dec. 29
1962 - Jan. 31
Feb. 28
Mar. 30
Apr. 30
May 31
June 29
July 31
Aug. 31
Sept. 28
Oct. 31

1

During month following
date shown
State and
Corporate
Other 2/
local govt.
346
356
161
480
222
628
185
587
120
302
170
363
203

597
295
223
465
153
453
333
184
202
273
61
187
96

Subsequent to
date shown
State and
Corporate
local govt.
411
421
591
525
341
693
598
692
458
477
312
546
328

64

95
55

175
~--

693
498
415
567
239
539
452
337
377
427
215
387
243

Other 2/

64

95
55
25
175
-•

--

Forthcoming Large Offerings, as of November 23

Type

v
.Pacific Gas & Electric Co.
-; Metropolitan Edison Co.
•. Consolidated Edison Co.
; ^Beneficial Finance Co.
•Southern New England Tel. Co.
t*Tokyo Shibaura Electric Co. Ltd.
Tennessee Gas Trans. Co.
- Commerce Oil Refining Corp.

Amount
(millions
of dollars)

1st &. ref. mt5. bds.
1st mtg. bds.
1st & ref. mtg bds.
Sen. deb.
Deb.
Conv. deb.
1st mtg. bds.
Deb., bdsi & com.

Approximate date
of offering

65 .0
15 .0
60 .0
30 .0
45 .0
20 .0
50 .0
45 .0

Nov. 28
Dec, 4
Dec. 6
Dec. 12
Dec, 12
Dec. 12
Indefinite
Indefinite

10,.0
15,.0
25..0
14,.0
30.,0
100.,1
11. 9

Nov. 27
Nov. 27
Nov. 28
Nov. 28
Dec. 10
Dec. 12
Dec, 13
Dec. 17
Dec. 19
mid-JDec.
Indefinite
Indefinite
Indefinite
Indefinite

STATE AND LOCAL GOVERNMENT
,V Oklahoma City Mun. Impr. Auth,
' Texas Water Dev. Bd.
State of Kentucky
;,;:*Puerto Rico Aqueduct & Sewer Auth.
'/ *State of New York
", Public Housing Auth.
?
Tampa, Florida
: V * C l e v e l a n d Consolidated Sch. Dist., 0.
•l-f' Richmond, Va.
^*Memphis, Tenn.
Pittsburgh, Pa.
Jefferson County, Colorado
It, Dade County, Florida
Jacksonville
Expressway Auth., Fla.




Rev.
G,0.
G.O.
Rev. -U t.
G.O.
G.O,
G.O.
G.O.
Rev.-Ut.
G.O.
G.O.
G.O.
Rev.-Ut.

10. 0
11. 3
30. 8
35. 0
12. 9
46. 0
40.0

°

S o

L-2

-a. 14

Forthcoming Large Offerings, as of November 2 3 (Cont'd)

Issuer

Type

Amount
(millions
of dollars)

Approximate date
of offering

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.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal agencies.
Note.--Deletions for reasons other than sale of issue: A proposed $30 million
issue' of cc rvcr: ible- s.ocrdinate debentures of Columbia Bancorpcra: ion was
cancelled




Zf
Exhibit H

H. 14

Sources and Uses of Funds by
Life Insurance Companies

Cash
Value of assets
at end of period
1958 - Dec.
1959 - Dec.
1960 - Dec.
1961 - Dec.
1962 - Sept.

Uses of funds 1/
U. S. Business securities 2/
State and
Govt. Long-term Commercial
local govt.
secur- bonds and and finance
securcompany paper
ities
ities

1,363
1,307
1,329
1,389
1,268

7,182
6,858
6,428
6,104
6,337

Changes:
1960 - July
Aug.
Sept.
Oct.
Nov.
Dec.

42
3
-49
93
-35
89

52
-45
-2
-62
18
-103

143
133
111
100
257
300

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

-34
-10
-54
7
74
-43
48
-23
15
30
40
13

125
-2
-7
-43
20
112
70
-51
14
-46
-261

152
156
174
112
234
280
130
276
241
260
211
505

-111
-5
-74
12
3
-22
69
-29
33

179
21
-78
94
-26
-95
176
-21
-48

80
126
144
53
242
253
135
213
v 187

2/1962 - Jan. r/
Feb.
Mar
Apr.
May
July
Aug.
Sept.
Oct.
Nov,
Dec.

44,612
46,783
118
48,631
295
183
51,341
635
52,795-

1/

.

Mortgages

Other

Total
sources

2,691
3,221
3,606
3,922
4,104

37,092
39,237
41,815
44,241
45,758

14,640
16,126
17,472
19,409
20,172

107,580
113,650
119,576
126,589
131,069

81
53
-61
205
-59
-100

24
46
82
33
26
18

153
227
179
217
197
282

87
113
110
-6
92
167

582
530
370
580
496
653

118
-27
-26
v. 66
4
-66
-36
110
-72 '
-30
23
16
-178

49
27
28
34
1
-1
21
30
27
13
44
23

186
141
223
262
173
187
109
167
164
204
237
382

257
199
192
158
114
134
156
150
155
122
149
325

853
484
530
596
550
409
644
528
521
665
651
809

56
2
118
-14
-14
8
4
28
14

128
116
143
114
195
196
198
236
182

-50
113
75
31
'
5
-10
204
137
85

495
420
377
461
362
,213
858
594
473

213
47
49
171
-43
-117
72
30
20

Uses of funds represent net changes in assets and therefore reflect net, rather than
gross, uses.
r/ Revised,
ll Includes securities of domestic corporations only.
Source.--Institute of Life Insurance




7VZ
H, 14 *

Exhibit N
Sources and Uses of Funds by
Savings and Loan Associations

Cash

Value of assets
at end of period
1958 - Dec,
1959 - Dec.
1960 - Dec.
1961 - Dec.
1962 - Sept.
Changes:
1960 - July
Aug s
Sept.
Oct.
Nov.
Dec,
jj/1961 - Jan.
Feb.
Mar.
Apr.
May
July
Aug,
Sept.
Oct.
Nov.
Dec.
j d / 1 9 6 2 - Jan.
Feb.
Mar.
Apr.
May
July
Aug. r/
Sept.
Oct,
Nov.
Dec.

Sourct2S of funds
Uses of funds 1/
. Total
L\ S.
Net
Govt.
Mort- Other
change
Borrowgages 2/
savings ing 3/
ities
capital
(In millions of dollars)

Other

I

2,585
2,183
2,680
3,298
3,009

3,819
4,477
4,595
5,222
5,483

45,627
53,141
60,070
68,833
76,299

3,108
3,729
4,131
4,743
5,213

55,139
63,530
71,*75
82,096
90,004

47,976
54,583
62,142
70,851
76,934

1,444
2,387
2,197
2,863
3,166

5,719
6,560
7,137
8,382
9,904

-233
30
25
102
83
415

32
23
5
110
-54
-1

645
722
656
602
515
566

-148
-6
50
-1
233
-50

232
723
736
813
777
930

157
486
604
666
.552
1,379

-124
22
49
-14
52
271

199
215
83
161
173
-720

-95
59
3
23
150
131
-227
-86
47
81
84
448

93
191
107
-18
3
32
-8
66
:
5
' 45
82
45

369
428
690
695
809
997
737
910
802
810
752
764

-106
71
122
113
224
-64
-150
76
83
103
198
-58

261
749
922
813
1,180
1,096
352
966
927
1,039
1,116
1,199

591
553
705
417
800
1,362
111
496
662
726
775
1,511

-465
-80
-26
88
41
274
-1
132
130
74
81
418

135 r
276
243 *
308:'%
339 ;
-540
242 ;
338 ,s
135
239
2601 ,
-730 y.

-365
98
131
-78
10
263
-394
-J9
85

186
95
36
-46
13
67
46
11
35

535
600
801
847
971
1,044
894
1,017
757

-115
40
93
90
413
-58
-194
105
96

241
833
1,061
813
1,381
1,182
352
1,072
973

491
578
934
386
782
1,427
18
648
819

-383
-96
-83
126
98
365
89
92
95

133^,'
351210 {
301 J
501#
-610
245
332 V
59

;
n
<,
A]
:.f

S
r/
1/

Revised.
g/ Preliminary.
Uses of funds represent net changes in assets and therefore reflect net, rather
than gross, uses, Savings and loan associations do not. hold business securities
and data on holdings of State and local government bends, presumed to be small,
are not available.
2/ Data for 1957 adjusted to include mortgage pledged

shares as currently reported„
3/ Advances from Home Loan Banks and other
http://fraser.stlouisfed.org/
borrowing.
Source.--FSLIC=

Federal Reserve Bank of St. Louis

•>
1
;
X

Exhibit 0

H.14

Sources and Uses of Funds
by Mutual Savings Banks

Cash

U.S.
Govt.
ities

Jses of funds 1/
Total
Busi- State &
sources
local
ness
Mortgovt,
Other
gages
securities
2/
ities
(In millions of dollars)

Sources of funds
Net
change in
deposits

Other

34,041
34,983
36,353 <
38,487
40,704

3,738
3,959
4,220
4,346
4,681

21
105
278
56
39
385

97
118
-45
-87
115
-148

Value of assets
at end of period;
1958 - Dec.
1959 - Dec.
1960 - Dec.
1961 - Dec.
1962 - Sept.

921
829
872
828
853

7,266
6,864
6,239
6,136
6,296

4,973
4,849
5,080
5,053
5,162

725
722
672
677
564

23,039
24,768
26,709
28,915
31,257

855
910
1,001
1,224
1,252

37,779
38,942
40,573
42,833
45,385

Changes:
1960 - July
Aug,
Sept.
Oct.
Nov.
Dec.

-69
-6
22
-8
9
84

-48
30
-32
-156
-68
-42

38
-8
32
-4
34
57

-4
-5
1
-6
-5
-5

159
206
196
168
171
157

42
6
14
-25
13
-14

118
223
233
-31
154
237

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

-49
21
9
-51
30
30
-26
-14
46
-27
7
-20

106
100
117
-216
-13
-52
18
6
-15
-120
-13
-21

3
-15
46
-11
27
34
2
-23
-19
-56
-20
5

-5

161
140
204
176
187
217
201
207
156
178
167
212

17
26
29
-51
30
-23
-28
55
49
-44
46
117

233
272
404
-154
262
228
164
232
220
-74
181
292

170
136
351
-54
114 ,
3661/
23
99
310
-15
48
471

63
136 ,
53
-100
148 ,
-1382/
141
133
-90
-59
133
-179

1962 - J a n .
Feb.
Mar.
Apr.
May

10
47
12
-79
12
54
-46
-29
44

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

171
25
-35
2
17
66
14
2

250
307
519
-131
334
306
285
367
315

83
165
472
-51
184
548
172
215
429

166
142
47
-80
150
-242
113
152
-114

July
Aug.
Sept.
Oct.
Nov.
Dec.
1/

V

-1
-2
1
23
-2
1
1
-5
-5
-1
-7
-18
-18
-26
-20
-5
-5
-9
-5

253
188
230
270
254
302
290
312
243

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

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.
3/
Adjusted
so as not to reflect $115 million other liability reclassified as

deposits in conformity with FDIC redefinition. Source—NAMSB and FDlC.
2/