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Not f o r P u b l i c a t i o n DECONTROLLED AFTER SIX M N H
OTS
October 16, 1961

H.lU
\ CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES
......

j

-

I

c iss;

(Including Monthly Review of Sources and Uses
of F i n a n c i a l I n t e r m e d i a r i e s )

Public s e c u r i t y f i n a n c i n g t o obtain new c a p i t a l was i n l i g h t
—jrolume- l a s t week, but i s expected t o be in heavy volume t h i s week. L a s t
week, ending October 13, two l a r g e corporate s e c u r i t y o f f e r i n g s , i n c l u d ing t h e e x p i r a t i o n of a r i g h t s o f f e r i n g , t o t a l i n g $57 m i l l i o n were sold
and one S t a t e and l o c a l government bond i s s u e f o r $35 m i l l i o n was o f f e r e d .
This week, ending October 21, f o u r corporate i s s u e s , i n c l u d i n g the
e x p i r a t i o n of twp r i g h t s o f f e r i n g s , aggregating $153 m i l l i o n a r e on t h e
calendar while t h r e e S t a t e and l o c a l i s s u e s with p a r value of $3.7li m i l l i o n
a r e scheduled to be o f f e r e d .
Bond y i e l d s . Changes in long-term bond y i e l d s were mixed l a s t
week. Yields on Aaa-rated S t a t e and l o c a l government bonds were unchanged
while t h o s e on U. S. Government bonds rose two b a s i s p o i n t s and those on
high-grade corporate bonds d e c l i n e d s l i g h t l y .
Short- and i n t e r m e d i a t e - t e r n i n t e r e s t r a t e s . Yields 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 increased l a s t week.
Yields on 3-month and 6-month Treasury b i l l s increased 6 and 3 b a s i s
p o i n t s , r e s p e c t i v e l y , while y i e l d s on intermediate-term U. S. Government
o b l i g a t i o n s rose 2 b a s i s p o i n t s . The average r a t e of i n t e r e s t on Federal
funds increased 95 b a s i s p o i n t s to 2.75 p e r cent. Other s h o r t - and
intermediate-term i n t e r e s t r a t e s were unchanged.
Mortgage y i e l d s . Average y i e l d s on 5 - 1 / 4 P@r cent EHA home
mortgages sold i n the secondary market edged 1 b a s i s p o i n t higher i n
September t o 5.72 per c e n t . This was the second consecutive small
monthly i n c r e a s e in mortgage y i e l d s following a d e c l i n e from a high of
6.2lj. per cent i n January i 9 6 0 t o a low of 5.70 in J u l y of t h i s y e a r .
Since y i e l d s on new corporate bonds ( a d j u s t e d to an Aaa b a s i s ) declined
f u r t h e r i n September, the spread between mortgage and bond y i e l d s
widened to 13it b a s i s p o i n t s .
I n s t i t u t i o n a l i n v e s t o r s . Total savings inflow during August
a t t h r e e major f i n a n c i a l i n s t i t u t i o n s — l i f e insurance companies, savings
and loan a s s o c i a t i o n s and mutual savings banks—amounted t o $1.1 b i l l i o n ,
o r 6 p e r cent l e s s than a year ago. (Time d e p o s i t s a t commercial banks
increased $0.8 b i l l i o n or about o n e - f i f t h l e s s than l a s t y e a r . ) This
was the second consecutive month which showed a l e v e l l i n g o f f a f t e r a
y e a r of unusually high f i n a n c i a l saving. The y e a r - o v e r - y e a r comparisons,
however, r e f l e c t t h e sharp i n c r e a s e i n inflows a y e a r ago r a t h e r than
reductions c u r r e n t l y . On a s e a s o n a l l y a d j u s t e d b a s i s , the t o t a l inflow
f o r August was about the same a s the average f o r t h e f o u r t h q u a r t e r of
i 9 6 0 and the f i r s t q u a r t e r of t h i s year and was somewhat above the average
f o r t h e second q u a r t e r of t h i s y e a r .




-3L i f e insurance company a s s e t s increased $5>21 m i l l i o n i n August,
about 8 p e r cent l e s s than l a s t year but about t h e same a s the monthly
average of t h e f i r s t h a l f of t h i s y e a r . Holdings of business s e c u r i t i e s
increased $211 m i l l i o n , one-fourth more than l a s t y e a r a s very l a r g e n e t
a c q u i s i t i o n s of long-term bands ($2h8 mill ion) were only p a r t l y o f f s e t by
a reduction i n holdings of s h o r t - t e r m "open-market" paper. Net a c q u i s i t i o n s
of r e a l e s t a t e mortgages of &L6I4. m i l l i o n , continuing near the low l e v e l
of J u l y , were about one-fourth l e s s than a y e a r e a r l i e r . Liquid a s s e t s ,
i . e . , cash and U. S. Government s e c u r i t i e s , declined s l i g h t l y t h i s month
as they had a y e a r e a r l i e r and i n most o t h e r months t h i s y e a r , but t h e
decline was only one-half a s l a r g e as l a s t y e a r .
The inflow of savings c a p i t a l a t savings and loan a s s o c i a t i o n s
t o t a l e d $1*80 m i l l i o n , almost the same as i n August i 9 6 0 . Net a c q u i s i t i o n
of mortgages of $880 m i l l i o n were higher than any other month t h i s y e a r
except f o r the record month of June and were o n e - f o u r t h l a r g e r t h a n a
y e a r e a r l i e r . In f i n a n c i n g the increased mortgage l e n d i n g , t h e s e
a s s o c i a t i o n s expanded t h e i r borrowings ( p r i m a r i l y from the Federal Home
Loan Banks) by $130 m i l l i o n .
Deposits a t mutual savings banks increased by $0.1 b i l l i o n ,
s l i g h t l y l e s s than i n August i 9 6 0 . Net a c q u i s i t i c n of mortgages of
$207 m i l l i o n i n August was t h e l a r g e s t s i n c e January 1959 and about t h e
same a s a y e a r ago. Combined holdings of cash and Government s e c u r i t i e s
declined s l i g h t l y in August f o r the t h i r d s t r a i g h t month. Net s a l e s of •
business s e c u r i t i e s , while small, were considerably l a r g e r than i n
August i 9 6 0 .
Stock p r i c e s . Common stock p r i c e s , a s measured by Standard
and P o o r ' s composite index of 500 common s t o c k s , rose s l i g h t l y on balance
l a s t week, c l o s i n g on October 13 a t 68.0b. The average d a i l y volume of
t r a d i n g a t 3 . 3 m i l l i o n shares was unchanged from the previous week.
More d e t a i l e d information concerning recent c a p i t a l market
developments i s presented in t h e a t t a c h e d e x h i b i t s .

C a p i t a l Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




A

EXHIBIT A
LONG-TERM

BOND

YIELDS

HIGH-GRADE

LOWER-GRADE




'

Exhibit T - Tables f o r Exhibit A
B

-5-

Long-tem Bond Yields
High-grade
Date

Corporate
Aaa 1 /

U. S. Govt,
l o n g - t e r n 2/
(per cent)

State and
local
government
Aaa 3/

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

195k - Low
1957 - High
1958 - Low
1959-60 - High
I960 - Low
1961 - High
Low

L k 6 (9A5)
L21 (s/17)

Ll*2 (1/8/60)
3.75 ( 8 / 5 )
L 0 6 (9/15)
3.70 (5/12)

2.99
3.37 (7/6)
3.12 (2/23)

.30 '
.60
.22
,59
.19
.57
.kO

Sept. 15
Sept. 22 .
Sept. 29
Oct. 6
October 13 q/

k.k6
k,k5
k.k5"
k.k3
k.k2 /

L06
L02
3.98
3.98
Loo

3.3k
3.3k
3.31
3.30
3.30

.kO
.k3
.k7
.k5
.k2

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

2.1*5 (e/6)

1.90

3 . 7 6 (10/18)
3 . 0 7 (4/25)

3.U5

2.61*
3.65

(9/2)
(0/29)
(5/1)
(9/24/50)
(9/1)

.30
.50
.3k
.92
.53
.76
.k6
.72
.68
.67
.68
. -70

Lower-grade
Corporate
Baa 1 /

State and
l o c a l govt.
Baa y

Spread between
Aaa and Baa
S t a t e and
Corporate
l o c a l %ovt.

(per cent)
195k - Low
1957 - High
1958 - Low
1959-60 - High
1 9 6 0 - Low
1961 - High
Low
Sept. 15
Sept. 22
Sept 29
Oct. 6
, Oct. 13 2 /

3.1*1*

5.10
L51
5,36
U. 90
5.13

(12/31)

(11/20)
(7/11)
(2/12/60)
(9/9)

2.93
It. 5 1
3.614
I4.I46
3 .98

(8/5)
(8/29)
(5/1)
(1/7/60)
(12/29)

5.00 (V21)

k.16 (3/23)
3.93 (8/3)

5.12
5.12
5.12
5.13
5.13 /

1.02
4.02
Loo
Loo
Loo

(10/13)

.52
1.27
.77
.8k
.71
.81
.66
.66
.67
.67
.70
.71

e / Preliminary.
1 / Weekly average of d u l l y f i g u r e s . Average term of bonds Included i s 23 *20 y e a r s .
2 / Weekly average of d a l l y f i g u r e s . The s e r i e s lnoludea bonds due or c a l l a b l e I n 10 y e a r : or more.
3/ Thursday f i g u r e s . Only g e n e r a l o b l i g a t i o n bonds a r e Included) average term i s 20 y e a r s .
Koto.—Illgha a»4 Ions are for i n d i v i d u a l s e r i e s and nay be on d i f f e r e n t d a t e s f o r d i f f e r e n t s e r i e s ,
Vor spreads, high r e f e r s t o w i d e s t , and low t o narrowest.




.

.96
1.21
.93
1.08
.86
.93
.57
.68
.68
.69
.70
.70

Xj

EXHIBIT C
SHORT-

AND

INTERMEDIATE-

TERM

INTEREST

RATES

GOVERNMENT

VV, 3 - 5 VlAI ISSUE!

S

X

/

V

\M

|

X

"\A

\
( l

y

1 1

/

f

I . DISCOUNT 1AH.

w

f r

i! , -

BANKS

AND

[

OTHER

PRIVATE

1

BORROWERS
y j f G o i n g Role

| DISCOUNT

L*m$




I

/

E x h i b i t D - Tables f o r E x h i b i t C
Q i o r t - and I n t e r m e d i a t e - t e r n I n t e r e s t hates
Government
Discount
rate

•
3-month
b i l l s 2/

1/

195U - Low

1957 - High
1958 - Low
1959-60 - High
1 9 6 0 - Low
1 9 6 1 - High
Low
S e p t . 15
Se p t . 22
S e p t . 29
Oct. 6
Oct. 13 e /

1.50

IM

Yields
6-month
b i l l s 2/
( p e r cent)

.61 (6/11)
3. 6U (10/18)
. 5 8 (5/29)

Loo
3.00
3.00
3.00

U.59
2.11
2.56
2.17

3.00
3.00
3.00
3.00
3.00

(1/8/60)
(10/28)
(3/3)
(1/27)

2.29
2.26
2.25
2.28
2.3k

3-5 y e a r
issues 2/

Spread between y i e l d s on
3-month b i l l s and y i e l d s on
6-mo. b i l l s 13-5 y r . issued
.66
.86
.Oli
1.81
.38
1.51
.92

1 . 6 6 (4/30)

U.0U (lo/ia)
3 . 0 2 (12/26)

2.1U (6/6)

5.07 (V8/6O)

5 . 0 0 (12/24/89)

2.38

3.1*0 (12/30)

(12/30)

2.78 ( 8 / 1 8 )

3.86 (8/11)

23.5 ( V 2 8 )

3.15 ( 5 A 2 )

2.68

3.80

2.69
2.69

3.76
3.70
3.65
3.67

2.61

2.67

,26
.79
,16
.UU
.12
.39
.U3
•It It
.36 .33

1.5SL
.1*50
1.15
1.37
.1.33

Banks an(i. Othe.ri-Private Borrowers
Date

Stock Exchange
c a l l loan 1 /

Prime
rate 1/

Finance company
paper 3 /

Federal
funds U/

Spread between
3-mo. b i l l s and
f i n a n c e co. paper

(per cent)

19 5U - Low
1957 - High
1958 - Low
1959-60 - High,
1 9 6 0 - Low
1961 - High
Low
Sept. 15
S e p t . 22
Se p t . 29
Oct. 6
Oct. 13 2 /
1/

2/
3/

0

3.00
U.50
3.50

1.25(12/31)
3.68 ( u / i 5 )
l 1 .13 (a/u)
5.-13 (1/22/60)

n.a.
3.50
.13

U.oo

1.02

2 . 6 8 (12/30)

U.50
U.50

U.50
U.50
U.50

2.88 (3/10)
2.50 (7/28)

.95
2.85

.56

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

U.50
U.50
U.50
U.50 •
U.50

2.69
2.69
2.66
2.81
2.81

3.00
li, 50
3.50
5.50

U.SO

5.00

.10

2.30
2.15
2.05
1.80
2.75

.63
35

.22

.11

.10
.53
.1*7

U . o k l y r a t e show* I
i
n
e f f e c t a t end of p e r i o d . - D l e o o u a t r a t e 1 , f o r Hederal Reserve Baric o f New Y o r k .
St,.ok Exohanea c a l l 1 ( a h r a t . I s g o i n g r a t e on o a l l l o a n s s i o u r o d by c u s t o m e r s ' s t o o k exohange c o l l a t e r a l a t
Noh York C i t y U n k s , Prime r a t * l o t h a t c h a r g e d by l a r g e b a n k s on a h n r t - t s r a l o a n s t o b u s i n e s s b o r r o w e r s of
the hlfiheat c r e d i t standing.
Market y i e l d ; w e e k l y a v e r a g e # computed from d a l l y o l o a l n g b i d p r i o n . S e r i e s o f 3 - 5 y e a r I s s u e s c o n s i s t s o f
e . l o o t e d n o t e s and b o n d s .
•
Average o f d a l l y r a t e s p u b l i s h e d by f i n a n c e companies f o r d i r e c t l y p l w e d p a p e r f o r v a r y i n g m a t u r i t i e s t n t h e

4/

Weekly ^ e r Z ^ ' f d u l l y e f f e o t l v u r a t e , w h i c h i s t h e r a t e f o r t h e h e a v i e s t v o l u e e o f p u r c h a s e and s a l e t r a n w i e t t o r w
a s r e p o r t e d t o t h e F e d e r a l R e s e r v e flank o f How Y o r k .
.Not*.—Highs e n d l o w s a r e f o r I n d i v i d u a l s e r i e s a n d may be on d i f f e r e n t d a t e s f o r d i f f e r e n t d a t e s f o r d i f f e r e n t s c r i e s .
f o r s p r e a d s , h i g h r s f e r s t o w i d e s t , a n d low t o n a r r o w e s t .




j
-j
I

STOCK

MARKET

i l l i i r ( i f. i i i i i i i i i i i
1957

MORTGAGE

1958

AND

BOND




YIELDS™

•i . 1 1 1 1 1 1 1
1
1959

I960

1961

Exhibit F -

Tables f o r Exhibit E

-9-

S t o c k Market

1957-60
1961 -

-

High
Low

Hi#i
Low

August
September
S e p t . 29
Oct. 6
Oct.

Common
stock
yields 2/
(per cent)

Stock p r i c c
index 1/

Datc

13 E /

Stock market customer c r e d i t
Customers 1
Bank
debit balloans to
ances 4/
"others" 5/
( I n in]L l l i o n s o f d o l l a r s )

Total

3.32

U.'9
1.4
5.8
2.7

4 , 7 6 1 (4/59) 3 , 1 ) 0 1 ( V 5 9 ) 1 , 3 7 3 ( 5 / 5 9 )
3 , 5 5 k (1/50) 2 , 4 8 2 (12/57) 1 , 0 6 0 (11/57)
5,386(5/61) 4,060(5/61) 1,377(8/28)
4,424(1/61) 3,253(1/61) 1,161(3/8)

2.90
2.92
2.95
2.91
2.91

6 0 . 5 1 (7/31/59)
3 9 . 1 * 8 (12/20/57)
68.29
58.48

Trading
volume 3/
(millions
of s h a r e s )

3.5
3.2
3.3
3.3
3.3

5,349
n.a.
n.a.
n.a.
n.a.

3.08
4.72
2.89

(8/18)
(1/6)

67.79
67.26
66.73
67.97
68.04

'

3,972
n.a.
n.a.
n.a.
n.a.

1,377
1/1,320
xy 1 , 3 2 0
1,318
n.a.

5 / Pmlln-lfcary.
n.a.-.Not available.
V Standard and P o o r ' s ccropoelte Index of 500 oeianon stock-*, wotl(ly o l o a l i y p r i o n , 1911-43=10. Monthly data a r e
averages of d a l l y <1 c u r e s r a t h e r t h a n of Krldey'e o n l y . Hlgki and loirs ore f o r Frldayr.' data only,
2 / Standard and Poor'o composite otoek y i e l d based on Wednesday data converted t o weekly o l o s l i y p r i c e s by Federal
Reccrve. Yields shown a r e f o r dateo on which p r i c e Index rcaohod l t a high or low.
3 / Averccee of d a l l y t r a d i n g volv.in on t h e Mow York Stock Exchange.
4 / End of month fl&uroo f o r member f l i r . o of the Haw York Stock Exchange wliloh c a r r y margin account a 1 excludeu balancee
secured by U, S . Goverinior.i o b l i g a t i o n s .
5 / Wednesday f l c u r o o f o r weekly r e p o r t i n g member fcankB. Ex elude 3 loans for purchasing or e a r n i n g 0 . S. Ooverioient
re curl t i e s . P r i o r t o J u l y 1 , 1959, such lornn are excluded only a t banks i n Htr; York and Cldcr^o. Weekly r e p o r t i n g
banks account f o r about 70 per cent of loans t o o t h e r o . For f u r t h e r d e t a i l seo B u l l e t i n .
M o r t g a g e and Bond Y i e l d s 1 /

Date

1953-58
1959-60

1961

FHA
mortgages

- High
Low

S.63 (11/57)
1».56 ( 2 / 5 5 )

- High
Low

5.57

- April
May
June
July
August
September.

2/

6.2k (1/60)
(3/59)

I:?I
n.a.

£•70

ill

A a a c o r p o r a t e \ S p r e a d b e t w e e n now
bonds 1 /
c o r p o r a t e bonds and
New 3 /
1 S e a s o n e d 4 7 FltA m o r t g a g e s | S i a s o n o d b o n d s
4.81
2.7k

(6/57)
(3/54)

4.12 (9/57)
2.84 (4/54

li.29

(2/59)

4.12

4.42
4.51
4.65
4.62

is

1.96

.

.90
-.12

4.S5
I+.27
4.33
4.&

-

.77
-.07
.17
.21

1.08
1.12
1,34

(1/59)

.54
1.76
.83
1.35
1.2li

5.29 (9/59) 4.61 (1/60)

.32
.21
.14
-.07

pnr cent or more,
are paid off i n 12 y e a r s ,
and o f f e r i n g s of rnxtural gas
; a d j u s t e d t o an Aaa baol*

inJ foreign

Digitized for hno<V's Inventora S e r v i c e . Monthly
4 / FRASER


averr.fya of d a l l y d a t a .

See ExIUDit

Exhibit 0
Long-term Corporate and S t a t e and Local Govern
S e c u r i t y O f f e r i n g s and Placements
(3h m i l l i o n s of d o l l a r s )

1961
January
February
/March

580
667
562

Corporate 1 /
1 I960
|
570

New ca p i t a l
1959

1961

S t a t e and l o c a l 2/
1 I960
! 1959

821
738
646

716
683
760

700
611
568

•

648 .
859
638

April
Hay
June

2,118
1,259
1,318

577
. 1,044.

•894
785
887

724
628
1,015

719
545
991 .

934
568
987

July
August
September

957
e/600
e/650

* ?36
967
726

535
740
703

e/450
e/600
e/750

492
606
683

443
521
470

October
November
December

e/800

890
'956
852

e/600

348
561
491

593
450
478

1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

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

s
900 '

1,809
a,695
f/2,207

2,145
2,382
2,128
2,698

2,204
2,567
1,979
2,642

2,159
2,367
e/l,800

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

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

6,504
e/8,811

1,527
6,955
9,653

4,771
6,750
9,%%

4,526
e/6,326

4,136
5,916
7,257

4,634
6,067
7,588

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

quarter
quarter
quarter
quarter

1.551
1.552
3/2,107

Year
e/
1/
2/
2/

1,716
2,165
2,016
2,317
8,216

1,9992,412
1,716
2,503
•8,630

Estimated.
jyPreliminary.
S e c u r i t i e s and Exchange Commission estimates of n e t proceeds.
Investment Bankers Association of America e s t i m a t e s of p r i n c i p a l amounts.
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 s a l e s and consumer f i n a n c e
companies.




Exhibit H
Other Security Offerings
( I n m i l l i o n s of d o l l a r s )
Gross l o n g - t e r m 1 /
F e d e r a l agency 3 /
Foreign government 2/
I960
|
1961
|
I960
1961
1
195?
January
February
Ha rch

6
29
20

April
Hay
June

2
63
2h

1959

182
150
150

175

118
35 U

—•

2
175
70

81
60
2

252

3h
72
hO

58
50
h2

100
119
278

July
August
September

25
1
36

85
1
35

199

October
November
December

3k
2
la

33
30
70

160
llt9
181

51*7

1,672

Year

533

'

199

—

—

•re
en

—
—

98
150

—

eme.
eee.

86
707

Net s h o r t - t e r m k /
Federal agency 3/
S t a t e and l o c a l government 5 /
January
February
March
April
May
June
July
August
September

160
195
-8

58
IkO
-80

-U
181
h

-1W1
-162
-171

-103
~k2
-155

70
-146
-157

197
-25
-197

-79
-87
207

109

1*8
2*5
-175

October
November
December
Year
B/
\J
2/
3/
4/

5/

57
392 .
131

c / 22
193

•

-196
-202
-59

-82
176
33

-277
170 '
320

50
368
286

95
23
-201

362
133
79

-16
50
-189

-81
-176
-117

-23
-33
-250

280
21*0
iil*

18

362

-633

1,969

Preliminary.
T h e s e d a t a d i f f e r f r o m t h o s e I n fithlblt 0 i n t h a t r e f u n d i i * i s s u e s , a s w e l l a s m w c a p i t a l I s s u e s , a r e I n c l u d e d .
L o n g - t e r m s e c u r i t i e s a r e d e f i n e d a s t h o s e m a t u r i n g I n more t h a n one y e a r .
I n c l u d e s s e c u r i t i e s o f f e r e d I n t h e U n i t e d S t a t e s b y f o r e i g n g o v e r n s s n t a a n d t h e i r s u b d i v i s i o n s a n d by l n t i r n a t i o n a l o r g a n i z a t i o n s . S o u r c e t S e c u r i t i e s a n d Exohangc C o m m i s s i o n .
I s s u e s n o t g u a r a n t e e d b y t h e U . S . G o v e r n m e n t . Source« l o n g - t e r m , S e c u r i t i e s a n d Exchange Commission; s h o r t term , T r e a s u r y Department and f e d e r a l B e s e r v e .
T h e s e d a t a d i f f e r f r o m t h o s e I n B t h l b l t 0 a n d a b o v e i n t h a t t h e y r e p r e s e n t new o f f e r l n g e l o b s r e t i r e m e n t s , w h e t h e r
f r o m t h e p r o c e e d s o f r e f u n d i n g I s s u e s o r f r o m o t h e r f u n d s , feta I n c l u d e o n l y l s s u s s w i t h o r i g i n a l m a t u r i t y o f one
year or lee#.
P r i n c i p a l l y t a x a n d bond a n t i c i p a t i o n n o t e s , w a r r a n t s o r c e r t i f i c a t e s a n d P u b l i c H o u s i n g A u t h o r i t y n o t e s . I *
dome i n s t a n c e s PHA n o t e s i n c l u d e d may h a w a somewhat l o n g e r term t h a n one y e a r . Source i B o n d B y y e r a n d
Federal Reserve.




-12-

Exhibit I
Large Long-term Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1/

^

Proceeds of Large Issues Offered
( I n m i l l i o n s of dollars)
Month

Corporate

I960 - September
October
November
December
1961 - JanuaryFebruary
March
April
May

S t a t e and
local
government

2#
566
U>5
260
1U7
26?
70
1,572
557
532
his
185
168

July
August
September

-

Other 2 /
25
77
150
99

367
i|6
186
222
391
360
W5
383
2#
616
179
281
1435

67
25
151
100
73

Large Individual Issues Offered October 1 through 13
Issuer

Type 3 /

I Amount
( m i l l i o n s Maturity
j dollars)

Coupon
rate or Offering
net i n t e r - yield
e s t cost

Rating;

CORPORATE
P u b l i c S e r v i c e Co. of Colo. 1 s t mtg. bds .
Deb. Gulf S t a t e s U t i l i t i e s Co.
Conv.sub.deb .
A l l i e d S t o r e s Corp.
E q u i p . t r . ctf .
Gen. Amer. Transp. Corp.

30.0
15.0
27.0
25.0

1991
1981
1981
1981

10.2
35.0

1963-81
1962-86

15.0

1976

1-1/2
L-5/8
h-l/2
ii.55

h.h2
ii.55
U.35
a. 55

Aa
A
Ba
A

STATE AND LOCAL GOVERNMENT
New Haven, Conn.
Los Angeles Sch. Dist.,Cal«

G.O.
G.O.

•

2.92
3.L5

1.70-3.20
1.50-3.60

Aaa
Aa

- OTHER
Japan Development Bank




Bonds

6

6.h7^

—

H. lit

i-2

-13-

frootnoti a
1/
2/
2/

h/

Include a c o r p o r a t e t n d other s e c u r i t y o f f e r i n g s oi *>15 • m i l l i o n and over;
S t a t e and l o c a l government s e c u r i t y o f f e r i n g s oi' vlO million and over.
Includes f o r e i g n government and I n t e r n a t i o n a l Lank f o r Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal a g e n c i e s .
In t h e case of S t a t e and l o c a l government s e c u r i t i e s , G. 0. denotes general
o b l i g a t i o n s ; R e v . - l i t . , ievenue o b l i g a t i o n s secured only ly income lrom
p u b l i c u t i l i t i e s 3 Rev.-Q.Ut., revenue bonds securea only by revenue from
q u a s i - u t i l i t i e s ; Rev.-S.T,, revenue bonds secured Ly revenue from s p e c i f i c
t a x e s only; Rev.-Rent., revenue uonds secured solely bj l e a s e payments.
.0 m i l l i o n oi 19^1i-66 .r;t;i i a l Dends with vj - ^,-l/ij vx r cent, coupons not
ruoi'lVred.




-IllForthcoming Large Long-term Public S e c u r i t y O f f e r i n g s f o r New C a p i t a l
( O t h e r than U. S. Treasury) 3 /
Expected Proceeds from Forthcoming Large I s s u e s
Date of
computation

During month following
date shown
S t a t e and
Other 2 /
Corporate
l o c a l govt.

I960 - Sept. .30 _ — 576
1*1*0
Oct. 31
260
Nov. 30
Dec. 30
91
110
1961 - Jan. 31
Feb. 28
55
1,580
Mar. 31
Apr. 28
512
May 31
1*87
June 30
521
July 3 1
170
Aug. 31
175
Sept. 29
358

212
258
21*2
1*12
181
307
559
236
1*31
195
1*06
399
251

77
50

15
75
73
35

Subsequent t o
date shown
S t a t e and
Other 2 /
Corporate
l o c a l povt.
836
585
335
1,036
1,01*6
1,125
1,700
687
611
666
255
2L0
501*

336
391
5#
682
360
638
806 _
579
771
291
537
530
1*51*

127
50

15
75
73
35

Forthcoming Large O f f e r i n g s , a s of October 13
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 )

CORPORATE
P u b l i c S e r v i c e E l e c t r i c & Gas Co.
Northern Indiana Public Service Co.

Deb.
Conv. deb.

1st mtg.bds.&pfd.stk.
Georgia Power Co.
Com. s t k . .
P a c i f i c Northwest B e l l Telephone Co.
Keystone S t e e l & Wire Co.
Family Finance Coip.
Niagara Mohawk Power Co.
*Deere & Co.
FMC Corp.
Idaho Power Co.
Rochester Gas & E l e c t r i c Co.
P a c i f i c Northwest B e l l T e l . Co.
C a r o l i n a Power & Light Co,
Commerce O i l R e f i n i n g Corp.
Realty C o l l a t e r a l Corp.




Conv. sub. deb.
Sen. deb.
Mtg. bds. & com. s t k .
Deb.
Conv. sub. deb.
1st ratg.bds.&com.stk.
1 s t mtg. bds.
Deb.
1st mtg.bds.&com.stk.
Deb., bds. & com.
Coll. t r . notes

50.0
20.3
17.0
28.0
20.0
25.0
70.3
35.0
30.0
16.8
15.0
50.0
33.7
1*5.0
20.0

Oct. 18
Oct. 18
( r i g h t s expire)
Oct. 19
Oct. 20
( r i g h t s expire)
Oct. 23
Oct. 23
Oct. 25
Oct. 31
Oct.
Nov. 2
Nov. 15
Nov. 16
Nov. 17
Indefinite
Indefinite

' y
' X

(

: \

J-2

-15-

Forthcoming Large O f f e r i n g s , a s of October 13 ( C o n t ' d )
Type

Issuer

STATE AND LOCAL GOVERNMENT
S t a t e of New York
S t a t e of C a l i f o r n i a
S t a t e of Texas
S t a t e of Michigan
S t a t e of Kentucky
P i t t s b u r g h & Allegheny Co. P u b l i c
Aud. Auth.
Wayne County, Mich.
P u b l i c Housing Auth.
P h i l a d e l p h i a , Pennsylvania
&State of Hawaii
*Ascension-St. James Bridge & F e r r y
Authority
Los Angeles Flood Cont. D i s t . , C a l .
Georgia S t a t e Highway A u t h o r i t y
Omaha P u b l i c Power D i s t . , Nebraska
Oklahoma Turnpike Auth.
F l o r i d a Turnpike Auth.
Orleans P a r i s h Sch. D 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.

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

G.O.
G.O.
G.O.
Rev, —S. T.
G.O.
j

1*8.7
100.0
25.0
35.0
1*0.0

Oct.
Oct.
Oct.
Oct.
Oct.

16
18
19
21*
25

Rev. - R e n t .
G.O.
G.O.
G.O.
G.O.

15.0
16.8
78.5
19.0
10.0

Oct.
Oct.
Nov.
Nov.
Nov.

26
31
1
2
8

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

30.0
20.0
35.0
17.0
55.8
100.0
10.0
1*6.0
liO.O

Bonds

15.0

Nov. 13
Nov. 111
Nov. 15
Nov. 16
Fall
Fall
Indefinite
Indefinite
Indefinite

OTHER
Govt, of New Zealand

Oct.

*—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 $15 m i l l i o n and over; S t a t e and
l o c a l government i s s u e s of $10 m i l l i o n and o v e r .
2 / I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and
Development i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e r a l a g e n c i e s .
N o t e . — D e l e t i o n s f o r r e a s o n s o t h e r than s a l e of i s s u e : None.




iixliibit K

-16-

Yields on New and Outstanding
E l e c t r i c Power Bonds, listed Aa ahd A 1 /
A-rated o f f e r i n g y i e l d s
Aa-rated o f f e r i n g y i e l d s
Ar.iount- above
Amount above
Actual
Actual
seasoned y i e l d s
seasoned y i e l d s
( p t r cent)
(per cent)
(basis points)
(basis points)

Date

1952-1960 - h i g h
Low

5.30 ( 1 2 / 8 / 5 9 )
2.93 ( 3 / 3 1 / 5 U

1961 - J a n . 12
18
25
Feb. 8
16
16
l i a r . 23
2it
Apr. 13
21
26
27
May 17
18
19
23

4.60
it. 55
it.itit

it.37

.

13
28
J u l y 13
26
Aug. 3
9

123
-15

it. 60
it. 65
it.it7
it.50
it.itO
it. 65 2 /
if. 80 2 /

5
-13
5
-5

8

it3
25
13
20

It. 65

27

it. 87

41

it. 65

lit

it. 85

0

-2

17

32

it.72

•

19

it.80

27

it.9it
5.12
it.92

itO
55
36

it.93

29

it.90

20

29

Lk2^/

1

i

2/

5.65 (9/18/59)
3.00 (3/17/51)

11
7
-2

it. 80
it. 67
Ii.50 2/
1.57

26
June 8

2/

87
-8

Covers only 30-year f i r s t mortgage bonds, a s r e p o r t e d i n h o o c h ' s Bond Survey, f.
Except where i n d i c a t e d , t h e a c t u a l y i e l d f i g u r e and t h e amount above seasoned,,y i e l d s a r e averages of o f f e r i n g s during t h e i n d i c a t e d p e r i o d and of t h e d i f f e r *
ences between t h e s e new o f f e r i n g y i e l d s and y i e l d s on seasoned i s s u e s of
s i m i l a r q u a l i t y f o r t h e same day. Average m a t u r i t y f o r t h e seasoned i s s u e s
v a r i e s from 26 t o 28 y e a r s .
P r o v i d e s f o r a 5 - y e a r period d u r i n g which i s s u e may n o t be c a l l e d f o r r e f u n d - 4
ing a t a lower coupon r a t e . Monthly averages so marked i n c l u d e one o r more
i s s u e s with such a p r o v i s i o n . O t h e r i s s u e s have no such p r o v i s i o n .




-17-

Exhibit L
Sources and Uses of Funds by
L i f e Insurance Companies
U. S.
Govt.
securities
Value of a s s e t s at
end of period:
1957 - Dec.
1958 - Dec.
1959 - Dec.
1960 - Dec.
1961 - Aug.

Uses of funds \ J
State and
Busil o c a l govt. Mortness
gages
secursecurities
i t i e s 2/
(In m i l l i o n s of d o l l a r s )

Other

6,440

35,271
37,092
39,237
41,798
43,216

13,206
14,640

46,901
48,896
50,354

3,221
3,622
3,822

"39
95
-181
-18
-132
-168

194
81
82
203
195
219

110
31
18
14
18
24

194
167
207
245
235
304

146
110
108
91
146
313

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

153
-36
-167
-85
-62
-102
73
-40

204
125
104
134
231
125
167
168
• 40
311
198
188

-24
25
35
21
26
13
104
43
82
33
26
17

a

-46
207
115
95
128
211
206
175
122
11
102
173

-54

101
-3
-7
-17
63
-150
39

242
128

49
31

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

7,028
7,182
6,858

Changes:
1959 - July
Aug.
Sept.
Oct.
Nov.
' Dec.

-25
16
-39
20
33

1960 — Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1961 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,286

99

-9

-50
9
75
-33
34
-18

6 , i M

-6

-62
23
-103

1(2,133

a , 612

148

135
170
153
271 1
211

2,377
2,691

II
5
5
7
36

242
225
203
192
63
226
179
214
208
277
210
135
208
202
170
182
147
164

16,126

17,625
18,784

202
202

186

119
58
242
22
128

Uses of funds represent net changes in a s s e t s and therefore r e f l e c t n e t ,
than g r o s s , u s e s .
2 / Includes s e c u r i t i e s of domestic corporations only.
S o u r c e . — I n s t i t u t e of L i f e Insurance.




Exhibit M

-18-

Sources and Uses of Funds by
S a v i n g s and Loan A s s o c i a t i o n s

Cash
Value of a s s e t s
a t end of p e r i o d
1957 - Dec.
1958 - Dec.
1959 - Dec.
1960 - Dec.
1961 - Aug.
Changes:
1959 - J u l y
Aug.
Sept.
Oct.
Nov.
Dec.
p/1960 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
2/1961

Jan.
Feb.
Mar.
Apr.
May

Julyr/
Aug.
Sept.
Oct.
Nov.
Dec.
Revised.

Sources of funds
Uses of funds 1 /
Net
Total
U. S.
borrowchange
sources
Mort- . Other
Govt.
savings ing y
secur- g a r s s J
capital
ities
( I n m i l l i o n s of d o l l a r s )
10,912
k7,976
5k,583
62,15k
67,172

1,379
l,kkk
2,387
2,191
2,152

k,8k7
5,719

3l6?6
k,10k
a,3#

148,138
55,139
63,530
71,U89
77,778

803
7k0
679
626
k60
k68

-113
lk
6k
86
lkl
-65

367
735
58k
653
63k
7k9

201
39k
kk7
396
k8k
1,205

31
119
lk8
136
56
222

135
222
89
121
9k
-678

196
65
-22
-2
21
-Ik3
-33
-27
1
20
36
-3

316
398
5k7
565
635
780
615
713
6k3
605
501
572

-119
65
93
106
203
-58
-127
2
63
85
153
-38

92
k9k
667
6k2
9#
908
219
718
731
81k
776
959

k68
k09
623
372
630
1,216
lk9
k89
602
667
558
1,388

-k62
-Ilk
-126
37
5
211
-127
22
k9
-lk
51
272

86
199
170
233
30k
-519
197
207
80
161
167
-701

93
192
107
-18

371
k27
689
69k
815
993
738
880

-107
71
123
113
216
-60
-152
• 52

262
7k9
922
813

591
553
705
kl7
800
1,362
111
k79

-k65
-80
-26
88
10
27k
-1
130

136
276
21*3
308
339
-5k0
2kl
307

2,715
2,68k

3,173
3,819
k,k77
L,586
5,0k3

k0,0k9
15,627
53,19k
60,08k
65,691

-U31
-U2
-52
-69
61
371

108
23
-7
10
-28
-25

-301
-3k
k9
-27
80
329
-236
30
2k
10k

2,lU6
2,585

2,183

86

1*28
-95
59
3
2k
ik9
132
-227
-76

31
-8
60

2,770

1,180
1,096
351
916

6,560
7,lkk
8,k5k

» S M S S z s s sH a a s



Exhibit N

-19-

Sources and Uses of Funds
by Mutual Savings Banks

Cash

Uses of funds 1 /
Busi- State &
Total
U. S.
local
Mort- Other sources
Govt.
govt.
gages
ities
ities
ities
2/
( I n m i l l i o n s of d o l l a r s )

Value of a s s e t s
a t end of p e r i o d
1957 - Dec.
1958 - Dec.
1959 - Dec.
I960 - Dec.
1961 - Aug.

890
921
829
872
819

7,552
7,266
6,864
6,239
6,316

4,331
4,973
4,849
5,080
5,141

682
725
722
672
686

Changes:
1959 - J u l y
Aug.
Sept .
Oct.
Nov.
Dec.

-79
3
-2
-27
20
111

. -13
-12
-32
-281
-85
-12

-47
13
-2
-55
-28
23

4
-1
8
-20
-8
-24

I960 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-131
37
ill
-86
1*2
108
-69
-6
22
-8
9
84

-9
. -11
32
-148
-80
-93
-48
30
-32
-156
-68
-42

-12
-9
52
-19
13
57
38
-8
32
-4
34
57

-49
21
9
-51
30
27
-26
-14

106
100
117
-216
-13
-41
18
6

3
-15
46
-11
27
32
2
-23

1961 - J a n .
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
y

Uses o f C f u n d s

represent

Sources of f u n d s
Net
change i n
deposits

20,951
761
23,039 •855
910
24,768
26,709 1 , 0 0 1
28,186 1 , 0 5 6

35,168
37,779
38,912
^0,573
1*2,20U

31,695
34,041
34,983
3b,353
37,559

3,473
3,738
3,959
4,220
4,645

179
156
160
137
124
132

-12
33
31
-37
42
-12

32
192
163
-283
65
218

-54
80
197
-187
-27
340

86
112
-34
-96
92
-122

-6
-9
3
13
-23
-4
-4
-5
1
-6
-5
-5

159
116
150
129
161
169
159
206
196
168
171
157

-12
43
41
-21
63
-59
42
6
14
-25
13
-14

167
319
-132
176
178
118
223
233
-31
15k
237

-11

-68
50
320
-95
58
221
21
105
278
' 56
39
385

57
117
-1
-37
118
-43
97
118
-45
-87
115
-148

-5

161
i4o
204
176
187
201
201
207

17
26
29
-51
30
-23
-28
54

233
272
404
-154
262
2ia
164
232

170
136
351
-54
/ 114
367
23
99

63
136
53
-100
148
-149
i4l
133

-1
-2
1
22
-2
1

n e t c o n g e s In a s s e t s and t h e r e . o r e r e f l e c t n e t , r a t n e r

a/
t i o n .
Corpora


J^rssssiwas =.T:


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102