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Not f o r Publication
DECONTROLLED AFTER SIX MONTHS

H.lij
',38)

October 9,-1961
1 CAPITAL MARKET DEVELOPMENTS
IN THE UNITED STATES

The volume of public s e c u r i t y f i n a n c i n g to obtain new c a p i t a l
was.J-ight-lia s t week and i s expected t o be somewhat l a r g e r t h i s week. Last
week, ending October 6, two l a r g e corporate bond i s s u e s aggregating
m i l l i o n were o f f e r e d , one S t a t e and l o c a l government bond i s s u e f o r $10
m i l l i o n was s o l d , and the Japan Development Bank sold $20 m i l l i o n in bonds.
This week, ending October 13, two corporate i s s u e s , including the expiration
of a r i g h t s o f f e r i n g , aggregating $52 m i l l i o n a r e on t h e calendar while one .
S t a t e and l o c a l issue with par value of $35 i s scheduled f o r o f f e r i n g .
Bond y i e l d s . Yields on both Aaa-rated corporate and S tate and
l o c a l government bonds declined by two and one 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 Baa-rated corporate bonds rose one b a s i s p o i n t . Yields on
long-term U. S. Government bonds and Baa-rated State and l o c a l government
bonds were unchanged.
A new Aa-rated 30-year f i r s t mortgage e l e c t r i c u t i l i t y bond issue
was o f f e r e d t o i n v e s t o r s l a s t week a t b.h2 p e r cent, k?> b a s i s p o i n t s below
the l a s t comparable i s s u e s o l d i n e a r l y August, and only 5 b a s i s p o i n t s
above the low f o r t h e year reached i n l a t e March.
Short- and intermediate-term i n t e r e s t r a t e s . Yields on 3-month
Treasury b i l l s , which had been d e c l i n i n g since mid-August, rose t h r e e b a s i s
p o i n t s l a s t week, while y i e l d s on 6-month b i l l s , which had r i s e n during
September, declined f i v e basis p o i n t s . Yields on 3-5 year li. S. Government
s e c u r i t i e s continuing t h e i r decline of the past several weeks, decreased f i v e ,
b a s i s p o i n t s . The average i n t e r e s t r a t e on d i r e c t l y placed f i n a n c e company
paper with 90-179 day maturity increased 15 b a s i s p o i n t s to 2,8.1 per cent
due t o a change in the maturity schedule. The average r a t e of i n t e r e s t
on Federal funds declined 25 b a s i s p o i n t s from the r e v i s e d l e v e l of l a s t
week to 1.80 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 recordings. Nonfarm mortgage recordings declined i n
July a f t e r two months of r i s e . Government underwritten loans edged higher
i n t o t a l , but conventional loans were reduced. On a seasonally a d j u s t e d
b a s i s , the three-month moving average of recordings i n June was a t a r a t e
of *2,581 m i l l i o n , about midway between the low of l a s t January and the
high reached i n mid-1959.
Inflow a t ma,jor savings i n s t i t u t i o n s . Recent data on the net
inflow of funds t o savings and loan a s s o c i a t i o n s , mutual savings banks and
l i f e insurance companies i n August suggest t h a t r e p o r t s of a sharp decline
i n the inflow of funds to these f i n a n c i a l i n t e r n e d i a r i e s t h i s .summer have
probably been exaggerated. The t o t a l inflow t o these t h r e e types of i n s t i futions - IrTTiufuslf was .^l,L5l m i l l i o n , s l i g h t l y l e s s t h a n a year e a r l i e r , as
had been the case in July when t h e t o t a l was £1,232 m i l l i o n . The smaller




-2-

inflow t h i s year than l a s t i n t h e s e two months was in c o n t r a s t t o t h e subs t a n t i a l y e a r - o v e r - y e a r i n c r e a s e s e a r l i e r i n I 9 6 I . I t should be n o t e d ,
however, t h a t saving i n f l o w a t t h e s e i n s t i t u t i o n s Lad i n c r e a s e d s h a r p l y
a f t e r mid-1960. I f t h e data a r e a d j u s t e d f o r seasonal v a r i a t i o n , t h e
i n f l o w a t t h e s e i n s t i t u t i o n s in July and August was only moderately l e s s
than t h e record r a t e in t h e l a s t q u a r t e r of i960 and the f i r s t q u a r t e r of
1961 and about t h e same a s i n t h e second q u a r t e r of t h i s y e a r . These data
a r e shown in th< t a b l e on t h e f o l l o w i n g page. While techniques f o r seasona l l y a d j u s t i n g t h e s e data r e q u i r e f u r t h e r r e f i n e m e n t , and some of t h e s e r i e s
a r e s u b j e c t t o s h a r p e r r a t i c monthly movements, i t seems c l e a r t h a t any
d e c l i n e in t h e n e t flow of f u n d s t o t h e s e i n s t i t u t i o n s r e c e n t l y has been
q u i t e moderate. D e t a i l on t h e investment of t h e s e i n s t i t u t i o n s i n August
w i l l be p r e s e n t e d in next w e e k ' s C a p i t a l Market Developments.
Stock p r i c e s . Conmon stock p r i c e s , a s measured by Standard and
P o o r ' s composite index of 500 s t o c k s , r o s e 2 p e r c e n t on balance l a s t week,
c l o s i n g on October 6 a t 6 7 . 9 7 . The average d a i l y volume of t r a d i n g was
unchanged from t h e p r e v i o u s week a t 3 . 3 m i l l i o n s h a r e s .
More d e t a i l e d i n f o r m a t i o n concerning r e c e n t c a p i t a l market
developments i s p r e s e n t e d in t h e a t t a c h e d e x h i b i t s .

Capital Markets S e c t i o n ,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




-3Net i n c r e a s e in
share c a p i t a l a t
savings and loan
associations
Unadj. Seas,
adj.
Monthly average
I960 - I
II
III
IV
1961 - I
II
July-Aug.
Month
July - i 9 6 0
1961
Aug. - I960
1961

ti

et increase in
deposits a t
mutual savings
banks
Seas.
Unadj.
Adj.

Net i n c r e a s e i n
l i f e insurance
company
Unadj.

Seas,
adj.

Total
Unadj.

Seas,
adj.

500
739
1*13
871
616
860
295

55 3
58k
61*5728
677
683
692

101
61
135
160
219
112
61

51*
85
159
160
170
166
136

1*38
1*71
523
590
581*
1*61*
521

1)62
518
<10
536
tXJO
512
511*

1,039
1,271
1,071
1,621
1,1*19
1,1*66
877

1,069
1,187
1,33k
1,1*25
1,1*52
1,361
1,31*2

ll*9
111
1*89

551
571
782
8132/

21
23
105
99

198
210
70
62

628
520
576
521

51*1*
1*51
636
576

798
651*
1,170 .
1,099a/

1,293
1,232
1,1*88
l,l*5l£/

hi 92/




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

LOWER-GRADE




Exhibit B - Tables f o r Exhibit A

-5-

Long-tera Bond Yields
High-grade
Date

U. S. Govt/
long-term 2 /

Corporate
Aaa 1 /

(per cent)
19514 - Low
1957 - High
1958 - Low
1959-60 - High
i 9 6 0 - Low
1961 - High
Low
Sept. 8
Sept. 15
Sept. 22
Sept. 29
Oct. 6 g /

2 . 8 5 (4/23)

it.lit (9/27)
3.55 (5/2)

it.it6

it.02

it. it6
it.it5
it.it5
it.it3 /

.30
.60

2 . 6 U (5/1)
3 . 6 5 (9/24/50)
2.99 (9/1)

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

it.it2 (1/8/60)
3.75 Ce/S)
it.06 (9/15)
3.70 (5/12)

it. 6 1 (1/29/60)

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

1.90 (9/2)
3.it5 (8/29)

2.it5 (e/6)

it. 23 (9/9)
it.it6 (9/15)
it.21 (3/17)

State and
local
government
Aaa 3/

.22

.59
.19"
.57
.I4O

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

.itit
.itO
.it3

3.3it
3.3it
3.3it
3.31
3.30

lt.06

it. 02
3.98
3.98

.in-

.30
.50
.3it
.92
.53
.76
.it6

.68
.72
.68
.67
.60

Lower-grade

Date

Corporate
Baa 1 /

State and
local govt.
Baa Y

Spread between
Aaa and Baa
State and
Corporate
local Kovt.

(per cent)
19514 - Low
19*7 - High
1958 - Low
1959-60 - High
1 9 6 0 - Low
1961 - High
Low
Sept. fl
Sept. 15
Sept. 22
Sept. 29
Oct. 6 g /

3.itU (U/31)
5.10 (11/20)
it. 5 1 (7/11)

5.36 (2/12/60)
it. 9 8 (9/9)

5.13 (10/6)
5.00 (it/21)

a
5.12

1

2.93 (e/s)
it. S i
3.61t
it. it6
3.98

(8/29)
(6/1)
(1/7/60)
(12/29)

it. 16 (3/?3)
3.93 ( 8 / 3 )

it.02
it. 0 2
it.02
it. 0 0
it. 0 0

.52
1.27
.77
,8it
.71
.81
.66

.96
1.21
.93
1.08
.96
.93
/ .57

.66
.66
.67
.67
.69

.68
.68
.68
.69
.70

p/ Preliminary.
1/ Weekly average of dally figures* Average term of boade Included i e 23 -26 year*,
2/ Meekly average ef dally figure*. The series Includes bonds due or callable In 10 ysari or mors.
3/ Thursday flguree. Only general obligation bends are Inoludedj average term I s 20 years.
Note.—Highs an4 lows are for Individual series and may be en different dates for different series,
for spreads, high r e f e r s to wldsst, and low to narrowest.




V?
EXHIBIT C
SHORT-

AND

INTERMEDIATE-

TERM

f . 8 . DISCOUNT Silt,

AND

OTHER

PRIVATE

BORROWERS

JFT

DISCOUNT I
[iATES
/




:

:

INTEREST RATES

GOVERNMENT

BANKS

.

S O I ECAG
T C XH N E

-7-

Exhibit D - Tables f o r Exhibit C
3 i o r t - and Intermediate-tern I n t e r e s t hates
Government
Date

Discount
rate

V

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

3-month
b i l l s 2/

195k - Low
1957 - High
1950 - Low
1959-60 - High
I960 - Low
1961 - High
Low

1.50
3.50
1.75
U.00
3.00
3.00
3.00

2.56 ( 3 / 3 )
2.17 (1/27)

2.78 (8/18)
2.35 (U/28)

Sept. 8
S e c t . 15
Sept. 22
Sept. 29
Oct. 6 2 /

3.00
3.00
3.00
3.00
3.00

2.32
2.29
2.26
2.25 ,
2.28^

2.68
2.69
2.69

.61 (6/U)
3.61* (10/I8)
. 5 8 (5/29)
U. 5 9 ( 1 / 8 / 6 0 )
2 . 1 1 (10/28)

3-5 year
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 01
6-mo. b i l l s | 3 - 5 yr. issues

1 . 6 6 (4/30)

3 . 02 (12/26)

It.01* (10/18)
2.1k ( 6 / 6 )

5.07
2 . 38

5 . 0 0 (12/24/69)
3.1*0 (12/30)

(1/8/60)
(12/30)

2.67

3.86

.26
.79
.16
.1*1*
.12

(8/11)

3.15 (5/12)
3.81
3.80
3.76
3.70
3.65

2.6k

.35
,39
.1*3

M

.36

.66
.86
.Ok
1.81
.38
1.51
.92
1.1*9
1.51
1.50
1.1*5
.1.37

Banks antf.OthersPrivate Borrowers
Date

Stock Exchange
c a l l loan 1 /

Prime
rata 1 /

Finance company
paper j /

Federal
funds y

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

(per cent)
19514 - Low
1957 - High
195)8 - Low
1959-60 - High.
i960 - Low
1961 - High
;

LOW

Se pt.
Sept.
Sept.
Sept.
Pet.

8
15
22
29
6 2/

3.00
11,50
3.50
5.50
If. 50
L50

3.00
V.50
3.50
5.00
1.50
l*.5o

H.SO

L5o
14.50

h.So

h.So

l*.5o

l*.5o
L5o

H.SO

h.SO

h.S0
l*.5o

1.25(12/31)
3 . 8 8 (11/15)
(8/8)
5'. 1 3 (1/22/60)
2 . 6 8 (12/30)

1'.13

3.50

(11/8)

.13 (V29)
ll.OO (5/13/60)

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

.95 (12/2)
2.85 (2/17)
.1*3 (1/27)

2.69
2.69
2.69
2.66
2.81

1.31
2.30
2.15
2.05
1.80

0
.63
-.35
1.02
.22
.56
.11
.37
.iiO
.11
.1*1
.53

St„ok Exohnnye c a l l I (ah r a t , l a going r a t e on t a l l loans seourcd by customers' stock exchange c o l l a t e r a l a t
Nan York City banks, Prime r a t e lo t h a t charged by large banks on J h n r t - t e r e loans t o business borrowers of
t h e h l g h e a t o r e d i t standing.
2 / Market y i e l d ; weekly averogee computed from d a l l y oloalno bid p r i c e s . S e r i e s of 3-5 year I s s u e s c o n s i s t s of
eeluoted note a and bonds,
•
3/ Average of d a l l y r a t e s published by finance coopanlss f o r d l r s o t l y p i t i e d paper f o r v a r y U * m a t u r i t i e s In the
90-179 day raojje.
.
4 / Weekly average uf d u l l y e f f e c t i v e r a t e , which I s the r a t e f o r t h e h e a v i e s t vol wee of purchase and sale t r u n c a t i o n s
a t r e p o r t e d t o the Federal Reserve Bank of Mow York.
'
.Not*.--Hinils *nd lows are f o r Individual s e r i e s and may be on d i f f e r e n t d a t e s f o r d i f f e r e n t d a t e s for d i f f e r e n t s » r l e e .
Kor s p r e a d s , high r e f e r s t o w i d e s t , and low t o narrowest.




STOCK

MARKET

MORTGAGE RECORDINGS AND

- /

v

V i .

/

V- -

LOANS

f




"\ /

CONVENTIONAL

Exhibit K - Tables l'or Exhibit E

-9-

Stock Market
Stock p r i c e
index 1 /

Date

1957-60 - High
Low
1961 - high
Low
August
September
S e p t . 22
Sept. 29
Oct. 6 2 /

Trading
Common
volume y
stock
yields 2/ (millions
( p e r cent) of shares)

39.46 (12/10/37)
68.29 ( 8 / 1 8 )
58.48 ( 1 / 6 )
67.79
67.26
66.72

66.73
67.97

3.08
4.72
2.89
3.32

4.9
1.4

2.90
2.92
2.96
2.95
2.91

6 0 . 5 1 (7/31/69)

Stock market customer crnHit
Customers 1
BankTotal
debit balloans t o
ances 4 /
"others" 5 /
( I n m i l l i o n s of d o l l a r s )
4 , 7 64 (4/59) 3 , 4 0 1 (4/69) 1,37 3 ( 5/59)
3,554 (.1/03) 2,482 (12/57) 1,060 (11/57)

5.8

5,386(5/61) 4,060(5/61)

2.7

4 , 4 2 4 ( l / o l ) 3,253(1/61) 1 , 1 6 1 ( 3 / 8 )

1,386(9/27)

3.5
3.2
3.2
3.3
3.3

5,349

3,972

n.a.

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

1,377
1,386
r/1,370
1,386

n.a.

n.a,-..Not available.
Prnllit.li.ary.
1 / Standard and Poor's ecmpontte Index of 500 oczsmon stocks, weekly olooliy prices, 1941-43»10. Monthly data are
averages of dally flcuveo rather than of rrldcy'e only, Hlghn and love are for Friday#/ data only#
2/ Standard and Poor'o ocmpoblto etoek yield baned on Hednenday data converted to weekly placing; prices by Federal
Reccrve, Yields ahotrn are for dates on which price Index reached I t s high or low.
3/ Average* of dally trading volvae on the Hew York Stock Exchange,
4 / End of month figure o for member firms of the Ibw York Stock Exchange which carry margin account »| exoludeu balance•
secured by U, S, Government obligations,
6/ Vedneuday figureo for weekly reporting member banku, Excludes loans for purchasing or carrying 0, S, Government
(oourltlev. Prior to July 1, 1959, eut-h losnn are excluded only at banlto In Mw York and Chlcr^o, Weekly reporting
o
banks aooount for about 70 per oont of loans ^ o othero. For further detail oeu Bulletin.

Nonfarm Mortgage.Recordings and Loans 1 /
Date

1960 - J u l y
Aug.
Sept.
Oct.
Nov.
Bee.
1961 - Jan.
Feb.
Mar.
Apr.
May
July

Total
Unadjusted
Seasonally
Unadjusted
FHA
• VA.
adjusted 2/
CHillions of d o l l a r s )
2,493
2,486
2,464

2,161

2,126
2,407
2,373
2,3o7
2,396
.2,176
2,561
2,581

2,528
2,784
2,598
2,525
2,378
2,338
2,075
1,997
2,444
2,358
2, 700
2,856
2,653

.

362
417
425
434
404
3%
410 .
341
348
318
349
386

386

160
181
169
162
150
142
132
108
125
109
123
137
144

Conv,
2,006
2,186
2,004
1,929
1,824
1,806
1,533
1,548
1,972
1,931
2,228
2,333
2,122

n.a,—Not available,
1/ Total recordings data are estimates based on reports from about 450 areas and Include
mortgagee of |20,000 or lees secured by nonf&rm real estate, primarily residential properties,
FHA-lasured loans represent gross amount of Insurance written, and VA-gusranteed loans the gross amount
of loans closed,on 1-4 family houses. Conventional data are derived as a residual, although total
recordings and V and F A loans wo not etrlotly comparable In concept or timing,
A
H
2/ Three-month moving average, seasonally adjusted by Federal Reserve,
• Soureei Federal Home Loan Bank Board, federal Housing Administration and Veterans Administration,




Exhibit 0
Long-term Corporate and State and Local GovernSecurity Offerings and Placements
(2h millions of dollars)

1961
Januajy
February
March
April
Hay
June

580
667
$62
2,118
1,259
1,318

July
.August
September

957
e/600
e/650

October
November
December

e/800

1st
2nd
3rd
kth

quarter
quarter
quarter
quarter

1 s t half
Three quarters
Year

. Mw cai
e
pital
State and l o c a l 2 /
Corporate 1 /
! 1959
1961
1 I960
1 I960
1 1959
700
611
568

/

6k8 .

570
715
860

821
738
6#

716
683
760

761

•8914
785
887

72k
628
1,015

719
5k5
991 .

IS

235
7ko
703

e/k50
e/600
1/750

k92
606
683

U.3
521
1)70

3k8

593
1)50
1*78

.- i,o% .
967
726

_^/600

638

967

890
'956
852

a

1,809
4,695
e/2,207

2,11*5
2,382
2,128
2,698

2,20k
2,567
1,979
2,61i2

2,159
2,367
e/1,800

1,880
2,256
1,780
l,3k0

2,I'j5
2,1,88
I,li33
1,521 .

6,50k
e/8,811

1,527
6,955
9,653

k,771
6,750
9,392

k,526
e/6,326

S I

li,63li
6,067
7,508

5di
k91

900 '

7,257

Excluding finance companies jl/
1st
2nd
3rd
5th

quarter
quarter
quarter
quarter

Year
6/

1/
2/
"y

&SL2jnaT.ea.

g/

1,716
2,165
2,016
2,317

1,999
2,1,12
1,716
2,503

8,2k6

l,55k
k,552
e/2,107

•8,630

rrcu.Aiiujiaijr.

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.




Exhibit H

-11-

Other Security Offerings
(In millions of dollars)
Gross long-term l 7
Federal agency 3/
Foreign government 2/
I960
I960
1 W
1959
" W
January
February
March

6
29
20

2
175
70

April
May
June

2
63
22*

34
72

5850

July
August
September

__

25
1
36

85
1
35

3k

33
30
70

October
November
December

533

252
100
12*9
278

k2

ho

2
la

Year

81
60
2

'

193T

182
150
150

199
175

1I48
35U
• . —

—

98
150

199
—

160
12#
181

5^7

86

1,672

r

707

Net short-term k/
Federal agency 3/
State and l o c a l government 5/
January
February
March
April
May
June
July
August
September

160
195
-8

IhO

-it
181

>

-12|4
-162
-17U

-103
-12
-155

70
-iii6
-157

197
-25
-197

-79
-87
207

-277
170 '
320

-82
176
33

-196
-202
-59

109

October
November
December
Year .
g/
1/

58

-80

hQ

2415
-175

57
392 .
131

58

•

%
368
286

95
23
-201

362
133
• 79

-16
50
-189

-81
-176
-117

-23
-33
-250

• 280
22*0
144

18

362

-633

1,969

Preliminary.
These d a t a d i f f e r from those I n Exhibit 0 i n t h a t r* f u n d i : * i s s u e s , a s well a s new c a p i t a l I s s u e s , a r e i n c l u d e d .
Long-term s e c u r i t i e s a r e d e f i n e d a s t h e s e maturing In more t h a n one y e a r .
2 / I n c l u d e s s e c u r i t i e s o f f e r e d In the United S t a t e s by f o r e i g n governsants and t h e i r subdivisions and by I n t e r n a t i o n a l o r g a n i z a t i o n s . Sourest S e c u r i t i e s and Exchange Commission.
3 / i s s u e s not gujirantned by t h e U. S . Government. Sourcei long-term, S e c u r i t i e s and Exchange Commission; s h o r t term , Treasury Department and Federal Reserve.
4 / These feta d i f f e r from those i n Exhibit Q and above i n t h a t they r e p r e s e n t new o f f e r i n g s leBs r e t i r e m e n t s , whether
from t h e proceeds of r e f u n d i n g i s s u e s or f r o * o t h e r f u n d s . Data Include only i s s u e s w i t h o r i g i n a l m a t u r i t y of one
year or l e s s .
5 / P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , w a r r a n t s or c e r t i f i c a t e s and P u b l i c Housing Authority n o t e s . I n
aoee i n s t a n c e s PHA n o t e s included may have a somewhat longer term t h a n one y e a r . Sourcei Bond Buyer and
Federal Reserve.




-12-

Exhibit I
Large Long-term Public Security I s s u e s f o r New Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large Issues Offered
( I n millions of d o l l a r s )
Corporate

Month

S t a t e and
local
government

266
566
165
260
1U7
267
70
1,572
557
532
U75__
'
185

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

Other 2 /
25
77
150
99

367
1*6
186

222
391
360
W5
383
256

67
-

616

179

100
' 73

281

Ii35

168

25
151

Large Individual Issues Offered October 1 through 6
Issuer

Type 3/

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

Rating

CORPORATE
Public Service Co. of Col.
Gulf States U t i l i t i e s Co.

1st mtg.bds.
Deb.

30.0
15.0

1991
1981

G.O.

10.2

I963-8I

Bondo

15.0

1976

1-1/2
1-5/8

l|.li2
ii.55

Aa
A

STATE AND LOCAL GOVERNMENT
New haven, Conn.

2.92

1.70-3.20

Aaa

OTHER
Japan Development Bank




6

6.h7^

—

H.lli

i-2
j-QQtnotL.3

1/

Includes corporate t.nd other security offerings of *15 million and over;
State and l o c a l government security offerings of *10 million and over.
Includes foreign government and International bank f o r Reconstruction and
Development i s s u e s and non-guaranteed issues by federal agencies.
2 / In the case of State and l o c a l government s e c u r i t i e s , Q. 0. denotes general
obligations; tiev.-Ut., levenue obligations secured only Ly income from
public u t i l i t i e s ; Rev,-Q.Ut., revenue bonds secured only by revenue from
q u a a i - u t i l i t i e s ; Rev.-S.T,, revenue bonds secured by revenue from s p e c i f i c
taxes cnly; Rev.-Kent., revenue to nets secured solely bj l e a s e payments,
b / v5»0 m i l l i o n of I96I1-66 s e r i a l bonds with 5 p e r cent coupons not
reoffered.
2/




-IllForthcoming Large Long-term Public Security Offerings f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues
During month following
date shown
S t a t e and
Other 2 /
Coiporate
l o c a l govt.

Date of
computation
I 9 6 0 - Sept. 30
Oct. 31
Nov. 30
Dec. 30
1961 - Jan. 31
' Feb. 28
Mar. 31
Apr. 28
May 31
June 30
July 31
Aug. 31
Sept. 29

576
ao
260
91
110
55
1,580
5142
187
5a *

212
258
2h2
1(12
181
307
5#
236
h31
195

170

77
56

15
75

I1O6

175
358

Subsequent t o
date shown
State and
Corporate l o c a l govt. Other 2/

399
251

73
35

836
#5
335
1,036
l,0li6
1,125
1,700
687
611
666
255
240
Sok

336
391
560
682
360

127
50

638

806
579
771

15
75

291

537
530 ,
hSk

73
35

Forthcoming Large O f f e r i n g s , a s of October 6
Issuer

Type

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

CORPORATE
Conv. sub. deb.

Oct. 9
( r i g h t s expire)
Oct. 11
Equip, t r . c t f .
25.0
General American Transp. Coip.
Oct. 18
Deb.
50.0
Public Service E l e c t r i c & Gas Co.
Conv. deb.
20.3
Oct. 18
Northern Indiana Public Service Co.
( r i g h t s expire)
Oct. 19 .
1st mtg.bds.&pfd.stk. 17.0
Georgia Power Co.
Com. s t k .
28.0
Oct. 20
P a c i f i c Northwest Bell Telephone Co,
( r i g h t s expire)
ConV. sub. deb.
20.0
Oct. 23
Keystone Steel & Wire Co.
Oct. 25
Mtg. bds. & com. s t k . 70.3
Niagara Mohawk Power Co.
Sen. deb.
25.0
Oct. 25
Family Finance Corp.
Oct.
Conv. sub. deb.
30.0
FMC Corp.
Nov. 2
1 s t mtg.bds.&com.stk. 16.8
Idaho Power Co.
Nov. 16
Deb.
50.0
P a c i f i c Northwest Bell T e l . Co.
Indefinite
1 s t mtg. bds.
15.0
Rochester Gas & E l e c t r i c Co.
Deb., bds. & com.
1*5.0
Indefinite
Commerce Oil Refining Corp.
Indefinite
C o l l . t r . notes
20.0
Realty C o l l a t e r a l Corp.
A l l i e d Stores Corp.




27.0

-15-

J-2
Forthccming Large O f f e r i n g s , as of October 6 ( C o n t ' d )
Type

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

STATE AND LOCAL GOVERNMENT
Los Angeles Sch. D i s t . , C a l i f .
S t a t e of New York
S t a t e of Kentucky
S t a t e of C a l i f o r n i a
P i t t s b u r g h & Allegheny Co. P u b l i c
Aud. Auth.
S t a t e of Texas
s-State of Michigan
. Wayne County, Mich.
^ P u b l i c Housing Auth.
*-Phila d e l p h i a Penn sylvania
Georgia S t a t e Highway A u t h o r i t y
Los Angeles Flood Cont. D i s t . , C a l .
Omaha P u b l i c Power D i s t . , Nebraska
Oklahoma Turnpike Auth.
-"-Florida 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 ilxpressway Auth.
__

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

35.0
1*8.7
1*0.0
100.0

Oct.
Oct.
Oct.
Oct.

10
16
17
18

15.0
25.0
35.0
16.8
78.5
19.0
35.0
20.0
17.0
55.8
100.0
10.0
1+6.0
W.o

Oct. 19
Oct. 19
Oct. 2k
Oct. 31
Nov. 1
Nov. 2
Nov. 15
Nov. lit
Nov. 16
Fall
Fall
Indefinite
Indefinite
Indefinite

OTHER
Govt, of New Zealand.

Bonds

15.0

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 o v e r ; S t a t e and
l o c a l government i s s u e s of $10 m i l l i o n and o v e r .
2 / I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and
Development i s s u e s and n o n - g u a r a n t e e d i s s u e s by F e d e ra 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.




r-xhibit K
Yields on New and 7 Outstanding
E l e c t r i c Power- Bonds, listed Aa ahd A 1/
A-rated offering yields
Aa-rated offering yields
Amount-above
Amount above
Actual
Actual
seasoned yields (ptr cent) seasoned y i e l d s
(per cent) (basis points)
(basis points)

Date

5.30 (12/8/59)
2.93 (3/31/51*)

1952-1960 - high
Low

H.UH

11
7
-2

it. 37

8

I4.60
a. 55

1961 - Jan. 12
18
25
Feb. 8
16
16
liar. 23

5.65 ( 9/18/59)
3.00 (3/17/5L)

67
-8

L 60
U.65
it.it7
14.93
It.W

2K

Apr. 13
21
26
27
May 17
18
19
23
26
June 8
13
28
July 13
26
Aug. 3
9
Oct..3

y

2/

It. 80
it. 67

it3
29

lt.57

13
20

U.65

.

it. 87

a

it. 65

lit

it. 85

-2
5
-13
5
-5
17
32

14.72

,

19

ii.80

27

it.50 2/

„

ft. 65 2 /
14.80 2/

123
-15

2?

lt.9it
5.12
i4.92

ito
55
36

it.93

29

it.90

20

29

ll.toi/

-lit

Covers only 30-year f i r s t mortgage bonds, as reported in Moody's Bond Survey.
Except where indicated, the actual y i e l d figure and the amount above seasoned
yields are averages of offerings during the indicated period and of the d i f f e r ences between these new offering yields and y i e l d s on seasoned issues of
similar quality for the same day. Average maturity for the seasoned issues
varies from 26 to 28 years.
Provides f o r a 5-year period during which issue may not be called f o r refunding a t a lower coupon rate. Monthly averages so marked include one or more
issues with such a provision. Other issues have no such provision.




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