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Not for Publication! POLLED AFTER SIX MONTHS l i b r a e H, 141 SEP 29 September 28, 1964, «64 £ UANKM ELOPMENTS IN.THE UNITED STATES Review of Sources and Uses of Funds of Financial Intermediaries in July) Corporate and municipal bond markets* The total volume of public security financing this week ($202 million) will be appreciably smaller than last week's large supply ($344 million), with the drop taking place in municipal financing, Long-Term Public Security Offerings 1/ (In millions of dollars) Week Ending New Capital Refunding State and local govt. New Capital Refunding Sold: Sept, 18 Sept. 25 161 r/ 105 338 239 r/ Scheduled: Oct, 2 _1/ Federal Reserve estimates based on published reports of issues sold and scheduled for offering; corporate rights offerings are included as of the data subscription rights expire. r/ revised. Most of last week's corporate supply consisted of three medium size utility issues and this week's supply is similarly composed, but the calendar for October is currently light-Apparently reflecting this longer-run supply prospect,aggressive bidding for last week's issues caused a 6 basis point decline in average yields on new offerings of corporate bonds,erasing two-fifths of the yield advance experienced in the preceding four weeks. Yields on seasoned issues, meanwhile,* were generally steady. The $25 million Delaware Power and Light Company bonds were quickly distributed, but the other two utility issues, which were apparently priced more closely, were only about half sold at the end of the week. No other issues, however, were still bound by syndicate price restrictions. In the municipal market last week, the principal offering -a $130 million package of Public Housing Authority bonds -- was well receivedt This appears to have provided little or no stimulus to demand for other recently offered issues, however, and yields on seasoned bonds did not change. Dealers advertised inventories of unsold municipal bonds continued close to $700 million. H. 14 -2- Yields on U. S. Government securities. Yields on intermediate and long-term Governments eased last week, but rates on Treasury bills changed little. Yields in Securities Markets Level latest week (per cent) High-Grade Notes and Bonds Corporate New . Seasoned 4. 46 4.42 U> S, Govt. Long-term 3-5 year 4. 16 4* 02 State and local govt* 3»10 Money Market-" Federal Funds Treasury bills 3-month 6-month Finance Company Paper Change from preceding week (basis points) -1 -3 3,50 +5 3.54 3.70 3.75 +1 Mortgage yields and conventional mortgage rates. Secondary market yields on FHA-insured, 30-year, 5-1/4 per cent mortgages continued at the reduced level of 5.46 per cent which, with minor variation, has persisted since the spring of 1963. Contract interest rates for conventional first mortgages were also unchanged in August, at 5.80 per cent for new home loans and 5.85 per cent for loans on existing houses. The conventional mortgage rates as reported by the Federal Housing Administration are rounded to the nearest five basis points. Stock prices. Common stock prices, as measured by Standard and Poor's composite index of 500 stocks, advanced about one per cent last week to close at a new all-time high of 84.21 on September 25. Trading volume averaged 5.7 million shares, up 0.1 million shares from the average for the previous week. Financial intermediaries. The net inflow of savings during July at life insurance companies, savings and loan associations and mutual savings banks totaled $1.3 billion, a July record and two-fifths more than a year ago. All three types of institutions experienced larger savings flows than a year ago, with expansion in assets of life insurance companies and deposit growth at mutual savings banks showing the most improvement. (Time and savings deposits at commercial banks posted a $1.0 billion gain in July, one-fourth more than during July 1963.) -3- H. 14 Growth in life insurance company assets—excluding valuation changes—amounted to a record $1.0 billion in July, up one-fifth from that of a year earlier. Holdings of business securities rose $0.4 billion, the largest monthly gain in more than 10 years, but half of this increase was in holdings of short-term commercial and finance company paper. Net mortgage acquisitions continued large at $0.4 billion and exceeded the July 1963 total by one-fifth. The increase in combined holdings of cash and U.S. Government securities was about the same as a year earlier, and those of State and local government securities were slightly reduced. At savings and loan associations--which typically experience much larger gross withdrawals in July than in other months—there was little change in total savings capital this July compared with a small net loss a year earlier. Net mortgage acquisitions($1.0 billion) were slightly less than the year earlier figure and holdings of cash and Governments were reduced about one-fifth moie than I " year, but borrowings increased only nominally this year compared with a $0.3 billion rise in July 1963--apparently reflecting some success in the efforts of the Home Loan Bank Board to get them to curtail borrowings. Deposits at mutual savings banks went up $0.3 billion during July, a record for the month and more than twice the July 1963 gain. The increase in mortgage holdings ($0.4 billion) was also a July record and two-fifths larger than a year earlier. Holdings of municipals were cut back nominally compared with a moderate addition a year before, but the reduction in holdings of cash and Governments combined was only about one-half as large as last year. More detailed information concerning recent capital market developments is presented in the attached exhibits. Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve Board. EXHIBIT A. PQ LONG-TERM BOND YIELDS, H I G H - G R A D E I II I I I ,11 1—1—i—I Exhibit A - Part II Date Corporate S Aaa 1/ X U. S. Govt, long-term 2/ State and local government Aaa y Spread between U. S. Govt, and Corporate State and Aaa local_Aaa (per cent) 1959-60 - High 1961 - High Low 1962 - High Low 1963 - High Low 196U - High Low 4.61(3/29/60) 4.46(9/35) 4.21(3/17) U.U3(2/16) h.23(u/z$ U«37(12/27) 14.19(3/29) 4.42(9/25) 4.35(2/28) 4.42 (1/8/60) it.07 (12/29) 3.70(5/12) 4.12(2/23) 3.85 (12/28) U.16 (12/27) 3.87 'Vl8) 4.20(4/17) 4.11(7/3) 3.65 (9/24/59) 3.37 (7/6) 3.12 (2/23) 3.26 (1/4) 2.88 (11/8) 3.18 (13/21) 2.93 (3/28) 3.16(3/26) 3.07(7/16) .59 .57 •34 .47 .30 .35 .21 .29 .19 .92 .76 •46 1.04 .80 1.05 .88 1.09 1.01 August Sept. Sept. Sept. Sept. 4.41 4.42 4.42 4.42 4.42 V 4.14 4.16 4.17 4.17 / 4.16 / 3.08 3.08 3.08 3.10 / 3.10 y .27 .26 .25 .25 .26 1.06 1.08 1.09 1.07 1.06 28 4 11 18 25 £,/ f Preliminary. W e e k l y average of d a l l y figures* Average t e r m of "bonds Included Is 2 2 - 2 4 y e a r s . W e e k l y average of d a i l y figures. T h e series includes bonds due o r callable i n 1 0 years o r m o r e * 3/ T h u r s d a y figures. O n l y general obligation bonds are included| average t e r m is 20 years# N o t e . — H i g h s and loirs are f o r individual series. T o r spreads, h i g h refers series and m a y be on different dates f o r different to w i d e s t , and low to narrowest* ' No EXHIBIT B. f o i l I L O N G - T E R M B O N D YIELDS, L O W E R - G R A D E Exhibit B - Part II Corporate Baa 1/ Date State and local govt. Baa y Spread between Aaa and Baa State and Corporate local govt. (per cent) 1959-60 - High 1961 - High Low 1962 - High Low 1963 - High - Low 196U - High Low Aug. Sept. Sept. Sept. 'Sept. Note I 28 4 11 18 25 £/ 5.3$(2/W*o) 5.13(10/27) 5.00(4/21) 5.11(3/3) u. 92 (12/21) U.93(V4) U.83(u/35) 4.87(6/26) 4.81(9/25)' 4.82 4.83 4.82 4.82 4.81. T o r footnotes see Exhibit JU U.U6(3/7/60) 3.59(9/24) 3,51(4/16) ,8U .81 .66 •7U .63 .71 .U8 .48 .39 1.08 .93 .57 .82 .56 .63 .ilii .49 .36 3.54 3.54 3.56 3.59 3.59 .41 .41 .40 .40 .40 .46 .46 .48 .49 .49 1.16(3/23) 3.93(11/9) it. OU (3/11) 3.52(5/37) 3.63(6/27) 3.52(5/23) - S H O R T - A N D I N T E R M E D I A T E - T E R M INTEREST R A T E S , G O V E R N M E N T k ^\A __ 4-koHiH iii M 0 r k • i tie M/Y 1 , 1 V DISCOUNT -JuTTo;r 'l-MONTH HUf Market Yl.ldt L-LI I I 1 I J-LU 1 1 1 1 1 1 1 11 1111 11 1 1 1 1 1 1 1 I Exhibit C - Part II Date Discount rate / y 1959-60 - High 1961 - High Low 1962 - High Low 1963 - High Low 196U - High Low 3.50 3.50 Aug. Sept. Sept. Sept. Sept. 3.50 3.50 3.50 3.50 3.50 < 28 4 11 18 25 2/ lt.00 3.00 3.00 3.00 3.00 3.50 3.00 •' 3-month bills 2/ Yields 6-month , bills 2/ lt.59(Ve/60) L'W 2.97(7/13) 2.65(6/8) b W 2.35(4/28) 3.13(7/20) 2.71(6/8) 3-5 year issues 2/ Spread between yields on 3month bills and yields on 6-mo# bills|3-5 yr. issues 5.00(12/24/59) .79 3.15(5/12) .12 3.86(8/11) 3.88(2/2) 3.ia(lV28) 3.55(U/15) 3.68(12/6) U . 0 7 (l?/27) 2.88(3/15) 3.56(3/6) 3.43(7/17) 2.93 0/8) 3.74(3/6) 3.52(7/3) 3.UU(1/Ifl) 4.23(3/27) 3.98(8/7) 3.50 3.50 3.52 3.54 3.54- 3.62 3.64 3.67 3.69 1 3.70 4.00 4.03 4.04 L 4.05 '4.02 .21* 1.81 1.51 .92 .02 .17 .01* .21 .04 .12 .14 .15 .15 .16 .70 .L2 .71 .48 .50 :53 .52 .51 .48 consists of selected notes and bonds. Hota. Highs and laws are for individual series and nay be on different dates for different series. Tor spreads, high refers to widest, and loir to narrowest. 1 EXHIBIT 0. F o i l 1 S H O R T - A N D I N T E R M E D I A T E - TERM INTEREST RATES, BANKS AND OTHER PRIVATE B O R R O W E R S , Exhibit D Stock exchange Date call loan 1 / Prime - Part II F i n a n c e company- rate l / paper 2/ Federal funds 3/ Spread between 3 - m o . bills and finance co. paper iper c e n t ) 1959-60 5.5o 5.00 5.13(1/22/60) U . 0 0 (5/13/60) 1961 - High U.5o U.50 2 . 9 0 (11/37) •56 Low 1962 - High U.50 U.50 U.50 3.00(12/30) 2.50(8/5) •U3 (V27) 3 . 0 0 (12/28) .11 U.5o U.50 1963 - High U.50 U.5o U.5o 4.50 4.50 4.50 4.50 Low 196U - High Low Aug. U.50 U.50 • 3.25(7/21) 2.88(6/1) 3.88(12/27) 3 . 5 0 (12/27) 3.13(5/31) 2 . U 5 (7/26) 1 . 3 0 (3/26) 3.93(4/3) 3.50(9/25) 3.72(9/11) 3.14(7/24) 1.02 •U5 .19 .39 .12 .41 \ 20 28 4.50 4.50 3.78 Sept. 4 4.50 4.50 3.74 3.50 .24 Sept. 11 3.38 .20 18 4.50 4.50 3.72 Sept. 4.50 4.50 3.75 3.45 .21 Sept. 25 4.50 4.50 3.75 3.50 .21 £/ 1/ 3.50 .28 Weekly rate shown is that In effect at end of periqd. Stock Exchange call loan rate is going 'rate on oall lpans secured b y customers 1 stock exchange collateral at N e w 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 daily rates published b y finance companies f o r 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 t — H i g h s and lows are for individual series and nay be on different dates for different.series. F o r spreads, high refers to widest, and low to narrowest* STOCK MARKET 1 ons ol dollars 1 w 1 / / JL 1 S10CI HAIKU CtlDIT ^CHANCE IH SttlES Million* ol »h a i . « y U\W I 1 I I I I I l jlkU Exhibit E - Part II Stock price index 1/ Trading Common volume 3/ stock yields 2/ (millions (per cent) of shares) Stock market castome: credit Customers' Bank debit balloans to •others" 5/ ances k/ Total (In millions of dollars) 1961-62 - High Low 1963 - High 196U - High Low 72.011(12/8/61) ^2.68(6/2^62) 7U.W12/27J 84.21(9/25) 75.50(1/3) 2.80 3.96 3.01 2. 97 3.10 10.1 2.U 6.5 6.1 3.6 July Aug. Sept. 11 Sept. 18 Sept. 25 2/ 83.22 82.00 83.45 83.48 84.21 2.96 3.03 2.99 2.99 2.97 4.7 3.9 5.2 5.6 5.7 5, 602(12/61)1*, 259(12/61) 1,118(5/9/62) U,U2U(i/6i) 3,253(1/61) 1,161(3/8/61) 7,298(11/63)5,586(11/63) 1,738(12/25) 7,314(4) 7,096(8) 5,524(1) 5,187(8) 1,918(9/16) 1,720(1/22) 7,160 7,096 5,289 5,187 1,871 1,909 1,905 1,918 n. a. n.a. n.a* n.a. ' n . a . — N o t available. p 7 Preliminary. 1 / Standard and Poor's composite index of 500 common stocks, weekly closing prices, 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 stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve. Yields shown are for dates on which price index reached its high 3/ 4/ 5/ Averages of daily trading volume on the New York Stock Exchange. End of month figures for number firms of the New York Stock Exchange which carry margin accounts; excludes balances secured by U , S. Government obligations. Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying U . S. Government securities. Weekly reporting banks account for about 70 p e r cent of loans to others. For further detail see Bulletin. M O R T G A G E A N D B O N D YIELDS M l COIPPIAH IOWDS iXLLili^K>J » ; Exhibit F FHA m o r t g a g e s 2/ Conventional gages 2 5 - y e a r I 3 0 - v e a r -U 1956 1957 1958 1959-601961-64- Low High Low High High May June July August P a r t II Spread beAaa Corporate tween yields o n conv. & 2 5 - y e a r FHA mortgages 4.68 5.63 5.20 6.00 5.35 6.24 5.72 5.43 5.70 5.45 5.55 6.30 5.95 5.80 .47 .47 .15 .23 .38 .23 3.08 4.94 3.65 5.25 4.72 4.12 3.08 4.12 3.57 4.61 4.45 4.22 5.44 5.44 5.44 5.44 5.45 5.45 5.46 5.46 5.80 5.80 5.80 5.80 .36 .36 .36 .36 4.46 4.43 4.37 4.39 4.-41 4.41 4.40 4.41 „5/ Spread b e t w e e n y i e l d s o n new c o r p o r a t e b o n d s and 25-year Seasoned FHA m t e s . bonds .76 1.58 .94 1.03 .05 .73 .39 -.16 .98 1.01 1.07 L..05 .05 .02 -.03 -.02 .88 1.69 1.50 3/ Neither mortgage nor bond yields take into aooount aervioing oosta whioh are muoh higher for mortgages than bonds. Generally, bonds pay interest semi-annually; mortgages, monthly. Mortgage yields, if o colent t0 * semi-annual interest investrmnt, would be slightly higher than given in the bble " e q 1/ Based on ra^-field-offioe opinions about average bid prices in the private secondary nnrket for newhome mortgages for imnediate delivery. Separate data available for 25-year and—begining July 1 9 6 L — 30-year mortgages with minimum downpayments, "weighted by probable volume of transactions . Yields computed by IHA, assuming prepayment period at 12 years for 25-year mortgages and 15 years for 30-year mortgages. Over the period for ifcloh they can be compared, the movement of the two mortgage yield rates* **** similar. Dashed lines indicate periods of adjustment to changes in contractual interest 3/ Based on FHA field office opinion on typioal interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities. Beginning with April 1960, rate relates only to new-home mortgages; prior to that date, rate related to both new as mil as existing-home mortgages. Dashed line indicates this change in the series. See note for Exhibit G. Moody's Investor Service. Monthly averages of daily data. See Exhibit A . 4/ 2/ ' e x h i b i t o. f . n 1 'yields o n new anp seasoned c o r p o r a t e ' b o n d s ! .l .l.L-LL I j I I U U Exhibit 6 - Part II Yields on New Corporate Bond Issues Adjusted to an Aaa basis Number A m ' t o f Issues Average of Included (mil. yield of dollars) (per c e n t ) Monthly Number A m ' t of issues Average of included (mil. yield issues of dollars) (per c e n t ) averages: 26 1 9 6 4 - Jan." 150.0 4.50 Feb. 125.0 4.38 Mar. 166.0 4.43 Apr. 130.0 4.48 May 278.0 230.0 4.46 4.43 July 10 - High 4.53(5/8) 4.30(2/21) 12 80.0 4.41 1 30.0 4.37 17 24 2 30.0 4.37 7 14 1 15.0 4.39* 21 1 15.0 4.37 31 Aug. Meekly averages: 1964 2 3 Sept. 28 2 45.0 4.40 4 1 40.0 4.48* 11 1 40.0 4.48 60.0 4.45 18 1 60.0 4.52 35.0 4.44 25 3 69.0 4.46 4.41 Vi.Q. Hotel Averages of offering yields on el), new issuea of publioly offered corporate bonds rated Aaa, i i and A by Moody's Investors Servioe (except serial and convertible issues, offerings of natural gas pipeline 1 and foreign companies, and bonds guaranteed by the Federal Government) weighted by alae of offering. Before averaging, new offerings are adjusted to a composite Aaa basis ty deducting from the actual rooffaring yield tho excess of the weekly average yield for seasoned tends of the appropriate industryquality group over the conmosite average for seasoned Aaa-rated bonds (Moody's), Averages considered unrepresentative because or special character! atioa of the offerings included are denoted by a n asterisk^ l( H. 14 Exhibit H Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) I quarter quarter quarter quarter 1st half Three quarters Year 549 860 819 State and Local 2/ 1963 944 771 809 732 746 976 £/ 1,215 £/ 665 £/ 878 869 866 930 873 912 786 e/ e/ e/ 680 708 449 612 544 427 £/ £/ 2/ 930 904 1 ,013 1 .153 771 1 ,132 797 550 900 676 637 795 573 773 557 1:,013 819 1,,415 819 678 ,064 1; 2,369 4,625 e/2,247 2,,351 2,,847 2,,109 3,,246 2,,228 3,,056 1 ,902 2,,561 £/ 2,525 - ' 2,454 2,665 £/ 2,658 1,837 e/ 2,550 2,197 6,994 e/9,251 5,,198 7,,307 10,,553 5,,284 7,,186 9,,747 £/ 5,283 e/ 7,833 £/ e/ e/ 1962 876 1,133 628 2,178 1,069 1,378 October November December 1st 2nd 3rd 4th 1964 613 594 1 ,144 April May July"" . August September oital 1962 930 685 754 January February March • 3 1964 Corporate 1963 900 750 900 1,051 729 416 5,118 6,955 9,151 650 578 .. 550 2,637 , , ? eZe 1,528 1,779 i. <; 5,208 f 6,790 ; 8,568 'r Excluding finance companies 3./ 1st 2nd 3rd 4th quarter quarter quarter quarter 1,996 e/2,047 2,,284 2,,529 • 1,768 2,,854 2,,169 2,,970 1,767 2,,330 9.236 9,,434 Year e/ Estimated by Federal Reserve. £/ Preliminary. 1/ Securities and Exchange Commission estimates of net proceeds. 2/ Investment Bankers Association of America estimates of principal amounts. 3/ Total new capital issues excluding offerings of sales and consumer finance companies. . Exhibit I H.14 New Corporate Security Issues, Type of Issue & Issuer (In millions of dollars) Quarter Month $ V. I r ^ P # 1962 - I II III IV 2,378 3,250 2,184 2,957 1963 - I II Ill 2,700 3,634 2,436 3,466 1,108 1,389 898 1,319 1,306 1,820 1,251 1,780 287 424 287 367 128 434 109 47 947 591 896 968 326 794 285 530 236 221 150 118 842 1,241 868 1,629 1964 - I ii i n 2,499 4,851 978 1,321 1,221 1,640 300 1,890 29 105 418 723 438 856 273 1,663 1,240 1,383 1963 - Jan. Feb. Mar. Apr. May 695 642 1,363 1,049 1,340 1,246 810 756 871 1,116 891 1,459 350 259 499 380 550 459 279 336 283 511 183 626 243 289 774 452 694 675 431 318 501 481 549 751 25 43 60 56 182 196 46 21 42 10 10 27 135 220 592 148 216 227 297 272 237 240 214 515 114 115 97 341 222 230 107 100 78 201 131 198 125 68 43 71 92 58 86 25 39 41 13 64 238 191 412 369 373 499 187 187 441 531 461 637 IV July Aug. Sept. Oct. Nov. Dec. • : Total Net proceeds for Gross proceeds for new new capital 1/ 2/ capital and refunding 1/ Common Memo: Bonds Other Public Communiand Foreign issuers Mfg. Utility cations Publicly Privately pfd. issues 1 ncl tided Offered Offered 717 456 430 655 68 507 716 1,155 794 231 983 996 257 639 1,222 1,389 659 275 601 375 56 307 1,024 853 986 1 568 769 300 179 1,568 1,089 .F 102 94 91 " 217 95 113 100 100 87 125 159 83 515 157 109 5 149 121' 338 526 1964 - Jan. 985 324 83 155 123 16 88 . 342 279 Feb. 710 400 34 174 146 8 91 353 361 Mar. 805 463 1,377 151 186 1,372 34 480 Apr. 383 2,234 395 27 441 206 36 148 470 537 May 1,155 525 258 264 332 35 370 623 468 June 1,461 393 23 207 173 16 224 434 234 892 July £./ 250 10 120 170 50 340 190 580 Aug. e/ Sept. ^/Preliminary. e/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 & other transportation, real estate & finance,& commercial & other. Source: Securities & Exchange Commission. . 1 V\ Exhibit J H.14 Other Security Offerings (In millions of dollars) long-term If 1964 January February March April May July August September October November December Jan. - Aug. e/ Foreign gove 1963 4 82 69 30 75 26 16 25 232 133 76 57 114 11 63 83 2 e/ 327 Year - r ~ m r \m 142 10 35 10 86 50 25 8 275 e/ 260 e/ 319 31 151 88 101 769 366 771 737 Feder ?96^£nCy 3/ 1962 148 246 156 186 461 459 150 175 174 200 e/ 854 793 1,013 1,167 1,188 New short-term 4/ State and local government 5/ Federal agency 3/ January February "" March April May June July August September October November December Jan. - Aug. e / 103 236 -407 442 81 -80 -13 n.a. Year 75 272 -367 589 -30 -10 62 208 -173 259 146 -339 18 466 -186 127 -84 -118 78 339 -406 71 234 -161 -78 -336 23 97 183 239 -333 R/-229 -106 -189 -482 292 195 319 414 327 258 123 -102 551 247 -156 226 -364 82 284 261 227 -157 379 55 -80 799 640 2/-434 770 807 692 378 1.600 1.004 from those in Exhibit H in that refunding issues, as well as new capital issues, are included. Long-term securities are defined as those maturing in more than one year. ^/Includes securities offered in the U.S. by foreign governments and'their political subdivisions and international organizations. Source: Securities & Exchange Commission. 3/ Issues not guaranteed by the U.S. Government. Source: Long-term, Securities & Exchange Commission; short-term* Treasury Dept. & Federal Reserve. 4/These data differ from those in Exhibit H and above in that they represent new offerings less retirements, whether froi the proceeds or refunding issues or from other funds. Data include only issues with original maturing of one year or less. 5/Principally tax and bond anticipation notes, warrants or certificates and Public Housing Authority notes. In some instances PHA notes included may have a somewhat longer maturity than 1 year. Source: Bond Buyer & Federal Reserve. i f. z Ci. 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) Total 1963 - Aug. Sept. Oct. Nov. Dec. il 1964 - Jan. Feb. Mar. Apr. May July Aug. 236 237 446 180 547 307 263 335 1,557 452 650 291 142 C o m o r ate Bonds (other than Convertible convertibles) bonds 218 > 215 380 117 515 225 200 296 235 415 390 178 125 60 35 51 --- Stocks State and local governments 18 22 66 63 32 22 28 38 1,271 37 260 113 2/ 20 329 135 734 373 111 577 358 282 698 274 384 544 459 17 Other 174 200 50 20 15 275 260 104 Large Individual Issues Offered September 1 through 25 Type 3/ Amount (millions of dollars) Maturity Coupon rate or net interest cost Offering vleld Rating Corporate / Wells Fargo Bank 'Consumers Power Co. '•! Western Bancorporation Public Service Elec. & Gas Co. ^Wisconsin Elec. Pwr. Co. *Wells Fargo Bank Conv, • Dela.Pur. & Lt. Co. Rochester Gas & Elec. Co. Georgia Pur. Co. Cap. notes S. F. deb. Com. Stk. 1st & ref. mtg. bds. Com. stk. Cap. notes Ist-mtg L coll. tr. bds. 1st mtg bds 1st mtg bds. State & Local Government Clark Co. Sch. Dist., Nev. Rev.-Rent Rev.-Rent Penna. Gen. State Auth. -- 50..0 40..0 50. 9 1989 1994 4-1/2 4-5/8 4.50 4.50 Aa 60. 0 30. 5 25. 3 1994 4-5/8 4.53 Aa 1989 3-1/4 3.75 25. 0 16. 0 28. 0 1994 1994 1994 4-5/8 4-5/8 4-5/8 4.50 4.48 4.53 15. 0 50.0 1966-84 1967-91 3.91 3.35 2 .70-3.90 2 .50-3.50 Aa Aa A Baa ~~ \v> K-2 Large individual Issues Offered September 1 through 25 (con't) Type 3/ State & Local Government-— Commonwealth of Mass. Dallas, Texas Chicago, Illinois State of New York Bay Area Rapid Transit Dist., Calif= Detroit, Michigan Marion Co. Health & Hosp. Corp. Ind. Los Angeles Dept. of Wtr= & Pwr., Calif. Tallahassee, Fla. Amount (millions of dollars) Coupon Maturity net interest cost Offering yield Rating G.O. G.O. Rev.-Ut. G.O. 75.8 12.5 15.0 30.0 1965-2002 1965-84 1969-88 1965-79 3.1T 3.11 3.41 2.87 2. 10-3.50 2.,10-3.20 4/ 2. 75-3.40 2. 10-2.95 Aa Aa A Rev.-Q.-Ut. G.O. 60.0 10.0 1972-99 1965-89 3.46 3.30 2.85-3.55 5/ 6/ Aa Baa G.O. 16.0 1966-85 3.09 2. 20-3.15 1965-94 1968-92 1966-87 2004 1972-98 1965-84 1965-2005 1966-2004 3.35 3.47 3.40 3.78 3.04 3.35 3.54 2. 15-3.50 2.80-3.70 2.60-3.60 7/ 3. 78 2. 95-3.70 2. 05-3.13 2. 05-3.50 2. 40-3.63 8/ 1984 5-1/2 Rev.-Ut. Rev.-Ut. Metro. S e a t t l e W a s h . State of Connecticut Public Housing Auth. Iowa State Bd. of Regents Rev.-Rent Other City of Oslo, Norway Bonds Rev.-Ut. G.O. -- 24.0 10.0 2.0 9.3 5.7 44.0 130.3 15.0 15.0 2/ Aa Baa •' Aa ' Aaa f Aaa — f f Rights offering, n.a. --Not available. % Includes corporate and other security offerings of $15 million and over; State and local government security offerings of $10 million and over. 2/ Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal agencies. 3/ In the case of State and local government securities, G.O. denotes general obligations, Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by revenue from quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by least payments. 4/ 1/10 per cent bonds due 1984 reoffered to yield 4.00 per cent. 5/ Bonds maturing 1999 not publicly reoffered. _ 6/ Not publicly reoffered. ; 7/ 1/10 per cent bonds due 1990-92 & 1986-87 reoffered to yield 4.25 per cent. 8/ Bonds maturing 2003-04 not publicly reoffered. I 9/- Reoffered to yield 4.89 per cent to U. S. investors and 5.60 per cent to other investors 1/ . '7 H. 14 Exhibit L Forthcoming Large Long-term Public Security Offering for New Capital (Other than U.S. Treasury) 1/ Expected Proceeds from Forthcoming Large Issues (In millions of dollars) During month following date shown State and Other 2/ Corporate local govt. 1963 - Aug. Sept. Oct. Nov. Dec. TI964 - Jan. Feb. Mar. Apr. F: May July Aug. 31 30 31 29 31 31 28 31 30 28 30 31 31 1 210 561 255 137 469 316 454 669 345 341 539 120 511 158 240 145 392 305 155 224 1,587 651 600 292 92 402 Corporate 25 15 ---- 15 183 240 145 1,992 1,905 1,771 1,649 1,837 844 668 307 167 442 Subsequent to date shown State and local govt. 468 757 401 349 731 667 646 953 575 598 716 588 680 Other 2/ 25 15 -- 15 Forthcoming Large Offerings as of September 25 Issuer Type Amount (millions of dollars) Approximate date of offering Corporate Pacific Pwr. & Lt. Co. Pennsylvania Elec. Co. Columbia Gas System Inc. Texas Eastern Trans. Corp. Southern New Eng. Tel. Co. *Southern Calif. Edison Co; *Jersey Central Pwr. & Lt. Co. 1st mtg. bds. 1st mtg. bds. Deb. 1st mtg. p.1. bds. Com. stk. Com. stk. 1st mtg. bds. 30..0 20,.0 40.,0 . 50. .0 24.,7 53.,4 18.,0 Sept. Sept. Oct. Oct. Oct. Oct. Oct. 29 30 2 7 9 (rts. ex.) 13 21 State and Local Government New York State Dorm. Auth. New Haven, Conn. *West Va. Bd. of Educ. Mass. Port Auth. Georgia State Sch. Bldg. Auth. *Aurora, Colo. Los Angeles Fid. Contl., Dist. Rev.-Rent. G.O. Rev.-Rent. Rev.-Q.-Ut. Rev.-Rent. G.O. Rev.-Q.-Ut. 11..9 11..2 10.0 43..0 30.0 10.,0 15, 0 Sept. 29 Sept. 29 Sept. 29 Oct. Oct. 5 Oct. 5 6 Oct. Vb L-2 Forthcoming Large Offerings as of September 25 (cont'd) 1 Issuer Type Amount (millions of dollars) Approximate date of offering State and Local Government (cont'd) Detroit, Mich. State of Vermont *Fort Lauderdale, Fla. "Santa Clara, Calif. *State of Calif. Penna. Gen. State Auth. *State of Hawaii *Phoenix, Ariz. ^Baltimore Co., Md. Pittsburgh, Pa. Dade County, Fla. Va. State Highway Auth. Forth Worth, Texas Rev.-Ut. G.O. Rev. - St.... G.O. G.O. Rev.-Rent. G.O. G.O. G.O. G.O. G.O. Rev.-Q.-Ut. G.O. 39.0 10.8 10.7 10.0 100.0 21.4 15.0 10.0 11.5 35.0 46.0 31.0 14.1 Oct. 6 Oct. 6 Oct. 6 Oct. 6 Oct. 7 Oct. 14 Oct. 15 Oct. 20 Oct. 21 Indefinite Indefinite Indefinite Indefinite Other None ^--Included in Table for first time. 1/ Includes corporate and other issues of $15 million and over; State and local government issues of $10 million and over. 2/ Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues for Federal agencies. N o t e - D e l e t i o n s for reasons other than sale of issue: None. 11 H. 14 Exhibit M Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Bale bate Amount (millions of dollars) Public Offerings Issuer and Description of Issue A. Sold July 1 through September 25 City of Oslo, Norway--5-l/2 per cent bonds maturing 1984, rcoffered to yields 4.89 per ccnt to investors in the U. S. and 5.60 per cent to other investors. B. Prospective Offerings 10 H-2 Part II: Private Placement--Reported July 1 through Sept. 25 Date reported Amount (millions of dollars) 7/8 45.0 International Minerals and Chemicals Corp. (Canada) Ltd.—notes, maturing 1982--no information available on takedown. 8/6 15.0 Macleod Stedman Ltd.--sinking fund debenture, maturing 1984--no information available on takedown. 8/6 17.5 Government of Trinidad and Tobago--serial bonds, maturing through 1979--no information available on takedown. 9/3 6.5 Note: Issuer and Description of Issue Urbanizaciones Guacara C.A.--5-1/4% prom, notes, maturing 1984--no information available on takedowns. For retrospective data on aggregate foreign corporate and government security offerings in the United States see Exhibits I and J. There is no simple relationship between the data shown in this Exhibit and that shown in Exhibits I and J because the latter includes privately placed securities in the period in which funds are actually takendown but only in the amount of takedown, while the placements shown in this exhibit are included when reported, frequently with little or no information concerning timing of takedowns. Full or partial takedowns may take place both prior and subsequent to the data a placement is reported. ^--Included in table for first time. g f ; | ; ' Exhibit N Sources and Uses of Funds by Life Insurance Companies Cash Value of assets at end of period: " 1960 - Dec. 1961 - Dec. 1962 - Dec. 1963 - Dec. 1964 - July Changes: 1962 - July Au g. Sept. 3 Oct. % Nov. # Dec. it 1963 - Jan. # Feb. C? Mar. Apr. May June July r/ -t Aug. Sept. Oct. Nov. Dec. Uses of Funds 1/ Business U.S. State and Securities 2/ Govt. local MortSecuri- Bonds & Short-term Govt. gages ties securities Stocks (In millio:ns of dollars) 1,329 1,392 1,456 1,442 1,249 6,428 6,135 6,171 5,755 5,758 58 -24 42 12 35 120 121 -21 -48 28 36 -224 132 206 182 136 135 402 -134 -17 -75 -13 29 0 22 -10 87 6 -21 119 133 -71 -211 -19 -163 -94 90 -33 14 -45 -42 -32 58 143 233 141 367 219 199 106 186 225 274 391 48,631 51,362 53,468 55,997 v 57,536 , 295 193 ; 348 381 520 Total Mftnio* sources Total ! ExcL ValOther uation Change 3/ 3,606 3,902 4,037 3,876 3,809 41.,815 44,250 46,957 50,543 52,832 17,,472 19,582 20,854 22,909 •24,11/8 119,576 126,816 133,291 140,903 145,823 72 31 20 69 -40 -325 11 25 12 -21 -17 -9 139 237 178 296 332 605 148 149 87 159 290 138 681 603 473 679 771 707 634 531 484 717 666 571 190 50 13 84 -143 -51 97 88 -56 64 109 -411 31 -9 -18 -27 -42 -20 -1 -19 -43 1 -4 -13 215 139 270 285 247 254 305 299 269 303 277 730 360 236 256 17S 321 160 27 260 -54 242 4 -88 842 471 468 629 616 468 739 691 403 846 597 696 778 418 371 .591 530 451 802 561 551 653 605 704 114,925 121,270 127,796 134,805 139,225 • g/1964 - Jan. -159 27 270 261 -17 285 296 963 774 -15 Feb. 23 131 -68 -2 298 298 665 518 Mar. 8 -74 233 -94 -8 315 156 536 440 -108 ^ Apr-42 191 -26 ,365 4 609 225 526 12 42 il May 232 -44 -26 311 109 636 608 -101 292 78 -84 June -5 349 120 652 584 -9 125 199 185 July -13 366 5 859 970 Aug. Sept. 1/ Uses of funds represent net changes in assets and therefore reflect net, rather than gross uses. 2./ Includes securities of domestic corporations only/ 3/ Excludes changes in miscellaneous assets (one portion of the "other" in this table) which includes most, but not all, valuation changes, as well as changes in a few other items. Source.--Institute of Life Insurance. r/ Revised. Exhibit 0 H. 14 Sources and Uses of Funds by Savings and Loan Associations Sources of fuiids « 1 / Cash Value of assets at end of period: 1960 - Dec. 1961 - Dec. 1962 - Dec. 1963 Dec. 1964 - July Changes: 1962 - July Aug. Sept. Oct. Nov. Dec. 1963 - Jan. Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. 1964 - Jan. Feb. Mar. Apr. May June July Aug. Sept. U. S.Govt. Mortsecur- gages ities Total Other assets sources Net change savings capital | Borrowing 2/ Other ; fin millions of dollars) 2,680 3,315 3,926 3,964 3,333 4,595 5,211 5,563 6,440 6,670 60,070 68,834 78,770 90,849 97,131 4,131 4,775 5,346 6,178 6,489 71,476 82,135 93,605 107,431 113,623 62,142 70,885 80,236 91,205 96,594 2,197 2,856 3,629 5,011 4,991 7,137 8,394 9,740 11,215 12,038 -384 -37 82 93 100 696 46 -8 42 35 46 -6 880 1,003 &29 944 790 798 -178 100 83 40 164 -99 364 1,058 1,036 1,112 1,100 1,389 25 635 857 815 857 1,655 89 91 96 36 -23 457 250 332 83 261 266 -723 -333 106 90 -139 -37 237 -449 -48 30 67 32 482 188 172 177 35 -24 90 70 -38 112 74 129 -108 671 696 905 1,061 1,178 1,244 1,103 1,208 1,097 1,118 806 992 108 46 117 92 394 -29 -150 151 38 82 175 24 418 1,020 1,289 1,049 1,511 1,542 1,574 1,273 1,277 1,341 1,142 1,390 985 844 1,195 478 969 1,642 -36 643 916 795 804 1,734 -737 -195 -96 124 115 594 254 224 296 197 59 547 170 371 190 447 427 -694 356 406 65 349 279 -891 -396 33 12 -146 37 291 -462 158 64 71 -16 -5 -27 -15 604 710 906 909 993 1,096 1,064 -189 109 135 120 385 -10 -239 177 916 1,124 867 1,410 1,350 348 : 464 754 1,102 321 982 r/ 1,765 1 -421 -213 -54 278 -57 436 11 134 375 76 268 485 -850 335 • f % % I 1 1/ 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 bonds, presumed to be small, are not available. 2/ Advances from Home Loan Banks and other borrowing. Source:---FSLIC. •L> Exhibit P Sources and Uses of Funds by Mutual Savings Banks Uses o E funds 1/ State and Business local govt. Mortsecurgages ities £J ities U.S. Govt. Cash securities k /; ; ; « f A f*V % . W } , 1 ; Value of assets at end of period: 1960 - Dec. 1961 - Dec. 1962 - Dec. 1963 - Dec. 1964 - July Changes: 1962 - July Aug. Sept. Oct. Nov. Dec. •5Other Total Sources 3f funds sources Net change Other uses in deposits (In millions of dollars) 874 937 956 912 863 6,243 6,160 6,107 5,863 6,025 5,076 5,040 5,177 5,074 5,142 672 677 527 440 409 26,702 28,902 32,056 36,007 38,407 1,005 1,115 1,297 1,406 1,572 -46 -29 44 15 -35 124 ,-11 26 3 -162 -19 -26 66 14 2 3 27 -4 -5 -9 5 -15 -6 -15 290 312 243 305 272 236 -10 53 28 -32 36 28 285 367 315 114 274 345 172 215 429 186 147 545 113 152 -114 -72 127 -200 4 -11 -9 -72 -5 19 14 25 43 -22 -75 ' 1 -15 -11 -26 -5 -8 -3 -3 436 320 313 327 357 354 314 300 274 369 321 353 13 -6 49 -58 52 -11 11 71 37 -42 38 -34 330 375 610 -111 392 306 254 344 329 97 259 390 229 215 526 11 232 422 137 174 430 198 118 578 101 160 84 122 160 -119 118 171 -102 101 141 -188 345 283 298 334 333 370 436 93 5 25 -64 75 6 25 477 435 327 135 433 391 416 400 260 495 90 272 500 294 77 175 -69 47 161 -109 122 1963 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct; Nov. Dec. -137 51 21 -61 22 37 -63 -18 38 -28 -8 101 39 31 260 -241 -25 13 -19 -34 -61 -177 -14 -22 1964 - Jan. Feb. Mar. Apr. May r/ June July Aug. Sept. 64 32 6 -68 28 59 -43 88 82 84 -53 -12 -28 1 15 47 16 -13 12 -5 -3 -2 -3 -2 -8 • -13 -3 -1 -4 -10 40,571 36,343 42,829 38,277 46,121 '41,336 49,702 J14,606 52,417 .46,918 <1,228 i1,552 4,785 5,096 5,499 - 1/ Uses of funds represent net changes in assets and therefore reflect net, rather than gross uses. ~~ 2/ Includes Canadian government and political subdivisions, International Bank for Reconstruction and Development, nonguaranteed Federal agency and other bonds as well as corporate bonds and stock. Source: -NAMSB
@FedFRASER