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N o t for Publication DECONTROLLED AFTER SIX MONTHS September 3 0 , 1963. LIBRARY ",5S3 (Including Sources and U s e s of Funds of Financial Intermediaries) Public security financing to o b t a i n new capital w a s in m o d erately large v o l u m e last w e e k , as two large corporate issues (including an expiring rights o f f e r ) w i t h gross proceeds of $122 m i l l i o n and a $22 m i l l i o n S t a t e and local government bond issue w e r e sold. This w e e k , ending O c t o b e r ^ ^ n o large c o r p o r a t e issues for new capital are scheduled for offering b u t two State and local issues w i t h p a r v a l u e of $72 m i l l i o n are definitely on the calendar and a $ 1 8 4 m i l l i o n issue of D o u g l a s County Public U t i l i t y D i s t r i c t # 1 , W a s h i n g t o n m a y b e sold by negotiation. In addition, two corporate issues w i l l b e offered to refund outstanding securities--an $18.5 m i l l i o n issue o f N e w J e r s e y Central Power and L i g h t Company and $15 m i l l i o n o f W i s c o n s i n Public Service C o r p o r a t i o n bonds. Bond yields. Changes in y i e l d s on seasoned long-term bonds w e r e mixed b u t m i n o r last w e e k . Y i e l d s on Aaa-rated State and local government bonds rose two b a s i s points to 3.15 per cent, their highest level since early A u g u s t 1962, and yields on Baa-rated m u n i c i p a l s increased a b a s i s point to 3.59 p e r cent. U. S. G o v e r n m e n t bond y i e l d s , h o w e v e r , eased off a b a s i s p o i n t to 4 . 0 4 p e r cent. C o r p o r a t e bond y i e l d s w e r e stable. Y i e l d s on new corporate b o n d s , adjusted to an Aaa b a s i s , averaged 4 . 3 4 p e r cent last w e e k , the same as the previous w e e k . Short- and intermediate-term interest rates. Rates on 3 - m o n t h Treasury b i l l s fell three b a s i s points last w e e k , w h i l e those o n 6 - m o n t h bills w e r e unchanged. Y i e l d s on 3 - 5 y e a r U. S. Government obligations declined a b a s i s p o i n t , and the average e f f e c t i v e Federal funds rate edged off two b a s i s p o i n t s to 3.48 p e r cent. O t h e r rates did n o t change. M o r t g a g e recordings. Seasonally adjusted n o n f a r m m o r t g a g e recordings of $20,000 or less rose 2 p e r cent further in J u n e , the latest m o n t h available on a three-month m o v i n g average basis. R e c o r d i n g s in this category h a v e m o v e d to successive new highs since M a r c h , and the annual rate of $37.5 b i l l i o n in J u n e w a s 8 p e r cent h i g h e r than a y e a r earlier w h e n they w e r e also advancing. On an unadjusted b a s i s , G o v e r n m e n t - u n d e r w r i t t e n m o r t g a g e s accounted for 22 p e r cent of total recordings in J u l y , compared w i t h 20 per cent in June. T h e increased p r o p o r t i o n reflected m a i n l y seasonal influences, b u t it w a s h i g h e r than the J u l y share in o t h e r recent years. -2- H. 14 The average size of mortgage recorded in July was $9,592. As in June, this was 13 per cent higher than the average in 1959. Stock prices. Common stock prices dropped off rather sharply in active trading last week. Prices, as measured by Standard and Poor's composite index of 500 common stocks, fell more than one and one-half per cent from their peak to close at 72.13 on September 27. This was the first Friday-to-Friday decline since mid-July. Institutional investors. The net inflow of savings in July at three major types of financial intermediaries--life insurance companies, ' savings and loan associations and mutual savings banks--was seasonally ^ light at $1.1 billion, but this was 2 4 per cent greater than a year earlier. Savings capital at savings and loan associations declined slightly in contrast to a nominal rise in July 1962 and deposits at mutual savings banks expanded less than last year. Assets of life insurance companies, however, posted a substantially larger rise this July than last, more than offsetting the smaller growth at the other two types of institutions, but this was attributable primarily to a valuation gain. (Time and savings deposits at commercial banks increased $0.7 billion in July, over twice that of a year earlier.) Assets of life insurance companies rose $1.0 billion in July, 43 per cent more than a year earlier primarily because of substantially larger appreciation in the market value of their common stock holdings (included in other assets) this July than in 1962. Holdings of domestic business securities rose $0.3 billion, almost three-tenths larger than the year earlier gain, with net acquisitions of both long-term bonds and stocks ($0.2 billion) and short-term commercial and finance company paper ($0»1 billion) m o r e than in July 1962. Mortgage acquisitions, at $0.2 billion, were up four-fifths over their year earlier total, but holdings of cash and U. S. Government securities increased only $140 million, onefifth less than last year. Holdings of State and local government bonds jjere reduced $27 million in July, whereas they had risen slightly a year Savings capital at savings and loan associations dropped $36 million in July, compared with a $14 million increase last year. (Savings capital usually posts appreciably smaller gains in July because of heavy withdrawals after the crediting of quarterly dividends.) Mortgage lending by these associations, however, continued to be very large and net mortgage acquisitions, at $1.1 billion, were in record volume for the month, and one-fourth greater^ than in the similar period last year. To make this possible, these associations reduced their holdings of cash and U. S. - Governments $0.4 billion, one-tenth more than last year, and increased their borrowing $0.3 billion, three times the increase in July 1962. H. 14 Deposits at mutual savings banks increased $0.1 billion in July, one-fifth below their gain in the corresponding month of last^year, because of a larger rise in withdrawals than in deposits. Acquisition of mortgages amounted to $0.3 billion, a record for July and up onetwelfth from last year. The increase in holdings of business and miscellaneous securities of $14 million, however, was down four-fifths from a year before, and the reduction in holdings of cash and U. S. Government securities ($0.1 billion) was two-fifths larger than in July 1962. M o r e detailed information concerning recent capital market developments is presented in the attached exhibits. Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. z EXHIBIT A, P o r t I h L O N O - T I R M B O N D YIELDS, H I O H - O R A D 1 C O I P O I A l i Ai« > U I I I I I I I I I I I I I I I I I I I I I I I I I I I IJ.J.LL I I,II I I J mo r mTI E x h i b i t A - Part II Date Corporate A a a 1/ U . 8. Govt, long-term 2/ S t a t e and local government A a a 3/ Spread between P. S. G o v t . Corporate Aaa S t a t e and local A a a .22 .59 .19 .57 .34 .92 .46 (per c e n t ) 3.55 4.61 4.21 4.46 (5/2) (3/29/60) (3/17/61) (9/15) 1958 - Low 1959-60 - High 1960-61 Low 1961 - High 1962 - Low 1963 - Hiih Low K i m 4.19 (3/29) i 8 o ! « 3 . 8 7 (1/18) 2.93 (3/28) •h% .21 Aug. 30 Sept. 6 Sept. 13 Sept. 20 S e p t . 27 2.1 4.29 4.30 4.31 4.32 4.32/" 3.99 4.03 4.05 4.05 4.04 3.09 3.12 3.12 3.13 3.15 .30 .27 .26 .27 .28 3.07 4.42 3.70 4.07 (4/23) ( 3/8/60) (5/12/61) (32/29) 2.64 3;65 2.99 3.37 (5/1) (9/24/59) (9/3/60) (7/6) .76 i M .89 .90 .91 .93 .92 .89 W Preliminary. y Weekly average of daily figures. Average term of tends included ii 22-24 years* y Weekly average of daily figures. The series includes bonds due or callable in 10 years or no re. 3/ Thursday figures. Only general obligation bonds are included; average term is 20 years. note.—High a and lows are for individual series snd may be on different dates far different series. For spreads, high refers to widest, and loir to narrowest* LONG-TERM BOND YIELDS, L O W E R - G R A D E COIPQRATt li S1ATI AND LOCAL GOVUNMINT lie U-UvLLLLLLU m i n i 111111111 LLI I I I I II I I LUAJ;j.o 11111 mil E x h i b i t B - P a r t II Date Corporate B a a 1/ S t a t e and local govt. B a a 3/ Spread b e t w e e n A a a and B a a 1 S t a t e and Corporate | local govt. (per c e n t ) 1958 - Low 1959-60 - High 1960-61 L o w 1961 - H i g h 1962 - Low 1963 - H i g h Low Aug. 3 0 Sept. 6 S e p t . 13 Sept. 2 0 S e p t . 2 7 2./ Notei 4.51 5.36 4.98 5.13 4.92 4.93 4.83 (7/11) (2/12/60) (9/9/60) (10/27) (1^21) (1/4) (8/30) 4.83 4.84 4.84 4.84 4.84/ For footnotes see Exhibit A, 3.64 4.46 3>93 4.16 (5/1) (3/7/60) (13/9/61) (3/23) 3*. 63 ( ( 6 / B ) 3 . 5 2 (5/23) .77 .84 .66 .81 .63 .71 .52 3.58 3.58 3.58 3.58 3.59 .54 .54 .53 .52 .52 .93 1.08 .57 .93 '.63 .44 .49 .46 .46 .45 .44 S H O R T - A N D INTERMEDIATE- T E R M INTEREST RATES, G O V E R N M E N T 1 • 5 m i ISSUES MONTH tllLS 11S9 Date Discount rate 1/ 3-month b i l l s 2/ mo _ 1961 Bxfilhit C ^ P a r t I X Yields 6-month b i l l s 2/ 3-5 year isBuea 2/ Mil 1113 " ' Spread b e t w e e n y i e l d s o n 3 * m o n t h b i l l s and Y i e l d s o n 6 - m o . b i l l s 1 3 - 5 vr. issues (per cent) 1958 - L o w 1959-60 High 1960-61 Low 1961-62 H i g h 1962 - Low 1963 - H i g h Low 1.75 4.00 3.003.00 3.00 2.97 (7/13/62) 2.65 (6/8) 3.50 3.00 Aug, 3 0 Sept. 6 Sept. 13 Sept. 2 0 Sept. 2 7 b / 3.50 3.50 3.50 3.50 3.50 .58 (5/29) 3 . 0 2 (12/26) 2 . 1 4 (6/6) 4.59 (1/8/60) 5 . 0 7 (3/8/60)5.00 (14/24/59) 2.11 (10/28/60) 2.35 (4/28/61)3.15 (5/12/61) 3.13 (7/20/62)3.88 (2/2/62) 2 . 7 4 (6/8) 3.41 (12/2B) .26 .79 .12 .44 .02 .04 1.81 .38 1.51 .52 3.41 (9/20) 2.88 (3/15) 3.51 (9/27) 3.89 (9/20) 2.93 (3/8) 3 . 4 4 (1/18) il7 .04 .70 .46 3.39 3.36 3.36 3.41 3.38/ 3.49 3.47 3.48 3.51 3.51 .10 .11 .12 ilO .13 .46 .52 ;52 .48 .50 17 2/ 3.85 3.88 3.88 3.89 3.88 Weekly r*$o at pirn it that in effect at and of period at the federal Reserve Bank of New Yorlc. Maztot yield* weekly average# oonputed from daily olosing bid prices. Series of 3-5 year issues consists ef selected notes and bonda, Note.—tiigfcs fpd tow are for individual series and may be on different dates for different series. For agreed*# high refers to widest, and low to narrowest. S H O R T - A N D I N T E R M E D I A T E - TERM I N T E R E S T R A T E S , B A N K S A N D OTHER PRIVATE B O R R O W E R S E x h i b i t D - Part II Date Stock Exchange call loan ,1/ Prime / rate 1/ Finance c o m p a n y p a p e r 2/ Federal funds 3/ Spread b e t w e e n 3 - m o . bills and finance co. paper (per c e n t ) 1958 - Low 1959-60 - High 1960-61 Low 1961-62 - High 1962 - Low 1963 - H i g h Aug. 3 0 Sept. 6 Sept. 13 Sept. 2 0 Sept. 27 £./ 3.50 5.50 450 4.50 4.50 4.50 4.50 3.50 5.00 4.50 4.50 4.50 4.50 4.50 1.13 5.13 2.50 3.25 2.88 3.63 3.13 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 3.63 3.63 3.63 3.63 3.63 (8/8) (1/22/60) (8/5/61) (7/20/62) (6/1) (9/27) (5/31) .13 4.00 .43 3-00 1.30 3.50 2.45 3.48 3.50 3.50 3.50 3.48 (5/29) (5/13/60) (1/27/61) (12/26/62) (3/26) (9/20) (7/26) -.35 1.02 .11 .56 •19 .36 .09 .24 .27 .27 .22 .25 \jrfeekly rate shown la that in effect at end of period.Stock Exchange call loan rate in going rate on call loans secured by customers' stock exchange collateral at New York City banks.. Prime rate is that charged by large banks on short-term loans to hiainesa borrowers of the highest credit standing. > 2/ Average of daily rates published by finance companies for directly placed paper for vaiying 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. Note.—Highs and lows are for-lrdividual series and may be on different dates for different series. For spreads, high refers to widest, and low to narrowest. STOCK MARKET - STOCI • A l K i T CREDIT . C H A N G E IN SERIES. E x h i b i t E - P a r t II Date 1961-62 - H i g h Low Stock price index 1/ 72.04(12/6/61) 52.68(6/23/62) 1963 - H i g h Low 7 3 . 3 0 (9/20) 6 4 . 1 0 (3/1) July August Sept. 13 Sept. 20 S e p t . 27 b / 69.07 70.98 73.17 73.30 72.13 % For further detail see Bulletin* S t o c k m a r k e t customer credit Trading Common . Bank Customers7 v o l u m e 3/ stock loans to debit b a l Total (millions yields 2/ " o t h e r s " 5/ ances 4/ of s h a r e s ) (per c e n t ) (In m i l l i o n s of d o l l a r s ) 2.82 5 , 6 0 2 ( 1 2 / 6 1 ) 4 , 2 5 9 (12^61)1,377(6/30/61) 4,876(7/62) 3 , 5 6 2 (7/62) 1,269(9/26/62) 3.96 10.1 2.4 3.04 3.36 6.1 3.2 6,660(8/63)5,034(8/63) 1,656(9/18) 5,595(1/63)4,208(1/63) 1,378(2/23) 3.20 3.5 4.2 5.6 4.8 5.3 6,511 3.13 3.04 3.04 3.08 6,660 4,895 5,034 1,616 1,626 1,630 1,656 *i=b M O R T G A G E RECORDINGS A N D LOANS 2 7 JV B l l l l o m ol d oil q A - j - A ^ \ \ \ J v I^ 1 V/ Seasonally .Adjusted av ?- 1.5 I " 1 E x h i b i t F - P a r t II Total Date Seasonally adjusted 2/ Unadjusted FHA VA Unadlusted A v e r a g e size of recordings (1959 = 1 0 0 ) 3/ Other (Millions of d o l l a r s ) 1962 - J u l y Aug. Sept. Oct. Nov. Dec. 1963 - Jan. Feb. Mar. Apr. May July 2,973 2,933 2,929 2,925 2,939 2,916 2,876 2,869 2,907 2,986 3,066 3,121 3,134 3,333 2,861 3,208 2,883 2,682 2,658 2,424 2,751 3,065 3,233 3,177 3,515 433 465 431 546 492 429 504 400 416 392 415 419 511 219 247 231 285 254 236 254 202 219 245 260 226 265 2,483 2,621 2,199 2,376 2,137 2,017 1,900 1,822 2,116 2,428 2,558 2,532 2,738 109.4 109.7 109.3 109.6 109.7 110.2 109.8 108.7 110.4 110.6 111.7 112.8 112.6 n.a.—Not available. 1/ Total recordings data are estimates based on reports from about 450 areas and include mortgages of $20,000 or less secured by nonfarm real estate, primarily residential properties. FHA-insured loans represent gross amount of insurance written, and VAguaranteed loans the gross amount of loans closed, on 1-4 family bouses. Other recordings data are derived as a residual, although total recordings and VA and FHA loans are not strictly conparable in concept or timing. 2/ Three-month moving average, seasonally adjusted by Federal Reserve. 1/ This index relates the average size of mortgage recordings for each month (total dollar recordings divided by number of mortgage recordings) to the average size during 1959. Source.—Federal Home Loan Bank Board, Federal Housing Administration and Veterans Administration. EXHIBIT G. Pa.I I YIELDS O N N E W A N D S E A S O N E D C O R P O R A T E B O N D S SEASONED A Exhibit 6 - Part II Y i e l d s cm N e w C o r p o r a t e B o n d lasuea A d j u s t e d to a n A a a b a s i s N u m b e r Ain't o f issues A v e r a g e yield included (mil. of (per c e n t ! of dollars) Issues N u m b e r Ain't o f issues A v e r a g e yield included (mil. of (per c e n t ) of dollars) issues W e e k l y averages; - Apr,.• 5 12 19 26 May 2 1 3 3 3 10 1 2 17 24 31 1 3 7 14 21 . 1 , 3 2 2 * 45.0 6.0 95.0 128.0 4.23 4.18 4.28 4.30 25.0 266.0 : 30.0 76.0 4.22 4.31* 4.27 4.27 50.0 34.0 115.0 46.5 4.23* 4.25 4.24 4.25 July 5 12 19 26 Aug. 2 9 16 23 30 -2 1 3 1 2 2 80.0 25.0 58.0 70.0 75.0 50.0 — 4.30* 4.43* 4.31 4.28 4.27 4.33* Sept. 6 1 12.0 4.35 13 20 27 1 1 15.0 100.0 4.34 4.34 WSB1I8HSL 28 H..14 Exhibit H Long-term Corporate and State .and Local Government Security Offerings and Placements (In millions of dollars) Corporate 1963 _ 1/ 1963 1961 X 867 855 939 873 912 786 722 640 1 ,034 577 675 450 612 544 427 486 604 734 650 578 550 679 789 610 £/2,431 £/2,661 e/1,702 2 ,637 2 ,571 1 ,582 1 ,779 2 ,165 2 ,396 1 ,824 2 :,078 £/5,092 e/6,794 5 ,208 6 ,790 8/568 4 ,561 6 ,385 8:,463 592 859 807 580 667 562 April May 930 904 1,013 1,113 760 1,132 2,118 1,259 1,318 £/ £/ £/ 70(2 675 750 582 749 579 1,028 762 647 £/ e/ e/ 835 703 1,103 1,090 948 2,351 2,847 e/2,12.7 2,258 3,005 1,910 2,641 1,809 4,695 2,437 3,038 5,198 e/7,325 5,264 7,173 9,814 6,504 8,941 11,979 October November December 1st 2nd 3rd 4th quarter quarter quarter quarter 1st half Three quarters Year 731 726 973 1,000 Excluding finance companies 3/ 1st 2nd 3rd 4th quarter quarter quarter quarter 2,284 . 2,529 e/1,875 Year e/ £/ 1/ 2/ 3/ 2,199 2,919 1,775 2,410 1,554 4,552 2,337 2,807 9,303 11,253 Estimated by Federal Reserve. Preliminary. Securities and Exchange Commission estimates of net proceeds. Investment Bankers Association of America estimates of principal amounts. Total net capital issues excluding offerings of sales and consumer finance companies. 2/ 1961 711 689 764 613 594 1,144 d?/ e/ e/ I 876 1 ,133 628 £/ £/ £/ January February March July August September State and local 1962 New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) Quarter Total Month Gross proceeds for new capital and refunding 1/ Common Publicly Privately and pfd. offered offered Net proceeds for new capital 1/2/ Memo: foreign issues includec Mfg. Public Communi- Other utility cations issuers 1960 - IV 2,832 1,462 955 416 17 625 696 381 997 1961 - I II III IV 1,992 5,352 2,566 3,236 662 2,303 772 967 880 1,275 1,139 1,424 449 1,774 654 845 76 155 69 62 515 1,466 935 792 381 1,081 595 836 81 1,095 104 147 832 1,052 803 1,263 1962 - I II III IV 2,378 3,250 2,184 2,957 1,155 1,389 853 1,089 716 1,222 1,024 1,568 507 639 307 300 68 257 56 179 655 996 601 769 430 983 375 568 456 231 275 321 717 794 659 986 1963 - I II III 2,700 3,635 1,108 1,389 1,306 1,821 287 425 128 434 947 591 326 793 236 221 842 1,241 1961 - Oct. Nov. Dec. 1,155 987 1,094 336 414 217 509 348 567 310 225 310 25 12 25 271 215 306 306 362 168 25 80 42 487 291 485 1962 - Jan. Feb. Mar. Apr. May 647 884 847 1,217 801 1,232 630 922 632 976 784 1,197 273 497 386 654 247 488 200 477 176 539 286 264 232 232 253 227 420 575 366 363 295 314 446 808 .143 155 209 336 134 169 67 82 161 123 52 125. 3 12 54 10 147 100 13 205 131 318 384 270 342 217 218 166 153 271 345 89 148 193 377 196 410 118 110 148 141 175 252 , 73 362 21 88 64 79 88 120 67 260 4 57 225 218 275 264 229 301 159 301 199 282 253 451 695 642 1,363 1,049 1,340 1,246 845 745 350 259 499 380 550 459 279 325 243 289 774 452 694 675 466 350 102 94 91 217 95 163 1.9.9) 70 114 115 97 341 222 230 1.06) 100 125 68 43 71 92 58 CBJ6 238 191 412 369 373 499 207 340 % 1 July Aug. Sept, Oct Nov. Dec. 1963 - Jan. Feb. Mar. Apr, May June July g/ Aug. e/ Sept. 43 46 34 99 25 43 60 56 182 196 37 n. a. 135 220 592 148 216 227 3.04 225 -- JD/ Preliminary. el Estimated by Federal Reserve. 1/ Gross proceeds exceed net proceed, by the cost of flotation. 2/ For total see Exhibit H; other issuers are extractive, railroad and other transportation, real estate and finance and commercial and other. Source.--Securities and Exchange Commission. II-14 ; •: Exhibit J . Other Security Offerings (In millions of dollars) 1963 January " February April " May July ^ August September October November December Gross lone-term 1/ Foreign government 2/ 1962 1 i 1961 1 1963 232 133 76 57 - 114 11 \ 62 e/ 70 Year Jan.-Aug. e/75'5 142 10 35 10 86 50 25 8 31 151 88 101 6 29 20 2 66 29 5 2 236 366 159 State and local government 5/ January February Ma rch April May June / July August September October November December 75 272 -367 589 -189 -149 -6.2 £/ - u-il . Year Jan.-Aug E / 125- 18 466 -186 127 -84 -118 78 339 -406 71 234 -161 246 156 186 461 520 640 674 252 100 149 278 459 e/ el -- 793 150 175 250 193 -- 225 -- -- 1,188 1,448 1,013 1,029 Net Short-term 4/ 1 Federal aeencv 3/ 160 195 -8 ' -103 -42 -155 109 518 -86 -6 54 -116 378 Federal agency 3/ 1 1961 1962 148 43 34 737 1 -106 -189 -482 292 195 319: 414 327 770 247 -156 226 -364 82 284 261 227 -157 379 55 -80 -144 -162 -174 -79 -87 207 22 193 108 98 56 -114 1,004 -76 807 -224 p/ 1/ Preliminary, e/ Estimated by Federal Reserve. n.a.--Not available. These data differ from those in Exhibit H in that refunding issues, as well as new capital issues are included. Long-term securities are defined as those maturing in more than one "2/ Includes securities offered in the United States by foreign governments and their political subdivisions and international organizations. Source: Securities and Exchange Commission. Issues not guaranteed by the U. S. Government. Source: long-term, Securities and Exchange Commission; short-term, Treasury Department and Federal Reserve. These data differ from those in Exhibit H and above in that they represent new offerings less retirements, whether from the proceeds of refunding issues or from other funds. Data include only issues with original maturity of one year or less. 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 one year. Source: Bond Buyer and Federal Reserve. 3/ 4/ 5/ I 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) Month 1962 - August September October November December 1963 - January February March April May June July August Corpor ate Bonds (Other than Convertible bonds convertibles) Total 286 191 , 434 178 198 234 186 394 409 149 348 221 236 226 100 398 178 178 215 125 372 263 149 348 180 218 Stocks State and local government 60 272 153 320 217 193 344 367 570 431 489 472 279 329 91 36 20 19 26 22 146 -- 35 -- 41 18 -- Other 2/ 194 25 75 48 63 134 43 460 60 20 Large Individual Issues Offered September 1 through 27 Issuer CORPORATE CIT Financial Corp. i Northern States Power Co, *New England Tel.&Tel. Co. Dow Chemical Co. STATE AND LOCAL GOVERNMENT State of Washington New York City, New York Houston Ind. Sch. Dist., Texas Detroit, Michigan New.Orleans, La. Municipality of Metro., Seattle, Wash. State of North Carolina OTHER None Type 3/ Deb. 1st mtg. bds. Com. stk. Deb. Amount (millions of dollars) Maturity Coupon rate or net interest cost Offering yield Rating 100.0 15.0 22.0 100.0 1984 1993 4-1/2 4-3/8 4.55 4.38 Aa 1988 4.35 4.35 Aa Rev.-S.T. G.O. G.O. 35.8 25.6 10.0 1964-81 1964-2012 1966-92 3.09 3.66 3.22 2. 00-3.20 2. 00-3.65 2. 25-3.40 G.O. G.O. Rev.-Ut. 11.5 14.7 15.0 1964-88 1965-88 1967-2002 3.20 3.29 3.67 2. 05-3.5 0^/A 2. 15-3.40 ' A 2. 60-3.70 ' - - / G.O. 22.0 1964-80 2.83 1. 90-2.90 —— A A A Aaa H. 14 K-2 Footnotes ^--Rights offering. n.a.--Not available. JL/ 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. 3J In the case of State and local government securities, G.O. denotes general obligations; Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.Ut., revenue bonds secured only by revenue from quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent, revenue bonds secured solely by lease payments. 4/ 1/4 per cent bonds maturing 1987-88 not publicly reoffered. H. 14 Exhibit L Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U. S. Treasury) 1/ Expected Proceeds from Forthcoming Large Issues Date of computation 1962 - Aug. Sept. Oct. Nov. Dec. 1963 - Jan. Feb. Mar. Apr. May June July Aug. 31 28 31 30 28 31 28 29 30 31 28 31 31 During month following date shown State and local govt. Other 2/ Corporate 170 363 203 170 269 167 142 376 149 223 170 221 158 61 187 96 194 177 376 458 381 447 255 142 329 210 Subsequent to date shown S tate and local govt. Corporate 215 387 243 328 311 843 755 763 599 582 287 512 468 312 546 328 360 314 412 572 421 234 288 215 267 183 175 75 25 45 40 460 75 20 Other 2/ 175 - Forthcoming Large Offerings, as of September 27 Issuer Type Amount (millions of dollars) CORPORATE Subscription Television, Inc. General Acceptance Corp. United California Bank Com. stk. Deb. Com. stk* 22.8 20.0 26.9 October 7 October 9 October 22 (rts. ex.) 25.0 47.1 50.0 25.0 39.6 12.0 October October October October October October 1 1 7 8 8 9 12.0 20.0 33.0 12.0 30.0 35.0 10.0 October October October October October October October 9 9 10 10 16 18 25 15.0 14.0 October 29 October 17 STATE AND LOCAL GOVERNMENT Los Angeles Unif. Sch. Dist., G.O. California G.O. Baltimore, Md. Rev.-Rent. Lewisport, Ky. Rev.-Q.Ut. New York State Bridge Auth. G.O. *State of Massachusetts Rev.-Ut. Kansas City, Missouri Los Angeles Dept. of Wtr. & Pwr., Rev.-Ut. California G.O. Cincinnati, Ohio Rev.-Q.Ut. Wayne Co., Michigan G.O. *Buffalo, N. Y. G.O. State of Louisiana Penna. State Highway & Bridge Auth. Rev.-Q.Ut. G.O. Cleveland City Sch. Dist., Ohio Los Angeles Co. Flood Control Rev.-Q.Ut. Dist., California Rev.-Ut. Austin, Texas Approximate date of offering 75 25 33 . 45 40 460 75 20 H. 14 L-2 Forthcoming Large Offerings, as of September 27 (Cont'd.) Type Amount (millions of dollars — Approximate date of offering STATE AND LOCAL GOVERNMENT (Cont'd.) Douglas Co. Pub. Util. Dist. # 1 , Wash. Iowa State University Los Angeles Dept. of Wtr. & Pwr„, California East Bay Mun. Util., Dist., Cal. Pittsburgh, Pa. Dade County, Florida Jacksonville Expressway Auth., Fla. Houston, Texas — Rev.-Ut. Rev.-Rent. Rev.-Ut. G.O. G.O. G.O. Rev.-Ut. G.O. 184.0 16.0 October November 15 21.0 27.0 35.0 46.0 40.0 11.1 November 20 November 20 Indefinite Indefinite Indefinite Indefinite OTHER None *--Included in table for first time. JL/ Includes corporate and other issues of $15 million and over; State and local government issues of $10 million and over. 2/ Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal agencies. Note.--Deletions for reasons other than sale of issue: None. ' H. 14 Foreign Government and Corporate Security Offerings and Placements in the United States Part I: Sale Date Amount (millions of dollars) Issuer and Description of Issue A. 7/10 20.0 7/10 7/17 20.9 25.0 7/17 15.0 8/1 20.0 8/2 7.3 Public Offerings Sold July 1 through September ^ 7 z Milan, I t a l y — 5 - 1 / 2 % bonds, due 1 9 7 8 — r e o f f e r e d to yield 5.63% Hitachi, Ltd.--Common stock United Mexican States--6-3/4% sinking fund bonds, due 1 9 7 8 — r e o f f e r e d to yield 7.00% United Mexican States--6% bonds due 1966-68-reoffered to yield 6.00% Nippon Telephone & Telegraph Public C o r p o r a t i o n — 5 - 3 / 4 % guaranteed sinking fund bonds due 1 9 7 8 — r e o f f e r e d to yield 6.08% Tokio Marine and Fire Insurance Co.--common stock B. None Prospective Offerings H. 14 M-2 Part II: Date reported Amount (millions of dollars) 7/18 26.0 7/18 4.0 8/6 2.1 8/6 Private Placements--Reported July 1 through September 11 5.0 •3/13 3.5 _-Vl3 1.1 Issuer and Description of Issue Pacific Petroleum Ltd.--5-1/2% secured notes, maturing 1978--no information available on takedown Copenhagen County Auth., Denmark-5-1/2% external notes, maturing 1968--no information available on takedown Banco Nacional de Credito Agricola: S.A., Mexico City 6-1/2% promissory notes, maturing 1964-68--no information available on takedown Austrian Investment Finance Corp.--notes, maturing 1973--no information available on takedown Manitoba Electric Power Commission--5-7/8% notes, maturing 1983--no information available on takedown Union Acceptance Corp.--6-1/4% debenture, maturing 1974-78--no information available on takedown Note: 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. FulJ. or partial takedowns may take place both prior and subsequent to the date a placement is reported. "--Included in table for first time. Exhibit N Sources and Uses of Funds by Life Insurance Companies U. S. Govt. ities Value of assets at end of period: 1959 - Dec. 1960 - Dec. 1961 - Dec. 1962 - Dec. 1963 - July July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May July r/ Aug. Sept. Oct. Nov. Dec. Mortgages (In millions of dollars) 1,307 1,329 1,392 1,411 1.261 6,858 6,428 6,135 6,189 5,843 46,783 48,631 51,362 53,469 54.815 118 295 193 341 587 3,221 3,606 3,902 4,060 3,954 -34 -10 -54 7 74 -43 48 -23 15 30 40 13 125 -2 -7 -43 20 -112 70 -51 14 -46 -261 152 156 174 112 234 280 130 276 241 260 211 505 118 -27 -26 66 -66 -36 110 -72 -30 23 16 -178 49 27 28 34 1 -1 21. 30 27 13 44 23 223 25 -76 91 -24 -95 121 -21 -48 31 37 -216 65 156 135 44 265 248 132 213 187 136 1&3 395 225 43 52 179 -53 -118 72 30 20 Changes; Feb, Mar. Apr, May Uses of Funds 1/ Business securities 2/ State and Commercial local govt. Long-term bends and and finance company paper ities -99 1 -75 12 4 -22 58 -29 33 6 26 111 64 -40 -318 . 29 3 117 -15 -12 12 11 28 z" 14 -24 -18 -2 16,126 17,472 19,582 20,719 22,545 39,237 41,815 44,250 46,980 48,665 * 186 141 223 262 173 187 109 167 164 204 237 382 257 199 192 158 114 134 156 150 155 121 149 325 853 484 530 596 550 409 644 528 521 665 651 809 149 114 143 119 197 198 139 236 182 293 329 600 145 100 60 27 -17 -14 148 137 85 160 293 94 737 442 3.56 457 360 209 681 594 473 666 770 664 360 233 256 160 312 151 354 than 842' 489 477 633 626 462 972 . 52 123 -128 223 28 184 159 -69 -17 145 46 -8 Feb. 233 -211 -73 270 19 -17 Mar. 160 -14 -19 292 -27 81 Apr. 367 -162 29 255 -36 -139 May 219 -94 -1 256 -50 -19 June 54 86 156 105 July -27 244 1./ Uses of funds represent net changes in assets and therefore reflect net, rather gross, uses. 2/ Includes securities of domestic corporations only. Source.--Institute of Life Insurance. z/ Revised, £/ Preliminary. Exhibit 0 Sources and Uses of Funds by Savings and Loan Associations Cash Value of assets at end of period: 1959 - Dec. 1960 - Dec. 1961 - Dec. 1962 - Dec. 1963 - July Uses of funds 1/ Total U. s . sources Other Mortsecur- gages 2/ ities (In millions of dollars) 68,834 78,973 85,836 3,729 4,131 4,775 5,348 5,706 63,530 71,476 82,135 93,816 101,218 54,583 62,142 70,885 80,442 86,499 -103 69 123 115 223 -62 -144 84 82 . 107 203 -53 265 754 930 819 1,187 1,070 372 940 1,043 1,123 1,173 594 556 708 419 802 1,356 124 507 679 724 779 1,495 -465 -80 -26 90 41 270 -9 65 -2 43 79 44 367 437 695 696 816 975 741 915 809 811 757 745 186 95 36 -46 -14 -66 46 -11 42 30 47 -7 529 601 802 842 977 1,046 880 1,016 844 962 804 836 -116 41 90 94 413 -60 -183 104 78 40 172 -100 242 833 1,061 812 1,383 1,185 349 1,071 1,051 1,131 1,122 1,441 491 578 934 386 782 1,431 14 648 870 835 874 1,694 -382 -96 -82 126 98 365 87 93 95 36 -23 460 2,183 2,680 3,315 3,946 3,418 4,477 4,595 5,211 5,549 6,258 92 188 106 -17 -1 July Aug. Sept. Oct. Nov. Dec. -91 60 6 25 149 129 -216 -81 51 82 84 437 1962 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -357 96 133 -78 7 265 -394 -38 87 99 99 712 Changes: 1961 - Jan. Feb. Mar. Apr. . May Sources of funds Net change BorrowOther ing 3/ savings capital 28 53,141 60,070 983 2,387 2,197 2,856 3,633 3,692 132 -128 75 79 415 # 6,560 7,137 8,394 9,761 11,027 % 136 278 248 310 344 -556 248 344 133 244 265 -737 133 351 X 209 300 1 \ 503 -611 248 - <; 330 86 260 271 -713 169 -737 985 417 675 -114 190 -334 1963 - Jan. 844 -195 371 1,020 693 49 107 171 Feb. 190 1,195 -96 116 1,289 906 177 Mar. , — - — -^ / 9 0 123 448 1,049 478 89 -139 35 1,064 Apr. 115 969 428 1,512 395 -38 -23 1,178 May 1,642 594 -695 1,540 1,231 -17 89 237 -36 255 356 -160 575 70 1,116 July -451 r/ Revised. £ / Preliminary. If 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/ Data for 1957 adjusted to include mortgage pledged shares as currently reported. 3/ Advances from Home Loan Banks and other borrowing. Source.--FSLIC. Sources and Uses of Funds by Mutual Savings Banks U. S. Cash Govt. ities Value of assets at end of period: 1959 - Dec. 1960 - Dec. 1961 - Dec. 1962 - Dec. 1963 - July Changes: 1961 - Jan. Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. 1962 - Jan. Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Dec. Uses of funds 1/ Total Busi|State & sources Mortness jlocal gages Other secur- /govt, ities secur2/ 1ities (In millions of dollars) Sources <]f funds Net change in Other deposits 34,983 36,353 38,487 41,582 43,354 3,959 4,220 4,346 4,536 4,926 829 872 828 957 828 6,864 6,239 6,136 6,089 6,153 4,849 5,080 5,053 5,188 5,115 722 672 677 528 456 24,768 26,709 28,915 32,070 34,403 910 1.,001 1 ;,224 1,,284 1 ,323 38,,942 40.,573 42,,833 46,,118 48 ,279 -49 21 9 -51 30 30 -26 •14 46 •27 7 •20 106 100 117 -216 -13 -52 18 6 -15 -120 -13 -21 3 -15 46 -11 27 34 2 -23 -19 -56 -20 5 -5 -1 -2 1 23 -2 1 1 -5 -5 -1 161 140 204 176 187 217 201 207 156 178 167 212 17 26 29 -51 30 -23 -28 55 49 -44 46 117 233 272 404 -154 262 228 164 232 220 -74 181 292 170 136 351 -54 114 366— 23 99 310 -15 48 471 -1381' 141 133 -90 -59 133 -179 10 47 12 79 12 54 -46 -29 44 15 35 124 94 77 209 -216 16 -38 -11 26 3 -162 -19 -26 17 1 25 -35 2 17 66 14 2 3 27 -4 -7 -18 -18 -26 -20 -5 -5 • -9 -5 -15 -6 -15 253 188 230 270 254 302 290 312 243 305 272 236 -118 12 62 -45 68 -22 -10 53 28 -32 36 28 250 307 -519 -131 334 306 285 367 315 114 274 345 83 165 472 -51 184 , 424^' 172 215 429 186 147 545 167 142 47 -80 150 -118-V 113 152 -114 -72 127 -200 63 136 53 -100 101 229 330 13 436 -15 -4 39 -137 1963 - Jan. 160 215 375 -6 320 -11 -11 51 31 Feb. 84 526 610 49 313 -26 -9 21 260 Mar. -122 11 -111 -58 327 -5 -72 -61 -241 Apr. 160 232 392 52 357 -8 -5 -25 22 May -111 422 311 -23 266 -4 14 June r/ 38 19 118 137 254 11 314 -3 14 -63 -19 July Revised. j>/ Preliminary. 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. 3/. Adjusted so as not to reflect $115 million and $124 million, respectively, other liability reclassified as deposits in conformity with FDIC redefinition in 1961 and 1962. Source.--NAMSB and FDIC.
@FedFRASER