Full text of H.16 Capital Market Developments : September 5, 1961

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Not f o r Publication DECONTROLLED AFTER SIX MONTHS
September $, 1961.
1961

! CAPITAL MARKET DEVELOPMENTS
r
THE UNITED STATES
icjluding Monthly Review of the Capital Markets
e r l y Review of Corporate Security Financing)

The volume of new s e c u r i t y financing was moderate l a s t week and
i s expected t o be somewhat l i g h t e r t h i s Labor Day shortened week. Last
week, ending September 1, one l a r g e S t a t e and l o c a l bond i s s u e of $20
million was sold while the Federal National Mortgage Association sold a
#100 million debenture issue f o r new c a p i t a l as p a r t of a $200 million
financing; no l a r g e corporate issues were on the calendar. This week,
ending September 8, no l a r g e corporate or State and l o c a l bond issues a r e
scheduled, but the Federal Land Banks a r e o f f e r i n g $73 million i n debentures
t o r a i s e new c a p i t a l a s p a r t of a $193 million i s s u e .
Bona f i e l d s . Yields on Aaa-rated corporate bonds and U. S. Government long-term bends remained unchanged l a s t week while y i e l d s on State and
l o c a l government bonds and Baa-rated corporate bonds rose one b a s i s point
each.
Short- and intermediate-tern i n t e r e s t r a t e s . Yields on Treasury
b i l l s declined l a s t week while those on 3-5 year U. S„ Government i s s u e s
were unchanged. Yields on 3-month Treasury b i l l s dropped 9 basis p o i n t s
while the decline in y i e l d s on 6-month b i l l s was 6 b a s i s p o i n t s . The
average e f f e c t i v e r a t e on Federal funds rose 35 b a s i s points t o 1.65 per
cent from the revised level of the previous week.
Mortgage recordings. Nonfarm mortgage recordings expanded f u r t h e r
i n June, with both Government underwritten and conventional loans sharing
in the r i s e . At $2,561 m i l l i o n , the seasonally a d j u s t e d 3-month moving
average of recordings in May was the highest since the autumn of 1959 and
8 per cent from the peak In the summer of t h a t y e a r .
September s e c u r i t y volume0 Security i s s u e s by corporations a r e
expected t o be in moderate volume i n September while State and l o c a l
government financing i s expected t o be s u b s t a n t i a l .
Corporate financing i s expected to t o t a l $0.7 b i l l i o n , one-sixth
more than in August and s u b s t a n t i a l l y the same a s i n September of t h e two
preceding years. Only $175 million of l a r g e i s s u e s are c u r r e n t l y scheduled
f o r public o f f e r i n g .
State and l o c a l government bond s a l e s in September are estimated
a t $750 m i l l i o n , one-fourth l a r g e r than the revised estimate f o r August
and one-tenth more than i n September of l a s t year. Accounting f o r a l a r g e
p a r t of t h e estimated Septanber volume are two $100 million issues—one
each by the State of California and the State of I l l i n o i s 0




-2-

Capital markets i n August, New f i n a n c i n g by corporations and
S t a t e and l o c a l governments in August was i n l i g h t t o moderate volume
and bond y i e l d s changed l i t t l e .
Sales of s e c u r i t i e s by corporations t o t a l e d only $0.6 b i l l i o n
i n August s s h a r p l y l e s s than e i t h e r a year e a r l i e r o r in the preceding
f o u r months. Large public o f f e r i n g s t o t a l e d l e s s than $200 m i l l i o n f o r
the f i r s t time s i n c e March. With t h e supply of new i s s u e s small most of
t h o s e o f f e r e d during the month were f a i r l y well received by i n v e s t o r s and
t h e volume of s e c u r i t i e s i n syndicate was q u i t e small throughout the
month. Yields on outstanding Aaa bonds were 1 i . 1 i 5 per cent a t t h e end
of August ( d a i l y b a s i s ) , t h e same a s on July 31 s while y i e l d s on new
o f f e r i n g s ( a d j u s t e d t o an Aaa b a s i s ) averaged approximately it.58 p e r
cent, s l i g h t l y l e s s than in July.
New bond s a l e s by S t a t e and l o c a l governments i n August t o t a l e d
$0.6 b i l l i o n , one-third more than i n July but about t h e same as a year
e a r l i e r . The August f i n a n c i n g t o t a l was l e s s than had been expected a t
t h e beginning of the month p r i m a r i l y due t o the r e j e c t i o n of t h e only
b i d f o r $125 million of S t a t e of C a l i f o r n i a bonds, One of t h e two comp e t i n g b i d s on a $100 m i l l i o n C a l i f o r n i a i s s u e o f f e r e d a t t h e same time
was accepted, however, and $100 m i l l i o n of t h e bonds not sold l a s t month
have been rescheduled f o r bidding i n September. Despite the moderate
volume of new f i n a n c i n g and g e n e r a l l y f a v o r a b l e new issue r e c e p t i o n ,
d e a l e r s made l i t t l e p r o g r e s s i n reducing t h e i r moderately heavy inventory
of unsold s e c u r i t i e s . Advertised i n v e n t o r i e s f l u c t u a t e d between $W)0
and $U50 m i l l i o n during the month, much of t h i s c o n s i s t i n g of bonds
o r i g i n a l l y o f f e r e d i n June and July, Yields on Aaa-rated S t a t e and
l o c a l government bonds rose one b a s i s point to 3=3k per cent while
y i e l d s on Baa bonds increased 5 b a s i s p o i n t s to 3.98 p e r c e n t .
Common stock p r i c e s i n c r e a s e d r e g u l a r l y during August, closing
on t h e 31st a t 68,07; two per cent higher than a t the end of J u l y but
s l i g h t l y l e s s than t h e peak of 68. Wt reached on August 22. Trading
volume averaged 3,5 m i l l i o n shares a day, moderately more than in June
and July but s u b s t a n t i a l l y l e s s than t h i s s p r i n g ,
Stock p r i c e s . Common stack p r i c e s , as measured by Standard and
P o o r ' s composite index of 500 stocks, increased on balance about one p e r
cent l a s t week t o close a t 68.19 on Friday„ Trading volume declined a s .
i s u s u a l around a holiday to average 3.0 million s h a r e s a day,
Corporate Security Offerings
in the First Half of 1961
Net proceeds from corporate s e c u r i t y o f f e r i n g s in the f i r s t half
of 1961 t o t a l e d a record $7,2 b i l l i o n , more than one=balf l a r g e r than
during the corresponding period l a s t year and 7 per cent more than t h e
previous peak s e t in the f i r s t s i x months of 1957. While most of t h i s




Table 1
Coiporate Security Offerings f o r New Capital
by Type of business of I s s u e r
F i r s t Half 1956-61
(Net proceeds i n mil]ions of d o l l a r s )
1961

I960

1959

1958

1957

1956

7,212

1*,679

It,835

6,121

6,688

5,H*1*

70 9
6,*4
5,920
581*

152
It,527
It,152
375

61t
1*,771
1*,313
1*58

359
5,762
5,31*7
1*15

9k
6,593
6,128
1*65

236
1*,907
It,537
371

Manufacturing
New money
Other purposes

1,981
1,636
3l<6

809
690
119

1,109
967
11*2

1,51*2
1,363
178

2,373
2,100
273

1,613
1,387
226

E l e c t r i c , gas & water u t i l i t i e s
New money
Other puiposes

1,1*62
1,10.9
1*3

1,W6
1,371
36

1,791
1,710
81

2,095
2,020
75

2,116
2,015
101

1,301*
1,288
16

Communication
New money
Other puiposes

1,176
1,168
8

338
337
1

11*9
11*6
2

930
927
3

696
687
9

2lt8
2l*5
3

!
|

Railroad
New money
Other puiposes

82
82

90
90

108
108

127
127

210
210

168
168

—

—

—

—

'
!

Other t r a n s p o r t a t i o n
New money
Other puiposes

31*1
297
1*3

230
223
7

385
370
15

276
211
65

195
192
3

160
157
3

Commercial and other
New money
Other puiposes

370
31555

29lt
232
62

1*09
299
110

101*
87
16

150
126
25

150
128
22

Mining
New money
Other puiposes

110
101
9

159
87
71

70
65
5

115
102
13

122
101
21

11*5
123
22

Financial and r e a l e s t a t e
New money
Other puiposes

982
901
80

1,200
1,121
79

75D
61t7
103

571*
510
61*

732
697
36

1,119
1,01*0
79

11*3
839

6JU6
551t

356
391*

277
297

m
26k

720
399

| Total coxponate o f f e r i n g s
Refunding
New c a p i t a l
New money
Other puiposes

Sales and consumer finance
Other

Note „ --Details may not add t o t o t a l s due t o rounding e
Source,--Securities and Exchange Commission and Federal Reserve 0




-k-

Table 2
Total Corporate Security O f f e r i n g s by Type of Issue
F i r s t Half 1956-61
(Gross proceeds i n m i l l i o n s of d o l l a r s )
Type of
issue

1961

i960

1959

1958

1957

1956

Total corporate o f f e r i n g s

7,3a

4,802

4,947

6,216

6,815

5,239

Type of o f f e r i n g
Public
Private

4,998
2;346.

3,113
1,688

3,168
1,780

4,520
1,696

4,949
1,866

3,139
2,100

Type of s e c u r i t y
Bonds and notes
Public
Private
(Memo: Convertible)

5,121
2,965
2,156
(299)

3,574
2,008
1,566
(198)

3,476
1,747
1,729
(338)

5,374
3,748
1,626
(957)

5,060
3,254
1,805
(639)

4,017
1,978
2,039^
(492)

P r e f e r r e d stock
Common stock

288

211

315

336

237

337

1,936

1,017

1,157

506

1,518

884

..
y e a r ' s new f i n a n c i n g was to obtain new c a p i t a l , new i s s u e s sold to r e t i r e
outstanding s e c u r i t i e s were in s u b s t a n t i a l volume, unlike e i t h e r l a s t y e a r
o r 195>7o These refunding i s s u e s t o t a l $0,7 b i l l i o n t h i s y e a r , t h e l a r g e s t
refunding volume since the second h a l f of 1954, In c o n t r a s t t o t h e l a t t e r
p e r i o d , however, when r e f i n a n c i n g t o take advantage of a decline i n i n t e r e s t rates-was widespread, t h i s y e a r ' s refunding volume r e f l e c t e d p r i m a r i l y
the a c t i v i t i e s of the Bell Telephone System, and was motivated in p a r t by
considerations other than t h e decline i n i n t e r e s t r a t e s .
Corporate s e c u r i t y o f f e r i n g s f o r new c a p i t a l t o t a l e d $6,5
b i l l i o n i n the f i r s t h a l f of 1961, I4.i1 per cent more than a y e a r e a r l i e r
and about -the same as the record volume In t h e f i r s t h a l f of 1957 when
p l a n t and equipmait expenditures were a t an a l l - t i m e peak, one-tenth
higher than t h i s y e a r . A f t e r the l i g h t e s t volume of new f i n a n c i n g in
any f i r s t q u a r t e r since 1954, new o f f e r i n g s during t h e second q u a r t e r
reached a record volume of $4,7 b i l l i o n . The second q u a r t e r t o t a l includes
t h e AT&T $965 m i l l i o n common stock subscription i s s u e , but even i f t h i s
o f f e r i n g were excluded, the second would s t i l l s e t a new record.
I n d u s t r i a l d i s t r i b u t i o n . The i n c r e a s e in c o r p o r a t e s e c u r i t y
f i n a n c i n g t h i s year was most notable f o r manufacturing companies. R a i l road, f i n a n c i a l and r e a l e s t a t e , and mining companies decreased t h e i r
o f f e r i n g s „ Communications companies o t h e r than AT&T a l s o decreased t h e i r
o f f e r i n g s over l a s t y e a r ,




New issue volume by manufacturing conpanies t o t a l e d $2,0 b i l l i o n
in the f i r s t half of t h i s year, more than twice t h e amount r a i s e d in t h e
security market in t h e s i m i l a r period of i960 and only one-eighth l e s s
than i n 1957, when manufacturing companies were investing i n plant and
equipment a t r a t e s o n e - f i f t h higher than t h i s year. In c o n t r a s t t o 1957»
when f i v e i s s u e s of over $100 mill ion each accounted f o r about o n e - t h i r d
of t o t a l manufacturing o f f e r s , only one such l a r g e issue—the §300 million
U, S. Steel Company debenture issue—was sold t h i s year. Most types of
manufacturing companies shared i n the large volume of security f i n a n c i n g
t h i s y e a r , whereas in 1957 over t w o - f i f t h s of the financing was concentrated
i n the petroleum, n o n e l e c t r i c a l machinery and primary nonferrous metals
industries,
Anticipated plant and equipment expenditures of Manufacturers
are expected t o continue below the i960 level tr.ro.itP
":.ird quarter
of t h i s year, i t appears t h e r e f o r e t h a t the large first,
volume of
security financing was primarily to r e s t o r e - u . - l t liqu.nLy,
r^pay
bank l o a n s , and to obtain funds f o r c a p i t a l expenditures later in the
cycle when i n t e r e s t r a t e s are expected t o be higher. 'Ires is partly
r e f l e c t e d i n the almost t h r e e f o l d expansion, a s compared with I960, in
corporate s e c u r i t i e s issues f o r s t a t e d purposes ot^er t?«an new mjjnsy ana
retirement of s e c u r i t i e s (mainly repayment of bank :=rA loans) by manuf a c t u r i n g conpanies,
New financing by e l e c t r i c * gas and water u t i l i t i e s , ii?. sun ting t o
S L 5 b i l l i o n , was h p e r cent g r e a t e r than in i960 but was l e s s than in most
other recent years, A f u r t h e r growth in i n t e r n a l funds,
depreciation
allowances; hac made i t possible t o plan p l a n t and equipment
jenditures
t h i s year of almost *250 million no re thar; in I960, and t o repay bank loans
of about the same magnitude as in the f i r s t half of i960 w._. only a $56
million increase in security financing in the f i r s t half and a new issue
calendar for the second half of the year which c u r r e n t l y i s no r r e a t e r than
l a s t year:
Financial and real e s t a t e companies offered s e c u r i t i e s with proceeds of $1,0 b i l l i o n , about o n e - f i f t h l e s s than in i960. This d e c l i n e
in o f f e r i n g s was accounted f o r by s a l e s and consumer finance conpanies <>
These companies experienced a decline i n receivables during the f i r s t half
of t h i s year due to a sizeable reduction i n expenditures by consumers on
durable goods as compared with an expansion in the s i m i l a r period of l a s t
year, They used the proceeds of t h e i r security o f f e r i n g s to help repay
a l a r g e amount of bank borrowing.
Types of issues„ Gross proceeds from both p u b l i c l y o f f e r e d
issues and p r i v a t e placements were in record volume in the f i r s t half3
publicly o f f e r e d issues of $5=0 b i l l i o n were almost t h r e e - f i f t h s l a r g e r
than l a s t year and one per cent l a r g e r than the previous record s e t in
1957 while p r i v a t e placements reached $2,3 b i l l i o n , t w o - f i f t h s l a r g e r than
in i960 and one-eighth l a r g e r than during the record f i r s t half of 1956,
the previous record period f o r p r i v a t e placements,,




The volume of bond f i n a n c i n g a t 15*1 b i l l i o n was more t h a n twof i f t h s l a r g e r t h i s y e a r than l a s t and only s l i g h t l y smaller than t h e
record volume of 1958. Common stock issues s e t a new record of $1,9 b i l l i o n .
~but t h i s was due e n t i r e l y t o the AT&T s u b s c r i p t i o n i s s u e , Aside from the
l a t t e r i s s u e , the d o l l a r volume of common stock f i n a n c i n g was a l i t t l e l e s s
than i n t h e f i r s t s i x months of both I960 and 1 9 # , P r e f e r r e d stock f i n a n c i n g
of $0.3 b i l l i o n was about c n e - t h i r d more than l a s t year but l e s s t h a n in
most other recent y e a r s . Financing through c o n v e r t i b l e bonds t o t a l e d $0.3
b i l l i o n , about one-half nere than l a s t year, but considerably l e s s than i n
o t h e r recent y e a r s .
More d e t a i l e d information concerning recent c a p i t a l maticet
developments i s presented in t h e a t t a c h e d e x h i b i t s 0

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




LONG-TERM

BOND

YIELDS

HIGH-GRADE

I ' l l i MlXJ 15
Per cent p«r onnum
LOWER-GRADE




Exhibit B - Tables f o r Exhibit A

-9-

Long-teim Bond Yields
High-grade
Date

Corporate
Aaa 1/

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

2 . 8 5 (4/23)

U. S. Govt.
long-term 2/
(per cent)

Aug. h
Aug. 11
Aug. 18
Aug. 25
J3ept. 1 p /

2.it5
3.76
3 . 07
lt.it2
3.75
it.03
3.70

it.llt (9/27)
3.55 ( s / z )
i t . 6 1 (1/29/60)

it. 23 (9/9)
lt.lt5 (8/18)
it. 21 (3/17)
. it.U5
it.it5
it.it5
it.itit
h.hh^

(8/6)
(10/18)
( 4/25)
(1/8/60)
(8/5)

(8/11)
(5/12)

.3.95
it. 03
it. 01
it, 01
it. 01

.

State and
local
government
Aaa 3/

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

1.90 (9/2)

2.99 (9/1)
3.37 (7/6)
3.12 (2/23)

.30
.60
.22
.59
.19
.57
.itO

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

3.32
3.32
3.33
3.33
3.3it

.51
.it2
.itit
.lt3
. it3

.62 .
.71
.68
.68
.67

3-1*5 (8/29)

2.61t (s/i)

3.65

(9/24/59)

Lower-grade

Date

Corporate
Baa 1 /

State and
l o c a l govt.
Baa y

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

(per cent)
19% - Low
1957 - High
1958 - Low
1959-60 - High
1960 - Low
1961 - High
Low
Aug. it
Aug. 11
Aug. 18
Aug. 25
/Sept. 1 2 /

(12/31)

5.10 (11/26)
i t . 5 1 (7/11)

2.93 (8/5)
It. 5 1 (8/29)

3.6it (5/1)

.52
L.27

5.36 (2/12/60)
It. 98 (9/9)
5.12 ( 9 / 1 )
5,00 ( V 2 1 )

i t . ^ 6 (1/7/60)
3 . 9 8 (12/29)

L 1 6 (3/23)
3.93 (8/3)

.81
.66

5.11
5.11
5.12
5.11
5.1/

3.93
3.97
3.97
3.97
3.98

.66
.66

.71

.67
.67
.68

g / Preliminary.
1 / Meekly average of del l y figure a . Average term of bonds included i s 23 »26 year#.
2/ Weekly average of dally f i g u r e s . The series includes bonds due or c a l l a b l e I n 10 years or more.
3 / Thursday f i g u r e s . Only general obligation bonds are included} average term l a 20 y e a r s .
Note.—lllghs and Ions are for individual s e r i e s and may be on d i f f e r e n t dates f o r d i f f e r e n t s e r i e s .
Ftor spreads, high r e f e r s t o widest, and low t o narrowest.
1




.96

1.21

.93
1.08
,B6
.93
.57

.61

.65
.6h
.6h

.

SHORT-

AND

[NTERMEDIATE-

TERM

INTEREST RATES

GOVERNMENT

A

\

xCN i

y^J{ v p

*\A
m i s

AV-a (
A, TO

J
rC
11 J\

t . DISCOUNT *ATE.

T
J
BANKS

AND

OTHER

PRIVATE

DISCOUNT
I
RATES
r1




BORROWERS

(\4

3 • 5 Y t A B ISSUES

W\

—11—

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

H954 - Low
11957 - High
11958 - Low
: 1959-60 - High
' i960 - Low
; 1961 - High
Low

1.50
3.50
1.75

Aug. 4
Aug. 11
i Aug. 18
Aug. 25
^ept,. l £ /

2.28
3.00
3.00 „ 2.38
2.50
3.00
2.1*3 .
3.00
3.00
2.34^

Loo

3.00
3.00
3.00

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

3-month
b i l l s 2/
.61

(10/18)

4.59
2.11

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

.58 ( 5/29)

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

Spread between yields on
3-month b i l l s and yields on
6-mo. b i l l s 13-5 y r . issues

1 . 6 6 (4/30)

(6/11)

3.64

3-5 year
issues 2/

4 . 0 4 (10/18)

2.11* (6/6)

2.35 (V28)

3.86 18/11)
3.15 (5/12)

.26
.79
.16
.28
.12

2.51
2.64
2.78
2.71
2.65

3.74
3.86
3.83
3.77
3.77

.23
.26
.28
.28
.31

3.02
5.07
2.38

(12/26)
(1/8/60)
(12/30)

2.78 (8/18)

5 . 0 0 (12/24/59)
3 . 1 | 0 (12/30)

Banks an?l, OtherrPrivate Borrowers
• Date

Prime
rate 3/

Stock Exchange
c a l l loan y

Finance company
paper 3/

Federal
funds 4/

.66
.86
.04
1.81
.38
1.48
.92
1.46
1.48
1.33
1.34
1.43

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

(per cent)

J
11954 - Low
0.957 - High
*3.958 - Low
1959-60 - High,
Z960 - Low
1961 - High
Low

3.00
4,50
3.5d
5.50
4.50
4.50
4.50

3.00
4.50
3.50
5.00
4.50
4.50
4.5o

1.25 (12/31)
3*88 (11/15)
1'. 13 (8/8)
5'. 13 (1/22/60)
2:88 (12/30)
2.88 (3/10)
2.50 (7/28)

n.a.
3.50
.13
4.00
.95
2.85
.43

Aug. 4
Aug. 11
Aug. 18
"Aug. 25
iSept. 1 c /

4.50
4.50
4.50
4.50
4.50

4.50
4.50
4.50
4.50
4.50

2.50
2.60
2.69
2.69
2.69

2.05
2.70
2.55
1.30
1.65

1/

(li/a)
( V2»)
(5/13/60)
(12/2)
(2/17)
(1/27)

0
.63
-.35
1.02
.22
.56
.11
.22
.22
-19
.26
.35

W«ckl> r a t e ehowa I s i t t t e t ' I n e f f e c t a t end of p e r i o d . Dleoount r i t e l a f o r f e d e r a l Reserve Bark of New York.
Stock Exohange c a l l I 6 a f c > a t * 1* going r a t e on c a l l loams secured by customers' stock exchange c o l l a t e r a l a t
Haii York City banks, Prtme r a t e l a t h a t charged by l a r g e banks on s h o r t - t e r m l o a n s t o b u s i n e s s borrowers of
t h e h i g h e s t c r e d i t standing*
2 / Market y i e l d ; weekly a v e r a g e s computed from d a l l y c l o s i n g 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
s e l e c t e d n o t e s and bonds,
>
3 / Average of d a l l y r a t e s published by flnamce companies f o r d i r e c t l y planed paper f o r varying m a t u - l t l e s I n the
9 0 - 1 7 9 day r a g g e .
.
4 / Weekly average of d a l l y e f f e c t i v e r a t e , which I s t h e r a t e f o r t h e h e a v i e s t vol use of purchase and sale t r a n s a c t i o n s
a s r e p o r t e d t o t h e Federal Reserve Bank of New York.
'
Not*.—Highs and lows a r s f o r I n d i v i d u a l 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 f o r d i f f e r e n t s e r i e s .
For s p r e a d s , high r e f e r s t o w i d e s t , and lew t o n a r r o w e s t .




STOCK

MARKET

STOCK MARKET CREDIT

* CHANGE jN SERIES

MORTGAGE

RECORDINGS AND

Monthly




LOANS

Exhibit F - Tables f o r Exhibit L

-13-

Stock Market

Date

Stock p r i c e
index 1 /

Trading
volume 3/
yields 2/ (millions
( p e r c e n t ) of shares)
Common

1957-60 - High
Low
1961 - High
Low

39.1*8 (12A-0/57)
68.29 (8/18)
58.1*8 ( 1 / 6 )

3.08
lt.72
2.88
3.32

1*.9
1.1*
5.8
2.7

JulyAugust
Aug. 18
Aug. 25
Sept. 1 g /

65.38
67.86
68.29
67.67
68.19

2.98
2.90
2.88
2.91
2.89

3.0
3.5
3.6
3.U
3.0

6 0 . 5 1 (7/31/59)

Stock market customer c r e d i t
Customers 1
Bank
debit balloans t o
ances 1*/
"others" 5 /
( I n m i l l i o n s of d o l l a r s )
1*,761*

(4/59) 3 , 1 * 0 1 (4/69)

3,551*

(1/50) 2 , 1 * 0 2 (12/57) 1 , 0 6 0 (11/57)

1 , 3 7 3 (5/59)

5,386(5/61) 1*,060(5/61) 1,378(8/23)
1*, 1*21*(1/61) 3,253(1/61) 1 , 1 6 1 ( 3 / 8 )
5,355
n*a.
n.a.

3,991
n.a.
n.a.
n.a.
n.a.

1,361*
n.a.
1,370
1,378
n.a.

n.a,...Hot a v a i l a b l e .
$ / Prnllit.lt.ary.
/
A1,
1 / Standard end P o o r ' s composite Index of 5U0 oczmon stock-*, weekly o l o o l i y p r l e e i , 1941-43*10. Monthly d a t a a r e
a v e r a g e s of d a l l y f l c u r e o r a t h e r t h a n of M d c y ' e o n l y . Hlghn and lows are f o r Fridays* data o n l y ,
2 / Standard and Poor'o ocmpotlto stock y i e l d baoed on Wednenday data converted t o weekly c l o s i n g prloee by f e d e r a l
Recerve. Yields shown a r e f o r dateo on which p r i c e index roaohod i t s high or low.
3 / Averagem of d a l l y t r a d i n g volvrae on t h e Hew York Stock Exchaiye.
4 / End of month f i g u r e 0 f o r member f i r m , of t h e Now York Stock Exchange whloh c a r r y margin a c c o u n t i j exeludeu balances
secured by U, S . Coveriment o b l l e a t i o n e .
6 / Wednesday f i g u r e 0 f o r weekly r e p o r t i n g member banks. Excludes l o i n s for purchasing or carrying " • "• Government^
t p c u r i t i e s . P r i o r t o J u l y 1 , 1059, such losnn are excluded only a t banks i n New York and Chicago, Weekly r e p o r t i n g
bonks account f o r about 70 per__oont of loans t o o t h e r o . For f u r t h e r d e t a i l sou B u l l e t i n .

Nonfarm Mortgage.Recordings and Loans 1 /

1960 - June
July
Aug.
Sept,
Oct.
Nov.
Dec.
1961 - J a n .
Feb.
Mar.
Apr.
May

Unadjusted
fotal
Seasonally
• VA.
FHA •
Unadjusted
adjusted 2/
( M i l l i o n s 0: d o l l a r s )
175
365
2,1*27
160
362
':!«•
2,1*93
181
1*17
2,781*
2,188
169
1*25
2,1*61*
2,598
162
1*31
2,525
2,1*51
1*01*
150
2,378
2,1*26
11*2
390
2,338
2,1*07
1*10
132
2,075
2,373
108
3B
1,997
2,387
125
31*8
2,1*1*1*
2,398
109
318
2,1*76
2,358
123
31*9
2,561
#
386
137
2 , 856

Conv.
2,150
2,006
2,186
2,001*
1,929
1,821*
1,806
1,533
1,51*8
1,972
1,931
2,228
2,333

n.a.—Not a v a i l a b l e .
^
1 / T o t a l r e c o r d i n g s data a r e estimates baeed on r e p o r t s from about 450 a r e a s and include
mortgagee of j20,000 or l i e s eeoured by nonf&rm r e a l e s t a t e , p r i m a r i l y r e s i d e n t i a l p r o p e r t i e s .
KHA-laeured l o a n s r e p r e s e n t g r o s s amount of insurance w r i t t e n , and VA-guaranteed loans the g r o s s amount
of loans closed,on 1-4 family houoes. Conventional data are derived ae a r e s i d u a l , although t o t a l
r e c o r d i n g s and VA and FHA l o a m w e not s t r i c t l y comparable I n concept or t i m i n g .
2/ Three-month moving average, eeaaonally a d j u o t e d by Federal Reserve.
Souroei Federal Home Loan Dank Board, Federal Housing Administration and Veterans A d m i n i s t r a t i s * .




Exhibit 0

-ill-

Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of d o l l a r s )
Corporate 1 /
I I960
r w

"T

New c a p i t a l
1961

State and l o c a l 2/
"""
I 1960
! 1959"

570
715
860

821
738
61j6

715
681
758

2,118
1,259
1,318

577
-l,0liU

'891
785
887

720
588
e/1,050

e/X,000
&/600
e/700

* 736
967
726

535 •
710
703

890
' 956
852

900 *

580.

3

i;%s
e|2,300
6,501.
e/8,80l*

•A5°
e/600
e/750

a

700
611
568

.

6!t8
6#

719
51*5
991 .

Si
987

1*92
606
683

1*1*3
521
1*70

31*8

593
1*50
1*78

£

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

2,20lt
2,567
1,979
2,6142

2,15U
e/2,358
e/1,800

1,660
2-, 256
1,780
1,3U0

2,11*5
2,1,88
1,1*33
1,521

1,527
6,955
9,653

1,771
6,750
9,392

e/^,512
fi/6,312

If,136
5,916
7,257

1,631*
6,067
7,588

Excluding fireince icompanies y
1,551+
4,552.
e/2,200

e7
1/
2/
y

1,716
2,165
2,018
2,317

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

8,216

8,630

Estimated.
S e c u r i t i e s and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of p r i n c i p a l amounts.
Total new c a p i t a l i s s u e s excluding o f f e r i n g s of sales and consumer finance
companies.




Exhibit H
Other Security Offerings
( I n millions of dollars)
Gross long-term \ T
Federal agency 3/
Foreign government 2/
1961
|
1960
|
1961
j
I960
1 195?
81
60
2

252

31*
72
l|0

58
50
1*2

100
11*9
278

July
August
September

25
1
36

85
1
35

199

October
November
December

3l*
2
1*1 '

33
30
70

160
1 1*9
181

6,
29
20

April
May
June

2
63
2l*

Year

"

533

1U8
35U

««

—

—

98
150

—

86

1,672

'51*7

-1*
181
1*

199
175

—

707

Federal agency 3/

State and l o c a l government 5/
January
February
March

1959

182
150
150

2
175
70

January
February
Ma rch

-11*1*
-162
-171*

-196
-202
-59

-82
176
33

160
195
-8

f8
il*o
-80

-103
-1*2

' 70
-11*6
-157

197
-25
-197

July
August
September

1*8
1*15
-175

57
392
131

95
23
-201

362
133
79

October
November
December

-16
50
-189

-81
-176
-117

-23
-33
-250

280
21*0
1*1*

18

362

-633

April
May
June

Year

-79
-87
207

-277
170 '
320

. 50
368
286

1,969

EZ P r e l i m i n a r y ,
\J These d a t a d i f f e r f r o * those I n Exhibit 0 I n t h a t re f u n d i i * I s s u e s , a s w e l l 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 ,
LfOry-tere s e c u r i t i e s a r e d e f i n e d a s t h o s e maturing I n more t h a n one y e a r .
2 / I n o l u d s s s e o u r l t l e s o f f e r e d I n t h e United S t a t e s by f o r e i g n governments and t h e i r s u b d i v i s i o n s 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 , Souroet S e o u r l t l e s and Exchange Commission.
3 / i s s u e s not g u f r a n t n e d by the U. S, O o v e r m e n t . Source: long-term, S e c u r i t i e s and Exchange Commission; s h o r t term , T r e a d i r y Department and f e d e r a l Reserve.
4 / These <fata d i f f e r from those i n Exhibit 0 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 l e b s 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 from o t h s r funds, fcta 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 qr 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 o r ' c e r t i f i c a t e s and P u b l i c Housing A u t h o r i t y n o t e s . I n
some l n s t a n o 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 Heserve.




Exhibit I

-16-

Large Long-term Public Security Issues f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Proceeds of Large I s s u e s Offered
( I n m i l l i o n s of d o l l a r s )
Month

Corporate

i960 - August
September
October
November
December
1961 - January
February
March
April
May

S t a t e and
local
government

581
266
566
U65
260
lltf
26?
70
1,572
557
532
475
185

July
August

298
367
I46
186
222
391
360
li05
383
256
616
179
281

Other 2/
75
25
77
150
99
67
25
151
100

Lax^ge Individual Issues Offered during August

Issuer

Type y

Coupon
Amount
r a t e or Offering Rating
( m i l l i o n s Maturity
of
net i n t e r - yield
dollars)
e s t cost

CORPORATE
Texas Eastern Trans. Co.
Texas Eastern Trans. Co.
Long Island Lighting Co.
Kimberly-Clark Corp.
Northern S t a t e s Pwr. Co.
Consumers Power Co.
Clark Equip. Credit Corp.

Deb.
Conv.pfd.stk.
1 s t mtg. bds.
S.F. deb.
1 s t mtg. bds.
1 s t mtg. bds.
Deb.

30.0
20.0
25.0
30.0
20.0
I4O.O
20.0

1981

5-3/8

5.38

Ba

1991
1986
1991
1991
1981

5
4-5/8
4-7/8
4-5/8
5-lA

4.90
1.63
4.85
I4.6O
5.35

A
Aa
Aa
Aaa

•

- -

STATE AND LOCAL GOVERNMENT
S t a t e of Maryland
Public Housing Authority
Sacramento USD, C a l i f .
Penna. Gen. State Auth.
S t . Petersburg, F l a .
Wash. Sub. S a n i t . D i s t . ,
Maryland
S t a t e of C a l i f o r n i a
Cook County, I l l i n o i s
San Diego USD, C a l i f .

G.O.

0.0.

Rev.-Rent.
Rev. -Ut.




G.O.
G.O.
G.O.
G.O.

16.9 196U-76
60.3 1962-2002
10.0 I963-86
25.0 196U-88
lii.O
1967-91
10.0
100.0
25.0
20.0

1963-92
1963-87
1962-76
1963-82

2.92
3.45
3.39
3.5k
lull

2.00-3.10
I.I1O-3.63. .
1.85-3.53H/
2.20-3.70
2.90-1.10

Aaa
Aaa
Aa

3.56
3.75
3.33
3.44

2.10-3.8$
2.00-3.90
1.75-3.50
2.00-3.65

A
Aa
A
A

A

Large Individual Issues Offered during August (Cont'd)
Issuer

I>pe J /

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

OTHER
Federal National Mortgage
Association

Deb.

1/

100.0

1971

ii-1/2

—

Includes corporate and other security offerings of $L$ million and over; State
and local government security offerings of $L0 million and over.
2 / Includes foreign government and international Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal agencies.
y
In the case of State and local government securities, G.O. denotes general
obligationsj Rev.-Ut., revenue obligations secured only by income from
public u t i l i t i e s ; Hev.-Q.Ut., revenue bonds secured only by revenue from
qua s 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 only; Rev.-Bent., revenue bonds secured solely by lease payments.
1986 maturity not reoffered.
1.10 per cent bonds due 1990-92 were reoffered to y i e l d lu75.




-18-

Forthcoraing Large Long-term Public Security Offerings f o r New Capital
(Other than U. S. Treasury) 2 /
Expected Proceeds from Forthcoming Large Issues
Subsequent to
date shown

During month following
date shown

Date of
computation

Corporate K

- Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 30
- Jan. 31
Feb. 28
Mar. 31
Apr. 28
May 31
June 30
J u l y 31
Aug, 31

216
576
ao
260
91
110
55
1,580
5k2
1*87
521
!
170
175

ffjothar
283
212
258
21*2
1*12
181
307
559
236
1*31
195
1*06
399

^

77
50

15
75
73

Corporate | % g

^

|other 2 /

283
336
391
560
682
360
638
806
579
771
291
537
530

731
836
585
335
1,036
1,01*6
1,125
1,700
687
~~ 611
666
255
21*0

127
50

15
75
73

Forthcoming Large O f f e r i n g s , as of September 1
Issuer

Mountain Fuel Supply Co.
Armour * Co.
Western Union t e l e g r a p h Co.
P a c i f i c Gas & E l e c t r i c Co.
Keystone S t e e l k Wire Co.
Rochester Gaa & E l e c t r i c Co,
Commerce Oil Refining Corp.
Realty C o l l a t e r a l Corp.

Type

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

Deb.
Conv, sub. deb.
Com. stk,
1 s t & ref.mtg.bda,
Conv. sub. deb.
1 s t mtg. bds.
Deb., bds. & com.
Coll. t r . notes

18.0
32.5

1*5-0
60.0
20.0

1$.0

1*5. o
20,0

Sept. 12
Sept, 12
( r i g h t s expire)
Sept. 25
( r i g h t s expire)
Sept. 27
Sept.
Indefinite
Indefinite
Indefinite

STATE AND LOCAL GOVERNMENT
Commonwealth of Massachusetts
Cheyenne, Wyoming
S tate of C a l i f o r n i a
Penna, Sta te School KLdg. Auth.
Oklahoma Building Bond Comm.
Los Angeles, C a l i f .
New York City
D e t r o i t , Michigan
e t r o i t City Sch. D i s t . , Mich.
forD FRASER

Digitized


G.O.
Rev,-Ut.
0.0.
Rev.-Rent.
G.O.
Rev.-Ut.
G.O.
G.O.
G.O.

1*7,0
10.0
100,0
21*. 0
35.5
15.0
1*2,9
11*,5
10,0

Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept,

12
12
13
19
19
20
20
26
26

J-2

-19-

Forthcoming Large Offerings, as of Septmber 1 (Cont'd)
Issuer

Typ*

Amount
(millions Approximate date
I of dollars) of offering

STATE AMD LOCAL 00VEHEMENT (Cont «d)
State of I l l i n o i s
Orleans Parish Sch. Dist., La,
Dade County, Florida
Jacksonville Expressway Auth.
State of Kentucky

federal Land Banks

0.0.

100.0

0.0.

10.0
W.O

0.0.

35.0

Sept. 27
Indefinite
Indefinite
Indefinite
Indefinite

73.3

Sept. 7

G.O.
Bev.-Ut.

Deb.

140.0

#—Included in table for f i r s t time.
1/ Includes corporate and other issues of $1$ million and over; State and
local government issues of $L0 million and over.
2/ Includes foreigi government and International Bank for Reconstruction and
Development issues and non-guaranteed issues Toy Federal agencies.
Note. —Deletions for reasons other than sale of issue* None.




jixhibit K
Yields on New and Outstanding
E l e c t r i c Power Bonds, feted Aa ahd A 1/
Date

1952-1960 - high
Low

Aa-rated o f f e r i n g y i e l d s
A-rated o f f e r i n g y i e l d s
Amount above
Amount above
Actual
Actual
(per cent) seasoned y i e l d s (per cent) seasoned y i e l d s
( b a s i s points)
(basis p o i n t s )
5.30 (12/8/59)

2.93 (3/31/54)

1961 - Jan. 12
18
25
Feb. 8
16
16
Mar. 23
24
Apr. 13
21
26
27
May 17
18
19
23
26
June 8
13
28
July 13
26
Aug. 3
9

87

-8

1.60
4. 55
4.44

11
7
-2

4.37

8

4.80
L.67
4.50 2/
4.57 '

43
29 .
13
20

4.65

27

4.87 "

41

U.65

Hi

85

29

5.65 (9/18/59)
3.00 (3/17/54)

123
-15

it. 60
4.6$
4.47
4.50
4-.U0
4.65 2/
4.80 2/

-2
5
-13
5
-5
17
32

4.72

19

4.80 .

27

4.94
5.12
4.92

40
55
36

4.93

29

4.90

20

•

•

2/

Covers only 30-year f i r s t mortgage bonds, a s reported i n Moody's Bond Survey.
Except where indicated, the actual y i e l d figure and the amount above seasoned
y i e l d s a r e averages of o f f e r i n g s during the indicated period and of the d i f f e r ences between t h e s e new o f f e r i n g y i e l d s and y i e l d s on seasoned issues of
s i m i l a r q u a l i t y f o r t h e same day. Average maturity f o r the seasoned i s s u e s
v a r i e s from 26 to 28 years.
Provides f o r a 5-year period during which i s s u e may not be called f o r refunding a t a lower coupon r a t e . Monthly averages so marked^ Include one or more
issues with such a provision. Other issues have no suc& provision.