FRESH LOAN FLOTA.TIONS. - - The vagaries of the security-markett
are very well exempli- fied just now by the varying Success attending fresh capital issues. Foreign loans giying Yields, say, from over 6 up to 8 per cent. seem to be eagerly ,subscribed by the investor so long as there is anything like reasonable security On the' other hand, the demand on the part of. the' ordinary investor for new gilt-edged securities Seems to be of a restricted character, and in the ease Of the two Australian Loans recently offered underwriters had to take up about 63 and 68 per cent: respectively: In a - sense, ' this is' a little surprising in view of the fact that at the :very time of the flotations gilt-edged securities were tending to advance, and, as stated CISewhere; the rise in sterling during the past week has iniparted a `goOd tone to investment stocks generally. In the case of most Of these gilt-edged loans, however, there is undoubtedly a tendency to cut the- price rather fine, and, on the idea that the public is for the ' moment keener on loani; giving higher interest yields; the Trusts and Insurance companies are pursuing a policy of endeavouring to pick up the stocks at -a. possible _discount" after the sub- scription lists are dosed. For there isng_more strikin_g feature of present:day finance than _the enormous investing power of our financial _institutions, and especially of the Insurance companies and the Trusts. At the moment of writing it is announeed that a new Chilean Loan for £2,800,000 in 6 per cents. at-94 has been fully subscribed. -
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