Structure of Corporate External Financing

The external financing of corporations in the United States since World War II has provided about one quarter of total corporate requirements. The structure of external financing has changed importantly over these years. The proportion provided by loans at commercial banks was large in the immediate postwar period, declined in the 1950's but became very large again in the early 1960's. The proportion provided by commercial paper was nominal in the immediate postwar period, but has grown very rapidly in recent years. The proportion provided by net new bond issues has been stable at around one-half of the total, but has tended to become larger in the last three years. The proportion provided by net new stock issues ran around 25% during the 1940's and 1950's, but in the 1960's has declined rapidly and has recently become nominal. The external financing of corporations in the United States since World War II has provided about one quarter of total corporate requirements. The structure of external financing has changed importantly over these years. The proportion provided by loans at commercial banks was large in the immediate postwar period, declined in the 1950's but became very large again in the early 1960's. The proportion provided by commercial paper was nominal in the immediate postwar period, but has grown very rapidly in recent years. The proportion provided by net new bond issues has been stable at around one-half of the total, but has tended to become larger in the last three years. The proportion provided by net new stock issues ran around 25% during the 1940's and 1950's, but in the 1960's has declined rapidly and has recently become nominal.