Full text of H.16 Capital Market Developments : April 27, 1955

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Not f o r Publication DECONTROLLED AFTER SIX MONTHS
H.Ht

.

April 27, 1 9 #
CAPITAL MARKET DEVELOPMENTS

Volume of s e c u r i t y o f f e r i n g s small l a s t -week -T A r e l a t i v e l y small volume of large public i s s u e s was offered during
the week ending April 22. . Two corporate o f f e r i n g s t o t a l i n g Qj.
million d o l l a r s , State and l o c a l government issues with proceeds
of 27 million and a bond i s s u e of the Kingdom of Norway for 1$
million were f l o a t e d f o r new c a p i t a l purposes. The t o t a l of
large o f f e r i n g s scheduled f o r issuance t h i s week i s 111 million
dollars•
Bond y i e l d s - U. S. Government long-term bond y i e l d s
rose s l i g h t l y l a s t week and remained steady during the f i r s t two
days of t h i s week, Yields on corporate Aaa and State and l o c a l
government Aaa bonds did not change l a s t week.
State and l o c a l revenue bond y i e l d s decreased two
b a s i s p o i n t s j other lower-grade bond y i e l d s remained steady.
Stock p r i c e s - The SEC index of 265 common stocks
decreased . 1 point during the week ending April 22. Prices
increased during the f i r s t two days of t h i s week according t o
d a i l y indexes. Margin requirements were r a i s e d from 6.0 t o 70
per cent e f f e c t i v e April 23, 195$°
More d e t a i l e d information concerning recent c a p i t a l
market developments w i l l be found i n the attached e x h i b i t s .

Business Finance and Capital Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




EXHIBIT A

H I G H - GRADE BOHD YIELDS
Weekly

CORPORATE A

U . S . GOVERNMENT

Date

Corporate
Aaa 1/

U. S. Govt,
long-term 2/

Spread between
State and local
U. S. Govt, and
govt., Aaa y
Corporate State and
Aaa
local Aaa

(Per cent)
1952 - Hi gi
Low
1953 - High
low
1954 - High
low
1955 - High
low

3.03 (lA) 2.79
2.91 (2/15)I 2.56
3.42 (6/19)i 3.15
2.99(1/9) 2.78
3.09 (1/8) 2.74
2.85 (V23)' 2.44
3.04 (3/11) 2.77
2.91 (1/7) 2.62

March
April
April
April
April

3.01
3.01
3.01
3.01
3.01

25
1
8
15
22

2.69
2.73
2.77
2.76
2.77

(12/27)
(5/17)
(6/6)
(12/26)
(1/9)
(8/7) .
(4/22)
(1/7)

__

2.00 (10/23)
1.65 (5/1)
2.73 (6/25)
1.98 (1/8)
2.21 (6/10)
1.90 (9/2)
2.11(2/10)
2.06 (1/6)

.37
.19
.38
.19
.43
.32
.34
.24

1.02
.71
.84
.30
.61
.29
.69
.54

2.08
2.0*8
2.09
2.08
2.08

•32
.28
.24
.25
.24

.61
.65
.68
.68
.69

26 years.
2/ Weekly average of daily figures. Old series. Average term to f i r s t
call of bonds included is 13-11* years.
3/ Thursday figures. Only general obligation bonds are included; average
term is 20 years.
Note.—Highs and loirs are for individual series and may be on different
dates for different series.




L O W E R - G R A D E B O N D YIELDS
Weekly

W ' S STATE A N D LOCAL GOVT

\ r

STATE A N D LOCAL GOVT. REVENUE

1952

Date

1955

Corporate
Baa 1/

State and
local govt.
Baa V

State and
local govt,
revenue 3/

(Per cent)
3.63 (1A)
3.1,8 (5/16)
3.89 (9/18)

1952 - High
Low
1953 - High
Low
1954 - High
Low .
1955 - High
Low

a s m
3.15 (l/lk)

March 25
April 1
April 8
April 15
April 22

3.48
3.18
3-U8,
3.18
3 .U8

2.98
2.48
3.79
2.96

(10/23)
(4/17)
(6/25)
(1/8)

3.08 (4/21)
3.02 (1/6)

2.69
2.27
3.27
2.71
3.00
2.72
2.80
2.76

3.08
3.08
3.08
3.08
3.08

2.80
2.80
2.80
2.80
2.78

bgjSg!

(12/19)
(4/25)
(6/26)
(1/2)
(1/1)
(8/13)
(4/15)
(1/7)

included is 25-26 years.
2/ Thursday figures. Only general obligation bonds are
included; their average term i s 20 years.
2/ Friday figures. Average rating of bonds included is
between Baa and Aj average term i s 20 years.
Note.—Highs and lows are for individual series and may
be on different dates for different series#




EXHIBIT C

1952

1953

Stock p r i c e
index 3 /

1954

1955

Stock market c r e d i t
Customers
debit b a l - loans t o
a n c e s ^ "others" 5/

stock
volume 2 /
(millions yields 2 /
of s h a r e s ) (per cent]

( M i l l i o n s of d o l l a r s )
1952 - High
1953 - High
Low
195U - High
Low
1955 - High
- Low
February
April 8
A p r i l 15
A p r i l 22

165.3 (12/26)
151.7 (10/210
1 6 7 . 1 (1/2)

HiU.O (9/18)

221.U
156.5
233.0
217.h

(12/31)
(1/6)
(1*/15)
(1/Hi)

226.8
225.7
229.7
233.0
232.9

2.0

1,986

0.9
2.5
0.9

ii

1,332
1,211
1,665

Ili.20

IS

II

1.22
it.21

3,732
3,537

8

3.2

It .21

3,613
3,732

2,652

li

2.9
2.9

k.21

2,517

656

1
1,080
1,018
1,053

1,080
1,076
1,076

V SEC index of 265 common s t o c k s , weekly c l o s i n g p r i c e s , 1939-100;converted
t o 1917-49-100 by F e d e r a l Reserve. The conversion f a c t o r i s 1 2 3 . 9 1 .
2 / Averages of d a i l y t r a d i n g volume on t h e New York Stock Exchange.
3 / Moody's 200 common s t o c k s ; end of month f i g u r e s .
h / End of month f i g u r e s f o r member f i r m s of t h e New York Stock Exchange
which c a r r y margin a c c o u n t s ; excludes money borrowed f o r c a r r y i n g U. S. Government
obligations.
5 / Wednesday f i g u r e s f o r weekly r e p o r t i n g member b a n k s . Excludes a l l l o a n s
on U. S . Governments f o r 1952; s i n c e 1953 only l o a n s secured b y Governments a t
.banks i n New York arid Chicago a r e e x c l u d e d . Weekly r e p o r t i n g banks account f o r
about 72 per c e n t of l o a n s t o o t h e r s .
n.a.—Not available.
Note.—Hi$18 and lews a r e f o r i n d i v i d u a l s e r i e s and may b e on d i f f e r e n t
dates for different s e r i e s .




Exhibit D

H.1U

Corporate and S t a t e and Local Government
S e c u r i t y O f f e r i n g s and Placements
( I n m i l l i o n s of d o l l a r s )

195!>
January
February
March .
April
May
June

New c a p i t a l
1

-L9W

e/486
e/350
2/l,220

.544
439
660

623
623
666

e/^00

486
652
859

779
675
1,123

898
346
776

483
325
753

July
August
September
October
November
December
1st quarter
2nd q u a r t e r
3rd q u a r t e r
4th q u a r t e r
Year

Corporate
1 mu

e/2,0#
.

1,008
298
592

577
429, !
1,438V

1,613
1,998
2,021
1,899
7,561

1,912
2,570

19bb
535
e / ^
e/^5

-

Vl,385:

2:4441/
8,495

S t a t e and l o c a l
1
W
1

1953

396
411
565

389
360
426

734
748
853

329
649
434

279
261
649

519
259
475

594
423
877

453
408
774

1,372
2,334
ljl88
1,894
6,789

1,176
1,412
1,253
1,636
5,477

Excluding f i n a n c e companies 2/
1st quarter
2nd q u a r t e r
3rd q u a r t e r
Uth q u a r t e r
Year

e/l.,655

1,562
1,931
1,941
1,795
7,229

1,669
1,921
1,223
2,344
7,227

2 / 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 s a l e s and personal f i n a n c e
companies.
e / Estimated.
.
Note. - D e t a i l s may not add t o t o t a l s due t o rounding.




H.l1*

Exhibit E
Large Public S e c u r i t y I s s u e s f o r New Capital
(Other than U . S . Treasury) 1 /
Proceeds of Large. I s s u e s Offered
(Millions of d o l l a r s )

'

Month

Corporate

1951* - March
'April
- Hay

S t a t e and
l o c a l government

160
169
321*
350
336
75
335
1*13
0
9h
11*1
- 72
750

July
August
September
October
November
December
1955 - January
February
Uarch ,

Other 2 /

378
557
557
603
92
86
1*55
388
268
689
31*1
101
337

50

30
35
—

Large I n d i v i d u a l Issues Offered April 1 through 22
-

Issuer
.

-Type 3 /

Amount
(millions
Maturity
of
dollars)

Coupon
net inter
e s t cost

Offering
Rating
yield

CORPORATE

National Gypsum
General Dynamics Corp.
T e hnessee Gas Transmission
Fruehauf T r a i l e r Co.
Philadelphia Electric
P a c i f i c "Lighting
STATE AND LOCAL GOVERNMENT

Common s t k . 18.6
Conv. deb. 1*0.0
Deb.
25.0
Conv. deb. 15.0
1st & ref,bds20.0
Common s t k . 2l*.0

San Francisco, C a l .
D e t r o i t , Michigan
Los A n g e l e s , C a l .

Public Housing Auth.
San Diego County, Cal.
L o u i s v i l l e , Kentucky
Calcasieu P a r i s h , La.
Henderson, Kentucky

G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.

6.9
11.1*
9.2
112.0
8.1*
7.5 '
-5.5
• 5.1*

3 1/2
1*
3 3/1*
3 1/8

1975
1975
1975
1985

1956-70
1956-85
1956-75
1956-95
1956-75 . .
1956-95 W
1956-85
1957-85

1.81
2.51*
2.11*
2.1*2
2.21
2.22
2.99
2.89

1958-65

3 5/8h l / h 3.63-1*.25

OTHER
Kingdom of-Norway




Bonds

15.0

2.72
3.91
3.57
3.12

'

0.90-1.95
1.10-2.70
1.00-2.30
1.00-2.55
1.15-2.35
0.75-2.1*0
1.20-3.00
1.1*5-2-.95

Baa
Baa
Ba
Aaa

Aa
A
Aa
A
Aa
Baa
Baa

H.lk

E-2

3 / Includes corporate and other s e c u r i t y o f f e r i n g s of l £ m i l l i o n d o l l a r s and over; S t a t e and l o c a l government s e c u r i t y o f f e r ings of $ m i l l i o n and over.
2 / Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r .
Reconstruction and Development issues#
. 3 / In the case of S t a t e and l o c a l government s e c u r i t i e s , G.O,
denotes general o b l i g a t i o n ; Rev., revenue bonds; G.R., general obl i g a t i o n s a d d i t i o n a l l y secured by f a c i l i t i e s revenues; and, L . L . ,
l i m i t e d l i a b i l i t y o b l i g a t i o n s secured by pledge of designated r e v enues.
k / Bonds maturing 1993-95 not p u b l i c l y r e o f f e r e d .

%




Holit

Exhibit F
Forthcoming Large Public S e c u r i t y Offerings f o r New C a p i t a l
(Other t h a n U . S . Treasury) 1/
Expected Proceeds from Forthcoming Large I s s u e s
During month following
date shown
S t a t e and
Corporate l o c a l g o v t . Other 2 /

Date .of
computation
l i a r . 31
Apr. 30
Hay 28
June 30
J u l y 30
Aug. 31
S e p t , 30
Oct. 29
Nov. 30
Dec. 31
J a n . 31
Feb. 28
Mar. 31

20U
323
332
336
100
33U
3U3
15
9k
iQk
16
710
211 .

2#
#6
86
$k
300
383
k36
661
5:67
692
&k
208

27

Subsequent t o
date shown
S t a t e and
Corporate l o c a l govt. Other 2 /
555
61*7
#6
#2.

%

30

—

608
klk
135
2k6
216
k22
1,395
922

2,789
.2,322
1,971
l,&k
1,553
1,876
2,158
1,957
2,682
2,114+
1,961
1,978
2,009

—

27

'

30
30
35
•

—

Forthcoming Large O f f e r i n g s , a s of A p r i l 22
Issuer

Transcontinental Gas Pipe Line
P a c i f i c Northwest P i p e l i n e
Southern C a l i f o r n i a Gas Co.
Public Service of I n d i a n a , I n c .
•American Trust Co.
Ohio Edison Co.
Bethlehem S t e e l Co.
Alabama Power .
•^Southern C a l i f o r n i a Edison
*1V. R. Grace
Consolidated Natural Gas
American Telephone and Telegraph

Type

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

P f d . stock
15.0
Interim notes «
17.2
Bonds
1+0.0
P f d . stock
21.3
Common stock
19.5
1 s t Il t g . bonds
30.0
Conv,, deb .
191.7
1 s t mtg. bonds
15.0
Conv,, deb.
ltl.0
Conv,, sub. deb.
30.0
Common stock
2k.k
Conv,, deb.
, 650,9

A p r i l 27
A p r i l 28
April
May 9
Lay 10
Hay 17
May 23
lay2k
May
May
June
, 1955

STATE AND -LOCAL GOVERNMENT
W i c h i t a , Kansas
Lincoln, Nebraska
S t a t e of C a l i f o r n i a




G. 0.
G. 0.
G. 0 .

7.1*'
10.0
30.0

A p r i l 26
A p r i l 26
. A p r i l 27

H»1k

F-2
Forthcoming Large O f f e r i n g s , as of A p r i l 22 (Cont'd)
Issuer

Type

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

STATE AMD L0C.;L GOVERNMENT (Cont'd)
P h i l a d e l p h i a , Pennsylvania
*Dallas, Texas
Shreeveport, Louisiana
Wash Tp.
Marion Co., Indiana
C i n c i n n a t i , Ohio
*0akdale, C a l i f o r n i a
*5outh San Joaquin, C a l i f o r n i a
-^Louisiana S t a t e Building Authority
^Memphis, Tennessee
F l o r i d a S t a t e Turnpike Authority
Inter-American Center Auth., F l a .
Michigan Turnpike Authority
S t a t e of Louisiana
I l l i n o i s Turnpike Authority
Connecticut Expressway
Texas Turnpike Authority
Sam Houston Turnpike Corp.
Texas Turnpike Company
Dade County Port A u t h o r i t y , F l a .
Springfield, I l l i n o i s
Allegheny County, Pennsylvania
S a n i t a r y Authority
C a l i f o r n i a To ll Bridge Authority
J e r s e y City Sewerage Auth., N.J.
North Carolina Turnpike Authority
.
None^

•

G.O.
G.O.
G.O.-Rev.
Rev.
n.a.
n.a.
n.a.
L.L.
n.a.
Rev.
Rev.
, Rev.
n*a.
Rev,
Rev. •
Rev.
Rev.
Rev.
Rev.
n.a.

12,0
10.0
10.0
6.8
19.7
20.8
20.8
9.9
5.8
7k.0
60.0
186.0
80.0
390.0
100.0
28.5
146.0
liiO.O
21.0
9.0

Rev,
Rev. '
Rev.
n.a.

85.0
235.0
16.0
200.0

.

A p r i l 27
April 2 7
A p r i l 28
I.Iay U
Hay 10
May 10
Hay 10
Hay 12
Hay 17
Spring
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955

OTHER
.

1 / Included corporate and other i s s u e s of 15 m i l l i o n d o l l a r s and over; S t a t e
and l o c a l government i s s u e s of 5 m i l l i o n and over.
. 2 / Includes f o r e i g n government and I n t e r n a t i o n a l Bank f o r Reconstruction and
Development i s s u e s .
n.a.—Hot a v a i l a b l e .
*—Included i n t a b l e f o r f i r s t t i m e .