Full text of H.16 Capital Market Developments : August 10, 1955

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Not f o r P u b l i c a t i o n
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H.lli

August 1 0 , 1955
CAPITAL IIARKET DEVELOPMENTS

Nevf c a p i t a l volume s m a l l l a s t week - One l a r g e S t a t e and
l o c a l government bond i s s u e w i t h p r o c e e d s of 15 m i l l i o n d o l l a r s was
s o l d l a s t week and s u b s c r i p t i o n r i g h t s f o r a 17 m i l l i o n common s t o c k
i s s u e e x p i r e d e No b i d s were r e c e i v e d f o r a 8 m i l l i o n d o l l a r S t a t e
and l o c a l government o f f e r i n g .
Two l a r g e S t a t e and l o c a l government bond i s s u e s w i t h p r o ceeds o f 13 m i l l i o n d o l l a r s a r e s c h e d u l e d f o r s a l e t h i s week and
s u b s c r i p t i o n r i g h t s f o r two common s t o c k i s s u e s t o t a l i n g 66 m i l l i o n
e x p i r e t h i s week.
•
• <
Bond y i e l d s - Y i e l d s on o u t s t a n d i n g A a a - r a t e d c o r p o r a t e
and S t a t e and l o c a l government bonds r o s e two b a s i s p o i n t s l a s t
week* Long-term U. S . Government bond y i e l d s were u n c h a n g e d .
Y i e l d s on B a a - r a t e d c o r p o r a t e and S t a t e and l o c a l government bonds
r o s e two and t h r e e b a s i s p o i n t s , r e s p e c t i v e l y , w h i l e y i e l d s on r e v enue bonds were s t a b l e .
S t o c k p r i c e s d e c l i n e - Common s t o c k p r i c e s , , a s measured
by t h e SEC i n d e x of 265 s t o c k s , d e c l i n e d 5*2 p o i n t s d u r i n g t h e week
e n d i n g August 5 , t h e s h a r p e s t drop f o r t h i s i n d e x s i n c e March. D a i l y
i n d e x e s i n d i c a t e a f u r t h e r s h a r p d e c l i n e i n p r i c e s t h r o u g h Tuesday
of t h i s w e e k .
Y i e l d s on Moody's 200 common s t o c k s d e c l i n e d f u r t h e r d u r i n g J u l y ; a t t h e end of t h e month, when s t o c k p r i c e s were somewhat
h i g h e r t h a n c u r r e n t l y , t h e a v e r a g e y i e l d was 3*78 per c e n t , about
•
70 b a s i s p o i n t s h i g h e r t h a n t h e y i e l d on h i g h - g r a d e c o r p o r a t e b o n d s .
More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g r e c e n t c a p i t a l m a r k e t developments w i l l be found i n t h e a t t a c h e d e x h i b i t s .

B u s i n e s s F i n a n c e and C a p i t a l Markets S e c t i o n ,
D i v i s i o n of R e s e a r c h and S t a t i s t i c s ,
Board of Governors of t h e F e d e r a l R e s e r v e System.




• G R A D E BOND YIELDS
Weekly

Per c e n t p e r

CORPORATE A

U. S. GOVERNMENT

STATE AND LOCAL
GOVERNMENT A a a

-

Date

,

Corporate
Aaa 1/

1 U. s,. w-cvt.
i Ion.;--term 2 /

and l o c a l
. , Aaa 2 /

Spread between
V. S. Govt, and
Corporate State and
l o c a l Aaa

(Per cent)
1952 - H i #

1955 - High
Low

3.03
2.91
3.42
2.99
3.09
2.85
3.09
2.91

July 8
July 15
July-22
July 29
August 5

3.05
3.05
3.05
3.07
3.09

1953 - High
Low
1951 - High

d/4)
(2/15)
(6/19)
(V9)
(1/8)
(4/23)
(8/5)
(1/7)

2.79
2.56
3.15
2.78
• 2.74
2.44
2.94
2.62
2.82
2.83
2.90
2.94
2.94

(12/27)
(5/17)
(6/6)
(12/26)
(V9)
(8/7)
(6/5)
(1/7)

2.00
"1.65
2.73
1.96
2.21
1.90
2.29
2.05
2.19
2.23
2.24
2.27
2.29

(10/23)
(5/D
(6/25)
(1/8)
(6/10)
(9/2)
(8/4)
(5/26)

.37
.19
.38
.19
.43
.32
.34
.13

1.02
.71
.84
.30
.61
.29
.70
.54

.23

.63
.60
.66
.67
.65

.15
.13
.15

1/ 7/eekly average of daily f i g u r e s . Average term of bonds included i s 25-26
years.
=
2 / V/eekly average of d a i l y f i g u r e s ; , old s e r i e s . Aver are term to f i r s t c a l l
cf bonds incl-udea i s 13-14 years.
3 / Thursday f i g u r e s . Only general obligation bonis are included; averare
term i s 20 years.
; ; o t e i i i n n s and lcr.?s are for individual series and .T.ay be cn d i f f e r e n t dates
for d i f f e r e n t s e r i e s .




•

L O W E R - G R A D E BOND YIELDS
Weekly
CORPORATE

vtnxu
\ STATE AND LOCAL GOVT. Ba '

State and
l o c a l ,-cvt.
Baa 2 /

State and
l o c a l r-ovt.
rev. 3/

(Per cent)
1952 - H i p h
1553 - High •
Low
195k - High
195? - High
July 8
July 15
July 22
July 29
August 5

2.69
2.27
3.27
2.71

(12/19)
(k/25)
(6/26)
(1/2)

3.63 (1/k)
3.1,8 (5/16)
3.89 (9/18)
3.^0(1/2)
3.7k (1/5)
3 . a (12/31)
3.55(8/5)
3.,:5(l/lk).

2.98 (10/23)
2.18 ( k / 1 7 ) 3.79 (6/25)
2 . 9 6 (1/8)
3.32(1/7)
2.93(8/5)
3.21' (8/k)
3.02(1/6)

2.72 (8/13)
2.90 ( 8 / 5 )
2.76 (1/7)

3.51
3.52
3.52
3.53
3.55

3.1a3.17
3.17
3.18.
3.21.

2.8k
2.8k
2.87
2.90
2.90

.

3.00 (1/1)

• •: 1/ Vfeekly average of daily f i g u r e s . Av^ra^e~Terir™oF~bonds
included i s 25-26 years.
2 / Thursday f i g u r e s . Only general obligation bonds are
included; average term i s 20 years.
3 / Friday f i g u r e s . Averare rating of bonds included i s
between Baa and A; average term i s 20 years. t.'ote.—Hichs and lews are for individual s e r i e s and may
be on d i f f e r e n t aates for d i f f e r e n t s e r i e s .




STOCK MARKET

Date

Stock p r i c e
index 1 /

Conmon
Trading
Stock market customer c r e d i t
Customers'
volume 2 /
Total debit b a l - loans to
(millions yields 3/
of s h a r e s ) (per c e n t ) .
"others" 5/
( M i l l i o n s of d o l l a r s )

1952 - High
1953 - High
195k - High
1955 •? High

Urn

June
July
J u l y 15
J u l y 22
J u l y 29
August 5

165.3
151.7
167.1
lhk.O
221.it
156.5
259.9
217. h

(12/26)
(10/2/0
(1/2)
(9/18)
(12/31)
(1/6)
(7/29)
(1M)

2W.5
257.3
256.8
259.1
259.9
254.7

2.0
0.9
2.5
0.9
3.7

l.h

14.6
2.0
2.7
2.ii
2.3
2.3
2.2
2.1

-

5.77
5.13
5.75
5.15
5.33
it .20
ii .22
3.78

1,986
1,80k
2MS
2,o$5
3,k36
2,ii05
3,872
3,537

3.87
3.78

3,872

2,712

n.a.

n.a.

n.a.

1,332
l,2iil '
1,665
•l,3Ht
2,388
1,653
2,712
2,517

656
552
780
66it
1,018

7h6

1,177
1,018

1,160
1,177
1,169
1,17k
1,177
n.a.

n . a . Not a v a i l a b l e .
X/ SEC index of 26$ commcn 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 19u7-it9-100 by F e d e r a l Reserve. The conversion f a c t o r i s 123.91.
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 .
k / End of month f i g u r e s f o r member f i r m s of the New York Stock Exchange which
c a r r y margin accounts; excludes b a l a n c e s secured by U. S . Government o b l i g a t i o n s .
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
. f o r purchasing or c a r r y i n g U. S . Governments f o r 1952; s i n c e 1953 only t h e s e l o a n s
a t banks i n New York and Chicago a r e excluded. V/eekly r e p o r t i n g banks account f o r
about 72 per c e n t of loans t o o t h e r s .
• Note.—Highs and lows a r e 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
for different series.




<
H.14

Exhibit D

.

C o r p o r a t e and S t a t e a n d 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 )
Ne\, c a p i t a l
1952
January
February
March

246
436
1,261

April
May
June

e/500
c/900
e/o75

July
August
September

e/liOO
2/650

Coreorate
1
1954
1

1953

1955

126
632

623
623
666

2#
312
538

# 6
842

779
672
1,123

fa,

909
332
747

483
322
723

Ski
• k97

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

1,003
290

>27

6/460
e/300

1,608
1,995
1,991
1,896
7,490

.

,

1953

396
411
262

390
360.
426

734
748
853

329
649
434

279
261
649

219
229
472

577
42? 1 /
1,438

.294
423
877

1,912
1:382
e/1,402
2,278
1,261 , ,
2,444 y
8,492

1,372
2,334
1,188
1,894
6,789

.60k' • y

2,243
e/2,075

S t a t e and l o c a l
1
1954
1

;

423
4o8
774
1,176
1,412
1,223
1,636
2,477

Excluding f i n a n c e companies 2 /
1st quarter
2nd q u a r t e r
3rd quarter
4th quarter
Year

1,791
e/2,000

.

1,227
1,927
1,911
1,792
7,128

1,669
1,991
1,223
2,344
7,227

3 / I n c l u d e s 6 0 2 . 5 m i l l i o n d o l l a r AT&T d e b e n t u r e i s s u e .
2 / T o t a l new c a p i t a l i s s u e s e x c l u d i n g o f f e r i n g s of s a l e s a n d p e r s o n a l f i n a n c e
companies.
e/ Estimated.
N o t e . — D e t a i l s may n o t add t o t o t a l s due t o r o u n d i n g .




H.l4

Exhibit E
Large P u b l i c S e c u r i t y I s s u e s f o r New C a p i t a l
(Other t h a n U. S . T r e a s u r y ) 1/
P r o c e e d s of Large I s s u e s O f f e r e d
( M i l l i o n s of d o l l a r s )

Month

Corporate

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

Other 2 /

'

1954 - J u l y
August
September
October
November
December
1955 - J a n u a r y
February
March
April
May

illl
75
361*
433
0
121
mi.
63
750
175
433
182
- 101

July

92
66
455
368
268
689
341
107
337
238
152
409
278

.

30
35
15

—

Large I n d i v i d u a l I s s u e s O f f e r e d August 1 t h r o u g h 5

Issuer

Type 3 /

Amount
Coupon
( m i l l i o n s m t u r i t y r a t e or
Offering
-Of
net i n t e r yield
dollars)
est cost

Rating

CORPORATE
Consumer Power

Common s t k .

16.9

Rev.

14.5

STATE AND .LCCAL GOVERNMENT
M o b i l e , Alabama

1995

3.80

3.70

Ba

OTHER
None
over E 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 i n g s of 5 m i l l i o n a n d over#
2 / I n c l u d e s 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 R e c o n s t r u c t i o n and
Development i s s u e s o
3 / I n t h e c a s e 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. d e n o t e s gene r a l o b l i g a t i o n j R e v . , r e v e n u e b o n d s j G.Ro, g e n e r a l o b l 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
p l e d g e of d e s i g n a t e d r e v e n u e s .
forbyFRASER

Digitized


i
H.l4

Exhibit F
Forthcoming Large P u b l i c 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
(Other t h a n U. S . T r e a s u r y ) 1 /
E x p e c t e d P r o c e e d s f r o m Forthcoming Large I s s u e s

Date of
computation
1954 - J u l y 30
Aug. 3 1
S e p t . 30
O c t . 29
Nov. 30
Dec. 31
1955 - J a n . 3 1
F e b , 28
Mar. 3 1
Apr. 29
May 3 1
June 30
J u l y 29

During month f o l l o w i n g
d a t e shown
S t a t e and Other 2 /
Corporate
local govt.
100
334
343
15
94

m

16
710
211
425
160
67
1*07

54
300
383
436
661
567
682
524
208
116
339
344
100

30

Subsequent t o
date sham
S t a t e and Other 2 /
Corporate
local govt,
303
6o8
414
. 135
.246
216
422
1,395
922
1,141
850
830
1,135

1,553
1,876
2,158
1,957
2,682
2,144
1,961
1,978
2,009
1,917
1,861
1,845
2,018

30
30
35

Forthcoming Large O f f e r i n g s , as of August 5
Type

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

CORPORATE
Goodyear T i r e and Rubber
. r " e s t e r n Union T e l e g r a p h
- G e n e r a l Motors Acceptance Corp.
American N a t u r a l Gas
P a c i f i c Telephone and T e l e g r a p h
S t . Louis-San F r a n c i s c o Railway
Utah Power and L i g h t
American Telephone and T e l e g r a p h
S o u t h e r n C a l i f o r n i a Gas
Freedom I n s u r a n c e Company

Common s t o c k
Common s t o c k
Deb.
Common s t o c k
Deb.
1 s t mtg. b d s .
1 s t mtg. b d s .
Conv. d e b .
Bonds
Common s t o c k

#.6
20.7
200.0
32.7

67.0

19*2
15 eO
650.9
UOvO
22.0

August 8
August 8
August 17
August 23
August 23
August 2b
September 13
1955
1955
1955

STATE AND LOCAL GOVERNMENT
F a i r f a x County, V i r g i n i a
S p r i n g f i e l d , Ohio
Cook County, I l l i n o i s
•HAmarillo, Texas
Los A n g e l e s , C a l i f o r n i a




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

7.1
5.8
itO.O
. 5.2

18.0

August
August
August
August
August

10
11
16
17
21

HUb

F-2
Forthcoming Large O f f e r i n g s , a s of August 5 ( C o n t ' d )
Issuer

Type .

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

STATE AND LOCAL GOVERNMENT ( C o n t ' d )
-xDuval C o u n t y , F l o r i d a
^ F l o r i d a S t a t e Board of E d u c a t i o n
Los A n g e l e s , C a l i f o r n i a
Chicago, I l l i n o i s , B d . of E d u c a t i o n
•^Denver, Colorado
R i c h m o n d - P e t e r s b u r g Turnpike A u t h .
C o n n e c t i c u t Expressway
Inter-American Center A u t h . , F l a .
Michigan Turnpike A u t h o r i t y
S t a t e of L o u i s i a n a
I l l i n o i s Turnpike A u t h o r i t y
Texas Turnpike CompanyC a l i f o r n i a T o l l Bridge Authority
L o u i s i a n a Turnpike Coinnission
. C a l i f o r n i a T o l l Bridge A u t h o r i t y
Nevr York S t a t e Thrmvay A u t h o r i t y
Oklahoma Turnpike A u t h o r i t y
Washington S t a t e T o l l B r i d g e A u t h .

n.a.
Rev.
Go0»
G.O.
Rev.
Rev.
Rev. ,
Rev,
nca.
Rev.
Rerv.
Rev.
Rev.
Rev.
G.R.
Rev.
Rev.

8o0
10.6
12 cO
12 o5
67 oS
100,0
25.0
186,0
80.0
390.0
lk0,0
235.0
100.0
13,0
125,0
llt6„0
227.0

August 22
August 23
August 23
August 2k
August 30
September
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1956

OTHER
None
1 / I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of 15 m i l l i o n d o l l a r s and over3 S t a t e
and l o c a l government i s s u e s cf 5 m i l l i o n and o v e r .
__
2 / I n c l u d e s f o r e i g i government a n d I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and
Development i s s u e s .
n.a»--Not a v a i l a b l e .
.
Included i n table f o r f i r s t time.