Full text of H.16 Capital Market Developments : August 11, 1958

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Mot for Publication B E C 0 1 , T H 0 1 J | E D . a f t e r s i x MONTHS

H.lii

August 11, 1956.
CAPITAL MARKET DEVELOPMENTS

The volume of p u b l i c s e c u r i t y f i n a n c i n g c o n t i n u e s t o be moderate.
During t h e week ending August 8, two S t a t e and l o c a l government i s s u e s
amounting t o $33 m i l l i o n were t h e o n l y l a r g e o f f e r i n g s . The c a l e n d a r f o r
t h i s week i n c l u d e s c o r p o r a t e 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 i n g $101 m i l l i o n ; no l a r g e S t a t e and l o c a l government i s s u e s "are scheduled f o r s a l e .
Bond y i e l d s - Y i e l d s i n c r e a s e d s u b s t a n t i a l l y l a s t week f o r a l l
c a t e g o r i e s of o u t s t a n d i n g bonds. ' A l l types' of bond y i e l d s , except t h o s e
f o r c o r p o r a t e B a a - r a t e d bonds, reached new h i g h s f o r t h e y e a r .
Stock p r i c e s - Stock p r i c e s d e c l i n e d on Monday and Tuesday
of l a s t week a f t e r margin r e q u i r e m e n t s were i n c r e a s e d , but more than r e covered t h e s e l o s s e s t h e l a t t e r p a r t of t h e week. Standard and P o o r ' s
index of 500 common s t o c k s i n c r e a s e d .56 p o i n t s d u r i n g t h e week, c l o s i n g
a t 48.05 on August 8. P r i c e s a r e now only 2 p e r c e n t below t h e J u l y 1957
peak. Trading a c t i v i t y continued t o be heavy.
More d e t a i l e d i n f o r m a t i o n concerning r e c e n t c a p i t a l market
developments i s p r e s e n t e d i n t h e a t t a c h e d e x h i b i t s .

C a p i t a l Markets S e c t i o n ,
D i v i s i o n of Research 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 Reserve System.




HIGH-GRADE BOND YIELDS
W..Hy

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




CORPORATE Boo

./—STATE AND LOCAL GOVT. Baa.

H.ll

Exhibit B
Tables f o r Exhibit A
High r grade Bond Yields

Date

Corporate
Aaa 1 /

U. S. Govt,
long-term 2/

1953
-ii$k
1957
1958

- High
- Low
- High
-High
Low

3-U2
2.85
it.lU
3.77
3.55

3.19
2.L5
3.76
3.53
3.07

July
July
July
Aug.
Aug.

11
18 25
1
8 2/

3.63
3.67
3.70
3.71
3.77

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

S t a t e and
l o c a l govt.
Aaa y

(Per cent)
(6/19)
(Ii/23)
(9/27)
(8/8)
(5/2)

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

2.73
1.90
3.45
2.91
2.6k

(6/25)
(9/2)
(8/29)
(8/7)
(.5/1)

2.78
2.78
2.78
2.81*
2.91

3.31
3.39
3.38

3.a

3.53

.38
.30
.60
.51
.2k

.83
.30
•U7
.62
'3k

.32
.28
.32
.27
.2k

.52
.62
.60
.60
.62

Lower-grade Bond Yields

Date

Corporate
Baa 1/

S t a t e and
l o c a l govt.
Ba a y

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

(Per cent)
1953
19514
1957
1958

-High
- Low
- High
- High
Low

3.89
3.Wi
5.10
U.96
1.51

July
July
July
Aug.
Aug.

11
18
25
1
8 2/

ii.51
ii.52
K55
L56
L60

(9/18)
(12/31)
(11/29)
(1/3)
(7/11)

3.79
2.93
k.Sl
3.92
3.6U
3.85
3.83
3 82
3.83
3.92

(6/25)
(8/5)
(8/29)
(8/7)
(5/1)

.69
.52
1.27
1.28
.83

1.21
.96
1.21
1.11
.99

.88
.85
.85
.85
.83

1.07
1.05
l.Oii
.99
1.01

2 / Preliminary.
1 / Weekly average of d a i l y f i g u r e s . Average term of bonds included i s 25-26 y e a r s .
2 / Weekly average of d a i l y f i g u r e s . The s e r i e s includes bonds due or c a l l a b l e in
10 y e a r s or more.
2 / Thursday f i g u r e s . Only general o b l i g a t i o n s bonds are included; average term
id 20 y e a r s .
Note.—Highs and lows a r e f o r individual s e r i e s and may be on d i f f e r e n t , dates f o r
different series.




STOCK MARKET




Exhibit D
Table f o r E x h i b i t C
Stock Market

Date

Stock p r i c e
index 1 /

Trading
Common
volume 2 /
stock
yields V
(millions
of s h a r e s ) ( p e r c e n t )

Stock market customer c r e d i t
Customers'
Bank
debit b a l - loans t o
ancea 1*/ " o t h e r s " 5 /
( M i l l i o n s of d o l l a r s )

1953 - High
Low
1951* - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low
1958 - High
Low
July
J u l y 25
Aug. 1
Aug. 8 e /

26.5k d / 2 )
22.95 ( 9 / 1 8 )
35.98 (12/31)
21.93 (1/8)
15.89
35.28

II;

2.5
0.9
3.7
1.1*

1*.6

5.*82
1*.08
1*.1*1

1*9.08 ( 7 / 1 2 )
39.U8 (12/20)
1*8.05 (8/8)
1*0.37 (1/10)

1.5
3.1
1.5
1*.2
1.1*
3.8
1.7

l*.3t*
3.91
U.72
3.71*
li.58

1*1*. 75
1*5.98
1*6.97
1*7.1*9
1*8.05

2.7
3.2
3.7
3.8
3.7

1*.07
3.97
3.88
3.81
3.71*

1*9.61*
1*3.22

3.82

2,1*55
2,055
3,1*36
2,1*05
1*,030
3,537
l*,0l*7
3,911*
1*,031
3,576
1*,226
3,551*

1,665
1,311*
2,388
1,653
2,805
2,517
2,823
2,71*0
2,887
2,1*82
2,929
2,1*87

780
661*
l,0l*8
71*6
1,21*1
1,018
1,267
1,155
1,163
1,051*
1,317
1,051

1*,226
n.a.
n.a.
n.a.

2,929

1,297
1,231
1,251
1,231
n.a.

n.a.—Not available*
p / Preliminary.
1/ Standard and Poor 1 s composite index of 500 common s t o c k s , weekly c l o s i n g
p r i c e s , 191*1-1*3=10. Monthly d a t a a r e averages of d a i l y f i g u r e s r a t h e r than of
F r i d a y s ' only. Highs and lows a r e f o r F r i d a y ' s data o n l y .
2 / Averages of d a i l y t r a d i n g volume on t h e New York Stock Exchange.
2 / Standard and P o o r ' s composite s t o c k y i e l d based on Wednesday d a t a conv e r t e d t o weekly c l o s i n g p r i c e s by F e d e r a l Reserve. Yields shown a r e f o r d a t e s
on which p r i c e index reached i t s high o r low.
1*/ 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 i y margin a c c o u n t s ; excludes balances secured by U. S. Government o b l i g a t i o n s .
£ / Wednesday f i g u r e s f o r weekly r e p o r t i n g member banks. Excludes l o a n s f o r
purchasing or c a r r y i n g U. S. Government s e c u r i t i e s a t banks i n New York and
Chicago. Weekly r e p o r t i n g banks account f o r about 70 p e r c e n t of l o a n s t o o t h e r s .
For f u r t h e r d e t a i l see B u l l e t i n .
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.




Exhibit E

H.lk

Long-term 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 )

1958
January
February
March

1,060
1,065
1,320

573
712
817

's§

7k2
572
506

kok
696
390

; s
1,453

818
l,lli6
8kl

798
873
5k2

765
5k6
393

378
k90
735

1,003
92k
973

1,063
65k
838

2/627
e/300

529
58k
k31

ko8
206
357

1,090
789
1,076

1 , ^
• 1,088

.698
633
698

639
3k7
k09

3,135
e/2,518

3,kk5
3,lk9
2,899
2,951

2,102
2,805
2,556
2,922

e/5,683

6,59k
9,k93
12,kk7

1,907
7,163
10,38k

723

April
May
1/800
July
August
September

e/1,150
e/600

October
November
December
1st
2nd
3rd
kth

quarter
quarter
quarter
quarter

1st half
Three q u a r t e r s
Year

New c a p i t a l
Corporate 1 /
S t a t e and l o c a l 2 /
1
1956
1
1956
1957
1958
1
1957
812

.

2,276
2,213

1,820
1,70k
l,5kk
2,029

l,k90 •
1,603
971
1,395

k,k89

3,52k
5,069
7,099

k,06k
5,k59

Excluding f i n a n c e companies
1st
2nd
3rd
kth

quarter
quarter
quarter
quarter

2,89it '
e/2,k98

Year

3,237
2,889
2,582
2,810

1,6U7
2,5kl
2,216
2,826

11,519

9,260

e / Estimated.
w
3 / S e c u r i t i e s and Exchange Commission e s t i m a t e s of n e t proceeds.
2 / Data through June 1956 a r e Bond Buyer data c l a s s i f i e d as new c a p i t a l by
Federal Reserve; l a t e r data a r e from t h e Investment Bankers Association of America
and a r e somewhat more complete a s t o coverage than t h e e a r l i e r d a t a , p a r t i c u l a r l y
f o r F e d e r a l Government l o a n s .
3/ Includes $718.3 m i l l i o n AT&T c o n v e r t i b l e debenture i s s u e .
k/ Includes $571.5 m i l l i o n AT&T common stock i s s u e .
cy T o t a l 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 consumer f i n a n c e
companies




Exhibit F

II. Ill

Other Security Offerings 1 /
(In millions of d o l l a r s )
Long-term
Foreign government 2/
Federal agency 3/
1958
1958
1 1957
1
1957
1 1956
January
February
March

196
53

81*
1*9
30

April
May
June

139
197

123
1*8
1*2

.

37
8

—

—

523

125

60

60

—

95

28
7
30

2
39

October
November
December

1*
60
1

a

Tear.

1,163
251

50

July
August
September

507

April
May
June

233
1*60
273

326
U55
11*7

357
351*
E/f26i

205
337
153

July
August
September
October
November
December
Year
~

-

109

• 215

—

5
21

100
—

—

300

572

169

Short-term
State and l o c a l government h /
January
February
March

1956

72

Federal agency 3/

196
- 357
21*9

371
208
u*u

638
1*30
505

380
220
283

125
252
176

209
161
329

336
1*69
501

323
31h
260

272
272
252

195
207
179

22l*
370
512

222
1*25
273

1*59

29h
328
ll*8

1,238
255
116

1*07
222
128

3,27k

2,706

5,51*3 '

3,^57

e / kstimated.
jo/ Preliminary.
1/ Data presented i n t h i s exhibit d i f f e r from those in Exhibit E in that refunding i s s u e s , as well as new c a p i t a l i s s u e s , are included. Long-term s e c u r i t i e s are defined as those maturing in more than one year.
* 2 / Includes s e c u r i t i e s offered in the United States by f o r e i g n governments and
t h e i r subdivisions and by i n t e r n a t i o n a l organizations. Sources Securities and Exchange Commission.
2 / Issues not guaranteed by the U. S. Government. Source: long-term, S e c u r i t i e s
and Exchange Commission; .short-term, Federal Reserve.
h / Principally t a x and bond anticipation notes, warrants or c e r t i f i c a t e s and Public

Housing
Authority notes. In some instances PHA notes included may have a somewhat
longer
term than one y e a r . Source: Bond buyer.
http://fraser.stlouisfed.org/

Federal Reserve Bank of St. Louis

I
Exhibit G

H.lh

Large Long-terra Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large Issues Offered
(Millions of d o l l a r s )
Corporate

Month

1957 - J u l y
August
September
October
November
December
1958 - January
February
March
April
May

5#
526
537
57 k
1*20
399
318
605
1,093
725
356
281
771

July

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

Other 2/

221*
266
133
393
3hh
1*01*
1*10
553
182
300
505
195
275

25
21*5
1 Sh
1,357
266
653
16U
86
1*1

Large Individual Issues Offered August 1 through 8
•

issuer

•type 1/

Coupon
Amount
Offering
( m i l l i o n s Maturity
Rating
n
e
t inter- yield
of
x
dollars)
e s t cost

CORPORATE
None
STATE AND LOCAL GOVERNMENT
Philadelphia Sch. Dist.,Pa.
G.O.
Georgia Rural Rds. Auth.
Rev.-Rent.

12.0
21.0

1960-83
3.28
1960-79/68 3.72

1.1*0-1*. 00 A
1.70-3.70 A

OTHER

1/ Includes corporate and o t h e r s e c u r i t y o f f e r i n g s of *15 million and over;
State 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 -J10 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 and non-guaranteed i s s u e s by Federal agencies.
2 / 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 s ; Rev.-Ut., revenue o b l i g a t i o n s secured only by income from public u t i l i t i e s ; Rev.-Q.Ut., revenue bonds secured only by revenue of q u a 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 t a x e s only; Rev.-Rent.,revenue bonds
secured solely by l e a s e payments.




H.lU
Forthcoming Large Long-term 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. Treasury) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
Date of
computation
1957 - June 28
J u l y 31
Aug. 30
S e p t . 30
Oct. 31
Nov. 29
Dec. 31
1958 - J a n . 31
Feb. 28
Mar. 31
Apr. 30
. May 29
June 30
J u l y 31

During month f o l l o w i n g
d a t e shown
S t a t e and
Corporate l o c a l g o v t . Other 2 /
370
526
578
576
1*58
383
378
498
1,123
555
356
266
768
161

153
218
183
33U
339
3%
31*5
370
13k
298
1*93
177
225
55

25.
30
30
18
150
110
150
36

Subsequent t o
d a t e shown
S t a t e and
Corporate l o c a l g o v t . Other 2
1*15
811
81*5
61*7
815
1,193
1,161
1,378
1,208
670
561
1*61*
1,01*8
381

1*79
1*71
379
551
• 51*3
558
561*
1*87
31*1
330
1*93
208
235
125

25
30
15
1*5
63
165
110
150
36
—

Forthcoming Large O f f e r i n g s , a s of August 8
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 )

CORPORATE
Montana Power Co.
Consolidated N a t u r a l Gas Co.
Houston Corp.
P u b l i c S e r v i c e E l e c t r i c & Gas Co.
^Southern C a l i f o r n i a Edison Co.
-frUniversal-Cyclops S t e e l Corp.
Commerce O i l R e f i n i n g Coip.
Standard O i l Co. of C a l i f o r n i a
M a r t i n Co.

1 s t mtg,. bds
20.0
S . F . deb.
1*5.0
Deb. & common s t k .
36.2
1 s t r e f . mtg. b d s . 60.0
1 s t r e f . mtg. b d s . 5 0 . 0
S.F. deb.
22.5
Deb., bds. i & common 1*5.0
Deb.
150.0
S . F . deb.
25.0

Aug. 13
Aug. 11*
Aug. 15
Aug. 21
Aug. 26
Aug. 27
1958
1958
1958

STATE AND LOCAL GOVERNMENT
Los_Angeles, C a l i f o r n i a
*New York, New York
^ D e t r o i t , Michigan
*San C a r l o s , C a l i f o r n i a
Indiana S t a t e O f f i c e Bldg. Comm.
San Diego U n i f . Sch. D i s t . , C a l i f .
S t a t e of Ohio
* S t a t e of C a l i f o r n i a
^Chesapeake Bay F e r r y Comm.


None


G.O.
0.0,
Rev.
G.O.
Rev.
G.O.
Rev.-S .T.
• G.O.
Rev.-Ut.

21.5
32.1*
10.6
10.7
30.0
10.0
30.0
50.0
H*l*.o

Aug. 19
Aug. 26
Aug. 26
August
Sept.. 9
Sept., 10
S e p t . 18
Oct. 22
October

H.lU

H-2

*—Included i n t a b l e f o r f i r s t time.
1 / Includes corporate and o t h e r i s s u e s of $15 m i l l i o n and over; S t a t e and
l o c a l government i s s u e s of #10 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 and non-guaranteed i s s u e s by Federal agencies.
Note.—Deletions f o r reasons o t h e r than s a l e of i s s u e : . None..




H. lit

Exhibit I
Yields on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 2 /

Date
1952 - 1957
High
Low
1958 - January
February
March k
5
6
12
19
21
25
April 1
2
17
23
29
May 7
13
15
16
20
21
22
28
June 10
17
• 25
July 2
9
18
23

Aa-rated o f f e r i n g y i e l d s
A-rated ojFferine y i e l d s
Amount above
Amount above
Actual
seasoned y i e l d s
Actual
seasoned y i e l d s
(per cent) ( b a s i s p o i n t s ) (per cent) ( b a s i s p o i n t s )
5.00(8/lU/57)
2.93(3/31/51*)

87
-3

*3.60
3.89f/

-8
22

it. 15
14.22
LOO
It. 00

ltlt
50
28
26

It. 05
3.98
li.00

31
23
25

3.75

5

3.90

21 •

3.85
3.85

16
16

3.85
3.82
3-95

17
12
2lt

It. 00

25

ii:18

: II

5.50(11/7/5>7)
3.00(3/17/54)

123
-15

3.96^/
It. 07
lt.25

3
9
* 6

U. 07

-7

3.98

5

It.Olt
It. 00

11
3

It. 07
It. 35
It. 00
3.95

~

It
32
-1
. -6

3.98^

1

U..35

31

Single observation, not an average.
\ J Covers only 30-year f i r s t mortgage bonds, as reported i n Moody's Bond
Survey. Except where i n d i c a t e d , the a c t u a l y i e l d f i g u r e and t h e 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 i n d i c a t e d period and of the
d i f f e r e n c e s 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 i s s u e s of
s i m i l a r q u a l i t y f o r the same day. Average maturity f o r the seasoned i s s u e s v a r i e s
from 26 t o 28 y e a r s .
2 / Provides f o r a 5-year period during which i s s u e may not be c a l l e d f o r
refunding a t a lower coupon r a t e . Monthly averages so marked include one or more
i s s u e s with such a p r o v i s i o n . Other i s s u e s have no such p r o v i s i o n .