Full text of H.16 Capital Market Developments : August 24, 1955

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Not f o r P u b l i c a t i o n
DECONTROLLED AFTER SIX MONTHS

Holii

August 2k, 1955
CAPITAL MARKET DEVELOPMENTS

General Motors Acceptance C o r p o r a t i o n ' s debenture o f f e r ing of 200 m i l l i o n d o l l a r s and-a S t a t e and l o c a l government i s s u e
of f i v e m i l l i o n were the l a r g e p u b l i c o f f e r i n g s f o r new c a p i t a l
f l o a t e d during the week ending August 19. Large i s s u e s expected
t h i s week t o t a l 122 m i l l i o n d o l l a r s f o r c o r p o r a t i o n s and 33 m i l l i o n
f o r S t a t e and l o c a l governments.
A l l bids on another S t a t e and l o c a l o f f e r i n g — t h e F l o r i d a
S t a t e Board of Education revenue bond i s s u e of 10.6 m i l l i o n d o l l a r s — were r e j e c t e d t h i s week. The reason given f o r the r e j e c t i o n was t h a t
the i n t e r e s t cost was too high r e l a t i v e t o the p r e s e n t market. The
lowest n e t i n t e r e s t cost bid was 3 . 1 1 per c e n t .
Bond y i e l d s - Corporate Aaa bond y i e l d s r o s e two b a s i s
p o i n t s during t h e week ending August 19. Yields on U. 3/. Government long-term and S t a t e and l o c a l government Aaa bonds did not
change. The Treasury obligation y i e l d s decreased on Monday and
Tuesday of t h i s week according t o d a i l y f i g u r e s .
Yields on lower-grade bends increased to new highs f o r
1956 l a s t week. S t a t e and l o c a l government revenue bonds r o s e
t h r e e b a s i s p o i n t s and corporate and S t a t e and l o c a l government
Baa bond y i e l d s increased one b a s i s p o i n t each.
Stock p r i c e s - The SEC index of 26£ common stocks decreased moderately t o 252.0 .points l a s t week i n t h e " s m a l l e s t t r a d ing volume s i n c e e a r l y 195k* A jump i n p r i c e s occurred i n heavier
t r a d i n g cn Tuesday of t h i s week, according t o d a i l y i n d e x e s .
More d e t a i l e d information concerning r e c e n t c a p i t a l mark 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 .

Business Finance 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 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.




EXHIBIT A

HIGH - GRADE BOND YIELDS
Weekly

Per c e n t p e r a n n u m

\ W

V V

1952

1953

Corporate
Aaa 1 /

1954

U. S . Govt,
long-term 2 /

1955

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

State and l o c a l
g o v t . , Aaa 3 /
(Per cent)

1 9 # - Higi

1955 - High
Lew

3.03
2.91
3.1*2
2.99
3.09
2.85
3.12
2.91

July 22
July 29
August 5
August 12
August 19

3.05
3.07
3.09
3.10
3.12

1953 - High
1951* - High

( W
(2/15)
(6/19)
(1/9)
(V8)
(a/23)
(8/19)
(1/7)

2.79
2.56
3.15
2.78
2.7U
2.1*1*
2.91*
2.62
2.90
2.91*
2.91*
2.89
2.89

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

2.00 (10/23)
1.65 (5/1)
2.73 X6/25)
1.98(1/8)
2 . 2 1 (6/10)
1.90 (9/2)
2.31* (8/18)
2.05 (5/26)

.37
.19
.38
.19
.1*3
.32
.31*
.13

1.02
.71
.81*
.30
.61
.29
.70
•5U

2.21*
2.27
2.29
2.31*
2.31*

.15
.13
.15
.21
.23

.66
.67
.65

.

_L
1 / Weekly average of d a i l y f i g u r e s . Average term of bends included i s 2$-26
years.
2 / Weekly average of daily f i g u r e s ; old s e r i e s . Average term t o f i r s t c a l l
of bonds included i s 13-11* years.
3 / Thursday f i g u r e s . Only general dblig^ticn bonds are included; average
term I s 20 y e a r s .
Note.—Hi^hs and loirs are f o r individual s e r i e s and may be cn d i f f e r e n t dates
for different series.




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

CORPORATE B a a

V *\ STATE A N D LOCAL GOVT. B a a

\ _/v-vf

L.LLU
J
1952

S

0

Date '

Corporate
Baa 1/

State and
local govt.
Baa U

State and
local govt,
rev. 3/

(Per cent)
1952 - High
Low
1953 ~ High
Low
1951 - High
1955 - High
July 22
July 29
August 5
August 12
August 19

3.63
3.1*8
3.89
3.50
3.7U
3.UU
3.57
3.1*5
3 #
3.53
• 3.55
3.56
3.57

(1A)
(5/16)
(9/18)
(1/2)
(1/8)
(12/31)
(8/19)
(1M)

2.98
2.1*8
3.79
2.96
3.32
2.93
3.22
3.02
3.17
3.18
3.21
3.21
3.22

(10/23)
(li/17)
(6/25)
(1/8)
(1/7)
(8/5)
(8/18T
(1/6)

2.69
2.27
3.27
2.71
3.00
2.72
2.93
2.76

(12/19)
(V25)
(6/26)
(1/2)
(1/1)
(8/13)
(8/19)
(1/7)

2.87
2.90
2.90
2.90
2.93

3/ Weekly average of daily figures. Average term of bonds
included i s 25-26 years.
2 / Thursday figures. Only general obligation bonds are
included; average terra i s 20 years.
2 / Friday figures. Average rating of bonds included i s
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.




Date

Stock p r i c e

Common
Trading
volume 2 /
(millions y i e l d s 2 /
of shares) (per cent)

Stock market customer c r e d i t
Custoners 1
debit b a l - loans t o
ances V "others" 5 /
(Millions of d o l l a r s )

1952 - High
1953 - High
1951 - High
1955 - Hi#i
Low
June
August 5
August 12
August 19

165.3
151.7
167.1
m.O
221.lt
156.5
259.9
217.lt

(12/26)
(10/2U)
(1/2)
(9/18)
(12/31)
(1/6)
(7/29)
(1/Ui)

216.5
257.3
251: .7
253.7
252.0

2.0
0.9
2.5
0.9
3.7
l.lt
lt.6
1.5

2.7
2.It

1.7

- .

5.77
5.13
5.75
5.15
5.33
It.20
It.22
3.78

1,986
l,80lt
2,ltlt5
2,055
.3,W6
2,li05
3*911
3,537

3.87
3.78

3,871
3,911

1,332
l,2ltl
1,665
l,3Ht

2,388
1,653

2,731*

2,517

2,711
2,73U
n.a.

656
552
780
661t
l,0lt8
7lt6
1,177
1,018
1,160
1,177
l,l61t
1,171

n . a . Not a v a i l a b l e .
1 / SEC index of 265 common stocks, weekly closing p r i c e s , 1939=100; converted
t o 19lt7-ii9=100 by Federal Reserve. The conversion f a c t o r i s 123.91.
2 / Averages of daily trading volume on the New York Stock Exchange.
3 / Moody's 200 common stocks; end of month f i g u r e s . 5 / End of month f i g u r e s f a r menber firms of the New York Stock Exchange which
carry margin accounts; excludes balances 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 reporting, member banks. Excludes a l l loans
f o r purchasing or carrying U. S. Governments f o r 1952; since 1953 cnly these loans
. a t banks i n New York and Chicago are excluded. Weekly r e p o r t i n g banks account f o r
about 72 per cent of loans to o t h e r s .
Note.—Highs and lews are f o r individual s e r i e s and may be on d i f f e r e n t dates
for different series.




Exhibit D
Corporate and S t a t e and Local Government
Security Offerings and Placements
(In millions of d o l l a r s )

January
February
March
April
May
June
July
August
September

S t a t e and l o c a l
1 1951+
1

19#

1953

1955

51+6
h36
1,261

51+7
1+26
635

623
623
666

535
312
538

396
1+11
565

390
360
1+26

1+91+
903
697

1+97
6#
81+2

779
675
1,123

1+27
350
e/630

731+
71+8
853

329
61+9
1+31+

eAOO
e/600

909
335
71+7

1+83
325
753

a/l+60
e/225

279
261
61+9

519
259
1+75

591+
1+23
877

1+53
. 1+08
771+

1,372
2,331+
1,188
1,891+
6,789

1,176
1,1+12
1,253
1,636
5,1+77

October
November
December
1 1st quarter
2nd quarter
3rd quarter
iith quarter
Year

New c a p i t a l

Corporate
1 1951+
1

2,21*3
2,09k

1,003
290
601+

577
1+29 , ,
1,1+38 y

1,608
1,995
1,991
1,896
7,1+90

1,912
1,385
5/1,1+05
2,578
1,561 i /
2,1+1+1+
8,1+95

1953

Excluding finance companies 2 /
1st quarter
2nd quarter
3rd quarter
1+th quarter
Year

1,791
1,962

1,527
1,927
1,911
1,792
7,1#

1,669
1,991
1,223
2,31+1+
7,227

1/ Includes 602.5 m i l l i o n dollar AT&T debenture i s s u e .
2 / Total na? c a p i t a l issues excluding o f f e r i n g s of sales and personal finance
companies.
e / Estimated.
Note.—Details may not add to t o t a l s due t o rounding.




H.lli
I

Exhibit E.

'

Large Public Security Issues f o r Ncrr Capital
(Other than U. S. Treasury) 3/
Proceeds of large Issues Offered
(L'illions of d o l l a r s )
Corporate

Month
±95k - July
August
September
October
November
December
1955 - January
February
" March
^ April
• May
June
July

State and
l o c a l government

hi 1
75
36it .
hJ>3>
0
121
Ilil.
63
#0
175
483
182.
101

--

Other 2 /

92 .
86
388
2#
689
3hl
107
337
238
152
hO 9
278

30
35
15

Large Individual Issues Offered August 1 through 19
Type 3 /

Issuer

Coupon
Amount
Offering
(millions Maturity r a t e or
yield
net i n t e r of
dollars)
est cost

Rating

CORPORATE
Consumer Power
Goodyear Tire & Rubber
Western Union Telegraph
G ..hi .A eC. •

Common s t k .
16.9
Common s t k .
L5.6
Common s t k . . 20.7
200.0
. Deb.

1975

3 5/8

3.75

—

STATE AND LOCAL GOVERNMENT
Mobilei Alabama
F a i r f a x Co., Virginia
S p r i n g f i e l d , Ohio
Araarillo, Texas
OTHER
None




Rev.
G.O.
Rev.
Rev.

lli.S
7.1
5.8
5.2

1995
1958-89
1959-87
1963-79

3.80
3.18
3.09
3.07

3.70
2.00-3.20
2.20-3.10
2.60-3.05

Ba
Baa
A
A

E-2
\ J Includes corporate and other s e c u r i t y o f f e r i n g s of 1$ m i l l i o n d o l l a r s and o v e r j 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 i s s u e s ,
3 / I n 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
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 e ,
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.
:




t

H.lU

Exhibit F

Forthcoming Large Public S e c u r i t y Offerings f o r Mow C a p i t a l
(Other than U . S . Treasury) 1/
Expected Proceeds from Forthcoming Large I s s u e s
During month following
date s h a m
S t a t e and Other 2 /
Corporate
l o c a l govt.

Date of
computation
19$b - J u l y 30
Aug. 31
S e p t . 30
-Oct. 29 Nov. 30
Dec. 31
— J a n . 31
Feb, 28
Ijar. 31
Apr, 29
Hay 31
June 30
J u l y 29

100
33b
3b3
15
9h
ieu
16
710
211
b2Z
160
67
1*07

300
383
U36 •
661
#7
682
52U :
208
116
3#
3hh
1.00

30

—

Subsequent t o
date shevm
S t a t e and Other 2 /
Corporate
l o c a l Rovt
303
608
tilt
135
2hS
216
U22
1,392
922
1,11:1
850 .
830
1,135

1,#3
1,876
2.158
1,957
2,682
2,1a
1,961
1,978
2,009
1,917
1,861
1,815
2,018

30
30
35

,—

Forthcoming Large O f f e r i n g s , a s of August 19
Issuer

Type

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

CORPORATE
American Natural Gas
P a c i f i c Telephone and Telegraph
S t . Louis-San Francisco Railway
Utah Pov:er and Light
Ohio Power
Public Service E l e c t r i c and Gas
Public Service E l e c t r i c and Gas
American Telephone and Telegraph
Southern C a l i f o r n i a Gas
Freedom Insurance Company

Coma on stock
Deb.
1 s t mtg, b d s .
1 s t mtg. b d s .
1st mtg. b d s .
P f d . stock
Deb.
Conv. deb.
Bonds
Common stock

35,7
67.0
19.5
15,0
17.0
25.0
35.0
635.0
1*0.0
22.0

L.L.
G.O.
G.O.
n.a.
G.O.

12.0
12.5

August 23
August 23
August 2k
September 13
September 20
October It
October k
October 13
1955
1955

. STATE AND LOCAL GOVERNMENT
Duval County, F l o r i d a
Los Angeles, C a l i f o r n i a
Chicago, I l l i n o i s , Bd. of Education
Denver, Colorado
Nueces County, Texas




8.0

15

August 22 —
August 23
August 2h
August 30
September 1

H.lZ*

F-2

r

Forthcoming Large O f f e r i n g s , a s of August 19 (Cont'd)
Issuer

Type.

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

STATE A IIP LCCAL GOVERNMENT (Cont'd)
Essex County, New Jersey
e s t a t e of Delaware
•^Middlesex Co. Sewerage Auth., N. J .
B u f f a l o , New York
Los Angeles, C a l i f o r n i a
Richmond-Petersburg Turnpike Auth.
•aCnicago Regional Port D i s t . , 111.
Connecticut Expressway
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
Texas Turnpike Company
C a l i f o r n i a To ll Bridge Authority
Louisiana Turnpike Commission
C a l i f o r n i a Toll Bridge Authority
New York S t a t e Thruway Authority
Oklahoma Turnpike Authority
Washington S t a t e T o l l Bridge Auth.

n.a.
n.a.
n.a.
n«a.
Rev.
Rev.
Rev.
Rev.
Rev.
Rev.
Rev.
Rev.
Rev.
Rev,
Rev. .
G.R,
Rev.
Rev,

8.8
7.0
25.0
12.8
18.0
67.$

2h.O

100.0
25.0
186:0
80.0
390.0
11*0.0
235.0
100.0
13,0
125.0
lU6o0
227.0

September
September
September
September
September
September
September
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1956

8
8
8
13
21
,

OTHER

1/ Includes 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 o v e r .
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 p a» Not 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 .