Full text of H.16 Capital Market Developments : August 31, 1959

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

August 31, 1959.
CAPITAL MARKET DEVELOPMENTS
(Including Quarterly Review of
Corporate Security Financing)

During the week ending August 28, corporations sold l a r g e
i s s u e s t o t a l i n g $190 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 were o f f e r e d . The corporate financing t o t a l f o r l a s t week
included a $125 m i l l i o n debenture issue of General Motors Acceptance
Corporation, which had been o r i g i n a l l y scheduled f o r s a l e i n e a r l y
September. The calendar f o r t h i s week includes one corporate o f f e r i n g
(another f i n a n c e company issue) f o r #50 m i l l i o n and S t a t e and l o c a l
government bonds t o t a l i n g $88 m i l l i o n .
Bond y i e l d s - Yields increased l a s t week f o r a l l types of
outstanding bonds, except those f o r lower grade S t a t e and l o c a l
government bonds which remained s t a b l e . The increase i n y i e l d s
on U. S. Government o b l i g a t i o n s was s u b s t a n t i a l , bringing them t o
new h i g h s . The increase in y i e l d s was s l i g h t f o r o t h e r types of bonds.
Mortgage and bond y i e l d s - Discounts reported by Federal
Housing Administration f i e l d o f f i c e s on c e r t a i n FHA-insured new-home
mortgages a v a i l a b l e f o r immediate delivery i n the p r i v a t e secondary
market increased f u r t h e r i n J u l y , and t h e implied y i e l d rose to a
record 5.75 p e r cent, I;0 b a s i s p o i n t s above a y e a r e a r l i e r . The
spread between gross y i e l d s on these mortgages and r e t u r n s on new
i s s u e s of high-grade corporate bonds remained below 100 b a s i s p o i n t s
f o r the t h i r d s t r a i g h t month. Over t h e p a s t 73 months, the spread has
been t h i s low only 12 times.
September s e c u r i t y volume - The September volume of corporate
i s s u e s f o r new c a p i t a l i s expected t o t o t a l
m i l l i o n , one-sixth
below t h e estimate f o r August volume (which has been revised to r e f l e c t
the s a l e of t h e GMAC issue) and t w o - f i f t h s s m a l l e r than the volume i n
September l a s t y e a r . A volume of $2.0 b i l l i o n in the t h i r d q u a r t e r —
one-fourth m a i l e r than a year e a r l i e r .— would bring new i s s u e volume
f o r the f i r s t t h r e e q u a r t e r s t o #6.8 b i l l i o n , o n e - f i f t h below the
volume i n t h e corresponding period of 1958.
State and l o c a l government s e c u r i t y f i n a n c i n g i s expected t o
t o t a l §700 m i l l i o n i n September, including a $190 m i l l i o n i s s u e by t h e
Chesapeake Bay Ferry Commission, which p r e s s r e p o r t s i n d i c a t e w i l l
probably be sold e a r l y i n t h e month. This volume would be t w o - f i f t h s
more than the seasonally low volume of bond s a l e s in August and onet w e l f t h l a r g e r than in September 1958. Including t h i s estimate f o r




-

2

-

September, the volume of State and l o c a l government 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 i n the t h i r d q u a r t e r would t o t a l #1.7 b i l l i o n , 6 p e r
cent l e s s than a year e a r l i e r , but volume f o r the f i r s t t h r e e q u a r t e r s
would be §6.1; b i l l i o n , the same a s i n t h e January-September period
l a s t year.
Corporate Security O f f e r i n g s
i n the Second Quarter 1959
Net proceeds of corporate s e c u r i t y o f f e r i n g s during t h e '
second q u a r t e r of 1959 t o t a l e d $2.6 b i l l i o n , a s shown i n Table 1.
Refunding of outstanding s e c u r i t i e s was very small — $U2 million as
compared with,$225 m i l l i o n i n the second q u a r t e r l a s t year when
i n t e r e s t r a t e s were much lower.
Net proceeds f o r new c a p i t a l - Corporations sold $2.6 b i l l i o n of s e c u r i t y i s s u e s t o obtain new c a p i t a l i n the second q u a r t e r
of 1959. This volume was one-sixth l a r g e r than t h a t in t h e f i r s t
q u a r t e r t h i s y e a r , but s l i g h t l y (2 p e r cent) below the volume a year
e a r l i e r . For the f i r s t h a l f , t h e volume of new c a p i t a l i s s u e s t o t a l e d
Sit.8 b i l l i o n , o n e -s ix th smaller than in the corresponding period l a s t
year.
E l e c t r i c , gas and water u t i l i t i e s were the most important
group of i s s u e r s during the second q u a r t e r . Totaling $965 m i l l i o n ,
new i s s u e volume was n e a r l y o n e - f i f t h l a r g e r than i n the f i r s t
q u a r t e r , but U per c e n t lower than i n the second q u a r t e r of 1958.
New c a p i t a l o f f e r i n g s by manufacturing companies t o t a l e d
$7^6 m i l l i o n during the past q u a r t e r , twice as l a r g e as t h e very
small volume i n t h e f i r s t q u a r t e r , but about one-fourth smaller than
i n the second q u a r t e r l a s t y e a r . Offerings by iron and s t e e l and
e l e c t r i c a l machinery manufacturers showed the l a r g e s t d o l l a r i n creases from the corresponding period l a s t y e a r , while new f i n a n c i n g
by nonferrous metals and petroleum producers r e g i s t e r e d t h e l a r g e s t
d e c l i n e s . I t should be noted t h a t financing by the l a t t e r two
i n d u s t r i e s had been p a r t i c u l a r l y heavy l a s t y e a r , r e f l e c t i n g the
s a l e of t h r e e i s s u e s with proceeds of over #100 m i l l i o n ; no i s s u e s
of t h i s s i z e were sold during the recent q u a r t e r .
New i s s u e volume by f i n a n c i a l and r e a l e s t a t e companies were
the t h i r d most important category during t h e April-June p e r i o d , with
proceeds of $339 m i l l i o n , t h r e e - f o u r t h s l a r g e r than i n the corresponding p e r i o d of l a s t y e a r . The increased volume t h i s y e a r i s l a r g e l y a
r e s u l t of increased f i n a n c i n g by s a l e s and consumer f i n a n c e companies;
f i n a n c i n g by t h e s e companies had been very small l a s t y e a r .




H.lli

- 3 Table 1
Corporate Security Offerings f o r New C a p i t a l
' by Type of Business of I s s u e r
Second Quarter 1955-1959
(Net proceeds i n m i l l i o n s of d o l l a r s )

..

Total corporate o f f e r i n g s

1959

1958

1957

1956

1955

2,606

2,818

3,194

2,935

2,359

42

225
2^623
17025
32
72
85
11
25

46
3,149
17673
77
40
2
309
35

7
24
2
90
46
10
210
223
191

2
22
20
46.
30
31
48
75
339

130
2,805
1,007
20
325
38
51
28
5
11
45
21
27
108
34
139
2
153

Refunding
New c a p i t a l
Manufacturing
Primary i r o n and s t e e l
E l e c t r i c a l machinery
Other t r a n s p o r t a t i o n equipment
N o n e l e c t r i c a l machinery
Chemicals
Tobacco
Rubber products
Foods
T e x t i l e s and apparel
F a b r i c a t e d metal products
Paper
Lumber and wood products
Petroleum and r e f i n i n g
Primary nonferrous metals
Other 2/

168
124
46
45
45
ho
38
31
30
21
19
16
10
10
103

E l e c t r i c , gas and water u t i l i t i e s

965

a

Communication
Railroad

307

* 8

207
28
76
39
10

59
23
1
3
18
6
22
23
113

1,00k

1,135

853

669

63

268

106

68

57

32

98

83

35

Other t r a n s p o r t a t i o n

152

185

105

111

92

Commercial and o t h e r

215

57

84

65

77

Mining
F i n a n c i a l and r e a l e s t a t e
Sales and consumer finance cos.
Other

.

46

62

38

99

118

339

192
37
155

345
250
85

481
mi
217

363
152
181

131
188

1 / Less than $500,000.
2 / Includes small volume of f o r e i g n i s s u e s not f u r t h e r c l a s s i f i e d in the manuf a c t u r i n g group;
Note.—Details may not add t o t o t a l s due to rounding.
S o u r c e . — S e c u r i t i e s and Exchange Commission and Federal Reserve.




- 4 O f f e r i n g s by r a i l r o a d s and commercial and o t h e r companies
were i n l a r g e r volume t h i s year than l a s t , while o f f e r i n g s by communicat i o n , mining and t r a n s p o r t a t i o n ( o t h e r than r a i l r o a d ) corporations were
smaller.
Total gross proceeds - Gross proceeds from corporate o f f e r i n g s , which i n c l u d e . r e f u n d i n g i s s u e s and costs of f l o t a t i o n , were $2.7
b i l l i o n , 8 p e r cent l e s s than a year e a r l i e r . P u b l i c l y - o f f e r e d i s s u e s ,
t o t a l i n g $1.7 b i l l i o n , were one-eighth smaller than a year e a r l i e r ,
while p r i v a t e placements amounted t o $932 m i l l i o n , 4 per cent g r e a t e r .
Table 2
Total Corporate Security O f f e r i n g s by Type of Issue
Second Quarter 1955-1959
(Gross proceeds i n m i l l i o n s of d o l l a r s )
Type of i s s u e

1959

1 1958

1 1957

1 1956

I

1955

T o t a l corporate o f f e r i n g s

2,667

2,898

3,258

2,989

2,413

Type of o f f e r i n g
Public
Private

1,735
932

1,999
899

2,323
935

1,938
1,051

1,667
746

Type of s e c u r i t y
Bonds and notes
Public
Private

1,856
960
897

2,528
1,681
847

2,35k
1,456
897

2,311
1,296
1,015

1,643
948
695

P r e f e r r e d stock

173

154

139

146

208

Common stock

638

216

765

532

562

Note.—Details may n o t add t o t o t a l s due t o rounding.
Source.—Securities and Exchange Commission.
The smaller volume i n new f i n a n c i n g during the recent second
q u a r t e r occurred e n t i r e l y i n p u b l i c l y - o f f e r e d bond i s s u e s , a s a l l o t h e r
types of s e c u r i t i e s were i n l a r g e r volume than a year e a r l i e r . ( I n t h e
f i r s t q u a r t e r , p u b l i c bond i s s u e s and p r e f e r r e d stock i s s u e s were smaller
than a year e a r l i e r . ) The volume of p u b l i c bond i s s u e s was t w o - f i f t h s
smaller t h i s A p r i l - J u n e , while p r i v a t e l y - p l a c e d bonds were 6 p e r cent
l a r g e r i n volume. P r e f e r r e d stock f i n a n c i n g continued t o be small,
but was one-eighth l a r g e r than a y e a r e a r l i e r . The volume of common
stock f i n a n c i n g was n e a r l y t h r e e times as l a r g e as t h e veiy small volume
l a s t y e a r . The increased f i n a n c i n g through common stock g e n e r ally r e f l e c t s




H.1U

- 5 -

t h e s a l e of a l a r g e number of s m a l l i s s u e s 5 no stock i s s u e s with p r o ceeds of over $50 m i l l i o n were s o l d . There was a l s o a l a r g e number of
c o n v e r t i b l e bond i s s u e s o f f e r e d l a s t q u a r t e r . C o n v e r t i b l e bond f i n a n c i n g , t o t a l i n g #200 m i l l i o n , accounted f o r more t h a n o n e - t e n t h of a l l
debt o f f e r i n g s .
Stock p r i c e s - Stock p r i c e s , on b a l a n c e , i n c r e a s e d s l i g h t l y
l a s t week — t h e f i r s t i n c r e a s e i n f o u r weeks. Standard and P o o r ' s
index of 500 common s t o c k s c l o s e d a t 59*h9 on August 28. T r a d i n g
a c t i v i t y d e c l i n e d , a v e r a g i n g t h e lowest volume t h i s y e a r — 2 . 1 m i l l i o n
s h a r e s a day.
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 Ma licet s 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

LOWER-GRADE

BOND

BOND

YIELDS

YIELDS




ti.lh

Exhibit b
Tables l o r Exhibit A
high-grade bond Yields
Date

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

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

U. S. Govt,
long-term 2/

Corporate
Aa'a 1/

(Per cent)
1954 - Low
1957 - High
1958 - High
Low
1959 - High
Low

2.85
4.14
4.13
3.55
4.48
4.09

July
Aug.
Aug.
Aug.
Aug.

4.45
4.43
4.42
4.4 2
4.44

31
7
Ik
21
28 2 /

(It/23)
(9/27)
(10/10)
(5/2)
(7/10)
(1/9)

2.15
3.76
3.84
.3.07
•It. 15
3.83

(8/6)
(10/18)
(12/26)
(V25)
(8/28)
(1/2)

1.90
3.45
3.31
2.64
3.54
3.06

4.10
4.08
4.06
4.08
•4.15

(9/2)
(8/29)
(9/11)
(5/1)
(7/2)
(3/26)

3.48

3.44

3.43
3.43
3.44

.30
.60
.51
.22
.39
.16

.30
.47
.72
.34
.92
.57

.35
.35
.36
.34
.29

.62
.64
.63
.65
.71

•

Lower-grade Bond Yields
Date

State and
l o c a l govt,
Baa 1 /

Corporate
Baa 1 /

-

Spread between
Aaa and Baa
State and
Corporate
l o c a l govt.

(Per cent)
1954 - Low
1957 - High
1958 - High
1959 - High
Low
July
Aug.
Aug.
Aug.
Aug.

31
7
14
21
28 2 /

3.44
-5.10
L4.96
4.51
5.11
4.83
5.07
5.08
5.09
5.09
5.11

(12/31)
(11/29)
(1/3)
(7/11)
(8/28)
(4/17)

.

2.93(8/5)
4.51 (8/29)
4.34 (9/11)
3.64(5/1)
4.46 (7/2)
3.92 (3/26)

.52
1.27
1.28
.77

.96
1.21
1.11
.93
.98
.86

4.39
4.37
4.37
4.35
4.35

.62
.65
.67
.67
.67

.91
.93
.94
.92
.91"

-

III

2 / Preliminaiy.
fi
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 years.2 / Weekly average of daily 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 years or more.
2 / Thursday f i g u r e s . Only general obligation bonds are included; average term
i s 20 years.
Note.—highs and lows 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 f o r
different series.




STOCK

MARKET

MORTGAGE
Monthly

AND

BOND




YIELDS

Av'

Exhibit 1) - Tableu f o r Exhibli. C
Stock Market
Date

1953-1958 - High
Low
1959 - High
LowJune
July
Aug.
Aug.
-#ug.
Aug.

7
14
21
28 2 /

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

Stock price
index 1/

54.11
22.95
60.51
54.37

(12/24/58)
(9/18/53)l
(7/31)
(2/6)

57.46
59.74
59.87
59.29
59.08
59.49

Stock market customer c r e d i t
Customers 1
Bank
Total debit b a l - loans to
ances 4 / "others" 5 /
(Mil]Lions of do]. l a r s )

3.30
6.25
3.08
3.34

4.9
0.9
4.3
2.1

11,492
2,055
4,721
It, 527

3,285 1,317
669
1,314
3,388 1,332
3,253 1,210

3.23
3.12
" 3.10
3.14
3.16
3.13

2.9
3.2
2.6
2.8
2.4
2.1

4,692
4,640
n.a.
n.a.
n.a.
n.a.

3,388
3,374

1,304

n.a.

1,274
1,277
1,264
1,264
n.a.

n.a.—Not available.
g/ Preliminary.
1 / Standard and P o o r ' s --"mposite Index of 500 oonmon s t o c k s , weekly c l o s i n g p r i c e s , 1941-43=10. Monthly data,
are a v e r a g e s of d a i l y f i g u r e s r a t t i e r t h a n of F r i d a y s ' o n l y . Highs and lows a r e f o r F r i d a y s ' d a t a o n l y .
2 / Standard and P o o r ' s composite atook y i e l d based on Wednofiday d a t a c o n v 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. Y i e l d s 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 or low.
3 / Averages of d a i l y tendinis volume on t h e New York Stock Exoluxnge.
4 / End of month f i g u r e s f o r member f i r m s of the New York Stook Exchange which c a r r y margin a c c o u n t s ; e x c l u d e s
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 banks. Excludes l o a n s f o r p u r c h a s i n g or c a r r y i n g U. S.
Government s e c u r i t i e s • P r i o r to J u l y 1, 1159. such l o a n s a r e exoludi.d only a t banks In New York and Chicago.
Weekly r e p o r t i n g / b a n k s account f o r about 70
cent 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 U u l l a t i n .

Mortgage and Bond Yields 1/
Spread between now
Aaa corporate
corporate bonds and
bonds 1/
New 3/ |Seasoned 4/1FHA moitpageslSeasoned bonds

FHA
mortgages 2/
1953-19-58 - Hi#i
Low
1959 - High
Low

5.63 (11/57)
4.56 (2/55)
5.75
5.57

1.81 (6/57) 4.12 (9/57)
2.71 (3/54) 2.85 (4/54)
4.47
4.82
U. 12
1.29

1959 - Mar.
Apr.
May
June
July

5.57
5.58
5.64

4.30
it. 53
4.81
L. 82

!:S

a. 8o

4.13
4.23
4.37
4.46
4.47

1.96
.54
1.29
.83

.90
-.12
.44
.15

1.27
1.05
.83
.89
.95

.17
.30
.44
.36
.33

Eiililllllllliis
Digitized for4 / FRASER
Moody' :v l n v e n t o r n S e r v i c e . Monthly


a v e r t s of d a l l y d a t a .

See E x h i b i t

Exhibit E
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

1959

Corporate 1/
1
1958
1

Now c a p i t a l
1959

1,060
1,065
1,320

636
856
61*5

S8;

71*2
572
506

930
. 592
980

798
895
551

765
51*6
393

E/5U8
e/500
e/700

806
1*03
651

529
561*
1*31

1*56

698
633
698

January
February
March

81*0
71*5
631

i,55^

April
May
June

899
791
87k

1,11*0
397
887

765
. .1,1*53

e/550
e/775
e/650

1,107
5k0
1,11k

1,003
92k
973

July
August
September
October
November
December
1st
2nd
3rd
Lth

quarter
quarter
quarter
quarter

' 1 s t half
Three q u a r t e r s
Year

728

862
518
920
2,216
iA',975

e/6',755

.

S t a t e and l o c a l 2/
1 195b
I 1957

1957

'

1,090
789
1,076

3,139
2,623
2,760
2,300

3,Wi5
3,lli9

5,762
8,522
10,823

6,59k
9,193
12, W

812

8
2,138
e/l,'7M

I S

1,860
1,365
1**520

1,820
1,701*
1,514*
2,029
3,521*
5,069
7,099

Excluding f i n a n c e companies h/
1st
2nd
3rd
l*th

quarter
quarter
quarter
quarter

2,011
2,to
e/1,675

Year

2,899
2,506
2,731
2,213

3,237
2,869
2,582
2,810

10,129

11,518

1/ Securities and Exchange Commission estimates of net proceeds,
2/ Investment Bankers Association of America estimates of principal amounts,
3/ Includes $718.3 million AT&T convertible debenture issue.
jj/ Total new capital issues excluding offerings of sales and consumer finance
companies.




H. lU

Exhibit F
Other Security Offerings 1/
( I n m i l l i o n s of d o l l a r s )
Long-term
Foreign government 2/
195o
1959
19^7
" W

Federal agency 3/
1958
1957

January
February
March

11

196
53

April
May
June

56
50
42

139
198
120

42

5
17

28
7
30

164

2

July
August •
September

84
49
30

199

1,163
251

72

523

125

175

60

215

October
November
December

58
123
74

60
1

4

220

Year

992

507

2,321

Short-term
S t a t e and l o c a l government 4/
January
February
March
April
May
July
August
September

190
128
295

1
E/2U5

233
460
273

I

261*

205
337
153

289
423
369

272
272
252

572

Federal agency 3 / "
359
500
489

371
208
144

638
1+30

486

209
161
329

336
469
501

437
206
330

224
370
512
1,238

5,543

675
289

727

October
November
December

"8.
-243

>59

454
114
137

Year

3,910

3,274

3,098

;

100

565

3

e / Estimated.
g / Preliminary.
'
1 / Data presented i n t h i s exhibit d i f f e r from those i n Exhibit E i n t h a t r e f u n d ing i s s u e s , as w e l l 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 a r e d e f i n e d a s those maturing i n more than one year.
2 / Includes s e c u r i t i e s o f f e r e d i n t h e United S t a t e s 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 o r g a n i z a t i o n s . Source: S e c u r i t i e s and Exchange Commission.
1 / Issues n o t guaranteed by the U. S. Government. Sourcet long-term, S e c u r i t i e s
and Exchange Commission; short-term, Federal Reserve.
4 / P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , warrants or c e r t i f i c a t e s and Public

Housing
Authority n o t e s . In some i n s t a n c e s PtiA n o t e s included may have a somewhat
l o n g e r term than one y e a r . Sources Bond. Buyer.
http://fraser.stlouisfed.org/

Federal Reserve Bank of St. Louis

H.lJi

Exhibit G
Large Long-term 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 )
Month

Corporate

1958 - July
August
September
October
November
December
1959 - January
February
March
April
May
June
July

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

771
209
825
259
227
305
369
340
215

Other 2 /

275
109
288
172
259
229

a

II

209
100
79
17U
35
176
20
50
60
50

g

58

$
284
110

258
635
194

Large Individual Issues Offered during August

Issuer

'type 3/

Amount
(millions
of
dollars)

Coupon
r a t e or Offering
Maturity net i n t e r - y i e l d
hating
e s t cost

CORPORATE
Pennsylvania E l e c t r i c Co. 1 s t mtg.bds.
15.0
Northern S t a t e s Pwr. Co.
Com. s t k .
20.9
Deb.
Michigan Bell Telephone Co,
30.0
Pan Amer. World Airways
Conv.sub.deb. 47.0
1 s t mtg.bds. 35.0
Consumers Power Co.
American & For. Pwr. Co.4/ Conv.jr.deb.
15.0
Houston Lighting & Pwr. Co. 1 s t mtg. bds. 25.0
P a c i f i c Gas & E l e c t r i c Co. 1 s t ref.mtg.bdsj55.0
General Motors Accept. Corpi
Deb.
125.0

1989
199k
1979
1989
1984
1989
1991
1980

4 7/8

I®
17/8
5

4.85

Aa

4.75
4.88

Aaa
Ba
Aaa
B
Aa
Aa

4.61
6.00

4.80
5.00
5.00

STkTE AND LOCAL GOVER^OINT
Commonwealth of Penna.
Los Angeles Sc h . D is t. , C a l.
S t a t e of Ohio
Texas Wtr. Development Bd.
Nassau Co., New York




0.0.

G.O.
G.O.
G.O.
G.O.

120.0
26.0
30.0
10.0
26.2

1962-75/73
1960-8I*
1959-74
1962-94/83
1960-88

2.75-3.38
3.40
2.50-3.80
3.72
3.10 , 1.70-3.10
2.60-3.60
3.56
2.50-3.85
3.73

Aa
Aa
Aaa
Aa
A

H.lli

G-2
Large I n d i v i d u a l Issues Offered during August (Cont'd)

Issuer

Type 3 /

Coupon
Amount
Offering
(millions
Maturity n e t i n t e r - y i e l d
Rating
of
dollars)
e s t cost

STATE AND LOCAL GOVERNMENT
C Cont'd)"
New York Thraway A u t h v "
Term
Serial
OTHER

Rev. - U t .
Rev.-Ut.

37.5
12.5

1996
1966-79/69

Bds.

98.0

1962

»

Pn

k. 20
3.30-3.90

.

Federal Land Banks

U 7/8

U.75

n.a.—Not a v a i l a b l e .
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 m i l l i o n 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 $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.
3 / In t h e case of State 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 from 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 taxes only; Rev.-Rent.,
revenue bonds secured s o l e l y by l e a s e payments.
k / Sale of i s s u e on August 18 canceled on August 26.




vM
H.ll*

•

Exhibit H

Forthcoming Large Long-term Public Security Offerings f o r New Capital
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues
Date of
computation
1958 - Aug. 29
Sept. 30
Oct. 31
Nov. 28
Dec. 31
1959 - Jan. 30
Feb. 27
Mar. 31
Apr. 30
May 29
June 30
July 31
Aug. 31

During month following
Subsequent t o
date shown
date shown
State
and
Corporate
Other 2/ Corporate State and Other 2 /
local govt.
local govt.
21*1
295
258
229
261
551
292
550
251*
21*7
11*6
356
385

785
113
201*
301
210
270
198
396
21*6
287
165
238
198

911*
216
326
1*01
370
365
279
1*76
31*6
332
272
305
517

71
75
1*5
20
50
50
25

1*35
521*
675
683
515
856
1*81
761
517
761
500
1*06
1*02

71
75
1*5
20
50
50
25

Forthcoming Large Offerings, as of August 28
Type

Amount
Approximate date
(millions
of o f f e r i n g
of dollars)

CORPORATE
Associates Investment Go.
Deb.
1 s t mtg. bds.
Georgia Power Co.
*New England Telephone & Telegraph Co,
Deb.
•^Southern C a l i f o r n i a Gas Co.
1 s t mtg. bds.
Conv. deb.
Hooker Chemical Corp.
Union E l e c t r i c Co.
^Southern New England Telephone Co.
American Telephone & Telegraph Co.
Commerce Oil Refining Corp.

50.0
18.0

1*5.0
30.0
25.0

Com. s t k .

30.0

Com. s t k .

21*. 2

Deb.
Deb., bds. & com.

250.0
1*5.0

Sept. 3
Sept. 18
Sept. 21
Sept. 30
Sept. 30
( r i g h t s expire)
d
e p t . 30
( r i g h t s expire)
Oct. 9
( r i g h t s expire)
Nov. 17
1959

STATE AND LOCAL GOVERNMENT
Los Angeles, California
Allegheny Co. San. Diet.
State of Connecticut
State of California
^Atlanta, Georgia
*Cook Co., I l l i n o i s

Pa.




G.O.
Rev.-Ut.
G.O.
G.O.
G.O.
G.O.

12.5

15.0
60.5

50.0

12.5

16.0

Sept.
Sept.
Sept.
Sept.
Sept.
.Sept.

1
2
2
10
15
22

H.ll*

H-2
Forthcoming Large O f f e r i n g s , a s of August 28 (Cont'd)
Type

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

STATE AMD LOCAL GO VEHEMENT (Cont'd)
Chesapeake Bay Ferry Commission
-^Denver, Colorado

Rev.-Ut.
G.O.

190.0
17.0

Sept.
Oct. lit

25.0

Sept. 18

OTHER
Commonwealth of A u s t r a l i a

*—Included i n t a b l e f o r f i r s t t i m e .
1 / Includes corporate and other i s s u e s of #l£ m i l l i o n and over; State 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.lU

Exhibit I
Yields on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /
Date

1952 - 1958
High
Low
1959 - Jan. 7
20
28
Feb. 18
Mar. 11
26
31
Apr. 3
15
16
29
May 1
13
1U
20
21
26
June lj
17
26
July 9
10
15
30
Aug. 5
20

A-rated o f f e r i n g y i e l d s
Aa-rated o f f e r i n g y i e l d s
Amount above
Amount above
Actual
Actual
seasoned
y
i
e
l
d
s
(per cent)
(per cent) seasoned y i e l d s
(basis points)
(basis points)
5.00 (9/1V57)
2.93 (3/31/5W

87
-3

l*.6o

3k

B

S

h.h3
W3
Ui7

9
9
13

1.60

22

I

1.95
1.95

38
3k

5.00
4.95

38
29

it. 93

31

1*.85
1*.80

21*
22

5.50 (11/7/57)
3.00 (3/17/510

123
-15

1*.75^/

23

1*.67

18

1.85
5.06

17
13

5.13

27

h.92^
5.10
5.10

6
21*
19

5.10
5.00

19
13

*—Single observation, not an average.
1 / Covers only 30-year f i r s t mortgage bonds, as reported i n Moody's Bond
Survey. Except where indicated, the actual y i e l d f i g u r e and the amount above
seasoned y i e l d s are averages of offerings during the indicated period and of
the differences between these new offering y i e l d s and y i e l d s on seasoned issues
of similar quality f o r the same day. Average maturity for the seasoned i s s u e s
varies from 26 to 28 years.
2/ Provides f o r a 5-year period during which issue may not be c a l l e d f o r
refunding a t a lower coupon rate. Monthly averages so marked include one or
more i s s u e s with such a provision. Other i s s u e s have no such provision.
2 / Provides for a 7-year period during which issue may not be c a l l e d f o r
refunding at a lower coupon rate.