Full text of H.16 Capital Market Developments : August 7, 1957

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DECONTROLLED AFTER SIX MONTHS
August 7, 1957

H.lliCAPITAL MARKET DEVELOPMENTS

Large publicly offered securities during the week ending
August 2 totaled $78 million for corporations, including expiration
of subscription rights, and $+9 million for State and local governments. This week, General Motors Acceptance Corporation's $100
million debenture issue is the only large corporate offering scheduled for sale. State and local government issues amounting to $90
million are also expected.
Bond yields - Changes in yields on outstanding bonds were
mixed last week. Yields on corporate, Aaa-rated State and local
government, and U. S. Government (new series) obligations increased;
Baa-rated State and local government bond yields remained stable and
yields on U. S Government (old series) declined.
Stock prices - The SEC index of 265 common stocks declined
last week, closing at 286.3 on August 2. Daily figures for the first
three days of this week indicate a further decline -in prices on
balance, bringing prices down to the lowest level since May.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

Business Finance and Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




EXHIBIT A
HIGH-GRADE

BOND

YIELDS

\ U. S. GOVERNMENT

U. S. Govt., long-term iJ
"at.

Corporate
Aaa 1/

Old series

Kew series

Spread between
U. S. (
State and
local govt. (old serj"esj^'and
Corporate State and
Aaa 1/
local Aaa

(Per cent)
1953 - High
Low
195k - High
1955 - High
Low
1956 - High
Low
1957 - High
Low
July 5
July 12
July 19
August 2

n.a.

3.U2 (6/19) 3.15 (6/6)
2.99 (1/9) 2.78 (12/26)
3.09 (1/8) 2.7U (1/9)
2.85 (li/23) 2.U4 (8/7)
3.17 (12/23) 2.91 (8/5)
2.91 (1/7) 2.62 (1/7)
3.79 (12/28) 3.1,9 (12/21)
3.07 (3/2) 2.80 (2/17)
1*.05 (8/2) 3.70 (6/21)
3.66 (V12) 3.15 (2/8)

3.03
2.89
3.39
2.92
3.62
3.22

Ji.00
3.97
3.98
U.oi
U.05

3.56
3.56
3,57
3.61
3.62

3.61
3.58
3.63
3.68
3.6U

2.73 (6/25)
1.98 (1/8)
2.21 (6/10)
1.90 (9/2)
(8/5) 2.3U (9/8)
(6/10) 2.05 (5/26)
(12/28)3.05 (12/27)1
(2/3) 2.17 (2/23)
(8/2) 3.25 (8/1)
(2/8) 2.76 (2/21)
3.20
3.11
3.1k
3.22
3.25

.38
.19
.13
.32
• 3U
.13
.hh
.13
.51*
.25

.8U
.30
.61
.29
.70
•Sh
.68
.32
.1*9
.26

.39
.39
.35
.33
.ia

.ia
.1*7
.1*9
.1*6
.39

1/ Weekly average of daily figures. Average term of bonds included is 25-26
2/ Weekly averages of daily figures. The old series includes fully taxable,
marketable 2 1/2 per cent bonds due or first callable after 12 years through
September 1955, and those due or callable in 10-12 years thereafter; the average
term to first call of the bonds included declined from lit years in early 1953 to
11 1/2 years in early 1956. The new series is comprised of the 3 per cent bond
of 1995 and the 3 1/ii per cent bond of 1978-83.
2/ Thursday figures. Only general obligation bonds are included} average
term is 20 years.
Note.—Highs and lows are for individual series and may be on different dates
for different peries.




•

'7
EXHIBIT B

LOWER-GRADE BOND YIELDS

Date

Corporate
Baa 1/

State and
local govt,
rev. y

State and
local govt.
Baa 2/
(Per cent)

1953 - High
195k - High
1955 - High
1956 - High
• 1957 - High
Low
July 5
July 12
July 19
July 26
August 2

3.89
3.50
3.74
l.Uh
3.63
3.L5
li.U
3.58
Ju76
k.U2
U.71
U.72
U.72
U.7U
h. 76

(9/18)
(1/2)
(1/8)
(12/31)
(12/30)
(1/llt)
(12/28)
(3/9)
(8/2)
(VI2)

3.79 (6/25)
2.96 (1/8)
3.32 (1/7)
2.93 (8/5)
3.26 (12/29)
3.02 (1/6)
In 22 (12/27)
3.20 (3/6)
fc.35 (6/27)
3.90 (2/21)
k.33
_U.2U
It. 28
U.30
li.30

3.27
2.71
3.00
2.72
2.99
2.76
3.98
2.89
3.98
3.70

(6/26)
(1/2)
(1/1)
(8/13)
(12/30)
(1/7)
(12/28)
(2/21*)(1A)
(2/22)

V

1/ Weekly average of daily figures. Average term of bonds
included is 25-26 years.
2/ Thursday figures. Only general obligation bonds are included j average term is 20 years.
3/ Friday figures. Average rating of bonds included is
between Baa and Aj average term is 20 years.
h/ Series- discontinued, as of March 15.
Note.—Highs and lows are for individual series and may
be on different dates for different series.




STOCK M A R K E T

tots

Stock price
index 1/

Trading
Common
volume 2/
(millions yields
of shares) (per cent

Stock market customer credit
Customers'
debit bal- loans to
"others" SJ
(Millions of dollars)

1955 - High
Low
1956 - High
Low
1957 - High
Lev

167.1 (1/2)
lWt.O (9/18)
221.1, (12/31)
156.5.(1/6)
270.7 (12/30)
217.ii (1/lii)
295.5 (8/3)
257.U (1/20)
29U.6 (7/12)
260.3 (2/8)

June
July
July 19
July 26
August 2

286.2
292.0
291.3
290.1
286.3

1953 - High
195b - High

2.5
0.9
3.7
1.1*
U.6
1.5
3.1
' 1.5
2.7
1.6

5.88
5.15
5.-1*9
1*.09
li.23
3.59
1.13
3.65
lt.28
3.67

2,1*5
2,055
3,1*36
2,105
L,030
3,537
l*,0l*7
3,911*
It,031
3,832

1,665
1,3H*
2,388
1,653
2,805
2,517
2,823
2,71*0
2,887
1,713

780
661*
1,01*8
71*6 .
1,21*1
1,018
1,267
1,155
1,163
1,117

2.2
2.2
2.2
1.8
1.8

3.79
3.75
3.69
3.69
3.76

U,031
n.a.

2,887
n.a.

l,H*lt
n.a.
1,132
1,120
n.a.

n.a.—Hot available.
1/ SEC index of 265 common stocks, weekly closing prices, 1939-100; converted
to 19u7-1*9-100 by Federal Reserve. The conversion factor is 123.91.
2/ Averages of daily trading volume on thetiew%ork Stock Exchange.
3/ Moody's 125 industrial stocks; weekly data based on Friday.
h/ End of month figures for member firms of the New York Stock Exchange which
carry margin accounts; excludes balances secured by U. S. Government obligations.
5/ Wednesday figures for weekly reporting member banks. Excludes loans for
purchasing or carrying 0. S. Government securities at banks in New York and Chicago.
Weekly reporting banks account for about 72 per cent of loans to others.
Note.—Highs and lows are for individual series and may be on different dates
for different series.




£
H.lU

Exhibit D
Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

1957

1

Corporate
1956
|

New Capital

State and local
1
1956
I

1955

1957

to
696
390

1955

1,063
1,071
1,344

573
712
817

535
407
1,223

685
566
499

April
May
June

e/950
e/750
e/1,350

818
l,llj6
8ia

1478
886
687

762
V550
p380

378
490
735

July
August
September

e/1,000
e/900

1,063
654
838

597
6I4I4
670

e/UBo
e/375

376
199
333

1470
21*9
I4O6

6145
311
126

919
658
I4O8

January
February
March

October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

•

745 .
1,0892/
1,088

1,1621/
632
900

535
312
538
.

li27
350
6I42

3,1479
e/3,050

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

.2,165
2,052
1,911
2,695

1,750
e/1,692

1,1490
1,603
908
1,382

1,385
1,1418
1,121*
1,984

e/6,529

1,907
7,163
10,38U

1,216
6,127
8,821

e/3,442

. 3,093
14,001
5,383

2,803
3,927
5,911

Excluding finance companies 2/
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

3,268
e/2,800

Year

1,6147
2,541.
2,215
2,826

1,727
1,870
1.444
2,5514

9,259

7,-595

e/ Estimated.
1/ Includes $637.2 million AT&T convertible debenture issues.
2/ Includes $571.5 million AT&T common stock issues.
2/ Total new capital issues excluding offerings of sales and consumer finance
companies, ;
Note.—Details may not add to totals due to rounding.




H.lt*

Exhibit E
Large Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(Millions of dollars)

Corporate

Month

185
592
217
#9
386
701
1*30

1956 - June
July
August
September
October
November
December
1957 - January
February
Marph
April
May
June

561

671
788
1*77
329
877

State and
local government

Other y

20

1*63
16U
35
181*
383
135
201
386
306

37

35

'

100
50

19k

125
25

1*99
21*8
176

39

Large Individual Issues Offered July 1 through August 2

Issuer

Type j/

Coupon
Amount
rate or
Offering
(millions
Rating
Maturity
of
net inter- yield
est cost
dollars)

CORPORATE

I

Southern Calif. Edison Co, 1st ref. mtg.bds. 1*0.0 1982
b 3A
1st mtg. bds. 15.0
Rochester Gas & Elec. Co.
1987
1* 7/8
Common stk.
19.it
Timken Roller Bearing Co.
Central Illinois Light Co. 1st mtg. bds. l5.0 : 1987 U 5 / 8
Deb.
Wisconsin Telephone Co.
30.0
1* 1/2
1992
Washington Water Power Co. 1st mtg. bds. 30.0
1987
u 7/8
West Penn Power Co.
1st mtg.: bds. 20.0 1987
1* 7/8
Deb.
Associates Investment Co.
20.0
1977 ' 5 3 A
Texas Electric Service Co. 1st mtg. bds. 16.0
1987
1*3A
Jersey Central Pwr. &Lt. Co. 1st mtg. bds. 15.0
1987
5
Inland Steel Co. .
1st mtg. bds. 50.0
1987
1* 3/8
First National City Bank .
of New York
Capital stk. 120.0
1st & ref.
Pacific Gas & Elec. Co.
mtg. bds.
60.0
1989
5
Tennessee Gas. Trans. Co.
Deb.
6
25.0
1977
Sears Roebuck Accept. Corp,
Deb.
5Q.0
1982
5
Minneapolis-Honeywell
Regulator Co.
Common stk. 28.2
Deb.
Associates Investment Co.
50.0 1977 5 lA




1*.70
l*.80
1*.57
' 1*.1*3
I1.88
1*.75
5.75
U.65
1*.90
1*.38

1*.95
6.08
5.00

5.25

Aa
A
Aa
Aaa
A
Aa
Aa
A
Aa

Aa
Baa

—

H.lU'

E-2
Large Individual Issues Offered July 1 through August 2 (Contfd)

Type 3/

Amount
Coupon
(millions Maturity rate or
Offering
Rating
of
net interyield
dollars)
est cost

STATE AND LOCAL GOVERNMENT
Salt River Agric. Impr. &
0.0.
Power Dist., Arizona
5.0
0.0.
Fresno U.S.D., California
7.0
- Metro. Wtr. Dist. of So.
California
Rev.
15.0
Port of New York Auth.
Airport rev. 28.8
0.0.
Cook Co. S. D. No. 205, 111.
5.5
G.O.
Philadelphia S. D., Penna.
12.0
State of Minnesota
Highway rev. 12.0
Atlanta, Georgia
0.0.
15.5
St. Louis Co., Missouri
0.0.
6.8
State of Louisiana
0.0.
10.0
Westport, Connecticut
5.1*
Georgia Rural Roads Auth.
Rev.
17.5
Milwaukee, Wisconsin
Water rev.
10.0
East Baton Eouge Par. S.D.,
Louisiana
G.O.
10.0
State of California
G.O.
5o.o
State of Oregon
15.0
State of New'York
G.O.
27.9
Phoenix, Arizona
0.0.
6.0

0.0.

0.0.

1960-87
1960-77

h.29

1958-69
1958-75/65
1959-76
1959-82
1960-73
1958-86
1958-77
1964-66
1958-77

3.20
3.66
4.19
3.55
2.89
3,39

3.31

3.20-14.25 A
2.70-3.35 Aa
Aa
A
Baa
A
Aa
Aa

1959-86/6? 3.62

2.50-3,
2.70-3
3.10-4,
2.60-3,
2.10-2,,90
2.40-3,,1*5
2.30-3.
3.10-3.fouAl
2.50-3,50
3.00-14,,05
2.65-3,,70

Aa
A
Aa

1958-77
19^9-78/73
1971
1958-77
1960-79

3.97
3-58
3.65
3.09
3.9U

2.60-4.00
2.75-3.55
3.15-3.50
2.20-3.15
3.10-4.00

A
Aa
Aa
Aaa
AS/

$ l/k

5.70

3.28

3.20
3.50

1959-?y68 I4.O8

OTHER
Montreal, Quebec

S.F. deb.

25.0

1977

1/ includes corporate and other security offerings of $15 million and over
State and local government security offerings of $5 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues.
2/ In the case of State and local government securities, G.O. denotes general
obligation; Rev., revenue bonds; G.R., general obligations additionally secured by
facilities revenues; L.L., limited liability obligations secured by pledge of
designated revenues.
4/ Part not reoffered.
J/'Is of 1979 not reoffered.




H.U*

Exhibit F
Forthcoming Large Public Security Offerings for New Capital
(Other than U. S. Treasury) X/
Expected Proceeds from Forthcoming Large Issues
During month following
Subsequent to
date shown
date shown
State and
State and
Corporate
Other.2/
Corporate
local govt.
local govt. Other 2/

Date of
computation
1956 - July 31
Aug. 31
Sept. 28
Oct. 31
Nov. 30
Dec. 31
1957 - Jan. 31
Feb. 28
Mar. 29
Apr. 30
May 31
June 28
July 31

2l*7
369
315
683
136
1*76
591
7h0

U6l

187
525
370
526

131
359
162
18
280
153
153
290
179
97
172
252

37

23
100
35
25
25
25

1,096
1,202
1,009
990
1*81
796
966
795

I486

258
525
1*15
811

726
958
1,197
955
979
763
61*8
631
862
396
388
1*98
5Ht

37

23
100
35
25
25 25

Forthcoming Large Offerings, as of August 2
Issuer

Type

Amount
(millions Approximate date
of dollars) of offering

CORPORATE
General Motors Acceptance Corp.
Northern States Power Company
J. Ray McDermott and Co.

Deb.
1st mtg. bds.
Conv. sub. deb.

100.0
18.0
20.3

Pacific Telephone & Telegraph Co.
•Atlantic Refining Co.
Thompson Products, Inc.

Deb.
Conv. sub. deb.
Conv. sub. deb.

90.0
100.0
19.7

•Southern California Edison Co.
•Public Service Electric & Gas Co.
•Tampa Electric Co.
•Pacific Telephone & Telegraph Co.
American Telephone & Telegraph Co.




1st & ref.
mtg. bds.
1st & ref.
mtg. bds.
1st mtg. bds.
Common stk»
Deb.

August 7
August 11*
August 20
(rights expire)
August 21
August 21
August 27
(rights expire)

1*0.0

August 28

60.0
16.0

August 29
September 6
September 30
(lights expire)
October 29

17.2

256.0

H.Ut

F-2
Forthcoming Large Offerings, as of August 2 (Cont'd)

I

Issuer

Type

Amount
Approximate date
(millions
of offering
of dollars)

STATE AND LOCAL GOVERNMENT
G.R.
State of Connecticut
G.O.
Du Page Co. H.S.D. No. 88, H I .
0.0.
Sacramento Unif. Sch. Diet., Calif,
G.O.
~«Chicago, Illinois
Los Angeles City Sch. Dists., Calif,
G.O.
G.O.
*New York, New York
G.O.
*Tampa, Florida
G.O.
Dade County, Florida
G.O.
*Nassau Co., New York
G.O. .
*State of Massachusetts
Kansas Turnpike Authority
Rev.
G.O.
*San Jose, California
G.O.
Dade Co., Spec. Tax. S.D. No. 1, Fla.
Highway rev.
State of Ohio
Rev.
•^Pennsylvania Gen. State Authority
San Diego Unified Sch. Dist., Calif.
G.O.
G.O.
State of Texas
Jacksonville, Florida
Utilities rev.
University System Bldg. Auth., Ga.
Rev.
Rev.
Pennsylvania Turnpike Commission
Rev.
Inter-American Center Auth.', Fla.
G.O.
New York State Thruway Authority

35.0
7.9
7.0
39.6
a.o
1*0.0
6.3
7.5
21.0
19,0
19.5
5.0
9.5
31.0
25.0
10.0
12.5
30.0
12.0
62.0
20.0
50.0

Aug. 6
Aug. 6
Aug. 7
Aug. 8
Aug. 13
Aug. 15
Aug. 15
Aug. 15
Aug. 19
Aug. 20
Aug. 20
Aug. 21
; Sept. U
Sept. 10
Sept. 19
Oct. 15
1957
1957
1957
1957
1957
1957

OTHER
None
_L
*—Included in table for first time.
1/ Includes corporate and other issues of $1$ million and over; State and
local government issues of $5 million and over.
2/ Includes foreign government and International Bank for Reconstruction
and Development issues.
Note.--Deletions for reasons other than sale of issue: None.