Full text of H.16 Capital Market Developments : December 1, 1955

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Hot for Publication, DECOmEOI&ED AFTER SIX MONTHS
H.li; .

December 1, 1955

CAPITAL MARKET DEVELOPMENTS
The volume of large security offerings vras moderately
heavy during the week ending November 25—70 million dollars for
State and local government issues and b$ million for corporate
common stock flotations» This week large corporate offerings are
expected to total 6? million dollars; State and local governments
are scheduled to offer 2? million dollars; and the Union of South
Africa is floating a 25 million bond issue•
Bond yields rise - -Yields on outstanding corporate, State
and local government and U . S . Government long-term bonds increased
last week, as can be seen from the attached exhibits. Daily figures
indicate a further moderate rise in corporate Aaa yields on Monday
and a slight increase in Treasury obligation yields on Tuesday of
this week.
Stock prices - Common stock prices, as measured by the
SEC index of 265 common stocks, rose 1 0 1 points to 268.3 during
the week ending November 25* According to daily indexes, prices
decreased on Monday but regained almost all of the loss on Tuesday
and Wednesday of this week.
More detailed information concerning recent 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.




H I G H - G R A D E BOND YIELDS
W*#kly

CORPORATE A a a

V v
U. S. GOVERNMENT

STATE AND LOCAL
GOVERNMENT A a a

"T
I

!

Corporate
Aaa 1/

I
I U . S . Govt.
f long-term 2/
I

I

I
Spread between
State and local I
U . S . Govt, and
govt., Aaa j / {CorporateIState and
(__
|
Aaa
|local Aaa
(Per cent)

1952 •• High
1953 - High
1954 - High
1955 - High
Low
October 28
November 4
November 11
November 18
November 25

_A_

3.03
2.91
3.42
2.99
3.09
2.85
3.14
2.91

(1/4)
(2/15)
(6/19)
(1/9)
(1/8)
(4/23)
(9/9)
(1/7)

3.10 3.10

3.08 '
( 3.08
| 3.11—

J-'*-

2.79
2.56
3.15
2.78
2.74
2.44
2.94
2.62

2.81

2.79
2.83

2.86
2.88

(12/27)
(5/17)
(6/6)
(12/26)
(1/9)
(8/7)
(8/5)
(1/7)

2.00 (10/23)
1-.65 (5/1)

2.21 (6/10)

1.90 (9/2)
2.34 (9/8)
2.05 (5/26)
2.24
2.19
2.19
2.19

2.21
1.27

.37
.19
.38
.19
.43
.32
.34
.13
.29
.31
.25

.22

.23

1.02
.71
.84
.30

.61
.29
.70
.54
.57

.60
.64
.67
.67

-lZL.

1/ Weekly average of daily figures. Average term of bonds included is 25-26
years,.
2/ Weekly average of daily figures; old series. Average term to first call
of bonds included is 11-14 years.
3/ Thursday figures. Only general obligation bonds are included; average
term is 20 years.
Note.—Highs arid lows are for individual series and may be on different dates
for different series.




EXHIBIT B

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

t / \

1952

1953

Date

Corporate
Baa 1/

!

STATE AND LOCAL GOVT.

1954

1955

State and
local govt.
Baa

1/

|
|
I

State and
local govt.
rev. 3/

(Per cent)
1952 - High
1953 - High
1954 - High
Low
1955 - High
Low
October 28
November 4
November 11
November 18
November 25

JL

3.63
3.48
3.89
3.50
3.74
3.44
3.59
3.45

(1/4)
(5/16)
(9/18)
(1/2)
(1/8)
(12/31)
(11/25)
(1/14)

3.58
3.59
3.58
3.58

3-SI

2.98
2.48
3.79
2.96
3.32
2.93
3.25
3.02
3.23
3.19
3.19
3.19
3.20

(10/23)
(4/17)
(6/25)
(1/8)
(1/7)
(8/5)
(9/22)
(1/6)

2.69
2.27
3.27
2.71
3.00
2.72
2.95
2.76

(12/19)
(4/25)
(6/26)
(1/2)
(1/1)
(8/13)
(9/2)
(1/7)

2.87
2.86
2.86
2.86
2.88

1/ Weekly average of daily figures. Average term of bonds
included is 25-26 years.
'
2/ Thursday figures. Only general obligation bonds are
included; average term is 20 years.
3/ Friday figures. Average rating of bonds included is
between Baa and A; average term is 20 years.
Note.—-Highs and lows are for individual series and may
be on different dates for different series.




Stock price

Stock market customer credit
Trading
Common
(Customers'
Bank
volume 2/
(millions yields _3/ Total |debit bel- loans to
of shares) (per cent)
I ances 4/ "others" J?/
(Millions of dollars)

1952 - High
Low
1953 - High
1954 - High
1955 - High
September
October
November 4
November 11
November 18
November 25

165.3
151.7
167.1
144.0
221.4
156.5
269.7
217.4

(12/26)
(10/24)
(1/2)
(9/18)
(12/31)
(1/6)
(9/23)
(1/14)

263.6
250.4
259.1
265.4
267.2
268.3

2.0

5.77
5.13
5.75
5.15
5.33
4.20
4.22
3.78

1,986
1,804
2,445
2,055
3,436
2,405
3,966
3,537

1,332
1,241
1,665
1,314
2,388
1,653
2,805
2,517

656
552
780
664
1,048
746
1,217
1,018

2.9

3.93
4.12

3,966
3,944

• 2,805
2,749

1,161
1,195.
1,215
1,217
1,217

0.9
2.5
0.9
3.7
1.4
4.6
1.5

2.0

1.9
2.3
2.5

2.2

n.a.—Not available.
1/ SBC index of 265 common stocks, weekly closing prices, 1939=100; converted
to 1947-49=100 by Federal Reserve. The conversion factor is 123.91.
2/ Averages of daily trading volume-on the New York Stock Exchange.
3/ Moody's 200 common stocks; end of month.figures.
4/ 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 all loans
for purchasing or carrying U. S. Governments for 1952; since 1953 only these loans
at banks in.New York and Chicago are excluded. 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.ll;

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

1955- 1
January
February
March

.

546
436
1,261 •

Corporate
195/1
1

State and local
1 1954
1 1953

s

1955

396
111
565

390
360
426.

666

535
312
538

April
May
June

494
903
#7

497
656
842

779
675
1,123

427
350
6I1I

734
748
853

329
649
434

July
August
September

583
651
680

909

183
325
753

470
249
5/39.0

279
261
649

519
259
475

577

e/900

8
877

til
77U

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

e/1,200^
e/650
2,2li3
2,09k
1,917

547
h26635

New capital
1953

S
1,003
290
604
1,608
1,995
1,991
1,896
7,490

,

i,bi/
1,912
2,578

1,385
1,W
eA,109

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

1,176
1,U12 '
1,253
s ®

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

1,791
1,912
1,44*

1,^27
1,927
1,911 ...
1,792
7,158

1,66 9
1,991
1,223
2,3^
7,227

e/ Estimated.
' ' '
'
•
X/ Includes 637.2 million dollar AT&T convertible debenture issue.
2/ Includes 602.5 million dollar AT&T ccnvertible debenture issue.
3/ Total new capital issues excluding offerings of sales and personal finance
companies.
Note*—Details may not add to totals due to rounding.




H.14

Exhibit E
Large Public Security Issues'for-New Capital
(Other than U. S. Treasury) 3/
Proceeds of Large Issues Offered
(Millions of dollars)

Month

Corporate

1954 - October.
November
December
1955 - January
February
March
April
May
r' June
July
August
September
October

State and
local government

. Other 2/

388
268
689
341 '
107
337
238
152
403
278
65
234
716

433
0
121
"^1
63
750
173
483
175
101
405
328
805

30
35
15

•Large Individual Issues Offered November 1 through 25
Issuer

Type 3/

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

CORPORATE
United Gas
New England Tel. & Tel.
National Tea Co.
Pacific Lighting
Michigan Consolidated Gas
Commonwealth Edison
Southern Co.
Kimberly-Clark Corp.

lst&coll.bds.
Deb.
Con?. SF deb,,
Pfd. stock
1st mtg. bds«
Common stk.
Conmon stk.
Common stk.

20.0
30.0
15.0
20.0
30.0
41.6
26.4
18.6

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

10.6'
60.0
7.5
10.0

A
Aa
Baa

1975
1991
1980

3 3/8
3 1/4
3 1/2 .

1980

3 1/2

. 3.35

A

2.87
2.17.
2.44
2.62

1.90-2.82
1.50-2.30
1.80-2.50
2.00-2.70

A
Aa
A
A

3.25
3.20
3.38

STATE & LOCAL GOVERNMENT
Florida State Board of
Education
State of California
Territory of Hawaii
Port of New Orleans, La.




1957-76
1957-81
1958-75
1960-90

H.li*

E-2

Large Individual Issues Offered November 1 through 25 (Cont'd)
Issuer

Type 3/

Coupon
Amount
rate or Offering
(millions
Maturity net interRating
of
yield
est cost
dollars)

STATE & LOCAL GOVERNMENT
(Cont'd)
Hamilton County, Ohio
State of Oklahoma
Dallas, Texas
St. Louis Bd. of Education, Missouri
lid. State Roads Commission
Conmonvfealth of Mass.
Sonoma Co. Flood Control
& Hater Conservation
Dist., Calif.
Ga. Rural Roads Auth.
Orlando, Florida
New York, New York

G.O.
G.O.
- G.O.
, G.O.

5.6 1957-81 U
9,0 1956-61 10.0 1956-75

2.06
1.75
2.38

6.5 1957-75

1.50-2.10
1.35-1.65
1.50-2.1*5

Aaa
Aa
A

2.07

1.1*0-2.10

Aa

L.L.
G.O.

2.1*2
15 cO 1956-70
159.8 1956-2005 . 2.31

1.60-2.1*5
1.50-2.60

Aa
Aa

G.O.
L.L.
Rev.
G.O.

" 5-7 1960-91
1L.5 1957-71
'5.U 1956-81
50.0 - 1956-70

1.75-2.90
1.75-2.70
1.75-2.85
1.75-2.70

Aa ,
A
A
A

2.58
2.70
2.82
2.66

OTHER
None
1/ Includes corporate and other security offerings of If? million dollars and
everj State and local government security offerings of 5 million and over.
£/ Includes foreign government and International Bank for Reconstruction and
Development issues.
.
3/ In the case of State and. local government securities, G.O. denotes general obligation; Rev.,.revenue bonds; L.L., limited liability obligations secured
by pledge of designated revenues.
1*/ 1960-61 maturities not reoffered.




H.lli

Exhibit F

Forthcoming Large Public Security Offerings for New Capital
(Other than U. S. Treasury) l/
Expected Proceeds from Forthcoming Large
Subsequent to
During month follovang
date shown
date shown
State
and
•
Corporate
Other 2/ Corporate State and Other 2/
local govte
local govt.

Date of
computation
195k - Oct. 29
Nov. 30
Dec. 31
1955 - Jan. 31
- Feb. 28
Mar. 31
Apr. 29
May 31
June 30
July 29
Aug. 31
Sept. 30
Oct. 31

1*36
661
567
682
521
208
116
339
3hh
100
184
82*3
330

15
91*
181*
16
710
211
125
160
67
1*07

222
805
202

30-

—

135
21.6
216
1*22
1,395
922
1,^1
850
830
1,135
920
909
1*12

1,957
2,682
2,lWi
1,961
1,978
2,009
1,917
1,861
1,8#
2,018
1,971
2,205
1,650

30
30
35

Forthcoming Large Offerings, as of November 25
Issuer

!

Type

Amount
Approximate date
(millions
of offering
of dollars)

CORPORATE
1st mtg. bds.
18.0
San Diego Gas and Electric Co.
1st & ref. bds.
Baltimore Gas and Electric
30.0
TVheeling Steel
Ccnv» deb.
19.1
100.0
Radio Corporation of America
. Conv. deb.
Consolidated Edison Co„ of New York 1st & ref. bds.
70.0
-^Connecticut Light and Power
1st & ref. bds.
20.0
New Jersey Bell Telephone
Deb.
25.0
Deb. . . 15.0
Sheraton Corporation of America

November
November
November
December
December
December
December
1956

29
29
30
5
6
8
ll*

STATE AND LOCAL GC7.uRNI.iENT

Port of New York Authority
Oakdale Irrigation Dist., Calif.
South San Joaquin Irrigation
District, California
Onondaga.Co. "Vater Authority, M. Y.
Los Angeles, California
Cook County, Illinois
New York Thruway




n.a.
Rev.

16.0
5.3

November 30
November. 30

Rev.
Rev.
G.O.
G.O.
G.R.

5.-3
12.6
20.0
6.8
50.0

November
December
December
December
December

30
6
6
7
7

H.lZt

F-2
Forthcoming Large Offerings', as of November 25 (Cont'd)
Type

Amount
Approximate date
(millions
of offering
of dollars)

STATE AND LOCAL GOVERjlliENT (Cont'd)
San Francisco, California
California Toll Bridge Authority
Connecticut Expressway
^-Milwaukee, Wisconsin
State of South Carolina
•B-LOS Angeles, California
Inter -American Center Auth., Fla.
Oklahoma Turnpike AuthorityPennsylvania Turnpike Commission
Washington State Toll Bridge Auth.
*Salt River Project, Arizona

Rev.
Rev.
n.a.
n.a.
n.a.
Rev.
Rev.
Rev.
Rev.
n.a.

33,3
1*6,0
100,0
6.9

20,0
38.0

25.0
62.0

62.0

227.0

11.0

December 13
December 13
December 13
. December 13
December lij.
January 10
1956
1956
1956
1956
1956

OTHER
Union of South Africa
•RQuebec Hydro-Electric Commission

Bonds
Deb.

25.0

50.0

November 30
December

*—Included in table for first time.
1/ Includes corporate and other issues of 15 million dollars and over; State
and local government issues of 5 million and over,
2/ Includes foreign government and International Bank for Reconstruction and
Development issues •