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

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Not f o r P u b l i c a t i o n DECONTROLLED ^ E R SIX MONTHS
H.lii

February 16, 1955
CAPITAL MARKET DEVELOPMENTS

Volume of s e c u r i t y o f f e r i n g s small - S t a t e and l o c a l government i s s u e s total£ng~IITmIlIIon - doIIars were the only l a r g e publ i c o f f e r i n g s f o r new c a p i t a l made during t h e week ending February 11.
The volume of large s e c u r i t y i s s u e s t o be f l o a t e d t h i s week i s 81 m i l lion dollars.
,
.
General Motors Acceptance Corporation announced plans- f o r
i s s u i n g 250 m i l l i o n d o l l a r s of c o n v e r t i b l e d e b e n t u r e s , p r o b a b l y i n
March, f o r new c a p i t a l p u r p o s e s . This would be t h e l a r g e s t p u b l i c
debt o f f e r i n g ever made by the f i n a n c e company. The expected March
volume w i l l a l s o i n c l u d e t h e 328.6 m i l l i o n d o l l a r common s t o c k s u b s c r i p t i o n i s s u e of General Motors C o r p o r a t i o n .
The February e s t i m a t e of S t a t e and l o c a l o f f e r i n g s has
been r e d u c e d t o $k0 m i l l i o n d o l l a r s f r o m 850 m i l l i o n because t h e
I l l i n o i s Turnpike A u t h o r i t y 390 m i l l i o n i s s u e i s now expected t o
be o f f e r e d i n March r a t h e r t h a n t h i s month.
Bond y i e l d s - Corporate Baa o u t s t a n d i n g bond y i e l d s i n c r e a s e d one p o i n t , c o r p o r a t e Aaa y i e l d s did n o t change, and y i e l d s
on l o n g - t e r m Treasury o b l i g a t i o n s and h i g h - g r a d e m u n i c i p a l bonds
d e c r e a s e d d u r i n g the week ending F e b r u a r y 11. A s l i g h t r i s e occurred
i n the Government y i e l d s t h e f i r s t p a r t of t h i s week.
Customers' d e b i t b a l a n c e s i n c r e a s e - Customers' d e b i t b a l a n c e s , e x c l u d i n g borrowings on U. S . Government s e c u r i t i e s , of memb e r f i r m s of t h e New York Stock Exchange, i n c r e a s e d 129 m i l l i o n d o l l a r s d u r i n g January t o t o t a l 2,517 m i l l i o n a t t h e end of t h e month.
Honey borrowed on c o l l a t e r a l o t h e r than U. S. Governments, by member
f i r m s m a i n t a i n i n g margin a c c o u n t s , i n c r e a s e d 98 m i l l i o n d o l l a r s and
t o t a l e d 1,696 m i l l i o n a t t h e end of J a n u a r y .
The SEC i n d e x of 265 common s t o c k s r o s e t o a r e c o r d l e v e l
of 2 2 8 . 1 l a s t week, but d a i l y i n d e x e s i n d i c a t e d s l i g h t d e c r e a s e s on
Monday and Tuesday of t h i s week.




Further d e t a i l s on c a p i t a l market developments a v a i l a b l e
from e x h i b i t 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
market developments w i l l be found i n the following e x h i b i t s which
are a t t a c h e d h e r e t o :
A - Bond Yields
B - Stock Market
C - Corporate, and S t a t e and Local
Government S e c u r i t y Offerings
and Placements
D - Large Public S e c u r i t y Issues
f o r New C a p i t a l (Other than
U. S. Treasury)
E - Forthcoming Large Public S e c u r i t y
Offerings f o r New C a p i t a l (Other
than IK S . Treasury)

Business Finance and C a p i t a l Markets S e c t i o n ,
•Division of Research and S t a t i s t i c s ,
Board- of Governors of the Federal Reserve System.




EXHIBIT

H. 14

A

BOND YIELDS
PER CENT PER A N N U M

WEEKLY

4
CORPORATE

Baa

CORPORATE

Aaa

4

I'xr
U.S.

i

i

v

i

GOVERNMENT
LONG-TERM

/V

V

HIGH-GRADE MUNICIPAL
n . o n AND POOR'S CORP.

I 1 I I I III ' ' I '

1953

1952

Corporate 1 /

m

u . s . Govt,
long-term 2/

1954

Spread between
Corporate Aaa
and U. S. Govt.

Hi#igrade
Hun. 3 /

(Per cent per annum)
1952 - High
1953 - High
1951* - High
Low
1955 - High
Low
January 1U
January 21
January 28
February It
February 11

3.03
2.91

3.12

2.99,
3-09
2.85
2.97
2.91
2.92

2.93

2.91*
2.97
2.97

3.63
3.US

3.89
? £

3.1*1*
3.1*7
3.U5
3.U5
3.1*6
3.U6
3.1*6
3.1*7

12.71*

2..kl*
2.70

2.62

2.61*
2.70
2.69

2.1*3

.37
.19
.38
.19
.1*3
.32
.29
.27

2.00

3.H*
2.1*3
2.56

2.23

2.1*3
2.36
2.1*0

.28
.28

2.1*0

2.1*1

.27
.27

2.1*3
2.1*1

.28

• 1/ Moody's Investors Service; weekly average of d a i l y f i g u r e s .
2 / Federal Reserve; weekly average of d a i l y f i g u r e s .
3 / Standard and Poor's Corporation; Wednesday f i g u r e .

:

Note.—Highs and lows* are f o r individual s e r i e s and may be m d i f f e r e n t c
for different series.




STOCK MARKET

-—

/

T

- -

W f V
•

;

!
i

j

.
i

Date

Bank loans
Conmon stock Customers' to "others"
Trading
Stock p r i c e volume 2 /
f o r purchases
y i e l d s 3/
incjex 1 /
of securbalances 4 /
(per cent
(millions
(1947-19=100) of shares) per annum)
(millions
ities 5/
of d o l l a r s ) (millions
of d o l l a r s )

1952 - Hi#i
1953 - High
Lew
1951 - High
Decent) er
1955 - High
January
January 28
February It
February 11

165.3
151.7
167.1
144.0 "
221.4
156.5
216.1
223.1
217.4
218.4
221.0
225.4
228.1

2.0
0.9
2.5
0.9
3.7
1.U
3.5
4.6
2.8
3.6
3.4
3-3
3.4

5.77
5.13
5.75
5-15
5-33
4.20
4.20

1,328
1,241
1,665
1,314
2,388
1,653
2,388

4.22

2,517

n.a.

.

295
250
327
252
487
328
477
488
475
481
483
486
488

"t /
Inrfov nf
nmn on c
Ire . wooVIv
"ioio-mn.
1947-^*9=100 by Federal Reserve.
2 / Weekly averages of d a i l y trading volume on New York Stock Exchange.
3 / Moody's 200 common stocks; end of month f i g u r e s .
t / End of month f i g u r e s f o r member firms of New York Stock Exchange; excludes
balances secured by U. S . Government' s e c u r i t i e s .
5 / Wednesday f i g u r e s for weekly reporting member banks in Mew York and Chicago;
excludes loans f o r purchase of U. S. Government s e c u r i t i e s . On March &, 1953i the
l a s t date on which f i g u r e s f o r a l l reporting, banks were a v a i l a b l e , New York and
Chicago accounted for 1x5 per cent of such l o a n s . In the past New York and Chicago
loans have f l u c t u a t e d more than t o t a l l o a n s .
n.a.—Not a v a i l a b l e .
•
Note.—Highs and lows are for individual s e r i e s and may be'on d i f f e r e n t dates
for different series.




H.1U

Exhibit C
Corporate and' S t a t e and Local Government
S e c u r i t y Offerings and Placements
(In m i l l i o n s of d o l l a r s )

1955
January
: February
March

e/ZiSO
e/350

April
May
July
August
September
October
November
December

Corporate
1?5IT

1953

1955

SWx
k39
660

623
#3
666

e/535
e/5Lo

ii 86
6#
859

779
675
1,123

,898
' 346
776

183

8#
e/300
e/750

1st q u a r t e r
2nd q u a r t e r
3rd q u a r t e r
1+th q u a r t e r
Year

New c a p i t a l

1,613
1,998
2,021
e/1,945
e/7,605

1

s

S t a t e and l o c a l

r

1951m

'

1953

3#
411
565

389
360
126;

734
7U8
853

329.
649 •
U3U

279: .
261
649

519
259
175

s .

59k'
• 123
p/862

153
408
77k

• 1,912
2,578

1,372
2,33k
1,188
p/1,879
p/6,773

1.176
1,412
1,253
1,636
5.177

1,1381/

M S /
8,195

Excluding f i n a n c e companies 2 /
1st quarter
2nd q u a r t e r
3rd q u a r t e r
iith q u a r t e r
Year

1,562
1,931

1,9a

e/1,840
e/7,275

1,669
1,991
1,223

-

2,3a

7,227

2/ Total 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 personal financecompanies.
e / Estimated.
p / Preliminary.
Note.—Details may not add t o t o t a l s due t o rounding.




II.Ill

Exhibit D
Lot go 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 )
.State and
l o c a l government

Corporate

Month

289
103
160
169
32k
350
336
75
3#
>13
0
94
141

1954 - January
February
March
April
Kay
June
July •
August
September
October
November
December
195-5 - January-

Other 2 /

119.

164
213
378
557
557
603
92
86
455
388
268
689
341

.

50
—
—
—

30
35

Large Individual Issues Offered February 1 through 11
Type 3 /

Issuer

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

CORPORATE
Allied Stores

Common s t k . • I6.li

STATE AND LOCAL GOVERNMENT
Allegheny Co., Pa.
Miami, Florida
Milwaukee County r "Jis.
• Long Beach Unified
School D i s t r i c t , Cal.
Florida S t a t e Board of
Education
San Antonio, Texas
'
None

OTHER




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

7.2
6.0
. 15.5

G.O.
• L.L.
G.O.

1956-85
1956-81
1956-62

2.37
3.09
1.43

16.3

1956-75 '

2.48

0.90-2.50

A

9.2
6.0

1956-75
1957-70

Var.
2.36

1.00-2.75
1.20-2.55

A
Baa

0.90-2.55
1.20-3.10
0.85-1.45

A
Baa
Aaa .

H.lh

,

D-2

1

1/ Includes corporate and other s e c u r i t y o f f e r i n g s of l £ m i l l i o n d o l l a r s and over5 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 5 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 / In t h e 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.,
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.




H.li;

Exhibit E
Forthcoming Large Public S e c u r i t y Offerings f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Expected Proceeds fro'm Forthcoming Large I s s u e s
During month following
date shown
S t a t e and Other 2 /
Corporate
l o c a l govt.

Date of
computation

118
108
20U .
323
332
3#
100
33k
3h3
15
9h
iQb
16

19$h - J a n . 29
• Feb. 26
Mar. 31
Apr. 30
May 28
June 30
J u l y 30
Aug. 31
S e p t . 30
'
Oct. 29
Nov. 30
Dec. 31
1955 - J a n . 31

161
198
555
525
596
' 86
5b.
300
383
I#
661
567
682

.

Subsequent t o
date shovm
S t a t e antL Other y
Corporate
l o c a l govt.

__
50
27

.

30 .

U'79
690
555
6b7
526
532303
608
bill
135
2U6
216
1*22

1,660
1,916
2,789
2,322
1,971
1,52k
1,553
1,876
2,158
1,957
2,682
2,mu
1,961

50
27

30
30
35

Forthcoming Large O f f e r i n g s , as of February 11
Issuer

Type

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

CORPORATE
Hilton Hotels
Deb.
Kansas City Power and Light
1 s t mtg. bonds
*Uay Department S t o r e
.SF deb.•MUnion Oil Company
Conv. deb.
General Motors Corp.
Common stock
. New England Telephone and Telegraph
Common stock
P a c i f i c Gas and E l e c t r i c Co.
1st &ref.mtg.bds.
^General Motors Acceptance Corp.
Deb.
Public Service E l e c t r i c & Gas
..Bonds
Alabama Power
1 s t mtg. bonds

39.9
16.0
25.0
21.0
328.6
15.7
50.0
250.0
50.0
15.0

February lit
February 15
March 2
March 2
March 7
March
March
March
March
May 31

STATE AND LOCAL GOVERNMENT
Huntington, New York
Baltimore County, Maryland
Louisiana S t a t e Building Authority
*Fort "Jorth, Texas




|

• G.O.
G.O.
L.L.
G.O.-Rev.

5.6
10.0
9.9
8.5

February
February
February
February

16
16
17
21

H.lii

E-2
Forthcoming Large O f f e r i n g s , as of February 11 (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 AND LOCAL GOVERNMENT (Cont'd)
Milwaukee, V/iscons i n
Sam Houston Turnpike Corp.
Texas Turnpike Company
Washington Suburban S a n i t a r y D i s t r i c t , Maryland
F l o r i d a S t a t e Turnpike Authority
Portland, Oregon •
S t a t e of Louisiana
Houston, Texas
^Multnomah County, Oregon
Metropolitan Water D i s t . of So. Cal.
* S t . Petersburg, F l o r i d a
I l l i n o i s Turnpike Authority
New Jersey Turnpike Authority
Connecticut Expressway
Texas Turnpike Authority
Los Angeles, C a l i f o r n i a :
San Diego County, C a l i f o r n i a
Inter-American Center Auth., F l a .
Michigan Turnpike Authority
S t a t e of Louisiana
Sam Houston Company
Dade County Port Authority, F l a .
Springfield,'Illinois
Allegheny County, Pennsylvania
S a n i t a r y Authority
C a l i f o r n i a T o l l Bridge Authority
J e r s e y City Sewerage Auth., N. J .
North Carolina Turnpike Authority

G.O.
Rev.
Rev.

"

7.0
U6.0
UtO.O

February 23
February 23
February 2k

G.O.
Rev.
n.a.
n.a.
n.a.
n.a.
G.O.
Rev.
Rev,

9.8
' 71.0
8.0
10.0
15.0
15.5
10.0
lil.O
390.0
30.0
loo.o
58.5
5-10.0'
8 .h .
60.0
186.0
80.0
100.0
21.0
9.0

February 2it
February.28
March 1
March 3
Ilarch.li.
March 8
March 9
March 10
March
Winter
Winter
Winter
April 6
Spring
Spring
.
.Spring
Spring
1955
1955
1955

Rev.
Rev.
n.a.
n.a. '
Rev.
Rev.
Rev. ^
Rev.
Rev.
Rev.
Rev.

85.O
235.0
16.0
200.0

1955
1955
1955 1955

OTHER
None
1/ Includes corporate and other i s s u e s of 15 million 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 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 .
n.a.—Mot 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 .




~