Full text of H.16 Capital Market Developments : February 2, 1955

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

F e b r u a r y 2 , 1955

CAPITAL MARKET DEVELOPMENTS
Heavy volume of s e c u r i t y i s s u e s - The volume of l a r g e
i s s u e s o f f e r e d p u b l i c l y f o r new c a p i t a l was lh2 m i l l i o n d o l l a r s
during the week ending January 28 and was made up of $6 m i l l i o n
d o l l a r s of S t a t e and l o c a l government o f f e r i n g s , 50 m i l l i o n of
corporate i s s u e s , and a 35 m i l l i o n o f f e r i n g by Llontreal, Canada.
Only 19 m i l l i o n d o l l a r s of l a r g e o f f e r i n g s a r e t o be f l o a t e d t h i s
week.
February outlook - Total S t a t e and l o c a l government s e c u r i t y i s s u e s a r e estimated a t 850 m i l l i o n d o l l a r s f o r February, not
much below the December 19%k volume, t h e l a r g e s t month on r e c o r d .
Two expected i s s u e s account f o r almost t w o - t h i r d s of the estimate—
the 390 m i l l i o n d o l l a r I l l i n o i s Turnpike Authority i s s u e and the
IliO m i l l i o n Sam Houston Company o f f e r i n g . The former,which Was
p r e v i o u s l y scheduled f o r December o f f e r i n g , w i l l be the l a r g e s t s i n gle i s s u e ever f l o a t e d . The Sam Houston o f f e r i n g had been l i s t e d
f o r January s a l e .
The February corporate estimate f o r new c a p i t a l i s 350
m i l l i o n d o l l a r s , moderately below both the previous month's volume
and t h a t of l a s t February. Only one i s s u e over 15 m i l l i o n d o l l a r s
i s c u r r e n t l y scheduled f o r public o f f e r i n g t h i s month.
Bond y i e l d s - Yields increased on outstanding corporate
Aaa, U. S. Government long-term, and high-grade municipal bonds d u r ing the week ending January 28„ Corporate Baa y i e l d s did not change.
R e f l e c t i n g i n p a r t the T r e a s u r y ' s announcement of an o f f e r i n g of
z
iiO-year bonds, long-term government bond y i e l d s rose moderately on
January 30 and 3 1 but decreased one b a s i s point on February 1 .
Stock p r i c e s - The SEC index of 265 common stocks rose to
221.0, near the a l l - t i m e high l a s t week. A f u r t h e r i n c r e a s e was
indicated by d a i l y indexes on t h i s Ilonday, but t h e r e was a very
small decline on Tuesday.
]




-2-

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
frcm 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 b e found i n t h e f o l l o w i n g 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 Y i e l d s
B - Stock Market.
C - Corporate and S t a t e and Local
Government S e c u r i t y O f f e r i n g s
and Placements
D - Large Public 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 (-Other than
U. S . Treasury)
E - Forthcoming Large Public S e c u r i t y
O f f e r i n g s f o r New C a p i t a l (Other
than U . S . Treasury)

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 the Federal Reserve System.




H.N

EXHIBIT

A

BOND YIELDS
WEEKLY

PER

CORPORATE

CENT PER A N N U M

Baa

CORPORATE

Aaa

A_>

GOVERNMENT
LONG-TERM

I

:

/ H I G H - G R A D E

M

J

S

D

MUNICIPAL

M

Date

J

S

D

M

Corporate 1 /

J

S

'J. S. Govt,
long-tern 2 /

D

M

J

S

Spread between
Corporate Aaa
and U. S. Govt.

D

Highgrade
Hun. 3 /

(Per cent per annum)
1952 - High
1953 - High
195k - High
December 31
1955 - January 7
January lit
January 21
January 28

3.03
2.91
3.U2
2.99
3-09
2.85
2.92
2.91
2.92
2.93
2.9k

3.63
3.US
3.89
3.50
3.7k
3-kk
3-kk
3.US
3;L5
' 3.k6
3.k6

2.79
2.56
3-15
2.7k
2.7k
2 ,kk
2.58
2.62
2.6k
2.65
2.67

.37
.19
.38
.19
.13
.32
.3k
.29
.28
.28
.27

2.k3
3.1k
2.43
2.56
2.23
2.35
2.36
2.k0
2.k0
2.U1

1/ Moody's Investors. Service; weekly average of d a i l y f i g u r e s .
? / 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 .
Mote.—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
for d i f f e r e n t s e r i e s .




M

STOCK MARKET

1951 '

Bate

-

°

"

1952 '

°

1953

°

"

1954 '

° SB"'

Bank,loans
Common stock Customers' t o "otiiers"
Trading
f o r purchases
Stock p r i c e volume 2 /
yields 3/
balances it/
of s e c u r index 1 /
(millions
(per cent
(millions
i t i e s 5/
(19li7-i;9-100) of shares) per annum)
of d o l l a r s ) ( m i l l i o n s
of d o l l a r s )

1902 - High
1953 - High ,
1 9 # - High
December
1955 - High
January
January lii
January 21
January 28

165.3
. 151.7
167.1
" lUi.O
221.1
156.5
216.1
221.0
217 .U
218.it
217.1
217.6
221.0

2.0
0.9
2.5
0.9
3.7
l.U
3.5
U;6
2.8
3.6
3.5
2.8

3-h

5.77
5.13
5-75
5.15
5-33
.It .20
a .20

1,328

'

l,2hl

1,665
1,311:
2,388
1,653
2,388

295
250
327.
252
487
328
177
48]
U75
L80
183

.

his-

181

1 / QT.n inripY nf ?
nom-nnn
nr Vc . r/nnVlv r-lncinr HHOP . iQ^P.inn. mmm T»"t\ori t.n
19li7-C9'«100 by Federal Reserve.
.
2 / Weekly averages of d a i l y t r a d i n g volume oh Mew York Stock Exchange.
3 / Moody's 200 common s t o c k s ; end of month f i g u r e s .
11/ End of month f i g u r e s f o r member firms of Hew 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 f o r weekly r e p o r t i n g member banks i n 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 % 1953, the
l a s t d a t e on which f i g u r e s f o r a l l r e p o r t i n g banks were a v a i l a b l e , New York and
Chicago accounted f o r kS per c e n t of such l o a n s . In the p a s t Mew 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 available.
Note.—Highs and lows are f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t d a t e s
for different s e r i e s .




Exhibit C
Corporate and S t a t e and Local Government
S e c u r i t y O f f e r i n g s and Placements
(In m i l l i o n s of d o l l a r s )

1955
•January
February
March

e/500
e/350

Corporate
1
1954
$hk
U39
660

New. c a p i t a l
1

1953
623
623
666 .

April
May
June

he 6
6#
8#

779
675
1,123

July
August
September

8#
3u6
•776

483
325
753

October
November
Decerbei-

895
e/300
e/750

l s t quarter
2nd q u a r t e r
3rd q u a r t e r
Lth q u a r t e r
Year

1,61I3
1,998
2,021
e/1,9hS
e/7,605

1955
e/535:
e/850

.

.577
k29_,
1,1383/
1,912
2,578
M S i 8,195
•

S t a t e and l o c a l
r
1954
1
396
. hll
#5

3&9
360
k2o

73h .
7hQ
#9
261
619.

# 9 .
6L9:
h3U
'

519
259
175
U53
I1O8
771 .

59k
123
2/062
1,372
2,33k
1,188
P/1,879
F&,773

1953

.

1,176
1,112
1,253
1,636
5jU77

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
itth q u a r t e r
Year

1,562 .
1,931
1,911
e/l,8U0
e/7,275

1,669
1^991
1,223
2,3^
7,227

1/ I n c l u d e s 603" m i l l i o n d o l l a r AT&T d e b e n t u r e i s s u e .
2 / T o t a l 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 p e r s o n a l f i n a n c e
companies,
e/ Estimated,
p/ Preliminary.
N o t e . — D e t a i l s may not add t o t o t a l s due t o rounding.




Exhibit D

H.lh -

Large Public 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
(Other than U. S . Treasury) 1 /
Proceeds of Large I s s u e s Offered
(Millions of d o l l a r s )
Corporate

Month

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

Other 2 /

16U

119

289
103
160
169
324

I9$k - January ,
February
March
April
May
June
July
August
September
October
November
December
: 1955 - January'

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

%

75
335
413
0
94
liil

50

30
35

Large I n d i v i d u a l I s s u e s Offered during January,
Issuer

Type 3 /

Coupon
Amount
O f f e r i n g Rating
(millions Maturity
yield
net i n t e r of
est cost
dollars)

CORPORATE
Commonwealth Edison
Duquesne Light
New England Power
Marine Midland Corp. of
: Buffalo
Consumer power Co.

SF Deb.
50.0
Common s t k .
15*7
1 s t mtg. bds. 25.0

2004

3.13

3.13

Aa

1985

3.25

3.15

Aa

Pfd. stock
20.2
1 s t mtg. b d s . 30.0

1990

3,25

3 Oil

Aa

STATE AND LOCAL GOVERNMENT
S t a t e of C a l i f o r n i a
Caddo Parish School D i s t r i c t , Louisiana
Public Housing Auth.
Los Angeles School D i s t r i c t s , California




G.O,

60.0

1957-76^

2.03

0.75-2.20

Aa

G.O.

5.0
118.1

1956-75-^
1956-95

2.27
2.34

0.80-2.15
0.75-2.55

A
—

G.O.

20.0

1956-80

2.30

0.90-2.50

Aa

H.l4

D-2.
Large I n d i v i d u a l I s s u e s O f f e r e d d u r i n g January ( C o n t ' d )

Issuer

Type 3 /

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

Rating

"TATE AMD LOCAL GOVERNMENT
(Cont'd)
S t . Louis, Missouri
State of Michigan
New York City
Harris County, Texas
Philadelphia, Pa.
F a i r f i e l d , Conn.
Southeastern Oakland Co.
Water & Power Auth., Mich.
Los Angeles Dept. of
Water & Power

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

11.7
5.0
65.2
16.0
12.0
5.0

1960-75
1956-74
1956-80
1956-77
1957-71
1956-75

1.51
. 2.09
2.41
2.41
= 2.30
• 2.05

1,25-2.00
1.00-2.2 <
1 . 0 0 - 2 . 8J
1.00-2.65
1,15-2.500.95-2.25

Aa
Aa
A
A
A
Aa

Rev.

5.4

1959-85

2.96

1.60-3.05

A

Rev.

18.0

1956-85

2.47

1.00-2.65

Aa

Deb.

35.0

1956-74 2

OTHER
CO

1
I

Montreal, Canada

A

~
1 / I n c l u d e s c o r p o r a t e 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 d o l l a r s and
o v e r : 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 i n g s of £ m i l l i o n and o v e r .
2/ I n c l u d e s 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 R e c o n s t r u c t i o n 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 g e n e r a l
o b l i g a t i o n ; Rev., revenue bonds; G.R., g e n e r a l o b l i g a t i o n s a d d i t i o n a l l y s e c u r e d by
f a c i l i t i e s r e v e n u e s ; 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 s e c u r e d by pledge of
designated revenues.
4 / Bonds maturing 1976 n o t p u b l i c l y r e o f f e r e d .
t / Bonds m a t u r i n g 1974-75 not p u b l i c l y r e o f f e r e d .




H.lii

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 from Forthcoming Large I s s u e s
During month f o l l o w i n g "
date shown
S t a t e and Other 2 /
Corporate
l o c a l govt.

Date of
computation

118
108
20k
323
332
336
100
33k
3h3
15
9k
181
16

- J a n . 29
Feb. 26
Mar. 31
Apr. .30
May 28
June 30
J u l y 30
Aug. 31
Sept. 30
Oct. 29
Nov. 30
Dec. 31
- J a n . 31

161 •
198
#5
#5
596
86.
tk
300
333
1^36
661
567
682

Subsequent t o
date shown
S t a t e and
Corporate
local.govt.

50
27

30
—

other

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

k7 9
690
.555
62+7
526
532
303
608
klk
135
2k6
216
k22

2

——

50
—

27

30
30
35

Forthcoming Large O f f e r i n g s , as of January 28
Issuer

Type

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

CORPORATE
1st mtg. bonds
Common stock
Common stock
1st &ref. mtg.bds.
1 s t mtg. bonds

O O CO o o

Kansas City Power and Light
General Hot cars Corp.
New England Telephone and Telegraph
^ P a c i f i c Gas and E l e c t r i c Co.
.Alabama Power
^

February 15
March 7
March
March
May 31

STATE AND LOCAL GOVERNMENT
Allegheny County, Pennsylvania
San Antonio, Texas
Miami, F l o r i d a
Milwaukee County, Wisconsin
Long Beach U n i f i e d S. D . , Cal.
F l o r i d a S t a t e Board of Education
Texas .Turnpike Company
Louisiana S t a t e Building Authority
^Milwaukee, Wisconsin
F l o r i d a S t a t e Turnpike Authority




|

G.O.
G.O.
L.L.
G.O.
G.O.
L.L.
Rev.
n.a.
n #3, #
Rev.

7.2 •
6.0
6.0
15.5
16.3
9.2
liiO.O
9.9
7.8
- 71.0

February
February
February
February
February
• February
February
February
February
February

1
1
2
7
8
8
16
17
23
28

/

H.m

E-2
Forthcoming Large O f f e r i n g s , as of January 28 (Cont'd)
Issuer

Type

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

STATE AND LOCAL GOVEMHIENT ( C o n t ' d )
I l l i n o i s Turnpike AuthorityS t a t e of Louisiana
Houston, Texas
M e t r o p o l i t a n T/ater D i s t . of So. C a l .
New J e r s e y Turnpike A u t h o r i t y
Connecticut Expressway
Texas Turnpike A u t h o r i t y
Sam Houston Company
Los A n g e l e s , C a l i f o r n i a
San Diego County, C a l i f o r n i a
I n t e r - A m e r i c a n Center A u t h . , F l a .
Michigan Turnpike A u t h o r i t y
S t a t e of L o u i s i a n a
Dade County P o r t A u t h o r i t y , F l a .
Springfield, Illinois
Allegheny County, Pennsylvania
Sanitary Authority
C a l i f o r n i a T o l l Bridge A u t h o r i t y
J e r s e y C i t y Sewerage A u t h . , N. J .
North C a r o l i n a Turnpike A u t h o r i t y "

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

Rev.
n.a.

390.0
10.0
15.0
10.0
30.0
100.0
58.2
. ,150.0
5-io.o
8.U
• 60.0
186.0
80.0
21.0
9.0

Rev.
Rev.
Rev".
n.a.

85*0
235.0
16.0
200.0

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

February
Larch 3
March k
March 9
Vfi n t e r
Y.r i n t e r
Winter
V."inter
April 6
Spring
Spring
Spring .
Spring
1955
1955
1955
1955
1955
1955

None
1 / Includes corporate and other i s s u e s of l 5 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 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 for Reconstruction arid
Development i s s u e s .
n.a,—Hot a v a i l a b l e .
->>—Included i n t a b l e for f i r s t time.