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

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Not for Publication DECONTROLLED AFTER SIX MONTHS
H.lU

February 7, 1957
CAPITAL MARKET DEVELOPMENTS

Large public security offerings issued for new capital
last week totaled $>106 million for corporations, including expiration of subscription rights for one large issue, and $76 million
for State and local governments. This week, corporations are expected to market issues with aggregate proceeds of #7b million.
State and local government offerings amounting to &76 million and
a Canadian.bond issue for §35 million are also scheduled for sale.
Recent declines in long-term interest rates appear to be
encouraging a rising volume of State, and local government security
flotations. The substantial increase in issues scheduled for
offering later this month has raised our February estimate of State
and local government bond sales by &125 million to a total of $525
million,
Bond yields - Bond yields declined last week for all
categories of outstanding bonds, except those for corporate Baa's
which remained stable.
Offering yields on new corporate issues also declined. A
new Aa-rated, 30-year, first mortgage electric utility issue for
W.2 million was reoffered this week at a yield of h,29 per cent—11 basis
points below that for the last comparable issue, an offering made
on January 2it.
Stock prices - Stock prices, as measured by the SEC index
of 265 common stocks declined 1.9 points last week, closing at
266.3 on February 1, The volume of trading declined, averaging
*1,8 million shares a day. Daily figures through Wednesday of this
week indicate a sharp decline in prices on Tuesday in increased
activity, with little change on Wednesday.
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.




HIGH-GRADE BOND YIELDS
Weekly

CORPORATE A a o

GOVERNMENT:

: ^ 7 V - V

v

°'°

STATE AND LOCAL
GOVERNMENT Aaa

U. S, Govt., long-term 2 /
Date

Corporate

Old series

New series

Spread between
State and
U. S.
local govt. (old series) and
Aaa y
Corporate!State and
I local Aaa

(Per cent)
1953 - High
Low
195k - High
Low .
1955 - High
Low
1956 - High
Low
1957 - High
Low

3.U2
2.99
3.09
2.85
3.17
2.91
3.79
3.07
3.82
3.72

(6/19) 3.15
2.78
(1/9)
(1/8)
2.7k
(14/23) . 2.kk
(12/23) 2.9k
2.62
(1/7)
(12/28) 3.k9
2.80
(3/2)
(l/U)
3.53
(2/1)
3.20

January It
January 1 1
January 18
January 25
February 1

3.82
3.81
3.78
3.73
3.72

3.53
3.k5
3.30
3.22
3.20

(6/6)
(12/26)
(1/9)
(8/7)
(8/5)
(1.7)
(12/21)
(2/17)

2.73
1.98
2.21
1.90
3.03 (8/5)
2.3k
2.89 (6/10) 2.05
3.39 (12/28) 3.05
2.92 (2/3)
2.17
3.15 (l/k) 3.05
3.29 (2/1)
2.87
n.a.

(l/k)

(2/1)

3.k5
3.kk
3.37 .
3.31
3.29
•

1/ Week]y average of daily figures.

3.05
3.05
3.02
2.96,
2.87

(6/25)
(1/8)
(6/10)
(9/2)
(9/8)
(5/26)
(12/27)
(2/23)
(i/io)
(1/31)

.38
.19
• k3
.32
.3k
.13
• kk
.13
. .52
.29

.8k
.30
.61
.29
.70
.5k
.68
.32
•k8
.26

.29
.36
.k8
.51
.52

.k8
.ko
.28
.26
.33

Average term of bonds included is 25-26

2j Weekly averages of dally figures. The old series Includes fully taxable,
marketable 2 1 / 2 per cent bonds due or first callable after 12 years through
September 1 9 5 5 , and those due or callable in 1 0 - 1 2 years thereafter; the average
term to first call of the bonds included declined from lit years in early 1953 to
1 1 1 / 2 years in early 1956. The new series is comprised of the 3 per cent bond
of 1995 and the 3 l/U per cent bond of 1 9 7 8 - 8 3 .
J / Thursday figures. Only general obligation bonds are included; average
tern is 20 years.
Note.—Highs and lows are for individual series and may be on different dates,
for different series.




EXHIBIT B

LOWER - GRADE BOND YIELDS
Weekly

CORPORATE Baa

STATE AND LOCAL GOVT. Baa
/\
i Moody',
W

I
V

|
-

r
J

I

STATE AND LOCAL GOVT. REVENUE

Corporate
Baa 1/

State and
local govt.
Baa 2/

State and
local govt,
rev. 3/

(Per cent)
1953 - High
195U - High
Low
1955 - High
Low
1956 - High

3.89
3.50
3.7U
3.a
3.63
3-1*5
h.kl
з.58

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

3.79 (6/25)

2.96 (1/8)
3.32
2.93
3.26
3.02
h.22
3.20

(1/7)
(8/5)
(12/29)
(1/6)
(12/27)
(3/8)

3.27 (6/26)

2.71 (1/2)

3.00 (1/1)

2.72
2.99
2.76
3.98
2.89
3.98

(8/13)
(12/30)
(1/7)
(12/28)
(2/21;)
(1/U)

1957 - High

L5o (1/18)
h.h6 (i/W

h.22 (1/10)
I1.O8 (1/31)

3.81 (2/1)

January U
January 11
January 18
January 25
February 1

U.I46

4.22

3.98
3.95
3.90
3.8k

ii.U9
U.50

U.U8

и.ue

It. 22
U.-17

a. 13
U.08

3.81

~
1/ Weekly average of daily figures. Average terra of bonds
included is 25-26 years.
2/ Thursday figures. Only general obligation bonds are included; average term is 20 years.
2/ 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

Trading
volume 2/
(millions
of shares)

Common
yields J/
(per cent)

Stock market customer credit
Customers1
debit bal- loans to
ances j*/ "others"
(Millions of dollars)

167.1
ll*l*.0
221.1*
156.5
270.7
217.U
295.5
257.lt
279.2
266.3

(1/2)
(9/18)
(12/31)
(1/6)
(12/30)
(1M)
(8/3)
(1/20)
(1/1*)
(2/1)
•

273.1
277.7
267.1*
268.2
266.3

2.5
0.9
3.7
1.1*
U.6
1.5
3.1
1.5
2,7
1.8
.2.2
2.1*
2.3
2.1
1.8

5,75
5.15
5.33
1*.20
1*. 22
3.78
1*.25
3.86

2,1*1*5
2,055
3,1*36
2,1*05
It,030
3,537
It,01*7
3,911*

n.a.

n.a.

i t . 25
1*. 13

3,91*6
3,981*

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

2,781*
2,823

780
661*
1,01*8
71*6
1,21*1
1,018
1,267
1,155
1,163
1,114

1,162

1,161
1,11*7
1,11*1

n.a.—Not available.
— — — — — — — — — — — — — — — — —
V SEC index of 265 common stocks, weekly closing prices, 1939-100; converted
to 19u7-l*9"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.
y 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.
jj/ Wednesday figures for weekly reporting member banks. Excludes loans for
purchasing or carrying U. 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 arid may be on different dates
for different series.




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

1957

Corporate
1 1956
I

New capital
1955

State and local
1 1956
I
1957

e/660
5/525

390

535
312
538

April
May-

816
1,144

478 886
687

377
490
735

427
350
641

July
August
September

1,066

597
644

376
199
333

470
249
406

October
November
December

778 ;/
1,057 *

645
e/325
e/400

919
#8
408

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

1,490
1,603
908
e/l,370

1,385
1,418
1,124
1,984

'It, 217
6,128
8,821

3,093
4,001
e/5,371

2,803
3,927
5,911

January
February
March

1st
2nd
3rd
4th

e/1,050
e/l,0C0

579
704
790

535
407
1,223

830

669 ,
836

670

1,162 2/
632
900

e/950

2,073

quarter
quarter
quarter
quarter

2,790

2,571
e/2,785

1st half
Three quarters
Year -

4,863

7,U34
e/10,219

;

404

1955 ^

696

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

quarter
quarter
quarter
quarter

Year

1,617
2,520
2,263
e/2,660
e/9,060

'

1,727
1,870
1,434 '
2,554
7,569

1/ Includes #637.2 million AT&T convertible debenture issue.
2/ Includes #$71,5 million AT&T common stock issue.
3/ Total new capital issues excluding offerings of sales and consumer finance
companies.
Note.—Details may not add to totals due to rounding.




Exhibit E

H.lli

Large Public Security. Issues for New Capital
(Other than U. S. Treasuiy) 1/
Proceeds of Large Issues Offered
(Millions of dollars)
Month
1956 - January
February
March
April
May
June
July
August
September October
November
December
J1957 - January

Corporate.

'

State arid
local government

Other 2/

192
uuu
163
157
233

95
212
278
-395
623
185
592
217
558
386
701
1*30
567

50

to

16U
35
181
363
• 135
, 201
386

20
37
35
100

Large Individual Issues Offered during January
Issuer

Type j/

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

CORPORATE
Idaho Power Co.
1st mtg. bds.
Standard Oil Co. of Ohio
S.F. deb.
Aluminum Co. of America
Deb.
New England Tel.& Tel. Co.
Deb.
Interstate Oil PL Co.
S.F. deb.
Sears Roebuck Accept.Corp.
Deb.
Household Finance Corp.
Deb.
Louisiana Power & Light Co.1st mtg. bds.
Oklahoma Gas & Electric Co. 1st mtg.bds.
Pacific Petroleums, Ltd. Conv.sub.deb.
Pacific Gas & Electric Co, lst&ref. mtg.
bds.
Armco Steel Corp.
Common stk,




20,0
1987
25.0
1982
125.0
1982
35.0
1986
25.0 ' 1987
50.0
1972
30.0
1977
20.0
1987
20.0
1987
15.0
1977

k 1/2
kl/k
k l/k
k 3/k
kl/k
k 5/8
L5/8
k 3/k
k 5/8
5

1986

k 1/2

35.0
60.9

k.$0
ii.25
U.25
li,60
ii.25
k.57
h.6o
k.6?
k.k3
it.38

Aa
Aa
Aa
Aa
Aa
A
Aa
Aa

f

.H.Ik

E-2

Large individual Issues Offered During January (Cont'd)
Issuer

Type 3/

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

CORPORATE (Cont'd)
Niagara-Mohawk Power Co. Conv. deb.
46.2
Mountain States TeL &Tei; Co.
Deb.
35.0
May Stores Realty Corp.
Gen. mtg. bds. 25.0

1972
1988
1977

4 5/8
4 3/8

4.63
4.30
5. oil

A
Aaa
Baa

STATE AND LOCAL GOVERNMENT
San Antonio Ind. Sch.
Dist., Texas
G.O,
5.0 1958-75 3.76
Fort Worth Ind. Sch.
Dist., TexasG.O.
5.0 1956-82 3.58
Los Angeles, California
G.O.
18.0 1958-87 3.38
Fort Lauderdale , Florida ktr. &swr. rev. 11.0 1957-86 4.51
Caddo Parish Sch. Dist., La.
G.O.
5.0 1958-77 3.49
Dallas, Texas
G.O.
10.0 1957-76 3.31
Dallas, Texas
Rev.
5.0 1957-77 3.33
Orange Co. Flood Dist., Cal,
G.O.
10.0 1958-96 3.33
State of Michigan
L.L.
27.0 1958-77 3.37
Ga. Rural Roads Auth.
L.L.
17.5 1958-72 3.81
Spokane Co.Sch.Dist.No.81,
Washington
G.O,
6.0 1958-80 2.96
King Go. Sch. Dist. No. 1,
• Washington •
G.O.
10.0 1959-77 3.39
State of California
G.O.
85.0 1958-83 3.32
Alabama Highway Authority
L.L,
6.0 1959-76 3.69
San Antonio, Texas
Elec. &gas rev. 20.0 1958-00 3.36
Wichita Sch.Dist. No. l,Kan.
G.O.
6.0 1958-77 3.33
Denver, Colorado
G.O.
20.0 1968-95 3.02
Columbus Sch. Dist., Ohio.
G.O,
5.0 1958-81 2.81
Tulsa, Oklahoma
G.O.
6,5 1959-82 3.32
Birmingham, Alabama
G.O.
6.7 1957-87 3.45
De Kalb Co.Sch. Dist., C-aT
G.O.
5.1 1958-82 3.43
Boston Metro. Dist., Mass.
G.O.
8.2
1957-87 2.92
Port of New York: Auth,
Rev.
50.0
1987
3.54
S.tate of Connecticut
G.O.
29.2 1958-77 2.61
Austin, Texas
Util. rev.;
4.7 1960-79 3.13
Austin, Texas
G.O.
3.7 1958-87 3.22




2.80-3.75

A

2.70-3.80 A
2.50-3.50 Aa
3.00-4.50 Ba,
2.50-3.25 A
2.50-3.35 A
2.40-3.25 ' Aa
2.50-3.55=/ Aa
2.50-3.35 Aa
3.00-3.75 A
2.40-2.90

Aa

2.65-3,40 A
2.60-3.40 Aa
2.90-3.70 A
2.50-3,,30 Aa
2.10-3,135 A
2.65-3-,05 Aa
2.25-2,85 Aa
2.60-3.35 A
2.50-3.50 A
2.50-3.50 A '
2.10-3.oo Aa
A
3.48
2.00-2.63 Aaa
2.65-3.15 Aa
2.30-3.25 A

H.l h

E-3
Large Individual Issues Offered During January (Cont'd)

Issuer

Type 3/

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

OTHER
Int. Bank for Reconstruction & Development

Bds.

100.0

1977

h 1/2

h.39

Aa

1/ Includes corporate and other security offerings of $15 million and over;
State and local government security offerings of $$ million and over.
2/ 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; G.R., general obligations additionally
secured by facilities revenues; L.L., limited liability obligations secured b y
pledge of designated revenues.
h/Is of 1993-96 not reoffered.

#

i




H.lU

Exhibit F

Forthcoming Large Public Security Offerings for New Capital
(Other than U, S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
During month following
Subsequent, to
date shown
date shown
State
and
Corporate
Other
2/
C
o
r
p
o
r
atel^^jothera/
local govt.

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

176
123
360
568
198
• h37
2k7
369
683
U36
U76 '
591

327
220
132
173
332
81
131
#9
162
48
280
-153

;

376
233
1,013
818
bhQ
567
1,096
1,202
1,009
990
1*81
796

37

23
100
35

966

917
785
• 811
832
9U1
690

726
958
1,197
. 955
979
763
6U8

37

23
100
35

Forthcoming Large Offerings, as of February 1
Issuer

Type

Amount
Approximate date
(millions
of offering
of dollars)

CORPORATE
Carrier Corp.
- Douglas Aircraft Co.
Stanrock Uranium Mines, Ltd.
* Potomac Electric Power Co.
•^Trans-Canada Pipe Lines, Ltd.
Ohio Edison Co.

Conv. sub. deb.
Conv. sub. deb.
1st mtg. bds.
Deb.
Deb. & common stk.
"Common stk.

18.0
30.0
26.0
18.0
20.8
27.0

Southern California Edison Co.
Socony Mobil Oil Co.

lst&ref.mtg. bds.
Common stk.

Colorado Fuel & Iron Corp.

Conv. S.F, deb.

19.9

Conv. deb.

171.8

Phillips Petroleum Co.




37.5
200.0

February 6
February 6
February 6
February lit
February 15
February 15
(rights expire)
February 19
February 19
(rights expire)
February 23
(rights expire)
February 25
(rights expire)

H. lit

F-2

Forthcoming large Offerings,, as of February 1 (Cont'd)
Type

Issuer

Amount
date
(millions Approximate
of offering
of dollars)

CORPORATE (Cont'd)
American Natural Gas Co.
s-United Gas Corp.
Potomac Electric Power Co.
Anaconda Co.

Common stk,

28.0

1st. coll. tr.
Preferred stk.
Common stk.

35.0
15.0
100.0

Carw. deb.

•^Consolidated Edison Co.
American Tel. & Tel. Co.

. Deb.
1st mtg, bds.

Michigan Wisconsin Pipe Line Co,

55.1
250.0
25.0

February 25
(rights expire)
February 27
February 28
March 5
(rights expire)
March 15.
(rights expire)
March 26
(rights expire)
Winter

STATE AND LOCAL GOVERNMENT
G.O.
Milwaukee Co., Wisconsin
G.O.
San Diego Unified Sch. Dist., Calif.
New York, New York
| - G.O.
| Fresno Unified Sch. Dist., Calif.
G.O.
* Public Housing Authorities
1
G.O.
State of Missouri
Swr. rev.
Allegheny Co. Sanitary Auth., Pa.
G.O.
^State of New York
G.O.
San Francisco (City & Co.),Calif,
G.O.
St. Louis, Missouri
G.O.
El Paso Co. Sch. Dist. No. 11, Colo,
*Los Angeles, Dept. of Wtr. & Pwr., Calii
Rev.
G.O.
^Commonwealth of Massachusetts
Elec. rev.
•^Jacksonville, Florida
G.O.
Houston Ind, Sch. Dist., Texas
G.O.
^Seattle, Washington
Rev, .
Pennsylvania Turnpike Commission
. Rev.
Inter-American Center Auth,', Florida
New York State Thruway Authority
G.O.
Rev.
Jacksonville Expressway Authority
Florida State Turnpike Authority
Rev.
Rev.
Oklahoma Turnpike Authority
Expressway rev,
State of Connecticut
OTHER
Quebec Hydro-Electric Commission
:




February U
February 5
February 5
February 5
February 6
February 13
February lU
February Ik
February 18
February 19
February.20
February 20 .
February 26
February 26
March 1
March 1
Winter
Winter
Winter
Winter
Winter
Winter
Winter

11.2
5.0
25.2
5.5
28.6
20.0
15.0
1*0.0
23.6
12,1
6.9
9.0
83.0
8.0
16.8.
6.5
62.0
20.0
50.0
U2.0
185.0
65.0
51.0
-

Deb.
L

35.0

"

February 6

^

'

H.lU

F-3

-*—Included in table for first time,
1/ Includes corporate and other issues of $15 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.