Full text of H.16 Capital Market Developments : January 11, 1957

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got f o r P u b l i c a t i o ^ g , ^ , m . T . m

i

SIX MOUTHS

I

H.li+

January 11, 1957

CAPITAL MARKET DEVELOPMENTS
The volume of l a r g e p u b l i c l y o f f e r e d s e c u r i t i e s was q u i t e
small- l a s t week, but i s expected to be very l a r g e t h i s week. Curing
the week ending January I4 two S t a t e and l o c a l government o f f e r i n g s
- t o t a l i n g $10 m i l l i o n were the only f l o t a t i o n s . This week, corporat i o n s are expected to market issues with aggregate proceeds of
^280 m i l l i o n . S t a t e and l o c a l government o f f e r i n g s amounting t o
§3lj. m i l l i o n and t h e Q100 m i l l i o n bond i s s u e of the I n t e r n a t i o n a l
Bank f o r Reconstruction and Development a r e a l s o scheduled f o r s a l e .
Bond y i e l d s - Yields on corporate and U . S . Government
o b l i g a t i o n s increased l a s t week while those f o r S t a t e and l o c a l
government bonds remained s t a b l e . The increase was q u i t e sharp f o r
y i e l d s on both s e r i e s of Government bonds.
R e o f f e r i n g y i e l d s on new corporate i s s u e s continue t o
increase.. A new Aa - r a t e d , 30-year f i r s t mortgage u t i l i t y i s s u e
was sold t h i s week t o y i e l d U.50 per cent—20 b a s i s points above
t h a t f o r the l a s t comparable i s s u e , an o f f e r i n g made on December 5.2.
Stock p r i c e s - Stock p r i c e s , as measured by the SEC index
of common stocks, increased 1.U p o i n t s l a s t week, c l o s i n g a t 279^2
• on January i+. Daily f i g u r e s through Thursday of t h i s week i n d i c a t e
l i t t l e change in p r i c e 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 i s presented in the attached e x h i b i t s .

Business Finance and Capital Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System,




H I G H - G R A D E B O N D YIELDS

Weekly

CORPORATE

GOVERNMENT

STATE AND LOCAL
GOVERNMENT A a a

Date

.

Corporate
Aaa l /

0 . S. Govt., long-term 2 /
Old s e r i e s

Hew s e r i e s

Spread between
State and
U. S. Govt.
l o c a l govt. (old s e r i e s ) and
Aaa 3 /
Corporate!State and
Aaa
| l o c a l Aaa

(Per oent)
1953 - HighLow
1954 - High
Low
1955 - High
Low
1956 - High
Low

3.1*2
2.99
3.09
2.85
3.17
2.91
3-79
3.07

December 7
December 1I4.
Decenter 21
December 28
January 4

3.72
3.72
3.76
3.79
3.82

3.15 (6/6)

2.78 (12/26)
(1/7) 2.62 (1/7)
(12/28) 3.49 (12/2i;
(3/2) 2.80(2/17)
I S

3 US
3.48
3.53

l / Weekly average of d a i l y f i g u r e s .

2.73
1.98
2.21
1.90
3.03 ( 8 A )
2.34
2.89 (6/10) 2.05
3.39 (12/28) 3 . 0 5
2 . 9 2 (2/3) - 2.17
3-33

3.34
3.38

3-45

3-02
3.01*
3.05
3.05
3.05

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

.13

.84
.30
.61
.29
.70
.54
.68
•32

.37
.34
.27
.31
.29

.33
.34
.44
.43
.48

.38
.19
.43
.32
•34
.13

Average term of bonds included i s 25-26

2/ Weekly averages of d a i l y f i g u r e s . The old s e r i e s includes f u l l y taxable,
marketable 2 l / 2 per cent bonds due or f i r s t c a l l a b l e a f t e r 12 years through
September 1955* and those due or c a l l a b l e in 10-12 years t h e r e a f t e r ; the average
term t o f i r s t c a l l of the bonds included declined from II4. years in e a r l y 1953 t o
11 l / 2 years in early 1956. The new s e r i e s i s comprised of the 3 per oent bond
of 1995 and the 3 1/U per cent bond of 1978-93•
3 / Thursday f i g u r e s . Only general o b l i g a t i o n bonds are included; average
term i s 20 years.
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 d i f f e r e n t s e r i e s .




LOWER - GRADE BOND YIELDS

[,T

STATE AND LOCAL GOVT. B a a

| /i

| Moody's I

| VVa

A

~ j \

h

r

I.

STATE AND LOCAL GOVT. REVENUE

Corporate
Baa 1 /

1953 - High
Low
1954 - High
Low
1955 - High
Low
1956 - Higi
Low

3.89
3.50
3-74
3.44
3.63
3.45
hda
3.58

December 7
December 14
December 21
December 28
January 4

4.32
4.35
4.38
4.4i
446

State and
local govt.
*"3/
(Per cent)
3-79 (6/25)
• 2.96 (1/8)
3.32 (1/7)
2.93(8/5)
3.26 (12/29)
3.02 X l / 6 )
4.22 (12/27)
3.20 (3/8)
4.15
4.17
4.20

4.22

4.22

State and
local govt.
reT
- 2/

3.27 (6/26)

2.71 (1/2)

3.00
2.72
2.99
2.76
3.98
2.89
3.94
3.91
3-97
3.98
3.98

(l/i)
(8/13)
(12/30)
(1/7)
(12/28)
(2/24)

.

l / Weekly average of daily f i g u r e s . Average term of bonds
included i s 25-26 years.
2/ Thursday f i g u r e s . Only general obligation bonds are i n cluded; average term i s 20 years.
. _3/ Friday f i g u r e s . Average r a t i n g of bonds included i s
between Baa and A; average term i s 20 years.
Note.—Highs and lows are for individual series 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 .




Date

Stock price

Common
Trading
volume 2,
(millions y i e l d s 3 /
of shares) (per cent)

Stock narket customer c r e d i t
Customers'
debit b a l - loans t o
"others* 5 /
ances i t /

Total

(Millions of d o l l a r s )
1953 - High
Low
1954 - High
1955 - High
Low
1956 - Higjh
Low
November
December
Demember 21
December 28
January 1+

167.1 (1/2)

15U.0 (9/1,8)

221 Ut (12/31)

156.5
270.7
217.4
— •
295.5

(1/6)
(12/30)
(1/14)
*iA)
(8/3)

257.4 (1/20)
273.1
277.7

276.2

277.8
279.2

2.5
0.9
3.7
1.4
4.6
1.5
3.1
1.5
2.2
2.4
2.3
2.6
2.7

5.75
5.15
5-33
4.20 •
4.22
3.78
4.25
3.86
,

4.25
4.13

2,445
2.055
3.436
2,405
• 4,030
3,537
4,047
3.914

1,665
1.314
2,388
1.653
2,805
2.517
2,810
2.740

780
664
1.048
746
1.241
l.Oia
1.267
1.155

3.946

2.784

1,162
1,161
1,163
1,161

n.a.—Hot a v a i l a b l e .
~™
.
j J SBC index of 265 common stocks, weekly c l o s i n g p r i c e s , 1939-100; converted
to 1057-49"100 by Federal Reserve. The conversion factor i s 123.91.
2/ Averages of d a i l y trading volume on the New York Stock Exchange.
] y Moody's 200 connon stocks; end of month f i g u r e s .
End of month figures f o r member firms of the New York Stock Exchange which
carry margin accounts; excludes balances secured by U. S. Government o b l i g a t i o n s .
5 / Wednesday f i g u r e s for weekly reporting member banks, Excludes loans for
purchasing or carrying U. S. Government s e c u r i t i e s a t banks in New York and Chicago.
Weekly reporting banks account f o r about 72 per cent of loans t o o t h e r s .
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 s e r i e s .




H.11+

Exhibit D
Corporate and S t a t e and Local Government
Security Offerings and Placements
( i n m i l l i o n s of d o l l a r s )

1957
January
February
March

e/l,050

April
May
June

Corporate
1956
579
70k
790
816
l,ili4
. 830

Hew c a p i t a l
1955

S t a t e and l o c a l .
1956
.1957

•e/500^

1995

4o4
#6
390

535
312
. 538

478
886
687 .

377
490
735

427
350
64i

376
199
333

470
249
406

3^25
e/llOO

919
658
408

535
407
1,223

July
August
September

1,066
669
836

64l!
670

October
November
December

778 2 /
e/l,057
o,/950

1,162 y
632
900

2,073
2,790
2,571
e/2,785

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

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

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

4,863
, 7,434
e/10,219

4,217

3,093
4,001
e/5,371

2,803
3,927
5,9H

it
2nd
..-3rd
4th

quarter
quarter
quarter
quarter

1st half
Three q u a r t e r s
Year

6,128
8,821

Excluding f i n a n c e companies 3 /
1st
. 2nd
3rd
4th

quarter
quarter
quarter
quarter

Year

1,617

1,727

2,263
e/2,660

1,434
2,554

e/9,060

7,569

2,520

1,870

"™

e / Estimated.
1 / Includes ^637.2 m i l l i o n AT&T c o n v e r t i b l e debenture i s s u e .
2/ Includes s?571«5 m i l l i o n AT&T common stock i s s u e .
3 / Total new c a p i t a l issues excluding o f f e r i n g s of s a l e s and consumer f i n a n c e
companies.
Note.—Details may not add to t o t a l s due t o rounding.




H.lU

Exhibit E
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 )
S t a t e and
l o c a l government

Corporate

Month

1955 - December
1956 - January
February
March
April
May
June
July
August
September
October
November
December

.

263
95
212
278
395
623
185
#2
217
558
386
701
1*30

50

227
192
hhh
163
157
233
163
161*
35
18U
#3
135
201

-

Other 2 /

50 .
20
37
35

Large I n d i v i d u a l Issues Offered January 1 through U
Issuer

Type 3 /

Coupon
Amount
(millions Maturity r a t e or
O f f e r i n g Rating
of
n e t i n t e r - Yield
dollars)
e s t cost

CORPORATE
None
STATE & LOCAL GOVERNMENT
San Antonio I n d . Sch.
D i s t . , Texas
Fort Worth Ind. Sch.
D i s t . , Texas
OTHER

'2




G.O.

5.0

1958-75

3.76

2*80-3.75

A

G.O.

5.0

1958-75

3.58

2.70-3.80

n„a.

n.a.—Not a v a i l a b l e .
1 / Includes corporate and other s e c u r i t y o f f e r i n g s . o f $15 m i l l i o n 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 i n g s of
m i l l i o n and over.
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 Reconstruction and
Development i s s u e s .
3 / In the 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 bondsj 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; 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 revenues«




Heli*

Exhibit F
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 Following
d a t e shown
S t a t e and
Corporate
Other 2 /
l o c a l govt,

Date of
computation
1955 - Dec. 30
1956 - Jan. 31
Feb. 29
Mar. 30
Apr. 30
May 31
June 29
July 31
Aug. 31
S e p t . 28
Oct. 31
Nov. 30
Dec. 31

;

70 .
176
123
380
568
198
437
2h7
369
315
683
1*36
U76

121
327
220
132
173
332
81
131
359
162
1*8
280

SulDsequent t o
;+.a shown
S t a t e and
Corporate l o c a l govt. Other 2 /
85
376
233
1,013
818
1*1*8
567
.1,096
1,202
1,009
990
1*81
796

——

37

23
100

-

618
917
785
811
832
9ia
690
726
958
1,197
955
979
763

37

23
100

Forthcoming Large O f f e r i n g s , a s of January It
Amount
(Millions Approximate d a t e
of o f f e r i n g
of d o l l a r s )

Type
CORPORATE
Idaho Power Co.
Standard Oil Co. of Ohio
Aluminum Co. of America
New England Tel. & Tel. Co.
I n t e r s t a t e Oil Pipe Line Co.
Sears Roebuck Acceptance Corp.
Household Finance Corp.
Louisiana Power & Light Co.
P a c i f i c Petroleums s Ltd.
Oklahoma Gas & E l e c t r i c Co.
^ P a c i f i c Gas & E l e c t r i c Co.
Armco S t e e l Corp.
Niagara-Mohawk Power Coj.
^Mountain S t a t e s Tel. & Tel,. Co>
American Tel. & T e l . Co,
Michigan Wisconsin Pipe Line Co.
b u t h e r n New England Telephone Co.
"May Stores Realty Corp.




1 s t mtg. bds.
20.0
S.F. deb.
25.0
Deb.
125.0
Deb.
35.0
S.F. deb.
25.0
Deb.
50.0
Deb,
30.0
1 s t mtg. bds.
20.0
Conv. sub. deb.
15.0
1 s t mtg.' bds.
20.0
1 s t and r e f . mtg 35.0
bonds
Common s t k .
60.9
Conv.

deb.

Deb.
Deb.
1 s t mtg. b d s , "
Common s t k .
Gen. mtg. bds.

1*6.2
35.0
250.0
25.0
20,1+
25.0

January
January
January
January
January
January
January
January
January
- January
January

8
8
9
9
9
10
16
16
17
18
23

January 2k
(rights expire)
January 28
(rights expire)
January 29
March
winter
Winter
Winter

F--2

' H.Ik

Forthcoming Large O f f e r i n g s , as of January U (Cont'd)
s l
%)e

Amount
(Millions
of d o l l a r s )

Approximate d a t e
of o f f e r i n g

STATE AND LOCAL GOVERNMENT
G.O,
18.0Los Angeles, C a l i f .
& spur.
lloO
F o r t Lauderdale, F l o r i d a
G.O.
Caddo P a r i s h School D i s t r i c t , La.
5.0
I
- G.O.
10.0
D a l l a s , Texas
. Rev.
5.0
D a l l a s , Texas
G.O.
10.0
Orange County Flood D i s t r i c t , C a l i f .
L.L.
State^of M i c h i g a n 3 /
27.0
Rev0
Georgia Rural Roads Authority
17 c, 5
G.O.
6,0
Spokane Co. Sch. D i s t . No. 81, Wash,
8.0
S t a t e of Colorado
,
Hwyo rev 0
10.0
King Co. Sch. D i s t . No. 1 , Wash,
i
G.O.
G.O,
85,0
S t a t e of C a l i f .
6,0
•^Alabama Highway Authority
I
L.L,
1
Elec, & gas r e v .
20,0
San Antonio, Texas
- 6.0
G.O.
Wichita Sch. D i s t . % . 1, Kansas
G.O.
20,0
Denver, Colorado
^Columbus, Ohio
5.0
I
G.O.
j
G.O.
.
6.7
Birmingham, Alabama
G.O.
DeKalb Co. Sch-Dist. Ga0
5.1
;
!
Rev.
* f b r t of New York Authority
50.0
G.O.
San Diego Unified Sch. D i s t . , C a l i f . !
5.0
62.0
j
Rev.
Pennsylvania Turnpike Commission
;
Rev.
. 20.0
Inter-American Center Auth., F l a .
i
G.O.
New York S t a t e Thruway Authority
50.0
1*2.0
J a c k s o n v i l l e Expressway Authority
j
Rev.
Rev.
F l o r i d a S t a t e Turnpike Authority
185.0
Oklahoma Turnpike a u t h o r i t y
65.0
I
Aev.
.Expressway r e v .
S t a t e of Connecticut
5U.0

January 9
January 9
January 10
January lb
Januafy lU
Januar^r 15
January 15
January 15
January 15
January 15
• January 16
Januaiy 16
January 16
January 17
January 17
January 18
January 22
January 23
January 2k
January 29
February 5
Winter
Winter
Winter
Winter
winter
Winter
Winter

OTHER
I n t e r n a t i o n a l Bank f o r
. Reconstruction & Development

Bonds

100.0

January 10

. *—Included i n t a b l e f o r f i r s t time.
1 / Includes corporate and other i s s u e s of $15 m i l l i o n 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 .
3 / Reduced from #52 m i l l i o n and rescheduled with higher maximum p e r m i s s i b l e
i n t e r e s t cost a f t e r f a i l i n g t o r e c e i v e d bids tin December U.
Note.—Deletions f o r reasons other t h a n s a l e of i s s u e : None.