Full text of H.16 Capital Market Developments : January 12, 1955

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Not f o r Publication DECONTROLLED AFTER SIX MONTHS
H.llj.

January 12, 19$$
CAPITAL MARKET DEVELOPMENTS

Small volume of s e c u r i t y issues l a s t week - Tvro large
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 with proceeds of 6£
million d o l l a r s were issued during the week ending January 7; no
l a r g e public corporate o f f e r i n g s were f l o a t e d . This week 171 mill i o n d o l l a r s of S t a t e and l o c a l issues and a 5>0 million d o l l a r publ i c u t i l i t y o f f e r i n g are scheduled f o r f l o t a t i o n . Public Service
E l e c t r i c and Gas Company postponed i t s 2£ million d o l l a r common
stock issue which had been scheduled f o r o f f e r i n g on January 12
because of market conditions.
General Motors announced ; plans l a s t week to r e g i s t e r
a 325 million d o l l a r common stock i s s u e t o be sold by subscrip- __
t i o n r i g h t s expiring March 7. This issue would be the l a r g e s t
,stock offering ever made by a s i n g l e corporation unless one i n cludes the convertible debenture issues of AT&T. Proceeds from
t h i s issue w i l l be used p a r t l y f o r c a p i t a l expenditures and p a r t l y
f o r working c a p i t a l .
Bond y i e l d s - Yields on outstanding corporate Baa and
high-grade municipal bonds rose one b a s i s point during the week
ending. January 7j corporate Aaa bond y i e l d s declined s l i g h t l y .
Treasury bond y i e l d s rose s u b s t a n t i a l l y l a s t week and again on
January 11.
Stock p r i c e s - Stock p r i c e s , as measured by the SEC
index of 265 common stocks, dropped 3#9 points t o 217.5 l a s t week.
.Daily indexes i n d i c a t e a small decrease on January 11 a f t e r a r i s e
the day b e f o r e . Daily t r a d i n g volume increased t o an average of
b.6 million shares l a s t week but dropped sharply t h i s 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
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 attached hereto:
. 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 O f f e r i n g s
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
'
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 ,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




H. 14

EXHIBIT

A

BOND YIELDS
PER

WEEKLY

CENT

PER

ANNUM

4
CORPORATE

Baa

CORPORATE

A a a

'C—L

U.S.

1

G O V E R N M E N T
LONG-TERM

l / H I G H - G R A D E
MUNICIPAL
W
, STANDARD AND POOR'S CO

I III II II III I IIII I1 II I I I
J
5
1952

1951

Date

D

M

Corporate 1/
Aaa

|

Baa

J
S
1953

U. S . G o v t .
lonfT-tern 2 /

I I I 1 I I I II 1 I
D

M

1952 - High

195U - Kiph
December 10
December 1?
December 23
December 3 1
1955 - J a n u a r y 7

3.03
2.91
3.1i2
2.9?
3.09
2.85
2.69
2.90
2.91
2.92
2.91

3.63
3.k8
3.89
3.50
3.71

y.hh

3.1:5
3.1*5

3.U5
3.hh
y.us

2 . 79
2.#
3.15
2.7b
2.7U

2.hh

2.56
2.58
2.#
2.58

S

Spread between
C o r p o r a t e Aaa
and U. S . G o v t .

( P e r c e n t p e r annum)

1953 - l i i c h

J

.37
.19
.38
.19
J»3
.32
.33
.32
.32

• 3h

.29

5 ? V

T •

2.h3

2.00
3 .lit

2M3

2.56
2.23
2.31
2.31
2.35
2.35
2.36

2 / F e d e r a l R e s e r v e ; w e e k l y a v e r a g e of d a i l y f i g u r e s .
3 / S t a n d a r d and P o o r ' s C o r p o r a t i o n ) Yednesday f i g u r e .




D

i 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

STOCK MARKET

Bank l o a n s
Customers' t o "others"
Connon s t o c k
Trading
for purchases
Stock p r i c e volume 2 j
y i e l d s 3/
b-'il-inces hf
index 1 /
(per cent
(millions
i t i e s 5/
(millions
(19li7-l;9-100) o f s h a r e s )
(millions
of d o l l a r s )
of d o l l a r s )
165.3
151.7
167.1

1952 - H i *
1953 - High

lah.O
221.h
156.5
205-3
216.1
217 .U
221.4
217.5

1952* - High
November
December
December 23
December 3 1
1955 - January 7

1,328
1,21)1
1,665
1,31a

2.0

5.77

0.9
2.5
0.9
3.7

5.33

2,202

li.39
U.20

2,202

i

U.20

1.h

3-2
3.5
3.5
3.7

1,653

295
250
327
252.
1.87
328

li61
L77

187
U82
it 82

of 2t>5 common s t o c k s , w e e k l y c l o s i n g p r i c e , ± 9 3 9 - 1 0 0 ; c o n v e r t e d t o
191*7-119-100 by F e d e r a l R e s e r v e .
2 / ",'eeklv a v e r a g e s of d a i l y t r a d i n g volume

Hew York Stock"Exchange.

l o a n s have f l u c t u a t e d more t h a n t o t a l l o a n s .
n.a.—.>ot. a v a i l a b l e .
N o t e . — ! ! i p h s and lows a r e
for different s e r i e s .




f o r

indiviclua

i s e r i e s and may be on d i f f e r e n t d a t e s .

H.l4

Exhibit C

Corporate and State and Local Government.Security Offerings and Placements
(In millions of d o l l a r s )

1955
January
February
March-

e/500

Mew c a p i t a l

Corporate
1 195U
!j

1953

1955

5a
h39
66o

623
623
666

e/750

•

State and l o c a l
1 1954
I

1953

396
411
565

389
360
426

April
May
June

U86
652
859

779 #5
1,123

734
718
853

329
619
434

July
August
Septeiaber

898
346
776

1*83
#5
753

279
261
619

519
259
475

577
#2?1/

591
e/hOO
e/800 '

453
408
774

October
November
December

895
e/300
5/750

1st quarter
2nd quarter
3rd quarter
ii'th quarter
Year

1,643
1,998
2,021
e/1,945
e/7,607

*

1,912
. 2,578
8,495

1,372
2,334
1,188
e/1,795
e/6,690

1,176
1,112
1,253
1,636
5,477

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

z

1,562
1,931
1,9U
e/l,6l4
e/7,0li8

1,669
1,991 •
1,223 .
2,344
7,227

2/ 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 personal finance
companies.
"
.
e/ Estimated.
Note.—Details may not add t o t o t a l s due to rounding.




Il.lli

Exhibit D
Large Public Security Issues for New Capital
(Other than U . S . Treasury) 1/
Proceeds of Large Issues Offered
(Millions of d o l l a r s )
Month

Corporate

1953 - December
195b - January
February
' March
April
May
June
July
August
September
October
November
December

S t a t e and
l o c a l government
571
161*
213
378
557
557
603
92
86
. W5
388
268
689

9#
289
103 »
. 160
169
32 U
350
336
75
335
iil3
0
9h

Other 2 /

50
119
50
.

30

Large Individual Issues Offered January 1 through 7
Issuer "

Type 3 /

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

CORPORATE
None
' STATE AND LOCAL G0VERNLJ3IIT
S t a t e of C a l i f o r n i a
Caddo Parish School Dist r i c t , Louisiana
OTHER
None




G.O.

60.0

G.O.

5.0

1957-76^

2.03

0.75-2.20

Aa

1956-75

n.a.

O.0O-3.OO

A

D-2
1/ Includes corporate and other security offerings of 1$ million dollars and over; State and local government security o f f e r ings of 5 million and over,
2/ Includes foreign government and International Bank for
Reconstruction and Development issues.
3/ In the case of State arid local government s e c u r i t i e s , G.O.
denotes general - obligation; Rev., revenue bonds; G.R., general
obligations additionally secured by f a c i l i t i e s revenues; and,L.L.,
limited l i a b i l i t y obligations secured by pledge of designated revenues .
h / Bonds maturing 1976 not publicly r e o f f e r e d .




H.lli

Exhibit E

Forthcoming Large Public Security Offerings f o r New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds f r o n Forthcoming Large Issues
|

Date of
computation

During month following •date shown
S t a t e and Other 2 /
Corporate
l o c a l govt.

1953 - Dec. 31
1954 - Jan. 29
Feb. 26
Mar. 31
Apr. 30
Hay 28
June 30
July 30
Aug. 31
Sept. 30
Oct. 29
Nov.. 30
Dec. 31

232
118
108 .
2 Oil
323
332
336
100
33h
3k3
15
9k
18U

179
161 ' .
198
5#
525
596
86
$k
300
383
436
661
567

Subsequent t o
date shown
S t a t e and Other 2]
Corporate
l o c a l govt.

123
50
27

30

.

669
179
690
555
6k7
526
532
303
608
klh
135
2i-6
216

1,238
1,660
1,916
2,789
2,322
1,971
i,52lt
1,553
1,876
2,158
1,957
2,682
2,Hill

138
50
27

30
30
35

Forthcoming Large Offerings, as of January 7
Issuer

.Type

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

CORPORATE
Commonwealth Edison
Public Service E l e c t r i c & Gas Co.
Duquesne Light
.
New En gland Power
Marine Midland Corp. of Buffalo
Consumer Power Company
Public Service of Oklahoma
Kansas City Power and Light
(General Motors Corp.
New England Telephone and Telegraph

SF deb.
P f d . stock
Common stock
1 s t mtg. bonds
Pfd. stock
I d t mtg. bonds
1 s t mtg. bonds
1 s t mtg. bonds
Common stock
Common stock

50.0
25.0
13.5
25.0
20.2
30.0
20.0
16.0
325.0
15.8

January 11
Delayed
January 17
January 18
January 2k
January 25.
.January
-February 15
March 7
March

21.0
118.1
20,0
11.7

January
January
January
January

STATE AND LOCAL GOVERNMENT
New York State Bridge Authority
Public Housing Authorities
Los Angeles School D i s t s . , Cal.
S t . Louis, Missouri




Rev.
G.O.
G.O.

10
11
11
12

E-2
Forthcoming Large Offerings, as of January 7 (Cont'd)
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)
S t a t e of Michigan
*New York City
Harris County, Texas
Philadelphia, Pennsylvania
Southeastern Oakland County Water
Authority, Michigan
-Los Angeles Dept. of Water, & Povrer
Texas Turnpike Company
Sam Houston Company
^Allegheny county, Pennsylvania
*San Antonio, Texas
-a-Milwa.uk ee County, Wisconsin
*Long Beach Unified S. D., Gal.
Florida S t a t e Board of Education
^Houston, Texas
New Jersey Turnpike Authority
Connecticut Expressway
Texas Turnpike Authority
*Los Angeles, C a l i f o r n i a
*San Diego County, Cal.
Inter-American Center Auth., F l a .
Michigan Turnpike Authority
S t a t e of Louisiana
Metropolitan Water D i s t . of So. Cal.
I l l i n o i s Turnpike Authority
Dade County Port Authority, F l a .
Springfield, I l l i n o i s
Allegheny County, Pennsylvania
Sanitary Authority
C a l i f o r n i a Toll Bridge Authority
Florida S t a t e Turnpike Authority
Jersey City Sewerage Auth., H. J .
North Carolina Turnpike Authority

L'.L.
n.a.
n.a.
Rev.
Rev.
Rev.
Rev.
G.O.
n.a.'
n.a.
n.a.
n.a.
n.a.
Rev.
Rev.
Rev.
Rev.
n.a.
G.O.
Rev.
Rev.
n.a.

5.0
65.2
16.0
12.0
5.U
18.0
125-150.0
150.0
7.2
6.0
15.5
16.3
9.2
15.0
30.0
100.0
58.5
5-10.0
8.1*
60.0
186.0
80.0.
8-10.0
390.0
21.0
9.0

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

85.0
235.0
71.0
16.0
200.0

Deb. '

35.0

January
January
January
January

18
19
25
25

January 26
January 26
January
January
February 1
February 1
February 7
February 8
February 8
March It
Winter
. Winter Winter
Spring
Spring
Spring
Spring
Spring
Spring
1955
1955
1955
1955
1955
1955
1955
1955

OTHER
Montreal

January 26

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 foreign 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«:—Not a v a i l a b l e .
*—Included in t a b l e f o r f i r s t time.