Full text of H.16 Capital Market Developments : January 20, 1955

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DBCONTBOLLE0

after six MONTHS
January 20, 195&

H.1U

CAPITAL MARKET DEVELOPMENTS'
Moderate volume of s e c u r i t y o f f e r i n g s l a s t week - Large
State and l o c a l government o f f e r i n g s t o t a l i n g 150 million d o l l a r s
and a $0 m i l l i o n dollar debenture issue of a public u t i l i t y company
were p u b l i c l y f l o a t e d during the week ending January 11*. Large c o r porate and State and l o c a l i s s u e s aggregating 111 million d o l l a r s
are scheduled f o r o f f e r i n g t h i s week.
.
Bond y i e l d s - Yields on outstanding corporate Aaa and
long-term U . S . Government obligations rose s l i g h t l y during the
week ending January 11*. An increase of four b a s i s points occurred
i n high-grade municipal bond y i e l d s due in p a r t t o a heavy schedule
of o f f e r i n g s and to continued rumors of a long-term Treasury bond
i s s u e . Corporate Baa y i e l d s remained unchanged l a s t week but i n creased s l i g h t l y in the f i r s t p a r t of t h i s week.
Further increase in customers 1 debit balances - Customers'
d e b i t balances., excluding borrowings f o r carrying U. S. Government
s e c u r i t i e s , of member f i r m s of the New York Stock Exchange, i n creased 185 million d o l l a r s during December, t o t o t a l 2,388 million
a t the end of t h e month. The following are November and December
195k f i g u r e s f o r stock market c r e d i t outstandings
(Millions of d o l l a r s )
November

December

Customers' debit balances - t o t a l

2,21*2

2,h29 .

Customers' d e b i t balances - excluding monqy borrowed f o r carrying
Government obligations

2,202

2,388

Money borrowed by member firms maint a i n i n g margin accounts

1,1*16

1,596

Money borrowed, by member firms
maintaining margin accounts,
on c o l l a t e r a l other than Government obligations

1,353

1,529

Customers' f r e e c r e d i t balances

972

1,019

1,032

1,01(8

Bank loans t o others f o r p u r chasing and carrying^stiteuri t i e s ( l a s t Vfednesptiy of month weekly r e p o r t i n g member banks,
excluding Governments f o r New York
and Chicago reporting banks)




H.lli
last
week
to a
ther

—2—
The SEC index of 26£ common' stocks decreased one p o i n t
week. Daily i n d e x e s . i n d i c a t e d a drop on t h e f i r s t day of t h e
but a s l i g h t r i s e on January 18 and 19. Trading volume dropped
d a i l y average of 3«f> m i l l i o n shares l a s t week and declined f u r e a r l y 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 exhibits.which
are attached 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 O f f e r i n g s
and Placements
D - Large Public S e c u r i t y Issuesf o r New C a p i t a l (Other than
U . S . Treasury)
E - Forthcoming Large Public Security
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
WEEKLY

PER CENT PER A N N U M

CORPORATE

Baa

CORPORATE

Aaa

GOVERNMENT
LONG-TERM

/ H I G H - G R A D E

MUNICIPAL

1951

19 52

Corporate 3 /

Date

Aaa

19 54

1953 ,

|

Baa

U. S . Govt,
long-term 2 f

Spread between
Corporate Aaa
and U. S. Govt.

'55

High-

(Per cent per annum)
1952 - High
1953 - High
Low
1951 - High
Low
December 17
December 23
December 31
1955 - January 7
January 111 •

'

3.03
' 2.91
3.12
2.99
3.09
2.85
2.90
2.91
2.92
2.91
2.92

3.63
3.18
3.89
3.50
3.7U

3.hk

3.U5
345
3-Uh
3.2.5
345

2.79
2.56
3.15
2.7k
2.7h
2.UU
2.58
2.59
2.58
2.62
2.6k

.37
.19
.38
.1?
43
.32
.32
.32

•3h

.29
.28

2.13
3.m
2.13
2.56
2.23
2.3k
2.35
2.35
2.36
2.U0

1 / lfA/v)irla
C*AW* W y HCOIVJ.Jf Cl*Ci
w TmraeliMis oca
VJ UC&UU
. J.
2 / Fed eral Reserve; weekly average of d a i l y f i g u r e s .
.3/ Standard and P o o r ' s Corporation; Wednesday f i g u r e .
Mote.—Hiphs and lows a r e f o r i n d i v i d u a l s e r i e s and may be cn d i f f e r e n t d a t e s
for different series.




STOCK MARKET

Bank l o a n s
to "others"
Common s t o c k C u s t a n e r s '
Trading
for purchases
volume 2 /
yields 3/
of s e c u r balances h j
(millions
(per cent
(millions
i t i e s 5/
(19i»7-ii9-100) of s h a r e s ) p e r annum)
of d o l l a r s )
(millions
of d o l l a r s )
Stock p r i c e

Date

1952 - High
Low
1953 - High
195b - High
•November
December
December 3 1
1955 - J a n u a r y 7
• J a n u a r y lit
—

165.3
151.7
167.1
lUt.O
221.it
156.5
205.3
216.1
221.it
217.5
217.ii

'

2.0
0.9
2.5
0.9
3.7
l.it
3.2
3-5
3.7
it . 6
3.5

.
•

.5-77
5.13
5.75
5.15
5.33
it . 2 0
it.39
-it . 2 0

1,328
l,2itl
1,665
l,31it
2,388
• 1,653
2,202
2,388

n.a.

n.a.

295
250
327
252
lt87
328
it6l
lt77
it 82
it 82
!tti3

•

1 / SEC i n d e x of 265 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 , 1939=100; c o n v e r t e d t o
19it7-It9-100 b y F e d e r a l R e s e r v e .
2 / Weekly a v e r a g e s of d a i l y t r a d i n g volume on New York Stock E x c h a n g e .
? / M o o d y ' s 200 common s t o c k s ; 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 f i r m s of New York S t o c k E x c h a n g e ; e x c l u d e s
b a l a n c e s s e c u r e d b y V. S . Government s e c u r i t i e s .
5 / Wednesday f i g u r e s f o r w e e k l y r e p o r t i n g member b a n k s i n Hew York and C h i c a g o ;
e x c l u d e s l o a n s f o r p u r c h a s e of U. S . Government s e c u r i t i e s . On March It, 1 9 5 3 , t h e
l a s t d a t e on w h i c h f i b r e s f o r a l l r e p o r t i n g b a n k s were a v a i l a b l e , Mew York and
C h i c a g o a c c o u n t e d f o r it5 p e r c e n t of s u c h l o a n s . I n t h e p a s t New-York and C h i c a g o
l o a n s h a v e 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.—Not available.
N o t e . — H i g h s and lows a r e f o r i n d i v i d u a l s e r i e s and may b e . o n d i f f e r e n t o a t e s
for different series.




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 )
Corporate
1
1954
1

New c a p i t a l
1953

1955

544
439
660

I666'

e/750

April
May
June

486
652
859

July
August
September

898
346
776

January
February
March

e/$QO

October
November
December

8%
s/300
e/750

1st quarter
2nd q u a r t e r
3rd q u a r t e r
4th q u a r t e r
Year

1,61,3
1,998
2,021
5/1,91I5
3/7,607

•

S t a t e and l o c a l
1
1954
1

1953

396
411
565

389
360
426

779
672
1,123

734
748
853

329
649
434-

183
325
753

279
261
649

519
259
475

577
429-j/
1*438*

• 594
e/400
e/800

453
408
774

1,912
2,578

1,372'
2,334
1,188

•1,176
1,412
1,253
1,636
5,477

8,495

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
4th q u a r t e r
Year

1,562
1,931
l,9kl
e/l,'611i
<^7,01,8

1,669
1,991
• 1,223
2,344
7,227

4

1 / 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 f i n a n c e
companies.
•
e / Estimated.
Note.—Details may not add to t o t a l s due t o rounding.




'

Exhibit D

'H.lU

Large Public S e c u r i t y Issuos 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 )

Month

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

1

Corporate

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

963
289
103
160
169
32h
330
336
75
335
W-3
0
9h

571
I6L
213
378
557
557
603

50
119

86
U55
388
#8
6#

—

Other 2 /

50
—
—

%

*30

Large I n d i v i d u a l I s s u e s Offered January 1 through lit

Issuer

Type 3 /

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

CORPORATE
Commonwealth • Edison

SF Deb.

50.0

2001

G.O.

60.0

1957-76^
/Z

2.30
1.51

3.13

Aa

2.03

0.75-2.20

Aa

2.27
2.3k

0.80-2
0.75-2.55

A

0.90-2.50
1.25-2.00

Aa
Aa

3.13

STATE AND LOCAL GOVERNIiENT
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
S t . Louis, Missouri
OTHER




G.O.
G.O.
G.O.

. 5 . 0 - 1956-75118.1
1956-95
2olo
11.7

1956-80
1960-75

—

D-2
1 / Includes corporate and other s e c u r i t y o f f e r i n g s of lf> 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 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 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 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 .
V Bonds maturing 1976 not p u b l i c l y r e o f f e r e d .
5>/ Bonds maturing 197U-75 n o t p u b l i c l y r e o f f e r e d .




1
Exhibit E

H.m

Forthcoming Large Public Security Offerings f o r New Capital
(Other than U. S, Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
During month following
date shown
S t a t e and o t h e r 2 /
Corporate
l o c a l govt.
—

Date of
computation
Dec. 31
Jan. 29
Feb. 26
Mar. 31
Apr. 30
May 28
June 30
July 30
Aug. 31
Sept. 30
Oct. 29
Nov. 30
Dec. 31

179
161
498
555
525
596
86
51*
300
383
1*36
661
567

232
118
108
201*
323
332
336 ^
100
33k
3k3
15
9k
18k

.

123
50

'

27

30
—

Subsequent t o
date shown
S t a t e and
Corporate
l o c a l govt.
669
1*79
690
555
61*7
526
532
303
608
1*11*
135
21*6
216

1,238

1,660

other

o/
_

138

1,916
2,789
2,322
1,971
1,521*
.1,5*3
1,876
2,158
1,957

50
27

30
30
35

2,682
2,1hh

Forthcoming Large Offerings, as of January li*Type .

Issuer^
CORPORATE

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

^

Duqueshe Light
New England Power
"Marine Lidland Corp. of Buffalo
Consumer Power Company
Kansas City Power and Light
General Motors Corp.
New England Telephone and Telegraph
Public Service of Oklahoma
^Alabama Power

Common stock
1st mtg. bonds
Pfd. stock
1st mtg. bonds
1st mtg. bonds
Common stock
Common stock
1st mtg. bonds
1 s t mtg. bonds

15.7

25.0

20.2
• 30.0

16.0

325.0
. 15.8

20.0
15.0

January 17
January 18
January 2l*
January 25
February 15
March 7
March
Winter
May 31

STATE AND LOCAL GOVERNMENT
S t a t e of Michigan
New York City Harris County, Texas
Philadelphia, Pennsylvania




L»L.
G.O.
G.O.
G.O.

5.0

65.2

16.0
12.0

January
January
January
January

18
19
25
25

H.llt

E-2
Forthcoming Large O f f e r i n g s , as of January lL (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)
* F a i r f i e l d , Connecticut
Southeastern Oakland County Hater
A u t h o r i t y , Michigan
Los Angeles Dept. of l/ater & Power
Texas Turnpike Company
Sam Houston Company
Allegheny County, Pennsylvania
San Antonio, Texas
F l o r i d a S t a t e Turnpike Authority
Milwaukee County, Wisconsin
Long Beach Unified S. D., Cal.
Florida S t a t e Board of Education
•K-Louisiana S t a t e Building Authority
Houston, Texas
Metropolitan Water D i s t . of So. Cal.
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
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
S a n i t a r y Authority
C a l i f o r n i a To ll Bridge Authority
J e r s e y City Sewerage Auth., IT. J .
North Carolina Turnpike Authority

5.0
Rev.
Rev.
Rev.
Rev.
. n.a.
G.O. .
Rev.
- n.a.
n.a.
n.a.:
n.a.
n.a.
G.O.
n.a.
Rev.
Rev.
n.a.
n.a.
Rev.
• Rev.
n.a.
Rev.
Rev.
n.a.

5 .It
18.0
125-1^0.0
150.0
7.2
6.0
lh.0
15.5
16.3
9.2
9.9
15.0
10.0
30.0
100.0
58.5
5-10.0
8.k
60.0
186.0
80.0
390.0
21.0
9.0

Rev.
Rev.
Rev.
n.a.

85.0
235.0
16.0
200.0

Deb.

35.0

January 26
January 26
January 26
January
January
February 1
February 1
February 1
February 7
February 8
February 8
February 17
March it
March 9
Winter
ITinter
"[inter
April 6
Spring
Spring
Spring
Spring
Spring
1955
1955
1955
1955
1955 ,
1955

OTHER
Montreal

January 26

1/ Includes corporate and other i s s u e s of 15 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 f o r Reconstruction and
Development i s s u e s .
n.a.—Hot a v a i l a b l e .
a—Included i n t a b l e f o r f i r s t t i m e .