Full text of H.16 Capital Market Developments : January 27, 1955

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Not f o r Rib l i e a t i o n
DECONTROLLED

AFTER SIX MONTHS

H.lU

January 2 7 , 195$
CAPITAL mmXT

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
S t a t e and l o c a l government i s s u e s t o t a l i n g 70 m i l l i o n d o l l a r s and
l a r g e c o r p o r a t e i s s u e s ' v/ith gross proceeds of ij.1 m i l l i o n were publ i c l y o f f e r e d f o r new c a p i t a l p u r p o s e s d u r i n g t h e week ending J a n u a r y 2 1 . This week li|2 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 , i n c l u d i n g a 35 m i l l i o n d o l l a r d e b e n t u r e o f f e r i n g b y M o n t r e a l , Canada,
a r e scheduled t o be i s s u e d .
Bond y i e l d s - Y i e l d s . o n o u t s t a n d i n g c o r p o r a t e Aaa, Baa
and U. S . Government l o n g - t e r m bends r o s e one b a s i s p o i n t l a s t week.
D a i l y f i g u r e s show i n c r e a s e s through January 26 f o r t h e T r e a s u r y
o b l i g a t i o n s . High-grade m u n i c i p a l bond y i e l d s d i d not change l a s t
week.
As i n d i c a t e d i n E x h i b i t F, y i e l d s on n e w l y - o f f e r e d 3 0 - y e a r
f i r s t mortgage e l e c t r i c power bonds w i t h A a - r a t i n g were 13 b a s i s
p o i n t s above y i e l d s on s i m i l a r l y r a t e d o u t s t a n d i n g bonds of somewhat
s h o r t e r m a t u r i t y . The i n c r e a s e i n the d i f f e r e n c e between newlyo f f e r e d and seasoned y i e l d s may be due i n p a r t t o c o n t i n u e d rumors
of p l a n s f o r l o n g - t e r m f i n a n c i n g by t h e T r e a s u r y , r e s u l t i n g i n u n d e r w r i t e r s e x p e r i e n c i n g some d i f f i c u l t y i n moving new i s s u e s .
Stock p r i c e s r i s e - Stock p r i c e s , a s measured by the SEC
index of 2^5 common stocks]" r o s e two p o i n t s t o 217.6 d u r i n g t h e week
ending J a n u a r y 2 1 . L i t t l e change o c c u r r e d d u r i n g t h e f i r s t two days
of tkti-B week, b u t a s h a r p i n c r e a s e was i n d i c a t e d on January 2 6 . T r a d " i n g volume dropped t o an average of 2.8 m i l l i o n s h a r e s p e r day i n t h e
week e n d i n g January 2 1 .
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 - Llore d e t a i l e d information concerning recent c a p i t a l
market developments w i l l be found i n the f o l l o w i n g e x h i b i t s which
are attached h e r e t o i
~

.

A - Bond Y i e l d s
B - Stock Market
C - C o r p o r a t e 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 thart
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
t h a n U. S . T r e a s u r y )
F - Y i e l d s on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A

Business Finance and Capital 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. 14

EXHIBIT

A

BOND YIELDS
WEEKLY

PER

CENT

PER

ANNUM

C O R P O R A T E Baa

CORPORATE A a a

GOVERNMENT

/HIGH-GRADE

MUNICIPAL

1951

1952

Date

Corporate 1 /
Aaa

1954

1953

|

Baa

U. S . Govt. I Spread between
l o n g - t e r m 2 / 1 Corporate Aaa
and U. S . G o v t .

'5 5

HighMun. 3 /

(Per c e n t per annum)
1952 - High
1953 - High
1951* - High
December 23
December 31
1955 - January 7
January lit
January 2 1

3.03
2.91
3.1*2
2.99
3.09
2.05
2.91
2.92
2.91
2.92
2.93

3.6]

3.as

3.89
3.50
3.7k
3.W:
3.1*5
3.a
3.15
3.15
3.1*6

2.79
2.56
3.15
•2.7U
2.71;
2.1*1*
2.59
2.58
2.62
2.61*
2.65-

.37
.19
- .38
.19
•1*3
•32
.32

•3H

.

.29
.28
.28

,

2.1*3
2.00
3.H*
2.1*3
2.56
2.23
2.35
2.35
2.36
2.1*0
2.1*0

1 / Moody's I n v e s t o r s S e r v i c 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 .
27 Federal Reserve; weekly average of d a i l y f i g u r e s .
3 / Standard and P o o r ' s C o r p o r a t i o n ; '.Tednesday f i g u r e .
N o t e . — H i g h s and l e w s 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 on d i f f e r e n t d a t e s
for different s e r i e s .




STOCK MARKET

of Shore:

Date

Bank l o a n s
Common s t o c k Customers' t o " o t h e r s "
Trading
f o r purchases
Stock p r i c e volume 2 /
yields 3/
index 1 /
b
a
l
a
n
c
e
s
V
of s e c u r (millions '(per cent
(millions
i t i e s 5/
( 1 9 1 7 - 1 9 - 1 0 0 ) of s h a r e s ) per annum)1
of d o l l a r s )
(millions
of d o l l a r s )

1952 - . H i *
1953 - High
19$u - High
November
December
1955 - January 7
January l b
January 21

165.3
151.7
167.1
1W1.0
221.ii
156.5
205.3
216.1
' 217.5
217 .h
217.6

2.0
0.9
2.5
0.9
3.7
1.1*
3.2
3.5
L.6
3.5
2.8

5.77
5.13
5.75
5.15
5.33
1*.20
1*.39
h.20

1,328
1,21,1
1,665
1,31k
2,388
1,653
2,202
2,388

n.a.

n.a. •

295
250
327
252
1*87
328
1*61
177
1*82
183
1*75

19U7-C9-100 by 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 S t o c k Exchange.
3 / Moody's 200 common s t o c k s ; end of month f i g u r e s .
/
5 / End o f month f i g u r e s f o r member f i r m s o f Heir York S t o c k Exchange; e x c l u d e s
b a l a n c e s s e c u r e d 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 w e e k l y r e p o r t i n g member banks i n Mew York and Chicago;
e x c l u d e s l o a n s f o r purchase of U. S . G o v e r n m e n t I s e c u r i t i e s . On March b, 1 9 5 3 , t h e
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 , ' H e w York and
Chicago a c c o u n t e d f o r U5 p e r c e n t of such l o a n s . In the p a s t New York and Chicago
l o a n s 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.




Exhibit C
Corporate and S t a t e and Local Government
Security Offerings 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

Corporate
1954
1
1

%

433
66o

April
May
June

486
#2

July
August
September

#8
346
776

October
Noyember
December

8#
e / 300
e/750

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

1,643
1,998
2,021
E/L,9K$
E/L,60$

New c a p i t a l
1953

1955

623

e/#5

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

1953

#6
411
5^5

389
360
426

734
748 853

329
649
434

483
325
7#

279
261
649

519
259 ,
475

577
429V
1,438- .

594
423

453
408
774

666
; %
1,123

1,912
2,578
8,495

1,372
2,334
1,188
jVl,B79
#,773

1,176
1,412
1,253
1,636
5,477 -

Ex c lu d in g 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 quarter
Year

1,562
1,931
l,91il

frS

1,669
1,991
1,223
2,344
7,227

~TT

][/ 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.
N o t e . — D e t a i l s may not add to t o t a l s due t o rounding.




;

1

H-III.

Exhibit D
Large P u b l i c 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 t h a n U. S . T r e a s u r y ) 1 /
Proceeds of Large I s s u e s O f f e r e d
(Millions of d o l l a r s )

Month

Corporate

1953 - December
1954 - January
February
March
April
May

963
289
103
160
169
324
350
#6
75

July
August
September
October
~ November
December

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

.

to

0
9k

571
164
213
378
557
557
603
92
86
455
388
268
689

Other 2 /

50
119
50

30 ,

Large I n d i v i d u a l I s s u e s O f f e r e d J a n u a r y 1 through 21

Type 3 /

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

Rating

. CORPORATE
Commonwealth Edison
. Duquesne L i ^ i t
New England Power

SF Deb.
Common s t k .
1 s t mtg. bds.

50.0
15.7
25.0

200b

3.13

3.13

Aa

1985

3.25

3.15

Aa

G.O.

60.0

1957-76^

2.03

0.75-2.20

Aa

G.O.

5.0
118 t l

1956-75^
1956-95

2.27
2.3k

0.80-2.45
0.75-2.55

A

G.O.
-"G.O.
L.L.
G.O.

20.0
11.7
5.0
65.2

1956-80
1960-75
1956-74
1956-80

1.51
2.09
2.kl

2.30

0.90-2.50
1.25-2.00
1.00-2.25
1.00-2.80

Aa
Aa
Aa
A

STATE AND LOCAL GOVERMTNT
S t a t e ©f C a l i f o r n i a
Caddo P a r i s h School D i s t r i c t , Louisiana
P u b l i c Housing Auth.
Los Angeles School D i s t r i c t s , California
S t . L o u i s , Missouri
S t a t e of Michigan
New York C i t y




H.lh

•

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 J a n u a r y 1 t h r o u g h 2 1 ( C o n t ' d )

Issuer

Type 3 /

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

Rating

OTHER
None
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 / I n t h e c a s e 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. d e n o t e s g e n e r a l ,
o b l i g a t i o n - ; R e v . , r e v e n u e b o n d s ; 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 p l e d g e of
designated revenues.
V Bonds m a t u r i n g 1976 n o t p u b l i c l y r e o f f e r e d .
l y Bonds m a t u r i n g 197K-L$ n o t p u b l i c l y r e o f f e r e d .




E.IK

Exhibit E

. Forthcoming Large P u b l i c 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 t h a n U. S . T r e a s u r y ) 1 /
Expected Proceeds f r o m Forthcoming Large I s s u e s
During month f o l l o w i n g
date s h a m
S t a t e and o t h e r 2 /
Corporate
local govt.
-

Date of
computation 1953 - Dec. 3 1
1954 - J a n . 29
Feb. 26
Mar. 31
Apr. 30
- Hay 28
June 30
J u l y 30
Aug. 3 1
S e p t . 30
Oct. 29
Nov. 30
Dec. 31

232
118
108
204
323
332
336
100
331
343
%
184

3S

123

498

50

i

27

5:96

86

54
300
383
436

66l

Subsequent t o
date sham S t a t e and
Corporate
local govt.
669

KL9

690
555
617
526
532
303

608
414

30

#7

135
246
216

other

1,238

1,660

2

-

138

1,916

50

2,322

27

2,789

.1,971
1,524
1,553

1,876

2,158
1,957

2,682
2,144

30
30
35

Forthcoming Large O f f e r i n g s , a s of January 2 1
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 )

CORPORATE
Marine Midland Corp. of B u f f a l o
Consumer Power Company
Kansas C i t y Power and Light
General Motors Corp.
New England Telephone and Telegraph
Alabama Paver

20.2

P f d . stock
1 s t n t g . bonds
1 s t mtg. bonds
Common stock
Common stock
1 s t mtg. bonds

325.0
15.8
15.0

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

16.0
12.0
5.0

January 25
January 25
January 26

Rev.
Rev.
G.O.
G.O.

18.0
7.2
6.0

January 26
January 26
February 1
February 1

30.0

16.0

January 24
January 25
February 15
March 7
March
May 3 1

. STATE,AND LOCAL GOVERNMENT
H a r r i s County, Texas
P h i l a d e l p h i a . , Pennsylvania
F a i r f i e l d , Connecticut
S o u t h e a s t e r n Oakland County Mater
A u t h o r i t y , Michigan
Los Angeles D e p t . of VJater & Power
Allegheny County, Pennsylvania
San Antonio, Texas




/

H,lit

E-2
Forthcoming Large O f f e r i n g s , as of January 21 (Cont'd)
Type

Issuer

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

STATE AMD LOCAL GOVERNMENT (Cont'd)
*Miami, Florida
Milwaukee County, Wisconsin
Long Beach U n if ie d S. D., Cal.
Florida S t a t e Board of Education
Louisiana State Building Authority
Florida S t a t e Turnpike Authority
e s t a t e of Louisiana
Houston, Texas
Metropolitan Vfater D i s t . of So. Cal.
New Jersey Turnpike Authority
Connecticut Expressway
Texas Turnpike Authority
Texas Turnpike Company
Sam Houston Company
Los Angeles, C a l i f o r n i a
. San Diego County, C a l i f o r n i a
Inter-American Center Auth., Fla.
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
Sanitary Authority
C a l i f o r n i a T o l l Bridge Authority
Jersey C i t y Sewerage Auth., N. J .
North Carolina Turnpike Authority

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

6.0
15-5
16.3
9.2
9.9
7lw0
10.0
15.0
10.0
30.0
100.0
58.5
125-150.0
.
150.0
5-10.0

a.h

Rev.
Rev.
n.a.

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

Rev.
Rev.

February
February
February
February
February
February
March 3
March it
March 9
"inter
Yilnter
Yf i n t e r
Tiinter
Winter
April 6
Spring
Spring
Spring
Spring 1
Spring
1955
1955
.

2
7
8
8
17
28

1955
1955
1955
1955

OTHER
Montreal

J

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 Rank f o r Reconstruction and
Development i s s u e s .
,
n.a.—Not a v a i l a b l e .
•m—Included i n t a b l e f o r f i r s t time.




Exhibit F
Y i e l d s on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /

Date

A-rated o f f e r i n g y i e l d s
Aa-rated o f f e r i n g y i e l d s
Amount above
Amount above
Actual
Actual
seasoned
y
i
e
l
d
s
(per c e n t ) seasoned y i e l d s
(per c e n t )
(basis points)
(basis points)

1952 average

I/3.I6

. r/13

r/3.32

12

1953 average

r/3.1^3

r/l£

r/3.79

r/27

. 195K average

3.oL

3

3.12

-3

3.20
3.02
*2.93
2.99
3.00
*3.00
Norie
None
3.02
3.03
. None
None

6
0
0

*3.35
*3.20
3.05
3.10
3.11
3.1h
*3.13
3.11
*3.10
3.10 •
None
3.11

-195k - January
February
" March
- April
May
June
July
August
September
October
November
z '
December
1955 - January 19

3.15

$ -

h
1
—•
—

.

3
3

13

.

2
-1 .
-10
-6
0
-2
-1
-1
-3
-2
0

.

. 1 / Covers only 30-year f i r s t mortgage bonds'^ a s r e p o r t e d i n Moody's Bond
S u r v e y . Except where i n d i c a t e d , t h e a c t u a l y i e l d f i g u r e and the amount above
seasoned y i e l d s a r e averages of o f f e r i n g s during, t h e i n d i c a t e d p e r i o d and of
t h e d i f f e r e n c e s between t h e s e new o f f e r i n g y i e l d s and y i e l d s on seasoned i s s u e s
of s i m i l a r q u a l i t y f o r t h e same day. Average m a t u r i t y f o r t h e seasoned i s s u e s
v a r i e s from 26 t o 28 y e a r s .
a — S i n g l e o b s e r v a t i o n , n o t an a v e r a g e .
r / Revised.