Full text of H.16 Capital Market Developments : January 4, 1957

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Not for publication DECONTROLLED AFTER SIX MONTHS
H.lLj.

January 4 , 1957
CAPITAL MARKET DEVELOP1.IENTS

No l a r g e s e c u r i t y i s s u e s were p u b l i c l y o f f e r e d d u r i n g
t h e h o l i d a y - s h o r t e n e d week, ending December 2 8 . The only l a r g e
o f f e r i n g s scheduled f o r f l o t a t i o n t h i s week a r e two S t a t e and
l o c a l government i s s u e s , each f o r $5 m i l l i o n .
Bond y i e l d s - Changes i n y i e l d s on o u t s t a n d i n g bonds
were mixed b u t minor l a s t week. Yields on c o r p o r a t e iiaa^s and
B a a ' s , S t a t e and l o c a l government B a a ' s and U. S. Government
(new s e r i e s ) o b l i g a t i o n s i n c r e a s e d s l i g h t l y while t h o s e f o r S t a t e
and l o c a l government A a a ' s remained s t a b l e and U. S. Government
( o l d s e r i e s ) bond y i e l d s d e c l i n e d one b a s i s p o i n t .
January e s t i m a t e s - The c o r p o r a t e volume of new c a p i t a l
i s s u e s f o r January i s e s t i m a t e d a t ^1,050 m i l l i o n , about 5. per
c e n t above t h e December e s t i m a t e and f o u r - f i f t h s above t h e
corresponding t o t a l l a s t y e a r . Included i n t h e t o t a l a r e e x p e c t e d l a r g e p u b l i c i s s u e s t o t a l i n g between v 450 and->500 m i l l i o n .
A s u b s t a n t i a l volume i n take-downs of p r i v a t e placements i s
also expected.
S t a t e and l o c a l governments a r e expected t o o f f e r
*500 m i l l i o n of bonds d u r i n g . J a n u a r y . This would be more t h a n
o n e - t h i r d g r e a t e r than t h e volume e s t i m a t e d f o r December and
about o n e - f o u r t h above l a s t J a n u a r y ' s volume.
Stock p r i c e s - Stock p r i c e s , as measured by t h e S;£C
index of 265 common s t o c k s , i n c r e a s e d 1 . 6 p o i n t s l a s t week,
c l o s i n g a t 277.8 on December 2 8 . The volume of t r a d i n g picked
up, a v e r a g i n g 2 . 6 m i l l i o n s h a r e s a day. Daily f i g u r e s through
Thursday of t h i s week i n d i c a t e a f u r t h e r i n c r e a s e i n p r i c e s .
More d e t a i l e d i n f o r m a t i o n concerning r e c e n t c a p i t a l
market developments i s p r e s e n t e d i n t h e a t t a c h e d e x h i b i t s .

Business Finance and Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




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

CORPORATE A a a

W
SIK,IS
" 'i y- J ®010 *'

U. S. Govt., long-term 2/
Corporate
Aaa y

Date

Old s e r i e s

New series

Spread between
State and
U. S. Govt,
l o c a l govt. (old series).and
Corporate!State and
Aaa J /
Aaa
(local Aaa

(Per cent)
1953 - High
Low
1954 - High
1955 - High
Low
1956 - High
Low

3.42
2.99
3.09
2.85
3.17
2.91
3.79
3.07

November
December
December.
December
December

3.73
3.72
3.72
3.76
3.79

30
7
Hi
21
28

(6A9)
(1/9)
(1/8)
(1/23)
(12/23)
(1/7)
(12/28)
(3/2)

3.15
2.78
2.74
2.1tlx
2.94
2.62
3.1i9
2.80

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

3.36
3.35
3.38
3.49
3.1*8

c / Corrected.
1 / Weekly average of daily f i g u r e s .

n.a.
. 2.73
n.a.
1.98
n.a.
2.21
n.a.
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
3.33
3.33
3.3U
3.38
3.39

3.01
3.02
3.04
3.05
3.05

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

.38
.19
.43
.32
.34
.13
.W*
.13

' .81*
.30
.61
.29
.70
.54
.68
.32

.37
.37
.34
.27
.31

.35
.33
• 34 c/.hh
.43

Average term of bonds included i s 25-26

2 / Weekly averages of daily figures. The old s e r i e s includes f u l l y taxable,
marketable 2 1/2 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 callable in 10-12 years thereafter; the average
term .to f i r s t c a l l of the bonds included declined from 14 years in early 1953 to
11 l / 2 years in early 1956. The new series i s comprised of the 3 per cent bond
of 1995 and the 3 1/4 per cent bond of 1978-83.
y Thursday figures. Only general obligation bonds are included; average
term i s 20 years.
Note.—Highs and lows are for individual series and may be on different dates
f o r different s e r i e s .




EXHIBIT B

L O W E R - GRADE B O N D YIELDS
Weekly

CORPORATE B a a

STATE AND LOCAL GOVT. B a a

I" I

I

I

STATE AND LOCAL GOVT. REVENUE

Corporate
Baa 1 /

S t a t e and
l o c a l govt.
Baa 2/

S t a t e and
l o c a l govt.

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

3.89
3.50
3.7k
3.UU
3.63
3.U5
U.Ul
з.58

November
December
December
December
December

U.30
14.32
U.35
It. 38

30
7
lit
21
28

и.ia

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

"

3.27

(6/26)

U.22 (12/27)
3.20 (3/8)

2.72
2.99
2.76
3.98
2.89

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

U.12
U.15
U.17
U.20
U.22

3.9U
3.9U
3.91
3.97
3.98

3.79
2.96
3.32
2.93
3.26

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)

3.02 (1/6)

2.71 (1/2)
3.00 (1/1)

1/ Weekly average of d a i l y f i g u r e s . Average term of bonds
included i s 25-26 y e a r s .
2 / Thursday f i g u r e s . Only general obligation bonds a r e i n cluded i average term i s 20 y e a r s .
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 y e a r s .
Note.—Highs and lows are 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 dates f o r d i f f e r e n t s e r i e s .




STOCK MARKET

Stock p r i c e
index 1 /

Trading
Common
volume 2 /
(millions yields 3 /
of s h a r e s ) ( p e r c e n t )

Stock market custc aner c r e d i t
Customers'
debit b a l - loans t o
ances V
"others" 5 /
(Millions of dollars)

1953 - High
Low
1951 - High
Low
1955 - High
Low
1956 - High
Low

167.1
lltlt.O
221.14
156.5
270.7
217.U
295.5
257.It

October
November
December lit
December 21
December 28

275.7
273.1
277.U
276.2
277.8

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

2.5
0.9
3.7
l.lt
It.6
1.5
3.1
1.5
1.8
2.2
z.k
2.3
2.6

,

5.75
5.15
5.33
U. 20
it. 22
3.78
lt.25
3.86

2,ltlt5
2,055
3,136
2,105
U,030
3,537
lt,0lt7
3,9Ht

1,665
l,3Ui
2,388
1,653
2,805
2,517
2,810
2,7ltO

780
661t
l,0lj8
7U6
l,2ltl
1,018
1,267
1,155

U.23
lt.25

3,911t
3,9lt6

2,7lt8
2,781t

n.a.

n.a.

1,166
1,162
1,155
1,163
n.a.

n.a.—Not. a v a i l a b l e .
1/ SEC i n d e x of 265 common s t o c k s , weekly c l o s i n g p r i c e s , 1939*100; converted
t o 19U7-U9"100 by Federal Reserve. The conversion f a c t o r i s 1 2 3 . 9 1 .
2/ Averages of d a i l y t r a d i n g volume on t h e New York Stock Exchange.
3 / Moody's 200 common s t o c k s ; end o f month f i g u r e s .
%/ End o f month f i g u r e s f o r member f i r m s of t h e New York Stock Exchange which
carry margin a c c o u n t s ; e x c l u d e s b a l a n c e s 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 f o r weekly r e p o r t i n g member banks. Excludes l o a n s f o r
p u r c h a s i n g or c a r r y i n g U. S. Government s e c u r i t i e s a t banks in New York and Chicago.
Weekly r e p o r t i n g banks account f o r about 72 per c e n t o f l o a n s to o t h e r s .
• Note.—Highs 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 on d i f f e r e n t d a t e s
for different series.




Exhibit D
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
( i n m i l l i o n s of d o l l a r s )

. Corporate.
1 1956
1

1957
January
February
inarch

e/1,050

579
704
790

April
May.

-

816
1,144
830

October
November
December

778 2 /
e/l,050 —

1st
2nd
3rd
4th

2,073
2,790
2,571
e/2,828

7

4,863
7,434

4o4
390
377
490
735

427

3)3

376
199

470
249
406

V370

408

644

1,162

632

1/

900

2,165
.

350
641

919
658

m

1,385

1,490

1,911 •
2,695

1,603
908
e/l,330

4,217
6,128
8,821

3,093
4,001
e/5,33i

2,052

1955
535
312
538

696

.

670

e/1,000

e/lO,262

,;e/50£V

535
407
1,223

687

1,066
669
836

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

S t a t e and l o c a l
1
1956
1

1957

1955

478
886

July
August.
September

quarter
quarter
quarter
quarter

New c a p i t a l

1,418

-

1,124
1,984
2,803

3,927
5,911

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

quarter
quarter
quarter
quarter

1,617
2,263
9/2,703

1,727
1,370
1,434
2,554

e/9,103

7,569

2,520

J

l / I n c l u d e s V&37*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 .
'£/ I n c l u d e s v571«5 m i l l i o n AT&T common s t o c k i s s u e .
3 / T o t a l new c a p i t a l i s s u e s e x c l u d i n g o f f e r i n g s o f . s a l e s and consumer f i n a n c e
companies.
Note . — D e t a i l s may n o t add t o t o t a l s due. t o r o u n d i n g .




H«lU

Exhibit E 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 ) i j
P r o c e e d s of Lur^e I s s u e s O f f e r e d
( M i l l i o n s of d o l l a r s )

Month

Corporate

221
26)
95
212
273
395
62)
185
592
217
558
3#
701

2.955 - November
December
1956 - J a n u a r y
February
March
April
May

|

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

July
August
September
October
November

Other 2 /

401
227
192

25
50

444

16?
157
233
1+63
161+
35
184
383
135

50

.

20
37
35

Large I n d i v i d u a l I s s u e s O f f e r e d December 1 t h r o u g h 28

Issuer

Type 3 /

Amount •
Coupon
(millions
r a t e or
Offering
Maturity
net i n t e r of
Yield
dollurs)
est cost

Rating

CORPORATE
S i n c l a i r Oil Corp.
Chase Manhattan Bank
Michigan B e l l T e l .
Long I s l a n d L i g h t i n g Co.
Public Service Elec.
& Gas Co.
General Telephone Corp.
Texas E a s t e r n -Transm i s s i o n Corp.
F l o r i d a Power & L i g h t Co.
Burroughs Corp.
N a t i o n a l Cash R e g i s t e r Co.

Conv. sub.d3b. 167# 2
Cap. s t k .
1+7.0
• Deb.
30.0
1 s t n t g . bde 1. . 2 0 . 0
Common s t k .
Common s t k .

u 3/8

4.38

A

1991
1986

. h 3/8
k 3A

4.25
4.58

Aaa
Aaa

1976
• 1986
1981
1981

51/2
U 3/8
/* 1 / 2
it 1 / 2

5.50
4.30
4.50
4.50

Ba
Aa
Baa
Baa

31.2
31.1

Deb.
30.0
1 s t mtg. bds . 1 5 . 0
Conv.sab. deb. 3 0 . 2
Conv. sub. deb. 2 8 . 2




1986

Large I n d i v i d u a l I s s u e s O f f e r e d December 1 through 28 ( C o n t ' d )

Type 3 /

Amount 1
(million^ ^ ^ 3 . ^
dollars)|

Coupon
net intere s t cost

Offering
yield

Rating

Baa

STATE & LOCAL GOVERNMENT
P r i n c e Georges Co., Md.
Maryland S t a t e Roads
Commission
Milwaukee, Wisconsin
F l o r i d a S t a t e Board of
Education
Memphis, Tennessee

G.O.

5.0

1957-81

U.28

3.00-U.25

G.O.
G.O.

15.0
8.U

1958-72
1957-76

3.60
2.81

2 . 7 5 - 3 . 5 0 , Aa
2.20-2.85ii / Aaa

9-3
1958-77
163.2 _ 1963-92

3.79
h.lfl

5/
3.50-1^.20

L.L.
Elec. rev.

n.a.
A

. OTHER
None
n.a.—Not available.
l/ Includes corporate and other security offerings of jl5 million and over;
State and local government security offerings of 35 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 by pledge of
designated revenues.
i t / P&rt n 6 t r G o f f e r e d .
5 / Not reoffered.




H.14
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 ) l /
Expected P r o c e e d s f r o m Forthcoming Large I s s u e s
Date of
computation
- Dec. 30
- J a n . 31
F e b . 29
Mar. 30
A p r . 30
May 31
June 29
J u l y 31
Aug..31
S e p t . 28
O c t . 31 •
Nov. 30
Dec. 31

During month F o l l o w i n g
d a t e shown

Corporate L ® ^

Corporate
70
176
123
380
568
198
1+37
21+7
369
315
683
1+36
1+76

Subsequent t o
d a t e shown

121
327
220
132
173
332
81
131
359
162
i|8
280

,
37

23
100

85
376
233
1,013
818
W+8
567
1,096
1,202
1,009
990
1+81
796

e

618
917
785
811
832
91+1
690
726
958
1,197
955
979
763

l o t h e r

2/

37

23
100

Forthcoming Large O f f e r i n g s , as of December 28
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
Idaho Power Co.
S t a n d a r d O i l Co. of Ohio
Aluminum Co. of America
New England T e l . & T e l . Co.
I n t e r s t a t e O i l P i p e Line Co.
S e a r s Roebuck Acceptance Corp. •
P a c i f i c Petroleums, Ltd.
•Household F i n a n c e C o r p .
L o u i s i a n a Power & L i g h t Co.
Oklahoma Gas & E l e c t r i c Co.
Armco S t e e l Corp.
Niagara-Mohawk Power Co.
American T e l . & T e l . Co.
Michigan Wisconsin P i p e Line Co.
S o u t h e r n New England Telephone Co.
May S t o r e s R e a l t y Corp.




1 s t mtg. b d s .
S.F. deb.
Deb.
Deb.
S.F. deb.
. Deb.
Conv. s u b . d e b .
Deb.
1 s t mtg. b d s .
1 s t mtg. b d s .
Common s t k .

20.0
25.0
125.0
35.0
25=0

50.0

15.0
30.0

20.0
20.0

65.0

Conv. deb.

1+6.2

Deb.
1 s t mtg. b d s .
Common s t k .
Gen. m t g . b d s .

250.0
25.O
. 20 .1+
25.O

January 8
January 8
January 9
January 9
J a n u a r y 10 ,
J a n u a r y 11
J a n u a r y ll+
J a n u a r y 16
J a n u a r y 16
J a n u a r y 18
J a n u a r y 21+ n
(rights expire)
J a n u a r y 28
(rights expire)
March
Winter
Winter
Winter

H.H+

F-2
Forthcoming Large O f f e r i n g s , as of December 28 ( C o n t ' d )
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 )

STATE AND LOCAL GOVERNMENT
•San A n t o n i o , I n d . Sch. D i s t . , Texas
G.O.
F o r t Worth I n d . S c h . D i s t . , Texas
G.O.
Los A n g e l e s , C a l i f .
G.O.
Fort Lauderdale, Florida
Wtr. & swr. rev.
Caddo P a r i s h School D i s t r i c t , L a .
G.O.
D a l l a s , Texas
G.O.
D a l l a s , Texas
Rev.
Orange County Flood D i s t r i c t , C a l i f .
G.O.
S t a t e of Michigan 3 /
L.L.
Georgia R u r a l Roads A u t h o r i t y
' Rev.
. Spokane Co. School D i s t r i c t
" N o . 81, Washington
G.O.
• S t a t e of Colorado
Hwy, r e v .
•King Co. S c h . D i s t . No. 1, Wash.
G.O.
S t a t e of C a l i f o r n i a
G.O.
. San A n t o n i o , Texas
E l e c . & gas r e v .
• W i c h i t a S c h . D i s t . No. 1, Kansas
G.O.
Denver, Colorado
G.O. .
Birmingham,. Alabama
G.O.
•San Diego U n i f i e d Sch. D i s t . , C a l i f .
G.O.
P e n n s y l v a n i a Turnpike Commission
Rev.
I n t e r - A m e r i c a n -Center A u t h . , F l a .
Rev.
New York S t a t e Thruway A u t h o r i t y
. G.O.
J a c k s o n v i l l e Expressway A u t h o r i t y
Rev,.
F l o r i d a S t a t e Turnpike A u t h o r i t y
Rev.
Oklahoma T u r n p i k e A u t h o r i t y
Rev.
S t a t e of C o n n e c t i c u t
Expressway r e v .

5.0
5-0

18.0
11.0

5.0 ;

10.0
5.0
10.0
27.0

17.5

January
January
January
January
January
January
January
January
January
January

3
U
8
8
9
ll+
li+
15
15
15

6.0
8.0
10.0
85.O •
20.0
6.0
20.0
6.7
5.0
62.0
20.0
50.0
1+2.0
135.0
65.O

J a n u a r y 15
J a n u a r y 15
January 16
J a n u a r y 16
J a n u a r y 17
J a n u a r y 17
J a n u a r y 18
J a n u a r y 23
February 5
Winter
Winter
Vf i n t e r
Winter
Winter
Vfinter
Winter

100.0

January

5U.o

OTHER
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 & Development

Bonds

*—Included i n t a b l e for f i r s t t i m e .
l / I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of ^15 m i l l i o n and o v e r ; S t a t e and
local""government i s s u e s of £5 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 / Reduced f r o m -352 m i l l i o n and r e s c h e d u l e d w i t h h i g h e r maximum p e r m i s s i b l e
i n t e r e s t c o s t a f t e r f a i l i n g t o r e c e i v e b i d s on December 4 .
N o t e . — D e l e t i o n s f o r r e a s o n s o t h e r t h a n s a l e of i s s u e : Washington S t a t e
T o l l B r i d g e A u t h o r i t y ;>227.0 m i l l i o n r e v e n u e bond i s s u e — t o l l highway p r o j e c t
dropped b y t h e A u t h o r i t y .




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