Full text of H.16 Capital Market Developments : June 30, 1958

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

Not f o r P u b l i c a t i o n
, H.lii

$EC0HTH0IlLBD

a f t e r SIX HOHTHS

...
!

,-

June 30, 1958.
CAPITAL MARKET DEVELOPMENTS

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 d u r i n g t h e week
ending June 27 t o t a l e d $75 m i l l i o n f o r c o r p o r a t i o n s , $25 m i l l i o n f o r
S t a t e .and l o c a l governments, and $50 m i l l i o n f o r f o r e i g n governments.
Another c o r p o r a t e i s s u e — Standard O i l Company of C a l i f o r n i a ' s $150
m i l l i o n debentures— scheduled f o r s a l e l a s t week was postponed i n d e f i n i t e l y because of market c o n d i t i o n s . The c a l e n d a r of l a r g e i s s u e s
d u r i n g t h i s h o l i d a y - s h o r t e n e d week i n c l u d e s only two c o r p o r a t e i s s u e s
t o t a l i n g $50 m i l l i o n . No l a r g e s t a t e and l o c a l government i s s u e s a r e
expected.
Bond y i e l d s - Y i e l d s i n c r e a s e d l a s t week f o r a l l c a t e g o r i e s
of o u t s t a n d i n g bonds. The i n c r e a s e was s l i g h t f o r y i e l d s on c o r p o r a t e
B a a ' s , b u t s u b s t a n t i a l f o r o t h e r t y p e s of bonds.
Y i e l d s on new c o r p o r a t e i s s u e s a l s o i n c r e a s e d l a s t week. An
A a - r a t e d f i r s t mortgage e l e c t r i c u t i l i t y bond i s s u e was o f f e r e d t o i n v e s t o r s a t a y i e l d of 3 . 9 5 p e r c e n t — 13 b a s i s p o i n t s above t h a t f o r a
comparable i s s u e o f f e r e d a week e a r l i e r . '
J u l y s e c u r i t y volume - The J u l y volume of c o r p o r a t e i s s u e s
f o r new c a p i t a l i s expected t o t o t a l about $1,150 million., t w o - f i f t h s
g r e a t e r t h a n t h e r e v i s e d e s t i m a t e of t h e volume i n J u n e , and 15 p e r
cent l a r g e r t h a n t h e o f f e r i n g s i n J u l y of l a s t y e a r . Large p u b l i c
i s s u e s a r e expected t o t o t a l over $750 m i l l i o n , i n c l u d i n g a $300
mill i o n debenture i s s u e of United S t a t e s S t e e l C o r p o r a t i o n ,
S t a t e and l o c a l government s e c u r i t y i s s u e s a r e c u r r e n t l y
e s t i m a t e d a t $525 m i l l i o n . T h i s volume would be 10 p e r c e n t g r e a t e r
t h a n i n June and about t h e same a s t h e volume i n J u l y 1957.
Stock p r i c e s - Stock p r i c e s , a s measured by Standard and
P o o r ' s i n d e x of 500 common s t o c k s , i n c r e a s e d . s l i g h t l y l a s t week, c l o s i n g a Wi.90 on June 27. The volume of t r a d i n g a g a i n averaged 2.7
m i l l i o n s h a r e s a day.
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 .

C a p i t a l 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 t h e F e d e r a l Reserve System.




HIGH-GRADE BOND YIELDS

STATE A N D LOCAL
GOVERNMENT

L O W E R - G R A D E B O N D YIELDS




H.Ik

Exhibit B
Tables f o r Exhibit A
High-grade Bond Yields

Date

U. S. Govt,
long-term 2/

Corporate
Aaa 3 /

S t a t e and
l o c a l govt.
Aaa J /

Spread between
U. S. Govt, and
Corporate S t a t e and
Aaa
l o c a l Aaa

(Per cent)
1953
195k
1957
1958

-

High
Low
High
High
Low

May 30
June 6
June 13
June 20
June 27 2 /

3.42
2.85
k.lk
3.68
3.55

(6A9)
(li/23)
(9/27)
(1/3)
(5/2)

3.19
2.k5
3.76
3.28
3.07

(6/5)
(8/6)
(10/18)
(1/31)
(k/25)

(6/25)
(9/2)
(8/29)
(1/9)
(5/1)

2.71
2.72
2.72
2.75
2.78

3.13
3.11*
3.15
3.21
3.26

3.57
3.56
3.56
3.57
3.61

2.73
1.90
3.1*5
2.86
2.6k

.38
.30
.60
.51
.28

.83
.30
.1*7
.62
.3k

.16
.k2
.1*1
.36
.35

.1*2
.1*2
.1*3
.1*6
.1*8

Lower-grade Bond Yields
Date

Corporate
Baa 1 /

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

Spread between
Aaa and Baa
S t a t e and
Corporate
l o c a l govt.

(Per cent)
1953
1551*
1957
1956

-

High
Low
High
High
Low

May 30
June 6
June *13
June 20
June 27 g /

3.89
3.1*1*
5.10
1*.96
li.53
1*.60
1*.58
1*.55
1*.53
1*.51*

—

(9/18)
(12/31)
(11/29)
(1/3)
( 6/20)

3.79
2.93
l*.5l
3.92
3.6k
3.76
3.76
3.76
3.76
3.8k

(6/25)
(8/5)
(8/29)
(1/2)
(5A)

.69
.52
1.27
1.28
.93

1.21
.96
1.21
1.11
.99

1.03
1.02
.99
.96
.93

1.05
l.ok
1.0k
1.01
1.06

g / Preliminary.
"
~
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 / Weekly average of d a i l y f i g u r e s . The s e r i e s includes bonds due or c a l l a b l e i n
10 y e a r s or more.
2 / Thursday f i g u r e s . Only, general o b l i g a t i o n s bonds a r e included; average t e r a
i s 20 y e a r s .
Note.—Highs and lows a r e f o r individual s e r i e s and may be on d i f f e r e n t dates f o r
different series.




STOCK MARKET
Million: of Dollars




1941 43 Ay«rofl»-10

STOCK MARKET CREDIT

Exhibit D
Stock Market
Stock price
index 1 /

Common
Trading
stock
volume 2/
yields 3/
(millions
of shares) (per cent)

Stock market customer c r e d i t
Customers1
Bank •
debit bal- loans t o
ances 1*/ "others" 5 /

Total

(Millions of dollars)
1953 - High
Low
195U - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low
1958 - High
Low
April
May
June 13
June 20
.June 27 e /

26.51* (1/2)
22.95 (9/18)
35.98 (12/31)
21*. 93 (1/8)
1*5.69 (12/9)
35.28 ( 1 M )
1*9.61* (8/3)
1*3.22 (1/20)
1*9.08 (7/12)
39.1*8 (12/20)
65.02 (6A3)
1*0.37 (1/10)

2.5
0.9
3.7
1.1*
1*.6
1.5
3.1
1.5
1*. 2
1.1*
2.8
1.7

6.25
5.38
5.82
1*.32
l*.i*2
3.61*
1*.35
3.82
lt.72
3.91
1*.58
1*.05

1*2.31*
1*3.70
1*5.02
1*1*. 85
1*1*.90

2.1*
2.6
2.6
2.7
2.7

lt.33
1*.17
li.05
1*.07
1*.07

2,1*55

2,0#

3,1*36
2,1*05
I,030
3,537
1i,0IJ7
3,91k
U.031
3,576
II,0(9
3,55k
3,98°
It,069
n.a.
n.a.

1,665
1,3114
2,388
1,653
2,805
2,517
2,823
2,7UO •
2,887
2,182
2,856
2,1*87
2,735
2,856

780
661*
1,01*8
716

1,2 Ul

1,018

1,267
1,155
1,163
i,051i
1,296
1,051
i,2U5
1,213
1,217
1,296

g / Preliminary.
n.a.—Not a v a i l a b l e .
3 / Standard and Poor's composite index of 500 common stocks, weekly closing
p r i c e s , 19lil-U3"10. Monthly data are averages of daily f i g u r e s r a t h e r than of
Fridays' only. Highs and lows are f o r Friday's data only.
2/ Averages of d a i l y trading volume on the New York Stock Exchange.
2 / Standard and Poor's composite stock yield based on Wednesday data converted t o weekly closing p r i c e s by Federal Reserve.
k / End of month f i g u r e s f o r member firms of the New York Stock Exchange which
carry margin accounts; excludes balances secured by U. S. Government obligations.
£ / Wednesday f i g u r e s f o r weekly reporting member banks. Excludes loans f o r
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 70 per cent of loans t o others.
For f u r t h e r d e t a i l see Bulletin.
Note.--Highs and lows are f o r individual s e r i e s and may be on d i f f e r e n t dates
for different series.




Exhibit E

H.Ik

Long-term Corporate and State and. Local Government
Security Offerings and Placements
(In millions of dollars)

1958
January
February
March

723

April
May
June

2/1,12k
e/700
e/800

July
August
September

e/L,l50

October
"November
December
1st
2nd
3rd
kth

quarter
quarter
quarter
quarter

1st half
Three quarters
Tear

3,135
e/2,62li

e/5.759

New capital
Corporate 1 /
State and l o c a l 2/
1 1956
1 1956
1958
1 1957
1957
1,060
1,065
1,320

573
712
817

812
953
511

765
1.U53

818
l,lk6
8kl

795
B/856
e/k75

1,003
92k
973

1,063
65k
838

e/525

1,090
789
1,076

1,088
2,102

3,kk5
3,lk9
2,899
2,95k

2,922

6,59k
9,k93
12,kk7

10,38k

i:@

7k2
506

s

393
529
58k
k31
698
633
698

kok
696
390
378
k90
735
k08

• g

%7
k09

2,276
e/2,126

1,820
1,70k
1,5kk
2,029

l,k90
1,603
971 .
1,395

e/k,k02

3,52k
5,069
7,099

3,093
k,06k
5,k59

Excluding finance companies
1st
2nd
3rd
kth

quarter
quarter
quarter
quarter

2,89k
e/2,57lt

3,237
2,889
2,582
2,810

l,6k7
2,5kl
2,2k6
2,826

9,260
11,518
z
e / Estimated.
—
1 / Securities and Exchange Commission estimates of net proceeds.
2 / Data through June 19556 aire Bond Buyer data c l a s s i f i e d as new capital byFederal Reserve; l a t e r data are from the Investment Bankers Association of America
and are somewhat more complete as to coverage than the e a r l i e r data, particularly
for Federal Government loans.
3 / Includes $718.3 million AT&T convertible debenture issue.
k/ Includes $571.5 million AT&T common stock issue.
5 / Total new capital issues excluding offerings of sales and consumer finance
companies.
Tear




"

Exhibit F

H.lb

Other Security O f f e r i n g s 1 /
( I n m i l l i o n s of d o l l a r s )
Long-term
Federal agency 3/
Foreign government 2/
1958
1958
1 1957
1
1957
1 1956
January
February
March

196
53

April
May
June

139

—

81*
1*9
30

37

123
1*8
1*2

50

8

1,163
251
—

—

—

523

125

60

60

95

July
August
September

28
7
30

—

215

October
November
December

1* "
60
1

1*1*
5
21

100

Year

2
39

507

—

109
—

- -

300

~~

169

572

Short-term
S t a t e and l o c a l government 1*/
January
February
March

1956

72

Federal agency 3/

233
1*60
273

326
1*55
11*7

196
357
21*9

371
208
11*1*

638
1*30
505

380
220
283

357
2/353

205
337
153

125
252
176

209
161

336
1*69
501

323
314
260

July
August
September

272
272
252

195
207
. 1 7 9

221*
370
512

222
U25
273

October
November
December

303
91*
1*59

29h
328
11*8

1,238
255
116

1*07
222
128

2,706

5,51*3

3,1*57

April
May
June

Year
'

3,271*

.

e / Estimated.
p / Preliminaiy.
"
"
1 / Data presented i n t h i s e x h i b i t d i f f e r from those i n Exhibit E i n t h a t r e f u n d ing i s s u e s , a s well as new c a p i t a l i s s u e s , a r e included. Long-term s e c u r i t i e s a r e def i n e d as those maturing i n more than one y e a r .
2 / Includes s e c u r i t i e s o f f e r e d i n t h e United S t a t e s by f o r e i g n governments and
t h e i r subdivisions and by i n t e r n a t i o n a l o r g a n i z a t i o n s . - Source: S e c u r i t i e s and Exchange Commission.
j j / I s s u e s not guaranteed by t h e U. S. Government. Source: long-term, S e c u r i t i e s
and Exchange Commission; short-tenu, Federal Reserve.
lj/ P r i n c i p a l l y t a x and boad a n t i c i p a t i o n n o t e s , warrants or c e r t i f i c a t e s and Public
Housing
Authority n o t e s . In some instances PHA notes included may have a somewhat

longer term than one y e a r . Source: Bond Buyer.



H.lU

Exhibit G
Large Long-term Public Security Issues f o r New Capital
(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

^

1957 - May
June
July
August
September
October
November
December
1958 - January
February
March
April
May

Coiporate

S t a t e and
l o c a l government
176
61
22k
266
133
393
3Wt
hOh
hio
553
182
300
505

329
677
525
#6
537
571
120
399
318
605
1,093
725
356

Other 2 /

25
99
25
245
75
100
1,378
266
653
165

Large Individual Issues Offered June 1 through 27

Type 2 /

Amount
Coupon
r a t e or Offering
(millions
Maturity n e t i n t e r - y i e l d
of
dollars)
e s t cost

Rating

CORPORATE
Consolidated Edison Co.
1 s t . r e f . m t g . b d s . 5 0 . 0 1988
Texas Eastern Trans. Corp.
Pfd. s t k .
15.0
O v e n s - I l l i n o i s Glass Co.
S.F. deb.
31.7 1988
Virginia Elec. & Pwr. Co. 1 s t r e f . m t g . b d s . 2 5 . 0 1988
Niagara Mohawk Pwr. Corp.
Gen. mtg. bds. 50.0 1988
Oklahoma Gas & Elec. Co.
1 s t mtg. bds. 15.0 1988
Mountain Fuel Supply Co.
Deb.
16.0 1983
P a c i f i c Pwr. & Lt. Co.
1 s t mtg. bds. 20.0 1988
Wilson & Co.
S.F. deb.
15.0 1978
United Gas Corp.
S.F. deb.
10.0 1978

U
3
3
3
3
k
L
k
L

3/L
7/8
7/6
7/8
3/8
1/8
5/8

3.85

Aa

3.72
3.82
3.80
3.82
lt.00
It'. 35
it. 20
1U5

Aa
Aa
Aa
Aa
A
Baa
A
Baa

3.40

A

STATE AND LOCAL GOVERNMENT
Port of New York Authority
Tulsa Mun. Airport T r u s t ,
Oklahoma
S t a t e of New York

Rev.-Ut.

35.0

198ti/b8

Rev.-Ut.
G.O.

20.5
1*9.0

1983/59
1960-2008 2.92




3.1tit

14.50
1 .00-3.25

Baa
Aaa

-Hellt

G-2
Large I n d i v i d u a l I s s u e s Offered June 1 through 27 (Cont'd)
Issuer

Type 2 /

Amount
Coupon
( b i l l i o n s Maturity r a t e or
Offering
Rating
of
net i n t e r - yield
dollars
est cost

STATE AND LOCAL GOVERNMENT
(Cont'd)
Milwaukee, Wisconsin
S t a t e of Texas
Maryland S t a t e Rds. Comm.

t}.0.
G.O.
Rev.-S.T.

17.8
12.5
25.0

1959-78
2.55
1966-90/73 2.9k
1959-73/66 3.09

OTHER
Metro. Toronto, Canada
High Auth. of European
Coal and S t e e l Com.
High Auth. of European
Coal and S t e e l Com.

.75-2.75
2.10-3.02
1.00-3.10
•

S.F. deb.

35.8

1978

h

Aaa
Aa
Aa

'

U.05

Bds.

35.0

1978

5

5.2k

Ser. n o t e s

15.0

1961-63

k 1/2

It. 60

A

—

1 / Includes coiporate and other s e c u r i t y o f f e r i n g s of $15 m i l l i o n 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 i n g s of $10 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 and non-guaranteed i s s u e s by Federal agencies.
3 / In t h e 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 s ; Re.v.-Ut., revenue o b l i g a t i o n s secured only by income from p u b l i c
u t i l i t i e s ; Rev.-Q.Ut., revenue bonds secured only by revenue of q u a s i - u t i l i t i e s ;
Rev.-S.T., revenue bonds secured by revenue from s p e c i f i c t a x e s only; Rev.-Rent.,
revenue bonds secured s o l e l y by l e a s e payments.




Exhibit H

H.ll*

Forthcoming Large Long-tern Public Security Offerings f o r New Capital
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues
Date of
computation
1957 - May 31
June 28
July 31
Aug. 30
Sept. 30
Oct. 31
Nov. 29
Dec. 31
1958 - Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 29
June 30

During month following
date shown
S t a t e and
Corporate
Other 2 /
l o c a l govt.
525 .
370
526
578
576
1*58
383
378
U98
1,123
555
356
266
768

87
153
218
183
33U
339
363
3U5
370
13U
298
U93
177
225

25
30
30
18
150
110
150
36

Subsequent t o
date shown
S t a t e and
Corporate l o c a l govt. Other 2/
1*07
1*79
1*71
379
551
51*3
558
561*
1*87
31*1
330
1*93
208
235

525
1*15
811
81*5
61*7
815
1,193
1,161
1,378
1,208
670
561
1*61*
1,0U8

25
30
15
1*5
63
165
110
150
36

Forthcoming Large Offerings, as of June 27
Issuer

Type

Amount
Approximate date
(millions
of offering
Iof dollars)

CORPORATE
F l o r i d a Power Corp.
Martin Co.
Northern Indiana Public Service Co.

1 s t mtg. bds.
S.F. deb.
Common s t k .

P a c i f i c Gas & E l e c t r i c Co.

Common s t k .

*New York Telephone Co.
Ref. mtg. bds.
Mead Corp.
Deb.
New England Telephone & Telegraph Co, Common s t k .
Southern Natural Gas Co.
Boston Edison Co.
•Boeing Airplane Co.
•United S t a t e s S t e e l Corp.
• P a c i f i c Lighting Corp.
•Washington Water Power Co.
•Boeing Airplane Co.
•Burroughs Corp.




S.F. deb.
Pfd. s t k .
S.F. deb.
S.F. deb.
Common s t k .
1 s t mtg. bds.
Conv. sub. deb.
Deb.

July 2
July 3
July 7
( r i g h t s expire)
l*l*.l*
July 8
( r i g h t s expire)
July 10
65.0
July 10
25.0
July 11
22.6
( r i g h t s expire)
July 11
30.0
July 11
25.0
July 17
60.0
July 17
300.0
July 17
1*5.0
July 21*
15,0
July 29
30.6
( r i Rhts expire)
July
25.0
25*0
25.0
15.2

H.lii

H-2
Forthcoming Large O f f e r i n g s , a s of June 27 (Cont'd)
Issuer

Type

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

CORPORATE (Cont'd)
^Burroughs Corp.
Commerce Oil Refining Corp.
Natural Gas P i p e l i n e Co. of America
Consolidated Natural Gas Co.
Standard Oil Co. of C a l i f o r n i a
STATE AND LOCAL GOVERNMENT

Common s t k .
Deb., bds. & common
1 s t mtg. bds.
S.F. deb.
Deb.

Pennsylvania General S t a t e Auth.
Rev.-Ut.
*Metro. S a n i t a r y D i s t . of Chicago,111. Rev.-Ut.
*Los Angeles Dept. of Wtr. & Pwr.,
California
Rev.-Ut.
G.O.
S t a t e of North Carolina
S t a t e of Ohio
Rev.-S.T.
^ T e r r i t o r y of Hawaii
Rev.-Ut.
S tate of C a l i f o r n i a
G.O.
San .Diego Unif. Sch. D i s t . , C a l i f .
G.O.

12.0
1*5.0
liO.O
1*5.0

150.0

July
( r i g h t s expire)
1958
1958
1958
1958

30.0

July 9
July 10

21.0

J u l y 16
J u l y 16
•July 22
J u l y 22
J u l y 23
Sept. 10

15.0
15.0
31.0

12.5
100.0
10.0

OTHER
None
. *—Included i n t a b l e f o r f i r s t t i m e .
1/ I n c l u d e s corporate and o t h e r 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 #10 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 and non-guaranteed i s s u e s by Federal agencies.
Note. —Deletions f o r reasons o t h e r (than s a l e of i s s u e : None.




H.llt

Exhibit I
Yields on New and Outstanding
Electric Power Bonds, Rated Aa and A 1 /
Date

1952 - 1957
High
Low

Aa-rated offering y i e l d s A-rated offering yielda
Amount above
Amount above
' Actual
seasoned yields Actual
seasoned yields
(per cent) (basis points) (per cent) (basis points)
5.00(8/LV57)
2.93(3/31/51)

1958 - January
February
March h
5
6
12
19
21
25
April 1
2
17
23
29
May 7
13
12
16
20
21
22
28
June 10
17
25

*3.60,.
3.892/

87
-3

5.50(11/7/57)
3.00(3/17/5k)

-8
22

LIS
L22
Loo
Loo

a
50
28
26

LQ5
3.?8
Loo

31
23
25

3.75

5

3.90

21

3.85
3.85

16
16

3.85
. 3.82
3.95

17
12
2h

123
-15

3.962/
L07
L25

*

3
9
6

U.07

-7

3.98

5

it. oli
Loo

11
3

ii.07
L 35

h
32

Loo
3.95

-

-1
-6

•--Single observation, not an average.
1 / Covers only 30-year f i r s t mortgage bonds, as reported in Moody's Bond
Survey. Except where indicated, the actual y i e l d figure and the amount above
seasoned yields are averages of offerings during the indicated period and of the
differences between these new offering yields and yields on seasoned issues of
similar quality for the same day. Average maturity f o r the seasoned issues varies
from 26 to 28 years.
2 / Provides for a 5-year period during which issue may not be called for
refunding at a lower coupon rate. Monthly averages so marked include one or more
issues with such a provision. Other issues have no such provision.