Full text of H.16 Capital Market Developments : June 4, 1958

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

Not for Publication n B C O m O l M , AFTER SIX MONTHS
H.ll;

June k, 1958.
CAPITAL MARKET DEVELOPMENTS

Large public security issues for new capital during the
week ending May 29 totaled $65 million for corporations and $158
million for State and local governments. The calendar for this
week includes corporate offerings amounting to $100 million and
State and local government issues totaling $Ll million.
Bond yields - Yields remained stable last week for
all categories of outstanding bonds, except those for Baa-rated
corporate bonds, which declined slightly.
Yields on new corporate issues also show little change.
A new Aa-rated, first and refunding mortgage bond issue was offered
to investors this week to yield 3*B5_£er cent — the same as for
comparable offerings made on May 20 and May 21.
Stock prices - Stock prices, as measured by Standard and
Poor's index of 500 common stocks, increased last week to Wi.09,
slightly above the previous high for the year. Prices continued
to increase the early part of this week, closing at ij.i4.-U6 on Tuesday.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

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




EXHIBIT

A

HIGH-GRADE BOND YIELDS
Weekly
Per

cent

per

annum

i 4.00

3.50

CORPORATE
j Moody's

*/

r

Aaa
i

W x :

A-/.

3.00

U . S. G O V E R N M E N T
1
U
|
long-le rm
'
STATE

AND

LOCAL

GOVERNMENT
Moody's

Aaa
I

i
J

2.00

1953




1954

1955

1956

1957

1958

Date

Corporate
Aaa 1/

U. S. Govt,
long-term 2/

State and
local govt.
Aaa J/

Spread between
U. S. Govt, and
Corporate State and
Aaa
local Aaa

(Per cent)
1953 - High
Low .
195k - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low
1958 - High
Low
May
May
May
May
May

2
9
16
23
30

3-U2 (6/19)
2.99 (1/9)
3.09 (1/8)
2.85 (U/23)
3.17 (12/23)
2.91 (1/7)
3.79 (12/28)
3.07 (3/2)
. h.lh (9/27)
3.66 (U/12)
3.68 (1/3)
3.55(5/2)
3.55
3.57
3.57
3.57
3.57

3.19 (6/5)
2 .71* (12/31)
2.71 (1/8)
2.1t5 (8/6)
2.97 (8/5)
2.6k (1/7)
3.L5 (12/28)
2.81* (2/17)

3.76 (10/18)
•3.18 (2/8)

2.73 (6/25)

1.98 (1/8)

2.21
1.90
2.31*
2.05
3.05
2.17
3.1*5

(6/10)
(9/2)
(9/8)
(5/26)
(12/27)
(2/23)
(8/29)

3.28 (1/31)
3.07 (ii/25)

2.76 (2/21)
2.86 (1/9)
2.61* (5/1)

3.15
3.13
3.13

2.71
2.71
2.71

2.6k

2.66

.38
.20
.1*3
.30
.27
.11
.2*1
.12
.60
.27
.51
.28

.30
.76
.57
.71
.32
.k7
.15
.62
.31*

.ill
.1*3
.1*2
.1*1*
Jik

.50
.1*8
.1*1*
.1*2
.1*2

.83
.33

1/ Weekly average of daily figures. Average term of bonds included is 25-26 years.
2/ Weekly average of daily figures. The series includes bonds due or callable in
10 years or more.
2/ Thursday figures. Only general obligations bonds are included; average term is
20 years.
Note.—Highs and lows are for individual series and may be on different dates for
different series.




EXHIBIT

B

LOWER - GRADE BOND YIELDS
Weekly

Per

cent

per

annum

5.0

CORPORATE
Moody's

Baa

—

4.5

H

4.0

/

STATE

AN D

LOCAL
Moody's

GOVT.

Baa.

- /

19 5 3




1954

1955

1956

1957

1958

*

Date

Corporate
Baa 1/

State and
local govt.
Baa ZJ

Spread between
Aaa and Baa
State and
Corporate
local govt.

(Per cent)
1953 - High
Low
195U - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low
1958 - high
Low

3.89 (9/18)
3.50 (1/2)
3.74 (1/8) 3 . a . (12/31)
3.63 (12/30)
3.15 (1/14)
it .41 (12/28)
3.58 (3/9)
5.10 (11/29)
4.42 (4/12)
4.96 (1/3)
4.6o (5/30)

3.79 (6/25)
2.96 (1/0)
3.32 (1/7)
2.93 (8/5)
3.26 (12/29)
3.02(1/6)
4.22 (12/27)
3.20 (3/8)
4.51 (8/29)
3.90(2/21)
3.92 (1/2)
3.6ii (5/1)

.69
.42
.68
.52
.54
.45
.63
.42
1.27
. 6I4.
1.28
1.03

May
May
May
May
May

4.66
4.63
4.62
4.62
4.60

3.64
3.65
3.76
3,76
3.76

1.11
1.06
1.05
1.05
1.03

2
9
16 .
23
30

.

1.21
.98
1.16
.93
1.03
.87
1.17
.89
1.21
1.04
1.11
.99
. 1.00
.99
1.05
1.05
. 1.05

1/ Weekly average of daily figures. Average term of bonds includes is
25-2o /-ears.
2/ Thursday figures. Only general obligation bonds are included; average
term is 20 years.
Note.—Highs and lows are for individual series and may be on different
dates for different series.




EXHIBIT

C

STOCK MARKET
M i l l i o n s of Dollars
1 I
I l
I i——i—i——i—i——i—i—i—i—i——i—i——,—i—:—h-t——i—,——,—,—

1941-43 A v e r a a e O O

2800

2000




: i l ii
VOLUME

YIELDS

1955

Millions

of

Shares

10

Stock price
- Index 1/

Trading ~ Common
Stock market customer credit
volume 2/
stock
Customers'
Bank
(millions yields 3/
debit bal- loans to
of shares) (per cent)
ances 4/ "others" 5/
(Millions of dollars)

1933 - High
Low
1954 - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low .
1958 - High
. Low

26.5k (1/2)
22.95 (9/18)
35.98 (12/31)
2L93 (1/8)
15.69 (12/9).
35.28 (1/14)
49.64 (8/3)
13.22 (1/20)
1*9.08 (7/12)
39.48 (12/20)
44.09 (5/30)
10.37 (1/10)

2.5
0.9
3.7
1.4
4.6
1.5
3.1
1.5
4.2
1.4
2.8
1.7

March
April
May 16
May 23
May 30

ii2.11
42.34
13.36
W.8?
44.0 9

2.2
2.4
2.7
2.5
2.3

6.25
5.38
5.82
• 4.32
4.42
• 3.64
4.35
3.82
4.72
3.91
, 4.58
. 4.14
4.35
4.33
4.21
4.16
4.14

2,455
2,055
3,436
2,405,
. 4,030
3,537
4,047
3,914
4,031
3,576
3,980
3,554

1,665
1,314
2,388
1,653
2,805
2,517
2,823
2,740
2,887
2,482
2,735
2,487

780
664
1,048
746
V 1,241
1,018
1,267
1,155
1,163
l,051i
" 1,245
1,051

3,863
3,980

2,665
2,735

1,198
1,245
1,225
1,226

n.a.

n.a.—Not available.
1/ Standard and Poor's composite index of 500 common stocks, weekly closing
prices, 19Ul-U3"10. Monthly data are averages of daily figures rather than of
Fridays' only. Highs and lows are for Friday's data only.
2/ Averages of daily trading volume on the New York Stock Exchange.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve.
k/ End of month figures for member firms of the New- York Stock Exchange which
carry margin accounts; excludes balances secured by U. S. Government obligations.
£/ Wednesday figures for weekly reporting member banks. Excludes loans for
purchasing or carrying U. S. Government securities at banks in New York and
Chicago. Weekly reporting banks account for about 70 per cent of loans to others.
For further detail see Bulletin.
Note.—Highs and lows are for individual series and may be on different dates
for different series".




Exhibit D

H.lU

Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New capital

Corporate
1958

January
February
March

1

1957

1

195b

529
58U
U3l

U08

1,690
789
1,076

1,0892/
1,088

633

3,W5
3,lU9
2,899
2,95U

2,102
2,805
2,556
2,922

2,335
e/2,20U

i:E

e/U,539

1,003
92U
973

October
November
December
1st
2nd
3rd
Uth

1st half
Three quarters
Year

e/5,810

1956

1,063
65U
838

July
August
September

J'MI

1

378
U90
735

818
1,1U6
8Ul

quarter
quarter
quarter
quarter

1957

765
5U6
393

765
1,453

eA.°7 5

433

1

UOU
696

•s

April
May
June

State and local 1/
7U2
572
506

1,060
1,065
1,320

723

1958

6,59U
9,U93
12,UU7

573

10,38U

812
952
571

S

698
698

1,820

390

206
357

%
U09

1,70U
l,5UU

2,029

1,U90
1,603
971
1,395

3,52U
5,069
7,099

3,093
U,06U
5,U59

Excluding finance companies hj
1st
2nd
3rd
Uth

quarter
quarter
quarter
quarter

e/1'625

Year
"

s

2,582
2,810-

11,518

1,6U7
2,5U1
2,2U6
2,826
9,260

e/ Estimated.
g/ Preliminary.
1/ Data through June 1956 are Bond Buyer data classified as new capital by
Federal Reserve; later data are froa the Investment Bankers Association of America
and are somewhat more complete as to coverage than the earlier data, particularly
for Federal Government loans.
2/ Includes $718.3 million AT&T convertible debenture issue.
3/ Includes $571.5 million AT&T common stock issue.
h/ Total new capital issues excluding offerings of sales and consumer finance
companies.

Note.--Details may not add to totals due to rounding.



H.lli

Exhibit E
Large Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(Millions of dollars)

Month

Corporate

1957 - April
May

State and
local government

111
329
877
525
#6
537
57h
h2Q
399
318
605
1,093
725

July
Augur, r.
Sep r,ember
October
November
December
1958 - January
February
March
April

U99
2U8
176
265
357
185
135
38b
1439
506
629
26U
51k,

Other 2/

125
25
39
25
30
75
215
15

.

133

Large Individual Issues Offered during May

Issuer

Type y

Amount
Coupon
Offering
(millions
Maturity net inter- yield
of
dollars)
est cost

Potomac iiilec. Pvir. Co.
Conv. dob.
19.7
Deb.
R. R. Donnelly & Sons Co.
15.0
Public Serv. Co. of Okla. 1st mtg. bds. 16.0
United Gas Impr. Co.
i1st mtg. bds. 15.0
Long Island Lighting Co.
1st mtg. bds. 20.0
Long Island Lighting Co.
Com. stk.
15.5
Nat'1 Distillers & Chem.
S.F. deb.
60.0
Gulf States Utilities Co. 1st mtg; bds. 20.0
Intern11 Tel. & Tel. Co.
Conv.sub.deb. 28.7
Illinois Power Co.
1st mtg. bds. 25.0Public Service Co. of Colo. Pfd. stk.
16.0
Brooklyn Union Gas Co.
1st mtg. bds. 22.0
Central Hudson Gas. & Elec. 1st mtg. bds. 18.0 .
Appalachian El. Pwr. Co.
1st mtg. bds. 25.0
Transcontinental Gas. P.L. 1st mtg. p.l.
Corp.
bds.
25.0
Transcontinental Gas P.L.
- Corp.
Cum. pfd. stk.15.0




Rating

3.75
3.85'
3.90
ii.03
1.07

A
Aa
Aa
A
A ;

a 3/a
b
a 7/8
h

It. 80
3.85
Li'
3.^

Baa
Aa
tia
Aa

1983
1988
1988

h 1/8
lil/8
U

1.05
L.00
3.95

A
A
A

1978

5/e

it.66

Baa

1973
1978
1988
1983
1988

3
3
3
L
h

1983
1988
1983
1988

.

3/L
3/h
7/8
1/8
1/8

H.li;' '

E-2
Large Individual Issues Offered during May- (Cont'd)

:

Issuer

Type 3/

Coupon
. Amount
Offering
rate or
^millions
Maturity net inter- yield
of
est cost
dollars)

Rating

STATE AND LOCAL GOVERNMENT
Peoria Co. .S.D.#l05, 111.
State of Connecticut
Cook Co., Illinois
Fulton Co., Georgia
State of West Virginia
State of New York
Boston, Massachusetts
Cincinnati, Ohio
Wichita, Kansas
State of South Carolina
Franklin Co., Ohio
Bergen Co. Swr. Auth.,N.J.
New York, New York
Pittsburgh Sch. Hist., Pa.
State of Ohio
Greensboro, North Carolina
Elizabeth, New Jersey
Baltimore Co., Maryland
Public Housing Authorities
Houston, Texas
Richmond-Petersburg Turn.
Auth.
Louisiana State Bd. of Ed.
State of Iowa
Territory of Hawaii
State of Michigan
Tacoma, Washington
Pennsylvania State Univ.
Pennsylvania State Univ.

G.O.
G.O.
Rev.-Ut.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.-Ut.
G.O.
G.O.
Rev.—S.T.
G.O.
G.O.
G.O.
G.O.
G.O.

5.8
29.7
25.0
10.a
5.0
Uo.o
2U.5
13.U
6.8
25.0
10.0
15.8
U7.3
5.0
32.0
10.0
5.0
12.0
69.9
15.6

Aa
" 2.56
1.00-2.70
1960-78
Aaa
.80-2.70
2.hl
1959-78
A
.85-2.80
.
2.51;
1959-73
Aa
.80-3.00
2.85
1959-87
.85-2.85 . A
2.65
1959-83
Aaa
.75-2.60
2.37
1959-78
A
.90-3.10
2.89
1959-78
2.82
.75-3.00
- 1959-98
A
.90-3.00
1959-78/68
2.61;
Aa
.80-2.70
1959-78/731 2.23
Aa
.80-2.95
1959-82
2.73
A
'
3.59
1.50-3.65
1961-97/67
A
.85-2.90
2.53
1959-73
A
.90-2.90
2.50
1959-83
2.67
.75-2.85, ,, Aa
1958-72
.75-3.OOa/ Aa
2.-7U
1959-83
A
.90-3.20
2.97
1959-88
A
1960-98
3.09
1..20-3.30
Aaa
2.89
.75-3.05
1959-98/67
A
2.91
.85-3.20
1959-83

Rev.-Ut.
6.2
1995
Rev.-Q.Ut.
1961-88
5.5
G.O.
2U.7 1959-76/58
G.O.
8.0
1961-78
Rev.-S.T.
100.0
1959-82
G.O.
7.9 1960-78/68
Rev.-Rent.
5.0 J1961-83
Rev.-Rent.
7.0
1999

lw 67"
3.00
2.50
3.05
3.31
2.92
n.a.
n.a.

i;.50
.70-2.60
1.60-3.25
1.00-3.U0
1.20-3.10
1.75-3.U5
3.70

Aaa
A
A
A
—
—

OTHER
Montreal, Canada
Int. Bk. for Reconstruction and Development

S.F. deb.
Bds.

2U.5
150.0

1978

1; 3 A

lw75

A

1968 '

3 3/k

3.75

Aa

n.a.--Not available.
n.r.—Not reoffered.
1/ Includes corporate and other security offerings of §15 million and over;
•State and local government security offerings of §5 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
obligationsj Rev.-Ut., revenue obligations secured only by income from public
utilitiesj Rev.-Q.Ut., revenue bonds secured only by revenue of quasi-utilities;
Rev.-S.T., revenue bonds secured by revenue,from specific taxes only* Rev.-Rent.,
revenue bonds secured solely by lease payments.
h/ Is of 1983 not reoffered.




H.lU

Exhibit F
Forthcoming Large Public Security Offerings for 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

During month following
date shown
State and
Corporate local govt. Other 2/
525
370
526
578
576
1*58
383
378
1*98
1,123
555
356
266

97
172
252
. 21*3
370
369 .
387
383
1*29
175
31*0
521*
209

25
30
30
18
150
110
150
36

Subsequent to
date shown
State and.
Corporate local govt. Other 2/
388
1*98
511*
1*39
587
573
589
6ll*
51*6
389
372
530
251

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

25
30
15
1*5
63
165
110
150
36

Forthcoming Large Offerings, as of May 30
Type

Amount
Approximate date
(millions
of offering
of dollars)

CORPORATE
Consolidated Edison Co.
Texas Eastern Transmission Corp.
Owens-Illinois Glass Co.
Virginia Electric & Power Co.
Niagara Mohawk Power Corp.
Oklahoma Gas & Electric Co.
Mountain Fuel Supply Co.
Pacific Power & Light Co.
United Gas Corp.
^Florida Power Corp.
^Pacific Gas & Electric Co.
New England Telephone & Telegraph
Commerce Oil Refining Coip.
Natural Gas Pipeline Co. of America
Consolidated Natural Gas Co.




1st ref. mtg. bds.
Pfd. stk.
S.F. deb.
[
1st ref. mtg. bds.
Gen. mtg. bds.
1st mtg. bds.
Deb.
1st mtg. bds.
S.F. deb.
1st mtg. bds.
Common stk.
Conjmon stk.
Deb., bds. & common
1st mtg. bds.
S.F. deb.

50.0
15.0
35.0

25.0

5o.o

15.0

16.0
20.0

1*0.0

25.0

20.0
22.6

1*5.0
Lo.o
1*5.0

June 1*
June.5
June 5
June 11
June 12
June 17
June 19
June 25
June 26
July 2
July 8
(rights expire)
July 11
(rights expire)
1958
1958
1958

F-2

H. Hi-

Forthcoming Large Offerings, as of May 30 (Cont'd)
Issuer

Type

Amount
Approximate date
(millions
of offering
of dollars)

STATE AND LOCAL GOVERNMENT
Kansas City, Missouri
Port of New York Authority
-sTulsa Municipal Airport Trust, Okla.
Pueblo Co. Sch. Dist. No. 60, Colo.
Sacramento Utility Dist., Calif.
Norfolk, Virginia
State of New York
State of Minnesota
West Allis, Wisconsin
Florida Development Commission
State of Texas
•JfMaiyland State Roads Commission
*State of Colorado
State"of Ohio

G.O.
Rev.-Ut.
Rev.—Ut.
G.O.
Rev.-Ut.
G.O.
G.O.
G.O,
G.O.
Rev.vUt.
G.O.
G.O.
G.O.
Rev.-S.T.

6.1
35.0
20.5
7.8
5.7
6.0
li9.0
35.0
5.9
6.2
12.5
25.0
5.0
31.0

June
June
June
June
June
June
June
June
June
June
June
June
July
July

k
k
6
10
12
17
17
17
17
18
18
2h
1
22

OTHER
-^Metropolitan Toronto, Canada

S.F. deb.

35.8

20

-*—Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and
local government issues of $5 million and over.
2/ Includes foreign government and International Bank for Reconstruction
and Development issues.
Note.—Deletions for reasons other than sale of issue: None.




H.lli

Exhibit G
Yields on New and Outstanding
Electric Power Bonds, Rated Aa arid A 1/

Date

1952 - 1957
High
Low
1958 - January
February
March h
5
6
12
19
21
25
April 1
2
17
23
29
May 7
13
15
16
20
21
22
28

Aa-rated offering yields A-rated offering yields
Amount above
Amount above
Actual
Actual
seasoned yields
seasoned yields
(per cent)
(per cent)
(basis points)
(basis points)

5.00(8/11/57)
2.93(3/31/51)
*3.60.
3.89^/

87
-3,
-8
22

L15
1.22
' U.oo
Loo

a
50
28
26

L05
3.96
In 00

31
23
25

3.75

5

3.90

21

3.85
3.85

16
16

5.50(11/7/57)
3.00(3/17/51)
3.962/
It. 07
1.25

1.07

123
-15
3
9
6

-7

3.98

5

h.OU
Loo

11
3

k.Q7
It. 35

b
32

Loo
3.95

-1
-6

*—Single observation, not an average.
1/ Covers only 30-year first mortgage bonds, as reported in Moody's Bond
Survey. Except where indicated, the actual yield 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 for 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.