Full text of H.16 Capital Market Developments : May 4, 1955

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Mot f o r P u b l i c a t i o n DECONTROLLED AFTER SIX MONTHS
H.lU

'

May U, 1955

CAPITAL MARKET DEVELOPMENTS
Moderate volume of i s s u e s l a s t week' - Large s e c u r i t y i s s u e s p u b l i c l y
o f f e r e d f o r new c a p i t a l during the -week ending A p r i l 29 t o t a l e d 72 m i l l i o n
d o l l a r s f o r S t a t e and l o c a l governments and 32 m i l l i o n f o r c o r p o r a t i o n s .
Only one l a r g e i s s u e i s scheduled f o r f l o t a t i o n t h i s week — a ? m i l l i o n
d o l l a r S t a t e and l o c a l government -^offering.
if ay outlook - The estimated volume of corporate o f f e r i n g s f o r new
c a p i t a l i n Kay'Ts 750 m i l l i o n d o l l a r s , h a l f again as l a r g e as l a s t month's
t o t a l and If? per cent above the May 195k volume. Included i n t h e estimate
i s the Bethlehem S t e e l Company 192 m i l l i o n d o l l a r convertible debenture
o f f e r i n g , s u b s c r i p t i o n r i g h t s f o r which expire May 23.
The Hay volume f o r S t a t e and l o c a l government i s s u e s i s estimated a t
300 m i l l i o n d o l l a r s , considerably l e s s than e i t h e r l a s t month's t o t a l or
the May volume a year ago. No turnpike i s s u e s are d e f i n i t e l y scheduled
f o r s a l e t h i s month; however, the f i n a n c i a l p r e s s r e p o r t s t h a t s e v e r a l
such i s s u e s may be o f f e r e d sometime t h i s s p r i n g .
. Bond y i e l d s - No change occurred i n t h e high-grade bond y i e l d s during
t h e week ending A p r i l 29. Corporate Baa y i e l d s increased one basis p o i n t ,
but y i e l d s on other lower-grade bonds remained s t e a d y .
The only change i n y i e l d s f o r which d a i l y f i g u r e s are a v a i l a b l e was
a s l i g h t r i s e on May 3 i n the corporate Aaa y i e l d s .
Stock p r i c e s - Stock p r i c e s , as measured by t h e SEC index of 265
common s t o c k s , rose s l i g h t l y l a s t week to a new high f o r the s e r i e s .
P r i c e s declined s h a r p l y on Tuesday but l i t t l e change occurred' pn' Wednesday
of t h i s week according to d a i l y indexes. ~
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 attached e x h i b i t s .

Business Finance and C a p i t a l Markets Section,.
Division of Research and S t a t i s t i c s ,
Board of Governors of t h e Federal Reserve System




H I G H - G R A D E BOND YIELDS
Weekly

f—w.

r v v
—

U. S. GOVERNMENT

2.00
|

1952

GOVERNMENT

1953

Corporate
Aaa 1 /

U. S. Govt,
long-term 2/

1955 - High
Low

3.03
2.91
3.42
2.99
3.09
2.85
3.04
2.91

2.79
2.56
3,15
2.78
2.74
2.1*4
2.77
2.62

April
April
April
April
April

3.01
3.01
3.01
3.01
3.01

Date

1954

State and local
govt., Aaa 3 /

1955

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

(Per cent)
1952 - High
Low
1953 - High
Low
1954 - High

1
8
15
22
29

(1/4)
(2/15)
(6/19)
(1/9)
(1/8)
(4/23)
(3/11)
(1/7)

2.73
2.77
2.76
2.77
2.77

(12/27)
(5/17)
(6/6)
(12/26)
(1/9)
(8/7)
(4/29)
(1/7)

2.00 (10/23)
1.65 (5/1)
2.73 (6/25)
1.98 (1/8)
2.21 (6/10)
1.90 (9/2)
2.11 (2/10)
2.06(1/6)

.37
.19
.38
.19
.143
.32
.34
.24

2.08
2.09
2.08
2.08
2.08

.28 .
.24
.25
.24
.24

1.02
.71
.84
.30
.61
.29
.69
.54
.65
.68
.68
.69
.69

i / vieeKjj average of da n y figures. Average term of bonds inclu ded Is vs—
26 years.
2/ Weekly average of daily figures; old s e r i e s . Average term t o f i r s t call
of bonds included i s 13-14 f e a r s .
3/ 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 for different s e r i e s .




-

LOWER-GRADE BOND YIELDS
Per cent p e r a n n u m

Weekly
CORPORATE Baa

V \ STATE AND LOCAL GOVT

V"
STATE AND LOCAL GOVT. REVENUE

M

J

$

M

0

i

S

0

M

Corporate

Date

J

5

D

M

State and
local govt.
Baa 2/

j

S

D

1955

1954

1953

1952

State and
local govt.
revenue 3J

(Per cent)
1952 -

High

1953 -

High

195U -

High

1955 -

April
April
April
April
April

Low

Low

Low

High

Low
1
8
15
22
29

I

3.63
3.1t8
3.89
3.50
3.7k
3.UU
3.U9
3.U5
3.U8
3.U8
3.U8
3.1*8
3.U9

(1/U)
(5/16)
(9/18)
(1/2)
(V8)
(12/31)
(h/29)
(1/1U)

2.98
2.U8
3v79
2.96
3.32
2.93
3.08
3.02
3.08
3.08
3.08
3.08
3.08

(10/23)
(U/17)
(6/25)
(1/8)
(1/2)
(8/5)
(V28)
(1/6)

2.69
2.27
3.27
2.71

(12/19)
(U/25)
(6/26)
(1/2)
3 . 0 0 (1/1)
2.72 (8/13)
2.80 (U/15)
2.76 (1/7)

2.80
2.80
2.80
2.78
2.78 -

1/ Weekly average of daily figures! Average term of bonds
. inducted i s 25-26 years.
2/ Thursday figures. Only general obligation bonds are
included; average term is 20 years.
3 / Friday figures. Average rating of bonds included i s
between Baa and Aj average term i s 20 years.
Note.—Highs and lows are for individual series and may
be on different dates for different series.




EXHIBIT C

STOCK MARKET

Li/-/'

Date

Stock p r i c e
Index 1/

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

btocK market c r e d i t
Customers 1
debit bal- loans t o
ances 4 / "others" 5 /
(Millions of d o l l a r s )

1952 - High
Bow
1953 - High
Low
195U - High
Low
1955 - High
Bow

165.3
151.7
167.1
144.0
221.U
156.5
233.6
217.lt

March
April
April 15
April 22
April 29

225.6
231.4
233.0
232.9
233.6

(12/26)
(10/24)
(1/2)
(9/18)
(12/31)
(1/6)
(4/29)
(1/14)

2.0
0.9
2.5
0.9
3.7
1.4
4.6
2.4

5-77
5.13
5.75
.5.15
5.33
4.20
U.22
a . 21

1,986
1,804
2,445
2,055
3,436
2,405
3,732
3,537

2.9
2.7
2.9
2.9
2.6

4.21

3,732

2,652

1 ,080

in.a.

n.a.
n.a.
n.a.

1,076
1.070
n.a.

n.a.

1,332
1,241
1,665
1,314
2,388
1,653
2,652
2,517

656
552
780
664
1 ,048
746
1 ,080
1,018

to 19E7-49-100 by Federal Reserve. The conversion factor i s 123.91.
2/ Averages of d a i l y trading volxme on the New York Stock Exchange.
3/ Moody's 200 common stocks; end of month figures.
x
5 / End of month f i g u r e s f o r member firms of the New York Stock Exchange
*hich~carry margin accounts; excludes money borrowed f o r carrying U. S . Government
obligations.
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 a l l loans
on U.~S. Governments f o r 1952; since 1953 only loans secured by Governments a t
banks i n New York and Chicago are excluded. Weekly r e p o r t i n g banks account f o r
about 72 per cent of loans t o o t h e r s .
n.a.—Not available.
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 f o r d i f f e r e n t s e r i e s .




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

Corporate
1

January
February
• March

e/486
e/350
e/ l,220
:

April
May
June -

e/500
e/750

July
August
September

.

486
6#
8#
8#
346
776

October November
December
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

54a
439
660 r

2/2,055

New c a p i t a l
i

W
623
.623
666 .
779
6751,123

I9i>i>

577
429
l.toti/

1,61+3
1,998
2,0a
1,8^9
7,561

1,912
2,573

1953

535
312
V54o

4n
5#

389
360
426

e/300

734
748
853

329
649
434

279 .
261
649

519
259
475

594
423
877

453
408
774

1,372
2,334
1,188
1,894
6,789

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

183
325
753

1,008
298
592

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

f/1,385

y g y
6,495

396

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

/ 1 MMI

e/1,655

1,562
1,931
1,941
1,795
7,229

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

AM

5 / 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 finance
companies.
e / Estimated.
N ote. — D e ta ils may not add t o t o t a l s due t o rounding.




H.lU

Exhibit E
Large Public S e c u r i t y Issues f o r New C a p i t a l
(Other than U, S . Treasury) 1 /
Proceeds of Large Issues Offered
(I BLllions of d o l l a r s )
Month

Corporate

195U - A p r i l
May
June
July
August
September
October
November
December
1956 - January
February
March
April

\

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

169
32h
350
336
75
335
U13
0
9h
lal
72
750
175

Other 2 /

#7
$57
603
92
.86
L55
388
268
689
3hl
107
337
238

30
35
15

Large Individual Issues Offered during A p r i l
1 Amount
Issuer

tt-pe 3 /

(mill

i ° n S Maturity
1 dollars)

Coupon
r a t e or
net inter'
e s t cost

Offering:
Rating
yield

CORFCRATE
National Gypsum
General Dynamics Corp.
Tennessee Gas Transmission
Fruehauf T r a i l e r Co.
Philadelphia E l e c t r i c
P a c i f i c Lighting
Trans continental Gas Pipe line
P a c i f i c Northwest P i p e l i n e

Common s t k . , 18.6
Conv, deb,, bO.O
Deb.
#.0
Conv. deb., 15.0
1 s t & ref.bds 20.0
Common s t k . , 2a.0
Pfd. s t k . 15.0
Interim notes 17.2

1975 .
1975
1975
1985

3 1/2
h
3 3/U
3 1/0

2.72
3.91
3.57
3,12

1957

5 1/2

.

—

Baa
Baa
Ba
Aaa

—

STATE AND LOCAL C-OVERIMJT
San Francisco, C a l .
D e t r o i t , Michigan
Los Angeles, C a l .
Public Housing Auth.
San Diego County, C a l .
L o u i s v i l l e , Kentucky
Calcasieu Parish, La.
Henderson, Kentucky
Lincoln, Nebraska




1,81,
6 . 9 - •1956-70
2.5U
11. h ' 1956-85
2.1k
1956-75
9.2
2.U2
112.0 -. 1956-95
G.O.
8.b
•1956-75 , , 2.21
1956-95 y
2.22
G.O.
7.5
G.O.
1956-85
2.99
5.5
Rev, .
2.89
1957-85
5.U
10.0
1.91
G.O.
1957-75
G.O.
G.O.
G.O.

0.90-1.95
1.10-2.70
1.00-2.36
1.00-2.55
1.15-2.35
0.75-2.ho
1.20-3.00
1.15-2.95
1.10-2.00

Aa •
A
Aa
A
Aa
Baa
Baa
Aa -

. H.lU

E-2
Large I n d i v i d u a l Issues Offered during April— (Continued)

Issuer

Type 3 /

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

STATE A UP LOCAL GOVCRNI-IEHT
— (Continued)
S t a t e of C a l i f o r n i a
Dallas , Texas
P h i l a d e l p h i a , Pennsylvania
Shreveport, Louisiana

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

30.0

10.0

12.0

1957-81
1956-75
1957-80
1955-75

2.20
2.36
2.19

1,10-2.90 • Aa
1.10-2.35
A
1.30-2.90
A
1.05-2.35
A-Aa

15.0

1958-65

35/8h 1/h

3.63-1.25

10.0

2.05

OTHER
Kingdom of Norway

Bonds

1 / Includes corporate and other s e c u r i t y o f f e r i n g s of 15 million 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 i n g s . of 5 lnillion 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 .
3A 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;'and, L . L . , l i m i t e d l i a b i l i t y obligations secured
by pledge of designated revenues.
h / Bonds maturing 1993-95 not p u b l i c l y r e o f f e r e d .




H.14

Exhibit F

Forthcoming Large Public S e c u r i t y O f f e r i n g s f o r New Capital
. (Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues
During month following
date shown
Corporate S t a t e and
l o c a l govt. Other 2 /

Date of
computation
1954 - Apr. 30
. May 28
June 30
J u l y 30
Aug. 31
Sept.30
Oct. 29
Nov. 30
Dec. 31
1955 - J a n . 31
Feb. 28
Mar. 31
Apr. 29

323
332
336
100
334
343
15
94
184
16
710
211
425

525
596
86
54
300
383
436
661
567
682
524
208
116

27

30

Subsequent t o
late dhown
S t a t e and
Corporate
l o c a l govt.
2,322
1,971
1,524
1,553
1,876
2,158
1,957
2,682
2,144
1,961
1,978
2,009
1,917

647
526
532
303
608
414
135
246
216
422
1,395
" 922
1,141

Other 2 /
27

30
30
35 .
——
—

Forthcoming Large O f f e r i n g s , as of April 29
Issuer

Type

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

CORPORATE
Public Service of Indiana, I n c . .
*Paci£-ic Northwest P i p e l i n e
American Trust Co.
Ohio Edison Co.
W. R. Grace
Bethlehem S t e e l Co.
Alabama Power
Southern C a l i f o r n i a Edison
*Transamerica Corp.
Consolidated Natural Gas
American Telephone and.Telegraph
Southern C a l i f o r n i a Gas Co.




Pfd.,stock
Common stock
Common stock
1st mtg. bonds
Conv. sub. deb.
Conv. deb.
1 s t mtg. bonds
Conv. deb.
Common stdck
Common stock
Convo deb*
Bonds

21.3
15.5
19.5

30.0
30.0

191.7
15.0
: 41.0

60.6

25.1
650.9
40.0

May 9
lay 9
May 10
May 17
May 18.
May 23
May 24
May
May
June
1955
1955

H.14

F-2
Forthcoming Lor^e O f f e r i n g s , as of April 29 (Cont'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
Wash Tp.
Marion Co., Indiana
C i n c i n n a t i , Ohio
*Los Angeles, C a l i f o r n i a
Louisiana S t a t e Building Authority
^State of Maryland
Memphis, Tennessee
*St. Paul, Minnesota
*Allegheny County, Pennsylvania
Oakdale, C a l i f o r n i a
South San Joaquin, C a l i f o r n i a
F l o r i d a S t a t e Turnpike Authority
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
Connecticut Expressway
Texas Turnpike Authority
Sam Houston Turnpike Corp.
Texas Turnpike Company
'Dade County Port Authority, F l a .
Springfield, Illinois
Allegheny County, Pennsylvania
S a n i t a r y Authority
C a l i f o r n i a T o l l Bridge Authority
J e r s e y City Sewerage Auth., N.J.
North Carolina Turnpike Authority

Rev.
GeO.
Rev.
L.L. .
- n.a.
lie a .
n.a.
n.a.
Rev.'
Rev.
Rev.
Rev.
Rev.
n. a.
Rev.
Rev.
Rev.
Rev.
Rev.
Rev.
n.a.
Rev.
Rev. ,
Rev.
n.a.

6.8
19.7
6.0
9.9
11.3
8.3
6.9
5.5
20.8
20.8
74.0
60.0
186.0
80,0
390.0
100.0
58.5
14-6.0
•140.0 •
21.0
9.0

May 4.
May 10
May 11
May 12
May 17
May 17
May 18
May 24
May 25
May 25
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955

85.0
235.0
16.0
200.0

1955
1955
1955
1955

OTHER
None
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.—Not a v a i l a b l e .
*—Included i n t a b l e f o r f i r s t t i m e .