Full text of H.16 Capital Market Developments : May 9, 1957

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May 9, 1957
CAPITAL MARKET DEVELOPMENTS

The volume of large publicly offered securities was moderate
l a s t week and i s expected to be somewhat smaller t h i s week. During the
week ending May 3, one corporate issue f o r $20 million was sold; State
and local government offerings totaled $121 million and a foreign issue
f o r $25 million was sold. This week, a single corporate offering f o r
$25 million and State and l o c a l government issues f o r $58 million are
expected.
Bond yields - Bond yields increased l a s t week f o r a l l categories of outstanding bonds, except those for U. S. Government (old
series) obligations, which declined one basis point.
Cincinnati Gas & Electric Company's Aaa-rated, 30-year f i r s t
mortgage bond issue was reoffered Wednesday to yield it.17 per cent —
eight basis points below the offering yield on the l a s t comparable
issue, an offering made on March 13.
Stock prices » Common stock prices, as measured by the SEC
index of.265 common stocks, reached a new high f o r the year l a s t week,
closing a t 281.3 on May 3. Trading volume, averaging 29k million
shares a day, was somewhat below the 2.7 million average of the previous
week. Daily figures through Wednesday of t h i s week indicate l i t t l e
change in prices e
_
More detailed information concerning recent capital market
developments i s presented in the attached exhibits.

Business Finance and Capital Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System,




EXHIBIT A

HIGH-GRADE

BOND

YIELDS

\ U. S. GOVERNMENT: f
S
long-l.im
/

U. S,
Bate

Corporate

long-term

Old series

Mew series

Spread between
state and
U. S. Govt,
local govt. (old series) and
Aaa | /
Corporate!State and
Aaa 1local Aaa

(Per cent)
3.k2
2.99
3.09
2.85
1955 - High 3.17
Low
2.91
1956 - High 3.79
Low
3.07
1957 - High 3.82
Low . 3.66
1953 - High
Low
195k - High

Anril
April
April
April
May

5
12
19
26
3

(6/19)
(1/9)
(1/8)
(U/23)
(12/23)
(1/7)
(12/28)
(3/2)
(1/k)
(ii/12)

3.66
3.66
3.67
3.69
3.71

3.15
2.78
2.71
2.kk
2.9k
2.62
3.1*9
2.80
3.53
3.15

(6/6)

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

(1/U
(2/8)

3.22
3.25
3.33
3.36
3.35

1/ Weekly average of daily figures.

n.a.

3.03
2.89
3.39
2.92
3.L5
3.22

2.73
1.98
2.21
1.90
(8/5) 2.3k
(6/10) 2.05
(12/28)3.05
(2/3 2.17
(1A) 3.05
(2/8) 2.76

3.30
3.32
3.3k
3. to
3.In-

2.8k
2.8k
2.87
2.96
2.97

(6/25)
(1/8)
(6/10)
(9/2)
(9/8)
(5/26)
(12/27)1
(2/23)
(1/10)
(2/21)

.38
.19
• k3
.32
• 3k
.13
.kk
.13
.5k
.29
.kk
• kl
• .3k
.33
.36

.8k
.30
.61
.29
.70
.5k
.68 .
.32
• k8 .26
.38
.kl
.k6
.ko
.38

Average term of bonds included i s 25-26

2/ Weekly averages of daily figures. The old series includes fully taxable,
marketable 2 1/2 per cent bonds due or f i r s t callable after 12 years through
September 1955, and those due or callable in 10-12 years thereafter; the average
term to f i r s t call of the bonds .included declined from Ik years in early 1953 to
11 1/2 years in early 1956. The new series i s comprised of the 3 per cent bond
of 1995 and the 3 1/k per cent bond of 1978-83.
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 series.




•

EXHIBIT B

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

Bate

Corporate
Baa 1 /

State and
l o c a l govt.
Baa 2 /

State and
l o c a l govt,
rev. y

(Per cent)
1953 - H i g h
Low
195U - High
Low
1955 - High

1957 - high
Low

3.89
3.50
3.7k
3.W*
3.63
3.45
It.Ul
3.58
1.50
h.U2

Anril
Aoril
April
'Anril
May

1.1,2
L.L2
h.ltli
u.U5
L.L8

1956 - High

5
12
19
?6
3

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

3.79
2.96
3.32
2.93
3.26
3.02
In22
3.20
it. 22
3.90
3.93
3.93
3.93
U.00
U.03

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)
(1/6)
(12/27)
(3/8)
(1/10)
(2/21)

3.27
2.71
3.00
2.72
2.99
2.76
3.98
2.89
- 3.98
3.70

(6/26) .
(1/2)
(1/1)
(8/13)
(12/30)
(1/7)
(12/28)
(2/2U)
(1/li)
(2/22)

y.

included i s 26-26 years.
2 / Thursday f i g u r e s . Only general obligation bonds are i n cluded; average term i s 20 years.
3 / Friday f i g u r e s . Average rating of bonds included i s
between Baa and h; average term i s 20 years.
h/ Series discontinued, as of viarch 15.
Note.—highs and lows are f o r individual s e r i e s and may
be on d i f i 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

I'-f-UJ J

1953

Date

1954

Stock price
index 1 /

1956

1955

Common
Trading'
volume 2/
(millions • yields } /
of shares) (per cent

Stock market cust<Diner credit
Customers1
debit bal- loans to
"others" 5/
(Millions of dollars)

1956 - High
Low
1957 - High
Low

167.1
Ihk.O
221.lt
156.5
270.7
217.U
295.5
257.U
281.3
260.3

March
April
April 19
Aoril 26
May 3

265.1
273.3
275.3
276.ii
281.3

1953 - High
195k - High
Low
1955 - High

(1/2)
2.5
(9/18) _
0.9
( 1 2 / 3 1 ) ^ 3.7
(1/6)
l.U >
(12/30)
' L6 (1/Hi)
1.5 '
(8/3)
3.1
(1/20)
1.5
(5/3)
2.7
(2/8)
1.6
1.7
2.3
2.2
2.7

2.U

5.88
5.15
5.19
4.09
1.23
3.59
4.13
3.65'
4.28
3.89
1.16
3.96
4.02
3.99
3.89

1,665
. 2 ,445
2,055
1,314
3,1*36 . 2,388
2,ii05 • 1,653
2,805
1,030
2,517
•3,537
4,047
2,823
2,740
3,914
2,762
3,903
3,832
2,713
3,832
n.a.

2,713
n.a.
n.a.

1

780
664.
1,01,8
746
l,2la
1,018
1,267
1,155
1,163
1,117
1,119
1,1146
l,lli8
1,U6
n.a.

n.a.—Not available.
1/ SEC index of 265 common stocks, weekly closing prices, 1939-100; converted
to 19u7-U9"100 by Federal Reserve. The conversion factor i s 123.91.
2/ Averages of daily trading volume on the "ew York Stock Exchange.
3/ Moody's 125 industrial stocks; weekly data based on Friday.
ti/ 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.
5/ Wednesday figures for weekly reporting mmber banks. Excluded loans for
purchasing or carrying U. S. Government securities at banks in New York and Chicago.
Weekly reporting banks account for about 72 per cent of loans to others.
Note.—Highs and lows are f o r individual series and may be on different dates
for different series.




Exhibit D
Corporate and State and Local Government
Security Offerings and Placements
(In millions of d o l l a r s )

1957
January
February
March •

e/1,03?
2/1,0.02
- e A»j25

April
May
June

e/
=/

900
750

July
August
September
October
November
December
1st
2nd
- 3rd
iith

quarter
quarter
quarter
quarter

1

Corporate
1956 ;|
579
704
790

•Mew c a p i t a l
1955 -

1957

State and l o c a l
1 1956
1

535
407
- 1,223

,685
. 566
p500

404
696
390

535
312
538

816
1,144
630.

478
886
687

(y750
e/450

378
4#
735

427
350
642

836

597
644
670

376
199
333

470
249
406

645
311
426

919
658
408

1,490
1,603
908 .
1,382

1,385
1,418 •
1,124
1,984

3,093
4,001
5,383

2,803
3,927
5,911

1,162&/
717,
1,0862/ •
632
1,091/
900
e/3,366

1 s t half
Three quarters
Year

1955

2,073
2,769
2,571
2,929

2,165
2,052
1,911
2,695

1,862
7,U32
10,362

4,216
6,127
8,821

e/1,751

Excluding finance companies 3 /
1 s t quarter
2nd quarter
3rd" quarter
4th quarter

e/3>166

Year

1,617
2,519
2,263
2,83k
9,233

1,727
1,870

1,444

2,551

7,595

.0/ Estimated.
1 / Includes &637.2 million AT&T convertible debenture i s s u e .
2 j Includes $571.5 million AT&T common stock i s s u e .
y 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 sales and consumer finance
companies.
Note,—Details may not add t o t o t a l s due to rounding.




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

Corporate

1956 - March
April
May
June
July
August
September
October
November
December
1957 - January
February
i
March
Anril

S t a t ^ and
local government

278

Other 2/

163
157
233

623
185
592
217
#6
366
701
430
567
671
788
• 477

50

to

20

164
35
184
383
135
201
386
#6
194
499

——

37
35
100
50
125

Large Individual Issues Offered April 1 through May 3 .
issuer

Type 3/

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

CORPORATE
El Paso Natural Gas Co.
Conv. pfd. stk. 30.0
Baltimore Gas & Elec, Co. Common stk.
17.9
Southern Company
Common stk.
30.1
Aluminum Co. of Canada, Ltd. S. F. deb. 125.0
Sears Roebuck Accept. Corp, Sub. deb.
25.0.
Houston Lighting & Fttr. Co. Common stk.
26.3
U. S. Foil Company
Common stk.
19.0
Reynolds Metals Company
Common stk.
18.9. ,
Transcontinental Gas Corp. 1st mtg. bds. 50.0 Columbia Gas System, Inc.
Common stk.
26.ii
Babcock & Wilcox
Capital stk. 18.7
Northwestern Bell Tel. Co.
Deb.
30.0
Lone Star Gas Co.
S. F. deb.
30.0
^Northern Natural Gas Co.
S. F. deb.
30.0
S, F. deb.
20.0
" P a c i f i c Greet Eastern Ry,,




1980
1977

4 1/2
^ 5/8

It. 36
k.63

1977

5

4.95

1989
1982
1976
1982

a 3/8
4 5/8
13/6

4.31

4.55
L.54

4.61

Aaa
A
A
A

H.Ik

E-2
Large Individual Issues Offered April 1 through hay 3 .(Cont'd)
Issuer

Type 3/

Coupon
Amount
(millions Maturity r a t e or
net
interof
e s t cost
dollars)

Offering
Rating
yield

STATE AND LOCAL G07ERMHENT
G.0,
J e f f e r s o n Co., Texas
5.U
Los Angeles City Sch. Dist,
G.O.
20.0
California
Expressway rev, 50.0"
State of Connecticut
Harris Co, Navigation Dist,
G.O.
7.0
Texas
G.O.
Miami, Florida
7.5
Wtre & swr. rev. 5 . 0
Lynchburg, Virginia
Expressway rev.25.0
State of Michigan
Jacksonville Expressway
Kev,
1^6.3
Authority
36.1
Public Housing Authorities
G.O.
6.7
St. Paul, Minnesota
Tollbridge rev,13.0
Chicago, I l l i n o i s
Dormitoiy rev,, 6 . 0
JDhio State University
G.O.
8,5
N i c h i t a , Kansas
G.O.
22.2
.-lilwaukee, Wisconsin
G.O.
5.0
Orleans Par, Sch, D i s t , , La,
G.O.
Philadelphia, Penna.
29.5
Huntington Sch. D i s t . ,
6.0
G.O.
No. 13, N. Y.
G.O.
10.0 •
S t a t e of Oregon
G.O.
2^.2
Baltimore, Maryland
G.O.
* 30.5
New York, New York
8.0
Highway rev.
State of Colorado
•80.0
G.O.
State of California
ReV.
L i t t l e Pc"K :.r' . , " t r i
Parking r u \ . 5.5
'Gir.cinn.; t i , Chic
Sewer rev.- 5.0
D e t r o i t , Michigan
G.O.
Cleveland, Chio
17.3
G.O.
10.2
Long Beach., California
60.0
State of Ohio •
G.O.
Rev.
Ne%f York St. Power Auth,
6.8
Melbourne, Florida
VJtr. &swr.rev. 6.8

1958-77

3.U5

2.25-3.50

A

1958-82
1962-97

3.16
3.69

2.10-3.20
2.75-3.67

Aa
A

1958-87.
1959-68
1958-77 •
1958-77

3.25
5.^2
2.80
3.1b

2.20..1t.00^
2.70-3.50
2.00-2,85
2.15-3.15

A
A
Aa
Aa

1961-92
1958-93
1958-87
1995
1960-97
1958-77
1958-77
1961-95
1958-82

h.32
2.88
2.88
IU5
i i . l9
3.16
2.82
3.72
3.51

1958-86
1967-70
1958-86
1958-72
1958-72
1958-83
1S6:W3
1960-97
1956-02
1958-77
1959-82
1958-72
1961-85
1960-96

3.98
3.18
3.30
3.U5
3.22
3.hh
li.lL
U. 70
3.17
3.06
3.60
' 2.9U
3.78
n.a.

3.20-U.28
1.90-3.00
2,00-2.90
h.hO
n.a.
• 2.20-3.30
2.CO-2.88
2.80-3.70
2.30-3.52

Aaa
Aa
—
—

A
Aaa
A
A

Baa
2.50-3.90
Aa
3.02-3.05
2.15-3.35 Aa •
A
2.30-3.50
2.30-3.15 Aa
2.W-3.15 ^ Aa
3.:5-L/v&
n.a,
3.50-1.75
A
2.30-3.50
Aa
2.30-2.80
2.60-3.70 Aa
2.00-2.95, Aaa
—
3.CO-3.75
3.50-5.00
—

OTHER
High Auth. of the European
Coal & S t e e l Community
I n t e r n a t i o n a l Bank f o r Reconstruction & Development
B r i t i s h Columbia Pwr. Comm.




Bonds

25,0

1975

5 1/2

5.50

Bonds
S.F.deb.

100.0
25.0

1978
1987

k 1/h
k 3/8

h.ko
L50

Aa
A

E-3
n.a.—Not available,
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 f o r Reconstruction and
Development issues,
3/ In the case of State and local government s e c u r i t i e s , G.O, denote? general
obligation; Rev 0 , revenue bonds; G.R., general obligations, additionally secured by
f a c i l i t i e s revenues; L.L,, limited l i a b i l i t y obligations secured by pledge of
• designated revenues.
h/ 1986-87 maturities not reoffered,•
3 / 1960-68 maturities not reoffered.




E.14

Exhibit F

Forthcoming Large Public Security Offerings f o r New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
Date of
computation
195% - Apr, 30
May 31
June 29
July 31
Aug, 31
Sept. 28
Oct. 31
Nov, 30
Dec. 31
1957 - Jan. 31
Feb. 28
Mar. 29
. Apr. 30

Subsequent to
During month following
date shown
date shown
State and
State and Other 2/ Corporate
Corporate local
local govt.
govt.
568
198
137
247
369
315
683
436
476
591
740
461
187

173
332
81
131
359
162
48
280
153
153
390
179

37

23
100
35
' 25
25

818
• 448
567
1,096
1,202
1,009
990
481
796
966
795
486
2#

832
941
690
726
958
1,197
955
979
763
648
631
862
396

Other2/

37

23
100
35
25
25

Forthcoming Large Offerings, as of May 3
Type

Amount
date
(millions Approximate
of offering
[of dollars)

CORPORATE
- Cincinnati Gas & Electric Co.
Central Maine Power Co.
New York State Elec. & Gas Co.
Florida Power & Light Co.
Public Service Co. of Colorado
I n t e r s t a t e Power Co.
*New York Telephone Co.
%Acme Steel Co,
Niagara Mohawk Power Corp.
National Fuel Gas Co.
General Telephone Corp.

1st mtg. bds.
1st mtg. bds.
1st mtg. bds,
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Ref. mtg. bds.
S, F. deb.
Pfd. stk.
Deb.
Conv. deb.

25.0
18.0
25.0
15.0
30.0
18.5
70.0
22.9
20.0
15.0

-^Metropolitan Edison Co.
1st mtg. bds.
-^International Business Machines Corp,
Common stk.

19.0
200.0

Michigan Wisconsin Pipe 2/ine Co.




1st mtg. bds.

46.0

25.0

May 8
May Ik
May 15
May 16
May 21
May 21 ,
May 21
May 22
May 22
May 28
June 10
(rights expire)
June 10
June 10
(rights expire)
1957

H.Ik

F-2

^

'

Forthcoming Large Offerings, as of May 3 (Cont'd)
Issuer

Type

Amount
date
(millions Approximate
of offering
of dollars)

STATE AND LOCAL GOVERNMENT
Cincinnati, Ohio
G.O.
Chicago, I l l i n o i s
G.O.,
Jacksonville, Florida
U t i l i t i e s rev.
Shelby Co., Tennessee
G.O.
G.O.
Territory of Hawaii
Tulsa Ba. of Ed,, Oklahoma
G.O.
State of North Dakota
G.O.
•s-State of Massachusetts
G.O. .
-^Boston, Massachusetts
G.O. •
State of Tennessee
G.O.
#King Co., Sch, Dist. No. 1, Wash.
G.O.
•^State of Texas
G.O.
State of Mississippi
G.O.
*Los Angeles, California
Elec. rev.
Louisville & Jefferson Cos. Sewer
D i s t . , Kentucky
Rev.
University System Bldg, Auth., Ga.
Rev.
Pennsylvania Turnpike Commission
Rev.
Rev.
Inter-American Center Auth., Florida
G.O.
New York State Thruway Authority
Oklahoma Turnpike Authority
Rev,

15.1
12,5
30.0
6.8
lU.o 5.0
9.0
19.1
5,3
10.0
15.0
12.5
10.0
i5.o

May 7
May 8
May 9
May 13
May lli
May lb
May lU
May li|
May 21
May 22
May.22
May 28
May 29
June 5

8.0
12,0
62.0
20,0
50.0
65.0

1957
1957
1957
1957
1957
1957

OTHER
None
*—Included in t a b l e f o r f i r s t 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 f o r Reconstruction
and Development issues.
Note.—Deletions f o r reasons other than sale of issue: None.




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