Full text of H.16 Capital Market Developments : November 15, 1956

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Not for Publication DECONTROLLED AFTER SIX MONTHS
H.14

November 15, 1956
CAPITAL MARKET DEVELOPMENTS

Large public security offerings issued for new capital
during the week ending November 9 totaled $617 million f o r corporations and $2U million f o r State and local governments. The corporate t o t a l includes the $572 million AT&T common stock issue,
rights for which expired on November 5. This week, two corporate
u t i l i t y issues t o t a l i n g $70 million and State and local government
offerings for $66 million are scheduled f o r sale. One of the corporate issues expected this week was originally scheduled for sale
in l a t e October, but was postponed u n t i l a f t e r the elections.
Bond yields - Bond yields continued to move upward l a s t
week for a l l categories of outstanding bonds, except f o r those on
U. S. Government (new series) obligations, which remained stable.
The increase was s l i g h t f o r yields on corporate and U. S. Governmen (old series) bonds, but i t was quite sharp for State and local
government bonds.
Offering yields on new corporate issues also continue to
increase. A new Aa-rated 30-year f i r s t and refunding mortgage bond
issue was reoffered this week a t a yield of it. 30—10 basis points
above the l a s t comparable issue, an offering made on October 31.
Stock prices - Stock prices, as measured by the SEC index
of 265 common stocks, declined 2.3 points l a s t week, closing a t
275.7 on November 9. Daily figures through Wednesday of t h i s week
indicate a substantial decline in prices on Wednesday a f t e r slight
increases on Monday and Tuesday.
•
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.




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

CORPORATE A a o

\ u. S. GOVERNMENT: y / X / ^ "

STATE AND LOCAL
GOVERNMENT A a a

D. S. Govt., long-term 2/
Date

Corporate
Aaa 1 /

Old series

New s e r i e s

Spread between
U. S. Govt,
State and
l o c a l govt. (old s e r i e s ) and
CorporatelState and
Aaa J /
Aaa
| l o c a l Aaa

(Per cent)
3.1*2
2.99
3.09
2.85
3.17
2.91
3.66
3.07

(6/19)
(1/9)
(1/8)
(V23)
(12/23)
(3/7)
(11/9)
(3/2)

3.15
2.78
2.7U
2.a
2.9U

(6/6)
n.a
(12/26)
n.a
n.a
( 1/9)
...
(8/7)
(8/5) 3.03 (8/5)
2.62 (1/7) 2.89 (6/10)
3.27 (11/9) 3.29 (11/9)
2.80 (2/17) 2.92 (2/3)

iM

I

IS

3.27

3.21
3.22
3.27
.3.29
3.29

2.73 (6/25)

.38

1.98 (1/8)
2.21 (6/10)

lU3

M

i
2.79 (108)

ill

2.17 (2/23)

.13

2.63
2.68

.la

2.*7U
2.79

.bi

.39
.39
.39

.29

J

.1*5

£
.50
.52

1/ Weekly -average of daily figures. Average term of bonds included Is 25-26
years.
2 / Weekly averages of daily figures. The old series includes f u l l y taxable,
marketable 2 1/2 per cent bonds due or f i r s t callable a f t e r 12 years through
September 1955, and those due or callable i n 10-12 years thereafter; the average
term to f i r s t c a l l of the bonds included declined f r e e 1U 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 l/U 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 f o r individual series and may be on different dates
for different s e r i e s .




L O W E R - G R A D E BOND YIELDS

CORPORATE Baa

STATE AND LOCAL GOVT. B a a

STATE AND LOCAL GOVT. REVENUE

M
.1955

1953

Corporate
Baa 1/

Date

State and
local govt.
Baa 2/

J
1956

S

D

State and
local govt,
rev. 3 /

(Per cent)
1953 - High
Low
195k - High
Low
1955 - High
Low
1956 - Higi
Low

3.89 (9/18)
3.50 (1/2)
3.71V (1/8)
3.1*L (12/31)
3.63 (12/30)
3.1*5 (1/1h)
1*.21 (11/9)
3.58 (3/9)

3.26 (12/29)
3.02 (1/6)
3.89.(11/8)
3.20 (3/8)

3.27
2.71
3.00
2.72
2.99
2.76
3.80
2.89

October 12
October 19
October 26
November 2
November 9

1*.16
I*.l6
1*.18
U. 20
1*.21

3.62
3.71
3.77
3.82
3.89

3.52
3.56
3.61*
3.71
3.80

3.79 (6/25)
2.96 (1/8)

8®

(6/26)
(1/2)
(1/1)
(8/13)
(12/30)
(1/7)
(11/9)
(2/21*)

1/ Weekly average .of daily figures. Average term of bonds
included i s 25-26 years.
2/ Thursday figures. Only general obligation bonds are
included; average term i s 20 years.
3/ Friday figures. Average rating of bonds included i s
between Baa and A; average, terra i s 20 years.
Note.--Highs and lows are f o r individual series and may
be on different dates f o r d i f f e r e n t s e r i e s .




STOCK MARKET

y

Stock price

-

Common,
Trading
volume 2/
(millions yields- J /
of shares) (per cent)

Stock market customer credit
Customers'
debit b a l - loans to
ances h / "others" S J

Total

(Millions of dollars)

1956 - High
Low

167.1
1M+.0
221.1+
156.5
270.7
217.1+
295.5
257.li

September
October
October 26
November 2
November 9

278.2
275.7
275.0
278.0
275.7

1953 - High
Low |
195U - High
Low
1955 - High

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

2.5
0.9
3.7
1.1+
1+.6
1.5
3.1
1.5

.

2.0
1.8
1-6
2.1
2.3

>

5.75
5.15
5.33
It. 20
1+. 22
3.78
1+.21+
3.86

2,165
2,055
3,1+36
2,Uo5
1|,030
3,537
l+,0l+7
3,950.

1,665 '
1 , 3 lit
2,388
1,653
2,805
2,517
2,810
2,71+0

780
66U
1,01+8
71+6
1,21+1
1,018
1,267
1,166

1+.2U
1+.23

3,950

2,782

n.a.

n.a. ,

n.a.

1,168
1,166
1,171
1,166 .
n.a.

n.a.—Not available.
V SEC index of 265 common stocks, weekly closing prices* 1939-100; converted
t o 1957-U9"100 by Federal Reserve. The conversion factor i s 123.91.
2 / Averages of daily trading volume on the New York Stock Exchange.
3 / Moody's 200 common stocks; end of month f i g u r e s . •
U/ 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.
5 / Wednesday figures 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 72 per cent of loans to others.
Note.—Hig^is 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.




n/
H.lk

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

1956
January
February
March

New c a p i t a l
Corporate •
State and l o c a l
1956
195U
1 1955
1
1 1955
1
5k7
U26
635

UoV
696
390

535
312
538

396
iai
#5

178
886
687

il97 :
656
81+2

377
U90
735

1+27
350
6I4I

73U
7U8
#3

597
6 kk
670

909
335
7U7

579
70U
790

535
i;07
1,223

April
May
June

816
1 , 1 kk
830

July
August
September

1,066
669
836

October
November"
December

e/800
e/l,200

B 1 s t quarter
2nd quarter
1 s t half
3rd quarter
Three quarters
iith quarter
Year

2,073
2,790
1,863
2,571
7 »k3k

195U

.

376
199
e/350

170
2U9

279
261

koS

6h9

1,162 ^
632
900

1,003
.290
60U

e/635
.e/325

919
658
W8

59k
U23
877

2,165
2,052
i|,217
1,911
6,128
2,695
8,821

1,608
1,995
3,603
1,991
5,591
1,896
7,k90

1,A|.90
1,603
3,093
e/925
e/E,018

1,385
l,iil8
2,803
1,12k
3,927
1,981
5,911

1,372
2,33k
3,706
1,188
k,8 9k
1,8 9k
6,789

Excluding f i n a n c e companies 2 /
1st quarter
2nd quarter
3rd q u a r t e r
1+th quarter
Year

1,617
2,520
2,321

1,727
1,870
1,U3U
2,55k
7,569

1,527
1,927
1,911 .
1,792
7,158.

e / Estimated.
'
'
1 / Includes $637.2 million AT&T convertible debenture i s s u e .
2/ 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 to t o t a l s due t o rounding.

#



Exhibit E

H.lU

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

State and
local government

Other 2/

805
221
263
95
212
278
395
6#
185
592
217
558
386

716
1*01
227
192

__

1955 - October
November
December
1956 - January
February
March
April
May
June
July
August
September
October

25
50

khh

163
157
233
163
16U
35
18U
383

50
20
37
35

Large Individual Issues Offered November 1 through November 9
Issuer
.

Type 3/

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

CORPORATE

Allied Stores Corp.
American Tel. & Tel. Co.
Northspan Uranium
Mines, Ltd.•

S.F. deb.
Common stk.

15.0
571.5

1976

h 3/h

1.75

A

C-en. mtg. bds.

L5.0

1963

5 3/h

5.93

—

Elec. rev.
G.O.
G.O.

13.5
5.3
5.0

1957-86
1957-81
1957-76

3.36
2.99
3.57

2.25-3.35
2.10-3.00
2.1*0-3.60

STATE & LOCAL GOVERNMENT
Los Angeles, Calif.
Trenton, New Jersey
San Antonio,.Texas
.

OTHER

None




-

Aa
Aa
A

E-2
1 / Includes corporate and other security offerings of $15> million and over; State and local government security offerings of $5
million and over.
~
•
2/ Includes foreign government and International Bank f o r Reconstruction and Development issues.
"$/.
In the case of State, and local government s e c u r i t i e s , G.O.
denotes general obligation; Rev., 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.




Exhibit F

H.1U •

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

During month following
date shown
Corporate State and Other 2/
local govt.
202
215
70
176
123
380
568
198
1*37
2U7
369
315
683

1 9 # - Oct. 31
Nov. 30
Dec. 30
1956 - Jan. 31
Feb. 29
Mar. 30
Apr. 30
May 31
June 29
•.July 31
Aug. 31
Sept. 28
Oct. 31

330
205
121
327
220
132
173
332
81
131
359
162

50

Subsequent to
date shown
Corporate State and Other 2/
local govt,
, U12
230
85
376
233
1,013
818
m

37

567
1,096
1,202
1,009
990

1,650
756
618
917
. 785
811
832
9Ul
690
726
958
1,197
955

50

37

Forthcoming Large Offerings, as of November 9
Type

Public Service Electric & Gas Co.
Pacific Lighting Corp.
Sinclair Oil Corp.
Chase Manhattan Bank
*Long Island Lighting Co.
^Public Service Electric & Gas
-^Burroughs Corp.
Seaboard Finance Co.
J . P. Stevens & Co.
Michigan Wisconsin Pipe Line Co.
Southern New England Telephone Co.




Amount
(millions Approximate date
1 of dollars) of offering

Ist'&ref. mtg.bds.
Conv. pfd.
Conv. sub. deb.

50.0
20.0
170.6

Cap. stk.

1|7.0

1st mtg. bds.
Common stk.
Deb.

20.0
33.0
" 30.2

S. F. notes
S. F. deb.
1st mtg. bds.
Common stk.

15.0
28.7
25.0
20.U

November 15
November 16
December 3
(rights expire)
December 3
(rights expire)
December 5
December
December
(rights expire)
Winter
. Winter
Winter
Winter

.
H.lit

"

.

F-2
Forthcoming Large Offerings, as of November 9 (Cont'd)
Type '

Amount
(millions Approximate date
of offering
of dollars)

STATE AND LOCAL GOVERNMENT
Chicago, 111.
Water rev.
Newark, New JerseyG.O.
Chicago Board of Education, 111.
G.O.
Cleveland, Ohio
Water rev.
State of Oregon
G.O.
Houston, Texas
G.O.
-xHempstead School Dist. No. 5, N. Y.
G.O.
•Long Beach, Calif.
G.O.
Florida State Board of Education
G.O.
^Niagara F a l l s , New York
G.O.
State of Connecticut
Expressway rev.
Memphis, Tennessee
Elec. rev.
Pennsylvania Turnpike Commission
Rev.
Washington State Toll Bridge Auth.
Rev. •
Inter-American Center Auth., Fla.
Rev.
New York State Thruway Authority
G.O.
m Jacksonville Expressway Authority
Rev.
• Florida State Turnpike Authority
Rev.
Oklahoma Turnpike Authority
Rev.

5.0
1-2.5
10.0
7.it
5.7
20.0
5.6
5.0
9.3
6.k

51*. 0
15U.0
62.0
227.0
20.0
50.0
1*2.0
185.0
65.0

November
November
November
November
November
November
November
November
November
November
November
December
Winter
Winter
Winter
Winter '
Winter
Winter
Winter

13
13
Ik

111
Ik
Ik

15
20
27
28
20 .

OTHER
None
*—Included in table for 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 for reasons other than sale of issue: None.

S



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