Full text of H.16 Capital Market Developments : November 23, 1955

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Y

1

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Not f o r Publicaticn
Hellt

November 2 3 / 195#
CAPITAL I.LIRKET DEVELOPMENTS

S t a t e and l o c a l governments o f f e r e d 187 m i l l i o n d o l l a r s
of l a r g e i s s u e s during t h e week ending November 18, and proceeds
from l a r g e corporate o f f e r i n g s t o t a l e d 137 m i l l i o n d o l l a r s . This
was a s u b s t a n t i a l l y g r e a t e r volume than was o f f e r e d the preceding
week and more than i s a n t i c i p a t e d f o r the current week. The v o l ume of l a r g e i s s u e s expected t h i s week i s 70"million d o l l a r s f o r
t h r e e o f f e r i n g s by S t a t e and l o c a l governments and
million f o r
two coiporate common stock i s s u e s .
Bond y i e l d s - U. S . Government long-term bond y i e l d s rose
t h r e e b a s i s p o i n t s during the week ending November 18; y i e l d s on
corporate and S t a t e and l o c a l government bonds d i d not change.
According t o d a i l y f i g u r e s , corporate y i e l d s increased s l i g h t l y
on Monday of t h i s week; Treasury o b l i g a t i o n y i e l d s r o s e on Monday
and decreased on Tuesday.
Stock p r i c e s - The SEC index of 26£ common stocks i n creased s l i g h t l y t o t o t a l 267.2 l a s t week in moderately heavy t r a d i n g . Daily indexes i n d i c a t e d a p r i c e r i s e on Tuesday and YJednesday
of t h i s week which more t h a n o f f s e t Monday's decline*
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 fcund i n the a t t a c h e d e x h i b i t s •

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

H I G H - G R A D E B O N D YIELDS
Weekly

CORPORATE A o o

X A-V
GOVERNMENT

STATE AND LOCAL
GOVERNMENT A o o

Date

Corporate
Aaa 1/

U. S. Govt.
long-term 2 /

Spread between
State and local
U. S. Govt, and
Corporate State and
govt., Aaa 3/
local Aaa
Aaa
(Per cent)

1 9 # - High

1954 - High
Low
1955 - High
Loir

3.03
2.91
3.L2
2.99
3.09
2.85
3.14
2.91

October 21
October 28
November 4
November 11
November 18

3.10
3.10
3.10
3.08
3.08

1953 - High

(lA)

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

2.79
2.56
3.15
2.78
2.74
2.44
2.94
2.62
2.82
2.81
2.79
2.83
2.86

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

2.00
1.65
2.73
1.98
2.21
1.90
2.34
2.05
2.24
2.24
2.19
2.19
2.19

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

.37
.19
.38
.19
.43
.32
.34
.13

1.02
.71
.84
.30
.61
.29
.70
.54

.28
.29
.31
.25
.22

.58

.57
.60
.64
.67

1/ Weekly average of dally figures. Average term of bonds included i s 2f>-26
years.
2 / Weekly average of daily figures; old series. Average term to f i r s t call
of bonds included i s 11-14 years.
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 - G R A D E B O N D YIELDS
Weekly

Per

|

1952

V'S

\

STATE AND LOCAL GOVT.
„
Moody',
|

1954

1953

1935

(Per cent)
1952 - Higi
Low
1953 - High
Low
19A - High
Low
1955 - High
October 21
October 28
November k
November 11
November 18

3.63
3.18
3.89
3.50
3.7U
3. a
3.59
3.U5

(1A)
(5/16)
(9/18)
(1/2)
(1/8)
(12/31)
(11/ii)
(1M)

2.98 (10/23)
2.1*8 (4/17)
3.79 (6/25)

2.96 (1/8)

3.32 (1/7)
2.93 (8/5)
3.25 (9/22)

3.02 (1/6)
3.20

8

3.58
3.58.

:

3.23
3.19
3.19
3.19

2.69
2.27
3.27
2.71

(12/19)
(U/25)
(6/26)
(1/2)

3.00 (1/1)

2.72 (8/13)
2.95 (9/2)
2.76 (1/7)
2.89
2.87

2.86
2.86
2.86

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




STOCK MARKET

Stock p r i c e
index 1 /

Trading
Common
volume 2 /
(millions yields 2 /
of s h a r e s ) (per c e n t )

Stock market customer c r e d i t
Customers'
debit b a l - loans t o •
ances k / " o t h e r s " 5 /
( M i l l i o n s of d o l l a r s )

1952 - High
Low
1953 - High
Low
195U - High
Low
1955 - Hi#i
Low

165.3 (12/26)
151.7 (10/210
167.1 (1/2)
Htlt.O (9/18)
22lJj (12/31)
156.5 (1/6)
269.7 (9/23)
217.1* (lM)

2.0
0.9
2.5
0.9
3.7
1.1;
lt.6
1.5

5.77
5.13
5.75
5.15
5.33
It .20
It.22
3.78

1,986
l,80lt
2,ltlt5
2,055
3,lt36
2,lt05
3,966
3,537.

1,332
l,2ltl
1,665
l,33Jt
2,388
1,653
2,805
2,517

656
552
780
66U
1,018
7lt6
1,217
1,018

September
October
October 28
November It
November 11
November 18

263.6
250.lt
251.6
259.1
265.lt
267.2

2.9
2.0
1.8
1.9
2.3
2.5

3.93
It.12

3,966
3,9ltlt

2,805
2,7lt9

n.a.

n.a.

n.a.

1,161
1,155
1,195
1,215
1,217

. available.
V SEC i n d e x of 265 caramon s t o c k s , weekly c l o s i n g p r i c e s , 1939-100} converted
t o 19Hy4i9-100 by F e d e r a l Reserve. The conversion f a c t o r i s 123.91.
2 / Averages of d a i l y t r a d i n g volume on t h e New York Stock Exchange.
3 / Moody's 200 common s t o c k s j end of month f i g u r e s .
kf End of month f i g u r e s f o r member f i r m s of t h e New York Stock Exchange which
c a r r y margin a c c o u n t s ; excludes b a l a n c e s secured by U. S . Government o b l i g a t i o n s .
£ / Wednesday f i g u r e s f a r weekly r e p o r t i n g member b a n k s . Excludes a l l l o a n s
f o r p u r c h a s i n g or c a r r y i n g U. S . Governments f o r 19523 s i n c e 1953 m l y t h e s e l o a n s
a t banks in New York and Chicago a r e excluded. Weekly r e p o r t i n g banks account f o r
about 72 p e r c e n t of l o a n s t o o t h e r s .
Note.—Highs -and lows a r e f o r i n d i v i d u a l s e r i e s and may b e on d i f f e r e n t d a t e s
for different series.




libit D
Corporate and S t a t e and Local Government
S e c u r i t y Offerings and Placements
(In m i l l i o n s of d o l l a r s )

1955
January
February
March April
May
June -

623

535

635

666

538

494

k91
842

779
675

1,123

909

. 1*83

583

654
680

#6

335
747
1,003
290

October
November
December
1 s t quarter
2nd quarter
3 r d quarter
4 t h quarter
Tear

1955

k2 6

697

'

New c a p i t a l

1953

51*6
U36
1,261

903

.

July
August
September

Corporate
1 1954
1

6o4

2,243
2,09k
1,917

1,608

623

325
753

1,912
2,578

1,896
7,490

. i S "

396

411

1953
390
360

565

426

427
350

734

641

748
853

329
649
434

470
249
e/390

279
261
649

519
. 259
475

8

. J v

1,995

1,991

S t a t e and l o c a l
1 • 3954
1

1,385
1,418

e/1,109

877

774

1,372
2,334

1,176
1,412

6,789

i l

1,188
1,894

Excluding fi n a n c e companies 3 /
1 s t quarter
2nd quarter
3 r d quarter.
4 t h quarter
Tear

1,791
1,912

i,44l

1,527
1,927
1,911
1,792

7,158

1,669
1,991
1,223
2,31*4

7,227

e/ Estimated.
1/ I n c l u d e s 637.2 m i l l i o n d o l l a r AT&T c o n v e r t i b l e d e b e n t u r e i s s u e .
2 / I n c l u d e s 602 .5 m i l l i o n d o l l a r AT&T - c o n v e r t i b l e debenture i s s u e .
3 / Total new c a p i t a l i s s u e s e x c l u d i n g o f f e r i n g s of sale's and personal f i n a n c e
companies.
N o t e , — D e t a i l s may n o t add t o t o t a l s due t o r o u n d i n g .




Exhibit E
Large Public Security issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(Millions of d o l l a r s )
Month

Corporate

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

to

1954 - October
November
December
1955 - January
February
March
April
May

0
121
141
63
750
173
U83 .
175
101
1*05
328
805

July
August
September
October

I

Other 2 /

388
268
689
341
107
337
238
152
403
278
65
23k
716

30
35
15

—

Large I n d i v i d u a l I s s u e s Offered November 1 through 18
Issuer

Type 3/

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

• CORPORATE
United Gas
New England T e l . & T e l .
National Tea Co.
P a c i f i c Limiting
Michigan Consolidated Gas
Commonwealth Edison

lsfc&colLbds.,
Deb.
Conv. SF deb.
P f d . stock
1st intg.bds.
Common s t k .

20.0
30.0
15.0
20.0
30.0
41.6

1975
1991
1980

3 3/8
3 1A
3 1/2

3.25
3.20
3.38

A .
AaBaa

1980

3 1/2

3.35

A

STATE & LOCAL GOVERNMENT
F l o r i d a S t a t e Board of
Education
. S t a t e of C a l i f o r n i a
T e r r i t o r y of Hawaii
P a r t of New Orleans, La.
Hamilton County, Ohio
, State of Oklahoma
' D a l l a s , Texas




Rev.
G.Of
G.O.
G.O.
G.O.
G.O.
G.O.

10.6
60.0
7.5
10.0
5.6
9.0
10.0

1957-76
1957-81
1958-75
1960-90
1957-81 h /
1956-61 *
1956-75

2.87
2.17
2.44
2.62
2.06
1.75
2.38

1.90-2.82
1.50-2.30
1.80-2.50
2.00-2.70
1.50-2 d o
1.35-1.65
1.50-2.45

A
Aa
A
A
Aaa
Aa
A

7
H.llt

X-2

Large I n d i v i d u a l Issues Offered November 1 through 18 (Cont'd)

Issuer

Type 3/

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

STATS & LOCAL GOVERNMENT
(Cont'd)
S t , Louis Bd. of Educa- .
Lion, Missouri
Md, S t a t e Roads' Commission
Cciiimonwealth. of Mass.
Sonoma Co. Flood Control
& Water Conservation
Dist.} Calif.

G.O.
L.L.
G.O.

6.5
15.0

1957-75

2.'07

159.8

1956-2005

G.O.

5.7

1960-91;

1956-70

2.12

2,31

l.ii0-2.10
1.60-2.15
1.50-2,60

Aa
Aa
Aa

2.58

1.75-2.90

Aa

OTHER

1/ Includes corporate 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 d o l l a r s and
overj 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 m i l l i o n and over.
2 / l n c i u d e s 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 .
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 gene r a l o b l i g a t i o n j Rev., revenue bonds3 L.L. l i m i t e d l i a b i l i t y o b l i g a t i o n s secured
by pledge of designated revenues.
k / 1960-61 m a t u r i t i e s not r e o f f e r e d .




Exhibit F

H.l4

Forthcoming Large Public S e c u r i t y Offerings f o r New C a p i t a l
(Other than U. S, Treasury) 1/
Expected Proceeds from Forthcoming Large I s s u e s .
During month following
date shown
State and Other 2 /
Corporate
l o c a l govt.

Date of
computation
195'; - Oct. 29
Nov. 30
Deo. 31
1955 - Jan. 31
Feb. 28
Mar. 31
Apr. 29
•May 31
June 30
July 29
Aug. 31
Sept. 30
Oct. 31

15
94
134
16
710
211
425
160
67
407
222
805
202

•

436
661
567
682
524
208
116
339
344
100
184
843
330

Subsequent to
date shewn
State and Other 2/
Corporate
l o c a l govt.

30

—
——

135
246
216
422
1,395
922
1,141
850
830
1,135
920
909

—

1,957
2,682
2,144
1,961
1,978
2,009
1,917
1,861
1,845
2,018
1,971
2,205
1,650 ,

30
30
35

- —
—
—

Forthcoming Large O f f e r i n g s , as of November 18
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 )

CORPORATE
Southern Co.
•^Kimberly-Clark Corp.
San Diego Gas and E l e c t r i c Co. .
Wheeling S t e e l
Baltimore Gas and E l e c t r i c
Radio Corporation of America
Consolidated Edison Co. of New York
New Jersey B e l l Telephone
Sheraton Corporation of America

Common stock
Common stock
1 s t ratg. bds.
Conv. deb.
1st & r e f . bds.
Conv. deb.
1st & r e f . bds.
Deb.
;
Deb.

26.4

18.6
18.0

19.1

30.0

100.0
70c0

25.0
15.0

November.22
November 22
November 29
November 30
November 30
December 5
December o
December 14
1956 ^

STATE AND LOCAL GOVERNMENT
Georgia Rural Roads Authority
Orlando, F l o r i d a
New York, New York
Port of New York A u t h o r i t y
•sOakdale I r r i g a t i o n D i s t . , C a l i f . .
•it-South San Joaquin I r r i g a t i o n
District, California




L «L.
Rev.
G.O.
n.a.
Rev.
Rev.

14.5
5.4
5o.o

i6.o
5.3

5.3

November
November
November
,November
November

22
22
22
30
3.0

November 30

H.ll*

F-2
Forthcoming Large O f f e r i n g s , a s of November 18 (Cont'd)_
Issuer

Type

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

STATE AND LOCAL GOVERNMENT (Cont'd)
Onondaga Co. Y/ater A u t h o r i t y , N . I *
Los Angeles, C a l i f o r n i a
S t a t e of Colorado
*Cook County, I l l i n o i s
*New York T h r w a y
*San F r a n c i s cp, C a l i f o r n i a
C a l i f o r n i a T o l l Bridge A u t h o r i t y
Connecticut Expressway
e s t a t e . o f South Carolina
Inter-American Center A u t h . , F l a .
Texas Turnpike Company
Michigan Turnpike Authority
California, T o l l Bridge A u t h o r i t y
Louisiana Turnpike Commission
Oklahoma Turnpike Authority
Pennsylvania Turnpike Commission
Washington S t a t e T o l l Bridge Auth.

Rev.
n.a.
n.a.
n.a.
n.a. .
n.a.
Rev.
Rev.
n.a.
Rev.
Rev.
Rev.
Rev..
Rev.
Rev.

12 06
20.0
8,0
6.8

Rev.

£0.0
13.3.
1*6,0
100.0
20,0
25,0
137.0
186.0
235.0
100.0
146.0
62.0
227.0

Bonds

25.0

ReVg

December
December
December
December
December
' December
December
December
December
' -1955

6
6
6
7
7
13
13
13
1k

1955

1955-56
1955-56
1955-56
1955-56
1955-56
1956

OTHER
Union of South A f r i c a

November 30

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 .
1 / Includes c o r p o r a t e and other i s s u e s of l £ m i l l i o n d o l l a r s and over5 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 o v e r .
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 •