Full text of H.16 Capital Market Developments : November 7, 1956

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Not f o r P u b l i c a t i o n DECONTROLLED AFTER SIX MONTHS
H.lU

November 7, 1956

CAPITAL MARKET DEVELOPMENTS
The volume of l a r g e p u b l i c l y o f f e r e d s e c u r i t i e s was mode r a t e during t h e week ending November 2. Two corporate o f f e r i n g s
t o t a l i n g $li3 m i l l i o n , one S t a t e and l o c a l government o f f e r i n g f o r
$7 m i l l i o n and a $35 m i l l i o n Canadian i s s u e were f l o a t e d l a s t week.
The calendar f o r t h i s e l e c t i o n - s h o r t e n e d week i n d i c a t e s a small
volume of underwritten i s s u e s , but includes e x p i r a t i o n of s u b s c r i p t i o n r i g h t s f o r t h e $573 m i l l i o n AT&T common stock i s s u e . Another
corporate issue f o r %k$ m i l l i o n and S t a t e and l o c a l government o f f e r ings amounting to $2ii m i l l i o n a r e scheduled f o r s a l e .
Bond y i e l d s - Bond y i e l d s continued t o move upward l a s t
week. Yields on a l l types of outstanding bonds e s t a b l i s h e d new
highs f o r the y e a r with S t a t e and l o c a l government y i e l d s passing
t h e i r 1953 peaks f o r the f i r s t time.
Stock p r i c e s - The SEC index of 265 common stock p r i c e s
increased 3.0 p o i n t s l a s t week, c l o s i n g a t 278.0 on November 2.
The volume of t r a d i n g picked up, averaging 2 . 1 m i l l i o n shares a
day. Stock p r i c e s increased on Monday, but l o s t . m o s t of t h i s gain
on the day a f t e r e l e c t i o n s . Trading volume increased f u r t h e r ;
a c t i v i t y i n r e c e n t days has been t h e h i g h e s t s i n c e June.
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 i s presented in the a t t a c h e d e x h i b i t s .

Business Finance and C a p i t a l Markets S e c t i o n ,
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 BOND YIELDS
Weekly

Per' cent per annum

1953

1954

u. s,
Corporate
Aaa 1/

1955

long-term 2/

Old s e r i e s

New series

1956

Spread between
State and
U. S. Govt,
l o c a l govt. (old series) and
CorporatelState and
Aaa 3/
Aaa
1local Aaa

(Per cent)

1956 - High
Low

3.1*2
2.99
3.09
2.85
3.17
2.91
3-65
3.07

October 5
October 12
October 19
October 26
November 2

3.58
3.57
3.57
3.61
3.65

1953 - High
- 195k - High
1955 - High

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

3.15
2.78
2.71,
2.UU
2.9U
2.62
3.26
2.80
3.lit
3.16
3.16
3.22
3.26

(6/6)
(12/26)
(1/9)
(8/7)
(8/5)
(1/7)
(11/2)
(2/17)

n.a.

3.03
2.89
3.29
2.92
3.21
3.21
3.22
3.27
3.29

(8/5)
(6/10)
(11/2)
(2/3)

2.73
1.98
2.21
1.90
2.31
2.05
2.7U
2.17
2.61
2.63
2.68
2.72
2.7U

(6/25)
(1/8)
(6/10)
(9/2)
(9/8)
(5/26)
(11/1)
(2/23)

.38
.19
.1*3
.32
• 3l*
.13
.1*1*
.13

.81*
.30
.61
.29
.70
. .51*
.68
•1*5

.a
.la
.1*1
.39
• 39

.53
.53
.1*8
.50
.52

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 in 10-12 years thereafter;, the average
tern to f i r s t c a l l of the bonds included declined from ll* 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 1/1* per cent bond of 1978-833 / Thursday f i g u r e s . 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

LOWER - GRADE BOND YIELDS
Weekly

Per cent per annum

V

!

Corporate
Baa 1 /

Date

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

State and
local govt,
rev. 3/

(Per cent)
1953 - High
Low
1951 - High
Low
1955 - High
Low
1956 - High
Low

3.89
3.50
3.71
3«a
3.63
3.U5
U.20
3.58

October 5
October 12
October 19
October 26
November 2

U.16
18
h-20

k.lk
h.16

(9/18)
(1/2)
(1/8)
(12/31)
(12/30)
(1/1U)
(11/2)
(3/9)

3.79
2.9.6
3-32
2.93
3.26
3.02
3.82
3.20
3.58
3.62
3.71
3.77
3.82

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)
(1/6)
(11/1)
(3/8)

3.27
2.71
3.00
2.72
2.99
2.76
3.71
2.89

(6/26)
(1/2)
(1/1)
(8/13)
(12/30)
(1/7)
(11/2) .
(2/2U) r -

3.U9
3.52
3.56
3.6U
3.71

1/ Weekly average of daily f i g u r e s . Average term of bonds
included i s 25-26 years.
2/ Thursday f i g u r e s . Only general obligation, bonds are
included; average term i s 20 years.
Friday f i g u r e s . Average rating of bonds included i s
between Baa and A; average term is 20 years.
Note.—Highs and lows are f o r individual series 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 .




STOCK MARKET

Bate

Stock price
index 1 /

Trading
Conmon
volume 2j
(millions y i e l d s J /
of shares) (per cent)

Stock market customer credit
Customers1
debit bal- loans t o
ances V
"others" 5 /

Total

(Millions of dollars)

195k - High
Low
1955 - High
Low
1956 - High
Low

167.1
lWt.0
221.lt
156.5
270.7
217.1i
, 295.5
257.U

September
October
October 19
October 26
November 2

278.2
275.7
271;. 8
275.0
" 278.0

1953 - High

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

2.5
0.9
3-7
1.1*
li.6.
1.5
3.1
1.5
2.0
1.8
1.6
1.6
2.1

2,hhS

1,665
l,3Ht
2,388
1,653
2,805
2,517
2,810
2,7UO

780
66U
l,0lt8
7lt6
l,2Ul
1,018
1,267
1,167

lt.2lt
It. 23

3,950

2,782
n.a.

1,16C

n.a.

n.a.

n.a.

5.75
5.15
. 5.33
It. 20
It.22
3.78
lt.2lt
3.86

2,0 55
3, It 36
2,lt05
It,030
3,537
lt,0lt7
3,950

1,177
1,171

n.a.—Not available.
1 / SEC index of 265 common stocks, weekly closing p r i c e s , 1939*1003 converted
t o 19H7-1i9"100 by Federal Reserve. The conversion f a c t o r i s . 123.91.
2 / Averages of daily trading volume on the New York Stock Exchange.
3/Moody's 200 common stocksj end of month f i g u r e s .
jj/ End of month f i g u r e s f o r member firms of the New York Stock Exchange which
cariy margin accounts; excludes balances secured by U. S. Government obligations.
i y Wednesday f i g u r e s 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 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 s e r i e s and may be on d i f f e r e n t dates
for d i f f e r e n t s e r i e s .




n.ih
Corporate and State and Local Government
Security Offerings and Placements
(In millions of d o l l a r s ) .
Corporate

New c a p i t a l

S t a t e and l o c a l
1955

January
February
March
April
May
June
July
August
September
October
November
December
1 s t quarter
2nd quarter
1 s t half
3rd quarter
Three quarters
Lth quarter
Year

e/1,120

e/1,200
1,2*90
1,603
3,093

e/2,670
e/7,533

1,372
2,331*
3,706

_/925
e/%,018

6j%9
Excluding finance companies 2 /

1 s t quarter
2nd quarter
3rd quarter
Uth quarter
Year

1,727
e/2,L70

1,927
1,911
1,792

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 issues excluding o f f e r i n g s of s a l e s and consumer finance
companies.
'

Note.--Details may not add t o t o t a l s due to rounding.

«



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

Corporate

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

State and
l o c a l government

Other 2/

716

805
221
263
95
212
278
395
623
185
592

25
50

1*01

fd

227
192
Wj.
163
157
233
to
l6h
35

37

383

35

50
20

18U

386 .

Large Individual Issues Offered October 1 through November 2
Issuer

Type J /

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

CORPORATE
United A i r c r a f t Corp.
Conv.pfd.stk.
Allegheny Ludlum' S t e e l Corp.
Conv. deb.
Columbia Gas System, Inc.
Deb.
Southern Bell Tel.
& Tel. Co.
Deb.
Pacific. Finance Corp.
Deb.
Texas Eastern Trans. Corp. Pfd. s t k .
Long Island Lighting Co. Conv.pfd. stk.
Georgia P a c i f i c Corp.
Common s t k .
Commonwealth Edison Co.
Pfd. s t k .
Johns-Manville Corp.
Common s t k .
Consolidated Edison Co.
1st & r e f .
mtg. bds.
National S t e e l Corp.
1 s t mtg. bds.
Ohio -Power Company
1st mtg.bds.
Allied Stores Corp.
S.F. deb.




31.8
16.3
25.0

1981
1981

k
h 3A

Loo .
h*70

Baa
A

60.0
15.0
15.0
18.0
15.9
10.0
25.9

1983
1971

It
h 5/8

3.90
U.75

Aaa

1*0.0
55.0
28.0
15.0

1986
1986
1986
1976

hl/h
3 7/8
hl/h
h3/h

U.13
3.90
it. 20
a . 75

Aa
Aa
Aa
A

——

•

H.lk

E-2

Large I n d i v i d u a l Issues Offered October 1 through November 2 (Cont'd)
Issuer

Type 3 /

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

STATE & LOCAL GOVERNMENT
D e t r o i t , Michigan
S t a t e of C a l i f o r n i a
B u f f a l o , New York
S t a t e of South Carolina
San Bernardino Co., Cal.
T e r r i t o r y of Hawaii
Baltimore Co., Md.
Washington Co., Md.
Hagerstown, Md.
C h a r l o t t e , N. C.
S t a t e of Massachusetts
Ft. Pierce, Florida

G.O.
G.O.
G.O.
G.O.
G.O.
Hwy. r e v .
G.O.
G.O.
G.O.
G.O.
G.O.
Elec. &
water rev.

St. Louis School
D i s t r i c t , Missouri.
G.O.
New Jersey Highway Auth..
Rev.
F l i n t , Michigan
G.O.
P h i l a d e l p h i a , Pa.
G.O.
Boston, Massachusetts
G.O.
T e r r i t o r y of Hawaii
G.O.
S t a t e of Maryland
G.O.
Orlando, U t i l i t y
Elec. &
Commission, F l a .
water r e v .
S a l t River P r o j e c t &
A g r i c u l t u r a l Improvement & Pwr. D i s t . , A riz .
G.R.
S t a t e of Ohio
Rev.
Cook Co. High School
G.O.
D i s t . #212, 111.
Purdue U n i v e r s i t y , Ind.
Rev.
D a l l a s , Texas
Airport rev.

12.3
1957-81
35.0
1958-77
11.U
1957-71
15.0
1957-76
6.0
1957-76
12.5 - 1958-86
21.0
1959-96
8.0
1957-81
5.8
1957-81
5.2
1958-95
57.6
1957-96
5.1

1959-88

1958-76
5.5
1988
25.0
1958-86
5,U
58.8
1958-87
5 . 8 " 1957-76
12.0
1959-76
8.7
1959-71

3.09
2.80
2.35
2.64
2.80
3.8U
3.15
2.98
2.99
2.99
2.93

2.20-3.20
2.15-2.85 '
1.90-2.10
2.00-2.65
2.10-2.85
2.70-3.80. /
2.50-3.25^
2.10-3.00
2.10-3.00
2.30-3.W
1.90-2.95

A .
Aa
Aaa
Aa
Aa
A
A
Aa
Aa
A
Aa

It. 36

3.20-ii.20

Baa

2.69
2.00-2.75
U.38
U.53
3.13 . 2.15-3.20
2.60
1.90-2.70
3.63
2.25-3.20
2.10-2.50
2.53
2.60-3.75
3.75

Aa
A
A :
A
Aaa

Aa

7.5

1957-77

< k.09

3.10-U.00

Aa

10.0
25.0

1960-87
1957-72

2.9k
2.90

2.20-3.00
;2.00-3.00

A
Aa

5.0
12.h
6.5

1957-76
1959-96
1957-81

1.00
U.17
h.Sk

Baa
2.75-3.90
n.a.
n.a.
3.00-U.U0 . Baa

35.0

1981

M A

OTHER
Quebec Hydro-Elec. Comm.

Deb.

U.32

. A

n.a.—Not a v a i l a b l e .
2 / Includes corporate and o t h e r 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 and over3
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 / 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 .
3/ 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 gene r a l o b l i g a t i o n ; Rev., revenue bonds; G.R., general o b l i g a t i o n s a d d i t i o n a l l y
secured by f a c i l i t i e s revenues; 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.
.
h/ 1986-96 m a t u r i t i e s not r e o f f e r e d .




•

H.ll*

Exhibit F

Forthcoming Large Public Security Offerings for New Capital
(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

202
215
70
176
123
380
568
198
1*37
2U7
369
315
683

1955 - 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

37

Subsequent t o
date shown
S t a t e and Other 2 /
Corporate
l o c a l govt.
10.2 .
230
85 ~
376
233
1,013
818
1*1*8
567
1,096
1,202
1,009
990

1,650
756
618
917
785
811
832
91*1
690
726
958
1,197
955

,

__

50

37
—

Forthcoming Large O f f e r i n g s , as of November 2
Issuer

Type

Amount
(millions Approximate date
of o f f e r i n g
of dollars)

CORPORATE
American Tel. & Tel. Co.

Common s t k .

572.6

Northspan Uranium Mines, Ltd.
•Public Service E l e c t r i c & Gas Co.
S i n c l a i r Oil Corp.

Gen. mtg. bds.
1st & ref. mtg. bds.
Conv. sub. deb.

170.6

Seaboard Finance Co.
J . P. Stevens & Co.
Michigan Wisconsin Pipe Line Co.
Southern New England Telephone Co.
P a c i f i c Lighting Corp.

S.F. notes
S.F. deb.
1 s t mtg. bds.
Common s t k .
Conv. p f d .

15.0
28.7
25.0
20.1*
20.0

Elec. rev.
G.O.
G.O.
Water rev.
G.O. •

13.5
5.3
5.0
5.0
12.5

1*5.0

5o.o

November £
( r i g h t s expire)
November 8
November 15
December 3
( r i g h t s expire)
Winter
Winter
Winter
Winter
Winter

STATE AND-LOCAL GOVERNMENT
Los Angeles,Calif.
Trenton, New Jersey
San Antonio, Texas
Chicago, 111.
Newark, New Jersey




November
November
November
November
November

8
8
8
13
13

H.llt

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

Type

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

STATE AND LOCAL GOVERNMENT (Cont'd)
Chicago Bd. of Education,. 111.
Cleveland, Ohio
S t a t e of Oregon
^Houston, Texas
Long Beach, C a l i f .
F l o r i d a S t a t e Bd. of Education
S t a t e of Connecticut
Pennsylvania Turnpike Commission
Washington S t a t e T o l l Bridge Auth.
Inter-American Center A u t h . , F l a .
New York S t a t e Thruway Authority
J a c k s o n v i l l e Expressway A u t h o r i t y
F l o r i d a S t a t e Turnpike A u t h o r i t y
Memphis, Tennessee
Oklahoma Turnpike Authority
^

# .

10.0
10.0
5.7
20.0
5.0
9.3
75.0
62.0
227.0
20.0
50.0
U2.0
185.0
135.0
65.0

. G.O.
water r e v .
G.O.
G.O.
G.O.
\ G.O.
Expressway r e v .
Rev.
Rev.
Rev.
G.O.
Rev.
Rev.
Elec. r e v .
Rev.

November
November
November
November
November
November
November
Winter
Winter
Winter
Winter
Winter
Winter
Winter
Winter

lit
lU
lU
lU
20
27

OTHER

None

—

*—Included i n t a b l e f o r f i r s t t i m e .
1 / Includes corporate and o t h e r i s s u e s of $15 million and o v e r j 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 .
Note.—Deletions f o r reasons o t h e r than s a l e of i s s u e : H a r r i s County,
Texas, $6.0 m i l l i o n issue—reduced t o l e s s than $5 m i l l i o n .

1

i
IJ

.

!

#



H.1U

Exhibit G
Yields on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /

Date

1952
1953
1954
1955

average
average
average
average

1956 - January
February
March 8
16
23
30
April U
h
11
\
25
May 9
16
2h
June 8
20
1
July 3
18
25
August 1
30
September 11
13
25
October 10
31

A-rated o f f e r i n g y i e l d s
Aa-rated o f f e r i n g y i e l d s
Amount above
Amount above
Actual
Actual
(per cent) seasoned y i e l d s (per cent) seasoned y i e l d s
(basis p o i n t s )
(basis points)
3.16
3.L6
3.03
3.23

•

13
16
3
9

None
*3.15
3.19

3
5

3.37

.18

3.77 .

hO

3.53
3.52

19
18

3.62
3.70

26
33

a . 07
4.20
it. 17
a.oi

52
62
58
37

4.20

-

.

h 8

3.35
3.78
3.12
- 3.33
None.
3.23

12
26
-3
12
-5 .

3.35

7

3.55
3.57
3.60
3.67

25
23
26 .
29

3.80
3.73

32
2k

3.75
3.82

27
28

Loo

U3

h.hO

63

•

*—Single observation, not an average.
1 / Covers only 30-year f i r s t mortgage bonds, as reported i n Moody's Bond
Survey. Except where i n d i c a t e d , t h e a c t u a l y i e l d f i g u r e and t h e amount above
seasoned y i e l d s a r e averages of o f f e r i n g s during the i n d i c a t e d period and of
t h e d i f f e r e n c e s between t h e s e new o f f e r i n g y i e l d s and y i e l d s on seasoned i s s u e s
of s i m i l a r q u a l i t y f o r t h e same day. Average m a t u r i t y f o r t h e seasoned i s s u e s
v a r i e s from 26 to 28 y e a r s .