Full text of H.16 Capital Market Developments : October 13, 1954

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Not f o r Publication
•
— — DECONTROLLED AFTER SIX MONTHS
' October 13, 195k

H
CAPITAL MARKET DEVELOPMENTS

. Security o f f e r i n g s - Large States and l o c a l government
issues with proceeds of 108 million, d o l l a r s and large corporate
issues amounting t o 37 million were publicly offered f o r new capi t a l during the week ending October 8. This week, 22 million d o l l a r s of large S t a t e and l o c a l issues are scheduled t o be f l o a t e d ;
no l a r g e corporate o f f e r i n g s are l i s t e d .
\
#

-

•

'

v

;
•'
I

....

Refunding programs - Large refunding issues of 7*5 mill i o n d o l l a r s or over which have been f l o a t e d since October 1, 195 k
or are scheduled f o r Offering, aiie l i s t e d on pages 2 and 3* Of the
t o t a l proceeds, 1U6 m i l l i o n d o l l a r s w i l l be used t o refund highi n t e r e s t public u t i l i t y o f f e r i n g s of l a s t y e a r .

Bond y i e l d s - Yields on high-grade municipal bonds i n creased one point during the week ending October 8. Corporate Baa
and U. S. Government long-term bond y i e l d s remained unchanged. Corporate Aaa y i e l d s decreased one p o i n t .
New high in stock p r i c e s - The SEC index of 265 common
stocks rose t o a new high of 199.7 l a s t week. Daily indexes i n d i cated some decrease f o r the f i r s t two days of t h i s week however.
Further d e t a i l s on c a p i t a l market' developments available
from exhibits - More d e t a i l e d information concerning recerit> c a p i t a l
market developments w i l l be found i n the following exhibit#which
are attached hereto:
A - Bond Yields
B - Stock Market
C - Corporate and S t a t e and Local
Government Security Offerings
and Placements
D - Large Public Security Issues
f o r New Capital (other than
U. S . Treasury)
.
E - Forthcoming Large Public Security
Offerings for New Capital (other
than U. S. Treasury)
F - Yields on New and Outstanding
'Public U t i l i t y Bonds, r a t e d Aa
and A

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.



"

•

Corporate Refunding Issues, Offered or Proposed 2 /
Type

Issuer

CouAmt.
(mill, Term pqn
rate
doll.)

Con. Ed. of N. Y.
new 1st & ref mtg bds 20.0
to refund 1st mtg bds 3/ 28.0
. to refund Gen mtg bds 3/ 2^.0
Gulf State Utilities - new 1st mtg bds 4/
t o refund 1st mtg b d s '
to refund 1st mtg bds

24.0
10.0
10.0

198k
1963 3 1/2
1967 3 1/2

Date
expected
or offered
Indefinite 2/
August 193"o
July 1937

Current
call
price
102.00
103.50

Indefinite 2f
1981 3 3/8 November 1951 105.05
1983 3 3/8 November 1953 104.85
li.Wi
It.50
I1.I1O

Indefinite 2/
September.1944
December 1947
October 1949

3 lA
2.6

Anncd. Oct. 5
Various

Gulf State Utilities - new
to refund
to refund
to refund

Pfd stock
Pfd Stock
*Pfd stock
-M-Pfd stock

16.0
5.0
5-0
6.0

Electric Auto-Lite — new
to refund

*Notes 4/
•a-Prom note

35:0
20.3

1

Wisconsin Power&Lt. - new 1st mtg bds 4/
to refund 1st mtg bds

18.0
8.0

1981* 3 1 A
1983 4

Metropolitan Edison - new 1st mtg bds 4/
to refund 1st mtg bds

15.0
.8.0

1981
1983.

October 6
May 1953

104.20

' Wis. Public Service - new 1st mtg bds 4/
to refund 1st mtg bds

12.5 1984
8.0 1983 4 1/8

October.14
May 1953

105.01

New York Telephone - new ref & mtg bds 4/
to refund ref'& mtg bds

1989
1984 3 7/8

October 19
June 1953

105.45

75.0
35.0

La. Power & Lt.

new 1st mtg bds 4/
to refund 1st mtg bds

18.0 1984
12.0 1983 4

F l a . Power & Lt.

new 1st mtg bds 4/
t o refund 1st mtg bds

25.0 1984
15.0 1983 3 7/8
1984
1972

s/

October 6
September 1953 105.47

October 20
September 1953 100.74
October 27
April 1953

y

105.32

* l s t mtg bds 4/
Puget Sound Bra*. & Lt. — new
t o refund 1st mtg bds

25.0
20.6

• bonds
Chesapeake & Ohio
new
•
t o refund ref & imp bds
1st
gold 7/
to refund

November 9
40.0
37.9 1973 3 7/8 November 1948 103 1/8
August 1875
2-.lt 1955 4
V

p a c i f i c Tel. & Tel. - new
t o refund




Deb.
Deb.

50.0
5o.o

1989
1984 4

April 1943

106.00

November 16
September 1953 105.70

1
Corporate Refunding Issues, Offered or Proposed
Type

Issuer
Kansas City Southern - new
to refund
t o refund

1st mtg bds
1st mtg bds
1st mtg bds

n.a.
Gulf, Mobile & Ohio - new
t o refund 1st ref mtg
to refund 1st ref mtg
to refund Coll t r u s t
to refund 1st mtg bds 8/
, I l l i n o i s Central
new
to refund

;

SF Deb
... Pfd

CouAmt.
(mill. Term pon
rate
doll.)
50.0
37.9
13.2

1981
1975 k
1968 3 5/9

25.0
8.U
8.5
6.2
6.1

n.a.
1975
1969
1968
1983

18.0
18.6

1979

It
3 3A
3 3A
5

(Cont'd)
Current
call
price

Date
expected
or offered

November
October 19U5 103.00
102 3/8
June 19^8
n.a.
February 1939
September 19bk
June 1'9U8
July 1932

103 # '
101 1/h
102 3/it
105

December
Various




1

1

. 1/ Includes issues oi 7.5 million do]Liars and over since
2/ Issue was delayed i n d e f i n i t e l y due to market conditions,
3/ Bonds of New York Steam and Westchester Lighting.
%/ Includes some funds for new c a p i t a l .
5/ Proceeds from notes maturing 1955-1969 w i l l be used to refund s e r i a l notes
which""have been privately placed at various times not subject to c a l l .
6/ Private placement announced on September 28; to refund 1/k f i r s t mortgage bonds on October 29, 19$k»
7/ Bonds of Columbus and Toledo Railroad, not subject to c a l l .
8/ Bonds of New Orleans Great Northern Railway Company.
•«—Private placement.
n.a.—Not available.

\

EXHIBIT

A

BOND YIELDS
PER

WEEKLY

CENT

PER

ANNUM

4
CORPORATE

Baa

RPORATE

GOVERNMENT

/V
»/

w'

V

I H I G H - G R A D E M U N I C I P A L1
| STANDARD AND POOR'S CORP.
I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
M

J

S

1951

J

J

S

I I

I I
M

Corporate 1/

U. S. Govt,
long-term 2/

-u\!/\!AJ
J

S

1954

195 3

1952

Spread between
Corporate Aaa
and U. S. Govt.

Highgrade
Lfun. V

(Per cent-per annum)
1951 - High
1952 - High
1953 - High
Low

195k - High
September 10
September 17
September 2h
October 1
October 8
'

2X5
3.03

V&

2.99
3.09
2.85
2.89
2.89

3.63
3.16
3.63
3.1:8
3.89
3.50
3.7U
3.U6

Si3.L8?

3.U8
3.1:8

2.7b
2.38
2.79
.2.56
3.15
2.71:
2.71: •

2.hh

2.51

1

.36
•25
.37
.19
.38
.19
.13

2.26
1.59
2.1:3
2.00
3.U:
2.1:3
2.56

I

2.31

.38
•37

!:ll

2..3U

1/ Moody's Investors Service; weekly average of'daily f i b r e s .
? / Federal Reserve; weekly average of daily figures.
3/ Standard and Poor's Corporation; Wednesday f i f u r e .

Note.—Highs and lows

for d i f f e r e n t series.


are for individual series and may be on different dates

STOCK MARKET

I l i o n s of Sh
VOLUMEr

--

Date

Bank loans
t o "others";
Trading Common stock Customers'
for purchases
yields 3/
volume 2/
of securbalances h /
(Billions
(per
cent
(m%9=(oo)
(millions
i t i e s 5/
of shares) per annum)
(millions .
of d o l l a r s )
of dollars)
'
Stock price

1951 - High
1952 - High
Low
1953 - High
195L - High
Low
AUgUSti
September
September 2h
October 1
October, 8

158.6
UiO.3 ~J
165.3
151.7
167.1
litli.O
199.7
156:5
:
191.ii .
19ti.O
199.3
198.3
199.7

3-It
1.1
2.0
0.9
2.5 .
0.9
3.2
l.U
2.6
2.0
2.2
1.9
2.2

6.55
5.55
5.77
5.13
5.75
5.15
5.33
h.U6
U .75
h.h6

1,297
1,219
1,328
1,241
1,665
1,31b
-1,967
1,653
1,967

3li0
2#
295
250
327
• 252
li37
328 .
Iil8
tei
. 125
U30
^33
.

1/ Qrn -trtiev
0
ioio-inn.
I/e VAOUI ir
191i7-ti9-100 by Federal Reserve.
"
feekly averages of daily trading volume on New York Stock Exchange.
Moody's 200 cannon stocks; end of month f i g u r e s .
End of nonth figures f o r merber firms of Hew York Stock Exchange; excludes,
balance^ secured by U. S. Government s e c u r i t i e s . .
5/ Wednesday figures for weekly reporting member banks in New York and Chicago;
excludes loans f o r purchase of U. S. Government s e c u r i t i e s . . On March li,"1953, the
l a s t date on .which figures for a l l reporting banks were available, New York .'and
Chicago accounted f o r
per cent of such loans. . In the past New York and Chicago
loans have fluctuated riore than t o t a l loans.
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,
for different series.
'

r




.

.

Exhibit C
Corporate and State and Local Government Security Offerings arid Placements
(In millions of dollars)
New capital

1954

Corporate
1 1953

January
February
March

544
4 39
660

623
623
666

615
413
951

396
mi
565

388
#9
^ 126

April
May
June

186
652
859

779
675
1,123

870
990
769

734
718
853

328
618
434

e/725

183
325
753:

1,237
291
390

279
e/250
S/%5

519
259
175

243
199
473

#9
310
851

e/550

452
• 408 .
774

302
183
395

July
August
September
October
November
December
1st quarter
2nd quarter
3rd quarter.
4th quarter
Year

e/hOO

,e/72f
• e/800

577
129 2/
1^38 y

• 1,613
1,998
e/l,050

1,912
2,578
1,561,,
8,495 ^

1

1952

State and local
1954
1 1953
1

1,979
1,372
2,629 Z
2,335
1,918 - e/1,155
2,191 v
8,716 y

1A73
' 1,410
1,253
1,635
5,471

1952
357
300
146
.

454
394
625

802
1,474
916
880 .
4,072

Excluding finance companies ^
1st quarter
2nd quarter
3rd quarter
4th quarter
Year-

1,562
1,931
e/l,785

1,669
1,991
• 1,223
2,344
7,227

1,961
2,521
1,877
* 2,091
8,152

issue.
2/ Includes 603 million dollar AT&T debenture issue.
3/ Total new capital issues excluding offerings of sales and personal finance •
companies.
e/—Estimated
Note.—Details may not add to t o t a l s due t o rounding.




Exhibit D
Large Public Security Issues for New Capital
(other than U. S. Treasury) 3/
Proceeds of Large Issues Offered
.(Millions of dollars)
Month

Corporate.

State and
local government

375
216
96
9%
289
103
160
169
321 .
350
336
. 75
335

322
323
25V
571
16k
213
378
557 .
557
603
92
86
155

19^3 - September
October
November
December
195U - January
February
March
April
May
June
July
August
September

.

Other 2/
:

32: / /
: 51
19 ;
50 '
119
50

Large Individual Issues Offered October 1 through 8
Issuer

Type 3/

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

CORPORATE
Public Service Co. of
Colorado
Indiana and Michigan
Electric Co.

1st mtg. bds.

20.0

19%

3 1/8

3.03

Aa

1st mtg.bds.

16.5

198b.

3 1/8

3.01

Aa •

Rev,

19.5

198 9

1.50

-

Rev.
Rev.
Rev.
Rev.

65.0
12.0
5.0
6.0

. 1991
1961-81*
1959-78 •
1959-83

3.59
2 .U5
2.13
2.51

3.U6 .
1.35-2.55 Aa
1.20-2 .kO Aa
1.25-2.63 x A

STATE AND LOCAL GOVERNMENT
Southeast Alabama
Gas D i s t r i c t
Mississippi River Bridge
Authority, Louisiana
Kansas City, Missouri
; Cleveland, Ohio
Cleveland, Ohio
OTHER
None




1.50

D-2
1/ Includes corporate and other security offerings of 1$ million doll a r s and over; State and local government security offerings of 5 million
and over.
2/ Includes foreign government and International Bank for 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. denotes
general obligation; Rev., revenue bonds; G.R., general obligations addit i o n a l l y secured by f a c i l i t i e s revenues; and, L.L., l i m i t e d - l i a b i l i t y o b l i gations secured by pledge of designated revenues.




Exhibit E
Forthcoming Large Public Security Offerings for New Capital
(other than U. S. Treasury) %/
Expected Proceeds from Forthcoming Large Issues
Date.of
computation
1953 - Sept. 29
Oct. 30
Nov. 30
Dec. 31
19$h - Jan. 29
Feb. 26
Mar. 31
Apr. 30
May 28
June 30
July 30
Aug. 31
Sept. 30

Subsequent to
During month following
date shown
date shown
Corporate
\ Other g/ Corporate ,
180
73
9W

232

118
108

2 Oh

323
336
100

33b
3b3

273
283
237
179
161
h9Q

III

1,016
*73*
123
50
27

596

1,129
l,6l6

,669

k79
690
5#
617
526

86

532
303
608

300
383

m

1,182
978
1,752:
1,238
1,660
1,916
2,789
2,322
1,971
1,52k
1,553
1,876
2,158

138
50
27

Forthcoming Large" Offerings, as of October 8
Type

Amount
Approximate date
(millions
of offering
of dollars)

CORPORATE
. Texas Power and Light Co.
New York Telephone Co.
National City Bank of New York
Continental Oil
•HCortland Equipment Lessors, Inc.
Laclede Gas
Kentucky U t i l i t i e s
Kansas City Power and Light
Long Island Lighting
Public Service of Oklahoma

1st mtg. bonds
Ref. mtg. bonds
Common stock
Deb. '
Deb.
1st mtg. bonds
1st mtg. bonds
1st mtg. bonds
1st mtg. bonds
1st mtg. bonds

15.0

1*0.0

131.3

100.0
75.0
20.0
15.0
16.0
20.0
20.0

October 18
October 19
October 22
October 27
October 27
October
November
195k

195k
January

STATE AND LOCAL GOVERNMENT
*State of Oklahoma Planning and
Resources Board
Georgia State Toll Bridge Authority
Alexandria, Virginia
Kentucky, State Property & Bldg. Comm.
^Newark, New Jersey




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

7.2
6.7

8.2

7.U

10.0

October
October
October
October
October

11
13
lit
19
19

- E-2
Forthcoming Large Offerings, as of October 8 (Cont'd)
Type

Amount
date
(millions Approximate
of offering
of dollars)

STATE AND LOCAL GOVERNMENT (Cont'd)
Milwaukee, Wisconsin
Greater Baton Rouge Port Comm., La.
Colorado Springs, Colorado
- Lansing, Michigan
State- of Massachusetts
Wichita, Kansas .
Philadelphia, Pennsylvania
Florida State Board of Education
Chicago, I l l i n o i s
Department of Highways, Virginia
Dallas, Texas
Indiana Toll Road Commission
Oklahoma Turnpike Authority
New Jersey Highway Authority
Dade County Port Authority, Fla.
Allegheny County, Pennsylvania
Sanitary Authority
California Toll Bridge Authority
Maryland State Roads Commission
. Warren, Ohio
Springfield, I l l i n o i s
Davenport, Iowa
New York Thruway
Michigan Turnpike Authority
New York State Power Authority
Metropolitan Water D i s t . of So. Cal.
Los Angeles School D i s t s . , Cal.
Los Angeles Dept. of Water & Power
^Florida State Turnpike Authority
Jersey .City Sewerage Auth., N. J .
North Carolina Turnpike Authority

G.O. '
G.R.
Rev.

G.O.
Rev.

Rev.
Rev.
Rev.
Rev.

Rev.
Rev.
Rev.
G.O.
Rev.
Rev.
Rev.
n.a.

5.0
12.5
10.0
"6=0
59.8
6.9
2^.8
16.5
12.5
100.0
10-15.0
178.0
175.0
30-50.0
21.0
85.0
235.0
70.0.
5.0
9.0
5.0
50.0
186.0
315.0
8-10.0
20.0
15-20.0
89.0
16.0
200.0

October 19
October 20
October 20
October 25
October 26
October 26
October 26
October 26
October 27
October 27
November 29
December
195k
' 195k
195k
• 195k
195k
195k
195k
195k
195k
195k
Spring
1955
1955
1955
-1955
1955
1955
' 1955

OTHER

y Includes corporate and other issues of 15 million dollars and over;
State and local government issues of 5 million and over.
2 / Includes foreign government and International Bank for Reconstruction
and Development issues.
„
n.a.—Not available.
*—Included in table for f i r s t time.




Exhibit F
Yields on Hew and Outstanding
Public U t i l i t y Bonds, Rated Aa and A 1/
Aa-rated o f f e r i n g yields . A-rated o f f e r i n g y i e l d s
Amount above
- Amount above
Actual
Actual
(per cent) seasoned yields (per cent) seasoned y i e l d s
(basis points)
(basis points)

Date
1952 average
1953 average

3.18

14

3.37

12

3.78

22

3.a

16

19$3 - January
February
March
April
May
June
July
August
September
October
November
December

3.25
3.39
3.U0
3.48
3.79
None
*3.68
None
None
3.34
*3.28
*3.30

11
19
17
16
28

1924 - January
February
March
April
May
June
July

3.20
3.02
*2.93
2.99
3.00
*3.00'
None

6
0
0
.
5
4
. l

3.Q0
3.02
3.01
3.03
3.ok
3.0k

0
" 6
2
4
4
4

August 18
22
September 23
29
30
October 2
6
6

.

•

2S?

6
7
. 2

—

None
None
3.29
3.88
3.99
4.10
*4.00 •
None
3.92
• 3.26
. 3.12
• 3.21
3.34
*3.20
3.02
3.10
3.14
3.14
*3.13

23
41
37
39
30
29
7
2
10

:
:

2
-1
-10
-6
-1
-2
-1

3.06
3.12

-6
3

3.10
3.12

-3
-1

'

• •;

,

Survey. Except where indicated, the actual y i e l d f i g u r e and the amount above
seasoned y i e l d s are averages of offerings during the indicated period and of
the differences between these new o f f e r i n g yields and yields on seasoned issues
of similar quality f o r the same day.
'
•m—Single observation, not an average.