Full text of H.16 Capital Market Developments : October 13, 1958

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Not f o r P u b l i c a t i o n DicoNiRoi^) AFTER s i x MONrns
H.llt

October 13, 1958.
CAPITAL MARKET DEVELOPMENTS

The volume of new p u b l i c s e c u r i t y f i n a n c i n g continues t o be
small. During the week ending October 10, l a r g e corporate i s s u e s t o t a l ing i&Ui m i l l i o n and S t a t e and l o c a l government.issues f o r $36 m i l l i o n
were s o l d . The calendar f o r t h i s week includes only one l a r g e corporate
i s s u e f o r $15 m i l l i o n and two S t a t e and l o c a l government i s s u e s with
t o t a l proceeds of $31 m i l l i o n .
Bond y i e l d s - Changes i n y i e l d s on outstanding bonds were
mixed l a s t week. Yields oh U. S. Government o b l i g a t i o n s declined sharply
(11 b a s i s points) l a s t week. Yields on high-grade corporate and S t a t e
and l o c a l government bonds remained s t a b l e , while t h o s e f o r Baa-rated
corporate and municipal bonds increased s l i g h t l y .
A new Aa-rated, f i r s t mortgage p u b l i c u t i l i t y i s s u e was
o f f e r e d t o the p u b l i c l a s t week a t a y i e l d of It.57 per c e n t . This- was
the f i r s t o f f e r i n g of t h i s type since l a t e J u l y , when the y i e l d was Ii7
b a s i s p o i n t s lower.
Stock p r i c e s - Common stock p r i c e s increased sharply l a s t
week. Standard and Poor's index of 500 stocks increased 2 p e r c e n t ,
c l o s i n g a t 51.39 on October 10. The volume of t r a d i n g continues to be
very heavy, again averaging 3.8 million shares a day.
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
i s presented in t h e attached e x h i b i t s .

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.




HIGH-GRADE BOND YIELDS

LOWER - GRADE BOND YIELDS




H.lii

Exhibit b
Tables Tor E x h i b i t A
High-grade Bond Yieldo

Date

Corporate
Aaa 1/

U. S. Govt,
long-term 2 /

3.42
2.05
4.l4
it. 13
3.55

3.19
2.45
3.76
3.83
3.07

Spread between
U. S. Govt, and
Corporate S t a t e and
Aaa
l o c a l Aaa

S t a t u and
local govt.
Aaa y

(Per cent)
1953
1951*
1957
1958

-

High
Low
High
High
Low

Sept. 12
Sept. 19
S e p t . 26
Oct. 3
Oct. 10 2/

(6/19)
(1/23)
(9/27)
(10/10)
(5/2)

4.07
4.10
4.11
1.13
4.13

(6/5).
(8/6)
(10/16)
(10/3)
(4/25)

2.73 ( 6 / 2 5 )
1.90 ( 9 / 2 )
3.45 ( 8 / 2 9 )
3.31(9/11)
2.64 ( 5 / 1 )
3.31
- 3.28
3.24
3.25
3.25

3.75
3.76
3.74
3.83
3.72

.38
.30
.60
.51
.22

.83
.30
.47
.62
.34

.32
.34
• 37
.30
.41

.44
.48
.50
.58
.47

Lower-grade Bond Yields

Date

Corporate
tiaa 1 /

S t a t e and
l o c a l govt.
Ha a y

Spread between
Aaa and Baa
S t a t e and
Corporate
l o c a l govt.

(Per c e n t )
1953
1554
1957
1958

- High
—.Low
- High
- High
Low

Sept. 12
Sent. 19
Sept. 26
Oct. 3
Oct. 10 g /

3.89
3.44
5.10
4.96
4.51
4.86
4.88
4.90
4.92
4.94

(9/18)
(12/31)
(11/29)
(1/3)
(7/11)

3.79 (6/25)
2.93 ( 8 / 5 )
4 . 5 1 (8/29)
4.34 (9/11)
3.64(5/1)
4.34
4.32
4.29
4.2°
4.10

.69
.52
1.27
1.28
.77

1.21
.96
1.21
1.11
.98

.79
.78
.79
.79
.81

1.03
1.04
1.05
i.o4
1.05

2 / Preliminary.
1 / Weekly average of d a i l y fip-ures. Average term of bonds included i s 25-26 y e a r s .
2 / Weekly avera.ro of d a i l y f i g u r e s . The s e r i e s i n c l u d e s bonds due or c a l l a b l e i n
10 y e a r s or more.
2 / Thursday f i g u r e s . Only g e n e r a l o b l i g a t i o n s bonds a r e i n c l u d e d ; average term
i s 20 y e a 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 be on d i f f e r e n t d a t e s f o r
different series.




STOCK MARKET




Exhibit D
Table f o r E x h i b i t C
Stock Market

Date

Stock p r i c e
index 1 /

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

Stock market customer credit
Bank
Customers'
T o t a l d e b i t b a l - loans to
ances 1*/ "others" 5 /
( M i l l i o n s of d o l l a r s )

1953 - High
Low
1951* - High
Xow
1955 - High
Low
1956 - High
Low
1957 - High
Low
1958 - High
Low

26.51* (1/2)
22.95 ( 9 / 1 8 )
35.98 (12/31)
21.93
2*5.89 ( 1 2 / 9 )
35.28
1*3.22 (1/20)
1*9.08 ( 7 / 1 2 )
39.1*8 (12/20)
51.39 (10/10)
10.37 (1/10)

August
September
S e p t . 26
Oct. 3
Oct. 10 p /

1*7.70
1*8.85
1*9.66
50.37
51.39

1*9.61*

1.5
3.1
1.5
1*.2
1.1*
3.8
1.7

5.38
6.25
1*.32
5.82
1*. 08
1*.1*1
3.82
l*.3i*
3.91
1*.72
3.%
1*.58

2,1*55
2,0 55
3,1*36
2,1*05
1*,030
3,537
l*,0l*7
3,911*
1*,031
3,576
1*,252
3,551*

3.0
3.h
3.7
3.8
3.8

3.78
3.69
3.63
3.57
3.50

1*,202

2.5
0.9
3.7
1.1*

1*.6

1,665
1,311*
2,388
1,653
2,805
2,517
2,823
2,71*0

2,887
2,1*82
3,021
2,1*87
3,016
n.a.
n.a.

780
661*
1,01*8
71*6

1,21*1
1,018
1,267
1,155 •
1,163
1,051*
1,317
1,051

1,186
1,199
r/1,199

1,176
n.a.

n.a.—Not available.
jo/ P r e l i m i n a i y .
^/Revised.
1 / Standard and P o o r ' s composite index of 500 common s t o c k s , weekly c l o s i n g
p r i c e s , 19l*l-l*3"10. Monthly d a t a a r e averages of d a i l y f i g u r e s r a t h e r than of
F r i d a y s ' only. Highs and lows a r e f o r F r i d a y ' s data o n l y .
2 / Averages of d a i l y t r a d i n g volume on t h e Now York Stock Exchange.
2 / Standard and P o o r ' s composite stock y i e l d based on Wednesday d a t a conv e r t e d t o weekly c l o s i n g p r i c e s by F e d e r a l Reserve. Yields shown a r e f o r d a t e s
on which p r i c e index reached i t s high o r low,
l j / 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 n y margin a c c o u n t s ; excludes balances secured by U. S. Government o b l i g a t i o n s .
j>/ Wednesday f i g u r e s f o r weekly r e p o r t i n g member banks. Excludes l o a n s f o r
purchasing or c a r r y i n g U. S. Government s e c u r i t i e s a t banks i n New York and
Chicago. Weekly r e p o r t i n g banks account f o r about 70 p e r c e n t of l o a n s t o o t h e r s .
For f u r t h e r d e t a i l see B u l l e t i n .
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 be on d i f f e r e n t d a t e s
for different series. '




Exhibit E

H.1U

Long-term Corporate and State and Local Government
Security O f f e r i n g s and Placements
( I n m i l l i o n s of d o l l a r s )

1958

New c a p i t a l
Corporate 1 /
S t a t e and l o c a l 2 /
1
1956
1 1956
1958
1957
1
1957

January
February
March

i , | y

April
May
June

l,l4l
600
881
2/1,101
e/500
e/1,100
e/550

1,090
789
1,076

1,08^
1,088

3,445
3,149
2,899
2,954
6,591

JulyAugust
September
October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1st half
Three q u a r t e r s
Year

3,135
2,622
e/2,701
5,757
e/8,U58

1,060
1,065
1,320

573
712
817

812
953
511

742
572
506

404
696
390

1,453

818
1,146
841

i n
551

765
546
393

378
490
735

1,003
92k
973

1,063
654
- 838

803
403
2/645

529
584
431

408
206
357

e/650

698
633
698

639
347
409

2,102
2,805
2,556
2,922

2,276
2,2.44
^1,851

1,820
1,70k
1,544
2,029

1,490
1,603
971
1,395

4,907
' 7,463
10.384

4,520
2/6,371

3,524
5,069
7,099

3,093
4,064
5,459

%

12,447

.

.

Excluding finance companies 5/
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

2,894
2,583
e/2,651

Year

3,237
2,889
2,582
2,810

1,647
2,541
2,246
2,826

11,518

9,260

e / Estimated.
^ Preliminary7
E/
1 / S e c u r i t i e s and Exchange Commission estimates of net proceeds.
2 / Data through June 1956 a r e Bond Buyer data c l a s s i f i e d as new c a p i t a l by
Federal Reserve; l a t e r data a r e from the Investment Bankers Association of America
and a r e somewhat more complete as t o coverage than the e a r l i e r data, - -.particularly
f o r Federal Government loans.
3 / Includes #718.3 m i l l i o n AT&T convertible debenture i s s u e .
4 / Includes #571.5 million AT&T common stock i s s u e .
1 / 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 s a l e s and consumer finance
companies.




H.Ik

Exhioit F
Other Security Offerings 1 /
( I n millions of d o l l a r s )
Long-term
Foreign government 2/
Federal agency 3/
195b
1957
1 1956
195b
1 1957
1
72

__

523

125

60

196
53

8k
k9
30

April
May
June

139
198
120

123
k8
k2

9

28
7
30

—

215

k
60
1

kk
5
. 21

100

507

300

572

July '
August
September
October
November
December
Year

37
8
50 '

—

95

—

2
39

161

233
k6 0
273

3#
k55
lk7

April
May
June

357
35k
26k

205
337
153

289
S/h23

July
August
September
October
November
December
Year
~

60

—

109

—

Short-term
State and l o c a l government U/
January
February
March

1956

1,163
251

January
February
March

169

Federal ap;ency 3/

196 .
357
2k9

371
208
lkk

6#
k30
505

380
220
283

125
252
176

209
161
329

336
k69
501

323
31k .
260

272
272
252

195
207
179

601
206

22k
370
512

303
9k
159

29k
328
lk8

1,238
255
116

k07
222
128

3,27k

2,706

5,5k3

3,k57

.

.

-

222
k25
273

e / Estimated.
jd/ Preliminary.
1 / Data presented i n t h i s exhibit d i f f e r from those In Exhibit E in that refunding i s s u e s , as well as new c a p i t a l i s s u e s , are included. Long-term s e c u r i t i e s a r e defined as those maturing in more than one year.
2 / Includes s e c u r i t i e s offered in the United States by f o r e i g n governments and
t h e i r subdivisions and by i n t e r n a t i o n a l organizations. Source: Se c u ri t i es and Exchange Commission.
2 J Issues not guaranteed by the U. S. Government. Source: long-term, S e c u r i t i e s
and Exchange Commission; short-term, Federal Reserve.
h / Principally tax and bond anticipation notes, warrants or c e r t i f i c a t e s and Public
Housing Authority notes. Xn some instances PHA notes included may have a somewhat
longer
term than one year. Source: Bond Buyer.




H.lli

Exhibit G
Large Long-term Public Security I s s u e s f o r New Capital
(Other than U. S. Treasury) \ J
Proceeds of Large Issues Offered
(Millions of -dollars)

Corporate

Month

1957 - August
September
October
November
December
1958 - JanuaryFebruary
March
April
May

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

266
133
393
• 3UU
koh
I4IO
553
182
300
#5
195
275
109
288

526 \
537
51 h
120
399
318
605
1,093
725
3# .
281
-771
209
825

July
August
September

Other 2/

2 hi
l$h
1,357
266
653
161*
86
ill
18

Large Individual Issues Offered October 1 through 10
Issuer

American Cement Corp.
Public Service Co. of Ind.

Type 3/

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

S.J?', deb.
Ffd. s t k .

20.0
2h.3

G.O.
liev. -Ut.

23.7
12.0

Rating

5.16

1978

STATE AND LOCAL GOVERNMENT
Boston, Massachusetts
Venice, I l l i n o i s
None

OTHER




1959-78
1988

3.80
n.a.

2.20-3.85
5.00

A
—

H.lli

G-2

n.a.—Not a v a i l a b l e .
1 / 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 over;
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 $10 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 and non-guaranteed i s s u e s by Federal agencies.
2 / 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
general o b l i g a t i o n s ; Rev.-Ut., revenue o b l i g a t i o n s secured only by income from
public u t i l i t i e s ; Eev.-Q«Ut., revenue bondis secured only by revenue of qua s i u t i l i t i e s 5 Rev.-S.T., revenue bonds secured by revenue from s p e c i f i c taxes only;
Rev.-Rent., revenue bonds secured s o l e l y by l e a s e payments.




n.ii*
Forthcoming Large Long-term Public Security Offerings l o r New Capital
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues
During i.ionth following
date shown
S t a t e and Other 2/
Corporate
l o c a l govt.

Date of
computation
1957 - Aug. 30
Sept. 30
Oct. 31
Nov. 29
Dec. 311958 - Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 2-9
June 30
July 31
Aug. 29
Sept. 30

578
576
-1*58 383
378
1*98
1,123
555
3#
266
768
161
785
113

183
" 33U
339
363
31*5
370
13U
#8
193
177
225
55 .
2lil
295

Subsequent t o
date shown
S t ate and Other 2/
Corporate
l o c a l govt.

30
30
18.
150
110
150
36

—

8U5
61*7
815
1,193
1,161
1,378
1,208
670
561
1*61*
1,01*8
381
91U
216

379
551
5U3
558
561*
1*87
31*1
330
1*93
208
2#
125
1*35
521*

30
15
1*5
63
165
110
150
36

—

Forthcoming Large O f f e r i n g s , as of October 10
Issuer

Type

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

• CORPORATE
Idaho Power Co.
Peoples Gas Light and Coke Co.

1 s t mt.g. bdc.
Cap. s t k .

Cincinnati-Suburban Bell T e l . Co.
^Florida Power &. Light Co.
^ I n t e r n a t i o n a l Harvester Credit Corp.
tfGlidden Co.
Pupet Sound Power 4 Light Co.
J. I . Case Co.
Columbia Gas System, Inc.
Indiana & Michigan Hilectric Co.
Consumers Power Co.
Montana Power Co.
Commerce Oil Refining Corp.
Martin Co.

Deb.
Common s t k .
Deb.
S.F. deb.
Deb.
Conv. deb.
Deb.
1 1 s t nitg. bds.
| - Pfd. s t k .
>.b

1 s t rntg-. b d s .

bds. 4 common
S.F. deb.

15.0
18.3
25.0
20.0
50.0
30.0
15.0
• 20.0
25.0
20.0
15.0
20.0
1*5.0
25.0

]

STATE; AND LOCAL OOVKRMMKNT

Metro. Wtr-. D i s t . of So. California
State of Si'uth Carolina




Oct. 15
Oct. 20
( r i g h t s expire)
Oct. 22
Oct. 29
Oct. 30
Oct. 30
Oct. 30
Oct. 30
(right.s expire)
Nov. 6
Nov. 7
1958
1958
1958
1958

Rev.-lit.

G.O.

18.0
13.0

Oct. l h
Oct. 15

ti.llt

H-2
Forthcoming Large O f f e r i n g s , as of October 10 (Cont'd)
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)
*Cook County, 111.
Oakland, C a l i f o r n i a
City and Co. of San F r a n c i s c o , C a l i f
Denver, Colorado
Los Angelas Dept. of Wtr. Pwr., Calif.
*St. Louis, Mo.
New York Sta te Power Auth.
F l o r i d a S t a t e Board of Education
Detroit-Metro. Expressway
Chesapeake Bay Ferry Comm.
S t a t e of C a l i f o r n i a

Rev.
G.O.
G.O.
Rev.-Ut.
Rev.-Ut.
G.O.
Rev.-Ut.
Rev.
Rev.-Ut.
Rev.-Ut.
G.O.

25.0
10.0
26.U
12.8
10.0
10.8
200.0
12.5
35.0
lUt.O

50.0

Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Nov.
Nov.
Dec.

Bds.
Bds.
Deb.

25.0
16.7
28.0

Oct. 2k
Oct.
Oct.

21
22
27
29
29
29
15
3

OTHER
-^Commonwealth of A u s t r a l i a
-^-Republic of Panama
-^Montreal, Canada

*—Included i n t a b l e f o r f i r s t time.
1 / Includes corporate and other i s s u e s of $15 million and over; S t a t e and
l o c a l government i s s u e s of #10 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 and non-guaranteed i s s u e s by Federal agencies.
Note.—Deletions f o r reasons o t h e r than sale of i s s u e : None.




H.lU

Exhibit I
Y i e l d s on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /

Date
1952 - 1957
High
.
Low

5.00(8/11/57)
2.93(3/31/514)

1958 - January
February
March h

6

12
19
21
25
April 1
2
17
23
29
May 7
13
15
16
20
21
22
28
June 10
17
25
July 2
9
;

'fering yields
Aa-ratcd o f f e r i n g y i e l d s
Amount above
Amount above
Actual
seasoned y i e l d s
seasoned y i e l d s
Actual
(per cent) (basis points) (per cent) (basis points)

" 3 T
Oct. 7

87
-3

*3.60
3.892/

-8
22

ii.15
Loo
U.00

UU
5o
26
26

U.05
3.98
U.00

31
23
25

L.22

3.75
3.90
3.85
3.85

16
16

3.85

17

3.95

3

a . 00

25

3.82

. 4,57_

!

5.50(11/7/57)
3.00(3/17/51)
3.96^/
U.07
li.25

123
-15
3
9
6

U.07

-7

3.98

5

I4.OU
U.00

11
3

1.07
U.35

h
32

h.00
3.95

-1
-6

3.98^/

1

1.352/

31

*•—Single o b s e r v a t i o n , n o t an average.
3 / Covers only 30-year f i r s t mortgage bonds, as r e p o r t e d i n Moody1a 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 d u r i n g t h e i n d i c a t e d p e r i o d and o f 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 o f
s i m i l a r q u a l i t y f o r t h e same d a y . 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 t o 28 y e a r s .
2 / Provides f o r a 5 - y e a r p e r i o d d u r i n g which i s s u e may n o t be c a l l e d f o r
r e f u n d i n g a t a lower coupon r a t e . Monthly averages so marked i n c l u d e one o r m o r e
i s s u e s w i t h such a p r o v i s i o n . Other I s s u e s have no such p r o v i s i o n .