Full text of H.16 Capital Market Developments : October 27, 1954

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October 27, 1 9 ^
CAPITAL MARKET DEVELOPMENTS

Heavy volume of security issues t h i s week - Large publicscorporate o f f e r i n g s amounting t o il86 million d o l l a r s and a t o t a l of
•38 million d o l l a r s of large State and l o c a l government issues were
f l o a t e d f o r new c a p i t a l during the week ending October 22. Included
in the corporate volume was the 131 million common stock o f f e r i n g by
National City Bank of New York which was 98.09 per cent subscribed
through the exercise of stockholders' subscription r i g h t s expiring
on October 22. This' week 222 million d o l l a r s of large S t a t e and l o c a l s e c u r i t y issues and.190 million of large corporate issues are
scheduled f o r public o f f e r i n g .
Bond y i e l d s - Yields on outstanding corporate Aaa and Baa
and high-grade municipal bonds decreased during the week ending October 22. Long-term U. S. Treasury bond y i e l d s increased one point
and showed a f u r t h e r r i s e during the f i r s t two days of t h i s week.
.

Rise in stock p r i c e s - The SEC index of 26£ common stocks
rose moderately l a s t week, but d a i l y indexes i n d i c a t e some decrease
through October 26.
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 recent c a p i t a l
market developments w i l l be found in the following exhibits which
are attached hereto:
A - Bond Yields
B - Stock Market
C - Corporate and State 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 f o r 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. ;




• ,

EXHIBIT

A

BOND YIELDS
PER CENT PER ANNUM

CORPORATE

Boo

CORPORATE

Aoo

4

" m

U.S.

GOVERNMENT
LONG-TERM

1

/u

V

1

V

/ HIGH-GRADE
,

Jjl

STANDARD

11 I I I I 11

MUNICIPAL

AND P O O R ' S

1

I11I

J
s
1951

1

•

CORP.

1 11

J
S
1952

IIll

Corporate l /

J
S
1953

U. S. Govt,
long-term 2/

M

-Naw

J
S
1954

Spread between
Corporate Aaa
and U. S. Govt.

High-

E!V

(Per cent per annum)

.1951 - Hif^i
1952 - Hif^i
1953 " High
195U - High
September 2h
October 1
October 8
October 15
October 22

3.03
2.65
3.03
2.91
3.U2
2.99
3.09
2.85
2.89
2.89
2.88
2.88
2.87

-3.63
3.16

3.he
3-39
3,50

}.7h
3^.L6
|.ii8

S3.W
3.17
3.L6

2.7U
2.38
2.79
2
4
2.7k

2.11
2.hh
2.51
2.51
2.5=1

2.#

2.53

fs

.37
.19
.38
.19
.13

1
•M
.31

2.26
1.59
2.U3
2.00

3.1b
2.13
2.56
2.23
2.33

2^

2.32
2.30

1/ MOOCy-5 j.n»csuwL
v
<? / Federal Reserve; weekly averare of daily figures.
3/ Standard and Poor's Corporation; Wednesday f i g u r e .
Note.—Highs and lows i e for individual series and may be on different dates
for d i f f e r e n t s e r i e s .




EXHIBIT B

STOCK MARKET

Millions of Shares

Date

Bank loans
to."others"
Common stock Customers'
Trading
Stock price volume 2 /
f o r purchases
yields 3/
of securindex 1 /
balances
V
(per cent
(millions
(millions
ities.5/
(1917-49-100) of shares) per annum)
of d o l l a r s ) (millions
of dollars)

1951 - High
•1952 - High
1953 - Hi
195U - High
September
October 8
October 15
October 22

158.6
11*0.3
165.3
. 151.7
167.1
lith.O
199.7:
156.5
191.1
191.0
199.7

19k.O
196.9

3 .U
1.1
2.0
0.9
2.5
0.9
3.2
1.1*
2.6
2.0
2.2
2.1
2-1

.

6.55
5.55
5.77
5.13
5.75
5.15
5.33
1».1*6
it.75
It .1,6

1,297
1,219
1,328
• 1,21*1
1,665
1,311*
2,01,8
1,653
1,967
2,018

p.a.

n.a.

3lt0
260
2#
250
327
252

hh2

328
ltl8
lt21
lt33
1*314.

hh2

19lt7-C9-100 by F e d e r a l Reserve.
2 / Weekly averages of d a i l y t r a d i n g volume on Her; York St tick 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 f i r m s of New York Stock Exchange; excludes
balances secured by U. S. Government s e c u r i t i e s .
5 / Wednesday f i g u r e s f o r weekly r e p o r t i n g 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 1*, 1953, the
l a s t d a t e on which f i g u r e s f o r a l l r e p o r t i n g banks were a v a i l a b l e , New York and
Chicago accounted f o r it5 per cent of such l o a n s . I n t h e p a s t New York and Chicago
loans have f l u c t u a t e d more than t o t a l l o a n s .
n.a.—Not a v a i l a b l e .
•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 C
Corporate and S t a t e and Local Government Security Offerings and Placements
(In millions of d o l l a r s )

1954

Corporate
I
1953

January
Fe'-ruary '
urch

544
439
660

8!
666

April
May
Jur-e

486
652
859

779
675
1,123

July
August
September

ee/liOO
/725
e/725

Cstober

e/800

November
December

1st quarter
2nd quarter
3rd quarter
4 t h quarter
Tear

1,643
1,998
j^/1,850

Nevr c a p i t a l
1952 '

1

S

357
3146
00

734
748
853 •

328
648
434

454
394
625

279
e/250
e/625

519
259
475

243
199
473

, • e/505.

452
408
774

302
163
3#

1,372
1,979
2,335
i f f , * e/1,155

1,173
1,410
1,253
1,635
5,471

802
1,474:
. 916
880
4,072

"S951
870
990
769

.

1,237 V
291
390

577
b29 2y
i,u8 y

999
340
851

2,444 §<
8,495 y

!

.:£y

Excluding finance companies
1st quarter
2nd quarter
3rd quarter
-4th quarter
-"ear
,s

1,562
1,931
e/l,785

11,991
,669

1,223
2,344
7,227

1952

388
359
426

483
325
753

1,912
2,578

S t a t e and l o c a l
1954
1 1953
1

.

1,961
2,521
1,877
2,094
8,452

2 / Includes 603 million d o l l a r AT&T debenture i s s u e .
, 3 / 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 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 S e c u r i t y Issues f o r New C a p i t a l
(other than U. S. Treasury) 1 /
• Proceeds of Large Issues Offered
(Millions of d o l l a r s )
Month

1953 - September
October
November
December
1954 - January
February
March
April
' •
May •
June
July v
:
-. • August ; . 5 .
September..

Corporate.

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

3h

322
323
254
571
164
213
378
#7
#7
603 ,
92
.
86
4#

375
216
96
963
289
103
160
169
32U
350
336
75
33$

.

Other 2 /

51
19
SO,
119
SO

.

, Large I n d i v i d u a l I s s u e s Offered October 1 through 22
Type 3/

Issuer
:

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

CORPORATE .

Public Service Co. of
Colorado
,
Indiana and Michigan
E l e c t r i c Co.
Texas: Power & Light Co.;
New York Telephone Co.
N a t ' l . City Bank of N.Y.
STATE & LOCAL GOVERNMENT

1 s t mtg.bds.,

20.0

1984

3 1/8

3.03

Aa

1 s t mtg.bds., 16.5
1 s t mtg.bds., 15.0
Ref .mtg.bds. 2*0.0
Common stkf. I 3 I . 3

1984
198it
1989

3 1/8
3 1/8
3

3.04
3.00
2.95

Aa
Aa c?
Aaa

1989

4.50

. "It.50

3,59
2.45
2.13
2.51,

3.46
1.35-2.55
1.20-2.40
:1.25-2.63

Southeast Alabama
Gas D i s t r i c t
M i s s i s s i p p i River Bridge
A u t h o r i t y , Louisiana
. Kansas C i t y , Missouri
,Cleveland, Ohio
Cleveland, Ohio




Rev.

19.5

Rev.
Rev.
Rev.
Rev.

65.0
12.0
5.o
6.0

1994
1961-84
:1959-78
:1959-83

—

Aa
Aa
A

Large Individual Issues Offered October 1 through 22 (Cont'd)
Issuer

' Coupon
Amount
Offering Rating
(millions Maturity r a t e or
yield
n
et interof
e s t cost
dollars)

Type 3/

STATE AND LOCAL GOVERNMENT
(Cont'd)
S t a t e of Oklahoma Planning & Resources Bd.
Ga. S t a t e Toll Bridge Auth.
Alexandria, Virginia
Newark, New Jersey
Milwaukee/ Wisconsin
Greater Baton Rouge
Port Comission. La.
Colorado Springs, Colo.

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

7.2
6.7
,
8.2
? 10.0

:

$.o

12.5
10.0

19% .
1981;
1960-76
.1955-7U
1961-91
1957-82

xi

h.31

—

3.35
3.19
2.36
1.62

3.30
1.90-3.20
0.90-2.^5
0.70-1.85

Baa
Aaa

2.76
2.ia

1.50-2.85
i.00-2.35

Baa
Aaa

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 million d o l l a r s and
over5~State 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 million and over.^
2 / Includes foreign 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 .
V 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.0. denotes general
obligation) Rev., revenue bonds; G.R., general obligations 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; and, L.L., limited l i a b i l i t y obligations secured by pledge
of designated revenues.
n.a.—Not a v a i l a b l e .




Exhibit E
Forthcoming Large Public Security Offerings f o r New Capital
(other than U. S. Treasury) 5/.
,
Expected R*oceeds from Forthcoming Large Issues
During month following
date shovm

Date of
computation

Corporate | 3 ^ % ^ . | Other T f
180
73
9ii8
232
118
108
2 Oil
323
332
336
100
33b
3h3

:.9?3 - 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

273
283
337
179
161
498

i5k

n.a.
n.a.
73
123
So
27

300
383

Subsequent t o
date shown
corporate

1,016

1,129

1,616

669
U79
- 690
555
• 617
526
. 532
303
608
klk
•

[other 2 /
1,182
978
1,7#
1,238 I

1,660

,n<a.
n.a*
8(T
138

1,916
2,789
2,322
1,971
1,%

50
27

m
2,1#

forthcoming Large Offerings, as of October 22
Issuer

Type

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

CORPORATE
Cortland Equipment Lessors, Inc.
Continental Oil
Southern Railway
Kentucky U t i l i t i e s
*New England Telephone and Telegraph
Laclede Gas
Long Island Lighting
Kansas City Power and Light
Public Service of Oklahoma
•HNew England Telephone and Telegraph

Deb.
75.0
Deb.
100.0
Coll. t r u s t notes
15.0
1st mtg. bonds
15.0
Deb.
30.0
1st mtg. bonds . 20.0
1st mtg. bonds
20.0
1st mtg. bonds
16.0
1st mtg. bonds
20.0
Common stock
15.8

October 27
October 28
October 28
November
December lit
December
December
195k
January
March

STATE AND LOCAL GOVERNMENT
Lansing, Michigan
Puerto Rico
S t a t e of Massachusetts
Wichita, Kansas •
Philadelphia, Pennsylvania
Florida S t a t e Board of Education




I G.O. .
G.O.
G.O.
5 n.a.
G.O.
Rev.

6.0
10.0
59.8
6.9
25.8
16.5

October
October
October
October
October
October

25
25
26
26
26
26

E-2
Forthcoming Large O f f e r i n g s , as of October 22 (Cont'd)
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 )

STATE Aim LOCAL GOVERNMENT (Cont'd)
Chicago, I l l i n o i s
Department of Highways, V i r g i n i a
P'.eblo County, Colorado
^ T e r r i t o r y of Hawaii
Abington Township, P a . , School D i s t .
>T
ew York City
Maryland S t a t e Roads Commission
D a l l a s , Texas
Indiana To ll Road Commission
J e f f e r s o n Parish and S t . Tammany
P a r i s h , Louisiana
Oklahoma Turnpike Authority
New Jersey Highway Authority
Dade County Port A u t h o r i t y , F l a .
Allegheny County, Pennsylvania
S a n i t a r y Authority
C a l i f o r n i a T o l l Bridge Authority
Warren, Ohio
Springfield, Illinois
Davenport, Iowa
New York Thruway
Michigan Turnpike Authority
e s t a t e of Louisiana
New York S t a t e Power Authority
Metropolitan - Water D i s t . - of So. C a l .
^ Los Angeles School D i s t s . , Cal.
Los Angeles Dept. of 7/ater h Power
F l o r i d a S t a t e Turnpike Authority
J e r s e y City Sewerage Auth., N. J .
North Carolina Turnpike Authority

G.O.
Rev.
n.a.
n.a.
Rev;
G.O.
n.a.
n.a.
Rev.
lev.
Rev.
Rev.
Rev.
n.a.
n.a.
n.a.
Rev.
Rev.
Rev.
G.O.
Rev..
Rev.
Rev.

12.2
79.3
2.3
6.5
. 6.0
21.6
12*6.0
10-12.0
178.0

October 27
October 27
October 28
November 4
November 4
November 4
November 9
November 29
December

42.0
172.0
30-20.0
21.0

December
1924
1924
1924

82.0
232.0
2.0
9.0
2.0
2o.o
186.0
80.0
312.0
8-10.0
20.0
12-20.0 .
89.0
16.0
200.0

1924
1924
1924
1924
1924
1924
Spring
Spring
1955
1955
1955
1955
1955
1955
1955

OTHER
None
and l o c a l government i s s u e s of 2 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 .
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 .




Exhibit F
Yields on New and Outstanding
Public U t i l i t y Bonds, Rated Aa and A 1 /
Date

19^2 average

Aa-rated o f f e r i n g y i e l d s
A-rated o f f e r i n g y i e l d s
Amount above
Amount above
Actual
Actual
seasoned y i e l d s
seasoned
y
i
e
l
d
s
(per cent)
(per cent)
(basis points)
(basis p o i n t s
3-18

11*

3.37

12

3.W*

16

3.78

25

3.25
3.39
3.1*0
3.1*8
3.79
None
*3.68
None
None
3.31*
*3.28
*3.30

11
19
17
16
, 28

None
None
3.#
3.88
3.99
li.lO
*U.00
None
3.92
3.56
3.1*2
3.51

19$k - January
February
March
April
May
June
July
August
September

3.20
3.02
*2.93
2.99
' 3.00
*3.00
None
None
3.02

6
0
0
5
.1*
1

October 5
6
6
- lit
15
19
21

3.03
3»Ol4.
3.01*

1*
1* >
1*

3.00

1

1953 average
1953 - January
February
March •
April
May
June
July
August
September
October
November
December .

•

.

29
6
7
5

3

-

3.31**3.20
3.05
, 3.10
3.H* •
3.H*
*3.13
3.11
*3.10
.

23
1*1
37
39
30
29
7
2
10
2
-1
-10
-6
-1
-2
- -1
-1
-3

3.12

-1

3.12
3.10

. 0
' -2

3.08

. . -3

.' r

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
the 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 "issues
of s i m i l a r q u a l i t y f o r the same day.
*—Single observation, n o t an average.
.
''