Full text of H.16 Capital Market Developments : October 6, 1955

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Mot f o r P u b l i c a t i o n

DECONTROLLED AFTER SIX MONTHS

H.lij.

October 6 , 1955
CAPITAL MARKET DEVELOPLEltTS

S t a t e and l o c a l governments o f f e r e d l a r g e s e c u r i t y i s s u e s
with t o t a l proceeds of 106 m i l l i o n d o l l a r s during the .week ending
September 30. Corporations f l o a t e d 65 m i l l i o n d o l l a r s of l a r g e publ i c i s s u e s f o r new c a p i t a l and a r e o f f e r i n g a 35 m i l l i o n d o l l a r d e benture i s s u e t h i s week. Mo l a r g e S t a t e and l o c a l government o f f e r ings a r e expected t h i s week—the only i s s u e scheduled was postponed
for. an i n d e f i n i t e period because of a s u i t f i l e d by a t a x p a y e r .
October outlook - The October corporate estimate f o r new
. c a p i t a l i s 1,300 m i l l i o n d o l l a r s , the l a r g e s t monthly volume since
December 1953• Included i n t h i s month's estimate are proceeds from
a 637*2 m i l l i o n d o l l a r American Telephone and Telegraph c o n v e r t i b l e
debenture i s s u e , s u b s c r i p t i o n r i g h t s f o r which expire' October 13. A s i m i l a r AT&T i s s u e of 602 *5 m i l l i o n d o l l a r s accounted f o r a l a r g e
p a r t of t h e December 1953 volume.
S t a t e and l o c a l government o f f e r i n g s f o r October a r e e s t imated a t 1,050 m i l l i o n d o l l a r s which, i f r e a l i z e d , w i l l be the
l a r g e s t month on r e c o r d i n municipal f i n a n c i n g . This estimate i n cludes two i s s u e s — t h e I l l i n o i s Turnpike iilO m i l l i o n and t h e Texas
Turnpike Company 137 million—which had been expected e a r l i e r i n
the year and then had been delayed. . Also expected f o r o f f e r i n g
t h i s month a r e two i s s u e s — t h e 50 m i l l i o n d o l l a r New York S t a t e
Thruway o f f e r i n g and the 40 m i l l i o n Cook County, I l l i n o i s issue—
which p r e v i o u s l y had been -scheduled f o r o f f e r i n g i n the t h i r d quart e r but were n o t sold when a l l b i d s were r e j e c t e d .
Bond y i e l d s - Treasury o b l i g a t i o n y i e l d s decreased t h r e e
b a s i s p o i n t s d u r i n g the week ending September 30. Changes in y i e l d s
on other outstanding bonds were mixed but moderate, a s can be seen
from t h e a t t a c h e d c h a r t s .
According t o d a i l y f i g u r e s , y i e l d s on U. S . Government longterm bonds d e c l i n e d moderately on Monday and were s t a b l e on Tuesday
of t h i s week. Corporate y i e l d s were unchanged so f a r t h i s week.
Stock p r i c e s - Stock p r i c e s , - a s measured by the SEC index
of 265 common s t o c k s , dropped 11.8 p o i n t s t o 257*9 l a s t week i n
heavy t r a d i n g volume. A sharp drop occurred on lien day, September 26,
b u t by F r i d a y , t h e day f o r which t h e SEC index i s computed, p r i c e s
had regained more t h a n h a l f of t h e d e c l i n e , This Holiday, however,
according t o Standard and Poor's 90 stock index, p r i c e s decreased
s h a r p l y again t o below the l e v e l of the previous Monday. A l i t t l e
more than h a l f of t h i s l o s s had been recovered by October 5 i n mode r a t e d a i l y t r a d i n g volume.
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 t h e Federal Reserve System.



H I G H - G R A D E BOND YIELDS
Weekly

CORPORATE A a a

S. GOVERNMENT

STATE AND LOCAL
GOVERNMENT A a a

Corporate
Aaa 1/

Date

U. S . Govt,
long-term 2 /

S t a t e and l o c a l
g o v t . A a a 3/

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

(Per cent)
1 9 # - High
1953 - High
1954 - High
1955 - High
LOT

September
September
September
September
September

2
9
16
23
30

3.03
2.91
3.42
2.99
3.09
2.85
3.1k
2.91

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

3.13
3.14
3.13
3.13
3.12

2.79
2.56
3.15
2.78
2.74
2.a

(12/27)
(5/17)

2 . 0 0 (10/23)
1.65 ( 5 / 1 )

(6/6)

2.73

(12/26)
(1/9)
(8/7)

2.62 ( 1 / 7 )

1.98
2.21
1.90
2.34
2.05

2.91
2.88
2 .89 .
2.89
2.86

2.31
2.34
2.32
2.27
2.27

2.94(8/5)

(6/25)

(1/8)
(6/10)
(9/2)
(9/8) .
(5/26)
|

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

.37
.19
.38.
.19
.13
•32
.34
.13
. .22
z'.26
.24
.24
.26

.54
'

'V
.62
.59

1/ Weekly average of d a i l y f i g u r e s . Average term of bonds included i s 25-26
years.
2 / Weekly average of daily f i g u r e s ; old s e r i e s . Average term t o f i r s t c a l l
of bonds included i s 13-14 y e a r s .
3 / Thursday f i g u r e s . Only general o b l i g a t i o n bonds are included; average
term i s 20 y e a r s .
Note.—Highs and lows are for 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 s e r i e s .




L O W E R - G R A D E BOND YIELDS
Weekly

.
CORPORATE Boo

STATE AND LOCAL GOVT. Boo

Hi/.!

T ' 7

I

,

STATE AND LOCAL GOVT. REVENUE

Corporate
Baa 1 /

Date

S t a t e and
local govt.
Baa %/

S t a t e and .
l o c a l govt,
rev. 3 /

(Per cent)
1952 - High
Low
1953 - High
* 195k - High
1955 - High
LOT

September
September
September
September
September

2
9
16
23
30

3.63 ( 1 / 4 )
3.48 (5/16)
3.89(9/18)
3.50 (1/2)
3.7k ( 1 / 8 )
3.44 (12/31)
3 . 5 9 (9/30)
3.15 (1/14)
3.58
3.59
3.59
3.58
3.59

2.98
2.18
3.79
2.96
3.32
2.93
3.25
3.02
3.23
• 3.25
3.25
3.25
•3.23

(10/23)
(4/17)
(6/25)
(1/8)
(1/7)
(8/5)
(9/22)
(1/6)

.

2.69
2.27
3.27
2.71
3.00
2.72
2.95
2.76

(12/19)
(4/25)
(6/26)
(1/2)
(1/1)
(8/13)
(9/2)
(1/7)

2.95 •
2.93
2.92
2.90
2.90

"
1 / Weekly average of d a i l y f i g u r e s . Average term of bonds
included i s 25-26 y e a r s .
2 / Thursday f i g u r e s . Only general obligation bonds are
includedj average term i s 20 y e a r s .
3 / Friday f i g u r e s . Average r a t i n g of bonds included i s
between Baa and Aj average term i s 20 y e a r s .
Note.—Highs and lows are 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 dates for d i f f e r e n t s e r i e s .




STOCK MARKET

Millions of Dollar*, Wi

/

STOCK MARKET CREDIT

•tie

.Hat.

Stock p r i c e

Cannon
Trading
volume 2 /
(millions yields 3/
of s h a r e s ) ( p e r c e n t )

Stock market customer c r e d i t
Customers 1
debit b a l "others" 5 /

Total

( M i l l i o n s of d o l l a r s )
1952 - High
Low
1953 - H i # i
Low
1S54 - High
Low
1955 - High
Low

165.3
151.7
167.1
144.0
221.1*
156.5
269.7
217.lt

August
September
September 16
September 23
September 30

254.5
263.6
267.li
269.7
257.9

(12/26)
(10/210
(1/2)
(9/18)
(12/31)
(V6)
(9/23)
(1/14)

2.0
0.9
2.5
0.9
3.7
1.4
4.6
1.5

5.77
5.13
5.75
5.15
5.33
4.20
4.22
3.78

1,986
1,804
2,445
2,055
3,436
2,405
3,911
3,537

1,332
1,241
1,665
1,314
2,388 ,
1,653
2,734
2,517

1.8
2.9
2.6
2.4
4.3

3.91

3,865

2,710

1A55

n.a.

1,167
1,173
n.a.

n.a.

n.a.

656
552
780
664
1,048
746
1,177
1,018

_i.a.—Not a v a i l a b l e .
V SEC Index of 265 common s t o c k s , weekly c l o s i n g p r i c e s , 1939-100; c o n v e r t e d
t o 1947-49-100 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.
5 / Moody's 200 common s t o c k s ; end of month f i g u r e s .
5/ 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 i 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 1952; s i n c e 1953 only t h e s e l o a n s
a t banks i n New York and Chicago a r e e x c l u d e d . Weekly r e p o r t i n g banks account f a r
about 72 p e r cent of l o a n s t o o t h e r s .
Note.—Highs and loirs 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.




Exhibit 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 )

January
February
March
April
May
July
.August
September
October
November
December
1st quarter
. 2nd quarter
3rd quarter
4th quarter
Year

19#

Corporate
i
1 195a

546
436
1,261

- New c a p i t a l

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

1953

1953

1955

547
426
635

623
,623
666

535
312
538

396
411
565

494
903
697

h97
656
842

779
675
1,123

427
350
641

734
748
853 .

329
649
434

533.

909
3#
747

1*63
325
753

470
V235
e/390

279
261
649

519
259
475

e/1,300 y

1,003
290
604

577

3/1,050

594
423
877

453
408
774

2,21(3
2,09b
e/1,905

l P 6c8
1,995
1,991
1,696
7,490

3,912
2,578

1,385
1,418
o/l,095

1,372
2,334
1,188
1,894
6,789

1,176
1,412
1,253
1,636
5,477

8,495

.

390
360
426

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

1,791
1,912
e/1,730

1,527
1,927
1,911
1,792
7,153

1,669
1,991
1,223
2,3a
7,227 '

1/ Includes 637.2 million d o l l a r AT&T convertible debenture i s s u e .
2 / Includes 602,5 million d o l l a r AT&T convertible 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 sales and personal finance
companies.
Mote*—Details may not add t o t o t a l s due to rounding.




H.lli

Exhibit E
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

Corporate

1954 - August
Septcinbor
October
Noveuber
December
.1955 - January
February
March
April
May
June
July
August
September

75
364
433
0
121
Hil
63
750
173
483
175
101
405
328

1
S t a t e and
l o c a l government

Other 2 /

86
455
388
268
689
3hl
107
337
238
- 152
409
278
72

30
35

. —

227

Large Individual Issues Offered September 1 through 30
Type 3 /

Issuer

CORPORATE
Utah Power & Light
. Tenn. Gas Transmission
Tenn. Gas Transmission
CIT F i n a n c i a l
Ohio Power Co.
Columbia Gas System, I n c .
Public Service Elec. & Gas
Detroit Steel
Kaiser Aluminum & Chemical

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

Rating

-

1 s t mtg,bds.
15-0
1 s t mtg. PL
50.0
Conmon s t k .
16.0
100.0
Deb.
1 s t mtg,bds. 17 rO
Deb.
4o.o
Pfd. s t k .
25.0
1 s t mtg.bds. 30.0
Pfd. s t k .
35.0

1985
1976

3 5/8
3 7/8

•3.50
3 . GO

A
A

1970
1985
1980

3 5/8
3 3/8
3 5/8

3.75
3.32
3.63

Aa
A

1970

i, 7/8

5.oo

Baa

STATE AND LOCAL GOVERNMENT
S t a t e of Delaware
Essex County, New Jersey
Middlesex Co, Sewerage
) Authority, K. J .




G.O.

G.O.

7.0
8.8

1956-75
1956-76

2.12
2.20

1.45-2.20
1.50-2,25

Aa
Aa

Rev.

25.0

1962-95

3.33

2.50-3.35

—

H,lU
Large I n d i v i d u a l I s s u e s Offered September 1 through 30 (Cont'd)

Issuer

.

Type 3 /

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

3IME Am I..CCAL GOVERNMENT
(Cont'd)
B u f f a l o , "Mevj York
Volusia Co., F l o r i d a
D e t r o i t , Michigan.
Los Angeles, C a l i f o r n i a
S t a t e • of New Mexico
Chicago Regional Port
District, Illinois
Vfarren Township, k'ich.
Richmond-Petersburg
Turnpike Authority
Baltimore County, Md.
Sedgwick County, Kansas

G.O.
G.R.
GtO.
Rev.
LsL.

12.8
8.0
9.1
18,0:
6.9

1956-70
1961-81:
1956-80
1956-85
1956-65

1.89
3,35
2.62
2.52
2.09

l.l|0-2.00
2.60-3.35
1.50-2.70
1.50-2.60
1.50-2.05

Aaa
Baa
A
Aa
Aa

Rev.
G.O.

2lu0
12.0

1995
1958-91;

n.a.
3-31

a.00
2.15-3.35

Baa

Rev.
G.O.
G.O.

69.0
15.9
5.8

1995
.1958-85
1957-76

3.50
2.1*9
2.20

3.15
1.70-2.60
1.60-2.25

A
Aa

OTHER
None
over5 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 a 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 general
o b l i g a t i o n ) Rev., revenue bondsj 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; and, 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.
^
„




.

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
Date of
computation
- S e p t . 30
Oct. 29
Nov. 30
Dec. 31
- J a n . 31
Feb. 28
-Mar. 31
Apr. 29
May 31
June 30
July 29
Aug. 31
S e p t . 30

During month foilotring
date shown
S t a t e and Other 2 /
Corporate
l o c a l govt.
343
15
9b
m
16
710
211
160
67
U07
222
805

383
136
661
567
682
524
208
llo
33?
34u
100
18U
843

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

30

ill4
135
246
216
122
1,395
922
1,141
850
830
1,135
920
909

2,158
1,957
2,682
2,144
1,961
1,978
2,009
1,917
1,861
1,845
2,018
1,971
2,205

30
35

Forthcoming Large O f f e r i n g s , as of September 30
|
Type"

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

CORPORATE
Public Service E l e c t r i c and Gas
American Telephone and Telegraph
Southern B e l l Telephone & Telegraph
^Burlington I n d u s t r i e s
New York S t a t e E l e c t r i c and Gas
P a c i f i c Gas and E l e c t r i c
Long Island l i m i t i n g
^Southern New England Telephone
and Telegraph
New England Telephone & Telegraph
Southern Co.
Southern C a l i f o r n i a Gas
Freedom Insurance Company

Deb.
Conv. deb.
Deb.
Sub. conv. deb.
1 s t mtg. b d s .
P f d . stock
1 s t mtg. b d s .
Common stock
Deb.
Common stock
Bonds
Common stock

35.0
637.2
30.0
30.0
15.0
25.0
15.0

October
October
October
October
October
October
October

4
13
17
19
19
25
26

17.9
30.0
30.0
40.0
22 oO

October 28
November 15
November 22
November
1955

40.0
8.6
7.0
50.0

October
October
October
October

STATE AND LOCAL GOVERNMENT
Cook County, I l l i n o i s
S t a t e of Tennessee
Monterey Co., C a l i f o r n i a
New York S t a t e Thruway Authority




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

10
10
11
11

H,lZt

.

F-2

Forthcoming Large O f f e r i n g s , as of September 30 (Cont'd)
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 )

STATE Aim LOCAL GOVERNMENT (Cont'd)
Orleans P a r i s h , Louisiana
I l l i n o i s Turnpike Authority
' P h i l a d e l p h i a , Pennsylvania
"
•a-Jersey City Sewerage Authority
Public Housing A u t h o r i t i e s
Texas Turnpike Company
^Cleveland, Ohio
^ 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
• ^Commonwealth of Massachusetts
C onnecticut Expressway
Inter-American Center Auth., F l 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
Michigan Turnpike A u t h o r i t y
C a l i f o r n i a T o l l Bridge Authority
Louisiana Turnpike Commission
- Oklahoma Turnpike Authority
J" -^Pennsylvania Turnpike Commission
Washington S t a t e Toll Bridge Auth.

G.O.
Rev.
Rev.
Rev.
n.a.
n.a.
n.a.'
n.a.
Rev.
Rev.
Rev,
Rev.
Rev.
Rev,
Rev.
Rev.
Rev.

6 e0
IjlO.O
39.9
13 06
122=0
137.0
9.0
10.6
.60.0
7,5
159 o9.
100.0
25.0
1*3.0 .
186.0
23^.0
100,0
14600
62,0
227.0

October 13
October 17
October 18
October 19
October 26
October 26
October 27
November 1
November 2
November 16
November 16
19#
19#
19#
1955-56
1955-56
1955-56
1955-56
1955-56 .
1956

OTHER
None
1 / Includes corporate and other i s s u e 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 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 .
n.a.—Not a v a i l a b l e .
-x-—Included in t a b l e f o r f i r s t t i m e .