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Mot f o r Publication H- W DECONTROLLED AFTER SIX MONTHS ' ' September 29, 19$k CAPITAL TMRKET DEVELOPMENTS • Heavy volume of s e c u r i t y o f f e r i n g s - The volume, of l a r g e corporate, s e c u r i t y o f f e r i n g s f l o a t e d p u b l i c l y f o r new c a p i t a l d u r i n g the week ending September 2b amounted t o 26£ m i l l i o n d o l l a r s j the volume of lai*ge S t a t e and l o c a l government i s s u e s was 197 m i l l i o n . Large p u b l i c i s s u e s to b e o f f e r e d t h i s week t o t a l 71 m i l l i o n dollars. Bond y i e l d s - Yields on outstanding high-grade municipal bonds rose"moderately during the week ending September 2b. Corpora t e Baa bond y i e l d s i n c r e a s e d s l i g h t l y , and thdse on corporate Aaa and U. S. .Government o b l i g a t i o n s did not change. The spread between corporate Aaa and Treasury bond y i e l d s was 38 p p i n t s f o r the s i x t h consecutive week. * • Stock p r i c e s rekch new high - The SEC index of 265 common stocks r o s e t o . 1 9 9 . 3 l a s t week, a new high f o r t h e s e r i e s v^ich extends back t o 1939. The Standard and Poor ! s. index of Zt80 common s t o c k s , which i s a v a i l a b l e f o r a longer p e r i o d , surpassed the 1929 high f o r the f i r s t t i m e . P r i c e s of i n d u s t r i a l stocks have been above the 1929 high f o r some time, but public u t i l i t y and r a i l r o a d stock p r i c e s a r e s t i l l w e l l belcw t h e 1929 l e v e l s . Further d e t a i l s on c a p i t a l market developments a v a i l a b l e from e x h i b i t s - 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 w i l l be found in the following e x h i b i t s which are attached hereto: , „ " A - Bond Yields B - S t o c k Market ' C - Corporate and S t a t e and Local ' Government S e c u r i t y Offerings and Placements 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) •E - 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) 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 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. EXHIBIT A BOND YIELDS PER CENT PER A N N U M 4 CORPORATE Baa RPORATE GOVERNMENT /V V V =' / H I G H - G R A D E M U N I C I P A L W . STANDARD AND POOR'S CORP. I UyU I I I I I I I I I I I I I I I I I I I I I I I J S M J 5 1952 1951 Corporate 1 / M 4V!A1 J S D 1954 •High- | : % i 5 = E (Per cent per annum) 1951 - High Low 1952 - High 1953 - Hiph 195a - High Au~ust 27 September September September September 3 10 1? 2k 3.03 2.65 3.03 2.91 3.1*2 2.99 3.09 2.85 j 2.57 i 2.08 2.69 ; 2.89 2.89 3.63 3.16 3.63 3.18 3.89 3.50 "3-71* 3.1*6 3.1*7 3.a? 3.1*7 3.1*7 3.W 2.7k 2.38 2.79 2.56 3.15 2.71* 2.71 2.kk 2.1*9 2.50 2.51 2.51 2.51 .36 .25 *•37 ' .19 .38 .19 • .1*3 .33 .30 .38 .38 .38 .38 2.26 1.59 2.1*3 2.00 3.H* 2.1*3 2.56 2.23 2.23 2.21* . • 2.31 2.33 1/ Moody's I n v e s t o r s Service; v.eekly average of d a i l y f i g u r e : ? / Federal Reserve; weekly average of d a i l y f i g u r e s . 3 / Standard and P o o r ' s Corporation; Wednesday f i g u r e . Note.—Kighs and lovis i 3 f o r i n d i v i d u a l s e r i e s and may be en d i f f e r e n t d a t e s for different series. STOCK MARKET 1947-49-100 Millions of- Share VOLUME Bank l o a n s 1 to "others"' T r a d i n g • Comr.cn s t o c k C u s t o m e r s for purchases S t o c k p r i c e volume 2 / yields 3/ of s e c u r balances h/ index 1/ (millions (per cent (1917-19=100) • (nillicnsi t i e s 5/ of s h a r e s ) p e r annum) (millions r of d o l l a r s ) of d o l l a r s ) 1951 - High ! . 1952 - High Low 1953 - High 1 195L - High • ' September 10 September.17 September 2k 1 158.6 lk0.2 165.3 151.7 167.1 m . o 199.3 156.5 100.1 191.1; 191.6 195.5 199.3 : 3 .It 1.1 2.0 0.9 ' 2.5 , 0.9 3.2 l.U ' 2.5 2.6 1.9 2.1 . 2.2 6.55 5.55 5.775.13. 5,75 ' 5.15 5.-33 . t ii.6l I1.61 .1.75 . 1,297 1,219 1,328 , 1,21:1 .1,665 l,311i 1,967 . 1,653 1,093 1,967 n.a. n.a. 3ii0 ' .260 295 250 ' 327 . 2# U37 = 328 112 118 illi4 U20 L2f 1 / SEC i n d e x of 2 6 ; common s t o c k s , weekly c l o s i n g p r i c e , 1939=100; c o n v e r t e d t o 19ii7-H9=100 by F e d e r a l R e s e r v e . . • 2 / Y.'eekly a v e r a g e s of d a i l y t r u d i n n volume on Hew. York S t o c k E x c h a n g e . 3 / l ' o o d y ' s 200 common s t o c k s ; end of month f i g u r e s . • IT/ End 'of month f i g u r e s f o r n e n b o r f i r m s of „!'ew York- S t o c k E x c h a n g e ; . e x c l u d e s b a l a n c e s s e c u r e d b y l T . S . Cover rcnent s e c u r i t i e s . 5 / Wednesday f i g u r e s f o r w e e k l y r e p o r t i n g aenfoer b a n k s i n 'lew York and C h i c a g o ; e x c l u d e s l o a n s f o r p u r c h a s e cf V. S . Government s e c u r i t i e s . Cn March L, 1 9 5 3 , t h e l a s t d a t e on which f i g u r e ? t'cr a l l r e p o r t i n g banks w e r e a v a i l a b l e , Hew York and * Chicago accounted f o r p e r c e n t of ?uch . l e a n s . I n t h e p->rt :!ev; York and C h i c a g o loin's have f l u c t u a t e d n o r e t h a n t o t a l l o a n s . n . a . — " ! o t a v a i l a b l e . •. ' ; . Mote.—Highs and lov.s : a r e f o r i n d i v i d u a l s e r i e s and r a y b e on d i f f e r e n t d a t e s for d i f f e r e n t s e r i e s . Exhibit C 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 ) 1954, January February March •April May. June July August September 544 439 660 623 623 666 - 186 652 659 779 6# 1,123 e/72> e/t00 e/650 493 #5 753 October November. December 1 s t quarter. 2nd q u a r t e r 3rd quarter 4th q u a r t e r Year New c a p i t a l S t a t e and l o c a l Corporate" 1 1954 1 1 1953 1 1953 1 • 195? • 577 429,, . 1 , 4 3 6 2/ 1,643 1,998 e/l,775 1,912 2,578 1952 615 U3 951 396 388 359 426 870 990 769 734 748 853 328 #8 434 e/250 e/250 E/% 519 2# 475 243 ,199. 473 452 408 774 302 183 395 1,173 1,410 1,253 1,635 5,471 802 1,474 916 880 4,072 1,237 y 291 390 999 340 851 1,979 !:91%1/ 1,372 ,2,335 ^/1A25 8:716 1 / 357 300 146 ' 454 394 625 Excluding f i n a n c e companies —^ 1st q u a r t e r 2nd q u a r t e r 3rd quarter 4th q u a r t e r Year 1,562 1,931 £A.-735 1,669 1,991 1,223 2,344 7,227 ' 1,961 2,521 1,877 2,09k 3^52 issue, 2 / Includes 603 m i l l i o n d o l l a r AT&T debenture i s s u e . 3/ 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 personal f i n a n c e companies.. . e/—Estimated. , Mote.—Details may not add t o t o t a l s due t o rounding. Exhibit D Large Public S e c u r i t y I s s u e s f o r New C a p i t a l "(other than U. S. Treastiry) 1 / Proceeds of Large Issues Offered ( U i l l i o n s of d o l l a r s ) Month , | State'and [ l o c a l government 1 • Corporate 1953 - August September October November December 195k - January February . March AprilMay . June , July August 115 375 216 . 96 963 289 203 160 , 169 . 321 350 . 336 75 111 322 323 254 571 16k 213 370 #7 557 603 92 86 . Other 2 / 3^ 51 .19 50 119 50 '* — '• — L a r g e ' I n d i v i d u a l I s s u e s Offered from September 1 through Zk Issuer Type 3 / Amount (millions of • dollars) j Coupon 1 est-cost Offering Rating yield CORPORATE Southern B e l l Telephone and Telegraph Co. Deb. Tennessee Gas Transmission Deb. American Tel. & Tel. Co. Deb. Dayton Power & Light Co. I s t m t g . b d s . 25.0 2b .5 250.0 15.0 1989 197k 1981; 198k 3 1/8 k 1/k 3 l/k 3- 3.02 - It.10.3.12 3.00 Aaa. Baa Aa Aa STATE AND LOCAL GOVERNMENT Cook County, I l l i n q l s Los Angeles, C a l i f o r n i a , Dept. of Y/ater &!Pov;er J e r s e y City Sewerage A u t h o r i t y , New Jersey L o u i s v i l l e and J e f f e r s o n Co., Sewer D i s t . j Texas Veterans Lan^iBoard G.O. 7.6 Rev. 19.5 1955-71; ' . 1.90 0.75-2.05 Aa " 1955-81 . 2.26 0.65-2.50 Aa Rev. Rev. G.O;. 22.0 1959-93 3.26 1.80-3.UO Baa 8,0 10.0 1955-9L, 2.5U 1960-89— • 2.10 0.70-2.70 '' 1,15-2.35 Aa' Aa D-2 Large I n d i v i d u a l I s s u e s O f f e r e d ' f r o m September 1 through 2k (Cont'd) Issuer Type 3 / Amount Coupon (millions Offering r a t e or Maturity Rating of yield net i n t e r dollars) est cost STATE AID LOCAL GOVERNMENT XCont'd) Public Housing A u t h o r i t i e s Wyandotte School D i s t r i c t , .Michigan P i t t s b u r g h Public School D i s t r i c t , Pennsylvania , S t a t e of South Carolina S t a t e of Connecticut - D e t r o i t , Michigan Kansas Turnpike 135.9 G.C. 7.3 G.O. G.O. G.O. G.O. Rev. . 5.0 20.0 7.0 5-2 160.0 1955-95 2.33 0.65-2.55 1955-72 • : 2.23 0.90-2.10 A 2.02 1.77 1.72. 2.52 3.a 0.70-2.25 0.70-2.00 0.65-2.25 0.75-2,85 3.10 A Aa Aaa A 1955-79 1955-71* 1955-81). 1955-83 1992* — OTHER None 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 oyer. 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 s e cured by f a c i l i t i e s revenues; and, L.Li, 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. k / Bonds maturing 1988-89 not r e o f f e r e d . Exhibit E Forthcoming Large Public Security Offerings f o r New Capital (j other than U. S . Treasury) 1 / . Expected Proceeds /from Forthcoming Large Issues During month following date shovm Corporate ^"a*e ^ Other 2// •; l o c a l govt. - Date of computation - Aug. 31 Sept. 29 . Oct. 30 Nov. 30 Dec. 31 - Jan. 29 Feb. 26 Mar. 31 Apr. 30 May 28 June 30 July 30 Aug. 31 b9Q 180 73 9k8 232 118 108 20U • 323 332 336 100 33h 226 273 283 #7 179 161 198 525 ,• n.a. n.a. 73 123 5° 27 % Subsequent t o date shovm S t a t e and Other 2 / Corporate l o c a l govt. 1,398 1,016 1,129 l,6l6 669 U19 . 690 g l,U6o- 1,182 978 1,7# •l,o60 1,916 2,789 2,322 1,971 1,52k 1,55<3 68 138 5:0 27 1,876 300 Forthcoming Large Offerings, as of September 2h Issuer Type Amount Approximate date (millions of o f f e r i n g of d o l l a r s ) CORPORATE Northern States Power Public Service Company .of Colorado Indiana and Michigan E l e c t r i c Co. Texas Power and Light Co. New York Telephone Co. . National City Bank of New York Kentucky U t i l i t i e s Laclede Gas . -^Continental Oil Kansas City Power and Light' Long Island Lighting Public Service of Oklahoma 1st mtg. bonds 20.0 1st mtg. bonds 20.0 1 s t mtg. bonds 16.^ 1st mtg. bonds . 15.0 Ref. mtg. bonds; ho.o Camion stock 131.3 1st mtg. bonds 15.0 1 s t mtg. bonds ; 20.0 Deb 100.0 1st mtg. bonds , / ' 1 6 . 0 1st mtg. bonds ' 20.0 1 s t mtg. bonds 20.0 September 28 October h • October 5 October 18 ' . October 19 "October 22 . October October October 19$h 19$H January &TATE AND LOCAL GOVERNMENT - State of Ohio State of Tennessee Macon County, I l l i n o i s Alexandria, Virginia Mississippi River Bridge Auth., La. Kansas City, Missouri' ^Cleveland, Ohio L.L. G.O. G.O. Rev. Rev. Rev. Rev. 30.0 September 28 September 28 5*h • 7.0 , September 29 8.2 . - September 6^.0 October 5 . 12.0 October 6 11.0 October 7 . E-2 Forthcoming Large O f f e r i n g s , as of September '2h (Cont'd) Issuer 1 * ;— Type j S t e s s s . - STATE AND LOCAL GOVERNMENT (Cont'd) Georgia S t a t e T o l l Bridge AuthorityDepartment of Highways, V i r g i n i a Milwaukee,. Wisconsin Greater Baton Rouge Port Comm., La. ^Colorado Springs, Colorado ".'.'ichita, Kansas F l o r i d a S t a t e Board of Education -^Southeast Alabama Gas D i s t r i c t ^ P h i l a d e l p h i a , Pennsylvania D a l l a s , Texas Oklahoma Turnpike Authority New Jersey Highway Authority Lansing, Michigan Dade County Port A u t h o r i t y , F l a . New York .State Power Authority Allegheny County, Pennsylvania S a n i t a r y Authority C a l i f o r n i a Toll Bridge Authority Maryland S t a t e Roads Commission ITarren, Ohio Springfield, Illinois S t a t e of Massachusetts Davenport, Iowa ' New York Thruway ^-Indiana T o l l Road Commission Metropolitan "Vater D i s t . of So. C a l . L'os Angeles School a i s t s . , Cal. Los Angeles Dept. of Water & 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 . . . n.a. Rev. n«,a. n.a. * Rev. . n.a. n.a. •Rev. Rev. n.a. Rev. Rev. Rev. Rev. n.a* n.a. 1 n.a. Rev. n.a. . . G.O. Rev. Rev. Rev. • • 6.7 100.0 5.0 .12.5 10.0 6.9 25.7 20.0 25.3 10-15.0 175 oO 30-50.0 . 6.0 21.0 315.0 ' 65.0 235.0 70.0 5.0 9.0 65.0 5.0 50,0 225.0 8-10.0 20.0 15-20.0 89.0 16.0 October 13 October li; October 19 October 20 October 20 October 26 October October October November 29 Fall Fall Fall 195k 195k 195k 195k 195k • 1954. 195k 195k 195k 195k 195k 1955 >1955 ,1955 1955 1955 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 over; State"and l o c a l government i s s u e s of 5 m i l l i o n and o v e r . " 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 . •k—Included i n t a b l e f o r f i r s t time. Exhibit F " I y i e l d s on Hew and Outstanding Public . U t i l i t y . Bonds, Rated Aa and A V j . i C i A i i b ,y j . c j - c i o 1 195)2 average 3.18 1953 average • 3M 3.25 3.39 3.1*0 - 3.13 3.79 None. *3.68 None None 3.34 *3.28 *3.30 195h- - January February March April 3.20 3.02 *2.93 2.99 ' . ' Hay 5 3 ' 6 11 20 27 June 9 16 17 2k ' 2f> J u l y lit August 18 25 . September 23 r\n1ir j 3.37 12 . . 16 1 3.78 25 11 19 17 • 16 28 : i U 19^3 - January February Karch April Hay June July August . v. September OctoberNovember December 1 / .XCX XJXg, J JLCJLU.1D Amount above • - Amount above Actual Actual (per cent) seasoned y i e l d s ( p e r : c e n t ) seasoned y i e l d s ( b a s i s points) (basis p o i n t s ) Date 29 - 6 7 i: T M one None 3.# L 3„Q8 1 3.99, i a.10 1 *i|.00 None .3.92 3.56 3.12 3.51 6 0 0 5 3.00 2.99 '• ... . 3-3U *3.20 3.05 3.10 h 3 23 kl 37. 39 : 30 29 7 2 10 3.15 3.08 3.13 3.20 3.17 / 3.3J4 3.00 3.00 3.13: 3-12 1 0 • 2 -1 .-10 ' -6 . r ' . 3.13 , . 3.06 3.15 0 -6 -1 5 1 -2 -3 -3 -V ' - -1 —6 3 *3 A i r f t ' i Survey. Except where i n d i c a t e d , the a c t u a l y i e l d f i g u r e ' and the 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 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 sane day. *—Single observation, not an average.
@FedFRASER