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Not f o r P u b l i c a t i o n
DECONTROLLED AFTER SIX MONTHS
H.lU

'

October 27, 1 9 #

CAPITAL MARKET DEVELOPMENTS
Corporations o f f e r e d 75 m i l l i o n d o l l a r s and S t a t e and
l o c a l governments f l o a t e d 5>8 m i l l i o n d o l l a r s of l a r g e i s s u e s f a r
new c a p i t a l during the week ending October 21. Large i s s u e s - e x pected t h i s week t o t a l
m i l l i o n d o l l a r s f o r S t a t e and l o c a l governments, an amount which i n c l u d e s proceeds from the I l l i n o i s Turnpike Authority o f f e r i n g of h l $ m i l l i o n and the Public Housing Autho r i t i e s i s s u e of 122 m i l l i o n . The c o r p o r a t e calendar of l a r g e o f f e r ings t o t a l s £8 m i l l i o n d o l l a r s .
The I l l i n o i s S t a t e T o l l Highway Commission sold the bO-year
turnpike i s s u e w i t h a coupon of 3 3/k per c e n t . As a r e s u l t of a
l e g a l a c t i o n which developed on Tuesday opposing the s a l e of the
bonds, the S t a t e must c l e a r the bonds of a l l l i t i g a t i o n within
days, with a provision f o r a l^-day extension, or t h e underwriters
w i l l r b e f r e e d of a l l o b l i g a t i o n t o purchase t h e bonds. The bonds
were r e o f f e r e d a t par by t h e underwriters contingent on the c l e a r ance.
Bond y i e l d s - Outstanding corporate and S t a t e and l o c a l
government high-grade bond y i e l d s decreased s l i g h t l y while Treasury
o b l i g a t i o n y i e l d s ' r o s e s l i g h t l y during the week ending October 21.
A moderate decrease occurred in S t a t e and l o c a l government Baa bond y i e l d s . Yields on corporate Baa and S t a t e and l o c a l
government revenue bonds remained s t a b l e .
Daily f i g u r e s i n d i c a t e d t h a t U. S. Government bond y i e l d s
dropped on Monday and remained steady on Tuesday of t h i s week.
The y i e l d on a new Aa-rated 30-year f i r s t mortgage e l e c . t r i e power bond o f f e r e d l a s t week was seven b a s i s p o i n t s higher and
the y i e l d cnan A-rated bond was seven b a s i s p o i n t s lower than y i e l d s
on outstanding bonds of somewhat s h o r t e r m a t u r i t y . This spread f o r
A-rated i s s u e s appears to have changed s u b s t a n t i a l l y since August
and September, t h o u ^ t h e r e have been only t h r e e such i s s u e s s i n c e
e a r l y June.
Stock p r i c e s - Stock p r i c e s , a s measured by t h e SEC index
of 265 common s t o c k s , rose 6.9 p o i n t s l a s t week i n a moderately small
volume of t r a d i n g . P r i c e s rose on Monday of t h i s .week but decreased
on Tuesday and Wednesday according t o d a i l y indexes.

Business Finance and Capital 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 the Federal Reserve System.




. EXHIBI1 A

H I G H - G R A D E B O N D YIELDS
Weekly

Per c e n t p e r a o n u m

Corporate
Aaa 3/

U. S. Govt,
long-term 2 /

Spread between
State and local
U. S. Govt, and
govt., Aaa 3 /
Corporate State and
Aaa
local Aaa
(Per cent)

3.03
2.91
3.42
2.99
3.09
2.85
3.3it
2.91

(lA)
(2/15)
(6/19)
(1/9)
(1/8)
(h/23)
(9/9)
(1/7)

3.13
3.12
3.12
3.11
3.10

2.79 (12/27)
2.78 (12/26)
2.7U (V?)

2.00 (10/23).
1.65 (5/1)
2.73 (6/25)

1.98 (1/8)
2.21 (6/10)

a2.62a (1/7)
a

1.90 (9/2)
2.3U (9/8)
2.05 (5/26)

,2.89
2.86
2.83
2.81
2.82

2.27
2.27
2.27
2.25
2.2k

.37
.19
.38
.19
.1*3
'11
.13

s

1.02

a.29

.*5U

.62
.29
.30

.28

1

1/ Weekly average of dally 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 11-11; years.
3 / Thursday f i g u r e s . Only general obligation bonds are included; average
term I s 20 years.
Note.—Hig&s and lows are for individual series and may-be on d i f f e r e n t dates

or differeat series.
Digitized for fFRASER


EXHIBIT B

L O W E R - G R A D E B O N D YIELDS
Weekly

Per cent p e r

\

- l 3.5
STATE AND LOCAL GOVT.

1952

1953

1954

Corporate
Baa y

1955

State and
local govt.
Baal/

State and
local govt,
rev. 2 /

(Per cent)
1552 - High
Lor
1953 - High
Lor
195U - High
Lor
1955 - High
September 23
September 30
October 7
October 1U
October 21

3.63
3.U8
3.69
3.50

U
3.58

ii

(VI.)
(5/16)
(9/18)
(1/2)

l

X

2.98 (10/23)
2.48 (U/17)

S W
I f , 1S2!
3.25 (9/22)
3.02 (1/6)

lit
3.23

3.22

3.20

2.69 (12/19)
2.27 (lt/25)

3.27 (6/26)

2.71 (1/2)
3.00 (lA)
2.72 (8/13)
i:?i
2.90
2.90

.

2.90

2.89
2.89

V Weekly average of daily f i g u r e s . Average term of bonds
included i s 25-26 years.
2 / Thursday f i g u r e s . Cbly general obligation bonds are
included} average term i s 20 years.
2 / Friday f i g u r e s . Average rating of bonds included i s
between Baa and A; average term i s 20 years.
Note.—Higfcs and lows are f o r individual series and may
be on d i f f e r e n t dates f o r d i f f e r e n t s e r i e s .




STOCK MARKET

STOCK MARKET CREDIT

Stock p r i c e
index y

stock
(millions yields 2 /
of s h a r e s ) (Per c e n t )

Stock market cust<m e r c r e d i t
Customers*
debit b a l ances y
"others" £ /
( M i l l i o n s of d o l l a r s )

1952 - Higi
1953 - High
Lor
195U - High
1955 - High
Lew
September
October 7
October lit
October 2 1

165.3 (12/26)
151.7 (10/21;)
167.1 (1/2)

i a . 0 (9/18)

221.1*
156.5
269.7
217.lt

(12/31)
(1/6)
(9/23)
(1M)

1§:I

251.2
2L5.9
252.8

2.0
0.9
2.5
0.9
3.7
14
1*.6
1.5

5.77
5.13
5.75
5.15
5.33
1*.20
It .22
3.78

1,986
1,801*
2,145
2,055
3,W6
2,105
3,966
3,537

1,332
1,2 i a
1,665
1,3%
2,388
1,653
2,805
2,517

656
552
780
661*
1,01*8
71*6
1,177
1,018

1.8
2.9
2.1
2.1*
1.7

3.91
3.93

3,865
3,966

2,710
2,805

1,155
1,161
1/1,11*8
1,159

r / Revised
n.a.—Not a v a i l a b l e .
V SBC 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; converted
t o 1957-1*9-100 b y 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 vtiluae on the New Tork Stock Exchange.
V 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 a r member f i r m s of t h e New York Stock Exchange which
c a r r y margin a c c o u n t s ; excludes b a l a n c e s secured by D. S . Government o b l i g a t i o n s .
£ / Wednesday f i g u r e s f o r weekly r e p o r t i n g member b a n k s . Excludes a l l loans
f a r p u r c h a s i n g or c a r r y i n g U. S . Governments f a 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 Ttrk and Chicago a r e excluded. Weekly r e p o r t i n g banks account f o r
about 72 p e r c e n t of l o a n s t o o t h e 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
for different series.




H.llt

Exhibit D
Corporate and S t a t e and Local Government
Security Offerings and Placements
(In millions of d o l l a r s )

January
February
March
April
May
June
July
August
September

y

New c a p i t a l

1955

Corporate
1 1954T I

1953

1955

246
436
1,261

547
426
635

623
#3
666

535
312
538

3#
411
565

390
360
426

49k
903
697

497
6^6
842

779
675
1,123

427
350
641

734
748 .
. 853

329
649
434

531

909
335
747

4%
325
753

470
e/%35
eZ390

279
261
649

519
259
475

1,003
290
6o4

577

e/900

594
423
877

453
408
774

1,608
1,995
1,991
1,896
7,490

1,912
2,578

1,385
1,418
S/1,095

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

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

i ©

October
November
December

e/l,2$0

1 s t quarter
2nd quarter
3rd quarter
4th q u a r t e r
Year

2,21(3
2,09k
3/2,030

IS

2 ^ 2 /
8,li95

Stabe and l o c a l
1 1954
1

1953

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

1,791
1,912

1,527
1,927
1,911
1,792
7,158

1,669
1,991
1,223
2,344
7,227

1/ Includes 637,2 m i l l i o n d o l l a r AT&T convertible debenture i s s u e .
2 / Includes 602 0 $ m i l l i o n d o l l a r AT&T c o n v e r t i b l e debenture i s s u e .
3/• T o t a l 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 p e r s o n a l f i n a n c e
companies.
Note,—Details may not add t o t o t a l s due t o rounding.

I




H.lU

Exhibit E
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 . Treasury) 1/
Proceeds of Large I s s u e s Offered
(MLllicns of d o l l a r s )
Corporate

Month

195h - September
October
Novenib er
December
1955 - January
February
March
' April'
May

36k
k33
0
121
Htl
63
750
173
h83

July
August
September

101
1+05
328

S t a t e and
l o c a l government
li55
388
268
6#
3hl
107
337
238
152
h03
278
65
23k •

Other 2 /

30
35
15

.

1
Large I n d i v i d u a l Issues Offered October 1 through 21

Issuer

Type 3j

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

CORPORATEPublic Service E l e c t r i c
•and Gas
Deb.
35.0
American T e l . & T e l .
Conv. deb.
637.2
Southern B e l l T e l . & T e l .
Deb.
30.0
Burlington I n d u s t r i e s
Sub. conv. deb. 30.0
N.Y. S t a t e E l e c t r i c & Gas 1st mtg9 bdso 15.0

-

1975
1967
1995
1975
1985

3
3
3
k
3

1/2
7/8
1A
iA
3/8

3.35
3 7/8
3.20
ii.25
3.25

.A
Aa
Aaa
- Ba
A

2.25-2.15
2.10
1.60-2.95
2.35-2.50
2.15-2.85

A
A
A
Aaa
A

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 .
N.Y. S t a t e Thruvray Auth.
Orleans P a r i s h , La.




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

liO.O
8.6
7.0
50.0
6.0

1956-75
1966-67
1957-95
1985-95
1961-95

2.5k
2.19
2.70
2.52
2.80

H.Ik

,

E-2

Large I n d i v i d u a l I s s u e s Offered October 1 through 21 (Cont'd)

Issuer

Type 3/

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

Rating

STATS AND ICCAL GOV5RNL5ENT
(Cont'd)
P h i l a d e l p h i a , Pa.
J e r s e y C i t y Sewerage Auth,
Coming, Nevr York

GeO.
Rev.
G.O.

39.9
13.0
5.1

1957-81
1959-93
1956-81;

2.58

3.35
2.27

1.80-2.65

2.35-3.35
1.1:5-2.35

A

Baa
Aa '

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 m i l l i o n d o l l a r s 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 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 .
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 general
o b l i g a t i o n ; Rev c , 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 secured by
f a c i l i t i e s revenues; and, 1 . 1 . 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
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
During month following
Subsequent t o
date shown
date shown
S
t
a
t
e
and
S t a t e and Other 2y
Corporate
Other 2 / Corporate
l o c a l govt»
l o c a l govt.

Date of
computation
19$k - S e p t . 30
Oct. 29
Nov. 30
Dec. 31
1955— J a n . 31
- . Feb. 28
Mar. 31
Apr. 29
May ; 31
June 30
July 29
Aug. 31
S e p t . 30

3k3
15
9k
m
16
710
211
1425
160
67
1*07.
222
805

383
L36
661
567
682
52lt
208
116
339
3a
100
184
82*3

30

..—

.

2,158
1,957
2,682
2,1a
1,961
1,978
2,009
1,917
1,861
1,815
2,018
1,971
2,205

m
135
2i|6
216
k22
1,395
922
1,31a
850
830
1,135
920
909

•

30
30
35

—

Forthcoming Large O f f e r i n g s , as of October 2 1
Issuer

Type

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

CORPORATE

Common stock
1st mtg. b d s .
Deb.
Deb.
1st mtg. bds
Common stock
Common stock
Bonds
Deb.

October 25
October 26

ONOOOOOOOO

Pfd. stock
1st mtg. b d s .

OO

P a c i f i c Gas and E l e c t r i c
Long I s l a n d Lighting
Southern New England Telephone
and. Telegraph
United Gas
New England Telephone & Telegraph
•^National Tea Company
^Michigan Consolidated Gas
C ommonvrealth. Edis on
Southern Co.
Southern C a l i f o r n i a Gas
New J e r s e y B e l l Telephone

October 28
November 9
November 15
November 15
November 16
November 16
November 22
November
December lU

STATE AND LOCAL GOVERNMENT
I l l i n o i s Turnpike Authority
Public Housing A u t h o r i t i e s
Cleveland, Ohio




Rev.
Rev.

U5.0
122.3
9.0

October 25
October 26
October 27

H.lh

F-2
Forthcoming Large Offerings, as of October 21 (Cont'd)
Issuer

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)
Florida S t a t e Board of Education
S t a t e of California
*Port of New Orleans, Louisiana
^Hamilton County, Ohio
Dallas, Texas
S t . Louis Bd. of Education, Missouri
Onondaga Go. Water Authority, N. Y. .
T e r r i t o r y of Hawaii
Commonwealth of Massachusetts
Los Angeles, C a l i f o r n i a
S t a t e of Colorado
C a l i f o r n i a Toll Bridge Authority
Connecticut Expressway
Inter-American Center Auth., F l a .
Texas Turnpike Company
Michigan Turnpike Authority
C a l i f o r n i a Toll Bridge Authority
Louisiana Turnpike Commission
Oklahoma Turnpike Authority'
Pennsylvania Turnpike Comission
Washington S t a t e Toll Bridge Auth.

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

10.6
60.0
10.0
5.7
10.0
6.5
12.6
7.5
159.9
20.0
8.0
h6o0
100.0
25.0
137.0
186.0
235.0
100.0
11+6.0
62.0
227.0

November
November
November
November
November
November
November
November
November
December
December
December
1955
1955
1955
1955-56
1955-56
1955-56
1955-56
1955-56
1956

1
2
3
3
10
15
15
16
16
6
6
13

OTHER
None
!
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 time'.
1 / Includes corporate and other i s s u e s of 15 million d o l l a r s and over; State
and l o c a l government issues of 5 million and over.
2 / Includes f o r e i g i 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 .

#



It)
H.14

Exhibit G
Yields on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /
Date

Aa-rated o f f e r i n g f 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
(per cent) seasoned yields (per cent) seasoned y i e l d s
(basis points)
(basis points)

1952 average

3.16

13

1953 average

3.46

16

1954 average

.

3.35

12

3.78

26

3.03

3

3.12

-3

1954 - January
February
Mnrch •
April
May
June
July
August
September
October
November
December

3.19
3.01
*2.93
2.99
3.00
*3.00
None
None
3.02
3.03
None
None

6
-1
0
5

*3.35
*3.20
3.05
3.10
3.14
3.14
. *3.13
3.11
*3.10
3.10
None
3.11

2
-1
-10
-6
0
-2
-1
-1
-3
-2

1955 - January •
February
March
April
. May
June
July

*3.15
*3.14
*3.17
None
*3.22
*3.20
None

August 31
September li;
21
October 19
20

3.32
3.25

-

k

1

3
.3
—

13
7
8
10
7
—

10
7

.

None
*3.23
3.29
3.31
3.35
*3.30
None

0
9
14
16
14
10
—

3.57
3.50.

30
23

3.25

-7

2 / Covers only 30-year f i r s t mortgage bonds, as reported in Moody's Bond
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 are averages of o f f e r i n g s during the indicated period and of
the d i f f e r e n c e s between these 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 similar q u a l i t y f o r the same day. The number of new i s s u e s included i n the
monthly averages v a r i e s from 2 t o 4 exccpt f o r October 1954 when 6 issues were
included. Average maturity f o r the seasoned issues v a r i e s from 26 t o 28 y e a r s .