Full text of H.16 Capital Market Developments : April 10, 1957

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Not for Publication DECONTROLLED AFTER SIX MONTHS
H.lU

April 10, 1957

-CAPITAL MARKET DEVELOPMENTS
Large public s e c u r i t y o f f e r i n g s f o r new c a p i t a l during
the week ending April 5 t o t a l e d &?8 million f o r corporations, composed e n t i r e l y of expiration of subscription - r i g h t s , and *90 million
f o r State and l o c a l governments. The calendar f o r t h i s week i n cludes corporate o f f e r i n g s amounting to $150 m i l l i o n , State and
l o c a l government issues t o t a l i n g 1123 million and a foreign i s s u e
f o r §25 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, but minor l a s t week. Yields on U, S. Government obligations
increased one b a s i s p o i n t , while tnose f o r corporate bonds and
State and l o c a l government Baa's remained s t a b l e . Yields on State
auid l o c a l government Aaa-rated bonds declined.
A new A-rated, 30-year f i r s t mortgage e l e c t r i c u t i l i t y
issue wag r e o f f e r e d t h i s week to y i e l d U.60 per cent—15 b a s i s
points above t h a t f o r the l a s t comparable i s s u e , an o f f e r i n g made
on March 29, and 5 b a s i s points above the y i e l d f o r an o f f e r i n g of
March 20.
Stock p r i c e s - Stock p r i c e s , as measured by the SEC index
of 265 common stocks, increased 2.3 points l a s t week, closing a t
268.5 on A p r i l 5. Daily f i g u r e s show a f u r t h e r increase i n p r i c e s
on Monday and Tuesday of t h i s week.
More d e t a i l e d information concerning recent c a p i t a l market
developments i s presented i n the attached e x h i b i t s .

Business Finance and Capital, Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




HIGH-GRADE

BOND

YIELDS

\ U.S. GOVERNMENT:/»

\A>;

U. S. Govt., long-term %/
Date

Corporate
Aaa 1 /

Old s e r i e s

New s e r i e s

Spread between
State and
U. S. Govt,
l o c a l govt. (old s e r i e s ) and
Corporate!State and
Aaa J /
Aaa
1local Aaa

(Per cent)

1957 - High
Low

3.U2
2.99
3.09
2.85
3.17
2.91
3.79
3.07
3.82
3.66

March
March
March
March
April

3.66
3.66
3.67
3.66
3.66

1953 - High
195k - High
Low
1955 - High
Low
1956 - High

8
15
22
29
5

(6/19)
(1/9)
(1/8)
(V23)
(12/23)
(1/7)
(12/28)
(3/2)
(1/k)
(U/5)

3.15
2.78
2.7k
2.Ut
2.91
2.62
3.19
2.80
3.53
3.15
3.30
3.25
3.2k
3.21
3.22

(6/6)
(12/26)
(1/9)
(8/7)
(8/5)
(1/7)
(12/21)
(2/17)
(1/U)
(2/8)

n.a.

2.73
1.98
2.21
1.90
3.03 (8/5)
2.3k
2.89 (6/10) 2.05
3.39 (12/28) 3.05
2.92 (2/3)
2.17
3.05
3.1:5 (1/W
3.22 (2/8)
:2.76
3.26
3.26
3.28
3.29
3.30

2.90
2.88
2.88
2.86
2.8k

(6/25)
(1/8)
(6/10)
(9/2)
(9/8)
(5/26)
(12/27)I
(2/23)
(1/10)
(2/21)

.38
.19
.13
.32
.3k
.13
.kk
.13
.5k
.29

.8k
.30
.61
.29
.70
.5k
.68
.32
.k8
.26

.36
.kl
•k3
•k5
• .kk

• kO
.37
.36
.35
.38

2 / Weekly averages of d a i l y f i g u r e s . The old s e r i e s includes f u l l y taxable,
marketable 2 1/2 per cent bonds due or f i r s t c a l l a b l e a f t e r 12 years through
September 195$, and those due or c a l l a b l e i n 10-12 years t h e r e a f t e r ; the average
term to f i r s t c a l l of the bonds included declined from lit years i n early 1953 t o
11 1 / 2 years i n early 1956. The new s e r i e s i s comprised of the 3 per cent bond
of 1995 and the 3 1/k per cent bond of 1978-83.'
2 / Thursday f i g u r e s . Only general obligation bonds are included; average
term i s 20 years.
Note.—Highs and lows are f o r individual s e r i e s and may be on d i f f e r e n t dates
for different series. .




Date

S t a t e and
l o c a l govt.
Baa 2 /

Corporate
Baa 1 /

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

(Per cent)
1953 - High
Low
195U - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low
March
March
March
March
April

8
15
22
29
5

3.89
3.50
3.7U
3.a
3.63
3.U5
li.lil
3.58
L.50

h.k2
U.U5
U.U3

k.h2

U.U2
U.U2

(9/18)
(1/2)
(1/8)
(12/31)
(12/30)
(1/lW
(12/28)
(3/9)
(1/18)
(U/5)

.

3.79
2.96
3.32
2.93
3.26
3.02
1.22
3.20
1.22
3.90
3.99
3.99
3.97
3.93
3.93

(6/25)
(1/8)
(1/7).
(6/5)
(12/29)
(1/6)
(12/27)
(3/8)
(1/10)
(2/21) .

3.27
2.71
3.00
2.72
2.99
2.76
3.98
2.89
3.98
3.70

(.6/26)
(1/2)
(1/1)
(8/13) •
(12/30)
(1/7)
(12/28)
(2/2U)
(1/U)
(2/22)

3.85
'

y

1 / Weekly a v e r a g e o f d a i l y 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 . Only g e n e r a l o b l i g a t i o n bonds a r e i n c l u d e d ; a v e r a g e term i s 20 y e a r s .
F r i d a y f i g u r e s . Average r a t i n g o f bonds i n c l u d e d i s j
between Baa and Aj a v e r a g e terra i s 20 y e a r s .
h / Series discontinued.
N o t e . — H i g h s and l o w s 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 d i f f e r e n t s e r i e s .




STOCK

MARKET

Stock price

Trading
Common
volume 2 /
stock
(mlUlons y i e l d s
of shares) (per cent)

Stock market customer c r e d i t
Customers•
Bank
debit b a l - loans to
ances h / I"others" 5 /
(Millions of dollars)

1953 - High
195k - High
1955 - High
1956 - High
1957 - High
Low
FebruaryMarch 22
March 29
April 5

167.1
lWt.O
221.lt
156.5
270.7
217.U
295.5
257.1*

(1/2)
(9/18)
(12/31)
(1/6)
(12/30)
(1/XU)
(8/3)
(1/20)

260.3 (2/8)

2.5
0.9
3.7
1.1*
lt.6
1.5
3.1
1.5
2.7
1.6

262. It
265.1
265.1
266.2
268.5

2.0
1.7
1.6
1.7
1.9

279.2 (l/lt)

.

5.88
5.15
5.1*9
1.09
It. 23
3.59
It.13
3.65
It.28
3.91

2,ltlt5
2,055
3iU36
. 2,lt05
It,030
3,537
l*,0lt7
3,911*
. 3,903
3,82t6

1,665
1,311*
2,388
1,653
2,805
2,517
2,823
2,71*0
2,762
2,729

780
661t
1,0U8
71*6
l,2ltl
• 1,016
1,267
1,155
1,163
1,117

It. 27
It. 16
It.18
Ll6
it.13

3,81t6

2,729

1,117
1,119
1,121
1,119
n.a.

n.a.—Not a v a i l a b l e .
1 / SEC index of 265-common stocks, weekly closing p r i c e s , 1939-100; converted
to 19u7-it9"100 by Federal Reserve. The conversion f a c t o r i s 123.91.
2 / Averages of d a i l y trading volume on the New York Stock Exchange.
3/ Moody's 125 i n d u s t r i a l stocks; weekly data based on Friday.
y End of month f i g u r e s f o r member firms of the New York Stock Exchange which
carry margin accounts; excludes balances secured by U. S. Government obligations*
5 / Wednesday f i g u r e s f o r weekly reporting member banks. Excludes loans f o r
purchasing or carrying U. S. Government s e c u r i t i e s a t banks in New York and Chicago.
Weekly reporting banks account f o r about 72 per cent of loans t o others.
Note.—Highs and lows are f o r individual s e r i e s and may be on d i f f e r e n t dates
for different series.
|




Exhibit D

H.lU

Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

1957

1

Hew c a p i t a l
State and l o c a l
Corporate
1957 1
1956
I
1956
1 -1955

January February
March

e/1,039
e/1,050
e/l>3:25

579
70b
790

April
May
June

e/900

816
l,ll*U
830

U78 .
.886
687

1,066
6#
836

#7
6hk
670

July
August
September
October
November
. December
1st
2nd
3rd
iith

quarter
quarter
quarter
quarter

1 s t half
Three quarters
Year
'

- 532
h07
1,223

1,0882/
1,091

1,162V
632
900

2,073
2,789
2,571
2,929

2,165
2,052
1,911
2,695

1,862
_7A32
10,362

U, 216
6,127
' 8,821

1955

e/660
5{525
e/500

• uou
6#
390

535
312
5#

e/675

378
190
735

1*27
350
6h2

3#
199
3%

h70
2 h9
h06

61#5
311
k26

919
658
U08

1,1490
1,603
908
1,382

1,385
1,118
1,121+
1,984

3,093
It, 001
5,383

2,803
3,927
5,911

ij
;1

f / l j b b :i

Excluding finance companies 3/ j
1st
2nd
3rd
Uth
Year

quarter
quarter
quarter
quarter

e/3,21^

J

1,617 " 1,727
2,519 . 1,870
2,263 .. l , h k h
2,83U
2,551

;
;
j

9,233

I

.c/7,595

e / Estimated.
1/ Includes ^637,2 million AT&T convertible debenture i s s u e .
2 / Includes $571.5 million AT&T common stock 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 consumer finance
companies.
Note.—Details may not add t o t o t a l s due to rounding.




Exhibit E

H.Ik

Large Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(Millions of d o l l a r s ) I-Ionth

Corporate

1956 - March
April
May
June
July
August
September
October
November
December
1957 - January
February
March

State and
local government

278
395
623
185
592
217
#8
386
701
430
567
671
788

163
157
233
163
I6ii
35
18k
383
135
201
386
306
19U

Other 2/

50
20
37
35
100
50

Large Individual Issues Offered April 1 through 5
Issuer

Type 3/

Amount
Coupon
(millions Maturity rate or
of
net i n t e r dollars)
est cost

Offering Rating
yield

CORPORATE
El Paso Natural Gas Co.
Baltimore 'Gas & Elec. Co.
Southern Company

Conv. pfd. stk. 30.0
Common stk.
17.9
Common stk.
30.1

STATE AND LOCAL GOVERNMENT
G.O.
Jefferson Co., Texas
54
Los Angeles City Sch, Dist,
California
G.O,
2 0.0
State of Connecticut
Expressway rev,,50.0:
Harris Co. Navigation Dist,
. Texas
G.O.
7.0
Miami, Florida
G.O.
7.5
OTHER
| ; lone




1958-77

3.U5

2.25-3.50

A

1958-82
1962-97

3.16
3.69

2.10-3.20
2.75-3.67

Aa
A

1958-87
1959-68

3.25
3.1*2

2.20-U.00V A
2.70-3.50 A

7
H.lll

E-2

1/ Includes corporate and other security offerings of $15 million and over;
State and l o c a l government security offerings of $5 million and over.
2/ Includes foreign government and International Bank f o r Reconstruction and
Development issues.
3/ In the case of State and local government s e c u r i t i e s , G.O. denotes general
obligation; Rev,, revenue bonds; G.R., general obligations additionally secured by
f a c i l i t i e s revenues; L.L., limited l i a b i l i t y obligations secured by pledge of
designated revenues.
h/ 1986-87 maturities not reoffered.




H.ll*.

Exhibit F

Forthcoming Large Public Security Offerings f o r New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds, from Forthcoming Large Issues
During month following
date shown ,
State and Other 2/
Corporate local
govt.

Date of
computation
1956 - Mar. 30
Apr. 30
Ha;.* 31
June 29
July 31
Aug. 31
Sept. 28
Oct. 31
Nov. 30
Dec. 31
1957 - Jan. 31
Feb. 28
Mar. 29

380
568
198
137
2h7
369
315
683
136
1*76
591
7U0
1*61

132
173
332
81
131
359
162
U8
280

153
153
390

37

23
100
35
25

Subsequent to
date shown
Coi-poratel^^jotherj/
1,013
818
hk 8
567

1,096

1,202
1,009
990
U8l
»

g

811
832
9U1
690
726
958
1,197
955
979
763
618
631
862

37

23
100
35
25

Forthcoming Large Offerings, us of April 5
Issuer

Type

Amount
date
(millions Approximate
of offering
of dollars)

CORPORATE
Aluminum Co. of Canada, Ltd.
Sears Roebuck Acceptance Cdfp.
. Houston Lighting & Power Co,

S.F. deb.
Sub. deb.
Common s t k .

125.0
25.0
26.3

U. S. Foil Co.

Common s t k .

19.0

Reynolds Metals Co.

Common stk.

18.9

1st mtg. bds.
Sub. deb. &common
1st mtg. bds.
Common stk.

25.0
15.0
50.0
26. u

Capital stk.

18.7

Deb.
S.F. deb.
Deb. .

30.0
30.0
30.0

Quebec Natural Gas Corp.
Quebec Natural Gas Corp.
Transcontinental Gas Corp.
Columbia Gas System, Inc.
Babcock & Wilcox Co.
Northwestern Bell Telephone Co.
*Lone Star Gas Co.
^Northern Natural Gas Co.




April 10
April 10
April 15
(rights empire)
April 16(rights expire)
April 16
(rights expire)
April 16 April 16
April 18
April 22
(rights expire)
April 22
(rights expire)
April 2k
April,25
' April;25

Hcl4

. F-2

Forthcoming Large Offerings2 as of April 5 (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 )

CORPORATE (Cont'd)
^ P a c i f i c Great Eastern RailwayC i n c i n n a t i Gas & E l e c t r i c Co.
^National Fuel Gas Co.
Michigan Wisconsin Pipe Line Co.

. S.F. deb.
1 s t mfcg, bds.
Deb.
1 s t mtg. bds.

20.0
25.0
i5.o
25.0

April 25
May 7
May 28
1957

Ljmchburg, Virginia
Wtr.&swr. r e v .
5©0
Ohio State University
6.0
Dormitory rev.
State of Michigan
Expressway rev. 25.0
Jacksonville Expressway Authority
Rev,
kh.l
Public Housing Authorities
36.1
St. Paul, Minnesota
G.O.
6.7
•Wichita, Kansas
G.O,
8.5
Milwaukee, Wisconsin
G.O.
22.2
. Orleans Par. Sch. Dist., La,
G.O.
5.0
Philadelphia, Pennsylvania
G.O.
29.5
State of Oregon
G.O.
10.0
*Louisville & J e f f e r s o n Cos., Ky.
Sewer r e v .
8.0
New York, New York
G.O.
30.5
• S t a t e of Colorado
Highway rev.
8.6
S t a t e of C a l i f o r n i a
G.O.
80.0
•Little Rock Waterworks Commission, Ark,
Rev.
9.6
•Long Beach, California
G.O.
10.2
S t a t e of Ohio
G.O.
60,0
Jacksonville, Florida
U t i l i t i e s rev.
"30.0
" T e r r i t o r y of Hawaii
G.O.
liloO
Florida State Turnpike Authority
Rev.
185.0
Pennsylvania Turnpike Commission
Rev.
62.0
Inter-American Center Auth., Florida
Rev. '
20.0
G.O.
New York State Thruway Authority
50.0
Oklahoma Turnpike Authority
Rev,
65,0

April 8
April 8
April 9
April 9
April 10
April 10
April 16
April 16
April 17
April 17
April 18
April 23
April 23
A p r i l 2h
April 2h
April 29
April 30
May 1
May 9
May lit
July 1
1957
1957
1957
1957

. STATE AND LOCAL GOVERNMENT

OTHER
High Authority of t h e European
Coal and S t e e l Community
•British Columbia Power Commission

Bonds
S.F, deb.

25.0
25.0

April 10
April 25

*—Included i n t a b l e f o r f i r s t time#
1 / Includes corporate and other issues of &15 million and over; S t a t e and
. local"government i s s u e s of 95 m i l l i o n 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 .
Note.—Deletions f o r reasons other than sale of i s s u e : None,




Exhibit G
Yields on New and Outstanding
,
Electric Power Bonds, Rated Aa and A - /
Date
1952 - 195*6
High
Low
1956 - January
February
March
April
May
July
August
September
October 10
31
November 21
December 6
12
1957 - January 8
16 .
18
22
2k
February 5
19
27
March 6
12
20
29
April 3

Aa-rated offering yields A-rated offering yields
Amount above
Amount - above
Actual
Actual
seasoned yields
seasoned yields
(per cent) (basis points) (per cent) (basis points)
It. 30(12/12/%6)
2.93(3/3l/5W

62
-3

h.58(12/6/56)
3.00(3/17/51)
None

None
*3.15
3.28
*3.77
*3.53
*3.52
3.66
*lt.07
k.13

3
11
. ho
19
18
29
52
53

U. 20
U- 30

kQ
52

a. 30

hi'

a. 50

62

U.U3

56

h.ho
h.29
U.25
U* 22

. 53
hS
ue
U3

U. 29

50

70
-15.
- 6
15
26 .
28
27
28 .
h3

3.U5
3.61
3,76
*3,75
*3.82
I A.oo
None
h.ho

63
70

k.58

1.67

70

li.56

57

U.Iil
L58
ii.55
h.hS

35.
52
19
U3

'

*—Single observation, not an~average,
1/ Covers only 30-year f i r s t mortgage bonds, as reported in Moody's Bond
Survey. Except where indicated, the actual yield figure and the amount above
seasoned yields are averages of offerings during the indicated period and of
the differences between these new offering yields and yields on seasoned issues
of similar quality f o r the same day. Average maturity f o r the seasoned issues
varies from 26 to 28 years.