Full text of H.16 Capital Market Developments : July 7, 1955
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
A : , ' Hot for" Publication • DECONTROLLED AFTER SIX M0NTwtJ H.lU . . ; July 7, 1955 CAPITAL L-ARKET DEVELORIEITS 1 New c a p i t a l volume small - S t a t e and l o c a l government security i s s u e s with proceeds of 66 million d o l l a r s and one 2£ m i l l i o n d o l l a r construction company offering: made up the t o t a l of l a r g e i s s u e s publicly f l o a t e d f o r new c a p i t a l during the week ending July 1„ Only one l a r g e issue i s scheduled f o r o f f e r i n g t h i s week—a > million dollar State and l o c a l government i s sue• Bond ]n.elds - Yields cn U. S. Government long-term obligations increased t h r e e basis points ard State and l o c a l government Aaa bond y i e l d s rose f i v e b a s i s points l a s t week. S t a t e and l o c a l government Baa and revenue bond y i e l d s rose one and f o u r basis points respectively. Corporate Aaa and Baa y i e l d s remained steady. No f u r t h e r change was indicated so f a r t h i s week i n t h e daily f i g u r e s f o r corporate and Treasury bond y i e l d s . The l a t e s t increase in State and l o c a l y i e l d s appears t o be the r e s u l t of the e f f o r t s of dealers t o reduce t h e i r large inven- , t o r i e s by price, cutting i n the fade of ' a heavy schedule of new i s s u e s . Each of t h e bond y i e l d s e r i e s mentioned above i s c u r r e n t l y a t the highest l e v e l of the y e a r . The present- levels of the S t a t e and l o c a l bonds were previously reached in r n i d - 1 9 ^ . In t h e case of corporate Aaa and Baa bonds, y i e l d s have not been t h i s high since January and Larch 195h r e s p e c t i v e l y . Treasury y i e l d s were higher l a s t week than in any week since December 153>3Stock prices increase - The SEC index of 26£ common stocks r o s e again l a s t week t o a new high of 2S3 =6 in a trading volume averaging 2.3 million shares a day. Daily f i g u r e s i n d i c a t e sharp increases in p r i c e s on Tuesday and Wednesday of t h i s week. liore d e t a i l e d information concerning recent c a p i t a l market developments will be found i n the attached e x h i b i t s . Business Finance and Capital Larke.ts Section, Division of Research and S t a t i s t i c s , Board of Governors of the Federal Reserve System. ' ( H I G H - G R A D E BOND YIELDS Weekly CORPORATE A e U. S. GOVERNMENT STATE A N D LOCAL GOVERNMENT A n a . Corporate Aaa 1 / U. 8. Govt, long-term 2 / State and local govt., Aaa 3/ Spread between U. S. Govt and Corporate(state and Aaa local laa (Per cent) 1952 - High. low 1953 - High Low 195U - High Low 1955 - High Low | June June June June July 3.03 2.91 3.U2 2.99 3.09 2.85 3.05 2.91 OA) (2/15) (6/19) (1/9) (1/8) (U/23) (7/1) (1/7) 2.79 2.56 3.15 2.78 2.7k 2.kk 2.81 2.62 (12/27) (5A7) (6/6) (12/26) (1/9) (8/7) (7/1) (1/7) 2.00 (10/23) 1.65(5/1) 2.73 (6/25) 1.98 (1/8) 2.21 (6/10) 1.90 (9/2) 2.1k (6/30) 2.05 (5/26) .37 .19 .38 .19 .k3 .32 .3k •2k 1.02 .71 .8k .30 .61 .29 .70 .5k 3 10 17 2k 1 1 3.05 2.06 2.7k .68 .31 1 3.0k 2.7k 2.07 .30 .67 1 3.05 2.08 2.75 .30 .67 | 3.05 2.78 2.09 .27 .69 | 3.05 2.81 2.1k ' .2k . .67 I 1/ Weekly average of daily figures.Average term of bonds included i s 25-26 years. •s. 2/ Weekly average of daily f i b r e s ; old series. Average term to f i r s t c a l l of bonds included i s 13-lk years. 3 / Thursday figures. Only .general obligation bonds are included; average term Ts 20 years. Note.—Highs and lows are for individual series and may be on different dates for different series. 1 . EXHIBIT B L O W E R - G R A D E B O N D YIELDS Weekly """ Per cent p e r a n n u m STATE 1953 Corporate Baa 1 / 1954 1 | State and local govt. Baa 2/ State and local govt, rev. 3/ (Per cent) 195>2 - High Low 1953 - High Low 195k - High Low 1955 - High Low June June June June July 3 10 17 2U 1 3.63 3.U8 3.89 3.50 3.7U 3.UU 3.51 3.U5 , 3.5b 1 3.50 3.51 3.51 3.51 OA) (5/16) (9/18) (1/2) (1/8) (12/31 (7/1) (1M) 2.98 2.U8 3.79 2.96 3.32 2.93 3.11 3.02 3.06 3.06 3.07 3.10 3.11 (10/23 (U/17) (6/25) (1/8) (1/7) (8/5) (6/30) (1/6) 2.69 2.27 3,27 2.71 3.00 2.72 2.8k 2.76 (12A9) (U/25) (6/26) (1/2) (1A) (8/13) (7/1) (1/7) 2.79 2.79 2.80 2.80 2.8U 1/ Weekly average of daily figures. Average term of bonds included i s 2$-26 years. ' 2/ Thursday figures. Only general obligation bonds are inclucfed j average term i s 20 years. 3/ Friday figures. Average rating of bonds included i s between Baa and Aj average term i s 20 years. Note.—Highs and lows are for individual series and may for different series. be on different dates ; STOCK MARKET Stock price index 1 / ~ I Trading I Connon I volume 2 / I stock I ICustomers1I Bank ' I(millions (yields 3 / Total (debit b a l - loans to I of shares) I (per cent) I | ances h / I "others" 5/ (Millions of dollars.) 1952 - High Low 1953 - High Low 195U - High Low 1955 - High Low May June June 2U July 1 165.3 151.7 167.1 lhU.O 221. U 156.5 253.6 217.U (12/26) (10/2U) (1/2) (9/18) (12/31) (1/6) (7/1) (1/Hi) i 233.3 ! 2UU.5 2U7.U 251.1 253.6 2.0 0.9 2.5 0.9 3.7 1.U U.6 2.0 5.77 5.13 5.75 5.15 5.33 U. 20 U. 22 U.12 1,986 1,80k 2,UU5 2,055' 3,U36 2,U05 3,787 3,537 1,332 l,2lil 1,665 1,31U 2,388 1,653 2,70U 2,517 2.2 . 2.7 2.7 2.7. 2.3 U.Uv 3,787 2,681 656 552 780 66U 1,0U8 7U6 1,163 1,018 1,103 1,153 1,163 1/ SEC index of 265 common stocks, weekly closing p r i c e s , 1939-100; converted to 19E7-U9*100 by Federal Reserve. The conversion f a c t o r i s 123.91. 2 / Averages of daily trading volume on the New York Stock Exchange. 3 / Moody's 200 common stocks; end of month f i g u r e s . %J End of month figures f o r member firms of the New York Stock Exchange which carry margin accounts; c r e d i t extended on money borrowed f o r carrying U. S. Government obligations. 5/ Wednesday figures f o r weekly reporting member banks. Excludes a l l loans for purchasing or carrying U. S. Governments f o r 1952; since 1953 only these loans at banks in New York and Chicago are excluded. Weekly reporting banks account f o r about 72 per cent of loans to others. n.a.—Not available. ^ Note.—Kighs 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 d i f f e r e n t s e r i e s . H.lU Exhibit D Corporate and S t a t e and Local Government S e c u r i t y O f f e r i n g s and Placements (In millions of d o l l a r s ) 1955 Corporate 1 1952* 1 January February •March. 546 436 • 1,261 426 635 April Hay June e/500 e/900 e/600 July August September e/500 October November. December 1st quarter 2nd q u a r t e r 3rd q u a r t e r 4th q u a r t e r Year 2,243 e/2,000 New c a p i t a l 1953 1955 S t a t e and l o c a l 1 1954 1 1953 390 360 426 623 #3 #6 535 312 538 396 411 565 497 65 6 842 779 675 1,123 427 e/350 ^630 734 748 853 329 649 434 909 335 747 483 325 753 e/600 279 261 649. 519 259 475 ' 594 423 877 453 408 774 1,372 2,334 1,188 1,894 6,7# 1,176 1,412 1,253 1,636 5,477 . 1,003 290 6^ 577 42? 1 / 1,438 y 1,608 1,995 1,991 1,896 7,490 1,912 2,578 1,385 e/'l,405 8,495 Excluding f i n a n c e companies 2 / 1st quarter 2nd q u a r t e r 3rd q u a r t e r 4th quarter Year 1,791 e/l,925 1,527 1,927 1,911 1,792 7,158 1,669 1,991 1,223 2,344 7,227 • 2/ Total net? 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. e / Estimated. / Note.—Details may not add t o t o t a l s due t o rounding. H. lit - Exhibit E Large Public S e c u r i t y I s s u e s f o r ' Nevr C a p i t a l (Other than U. S. Treasury) 1 / Proceeds of Largo I s s u e s Offered (l,&llions of d o i r a r s ) Month —1 1 S t a t e and j l o c a l government 1 - : . Other• 2-/ • Corporate 195U - June July August September October November December 1 9 # - January February March April May June 1 1 j j 603 '92 : 86 U55 338 268 689 3U1 107 337 2# 152 U09 3# hll 75 36U 133 0 121 lUl 63 750 175 L83 182 30 35 15 Large I n d i v i d u a l I s s u e s Offered During.June Issuer Type 3 / ! . . Coupon t - Amount 1 (millions Maturity • r a t e or {Offering n e t i n t e r - j y i e l d jRating of e s t cost dollars) CORPORATE Virginia E l e c t r i c and Pov;er Company Southern C a l i f o r n i a Edison Southern Nevr England Telephone & Telegraph Oklahoma Gas & E l e c t r i c Consolidated Natural Gas Baltimore Gas & E l e c t r i c People's Gas Light & Coke Merritt-Chapman and Scott Corp. 1st & ref. bds. 25.0 1985 3.25 3.20 Aa Conv. deb. 41.0 • 1970 3.25 3.25 A Deb. 1st mtg. bds. Common s t k . Common s t k . Common s t k . 20.0 15.0 22.9 17. h 15.7 1989 1985 3,25 3.25 3. 20 3.20 Aa Aa Conv. deb. 25.0 1975 li.50 U.50 Ba . H. lit . E-2 Large I n d i v i d u a l Issues Offered During June (Cont'd) Issuer Type 3 / j Amount j (milUons i dollars)i turit ! Coupon y ! r a t e or [ o f f e r i n g Rating net i n t e r -• yield I est cost STATE AMD LOCAL GOVERNMENT Houston, Texas Nevr York City Housing Authority S t a t e of North Carolina Baltimore, Maryland Galveston Co. Navigation D i s t r i c t , Texas Minneapolis, Minnesota F l o r i d a Turnpike Auth. Texas Turnpike Authority Kansas City, Kansas Prince George»s Co., Md. Dade County Port Auth., Florida Cleveland, Ohio Tacoma, Washington S t a t e of Connecticut Pennsylvania General . S t a t e Authority D a l l a s , Texas . Maryland S t a t e Roads Commission Nassau County, New York Dayton,. Ohio, School Dist. .A G.O. 12. 5 1956-80 2.L7. 1.20-2.65 G.R. G.O. G.O. 27.2 • 11,0 2U.7 1958-03 1957-75 1956-8U 3.01 1.96 2.15 1.75-2.78 1.20-2,05 1.05-2.30 A Aa Aa G.O. G.O. Rev. Rev. Rev. G.O. 6.0 5.2 7U.0 58.5 7.0 6.0 1957-91 1956-75 1995 1980-95 1956-70 1956-75 2.93 1.U0-3.00-' 1.15-2.10 3.25 2.80-2.90 1.15-2.10 1.25-3.05 A Aa 3.32 2.93 2.06 2.77 Aa Baa Rev. G. 0. Rev. G.O. 12.1 13.2 15.0 20.0 1979 1956-75 1959-89 1958-61 3,23 2, Oi* 3.02 1.62 3.15 1. 20-2.20 1.85-3.10 l.Uo-ic 63 Aa Baa Aaa L.L. G. 0. 5o.o .10.0 1958-82 1956-75 " 2.70 2.UU 1.70-2.75 1:10-2.50 L.L. G.O. G.O. 25.0 19.2 12.0 1956-70 1956-85 1956-80 2. Si 2.78 2,37 1. 30-2. 50 l.UO-2.90 1. 20-2.50 '— A Aa . A Aa OTHER None ~ 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 £ m i l l i o n and over. £ / Includes f o r e i g n government and I n t e r n a t i o n a l ^ank f o r Reconstruction and Development i s s u e s . 3 / I n 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 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 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 o b l i g a t i o n s secured by pledge of designated revenues. h / Subject t o award. 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 S t a t e and Other 2 / Corporate l o c a l govt. Date of computation 19$k - June 30 July 30 Aug. 31 Sept. 30 Oct. 29 Nov. 30 Dec. 31 1955 - Jan. 31 Feb. 28 Mar. 31 .Apr. 29 May 31 June 30 336 100 33U 3h3 15 9k 181 16 710 211 k# 160 67 • 86 SU 300 383 1*36 661 567 682 &k 208 116 #9 3a __ 30 Subsequent t o date shorn S t a t e and Other 2 / Corporate l o c a l govt. 532 303 608 klk 135 2k6 216 k22 1,395 922 1,32a850 830 1,524 1,553 1,876 2,158 1,957 2,682 2,1kk 1,961 1,978 2,009 1,917 1,861 1,815 30 30 35 Forthcoming Large Offerings, as of July 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 I l l i n o i s Bell Telephone *Pacific Finance . American Natural Gas Goodyear Tire and Rubber W e s t e r n Union Telegraph American Telephone and Telegraph Southern California Gas Freedom Insurance Co, 1st mtg* bds Deb. Common stock Common stock Conrnon stock Conv, deb. Bonds Common stock 30.0 20.0 37.0 50.0 25.0 650.9 liO.O 22.0 G .0. G.R. LoL. L.L. 5.1 125.0 15.0 5.1 July 12 .July 20 ' July 21 . August 8 • • August 8 1955 1955 1955 STATE AND LOCAL GOVERNMENT Tulsa, Oklahoma New York State Thruway Alabama Highway Authority Wayne County, Michigan J ul y July July July 6 12 12. 12 H.li+ F-2 Forthcoming Large O f f e r i n g s , as. of J u l y 1 ( C o n t ' 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 AND LOCAL GOVERNMENT ( C o n t ' d ) ^ • L o u i s v i l l e , Kentucky P i e r c e C o . , Wash., Tacoma Sell. D i s t , S t a t e of Ohio P u b l i c Housing A u t h o r i t i e s -^Chicago, I l l i n o i s •x-Los Angeles, C a l i f o r n i a -x-State of New Mexico ^Norfolk, Virginia Denver, Colorado C o n n e c t i c u t Expressway I n t e r - A m e r i c a n Center A u t h . , F l a . Michigan Turnpike A u t h o r i t y S t a t e of Louisiana I l l i n o i s - Turnpike AuthorityTexas Turnpike Company Springfield, Illinois Allegheny County, P e n n s y l v a n i a , Sanitary Authority C a l i f o r n i a T o l l Bridge A u t h o r i t y J e r s e y C i t y Sewerage A u t h . , H. J . North C a r o l i n a Turnpike Authorijr ' Rev. GoO. Rev. 8.0 8.3 £2=0 121.5 .22.3 25.0 lil00 5,0 12.0. 100.0 60.0 186.0 80,0 390,0 Wxo 9.0 — n.a. n.a. n.a. • n.a. • n.a. Rev. Rev. Rev. n.a. Rev. Rev. n.a. Rev. Rev. Rev. n.a„ • . 95.0 235.0 16.0 200.0 • J u l y 12 J u l y lit J u l y 20 J u l y 20 J u l y 26 J u l y 26 J u l y 26 J u l y 26 J u l y 28 Summer 1955 1955 1955 1955 19# 1955 , 1955 " 1955 1955 1955 OTHER Ifone 1 / I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of 15 m i l l i o n d o l l a r s and o v e r ; 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 o v e r . 2 / I n c l u d e s 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 R e c o n s t r u c t i o n and Development i s s u e s , • n.a.—Not available. *—Included i n t a b l e for f i r s t time.