Full text of H.16 Capital Market Developments : December 1, 1954

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

H.lii

December 1 , 195U

CAPITAL MARKET DEVELOBilENTS
Small volume o f new s e c u r i t y i s s u e s l a s t week - Two l a r g e
S t a t e and l o c a l government i s s u e s with t o t a l proceeds~of 33 m i l l i o n
d o l l a r s were o f f e r e d during the week Ending November 26; no p u b l i c
corporate o f f e r i n g s over If? m i l l i o n d o l l a r s were f l o a t e d f o r new
c a p i t a l . No l a r g e corporate o r S t a t e and l o c a l i s s u e s a r e ' s c h e d u l e d
f o r o f f e r i n g t h i s week.
Refunding programs - P u b l i c S e r v i c e Company of New Hampshire
s o l d 12 m i l l i o n d o l l a r s of
per cent f i r s t mortgage bonds on November
30 f o r t h e purpose of refunding two bond i s s u e s w i t h higher i n t e r e s t
r a t e s . The n e x t day a 15 m i l l i o n d o l l a r f i r s t mortgage bond o f f e r i n g
was i s s u e d by Laclede Gas Company t o r e t i r e two bond i s s u e s , one of
them p r i v a t e l y p l a c e d i n J u l y 19$ 1 , the o t h e r p u b l i c l y o f f e r e d i n
March 19h$*
pipe
will
sold
bond

Tennessee Gas Transmission Canpany w i l l o f f e r f i r s t mortgage
l i n e bonds t o t a l i n g 125 m i l l i o n d o l l a r s on December 8 . Proceeds
be used i n p a r t to r e f i n a n c e almost 93 m i l l i o n d o l l a r s of bonds
i n 19$2 and 1953• The balance w i l l be used to repay short-term
l o a n s and f o r c o n s t r u c t i o n ,

December outlook - The volume o f S t a t e and l o c a l government
s e c u r i t y i s s u e s l o r new c a p i t a l during December i s e s t i m a t e d a t 775
m i l l i o n d o l l a r s , the same a s i n December 1953. The t o t a l f o r the
f o u r t h quarter i s now e s t i m a t e d a t 1 , 7 8 5 m i l l i o n d o l l a r s , an i n c r e a s e
of almost 10 per c e n t above t h e f o u r t h quarter volume l a s t y e a r . The
e s t i m a t e f o r t h e y e a r ' s volume i s 6 , 6 5 5 m i l l i o n dollars^, more than
20 per c e n t g r e a t e r t h a n the 1953 volume and 63 per c e n t l a r g e r than
t h e t o t a l i s s u e d during 1952,
The December e s t i m a t e of corporate o f f e r i n g s f o r new c a p i t a l
i s 575 m i l l i o n d o l l a r s , c o n s i d e r a b l y smaller t h a n the December 1953
volume of 1,U38 m i l l i o n . An i s s u e of 603 m i l l i o n d o l l a r s of AT&T
debentures i s i n c l u d e d i n t h e t o t a l f o r l a s t December, however. The
f o u r t h quarter volume i s e s t i m a t e d a t 1 , 7 2 5 m i l l i o n d o l l a r s compared
w i t h 2,UUU m i l l i o n l a s t year i n t h e f o u r t h p e r i o d . T h e . e s t i m a t e of
t o t a l o f f e r i n g s f o r new c a p i t a l i n 195U i s 7 , 3 8 5 m i l l i o n d o l l a r s , 13
and 15 per c e n t l e s s than the volume i n 1953 and 1952 r e s p e c t i v e l y .
Finance company o f f e r i n g s were l e s s important t h i s y e a r than l a s t —
t h e 1954 t o t a l w i l l be about 250 m i l l i o n d o l l a r s compared w i t h 1,268
million l a s t year.
Bond y i e l d s - Y i e l d s on outstanding U. S . Government o b l i g a t i o n s r o s e one b a s i s p o i n t l a s t week, and showed a f u r t h e r i n c r e a s e
through November 3 0 , Y i e l d s on outstanding corporate Aaa bonds decreased
s l i g h t l y and y i e l d s on corporate Baa and high-grade municipals remained
unchanged.




H.lU
-

2 -

Stocks p r i c e s s t i l l r i s i n g - The SEC index of 265 common s t o c k s
i n c r e a s e d s i x p o i n t s t o 2 1 1 . 1 during the week ending November 26. No
s i g n i f i c a n t change was i n d i c a t e d by d a i l y indexes on November 3 0 . The
weekly average of d a i l y t r a d i n g volume remained a t t h e high l e v e l of
3.U m i l l i o n s h a r e 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 i n t h e f o l l o w i n g e : i i i b i t s which
are a t t a c h e d h e r e t o :
A - Bond Y i e l d s
B - Stock Market
C - 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
D - Large P u b l i c 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 ( o t h e r than
U. S . Treasury)
E - Forthcoming Large P u b l i c 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 ( o t h e r
than U. S . Treasury)'

B u s i n e s s Finance and Capital Markets S e c t i o n ,
D i v i s i o n 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 ANNUM
4
CORPORATE

Baa

CORPORATE

U.S.

1

GOVERNMENT
LONG-TERM

VV

1

V

Aaa

V- V

/1
/ HIGH-GRADE

MUNICIPAL
, STANDARD AND P O O R ' S CORP.
I • I i ' ' ' 1 I 1 I ' 1 1 I-AIAI/\
I M | i i Ii i I I I I I I 1 I I I I I1 II
J
M
J
s
M
J
S
D
M
J
S
D
M
1954
1 9 5 2
1953 .
19 51

Corporate 2/
Aaa

I Baa"

U. S. Govt,
long-term 2/

Spread between HighCorporate Aaa
and U. S. Govt, c v

(Per cent per annum)
1951 - Higi
1952 - High
Low
1953 - High
195k - High
Loir
October 29
November 5
November 12
November 19
• November 26

3.03
2.65
3.03
2.91
3.142
2.99
3.09
2.85
2.87
2.88
2.89
2.89
2.88

3.63
3.16
3.63
3.U8
3.89
3.50
3.7U
3.L5
3.1*5
3.1*6
3.1*5
3.U5
3.U5

2.7U
2.38
2.79
2.56

M

a
2.a
2.51*

.37
.19
.38
.19

I

. .32

2.26
1.59
2.U3
2.00
3-Hi
2.23
2.30
2.30
2.28
2.28
2.28

1/ Moody's Investors Service; weeicly average of daily figure a.
5/ Federal Reserve; weekly average of daily
y Standard and Poor's Corporationj Wednesday figure.
Note.-Highs and lows are for individual series and may be cn different dates
for different series.




STOCK MARKET

I

V
I'

zV

z

A

A

i

v

V

C

/ / Vv

/

PRICE
47-49.

1

SB:

Millions of Shares

Bank loans
to "others"
Trading Common stock Customers'
for purchases
Stock price volume 2/ yields 3 /
of securindex 1/
(millions
(per cent balances h/
(1947^9=100) of shares) per annum)
(millions
i t i e s 5/
of dollars) (millions
of dollars)
1951 - High
Low
1952 - High
Low
1953 - High
• Low
195k - High
Low
October
November
November 12
November 19
November 26

158.6
Hi0.3
165.3
151-7
167.1
lWi.0
211.1
156.5
196.6
205.3
205.1
205.1
211.1

3.U
1.1
2.0
0.9
2.5
0.9
3.It
l.U
2.1
3.2
3.k
3.It

6.55
5.55
5.77
5.13
5.75
5.15
5-33
li.U6
U.57

1,297
1,219
1,328
1,2U1
1,665
1,31k
2,095
1,653
2,095

.

3U0
260
295
250
327
252
U71
328
U39 h6l
li57
165
171

1/ SEC index of 265 common stocks, weekly closing price, 1939-100; converted to
19U7-C9-100 by Federal Reserve.
2 / Weekly averages of daily trading volume on New York Stock Exchange.
3 / Moody's 200 common stocks; end of month f i g u r e s .
? / End of month figures for member firms of Hew York Stock Exchange; excludes
balances secured by U. S. Government s e c u r i t i e s .
5f Wednesday figures for weekly reporting member banks in New York and Chicago;
excludes loans for purchase of U. S. Government securities. On March U, 1953, the
l a s t date on which figures for a l l reporting banks were available, New York and
Chicago accounted for
per cent, of such loans. In the past New York and Chicago '
loans have fluctuated more than t o t a l loans.
n.a.—Not available.
Note.—Hi$is and lows are for individual series 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.14
Exhibit C
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 m i l l i o n s of d o l l a r s )
New c a p i t a l
1954

Corporate
1
1953

January
February'
March

544
439
660

623
• 623
666

April
May
June

186
6#
#9

779
6#
1,123

July .
August .
September

898
346
776

483
325
,753

October
November
December

e/850
1/300
e/575

1 s t quarter
2nd quarter
3rd quarter
4 th quarter
Year

1,643
1,998
2,021

1

615
113
#1
870
9 # 769

.

577
2/
1,4382/
1,912
2,578

S t a t e and l o c a l
1954 ' 1
1953
1

1952

1,237 2 /
291 '
390

'

426

734
• 748
853

• 328
648
434

454
394
625

279
261
e/625

519
#9
475

243
199
473

452
408.
774

302
183
395

e/610
e/400
e/775

1,979

1,372
2,335
e/1,165
^/l,785
e/6,655

y

1952
- 357
300
146

999
3to
851

i i f i

388

396
411
565

.

1,173
1,410
1,253
1,635
• 5,471

" 802
1,474
916
8G0*
4,072

Excluding f i n a n c e companies V
1 s t quarter
2nd quarter
3rd quarter
4 t h quarter
Year

1,562
1,931
1,92*1
e/1,695
e/7,130

1 , 6 69
1,991
1,223
2,3^
. 7,227

1,961
2,521
1,877
2,09k
8,iiS2

1/ Includes 490 m i l l i o n d o l l a r American Telephone and Telegraph debenture
issue.
2 / I n c l u d e s 6'03 m i l l i o n d o l l a r AT&T debenture i s s u e .
3 / T o t a l nev; 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.
N o t e . — D e t a i l s may not add t o t o t a l s due t o . r o u n d i n g .




H.14

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 . Treasury) 1 /
Proceeds of Large I s s u e s Offered
( M i l l i o n s of d o l l a r s )

Corporate

Month.

1953 - November
December
1954 - January
February
March
April
- May
- June
July
August
September
October
November

Date and
. l o c a l government

l6h

19
50
119

213
378

50

254
571

963
269
103
160
169
324

Other 2 / '

557
557

603
92
86

§
75
335
U13
0

455

388
268 "

Large I n d i v i d u a l I s s u e s Offered during November

Issuer

Type 3 /

Amount
Coupon
Offering
(millions
Maturity
• of
net i n t e r yield
dollars)
est cost

Rating

CORPORATE
None
STATE ADD .LOCAL GOVERNMENT
T e r r i t o r y of Hawaii
Abington Township, Pa.
School D i s t r i c t
New York C i t y
Md.. S t a t e Roads C o m .
New J e r s e y Highway Auth.
Dane County, Wisconsin
Tulsa, Oklahoma
S t a t e of North Carolina
Kansas C i t y , Missouri
Georgia S t a t e Bridge
B u i l d i n g Authority
D a l l a s , Texas
S t a t e of Maryland




G,0.

6.5

1957-74

2.19

1.10-2.40

A

Rev.
G.O.
• Rev.
Rev.
G.O.
G.O.
G.O.
G.O.

6:0
21.6
11*6.0
20.0
5.5
7.9
5.0
5.9

1956-94
1955-57
1960-94
1988
1957-66
1957-80
1956-74
1955-74 .

2.60
1.13
2.99
3.23
1.37
Var.
1.68
1.73

1.00-2.75
0.80-1.10
1.70-2.95
3.15
0.85-1.50
1.05-2.90
0.70-1.90
0.70-2.00

Baa
A
Aaa
A
Aa
Aa .

Rev.
... G.O.
G.O.

10.6
16.9
16.0

1956-70,,
1955-741957-69

2.25
2.01
1.48

1.00-2.50
0.50-2.25
0.85-1.65

A
A
Aaa

H.lL
D-2
Large I n d i v i d u a l I s s u e s Offered during November (Cont'd)

• Issuer

Type

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

Rating

OTHER
None
1 / Inc lud e s~c cr p or a t e ""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;~"state 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 ^
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 R e c o n s t r u c t i o n and
Development i s s u e s .
3 / In t h e c a s e 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. d e n o t e s general. o b l i g a t i o n ; R e v . , 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 . 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 bypledge of d e s i g n a t e d r e v e n u e s .
;
h / Bonds maturing 1973-7U not p u b l i c l y r e o f f e r e d .




H.lU

Exhibit E
Forthcoming Large Public S e c u r i t y Offerings f o r New Capital
(other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
Date of
computation
1953 - Nov. 30
Decc 31
±95k

- Jan. 29

Feb. 26
liar. 31
. Apr. 30 •
May 28
. June 30
July 30
• Aug. • 31
Sept. 30
Oct. 29
Nov. 30

During month f o i l owing,
date shown
State and
Corpora
Other 2 /
l o c a l govt.
9L8
232
118
• 108
2 0i|
323
332
336
100
33h
3h3
$

537
179
161
198

Subsequent to
date shown
S t a t e and'
Corporate
Other 2 /
l o c a l govt.

73
123

%

•50
27

596

86

Sh

300
383
136
661

1,616
669

M79

690

555
6b7

526
532
303

608
hlh

30

• 135
21*6

1,752
1,238

1,660

1,916
2,789
2,322
1,971
1,521
1,553
1,876
2,158
1,957

2,682

138
50
27

30
30

Forthcoming Large O f f e r i n g s , as of November 26
Amount
Approximate date
(millions
of o f f e r i n g
of d o l l a r s )
. CORPORATE
Long Island Lighting
V i r g i n i a E l e c t r i c and Power Co.
Tennessee Gas Transmission
New England : Telephone and Telegraph
. Commonwealth Edison
New England Power
Public Service of Oklahoma
Public Service E l e c t r i c &. Gas Co.
Kansas City Power, and Light
New England Telephone and Telegraph

1 s t mtg. bonds
Common stock
Bonds
Deb.
Conv. deb.
1 s t mtg. bonds
1 s t mtg. bonds
Pfd. stock
1 s t mtg. bonds
Common stock

15.0
17 M
32.0
30.0
50.0
25.0
20.0
25.0
16.0
15.8

December 7
December 8
December 8
December ll*
January 11
January 18
January
January
February 15
March

50.0

December
December
December
December
December

STATE AND, LOCAL GOVERNMENT '
New York Thruway
Oklahoma Turnpike Authority
J e f f e r s o n and S t . Tammany Parishes, La.
-^Spokane County, Washington
Tampa, Florida




Rev.
n.a.
Rev.

2lii.O

Rev.

10.0

1*6.0 z
5.0

7
8
8
llj.
llj.

H.lU
E-2
Forthcoming Large O f f e r i n g s . a s of November 26 (Cont'd)
Issuer

Type

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

STATE AND LOCAL GOVERNMENT (Cont'd)
Puerto Rico Water Resources Auth.
*New Orleans, Louisiana
New York S t a t e Power Authority
•^Public Housing A u t h o r i t i e s
Los Angeles Dept. of 77a t e r & Power
I l l i n o i s Turnpike AuthorityTexas Turnpike Company
. Sam Houston Company
e s t a t e of C a l i f o r n i a
Inter-American Center A u t h . , F l a .
Michigan Turnpike Authority
S t a t e of Louisiana
Dade.County Port A u t h o r i t y , F l a .
Warren, Ohio
Springfield, Illinois
Davenport, Iowa
Allegheny County, Pennsylvania
S a n i t a r y 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
Texas Turnpike A u t h o r i t y
Metropolitan l a t e r D i s t , of So. Cal.
Los Angeles School D i s t s . , C a l .
F l o r i d a S t a t e Turnpike Authority
J e r s e y C i t y Sewerage A u t h . , N. J .
North Carolina Turnpike A u t h o r i t y
OTHER
Kingdom of Belgium

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

12.3
8.1
315.0
135.0
18.0
390.0
200.0
150.0
50.0
60.0
186.0
80.0
21.0
5.0
9.0
5.0
#.0
235.0
59.0
8-10.0
20.0
89.0
16.0
200.0.

December lii
December 15
December
January 11
January 26
January •
January
January
January
Spring
Spring
Spring
19#
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955

•
Bonds

30.0

December

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 / 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 Reconstruction and
Development i s s u e s .
n.a.—Not available.
#—Included i n t a b l e f o r f i r s t t i m e .
'