Full text of H.16 Capital Market Developments : October 20, 1954
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i Not f o r P u b l i c a t i o n ^CONTROLLED AFTER SIX MONTHS t~t/ ^ October 20, 19£lt CAPITAL MARKET DEVELOPMENTS S e c u r i t y volume small l a s t week - Large 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 f o r new c a p i t a l amounted t o 22 m i l l i o n d o l l a r s during the week ending October l £ j .no l a r g e corporate i s s u e s were o f f e r e d . This week l a r g e p u b l i c i s s u e s scheduled f o r f l o t a t i o n t o t a l 231 m i l l i o n d o l l a r s , including t h e 131 m i l l i o n d o l l a r c onmon stock o f f e r i n g of National City Bank of New York, t h e s u b s c r i p t i o n r i g h t s f o r which expire on October 22. Bond y i e l d s - Outstanding U . S . Government long-term bond y i e l d s i n c r e a s e d one b a s i s p o i n t l a s t week, the f i r s t change in f i v e weeks. Yields on corporate Aaa did not change and y i e l d s on c o r p o r a t e Baa and high-grade municipal bonds decreased one and two b a s i s points respectively. Customers' d e b i t balances r i s e f o r seventh consecutive month - Customers' d e b i t balances, excluding borrowings f o r c a r r y ing U. S . Government s e c u r i t i e s , of member f i r m s of t h e New York Stock Exchange, increased 81 m i l l i o n d o l l a r s during September t o a t o t a l of 2,Olt8 m i l l i o n a t the end of the month. Money borrowed on c o l l a t e r a l other than U. S. Government, by menber f i r m s maintain-. ing margin accounts, increased 100 m i l l i o n d o l l a r s and t o t a l e d 1,22£ m i l l i o n d o l l a r s a t t h e end of September. Customers' f r e e c r e d i t balances which had been r i s i n g r a t h e r s t e a d i l y increased only lit m i l l i o n d o l l a r s i n September. Stock p r i c e s , as measured by the SEC index of 26j> common . . s t o c k s , decreased sharply during the week ending October 1£ t o 19k.0 p o i n t s , 5*7 p o i n t s below t h e preceding closing p r i c e . Daily indexes i n d i c a t e seme'recovery during the f i r s t p a r t of t h i s week. " 2 " - . 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 the following e x h i b i t s which are attached hereto: r i r A - Bond Yields 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 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) E - Forthcoming Large Public Security 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 , 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 the F e d e r a l Reserve System. EXHIBIT A BOND YIELDS PER CENT PER A N N U M WEEKLY 4 CORPORATE Boo CORPORATE T Aoo * —' GOVERNMENT LONG-TER /u 1 1 / V /I ' / H I G H - G R A D E MUNICIPAL * . STANDARD AND POOR'S CORP. I I.•IfII I' 1 ' •I ' ' I• ' 1 III J 1951 s Corporate 1 / J S 1954 J VS. 1953 J S 1952 U. S . Govt. long-term 2 / D.~ Spread between HighCorporate Aaa grade. and U. S . Govt.I Han, 3/ (Per cent .per annum) 1951 - High Low 1952 - High Low 1953 - High Low 1951 - High Low September 17 September 21* October 1 October 8 " October 15 3.03 2.65 3.03 2.91 3.U2 2.99 3.09 2.85 2.89 2.89 2.89 2.88 2.88 1:1 2.71* 2.38 2.79 11 2.71* 3.U8 3.W 3.1*7 3.1*8 3.1*8 3.1*8 3.U7 11 2.1*1* 2.51 I :% 2.26 1-59 2.1*3 2.00 1 2.U3 2.56 2.23 2.31 2.33 2.33 2.31* 2.32 , .36 .25 .38 .19 .1*3 .*36 3.14 f Moody*: I n v e s t o r s S e r v i c e ; weekly average oi' d a i l y f i g u r e s . Federal Reserve; weekly average of d a i l y f i g u r e s . Standard and P o o r ' s Corporation; Wednesday f i g u r e . . 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. STOCK MARKET VOLUME j~ Date 1951 - High 1952 - High 1953 - High 195k - High September October 1 October 8 October 15 Bank loans 1 to "others" Common stock Customers Trading Stock p r i c e volume 2 / f o r purchases | yields 2/ of s e c u r index V balances h / (millions (per cent ( W - l t 9 « 1 0 0 ) of s h a r e s ) i (millions i t i e s 5/ 1 per annum) of d o l l a r s ) ( m i l l i o n s of d o l l a r s ) 158.6 lit0.3 165.3 151.7, 167.1 liii.O 199.7 . 156.5 191. U 191.0 198.3 199.7 191.0 " 3 .It 1.1 2.0 0.9 2.5 0.9 3.2 1.U 2.6 2.0 1.9 2.2 2.1 . 6.55 5-55 5.77 5.13 5.75 5.15 5.33 kM 1,297 • 1,219 1,328 1,21:1 1,665 1,31k 2 , Oli 8 1,653 1,967 2,01,8 n.a. n.a. h.U6 1.75 ' ' - 3U0 260 • 295 250 327 . 252 1*37 328 118 U21 1*30 133 h3h 1/ SEC index of 265 conrnon s t o c k s , weekly c l o s i n g p r i c e , 1939" 100; converted t o 19U7-I»9»100 by Federal Reserve. 2 / Weekly averages of d a i l y t r a d i n g volume on New York Stock Exchange. V Moody's 200 common s t o c k s ; ,end of month f i g u r e s . , . U/ End. of1 month f i g u r e s f o r member firms of New York Stcjck Exchange; excludes balances secured by U. S. Government s e c u r i t i e s . 5 / Wednesday f i g u r e s f o r -weekly r e p o r t i n g member banks i n New York and Chicago; excludes loans f o r purchase of U. S. Government s e c u r i t i e s . On March U, 1953, the l a s t d a t e on which f i g u r e s f o r a l l r e p o r t i n g banks were a v a i l a b l e , New York and Chicago accounted f o r per cent of such l o a n s . In t h e p a s t New York and Chicago loans have f l u c t u a t e d mere "than t o t a l l o a n s . n.a.—Mot a v a i l a b l e . 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. - 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 ( i n m i l l i o n s of d o l l a r s ) .195U Corporate 1953 1 January February March 5kk ii39 660 April May June U86 6# 859 779 672 1,123 July August September e/725 e/li00 S/725 hQ3 325 753 October November December e/800 577 129 2 / i , u 8 y- 1st quarter 2nd q u a r t e r 3rd quarter iith q u a r t e r Year i. 1,998 yi,8$0 - New c a p i t a l 1 i 3 623 666 1,912 2,578 1,561 2 / 2 Mh y, s,ii95 y 8' 951 I S t a t e and l o c a l 195i! 1 1953 1 1952 . 870 .9# 388 * 359 ii26 • 396 iill #5 73li 7li8 853 328 6ii8 U3ii 1,237 2 / 291 390 279 e/2S0 e/625 519 259 U75 999 3hQ 851 e/550 |i52 U08 77ii 1,979 1,372 2,335 ^1,155 1,173 1,1*10 1,253 1,635 5,171 • ' •• . 1952 357 300 lii6 ii5U 39ii 625 2ii3 199 ii73 ' 302 183 395 1,562 1,931 S/1,785 1,669 1,991 1,223 2,3Lii 7,227 1,961 2,5211,877 2,09ii 8,U52 1/ I n c l u d e s 1±90 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 603 m i l l i o n d o l l a r AT&T d e b e n t u r e 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. e/~Estimated T N o t e . — D e t a i l s may n o t add t o t o t a l s due t o r o u n d i n g . y _ 802 ' l,ii7ii ,z916 880 It,072 Excluding f i n a n c e companies 5 / 1st quarter 2nd q u a r t e r 3rd q u a r t e r iith q u a r t e r Year , * Exhibit 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) 1/ Proceeds of Large I s s u e s O f f e r e d ( M i l l i o n s of d o l l a r s ) Month . S t a t e and l o c a l government Corporate 1953 - September October November December 1954 - January •February : March April May June July • . August September Other 2 / 322 323 2% 571 16k 213 378 557 557 603 92 86 455 375 216 96 963 289 103 160 169 324 350 336 75 335 . 34 51 19 50 119 50 Large I n d i v i d u a l I s s u e s O f f e r e d October 1 through 15 Issuer . Type 3 / Amount Coupon (millions r a t e or Offering Maturity net i n t e r yield of dollars) est, cost Rating CORPORATE P u b l i c Service Co. of Colorado I n d i a n a and Michigan E l e c t r i c Co. -* 1st mtg.bds. 20.0 .1981 3 1/8 3.03 Aa 1 s t m t g . b d s ., 16.5 1981 3 1/8 3.04 Aa STATE AND. LOCAL GOVERNMENT S o u t h e a s t Alabama Gas D i s t r i c t M i s s i s s i p p i River Bridge Authority, Louisiana Kansas C i t y , Missouri Cleveland, Ohio Cleveland,^Ohio S t a t e of Oklahoma P l a n n i n g & Resources Bd. Ga, S t a t e T o l l Br 'Auth. Alexandria, Virginia OTHER Digitized forNone FRASER Rev. 19.5 Rev. Rev. Rev. Rev. 65.0 12.0 5.0 6.0 Rev. Rev. Rev. 7.2 6.7 8.2 1989 • -4.50 4.50 1991 1961-84 1959-78 1959-83 3.59 2.45 2.13 2.54 3.46 1.35-2.55 1.20-2.1:0 1.25-2.63 1984 1984 1960-76 ' 3.35 3.19 4.31 3.30 1.90-3.20 Aa Aa A — WW — D-2 1 / Includes corporate and othef s e c u r i t y o f f e r i n g s of 1£ 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 .$ million 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 Reconstruct i o n 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.O. 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 .addit i o n a l l y secured 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 gations secured by pledge of designated revenues. n.a.—Not a v a i l a b l e . Exhibit E Forthcoming Large Public Security Offerings f o r New C a p i t a l (other than U. S. Treasury) 1 / Expected Proceeds from Forthcoming Large Issues Subsequent t o date shown During month following date shown Date of computation Corporate 180 73 1953 - Sept. 29 Oct. 30 Nov. 30 " Dec. 31 19$h - J a n . 29 • Feb. 26 Mar. 3.1 Apr. 30 May 28 June 30 July 3b Aug. 31 S e p t . 30 .91*8 232 118 108 20b 323 332 336 100 33k 3h3 2/ Corporate l ^ l ^ o v t . | 0 t h e r g / 273 283 537 179 161 498 i 596 86 51* 300 383 n.a. 73. 123 50 27 1,016 1,129 1,616 669 1*79 690 555 6h7 526 532 303 •608 l*ll* 1,182 978 1,752 1,238 1,660 1,916 88 138 50 2,789 2,322 1,971 1,52k 1,553 27 1,876 2,158 Forthcoming Large O f f e r i n g s , as of October 15 Issuer Type Amount Approximate date (millions of o f f e r i n g of d o l l a r s ) CORPORATE Texas Power and Light Co. New York Telephone Co. National City Bank of New York Cortland Equipment Lessors,. I n c . Continental Oil ^Southern Railway Laclede Gas Kentucky U t i l i t i e s Kansas City Power and Light Long Island Lighting Public Service 'of Oklahoma r 1 s t mtg; bonds 15.0 R e f . mtg. bonds 1*0.0 Common7stock 131.3 Ddb. ' 75.0 100.0 Deb. Coll. t r u s t notes 15.0 JLst mtg. bonds 20.0 1 s t mtg. bonds 15.0 1st mtg. bonds 16.0 1 s t mtg. bonds 20.0 1 s t mtg. bonds 20.0 October 18 October 19 October 22 October 27 October 28 October 28 November November 195U 1951* January • STATE AMD LOCAL GOVERNMENT Kentucky, State Rroperty & Bldg. Comm. Newark, New Jersey Milwaukee, Wisconsin Greater Baton Rouge Port Comm., La. Colorado Springs, Colorado Rev. G.O. G.O. G.R. Rev. 7.1* 10.0 5.0 : 12.5 : 10.0 October October October October October 19 19 19 20 20 E-2 Forthcoming Large O f f e r i n g s , a s of October 15 ( C o n t ' 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 ( C o n t ' d ) ' Lansi ng, Michigan ^ P u e r t o Rico S t a t e of Massachusetts W i c h i t a , Kansas P h i l a d e l p h i a , Pennsylvania ' F l o r i d a S t a t e Board of Education Chicago, I l l i n o i s Department of Highways, V i r g i n i a •a-Pueblo County, Colorado -MAbington Township, P a . , School D i s t . •it-New York C i t y D a l l a s , Texas I n d i a n a T o l l Road Commission. • a J e f f e r s o n P a r i s h and S t . Tammany Parish, Louisiana Oklahoma Turnpike A u t h o r i t y New J e r s e y Highway A u t h o r i t y Dade County P o r t A u t h o r i t y , F l a . Allegheny County, Pennsylvania 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 Maryland S t a t e Roads Commission Warren, Ohio Springfield, Illinois Davenport, Iowa New York Thruway Michigan Turnpike A u t h o r i t y New York S t a t e Power A u t h o r i t y M e t r o p o l i t a n 17ater D i s t . of So. C a l . Los Angeles School D i s t s . , C a l . Los Angeles D e p t . of Water & Power F l o r i d a S t a t e Turnpike A u t h o r i t y J e r s e y C i t y Sewerage A u t h . , N. J . North C a r o l i n a Turnpike A u t h o r i t y . G.O. G.O. G.O. G.O. Rev. G.O. Rev. n.a* Rev. n.a. n.a. n.a. Rev. Rev. Rev. Rev. Rev. • n.a. n.&. Rev. Rev. Rev. G.O. Rev. Rev. Rev. 6.0 10.0 #.8 ' 6.9 25.8 16.5 12.5 79.3 5.3 6.0 21.6 10-15.0 178.0 October 25 October 25 October 26 October 26, October 26 October 26 October 27 October 27 October 28 November it . November k November 29 December JU5.0 175-0 30-50.0 21.0 . December 19511 195ii 1954 85.0 235.0 70.0 5.0 9.0 £•0 50.0 186.0 315.0 8-10.0 20.0 15-20.0 89.0 16.0 200.0 195k 19Slt 1951i 195U 195li 195k 1954 Spring 1955 . 1955 1955 • 1955 -1955 1955 ,1955 OTHER None 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 a v a i l a b l e * , 1 «—Included i n t a b l e f o r f i r s t t i m e . / Exhibit F Yields on New and Outstanding Public U t i l i t y Bonds, Rated Aa and A 1/ Date : Aa-rated o f f e r i n g y 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 y i e l d s (per cent) seasoned y i e l d s (basis points) (basis p o i n t s ) 19!?2 average 3.18 . iu 3.37 12 1953 average 3.44 16 3.78 22 1953 - January February March April May June July August September October November December 3.25 3.393.U0 3.U8 3.79' None *3.68 None None 3.3U *3.28 *3.30 11 19 17 16 28 195h - January February March April May June July 3.20 3.02 *2.93 2.99 3.00 *3.00 None August 18 25 September 23 29 30 October 5 6 6 •Hi 3.00 3.05 3.01 3.03 3.0k 3.0lt 29 6 7 5. 6 0 0 5 k 1 — : ; 0 6 2 h k h - None None 3.# 3.88 3.99 a.10 i:-L.OO None 3.92 3.# . 3M2 . 3.51 . 23 kl 37 39 30 29 7 2 10 3.3k *3.20 3.05 3.10 3.1k 3-Ik ' *3.13 2 -1 -10 -6 -1 -2 -1 3.06 3.1$ -6 3 3.10 . 3.12 -3 -1 3.12 r 0 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 t h e amount above seasoned y i e l d s a r e averages of o f f e r i n g s during t h e i n d i c a t e d p e r i o d 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 similar q u a l i t y f o r t h e same day. -x—Single observation, ndt an average.