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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.