Full text of H.16 Capital Market Developments : June 13, 1957

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4/Z

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

June 1 3 , 1957
CAPITAL MARKET EEVELOPMEN TS

The volume of p u b l i c s e c u r i t y f i n a n c i n g was moderate
during the week ending June 7# but i s expected t o be v e r y l a r g e t h i s
week, p a r t i c u l a r l y f o r corporate s e c u r i t i e s . Last week, l a r g e i s s u e s
s o l d by corporations amounted t o $105 m i l l i o n and o f f e r i n g s of S t a t e
and l o c a l governments t o t a l e d $37 m i l l i o n . The calendar f o r t h i s
week i n c l u d e s corporate i s s u e s t o t a l i n g $1*25 m i l l i o n , of which
$276 m i l l i o n are s u b s c r i p t i o n i s s u e s , and S t a t e and l o c a l government
i s s u e s amounting t o $77 m i l l i o n .
Bond y i e l d s - Bond y i e l d s i n c r e a s e d moderately l a s t week
f o r a l l types o f outstanding bonds. Y i e l d s f o r a l l c a t e g o r i e s of
bonds, e x c e p t t h o s e for U. S . Government ( o l d s e r i e s ) reached new
highs for t h e year l a s t week, and are now above t h e i r 1956 p e a k s .
Y i e l d s on new corporate i s s u e s a l s o continue to i n c r e a s e .
A new Aa-rated, 30-year e l e c t r i c u t J " i t y bond i s s u e was s o l d t o
underwriters a t a n e t i n t e r e s t cos* of U.8U per c e n t , and o f f e r e d
t o i n v e s t o r s a t a y i e l d of I4..78 per cent—15 b a s i s p o i n t s above ft
comparable o f f e r i n g made l a s t week.
Stock p r i c e s - The SEC index o f common s t o c k p r i c e s reached
a new high f o r t h e year during t h e week ending June 7* Daily
f i g u r e s through Wednesday of t h i s week i n d i c a t e a f u r t h e r i n c r e a s e
in p r i c e s , on balance, a f t e r a sharp dip i n r e a c t i o n t o news o f the
President's i l l n e s 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 i s presented i n t h e a t t a c h e d e x h i b i t s .

B u s i n e s s F i n a n c e 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 R e s e a r c h and S t a t i s t i c s ,
Board of Governors of t h e F e d e r a l R e s e r v e S y s t e m .




H I G H - G R A D E B O N D YIELDS

U. S. Govt., long-term * /
Corporate
Aaa 1/

Old s e r i e s

Kew s e r i e s

State and
l o c a l govt.
Aaa y

Spread between
U. S. Govt.
(old s e r i e s ) and

(Per cent)
3.1»2
2.99
3.09
2.85
3.17
2.91
3.79
3.07
3.82
3.66

(6/19)
(1/9)
(1/8)
(V23)
(12/23)
(1/7)
(12/28)
(3/2)
(6/7)
(it/12)

3.72
m

3.15 (6/6)

2.78 (12/26)

2.71* (1/9)
2.Ul» (8/7)
2.91. (8/5)

2.62 (1/7)

3.1*9
2.80
3.53
3.15

(12/21)
(2/17)
(1/1*)
(2/8)

3.35
3.39
3.I4O
3.18
3.51

1 / Weekly average of d a i l y f i g u r e s .

n.a.
2.73 (6/25)
n.a.
1.98 (1/8)
n.a.
2.21 (6/10)
1.90 (9/2)
n.a.
3 . 0 3 ( 8 / 5 ) 2.31 (9/8)
2.89 (6/10) 2.05 (5/26)
3.39 (12/28)3.05 (12/27)
2.92(2/3) 2.17(2/23)
3.1*7 (6/7) 3.1k (6/6)
3.22 (2/8) 2.76 (2/21)

.38
.19
• 1»3
.32
.3k
.13
.u*
.13
.51*
.29

.8U
.30
.61
.29
.70
.51*
.68
.32
.1*6
.26

3.U

.37
.3U.
.35
.31 ,
.31

.36
.hO
.ia
.38
.37

3.1a
3.1)2
3.15
3.1*7

2.99

2.99
2.99
3.10
3.11*

Average term of bonds included i s 25-26

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 1955, and those due or c a l l a b l e in 10-12 years thereafter; the average
term to f i r s t c a l l of the bonds included declined from Hi years in early 1953 t o
11 1/2 years in 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/lt 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 peries.




LOWER-GRADE

BOND

YIELDS

Date

Corporate
Baa y

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

S t a t e and
local govt.
Baa 2 /
(Per cent)

1953 - High

1957 - High
Low

3.89 (9/18)
3.50 (1/2)
3.7k ( 1 / 8 )
3 . a (12/31)
3.63 (12/30)
3 . 1 5 (1/11.)
luUl (12/28)
3.58(3/9)
1.59 (6/7)
h.h2 U / 1 2 )

May 10
May 17
May 2k
May 31
June 7

u.5o
It.53
L.5L
h.56
14.59

1 9 5 k - High
1955 - High
1956 - High

3.79
2.96
3.32
2.93
3.26
3.02
h.22

h.27 ( 6 / 6 )
3.90 (2/21)

3.27
2.71
3.00
2.72
2.99
2.76
3.98
2.89
3.98
3.70

14.05

V

I4.O6

.

(6/25) "
(1/8)
(1/7)
(8/5)
(12/29)
(1/6)
(12/27)

(6/26)
(1/2)
(1/1)
(8/13)
(12/30)
(1/7)
(12/28)
(2/2U
(1/14)
(2/22)

14.15
14.23
14.27

included i s 25-26 y e a r s .
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 .
3 / F r i d a y f i g u r e s . Average r a t i n g of bonds i n c l u d e d i s
between Baa and Aj a v e r a g e term i s 20 y e a r s .
h / S e r i e s d i s c o n t i n u e d , a s o f March 1 5 .
N o t e . — H i g h s 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 f o r d i f f e r e n t s e r i e s .




STOCK

MARKET

Date

Stock p r i c e

Trading
Common
volume 2 /
(millions
yields ] /
of shares) (per cent

Stock market custi Dmer c r e d i t
Customers1
debit b a l - loans t o
"others" j>/
ances V

Total

. ( M i l l i o n s of d o l l a r s )
1953 - High
195k - High
1955 - High
1956 - High
Low
1957 - High
Low
April
May 2b
Kay 31
June?

167.1
lWt.O
221.it
156.5
270.7
217. It
295.5
257.U
267.lt
260.3

(1/2)
(9/18)
(12/31)
(1/6)
(12/30)
(1/Ui)
(8/3)
(1/20)
(6/7)
(2/6)

273-3
381.2
265.lt
286.6
287.lt

2.5
0.9
3.7
1-1*
It.6
1.5
3.1
1.5
2.7
1.6

5.88
5.15
5.1*9
It.09
lt.23
3.59
It.13
3.65
It. 28
3.80

-2,ltlt5
2,055
3,136
2,lt05
It,030
3,537
lt,0U7
3,9Ht
3,938
3,832

1,665
l,3lii
2,388
1,653
2,805
2,517
2,823
2,7lt0
2,792
2,713

760
661t
" 1,01,8
7h6
1 , 2i a
1,018
1,267
1,155
1,163
1,117

2.3
2.It .
2.2
2.2
2.2

3.96
3.32
3.83
3.8%/
3.80 .

3,938

2,792

n.a.

n.a.

l,lit6
1,130
1,130
1,130
n.a.

n.a.—Not a v a i l a b l e .
r j Revised.
1 / SEC index of 26$ common s t o c k s , weekly closing p r i c e s , 1939-100; converted
to 19li7-U9"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 "ew %ork Stock Exchange.
3 / Moody's 125 i n d u s t r i a l stocks; weekly data based on Friday.
5 / 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 jiecured by U. S. Government o b l i g a t i o n s .
5 / Wednesday f i g u r e s f o r weekly reporting me-iber 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 i n New York and Chicago.
Weekly reporting banks account f o r about 72 per cent of loans to 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.lli

, Corporate and 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 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
1957
JanuaryFebruary
March
April
May

1,063
1,071
1,344.

Corporate
1
1956
|>

1955

1957

573
712
817

535407
1,223

685
• 566
499

404
696
390

535
312
538

e/750
e/550
e/425

378
490
735

427
350
642

376
199
333

470
249
4o6

' 645
311
426

919
658
408

1,490
1,603
908
1,382

1,385
1,418.
1,124
1,984

3,093
4,ooi
2,383

2,803
3,927
5,911

.

,

818
1,116
841 /

478 *
886
687

July
August
September

1,063
651
838

597
644
670

October
November
December

7
1*5*
1,0892/
1,088

1,1621/
632
900

3,479
e/2,900

2,102
2,805
2,556
2,922

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

e/6,379

4,90? .
7,U63
10,381

4,216
6,127
8,821

1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

1 s t half
Three q u a r t e r s
Year

e / 950
e / 750
5/1,200

1,750
e/1,725

S t a t e and l o c a l
1
1956
I

1955

Excluding f i n a n c e companies 2 /
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

3,268
e/2,650

Year

1,617
2,541
2,21*6
2,826

1,727
1,870
1,444
2,554

9,259

7,595

e / Estimated.
1 / Includes $ 6 3 7 . 2 m i l l i o n AT&T c o n v e r t i b l e debenture i s s u e s .
2 j Includes $571.!? m i l l i o n AT&T common stock i s s u e s .
3 / Total 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 consumer f i n a n c e
companies.
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 rounding.




U.Ik

E x h i b i t IS
L a r g e 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 t h a n U. S . T r e a s u r y ) 1 /
P r o c e e d s of L a r g e 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

Corporate

1956 - May
June
July
August
September
October
November
December
1957 - J a n u a r y
February
March
April
May

6#
185
592
217
558
.386
701

S t a t e and
l o c a l government

Other 2/

__

233

1

20

. U63

16U
35
181;
383
135
201
#6
306

h30

• 567
671
788
177
3#

37
35
100
50

19h

125
25

k99

218

L a r g e I n d i v i d u a l I s s u e s O f f e r e d June 1 t h r o u g h 7

Issuer

Type 3/

Amount
Coupon
(millions Maturity r a t e or
of
net interdollars)
est. cost

O f f e r i n g Rating
yield

CORPORATE
V i r g i n i a E l e c . & Pwr. Co.
Common
Boston. E d i s o n Co.
1 s t mtg.
G e n e r a l T e l e . Co. of C a l i f . 1 s t mtg.
'Columbia Gas System, I n c .
Deb.
G e o r g i a Power Co.
1 s t mtg.

stk.
bds.
bds.
bds'

2h.2
25.0
20.0
20.0
15.5

1987
1987
1982
1987

k 5/8
5
5 1/2

.

4.53
5.oo
5.W.
5.10

5 1A.

Aaa
A
A
A

STATE AND LGCAL GOVERNMENT
T a c o m a / Washington
Columbus, Ohio
Los A n g e l e s , C a l i f o r n i a
San A n t o n i o , Texas
D a l l a s , Texas
OTHER
None




Lt, & Pwr. r e v .
5:0
G.O.
. 5.0
Elec. rev.
15.0
Water r e v .
13.9
Airport rev
6.3

1959-83
1959-83
.1958-87
1966-81:
1962-81

h.29

3.35
3.88
3.78
11

h.

3.15-1.25
2.60-3.U0
2.50-3.90
3.30-3.80
n.a.
-

Baa
Aa
Aa
Aa
n.a.

E-2

n.a.—Not available;
1 / Includes corporate and o t h e r 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 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 $5 m i l l i o n and o v e r .
2 j 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 Reconstruction and
Development i s s u e s .
z
3 / In the 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. denotes g e n e r a l
o b l i g a t i o n ; R e v . , revenue bonds; G.R., g e n e r a l 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; 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 by pledge of
d e s i g n a t e d revenuesT




i
H.Ik .

. Exhibit F
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 Capital
~~ (Other than U. S . Treasury) l /
Expected Proceeds from Forthcoming Large I s s u e s

Date of
computation

During month f o l l o w i n g
date shown
S t a t e and
Corporate
Other £ /
l o c a l govt.

1956 - May 31
June 29
July 31
Aug. 31
S e p t . 28
Oct. 31
Nov. 30
Dec. 31
1957 - J a n . 31
Feb. 28
Mar. 29
Apr*. 30
May 31

198
1+37
21+7
369
315
683
1*36
476
591
IbP

1*61
187
525

Subsequent t o
date shown
S t a t e and
Other.2^
Corporate
local govt.

332
81
131
359
162
1+8
280
153
153
290
179
97

37

r

23
100
35
25
25

W+8
567
1,096
1,202
1,009
990
1+81
796
966
795
1+86
258
525

9U1
690
726
958
1,197
955
979
763
61+8
631
862
396
388

37

23
100
35
25
25

Forthcoming Large O f f e r i n g s , as of June 7
Issuer

Type

Amount
Approximate date
(millions
of o f f e r i n g
of d o l l a r s )

CORPORATE
General Telephone Corp.
Metropolitan Edison Co.
I n t e r n a t i o n a l Business Machines Corp.
Commercial Credit Co.
Consolidated Natural Gas Co.
Michigan Wisconsin Pipe Line Co.
Michigan Consolidated Gas Co.
Fairbanks Morse & Company
Southern B e l l T e l . & T e l . Co.
P u b l i c S e r v i c e E l e c t r i c & Gas Co.
A s s o c i a t e s Investment Co.
Texas Eastern Transmission Corp.
. Texas Eastern Transmission Corp.
Kerr McGee•Oil I n d u s t r i e s , I n c .
Puget Sound Power & Light Co.
Delaware Power & Light Co.
• P h i l a d e l p h i a E l e c t r i c Co.




Conv. deb.
1 s t mtg. b d s .
Common s t k .
Notes
S . F . deb.
1 s t mtg. b d s .
1 s t mtg. b d s .
Deb.
Deb.
Pfd. stk.
Deb.
Conv. p f d . s t k .
Deb,.
S.F-. deb.
1 s t mtg. b d s .
1 s t & c o l l . t r . bds.
Common s t k .

1+1+.5
19.0
231.0
75.0
25.0
30.0
30.0
15.0
70.0
25.O
20.0
20.0
15.0
15.0
20.0
15.0
22.1

June 10
(rights expire)
June 10
June 10
(rightsexpire)
June 12
June 12
June 13
June 18
June 18
June 19
June 19
June 20
June 20
June 20
June 22
June 25
June 25
June 25
(rights expire)

- H.lU

F-2
Forthcoming Large O f f e r i n g s , as of June 7 (Cont'd)
Issuer

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 )

Type

CORPORATE ( C o n t ' d )
•Household Finance Corp.
Southern C a l i f o r n i a Gas Co.
*Kaiser Aluminum & Chemical Corp.
•Timken R o l l e r B e a r i n g Co.
•Southern C a l i f o r n i a Edison Co.
R o c h e s t e r Gas & E l e c t r i c Co.
•West Perm Power Co.
J e r s e y C e n t r a l Power & L i g h t Co.

S . F . deb.
1 s t mtg. b d s .
Conv. p f d . s t k .
Common s t k .
1st k
1st
1st
1st

ref.
mtg.
mtg.
mtg.

mtg. b d s .
bds.
bds.
bds.

Uo.o
35.0
30.0
19.4
1+0.0
15.0
20.0
15-0

June 27
June 27
.June 27
July 1
(rights expire)
July 2
July 3
J u l y 11
J u l y 17

STATE AND LOCAL GOVERNMENT
Cheltenham Sch. D i s t . A u t h . , P a .
S t a t e of Ohio
P i t t s b u r g h , Pennsylvania
•Cowlitz Co. P.U.D. No. 1, Wash.
•Hempstead Cen. H.S.D. Ho. 3» N. Y.
San Diego, C a l i f o r n i a
Independence, M i s s o u r i .
• S t a t e of Rhode I s l a n d
• S t a t e of Vermont
E a s t Baton Rouge P a r i s h Sch.
L'ist., La.
•Fabian River A u t h . , Texas
L o u i s v i l l e & J e f f e r s o n Cos. Sewer
D i s t . , Kentucky
•Louisiana State University
• H a r r i s Co., Texas
A t l a n t a , Georgia
Milwaukee, Wisconsin
Los Angeles C i t y Sch. D i s t s . , C a l i f .
S t a t e of Texas
Jacksonville, Florida
U n i v e r s i t y System Bldg. A u t h . , Ga.
P e n n s y l v a n i a Turnpike Commission
I n t e r - A m e r i c a n Center A u t h . , F'la.
New York S t a t e Thruway A u t h o r i t y
Oklahoma Turnpike A u t h o r i t y

Rev.
Highway r e v .
G.O.
G.O.
G.O.
G.O.
Eleo. rev.
G.O.
G.O. '

6.U
32.0
5.2
20.0
8.2
5.0
8.0
7.0
9.3

June
June
June
June
June
June
June
June
June

G.O.
Water r e v .

10.0
5.0

June 22
June 2L\.

8.0
7.5
5.015.0
10.0
Wt.o
12.5
30.0
12.0
62.0
20.0
50.0
65.0

June 25
June 26
June 271
J u l y 20
J u l y 23
August 13
1957
1957
1957
1957
1957
1957
1957

39 . u

June 26

Rev.
Bldg. r e v .
G.O.
G.O.
Water r e v .
G.O.
G.O.
Utilities rev.
Rev.
Rev.
Rev.
G.O.
Rev.

11
12
12
12
13
13
13
lg _
20

OTHER
• M e t r o p o l i t a n Toronto, O n t a r i o




. Deb.

H.lU

F-3

•—Included in t a b l e for f i r s t time.
l / 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 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 o t e . — D e l e t i o n s f o r r e a s o n s o t h e r t h a n s a l e o f i s s u e s S t a t e of L o u i s i a n a ,
$16 m i l l i o n g e n e r a l o b l i g a t i o n i s s u e — p o s t p o n e d i n d e f i n i t e l y .




Exhibit G
Y i e l d s on New and Outstanding
E l e c t r i c Power 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
seasoned y i e l d s
seasoned y i e l d s
(per cent)
(per cent)
(basis points)
(basis points)

1952 - 1956
High
Low

ii. 30(12/12/56)
2.93(3/31/51*)

1956 - July
August
September
October
November
December

3.66
*lu07
h.13
*it.20
. *U.30
*lu30

1957 - January 8
16 *
18
22
2lt
February 5
19
27
March 6
12
20
29
April 3
10
12
May 10
15
16
21
23
29
June 5
7

14.50
it.lt3 .
lt.ltO
It. 29
L 25
It.22

It. 29

62
- 3
29
52
53
lt8
52
1+7

.

62
56
53
lt5
lt6
• lt3

50

It. 50 ,
it. 38 2 /

65
51

lt.63

75

It.58(12/6/5%)
3.00(3/17/51)

70
-15
28
lt3

*3.82
*lt.00
None
*lt.ltO
None
*lt.58

63
70

lt.67

70

It.56

57

it.ia
it. 58
it.55
lt.lt5

35
52
lt9
it3

It. 60
It. 50
it.53
lt.53 2 /
it. 70

59
lt9
52
52
69

5.00
5.25
5.10

•

98
123
106

*—Single observation, not an average.
1 / Covers only 30-year f i r s t mortgage bonds,. a s reported i n Moody's Bond
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 the amount above
seasoned y i e l d s are averages of o f f e r i n g s during the indicated period andx of the
d i f f e r e n c e s between these 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
s i m i l a r q u a l i t y f o r the same day. Average maturity f o r the seasoned i s s u e s v a r i e s
ffrom 26 t o 28 y e a r s .
2 / Provides f o r a 5-year period during which i s s u e may not be c a l l e d f o r
refunding a t a lower coupon r a t e . Other i s s u e s have no such p r o v i s i o n .




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