Full text of H.16 Capital Market Developments : November 10, 1958

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H o t f p r Publication

decoNTBOILED AFTER SIX MONTHS

h.llr

November 10, 1958.
.

CAPITAL MARKET DEVELOPMENTS •

The volume of public s e c u r i t y f i n a n c i n g f o r new c a p i t a l was
moderate l a s t week, and i s expected to be. even smaller t h i s week. During t h e week ending November 7, which included an e l e c t i o n holiday,
corporations sold l a r g e issties t o t a l i n g $55 m i l l i o n and S t a t e and l o c a l
governments o f f e r e d i s s u e s with proceeds of ^82 m i l l i o n . The s a l e of
another corporate issue—Indiana and Michigan Electric- Company's *20
m i l l i o n f i r s t mortgage bond issue—was o r i g i n a l l y scheduled- f o r l a s t
week, then postponed. The calendar f o r t h i s week includes l a r g e S t a t e
and l o c a l government i s s u e s f o r $83 m i l l i o n ; no l a r g e corporate i s s u e s
are expected.
Bond y i e l d s - Bond y i e l d s showed l i t t l e change l a s t week.
Yields declined f o r a l l c a t e g o r i e s of outstanding bonds, except those
f o r U. S.-Government o b l i g a t i o n s , which remained s t a b l e .
Stock p r i c e s - Stock p r i c e s , a s measured by Standard and
P o o r ' s index of 500 common stocks, reached a new record high of 52.kS
on November 6 following s u b s t a n t i a l i n c r e a s e s on Monday and Wednesday.
Although p r i c e s declined on Friday, the index closed a t 52.26, nearly
2 p e r cent h i g h e r than a week e a r l i e r . Trading volume continued t o be
a c t i v e , averaging U.O m i l l i o n shares a day.
More d e t a i l e d information concerning recent c a p i t a l market
developments i s presented in the a t t a c h e d e x h i b i t s .

Capital Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of t h e Federal Reserve System.




tXHIBIT A
CIGil-GSADE

B O N D YIELDS

LOWER - GRADE

BOND

YIELDS




H.llt

Exhibit^
Tables f o r Exhibit A •
High-grade Bond Yields

Date

Corporate
Aaa 1/

U. S. Govt,
long-term 2/

Spread between
U. S. Govt, and
Corporate S t a t e and
Aaa
l o c a l Aaa

S t a t e and
l o c a l govt.
Aaa 2 /

(Per cent)
1953
19SU
1957
1958

-

High
Low
High
High
Low

3.h2
2.85
lt.lU
a. 13
3.55

Oct.
Oct.
Oct.
Oct.
Nov.

10
17
2k
^
31
7 2/

li.13
U.09
ii.io
U.12
it.ll

(6/19)
(lt/23)
(9/27)
(10/10)
(5/2)

3.19
2.L5
3.76
3.83
3.07

(6/5)
(8/6)
(10/18)
(10/3)
(ii/25)

2.73
1.90
3.L5
3.31
2.61

(6/25)
(9/2)
(8/29)
(9/11) .
(5/1)

.83
.30
.17
.62
.3k

.1*1
.35
.33
•37
.36

3.25
3.21
3.23
3.21 ,
3.19

3.72
3.71*
3.77
3.75
3.75

.38
.30
.60
.51
.22

• k7

•5?
•5U
.56

Lower-grade Bond Yields
Spread between
Aaa and Baa
S t a t e and
Corporate
l o c a l govt.

S t a t e and
l o c a l govt.
Baa y

Corporate
Baa 1/

Date

(Per cent)
1953
195L
1957
1958

- High
— Low
- High
- High .
Low

Oct.
Oct.
Oct.
Oct.
Nov.

10
17
2k
31 .
7 2/

.

3.89
3.W*
5.10
k.96
U.51

(9/18)
(12/31)
(11/29)
(1/3)
(7/11)

k.9k
k.9k .
U.91
li.90
L 89

.

3.79
2.93
L.51
k.3k
3.6k
a. 30
a. 26
a.2a
a. 16
a. 12

(6/25)
(8/5)
(8/29)
(9/11)

'

.69
.52
1.27
1.28
.77

(5A)

^

.81
.85.
.91
.78
.78

1.21
.96
1.21
1.11
' .93
1.05
1.05
1.01
.95
.93

2 / Preliminary.
1 / Weekly average of d a i l y f i g u r e s . Average term of bonds included i s 25-26 y e a r s .
2 / Weekly average of d a i l y f i g u r e s . The s e r i e s includes bonds due or c a l l a b l e in
10 y e a r s or- more.
2 / Thursday f i g u r e s . Only general o b l i g a t i o n s bonds are included; average t e r n
i s 20 y e a r s .
Note.—Highs and lows a r e f o r individual s e r i e s and may be on d i f f e r e n t dates f o r
different series.




EMimn c
STOCK MARKET

1953

1954




1955

1956

1957

1958

Exhibit D
Table f o r Exhibit C
Stock Market
Stock p r i c e
index 1 /

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

Stock market customer c r e d i t
Customers'
Bank
Total debit b a l - loans t o
ances 1*/ "others" 5/
(Millions of dollars)

1953 - High
Low
1951* - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low
1958 - High
Low

26.5k
22.95
35.98
21.93
15.89
35.28
1*9.61*
1*3.22
1*9.08
39.1*8
52.26
1*0.37

September
October
Oct. 2ii
Oct. 31
Nov. 7 jq/

1*8.85
50.95
50.8151.33
52.26

(1/2)
(9/18)
(12/31)
(1/8)
(12/9)
(1/li*)
(8/3)
(1/20)
(7/12)
(12/20)
(11/7)
(1/10)

2.5
0.9
3.7
1.1*
1*.6
1.5
3.1
1.5
1*.2
1.1*
l*-9
1.7

5.38
6.25
1*.32
5.82
U.08
i*.i*i
3.82
l*.3l*
, 3.91
1*.72
3.1*1*
1*.S6

2,1*55
2,055
3,1.36
2,lt05
It,030
3,537
ii.Oltf
3,911i
It,031
3,576
It, 313
3,55k

1,665
1,311*
2,388
1,653
2,805
2,517
2,823
2,71*0
2,887
2,1*82
3,111*
a,1*87

780
661*
1,01*8
71*6
1,21*1
1,018
1,267
1,155
1,163
1,051*
1,317
1,051

3.1*
Ll
3.9
h.l
l*.o

3.69
3.52
3.51*
3.50
3.a

It, 313

3,111*

-n.a.

n.a.

"1,199
1,181
1,171*
1,181
n.a.

n.a.——No . a v a i l a b l e .
£ / Preliminary.
1 / Standard and Poor's composite index of $00 common stocks, weekly closing
prices19l*l-l*3"10. Monthly data are averages of daily f i g u r e s r a t h e r than of
Fridays' only. Highs and lows are f o r Friday's data only.
2 / Averages of d a i l y trading volume on the New York Stock Exchange^
2 / Standard and Poor's composite stock y i e l d based on Wednesday data converted to weekly closing p r i c e s by Federal Reserve. Yields shown are f o r dates
on which price index reached i t s high or low.
h / 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 secured by U. S. Government obligations.
Wednesday f i g u r e s f o r weekly reporting member 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 in New York and
Chicago. Weekly reporting banks account f o r about 70 per cent of loans to others.
For f u r t h e r d e t a i l see Bulletin.
Note.—Highs and lows are f o r individual series and may be on d i f f e r e n t dates
for different series.




Exhibit E

H.lii

Long-term 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 )

195b
January
February
March
April
May
July
August
September
October
November
December
1st
2nd
3rd
4th

quarter
quarter
quarter
quarter

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

New c a p i t a l
Corporate 1 /
S t a t e and l o c a l 2 /
1
1956
1958
1956
1
1957
1
1
1957
1,060
1,065
1,320

573
712
817

812
953
511

742
572
506

404
696
390

1,11a
600
881

1,453

818
1,146
841

798
895
551

7#
546
393

378
490
735

E/I,IOI
p/471
e/1,100

1,003
92k
973

1,063
654
838

804
403
667

529
584
431

408
206
357

1,090
789
1,076

1,069V
1,088

2/447
e/600

698
633
#8

639 .
347
409

J :i t ?
2,899
2,951

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

6,59b
9,193
12,447

4,907
7,463
10.384

723
•

e/600
e/600
3,135
2,622
e/2,672
5,757
e/8,429

;»

*

2,276
%

1,820 .
1,704
1,544
2,029

1,490
1,603
971
1,395 .

3,524
5,069
7,099

3,093
4,064
5,459

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

quarter
quarter
quarter
quarter

2,894
2,583
e/2,622

Year

3,237
2,889
2,582
. 2,810

1,647
2,541
2,246
2,826

11,518

9,260

e / Estimated.
1/ S e c u r i t i e s and Exchange Commission e s t i m a t e s of n e t p r o c e e d s .
2 / Data through June 1956 a r e Bond Buyer data c l a s s i f i e d as new c a p i t a l by
Federal Reserve; l a t e r , data a r e from t h e Investment Bankers A s s o c i a t i o n of America
and a r e somewhat more complete a s t o coverage than t h e e a r l i e r d a t a , p a r t i c u l a r l y
f o r F e d e r a l Government l o a n s .
3 / I n c l u d e s #718.3 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 .
4 / I n c l u d e s $571.5 m i l l i o n AT&T common stock i s s u e .
j-j/ 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 consumer l'inance
companies




Exhibit F

H.Ik

Other Security Offerings 1 /
( I n millions of dollars)
Long-term
Foreign government 2/
Federal agency 3/
1956
1957
1956
1958
|
1937
"196
53

8k
k9
30

~8

139
198
120

123
k8
k2

95

37

507

523

125

50

28
7
^3°
k
60
1

1,163
251

72

2
39

"

19W

60

60

16U
109

215

III*
5
21

100

300

572

Short-term
State and l o c a l government it/

169

Federal agency 3/

233
1460
273

326
k55
lk7

196
357 .
2k9

371
208
lkk

638
k30
505

380
220
283

82

205
337
153

125
252
176

209
161
329

336
k69
501

I S
260

289
U23

272
272
252

195
207
179

601
206
330

22k
370
512

222
k25
273

12
159

29k
328
lk8

255 '
116

k07
222
128

3,27k

2,706

,26k

fi/362

1#

5,5k 3

3,k57

e / Estimated.
jd/ Preliminary.
1/. tota presented i n t h i s exhibit d i f f e r frv.i- those in Exhibit E in that refunding i s s u e s , as well as new c a p i t a l issues, are included. Long-term s e c u r i t i e s are defined as those maturing in more than one year.
2 / Includes s e c u r i t i e s offered i n the United States by foreign governments and
t h e i r subdivisions and by i n t e r n a t i o n a l organizations. Sources Securities and Exchange Commission.
J / I s s u e s not guaranteed by the U; S. Government. Source: long-term, S ecuri t i es
and Exchange Commission; short-term, Federal Reserve.
lj/ P r i n c i p a l l y tax and bond anticipation notes, warrants or c e r t i f i c a t e s and Public
Housing Authority notes. In some instances PHA notes included may have a somewhat
Digitized
l o n gfor
e r FRASER
term than one year. Source: Bond Buyer.



Exhibit G

H.lU

Large Long-to mi Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large Issues Offered
(Millions of d o l l a r s )

Corporate

Month

1957 - October
November
December
1958 - January
February
March
April
May
June
July
August
September
October

Slh
1*20
399
318
605
1,093
725
356.
281
771
209
825
259

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

'

393
3 hh
hoh
I4IO
553
162
300
505
195
275
109
288
172

Other 2 /

151*
1,357
2#
653
16U
86
1*1
18
209

Large Individual Issues Offered November 1 through 7
Issuer

Type 3 /

—

Columbia Gas System, Inc.
Nat. Gas Pipeline Co.

Amount
Coupon
( m i l l i o n s Maturity
r a t e or Offering
of
net i n t e r - y i e l d
dollars)
e s t cost

Deb.
25.0
1 s t mtg.p.l.bdsJO.O

1983
1978

L 7/8
h 5/8

1.60
ii. 68

196^-83
1960-68
1959-99

3.82
3-1*6
3.35

3.10-3.85
2.25-3.55
1.75-3.15

Rating

STATE AND LOCAL GOVERNMENT
Chicago, I l l i n o i s
Baltimore Co., Maryland
Public Housing A u t h o r i t i e s
OTHER.
None




Rev.-Ut.
G.C.
G.O.

.

25.0
11.5
45.3

A
A
Aaa

E.Ik

G-2

n.a.—Not a v a i l a b l e .
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 Si5 million and over5
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 $10 m i l l i o n and over.
J2/ 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 and. non-guaranteed i s s u e s by Federal agencies.
3 / In 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 s ; Rev.-Ut., revenue o b l i g a t i o n s secured only by income from p u b l i c u t i l i t i e s ; Rev.-Q.Ut., revenue bonds secured only by revenue from q u a s i - u t i l i t i e s ;
Rev.-S.T., revenue bonds secured by revenue from s p e c i f i c t a x e s only; Rev.-Rent.,
revenue bonds secured s o l e l y by l e a s e payments.




H.lti

Exhibit H
Forthcoming Large Long-term Public Security Offerings f o r New Capital
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues

Date of
computation

J.957 - Sept, 30
Oct. 31
Nov. 29
Dec. 31
1958 - Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 29
June 30
July 31
Aug. 29
Sept. 30
Oct, 31

During month f o l l o w i n g "
date shown
S t a t e and
Corporate l o c a l govt. Other 2/
576
1*58
383
378
1*98
1,123
555
356
266
768
161
785
113
20l*

33li
339
363
3 1*5
370
13U
298
1*93
177
225
55
21*1
295
258

30
18
150
110
150
36

--

Subsequent to
date shown
State and
Corporate l o c a l govt. Other 2/
61*7
815
1,193
1,161
1,378
1,208
670
561
1*61*
1,01*8
381
911*
216
326

z

551
51*3
558
561*
1*87
31*1
330
1*93
208
235
125
1*35*
521*
675

15
1*5
63
165
110
150
36

—

Forthcoming Large O f f e r i n g s , as of November 7
Type

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

CORPORATE
P a c i f i c Telephone & Telegraph Co.
Martin Co.
General Public U t i l i t i e s Corp.
Arvida Corp.
^Northern Natural Gas Co.
*P. L o r i l l a r d Co.
P a c i f i c Telephone and Telegraph Co.
Consumers Power Co.
Montana Power Co.
Commerce Oil Refining Corp.
Indiana & Michigan E l e c t r i c Co.

Deb.
S.F. deb.
Common s t k .

80.0
20.0
21.h

Common s t k .
S.F. deb.
Common s t k .

27.5
30.0
2li.0

Common s t k .
Pfd. s t k .
1st mtg. bds.
Deb., bds. & common
1 s t mtg. bds.

16.6

15.0

20.0
I6.0
20.0

Nov. 19
Nov. 19
Nov. 21
( r i g h t s expire)
Nov. 25
Nov. 26
Dec. 9
( r i g h t s expire)
Dec. 30
( r i g h t s expire)
Winter
Winter
Winter
Winter

STATE AND LOCAL GOVERNMENT
S t a t e of Maryland
Port of New York Authority




G.O.
Rev.-Ut.

16.8
25.0

Nov. 12
Nov. 12

H.ll;

ti-2
Forthcoming Large O f f e r i n g s , a s of November 7 (Cont'd)
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 )
. Nassau Co., New York
Allegheny Co. S a n i t a r y A u t h . , Pa.
Los Angeles Sch. D i s t . , C a l i f ,
O r a n g e Co., C a l i f o r n i a
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
* S t a t e of Ohio
S t a t e of C a l i f o r n i a
E a s t Baton Rouge P a r i s h , L o u i s i a n a
New York S t a t e Power A u t h o r i t y
Chesapeake Bay F e r r y Commission
D e t r o i t - M e t r o . Expressway
^Massachusetts P o r t A u t h o r i t y

G.O.
Rev.-Ut.
G.O. Rev.-Ut.
G.O.
Rev.
G.O.
G.O.
G.O. .
•Rev.-Ut.
Rev.-Ut.
Rev.-Ut.
Rev,—Ut.

21.6
20.0
26.0
15.8
17.4
12.5
30.0
•50.0
22.5
200.0
IhhoO
35.0
75.0

Nov. 13
Nov. 13
Nov. 18
Nov. 19
Nov. 20
• Nov.
Dec. 2
Dec. 3
Dec. 10
Winter
Winter
Winter
Winter

OTHER
None
—Included i n t a b l e f o r f i r s t t i m e .
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 and over3 S t a t e and
l o c a l government i s s u e s of $10 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 R e c o n s t r u c t i o n and
Development i s s u e s and nori-guaranteed i s s u e s by F e d e r a l a g e n c i e s .
N o t e . — D e l e t i o n s f o r reasons o t h e r t h a n s a l e of i s s u e : None.




H.lU

Exhibit I
Yields on New and. Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /
Date

1952 - 1957
High
Low
1958 - January
February
March
April
May 7
13
15
16
20
21
22
28
June 10
17
25
July 2
9
18
23
Oct. 7
15
28
29

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
( p e r cent)
( p e r cent) seasoned y i e l d s
(basis points)
(basis points)
5.00(8/14/57)
2.93(3/31/54)

87
-3

5.50(11/7/57)
3.00(3/17/54)

123
-15

*3.60.,
3.89^
4.08
3.91

-8
22
35
18

3.96^/
4.07
4.16
4.01
4.00

3
9
-1
8
3

4.07
4.35

4
32

4.oo
3.95

-l
-6

3.90

21

3.85
3.85

16
16

3.85
3.82
3.95

17
12
24

4.00
4.10
4.10
4.57
4.50
4.4O 2 /
4.42=^

25
28
29
25
22
12
14

•

3.98^/

1

4.352/

31

.

*—Single observation, not an average.
1 / Covers only 30-year f i r s t mortgage bonds, as reported in Moody's Bond
Survey. Except where i n d i c a t e d , t h e 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 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 period and of t h e
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
s i m i l a r q u a l i t y f o r t h e same day. Average m a t u r i t y f o r the seasoned i s s u e s
v a r i e s from 26 to 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 . Monthly averages so marked include one or more
i s s u e s with such a p r o v i s i o n . Other i s s u e s have no such p r o v i s i o n .




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