Full text of H.16 Capital Market Developments : April 25, 1956

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'//d o
Not f o r P u b l i c a t i o n
H.lk

IfflCOKTEOLLED AFTER SIX MONTHS
-

A p r i l 25, 1956

CAPITAL MARKET DEVELOPMENTS
The volume of l a r g e p u b l i c l y o f f e r e d s e c u r i t y i s s u e s was
s m a l l d u r i n g t h e week ending A p r i l 20. Only one $1|0 m i l l i o n c o r p o r a t e d e b e n t u r e i s s u e and a $7 m i l l i o n S t a t e and l o c a l government
bond i s s u e were s o l d . This week, ending A p r i l 27, t h e volume of
l a r g e p u b l i c o f f e r i n g s w i l l be heavy. Two c o r p o r a t e i s s u e s w i t h
a g g r e g a t e p r o c e e d s of &5l m i l l i o n - a n d e i g h t S t a t e and l o c a l i s s u e s
t o t a l i n g $98 m i l l i o n a r e s c h e d u l e d f o r s a l e . O f f e r i n g of a $50 m i l l i o n d e b e n t u r e i s s u e of t h e P r o v i n c e of O n t a r i o , Canada, i s a l s o
scheduled.
Bond y i e l d s - Y i e l d s on a l l t y p e s o f o u t s t a n d i n g bonds
i n c r e a s e d f u r t h e r d u r i n g t h e week e n d i n g A p r i l 20. Y i e l d s on c o r p o r a t e A a a - r a t e d bonds jumped s i x , b a s i s p o i n t s , t h e s h a r p e s t weekly
i n c r e a s e s i n c e t h e end of World War I I . D a i l y d a t a i n d i c a t e a f u r t h e r i n c r e a s e i n c o r p o r a t e and U. S . Government y i e l d s t h r o u g h
Tuesday of t h i s week.
Y i e l d s on newly i s s u e d bonds a l s o i n c r e a s e d . A new
A a - r a t e d f i r s t mortgage p u b l i c u t i l i t y bond i s s u e was r e o f f e r e d
a t 3 . 7 7 p e r c e n t on Wednesday, A p r i l 2 5 , a y i e l d n i n e b a s i s p o i n t s
h i g h e r t h a n t h a t on a s i m i l a r i s s u e s o l d a week e a r l i e r . The y i e l d
on an A - r a t e d d e b e n t u r e i s s u e o f f e r e d A p r i l 1 1 a t 3 . 8 5 p e r c e n t i n c r e a s e d t o n e a r l y ii.00 p e r c e n t when p r i c e r e s t r i c t i o n s were l i f t e d
on A p r i l 2 3 w i t h t h e i s s u e s t i l l l a r g e l y u n d i s t r i b u t e d .
The r e c e n t s h a r p i n c r e a s e i n borrowing c o s t s has r e s u l t e d
i n a r e d u c t i o n i n amount or c a n c e l l a t i o n of t h r e e l a r g e c o r p o r a t e
s e c u r i t y i s s u e s which had been s c h e d u l e d . I n none of t h e s e i n s t a n c e s were t h e p r o c e e d s i n t e n d e d f o r p l a n t and equipment expendi t u r e s , however. One £12 m i l l i o n p r e f e r r e d s t o c k o f f e r i n g , t h e
p r o c e e d s from which were t o b e used t o r e p a y bank l o a n s , was c a n c e l e d ; a # 1 6 . 5 m i l l i o n bond i s s u e was r e d u c e d t o $3.1* m i l l i o n and
a &25.0 m i l l i o n i s s u e cut i n h a l f as companies c a n c e l e d p l a n s f o r
r e f u n d i n g o u t s t a n d i n g s e c u r i t i e s . Bids on some S t a t e and l o c a l
government i s s u e s have r e c e n t l y been r e j e c t e d b e c a u s e of t h e h i g h
interest cost.
S t o c k p r i c e s - Common s t o c k p r i c e s , as measured by t h e
SEC i n d e x of 265 s t o c k s , d e c l i n e d s l i g h t l y d u r i n g t h e week ending
A p r i l 20, c l o s i n g a t 28U.6. Average d a i l y t r a d i n g volume was
2 . 3 million shares, the lowest since mid-February. Daily indexes
i n d i c a t e some f u r t h e r d e c l i n e i n p r i c e s t h r o u g h Tuesday of t h i s
week.
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 Reserve System.




HIGH-GRADE BOND YIELDS
Weekly

CORPORATE

\

U. S. G O V E R N M E N T : / / V " M

STATE AND LOCAL
GOVERNMENT A a a

"

.953 '

,954 '

U. S. Govt.y long-term %/
Date

Corporate
Aaa 1 /

Old series

New series

Spread between
State and
U. S. Govt,
local govt. (old series) and
Corporate 1State and
Aaa 3 /
Aaa
(local Aaa

(Per cent)
1953 - High
Low
195U - High
1955 - High
Low
1956 - High
Low
March
March
April
April
April

23
30
6
13
20

3.U2
2.99
3.09
2.85
3.17
2.91
3.27
3.07

(6/19
(1/9)
(1/8)
(U/23)
(12/23)
(1/7)
(U/20)
(3/2)

i s

3.16
3.21
3.27

3.15 (6/6)
2.78 (12/26)

2.7L (1/9)
2.UU (8/7)
2.9U (8/5)

2.62 (1/7)

3.08 (U/20)
2.80 (2/17)
2.93
2.96
3.03

3.06

3.08

1/ Weekly average of daily figures.

n.a.
n.a.
n.a.
n.a.
3.03 (8/5)
2.89 (6/10)
3.13 (U/20)
2.92 (2/3)

2.73
1.98
2.21
1.90
2.31
2.05
2.U3
2.17

2.99
3.01
3.07
3.09
3.13

(6/25)
(1/8)
(6/l0)
(9/2)
(9/8)
(5/26)
(U/19)
(2/23)

• 38
.19
•U3

.8U
• 30

.61

*3U

.29
• 70

S

:S

2.27
2.33

.19

.66

2.38
2.U3

.19

:is

I

.13

.18

•56

.65

Average term of bonda included i s 25-26

2 / Weekly averages of daily figures. The old series includes f u l l y taxable,
marketable 2 1/2 per cent bonds due or f i r s t callable after 12 years through
September 1955, and those due or callable 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 to
11 1/2 years in early 1956. The new series i s comprised of the 3 per cent bond
of 1995 and the 3 l/U per cent bond of 1978-83.
3/ Thursday figures. Only general obligation bonds are included; average
term Ts 20 years.
Note.—Highs and lows are f o r individual series and may be on different dates
for different series.




EXHIBIT B

LOWER - GRADE BOND

YIELDS

Weekly

Per cent per annum

Iz '

Corporate
Baa 1/

Date

V

V?-v/j

State and
local govt.
Baa 2 /

State and
local govt,
rev. 3 /

(Per cent)
1953 - High
Low
195U - High
Low
1955 " High
Low
1956 - High
Low
March
March
April
April
April

23
30
6
13
20

3.89
3-50
3.71*
3.1*1*
3.63
3.1*5
3.70
3-58
3.60
3.62
3.61*
3.67
3.70

(9/18)
(1/2)
(1/8)
(12/31)
(12/30)
(1/11*)
(l*/20)
(3/9)

3.79
2.96
3-32
2.93
3.26
3.02
3.1*0
3.20
3.26
3.29
3-33
3-35
3.1*0

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)
(1/6)
(1*/19)
(3/8)

3.27
2.71
3.00
2.72
2.99
2.76
3.10
2.89

(6/26)
(1/2)
(1/1)
(8/13)
(12/30)
(1/7)
(U/20)
(2/21*)

2.98
3.00
3-01
3.06
3.10

1/ Weekly average of daily figures. . Average term of bonds
included is 25-26 years.
2/ Thursday figures. Only general obligation bonds are
included; average term is 20 years.
3/ Friday figures. Average rating of bonds included is
between Baa and A; average term is 20 years.
Note.—Highs and lows are for individual series and may
be on different dates for different series.




STOCK MARKET

Stock price
index 1 /

Common
Trading
volume 2/
stock
(millions yields 3/
of shares) (per cent)

Stock market customer credit
Customers'
Bank
debit bal- loans to
ances v
"others" 5 /
(Millions of dollars)

1953 - High
195k-

High

1955 - High
Low
1956 - High
Low
February
April 6
April 13
April 20

167.1
U*1*.0
221.U
156.5
270.7
217.U
290.8
257.U

(1/2)
(9/18)
(12/31)
(1/6)
(12/30)
(l/lli)
(l*/6)
(1/20)

266.3
283.2
290.8
285-6
28U.6

He tie 11 v u, ttvaxiauxD#
available.

2.5
0.9
3.7
1.U
U.6
1.5
3.1
2.0

5-75
5-15
5-33
It. 20
U.22
3.78
1*.08
3.68

2,165
2,055
3,U36
2,L05
U,030
3,537
U,ol*o
3,991

1,665
1,31k
2,388
1,653
2,805
2,517
2,786
2,710

780
661*
1,01*8
7U6
1,21*1
1,018
1,267
1,21*9

2.3
2.7
2.8 •
2.6
2.3

3-93
3.68

3,991
1,038

2,7U0
2,786

n.a.

n.a.

n.a.

1,251
1,252
1,252
1,259
n.a.

V SEC index of 265 common stocks, weekly closing prices, 1939-100; converted
to 1957-U9»100 by Federal Reserve. The conversion factor i s 123-912/ Averages of d a i l y trading volume on the New York Stock Exchange.
3/ Moody's 200 common stocks; end of month figures.
5 / End of month figures for member firms of the New York Stock Exchange which
carry"*margin accounts; excludes balances secured by U. S. Government obligations.
SJ Wednesday figures for weekly reporting member banks. Excludes loans for
purchasing or carrying U. S. Government securities at banks in New York and Chicago.
Weekly reporting banks account for about 72 per cent of loans to others.
Note.—Highs and lows are for individual series and may be on different dates
for different s e r i e s .




Exhibit D

H.lk

C o r p o r a t e 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 P l a c e m e n t s
( I n m i l l i o n s of d o l l a r s )
..New c a p i t a l
Corporate .
1
1955
1

S t a t e and l o c a l
r
1955T I

195k

1956

5U6
L36
1,261

5k7
U26
6#

kOk

535

;S/375

538

h9h
903
697

k97
6#
812

e/350

U27

July
August
September

. 563
65k
680

909
335
7hT

October
November
December

1,207
631
921

1,003
290
60k

2,2k3
2,09k
1,917
. 2,760
9,OIL

1,608
1,995
1,991
1,896
7,190

1956
January
February
March
April.
May
June

^ 1st quarter
2nd q u a r t e r
3rd q u a r t e r
Uth q u a r t e r
Tear

•

U87
708 •
e/875

e/800

e/2,070

696

312

./

£/l,U75

195k
396
Ull
#5

350
6kl

73k
7U8
853

J470
2k9
k06

279
261
6 k9

919
658
408

591
U23
877

1,385
l,kl8
1,121
1,981
5,911

1,372
2,33k
1,188
1,89k
6,789

E x c l u d i n g f i n a n c e companies 2 /
1st quarter
2nd q u a r t e r
3rd q u a r t e r
kth q u a r t e r
Year

e/1,670.
.

1,791
1,912
l,kkl
2,619
7,762

1,527
1,927
1,911
1,792
7,158

1 / I n c l u d e s $637•2 m i l l i o n AT&T c o n v e r t i b l e d e b e n t u r e i s s u e .
]?/ T o t a l new c a p i t a l i s s u e s e x c l u d i n g 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.
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 .




I

H.lii

Exhibit E
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

State and
local government

Corporate

1955 - March
April
May .
June
July
August
September
October
November
December
1956 - January
February
March

750
173
183
175
101

337
238
152
h03
278
65
23U
716
396
205
192
U33
163

U05

i
I
J

328
805
221
263
95
212
278

Other 2 /

__
15

25
50
——
—

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 A p r i l 2 t h r o u g h 20

Issuer

Type 3 /

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

Rating

CORPORATE
Bank of A m e r i c a .
S c o t t Paper
P l a n t a t i o n Pipe Line
F l o r i d a Power & L i g h t
Duquesne L i g h t
Caterpillar Tractor
Columbia"Gas
Southern C a l i f . Edison

Com. s t k .
Conv. d e b .
SF d e b .
1 s t mtg. bds.
1 s t mtg. b d s .
Com. s t k .
Deb.
1st & ref.
mtg; b d s .

STATE & LOCAL GOVERNMENT
Escanaba, Michigan
La. S t a t e Bldg. Auth.
P h i l a . School-Dist., Pa.
S t a t e of Massachusetts




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

56.0
98.7
25.0
15.0
20,0
3U.U
tio.o

1971
1986
1966
1986
1981

Uo.o

1981

7.0

19#-87w
1960-851958-81
1957-86

12.0
12.0

18.0

'

A
A
A

3 1/2

3.00
3.50
3.57
3-UO

3 7/8

3.85

A

3 5/8

3.68

Aa

3
31/2

3 5/6 •

3.89

2.88
2.37

3.00-3.80
2.90-3.00
2.00-3.10,
1.80-2.35

Baa
A
Aa

H.lU

E-2

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 A p r i l 2 t h r o u g h 20 ( C o n t ' d )

Issuer

Type 3 /

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

Rating

STATE & LOCAL GOVERNMENT
(Cont'd)
Detroit, Michigan
Omaha Public Power Dist.,
Nebraska
Oklahoma City School
District Mo. 69

G.O.

5.U

1957-81

Var.

2.00-2.90

A

Rev.

15.0

1958-86

2.9U

2.10-2.95

Aa

G» 0 .

6.8

1958-71

2.89

2.20-2.80

A

None
1 / I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of f>15 m i l l i o n and o v e r ;
State*™and l o c a l g o v e r n m e n t 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 / I n c l u d e s f o r e i g n g o v e r n m e n t 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 .
|
Z / I n t h e c a s e of S t a t e and l o c a l g o v e r n m e n t s e c u r i t i e s , G.O. d e n o t e s g e n e r a l
o b l i g a t i o n ; R e v . , r e v e n u e b o n d s ; 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 s e c u r e d by
f a c i l i t i e s r e v e n u e s ; 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 s e c u r e d by p l e d g e o f
designated revenues.
U/ For 1 9 6 1 - 6 6 m a t u r i t i e s o n l y ; 1 9 6 7 - 8 5 n o t r e o f f e r e d .

#



1

H.lli

Exhibit F
F o r t h c o m i n g L a r g e 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 t h a n U. S . T r e a s u r y ) . 1 /
Expected Proceeds from Forthcoming Large I s s u e s
During month following
date shorn
S t a t e and o t h e r 2 /
Corporate
l o c a l govt,
—

Date of
computation

- Mar. 31
Apr. 29
May 31
June 30
July 29
Aug. 3 1
Sept. 30
Oct. 3 1
Nov. 30
Dec. 30
- Jan. 3 1
Feb. 29
Mar. 30

211
125
160
67
k07
222
805
202
215
70
176
123
380

208
116
339
3Wi
100
iQk
8U3
330
205
121
327
220
132

Subsequent to
date shown
State and
Corporate
local govt.
922
1,111
850
830
1,135
920
90 9
U12
230
85
376
2#
1,013

50

2,009.
1,917
1,861
1,815
2,018
1,971
2,205
1,650
756
618
917
785
811

50

F o r t h c o m i n g L a r g e O f f e r i n g s , a s of A p r i l 20
Issuer

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 )

CORPORATE
W i s c o n s i n E l e c t r i c Power"
Westcoast Transmission Ltd.
Duke Power
General^ T e l e p h o n e

1 s t mtg. .bds.
Sub. d e b .
1 s t & r e f . mtg". b d s .
Conv. d e b .

- C a l i f o r n i a Oregon Power
G e n e r a l American T r a n s p o r t a t i o n

1 s t mtg. bds.
Conv. d e b .

-^Niagara Mohawk Power
^ N o r t h e r n I l l i n o i s Gas
K a i s e r Aluminum and C h e m i c a l
P a c i f i c Finance
General E l e c t r i c
A m e r i c a n T e l e p h o n e and T e l e g r a p h

G e n ' l . mtg. bds.
1 s t mtg. b d s .
Conv. p r e f . s t k .
Deb.
Deb. .
Deb.




30,0
20,5
30.0
53*0

16.0
23.8
30.0

15.0

30.0
25.0
300.0
250.0

A p r i l 2k
A p r i l 2k
May 1
May 7
(rights expire)
May 8
May 9
(rights expire)
May 9
May 16
May
May
Spring
June

H.lii

F-2
F o r t h c o m i n g L a r g e O f f e r i n g s , a s o f A p r i l 20 ( C o n t ' d )
Issuer

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
W i c h i t a , Kansas
Oakland, C a l i f o r n i a
F l o r i d a D e v e l o p m e n t Commission
S t a t e of Ohio
Philadelphia, Pennsylvania
H e m p s t e a d , N. Y . , Union F r e e
S c h o o l D i s t . No. 3
Columbus, Ohio
T e r r i t o r y of H a w a i i
A l l e g h e n y County S a n i t a r y A u t h . , P a .
B a l t i m o r e , Maryland
Los A n g e l e s , C a l i f . , D e p t . o f
Water & Power
G r e a t F a l l s , Montana
Pasadena, C a l i f .
Dade C o . , F l o r i d a , S p e c i a l Tax
S c h o o l D i s t . No. 1
^Orleans P a r i s h , La.
G e o r g i a R u r a l Roads A u t h o r i t y
C h e s a p e a k e Bay F e r r y Commission
F l o r i d a S t a t e T u r n p i k e Auth.
Oklahoma T u r n p i k e A u t h o r i t y
P e n n s y l v a n i a . T u r n p i k e Commission
Washington S t a t e T o l l Bridge Auth.
S a l t River P r o j e c t , Arizona
Inter-American Center Auth., F l a .

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

6.9
5-0
5.5
50.0
. 12.3

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

6.0
5.2
7-5
25.0
25.0

April 25
A p r i l , 26
A p r i l 26
May 1
May 1

Rev.
G.O.
G.O.

9,0
5.0
11.0

May 2
May 7
May 8

G.O.
G.O.
Rev.

15-0

May 16
May 16
May
. Spring
Summer
1956
1956
1956
1956
1956

5.0
15.5

20.0
185.0

Rev.
Revf
Rev.
Rev.
n . a.
Rev.

62.0
227.0
11.0
70.0

Deb.

50.0

65.0

April
April
April
April
April

2U
2b.
2k
25
25

^

OTHER
P r o v i n c e of O n t a r i o

A p r i l 25

«—Included in t a b l e f o r f i r s t 1
n.a„—Not available.
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 3 1 5 m i l l i o n and o v e r ; S t a t e and
l o c a l g o v e r n m e n t i s s u e s o f # 5 m i l l i o i 1 and o v e r .
2/ I n c l u d e s f o r e i g n g o v e r n m e n t £nd 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 D e v e l o p m e n t i s s u e s .