Full text of H.16 Capital Market Developments : April 7, 1955

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Not for Publication
,
DECONTROLLED AFTER SIX MONTHS
H.14

April 7, 1955
CAPITAL MARKET DEVELOPMENTS

Moderate volume of offerings last week - Proceeds from
large public offerings floated for new capital during the week ending
April 1 totaled 8? million dollars for State and local government
issues and 35 million for two corporate common stock issues. This
week 102 million dollars of large security issues are scheduled for
offering.
April outlook - The estimate of the corporate volume for 1
new capital in April is 550 million dollars, 13 per cent more than
the volume last April but less than half the current estimate of the
March 195$ total» The large public issues expected in April total
211 million dollars. Except in the case of the March estimate,
when the Gil and Gl.IAG issues totaling 579 million dollars were known z
in advance*'this expected forthcoming total is the largest it has
been since October.
The State and local volume of security issues in April is
estimated at 1*00 million dollars, 26 per cent less than the March
total and 46 per cent less than the amount offered in April.1954*
No large toll read offerings are currently scheduled for flotation
this month.
Refunding programs - Security issues which include proceeds
of 7»5 million dollars or more for refinancing since January 1, 1955,
or scheduled for offering thereafter, are listed on pages 3 and 4As in many of the refunding programs last year, a sizable portion
of total proceeds from these issues will be used to refund highinterest offerings of the April-September period of 1953.
Although refinancing is heavy so far in the first quarter
this year compared to that in the last thr.ee years, it has not
reached the volume of the last three quarters of 195b, as shown in
the table below.

Quarter
1st
2nd
3rd
4th

1955

1954

1953

1952

320 y

80
495
640
642

93
69
36
60

50
209
228
177

1/ Estimate for February and March of
issues over 7.5 million dollars by Federal
Reserve.
Source.—Securities and Exchange Commission




—2—
Bond yields - Yields on outstanding U. S. Government longterm bonds increased 3 basis points during the week ending April 1.
Daily figures show a further increase for the first two days of
this week. Corporate and State and local Aaa yields did not change
last week. No change occurred in the yields of the lower-grade bonds
Prices lower last week - Stock prices, as measured by the
SEC index of 2c>5 common stocks, decreased slightly last week to 227.9
Daily indexes indicate some increase on Tuesday and Wednesday of this
week after a small decline on Monday.
Further details on capital market developments available
from exhibits - More detailed information concerning recent capital
market developments will be found in the following exhibits which
are attached hereto:
A
B
C
D

"

-

High-Grade Bond Yields
Lower-Grade Bond Yields
Stock Market
Corporate, and State and Local
Government Security Offerings
and Placements
E - Large Public Security Issues
for New Capital (Other, than
U. S. Treasury)
p - Forthcoming Large Public Security
Offerings for New Capital (Other
than U. S. Treasury)
G - Yields on New and Outstanding
Electric Power Bonds, Rated Aa and A

Business Finance and Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




H.lii

-3Corporate Refunding Issues, Offered or Proposed i/

Type

Issuer
Trans florid Airlines - new
to refund

*Gen'l mtg
Deb

- new 1st & ref mtg
to refund Series bonds

Duke Power

Amt.
(mill, Term
doll.)
1*0.0
16.0

1969
1956

1*0.0 1975
32.0 1983

Coupon
rate

i v k

!

Date
expected
or offered

Aimed. Jan. 4
December 1945

" January 13
Various

36.0
33.4

1989

It 1/2

SF deb
Deb
Deb
Deb
Deb

25.0
2;8
2.5
4.2
4.8

1980
1963
1965
1966
1973

3.1|0
3 Vli

C.& P. Tel. of Balto. - new
to refund

Deb
Deb

25.0
15.0

1995
1984

3 lA
3 1/2

February 2
August 1953

Continental Baking — new
to refund

Sub deb
Cum pfd stock

13.0
13.2

1980

3 5/8

February 24
Various

U.S. Plywood
to
to
to
to

Union Oil

.

new
refund
refund
refund
refund

Conv deb
new
- Pfd stock
to refund
Purch
money oblg
to refund

Com stock
Maryland Casualty — new
' to refund Cum pfd stock

60.0 1975
23.8 .
5.2 1968

January 26
March 1948
October 1950
3 5/8 September 1951
It 1/2 September 1953

3
3-70

March 2
July 1945 ,
1
1953

March 16
November 1952

14.0
9.0

1967
1973

Chic., Rock Island & Pac.-new
to refund

Income deb
'Conv pfd

65.0
61.9

1995

It 1/2

March 24
Various

Arkansas Power & Lt. - new
to refund

1st mtg bds
1st mtg bds

18.0
18.0

1985
1983

3 3/8
It 1/lt

March 30
June 1953

*Notes
Cum pfd stock

50.0
44.2

Pure Oil

new
to refund

new
to refund

Philadelphia Elec.
new
to refund




1st & ref bds
1st & ref bds

50.0
30.0

104.52

103.45

March 10
July 1946

11.8
11.2

Sub cap deb
Deb

Pacific Finance

102 1/4

. January 11
3 3/lt September 1953 105.36"

Income deb
Pfd stock

N.Y.> Chicag o & St, Louis - new
to refund

Current
call
price

n.a.

1985
1983

3 7/8

104 1/4

105.18

Anncd. Mar. 31
September 1937
April 18
May 1953

105.30

H.lU

-Incorporate Refunding Issues, Offered or Proposed 2 /

new #Secd ser notes
Baltimore & Ohio
to refund Coll trust bds
Jersey Central Bower &. Lt-new
to refund

1st mtg bds
1st mtg bds

b o

Amt.
(mill, Term
doll.)

Type

Issuer

1965
1965

20.0
8.5

1985
1983

Coupon
rate

h

h

.

(Cont'd)
Date
expected
or offered

19§7
May 10
April 1953

Current
call
price

—

10U.86

• nf 7 C mi H i fir
lars and over since January 1, 1955* Any difference between the volume of a new
offering and the issue to be refunded will be applied towards new capital purposes.
2/ Company plans to place privately in April to refund collateral trust bonds
sold to the RFC in 191*7.
.
a—Private placement.
n.a.—Not available.
1 /

T n n l 11/-1 fie 4

oo rri




n/i

-P

I - G I A D I BOND YIELDS
Weekly

1 3.50
CORPORATE A M

U. $. GOVERNMENT
leeg-lerm, temekle

STATE A N D LOCAL
GOVERNMENT A a e

Date

Corporate
Aaa 1/

U. S. Govt,
long-term 2/

State and local
govt., Aaa 3/

Spread between
U. S. Govt, and
Corporate State and
local Aaa

(Per cent).
1952 - High

1955 - High
Loir

3.03
2.91
3.1*2
2.99
3.09
2.85
3.0l*
2.91

March
March
March
March
April

3.03
3.01*
3.03
3.01
3.01

1953 - High
Low
1951* - High

It
11
18
25
1

(l/l*)
(2/15)
(6/19)
(1/9)
(1/8)
(ii/23)
(3/11)
(1/7)

2.79
2.56
3.15
2.78
2.71*
2.1*1*
2.77
2.62
2.75
2.72
2.69
2.69
2.73

(12/27)
(5/17)
(6/6)
(12/26)
(1/9)
(8/7)
(2/25)
(1/7)

2.00
1.65
2.73
1.98
2.21
1.90
2.11
2.06

(10/23)
(5/1)
(6/25)
(1/8)
(6/10)
(9/2)
(2/10)
(1/6)

2.09
2.09
2.10 2.08
2.08

1.02
.71
.81*
.30
.61
.29
.67
.51*

.37
.19
.38
.19
.1*3
.32
.31*
.25
.28
.32
.31*
.32
.28

•

.66
.63
.59
.61
...65

1/ ".Teekly average of daily figures. Average term of bonds included is 25-26
years.
2/ Vfeekly average of daily figures. Old series. Average term to first call
of bonds included is 13-11* years.
3/ Thursday figures. Only general obligation bonds are included; average
terra Ts 20 years.
Note.—Higfis and Ions are for individual series and may be on different dates
for different series.




LOWER-GRADE BOND YIELDS
Weekly
CORPORATE Baa

V \ STATE A N D LOCAL GOVT

STATE A N D LOCAL GOVT. REVENUE

Date

Corporate
Baa 1/

State and
local govt.
Baa 2/

State and
local govt,
rev. 3/

(Per cent)
1952 - High
Loir
1953 - High
195k - High
Low
1955 - High
Low

3.63
3-1*8
3.89
3-50
3.71;
3 .lilt
3.1*9
3.15

March
March
March
March
April

3.1*8
3.U9
3.1*9
3.1*8
3.1*8

2*
11
18
25
1

(lA)
(5/16)
(9/18)
(1/2)
(1/8)
(12/31
(3/18)
(1/110

2.98
2.1*8
3.79
2.96
3.32
2.93
3.08
3.02
3.06
3.07
3.07
3.08
3.08

(10/23)
(1*/17)
(6/25)
(1/8)
(1/7)
(8/5)
(3/31) (1/6)
,

2.69
2.27
3.27
2.71
3.00
2.72
2.80
2.76

(12/19)
(l*/25)
(6/26)
(1/2)
(1/1)
(8/lJ)
(1*/1)
(1/7)

2.80
2.80
2.80
2.80
2.80

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

be on different dates



EXHIBIT C

STOCK M A R K E T

Millions of Dollars. Weekly

1952

Stock price
index 1/

Per Cent

1953

1954

1955

Stock market credit
3anK
Customers'
debit bal- loans to ,
"others" jy
ances V

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

(Millions of dollars)
1952 - High

Loir

1953 - High

Loir

1951 - Higi
1955 - Higi

Low -

February
March 18
March 25
April 1

165.3
151.7
167.1
lUlt.O
221.U
156.5
231.0
217.1

(12/26)
(10/21)
(1/2)
(9/18)
(12/31)
(1/6)
O/h)
(1/Ui)

226.8
222.7
228,1
227.9

2.0
0.9
2.5
0.9

s.

2.5
3.2
2.9

3,537

1,332
1,211
1,665
l,31ii
2,388
1,653
2,590
2,517

656
552
780
661
1,048
716
1,073
1,018

3,61*3

2,590

1,053
1,052
1,073

5.77

1,986
1,80b
2M5

5.33

Itfd

II

U.20

h.22

It.21

>.21

l-M

1/ SEC index,of 265 common stocks, weekly closing prices, 1939-100; converted
to 19lt7-lt9-100 by Federal Reserve. The conversion factor is 323.91.
2/ Averages of daily trading volume on the New York Stock Exchange.
3/ Moody's 200 common stocks; end of month figures.
%f End of month figures.for member firms of the New York Stock Exchange which
carry"margin accounts; excludes money borrowed far carrying U. S. Government obligations.
5/ Wednesday figures for weekly reporting menber banks. Excludes all loans
on U.~S. Goverrments- for 1952; since 1953 only loans secured by Governments at
banks in New York and Chicago are excluded. Weekly reporting banks account for
about 72 per cent of loans to others.
n.a.—Not available.
Note.—-Highs and lows are for individual series and- may be on different dates
for different series.
?




Exhibit D

H.lU

Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
iftevr capital
Corporate
I
e/1+86
e/350
e/r,170
e/550

5a
U39

660
U86 -

623
623
666

535
e/310
e/5U0

779
675
1,123

e/UOO

State and local
I
19^
1 ~ T ^ r
396

389
360

111
565

•

h26

73U
7U8
853

329
6U9
U3U

483
325
. 753

279
261
6U9

519.
259
U75

1,008

577
L29 ,
i,U3aV

59U
U23
877

U53
U08
77U

1,61+3
1,998

1,912
2,578

1,372
2,33b

1,U12

1,899
7,561

a & /
6,to5

652
859
3U6
776
298
592

e/2,005

"3P55"

2,021

1/1,385

1,188

l',89L
6,789

1,176

1,253
1,636
5,U77

Excluding finance caapanies 2/
e/1,605

1,562
1,931
1,941
1,795
7,229

1,669
1,991
1,223
2,3Wi
7,227

' l/ Includes 602.5 million dollar AT&T debenture issue. "
7/ Total new capital issues excluding offerings of sales and personal finance
companies.
e/ Estimated.
Note.—Details may not add to totals -due to rounding.




H.Ht

Exhibit E
Large Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(L'illions of dollars)

Month

Corporate

195k - March
April
May
June
July
August
September
October
November
December
1955 - January
February
March

State and
local government

160
169
32k
350
336
75
335
413
0
9k
Ikl
72
750

Other 2/

50

378
. 557
557
603
92
86
1*55
388
268
689
3kl
101
337

30
35

Large Individual Issues Offered during March

Issuer

Type 3/

Amount
coupon
(millions
rate or
Offering
Maturity
of
net interyield
est cost
dollars)

Rating

CORPORATE
May Department Store
SF deb.
25.0
Central & South west Corp. Common stk.
20.1
Union Oil Company
Conv. deb.
21.0
Pacific Gas & Electric Co. lst&ref mbgbds 5 0 . 0
General Motors Acceptance Corp.
Deb.
250.0
General Motors Corp.
Common stk. 328.6
Joy Manufacturing Co.
SF deb.
20.0
Florida Power & light Co. Common stk.
19.U
New England Tel. & Tel. Common stk.
15.7

1980 j

3 iA

3.25

A

1975
1987

3
3 3/8

3.00
3.30

Baa
Aa

I960;1972

3;3 1/2

3.00;3.50

1975

3 5/8

3.63

Baa

STATE AND LOCAL GOVERNMENT
Portland, Oregon
State of Louisiana




G.O.
G.O.

8.0
10.0

.1958-75
1960-70

2.01
2.23

1.15-2.20
1.50-2.35

Aa
A

H.H*

E-2
• Large Individual Issues Offered during March (Cont'd)

Type 3/

Coupon
Amount I
Offering
(millions
. , rate or
Maturity net inter0f
yield
est cost
dollars)I

Rating

STATE AI-1D LOCAL COVERNIENT
(Cont'd)""
Hempstead & N..Hempstead,
Hew York
Houston," Texas
Multnomah County, Oregon
Metropolitan r.rater District of Southern Cal.
New York Bridge Authority
State of South Carolina
St. Petersburg, Florida
• Caster Bay, Ilew York
State of Mississippi
State of New Jersey
New Jersey Turnpike Auth
New York State
Georgia State School
Building Authority
Springfield, Missouri
State of Massachusetts
Passaic Valley Sewerage,
New Jersey
Florida State "Improvement C omission

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

• 15.5
1955-81*
15.0, , 1956-85
12.(6/ 1956-75

8.0
16.0
20.0
UuO
.5.8
5.2

6.6

3k.0
50.7

1956-80
1956-89
1956-75
1956-77
1955-83
1971-75
1957-90
1988
1957-2005

29.2 • 1956-71
11.1
1958-82.
. 60.9 1956-85

3.08
2.59

1.10-3.13

1.00-3.10

2.02

0.95-2.20

2.19

0.95-2.35
1.00-2.69
0.95-2.10
1.75-3 A 3
1.00-3.05
2.25-2.50

Baa
A .
Aa

1.10-2 AO

Aa
A
Aa
- Ba
Baa
A
Aa

2.26

1.05-2.80

Aaa

3.07

1.25-3.10
1.25-2.35

A
' Aa
Aaa

2.61|
1.95
3.50
2.97
2.53
2.19

2.88

• 2.22
2.06

2.81*

1.00-2.30

9.1

1956-71

2.35

1.15-2.50

6.0

1957-83S/

3.56

3.15-3.50

OTHER
None.
1/ Includes corporate and other security offerings of l£ million dollars and
over; State and local government security offerings of 5 million and over.
2/ Includes foreign government and International Bank for- Reconstruction and
Development issues.
3/ In the case of State and local government securities, G.O. denotes general
obligation; Rev., revenue bends; G.R., general obligations additionally secured by
facilities revenues; and, L.L., limited liability obligations secured by pledge of
designated revenues.
k/ 3.5 million dollars not reoffered pending settlement of taxpayers' litigation. •
5/ Bends maturing 1957-63 not publicly reoffered.




H.U*
Forthcoming Large Public Security Offerings for New Capital
(Other than U . S . Treasury ) 1/
•

Expected Proceeds from Forthcoming Large'Issues

Date of
computation
1951* - Mar. 31.
Apr, 30
May 28
June 30'
July 30
.. ! Aug. 31
Sept,30
Oct, 29
Nov, 30
Dec. 31
1 9 # - Jan. 31
Feb. 28
Mar. 31

Subsequent to
During month following
date shown
date shown
State and
State and
Corporate local govtc Other 2/ Corporate local govt. Other 2/
20l*
323
332
336
100
331
31*3
15

9k
18U

16

710
211

1

86
51*
300
383
1*36
661

2,789
2,322
1,971
1,521*
1,553
1,876
2,158
1,957
2,682

# 5

61*7
526
532
303
608
1*11*
135
21*6
216

27

30

# 7

682

2,11*1*

1,961
1,978
2,009

1*22

1,395
922

•£2U

208

27

30
30
35

Forthcoming Large Offerings, as of April 1
Issuer

Type

Amount
Approximate date
(millions
of offering
of dollars)

CORPORATE
National Gypsum
General Dynamics Corp.
Tennessee Gas Transmission
Southern California Gas Co,
Pacific Northwest Pipeline
Fruehauf Trailer Co.
Philadelphia Electric
Transcontinental Gas Pipe Line
^Pacific Lighting
Public Service of Indiana, Inc.
Alabama Power
Consolidated Natural Gas
American Telephone and Telegraph




Common stock
Conv. deb.
Deb.
Bonds
Interim notes
Conv. deb.
Bds.
Pfd. stock
Common stock
Pfd. stock
1st mtg. bonds
Common stock
Conv. deb.

18=6
1*0.0
25.0
1*0.0
. 17.2
15.0
20.0
15.0
20.0
21.3
15.0
2h.k
650.9

April 1*
April 5
April 6
April 11
April 11
April 13
April 18
April
April
May 9
May 21*
June i 1955

1

H.1U

*

F-2

Forthcoming Large Offerings, as of April 1 (Cont'd)
Issuer

Type

Amount
Approximate date
(millions
of dollars) j of offering

STATE AND LOCAL GOVERNMENT
San Francisco, California
Detroit, Michigan
Los Angeles, California
Public Housing Authorities
San Diego County, California
Louisville, Kentucky
Calcasieu Parish, Louisiana
^
^Wichita, Kansas
State of California
*Shreeveport, Louisiana
Inter-American Center Auth., Fla.
Michigan Turnpike Authority
State of Louisiana
Florida State Turnpike Authority
Illinois Turnpike Authority
Connecticut Expressway
Texas Turnpike Authority
Sam Houston Turnpike Corp.
Texas Turnpike Company
Dade County Port Authority, Fla.
Springfield, Illinois
Allegheny County, Pennsylvania
Sanitary AuthorityCalifornia Toll Bridge Authority
Jersey City Sewerage Auth., N. J.
North Carolina Turnpike Authority

G.O.
G.O.
n.a.
G.O.

6.9
11.U
9.2
112.0
8.U
7-5

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

-

5.5
7.1*
30.0
10.0
60.0
186.0
80.0

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

7U-0
390.0

April h
April 5
.
April 12
April 13
April 19
April 20
April 21
April 26
April 27
April 28
Spring
Spring
Spring
Spring
1955

100.0

1955

58.5

.1955

11*6.0

1955

UiO.O

1955

21.0

1955

9.0

1955

85.0

• 1955

235.0

1955

16.0

1955

200.0

1955

• OTHER
None
- 1/ Includes corporate and other issues of 15 million dollars and over; State
and local government issues of 5 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues.
n.a.—Not available.
^--Included in table for first time.




Exhibit G
Yields on New and Outstanding
Electric Power Bonds, Rated Aa and A 1/

Date

Aa-rated offering yields
A-ratcd offering yields
Amount above
Amount above
Actual
Actual
(per cent) seasoned yields (per cent) seasoned yields
(basis points)
(basis points)

195,2 average

3.16

13

3.32

12

1953 average

3-U3

#

3.79

27

192k average

3.0U

1951| - January
February
March
April
May
June
July
August
September
October
November
December

3.20
3.02

"

*2.93
2.99
3.00

*3*00

None
None
3.02
3.03
None
. None

3

3.12

6
0
0
5
it
1

*3.32

—
—

3
3
—

. 1955 - January 19

3.15

13

February 2k
22

3.lit

7

March 10
16
31-

3.17,

8

*3.20
'

3.02
3.10
3.1^
3.11+
*3.13
3.11
*3.10
3.10
•
None
3.11

-

-3
.

2
-1
-10
-6
0
-2
-1
-1
-3
-2
0

3.23

9

3.27

12

3.30

12

Survey. Except where indicated, the actual yield figure and the amount above
seasoned yields are averages of offerings during the indicated period and of
the differences between these new offering yields and yields on seasoned issues
of similar quality for the same day. Average maturity for the seasoned issues
varies from 26 to 28 years.
*—Single observation, not an average.