Full text of H.16 Capital Market Developments : December 15, 1954

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• Hot, f o r P u b l i c a t i o n

M c o m o I M D

^

SIX

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MONTHS

H.ll*

December 15, 195U

CAPITAL' MARKET DEVELOHJEI3TS
Volume of s e c u r i t y i s s u e s l a r g e l a s t week - Large S t a t e
and -local "government s e c u r i t y i s s u e s t o t a l i n g 2 2%T m i l l i o n "dollars, •
and l a r g e corporate o f f e r i n g s of 6Zj. m i l l i o n were p u b l i c l y f l o a t e d
f o r new c a p i t a l during the week ending December 10. Of t h e - p r o posed 211; m i l l i o n d o l l a r Oklahoma Turnpike Authority i s s u e , scheduled f o r o f f e r i n g l a s t week, only 68 m i l l i o n was s o l d . Underwriters,
in f a i l i n g t o b i d on the remainder of t h e i s s u e , "stated t h a t i n
t h e i r opinion t h e public had "absorbed as many turnpike bond i s s u e s
as p o s s i b l e a t the moment".
.
The volume of l a r g e c o r p o r a t e , S t a t e and l o c a l , and other
i s s u e s scheduled f o r o f f e r i n g t h i s week i s 96 m i l l i o n d o l l a r s .
Bond y i e l d s - Yields on outstanding high-grade municipal
bonds increased two b a s i s p o i n t s l a s t week. U . S . Government l o n g term bond y i e l d s decreased two b a s i s p o i n t s , but a moderate r i s e '
occurred on December 13 and l i | . Yields on corporate Aaa and Baa
bonds remained unchanged.
t
Customers 1 d e b i t balances i n c r e a s e f u r t h e r - Customers'
d e b i t b a l a n c e s , excluding borrowings f o r carrying U. S. Government s e c u r i t i e s , of member f i r m s of the New York Stock Exchange,
increased 10? m i l l i o n d o l l a r s during November t o t o t a l 2,202 m i l l i o n a t t h e end of t h e month. Money, borrowed on c o l l a t e r a l other
than U. S . Governments, by member f i r m s maintaining margin accounts,
increased 58 m i l l i o n d o l l a r s and t o t a l e d 1,353 m i l l i o n a t the end
of the month.
„
The SEC index of 265 common stock p r i c e s r o s e t o a newhigh of 213.3 during t h e week ending December 10. Daily f i g u r e s
i n d i c a t e a s l i g h t d e c l i n e i n stock p r i c e s on December l i t . The
average d a i l y t r a d i n g volume on the NYSE reached a new high of
3.7 m i l l i o n shares l a s t week, but dropped to 2 , 8 and 2 . 7 m i l l i o n
shares on Monday and Tuesday r e s p e c t i v e l y .
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 i n the Third Quarter
S t a t e and l o c a l government s e c u r i t y i s s u e s f o r new capi t a l i n the t h i r d q u a r t e r of 195k> a s shown i n the accompanying
t a b l e , were 1,188 m i l l i o n d o l l a r s , somewhat l e s s t h a n the volume
of t h a t period l a s t y e a r . O f f e r i n g s for"new c a p i t a l i n the f i r s t
nine months of t h i s year t o t a l e d li,89U m i l l i o n d o l l a r s , 27 per
cent g r e a t e r than i n the corresponding months of 1953« The volume




H.Ut

of refunding i s s u e s was l a r g e r than i n most r e c e n t y e a r s during the
t h i r d q u a r t e r and t o t a l e d UI m i l l i o n d o l l a r s . However, the r e f i n a n cing t o t a l in the f i r s t t h r e e q u a r t e r s of both 1953 and 195k accounted
f o r l e s s than 2 per c e n t of a l l o f f e r i n g s .
I s s u e s f o r school c o n s t r u c t i o n t o t a l e d 272 m i l l i o n d o l l a r s
in the t h i r d q u a r t e r t h i s y e a r , j u s t s l i g h t l y l e s s than the amount
f l o a t e d a year ago. Highway, bridge and tunnel i s s u e s r e p r e s e n t e d
the next l a r g e s t group with 271 m i l l i o n d o l l a r s sold during t h i s
y e a r ' s t h i r d q u a r t e r compared with 1|18 m i l l i o n during the same q u a r t e r of 1953• This comparison i s somewhat d i s t o r t e d , however, by the
New Jersey Highway Authority o f f e r i n g of 150 m i l l i o n d o l l a r s which
was o r i g i n a l l y scheduled f o r s a l e in June but was postponed u n t i l
J u l y l a s t y e a r . O f f e r i n g of other i s s u e s aggregating over 1*0 m i l l i o n d o l l a r s was a l s o delayed from the second to the t h i r d q u a r t e r .
Because of t h e heavy schedule of o f f e r i n g s of highway i s s u e s in the
second q u a r t e r t h i s y e a r , the volume f o r the January t o September
period i s considerably g r e a t e r t h i s year t h a n l a s t . Both sewer and
water and r e s i d e n t i a l b u i l d i n g o f f e r i n g s were s l i g h t l y above t h e i r
corresponding volumes in the t h i r d period of 1953•
Each type of i s s u i n g a u t h o r i t y o f f e r e d more s e c u r i t i e s
i n the f i r s t n i n e months of 195b than a year ago, even though some
of the a u t h o r i t i e s o f f e r e d l e s s i n t h i s y e a r ' s t h i r d q u a r t e r than
i n the e a r l i e r t h i r d p e r i o d . The l a r g e s t d o l l a r i n c r e a s e was i n
S t a t e o f f e r i n g s which t o t a l e d l,0ij2 m i l l i o n d o l l a r s i n c o n t r a s t t o
603 m i l l i o n in the f i r s t t h r e e q u a r t e r s of 1953- County and township and municipal o f f e r i n g s showed l a r g e i n c r e a s e s r e l a t i v e t o
the 1953 volume f o r the f i r s t nine months. The l a r g e s t type of
i s s u e r i n the t h i r d period only t h i s year was s p e c i a l a u t h o r i t i e s
with 3%k million" d o l l a r s . This i s a decrease of 80 m i l l i o n d o l l a r s from the e a r l i e r t h i r d q u a r t e r . M u n i c i p a l i t i e s f l o a t e d 286
m i l l i o n d o l l a r s i n the July t o September p e r i o d t h i s year compared
with 2i|2 m i l l i o n i n the same time l a s t y e a r .




H.H*

-3-

-Long-term S e c u r i t y I s s u e s of S t a t e and Local Governments
Third Quarter and F i r s t Nine Months of 1953 and 1951*
( I n m i l l i o n s of d o l l a r s )
Type of i s s u e r or purpose of i s s u e

-

Issuing authority:
State
County and township
Municipality
School d i s t r i c t
Special authority
Unidentified 1/

F i r s t nine months

Third q u a r t e r
195b

1

157
96
286
177
351*
163

1

1953

1953

1954

.21It
72
2l*2
155

1,01*2
3b0
1,161*
656
1,353
1*30

603
202
857
61*1*
1,189
392

to
Ihl

Total

1,232

1,258

1*,988

3,887

Purpose of i s s u e :
New c a p i t a l t o t a l

1,188

1,253

1,89k

3,81*1*

272
271
liiO
13
ISh
6h
8
20
10
179
159.

277
.118
125
U*
139
2l*
5
13
15
3
.79
iia

Schools
Highways, b r i d g e s , t u n n e l s
Residential buildings
H o s p i t a l s and i n s t i t u t i o n s
Sewer and water
Misc. p u b l i c s e r v i c e e n t e r p r i s e s .
Recreation
Port and a i r p o r t
Veterans a i d
Industrial building
Other
U n i d e n t i f i e d 1/
Refunding.

1*1*
Total

1,232

.

,

1,012
885
365
83
507
130
32
23
136
7
252
390

5

91*

It6

1,258

1*,988

3,887

.

1/ I s s u e s of l e s s than 5500,000 not c l a s s i f i e d .
Note.—Details may n o t add t o t o t a l s because of rounding.
Sources.—Bond Buyer and Federal Reserve.




1,180
1,181*
1*55
70
501
190
. 25
66
102
2
398
1*22

H.li;

•„

-k-

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 detailed* information concerning r e c e n t c a p i t a l
market developments w i l l be found in t h e following e x h i b i t s which
are attached hereto:
'
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 Offerings
and Placements
D - Large Public S e c u r i t y Issues
f o r New C a p i t a l (other than
U. S . Treasury)
E - Forthcoming Large Public 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 (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 Uarlcets S e c t i o n ,
Division of Research and S t a t i s t i c s ,
Board of Governors of t h e Federal Reserve System.




EXHIBIT

A

BOND YIELDS
PER

WEEKLY

CENT

PER A N N U M

4
CORPORATE Baa

CORPORATE A a a

4

GOVERNMENT

1

LONG-TERM

/V

;

V

I G H - GRADE

MUNICIPAL

STANDARD AND POOR'S

UyUM

CORP.
1
11 11

I I 1 I I I I I1 '

J

1951

S

J

'

S

Corporate 1 /
Aaa

J

1953

1952

1 Baa

M

S

U. S . Govt,
long-term 2 /

D

J

1954

Spread between.
Corporate Aaa
and U. S . Govt.

Highgrade^

(Per c e n t per annum)
1951* - High
Low
1952 - High
1953 - High
195it - High
November 12
November 19
November 26
December 3
Decenib er-^TO

•

3.03
2.#
3.03
2.91
3.U2
2.99
3.09
2.85
2.89
2.89
2.88
2.89
2.89

3,63
3.16
3.U8
3.89
3.50
3.71
3.U5
3.U5

3.hS
3.U5
3.h5
3.1*5

2.7U
2.38
2.79

2.56

3.15
2,7k
2.7h

2.Uh

St
I'M

$

-.37

•38
.19

.U3

1
.3U

2.26
1.59
2.U3

2.00

•2.23
1

2.28
2.28
2.28
2.29
2.31

T7 Moody's I n v e s t o r s S e r v i c e ; w e e k l y average of d a i l y f i g u r e s .
? / F e d e r a l R e s e r v e ; w e e k l y a v e r a g e of d a i l y f i g u r e s .
3 / s t a n d a r d and P o o r ' s C o r p o r a t i o n ; Wednesday f i g u r e .
N o t e . — H i S i s and. l o w s a r e f o r i n d i v i d u a l s e r i e s and may b e

• for different series.



1 different dates

exhibit lb

*

STOCK MARKET

-1 140

T

Date

Bank l o a n s
Customers1 t o " o t h e r s "
Trading
Common s t o c k
f a r purchases
debit
S t o c k p r i c e volume 2 /
yields 3/
of s e c u r balances hf
index 1/
(millions ' (per cent
ities
(millions
(19U7-U9-100) o f s h a r e s ) p e r 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 )

1951 - High
1952 - High
1953 - High
195k - High
Low
October
November
November 26
December 3
December 10

158.6
ti<0.3
165-3
151.7
167.1
li.U.0
213-3
156.5
196.6
205-3
211.1
212.7
213.3

3.U
1.1
2.0
0.9
2.5
0.9
3..7
1.U
2.1
3.2
3.1i
3.a
3.7 .

6.55
5.55
5.77
5.13
5.75
5.15
•5.33
a .39
a.57
a.39

.

1,297
1,219
1,328
l,2itl
1,665
1,311
2,202
1,653
2,095
2,202

310
260
295
250
327
2#
172
328
U39
461
U71
1*72
1*66

„

• jy
1 / ->1JV
SF.n i n d e x W
ofX <-UWJIIIIWH
61 common sa t o c k s ., w
e e k l v c l o s i n g j*.
t r i*.vwj
c e . 1 9 3 9 - 1 0 0 : cx»vo*A
n vwv*
e r twou
e d t ww
o
wiysatv-i-j
191:7-59-100 by F e d e r a l R e s e r v e .
2 / '.Teekly a v e r a g e s of d a i l y t r a d i n g volume on Mew l a r k S t o c k E x c h a n g e .
3 / Moody's 200 common s t o c k s ; end c f month f i g u r e s .
.
h / End o f month f i g u r e s f o r member f i r m s of Heir York. S t o c k E x c h a n g e ; e x c l u d e s
b a l a n c e s s e c u r e d by U. S . Government s e c u r i t i e s .
£ / Wednesday f i g u r e s f o r w e e k l y r e p o r t i n g member b a n k s .in" Hew York and C h i c a g o ;
e x c l u d e s l o a n s f o r p u r c h a s e , o f U. S . Government s e c u r i t i e s . On March it, 1953> t h e
l a s t d a t e on w h i c h f i g u r e s f o r a l l r e p o r t i n g b a n k s were a v a i l a b l e , New York and
C h i c a g o a c c o u n t e d f o r ii$ p e r c e n t of s u c h l o a n s . I n t h e p a s t New York arid C h i c a g o
l o a n s h a v e f l u c t u a t e d more t h a n t o t a l l o a n s .
n.a.—Not available.
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 b e on d i f f e r e n t d a t e s
for different series.




H.14
Exhibit C
Corporate and State and Local Government Security; Offerings and Placements
(In millions of d o l l a r s )

1954
January
February
March

544
r

439
660

April
May
June

186
652 '
859

July ^
August
September

898
346
776

October
November
December
1st quarter
2nd quarter
3rd quarter
4th quarter
Year

895
e/300
e/575
1,643
1;998
2,021
e/l,770
e/7,385

Corporate
1 1953
1
623
623
666 779
675
1,123

New c a p i t a l
1952
'615
413
951
870
990
769

1954

S t a t e and l o c a l
1 1953
!

1952

565

389
360
426

358
300
156

734
748
853

329
649
434

455
392
630

483
325
753

1,237 &
291
390

279
261
• 619

519
259
475

244
201
474

577
429,/
1,438 -

999
340
851

h/610
I/400
?775

453
408
774

303
I83
398

1,372
2,334
l : ^ 2 / 1,188
e/1,785
8:716 1 / e/6,680

1,176
1,412
1,253
1,636
5,477

815
1,477
919
885
4,096

1,912.
2,578

I'#!,/

2 ,444 | v
8,495 ^

.

1,979

Excluding finance companies'3/
1st quarter
2nd quarter
3rd quarter
4th quarter
Year

1,562
1,931
1,941
e/l,720
e/7,130

1,669
1,991
1,223
2,344
7,227

1,961
2,521
1,877
2,094
8,452

issue.
2/ Includes 603 million d o l l a r AT&T debenture i s s u e .
3 / Total new c a p i t a l issues excluding o f f e r i n g s of sales and personal finance
companies.
e / Estimatedo
Note.—Details may not add t o t o t a l s due t o rounding.




H.Iii
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 t h a n U. S . T r e a s u r y ) 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

Corporate

1953 - November
December
1954 - J a n u a r y
February
March
April
. May
June
July
August
September
October •
November

96 '
963
289
103
160
169
32 h
3#
3#
75
333
1*13
0 .

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

•
•

'

Other 2 /

-

254
571
161* •
213
378
557
557
603
92
. 86
1*55
383
268

19
5o
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 December 1 t h r o u g h 10

Issuer

Type 2 /

Coupon
Amount
Offering
( m i l l i o n s M a t u r i t y r a t e or
yield
net i n t e r of
est cost
dollars)

Rating

CORPORATE
Long I s l a n d L i g h t i n g
1 s t mtg» bds.
V i r g i n i a E l e c t r i c & Power Common s t k .
Tennessee Gas Transmission 1 s t mtg. bds.

1/4

15.0

198U

3

32.0

1975

3 1/2

17.4

3.10

A

3.hO

A

STATE AND LOCAL GO^ERMEBT
S t a t e of Michigan
New York T h r w a y
G r e a t e r New Orleans
Expressway
Oklahoma Turnpike Auth.
OTHER
None




G.O.
Rev.

60.0
50.0

1956-70
196U-9U

1.83
2.68

0.75-1.90
1.60-2o72

Rev.
Rev.

1*6.0
68.0

1957-91*-'
1962-93

1.09
3.81

lioOO
3o10-3.75

r

Aa
— '

—

•

H.llt
D-2
1 / d e l u d e s corporate and other 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 5 m i l l i o n and over.
2 / Includes foreign government and I n t e r n a t i o n a l Bank f o r Recons t r u c t i o n and Development i s s u e s o
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 g e n e r a l o b l i g a t i o n ; Rev., revenue bonds; G.R., general o b l i gations 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; and, 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 designated revenues.
kf Bonds maturing 1957-73 not p u b l i c l y re.offered.




H.llt
Exhibit E
Forthcoming Large Public Security Offerings for New Capital
(Other than U . S . Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
During month following
date shown
Corporate
| Other 2 /

Date of
computation
1953 - Nov. 30
Dec. 31
195b - Jan. 29
Feb. 26
Mar. 31
Apr. 30
May 28
June 30
July 30
Aug. 31
Sept. 30
Oct. 29
Nov. 30

9U8
232
118
108
20lt
323
332
336
100

g

537
179
161
198

Subsequent to
date shown
Corporate

73
123

•5a
27

1

5L
300
383
h36
661

30

local j

1,616
669
179
690

555

61*7
#6
2#
303
608
iah
132
216

1,752
1,238
1,660
1,916
2,789
2,322
1,971
l,#k
1,553

1,876
2,158
1,957
2,682

138
50
27

30
30

Forthcoming Large Offerings, as of December 10
Issuer

Type

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

CORPORATE
New England Telephone and Telegraph
.Commonwealth Edison
•BDuquesne Light
New England Power
^Marine Midland Corp. of Buffalo
Consumer Power Company
Public Service of Oklahoma
Public Service E l e c t r i c & Gas Co.
Kansas City Power and Light
New England Telephone and Telegraph

Deb.
Conv. deb.
Common stock
1st mtg, bonds
Pfd. stock
Bonds
1st mtg. bonds
Pfd. stock
1st mtg. bonds
Common stock

30.0

50.0
15.0

25.0
20.lt

30.0
20.0

25,0

16.0

15.8

December Hi
'January 11
January 17
January 18
January 2k
January 25
January
January
February 15
March

STATE AND LOCAL GOVERN? £ NT
Spokane County, Washington
Tampa, Florida
Puerto Rico Water Resources Auth.
New Orleans, Louisiana




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

5.0

10.0

12.5

8.1

December lii
December lit
December lk
December. 15

,-H.lU
E-2
Forthcoming Large Offerings as of December 10 (Cont'd)
Issuer

Type

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

STATE Aim LOGA.L GOVERM.ENT (Cont'd)
New York S t a t e Power Authority
•Chicago Calumet Skyway To l l Bridge
S t a t e of C a l i f o r n i a
Public Housing A u t h o r i t i e s
^Connecticut Expressway
Los Angeles Dept. of "Jater & Power
I l l i n o i s Turnpike Authority
Texas Turnpike Company
Sam Houston Company
Los Angeles School D i s t s . , Cal.
: Inter-American Center Auth., F l a .
Michigan Turnpike Authority
S t a t e of Louisiana
Metropolitan YJater D i s t . of So. Cal.
New York S t a t e Bridge Authority *
Dade County Port A u t h o r i t y , F l a .
Springfield, Illinois
Allegheny County, Pennsylvania
S a n i t a r y AuthorityC a l i f o r n i a T o l l Bridge Authority
Texas Turnpike Authority
F l o r i d a S t a t e Turnpike Authority
J e r s e y C i t y Sewerage Auth., II. J .
North Carolina Turnpike Authority

Rev.
Rev.
n.a.
Rev.
Rev.
Rev*
Rev.
Rev.
Rev,
Rev. .
n.a.
G.O. ;
Rev.
Rev. .
n°a»
Rev.
Rev. .

. 335,0.
88.0
60.0
135.0
100.0
18.0
390.0
200.0
150.0
20.0
60.6
186.0
80.0
8-10oO
15 *9
21.0
9.0

Rev.
Rev.
n.a.

85.0
235.0
59.0
89.0
16.0
200.0

Bonds

30.0

December 21
December 22
January 5
January 11
January .18
. January 26
January
January
January
January
Spring
Spring
Spring
.Spring
1955
1955
1955
1955
1955
1955
1955
1955
1955

OTHER
.Kingdom of Belgium

1

December 15

1/ Includes corporate and other i s s u e s of 15 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 i s s u e s of 5 m i l l i o n 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 Reconstruction and
Development i s s u e s .
n.a.--Not available.
%—Included i n t a b l e f o r f i r s t time*




i-:.lit

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

A-rated off e r i n g y i e l d s
Aa-rated o f f e r i n g y i e l d s
Amount above
Amount above
Actual
Actual
y i e l d s (per cent) seasoned y i e l d s
(per cent) seasoned
(basis p o i n t s )
(basis points)

1952 average '

3.18

111

3.37

1953 average

3.a

16 .

3.78

1953 - January
February .
. March
April
May
June
July
• August
September
•October
November
December

3.25
3.39
3-^0
3.18
3.79
None
*3.68
None
None
3.3k
*3.28
*3.30

11
19
17
16
28

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

3.20
3.02
*2.93 .
2.99
3.00
*3.00
None
None
3.02
3.03
None

6
0
0
•5
h
l

December 1
8

29
—
—

6
7
5

3
3

-

None
None
3.59
3.88
3.99
•ii.10
*b.00
None
3.92
3.56
•3.1*2
3.51
r/3.35
*3.20
3.05
3.10
3.1h
• 3 .lit
*3.13
. 3.11
*3.10
3.10
None
3.11
3.10

12
.2S—«•

23
hi
37
39
30

r

—

29
7
2
10

,

•

2
-1
-10
-6
r/0
~-2
-1
—1
-3
-2
0
-1

1/ Covers only 30-year f i r s t mortgage, bonds, as r e p o r t e d i n Iloody'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 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 the 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 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 m a t u r i t y f o r t h e seasoned i s s u e s
v a r i e s from 26 t o 28 y e a r s .
*—Single observation, n o t an average.
r / Revised.