Full text of H.16 Capital Market Developments : December 26, 1957

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Not for Publication DECONTROLLED AFTER SIX.MONTHS
December 26, 1957

CAPITAL MARKET DEVELOPMENTS
Large.public security offerings for new capital during
the week ending December 20 totaled $288 million f o r corporations
( a l l of i t representing the expiration of rights to the Standard Oil
of New Jersey common stock) and $78 million for State and l o c a l
governments. There are no large corporate issues scheduled for
sale t h i s week, and the only large State and l o c a l government issue
i s the $250 million issue of the Chelan County Public U t i l i t y Dist r i c t #1, Washington. I t was sold Tuesday to underwriters at a net
i n t e r e s t cost of approximately 5«20 per cent. The 55-year i s s u e ,
which bore a coupon of 5 per cent and i s nonrefundable for twenty
years, was quickly oversubscribed when offered by underwriters at
par. In subsequent trading, the issue was bid at about lOlt, a y i e l d
of about U.80 per cent.
Bond y i e l d s - Bond y i e l d s declined sharply further l a s t
week and, except for corporate Baa-rated bonds, a l l y i e l d s are within 11 basis points of the y e a r ' s low.
Stock prices - Stock prices as measured by Standard and
Poor's index of 500 common stocks declined l a s t week, closing at
39 «U8 on Friday.
More detailed information concerning recent c a p i t a l market
developments i s presented in the attached e x h i b i t .

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




HIGH-GRADE

BOND

YIELDS

J . S . G o v t . , long-term 2 /
Corporate
Aaa 1 /

Old s e r i e s

New s e r i e s

Spread between
U. S. Govt.
S t a t e and
l o c a l govt, ( o l d s e r i e s ) and
C o r p o r a t e l S t a t e and
Aaa 3 /
Aaa
I l o c a l Aaa

(Per c e n t ) '
1953 - . H i g h
Low
195L - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low

3.12
2.99
3.09
2.65
3.17
2.91
3.79
3.07
L.lh

November
November
December
December
December

k.06

22
29
6
13
20

(6/19)
(1/9)
(1/8)
(L/23)
(12/23)
(1/7)
(12/28)
(3/2)
(9/27)

3.66 (b/12)

h.02
3.97
3.81
3.77

3.15 ( 6 / 6 )
n.a.
2.78 (12/26)
n.a.
2.7k ( 1 / 9 )
n.a.
2.hh ( 8 / 7 )
n.a.
2.91(8/5) 3 . 0 3 ( 8 / 5
2.62 ( 1 / 7 ) 2.89 ( 6 / 1 0 )
3.19 (12/21)3.39 (12/28)
2.80 ( 2 / 1 7 ) 2.92 ( 2 / 3 )

^e

3.a
3.U0
3.18

3.29

averages of d a i l y f i g u r e s .

3 / Thursday f i g u r e s .
ter

1.98 (1/8)
2.21 (6/10)
1.90 ( 9 / 2 )

i:»

3 . 0 5 (12/27)
2.17 (2/23)

3.87 (10/18)3.66 (10/18) 3.L5 (8/29)
2.76 (2/21)
3.15 (2/8) 3.22 (2/8)

n.a.--Not available.
l / Weekly average of d a i l y f i g u r e s
years,

2.73 (6/25)

3.23
3.16
3.03"
2.9k
2.66

s
.38

s.
s

.13
•65
.56
.59
.59

.30

.61

.29

5
.32

.27
.28
.29
.31
.32

Average term of bonds included i s 25-26
The old s e r i e s i n c l u d e s f u l l y t a x a b l e ,

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 , average

™ N o t e . - - H i g h s and lows are 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
for different series.




EXHIBIT B

LOWER - GRADE BOND YIELDS

-v y
7%

CORPORATE Bac

) LOCAL GOVT. Baa

A;

1 Th
STATE AND LOCAL C

Corporate
Baa 1 /

State and
l o c a l govt.
Baa 2 /

State and
l o c a l govt,
rev. y

(Per cent)
3.89 (9/18)
3.50 (1/2)

3.74 (1/8)

3'Uh (12/31)
3.63 (12/30)
3.145 ( I / I k )

U.kl (12/28)

3.58 ( 3 / 9 )
5.10 (11/29)
U.U2 (it/12)
5.09
5.10
5.09

5.06

5.00

3.79
2.96
3.32
2.93
3.26
3.02
a.22
3.20
U.51

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)
(1/6)
'
(12/27)
(3/8)
(8/29)

3.90 (2/21)

3.27 (6/26)

2.71
3.00
2.72
2.99
2.76
3.98
2.89
3.98
3.70

(1/2)
(1/1)
(8/13)
(12/30)
(1/7)
(12/28)
(2/21)
(1/W
(2/22)

it. 37
h.25

b.lk

It.03
3.92

1 / Weekly average of daily f i g u r e s . A v e r a g e term of bonds
included i s 25-26 years.
J\J Thursday f i g u r e s . Only general obligation bonds are i n cluded; average term i s 20 years:
3/ Friday f i g u r e s . Average rating of bonds included i s
between Baa and A; average term i s 20 years.
h/ Series discontinued, as of March 15.
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 f o r d i f f e r e n t s e r i e s .




.STOCK

MARKET

Date

Stock price
index 1 /

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

Stock market customer c r e d i t
Customers'
debit b a l - loans to
ances 4/ "others" 5 /
(Millions of d o l l a r s )

1956 - High
Low
1957 - High
Low

26.54
22.95
35.98
2k.93
15.89
35.28
49.64
43.22
49.08
39.48

October
November
December 6
December 13
December 20

40.43
40.35
41.31
40.73
39.48

1953 - High
Low
1954 - High
Low
1955 - High

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

.

2.5
0.9
3.7
1.4
4.6
1.5
3.1
1.5
4.2
1.4

6.25
5.38
5.32
4.32
4.42
3.64
4.35
3.82
4.72
3.91

2.8
2.5

4.60
4.62
4.53
4.59
4.72

2.3
2.6

.

2,455
2,055
3.436
2,405
4,030
3,537
4,047
3,914
4,031
3,577

1,665
1,314
2,388
1,653
2,805
• 2,517
2.82J
2,740
2,887
2,517

3,643
3,577
n.a.

2,568
2,517
n.a.

780
664
1,048
746
1,241
1,018 •
1,267
1,155
1,163
1,054
1,075
1,060
1,054
1,064

, available.
1/ Standard and Poor's composite Index of $00 common stocks, weekly closing
p r i c e s , 1941-43-10. Monthly data are averages of d a i l y f i g u r e s r a t h e r than of
Fridays' only. Highs and lows a r e f o r Friday's data only.
2/ Averages of daily trading volume on the New York Stock Lxchange.
J3/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve.
4 / End of month figures f o r member firms of the New York Stock Exchange which
carry margin accounts} excludes balances secured by U.S. Government obligations.
y 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 D

H.lh

Corporate and State and l o c a l Government
Security Offerings and Placements
(In m i l l i o n s of d o l l a r s )
New capital
1955

1957

State arnJ loc
1
1956
1

January
February
"arch

1,063
1,071
l,3bb

573
712
817

535
1,07
1,223

7h2
572
506

bub
6s 6
390

312
538

April
May

92b
771
1,U89

818
1,116
81,1

1.78
666
687

5b6
395

376
190
735

1.27
350
61i?

991
91b
973

1,063
651,
838

597
61,b
670

529
58b
1,30

1,06
206
357

1,70
21,9
bo6

695
621
e/600

639
31,7
bo?

919
658
1.08

1,820
1,706
1,51,3
e/1,916

1,1,90
l,6u3
971
1,395

1,365
1,1,16
1,12b
1,98b

IS

1957

Corporate
1
1956
|

3,093
b,o6b
5,1,59

2,802
3,927
5,911

.

October
November
December

1,01b
e/900
e/T,000

! > / '
1,088

1,162-/
632
900

1st
2nd
3rd
bth

3,b79
3,18k
2,878
e/2,9lb

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

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

a,907
7,1.63
10,38b

b,2l6
6,127
8,821

ouarter
quarter
Quarter
Quarter

1 s t half
Three quarters
Year
'

1st
2nd
3rd
bth.
Year

quarter
Quarter
quarter
ouarter

Ill

July
August
September

Excluding finance companies h /
3,268
2,921
2,560
e/2,76U

1,61,7
2,5bl
2,21.6
2,826

1,727
1,870
1,1, ill
2,5bb

e/11,516

9,259

7,595

e / Estimated.
'
~
1 / Data through June 1956 are 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 are from the Investment Bankers Association of America
and are somewhat more complete as to coverage than the e a r l i e r data, p a r t i c u l a r l y
f o r Federal Government loans.
2 / Includes #637.2 million AT&T convertible debenture issue .
3 / Includes $571.5 m i l l i o n AT&T common stock issue .
t / 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 finance
companies.
Note.—Details may not add t o t o t a l s due to rounding.




H.lli

Exhibit E
Large Public Security Issues f o r New Capital
(Other than U. S. Treasury) 1/

I

'

Proceeds of Large Issues Offered
( M i l l i o n s of d o l l a r s )

Month

Corporate

1956 - November
December
1957 - January
February
March
.
April
/
May
June
July
August
September
October
November

State and
l o c a l government

701
U30
567
671
788
U77
329
877 525
-526
537
57k
h20

Other 2 /

135
201
386
306
19U
199
2U8
176
265
357
185
135
386

100
50
125
25
39
25
30
75

Large Individual Issues Offered December 1 through 20

Issuer

Type y

Amount
Coupon
rate or
(millions
Offering
Maturity
of
net i n t e r - ! y i e l d
dollars)
est cost

Rating

CORPORATE
Virginia Elec. & Pwr. Co.
Northern Natural Gas Co.
Chesapeake & Potomac T e l .
Co. of Maryland
Commonwealth Oil R e f i n i n g
N a t ' l . Cylinder Gas Co.
Standard O i l Co. of N. J .

lst&ref.mtg.bds.20.0
S.F. deb,
25.0

1987
1977

U 1/2
U 5/8

U.U7
U.63 -

Deb.
30.0
Conv. sub.deb, , 18.5
Conv. sub.deb, . 17.5
Common s t k . 288.2

1993
1972
1977

h 1/8
6
5 1/8

3.98
6.uu
5.13

Aa
A
Aaa
Ba

STATE'. AND LOCAL GOVERNMENT
Akron, Ohio
Los Angeles Sch. D i s t s . ,
Calif.
Indianapolis, Ind.
S t a t e . o f Ohio




Water r e v .
G.O.
G.O.
G.O.

5.0

1959-78

15.0 1959-83"
5 . 1 " 1960-89
25.0 1958-77/67

3.36

2.5u-3.no

A

3.19
2.91
2.65

2.35-3.25
2.25-3.00
2.UU-2.70

Aa
Aaa
Aaa.

H.lii

E-2
Large Individual Issues Offered December 1 through 20 (Cont'd)

Issuer

Type 3 /

Coupon
Amount
Offering
(millions
Maturity
Rating
net i n t e r - y i e l d
of
dollars)
e s t cost

STATE AMD LOCAL GOVERNMENT
(Continued)
Greater Baton Rouge Port
Comm., Louisiana
Pergen Co., New Jersey
Phoenix, Arizona
S t a t e of Texas
Minneapolis and S t . Paul
M
e t . Airport Comm., Minn.
Atlanta, Georgia
Mobile, Alabama
Richmond, Virginia
Chicago Bd. of Educ., 111.

He v .
19.h
G.O.
7.2
V;tr. rev, , 16.0
0.0.
12.5

1960-77/67
1959-82
1959-87/68
1966-86/67

3.36
2.70
3.51
2.70

2.60-3.1iU
2.10-2.80
2.50-3.50
2.1,0-2.70

Eaa
Aa
A
Aa

G.O.
13.0
G.O.
15.0
Wtr. rev..
6.0
6.8
G.O.
0.0.
25.0

1961-88/73
1958-86
1961-91/68
1959-78
1960-77

2.79
2.96
3.93
,2.1,8
3.07

?.??-?.90
2.U0-2.90
2.90-li.00
2.00-2.50
2.50-3.10

Aa
Aa
Baa
Aaa
A

OTHER
None
__
_ of Cl'j> million 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 million ^ud over.
7 j Includes foreign government and I n t e r n a t i o n a l pank f o r Reconstruction and
Development i s s u e s .
.
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 {eneral
o b l i g a t i o n s ; Pev., revenue bonds; G.R., genera] o b l i g a t i o n s a d d i t i o n a l ] y secured by
f a c i l i t i e s revenues; L.L., limited l i a b i l i t y obligations secured by pledge, of designated revenues.




H.lli

Exhibit F
Forthcoming Large Public Security Offerings for New Capital
(Other than U.S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues

Date of
computation
1956 - Nov. 30
Dec. 31
1957 - Jan. 31
Feb. 28
Mar.. 29
Apr. 30
May 31
June 28
July 31
Aug. 30
Sept. 30
Oct. 31
Nov. 29

During month following
date shown
Corporate State and
Other 2 /
local govt.
U36
176
591
710
L61
187
525
370
526
578
576
158
383

I48
280
153
153
290
179
97
172
252
2U3
370
369
387

23
100
35
25
25
25
30
30
18

Subsequent to
date shown
Corporate State and Other 2/
l o c a l govt.
181
796
966
795
186
258
525
L15
811
8U5
617
815
1,193

979
763
6U8
631
862
396
388
1*98
5Hi
1*39
587
573
589

.

23
100
35
25
25
25
30
15
15
63

Forthcoming Large Offerings, as of December 20
type

Amount
Approximate date
(millions
of dollars) of offering

CORPORATE
Washington Water Power Company
^Connecticut Lt. & Pwr. Co.
Commerce Oil Refining Corp.
Commerce Oil Refining Corp.
W e s t Virginia Pulp & Paper Co.
^Indiana & Michigan Electric Co.
American Telephone & Telegraph Co.
Commercial Credit Co.
Natural Gas Pipeline Co. of- America

1 s t mtg. bds. :
1st mtg. bds.
1st mtg. bds.
Sub. deb. & common
Deb.
1st mtg. bds.
Conv. deb.
Notes
1st mtg. bds.

20.0
30.0
25.0
20.0

lO.O

25.0

720.0

50.0

ItO.O

Jan. 10
Jan. 10
Jan.
Jan.
Jan.
Jan.
March 12
(rights expire)
Winter
Winter

STATE AND LOCAL GOVERNMENT
Chelan Co. Pub. Ut. D'ist., No.1,Wash
University of Minnesota
*Minneapolis-St. Paul Met. Airport
Comm., Minn.




Rev.
Rev.

250.0
5.0

Dec. 2h
Dec. 30

G.O.

13.0

Dec. 30

Forthcoming Large Offerings, as of December 20 (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 AND LOCAL GOVERNMENT (Cont'd)
Caddo Parish Sch. D i s t . , La.
Los Angeles, C a l i f o r n i a
Dade Co., Florida
*Des Moines Ind. Sch. D i s t . , Iowa
S t a t e of New York
*New York, New York
State of North Carolina.
Penna. State Highway & Bridge Auth.
State of C a l i f o r n i a
^Florida State Board of Education
Los Angeles, C a l i f o r n i a
East Baton Rouge Par. S.D. N o . l , La.
Denver, Colorado
W i c h i t a , Kansas School D i s t . , No. 1
New York State Thruway Auth.
State of Missouri
Pennsylvania Turnpike Commission
Inter-American Center Auth., F l a .

G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.
G.O.
G.O.
Water r e v .
G.O.
Water r e v .
G.O.
Rev.
G.O.
Rev.
Rev. '

7.5
25.0
Hi.5
5.7
37.5
25.5
10.0
20.0
i5o.o
7.9
9.0
10.0
20.0
5.0
Uo.o
30.0
62.0
20.0

Jan. 7
Jan. 7 .
Jan. 8
Jan. 9
"
Jan. lU
Jan. 15
Jan. 16
Jan. 17
Jan. 22
Jan. 28Jan. 29
Feb. a
, Feb. 5
Feb. 6
Winter
Winter
Winter
Winter

OTHER
I n t ' l . Bank f o r Reconstruction and
Development
Union of South Africa

Bds. .
Ext,, loan bds.

150.0
15.0

January
Winter

*—Included i n t a b l e f o r f i r s t •ime.
1 / Includes corporate and other i s s u e s of $15 m i l l i o n 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 .
Note.—-Deletions for reasons other than s a l e of i s s u e : None.