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Not for Publication p E C 0 H T B 0 L L E D
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December U, 1957

CAPITAL MARKET DEVELOPMENTS
Large public security offerings for new capital during the
week ending November 29 consisted of three State and local government
- issues with total proceeds of $31 million. No large corporate issues
were sold last week. This week, corporations are expected to sell
issues amounting to $U5 million, and State and local government issues
totaling $5>0 million are scheduled for sale.
Bond yields - Yields continued to decline last week for all
categories of outstanding bonds, with the drop being quite sharp for
all types except Baa-rated corporate bonds. Daily figures for Monday
and Tuesday of this week indicate some further decline for corporate
bond yields.
Offering yields on new corporate issues also have declined
recently. An Aa-rated, 30-year first and refunding mortgage public
utility issue was offered and promptly sold to investors this week at
a yield of luli7 per cent — 18 basis points below the yield for a
similarly rated first mortgage bond issue offered on November 22, and
about £0 basis points below the early November level.
Stock prices - Stock, prices, as measured ty the Standard
& Poor's index of 500common stocks, increased last week, closing at
III.72 on November/29. Prices declined on; balance in thfe. early part:
-of this week.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

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




HIGH-GRADE

BOND YIELDS

0. S. Govt., long-term 2/
Corporate
Aaa 1/

New series

Old series

Spread between
U. S. Govt.
State and
local govt. (old series) and
CorporatelState and
Aaa 3/
Aaa
I local Aaa

(Per cent)
3.1*2 (6/19)
2.99 (1/9)
3.09 (1/8)
2.85 (k/23)
3.17 (12/23)
2.91 (1/7)
3.79 (12/28)
3.07 (3/2)
li.lt • (9/27)

3.66 (L/12)

h.12

k.12
2*-12
L.06
a.02
n

.15
.78
.71
.UU
.91
.62
.1,9
.80
.87

(6/6)
n.a.
(12/26)
n.a.
(1/9)
n.a.
(8/7)
n.a.
(8/5) 3.03 ( 8/5)
(1/7) 2.89 (6/10)
(12/21)3.39 (12/28)
(2/17) 2.92 (2/3)
(10/18)3.66 (10/18)

.15 (2/8) 3.22 (2/8)
3.85

3.77^

3.70
3.50
3.W,

3-61*
3.60
3.5L
3.W*

3.1*0

" a • ~ w e e k l y * a v e r a g e of daily figures.

2.73 (6/25)

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

2.05

3.05 (12/27)
2.17 (2/23)
3.L5 (8/29)

2.76 (2/21)
3.30
3.30

3.28

3.23
3.16

.38
.19
,13
.32
.31
.13
.liU
.13
.58

.2M
.35
.1*2
.56
.58

.81
.30
.61
.29
.70
.51
.68
.32
.58
.lit
.55

.hi
.1*2
.27
.28

Average term of bonds included is 25-26

2/ Weekly averages of daily figures. The old series includes fully taxable,
marketable 2 1/2 per cent bonds due or first callable after 12 years through
September 1995, and those due or callable in 10-12 years thereafter, including,
beginning October 1957, the 2i per cent bond of 1969. The new series is comprised
of the 3 per cent bond of 1955 and the 3 1/U per cent bond of 1978-83.
3/ Thursday figures. Only general obligation bonds are included; average!
term I s 20 years.
Note.--Highs and lows are for individual series and may be on different dates
for different series.




LOWER-GRADE BOND YIELDS

CORPORATE

STATE AND LOCAL GOVT. Be

'STATE AND LOCAL GOVT. REVENUE

Corporate
Baa 1/

State and
local govt.
Baa 2/

State and
local govt,
rev. y

(Per cent)
1953 - High
195U - High
1955 - High

3.89
3.50
3.7k
3.hh
3.63

(9/18)
(1/2)
(1/8)
(12/31)
(12/30)

1956 - High

3.15 (1/1U)
h.Ul (12/28)
3.58 (3/9)

1957 - High

5.10 (11/29)

November
November
November
November
November

1
815
22
29

U.U2 (U/12)
5. Olt
5.09
5.10
5.09
5.10

3.79
2.96
3.32
2.93
3.26

(6/25)
(1/8)
(1/7) -

(8/5)

(12/29)

3.02 (1/6)

In 22 (12/27)
3.20 (3/8)

L.51 (8/29)
3.90 (2/21)

L 37
U.37
L. 39

3.27 (6/26)
2.71 (1/2)

3.00 (1/1)
2.72
2.99
2.76
3.98

(8/13)
(12/30)
(1/7)
(12/28)

2.89 (2/2h)
3.98 ( 1 / W
3.70 (2/22)

V

fcg

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 tezm is 20 years.
3/.Friday figures. Average rating of bonds included is
between Baa and Aj average term is 20 years.
h/ Series discontinued, as of March 15.
N o t e . — H i g h s and lows are for individual series and may
be on different dates for different series.




STOCK MARKET

Date

Stock price
index 1/

Common
Stock market cust<jmer credit
volume 2/
Customers'
debit bal(millions yields y
of shares) (per cent)
ances h/ "others" 5/
(Millions of dollars)

1953 - High
Low. 1951 - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low

26.5k
22.95
35.98
21.93
1*5.89
35.28
19.61*
1*3.22
1*9.08
L0.19

September
October
November 15
November 22
November 29

1*3.98
1*0.1*3
1*0.37
2*0.87
1*1.72

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

2.5
0.9
3.7
1.1*
1*.6
1.5
3.1
1.5
It.2
1.1*

6.25
5.38
5.82
1*.32
1*.1*2
3.61,
1*.35
3.82
L.70
3.91

2,1*55
2,055
3.1*36
2,1*05
1*,030
3,537
l*,0l*7
3,911*
1*,031
3,61*3

1,665
1,311, •
2,388
1,653
2,805
2,517
2,823
2,71*0
2,887
2,568

780
661*
1,01*8
71*6
1,21*1
1,018
1,267
1,155
1,163
1,060

1.8
2.8
2.3
2.5
3.1

l*.3l*
1*.60
U.65
It. 59
1*.50

3,882
3,61*3

2,789
2,568

1,093
1,075
1,063
1,060

n.a.

, available.
1/ Standard and Poor'a composite Index of 500 common stocks, weekly closing
prices, 191*1-1,3-10. Monthly data are averages of daily figures rather than of
Fridays' only. Highs and lows are for Friday's data only.
2/ Averages of daily trading volume on the New York Stock iachange.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve.
h/ End of month figures for member firms of the New York Stock Exchange which
carry margin accountsj excludes balances secured by U.S. Government obligations.
5/ 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 70 per cent of loans to others.
For further detail see Bulletin.
Note.—Highs and lows are for individual series and may be on different dates
for different series.




Exhibit D

H.lh

Corporate and State and local Government
Security Offerings and Placements
(In millions of dollars)
New capita]

January
February
arch

M

1

April
May

'

July
August
September

1,063
1,071
l,3bb

573
732
017

921
771
1,189

818
1,11.6
61,1

991
91b
973

1,063
65b
838

1955
5#
Lu7
1,223

'

I1O8
206
357

1,70
21,9
bu6

672
e/600
e/600

6#
31,7
bop

939
658
1,08

1,820
1,706
1,5L3
e/1,872

3,1,90
3,6u3
973
3,395

3,365
1,1,16
1,121,
1,98b

3,093
b,o6b
5,b59

2,802
3,927
5,913

1st
2nd
3rd
Lth

3,179 3,18U
2,878
e/2,800

2,302
2,805
2,556
2,92?

2,165
2,052
3,931
2,695.

h,9u?
7,1,63
10,38b

53>
332
>35

529
58b
li30

3,162- /
632
90u

6,663
9,5bl
e/12,3bl

l,vL
6< 6
39u

597
61,14
670

"^3/
3,089^'
3,088

1st half ;
Three Quarters
Year

7b2
- 572
506

State' ;iViu loc
1
li66

765
516
395

e/9#
e/850
e/1,000

.

19 5 T

1I78.
886
687

October
November
December
ouarter
ouarter
Quarter
Quarter

-

1,216
6,127
8,821

111

1957

Corporate
1
1956
|

378
• 1,90 .
735

1,27
3b0
61,2

Excluding finance companies b/
1st quarter
2nd ouarter
3rd ouarter
Lth. Quarter
Year

3,268
2,921
2,560
e/2,650

1,61,7
2,5141
2,2),6
2,826

1,727
1,870
1/bbb
2,51,1

e/ll,b02

9,259

7,595

e/ Estimated.
2/ Data through June 3 956 are Bond Buyer data classified as new capital by
Federal peserve; later data are from the Investment. Bankers Association of America
and are somewhat more complete as to coverage than the earlier data, particularly
for Federal Government loans.
2/ Includes #637.2 million AT&T convertible debenture issue.
?/ Includes S571.5 million AT&T common stock issue .
17/ Total new capital issues excluding offerings of sales and consumer finance
companies.
Note.—Details may not add to totals due to rounding..




H.lii

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

Corporate

Month

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

State and
local government

386
701 .
1*30
567
671
788
U77
329
877
525
526
537
57k

383
135
201
386
• 306
191*
199
2U8
176
265
357
185
U35

Other 2/

35
100
50
125
25
39
25
30
75

Large Individual Issues Offered during November

Issuer

Type 3/

Amount
Coupon
(milliona Maturity rate or
Offering
of
net inter- yield
. dollara)
est coat

Rating

CORPORATE
Consumers Power Co.
Dayton Power & Light Co.
So. New England Tel. Co.
Beneficial Finance Co.
Caterpillar Tractor Co.
Transcontinental Gas Pipe
Line Corp.
Trans. Gas Pipe Line Corp.
Michigan Bell Tel. Co.
Ohio Power Co.
Olin Mathieson Chem. Corp.
Houston Ltg. & Pwr. Co.
Idaho Power Co.




Cony. deb.
let mtg. bds.
Common etk.
Deb.
S.F. deb.

35*2
25.0
27.U
50.0
65.0

S.F. deb.
20.0
Common stk. 17.8
Deb.
UO.O
1st mtg.bds. 25.0
Coriv.sub.deb. 60.0
1st mtg.bds. UO.O
1st mtg.bds. 15.0

. 1972
1987

h 5/8
5

h.63
>.97

Aa
Aa

1977
1977

ft 1/2

5.2U
U.5U

Aa

1978

6 1/8

6.17

Ba

1992
1987
1982
1987
1987

U 3/U
1* 7/8
5 1/2

U.65
U.82
5.50
U.65
U.65

U 3/U

U 3/U

Aaa
Aa
Ba
• Aa
Aa

E-2

H.lU

Large Individual Issues Offered during November'(Cont'd)

Issuer

Type 3/

Amount
Coupon
Offering
(millions
Maturity
Rating
net inter- yield
of
dollars)
est cost

STATE AND LOCAL GOVERNMENT
Fairfax Co., Virginia
G.O.
5.5
Hamilton City S. D., Ohio
G.O.
5.5
Jacksonville, Fla.
Utilities rev.30.0
Port of New York Auth.
Rev.
30.0
Cook Co., Illinois
G.O.
20.7
State of Kentucky
G.O.
35.0
Los Angeles Co. Flood Control Dist., Calif.
Rev.
20.0
State of Maryland
G.O.
lit.2
New York, New York
G.O.
36.5
Springfield, Missouri
Water rev . 22.0
Chicago,Illinois
Water rev . 20.0
Lincoln Park S. D., Mich.
G.O.
6.8
State of Ohio
Qxroughfare iev.30.0
Terr, of Hawaii
G.O.
7.0
Oklahoma Co., Okla.
G.O.
6.0
State of Connecticut
Exp. rev.
35.0
Wash. Toll bridge Auth.
Rev.
30.5
Johnson Co. Wtr. Dist.
No. 1, Kansas
Rev.
20.0
State of South Carolina
G.O.
5.0
Bethel Mun. Auth., Penna.
Swr. rev.
6.h

1959-83
1959-60
1959-95/68
1987/67
1958-77
1959-72/68

U.21
3.78
h.6h
3.83
3.58
2.97

3.00-5.00
2.80-3.80
3.20-1.60
3.78
2.60-3.60
2.30-3.00

Baa
A
A
A
A
Aa

1958-83
1960-72
1958-72
1961-97/67
1963-82
1960-86/68
1958-72
1960-77
1961-77
1963-87
1997

3.72
2.99
3.51
h.h7
3.97
1.77
3.35
3.69
3.Wi
3.9?

2.50-3.00
2.50-3.00
2.00-3.55
3.30-1.50
3.U0-U.00
3.25-U.75
2.10-3.30
3.00-3.70
2.85-3.15
3.I4O-U.OO

Aa
Aaa
A
A
A Baa '
Aa
A
A •

U.81
1962-97
2.68
1959-68
1959-97/68 5.U7

3.25-1.75 Baa
2.25-2.70 Aa
3.25-5.50 —

OTHER
None
n.a.—Not available.
. 1/ Includes corporate and other security offerings of $15 million 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 bonds; G.R., general obligations additionally secured by
facilities revenues; L.L., limited liability obligations secured by pledge of designated revenues.




1

0

H.lh

Exhibit F
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 State and
Other 2/
local govt.

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

li36
176
591
7U0
L6l
187
525
370
526
578
576
158
383

I48
280
153
- 153
290
179
97
172
252
2h3
370
369
387

23
100 "
35
25
25
25
•

30 .
30
18

Subsequent to
dale shown
Corporate)State and
Other 2/
1 local govt.
181
796
#6
795
1*86
258
525
115
811
8ii5
617
815
1,193

23
100
35

979
763
61,8
631
862
#6
388
1,98
51k
139
587
573
589

25
25
25
30
15
us
63

Forthcoming Large Offerings, as -of November 29
Issuer

Type

Amount
Approximate"date
(millions
of dollars) of offering

CORPORATE
Virginia Electric 8 Power Co.
lst&ref.mtg.bds.
Northern Natural Gas Co.
S.F. deb.
Chesapeake & Potomac Tel. Co. of Md.
Deb.
Commonwealth Oil Refining Co.
Conv. sub. deb.
Standard Oil Co. of New Jersey
Common stk.

20.0
25.0
30.0
20.0
288.2

American Telephone; & Telegraph Co.

Conv. deb.

720.0

Commercial Credit Co.
Natural Gas Pipeline Co. of America

Notes
1st mtg. bds.

50.0
1)0.0

STATE AND LOCAL GOVFIWIENT
Akron, Ohio
Los Angeles Sch. Dists., Calif.
Indianapolis, Ind.
State of Ohio
Chelan Co. Pub. Ut. Dist.,No.l,Wash.
Greater Baton Rouge Port Comm., La.




Dec . h
Dec. 6
Dec. 10
Dec. 11
Dec. 18
(rights expire)
March 12
(rights expire;
Winter
Winter
.X

Water works rev.
G.O.
0.0.
G.O.
Rev.
Rev.

5.0
15.U
5.1
25.0
250.0
19,h

Dec.
Dec.
Dec.
Dec.
Dec.
Dec.

2
3
3
L
10
11

H.Ui

F-2
Forthcoming Large Offerings, as of November 29 (Cont'd)
Type

Amount
(millions Approximate date
of dollars) of offering

STATE AND LOCAL GOVERNMENT (Cont'd)
Bergen Co., N. J
Phoenix, Arizona
^Minneapolis 6 St. Paul Met. Airport
Comm., Minn.
•^Richmond, Virginia
Chicago Bd. of Education, H i .
Caddo Parish Sch. Dist., La.
New York State Thruway Auth.
Penna. State Highway & Bridge Auth.
*East Baton Rouge Par. S.D. No.l, La,
State of Missouri
State of Texas
Pennsylvania Turnpike Commission
Inter-American Center Auth., Fla.

G.O.
Water rev.
G.O.
G.O.
G.O.
G.O.
Rev. Rev.
G.O.
G.O.
G.O.
Rev.
Rev.

7.2

Dec. 11
Dec. 12

13.0
6.5
25.0
7.5
Uo.o

Dec. 17
Dec. 18
Dec.. 18
Jan. 7
Jan. 1U
Jan. 17
Feb. h
Winter
Winter
Winter
Winter

16.0

20.0

10.0

30.0
12.5

62.0
20.0

OTHER
Montreal, Quebec
Pacific Great Eastern %r. Co.
Union of South Africa

S.F. deb.
S.F. deb.
Ext. loan bds.

18.0
30.0
15.0

Dec. 12
Winter
Winter

*—Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and
local""government issues of $5 million and over.
2/ Includes foreign government and International Bank for Reconstruction
and Development issues.
Note .—Deletions for reasons other than sale of issue: National Cylinder
Gas Company's $17.5 million convertible subordinated debenture issue — withdrawn
from registration