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Not for Publication DECONTROLLED AFTER SIX MONTHS
H.lU

.

Februaiy 5> 1958

CAPITAL MARKET DEVELOPMENTS
Large public security offerings for new capital during the week
. ending January 31 consisted of State and local government issues totaling
$132 million and a foreign issue for $50 million. No large corporate issues for new capital were sold. The calendar for' this week includes corporate issues totaling $ j 7 million and State and local government issues
i.
amounting to $233 million.
Bond yields - Yields on outstanding bonds were mixed last week.
The weekly average for outstanding corporate bond yields continued to decline, although on a daily basis, there was some upturn in Aaa yields
toward the end of the week. Yields on U, S. Government and State and'
local government bonds increased slightly.
Some strengthening in offering yields on new corporate issues
has occurred. A new A-rated, 30-year first mortgage electric utility issue was offered to investors this week to yield 3.90 per cent — 10 basis
points above the offering yield for a comparable issue sold on January 20,
and it is reported that the new issue did not move rapidly.
Stock prices - The Standard and Poor's index of 500 common stocks
changed little last week, closing at Ul.70 on January 31. Prices increased
substantially on the first two days of this week then declined, closing at
42.19 on Wednesday.
More detailed information concerning recent capital market developments is presented in the attached exhibits.

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




H I G H - G R A D E B O N D YIELDS

' tote

Corporate
Aaa ]/

U. S. Govt,
long-term 2/

State and
local govt.
A a a y

Spread b e
U. S . Qofft
Corporate State and
local Aaa

(Per cent)
1953 - High

1955 - High
Low
1956 - High
Low
1957 - High
Low
1958 - High
Low

3.42 (6/19)
2.99 (1/9)
3.09 (1/8)
2.85 (4/23)
3.17 (12/23)
2.91 (1/7)
3.79 (12/28)
3.07 (3/2)
4.14 (9/27)
3.66 (it/12)
3.68 (1/3)
3.56 (1/31)

3.19 (6/5)
2.74 (12/31)
2.7k (1/8)
2.45 (8/6)
2.97 (8/5)
2.64 (1/7)
3.45 (12/28)5
2.84 (2/17)
3.76 (10/18)
3.18 (2/8)
3.28 (1/31)
3.20 (1/10)

2.73 (6/25)
1.98 (1/8)
2.21 (6/10)
1.90 (9/2)
2.34 (9/8)
2.05 (5/26)
3.05 (12/27)
2.17 (2/23)
3.45 (8/29)
2.76 (2/21)
2.86 (1/10)
2.65 (1/24)

January 3
January 10
January 17
January 24
January 31

3.68
3.65
3.61
3.57
3.56

3.22
3.20
3.21
3.27
3.28

2.86
2.86
2.68
2.65
2.68

1951 - High

.38
.20
.43
.30
.27
.11

.h1

.12
.60
.27
.46
.28
.46
.45
.ko

.30
.28

.83
.33
.62
.30
.76
.57
.71
• 32
.47
.15
.62
-3k

.36
.34
.53
.62
.60

1/ Weekly average of daily figures. Average term of bonds included is 25-26 years.
2/ Weekly average of daily figures. The series includes bonds due or callable in
10 years or more.
3/ Thursday figures. Only general obligation bonds are included; average term is
20 years.
Not.—Highs and lows are for individual series and may be on different dates for
different series.




EXHIBIT B

LOWER - GRADE

BOND

Date

YIELDS

Spread between
Aaa and Baa
1 State and
1local govt.

" Corporate
Baa 1/

State and
local govt.
Baa 2/

3.89 (9/18)'
3.50 (1/2)
3.7k ( 1 / 8 )
3.W* (12/31)
3.63 (12/30)
3.15 (1/lii)
U.Ul (12/28)
3.58 (3/9)
5.10 (11/29)
U.U2 (k/12)
h.96 (1/3)
k.72 (1/31)

3.79 (6/25)
2.96 (1/8)
3.32 (1/7)
2.93(6/5)
3.26 (12/29)
3.02.(1/6)
L 2 2 (12/27)
3.20 (3/8)
k.Bi (8/29)
3.90 (2/21)
3.92 ( 1 / 3 )
3.73 (1/2U)

1.27
.6U
1.28
1.16

It.96
U.92
U.8U
U.77

3.92
3.88
3.77
3.73
3.76

1.28
1.27
1.23
1.20
1.16

Corporate

(Per cent)
1953 - High
195U - High
1955 - High "
1956 - High
1957 - High
1958 - High
Low
January
January
January
January
January

3
10
17
2k
31

k.72

'

.69
.k2

.68
.52
•5U
.kS

.63
.k2

,
/
/"

1.21
.98
1.16
.93
1.03
.87
1.17
.89
1.21
1.0U
1.09
1.02
1.06
1.02
1.09
1.08
1.08

1/ Weekly average of daily figures. Average term of bonds includes is
25-26years.
2/ Thursday figures. Only general obligation bonds are included; 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

Trading
Common
Stock market customer credit
volume 2/
Customers'
Bank
(millions yields y
Total debit bal- loans to
of shares) (per cent)
ances h/ "others" 5/
(Millions of dollars)

'1951* - High
1955 - High

1957 - High
Low
1958 - High
November
December
January 17
January 2 i
l
January 31

26.5k (1/2)
22.95 (9/18)
35.98 (12/31)
2b.93 (1/8)
1*5.69 (12/9)
35.28 (1/lW
l 9 6 t (8/3)
*.1
1*3.22 (1/2C
1*9.08 (7/12)
39.1*8 (12/20)
1*1.71 (1/21*)
1*0.37 (1/10)

6.25

II
1*.1*2
3.6U

i

3.91
1*.58
1*.1*2

1*0.3F

lo*.

ll_
*.u

1*1.71
1*1.70

2.1*
2.3

1*. 62
i*.63
lt.50
1.*3
*1*

1.*
*12

2,1*55
2,055
3,1*36
2,1*05
1*,030
3,537
l,l7
*0*
3,911*
U.031
3,576

1,665
1,3U*
2,386
1,6c3
2,605
2,517
2,823
2,71*0
2,887
2,1*82

3,577
3,576

2,517
2,1*82

n.a.

,

6l
6>
1,01*8
• -71*6
1,21*1
1,018
1,267
1,155
1,163
1,051*
1,058
1,051
1,060
1,091*
1,053
.1,058

n.a.—Not available.
1/ Standard and Poor's composite index of 500 common stocks, weekly closing
prices, 191*1-143-10. 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 Exchange.
3/ 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 wh
carry margin accounts; excludes balances secured by 0. S. Government obligations
5/ Wednesday figures for weekly reporting member banks. Excludes loans fc;
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.
Fcr further detail see Bulletin.
_
_
Note.—Highs and lov, ore for individual series and may be on different dates
for different series.




. ^

Exhibit D
Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

1958
January
February
March

a/ 800
e/ 625

New capital

Corporate
1
1957
1
1,063
1,071
1,3UU

1956

•.

573
712
817

1958
,

796
e/ 750

State and local 1/
1
1956
1
1957
7U2
572
506

UOU
696
. 390

92U
771
1,189

July
August
September

818
l,lU6
6U1

765
5U6
393

378
U90
735

991
911
973

April
May

1,063
65U
038

529
, 581.
U31

U08
206
357

#8

6#
3U7
L09

October
November
December

1.01U
831
e/1,000

1,089^/
1,088

1st
2nd
3rd
Uth

3,U79
3,16U
2,078
e/2,8U5

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

2,029

6,662
9,51(0
5/12,385

U,907
7,U63
10,36U

7,099

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

633

698
1,820

3,524 .
5,069

1,1490
1,603
.971
1,395
3,093
h,0614
5,U59

Excluding finance companies 3/
1st
2nd
3rd
Uth

quarter
quarter
quarter
quarter

Year

3,268
2,92k
2,560
2/2,695

1,61*7
2,5U1
2,21*6
2,826

e/11,UU6

9,260

e/ Estimated.
1/ Data through June 1956 are Bond Buyer data classified as new capital by
Federal Reserve; 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 $571.5 million AT&T common stock issue.
J3/ Total new capital issues excluding offerings of sales and consumer finance
companies.
Note.—Details may not add to totals due to rounding.




H.lti

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

- Month

Corporate

1956 - December
1957 - January
February
March
April
May

State and
local government

1*30
567
671
786
U77
3#
877
$25
526
537
57U
it20
399

. July
August
September
October
November
December

201
366
. 306
19li
U99
2U8
176
265
357
185
1*35
306
h39

Other 2/

100
50
125
25
39
25
30
75
—

Large Individual Issues Offered during January

Type y

Amount.
Coupon
(millions Maturity rate or
Offering
not interyield
of
dollars)
est cost

Rating

CORPORATE
Commercial Credit Co.
Notes
50.0
Conn. Light & Power Co.
IsWref .mlg,bd31-30.0
Washington Water Pwr. Co.
1st mtg. bdi". 20.(1
Commonwealth Edison Co.
S.F. d<»h. - 50.0
W. Va. Pulp & Paper Co.
Deb. liO.O
Pacific Power & Light Co.
1st mtg. bds. 15.0
Alabama Power Co.
1st mtg. bds. 23.0
Kimberly Clark Corp.
S.F. deb.
15.0
Pacific Gas & Electric Co. Ist&ref.mtg.bds .75.0




1978
,1968

1908
,08
20

1976
1968
1988
1983
.1978

L 1/6
3 7/6
h 1/8
3 7/8
h
h

1/h

7/8
31
/,
3 3A
3
3

h*20

3.69
ii.10
3.83
a.05
b.25

3.85

3.75

3.65

Aaa
A
Aa
A
Baa
A
Aa .
Aa

H.lh

E-2
•
•
I
.
Larpe Individual Issues Offered during January (Cont'd)

Type 3/

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

STATE AND LOCAL GOVERNMENT
G.O.
Los Angeles, California
25.0
1959-68/6*)
'Dade Co., Florida
G.O.
lit. 5
1958-72/63
G.O.
Caddo Parish S. D., La.
1959-78
' 7.5
Des Moines Sch. Dist., Ia.
G.O.
5.7
1958-77
State of New York
G.O.
1959-72
37.5
Rev.
Ga. Rural Roads Auth.
17.5
1959-78/68
0*0.
State of Missouri
55.0
1959-79
New York, New York
0.0.
1959-61
25.5
10.0
State of North Carolina
G.O.
1959-77
Pa. State Hwy. & Bridge
Rev.
Auth.
20.0
1960-79/65:
Rev.
San Diego Wtr. Auth.,Cali£
7.5 , 1959-93
Penna. State Univ.
Rev.
11.8
1961-77,99
Swr. rev.
Mansfield, Ohio
6.2
1959-87/67
State of California
G.O.
100.0
1959-83/78
Swr. rev.
Milwaukee Co., Wise.
1959-68
5.7
Puerto Rico Water Resources
Rev.
Auth.
25.0
1960-95
Wtr.&swr.rev. £.0
Dallas, Texas
1958-78
Dallas, Texas
G.O.
Y.8
1958-77
Fla. State Bd. of Ed.
G.O.
7.9
1959-78/64
Tonawanda City S.D., N.Y.
G.O.
5.1
1958-86
8.0
State of South Carolina
G.O.
1959-74
Univ. System Bldg. Auth.,
G.O.
Georgia
9.0
1959-03
Boston Met. Dist., Mass.
G.O.
1959-88
5.5
Wtr. rev.
Los Angeles, California
1959-88
9.0
Rev.
Port of New York Auth.
ho.o
1959-78/68
El.,wtr.&swr.rev. 6.8
1960-79/73
Austin, Texas
G.O.
State of New Hampshire
28.L . 1959-86

3.18
3.61
3.17
2.62
2.28
3.Ul
2.3k
2.12
2.39

Aa
A
A
Aa
A
A
1.60-2.38 . Aaa
1.75-2.05 A
1.60-2.1*0 Aa

2.63

1.90-2.70
2.00-3.35
2.50-3.73
2.30-3.75
1.65-3.15
1.50-2.15

2.10-3.30
2.75-3.50
2.15-3.20
1.80-2.60
1.60-2.30
2.20-3.W

3.2?
3.65
3.07
2.15

2.60-4.10
1.50-2.80
1.60-2.80
1.75-3.10
1.80-3.30
1.50-2.10

k.n

2.72
2.71
3.00
3.23
2.29

Aa
A
——

Baa
Aa
Aaa
Baa
Aa
A
A
Baa
Aa

2.50-U.00 A
1.60-3.00 Aa

2.86
3.06

1.80-3.20

Aa

1.80-3.20 A
1.60-3.00 Aa .
1.50-2.70

3.06
2.95
2.55

OTHER
Int'l Bk. for ReconstrucBds.
tion and Development
150.0
Ext. loan bds. 15.0
Union of South Africa
Ext. deb.
50.0
Quebec Hydro-Elec. Comm.




1979
1968

1983

h 1/h

5 1/2
3 3/U

,

In 29
5.70
3:83

Aa
A
A

t
H.Ik

E-3

n.a.—Not available.
1/ Includes corporate and other security offerings of $15 million and over;
State and local government security offerings of'45million 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
obligations; Rev., revenue bonds; G.R., general obligations additionally secured by
facilities revenues; L.L., limited liability obligations secured by pledge of designated revenues.




Exhibit F

H.lli

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
State and
Corporate
Other 2/
local govt.

Date of
computation
1957 - Jan. 31
Feb. 28
Mar. 29
Apr. 30
May 31
June 28
July 31
Aug. 30
Sept. 30
Oct. 31
Nov. 29
Dec. 31
1958 — Jan. 31 -

591
7ii0
1+61
187
525
370
526
578
#6
158
383
378
1*98

153
153
290
179
97
172
252
21*3
370
369
387
383
1*29

35
25
25
25
30
30
18
150

Subsequent to
date shown
State and
Corporate
Other 2/
local govt.
966

795
1*86 .
. 258
525-^
U15
811
81*5
61*7
815
1,193
.1,161
1,378

61*8
631
862
396
388
1*98
51k
1*39
587
573
589

35
25
25
25
30
15
15
*
63

61I4

165

51*6

—

Forthcoming Large Offerings, as of January 31
Issuer

Tennessee Gas Transmission Co.
*Texas Utilities Co.
Royal Dutch Petroleum Co.
Northern Natural Gas Co.
Southern California Edison Co.
General Motors Acceptance Corp.
Indiana & Michigan Electric Co.
-*New York State Electric & Gas Co.
Pennsylvania Electric Co.
Cleveland Electric Illuminating Co.




Type

Amount
Approximate date
(millions
of offering
of dollars)

Common stk.
Common stk.
Common stk.

30.8
16.6
100.0

Common stk.

21.8

Pfd. stk.
Deb.
1st mtg. bds. „
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.

25.0
150.0
25.0
25.0
29.0
30.0

Feb. 1
*
Feb. 5
Feb. 10
(rights expire)
Feb. 11
(rights expire)
Feb. 12
Feb. 12
Feb. 1 *
1
Feb. 2i
Feb. 25
Feb. 26

F-2

H.m

Forthcoming Large Offerings, as of January 31 (Cont'd)
Type

Amount
(millions Approximate date
of offering
of dollars)

CORPORATE (Cont'd)
1st mtg. bds.
-^Central Illinois Public Service Co.
15.0
1st mtg.&coll.tr.bds.30.0
•^United Gas Corp.
Pfd. stk..
Public Service Electric & Gas Co.
25.0
1st mtg. bds.
Union Electric Co.
35.0
Conv. deb.
American Telephone & Telegraph Co.
718.3
•^Chicago,. Rock Island & Pacific HR*'
Commerce Oil Refining Corp.
Natural Gas Pipeline Co. of America

1st mtg. bds.
Deb.,bds. &'common
1st mtg. bds.

16.0
45.0
1*0.0

.
Feb. 26
Feb. 27
.
Mar. 5.
.
,
Mar. 6
, Mar. 12
(rightsi expire)
Mar. 13
Winter
Winter

STATE AMD LOCAL GOVERNMENT
Columbus City Sch. Dist., Ohio
Detroit, Mich.
Springfield, Illinois
Allegheny Go. Sanitary Auth., Pa.
No. Hempstead Sch. Dist. No. 9, N.Y.
East.Baton Rouge Par. S.D. No.l, la.
Memphis, Tenn.
^-Detroit, Michigan
New Orleans, La.
Denver, Colorado
Public Housing Authorities
Wichita. Sch. Dist. No. 1, Kansas
New York State Thruway Auth.
State of Minnesota
^Hartford, Connecticut
Met. Water Dist. of Southern Calif.
Guilford Co.", North Carolina
^Hempstead U. F. S. D., N. Y.
•^Kansas City Sch. Dist., Mo.
Long Beach, California
State of Connecticut
State of Alabama
-^Cleveland, • Ohio
->State of Kentucky
Houston. Ind. Sch. Dist., Texas
Milwaukee, Wisconsin
Pennsylvania Turnpike Commission
Inter-American Center Authority,Fla.
Met. Fair f Exposition Auth., 111.
OTH !'
'•
.?
None




G.O.
Wtr. rev.
Swr. rev.
Swr. rev.
G.O.
G.O.
G.O.
G.O.
G.O.
Wtr. rev.
—

G.O.
Rev.
G.O.
G.O.
Rev.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Wtr. rev.
Rev.
Rev.
B1dg. rev.

5.0
5.0
5.6
25.0
7.h

10.0
12.5.

lio
i.

6.3
20.0
67.1
5.0
50.0
12.0
6.9
18.0
6.0
5.h

7.0 .
10.1
35.0
21.0
25.0
35.0
15.0
10.0
62.0
20.0
25.0

Feb. h
Feb. k
Feb. h
Feb. h
Feb. h
Feb. h
Feb. h
Feb. k
Feb. 5
Feb. 5
Feb. 5
Feb. 6
Feb. 6
Feb. 11
Feb. 11
Feb. 11
Feb. 11
Feb. 13
Feb. 17
Feb. 18
Feb. 18 .
Feb. 19
Feb. 25
Feb. 25
Feb. 26
Mar. 18
Winter
Winter
Winter

H.lit

F-3

Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and
local government issues of #£ million and over.
2/ Includes foreign government and International Bank for Reconstruction
and Development issues.
Note.—Deletions for reasons other than sale of issue: None.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102