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Not for Publication DECONTROLLED AFTER SIX MONTHS
Holli

January 2, 1958
CAPITAL MARKET DEVELOPMENTS

The volume of large publicly offered securities continues
to be small during these holiday-shortened weeks. During the week
ending December 27, the only State and local Government issue sold-was the
£250 million issue of the Chelan County Public Utility District No. 1,
Washington„ This week the only large offerings scheduled for flotation are two State and local government issues totaling $18 million.
No large corporate issues were sold last week and none are expected
this week.
Bond yields - Yields on outstanding bonds declined further
last week, except for lower-grade corporate and State and local government bond yields, which remained stable. Daily figures for the first
two days of the week show a decline in both Aaa and Baa corporate bond
yields.
Estimated January volume - Corporate security offerings for
new capital are- expected to total $800 million in January, one-fifth
less than the estimated^December volume and one-fourth less than the
volume in January of last year. Included in the estimate are large
public issues totaling over $3b0 million.
State and local governments are expected to offer $700 million of bonds during January. This volume vould be about one-sixth
greater than the volume in December but siiirhtly below that for Jan.uaiy 1957.
Stock prices - Stock prices, as measured by the Standard
and Poor's index of 500 common stocks.increased slightly last week,
Closing at 39.78 on Decenber ?7. Prices declined on Monday, but increased on Tuesday, closing at 39.?? on December 31. Trading volume
was unusually large on the last two days of the year, reaching a total
of over'5 million shares in 1 he final session.
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 B O N D YIELDS

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

Old series

New series

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

(Per cent)
3.1*2
2.99
3.09
2.85
3.17
2.91
3.79
3.07
lwll»
3.66

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

3.15
2.78
2.7b
2.W.
2.9h
2.62
3.19
2.80
3.87
3.15

1.02

3.Ut

3.97
3.8U
3.77
3.73

3.32

i

(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)
f12/27)3.22 (2/8)

n . a . — N o t available™
1 / Weekly average of dally figures.

3.1*0
3.U1
3.35
3.29
3.28

2.73 (6/25)
1.98 (1/8)

2.21 (6/10)
1.90 (9/2)
2.'05
3.05
2.17
3.L5

(Ify)
(12/27)
(2/23)
(8/29)

2.76 (2/21)
3.16
3.03
2.9U

2.86
2.8k

.38

3
1
:£
:S
.59
.59
.58

.30

.61
.29

i
s
.lit

.29
.31
.32
.31

:
~
'
Average term of bonds Included Is 25-26

2/ Weekly averages of dally figures. The old series Includes fully taxable,
marketable 2 1/2 per cent bonds due or first callable after 12 years through
September 1955, and those due or callable In 10-12 years thereafter, including,
beginning October 1957> the h per cent bond of 1969. The new series is comprised
of the 3 per cent bond of 1995 and the 3 1/L per cent bond of 1978-83.
3/ Thursday figures. Only general obligation bonds are included; average
term Te 20 years.
Note.--Highs and lows are for Individual series and may be on different dates
for different series.




EXHIBIT B

LOWER - GRADE BOND YIELDS

Bate

Corporate
Baa 1/

State and
local govt.
Baa 1 /

State and
local govt,
rev. y

(Per cent)
1953 - High
195k - High
1955 - High
1956 - High

3.89 (9/18)
3.50 (1/2)
3.7k (1/8)
3.kh (12/31)
3.63 (12/30)
3.15 (l/lb)
li.lil (12/28)
3.$8 (3/9)
5.10 (11/29) :

1957 - High
Low

U.U2 (h/12)

November
December
December
December
December

5.10
5.09
5.06
5.00
5.00

29
6
13
20
2?

3.79
2.96
3.32
2.93
3.26
3.02
lu22
3.20
14.51
3.90

a. 25
U.Ht
rli.03
3.92
3.92

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)
(1/6)
(12/27)
(3/8)
(8/29)
(2/21)

3.27 (6/26)
2.71 (1/2)
3.00 (1/1)
2.72'(8/13)
2.99 (12/30)
2.76 (1/7)
3.98 (12/28)
2.89 (2/21)
3.98 (1/U)
3.70 (2/22)

V

1/ Weekly average of daily figures. Average term of bonds
included is 2F>-26 years.
2/ Thursday figures. Only general obligation bonds are included; average term 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 M A R K E T

1
Date

Stock price
index 1/

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

Stock market customer credit
Customers1
debit bal- loans to
ances 4/ "others" £/
(Millions of dollars)

1953 - High
195b - High
Low
1955 - High
1956 - High
Low
1957 - High
October
November
December 13
December 20
December 27

26.54
22.95
35.98
21.93
1*5.89
35.28
49.64
43.22
U9.08
39.48

(1/2)
(9/18)
(12/31)
(1/8)
(12/9)
(1/14)
(8/3)
(1/20)
(7/12)
(12/20)

40.35
U0.73
39.48
39-78

2.5
0.9
3.7
1.4
4.6
1.5
3.1
1.5
4.2
1.4

6.25
5.38
5.82
4.32
4.42
3.64
4.35
3.82
4.72
3.91

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
2,823
2,740
2,887
2,517

780
664
1,048
746
1,241
1,018
1,267
1,155
1,163
1,054

2.8
2.5,
2.3
2.6
2.5

4.60
4.62
4.59
4.72
4.68

3,643
3,577
n.a.

2,568
2,517
n.a.
n.a.

1,075
,1,060
1,064
1,063

n.a.

, available.
1/ Standard and Poor's composite index of 500 common stocks, weekly closing
prices, 1941-43"10. Monthly data are averages of daily figures rather than of
Fridays1 only, highs and lows are for Friday's data only.
2/ Averages of daily trading volume on the New York Stock Exchange.
J/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve.
4/ End of month figures for member firms of.the New Xork Stock Exchange which
-carry margin accounts; excludes balances secured by U.S. Government obligations.
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
Corporate and Statu and Local Government
Security Offerings and Placements
(In millions of dollars)
•New capital
1950
January
February
March

800

April
May
June
July
August
September

|

Corporate
1957
1

1956

1958

1,063
1,071
1,3UJU

573
712
817

700

921*
771
1,1*89
991
911*
973

71*2
572
506

l*ol*
696
390

818
1,11*6
61*1

765
51*6
395

378
1*90
735

1,063
651*
8#

529
581*
1*30

1*08
206
357

695
621
-5/600

639
31*7
1*09

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

1,1*9.0
1,603
971
1,395

3,526
5,070
e/6,987

3,093
U,06U
5,1*59

.October
November
December

1,01b
e/900
3/1,000

1st
2nd
3rd
itth

3,1*79
3,18k
2,878
e/2,9Ui

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

6,662
9,51*0
e/12,li5U

. 1*,907
7,1*63
10,381*

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

State and local 1/
| 1957
1
1956

71*5 ,
1,0692/
1,088

-7 06
'

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

quarter
quarter
quarter
quarter

Year

3,268
2,92k
2,560
e/2,76l4
e/H,5l 5

V

1,61*7
2,51*1
2,216 .
2,826
9,260

•

e/ Estimated.
3/ 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.
3/ Total new capital issues excluding offerings of sales and consumer finance
companies.
Note.—Details may not add to totals due to rounding.




Exhibit E

H-lit

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

Month

Corporate

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

State and
local government

701
k30
567
671
788
k77
329
877
525
526
537
57k
1*20

Other 2/

135
201
386
306
19h
h99
2U8
176
265
357
185
U35
386

100
50
125
25
39
25
30
75
—

Large Individual Issues Offered December 1 through 27

Issuer

Type J/

Amount
Coupon
rate or
Offering
(millions
Maturity
net inter- j yield
of
dollars)
est cost

Rating

CORPORATE
Virginia Elec. & Pwr. Co.
Northern Natural Gas Co.
Chesapeake &• Potomac Tel.
Co. of Maryland
Commonwealth Oil Refining
Nat'1. Cylinder Gas Co.
Standard Oil Co. of N. J.

lst&ref.mtg.bda.20.0
S.F. deb.
25.0

1987
1977

h 1/2
U 5/8

h.h7
U.63

Deb.
30.0"
Conv. sub.deb. 18.5
Conv. sub.deb. 17.5
Common stk. 288.2

1993
1972
1977

Yl/8
6
5 1/8

3.98
6.00
5-13

Aa
A
Aaa
Ba

STA.TF. AND LOCAL GOVERNMENT
Akron, Ohio
Los AngeDes Sch. Dists.,
Calif.
Indianapolis, Ind.
State of Ohio




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

5.0

1959-78

15.0 1959-83
5.1 1960-89
25.0 1956-77/67

3.36

2.5.0-3.UO

A

3.19
2.91
2.65

2.35-3.25 Aa
2.25-3.00 Aaa
2.0U-2.70 Aaa.

H .11:

E-2

.

Large Individual Issues Offered December 1 through 27 (Cont'd)

Issuer

Type 3/

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

Rating

STATE AMD LOCAL GOVERNMENT
(Continued)
. Greater Baton Rouge Port
Comm., Louisiana
Bergen Co., New Jersey
Phoenix, Arizona
State of Texas
Minneapolis and St. Paul
Met. Airport Comm., Minn.
Atlanta, Georgia
Mobile, Alabama
Richmond, Virginia
Chicago Bd. of Educ., 111.
Chelan Co. Pub. Ut. Dist.
No. 1, Washington

Rev.
19.lt
G.O.
7.2
VJtr. rev,. 16.0
12.5
G.O.

2.60-3.1*0 Baa
-1960-77/67
3.36
" 2.70 -2.10-2.80 Aa
1959-82
1959-87-/68
3-51 2.50-3.50 A
2.1,0-2.70 Aa
1966-86/67
2.70

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

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

Rev.

250.0

2013

2.79
2.96
3.93
2.I18
3.07
5.20

2.25-2.90
2.00-2.90
2.90-1.00
2.00-2.50
2.50-3.10
5.00

Aa
Aa
Baa
Aaa
A
—

OTHER
None
1/ Includes corporate and other security offerings of $15 million and Over;
State.and local government security offerings of $5 million and over.
£/ 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.




'

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
Subsequent to
date shown
da1e shown
Corporate State and
Other 2/ Corporate State and
Other 2j
local govt.
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

. 136
176
591
710
L61
187
525
370
5#
578
576
li58
383

b8
280
153
153
290
179 .
97
172
252
2L3
370
369
387

23
100
35
25
25
25
30
30
18

L8l
796
966
795
L86
258
525
hi5
811
8Li5
6L7
815
1,193

979
763
61,8
631
862
396
388
h98
5lix
139
587
573
589

23
100
35
25
25
25

^

30
15
L5
63

Forthcoming Large Offerings, as of December 27
Issuer

Type

Amount
Approximate date
(millions
of dollars) of offering

CORPORATE
Washington Water Power Company
Connecticut Lt. & Pwr. Co.
Commercial Credit Co.
^Commonwealth Edison Co.
^Pacific Power & Light Co.
West Virginia Pulp & Paper Co.
^Alabama Power Co.
^Pacific Gas & Electric Co.
Commerce Oil Refining Corp.
-aRoyal Dutch Petroleum Co.

1st nvtg. bds.
20.0
1st nitg. bds.
30.0
Notes
50.0
S.F. deb.
5o.o
1st mtg. bds.
15.0
Deb.
tiO.O
1st mtg. bds.
23.0
1st & ref. nit p. bds.75.0
Deb. bds. & common hS.Q
Common stk.
3/

Indiana & Michigan Electric Co.
American Telephone & Telegraph Co.

1st mtg. bds.
Conv. deb.

25.0
71P.0

Natural Gas Pipeline Co. of America

1st mtg. bds.

hO.O




Jan. 9
Jan. 9
Jan. 9
Jan. 15
Jan. 16
Jan. 16
Jan. 17
Jan. 22
Jan.
Feb. 10
(rights expire)
Feb. lU
March 12
(rights expire)
winter

Z

H.lit

F-2
Forthcoming Large Offerings, as of December 27 (Cont'd)
Issuer

. Type

Amount
Approximate date
(millions
of offering
of dollars)

STATE AND LOCAL GOVERNMENT
University of Minnesota
Minneapolis-St. Paul Met. Airport
Comm., Minn.
Caddo Parish Sch. Dist., La.
Los Angeles, California
Dade Co., Florida
Des Moines Ind. Sch. Dist., Iowa
State of New York
^Georgia Rural Roads Auth.
*State of Missouri
- New York, New York
State of North Carolina
Penna. State hi.-hway & Bridge Auth.
State of California
Florida State Board of Education
Los Angeles, California
"State of New Hampshire .
-x-No. Hempstead Sch. Dist. No. 9, N.Y.
East Baton Rouge Par. S.D. No.l, La.
Denver,„Colorado
Wichita, Kansas School Dist., No. 1
New York State Thruway Auth.
Pennsylvania Turnpike Commission
Inter-American Center Auth., Fla.

Rev.
G.O.
G.O.
" G.O*
G.O,
G.O.
G.O.
Rev.
G.O.
G.O.
G.O.
Rev.
G.O.
G.O.
Water rev.
G.O.
G.O.
G.O.
Water rev.
G.O.
Rev.
Rev.
Rev.

5.0
13.0
7.5
25.0
lii.5
5.7
37.5
17.5
55-0.
25.5
10.0
20.0
150.0
7.9
9.0
28J:
7.L10.0
20.0
5.0

Lo.o

62.0
20.0

Dec. 30
Dec.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.

30
7
7
6
9
lk
lk
15
15
16
17
22
28
29
30
Feb. U
Feb. k
Feb. 5
Feb. 6
V/inter
Winter
Winter

OTHER
Int'l. Bank for Reconstruction and
Development
Union of South Africa

Bds.
Ext. loan bds.

150.0
15.0

15
winter

*—Included in table for first time.
1/ Includes corporate and other issues of &15 million and ever; State and
local government issues of $5 million and over.
2/ Includes foreign government and International bank for Reconstruction
and Development issues.
3/ The net proceeds are expected to total &200-&250 million; however, the
amount to be offered in the United States is as yet indeterminate.
Note.—Deletions for reasons other than sale of issue: None.