Full text of H.16 Capital Market Developments : July 20, 1955

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Sot^blication

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^

H.14

y
* July 20, 1955

CAPITAL MARKET DEVELOPMENTS
Large corporate offerings totaling 46 million dollars
and large State and local government issues vath proceeds of 31
million were publicly floated f o r new capital during the week ending July 15. This week State and local governments are scheduled
to offer large issues with proceeds of .174 million dollars including
121.5 million by Public Housing Authorities. One 20 million dollar
corporate offering w i l l be issued.
Sale of a 5 million dollar Wayne County, Michigan issue
was postponed l a s t week due to technical reasons. Terrebone Parish,
Louisiana rejected a l l bids on a 2 million dollar bond o f f e r i n g .
The estimated July volume of State and local securityofferings has been lowered t o 450 million dollars from 600 million
largely because of the rejection of the-single bid for the New York
Thruway issue l a s t week. The new estimate i s s t i l l well above t o t a l
offerings l a s t July.
Bond yields - State and local government Aaa bond yields
rose four basis points during the week ending July 15. Yields on
U. S. Government long-term bonds increased one basis point, and
corporate Aaa yields did not change.
Treasury yields rose three more basis points by Tuesday
of t h i s week, according to daily f i g u r e s .
Yields on State and local government Baa bonds rose three
basis points l a s t week, corporate Baa yields increased one basis
point and State and local government revenue bond yields remained
steady.
Stock ma iket credit - Customers' debit balances, excluding credit extended on U» S." Government obligations, of member
firms of the New York Stock Exchange, rose 27.1 million dollars to
t o t a l 2,712 million at the end of June. Keney borrowed by member
firms on c o l l a t e r a l other than U. S. Government securities decreased
26 million d o l l a r s . Free c r e d i t balances dropped to 918 million
dollars a t the end of June.
Stock prices down - The SEC index of 265 common stocks
decreased s l i g h t l y l a s t week to 256.8, j u s t below the high of the
year. This i s the f i r s t decrease in nine weeks. Daily indexes
indicate further small declines in prices f o r the f i r s t two days
of t h i s week.




.j j

H.lli

—2—

Below are May and June 1955 figures for stock market credit
outstanding:
(Millions cf dollars)
^

May

June

1

Customers debit balances - t o t a l

2-731

2,758

Customers1 debit balances - excluding
credit extended on U. S. Government
obligations
-

25681j.

2,712

Money borrowed by member firms maintaining margin accounts

2,119

2,093

Honey borrowed, by member firms maintaining margin accounts, on c o l l a t e r a l
other than Government obligations

2,01+7

2,020

92 8

918

Customers' f r e e credit balances
Bank loans to others for purchasing
and carrying"securities ( l a s t
Wednesday of month - weekly reporting member banks, excluding Governments for New York and Chicago r e porting banks)

-

Total stock market credit (equals sum
of item 2 and item 6)

1,103

1,166

3,787

3,872

More detailed information concerning recent capital market developments w i l l be found in the attached exhibits.

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
Weekly

Per cent per annum

CORPORATE Am

U. S. GOVERNMENT
B-lejm, lOMabl

Date

U. S. Govt,
long-term 2 /

Corporate
Aaa y

S t a t e and l o c a l
g o v t . , Aaa j /

Spread between
. U . S . Govt, and
Corporate S t a t e and
l o c a l Aaa

(Per c e n t )
1952 - High
Loir
1953 - High
Low
1954 - High
LCTT
1955 - High
Low

3.03 ( W
2.91 (2/15)
3Ui2 ( 6 / 1 9 )
2.99 (1/9)
3.09 (1/8)
2.85 (U/23)
3 . 0 5 (7/15)
2.91(1/7)

June
June
July
July
July

3.05
3.05
3.05
3.05
3.05

17
2h
1
8
15

'

2.79
2.56
3.15
2.78
2.7k
2.lilt
2.83
2.62
2.75
2.78
2.81
2.82
2.83

(12/27)
(5/17)
(6/6)
(12/26)
(1/9)
(8/7)
(7/15)
(1/7)

2.00
1.65
2.73
1.98
2.21
1.90
2.23
2.05
2.08
2.09
2.1li
2.19
2.23

(10/23)
(5/D
(6/25)
(1/8)
(6/10)
(9/2)
(7/120
(5/26)

.37
.19
.38
.19
A3
.32
•3U
.22

1.02
.71
.81
.30
.61
.29
.70
.5U

.30
.27
.21
.23
.22

.67
.69
.67
.63
.60

y Weekly average of d a i l y f i g u r e s . Average tenn of b o n i s included i s 25-26
years.
2 / Weekly average of d a i l y f i g u r e s ; old s e r i e s . Average term t o f i r s t c a l l
of bonds included i s 13-lk y e a r s .
3 / Thursday f i g u r e s . Only general o b l i g a t i o n bonds are included; average
term i s 20 y e a r s .
Note.—Highs 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 cn d i f f e r e n t dates
for different series.




'

L O W E R - G R A D E B O N D YIELDS
Weekly

CORPORATE B a a

STATE A N D LOCAL GOVT. B a a

\

V

i^,i
i

vv<

-

T""',
U

-

k

STATE A N D LOCAL GOVT. REVENUE

:

Corporate
Baa y

State and
local govt.
Baa 2 /

State and
local govt.
rey, V

(Per cent)
1952 - High
Low
1953 ~ High
Low
1954 - High
Low
1955 - High
Low
June
June
July
July
July

17
24
1
8
15

3.63
3.18
3.89
3.50

•2.98 (l0/23>
(V4)
(5/16) • 2.W (4/17)
(9/18)
(1/2)
I:?I U / e f

1:88®

s t a s u

1:11

3.51

3.07
3.10
3.11
3.14
3.17

I S

2.69
2.27
3.27
2.71
3.00
2.72
!

:

(12/19)
(4/25)
(6/26)
(1/2)
(1/1)
(8/13)
W

2.80
2.80
2.84
2.84
2.84

~
y Weekly average of daily figures. Average term of bonds
included i s 25-26 years.
2 / Thursday figures. Only general obligation bonds are
includedj average term i s 20 years.
2 / Friday figures. Average rating of bonds included i s
between Baa and A; average term i s 20 years.
Note.—Highs and lows are for individual series and may
be on different dates for different series.




-rx

Stock p r i c e
index y

Common
Trading
stock
volume 2 /
(ml 111CDS yielda V
of a h a r e s ) (per c e n t )

Stock market c r e d i t
Custernera 1
d e b i t balhL " o t h e r s " 5 /

%
S

( M i l l i o n s of d o l l a r s )

1552 - H i # i
1953 - High
Lor
195k - High
Lor
1955 - High
Lor

jSe

July 1
July 8
J u l y 15

165.3 (12/26)
151.7 (10/24)
167.1 0 / 2 )

m.o (9/18)

221.1; (12/31)

iff* 8 ®

217.lt ( l / l U )

3 3

253.6

tin

2.0

0.9
2.5
0.9

g
2.0
2.2
2.7

41

8

Wo
W2
3.87

3,537

3^872

1,332

iSS
allw

22

1,653

2,712
2,517

2^7$

1,103
1,172

c / Corrected.
n . a . Not a v a i l a b l e .
i s t o c k s , weekly c l o s i n g p r i c e s , 1939-100$ c o n v e r t e d
V SEC i n d e x of 265 t_
The c o n v e r s i o n f a c t o r i s 1 2 3 . 9 1 .
t o 1957-1*9-100 by Federal. R
lvera gee of d a i l y t r a d i n g volume on t h e New York Stock Exchange.
Moody's 200 connon s t o c k s ; end of month f i g i r e a .
_J End of month f i g u r e s f o r member f i r m s of t h e New York Stock Exchange which
carry"margin a c c o u n t s ; excludes b a l a n c e s secured by D. S . Government o b l i g a t i o n s .
5 / Wednesday f i g u r e s f c r weekly r e p o r t i n g member b a n k s . Excludes a l l loans
f o r purchasing o r c a r r y i n g U. S . Qovernnente f a r 1952j s i n c e 1953 e n l y t h e s e l o a n s
a t banks i n New York and Chicago a r e e x c l u d e d . Weekly r e p o r t i n g banks account f o r
about 72 per c e n t of l o a n s t o o t h e r s .
Note.—Highs and lows a r e f c r i n d i v i d u a l s e r i e s and may b e cn d i f f e r e n t d a t e s
for different series.




H.Ik-

Exhibit D
Corporate and State and Local Government
Security Offerings and Placements'
(In millions of d o l l a r s ) ,

1955

Corporate
1 1 9 5 5 ir

January
February
March

546
436
1,261

April
Hay ;
July
August
September

New c a p i t a l
1953

1955

635

623
623
666

535
312
538

e/500
e/900
^675

497
656
842

779.
675 •
1,123

427
e/350
e/630

e/500

909

483
#5
753

e/450

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

. .

547

%
1,003
290
604

2,243
e/2,075

1,608
1,995
1,991
1,896
7,490

577

'

-

1,438 y
1,912
2,578

S t a t e and l o c a l
1 195T 1

1,385
e/1,405

8,1.95

1953

396
411
565

390
360
426

734
748
853

#9
649
434

279
261
649

519
259
475

594
423
877

453
408
774

1,372
2,334
1,188
1,894
6,789

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

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

1,791
e/2,000

1,527
1,927
1,911
1,792
7,158

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

2 / Total hevf c a p i t a l i s s u e s excluding o f f e r i n g s of sales and personal finance
companies.
e / Estimated.
•
.
Note.—Details may not add to t o t a l s due t o rounding.




II.Hi

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

19%h - June
July
August
September
October.
November
December
1955 - January
February
March
April
May
June

Corporate

>-

State and
|
local governmentj
603
92
86
k55
388
268
689
3kl
107
337
238
152
Jj.09

350
111
75
36k

to

0
121
iia
.63
750
175
183
182

other 2//
-

—
—
—
—
30
32
—
15
—
.—

.Large Individual Issues Offered July 1 through 15
Issuer

Type 3/

Coupon
Amount
(millions
r a t e or
Offering
Maturity net i n t e r - yield Rating
of
dollars)
est cost

CORPORATE
I l l i n o i s Bell Tel. Co.
1st mtg. bds.
Texas Eastern Transmission Rfd. stock

30 oO
16.0

1995

3 iA

< 3.17

Aaa

STATE AMD LOCAL GOVERNMENT
Tulsa, Oklahoma
Alabama Highway Authority
Louisville, Kentucky
Pierce Go., Washington,
Tacoma School D i s t r i c t
OTHER
None




G.O.
Rev.
Rev.

$.u
15.0
8.0

1958-80
1957-75
1960-81;

2.67
2.73
2.bk

1.80-3.05
1.60-2.80
1.75-2060

A
A :
Aaa

G.O.

8.3

1957-75

2.59

1.60-2.85

A

E-2
1/ Includes corporate and other security offerings of 1£ million dollars and over5 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 s e c u r i t i e s , 0.0.
denotes general obligation; Rev,, revenue bonds; G.R,, general obligations additionally secured by f a c i l i t i e s revenues; and, L,L.,
limited l i a b i l i t y obligations secured by pledge of designated revenues.




H.lii

Exhibit F

Forthcoming large Public Security Offerings for New Capital
(Other than U. S. Treasury) 3/
Expected Proceeds from Forthcoming Large Issues
Date of
computation
1954 - June 30
July 30
Aug. 31
Sept. 30
Oct. 29
Nov. 30
Dec. 31
1955 - Jan. 31
Feb. 28
Mar. 31
Apr. 29
May 31
June 30

During month following
date shovm
Corporate State and Other 2/
local govt.
336
100
334
3h3
15
94
184
16
710
211
425
160
67

-

86
54
300
383
436
661
567
682
524
208
116
339
344

30
•

Subsequent t o
date shown
an
Corporate State and
? Other ?J
local govt,
-f
532
303
608
414
135
246
216
422
1,395
922
1,141
850
830

1,524
1,553
1,876
2,158
1,957
2,682
2,144
1,961
1,978
2,009
1,917
1,861
1,845

30
30
35

Forthcoming Large Offerings, a s of July 15
Type

Amount
(millions• Approximate date
of offering
I of dollars)

CORPORATE
Pacific Finance
•^Container Corporation of America
American Natural Gas
Consumer Power
Goodyear Tire and Rubber
Western Union Telegraph
Pacific Telephone and Telegraph.
American Telephone and Telegraph
Southern California Gas
Freedom Insurance Company

Deb.
SF deb.
Common stock
Common stock
Common stock
Common stock
Deb.
Conv. deb. •
Bonds
Common stock

20.0
35.0
37.0
16.9
45.6
25.0
67.0
650.9

L.L.

52.0
121.5
25.3
25.0
5.0

40.0
22.0

July 20
July 27
August 2
August 5
August 8
August 8
August 16
1955
1955
1955

STATE AND LOCAL GOVERNMENT
State of Ohio
Public Housing Authorities
Chicago, I l l i n o i s
Los Angeles, California
Norfolk, Virginia




G.O.
n.a.
G.O.

July
July
.July
July
July

20
20
26
26
26

H.llt

F-2
Forthcoming Large Offerings, as of July 15 (Cont'd)
Issuer

Type.

Amount
(millions Approximate date
of offering
of dollars)

STATE AND LCCAL GOVERNMENT (Cont'd)
Denver, Colorado
•Calcasieu Parish, Louisiana
Los Angeles, California
Los Angeles, California
Connecticut Expressway
Inter-American Center Auth., Fla.
Michigan Turnpike Authority
State of Louisiana
I l l i n o i s Turnpike Authority
Texas Turnpike Company
Springfield, I l l i n o i s
Allegheny County, Pennsylvania,
' Sanitary Authority
;
California Toll Bridge Authority
Jersey City Sewerage Auth., N . J .
North Carolina Turnpike Authority

"

G.O.
n.a.
n.a.
n.a.
Rev.
Rev.
Rev.
Rev.
Rev.
Rev.
Rev.
Rev.
n.a.

.12,0
8.2
12.0
18,0
100.0
60.0
186.0
80.0
390.0 '
12*0.0
9.0

July 28
August 3
August 23
September 21
Summer.
1955
1955
1955
1955
1955
1955

8^.0
235 oO
16.0
200.0 '

1955
1955
1955
1955

OTHER
None
and local government issues of 5 million- and over.
2/ Includes f o r e i g i government and International Bank for Reconstruction and
Development i s s u e s , n.a.—Not available.
*—Included in t a b l e - f o r f i r s t time.