Full text of H.16 Capital Market Developments : July 25, 1957

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7/-f 6
Not f o r P u b l i c a t i o n

DECONTROLLED AFTER SIX MONTHS

H.lh

J u l y 25, 1957
CAPITAL MA.RKET DEVELOPMENTS

-The volume of l a r g e p u b l i c l y o f f e r e d s e c u r i t i e s was moderate
during t h e week ending July 19, but i s expected td be much l a r g e r t h i s
week, p r a t i c u l a r l y f o r corporate s e c u r i t i e s » Last week, l a r g e i s s u e s
solci by corporations t o t a l e d $81 mil l i o n and o f f e r i n g s of S t a t e and
l o c a l governments amounted t o $6? m i l l i o n . The c o r p o r a t e t o t a l does
not include t h e $100 m i l l i o n GIT F i n a n c i a l C o r p o r a t i o n ' s s e r i e s debent u r e i s s u e , which i s being o f f e r e d on a continuous b a s i s from J u l y 15,
1957 t o A p r i l 1959 u n l e s s s o l d e a r l i e r e Corporate i s s u e s a r e expected
to t o t a l $255 m i l l i o n t h i s week, including t h e e x p i r a t i o n of s u b s c r i p t i o n r i g h t s f o r F i r s t National City Bank of New York's $120 m i l l i o n
c a p i t a l stock i s sue e S t a t e and l o c a l government i s s u e s t o t a l i n g $88
m i l l i o n a r e a l s o scheduled f o r s a l e .
Bond y i e l d s - Bond y i e l d s increased l a s t week f o r a l l types
of outstanding bonds, except those f o r Baa~rated c o r p o r a t e bonds,
which remained s t a b l e „ Daily f i g u r e s through Tuesday of t h i s week
i n d i c a t e an i n c r e a s e i n corporate bond y i e l d s
f o r both t h e Aaa's
and Baa's
A new Aa-rated, 32-year f i r s t and refunding mortgage p u b l i c
u t i l i t y i s s u e was o f f e r e d t o i n v e s t o r s t h i s week t o y i e l d Ho 95 p e r
c e n t ~ 30 b a s i s p o i n t s above the y i e l d f o r a s i m i l a r l y r a t e d 30y e a r f i r s t mortgage bond i s s u e o f f e r e d l a s t week. I t should be noted
t h a t t h e i s s u e sold t h i s week c a r r i e d a 5 - y e a r , n o - c a l l provision
whereas t h e o t h e r i s s u e had no such r e s t r i c t i o n 0
Stock p r i c e s - The SEC. index of 265 common stock declined
3o3 p o i n t s l a s t week, c l o s i n g a t 291=3 on July 19» Daily indexes
i n d i c a t e l i t t l e change i n p r i c e s on balance during the f i r s t t h r e e
days of t h i s week.
More d e t a i l e d information concerning recent c a p i t a l market
• developments i s presented i n the a t t a c h e d exhibits»

Business Finance and C a p i t a l Markets S e c t i o n ,
Division of Research and S t a t i s t i c s ,
Board of Governors of t h e Federal Reserve System.




HIGH-GRADE

BOND

YIELDS

\ U. S. GOVERNMENT

1954

1953

long-term iJ
Date

Corporate

Old s e r i e s

Hew s e r i e s

Spread between
U. S. Govt,
S t a t e and
l o c a l govt. (old s e r i e s ) and
Corporate 1 S t a t e and
Aaa j /
Aaa
( l o c a l Aaa

(Per cent)
1953 - High
Low
195k - High
Low
1955 - High
Low
1956 - High
1957 - High
June' 21
June 28
Julyl,

3.U2(6/19)

3.15 (6/6)
2.78 (12/26)
2.7k (1/9)
2.hU(8/7)
2.91 (8/5)
2.62 (1/7)
3.19 (12/21)
2.80 (2/17)
3.70 (6/21)
3.15 (2/8)

3.9k
3.97
in 00
3.97
3.98

3.70
3.68
3.61
3.58
3.63

2.99
3.09
2.85
3.17
2.91
3.79
3.07
LOO
3.66

(1/9)
(1/8)
(V23)
(12/23)
(1/7)
(12/28)
(3/2)
(7/5)
(V12)

1 / Weekly average of d a i l y f i g u r e s .

n.a.

2.73
1*98
2.21
n.a.
1.90
3.03 (8/5) 2.3U
2.89 (6/10) 2.05
3.39 (12/28)3.05
2.92 (2/3) 2.17
3.62 (6/21), 3.23
3.22 (2/8) 2.76
3.62
3.60
. 3.56
3.56
3.57

3.23
3.23
3.20
3.11
3.1U

(6/25)
(1/8).
(6/10)
(9/2)
(9/8)
(5/26)
(12/27)
(2/23)
(6/27)
(2/21)

.38
.19
.i»3
.32
•3U
.13
.Wi
.13
.51»
,24

.81*
.30
.61
.29
.70
•5U
.68
.32
•1*9
.26

.21*
.29
.39
.39
.35

.U7
.1*5, ,
.a
.1*7
.1*9

Average term of bonds included i a 25-26

2 / Weekly averages of daily f i g u r e s . The old s e r i e s includes f u l l y taxable,
marketable 2 1/2 per cent bonds due or f i r s t c a l l a b l e a f t e r 12 years through
September 1955> and those due or c a l l a b l e in 10-12 years thereafter; the average
term to f i r s t c a l l of the bonds included declined from 1U years in early 1953 to
11 1/2 years in early 1956. The new s e r i e s i s comprised of the 3 per cent bond
of 1995 and the 3 1/L per cent bond of 1978-83.
'
y Thursday f i g u r e s . Only general obligation bonds are included; average .
term i s 20 years.
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
for different series.




EXHIBIT B

LOWER— GRADE BOND YIELDS

W

V'!

Corporate
Baa 1 /

Date

S t a t e and
local govt,
rev. y

S t a t e and
local govt.
Baa 2/
(Per cent)

1953 - High
195U - H i g h
1955 - High
1956 - High
1957 - High

June
June
July
Jjily
July

3.89 (9/18)
3.50 (1/2)
3.7k (1/8)
3.Wt ( 1 2 / 3 1 )
3.63 ( 1 2 / 3 0 )
3.15 (1/1W
U. l a ( 1 2 / 2 8 )
<3.58 (3/9)^
lt.72 ( 7 / 1 9 )
h.b2. ( V 1 2 )

21
28
5
12
19

U.66
U.68
U.71
U.72
U.72

3.79
2.96
3.32
2.93
3.26
3.02
k.22
3,20
U.35
3.90
U.33
it. 3 5
4.33

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

3.27
2.71
3.00
2.72
2.99
2.76
3.98
2.89
3.98
3.70
V

(6/26)
(1/2)
(1/1)
(8/13)
(12/30)
(1/7)
(12/28)
(2/2U)
(1/ii)
(2/22)
'

h.2h
U.28

1 / W e e k l y a v e r a g e o f d a i l y f i g u r e s . A v e r a g e terra o f bonds
included i s 25-26 years.
2 / Thursday f i g u r e s .
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 ; a v e r a g e term i s 20 y e a r s .
3 / Friday f i g u r e s .
Average r a t i n g of bonds i n c l u d e d i s
b e t w e e n Baa a n d A j a v e r a g e t e r m i s 2 0 y e a r s .
h / S e r i e s d i s c o n t i n u e d , a s o f March 1 5 .
N o t e . — H i g h s a n d l o w s a r e f o r i n d i v i d u a l s e r i e s a n d may
b e on d i f f e r e n t d a t e s f o r d i f f e r e n t s e r i e s .




STOCK MARKET

:

i

t

/
r

"i

1
4

T )
A

r
2800

1

1

r :

«ic

r

\A

/"I

; J - 1

T

.

.

*

1
U T L

Date

Stock p r i c e
index 1 /

Trading
volume 2/
(millions
of shares)

Common

Stock market c u s t i imer c r e d i t
Customers'
debit bal- loans to
ances h /
"others" £ /

yields j /
(per cent

Total

" 5.88
5.15
5.1*9
lj.09
li.23
3.59
1*.13
3.65
• 1*.23 .
3.67

2,1*1*5
2,055
3,1*36
2,105
k,030
3,537
l*,0l*7
3,9U*
1,031
3,832

1,665
1,3H
2,388
1,653
2,805
2,517
2,823
2,71*0
2,887
1,713

780
661*
1,01*8
71*6
1,21*1
1,018
1,267
1,155
1,163
1,117

3.82 .
3.79
3.73
3.67
3.69

3,921*

a,031

2,791*
2,887
n.a.

n.a.

1,130
1,11*1*
r / 1.158
1,135

n.a.

( M i l l i o n s of d o l l a r s )
1953 - High
1951* - High
1955 - High
1956 - High
Low
1957 - High
Low
May
July 5
July 12
J u l y 19

167.1
1M.0
221.lt
156.5
270.7
217.a
295.5
257.U
29L.6
260.3

(1/2)
(9/18)
(12/31)
(1/6)
(12/30)
(i/iit)
(8/3)
(1/20)
(7/12)
(2/8)

38L. 2
286.2
291.8
291.6
291".3

2.5
0.9
3.7
l.L

I4.6

1.5
3.1
1.5
2.7
1.6 ,
2.1*
2.2
2.3
2.6
2.2

n.a.—Not available.
v j Revised.
1 / SEC i n d e x o f 2 6 5 common s t o c k s , w e e k l y c l o s i n g p r i c e s , 1 9 3 9 - 1 0 0 ; c o n v e r t e d
t o 19H7-U9-100 by F e d e r a l R e s e r v e .
The c o n v e r s i o n f a c t o r i s 1 2 3 . 9 1 .
2 / A v e r a g e s of d a i l y t r a d i n g volume on t h e "ew Y o i t S t o c k Exchange.
3 / Moody's 1 2 5 i n d u s t r i a l s t o c k s ; w e e k l y d a t a b a s e d on F r i d a y .
u/ End o f month f i g u r e s for'member f i r m s o f t h e New York Stock Exchange w h i c h
c a r r y margin a c c o u n t s ; e x c l u d e s b a l a n c e s s e c u r e d by U. S . Government o b l i g a t i o n s .
5 / Wednesday f i g u r e s f o r w e e k l y r e p o r t i n g meuber b a n k s . E x c l u d e s l o a n s f o r
p u r c h a s i n g o r c a r r y i n g U. S . Government s e c u r i t i e s a t banks i n New York and C h i c a g o .
Weekly r e p o r t i n g b a n k s a c c o u n t f o r about 72 p e r c e n t o f l o a n s t o o t h e r s . N o t e . — H i g h s and l o w s a r e 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 D

H.l4

Corporate and S t a t e and Local Government
S e c u r i t y O f f e r i n g s and Placements
( I n m i l l i o n s of d o l l a r s )

1957
January
February
March
April
May
June
July
August
September

1,063
1,071
e/950
5/750
e/1,350
e/900

October
November
December
1st quarter
2nd q u a r t e r
3rd,quarter
4th q u a r t e r

3,479
e/3,050

1st half
Three q u a r t e r s
Year

e/6,529

1

Corporate
1956
I

New C a p i t a l

S t a t e and l o c a l
1
1956
I

1955

1957

535
1:07
1,223

685
566
1*99

696
390

S3,
312
538

818
1,1246
8U1

478
886
687

762
e/550
|/380

378
1*90
735

427
350
642

1,063
654
838".

644
670

eAoo

376
199
333

470
249
4o6

745
l,089i/
1,088

1,1621/
632
900

645
311
426

919
658
408

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

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

1,750
^e/1,692

1,1*90
1,603
908
1,382

1,385
1,418
1,124
1,984

e/3,442

3,093
4,001 .
5,383

2,803
3,927
5,911

573
712
817 :

1,907
7,163
10,381

a , 216
6,127
8,821

-

to

1955

Excluding f i n a n c e companies
1st
2nd
3rd
Uth

quarter
quarter
quarter
quarter

3,268
e/2,800

Year -

1,617
2,541
2,21*6
2,826

1,727
1,870l,Wi
2,551

9,259

7,595

e / Estimated.
1 / I n c l u d e s $637.2 m i l l i o n AT&T c o n v e r t i b l e debenture i s s u e s .
2 / I n c l u d e s $571.5 m i l l i o n AT&T common stock i s s u e s .
3 / T o t a l 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 f i n a n c e
companies.
N o t e . — D e t a i l s may n o t add t o t o t a l s due t o rounding.




H.lU

Exhibit E
Large P u b l i c S e c u r i t y I s s u e s f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Proceeds of Large I s s u e s O f f e r e d
( M i l l i o n s of d o l l a r s )

Month

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

Corporate

S t a t e and
l o c a l government

185
592
217
558

J

386
701
1*30
567
671
788
177
329
877

O t h e r 2j

20

163
161*
35
184
383
135
201

37
35
100
50

3 %

306
19k
h99
21*8
176

125
25

39

Large Individual Issues Offered July 1 through 19

Issuer

Type ] /

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

CORPORATE
Southern C a l i f . Edison Co, 1 s t r e f . mtg. bds.
Rochester Gas & E l e c . Co.
1 s t mtg. bds.
Timken R o l l e r Bearing Co.
Common s t k .
C e n t r a l I l l i n o i s Light Co. 1 s t mtg. b d s .
Wisconsin Telephone Co.
Deb.
Washington Water Power Co. 1 s t mtg. b d s .
West Penn Power Co.
1 s t mtg. b d s .
A s s o c i a t e s Investment Co.
Deb.
Texas E l e c t r i c S e r v i c e Co. 1 s t mtg. b d s .
J e r s e y C e n t r a l Pwr. &Lt. Co. 1 s t mtg. b d s .
I n l a n d S t e e l Co.
1 s t mtg. b d s .

#



UO.O
1982
15.0
1987
19.U
15.0 " 1987
30.0
1992
30.0
1987
20.0
1987
20.0
1977
16.0
1987
15.0
1987
50.0
1987

h 3/h
17/8

h.70
k. 80

Aa
A

h
k
L
h
5
h
5
h

1.57
h.h3
li.88
ii.75
5.75
h.6$
It. 90
U.38

Aa
Aaa
A
Aa

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

Aa
A
Aa

H.lU
Large I n d i v i d u a l I s s u e s O f f e r e d J u l y 1 through 19 (Cont'd)

Issuer

Type j /

Coupon
Amount
(millions Maturity
net interof
dollars)
est cost

Offering
Rating
yield

STATE AND,LOCAL GOVERNMENT
S a l t R i v e r A g r i c . Impr. &
G.O.
Power D i s t . , Arizona
G.O.
Fresno U.S.D., C a l i f o r n i a
Metro. Wtr. D i s t . of So.
Rev.
California
. P o r t of New York Auth.
Airport rev.
G.O.
Cook Co . S. D. lb, 205, 111.
G.O.
P h i l a d e l p h i a S. D., Penna.
Highway r e v .
S t a t e of Minnesota
G.O.
A t l a n t a , Georgia
G.O.
S t . Louis Co., M i s s o u r i
G.O.
S t a t e of Louisiana
G.O.
W e s t p o r t , Connecticut

5.0
7.0

1960-87
1960-77

15.0
28.8
5.5

1958-69
1958-75
1959-76
1959-82
1960-73
1958-86
1958-77
196U-66
. 1958-77

12.0
12.0
15.5

6.8

10.0

$.k

-li.29
3.31

3.20-1.25
2.70-3.35

3.20
3.66

3.50

2 , 5 0 - 3 . 2 0 Aa
2;70-3.70 A
3.10-1*. UO Baa
2.60-3.60 A
2.1*0-2.90 Aa
2 . 1 0 - 3 . 1 5 Aa
2.30-3.30, Aa
3.10-3.20V—
2 . 5 0 - 3 . 5 0 Aa

5 1/h

5.70

ii.U9
3.55
2.89
3.39

3.28
3.20

A
Aa

OTHER
M o n t r e a l , Quebec

S . F . deb.

25.0

1977

1 / I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and o v e r ;
vate 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 m i l l i o n and o v e r .
2/ I n c l u d e s 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 R e c o n s t r u c t i o n and
Development i s s u e s .
3 / I n t h e c a s e 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 g e n e r a l
o b l i g a t i o n ; Rev., revenue bonds; G.R., g e n e r a l o b l i g a t i o n s a d d i t i o n a l l y secured by
f a c i l i t i e s r e v e n u e s ; L . L . , l i m i t e d l i a b i l i t y o b l i g a t i o n s s e c u r e d by pledge of
d e s i g n a t e d revenues.
h / Part not reoffer-ed.

"




H.1U

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

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

•

During month following
Subsequent to
date shown
date shown
State
and
State and Other 2/
Corporate
Other 2/ Corporate
l o c a l govt.
l o c a l govt.

.

437
21*7
369
315
683
1*36
1*76
591
7U0
i*6l
187
•525
370

81
131
359
162
1*8
280
153 .
153
290
179
97
172

37

23
100
35
25
25
25

567
1,096
1,202
1,009
990
1*81
796
966
795
I486
. 258
525
1*15

690
726
958
1,197
955
979
763
61*8
631
862
396
388
1*98

37

23
100
35
25
25
25

Forthcoming Large Offerings, as of July 19
Type

Amount
(millions Approximate date
of o f f e r i n g
of dollars)

CORPORATE
F i r s t National City Bank of New York
P a c i f i c Gas and E l e c t r i c Company
Tennessee Gas Transmission Company
Sears Roebuck Acceptance Corp.
Minneapolis-Honeywell Regulator Co.
Northern States Power Company
*J. Ray McDermott and Co.
*American Telephone & Telegraph Co.
Public Service E l e c t r i c & Gas Co.

#



Capital s t k .
1st & ref. mtg. bds.
Deb.
Deb.
Common s t k .
1 s t mtg. bds.
Conv. sub. deb.
Deb.
Pfd. s t k .

120.0
60.0
25.0
50.0
28,2
18.0
20.3
250.0
25.0

July 22
( r i g h t s expire)
July 2h
July 25
July 26
August 1
( r i g h t s expire)
August. Ik
August 20
( r i g h t s expire)
October 29
1957

-ti.lU

F-2
Forthcoming Large O f f e r i n g s , as of July 19 (Cont'd)
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
Rev.
Georgia Rural Roads AuthorityWater r e v .
Milwaukee, Wisconsin
East Baton Rouge Par. Sch. D i s t . , La.
G.O.
G.0 #i
S t a t e of C a l i f o r n i a
G.O.
S t a t e of Oregon
G.O.
ttState of New York
G.O.
Phoenix, Arizona
Rev.
Kansas Turnpike Authority
G.O.
^Sacramento Unif. Sch. D i s t . , C a l i f .
G.O.
. Los Angeles City Sch. D i s t s . , C a l i f .
Highway r e v .
S t a t e of Ohio
San Diego Unified Sch. D i s t . , C a l i f .
G.O.
S t a t e of Texas
G.O.
J a c k s o n v i l l e , Florida
U t i l i t i e s rev.
University System Bldg. Auth., Ga.
Rev.
Rev.
Pennsylvania Turnpike Commission
Inter-American Center Auth., F l a .
Rev.
New York S t a t e Thruway Authority
G.O.
Rev.
Oklahoma Turnpike Authority

17.5
10.0
10.0
50.0
15.0
27.9
6.0
18.0
7.0
hh.O
31.0
10.0
12.5
30.0
12.0
62.0
20.0
50.0
65.0

July 23
July 23
July 23
July 2h
J u l y 29
J u l y 30
July 31
Aug. 1
Aug. 7
Aug. 13
Sept. 10
Oct. 15
1957
1957
1957
1957'
1957
1957
1957

OTHER
None
*—Included i n t a b l e f o r f i r s t time.
1 / Includes corporate and o t h e r i s s u e s of $15 m i l l i o n and over; State 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 forr reasons other than s a l e of i s s u e : None.




H.Ik
je

.

Exhibit G
• Yields on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and ,A y

.

Date
1952 - 1956
High
Low
1957 - January 8
16
18
22
2k
February 5
19
27
March 6
12
. 20
29
April 3
10
^
12
™
May-10
15
16
21
23
29
June 5
7
11
July 3
10
11
16
17

Aa-rated o f f e r i n g y i e l d s
A-rated o f f e r i n g y i e l d s
Amount above
Amount above
Actual
. Actual
seasoned y i e l d s
seasoned y i e l d s
(per cent) ( b a s i s p o i n t s ) (per cent) ( b a s i s p o i n t s )
L30(12/12/56)
2.93(3/31/54)

.

62
- 3

h.50

62

U.h3

56

k.ho
h.2 9
U. 25
k.22

53
h5
I46
U3

1.29

50

4.50
14.38 2 /

65
SI

I4.63

75

, U.78

87

14.57
1.77
14.65

U8
68
56.

1.58(12/6/56)
3.00(3/17/51)

70
-15

I4.67

70

14.56

57

ii.ia
L.58
li .55
14.1,5

35
52
149
143

I4.60
I4.50
14.53
14.53 2 /
14.70

59
14 9
52
52
69

5.00
5.25

98
123

5.10

106

I4.80 2 /
' I4.88 2 /

6I4
7U

I4.90

71

•«—Single o b s e r v a t i o n , not an average.
1 / Covers only 30-year f i r s t mortgage bonds, a s r e p o r t e d i n Moody's Bond
Survey. Except where i n d i c a t e d , t h e a c t u a l y i e l d f i g u r e and t h e amount above
seasoned y i e l d s a r e averages of o f f e r i n g s during t h e i n d i c a t e d p e r i o d and of t h e
d i f f e r e n c e s between t h e s e new o f f e r i n g y i e l d s and y i e l d s on seasoned i s s u e s of
s i m i l a r q u a l i t y f o r the same day. Average m a t u r i t y f o r t h e seasoned i s s u e s v a r i e s from 26 t o 28 y e a r s .
2 / Provides f o r a 5 - y e a r p e r i o d during which i s s u e may not be c a l l e d f o r
r e f u n d i n g a t a lower coupon r a t e . Other i s s u e s have no such p r o v i s i o n .

#