Full text of H.16 Capital Market Developments : July 7, 1955

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DECONTROLLED AFTER SIX M0NTwtJ

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July 7, 1955

CAPITAL L-ARKET DEVELORIEITS
1
New c a p i t a l volume small - S t a t e and l o c a l government
security i s s u e s with proceeds of 66 million d o l l a r s and one 2£ m i l l i o n d o l l a r construction company offering: made up the t o t a l of l a r g e
i s s u e s publicly f l o a t e d f o r new c a p i t a l during the week ending July 1„
Only one l a r g e issue i s scheduled f o r o f f e r i n g t h i s week—a > million
dollar State and l o c a l government i s sue•

Bond ]n.elds - Yields cn U. S. Government long-term obligations increased t h r e e basis points ard State and l o c a l government Aaa
bond y i e l d s rose f i v e b a s i s points l a s t week. S t a t e and l o c a l government Baa and revenue bond y i e l d s rose one and f o u r basis points
respectively.
Corporate Aaa and Baa y i e l d s remained steady. No f u r t h e r
change was indicated so f a r t h i s week i n t h e daily f i g u r e s f o r corporate and Treasury bond y i e l d s .
The l a t e s t increase in State and l o c a l y i e l d s appears t o
be the r e s u l t of the e f f o r t s of dealers t o reduce t h e i r large inven- ,
t o r i e s by price, cutting i n the fade of ' a heavy schedule of new i s s u e s .
Each of t h e bond y i e l d s e r i e s mentioned above i s c u r r e n t l y
a t the highest l e v e l of the y e a r . The present- levels of the S t a t e
and l o c a l bonds were previously reached in r n i d - 1 9 ^ . In t h e case
of corporate Aaa and Baa bonds, y i e l d s have not been t h i s high since
January and Larch 195h r e s p e c t i v e l y . Treasury y i e l d s were higher
l a s t week than in any week since December
153>3Stock prices increase - The SEC index of 26£ common stocks
r o s e again l a s t week t o a new high of 2S3 =6 in a trading volume
averaging 2.3 million shares a day. Daily f i g u r e s i n d i c a t e sharp
increases in p r i c e s on Tuesday and Wednesday of t h i s week.
liore d e t a i l e d information concerning recent c a p i t a l market developments will be found i n the attached e x h i b i t s .

Business Finance and Capital Larke.ts Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




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H I G H - G R A D E BOND YIELDS
Weekly

CORPORATE A e

U. S. GOVERNMENT

STATE A N D LOCAL
GOVERNMENT A n a

.

Corporate
Aaa 1 /

U. 8. Govt,
long-term 2 /

State and local
govt., Aaa 3/

Spread between
U. S. Govt and
Corporate(state and
Aaa
local laa

(Per cent)
1952 - High.
low
1953 - High
Low
195U - High
Low
1955 - High
Low |
June
June
June
June
July

3.03
2.91
3.U2
2.99
3.09
2.85
3.05
2.91

OA)

(2/15)
(6/19)
(1/9)
(1/8)
(U/23)
(7/1)
(1/7)

2.79
2.56
3.15
2.78
2.7k
2.kk
2.81
2.62

(12/27)
(5A7)
(6/6)
(12/26)
(1/9)
(8/7)
(7/1)
(1/7)

2.00 (10/23)
1.65(5/1)
2.73 (6/25)
1.98 (1/8)
2.21 (6/10)
1.90 (9/2)
2.1k (6/30)
2.05 (5/26)

.37
.19
.38
.19
.k3
.32
.3k
•2k

1.02
.71
.8k
.30
.61
.29
.70
.5k

3
10
17
2k
1

1 3.05
2.06
2.7k
.68
.31
1 3.0k
2.7k
2.07
.30
.67
1 3.05
2.08
2.75
.30
.67
| 3.05
2.78
2.09
.27
.69
| 3.05
2.81
2.1k '
.2k .
.67
I
1/ Weekly average of daily figures.Average term of bonds included i s 25-26
years.
•s.
2/ Weekly average of daily f i b r e s ; old series. Average term to f i r s t c a l l
of bonds included i s 13-lk years.
3 / Thursday figures. Only .general obligation bonds are included; average
term Ts 20 years.
Note.—Highs and lows are for individual series and may be on different dates
for different series.




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EXHIBIT B

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

"""

Per cent p e r a n n u m

STATE

1953

Corporate
Baa 1 /

1954

1

|

State and
local govt.
Baa 2/

State and
local govt,
rev. 3/

(Per cent)
195>2 - High
Low
1953 - High
Low
195k - High
Low
1955 - High
Low
June
June
June
June
July

3
10
17
2U
1

3.63
3.U8
3.89
3.50
3.7U
3.UU
3.51
3.U5
, 3.5b
1
3.50
3.51
3.51
3.51

OA)

(5/16)
(9/18)
(1/2)
(1/8)
(12/31
(7/1)
(1M)

2.98
2.U8
3.79
2.96
3.32
2.93
3.11
3.02
3.06
3.06
3.07
3.10
3.11

(10/23
(U/17)
(6/25)
(1/8)
(1/7)
(8/5)
(6/30)
(1/6)

2.69
2.27
3,27
2.71
3.00
2.72
2.8k
2.76

(12A9)
(U/25)
(6/26)
(1/2)
(1A)
(8/13)
(7/1)
(1/7)

2.79
2.79
2.80
2.80
2.8U

1/ Weekly average of daily figures. Average term of bonds
included i s 2$-26 years.
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2/ Thursday figures. Only general obligation bonds are
inclucfed j average term i s 20 years.
3/ Friday figures. Average rating of bonds included i s
between Baa and Aj average term i s 20 years.
Note.—Highs and lows are for individual series and may
for different series.

be on different dates


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STOCK MARKET

Stock price
index 1 /
~

I Trading I Connon I
volume 2 / I stock
I
ICustomers1I
Bank
'
I(millions (yields 3 /
Total (debit b a l - loans to
I of shares) I (per cent) I
| ances h / I "others" 5/
(Millions of dollars.)

1952 - High
Low
1953 - High
Low
195U - High
Low
1955 - High
Low
May
June
June 2U
July 1

165.3
151.7
167.1
lhU.O
221. U
156.5
253.6
217.U

(12/26)
(10/2U)
(1/2)
(9/18)
(12/31)
(1/6)
(7/1)
(1/Hi)

i 233.3
! 2UU.5
2U7.U
251.1
253.6

2.0
0.9
2.5
0.9
3.7
1.U
U.6
2.0

5.77
5.13
5.75
5.15
5.33
U. 20
U. 22
U.12

1,986
1,80k
2,UU5
2,055'
3,U36
2,U05
3,787
3,537

1,332
l,2lil
1,665
1,31U
2,388
1,653
2,70U
2,517

2.2 .
2.7
2.7
2.7.
2.3

U.Uv

3,787

2,681

656
552
780
66U
1,0U8
7U6
1,163
1,018
1,103
1,153
1,163

1/ SEC index of 265 common stocks, weekly closing p r i c e s , 1939-100; converted
to 19E7-U9*100 by Federal Reserve. The conversion f a c t o r i s 123.91.
2 / Averages of daily trading volume on the New York Stock Exchange.
3 / Moody's 200 common stocks; end of month f i g u r e s .
%J End of month figures f o r member firms of the New York Stock Exchange which
carry margin accounts; c r e d i t extended on money borrowed f o r carrying U. S. Government obligations.
5/ Wednesday figures f o r weekly reporting member banks. Excludes a l l loans
for purchasing or carrying U. S. Governments f o r 1952; since 1953 only these loans
at banks in New York and Chicago are excluded. Weekly reporting banks account f o r
about 72 per cent of loans to others.
n.a.—Not available.
^
Note.—Kighs 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 d i f f e r e n t s e r i e s .




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Exhibit D
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
(In millions of d o l l a r s )

1955

Corporate
1
1952*
1

January
February
•March.

546
436 •
1,261

426
635

April
Hay
June

e/500
e/900
e/600

July
August
September

e/500

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

2,243
e/2,000

New c a p i t a l
1953

1955

S t a t e and l o c a l
1
1954
1

1953
390
360
426

623
#3
#6

535
312
538

396
411
565

497
65 6
842

779
675
1,123

427
e/350
^630

734
748
853

329
649
434

909
335
747

483
325
753

e/600

279
261
649.

519
259
475 '

594
423
877

453
408
774

1,372
2,334
1,188
1,894
6,7#

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

.

1,003
290
6^

577
42? 1 /
1,438 y

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

1,912
2,578

1,385
e/'l,405

8,495

Excluding f i n a n c e companies 2 /
1st quarter
2nd q u a r t e r
3rd q u a r t e r
4th quarter
Year

1,791
e/l,925

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

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

• 2/ Total net? 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 p e r s o n a l f i n a n c e
companies.
e / Estimated.
/ Note.—Details may not add t o t o t a l s due t o rounding.




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Exhibit E

Large Public S e c u r i t y I s s u e s f o r ' Nevr C a p i t a l
(Other than U. S. Treasury) 1 /
Proceeds of Largo I s s u e s Offered
(l,&llions of d o i r a r s )

Month

—1
1 S t a t e and
j l o c a l government 1 - : . Other• 2-/

• Corporate

195U - June
July
August
September
October
November
December
1 9 # - January
February
March
April
May
June

1

1

j
j

603
'92
: 86
U55
338
268
689
3U1
107
337
2#
152
U09

3#
hll
75
36U
133
0
121
lUl
63
750
175
L83
182

30
35
15

Large I n d i v i d u a l I s s u e s Offered During.June

Issuer

Type 3 /

!
.
. Coupon t
- Amount 1
(millions Maturity • r a t e or {Offering
n e t i n t e r - j y i e l d jRating
of
e s t cost
dollars)

CORPORATE
Virginia E l e c t r i c and
Pov;er Company
Southern C a l i f o r n i a
Edison
Southern Nevr England
Telephone & Telegraph
Oklahoma Gas & E l e c t r i c
Consolidated Natural Gas
Baltimore Gas & E l e c t r i c
People's Gas Light & Coke
Merritt-Chapman and
Scott Corp.

1st & ref. bds.

25.0

1985

3.25

3.20

Aa

Conv. deb.

41.0

• 1970

3.25

3.25

A

Deb.
1st mtg. bds.
Common s t k .
Common s t k .
Common s t k .

20.0
15.0
22.9
17. h
15.7

1989
1985

3,25
3.25

3. 20
3.20

Aa
Aa

Conv. deb.

25.0

1975

li.50

U.50

Ba




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E-2

Large I n d i v i d u a l Issues Offered During June (Cont'd)

Issuer

Type 3 /

j Amount j
(milUons
i dollars)i

turit

! Coupon
y ! r a t e or [ o f f e r i n g Rating
net i n t e r -• yield
I est cost

STATE AMD LOCAL GOVERNMENT
Houston, Texas
Nevr York City Housing
Authority
S t a t e of North Carolina
Baltimore, Maryland
Galveston Co. Navigation
D i s t r i c t , Texas
Minneapolis, Minnesota
F l o r i d a Turnpike Auth.
Texas Turnpike Authority
Kansas City, Kansas
Prince George»s Co., Md.
Dade County Port Auth.,
Florida
Cleveland, Ohio
Tacoma, Washington
S t a t e of Connecticut
Pennsylvania General .
S t a t e Authority
D a l l a s , Texas .
Maryland S t a t e Roads
Commission
Nassau County, New York
Dayton,. Ohio, School Dist.

.A

G.O.

12. 5

1956-80

2.L7.

1.20-2.65

G.R.
G.O.
G.O.

27.2
• 11,0
2U.7

1958-03
1957-75
1956-8U

3.01
1.96
2.15

1.75-2.78
1.20-2,05
1.05-2.30

A
Aa
Aa

G.O.
G.O.
Rev.
Rev.
Rev.
G.O.

6.0
5.2
7U.0
58.5
7.0
6.0

1957-91
1956-75
1995
1980-95
1956-70
1956-75

2.93

1.U0-3.00-'
1.15-2.10
3.25
2.80-2.90
1.15-2.10
1.25-3.05

A
Aa

3.32
2.93
2.06
2.77

Aa
Baa

Rev.
G. 0.
Rev.
G.O.

12.1
13.2
15.0
20.0

1979
1956-75
1959-89
1958-61

3,23
2, Oi*
3.02
1.62

3.15
1. 20-2.20
1.85-3.10
l.Uo-ic 63

Aa
Baa
Aaa

L.L.
G. 0.

5o.o
.10.0

1958-82
1956-75

" 2.70
2.UU

1.70-2.75
1:10-2.50

L.L.
G.O.
G.O.

25.0
19.2
12.0

1956-70
1956-85
1956-80

2. Si
2.78
2,37

1. 30-2. 50

l.UO-2.90
1. 20-2.50

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A
Aa .
A
Aa

OTHER
None
~
1 / Includes corporate and other 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 d o l l a r s and
over; S t a t e 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 £ m i l l i o n and over.
£ / Includes f o r e i g n government and I n t e r n a t i o n a l ^ank f o r Reconstruction and
Development i s s u e s .
3 / I n the case of S t a t e and l o c a l government s e c u r i t i e s , G.0. denotes general
o b l i g a t i o n ; Rev.,, revenue bonds; G.R., general 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 revenues; and, L.L., limited l i a b i l i t y o b l i g a t i o n s secured by pledge of
designated revenues.
h / Subject t o award.




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Exhibit F
Forthcoming Large Public Security Offerings f o r New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
During month following
date shown
S t a t e and Other 2 /
Corporate
l o c a l govt.

Date of
computation
19$k - 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

336
100
33U
3h3
15
9k
181
16
710
211
k#
160
67

•

86
SU
300
383
1*36
661
567
682
&k
208
116
#9
3a

__

30

Subsequent t o
date shorn
S t a t e and Other 2 /
Corporate
l o c a l govt.
532
303
608
klk
135
2k6
216
k22
1,395
922
1,32a850
830

1,524
1,553
1,876
2,158
1,957
2,682
2,1kk
1,961
1,978
2,009
1,917
1,861
1,815

30
30
35

Forthcoming Large Offerings, as of July 1
Issuer

Type

Amount
(millions Approximate date
of o f f e r i n g
of d o l l a r s )

CORPORATE
I l l i n o i s Bell Telephone
*Pacific Finance .
American Natural Gas
Goodyear Tire and Rubber
W e s t e r n Union Telegraph
American Telephone and Telegraph
Southern California Gas
Freedom Insurance Co,

1st mtg* bds
Deb.
Common stock
Common stock
Conrnon stock
Conv, deb.
Bonds
Common stock

30.0
20.0
37.0
50.0
25.0
650.9
liO.O
22.0

G .0.
G.R.
LoL.
L.L.

5.1
125.0
15.0
5.1

July 12
.July 20
' July 21
. August 8
• • August 8
1955
1955
1955

STATE AND LOCAL GOVERNMENT
Tulsa, Oklahoma
New York State Thruway
Alabama Highway Authority
Wayne County, Michigan




J ul y
July
July
July

6
12
12.
12

H.li+

F-2
Forthcoming Large O f f e r i n g s , as. of J u l y 1 ( C o n t ' d )
Issuer

Type

• Amount
Approximate d a t e
. (millions
of o f f e r i n g
of d o l l a r s )

STATE AND LOCAL GOVERNMENT ( C o n t ' d )
^ • L o u i s v i l l e , Kentucky
P i e r c e C o . , Wash., Tacoma Sell. D i s t ,
S t a t e of Ohio
P u b l i c Housing A u t h o r i t i e s
-^Chicago, I l l i n o i s
•x-Los Angeles, C a l i f o r n i a
-x-State of New Mexico
^Norfolk, Virginia
Denver, Colorado
C o n n e c t i c u t Expressway
I n t e r - A m e r i c a n Center A u t h . , F l a .
Michigan Turnpike A u t h o r i t y
S t a t e of Louisiana
I l l i n o i s - Turnpike AuthorityTexas Turnpike Company
Springfield, Illinois
Allegheny County, P e n n s y l v a n i a ,
Sanitary Authority
C a l i f o r n i a T o l l Bridge A u t h o r i t y
J e r s e y C i t y Sewerage A u t h . , H. J .
North C a r o l i n a Turnpike Authorijr

'

Rev.
GoO.
Rev.

8.0
8.3
£2=0
121.5
.22.3
25.0
lil00
5,0
12.0.
100.0
60.0
186.0
80,0
390,0
Wxo
9.0

—

n.a.
n.a.
n.a.
• n.a.
• n.a.
Rev.
Rev.
Rev.
n.a.
Rev.
Rev.
n.a.
Rev.
Rev.
Rev.
n.a„ •

.

95.0
235.0
16.0
200.0

•

J u l y 12
J u l y lit
J u l y 20
J u l y 20
J u l y 26
J u l y 26
J u l y 26
J u l y 26
J u l y 28
Summer
1955
1955
1955
1955
19#
1955

,

1955
" 1955
1955
1955

OTHER
Ifone
1 / I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of 15 m i l l i o n d o l l a r s and o v e r ; S t a t e
and l o c a l government i s s u e 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 , •
n.a.—Not available.
*—Included i n t a b l e for f i r s t time.