Full text of H.16 Capital Market Developments : June 22, 1955

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I M^UaJL-

Mot for Publication

DECONTROLLED AFTER SIX M0HT8S

H,-1U

June 22, 1955
CAPITAL MARKET DEVELOPMENTS

Volume of new capital moderate last week - The proceeds
from large security issues floated publicly for new capital during
the week ending June 17 totaled 8U million dollars for State and
local governments and Ul million for one public utility offering.
State and local governments expect to offer 98 million dollars,
and corporations are scheduled to float 58 million dollars of large
issues this week.
•
Bond yields increase - Yields on outstanding high-grade
corporateand State and local government bonds and on U. S. Government-long-term obligations rose one basis point during the week
ending June 17. The Treasury yields increased further on Monday
and Tuesday of this week.
Lower-grade corporate and State and local government bond
yields also increased one basis point last week.
Stock prices gain - The SEC index of 265 common stocks
was 2li7.il last week, 5.5 points above the previous week's index,
which was itself an all time high. Daily figures indicated a moderate increase,in prices on Tuesday of this week.
More detailed information concerning recent capital market developments will be found 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 BOND YIELDS
Weekly

U. S. GOVERNMENT

STATE AND LOCAL
GOVERNMENT A a a
Moody

Corporate
Aaa 1/

U. S. Govt.
long-term 2f

! State and local
j govt., Aaa

Spread between
__ S. Govt, and
U.
Corporate[state and

(Per cent)
1952 - High

1955 - High
Low

3.03
2.91
3.U2
2.99
3.09
2.85
3.05
2.91

May 20
May 27
June 3 .
June 10
June 17

3.0U
3.05
3.05
3. Oh.
3.05

1953 - High
195U - High

(lA)

(2/15)
(6/19)
(1/9)
(1/8)
(U/23)
(6/17)
(1/7)

2.79
2.56
3.15
2.78
2.7U

(12/27)
(5/17)
(6/6)
(12/26)
(1/9)
2.hh (8/7)
2.77 (5/6)

2.00 (10/23)

1.65 (5/1)
2.73 (6/25)

1.98 (1/8)
2.21 (6/10)

.37
.19
.38
.19
.h3

1.02
.71

• 8U
.30

.61

2. 62 (1/7)

2.05 (</26)

. 2U

%

.29
.70
.5U

2.7k
2.75
2.7U
2.7U
2,75

2.06

2.05
2.05

.30
.30
.31
.30
.30

.68

1.90 (9/2)

2.11 (2/10)

2.07

2.08

.69
.70

.67
.67

1/ Weekly average of daily figures. Average term of bonds included is 25-26
years.
2/ Weekly average of daily figures; old juries
Average term to first call
of bonds included is 13-lU years.
3/ Thursday figures. Only general obligation bonds are included: average
tern Is 20 years.
Note
Highs and lows are for individual series and may be on different dates
for different series.
'




EXHIBIT B

L O W E R - G R A D E BOND YIELDS
Weekly

Per c e n t p e r

Corporate
Baa 1/

J
State and
• local govt.
f
Baa If

f
I

State and
local govt.
rev. 3/ •

(Per cent)
1952 - High

195U - High
Low
1955 - High
Low

3.63
3.U8
3.8 9
3.50
3.7U
! 3.UU
| 3.51
3.U5

May 20
May 27
June 3
June 10
June 17

1 3.U9
3.50
3.50
3.50
3.51

1953 - High

;

(Vl6)
(9/16)
(1/2)
(1/8)
(12/31)
(6/17)
(1/lk)

2.98
2.U8
3.79
2.96
3.32
2.93
3.08
3.02
3.06
3.06
3.06
. 3.06
3.07

'(10/23) . 2.69 (12/19)
(L/17)
.2.27 (1/25)
(6/25)
3.27 ( V # )
(1/8)
2.71 (1/2)
(1/7)
• 3.00 (1/D
(8/5)
2.72 (8/13)
(5/12)
'2.80 (6/17)
(1#)
2.76 (1/7)
2.77
2.77
2.79
2.79
2.80

1/ Weekly average of daily figures. Average term of bonds
included is 25-26 years.
2/ Thursday figures. Only general obligation bonds are
inducted; average term is 20 years.
3/ Friday figures. Average rating of bonds included is
between Baa and A; average term is 20 years.
Note.—Highs and lows are for individual series and may
be bn different dates for different series.




STOCK M A R K E T

!-/-

Date

Stock price
index 1/

Stock market credit
Trading
Conrnon 1
volume 2/ 1 stock
[
'customers' 1. Bank
(millions 'yields 3/
Total [debit bal-l loans to
of shares)1(per cent)I
1 ances U / |"others" 5/
(Millions of dollars)

. 165.3 (12/26)
1952 - High
151.7 (10/2U)
Low .
167.1 (1/2)
1953 - High
m . O (9/18)
Low
221.U (12/31)
195U - High
156.5 (1/6)
2U7.U" (6/17)
1955 - High
Low
217.lt (1/lh)
April
May
June 3
June 10

231.1*
233.3
237.5
21:1.9
21*7.1*

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

2.7
2.1*
2.9
2.7

5.77
5.13
5.75
5.15
5.33
1*. 20
U. 22
h.12

1,986
l,80l*
2,!4U5
2,055
3,^6
2,1*05
3,787
3,537

L.12
l*.ll* .

3,785
3,737.

:'

1,332
1,21*1
1,665
1,331*
2,388
1,653 '
2,701*
2,517
2,701*
2,681*
n.a.

656
552
780
661*
1,01*8
71*6
1,150
1,018

:
.

. 1,081
1,103
1,126
1,150

1/ SEC index of 265 common stocks, weekly closing prices, 1939=100; converted
to 19E7-h9=100 by Federal Reserve. The conversion factor is 123.91.
2/ Averages of daily trading volume oh the New York Stock Exchange.
3 / Moody's 203 common stocks; end of month figures.
I*/ End of month figures for member firms of the New York Stock Exchange which
carry"margin accounts; excludes money borrowed for carrying U. S. Government obligations.
„
"
5/ Wednesday figures for weekly reporting member banks. Excludes all loans
on U.~S. Governments for 1952; since 1953 only loans secured by Governments at
banks in New York and Chicago are excluded. Weekly reporting banks account for
about 72 per cent of loans to others.
n. a . — N o t available.
™
Note.—Hi^is and lows are 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)
New capital
1955

Corporate
1
1954
1

January
February
March

546
436
1,261

426
6# .

April
May

e/500
e/900
e/650

497
656
842

July
August
September

909 '
$

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

2,243
e/2,050

State and local
1
1954
1

1953

1953

1955

623
623
666

535
312
#8

3#
411
565

r/390
360
426

e/425
e/35o
a'675

734
748
853

329
649
434

279
261
649

519
259
475

594 .
423
877

453
408
774

:

779
675
1,123
483
325
753

1,003
290
604

577
429 1 Z
1,438 y

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

1,912
2,578
ifi f
8,495 ,

1,385
e/1,450

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 new capital issues excluding offerings of sales and personal finance
companies.
e/ Estimated.
• r/ Revised.
"Note.—Details may not add to totals due to rounding.




H.lU

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

Corporate

Month

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

;
1

State and
j
local government!

32U
350
zA.ii
75
v
r/36h
rA33
0
r/121
-na
72
750
175
U83

557
603
92

%

Other 2/

——
——

"

——

388
268
689
3Ul
107
337
238
r/152

30
35
15

Large Individual Issues Offered June 1 through 17

Issuer

Type 3/

-I
Coupon
Amount
Offering I
rate or
(millions
Maturity
yield
jRating
net interof
dollars)
est cost

CORPORATE
Virginia Electric and
Povrer Company
Southern California
Edison

1st & ref. bds. 25.0
Conv. deb.

Ul.O ^

1985

3.25

3.20

Aa

1970

3.25

: 3.25

A

STATE Ai'JD LOCAL GOVERNMENT
Houston, Texas
.New York City Housing
Authority
State of North Carolina
Baltimore, Maryland
Galveston Co. Navigation
District, Texas




G.O.

12.5

1956-80

2.U7

1.20-2.65

A

G.R.
G. 0.
G.O.

27.2
11.0
2k. 7

1958-03
1957-75
1956-81

3.01
1.96
2.15

1.75-2.78
1.20-2.05
1.05-2. 30

A
Aa
Aa

1957-91 .

2.93

1.10-3.0(6/ A

. G.O.

6.0

•H.lU

E-2
Large Individual Issues Offered June 1 through 17 (Cont'd)

Type 3/

Amount
(millions

1Coupon

Maturity in e t^inter,
I est cost
[dollars)I
of

Offering
jRating
yield

STATE AM? LOCAL GOVERNMENT
~
(Cont'd]
Minneapolis, Minnesota
Florida Turnpike Auth.
Texas Turnpike Authority
Kansas City, Kansas
Prince George's Co., Md.
Dade County Port Auth.,
Florida

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

5.2
71.0
58.5
7.0
6.0

1956-75
199$
1980-95
1956-70
1956-75

3.32
2.93
2.06
2,77

Rev.

12.1

1979

3.23

1.15-2.10
3.25
2.80-2.90
1.15-2.10
1.25-3.05
3.15

Aa
Aa
Baa
—

OTHER
None
^ Rev ^ se y_
1/ Includes corporate and other security offerings of 15 million dollars and
overstate 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 securities, G.O. denotes general
obligation; Rev., revenue bonds; G.R., general obligations additionally secured byfacilities revenues; and, L.L., limited - liability obligations secured by pledge of
designated revenues.
U/ Subject to award.




H.lU

Exhibit F
Forthcoming Large Public Security Offerings for New Capital
(Other than U. S. Treasury) l/
Expected Proceeds from Forthcoming Large Issues
During month follovring
Subsequent to
date shoi'/n
date shorn
State and
State and | Other \
Corporate
|Other £/ (Corporate
local govt.
local.govt.

Date of
computation
195b - May 28
June 30
July 30
Aug. 31
Sept. 30
Oct. 29
Nov. 30
Dec. 31 n
1 9 # - Jan. 31 .j
Feb. 28 1
• Mar. 31
Apr. 29
May 31

332
336
100
33U
3b3
'
15
9h
18U
16
710
211
U25
160

596
86
5L
300 "
383
U36
661
567
682
52U
203
116
339_

30

526
532
303
608
LlL
135
2h6
216
U22
1,395
922
l,lUl
950

1,971
1,52k
1,553
•1,876
2,158
1,957
2,682
2,ILL
1,961
1,978
2,009
1,917
1,861

30
30
35

Forthcoming Large Offerings, as of June 17
Issuer

Southern New England Telephone
and Telegraph
Oklahoma Gas and Electric
Consolidated Natural Gas
Baltimore Gas and Electric
Peoples Gas Light & Coke
Merritt-Chapmsn & Scott Corp.
American Natural Gas
American Telephone and Telegraph
Southern California Gas
Goodyear Tire and Rubber
^Freedom Insurance Co.
STATE AW

type

Amount
App roximate date
f (millions
of offering
'of dollars)

Deb.
1st mtg. bds.
Common stock
Common stock
.Common stock
Deb.
Common stock
Conv. deb.
Bonds
Common stock
Common stock

20.0
15.0
22.9
17. U
15.7
25.0
37.0
650.9
bo.o
50.0
22.0

June
June
June
June
June
June
July
1955
1955
1955
1955

21
21
21
22
2U

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

13.2
15.0
20.0
50.0

June
June
June
June

21
21
21
22

LOCAL GOVERNMENT

Cleveland, Ohio
Tacoma, Washington
State of Connecticut
Pennsylvania General State Auth.




H.lU

.

F-2
Forthcoming Large Offerings, as of June 17 (Cont'd)
Issuer

Type

Amount
Approximate date
(millions
of offering
lof dollars)

STATE AND LOCAL GOVERNMENT (Cont'd)
Dallas, Texas
Maryland State Roads Commission
*Sioux Falls, Arizona
^Springfield, Massachusetts
^Nassau County, Mew York
Dayton, Ohio, School District
New York State Thruway
#Pierce Co., Wash., Tacoma Sch.Diat.
^Public Housing Authorities
Inter-American Center Auth., Fla.
Michigan Turnpike Authority
State of Louisiana
Illinois Turnpike Authority
Connecticut Expressway
Texas Turnpike Company
Springfield, Illinois
Allegheny County, Pennsylvania,
Sanitary Authority
California Toll Bridge Authority
Jersey City Sewerage Auth., N. J.
North Carolina -Turnpike Authority

G. 0.
L.L.
G.O.
G. 0.
G. R.
Rev.
Rev.
Rev.
Rev*
Rev. •
Rev.
Rev.
• Rev.
n.a.

10.0 .
25.0
12.0
13.0
19.2
12.0
125.0
8.3
110.0
60.0
186.0
80.0
390.0
100.0
1U0.0
9.0

June 27
June 28
June 28
June 29
June 29
. June 30
. July 12
July 1);
July 20
1955
1955
1955
1955
1955
1955
'1955

85.0
235.0
16.0
200.0

^ 1955
1955
1955
1955.

OTHER
None
1/ Includes corporate and other issues of 15 million dollars and over; State
and local government issues of 5 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues.
n. a.—Mot available.
-"---Included in table for first time.