Full text of H.16 Capital Market Developments : June 23, 1958

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Not f o r P u b l i c a t i o n

^CONTROLLED AFTER SIX MONTHS

H.Ui

June 23, 1958.
CAPITAL MARKET DEVELOPMENTS

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 during t h e week
ending June 20 t o t a l e d $31 m i l l i o n f o r c o r p o r a t i o n s and $79 m i l l i o n
f o r S t a t e and l o c a l governments. A f o r e i g n government i s s u e f o r $36
m i l l i o n was a l s o s o l d . Another S t a t e and l o c a l government i s s u e
scheduled f o r s a l e l a s t week was not s o l d a s Minnesota r e j e c t e d t h e
only b i d r e c e i v e d f o r i t s $35 m i l l i o n , Aaa-rated bond i s s u e . I t has
been announced t h a t the S t a t e w i l l f i n a n c e i t s c o n s t r u c t i o n program
by borrowing from S t a t e t r u s t f u n d s , r a t h e r than r e - a d v e r t i s e f o r b i d s .
R e f l e c t i n g i n p a r t t h e o m i s s i o n o f t h e Minnesota i s s u e , the S t a t e and
l o c a l government s e c u r i t y volume e s t i m a t e f o r June shown on E x h i b i t E
has been lowered t o $1*75 m i l l i o n .
This week, t h e volume of l a r g e corporate i s s u e s i s expected
t o t o t a l $225 m i l l i o n ( i n c l u d i n g a $150 m i l l i o n debenture i s s u e by
Standard O i l Company of C a l i f o r n i a ) . One S t a t e and l o c a l government
i s s u e f o r $25 m i l l i o n and f o r e i g n government o f f e r i n g s amounting t o
$1*7 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 - Changes i n y i e l d s on outstanding bonds were
mixed l a s t week. Y i e l d s on high-grade corporate, S t a t e and l o c a l government and U. S. Government o b l i g a t i o n s i n c r e a s e d , w h i l e t h o s e f o r S t a t e
and l o c a l Baa's remained s t a b l e . Y i e l d s on lower-grade corporate bonds
declined.
Y i e l d s on new corporate i s s u e s continued t o show l i t t l e change
l a s t week. An Aa-rated f i r s t mortgage e l e c t r i c u t i l i t y bond i s s u e was
o f f e r e d t o i n v e s t o r s on Tuesday t o y i e l d 3 . 8 2 per cent — 3 b a s i s p o i n t s
below t h a t f o r a comparable i s s u e o f f e r e d a week e a r l i e r .
The s a l e by New York S t a t e of a $1*9 m i l l i o n bond i s s u e l a s t
week a f f o r d s an opportunity t o t r a c e r e l a t i v e changes i n y i e l d s on new
i s s u e s of varying maturity during the course of the y e a r t o d a t e . As
can be seen from t h e accompanying t a b l e new i s s u e y i e l d s on the 5 - y e a r
maturity have l e v e l e d o f f during t h e p a s t month w h i l e y i e l d s on l o n g e r term i s s u e s have i n c r e a s e d s l i g h t l y .
New York S t a t e Bond I s s u e s
1958

Jan. lit
Mar. 25
May 1 3
June 17

Y i e l d by m a t u r i t i e s

Amount •
(millions
of d o l l a r s

1 year

37.5
1*9.5
1*0.0
1*9.0

1.60
.90
.75
*

*—None o f f e r e d .




5 years
2.05
1.70
1;70
1.70

per cent)

10 y e a r s

15 y e a r s

2.20
2.20
2.25
2.30

2.30
2.50
2.50
2;60

20 y e a r s
-

*
2.70
2.60
2.70

H.lU

Stock p r i c e s - The Standard and Poor's index of 500 common
s t o c k s d e c l i n e d s l i g h t l y l a s t week, c l o s i n g a t iiU.85 on June 20. Tradi n g continued t o be a c t i v e , averaging 2 . 7 m i l l i o n shares a day.
More d e t a i l e d information concerning r e c e n t c a p i t a l market
developments i s p r e s e n t e d i n t h e a t t a c h e d e x h i b i t s .

Capital Markets S e c t i o n ,
D i v i s i o n o f Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




EXHIBIT A

HIGH-GRADE

B O N D YIELDS

i/K

LOWER - GRADE

BOND

YIELDS




H.lli

Exhibit B
Tables f o r E x h i b i t A
High-grade Bond Y i e l d s

Date

Corporate
Aaa 1 / ...

U. S. Govt,
long-term 2 /

3.1*2
2.85
U.iU
3.68
3.55

3.19
2.L5
3.76
3.28
3.07

S t a t e and
local govt.
Aaa y

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

(Per cent)
1953
1951*
1957
1958

-

high
Low
High
High
Low

May 23
May 30
June 6
June 13
June 20 2 /

,

(6/19)
(U/23)
(9/27)
(1/3)
(5/2)

3.57
3.57
3.56
3.56
3.57

3.13
3.13
3.H
3.15
3.21

(6/5)
(8/6)
(10/16)
(1/31)

(V?5)

2.73
1.90
3.Ii5
2.86
2.64

(6/25)
(9/2)
(8/29)
(1/9)

(5/D

2.71
2.71
2.72
2.72
2.75

.

.38
.30
.60
.51
.28

.83
.30
•hi
.62
.31

.a
M
.42
.ia
.36

.li2
.li2
.1*2
.li3
.I16

Lower-grade Bond Y i e l d s

Date

Corporate
Baa 1 /

Spread between
Aaa and Baa
S t a t e and
Corporate
l o c a l govt.

S t a t e and
l o c a l govt.
Baa y
(Per c e n t )

1953
1954
1957
1958

-

High
Low
High
High
Low

May 23
May 30
June 13
June 20 2 /

3.89
3.UU
5.10
h.?6
1u55

(9/18)
(12/31)
(11/29)
(1/3)
(6/13)

1.62
U-60
a . 58
ii.55
It. 53

~~~

3.79 ( 6 / 2 5 )
2.93(8/5)
14.51 ( 8 / 2 9 )
3.92 (1/2)
3.6L ( 5 / 1 )
3.76
3.76
3.76
3.76
3.76

.

1.21
.96
1.21
1.11
.99

.69
.52
1.27
1.28
.96
1.05
1.03
1.02
.99
- .96

.

1.05
1.05
i.ol
1.0k
1.01

2 / Preliminary.
~
1 / Weekly average of d a i l y f i g u r e s . Average term of bonds included i s 25-26 y e a r s .
2 / Weekly average o f d a i l y f i g u r e s . The s e r i e s i n c l u d e s bonds due or c a l l a b l e i n
10 y e a r s or more.
2 / Thursday f i g u r e s . Only general o b l i g a t i o n s bonds are included; average ,enn
i s 20 y e a r s .
N o t e . — h i g h s 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 f o r
different series.




STOCK MARKET




STOCK

MARKET

CRIOII

Exhibit D
Stock Market
Stock price
index 1 /

Date

Common
Trading
volume 2 /
stock
(millions
yields 3/
of shares) (per cent)

Stock market customer c r e d i t
Customers'
Bank
d e b i t bal- loans t o
ances h/ "others" 5 /

Total

(Millions of d o l l a r s )
1953 - High
Low *
195k - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low
1958 - High
Low

26.Sk
22.95
35.98
21.93
1:5.69
35.28
1*9.61
1*3.22
1*9i08
39.1*8
1*5.02
1*0.37

April
May

1*2.31*
1*3.70
1*1*. 61*
1*5.02
1*1*. 85

June 13
June 20 2 /

|

(1/2)
(9/18)
(12/31]1
(1/8)
(12/9)
(1/lit)
(8/3)
(1/20)
(7/12)
(12/20)
(6/13)
(1/10)

2.5
0.9
3.7
1.1*
1*.6=
1.5
3.1
1.5
lt.2 .
1.1*
2.8
1.7
2.k
2.6
2.7
2.6
2.7

6.25
5.38
5.82
1*,32
1*.1*2
3.61*
lt.35
3.82
1*.72
3.91
1*.58
l*.o5

2,l»55
2,055
3.U36
2,1>05
it,030
3,537
14,01)7
3,911.
U,031
3,576
It, 069
3.55U

1,665
1,311*
2,388
1,653
2,805
2,517
2,823
2,71*0
2,887
2,1*82
2,856
2,1*87

780
66U
1,01*8
•71*6
1,21*1
1,018
1,267
1,155
1,163
1,0%
1,21*5
1,051

1*.33
1*.17
- 1*.09
1*.05
1*.07

3,980
It,069
n.a.
n.a.

2,735
2,856

1,215
1,213
1,220
1,217
n.a.

n.a.

n.a.—Not a v a i l a b l e .
^
1 / Standard and Poor's composite index of 500 common s t o c k s , weekly c l o s i n g
p r i c e s , 191*1-1*3 "10. Monthly data are averages of d a i l y f i g u r e s rather than of
Fridays' only. Highs and lows are f o r Friday's data only.
2 / Averages of d a i l y trading volume on the New York Stock Exchange.
3 / Standard and Poor's composite"stock y i e l d based on Wednesday data converted t o weekly c l o s i n g p r i c e s by Federal Reserve.
'
k / End of month f i g u r e s f o r member firms of the New York Stock Exchange which
carry margin accounts; excludes balances secured 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 weekly reporting member banks. Excludes loans f o r
purchasing or carrying U. S. Government s e c u r i t i e s a t banks in New York and
Chicago. Weekly reporting banks account f o r about 70 per cent of loans t o others.
For further d e t a i l see B u l l e t i n .
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 E
Long-term Corporate and S t a t e and Local Government
Security Offerings and Placements
(In m i l l i o n s of d o l l a r s )

1958
January
February
March

723
1.SS*

April
May

EA,12U
e/700.
e/900

1

New c a p i t a l
Corporate 1 /
S t a t e and l o c a l 2 /
1
1956
1957
1958
1
1957
1
1956
1,060
1,065
1,320

573
712
817

812
953
511

7l2
572
506

1*01*
696
390

818
1,11*6
8i*i

795
E/856
e/U75

765
546
393

378
1*90
735

July
August
September

58
1,1*53
x)
1,003
921*
973

1,063
651*
838

529
581*
1*31

1*08
206
357

October
November
December

1,090
789
1,076

1,088

698
6%
698

639
31*7
1*09

3,135
S/2,72it

3 ,U*5
3,lh9
2,899
2,951

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

2,276
e/2,126

1,820
1,701*
1,5W*
2,029

. 1,1*90
1,603
971
1,395

e/5,859

6,59k
9,193
12,1*47

e/l*,li02

3,521*
5,069
7,099

3,093
1*,061|
5,1*59

1st
2nd
3rd
hth

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

10,381

Excluding finance companies
1st
2nd
3rd
ljth
Year

quarter
quarter
quarter
quarter

2,89k
e/2,67l*

|

3,237
2,889
2,582
2,810

1,617
2,5W.
2,216
2,826

11,518

9,260

1/ S e c u r i t i e s and Exchange Commission estimates of net proceeds.
2 / Data through June 1956 are Bond Buyer data c l a s s i f i e d as new c a p i t a l by
Federal Reserve; l a t e r data are from the Investment Bankers Association of America
and are somewhat more complete as t o coverage than the e a r l i e r data, p a r t i c u l a r l y
f o r Federal Government loans.
3 / Includes $718.3 m i l l i o n AT&T convertible debenture i s s u e .
h / Includes $571.5 m i l l i o n AT&T common stock i s s u e .
f / Total 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 finance
companies.




hvh 3.b Lt .

H.lii

Other S e c u r i t y O f f e r i n g s 1 /
( I n m i l l i o n s of d o l l a r s )
Long-'term
Foreign government V
Fede:ral agency 3 /
1956
|
1950
1
1957
1
1957
1 1956
Januaiy
February
March

196
53

84
49
30

Anril
tby

139

123
48
h?.

37
8
50

1,163
251

72

523

125

1956

-

.

60

CO

95

July '
August
September

28
7
30

39

Octqber
November
December

4
60
1

44
5
21

100

-

507

300

572

I09

Year

Short-1
State and l o c a l government h/
Januaiy '
February
March

233
460
2/271

326
455
147

'

109

215

Federal agency V

196
357
2k9

371
209
Ihk

038
430
505

380
220
283

209
161

3#
469
5(U

323
314
260

April
May
June

205
337
153

125
2#
176

July
August
September

272
272
252

195
207
179

2,-h
370
512

222
425
273

October
November
December

159

?

294
328
148

1,238
255
116

407
222
128

3,27k

2,706

5,543

3 ,lt57

Year

e / Estimated.
__
1 / Data presented i n t h i s e x h i b i t d i f f e r from those i n Exhibit E in that refunding i s s u e s , as w e l l as new c a p i t a l i s s u e s , are included. Long-tem s e c u r i t i e s are def i n e d as those maturing in more than one year.
- 2 / Includes s e c u r i t i e s o f f e r e d i n the United S t a t e s by f o r e i g n governments and
t h e i r subdivisions and by i n t e r n a t i o n a l organizations. Source: S e c u r i t i e s and Exchange Commission.
_2/ I s s u e s not guaranteed by the U. S. Government. Source: long~<
Securities
and Exchange Commission; short-term, Federal Reserve.
4 / FRASER
P r i n c i p a l l y t a x and bond a n t i c i p a t i o n n o t e s , warrants or c e r t i f i c a t e s and Public
Digitized for
Housing Authority n o t e s . In some instances PHA notes included may have a somewhat
http://fraser.stlouisfed.org/
longer term than one year. Source: Bond Buyer.

Federal Reserve Bank of St. Louis

H.lii
Large Long-term Public S e c u r i t y I s s u e s f o r New Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large I s s u e s Offered
( M i l l i o n s of d o l l a r s )

Month

Corporate

1957 - May
June
July
August
September
October
November
December
1958 - January
February
March
April
May

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

Other 2 /

176
.81
22h
266
133
#3
3hk
Uoh
iilO
553
182
300
505

329
677
525
526
537
57lj
U20
399
318
605
1,093
725
356

25
9?
25
—

.

245
75
100

.

1,378
266
# 3 /
165

Large I n d i v i d u a l I s s u e s Offered June 1 through 20

Issuer

Type y

Coupon
Amount r a t e or O f f e r i n g
(millions
Maturity
net i n t e r - y i e l d
of
e s t cost
dollars)

Rating

CORPORATE \
Consolidated Edison Co.
l s t . r e f . m t g . b d s . 5 0 . 0 1988
Texas Eastern Trans. Corp.
Pfd. s t k .
15.0
S.F. deb.
O w e n s - I l l i n o i s Glass Co.
3 1 . 7 1968
V i r g i n i a E l e c . & Pwr. Co. 1 s t r e f . m t g . b d s . 2 5 . 0 •1988
Niagara Mohawk Pwr. Corp. Gen. mtg. bds. 5 0 . 0 1988
Oklahoma Gas & Elec Co.
1 s t mtg. bds. 1 5 . 0 1988
Mountain Fuel Supply Co.
Deb.
1 6 . 0 1983

h
3
3
3
3
h

3A
7/8
7/8
7/8

3.85

Aa

3.72
3.82
3.80
3.82
U.00

Aa
Aa
Aa
Aa
A

3.hO

A

STATE AND LOCAL G0VERNMEN1
Port of New York Authority
Tulsa Mun. Airport Trust,
Oklahoma
S t a t e of New York
Milwaukee, Wisconsin
S t a t e of Texas
• OTHER
Metro. Toronto, Canada
n.a.—Mot a v a i l a b l e .




Rev.-Ut.

35.0

Rev.-Ut.
G.O.
G.O.
G.O.

2 0 . 5 1983/59
rua #
1*9.0 19S0-20 M3 2.92
1 7 . 8 1959-78
2.55
1 2 . 5 1966-90
2.9it

S.F. deb.

35.8

1988/68

1978

l.kk

U.50
1.00-3.10
,75-2.75
2.10-3.02"
W 5

Baa
Aa

0-2

1 / I n c l u d e s corporate and o t h e r s e c u r i t y o f f e r i n g s o f $15 m i l l i o n 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 $10 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 Reconstruction and
Development i s s u e s and non-guaranteed i s s u e s by Federal a g e n c i e s .
J / In the 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 general
o b l i g a t i o n s ; R e v . - U t . , revenue o b l i g a t i o n s secured only by income from p u b l i c
u t i l i t i e s ; R e v . - Q . U t . , revenue bonds secured only by revenue of q u a s i - u t i l i t i e s ;
R e v . - S . T . , revenue bonds secured by revenue from s p e c i f i c t a x e s o n l y ; R e v . - R e n t . ,
revenue bonds secured s o l e l y by l e a s e payments.




H.lli
Forthcommp; Largo l.ong-t.cx-m Public' S e c u r i t y O f f e r i n g s f o r New Capital
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large I s s u e s
Date of
computation

1957 - May 31
June 28
July 31
Aug. 30
Sept. 30
Oct. 31
Nov. 29
Dec.. 31
1958 - Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 29

During month f o l l o w i n g
date shown
| S t a t e and
Corporate
[other 2 /
[ l o c a l r.ovt.
525
370
526
#8
576
158
383
378
1,96
1,123
#5
356
266

87
153
218
183
33h
339
363
3k5
370
13u
298
li93
177

25
30
•
'

30 .
18
150
110
150
36

Subsequent to
date shown
1 S t a t e and Other 2/
Corpora 6
( l o c a l govt.
s

.

h07
h? 9
.1*71
379
551
Shy
558
56h
.187
3hl
330
b93
208

525
1H5
611
816
617
815
1,103
1,1.01
1,378
1,208
. 070
561
lioh .

25
30
15
ii5
63
165
.

.

1.10
150
36

Forthcoming Large Of.Curings, a s of .June 20

P a c i f i c Power & Light Co.
Wilson & Co.
United Gas Coi-p.
Standard O i l Co. of C a l i f o r n i a
Florida Power Corp.
Martin Co.
^•Northern Indiana Public Service Co.

(inLUJ'-ri:;
of d./Li. a iv.)

1 s t mitf. bds.
S.F. deb.
S.F. deb.
Deb.
1 s t mtg. bds.
S.F. deb.
Common s t k .

20.0
15.0
W.o
150.0
25,0
25.0
15.2

Common s t k .

lib. U

Common s t k .

22.6

June
June
June
June
July
July
July
(rights
July
1

P a c i f i c Gas & E l e c t r i c Co.
New England Telephone & Telegraph Co.

Aiiproxir.iato date
ot ulJerinj;

Southern Natural Gas Co.
<-Boston Edison Co..
•itMead Corp.
Commerce Oil R e f i n i n g Corp.
Natural Gas P i p e l i n e Co. of America
Consolidated Natural Gas Co.




S.F. deb.
Pfd. s t k .
Deb.
D e b . , . b d s . & common
3 s t mtg. bds.
S.F. deb.

30.0
,25.0
25.0
. L5.0
ho.o
hS.O

25
?5
26
26
2
3
7
expire)
8
1

Type

Jul y 1.1
(rir/hts expire)
July 11
July 1
July
1956
1956
1556

H.lU
Forthcoming Large O f f e r i n g s , a s of June 20 (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
Maryland S t a t e Roads Commission
Pennsylvania General S t a t e Auth.
* S t a t e of North Carolina
S t a t e of Ohio.
x S t a t e of C a l i f o r n i a
San Diego Unif. Sch. D i s t . , C a l i f .

-

G.O.
Rev,-Ut.
G.O.
Rev.-S.T.
G.O.
G.O.

25.0

30.0

15.0
31.0

100.0
10.0

June
July
July
July
July
Sept.

2k
9
16
22
23
10

OTHER
High Authority of European Coal &
S t e e l Community
High Authority of European Coal &
S t e e l Community

Bonds

32.0

June 26

Notes

15.0

June 26

Included i n t a b l e f o r f i r s t t i m e .
1 / I n c l u d e s corporate and other i s s u e s of $15 m i l l i o n and over; S t a t e and
l o c a l government i s s u e s of $10 m i l l i o n and o v e r .
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 and non-guaranteed i s s u e s by Federal a g e n c i e s .
N o t e . — D e l e t i o n s f o r reasons o t h e r than s a l e of i s s u e : S t a t e of Minnesota's
$ 3 5 . 0 m i l l i o n general o b l i g a t i o n i s s u e : b i d s r e j e c t e d .




H.lli

Exhibit I
Y i e l d s on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /

Date

1952 - 1957
High
Low
1958 - January
February
March h
5
6
12
19
21
25
April 1
2
17
23
29
May 7
13
15
16
20
21
22
28
June 10
17

A-rated o f f e r i n g y i e l d s
Aa-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)
(per cent)
(basis points)
(basis points)

5.00(8/11/57)
2.93(3/3l/5U)

87
-3

*3.60 .
3.892/

-8
22

Ll5
1.22
It.00
Loo

hh
50
28
26

Lo5
3.98
Loo

31
23
25

3.75

5

3.90

21

3.85
3.85

16
16

3.85
3.82

17
12

5.50(11/7/57)
3.00(3/17/51)
3.962/
1.07
14.25

123
-15
3
9
6

,

L07

-7

3.98

5

LOI4
Loo

11
3

U.07
L 35

h
32

LOO
3.95

-1
-6

*—Single observation, not an average.
1/ Covers only 30-year f i r s t mortgage bonds, as reported i n Moody's Bond
Survey. Except where indicated, the a c t u a l y i e l d f i g u r e and the amount above
seasoned y i e l d s are averages of o f f e r i n g s during the i n d i c a t e d period and of t h e
d i f f e r e n c e s between these 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 t h e same day. Average maturity f o r the 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-year period during which i s s u e may not be c a l l e d f o r
refunding at a lower coupon r a t e . Monthly averages so marked include one or more
i s s u e s with such a p r o v i s i o n . Other i s s u e s have no such p r o v i s i o n .