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Not f o r Publication DECONTROLLED A T R SIX MONTHS
FE
H.lU

March 29, 1956
CAPITAL M R E DEVELOPMENTS
AKT

Two l a r g e corporate security issues with proceeds of
£55 million and two S t a t e and l o c a l bond issues t o t a l i n g $13 mill i o n were sold publicly during the week ending March 22. This week
corporate i s s u e s t o t a l i n g $120 million and S t a t e and l o c a l i s s u e s
of $5h million are scheduled f o r o f f e r i n g .
The volume of large public o f f e r i n g s l a s t week was considerably smaller than had been expected. The $100 million Tide
Water Associated Oil Company debenture which had been expected was
.postponed u n t i l t h i s week and reduced in s i z e t o $50 m i l l i o n , r e portedly due to disagreement between the company and the underwriters as t o the i n t e r e s t r a t e required. The remaining $50 million w i l l be obtained through a term l o a n . . In the S t a t e and l o c a l
government market, Key West, Florida r e j e c t e d the only bid on a
' <£9*5 million revenue bond i s s u e , in p a r t because of the i n t e r e s t
cost involved.
Bond y i e l d s - Yields on a l l types of outstanding bonds
increased l a s t week, the r i s e being from 1 to U basis p o i n t s .
A f t e r declining e a r l i e r i n the year, y i e l d s began to increase in
l a t e February and by l a s t week were at about the same.level as at
the end of 1955. There are some d i f f e r e n c e s as between types of
bonds however, U . S . Government y i e l d s being somewhat above, and
other y i e l d s somewhat below t h e i r year-end l e v e l .
Stock p r i c e s
l a s t week i n continued
265 common stocks rose
Daily indexes i n d i c a t e
Wednesday of t h i s week

- Common stock p r i c e s increased f u r t h e r
heavy t r a d i n g volume. The SEC index of
2.U points to a l e v e l of 288.L on March 23.
some decline i n p r i c e s on balance through
in smaller trading volume•

More d e t a i l e d information concerning recent market developments i s presented i n the attached, e x h i b i t s .

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.




EXHIBIT A

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

V V

1953

1954

1955

U. S» Govt., long-term 2/
Corporate
Aaa 1/
1953 -• High
Low
195U - High
Low
1955 - High
1956 - High
February 2U
March 2
March 9
. March 16
March 23

3.U2
2.99
3.09
2.85
3.17
2.91
3-11*
3-07

(6/19)
(1/9)
(1/8)
(U/23)
(12/23)
(1/7)
(1/6)
(3/2)

3-07
3-07
3.08
3-10
3-12

Old series

New series

1956

Spread between
U. S. Govt.
State and
local govt. (old series) and
Corporate State and
Aaa 3/
Aaa
local Aaa

3.15
2.78
2.7U
2.UU
2.91
2.62
2.90
2.80

(6/6)
n.a.
(12/26)
n.a.
(1/9)
n.a.
(8/7)
n.a.
(8/5) 3.03 (8/5)
(1/7) 2.89 (6/10)
(1/6) 2.99 (3/23)
(2/17) 2.92 (2/3)

2.3b
2.05
2.29
2.17

2.83
2.8U
2.86
2.89
2.93

2.91*
2.9U
2.96
2.97
2.99

2.17
2.18
2.18
2.25
2.27

1/ Weekly average of daily figures.

2.73 (6/25)
1.98 (1/8)
2.21 (6/10)

1.90 (9/2)

(9/8)
(5/26)
(1/5)
(2/23)

• 38
.19
.13
• 32
• 3U
.13
.28
.19

•2
U

•23
.22
.21
• 19

.81
• 30
.61
.29
.70

:S

.56
.66
.66
.68
.6U
.66

Average terra of bonds included i s 25-26

2/ Weekly averages of daily figures. The old series includes f u l l y taxable,
marketable 2 1/2 per cent bonds due or f i r s t callable a f t e r 12 years through
September 1955, and those due or callable 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 series i s comprised of the 3 per cent bond
of 1995 and the 3 1/U per cent bond of 1978-833/ 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 d i f f e r e n t dates
for different series.




EXHIBIT B

LOWER - GRADE BOND YIELDS

1953

Date

1954

Corporate
Baa 1 /

1955

S t a t e and
l o c a l govt.
Baa 2 /

1956

S t a t e and
l o c a l govt,
rev. 3/

(Per cent)

1956 - High
Low

3.89
3-50
3.7k
3-44
3.63
3.45
3.62
3.58

February 24
March 2
March 9
March 16
March 23

3.58
3.58
3.58
3.59
3.60

1953 - High
Low
1954 - High
Low
1955 - High

(9/18)
(1/2)
(1/6)
(12/31)
(12/30)
(1/14)
(1/6)
(3/9)

3.79
2.96
3-32
2.93
3.26
3.02
3.26
3.20
3-20
3.20
3.20
3.23
3.26

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)
(1/6)
(3/22)
(3/8)

3.27
2.71
3.00
2.72
2.99
2.76
2.98
2.89

(6/26)
(3/2)
(1/1)
(8/13)
( 1 2 / 30)
(1/7)
(3/23)
(2/24)

2.89
2.90
2.91
2.96
• 2.98

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 / 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 .
3 / Friday f i g u r e s . Average r a t i n g of bonds included i s
between Baa and A; 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 on d i f f e r e n t dates f o r d i f f e r e n t s e r i e s .




EXHIBIT C
STOCK

MARKET

x

i

Stock price
index 1 /

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

Stock market customer c r e d i t
Customers'
debit bal- loans to
ances hf "others" 5/
(Millions of dollars)

1953 - High
195U - High
1955 - High
1956 - High
JanuaryFebruary
March 9
March 16
March 23

167.1
1UU.0
221.H
156.5
270.7
217.U
288.h
257.5

(1/2)
(9/18)
(12/31)
(1/6)
(12/30)
(1/1L)
(3/23)
(1/20)

262.8
266.3
279.1,
286.0
288. h

2.5
0.9
3-7
l.U

h.6 .

1.5
3.1 .
2.0
2.2
"2.3
2.6
3.1 =
2.8

5.75
5.15
5-33
It.20
ii.22
3.78
L.08
3.93

2,W5 •
2,055
3A36
2,1*05
Ii,030 3,537
"U,0U0
3,991

1,665
1,31U
2,388
1,653
2,805
2,517
2,786
2,7UO

780
661*
1,0L8
716
1,21*1
1,018
1,267
l,2Ul

U.08
3-93

U,0l*0
3,991

2,786
2,710

l,25U
1,21*1
1,251
1,252

n.a.

available.
1/ SEC index of 265 common stocks, weekly closing prices, 1939=100; converted
to-1957-49=100 ty Federal Reserve. The conversion factor i s 123.91.
2/ Averages of daily trading volume on the New York Stock Exchange.
3/ Moody's 200 common stodcs; end of month figures.
hf End of month figures f o r member firms of the New York Stock Exchange which
carry margin accounts; excludes balances secured by U. S. Government obligations.
5/ Wednesday figures for weekly reporting member banks. Excludes loans for
purchasing or carrying U. S. Government s e c u r i t i e s at banks in New York and Chicago.
, Weekly reporting banks account for about 72 per cent of loans to others.
Note.--Highs and lows are f o r individual series 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 .




H.lU

. 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 m i l l i o n s of d o l l a r s )

195b

Corporate
I
1955
1

New c a p i t a l
195k

1956

5k6
U36
1,261

5U7
U26
635

e/kOO
e/650
e/375

April
May
June

k9k
903
697

July
August
September

J anuary
February
March

k

S t a t e and l o c a l
I
1955
1

US?
e/725
e/975

497
656
8k2

1*27
350
6kl

73k
7k8
653

909
335
7k7

k70
2k9
U06

279
261
6k9

1,207
631
921
e/2,185

396
kll
#5

583
65k
680

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

195k

535'
312
538

1,003
290
• 60k

919
#8
U08

59k
k23
877

2,213
2,09k
1,917
2,760
9,011+

1,608
1,995
1,991
1,896
7 ,h90

1,385
l,kl8
1,12k
j.,98k
5,911

1,372
2,33k
1,188
1,89k
6,789

'
f/l,k25

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

e/1,785

1,791
1,912
i,ai
2,619
7,762

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

e / Estimated.
T/ Includes $637-2 m i l l i o n AT&T convertible debenture i s s u e .
2 / 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 personal finance
companies.
Mote.—Details may not add to t o t a l s due to rounding.




H.lli

Exhibit E
Large Public S e c u r i t y Issues f o r New C a p i t a l
(Other than U. S. .Treasury) 1 /
Proceeds of Large Issues Offered
(Millions of d o l l a r s )
Corporate

Month

1955 - February
. March
April
May
June
July
August
September
October
November
December
. 1956 - January
February

63
750
173
183
175
101
U05
328
805
221
263
95
212

S t a t e and
l o c a l government
107
337
238
152
U03
278
65
23k
716
396
205
192
h33

'

Other 2 /

15

25
50

Large I n d i v i d u a l I s s u e s Offered March.1 through 23
Issuer

Type 3 /

Coupon
Amount
(millions Maturity r a t e or
O f f e r i n g Rating
of
yield
net i n t e r dollars)
e s t cost

• CORPORATE
Bell Telephone of Pa.
|
Deb.
35-0
Houston Lighting & Power 1 s t mtg. bds. 30.0
Fruehauf T r a i l e r Co.
Conv. sub. deb.. 37.5
P a c i f i c Gas & E l e c t r i c
1st & ref.
25.0
mtg. bds.
hhirlpool-Seeger
SF deb.
30.0 .

1996
1996
1976
1988

3 1/U
3 1/U
h
3 3/8

3.20
3.19.
U.oo
3-32

Aa
Aa
Baa
Aa

1980

3 1/2

3-50

A

STATE & LOCAL GOVERNMENT
San Antonio, Texas
Penn Township School
D i s t r i c t , Pa.
S t . Louis, H i s s o u r i
Santa Clara, C a l i f .
Denver Colo., School
D i s t r i c t #1




G.O.

5.0

1957-76

2.71

1.90-2.75 • Baa

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

5.3
12.2
5.2

1957-86
1962-75
1957-81

3-31
2.16
2.29

1.95-3.35
1.85-2.25
1.60-2.35

Baa
Aa.
Aa

G.O.

28.5

1957-75

2.27

1.60-2.30

Aa

H.lii

E-2

Large I n d i v i d u a l Issues Offered.March 1 through 23 (Cont'd)
Issuer

Type 3 /

Coupon
Amount
Offering Rating
(millions Maturity r a t e or
net interof
yield
dollars)
est cost

STATE & LOCAL GOVERNMENT
(Cont'd)
Bethlehem Auth., Pa.
S t a t e of Alabama
S t a t e of New Hampshire
S-Ji Diego, C a l i f .
Milwaukee, Wisconsin
S t a t e of New Mexico

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

8.0
15.0
19-3
6.0
8.0
5-0

1959-96
1958-75
1957-83
1956-75
1957-76
1957-61

2.81
2.^6
2.25
2.57
2.2k
2.08

2.00-2.82
2.00-2.90
1.60-2.35
1.80-2.60
1.60-2.30
1.65-2.00

A
A
Aaa
Aa
Aaa
Aaa

OTHER
None
State""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 over.
%!/ 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 issues.
3/ In 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.O. denotes gene r a l 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; 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 secured by
pledge of designated revenues.

e




•

Exhibit :

H.Ik
s

Forthcoming Large Public S e c u r i t y Offerings f o r New C a p i t a l
(Other than U. S. Treasury) 1 /
Expected Proceeds from Forthcoming Large Issues
• Date of
computation
- Feb. 28
Mar. 31
Apr. 29
May 31
June 30
J u l y 29
Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 30
- J a n . 31
Feb. 29

During month following
date shorn
Corporate J S t a t e and other 2 /
' l o c a l govt.
'710
211
h2$
160
67
U07
222
80S
202
215
70
176
123

52h
208
116
339
3hh
100
18U
813
330
20$
121
327
220

Subsequent t o
date s h o w
S t a t e and
Corporate
l o c a l govt.

50

1,393
922
1,11*1
850
830
1,135
920
909
lP-2
230
85 376
233

1,978
2,009
1,917
1,861
1,815
2,018
1,971
2,205
1,650
756
618
917
785

other

2

-

——
—*

50
——

Forthcoming Large O f f e r i n g s , as of March .23
Type

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

CORPORATE
New York Telephone
-Pennsylvania S a l t Mfg.
Tide Water Associated Oil
Bank of America
. S c o t t Paper
F l o r i d a Power and Light
l/estcoast Transmission Ltd.
Duquesne Light
P l a n t a t i o n Pipe Line
C a t e r p i l l a r Tractor
Columbia Gas
Southern C a l i f o r n i a Edison
Southern C a l i f o r n i a Gas
Sheraton Corporation of America




Ref. mtg. bds.
SF deb. .
• SF deb.
Com. stock

55-0
15.0
5o.o
56.0

Conv. deb.

98.7

1 s t mtg. bds.
Sub. d e b . '
1 s t mtg. bds.
SF deb.
Com. stock
Deb.
1st &ref. mtg. bds.
Mtg. bds.
Deb.

15.0
20.5
20.0
25.0
33-5
1*0.0
Uo.o
1*0.0
15.0

March
March
March
April
(rights
April
(rights
April
April
• April
. April
April
April
April
May
. 1956

27 •
27
29
2
expire)
3
expire)
3
3
h
h
k
10
17

/

H.Ik

F-2
Forthcoming Large O f f e r i n g s , as of March 23 (Cont'd)
Issuer

Type

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

STATE A D LOCAL GOVERNMENT
N
D a l l a s , Texas
Washington S t a t e T o l l Bridge Auth.
S t a t e of Delaware
S t . Louis County, Missouri
L o u i s v i l l e , KentuckyAlexandria, Louisiana
*Escanaba, Michigan
Louisiana S t a t e Building Auth.
P h i l a d e l p h i a , Pennsylvania *Oniaha Public Power D i s t . , Neb.
Georgia Rural Roads Authority
Chesapeake Bay.Ferry Commission
F l o r i d a S t a t e Turnpike Auth.
Oklahoma Turnpike Authority
Pennsylvania Turnpike Commission
Washington S t a t e To ll Bridge Auth.
S a l t River P r o j e c t , Arizona
Inter-American Center Auth., F l a .

G.O.
Rev.
G.O.
G.O.
G.O.
Rev.
Rev.
L. L.
. G.O.
Rev,
Rev.
n.a.
Rev. •
Rev.
Rev.
n.a.
Rev.

8.5
9.3
10.8
10.7
6.0
8.3
7.0
12.0
12.0
15.0
15.5
20.0
209.0
6£.0
62.0
227.0
11.0
70.0

March 26
March 27
March 27
March 28
March 28
March 29
April U
April 5
April 10
April 11
May
Spring
Summer
1956
1956
1956
1956
1956

None
*—Included i n t a b l e f o r f i r s t time.
n.a.—Not a v a i l a b l e .
1 / Includes corporate and other i s s u e s of $1$ m i l l i o n and over; S t a t e and
local""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 .




(0

K.lU

Exhibit G
Yields on New and Outstanding
E l e c t r i c Power Bonds, Rated Aa and A 1 /
Date

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
Actual I Amount above
Actual I Amount above
(per cent).[seasoned y i e l d s (per cent) seasoned y i e l d s
(basis points)
1(basis p o i n t s )

1952 average

3.16

13

3-35

12

1953 average

3«h6

16

3-78

26

195U average

3.03

3

3-12

-3

195# average

3.23

9

3.33

12

13
7
8

None
*3.23
3»2?
3.31
/ 3.35
*3.30
None
*3.57
*3.50
3.28

1955 - January
February
March
April
May
June ,
July
August
September
October
November
December
1956 - January
February 15
28
'
29
March 8
16

*3.15
*3-Hi
*3.17
None
*3.22
*3-20
None
None
*3.32
*3.25
*3.27
*3.32

10
7
10
7
7
12

None

3.15
3.19

-

*

—

3
5

9
1U
16
lit
10
"

30
23
-5

None

—

None

—

3-20
3.25

-8
-3

3-25

-3

1 / Covers only 30-year f i r s t mortgage bonds, as 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 the amount above
seasoned y i e l d s are averages of o f f e r i n g s during t h e i n d i c a t e d period and of
the 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. The number of new i s s u e s included in the
monthly averages v a r i e s from 2 to b except f o r October 195k when 6 A-rated
i s s u e s were included. 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
to-28 y e a r s .





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102