Full text of H.16 Capital Market Developments : May 11, 1955

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

d e c 0 N T B 0 L LED

AFTER SIX MONTHS

H.lit

May 11, 1 9 #
CAPITAL MARKET DEVELOPMENTS

Lone p u b l i c o f f e r i n g l a s t week - Only one l a r g e i s s u e , a
6 . 6 m i l l i o n d o l l a r S t a t e and l o c a l government o f f e r i n g , was f l o a t e d
f o r new c a p i t a l during t h e week ending May 6 . Large p u b l i c i s s u e s
scheduled f o r i s s u e t h i s week, t o t a l 111 m i l l i o n d o l l a r s f o r c o r p o r a t i o n s and 36 m i l l i o n f o r S t a t e and l o c a l governments.
Bond y i e l d s - Yields on o u t s t a n d i n g c o r p o r a t e Aaa bonds
r o s e one b a s i s p o i n t during the week ending May 6 . Yields on U. S .
Government l o n g - t e r m , S t a t e and l o c a l government Aaa, and lowergrade c o r p o r a t e and municipal bonds remained s t e a d y .
According t o d a i l y f i g u r e s , y i e l d s on c o r p o r a t e Aaa and Baa
bonds i n c r e a s e d s l i g h t l y on Monday and were s t a b l e on Tuesday of
t h i s week. Y i e l d s on Treasury o b l i g a t i o n s d e c l i n e d s l i g h t l y on
both d a y s .
Stock p r i c e s - The SEC index of 265 common s t o c k s r o s e t o
a new high l a s t week. Trading volume was low. During t h e p e r i o d
of r a p i d l y r i s i n g stock p r i c e s preceding the r i s e i n margin r e q u i r e ments from 50 t o 60 per c e n t , t h a t i s , from e a r l y November t o J a n uary it, d a i l y t r a d i n g volume averaged 3 . 5 m i l l i o n s h a r e s . . From
January 5 t o A p r i l 22, t h e p e r i o d i n which margin requirements r e mained a t 60 per c e n t , d a i l y volume averaged 3 . 1 m i l l i o n s h a r e s .
Since A p r i l 23, average t r a d i n g volume has been only 2 .It m i l l i o n
s h a r e s a day.
More d e t a i l e d i n f o r m a t i o n concerning r e c e n t c a p i t a l market
developments w i l l be found in t h e a t t a c h e d e x h i b i t s .

Business Finance and C a p i t a l Markets S e c t i o n ,
D i v i s i o n of Research and S t a t i s t i c s ,
Board of'Governors of the F e d e r a l Reserve System.




HIGH-GRADE

I O H D YIELDS

Weekly

CORPORATE A e o

U. S. GOVERNMENT

STATE A N D LOCAL
GOVERNMENT A g o

.50

M
1953

Date

Corporate
Aaa y

U. S . Govt,
long-term 2 /

State and l o c a l
g o v t . , Aaa j /

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

(Per cent)
1952 - Higi

1955 - High
Low.

3.03
2.91
3.12
2.99
3.09
2.85
3.01
2.91

April
April
April
April
May 6

3.01
3.01
3.01
3.01
3.02

1953 - High
Low
1954 - Kigfr

8
15
22
29

(1A)
(2/15)
(6/19)
(1/9X
(1/8)
(1/23)
(3/11)
(1/7)

2.79
2.56
3.15
2.78
2.7k
2M
2.77
2.62
2.77
2.76
2.77
2.77
2.77

(12/27)
(5/17)
(6/6)
(12/26)
(1/9)
(8/7)
(5/6)
(1/7)

.

2.00
1.65
2.73
1.98
2.21
1.90
2.11
2.06
2.09
2.08
2.08
2.08
2.08

(10/23). .
(5/D
(6/25)
(1/8)
(6/10)
(9/2)
(2/10)
(1/6)

,

.37
.19
.38
.19
•h3
.32
•3U
.21

1.02
.71
.81*
.30
.61
.29
.69
.51i

. .21;
.25
.2U
.2U
.25

.68
.68
.69
.69
.69

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
years.
2 / Weekly average of d a i l y f i g u r e s j old s e r i e s . Average term t o f i r s t c a l l
of bonds included i s 13-lit years.
3 / 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 ahd 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 .




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

CORPORATE l a .

V A STATE A N D LOCAl GOVT.

STATE A N D LOCAL GOVT

Corporate
Baa 1/

Date

REVENUE

State and
l o c a l govt.
Baa 2 /

State and
l o c a l govt,
revenue' 3 /

(Per cent)
1952 - High
Low
1953 - High
Low
19$k - High
1955 - High
Low

3.63
3.18
3.89
3.50
3.7k
3.1*1*
3.1*9
3.1*5

April
April
April
April
May 6

3.1*8
3.1*8
3.1*8
3.1*9
3.1*9

8
15
22
29

(1A)
(5/16)
(9/18)
(1/2)
(1/8)
(12/31)
(5/6)
(1/1U)

2.98
2.1*8
3.79
2.96
3.32
2.93
3.08
3.02
3.08
3.08
3.08
3.08
3.08

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

2.69
2.27
3.27
2.71
3.00
2.72
2.80
2.76

(12/19)
(l*/25)
(6/26)
(1/2)
(1/1)
(8/13)
(1/15)
(1/7)

2.80
2.80
2.78
2.78
2.78

included i s 25-26 years.
2 / Thursday f i g u r e s . Only general obligation bonds are
included; average term i s 20 years.
3 / Friday f i g u r e s . Average rating of bonds included i s
between Baa and Aj average terra i s 20 years.
Note.—Highs and lows ar,e for 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 .




STOCK MARKET

Millions of Dollars. Weekly

STOCK MARKET CREDIT

Date

Stock p r i c e

Common
Trading
volume 2/
stock
(millions yields 2 /
of s h a r e s ) (per c e n t )

S t o c k market c r e d i t
Customers'
debit b a l - loans to
a n c e s 4 / " o t h e r s " jy

Total

( M i l l i o n s of d o l l a r s )
1952 - High
Low
1953 - High
1954 - High
1955 - Higfr
Low
March
April
A p r i l 22
A p r i l 29
May 6

165.3
151.7
167.1
144.0
221.lt
156.5
234.0
217.4

(12/26)
(10/24)
(1/2)
(9/18)
(12/31)
(1/6).
(5/6)
(1/llt)

225.6
231.1

.232.9
233.6
234.0

2.0
0.9
2.5
0.9
3-7
1.4
4.6
2.3

5.77
5.13
5.75
5.15
5-33
4.20
4.22
4.12

2.9
2.7
2.9
2.6
2.3

4.21
4.12
n.a.

•

1,986
1,332
1,804
1,241
1,665
2,445
2,055
1,314
3,436
2,388
2,405
1,653
3,732 , 2,652
2,517
3,537

656
552
780
664
1,048
746
1,081
1,018

2,652
n.a.

1,080
1,081
1,070
1,081
n.a.

3,732

1 / SEC i n d e x o f 26$ 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 19^7-49"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 New York S t o c k E x c h a n g e .
3 / I'.oocy's 2 0 0 common s t o c k s ; end o f month f i g u r e s .
F / End of month f i g u r e s f o r member f i r m s of t h e Hew York S t o c k Exchange which
c a r r y . m a r g i n a c c o u n t s ; e x c l u d e s money borrowed f o r c a r r y i n g U. S . Government o b l i gations .
"Vednesday 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 member b a n k s . E x c l u d e s a l l l o a n s
on U. S . Governments f o r 1 9 5 2 ; s i n c e 1953 o n l y l o a n s s e c u r e d b y Governments a t
banks i n New York and C h i c a g o a r e e x c l u d e d . Weekly r e p o r t i n g banks a c c o u n t f o r
a b o u t 72 p e r c e n t of l o a n s t o o t h e r s .
n.a.—Not available.
Note.—Ki(;hs and l o w s a r e f c r i n d i v i d u a l s e r i e s "and may b e on d i f f e r e n t d a t e s
for different series.




Exhibit D

H.lU

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 )
Corporate
I
January
February
March
April
May
June

19b,1

19^5
535

544
439
660

623
623
666

e/500
e/750

486
6#
859

779
675
1,123

898
346
776

October
November
December

r
.

i

e/UB6
^/350
2/1,220

July
August
September

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

New c a p i t a l

e/2,05^

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

1953

396
411
565

389
360
426

734
71*8
853

329
649
434

483
325
;753

279
261
649

519
259
475

1,008
298
592

577
429,.
l,U3t5/

594
123
877

453
408
774

1,61*3
1,998
2,021
1,899
7,561

1,912
2,57o

1,372
'2,334
1,188
1,894
6,789

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

WlO
e/425
e/300

Vl,385

: : & /
3,495

Excluding finance ccmpanies 2/
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
1 /

e/l,6S5

1,562
1,931
1,941
: 1,795
7,229

I nr»~l n r l e f i A()9 - 1 mi ] 1 i nri rjnl l a y

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

AH^T ridhont.iwo

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.
e / Estimated.
Note.—Details may not add t o t o t a l s due t o 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 I s s u e s Offered
(Millions of d o l l a r s )

Month

Corporate

c/l66

195U - A p r i l
May
June
July
August
September
. October.
. November
December
1955 - January
February
March
April

3Zh

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

350
336
75
335
Ul3
0
91*
ua
72
.750
175

Other 2 /

__

557
557
603
92
86
1J55
388
268
689
3U1
, 107
337
238

30
35
15

Large I n d i v i d u a l Issues Offered May 2 through 6
Issuer

Type 3 /

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

CORPORATE

STATE AND LOCAL GOVERNMENT
Wash. Tvro.-liarion Co.,
Sch. Bldg. Corp., Ind.

6.6

1957-77

3.02

1.80-3.05

—

OTHER

-

,

. y Includes corporate and other s e c u r i t y o f f e r i n g s of l £ million 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 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 .
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 general
o b l i g a t i o n ; Rev., revenue bonds; and, 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
of designated revenues.
Digitizedbyforpledge
FRASER
c / Sorrected.



Exhibit F

H.lii

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
1954 - Apr. 30
May 28
June 30
J u l y 30
Aug. 31
S e p t . 30
Oct. 29
Nov. 30
Dec. 31
1955 - Jan. 31
Feb . 28
Mar. 31
Apr. 29

During month following
date shown
S t a t e and Other 2 /
Corporate
l o c a l govt.
323
332
336
100
33k

343
15
91*
184
16
710
211
425

525
596
86
54
300
383
436 .
66l
567
682
524
208
116

27

30

Subsequent t o
date shown
S t a t e and
Corporate
l o c a l govt.
647
526
5%
303
608
4i4
135
246
216
. 422
1,395
922
1,141

Other 2

2,322
1,971
1,524 .
1,553
1,876
2,158
1,957
2/%
2,144
1,961
1,978
2,009
1,917

27

30
30
35

Forthcoming Large O f f e r i n g s , as of May 6
Amount
(millions Approximate date
of o f f e r i n g
of d o l l a r s )
CORPORATE
Public Service of Indiana, I n c .
P a c i f i c Northwest Pipeline
American Trust Co.
Transamerica Corp.
Ohio Edison Co.
«/. R. Grace
Bethlehem S t e e l Co.
Alabama Paver
•KDetroit Edison
^Lockheed A i r c r a f t Corp.
•K-Virginia E l e c t r i c and Power
Southern C a l i f o r n i a Edison
Consolidated Natural Gas
^•Peoples Gas Light & Coke
American Telephone and Telegraph
Southern C a l i f o r n i a Gas Co.




Efd. stock
21.3
Common stock
•15.5
Common stock
19.5
Common stock
54.5
1 s t mtg. bonds
30.0
Conv. sub. deb.
30.0
Conv. deb.
191.7
1 s t mtg. bonds
15.0
Genl.&ref. mtg.bds.
60.0
Conv. sub. deb.
30.0
I s t & r e f . mtg. bds.
25.0
Conv. deb..
41.0
Common stock
25.1
Coinnon stock
15.5
Conv* deb.
650.9
Bonds
40.0

May 9
Hay 9
May 10
May 10
May 17
May 18
May 23
May 2 h
May 2k
May 25
June 7
June Hi
June
June
1955
1955

H.lii

F-2
Forthcoming Large O f f e r i n g s , as of May 6 (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 AND LOCAL GOVERNI.ENT .
C i n c i n n a t i , Ohio
Los Angeles, C a l i f o r n i a
Louisiana S t a t e Building Authority
S t a t e of Maryland
. Memphis, Tennessee
S t . Paul, Minnesota
*Port of New York Authority
Chicago, Illinois
Allegheny County, Pennsylvania
-Oakdale, C a l i f o r n i a
South San Joaquin, C a l i f o r n i a
F l o r i d a S t a t e Turnpike Authority
„ Inter-American Center Auth., F l a .
Michigan Turnpike Authority
-State of Louisiana
I l l i n o i s Turnpike Authority
Connecticut Expressway
Texas Turnpike Authority
Sam Houston Turnpike Corp.
Texas Turnpike Company
. Dade County Port Authority, F l a .
Springfield, Illinois
Allegheny County, Pennsylvania
S a n i t a r y Authority
C a l i f o r n i a T o l l Bridge Authority
Jersey City Sewerage Auth,, N. J .
North Carolina Turnpike Authority

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

Rev.
n.a.

19.7
6.0
9.9
11.3
8.3
6.9
30.0
6.0
5.5 •
20.8
20.8
7U.0
60.0
186.0
80.0
390.0
100.0
58.5
11*6.0
11*0.0
21.0
9.0
85.0
235.0
16.0
200.0

'

.

May 10
1-lay 11
May 12
May 17
May 17
May 18
May 23
May 2k
May 2 It
May 25
l a y 25
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955
1955

OTHER
None
1/ Includes corporate and other i s s u e 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 i s s u e s of 5 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 .
n.a.—Not a v a i l a b l e .
*—Included in t a b l e f o r f i r s t t i m e .