Full text of H.16 Capital Market Developments : May 23, 1957

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iS/V7
Not for Publication DECOmaoiam

su - M o m s

H.lli

May 23, 1957

CAPITAL MAJRKET DEVELOPMENTS

Large public security offerings issued for new capital
during the week ending May 17, totaled $58 million for corporations
and $85 million for State and local governments. The calendar
for this week includes corporate issues totaling $l6l million and
State and local government issues amounting to $U6 million.
Bond yields - Bond yields increased slightly last week
for all categories of outstanding bonds, except those for U. S.
Government (new series) and Aaa-rated State and local government
obligations, which remained stable.
A new Aa-rated 30-year, first mortgage electric utility
issue was offered to the public on Tuesday to yield L.38 per cent—
12 basis points below that for a comparable offering made last
week. To improve the marketability of the issue, the issuer (Public
Service Company of Colorado) included a 5-year, no-call provision
that was not in the terms of the offering when the issue was registered with SEC. Another utility offering this week, the Interstate Power Company's A-rated issue was offered to investors at a
yield of 5.00 per cent — 30 basis points above that for a similar
offering made late last week.
Stock prices - Stock prices, as measured by the SEC
index of 26^ common stocks, reached a new high for the year last
week, closing at 285.6 on May 17. Daily figures through Wednesday of this week indicate little change on balance in prices.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

Business Finance and Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




EXHIBIT A

H I G H - G R A D E B O N D YIELDS

U. S. Govt., long-term */
Corporate
Aaa 1/

Old series

New series

Spread between
State and
U. S. Govt.
local govt. (old series) and
Aaa y

(Per cent)
3.1*2 (6/19) 3.15 (6/6)
2.99 (1/9) 2.78 (12/26)
3.09 (1/8) 2.71* (1/9)
2.85 (l»/23) 2.1*1* (8/7)
3.17 (12/23) 2.91* (8/5)
2.91 (1/7) 2.62 (1/7)
3.79 (12/28) 3.1*9 (12/21)
3.07 (3/2) 2.80 (2/17)
3.82 (1/W
3.53 (1/1*)
3.66 (UA2) 3.15 (2/8)
3.67
3.69
3.71
3.72
3.73

i
3.35
3.39

n.a.
2.73 (6/25)
n.a.
1.98 (1/8)
n.a.
2.21 (6/10)
n.a.
1.90 (9/2)
3.03 (8/5) 2.31* (9/8) 2.89 (6/10) 2.05 (5/26)
3.39 (12/28)3.05 (12/27)
2.92 (2/3) 2.17 (2/23)
3.1*5 (1/1*) 3.05 (1/10)
3.22 (2/8) 2.76 (2/21)
3.31*
3.1*0

s

2.87
2.96
2.97
2.99
2.99

.38
.19
.1*3
.32
.3U
.13
.1*1*
.13
.51*
.29

.81*
.30
.61
.29
.70
.51*
.68
.32
.1*8
.26

.31*
.33
.36
.37
.31*

.1*6
.1*0
.38
.36
.1*0

1/ Weekly average of daily figures. Average term of bonds included la 25-26
2/ Weekly averages of daily figures. The old series includes fully taxable,
marketable 2 1/2 per cent bonds due or first callable after 12 years through
September 1955, and those due or callable in 10-12 years thereafter; the average
term to first call of the bonds included declined from lit years in early 1953 to
11 1/2 years in early 1956. The new series is comprised of the 3 per cent bond
of 1995 and the 3 1/k per cent bond of 1978-83.
y Thursday figures. Only general obligation bonds are included; average
term is 20 years.
Note.—Highs and lows are for individual series and may be on different dates
for different series.




Date

Corporate
Baa 1/

State and
local govt.
Baa 2/

State and
local govt,
rev. j/

(Per cent)

1957 - High
Low

3.89
3.50
3.7k
3.1*1*
3.63
3.15
h.hl
3.58
a.53
1*.1*2

April 19
April 26
May 3
May .10
May 17

14.1*5
1*.1*8
a. 50
U.53

1953 - High
195U - High
1955 - High
1956 - High

(9/18)
(1/2)
(1/8)
(12/31)
(12/30)
(1/llt)
(12/28)
(3/9)
(5/17)
(1*/12)

h.hk

3.79
2.96
3.32
2.93
3.26
3.02
h.22
3.20
h.22
3.90
3.93

Loo

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)
(1/6)
(12/27)
(3/8)
(1/10)
(2/21) ...
-

3.27(6/26)
2.71 (1/2)
3.00 (1/1)
2.72 (8/13)
2.99 (12/30)
2.76 (1/7)
3.98 (12/28)
2.89 (2/21*)
3.98 (1/1*)
3.70 (2/22)

V

li.03

a.05
-U.06

1/ Weekly average of daily f i g u r e s . A v e r a g e terra of bonds
included is 26-26 years.
2/ Thursday figures. Only general obligation bonds are included; average term is 20 years.
3/ Friday figures. Average rating of bonds included is
between Baa and A; average term is 20 years.
h/ Series discontinued, as of March 15.
Note.—Highs and lows are for individual series and may
be on different dates for different series.




STOCK MARKET

1953

1954

Stock price
index 1/

1955

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

1956

1957

Stock market customer credit
Customers1
debit bal- loans to
ances h/ "others" Sf

Total

(Millions of dollars)

1956 - High
Low
1957 - High
Low

167.1 (1/2)
lWt.O (9/18)
221.1* (12/31)
156.5 (1/6)
270.7 (12/30)
217. a ( 1 M )
295.5 (8/3)
257. U (1/20)
285.6 (5/17)
260.3 (2/8)

2.5
0.9
3.7
l.li
1*.6
1.5
3.1
1.5
2.7
1.6

5.88
5.15
5.U9
1.09
In 23
3.59
L13
3.65
L. 28
3.89

2,1*5
2,055
3,U36
2,105
1,030
3,537
l*,0l*7
3,911*
3,938
3,832

1,665
1,311*
2,388
1,653
2,805
2,517
2,823
2,71*0
2,792
2,713

780
661*
1,01*8
71*6
1,21*1
1,018
1,267
1,155
1,163
1,117

April
May 3
May 10
May 17

265.1
273.3
281.3282.2
285.6

1.7
2.3
2.1*
2.1*
2.6

14.16
3.96
3.89
3.89
3.83

3,832
3,938

2,713
2,792

1,119
1,11*6
1,11*5
1,11*1

1953 - High
Low
1951* - High
Low
1955 - High

n.a.—Not available.
"
1/ SEC index of 265 common stocks, weekly closing prices, 1939=100; converted.
to 191*7-1*9-100 by Federal Reserve. The conversion factor is 123.91.
2/ Averages of daily trading volume on the W ew York Stock Exchange.
3/ Moody's 125 industrial stocksj weekly data based on Friday.
h/ End of month figures for member firms of the New York Stock Exchange which
carry margin accounts; excludes balances secured by U. S. Government obligations.
%/ Wednesday figures for weekly reporting menber banks. Excludes loans for
purchasing or carrying U. S. Government securities 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 for individual series and may be on different dates
for different series.




a.ih

Exhibit D
Corporate and State and local Government
Security Offerings and Placements
(In millions of dollars)
New capital
State and local

Corporate

1957
January
February
March

1.063
1,071

i.;w»

I

1956
579
704
790

April
May
June

816
1,11*4

JulyAugust
September

1,066

quarter
quarter
quarter
quarter

2.073
2,789
2,571
2,929
4,862
7,432
10,362

1st half
Three quarters
Year

1957

535
407

685

1956

| 1955

4o4

535
312
538

378
490
735

I427
&°

670

376
199
333

470
2li9
4o6.

1,1621/
6g2
900

645
311
U26

919
658
408

e/750
V550

6UU

,

1

696
390

478
886
687

l.oea!/
1,094
3.479

1955

1,223

830

October
November
December
list
End
3rd
4th

1

2,165
2,052
1,911
2,695

e/1,751

4,216
6,127
8,821

1.603

908
1,382

1,385
1,418
1,124
1,984

3,093
4,001
5,383

2,803
3,927
5.911

1,490

Excluding finance companies J>j
1st
2nd
3rd
Uth

quarter
quarter
quarter
quarter

3.251

Year

1,617
2,519
2,263
2,834

1,727
1,870
i,m
2,554

9,233

7,595

-

e/ Estimated.
—
V Includes $637.2 million AT&T convertible debenture issue.
2/ Includes $ 5 7 1 . 5 million AT&T common stock issue.
j / Total new capital issues excluding offerings of sales and consumer finance
companies.
Note.—Details may not add to totals due to rounding.




I

H.-lU

w

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

1956 - April
May
June
July
August
September
October
November
December
1957 - January
February
March
April

State and
local government

50

157
233
463
16 4
35
18V
383
135
201
386
306
194
499

395
623
185
592
217
558
386
701
1*30
567
671
788
477

Other 2/

20
37
35
-

100
50
125

Large Individual Issues Offered May 1 through 17
Issuer

Type y

Amount
Coupon
(millions Maturity rate or Offering Rating
of
net inter- yield
est cost
dollars)

CORPORATE
Pacific Great Eastern Ry. S. F. deb.;
20.0
1982
Cincinnati Gas & Elec. Co, lst-mtgbds.. .25.0 . .1987

4 3/8
4 1/8.

4.61
4.17

bds.
18.0
N. Y. State Elec. & Gas.Co, 1st mtg. bds. 25.0
Florida Power & Light Co. 1st mtg. bds. 15.0

1987
1987
1987

4 7/8
4 5/8
4 5/8

4.70
4.53
4.50

1958-72
1961-85
1960-96
1958-2007
1958-76

2.94
3.78
n.a.
3.15
3.36

Central Maine Power be.

lst&gen.mtg.

A
. Aaa —
A
A
Aa

STATE AND LOCAL GOVERNMENT
State of Ohio
New York St. Power Auth.
Melbourne, Florida
Cincinnati, Ohio
Chicago, Illinois




G.O.
60.0
Rev.
6.8
Wtr. & swr. rev. 6.8
G.O.
15.1
G.O.
12.5

2.00-2.95
3.00-3.75
3.50-5.00
2.10-3.20
2.50-3.55

Aaa

Aaa
A

H.lii

E-2

Large Individual Issues Offered May 1 through 17 (Cont'd)
Issuer

Type

Amount
Coupon '
(millions Maturity rate or
Offering
net inter- yield Rating
of
dollars)
est cost

STATE AND LOCAL GOVERNMENT
(Cont'd)
Shelby Co., Tennessee
G.O.
Territory of Hawaii
G.O.
Tulsa Ind. Sch. Dist. No 1
Oklahoma
G.O.
State of North Dakota
G.O.
State of Massachusetts
G.O.
State of Washington
Fuel tax rev.
State of Washington
Sales tax rev.

6.8 1958-82
llt.O 1960-77

3.12
3.71

2.15-3.20
2.85-3.75

Aa
A

5.o 1959-72
9 . 0 1958-69
19.1 1958-2007
20.7 1957-76
10.0 1958-77

3.30
2.83
3.21*
3.96
3.71

2.50-3.30 A
2.10-2.90 • Aa
2.10-3.W Aa
2.25-3.85 A
2.60-3.60 Aa

25.0

h 3/8

OTHER
British Columbia Pwr. Comm. S. F. deb.

1987

a. 50

A

n.a.—Not available.
1/ Includes corporate and other security offerings of $15 million and over;
State and local government security offerings of $5 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues.
j
In the case of State and local government securities, G.O. denotes general
obligationj Rev., revenue bonds; G.R., general obligations additionally secured by
facilities revenues; L.L., limited liability obligations secured by pledge of
designated revenues.




.

Exhibit F

H.lU

Forthcoming Large Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
Date of
computation
1956 - Apr. 30
May 31
June'29
July 31
Aug. 31
Sept. 28
Oct. 31
Nov. 30
Dec. 31
1957 - Jam 31
Feb. 28
Mar. 29
Apr. 30

Subsequent to
During month following
date shown
date shown
•
State and
|°*her 2/
Corporate local govt. Other 2/ Corporate
568
198
1*37
2U7
369
315
683
1+36
476
591
71*0
I16I

187

173
332
81
——

131
359
162

1*8
280
153
153
290
179

__
•*—

37

23
100
35
25
25

818
as.
567

832

9bl

• 690

726
#8

1,096
1,202

1,009
990
181
7#

" I979s

763
61*8
631

966

795

I186

258

•

862

396

37

23
100
35
25
. 25

Forthcoming Large Offerings, as of May 1?
Type

Amount
(millions Approximate date
of dollars) of offering

CORPORATE
Public Service Co. of Colorado
New York Telephone Co.
Acme Steel Co.
Niagara. Mohawk Power Corp.
Interstate Power Co.
National Fuel Gas Co.
• Tennessee Gas Transmission Co.
Boston Edison Co.
^Southern Calif. Edison Co.
General Telephone Co. of Calif.
,Columbia Gas System, Inc.
- Georgia Power Co.
General Telephone Corp.

30.0
1st mtg. bds.
70.0
Ref. mtg. bds.
22.0
S.F. deb.
20.0
Pfd. stk.
18.5
1st mtg. bds.
15.0
Deb.
1st mtg. P.L. bds. 50.0
25.0
1st mtg. bds.
30.0
Cum. pfd. stk,
20.0
1st mtg. bds.
20.0
Deb.
15.5
1st mtg. Dds.
Conv. deb.
hh.5

1st mtg. bds.
Metropolitan Edison Co.
Common stk.
International Business Machines Corp.

19.0
231.0

S.F. deb.
1st mtg. bds.
1st mtg. bds.

30.0
20.0

.Consolidated Natural Gas Co.
Michigan Wisconsin Pipe Line Co.
•M-Puget Sound Power & Light Co.




25.0

May 21
May 22
May 23'
May 23
May 23
May 29
May 29
June 5
June 5
June 6
June 7
June 7
June 10
(rights expire)
June 10
June 10
(rights expire)
June 12(
June 13
June 25

Forthcoming Large Offerings, as of May 17 (Cont'd)
Issuer

Type

Amount
Approximate date
(millions
of dollars) of offering

STATE AND LOCAL GOVEIiNMENT
Boston, Massachusetts
State of Tennessee
King Co., Sch. Dist. No. 1, Wash.
Yonkers, New York
Washington Sub. Sanitary Dist., Md.
State of Maryland
State of Texas
State of Mississippi
•Tacoma, Washington
Columbus, Ohio'
Los Angeles, California
State of Louisiana
*San Antonio, Texas
State of Ohio .
^Pittsburgh, Pennsylvania
•frSan Diego, California
Jacksonville, Florida
Louisville & Jefferson Cos. Sewer
Dist., Kentucky
. University System Bldg. Auth., Ga.
Pennsylvania Turnpike Commission
Inter-American Center Auth., Jlorida
New York State Thruway Authority
Oklahoma Turnpike Authority

G.O.
5.3
G.O.
10.0
G.O.
15.0
6.1
G.O.
G.O.
9.U
G.O.
9.8
G.O.
12.5
G.O.
• 10.0
Lt. & pwr. rev.
5.0
G.O,
5.2
Elec. rev.
15.0
16.0
. G.O.
Water rev.
13.9
Highway rev.
32.0
G.O.
5.2 .
G.O.
5.0
Utilities rev.
30.0
Rev.
Rev.
Rev.
Rev.
G.O.
Rev.

8.0
12.0
62.0
20.0
50.0
65.0

May 21
May 22
May 22 .
May 22
May 23
May 28
May 28
May 29
June U
June k
June 5
June 6
June 6
June 12
June 12
June 13
1957
1957
1957
1957
1957
1957
1957

OTHER
None
*-•-Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and •
local government issues of $5 million and over.
2/ Includes foreign government and International Bank for Reconstruction
and Development issues.
Note.—Deletions for reasons other than sale of issue: None.




Exhibit G

II. Ill

Yields on New and Outstanding
Electric Power Bonds, Rated Aa and A 3/
Date
1952 - 1956
High
Low
1956 - January
February
March
April
hay
July
August
September
October 10
31
November 21
December 6
12
1957 - January 8
16
18
22
2k
February 5
19
27
March 6
12
20
29
April 3
10
12
May 10
. 15
16

Aa-rated offering yields A-rated offering yields
Amount above
Amount above
Actual
Actual
(per cent) seasoned yields (per cent) seasoned yields
(basis points)
(basis points)
U.30(12/12/56)
2.93(3/31/51) .

62
-3

None
*3.15
3.28
*3.77
*3.53
*3.52
3.66
*L07 '
U.13

3
11
ko
19
18
29
52
53

it. 20
1.30

Ii8
52

lw30

hi

1.50

62

lt.li3

56

it.itO
In 29
1.25
It. 22

53
15
he
h3

U.29

50

1.50

65

U. 58 (12/6/56 )
3.00(3/l7/5U)
None
3.23
3A5
3.61
3.76 .
*3.75
*3.82
eli.00
None
it.itO •
14.58

70
-15
- 6
15
26
28
27
28
it3
63
70

1.67

70

L56

57

h.hl
it. 58
lt.55
it. 15

35
52
h9 '
it3

it.6o
U.5o
li.53
L53
it. 70

59
. It9
52
52
69

*—Single observation, not an average.
1/ Covers only 30-year first mortgage bonds, as reported in Moody's Bond
Survey. Except where indicated, the actual yield figure and the. amount above
seasoned yields are averages of offerings during the indicated period and of
the differences between these new offering yields and yields on seasoned issues
of similar quality for the same day. Average maturity for the seasoned issues
varies from 26 to 28 years.