Full text of H.16 Capital Market Developments : November 28, 1956

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Not for Publication DECONTROLLED AFTER SIX MOUTHS
H.lli

November 28, 1956

CAPITAL MARKET.DEVELOPMENTS
The volume of large publicly offered securities was quite
small l a s t week and is expected to be even smaller this week. During the week ending November 23, two State and local government
offerings totaling $28 million were floated. A local government
offering for $6.1: million i s the only issue scheduled for sale this
week. , No large corporate issues were sold last week or are scheduled
for sale this week.
.
Bond yields - Bond yields increased sharply l a s t week for
a l l categories of outstanding bonds, except that for U. S. Government (new series) obligations, which remained stable. Corporate
yields increased four basis points, while the series customarily
used here in reporting developments in State and local government
bond yields (Moody's) increased thirteen basis points for the Aaarated bonds and those for the Baa's rose ten'points. It should be
noted that other State and local government bond yield series did
not increase as sharply as did the Moody's series.
Stock prices - Stock prices, as measured by the SEC index
of 265 common stocks, declined 3.0 points last week, closing at
269.9 on November 23. The volume of trading picked up, averaging
2.3 million shares a day. Daily figures through Wednesday of this
week indicate a further decline in prices.
More detailed information .concerning recent capital market
developments i s presented in the attached exhibits.

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.




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

CORPORATE Acta

%
\

M

R

/

V

I010

U. S. GOVERNMENT:

STATE AND LOCAL
GOVERNMENT A a a

U. S
Corporate
Aaa 1/ •

Old series

long-term '£/
New s e r i e s

Spread between.
S t a t e and
U. S. Govt,
l o c a l govt. (old s e r i e s ) and
C o r p o r a t e l S t a t e and
Aaa 3/
Aaa
J l o c a l Aaa

( p e r cent)
1953 - High
Low
195U - High
1955 - High
Low
1956 - High
Low .

3.h2
2.99
3.09
2.85
3.17
2.91
3.71
3.07

October 26
November 2
November 9
November 16
November 23

3.61
3.65
3.66
3.67
3.71

(6/19)
(1/9)
(V8)
U/23)
(12/23)
(1/7)
(11/23)
(3/2)

(6/6)
n.a.
(12/26)
(1%)
(8/7)
2.9b (8/5) 3 . 0 3 (8/5)
2.62 (1/7) 2.89 (6/10)
3.30 (11/23) 3.29 (11/23)
2.80 (2/17) 2.92 (2/3)

2.73
1.98
2.21
1.90
2.3k
2.05
V98
2.17

3.22
3.26
3.27
3.26
3.30

2.72
2.71
2.79
2.85
2.98

3.15
2.78
2.71
2.Ill;

3.27
3.29
3.29
3.29
3.29

(6/25)
(1/8)
(6/10)
(9/2)
(9/8)
(5/26)
(11/22)
(2/23)

.38
.19
.13
.32

.3h

.81
.30
-.61
.29
.70

.13

. .68
.32 .

.13

.39
.39
.39
.ia
.ia

.5k

.50
.52
.1*8
.la
.32

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 averages of d a i l y f i g u r e s . The old s e r i e s includes f u l l y t a x a b l e ,
marketable 2 1/2 p e r cent bonds due or f i r s t c a l l a b l e a f t e r 12 y e a r s through
September 1955, and t h o s e due or c a l l a b l e in 10-12 y e a r s t h e r e a f t e r ; the average
term t o f i r s t c a l l of t h e bonds included declined from Ik years in e a r l y 1953 t o
11 1/2 y e a r s in e a r l y 1956. The new s e r i e s i s comprised of the 3 per cent bond
of 1995 and t h e 3 l/U per cent bond of 1978-83.
3 / Thursday f i g u r e s . Only general o b l i g a t i o n bonds a r e included; average
term i s 20 y e a r s .
Note.—highs and lows a r e 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'
for different series.




LOWER - GRADE BOND YIELDS
Weekly

CORPORATE

STATE AND LOCAL GOVT. Baa
/l1
i Moody1. |
|

I

I

I

STATE AND LOCAL GOVT. REVENUE

M , j
S
1956

Date

Corporate Baa 1/

State and
local govt.
Baa 2/

D

State and
local govt,
rev. 3/

(Per cent)
1953 - High
Low
195k - High
Low
1955 - High
Low
1956 - High
Low

3.89
3.50
3.7k
3.UU
3.63
3.1t5
It. 26
3.58

October 26
November 2
November 9
November 16
November 23

lt.l8
it. 20
It. 21
It. 22
L. 26

(9/18)
(1/2)
(1/8) (12/31)
(12/30)
(1/Ut)
(11/23)
(3/9)

3.79
2.96
3.32
2.93
3.26
3.02
It.09
3.20
3.77
3.82
3.89
3.99
It.09

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)
(1/6)
(11/22)
(3/8)

3.27
2.71
3.00
2.72
2.99
2.76
3.91
2.89

(6/26)
(1/2)
(1/1)
(8/13)
(12/30)
(1/7)
(11/23)
(2/2U)

3.6U
3.71
3.80
3.87
3.91

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




EXHIBIT C

STOCK MARKET

Stock p r i c e

Trading
Common
volume 2 /
(millions yields 3/
of s h a r e s ) ( p e r c e n t )

Stock m a r k e t c u s t i Dmer c r e d i t
Bank
Customers 1
debit b a l - loans to
ances h / "others" 5 /

Total

( M i l l i o n s of d o l l a r s )

1955 - H i g h
Low
1956 - High
Low

167.1
ia.0
221.14
156.5
270.7
217.1*
295.5
257.U

September
October
November 9
November 16
November 23

278.2
275.7
275.7
272.9
269.9

1953 - High
195U - High

(1/2)
(9/18)
(12/31)
(1/6)
(12/30)
(1/1it)
(8/3)
(1/20)

2.5
0.9
3.7
l.lt
Ii.6
1.5
3.1
1.5

5.75
5.15
5.33
It. 20
It.22
3.78
It. 21*
3.86

2,ltlt5
2,055
3,1*36
2,lt05
It,030
3,537
it,0lt7
3,911t

1,665
1,311*
2,388
1,653
2,805
2,517
2,810
2,71*0

780
661t
l,0lt8
7li6
l,2ltl
1,018
1,267
1,158

2.0
1.8
2.3
2.0
2.3

lt.2lt
It.23

3,950
3,91It

2,782
2,71*8

n.a.

n.a.

n.a.

1,168
1,166
1,159
1,158
n.a.

n.a.—Not available.
1 / SEC i n d e x of 26$ common s t o c k s , weekly c l o s i n g p r i c e s , 1939=100; c o n v e r t e d
t o 1957-1*9=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 Stock Exchange.
3 / Moody's 200 common s t o c k s ; end of month f i g u r e s .
It/ End of month f i g u r e s f o r member f i r m s of t h e New York Stock 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 b a l a n c e s s e c u r e d 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 r e p o r t i n g member b a n k s . E x c l u d e s l o a n s f o r
p u r c h a s i n g o r c a r r y i n g U. S. Government s e c u r i t i e s a t banks in New York a n d C h i c a g o .
Weekly r e p o r t i n g b a n k s 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 o t e . — H i g h s and lows a r e 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 d a t e s
for different series.




H.IU
Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

1956
January
February
March
;

Corporate
i s r
i

New capital

State and local
1 19ZT

"1955"

1956

5U7

UoU
696
390

535
312
538

396
411
565

195U

579
704
790

535
407
1,223

April
May
June

816
1,144
830

478
886
687

497
656.
812

377
190
735

427
350
61+1

734
748
853

July
August
September

1,066
669

597
6Wi
670

909
335
747

376
199
. 333

470
249
4o6

279
261
649

919
658
408

594
423
877

1,385
1,418
2,803
1,124
3,927
1,984
5,911

1,372
2,334
3,706
1,188
4,894
1,894
6,789

October '
November
December
1st quarter
2nd quarter
1st half
3rd quarter
Three quarters
Uth quarter
. Year

1,162
632
900
2,073
2,790
4,863
2,571
7,434

2,165
2,052
4,217
1,911
6,128
2,695
8,821

1+26

635

1/

1,003
290
6o4
1,608.
1,995
3,603
1,991
5,59k
1,896
7,1:90

i @ i
1,190
1,603
3,093
908
I** 001

Excluding finance companies 3/
1st quarter
2nd quarter
3rd quarter
4th quarter
Year

1,617
2,520

2,26)

1,727
1,870
1 ,li3U
2,554
7,569

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

e/ Estimated.
1 / Includes $637•2 million AT&T convertible debenture issue.
2/ Includes $571*5 million AT&T common stock issue.
3/ Total new capital issues excluding offerings of sales and consumer finance
companies.
Note.—Details may not add to t o t a l s due to rounding.




H.lii

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

Month

Corporate

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

State and
local government

805
221
263
95
212
278
395
623
185
592
217
558
386

716
liOl
' 227
192
1M
163
157
233
163
16U
35
- 18U
383

Other 2/
__

.25
50

50
20
—

37
-

35

i
Large Individual Issues Offered November 1 through November 23
Issuer

Type 3/

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

CORPORATE
Allied Stores Corp.
S.F. deb.
15.0
American Tel. & Tel. Co. Common stk. 571.5
Northspan Uranium
Mines, Ltd.
Gen.mtg. bds. U5.o
Public Service Electric
and Gas Co.
1st & ref.
mtg. bds.
5o.o
Pacific Lighting Corp.
Conv. pfd.
19.8

-

1976

h 3/k

It-. 75.

1963

5 3A

5.93

1986

4 3/8

it. 30

A

Aa

STATE & LOCAL GOVERNMENT
Los Angeles, Calif.
Trenton, New Jersey
San Antonio, Texas
Chicago, 111.

Elec. rev.
• G.O.
G.O.
Water rev.




13.5
5.3
5.0
5.0

1957-86
1957-81
195.7-76
:1970-7U

3.36
2.99
3.57
3.73

2.25-3.35
2.10-3.00
2.1*0-3.60
z
3.50-3.65 /

Aa
Aa
A
A

H.lU

E-2

Large Individual Issues Offered November 1 through November 23 (Cont'd)
Issuer

Type 3/

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

STATE & LOCAL GOVERNMENT
(Cont'd)
Newark, N. J.
Chicago Board of
Education, 111.
Cleveland, Ohio
-State of Oregon
Houston, Texas .'
<
Hempstead School Dist r i c t No. 5, N. Y.
Long Beach, Calif.
Chelan Co. Public Utility D i s t . , Wash.

G.O.
G.O.
Water rev.
G.O.
G.O.
G.O.
G.O.
Rev.

12.5

1957-76

3.59

2.50-3.55

A

10.0
7.h
- 5.7
20.0

1959-76
1961-81 •
1969-71
1958-82

3.62
3.58
3.06
3.75

2.75-3.60
3.00-3.56
2.90-3.00
2.60-3.75
k/
3.95-U.15
2.50-3.1*5

A
A
Aa A

5.6
1957-86
... 5.0 . 1958-81
23.1

1992

a. 30
3.35
n.a.

U.82

Baa
Aa
—

OTHER
None
1/ Includes corporate and other security offerings of §15 million and over5
State 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
obligation5 Rev., revenue bondsj G.R., general obligations additionally secured
by f a c i l i t i e s revenues; L.L., limited l i a b i l i t y obligations secured by pledge of
designated revenues.
U/ 1957-62 maturities not reoffered.
n.a.—,Not a v a i l a b l e .




„

Exhibit F

H.1U

Forthcoming -Large Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
During month following
date shown
Corporate State and Othpr 2/
local govt.

Date of
computation

202
215
70
176
123
380
568
198
h37
2k7
369
315
683.

1 9 # - Oct. 31
Nov. 30
Dec. 30
1956 - Jan. 31
Feb. 29
Mar. 30
Apr. 30
May 31
June 29
July 31
Aug. 31
Sept. 28
Oct. 31

330
205
121
327
220
132
173
332
81

.

——

131
#9
• 162

Subsequent to
date shown
Corporate State and Other 2/
local govt.

50
——
——

37

kl2
230
85
376
2#
1,013
818
168
567
1,096
1,202
1,009
990

1,650
756
618
917
785
811
832
9hl
690
726
958
1,197
955

50
•
-

37

Forthcoming Large Offerings, as of November 23
Type

Amount
date
(millions Approximate
of offering
of dollars)

CORPORATE
Sinclair Oil Corp.
Chase Manhattan Bank
Michigan Bell Telephone Co.
Long Island Lighting Co.
Public Service Electric & Gas
Florida Power & Light Co.
•it-Texas Eastern Transmission Co.
Burroughs Corp.
N a t i o n a l Cash R e g i s t e r Co.
y S t o r e s R o a l t y Corp.
Michigan Wisconsin P i p e Lino Co.
S o u t h e r n New England Telephone Co.

#



Conv. sub. deb.

167.2

.Cap. stk.

1*7.0

Deb.
1st mtg. bds.
Common stk.„
1st mtg. bds.
Deb.
Deb.

30.0
20.0
33.0
15.0

Conv. s u b . deb.
Gon. u t g . bds.
1st n t g . b d s .
- Common s t k .

ko.o
30.2

28.3
25.O'
25.0
20.1+

December 3
(rights expire)
December 3
(rights expire)
December I4.
December 5
December 5
December 11
December 12 .
December 17

(rights oxpiro)

Doconbcr 19

(ri.jhts expire)
Dc-coraber
Winter
Winter

1
H.lit

F-2

Forthcoming Large Offerings, as of November 23 (Cont'd)
Type

Amount
(millions Approximate date
of offering
of dollars)

STATE AND LOCAL GOVERNMENT
Niagara Falls, New York
Maryland State Roads Commission
*State of Michigan
^Prince Georges Co., Md.
•^University of Washington
^Maryland State Roads Commission
-^Milwaukee, Wisconsin
Norfolk, Virginia
Memphis, Tennessee
Florida State Board of Education
Pennsylvania Turnpike Commission
Washington State Toll Bridge Auth.
Inter-American Center Auth., Fla.
New York State Thruway Authority
Jacksonville Expressway Authority
Florida State Turnpike Authority
Oklahoma Turnpike Authority
State of Connecticut

G.O..
G.O. L.L. G.O.
Rev.
G.O.
G.O.
G.O.
Elec. rev.
L.L.
Rev.
Rev.
Rev.
G.O.
Rev.
Rev.
Rev.
Expressway rev.

6.1*
15.0
52.-0
5.0
5.0
15.0
8.U
5.0
15U.0
9.3
62.0
227.0
20.0
50.0
12.0
185.0
65.0
514.0

Deb.

22.5

November
December
Deceniber
December
December
December
December
December
December
December
Winter
Winter
Winter
Winter
Winter
Winter
Winter
Winter

29
U
It
6
6
6
11
18

OTHER
• City of Montreal, Canada

December 11

*—Included in table for f i r s t 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




I

H.lU

Exhibit G
Yields on New and Outstanding
Electric Power Bonds, Rated Aa and A 1 /
Aa-rated offering yields
A-rated offering yields
Amount above
Amount above
Actual
Actual seasoned
yields
seasoned
yields
(per cent)
(per
cent)
(basis points)
(basis points)

Date
1952
1953
195U
1955

average
average
average
average

1956 - January
February
March 8
16
23
30
April it
h
11
25
May 9
16
2h
June 8
20 .
July 3
18
25
August 1
30
September 11
13
25
October 10
31
'Joveribcr 21

3.16
3.16
o/3.02
- 3.^
1

1

V

13
16
c/%
-9

None
*3.15
3.19

3
5

3.37

18

3 , 7 7

UO

3.53
3.52

19
18

3.62
3.70 ,

26
33

1.07
U.20 .
It. 17
h.01

52
62
58
37

h.20
4.30,

h8
52

1
1

S
j"
j
i

•

.

3.35
3.78
3.12
3.33

c/ll
- 26
-3
12

None
3.23

c/*6

3.35

7

3.55
3.57
3.60
3.67

o/23
- 23
26
c/31

3.80
3.73

32
2k

3.75
3.82

27
28

U.oo

U3

ii.ltO

63

.

-»—Single observation, not an average.
1/ Covers only 30-year f i r s t 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.
c—corrected.