Full text of H.16 Capital Market Developments : November 3, 1954

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Not f o r Publication

DECONTROLLED AFTER SIX MONTHS

H-ltt

November 3, 195U

CAPITAL MARKET DEVELOPMENTS
Heavy volume of s e c u r i t y i s s u e s l a s t week - Large S t a t e
and l o c a l government i s s u e s with t o t a l proceeds of 221 m i l l i o n d o l l a r s were o f f e r e d during t h e week ending October 29. Large corpora t e s e c u r i t y o f f e r i n g s were 190 m i l l i o n d o l l a r s and included the
Continental Oil debenture i s s u e of 100 m i l l i o n d o l l a r s . This week
3h m i l l i o n d o l l a r s of l a r g e S t a t e and l o c a l i s s u e s a r e scheduled
f o r o f f e r i n g ; no l a r g e corporate; i s s u e s are l i s t e d .
November outlook - The corporate new c a p i t a l estimate f o r
November i s 300 m i l l i o n d o l l a r s , only o n e - t h i r d as l a r g e as l a s t month's
volume and 30 per cent below t h e November t o t a l l a s t y e a r . Only one
public i s s u e over 15 m i l l i o n d o l l a r s i s scheduled and t h a t only t e n t a t i v e l y . The schedule f o r l a t e r dates i s a l s o l i g h t . The volume
of proceeds from forthcoming l a r g e i s s u e s expected during the r e mainder of t h i s year and through spring of 1955 i s only 155 m i l l i o n
d o l l a r s , the s m a lle s t t o t a l since such t a b u l a t i o n s were begun i n
Hay 1953• Several l a r g e r e f u n d i n g programs have been announced,
but proceeds from t h e s e a r e not included i n t h e n # ; c a p i t a l e s t i m a t e .
The November volume of S t a t e and l o c a l i s s u e s i s e s t i mated a t 600 m i l l i o n d o l l a r s , s l i g h t l y l e s s than the t o t a l l a s t
month but almost half again as l a r g e as the volume a year ago.
Almost t h r e e - f o u r t h s of t h e expected volume i s made up of l a r g e i s sues over 5 m i l l i o n d o l l a r s .
Bond y i e l d s - Yields on outstanding U. S . Government longterm o b l i g a t i o n s rose one p o i n t l a s t week. Yields on corporate Aaa
and on high-grade municipal bonds did not change. Corporate Baa
y i e l d s decreased s l i ^ i t l y .
Stock p r i c e s , - The SEC index of 265 common stocks dropped
t o 193.9 during the week ending October 29. Daily indexes showed a
f u r t h e r small decline on November 1 .
-




-2-

-f

Further d e t a i l s on c a p i t a l market developments a v a i l a b l e
f r a n . e x h i b i t s - 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 w i l l be found i n the f o l l o w i n g e x h i b i t s which
a r e attached h e r e t o :
A - Bond Yields
B - Stock Market
C - Corporate and S t a t e and Local
Government S e c u r i t y Offerings
and Placements
D - Large Public 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 (other than
U . S . Treasury)
E - Forthcoming Large Public S e c u r i t y
O f f e r i n g s f o r New C a p i t a l (other
than U . S . Treasury) .
F - Yields.on New and Outstanding
Public U t i l i t y Bonds, r a t e d Aa
and A

Business Finance and C a p i t a l Markets Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of t h e Federal Reserve System.




.

H-14

EXHIBIT

A

BOND YIELDS
WEEKLY

PER

CENT

PER A N N U M

4
CORPORATE Baa

CORPORATE A a a

U.S. G O V E R N M E N T
LONG-TERM

/V

v " V

/ HIGH-GRADE

MUNICIPAL

STANDARD AND POOR'S CORP. I
' IIII IIIIII IIIIIIIII

M

J

S

J

1951

S

M

Date

J

S

M

Corporate 2/

J

S

Wa!A
D

1954

1953

1952

D. 3. Govt, Spread between High- ;
gr*de .
long-term 2/ Corporate Aaa
and U. 8. Govt. Iftm. 3/
(Per cent per annua)

1951 - High
Low
1952 - High
Low
1953 - High
Low
1951* - High
. Low
October
October
October
October
October

1
8
15
22
29

3.03
2.65
3.03
2.91
3-1*2
2.99
3.09
2.85
2.89
2.88
2.88
2.87
2.87

3.63
3.16
3.63
3.1*8
3.89
3.50
3.71*
3.U5
3.1*8
3J*8
3.1*7
3.1*6
3.1*5

2.71*
2.38
2.79
2.56
3.15
2.71*
2.71*
2.1*1
2.51
2.51
2.52
2.53
2.51*

.36
.25
.37
.19
.38
.19
.1*3
.33 <
.38
.37
.36
.31*
.33 •

2.26
1.59
2.1*3
2.00
3.H*
2.1*3
2.56
2.23
2.33
2.31*
2.32
2.30
2.30

Federal Reserve; weekly average of daily figures.
Corporation; Wednesday figure.

% Standard and Poor's

Noto.—Higha and loro are for individual series and may be on different dates
for different series.




VOLUME j-

Bank loans
stock Customers' to "others"
Stock price volume £/ Common
for purchases
yields y
index V
V
of secur(arini ens (per cent balances
(191*7-1*9=100) of
ities 5/
shares) per annum) (millions
of dollars) (millions
of dollars)
_L
1951 - High
Low

1952 - Hi#
Low
1953 - Hi*
Low

195b - High
Low
September
October 15
October 22
October 29

158.6
12*0.3
165.3
151.7
167.1
IM.O
199.7
156.5
19lt.O
196.6
191* .0
196.9
153.9

'3 J*
1.1

2.0
0.9

S:l
1.t

2.0
2.1
2.1
2.1'
2.1

I
1*.1*6

1,297
1,219
1,328
1,211
1,665
1,3%
2,0ii8
1,653
2,018

3U0
260
295

;

250
327
252
1*1*7
328
1*21
U39
1*31*
1*1*2
1*1*7

V SEC index of it>5 common stocks, weekly closing price, 1939-100: converted to"
191*7-59-100 by Federal Reserve.
2/ Weekly averages of daily trading volune cm New York Stock Exchange.
2/ Moody's 200 common stocks; end of month figures.
y End of month figures for member firms of New lark Stock Exchange; excludes
balances secured by U. S. Government securities.
5/ Wednesday figures for weekly reporting member banks in New York and Chicago;
excludes loans for purchase of U. S. Government securities. Ch March.It, 1953, the
last date on which figures for a l l reporting banks were available, New York and
Chicago accounted for 2*5 per cent of such loans. In the past New York and Chicago
loans have fluctuated more than total loans.
n.a.—Not available.
Note.—Highs and lore are for individual series and may be on different dates
FRASER
fer different series.

Digitized for


,

H-rlU
Exhibit C
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
~i9gir
I
1953

~Nevr c a p i t a l "
1952

January
February
March

544
139
660

623
623
#6

615
413
951

April
May
June

186
652
859

779
675
1,123

870
990
769

July
August
September

s/725

483
#5
753

1,237 ¥
291
390

October
November
December

e/800
i/300

577
429 2 /
1,438 y

999
340
851

1,643
1,998
3/1,850

1,-912
2,578
,1,561 2 /
2,444 ^
8,495 ^

1,979

1st quarter
2nd q u a r t e r
3rd q u a r t e r
4th quarter
Year

e/ioo
e/725

l&Sil : $ y

S t a t e and l o c a l
1953
"TOT

"19^2"
357
300

5#

388
359
426

734
748
853

328
648
434

454
394
625

279

519
259
475

243
199
473

3/610
3/600

452
408
774

302
183
395

1,372
2,335
a/1,165

1,173
1,410
1,253
1,635
5,471

802
1,474
916
880
4,072

261

3/625

146

Excluding f i n a n c e companies y
1st quarter
2nd q u a r t e r
3rd q u a r t e r
4th quarter
Year

1,562

1*931
e/l,7%

1,669
1,991
1,223
2,3Wt
7,227

1,961
2,521
1,877
2,091)
8,1(52

• ~y I n c l u d e s 490 m i l l i o n d o l l a r American Telephone and Telegraph debenture
issue.
2 / I n c l u d e s 603 m i l l i o n d o l l a r AT&T debenture i s s u e .
3 / Totail 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, p e r s o n a l f i n a n c e
companies.
3/—Estimated
N o t e . — D e t a i l s may n o t add t o t o t a l s due t o rounding.




H-H|

Exhibit D
Large Public 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
(other than U. S . Treasury) 1/
Proceeds of Large' Issues Offered
( P i l l i o n s of d o l l a r s )

Month
1953 - October!
November
December
195k - January
February
March
April
• May
June'
July
August
September
October

Corporate

• S t a t e and
l o c a l government

216
96
963
289
103
160
169
32k
350
336
75
335
• 413

\

323
2ft
571
l6h
213
378
557
557
603 '
92
86
155
388,

Other 2 /
51
19
50
119
50

——
—

Large I n d i v i d u a l I s s u e s Offered during October
Issuer

Type 3 /

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

CORPORATE
. Public Service Co. of
Colorado
1 s t mtg.bds. 20.0
Indiana and Michigan
E l e c t r i c Co.
1 s t mtg.bds. 16.5
Texas Power & Light Co.
1 s t mtg.bds. 15.0
New York Telephone Co.
Ref .mtg.bds. liO.O
N a t ' l . City Bank of H.Y. Common s t k . 131.3
Cortland Equipment
Lessors, I n c .
Deb.
75.0
C o n t i n e n t a l Oil
Deb.
100.0
Southern Railway
Coll. t r . notes
15.0




1982*

3 1/8

3.03

Aa

198k
198U
1989

3 1/8
3 1/8
3

3.OU
3.00
2.95

Aa
Aa
Aaa

1955-69
198L
196U

3-h 1/h
3
n.a.

li.00-li.25
2.94
n.a.

Baa
Aa

H-ll*

D-2
Large I n d i v i d u a l Issues Offered during October (Cont'd)

Issuer

Type 1 /

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

STATE & LOCAL GOVERME NT
Southeast Alabama
Gas D i s t r i c t
Rev.
M i s s i s s i p p i River Bridge
Authority, Louisiaria
- Rev.
Kansas C i t y , Missouri
Rev.
Cleveland, Ohio
Rev.
Cleveland, Ohio •
Rev.
S t a t e of Oklahoma Planning & Resources Bd.
Rev.
C-a. S tate T o l l Bridge Auth.
Rev.
Alexandria, V i r g i n i a
Rev.
Nevrark, New J e r s e y
G.O.
Milwaukee, Wisconsin
G.O.
Greater Baton Rouge
Port Commission, La.
G.R.
Colorado Springs, Colo.
Rev..
Lansing, Michigan
G.O.
Puerto. Rico
'
G.O.
S t a t e of Massachusetts
G.O.
P h i l a d e l p h i a , Pennsylvania
G.O.
F l o r i d a S t a t e Board of Education
Rev.
Chicago, I l l i n o i s
G.O.
Dept. of Highways, Va.
Rev.
Pueblo County, Colorado
G.O.
P i t t s b u r g h Parking* Autho r i t y , Pennsylvania
Rev.

19.5

1989

It.50

U.50

65.0
12.0
5.0
6.0

199k
1961-81*
1959-78.
1959-83

3.59
2.1*5
2.13
2.51*

3.1*6
1.35-2.55
1.20-2.1*0
1.25-2.63

7.2
6.7
8.2
10.0
5.0

1981A
1981+
1960-76
1955-71*
1955-71:

3.35
3.19 •
2.36
1.62

• 1* .31
3.30
1.90-3.20
0.90-2.55
0.70-1.85

Baa
Aaa

12.5
10.0
6.0
10.0
59,8
25.8

1961-91*
1957-82
1957-76
1955-66
1955-89
1956-85

2.76
2.11*
1.69
2.16
1.91
2.38

1.50-2.85
1.00-2.35
0.85-1.90
0.80-2,27
0.65-2.35
0.90-2.90

Baa
Aaa
Aaa
A
Aaa
A

Var.
2.00
3.06
n.a. .

1.00-2.60
1.00-2.20
3.03 ,
0.90-2.55

A
A
A

n.a.

1.20-3.00

A

16.5 . 1956-75
12.5
1957-7U
79.3
199k
5*3
:1956-79
5.8

:1956-91*

—
• —

Aa
Aa
A

OTHER
None
o v e r j ~ 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 £ 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 Sta te 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; 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; 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 by pledge
of designated revenues.
n.a.—Not a v a i l a b l e .




H—lit

Exhibit E

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 I s s u e s
Subsequent t o
date shewn

During month following
date shown

Date of -computation

Corporate | ^ g % ^ . | o t R e r 2 /

- Oct. 30
Nov. 30
Dec. 31
- J a n . 29
Feb. 26
Mar. 3 1 Apr. 30
. May 28
June 30
J u l y 30
Aug. 31
S e p t . 30
Oct. 29

73
948
232
118
108
20k
323.
332
336
100
334
3k3
IS

283 '
#7'
179
lol
198
5 # .
525
596.
86
5k
300
383
436

0ther 2

Corporate
'

73
123
50
27

—

1,129
1,616
669
479
690
555
647
526
532
303
608
414
155

J

978
1,752
1,238
1,660
1,916 2,789
2,322
1,971
1,524
1,553
1,876
2,158
1,957

88
138
50
27

30

Forthcoming Large O f f e r i n g s , as of October 29
.

Issuer

•

Type

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

CORPORATE
Kentucky U t i l i t i e s
^Virginia E l e c t r i c and Power Co.
New England Telephone and Telegraph
Laclede Gas
Long I s l a n d . L i g h t i n g
Kansas City Power and Light
Public Service of Oklahoma
New England Telephone and Telegraph

1 s t mtg. bonds
Common stock
Deb. .
1 s t mtg. bonds
1 s t mtg. bonds
1 s t mtg. bonds
1 s t mtg. bonds
Common stock

15.0
18.0
30.0
—20.0
20.0
16.0
20.0
15.8

G.O.
Rev.
G.O.
Rev.
Rev.
n.a.
n.a.
n.a.

6.5
6.0
21.6
146.0
20.5
5.0
230.0
16.9

Rev.

46.0

November
December 8
December 14
December
December
1954
January
March

STATE AND LOCAL GOVERIILZNT
T e r r i t o r y of-Hawaii
Abington Township, P a . , School D i s t .
. New York City
•Maryland S t a t e Roads Commission
New J e r s e y Highway Authority
* S t a t e of North Carolina
Oklahoma Turnpike Authority
D a l l a s , Texas
J e f f e r s o n Parish and S t . Tammany
a r i s h , Louisiana
Digitized forPFRASER



November
November
November
November
November
November
November
• December

4
4
4
9
16
17
1

December 8

H-lii

E-2
Forthcoming Large O f f e r i n g s , as of October 29 (Cont'd)
Issuer

.Type

Amount
( m i l l i o n s Approximat e d a t e
of o f f e r i n g
of d o l l a r s )

STATE AND LOCAL GOVERNMENT (Cont'd)
Dade County Port Authority, F l a .
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
Warren, Ohio
Springfield, Illinois
Davenport, I'owa
New York Thruway
Winter-American Center Auth., F l a .
Michigan Turnpike Authority
S t a t e of Louisiana
iXTexas -Turnpike Authority
New York S t a t e Power Authority
Metropolitan Water D i s t . of So. Cal.
Los Angeles School D i s t s . , Cal.
Los Angeles Dept. of '.later & Power
F l o r i d a S t a t e Turnpike Authority
Jersey City Sewerage Auth., N. J .
North Carolina Turnpike Authority

'

; Rev.
Rev.
Rev.
n.a.
n.a.
n.a.
Rev....
Rev.
Rev.
n.a.
n.a.
Rev.
G.O.

21.0

• , Rev.
Rev.
Rev.
n.a.

82.0
235.0
5.0
9.0
5.0
50.0
60.0
186.0
80.0
59.0
315.0
8-10.0
. 20.0
15-20.0
89.0
16.0
;200.0

Bonds

30.0

-

.

-

.

-

19Sh
195U
19511
1954
19SU
1951l
19A
Spring
Spring
Spring
1955
1955
1955
1955
1955
1955
1955
1955

"

OTHER
^Kingdom of Belgium

December

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 overj 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 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 a r Reconstruction
and Development i s s u e s .
n.a.—Not a v a i l a b l e .
*—Included i n t a b l e f o r f i r s t t i m e .




Exhibit F
Yields on How and Outstanding
Public U t i l i t y Bonds, Rated Aa and A 1/
Aa-rated o f f e r i n g y i e l d s
A-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
(per cent)
(per cent) seasoned y i e l d s
(basis points
(basis points)

Date

195>2 average
1953 average
1953 - January
February
March
.April
May .
: June
July
August
September
' October
November
December

.14

3.37

12

3.kk

16

3.78

22

3.22
3.39
3 Mo
3.k8
3.79
None
*3.68
None

11
19
17.
16
28

None
None
3 .29
3.88
3.99
k.10
*k.oo
None
3.92
3.26
3.42
3.51

29
7
2
10

3.3k
*3.20
3.02
3.10
3.1k
3.1k
*3.13
3.11
*3.10

2
-1
-10
' -6
-1
-2
-1
-1
-3

29

3.3k
*3.28
*3.30

6
7
5

July
August
• September

3.20
3.02
*2.93
2.99
3.00
*3.00
None
None
3.02

6
0
0
5
k
1

October $
6
6

3.03
3.0k
3.0k

k
k
h

3.00

1

1 9 2 k - January
February
March
Appil
May

.

.

3.18

1

•

3

%

15
19
21
26 .
28

•

3.12
.

23
ki
37
39
30

.

-1 .

3.12
. 3.10

0
-2

3.08
3.07
3.08

-3
-k
-k

~

'

Survey. Except v;here i n d i c a t e d , the a c t u a l y i e l d f i g u r e and t h e amount above
' seasoned y i e l d s a r e 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 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.
*—Single observation, not an average.
'