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Not for Publication DECONTROLLED AFTER SIX MOUTHS
November 3, 1958
CAPITAL MARKET DEVELOPMENTS
The volume of public security financing for new capital was
substantial last week, but is expected to be somewhat smaller during
this week. During the week ending October 31, large corporate issues,
including expiration of subscription rights, totaled $157 million and
large State and local government issues amounted to $70 million. A
foreign government issue for $28 mil lion and a long-term Federal agencyoffering for $100 million were also sold. The calendar for this week,
which includes an election holiday, includes large corporate offerings
for $75 million and State and local government issues with aggregate
proceeds of $82 million.
Bond yields - Yields declined last week for all types of outstanding bonds with the exception of those for higher-grade corporate
bonds, which increased slightly.
Two new Aa-rated, 30-year electric utility bond issues were
offered to the public at a yield of L W and k-h2 per cent—slightly below that for a comparable issue offered in mid-October.
' November security volume - The November volume of corporate
issues for new capital is expected to total $600 million, the same as
the estimated October volume but nearly one-fourth less than the volume
last November. Large publicly-offered issues are expected to total $200250 million.
• - State and local government security issues for November are
currently estimated at $600 million. This volume would be slightly less
than a year earlier, but one-third larger than the revised October estimate. The estimated November volume does not include a $200 million issue
of New York State Power Authority, which had been tentatively scheduled
for sale in October but which now may be sold this month.
Stock prices - Stock prices increased last week in heavier
trading activity. Standard and Poor's index of 500 common stocks closed
at 51.33 on October 31—only .13 points below the all-time high reached
in mid-October. The volume of trading averaged U.l million shares a day.
. More detailed information concerning recent capital market
developments is presented in the attached exhibits.
Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




EXHIBIT A

HIGH-GRADE BOND YIELDS

L O W E R - G R A D E R O N D YIELDS
kly

J
1

-

/
y

/

J V

r

j

/

}

L

s

-*<

z"
V

\!

•<->

j
HAT

*

\

r

iii

VV

/
J

1 :

f\

is

j

V

r i i,
1953

1954




1955

1956

1957

1951

V

*
H.llt

Exhibit B
Tables for Exhibit A
High-grade Bond Yields

Date

Corporate
Aaa 1/

U. S. Govt.
long-term 2/

Spread between
U. S. Govt, and
Corporate State and
Aaa
local Aaa

State and
local govt.
Aaa y

(Per cent)
1953
1951*
1957
1958

-

High
Low
High
High
Low

Oct;
Oct.
Oct.
Oct.
Oct.

3
10
17
2h
31 p/

HI

lull* (9/27)
I . 13 (10/10)
t
3.55 (5/2)

3.19
2.45
3.76
3.83
3.07

i . 13
t
I . 13
t
it.09
i . 10
t
i . 12
t

(6/5)
(8/6)
(10/18)
(10/3)
(it/25)

3.83
3.72
3.7U
3.77
3.75

2.73
1.90
3.45
3.31
2.6U

:S

(6/25)
(9/2)
(8/29)
(9/11)
(5/1)

.38

.83

;t

.51
.22

.3it
.58
.t
i7

.30
.iti
.35
.33
.37

3.25
3.25
3.21
3.23
3.a

1

Lower-grade Bond Yields
State and
local govt.
Baa y

Date

Corporate
Baa 1/

High
Low
High
High
Low

3.89 (9/18)
3 i i (12/31)
.tt
5.10 (11/29)
i . 96 (1/3)
t
it.5l (7/11)

3.79 (6/25)
2.93 (8/5)
i . 51 (8/29)
t
-it. 34 (9/11)
3.6it (5/1)

i . 92
t
i.i
t9t
i.i
t9t
i . 91
t
it. 90

i . 29
t
i . 30
t
i . 26
t
i.i
t2t
lu16

Spread between
Aaa and Baa
State and
Corporate
local govt.

(Per cent)
1953
l$5it
1957
1958

-

Oct.
Oct.
Oct.
Oct.
Oct.

3
10
17
2t
i
31 2/

.69
.52
1.27
1.28
.77

1.21
.96
• 1.21
1.11
.95

.79
.81
.85
.81
.78

l.Oit
1.05
1.05
1.01
.95

2/ Preliminary.
.1/ Weekly average of daily figures. Average term of bonds included is 25-26 years.
2/ Weekly average of daily figures. The series includes bonds due or callable in
10 years or more.
2/ Thursday figures. Only general obligations bonds are included; average term
is 20 years.
Note.—.Highs and lows are foi* individual series and may be on different dates for
different series.




STOCK MARKET




14-3 A e a e l
914 v r g - O

Exhibit D
Table for Exhibit C
Stock Market

Date

Stock price
index 1/

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

Stock market customer credit
Bank
Customers
debit bal- loans to
ances k/ "others" 5/

Total

(Millions of dollars)
1953 - High
Low
1951* - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low
1958 - High
Low

26.51* (1/2)
2.5
22.95 (9/18)
0.9
35.98 (12/31)
2U.93 (1/8)
1*5.89 (12/9)
35.28 (1/lU)
1.5
1*9.61* (8/3)
3.1
i*3.22 (1/20)
1.5
1*.2
1*9.08 (7/12)
39.1*8 (12/20) 1.1*
51.1*6 (10/17) 1*.9
1*0.37 (1/10)
1.7

August
September
Oct. 17
Oct. 2it
Oct. 31 £/

1*7.70
1*8.85
51.1*6

3

50.81
51.33

3.0
3.1*
1*.9

tx

1:8

780
66U

5.82
1*.08
1.1*1
3.82
1*.3U
W 2

3.78
3.69
-3.50
3.51*
3,50

1»,030
3,537
U,0U7
3,91h

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

1,267
1,155

It, 313
3,551i

1*.32

3,lH*
2,1*87

1,317
,1,051

li,199
U.313
n.a.
n.a.
n.a.

3,013
3,111*

1

2,1.0$

a

n.a.
n.a.

1,

?U6 .

124
,1.
1,018

1,186
1,199

1,180

1,171*

n.a.—Not available.
jo/ Preliminary. '
1/ Standard and Poor's composite index of 500 common stocks, weekly closing
. prices, 19i*l-l*3"10. Monthly data are averages of daily figures rather than of
Fridays1 only. Highs and lows are for Friday's data only.
2/ Averages of daily trading volume on the New York Stock Exchange.
•
*
3/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve. Yields shown are for dates
on which price index reached its high or low.
h j End of month figures for member 'firms of the New York Stock Exchange which
c a n y margin accounts; excludes balances secured by U. S. Government obligations.
Wednesday figures for weekly reporting member banks. Excludes loans for
purchasing or carrying U. S. Government securities at banks in New York and
Chicago. Weekly reporting banks account for about 70 per cent of loans to others.
For further detail see Bulletin.
Note.—Highs and lows are for individual series and may be on different dates
for different series.




Exhibit E
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

195b

New capital
Corporate 1/
State and local 2/
1
1956
1957
1958
1
1957
1
1956

1

Januaxy
February
March

i j i y

April
May
June

i,iia
600
881
E/1,101
2/1*71
e/1,100
e/600
e/600

1,090
789
1,076

1,088

3,135
2,622
e/2,672

3,1*1*5
3,11*9
2,899
2,951*

2,102
2,805
2,556
2,922

5,757
3/8,1*29

6,591*
9,1*93
12,1*1*7

I'MI
10,381*

July
August
September
October
November
December
1st
2nd
3rd
hth

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

1,060
1,065
1,320

573
712
817

812
953
511

71*2
572
506

lo*
*l
696
390

1,1*53

818
1,11*6
81*1

798
895
551

765
51*6
393

378
1*90
735

1,003
921*
973

723

1,063
651*
838

803
1*03
2/61*5

529
581*
1*31

1*08
206
357

e/l*5o
e/600

698
633
698

$

S
2/1,851
4,520
2/6,371

639
-

lhl
1*09

1,820
1,701*
1,51*1*
2,029

. 1,1*90
1,603
971
1,395

3,521*
5,069
7,099

3,093
1*,061*
5,1*59

Excluding finance companies %/
1st
2nd
3rd
Lth

quarter
quarter
quarter
quarter

Year

3,237
2,889
2,582
2,810

1,61*7
2,51*1
2,21*6
2,826

11,518

9,260

2,891*
2,583
a/2,622

e/ Estimated.
1/ Securities and Exchange Commission estimates of net proceeds.
2/ Data through June 1956 are Bond Buyer data classified as new capital by
Federal Reserve; later data are from the Investment Bankers Association of America
and are somewhat more complete as to coverage than the earlier data, particularly
for Federal Government loans.
3/ Includes $718.3 million AT&T convertible debenture issue.
U/ Includes #571.5 million AT&T common stock issue.
!/ Total new capital issues excluding offerings of sales and consumer finance
companies.
x




ti.iu.

Exhibit F
Other Security Offerings 1/
(In millions of dollars)
Long-term
Federal agency
Foreign government 2/
195S
I
1957
I
1 9 W
"19FF
1957

January
February
March

196
53

April
May
June

139
198

120

81*
19
*
30

37

8

123

1,163
251
523

125

l9gS~

72

50

1*8

E

60

60

1*2

95

July
August
September

28
7
30

2
39

October
November
December

60

1
*

1

1*1*
5
21

100

507

300

572

Year

161*
109
215.

Short-term
State and local government k/
January
February
March
April
May
June
July
August
September

326
1*55
U*7

196
357
21*9
125
252

,,261*

205
337
153

289
1*23
fi/362

272
272
252

195
207
179

1*59

11*8

233

l6
t0
273

IS

October
. November
December
Year

176

291*

3,271*

328

2,706-

169

Federal agency 3/
371

638

208
Hl
**

1*30
505

209

336
1*69
501

161
329

601
206
330

221*
370
512

1,238

8

5,51*3 '

380
220
283

8

260
222
1*25
273
1*07
222

128
3,1*57

e/ Estimated.
jg/ Preliminary.
1/ Data presented in this exhibit differ frcr those in Exhibit E in that refunding issues, as well as new capital issues, are included. Long-term securities are defined as those maturing in more than one year.
2/ Includes securities offered in the United States by foreign governments and
their subdivisions and by international organizations. Source: Securities and Exchange Commission.
I
j / Issues not guaranteed by the U. S. Government. Source: long-term, Securities
and Exchange Commission; short-term, Federal Reserve.
U/ Principally tax and bond anticipation notes, warrants or certificates and Public
Housing Authority notes. In some instances PHA notes included may have a somewhat
Digitized for term than one year. Source: Bond Buyer.
longer FRASER



H.lU

Exhibit G

Large Long-term public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(Millions of dollars)

Corporate

Month

1957 - September
October
November •
December
1958 - January
February
March
April
May
June
July
August
September

State and
local government

216

133
393
3hh
koh

537
571
hZO •
399
318
605
1,093
725
356
281
771
209
825

1 Sh
1,357
266

H o

1

Other 2/

553
182
300
505
195
275
109
288

653
16U
86
l a

18

Large Individual Issues Offered during October

Issuer

Type y

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

Rating

CORPORATE
S,F. deb.
20.0
•American Cement Corp.
Public Service Co. of Did. Pfd. stk.
24.3
1st mtg. bds.
15.0
Idaho Power Co.
Peoples Gas^-Lj;. & Coke Co. Cap. stk.
18.3
CincinnatirSuburban Bell
Deb.
25.0
Telephoned.
Com. stk.
Florida Power & Light Co.
23.6
International-Harvester
Deb.
Credit Corp.
50.0
S.F. deb.
Glidden Co.
30.0
Puget Sound Pwr. & Lt. Co. S.F. deb.
i5.o
Hartford Elec. Light Co. 1st mtg. bds. 18.0
Conv. sub. deb.20.1
J. I. Case Company




1978

5

5.16

A

1988

h 1/2

U.50

Aa

1993

I 1/2
t

k.ho

Aaa

1979
1983
1983
1988
1983

h
k
5
L
5

lt.66
14.82
5.18
1*42
5.50

A
Baa
Aa
Ba

5/8
3/h
1A .
3/8
1/2

H.lU

.

G-2
Large Individual Issues Offered during October (Cont'd)

lype 3/

Amount
Coupon
Offering
[millions
Maturity
of
net inter- yield
dollars)
est cost

Rating

STATE AND LP GAL GOVERNMENT
Boston, Massachusetts
G.O.
Venice, Illinois
Rev. -Ut.
Met.Wtr.Dist. of So. CaliX Rev.-Ut.
State of South Carolina
G.O.
G.O.
Cook County> Illinois
Oakland Uhif. Sch. Di st., Cal, G.O.
City & Co. bf San Franciscc
California
G.O.
Chicago Met. Fair & Exposition Authority
Rev.
G.O.
City & Co. of Denver, Colo.
G.O.
St. Louis, Missouri

23.7
12.0
18.0
13.0
25.0
10.0

1959-78
1988
1959-70
1959-78
1959-68
1959-83

26. h

1959-78

20.0
12.8
10.8

" 1995
1970-97
1959-78

3.80

A

3.0lt
3.06
3.29
3.28

2.20-3.85
5.00
2.00-3.10
1.90-3.15
2.15-3.35
2.00-3.U0

Aa
Aa
A
Aa

3.07

2.00-3.20

Aa

5.oo
3.19
3.13

n,r.A/
3.20-3.55 Aa
1.90-3.20 Aa

OTHER
Commonwealth of Australia
Montreal, Canada
Federal Land Banks
Fed. National Mortgage
Association

Bds.
Deb.
Bds.

25.0
28.0
56.0

1978
1978
1961

5
5
k

5.20
5.10
Loo

Deb.

100.0

1963

1*1/8

-U.13

A
A

-

n.a.—Not available.
n.f.—Not reoffered.
2/ Includes:corporate and other security offerings of $15 million and over;
State and local government security offerings of #10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal agencies.
3/ In the case of State and local government securities, G.O. denotes general.
obligations; Rev.-Ut., revenue bbligations secured only by income from public utilities; Rev.-Q.Ut., revenue bonds secured only by revenue of quasi-utilities; Rev.S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
. h/ Sold to Illinois State Treasurer.




Exhibit H

K.Ik

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues

Date of
computation

1957 - Sept. 30
Oct. 31
Nov. 29
Dec. 31
1958 - Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 29
June 30
July 31
Aug. 29
Sept. 30
Oct. 31

During month following
date shown
State and
Corporate
Other 2/
local govt.
576
1*58
383
378
1*98
1,123
555
356
266
768
161
785
113
201*

331*
339
363
31*5
370
131*
298
1*93
177
225
55
. 21*1
295
258 .

30 ,
18
150
110
150
36

Subsequent to
date shown
State and
Corporate
Other 2/
local govt.
61*7
, -815
1,193
1,161
1,378
1,208
670
561
16*
*1
1,01*8
381
911*
216
326

551 .
15
51*3 1
1*5
63
558 1
561*
165
1*87
31*1
0
330
~ 110
150
1*93
208
,
36
235
125
1*35
521*
675

Forthcoming Large Offerings, as of October 31

Issuer

Type

Amount
Approximate date
(millions
of offering
of dollars)

CORPORATE
Columbia Gas System, Inc.
Indiana & Michigan Electric Co.
Natural Gas Pipeline Co.
Pacific Telephone & Telegraph Co.
*Arvida Corp.
•MGeneral Public Utilities Corp.
Pacific Telephone & Telegraph Co.
Consumers Power Co.
Montana Power Co.
. Commerce Oil Refining Corp.
Martin Co.

Deb.
. 1st mtg. bds.
1st mtg. p. 1. bds.
Deb.
Common stk.
Common stk.
Common stk.
Pfd. stk.
1st mtg. bds.
Deb., bds. & common
S.F. deb.

25.0
20.0
30.0
80.0
27.5
21.lt
16.6

15.0
20.0

1*5.0

25.0

Nov. 7
Nov. 7
Nov. 7
Nov. 19
Nov. 19
Nov. 21
(rights expire)
Dec.
(rights expire)
Winter
Winter
Winter
Winter

STATE AND LOCAL GOVERNMENT
Chicago, Illinois
Baltimore Co., Maryland
Public Housing Authorities
State of Maryland




Rev.-Ut.
G.O.
G.O.
G.O.

25.0
11.5
1*5.3

16.8

Nov.
Nov.
Nov.
Nov.

5
6
6
12

H.lii

H-2
Forthcoming Large Offerings, as of October 31 (Cont'd)
%

Issuer

Type

Amount
Approximate date
(millions
of offering
of dollars)

STATE AND LOCAL GOVERNMENT (Cont'd)
*Port of New York Authority
^Nassau Co., New York
Allegheny Co. Sanitary Auth., Pa.
Detroit-Metro. Expressway
Los Angeles Sch. Dist., Calif.
Philadelphia, Pennsylvania
Florida State Board of Education
State of California
*East Baton Rouge Parish, Louisiana
New York State Power Authority
Chesapeake Bay Feriy Commission

Rev.-Ut.
G.O.
Rev.-Ut..
Rev.-Ut.
G.O.
G.O.
Rev.
G.O.
G.O.
Rev.-Ut.
Rev.-Ut.

25.0
21.6
20.0
35.0
28.0
17.4
12.5
50.0
22.5
200.0
lkk.0

Nov. 12
Nov. 13
Nov. 13
Nov. 15
Nov. 18
Nov. 20
Nov.
Dec. 3
Dec. 10
Winter
Winter

OTHER
None
*—Included in table for first ime.
1/ Includes corporate and other issues of $15 million and over; State and
.local government issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal agencies.
Note.--Deletions for reasons other than sale of issue: None.




Exhibit I

H.14

Yields on New and Outstanding
Electric Power Bonds, Rated Aa and A 1/

Date

1952 - 1957
High
Low

A-rated offering yields
Aa-rated offering yields
1
Amount above
Amount above
Actual
Actual
seasoned yields
seasoned yields
(per cent)
(per cent)
(basis points)
(basis points)
5.00(8/lV57)
2.93(3/31/510

1958 - January
February
March
April
May 7
13
15

-8
22

4.08
3.91

21

22
28

June 10
17
25
July 2
9

18

23
Oct. 7
15

28

29

•:;S

3.90

21

3.85
3.85

16
16

16
20

87
-3

5.50(11/7/57)
3.00(3/17/54)
3.962/
4.07

4.16

4.01
4.00

3
9
-1
. 8
3

4.07
4.35

4
32

4.00

-1
-6

3.95
3.85

3.82

-15

17

12

3.95

24

4.00

25

1.10
4.10
1,57
4.50
4.40,/
4.42^

3.98^/

1

4.35%/

31

28

29
25
22

12
14

*—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.
2/ Provides for a 5-year period during which issue may not be called for
refunding at a lower coupon rate. Monthly averages so marked include one or more
issues with such a provision. Other issues have no such provision.




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