Full text of H.16 Capital Market Developments : November 9, 1955

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Not f o r P u b l i c a t i o n DECONTROLLED AFTER SIX MONTHS
H.lii

November 9> 195#

CAPITAL MARKET DEVELOFivIElITS
S t a t e and l o c a l governments sold 9b m i l l i o n d o l l a r s of
l a r g e s e c u r i t y i s s u e s during t h e week ending November h* No l a r g e
public corporate i s s u e s were f l o a t e d l a s t week, and only one such
o f f e r i n g of 20 m i l l i o n d o l l a r s i s scheduled i n t h i s abbreviated
week. Two S t a t e and l o c a l government i s s u e s t o t a l i n g 19 m i l l i o n
d o l l a r s a r e also expected.
Bond y i e l d s - Yields on U. S. Government long-term and
S t a t e and l o c a l government Aaa, Baa and revenue bonds declined l a s t
week, as can be seen from the attached e x h i b i t s . Corporate bond
y i e l d s w i t h Aaa r a t i n g s were unchanged and those with Baa r a t i n g s
increased s l i g h t l y .
According t o d a i l y f i g u r e s , y i e l d s on-Government bonds
r o s e moderately and y i e l d s on corporate Aaa bonds decreased modera t e l y on Monday of t h i s week.
The d e c l i n e i n y i e l d s during October r e p r e s e n t e d a cont i n u a t i o n of the drop which began in early September f o r most types
of i s s u e s o u t s t a n d i n g . S t a t e and l o c a l government Baa and revenue
o b l i g a t i o n y i e l d s a r e now f o u r b a s i s p o i n t s lower than t h e y were
during t h e f i r s t week of October and s i x t o n i n e p o i n t s below the
September h i g h . Yields on S t a t e and l o c a l government Aaa bends
have dropped e i g h t b a s i s p o i n t s over t h e l a s t month and 1< since
e a r l y September. The change in corporate s e c u r i t i e s has been more
moderate. Corporate Aaa bond y i e l d s a r e two b a s i s p o i n t s l e s s than
a month ago and four p o i n t s below the' September h i g h . There has been
no change i n corporate Baa y i e l d s s i n c e September.
Stock p r i c e s r i s e - Stock p r i c e s rose sharply during t h e
week, ending November
The SEC index of 26£ common stocks i n creased 7*5 p o i n t s t o 25>9»1j with t r a d i n g volume moderate. The
i n c r e a s e has continued i n t o t h i s week although a t a more moderate
rate.
Common stock y i e l d s were b.12 per cent a t
October, the highest they have been s i n c e May. The
i n c r e a s e l a s t month—19 b a s i s p o i n t s — r e s u l t e d from
r i s e i n dividend r a t e s as w e l l as t h e sharp drop i n

t h e end of
unusually l a r g e
a considerable
prices.

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 in the 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 Section,
Division of Research and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




HIGH-GRADE BOND YIELDS

! STATE AND LOCAL

Corporate
Aaa 1/

U* S# Govt#
long-term 2 /

State and local
govt., Aaa 2 /

Spread between
U. S. Port, and
Corporate IState and
Ilocal Aaa

(Per cent)
3.03
2.91
3.1*2
2.99
3.09
2.85
3.U*
2.91

1A)
(2/15)
(6/19)
(1/9)
(1/8)
(k/23)
(9/9)
(1/7)

3.12
3.11
3.10
3.10
3.10

2.79
2.56
3.15
2.78
2.71*
2.U
2.91*
2.62
2.83
2.81
2.82
2.81
2.79

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

2.00
1.65
2.73
1.98
2.21
1.90
2.3k
2.05
2.27
2.25
2.2k
2.2k
2.19

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

.37
.19
.38
.19
.143
•32
.31*
.13

1.02
•71
.81*
.30
.61
.29
•70
.51*

.29
.30
.28
.29
.31

.56
.56
,58
.<7
.60

y Weekly average of daily figures. Average term of bonds included i s 25-26
y

2/ Weekly average of daily figures; old series. Average term to f i r s t call
of bonds included i s 11-12* years.
3/ Thursday figures. Only general obligation bonds are included; average
term i s 20 years.

Note. Hi^is and lows are for individual series and may be on different dates
for different series.




R-GRADE BOND YIELDS
Weekly

Per cent p e r
CORPORATE B a a

V \

Corporate
Baa 1/

STATE AND LOCAL GOVT. B a a

State and
local govt.
Baa 2 /

State and
local govt,
rev. 3 /

(Per cent)
1952 " High
Low
1953 - High
195U - High
Loir
1955 - High
Low
October 7
October lU
October 21
October 28
November 4

3.63
3-i|8
3.89
3.50
3.7k
3.Wi

i-l
I S
3.59

(1A)
(5/16)
(9/18)
(1/2)
(V8)
(12/31)

%)
!$»'

2.98
2.1*8
3.79
2.96
3.32
2.93
3.25

(10/23)
(1/17)
(6/25)
(1/8)
(1/7)
(8/5)
(9/22)

3.02 (1/6)

2.69
2.27
3.27
2.71
3.00
2.72
2.95
2.76

3.23
3.22
3.20
3.23
3.19

2.90
2.89
2.89
2.87
2.86

(12/19)
(ii/25)
(6/26)
(1/2)
(1/1)
(8/13)
(9/2)
(1/7)

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




• EXHIBIT C

Trading
Ccmmon
S t o c k p r i c e - volume 2 /
index 1/
(millions yields 3/
of s h a r e s ) (per c e n t )

S t o c k market customer c r e d i t
Customers 1
debit b a l - loans t o
ances 4 / "others" 5 /

Total

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

1951 - High
Low
1955 - High
Lon

165.3
151.7
167.1
144.0
221.4
156.5
269.7
217.It

September
October
October l i t
October 2 1
October 28
November 4

263.6
250.1
245.9
252.8
251.6
259.1

1952 - High
Low
1953 - High

(12/26)
(10/24)
(1/2)
(9/18)
(12/31)
(1/6)
(9/23)
(1/14)

2.0
0.9
2.5
0.9
3.7
1.4
4.6
1.5

•

2.9
2.0
2.4
1.7
1.8
1.9

1,986
1,804
2,445
2,055
3,436
2,405
3,966
3,537

1,332
1,241
1,665
1,314,
2,3881,653
2,805
2,517

3.93
4.12

3,966

2,805

n.a-

n.a.

n.a.

5.77
5.13
5.75
5.15

5.33

4.20
4.22
3.78

656
552
780
664
1,048
746 .
1,195
1,018
1,161
1,195
1,159
1,150
1,195
n.a.

i available.
V SEC i n d e x of 26$ canmon 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 1947-1*9=100 b y 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 Exchange.
3 / Moody's 200 common s t o c k s ; end of month f i g u r e s .
4 / End of month f i g u r e s f o r member f i r m s o f t h e New York Stock Exchange which
c a r r y"margin 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 b y 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 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
f o r p u r c h a s i n g or c a r r y i n g D. S . Governments f o r 1 9 5 2 ; s i n c e 1953 o n l y t h e s e l o a n s
a t banks i n New York and Chicago 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
about 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 i s and l o w s a r e f o 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
Corporate and S t a t e and Local Government
S e c u r i t y Offerings and Placements
(In m i l l i o n s of d o l l a r s )

1955
January
February
March

1

Corporate
1954
\

New c a p i t a l
1953

1955

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

1953

546
436
1,261

547
426
635

623
623
666

535
312
538

#6
411
5#

390
360
426

April
May

494
903
697

497
656
842

779
• 675
1,123

427

734
748
653

329
649
434

July
August
September

583
654
680

909
$

483
325
753

t&

279
261
649

519
. 259
475

e/1,200 2 /
s/550

1,003
290
604

. l i s 2/

I S

S
877

2,21(3
2 , 0 9h
1,917

1,608
1,995
1,991
1,896
7,490

October
November
December
1st quarter
...2nd quarter"
3rd q u a r t e r
4th quarter
Year

1,912
2,578

W

641
.

470

1,385
1,418
e/1,095

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

U
774

1,176
1,412
S I

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

1,791
1,912
S/1,445

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

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

. e/ Estimated,
"
'
1/ Includes 637.2 m i l l i o n d o l l a r AT&T convertible debenture i s s u e .
2 / Includes 602.5 m i l l i o n d o l l a r AT&T c o n v e r t i b l e debenture i s s u e .
J / 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 p e r s o n a l f i n a n c e
companies.
Note (.—Details may not add t o t o t a l s due t o rounding.




Exhibit E

H.lii

Large Public S e c u r i t y Issues f o r New Capital
(Other than U. S. Treasury) 1 /
Proceeds of Large Issues Offered
(Millions of d o l l a r s )

Month

Corporate

195k - October
November
December
1955 - January
February
March
April
May
June
:
July
August
September
October

U33
0
121
1U1
63
750
173
1*83
175
101
1|05
328
805

S t a t e and
l o c a l government
388
268
689
3U1
107
337
238
152
U03
278
65
23k
716

Other 2 /

30 ,
35
15

Large I n d i v i d u a l I s s u e s Offered November 1 through I4.

Type 3 /

Coupon
Amount
r a t e or
(millions
Offering
Maturity n e t i n t e r - y i e l d
Rating
of
dollars)
e s t cost

CORPORATE
None
STATE AND LOCAL GOVERNMENT
- F l o r i d a S t a t e Board of
Education
S t a t e of C a l i f o r n i a
T e r r i t o r y of Hawaii
Port of New Orleans, La.
Hamilton County, Ohio
OTHER

Rev.
G.O.
G.O.
G.O.
G.O.

10.6
60.0
7.5
10.0
5.6

1957-76
1957-81
1958-75
1960-90
1957-81

var.
var.
2.14;
2.62
n.a.

1.90-2.82
1.50-2.30
1.80-2.50
2.00-2.70
1.50-2.10

A
Aa
A
A
Aaa

None
var. - various.
n . a . - not a v a i l a b l e
1 / Includes corporate and other s e c u r i t y o f f e r i n g s of 15 m i l l i o n d o l l a r s and
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 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.




H.lit

Exhibit F

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
During month following
date shown
date shown
S t a t e and
S t a t e and other 2 /
Other 2 / Corporate
l o c a l govt.
l o c a l govt.

Date of
computation

Corporate

1951* - Octo 29
Nov. 30
Dec, 31
1955 - J a n , 31
Feb. 28
Mar. 31
Apr. 29
May 31
June 30
J u l y 29
Aug. 31
Sept. 30
Oct. 31

15
9k
18k
16
710
211
1*25
160
67
1*07
222
805
202

1*36
661
567
682
52k
208
116
3#
3 kk
100
18k
8k3
330

30

—
—

—

135
2k6
216
1*22
1,395
922
1,11*1.
. 850
830
1,135
920
909
2*12

1,957
2,682
2,H*1*

1,961

30
35

1,978
2,009
1>917

1,861

1,8#

2,018

1,971

2,203

1,6#

Forthcoming Large O f f e r i n g s , a s of November 1+
Issuer

Type

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

CORPORATE
United Gas
. New England Telephone & Telegraph
National-Tea Company
Pacific lighting
Michigan Consolidated Gas
Commonwealth Edison
Southern Co.
•K-San Diego Gas and E l e c t r i c Co.
/'.'.'heeling S t e e l
Consolidated Edison Co. of New York
New Jersey B e l l Telephone
Radio Corporation of America
Sheraton Corporation
-

1st & coll. bds.
Deb. .
Conv. SF deb.
P f d . stock
1 s t mtg. b d s .
Common stock
Common stock
1 s t mtg. b d s .
Deb.
1st & r e f . bds.
Deb.
Conv. deb.
Deb.

20.0
30.0
15.0
20.0
30.0
1*1.6
.26.1*
18.0
19.1
70.0
25.0
100.0
15.0

GoO.

9.0
10.0
6.5

November
November
November
November
November
November
November
November
November
December
December
December
1956

9
15
15
15
16
16
22
29
30
6
11*

STATE AND LOCAL GOVERNMENT

S t a t e of Oklahoma
Dallas", Texas
S t . Louis Bd» of Education, Hiss our i




G.O. •
G.O.

November 9
November 10
November 15

H.llj.

F-2

Forthcoming Large O f f e r i n g s , as of November h (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 GOVERNMENT (Cont'd)
Maryland S t a t e Roads Commission
Commonwealth of Massachusetts
Sonoma Co. Flood Control and ITater
Conservation D i s t . , C a l i f .
Georgia Rural Roads Authority
*-Orlando, F l o r i d a
-x-New York, New York
Onondaga Co. water Authority, N. Y.
Los Angeles, C a l i f o r n i a
S t a t e of Colorado
C a l i f o r n i a Toll.Bridge Authority
Connecticut Expressway
Inter-American Center Auth., F l a .
Texas Turnpike Company
Michigan Turnpike Authority.
C a l i f o r n i a Toll Bridge A u t h o r i t y
• Louisiana Turnpike Commission
Oklahoma Turnpike Authority
Pennsylvania Turnpike Commission
Washington S t a t e T o l l Bridge Auth.
Port of New York Authority

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

15.0
1#.8
"

5.7
1lu5
5.U
50.0
12.6
20.0
8.0
U6.0
100.0
25.0
137.0
186.0
235.0
100.0
I2i6 e 0
62 oO
227.0
16.0

November 15
November 16
November
November
November
November
December
December
December
December
19#
1955
1955 ,
1955-56
1955-56
1955-56
1955-56
1955-56
1956
1956

17
22
22
22
6
6
6
13

OTHER
None
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 .
1 / Includes corporate and other issue'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 million 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 .