Full text of H.16 Capital Market Developments : October 3, 1957

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Not for Publication

DECONTROLLED AFTER SIX MONTHS

H.lU

-

October 3, 1257

CAPITAL MARKET DEVELOPMENTS
Large public security offerings for new capital issued during
the week ending September 27 totaled $50 million for corporations and
S36 million for State and local governments. The calendar for this week
includes corporate offerings totaling £195 million and State and local
'
government issues aggregating
million.
Bond yields - Changes in yields on outstanding bonds were mixed
again last week. Yields on corporate bonds increased, while U. S. Government (old series) yields were stable and yields on State and local government and U« So Government (new series) obligations declined.
An Aa-rated 30-year, first mortgage electric utility bond issue
was offered to investors this week to yield it.78 per cent — 7 basis points
below that for the last comparable issue, an offering made on September 6.
Stock prices - With this report, the stock price and yield
indexes shown on Exhibit C have been changed to the Standard and Poor's
series. The use of this price, series, which is the most comprehensive
one available, enables comparison to be made of daily figures with weekly,
closing prices. The yield series now shown on Exhibit C corresponds to
the new price series in coverage, whereas previously the price and yield
figures were for different series.
Stock prices, as measured by this Standard and Poor's index of
500 common stocks, declined last week, closing at 1*2.55 on September -27.
'On Wednesday of this week, the index stood at 1*3.10. Trading volume •
increased substantially last week, but has declined thus far this week.
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

HIGH-GRADE

BOND YIELDS

\ U. S. GOVERNMENT / '
V
LONG-LE ,M
<f

X a /

1953

1954

1955

1956 .

long-term */
Corporate
Aaa 1/

Date

Old series'

Mew series

1957

Spread between
U. S. (
State and
local govt. (old serjS o ' a h d
Aaa | /
Corporate State and
local Aaa

(Per cent)
3.42
2.99
3.09
2.85
3.17
2.91
3.79
3.07

1957 -High
Low

2,-lk (9/27)
3.66 ( V 1 2 )

3 J 0 (6/21)
3.15 (2/8)

August 30
September
September
September
September

it. 12
U.12
U.ll
4.12
ii.lU

3.60
3.58
3.60
3.68
3.68

6
13
20
27

(6/19)
(1/9)
(1/8)
(1/23)
(12/23)
(1/7)
(12/28)
(3/2)

(6/6)
(12/26)
(1/9)
(8/7)
(8/5)
(1/7)
(12/21)
(2A7)

1953 - High
Low
1951 - High
Low
1955 - High
Low
1956 - High
Low

3.15
2.78
2.7k
2.W,
2.91
2.62
3.19
2.80

3 / Weekly average of daily figures.

n.a.

.38 '
.19
.43
.32
.34
.13
.U4
.13

.81
.30
.61
.29
•70
.54
.68
.32

3.66 (8/16) 3.45 (8/29)
3.22 (2/8) 2.76 (2/21)

.54
.25

.49
.14

3.63
3.61
3.59
3.63
3.61

.52
.54
.51
.44
.46

.15
.14
.17
.25
.27

3.03
2.89
3.39
2.92

2.73
1.98
2.21
1.90
(8/5) 2.3k
(6/10) 2.05
(12/28)3.05
(2/3) 2.17

3.1*5
3-kh
3.13
3.43
3-41

(6/25)
(1/8)
(6/10)
(9/2)
(9/8)
(5/26)
(12/27)i
(2/23)

Average term of bonda included la 25-26

' 2/ Weekly averages of daily figures. The old series includes fully taxable,
marketable 2 l/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 lU 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/h per cent bond of 1978-83y Thursday figures. Only general obligation bonds are included; average
term is 20 years.
N o t e . — H i g h s and lows are for individual series and may be on different dates
for different series.




EXHIBIT B

LOWER - GRADE BOND YIELDS

State and
local govt,
rev. y

State and
local govt.
Baa 2/

Corporate
Baa 1/ •

(Per cent)
1953 - High
195U - High
. 1955 - High
1956 - High
1957 - High
Low
August 30
September
September
September
September

6
13
20
27

3.89 (9/18)
3.50 (1/2)
3.71* (1/8)
3.W» (12/31)
3.63 (12/30)
3.15(1/11)
U . I t l (12/28)

3.79 (6/25)
2.96 (1/8).
3.32 (1/7)

2.93
3.26
3.02
1.22

(12/2?)

i

m

s

(8/5)
(12/29)

(1/6)
-

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)

U.U2 (V12)

3.90 (2/21)

3.70 (2/22)

It. 87

U.51
h.h9
U-U9
lt.U9
h.U7

y

a. 9 i

u.91
h.9h
It. 96

1/ Weekly average of daily figures. Average term of bonds
included is 25^26 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

, Stock price
index 1/

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

Stock market custx
Customers'
Total. debit bal- loans to
ances h/
"others" jj/
(Millions of dollars)

1953 - High
Low
195k - High
Low
1955 - High
Low
1956 - High
1957 - High
Low
July
September 13
September 20
September 27

26.51* (1/2)
22.95 (9/18)
35.98 (12/31)
21*. 93 (1/8)
1*5. 89 (12/9)
35.28 (1/11,)
1*9.61* (8/3)
13.22 (1/20)
1*9.08 (7/12)
1*2.55 (9/27)

2.5
0.9
3.7
1.1*
lt.6
1.5
3.1
1.5
2.7
1.1*

1*8.51
1*5.81*
1*1*. 80
1*3.69
1*2.55

2.2
1.9
1.8
1.6
2.5

6,25
5.38
5.82
1*.32
1*.1*2
3.61*
1*.35
3.82
U.55
. 3.91

2,1*55
2,055
3,1*36
2,1*05
L,030
3,537
1,01*7
3,911*
L,031
3,832

1,665
1,311*
2,388
1,653
2,805
2,517
2,823
2,71*0
2,887
1,713

780
661*
1,01*8
71*6
1,21*1
1,018
1,267
1,155
1,163
1,092

3.91*
U.15
l*.2l*
{*.31*
l*.i»5

l*,00l*
3,929

2,885
2,833

1,119
1,096
1,092
1,105
n.a.

n.a.

, available.
1/ Standard and Poor's composite 'Index of 500 common stocks, weekly closing
prices, 19iil-b3"10. Monthly data are averages of daily figures rather than of
Fridays* only. Highs and lows are for Friday's data only.
2/ Averages of daily trading volume on the New York Stock Exchange.
2/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve.
U/ 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.
y 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.




Exhit.it D . '

H.lh

Corporate and State and local Government
Serurity Offerings and Placements
(In mil]iony ol' dollars;
K(-w capital
1957

1

Corporate,
1956
|

liul,
6l. 6
390

535
312
>33

1,78
8b6
687

765
5b6
39b

378
L9o
735

1,27
3b0
61,2

597
61,L

521
572
e/h50

1,08
206
357

1,70
21,9
bo6

^ 3 /
1,08^
1,088

1,162-/
632
QUO

e/600

639
31,7
bo?

3,1,79
3,18k
e/2,975

2,102
2,8U5
2,556
2,922

1,911
2,695

2,052

1,821
1,705
e/l,51i6

1,1,90
1,6O3
971
1,395

1,365
1,1,18
1,12b
1,98b

6,663
e/9,638

1,907
7,1,63
10,38b

. Li ,216
6,127
8,821

3,526
e/5,072

3,093
b,o6b
5,159

2,802
3,927
5,911

573
712
817

April
May

92b
771
1,189

818
1,11,6
81,1

July
Amgust
September

e/1,075
e/900
e/I,0U0

1,063
65b
838

October
November
December

e/1,000

1st half
Three Quarters
Year

loc

T

7b2
573
506

l,o63
1,071
l,3bb

ouarter
ouarter
nuarter
ouarter

i9i7T

535
hu7
1,223

January
.February
"arch

k.lst
'2nd
3rd
bth

State
1955

,

670

2,165

r 919
658^
1,08

Excluding finance companies L/
1st
2nd
3rd
bth
Year

quarter
ouarter
Quarter
ouarter

3,268
2,92k
e/2,675
j

1,61,7
2,5bl
2,21,6
2,826
9,259

•

1,727
1,870
1,1,1,1,
2,511
7,595

1/ 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.
2/ Includes £637.2 million AT&T convertible debenture issue.
"3/ Includes $571.5 million AT&T common stock issue .
17/ Total new capital issues excluding offerings of sales and consumer finance
| co-pan u»s,
*
Note.—Details may not add to totals due to rounding.




H.lU

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

-

Corporate

Month

1956 - August
September
October
November
December
1957 - January
F ebruary
March
April
„ May
June
July
August

:

State and
local government

f 217
#8
3^6
701
•

U'iO

5#
. 671
788
.177
329
877
526

Other 2/

37

35
18U
383
135
201
386
306
19li

35
100

50

125
25
39
25

2h8

176
26$
357

—

Large Individual Issues Offered September 1 through 27

Issuer

Type 3/

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

Rating

CORPORATE
Tampa Electric Co.
1st mtg. bds. 18.0
1987
S.F. deb.
Duke Power Co.
• 50.0
3982
El Paso Natural Gas Co.
Conv. deb. - 60.0
1977
Texas Eastern Trans. Co. 1st mtg.P.L.bds. 30.0
1977
New Jersey Bell Tel. Co.
Deb.
3u.u
1993
Sperry Rand Corp.
110.u
S.F. deb.
1962
Lehigh Portland Cement Co. S.F. deb.
30.0
1979
Philadelphia Elec. Co.
Ust&ref. mtg.
bds.
Uo.o
1987
Niagara Mohawk Pwr. Co.
Gen .mtg.bds .
5U.U • 1987
Consolidated Nat. Gas Co. Deb.
3u.o . 1982
Pacific Power &. Light Co. 1st mtg.bds .
20.0
1987
Consumers Power Co.
j1st mtg. bds. 35.0
198?
Utah Power f Light Co.
j1st mtg. bds. 15.0
1987




5
h 7/8
5 1A
5 5/a
h 7/8
5 1/2
h 7/8
L5/8
7/8
5

h

^3/h

It 3/L
5 1/1-

Aa
Aa
Baa
5.25
5.71
• Baa
Aaa
ii-75
5.5u . Baa
L.B8
A
L.85
h.7h

U.63
It .82
k.86
5.70
fi.71
5.lu

Aaa
Aa
Aaa
Baa
Aaa
A

P..1L

E-2
Lart e Individual Issues Offered September I through 27 (Cont'd;

Type 3 /

Issuer

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

hating

STATE & LOCAL GOWN?!!-NT
Santa M onica U.S.D.,Calif.
G.O.
5.0
Dade Co., Spec. Tax S.D.
No. 1 , Florida
G.O.
9.$
Houston, Texas
VIater rev. 10.0
V-innebago Co. S.D. T'o. 205,
Illinois
G.O.
5.5
Cook Co., Illinois
10.0
G.O.
Los Angeles, Calif.
G.O.
5.0
Baltimore Co., M d.
G.O.
23.6
Vvichita, Kansas
V.ater rev. hi.8
Springfield, Mass.
G.O. .
5.2
Penna. Gen. State Auth.
Rev.
25.0
Buffalo, New York
-G.O.
8.1
Oakland U.S.D., Calif.
10.0
G.O.
Colorado Springs, Colo.
Util. rev.
5.5
Territory of Hawaii
Hwy. rev. 12.5
State of Colorado
6.0
Hwy. rev.
1

.

3A

2.50-3.65

Aa

1959-76/66
1958-91/61

L.30
It.5?

3.IO-I4.25
3.oo-h.50

A
Baa

1958-73
1958-77
1958-77
1959-97
1962-67/7C'
1958-82
1959-83/57
1958-72
1958-82
195t-79/72
1959-87/66
1959-73

Aa
3.hii
2.50-3Ji5
2.60-3.80 A
3.78
3.66
Aa
2.60-3.75
2.80-1I.75
A
3.90
ii.1,9
3.50-1. .50 A '
Aaa
3.09 . 2 . 3 0 - 3 . 1 5
—
3.79
' 2.80-3.85
2.96
2.35-3.00 . Aaa
2.5o-3.5o
Aa
3.143
2.50-3.50 Aa
3.53
3.25-h.8o
1.85
A
2.60-3.20
Aa
3.23

1958-77

OTIIEP

Kingdom of Belgium

Ext.S.F.deb . 3 0 . 0

1972

5 1/2

5.75

——

State and local government security offerings of &5 million and over.
£/ 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
obligation; ReV., revenue bonds; G .R., general obligations additionally secured.by
facilities revenues; L.L., limited liability obligations secured by pledge of
designated revenues.

#



H.llr

Exhibit F
..Forthcoming Large Public Security Offering's for New Capital
(Other than U.S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
Subsequent to
During month following
date shown
date shown
State and Other 2/
State and
Other 2/ Corporate
local govt.
local govt.

Date of
computation

Corporate

1956 - Sept. 28
Oct. 31
Nov.. 30
Dec. 31" "
1957 - Jan. 31
Feb. 28
Mar. 29 '
Apr. 30
May 31
June 28
• July 31
Aug. 30
Sept. 30

315
603
1I36
1.76
591
7b0
I46I
187
525
370
526
578
5#

359
162
ii8
280
153
153
290
179
97
172
252
2h 3
370

__

23
100 •
35
25
25
25
30

1,009
990
181
7#
966
795
186
2#
. 525
1)15 *
811
8L5
"6b7

1,197
955
979
7#
618

631
862
#6
388
198
51b
1x39

587

23

100

35
25
25'
25
30
15

Forthcoming Large Offerings, as of September 27

Issuer

Type

Amount
Approximate date
(millions
of offering
of dollars)

COPPOPATE
Pacific Telephone f Telegraph Co.
Gulf States Utilities Co.
Southwestern Bell Tel. Co.
N-orthern Natural Gas Co.
Shamrock Oil 8 Gas Corp.
Columbia Gas System, Inc.
.Chemical Corn Exchange Bank
Commonwealth Edison Co.
^Consolidated- Edison Co.
American Telephone f Telegraph Co.
National Cylinder Gas Co.
•^Consumers Power Co.
Southern New England Tel. Co.




Common stk.

18.9

1st mtg. bds.
17.0
Deb.
loO.O
I6.0
. Pfd. stk.
Conv. sub. deb.. " 17.5
Deb.
25.0
Capital stk.
U8.U
Pfd. stk.
25.0
Istf ref. mtg.bds. 60.0
Deb.
250.0
Conv. sub. deb.
17.5
.Conv. deb.
35.2
Common stk.

35.u

Sept. 30
(rights expire)
Oct. 1
Oct. 2
Oct. 2
•Oct. 3
Oct. 1*
Oct. 7
(rights expire)
Oct. 9
Oct. 22
Oct-. 29
Oct.
Nov. 1
(rights expire)
Nov. 8
(rights expire)

H.lli '

F-2
Forthcoming Large Offerings, as of. September 27 (Cont'd;

Issuer

Type

Amount
Approximate date
(millions
of offering
of dollars)

•STATE AND LOCAL GOVFRN'TNT
State of New York
C.O.
State-of Oregon
C-.O.
City S Co. of San Francisco, Calif.
G.O.
State of Ohio
Highway rev.
Cincinnati, Ohio
G.O.
^Chicago Park Dist., 111.
G.O.
•» Mecklenburg Co., N.C.
G.O.
*Los Angeles Dept. of Wtr.gPwr.,Calif
Rev.
Dayton City Sch. Dist., Ohio
C.O.
San Diego Unified Sch. Dist., Calif.
G.O.
Commonwealth of Massachusetts
G.O.
.
Pittsburgh, Pa.
G.O.
Maryland State Roads Commission
C.O.
Washington Toll Bridge Auth.
Rev.
Milwaukee, Wisconsin
0.0..
State of California
C.O.
State of Missouri
•
• G.O.
State of Texas
C.O.
Jacksonville, Florida
Utilities rev.
1 University System Rldg. Auth., Ca.
Rev. .
Pennsylvania Turnpike Commission
Rev.
Inter-American Center Auth., Fla.
Rev.
New York State Thruway Authority
G.O.

2lj.U
26.6
26.9
31.0
5-3
6.0
5.0
18.0
8.0
10.0
65.0
6.6
15.0
30.5
5.5
85.0
30.0
i?.5
30.0
12.0
62.0
20.0
50.0

Oct. 1
Oct. 1
Oct. 7
Oct. 8
Qct. 8
Oct. 8
Oct. 8
Oct. 9
Oct. 10
Oct. 15
Oct. 15
Oct. 16
' Oct. 16
Oct. 17 Oct. 22
Oct. 23
1957
1957
1957
1957
1957
1957
1957

OTUER
Union of South Africa

Ext. loan' bds.

lb.O

1957

*—Included in table for first
1/ Includes corporate and other issues of &15 million and over; State and
local government issue's of £5 million and over.
?/ Includes foreign government'and International Bank for reconstruction
'and Bevelopment issues.
Note.—Deletions for reasons other than sale of issue: None.

e



H.lU

Exhibit G
Iields on New and Outstanding
Liectrie Power Bonds, Rated Aa and A 1/

Date

1952 - 1956
High
Low
1957 - January
February
March
April 3
10
12
May 10
15
16
• 21
23
29
June 5
7
11
July 3
10
^
11
16
17
August ll|
September 5
6
25

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

2.93(3/31/51)
h.kk

1.25
None
in 29

62

- 3

U.58(12/6/56)
3.00(3/17/51)

70
-15

57

1.62

6U

hk

None
In 50

k5

50

59

in 60
in 50
U.53;

L5o
U.38 2/

.65
51

ii.63

75

14.78

.87

U.57
U.77
1.65

. 1*8
68

5.00
U.80
L85

75
51
. 56

h9

k.53 2/

52
52

I4.70

69

5.00

5.25

98
123

5.10 .

106

in 80 2/

14.88 J/

61*
7U

ii.90

71

56

5.10

.

51

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. Other issues have no such provision.