Full text of H.16 Capital Market Developments : October 6, 1954

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Not f o r P u b l i c a t i o n DECONTROLLED AFTER SIX MONTHS
U ' l f -

October 6 , 195k
. CAPITAL MARKET DEVELOHENTS

Volume of s e c u r i t y o f f e r i n g s small - Th,e. amount of l a r g e
S t a t e and l o c a l government i s s u e s o f f e r e d p u b l i c l y f o r new c a p i t a l
d u r i n g t h e week ending October 1 was 1±8 m i l l i o n d o l l a r s ; only one
l a r g e c o r p o r a t e o f f e r i n g w i t h proceeds of 20 m i l l i o n was i s s u e d -in
t h i s p e r i o d . The volume of l a r g e p u b l i c o f f e r i n g s t o be f l o a t e d
t h i s week i s 108 m i l l i o n d o l l a r s f o r S t a t e and -local governments
and 37 m i l l i o n f o r c o r p o r a t i o n s .
October outlook - The October e s t i m a t e of c o r p o r a t e o f f e r - ,
i n g s f o r new c a p i t a l i s 75>0 m i l l i o n d o l l a r s , about 30 per c e n t g r e a t e r
t h a n t h e t o t a l f o r October 1953 and 1$ p e r c e n t g r e a t e r t h a n l a s t
month. I n c l u d e d i n t h i s e s t i m a t e a r e t h e proceeds from two very l a r g e
i s s u e s — t h e 131 m i l l i o n d o l l a r common stock o f f e r i n g of N a t i o n a l C i t y
Bank of New York, t h e s u b s c r i p t i o n r i g h t s f o r which e x p i r e on Octob e r 22 and w i l l t h e r e f o r e be counted i n t h e October t o t a l , 1 and t h e
100 m i l l i o n d e b e n t u r e i s s u e of C o n t i n e n t a l O i l . The volume of l a r g e
p u b l i c i s s u e s i s expected t o be 3li3 m i l l i o n d o l l a r s or about. 1*5 per
c e n t of t o t a l new c a p i t a l . \A s u b s t a n t i a l volume of r e f u n d i n g i s s u e s
i s scheduled f o r o f f e r i n g t h i s month. The October volume of S t a t e and l o c a l government i s s u e s
i s e s t i m a t e d a t foO m i l l i o n d o l l a r s , 22 p e r c e n t l a r g e r t h a n t h e
October volume l a s t y e a r b u t 12 per c e n t under t h e September, 195k
t o t a l . Large i s s u e s a r e expected t o account f o r almost 70 p e r c e n t
of t h e t o t a l e s t i m a t e . The 100 m i l l i o n d o l l a r revenue bond o f f e r i n g
of t h e Department of Highways, V i r g i n i a , and a s t a t e of Massachusetts
i s s u e of $$ m i l l i o n d o l l a r s a r e i n c l u d e d i n t h e October c a l e n d a r .
Bond y i e l d s remain s t a b l e - Y i e l d s on c o r p o r a t e Aaa and
Baa, U. S. Government and h i g h - g r a d e m u n i c i p a l bonds d i d n o t change
d u r i n g t h e week ending October 1 .
Stock p r i c e s d e c r e a s e - The SEC i n d e x of 26£ common stocks,
d e c r e a s e d m o d e r a t e l y l a s t week t o 198.3 b a s i s p o i n t s .




F u r t h e r 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 o m e x h i b i t s — More d e t a i l e d i n f o r m a t i o n c o n c e r n i n g r e c e n t c a p i t a l
m a r k e t d e v e l o p m e n t s w i l l be found i n t h e f o l l o w i n g e x h i b i t s which
are attached hereto:
-

A - Bond Y i e l d s
B - Stock Market
C - C o r p o r a t e 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 P l a c e m e n t s .
D L a r g e Public Security I s s u e s
f o r New C a p i t a l ( o t h e r .than
U. S . T r e a s u r y )
E - Forthcoming Large P u b l i c 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 ( o t h e r
than.U. S. Treasury)
F - Y i e l d s on New and O u t s t a n d i n g
P u b l i c U t i l i t y Bonds, r a t e d Aa
and A

B u s i n e s s F i n a n c e and C a p i t a l Markets S e c t i o n ,
D i v i s i o n of R e s e a r c h and S t a t i s t i c s ,
Board of Governors of t h e F e d e r a l R e s e r v e System.




EXHIBIT A

BOND YIELDS
PER CENT PER ANNUM

4
CORPORATE

Baa

CORPORATE

Aa

I V/r
U.S.

|
|v |
GOVERNMENT
LONG-TERM

/ HIGH-GRADE

MUNICIPAL

AND P O O R ' S

COIP

IIIIII II 1 III IIIfIIII I II
M

J
S
1951

1952

Corporate i /
kaM | Baa

Date

1954

1953

Spread between
U. S. Govt, Corporate Aaa
long-term 2 / and U. S. Govt.

Highr
grade
Man.3/

(Per cent-per annum)
1951 - High
Low
1952 - High
Low
1953 - High
Low
195U - High
Low
September
September
September
September
October 1

3
10
17
21*

3.03
2.65
3.03
2.91
3.12
2.99
3.09
2.85
2.88
2.89
2.89
2.89
2.89

3.63
3.16
3.63
3.1*8
3.89
3.50
3.7U
3.1*6
3.1*7
3.1*7
3.1*7
3.1*8
3.18

2.71*
2.38
2.79
2.56
3.15
2.71*
2.7U
2.1*1*
2.50
2.51
2.51

•

•

.

2

-£

2.51

.36
.25
.37
.35
.38
.19.
.1*3
.33
.38
.38
.38
.38
.38

2.26
1.59
2.1*3
2.00
3.U*
2.1*3
2.56
2.23
2.21*
2.26
2.31
2.332.33

y Federal Reserve; weekly average of dally f i g u r e s .
3/ Standard and Poor's Corporation; Wednesday f i g u r e .
Koto.—Highs and lows are f o r individual series and may be on d i f f e r e n t dates
for different series.




STOCK MARKET

/V

A

A/y

,A

v

//

:S
47-49.100 -

1
i

-- 1

I

VOLUME

I

Bank l o a n s
Customers1
to "others"
Common s t o c k
Trading
debit
for purchases
S t o c k p r i c e volume 2 [
yields 3/
balances h/
of s e c u r - '
index V
(per cent .
(millions
(millions
ities 5/
( 1 9 1 7 - 1 9 - 1 0 0 ) of s h a r e s )
p e r annum) | o f d o l l a r s )
(millions
I
of d o l l a r s )
1 9 5 1 - High'
1952 - H i g h
Low
1953 - H i g h
195U -

High
August
September
September 17
S e p t e m b e r 2h
October 1

158.6
140.3
165.3
151.7
167.1
3M.0
199.3
156.5
191.U
191.0
195.5
199.3
196.3

.3.h
1.1
2.0
0.9
2.5
0.9
3.2
1.U
2.6
2.0
2.1
2.2
1.9

6.55
5.55
5.77;
5.135.75'
5.15
5.33.
li.6l
It.75

1,297
1,219

1,328
1,211
1,665
1,31b
1,967
1,653
1,967

31*0
260

g

327
252
U37
328

W.8
121
ii20
U30

y SEC i n d e x D f 2 6 5 common s t o c k s , w e e k l y c l o s i n g p r i c e , 1 9 3 9 - 1 0 0 ; c o n v e r t e d t o
19lt7-u9-100 by f e d e r a l R e s e r v e .
2 / W e e k l y a v e r a g e s o f d a i l y t r a d i n g v o l u m e on Hen York S t o c k E x c h a n g e .
3 / M o o d y ' s 2 0 0 common s t o c k s ; e n d o f m o n t h f i g u r e s .
• I / End of m o n t h f i g u r e s f o r member f i r m s of New York S t o c k E x c h a n g e ; 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 s e c u r i t i e 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 i n New York a n d C h i c a g o ;
e x c l u d e s l o a n s f o r p u r c h a s e of U . S . G o v e r n m e n t s e c u r i t i e s .
On March h , 1 9 5 3 , t h e
l a s t d a t e on w h i c h f i g u r e s f o r a l l r e p o r t i n g b a n k s w e r e a v a i l a b l e , New York a n d
C h i c a g o a c c o u n t e d f o r hS p e r c e n t of s u c h l o a n s .
I n t h e p a s t New York and C h i c a g o
l o a n s have f l u c t u a t e d more than t o t a l l o a n s .
n.a.—Not available.
,
N o t e . — K i s h s a n d 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 C
C o r p o r a t e 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 )

1951i

Nevr c a p i t a l

Corporate
1953

1952

S t a t e and l o c a l
19#T
~WT
396

8

gf
951

s

486
652
859

779
675
1,123

870
990
769

3

e/725

483

1,237 2 /
291
390

279
e/25o:
5/625

519
259
,475

999
3W
851

e/550

452
408
774

1,979

1,372
2,335

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

660

e/ioo
3/650
e/750

1,613
1,998
e/1,775

666

%

577
1*291,438
1,912
2,578
1,561 ,
2,444 ^

8,495 2/

.

e/1,155
::7i6^

~WT

388
359
426;

544
439

357
300
146

328
648.
434

.
'

454
394625:
243
199
473
302
183
395

802
1,474
916
880
4,072

Excluding f i n a n c e companies ^

1,562

1,931
e/1,710

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

1,961

2,521
1,877
2,091
8,152

1/ I n c l u d e s 1^90 m i l l i o n d o l l a r American Telephone and Telegraph d e b e n t u r e
"~~
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 d e b e n t u r e i s s u e .
r
3 / T o t a l 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.




Exhibit D
Large P u b l i c 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
( o t h e r t h a n U. S . T r e a s u r y ) 1 / .
Proceeds of Large I s s u e s O f f e r e d
(millions-of dollars)

Month

S t a t e and
l o c a l government

Corporate

1953 - September
October
November
December
195U - J a n u a r y
February
March
. April '
May
June
July
.
August
September

322
323
' 25k
. 571
16U
213
378
557
557

375
216 96:. .
963
289
103
160
169
32k
.350
336
75
335

Other 2 /

3k
51
19
50
119
50

603

92
86
U55

—

Large I n d i v i d u a l I s s u e s O f f e r e d d u r i n g September

Issuer

Type 3/

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

Rating

CORPORATE
S o u t h e r n B e l l Telephone
and Telegraph Co.
Deb.
" Tennessee Gas Transmission
Deb.
American Tel._& T e l . Co.
Deb.
Dayton Power & L i g h t Co. 1st mtg. bds.
Northern S t a t e s Power Co. 1st m t g . b d s .

2 5 . 0

2ii.5
2 5 0 . 0

'

15-0
2 0 . 0

"

1989
197k
198k
19814.
198L •

3
k
3
3
3

1/8
1/k
1/k

iulO
3.12

1/8

3 . 0 1

3.02

3.00

Aaa
Baa
Aa
Aa
Aa

STATE AND LOCAL GOVERNMENT
Cook County, I l l i n o i s
Los Angeles, C a l i f o r n i a ,
Dept. of Yiater & Power
J e r s e y C i t y Sewerage
A u t h o r i t y , New J e r s e y
L o u i s v i l l e and J e f f e r s o n
C o . , Sewer D i s t . , Ky.
Texas V e t e r a n s Land Board




G.O.

7.6

1955-74

1.90

0.75-2.05

Aa

Rev.

19,5

1955-81

2.26

0.65—2.50,

Aa

Rev. .

2 2 . 0

1959-93

3.26

1.80-3.1;0

Baa

Rev.
G.O.

2.$h

1 0 . 0

0.70-2.70
1.15-2.35

Aa
Aa

8 . 0

1955-9^/
1960-89='

2.10

D-2
Large I n d i v i d u a l I s s u e s O f f e r e d d u r i n g September ( C o n t ' d )

Issuer

Type y

Coupon
Amount
Offering
r a t e or
trillions
Maturity net i n t e r yield
of
e
s
t
c
o
s
t
dollars)

Rating

STATE AND LOCAL GOVERNMENT
""(Cont'd)
Public Housing A u t h o r i t i e s
Wyandotte School D i s t r i c t , Michigan
P i t t s b u r g h P u b l i c School
D i s t r i c t , Pennsylvania
S t a t e of South C a r o l i n a
S t a t e of Connecticut
D e t r o i t , Michigan
Kansas Turnpike
S t a t e of Ohio
S t a t e of Tennessee
Macon County, I l l i n o i s
Upper Moreland-Hatboro
J o i n t Sewer A u t h . , Pa.

7.3

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

5.0

.

20.0

7.0
5.2
160.0
30.0
5.U
7.0

5.U"

OTHER
None

by pledge of d e s i g n a t e d r e v e n u e s .
\ J Bonds m a t u r i n g 1988-89 n o t r e o f f e r e d .
cy Bonds m a t u r i n g 195^ n o t r e o f f e r e d .
n.a.—Not a v a i l a b l e .




1955-72
1955-79
1955-7U
1955-814. .
.1955-33
199L 5,y
1956-6U- '
1961-65
1955-73
1956-86

2.33

0.65-2.55

2.23

0.90-2.10

2.02
1.77
1.72
2.52
3.I4I4
1.38
1.60
. 1.9U

0.70-2.25

* n.a.

I.25-3.15

•

A

A
• Aa
Aaa
0.65-2.25
A '
0.75-2.85
r3.1t0
Aa
0.95-1.50
A
l.ao-1.60
Aa
0.75-2.10

0.70-2.00

Exhibit E
Forthcoming Large P u b l i c 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
( o t h e r t h a n U. S . T r e a s u r y ) 1 /
Expected. Proceeds f r o m Forthcoming Large I s s u e s
Date of
computation
- Sept.- 29
O c t . 30
Nov. 30
Dec. 31
- J a n . 29
Feb. 26
Mar.'31
Apr. 30
May 28
June 30
J u l y 30
Aug. 31
Sept.. 30

During month f o l l o w i n g
d a t e shows*
S t a t e and
Corporate
Other 2 /
l o c a l govt,
180
73
9k8
232
118
108
20k
323
332.
336 .
100
33k
3k3

273
283
'537
179
161.
k98
555
525
596
.86
5k .
300 383

73
123

50
27

:

Subsequent t o
d a t e shown
cor

p°

rate

1,016
1,129
1,616
669
k79
690
•
555
6k7
526
532
303
608
klk

.

1,182
978
1,752
1,238
1,660
1,916
2,789
2,322
1,971
1,52k
1,553

88
138
50
27

1,876

• 2,158

—

Forthcoming Large O f f e r i n g s , a s of October 1
Type

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

CORPORATE ,
Public S e r v i c e Company of Colorado
-Indiana and Michigan E l e c t r i c Co.
Texas Power and Light Co.
New York -Telephone Co.
N a t i o n a l C i t y Bank of Nevr York
Laclede Gas
Continental Oil
Kentucky U t i l i t i e s
Kansas C i t y Power and L i g h t
Long I s l a n d L i g h t i n g
Public S e r v i c e of Oklahoma

1 s t mtg.. bonds
1 s t mtg. bonds
1 s t mtg. bonds
R e f . mtg. bonds
Common s t o c k
1 s t mtg. bonds
Deb.
1 s t mtg. bonds
1 s t mtg. bonds
1 s t mtg. bonds
1 s t mtg. bonds

20.0
.16.5

15.0

1*0.0'
131.3

20.0

100.0
15.0

16.0
20.0
20.0

October k
October 5
October 18
October 19
October 22
October
October
November
195k
195k
January

STATE AND LOCAL GOVERNMENT
S o u t h e a s t Alabama Gas D i s t r i c t
M i s s i s s i p p i River Bridge A u t h . , La.
Kansas C i t y , MissouriC l e v e l a n d , Ohio
.
L e o r g i a S t a t e T o l l Bridge A u t h o r i t y
Department of Highways, V i r g i n i a




Rev.
Rev.
Rev.
Rev.
Rev.
Rev. -

19.5

65,0

12.0

11.0
6.7

100.0

October
October
October
October
October
October

it
5
6
7
13
Ik

E~2 .
Forthcoming Large O f f e r i n g s , as of October 1 (Cont'd)
Type

Issuer

r

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

STATE AND LOCAL GOVERNMENT (Cont'd)
Rev.
n.a.
n.a.
n.a.
Rev.
n.a.
n.a.
n.a.
. G.O.
n.a.
- n.a.
n.a.
Rev.

Alexandria, V i r g i n i a
^Kentucky, S t a t e Property and Bldg. Comm.
Milwaukee, Wisconsin
Greater Baton Rouge Port Comm., La.
Colorado Springs, Colorado
S t a t e of Massachusetts
Wichita, Kansas
P h i l a d e l p h i a , Pennsylvania
Chicago, Illinois
F l o r i d a S t a t e Board of Education
D a l l a s , Texas
Oklahoma Turnpike Authority
New Jersey Highway Authority
Lansing, Michigan
•
Dade County Port A u t h o r i t y , 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
Maryland S t a t e Roads Commission
Warren, Ohio
v
Springfield, Illinois
Davenport, Iowa
New York Thruway
Indiana Toll Road Commission.
^Michigan 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 Water & Power
F l o r i d a S t a t e Turnpike Authority
J e r s e y City Sewerage Auth., N. J .
*North Carolina Turnpike Authority
OTHER
None

Rev.
Rev.
Rev.

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

8.2
TM
5.0
12.5
10.0
55.0
6.9
25.8
12.5
25.7 1
10-15.0
175.0
30^50.0
6,0
21.0
85.0
235.0
70.0
5.0
- 9.0
5.0
50.0
225.0
186.0
315.0
8-10.0
20.0
15-20.0
89.0
16.0
200.0

,
,

October lit
October 19 .
October 19
October 20
October 20
October 20
October 26
October 26
October 27
- October
November 29
1956
195k
1954
1954
1954
195k
1954
. 1954
195', v
1%
1951* 1954
1955
1955
1955
1955
1955
1955
1955
' 1955

n
. A.

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 over;
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 o 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
Y i e l d s on I-Jew and Outstanding
Public U t i l i t y Bonds, Rated Aa and A V
• Date

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 yields
Amount above
Amount above
Actual
Actual
seasoned y i e l d s
seasoned y i e l d s
(per c e n t )
(per c e n t )
(basis points)
(basis, p o i n t s )

19^2 average

3.18

Hi

3.37

12

1953 a v e r a g e

3

.a

16

3.78

. 2£

1953 - J a n u a r y
February
Uarch '
April
Hay
June
July
August
September. ,
October
November .
Dec&iber

3.25
3.39
3.10
3.18
3.79
None
*3.68
None
None
3.31
*3.28
*3.30

11
• 19
17
16
28

rtone
None
3.#
3.88
3.99
L.10
*1.00
Hone
3.92
3.#
3.12
3.21

29
7
2
10

19Sh - J a n u a r y
February
March
April

3.20
3.02
*2.93
2.99

3.31
• *3.20
3.05
3.10

2
-1
-10
-6

3.15
3.08
3.13
3.20
3.17
3.lit'
3.13
3.12

0
-6
-1
• 5
l
-2
-3
-3

. Hay S
6
11
20
^ - 2 7
June 9
16
17
2k

3.00
2.99

2-5

3.00

J u l y 1h
August 18
25
September 23
29
3°

3.00
.3.6$
3.01
—

29
.

6
7
. '.5

-

^

6 .
0
0
5
h
3

1

0
6
2

23
kl
37
39
30

.

3.13
3.06
3.1$

-1
-6
3

3.10

-3

r

Survey. Except where 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 d u r i n g t h e i n d i c a t e d p e r i o d 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 t h e same d a y .
* — S i n g l e o b s e r v a t i o n , n o t an a v e r a g e .