Full text of H.16 Capital Market Developments : September 1, 1955

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Not f o r P u b l i c a t i o n
DECONTROLLED AFTER SIX MONTHS
Hell*

September 1, 1955
CAPITAL 1.1/LRKLT BEVliLORTHTS

Corporations o f f e r e d 122 million d o l l a r s , and S t a t e and
l o c a l governments 33 m i l l i o n of l a r g e 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 during the week ending August 26. This week too l a r g e
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 12 m i l l i o n d o l l a r s are
scheduled f o r s a l e .
Estimates f o r September - Corporate o f f e r i n g s f o r new
c a p i t a l i n September are estimated a t 525 m i l l i o n d o l l a r s , about
30 per cent l e s s than t h e volume l a s t September. This estimate
does not include 635 m i l l i o n d o l l a r s of c o n v e r t i b l e debentures
which AT&T i s c u r r e n t l y o f f e r i n g t o stockholders however. The
proceeds from t h i s e n t i r e i s s u e w i l l be counted in the October v o l ume, since s u b s c r i p t i o n r i g h t s do not expire u n t i l October 13, a l though much of t h e impact of t h i s i s s u e on the market w i l l probably
occur i n September.
The third quarter estimate for corporate new c a p i t a l
t o t a l s 1,525 million dollars—about one-fourth below that for the
same period of 195U* The difference can be accounted f o r by two
very large i s s u e s , however—300 million dollars of U. S. S t e e l
s e r i a l debentures and 250 m i l l i o n of AT&T debentures "which were
f l o a t e d i n July and September 195U r e s p e c t i v e l y .
The S t a t e and l o c a l government estimate f o r September i s
ilOO m i l l i o n d o l l a r s , about 1|0 per c e n t l e s s than the corresponding
volume a year ago. Two i s s u e s with proceeds of more than 100 m i l l i o n d o l l a r s were included in l a s t September f s t o t a l , but no i s s u e
of t h a t s i z e i s c u r r e n t l y scheduled t h i s y e a r . Total S t a t e and
l o c a l o f f e r i n g s f o r the t h i r d quarter a r e estimated t o be 1,095
m i l l i o n d o l l a r s j u s t s l i g h t l y l e s s than i n the same p e r i o d a year
agoe
Bond y i e l d s - U. S . Government long-term bond y i e l d s
r o s e two b a s i s p o i n t s during the week ending August 26.- Yields on
corporate Aaa and S t a t e and l o c a l government Aaa bonds d i d not
change.
S t a t e and l o c a l government revenue bond y i e l d s increased
two b a s i s p o i n t s l a s t week, while y i e l d s on both c o r p o r a t e and S t a t e
and l o c a l government Baa bonds r o s e one" b a s i s p o i n t .
Daily f i g u r e s show l i t t l e change i n corporate and Treasury
y i e l d s i n t h e f i r s t t h r e e .days of t h i s week.
.




—2—
Stock' p r i c e s - The SEC index of 26£ common stock p r i c e s
increased $ ok p o i n t s ' l a s t week t o t o t a l 257 M on August 26 i n somewhat heavier t r a d i n g than that of the two preceding weeks. According t o d a i l y indexes, p r i c e s decreased s l i g h t l y on Monday and Tuesday
of t h i s week but more than recovered the l o s s on Wednesday.
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 t h e attached e x h i b i t s .

Business Finance and C a p i t a l Markets S e c t i o n ,
Division of rtesearch and S t a t i s t i c s ,
Board of Governors of the Federal Reserve System.




EXHIBIT A

HIGH-GRADE

BOND YIELDS

W**kly

-j

1952

1953

Corporate
Aaa 1/

1954

U. S. Govt.
long-term 2 /

2.50

1955

State and l o c a l
g o v t . , Aaa 3 /

Spread between
^ U . S . Govt, and
Corporate State and
l o c a l Aaa

(Per cent)

195k - High
Low
1955 - High
Low

3.03
2.91
3.42
2.99
3.09
2.85
3.32
2.91

July 29
August 5
August 12.
August 19
August 26

3.07
3.09
3.10
3.12
3.12

1 9 # - High
Low
1953 -Higfr

(1/4)
(2/15)
(6/19)
(1/9)
(1/8)
U/23)
(8/26)
(1/7)

2.79
2.56
3.15
2.78
2.74
2.1*4
2.94
2.62
2.94
2.9k
2.89
2.89
2.91

(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
2.34
2.05
2.27
2.29
2.34
2.34
2.34

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

.37
.19
.38
.19
.43
.32
.34
.13

1.02
.71
.81
.30
.61
.29
.70
.54

.13
.15
.21
.23
.21

.67
.65
.55
.55
.57

1 / Weekly average of d a i l y f i g u r e s . Average term of bonds included i s 25-26
years.
2 / Weekly average of d a i l y f i g u r e s ; old s e r i e s . Average term to f i r s t c a l l
of bonds included i s 13-14 y e a r s .
3 / Thursday f i g u r e s . Only general o b l i g a t i o n bonds are included; average
term i s 20" y e a r s .
Note.—Highs and lows are f o r i n d i v i d u a l s e r i e s and -may be cti d i f f e r e n t dates
for different series.




EXHIBIT B

L O W E R - G R A D E BOND YIELDS
Weekly

Per cent p e r

~T /
! • v " \ STATE A N D LOCAL G O V T . B a a

1952

Date

1953

Corporate
Baa 1/

1954

S t a t e and
l o c a l govt.
Baa 2 /

1955

State and
l o c a l povt.
rev. 3 /

(Per cent)
1952 - High
1953 - High
Low
1951 - High
1955 - High
J u l y 29
August 5
August 12
August 19
August 26

3.63
3.1*8
3.89
3.50
3.74
3.44
3.58
3.45
3.53
3.55
3.56
3.57
3.58

(1/4)
(5/16)
(9/18)
(1/2)
(1/8)
(12/31)
(8/26)
(1M)

2.98
2.1*8
3.79
2.96
3.32
2.93
3.23
3.02
3.18
3.21
3.21
3.22
3.23

(10/23)
(4/17)
(6/25)
(1/8)
(1/7)
(8/5)
(8/25)
(1/6)

2.69
2.27
3.27
2.71
3.00
2.72
2,95
2.76

(12/19)
(4/25)
(6/26)
(1/2)
(1/1)
(8/13)
(8/26)
(1/7)

2.90
2.90
2.90
2.93
2.95

~~
1/ Weekly average of d a i l y f i g u r e s . Average term of bonds
included i s 25-26 y e a r s .
2 / Thursday f i g u r e s . Only general o b l i g a t i o n bends are
includedj average term i s 20 y e a r s .
"if
Friday f i g u r e s . Average rating of bonds included i s
between Baa and Aj average term i s 20 y e a r s .
Note.—Highs and lows are f o r individual s e r i e s and may
be on d i f f e r e n t dates for d i f f e r e n t s e r i e s .




Stock p r i c e

Common
Trading
volume 2 /
(millions yields 3 /
of s h a r e s ) ( p e r c e n t )

Stock market c u s t a n e r c r e d i t
Gust o n e r s
debit b a l - loans t o
"others" jy
ances V

Total

( M i l l i o n s of d o l l a r s )
i 1952 - High
, 1953 - High

165.3 (12/26)
151.7 (10/2It)
167.1 (1/2)

lhk.0 (0/12)

195k - High

221.it ( 1 2 / 3 1 )

1 9 5 5 • - High

259.9 (7/29)
217.it ( 1 / l i t )

July
August 12
August 19
August 26

156.5 (1/6)

2Wi.5
257.3
253.7

252.0

257.it

'

2.0
0.9
2.5
0.9
3.7
l.it
It . 6
1.5
2.7
2 .It
1.7
1.5
2.0

5.77
5.13
5.75
5.15
5.33
it . 2 0
it.22
3.78.

3.87
3.78

'1,986
1,80b
2,Uit5
2,055
3,W6
2,It#
3,911
3,537

1,332
l,2itl
1,665
l,31it
2,388
1,653
2,73^
2,517

3,871
3,911

2,711
2,73k

'

656
552
780
66U
i,oit8
7it6
1,177
1,018
1,160
1,177
1,171
1,169

n . a . Not a v a i l a b l e .
. _
1 / SEC i n d e x o 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 s , 1939=100; c o n v e r t e d
t o 19lt7-ii9=100 by 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 Hev; York S t o c k Exchange.
3 / Lioody's 2 0 0 ccnmon s t o c k s ; end of month f i g u r e s .
I / End of month f i g u r e s f o r member f i r m s of t h e Mew York S t o c k Exchange which
c a r r y mar ran 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 by U. S . Government o b l i g a t i o n s .
5 / '.Vednesday 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 U. 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 . '.Veekly 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 h s and lovis a r e f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t d a t e s
for different series.




Exhibit D
Corporate and State and Local Government
Security Offerings and Placements
(in millions of dollars)

1953

1955

51*6 '
1*3.6
1,261

51*7
h26
635

623
623
#6

535
312
538

396
Itll
565

390
360
1*26

1*91*
903
697

h91
6£6
8ii2

779
675
1,123

1*27
350
• 61;1

13k
71*8
853

329
61*9
1*31*

e/hOO
e/600
e/^25

909
335
747

1*83
325
753

e/l*60
^235
1/1*00

279
261
61:9

519
259
1*75

591*
1*23
877

1*53
. 108
771*

1,372
2,331*
1,188
.1,891*
6,789

1,176
1,1*12
1,253
1,636
5,1*77

1955
January
February
March
April
May
' June
July
August
September
October
November
December
1st quarter
2nd quarter
3rd quarter
i;th quarter
Year

New c a p i t a l

Corporate
1 195'1*
1

2,21*3
• 2,094
e/l,525

.

1,003
290
601*

577
1*29 l Z
1,1*38 if

1,608
1,995
1,991
1,896
7,1*90

1,912
1,385
2,578 • 1,1*18
1,%% 1 / e/1,095
2,1*1*1* J
8,1*95

State and l o c a l
1 1951*
1

1953

Excluding finance companies 2 /
1 s t quarter
2nd quarter
3rd quar ter
l*th quarter
Year

1,791
1,912
e/l,l50

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

1,669
1,991
1,223
2,31*1*
7,227

e / Estimated.
1 / Includes 602.5 m i l l i o n dollar AT&T debenture i s s u e .
2 / Total new c a p i t a l i s s u e s excluding offerings of s a l e s and personal finance
companies.
Note.—Details may not add t o t o t a l s due to rounding.




Hall;

Exhibit E
Large Public S e c u r i t y Issues f o r Mow Capital
(Other than U , S . Treasury) 1 /
Proceeds of Large I s s u e s Offered
( M i l l i o n s of d o l l a r s }

Corporate

Month

hll
75
361;
h3 3
0
121
1U1
63
750
175
W3
182
101

1%k - July
August
September
October
No ven&er
December
1255 - January
February
March
April
May
July

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

Other 2 /

92
86
455
.388
268
689
3lA
107
337
238
152
h09
278

.

30
35
15

Large Individual I s s u e s Offered August 1 through 26

Issuer

Type 3 /

Coupon .
Amount
( p i l l i o n s Maturity r a t e or
Offering
net i n t e r - y i e l d
of
dollars)
est cost

Rating

CORPORATE
Consumer Power
Goodyear. Tire & Rubber
Western Union Telegraph
G.U.A.C.
American Natural Gas
P a c i f i c T e l . & Tel.
S t . Louis-San Francisco
Railway

Conmon s t k .
Coranon s t k .
Common s t k .
Deb.
Common s t k .
Deb.

16.9
15.6
20.7
200.0
35o7
67.0

1 s t mtg.bds.

19.5

Rev.
G.O.
Rev.
Rev.

14.5
. 7.1
5.8
5.2

1995 .
1958-89
1959-87
19.63-79

1975

3 5/8

3.75

—

1991

3 5/8

3*50

Aa

1980

h

4.05

Baa

3.70
2 =00-3.20
2.20-3.10
2.60-3.05

Ba
Baa
A
A

STATE, AMD LCCAL GOVERM-ENT
. Mobile, Alabama
Fairfax Co., Virginia
S p r i n g f i e l d , Ohio
Amarillo, Texas




3.80
3.18
3.09
3.07

%
H.Ui

E-2

Large Individual. Issues Offered August 1 through 26 (Cont'd)
Issuer

Type 3 /

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

STATE AND LOCAL GOVERNMENT
(Cont'd)
Duval Co., F l o r i d a
Los Angeles, C a l i f .
Chicago Board of
Education, I l l i n o i s

L.L.
G.O.

8.0
12.0

1956-70
1956-75

2.95
2.6U

1.70-2.90
1.50-2.70

A
Aa

G.O.

12.5

1958-75

2.71

2.00-2.85

A .

OTHER
None
1/ Includes corporate and other security offerings of 15 million dollars and
overj State and l o c a l government security offerings of 5 m i l l i o n and over.
2 / Includes foreign government and International Bank for Reconstruction and
Development i s s u e s .
3 / In the case of State and l o c a l government s e c u r i t i e s , G.O. denotes general
obligation; Rev., revenue bonds; G.R., general obligations additionally secured by
f a c i l i t i e s revenues; and, L.L., limited l i a b i l i t y obligations secured by pledge of
designated revenues.
j

»



Q

H.H+

Exhibit F
Forthcoming Large Public Security Offerings for Hex? Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
During month following
date shewn

Date of
computation

c

°

- Aug. 31
Sept. 30
Oct. 29
Nove 30
Dec. 31
1955 - Jan. 31
Feb. 28
Mar , 31
Apr. 29
May 31
June 30
July 29
Aug. 31

w

i ^

331*
31+3
15
9k
18k
16
710
211
1+25
160
67
2+07
222

e

g

: ^ >

300
3%
1+36
661
#7
682
521+
208
116
339
31+1+
100
ieit

h e r

30

.

n

Subsequent t o
date shavn
Corporate
608
1+11+
135
21+6
216
1+22
1,395
• 922
1,11+1
850
830
1,135
920

1,876
2,158
1,957
2,682
2,11+1+
1,961
1,978 .
2,009
1,917
1,861
1,81+5
2,013.
1,971

•
—m

30
30
35

Forthcoming Large Offerings, as of August 26
Issuer

T3?e

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

CORPORATE
-x-CIT financial
Utah Power and Light
•^Tennessee Gas Transmission
Ohio Power
^Columbia Gas •
Public Service Electric and Gas
Public Service Electric and Gas
American Telephone and Telegraph
*Nevr York S t a t e E l e c t r i c and Gas
Southern California Gas
•^Tennessee Gas Transmission
Freedom Insurance Company

Deb.
1st mtg, bds.
1st mtg. PL bds.
1st mtg, bds.
Deb.
Pfd. stock
Deb.
Cony. deb.
1st mtg. bds.
Bonds
Common stk.
Conmon stk,

±00.0
15.0
50.0
17.0

1+0.0

25.0
35.0
.635.0
25.0

1+0.0

16.0
22.0

- September
September 13
September 11+
September 20
September 21
October 1+
October 1+
October 13
October 19
November
November
1955

STATE AMD LOCAL GOVERNMENT
Denver, Colorado
Nueces County, Texas
•K-Yolusia County, F l o r i d a
Essex County, New Jersey




G.O.
G.O.
n.a®
G.O.

5.1+
6.9
8.0 .
8.8

August 30
September 1
September 5
September 8

ID

H.lii

F-2
Forthcoming Large O f f e r i n g s , as of August 26 (Cont'd)
Issuer

STATE AND LOCAL GCVERMNT (Cont'd)
S t a t e of Delaware
Middlesex Co. Sewerage Auth.,"N. J»
B u f f a l o , Near York
Los Angeles, C a l i f o r n i a
Richmond-Petersburg Turnpike Auth.
Chicago Regional Port D i s t . , 111.
^Sedgwick County, Kansas
Texas Turnpike Company
Connecticut Expressway
Inter-American Center Auth., F l a .
Michigan Turnpike Authority
S t a t e of Louisiana
I l l i n o i s Turnpike Authority
C a l i f o r n i a T o l l Bridge Authority
Louisiana Turnpike Commission
C a l i f o r n i a T o l l Bridge Authority
New York S t a t e Thrway Authority
Oklahoma Turnpike A u t h o r i t y
Washington S t a t e T o l l Bridge Auth.

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

Type
• '

' G.O.
Rev.
n.a.
Rev.
Rev.
Rev.
G.O.
Rev.
Rev.
Rev.
Rev.
n.a.
Rev.
Rev.
Rev.
Rev.
G.R.
Rev.
Rev.

-

7c0
25.0
32.8
18.0
67.5
24.0
5.8
130.0
100.0
25.0
186.0
80.0
390.0
•235.0
100.0
13.0
125,0
12*6.0
227.0

September
September
September
September
Sepb ember
Sepb ember
September
October
1955 ..
1955
1955
1955
1955
1955
1955
1955
1955
1955
1956

8
8
13
21

OTHER
None
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 .