H- W September 29, 19$k CAPITAL TMRKET DEVELOPMENTS

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1 Business Finance and Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. Mot for Publication DECONTROLLED AFTER SIX MONTHS ' ' H- W September 29, 19$k CAPITAL TMRKET DEVELOPMENTS Heavy volume of security offerings - The volume, of large corporate, security offerings floated publicly for new capital during the week ending September 2b amounted to 26 million dollarsj the volume of lai*ge State and local government issues was 197 million. Large public issues to be offered this week total 71 million dollars. Bond yields - Yields on outstanding high-grade municipal bonds rose"moderately during the week ending September 2b. Corporate Baa bond yields increased slightly, and thdse on corporate Aaa and U. S..Government obligations did not change. The spread between corporate Aaa and Treasury bond yields was 38 ppints for the sixth consecutive week. * Stock prices rekch new high - The SEC index of 265 common stocks rose to last week, a new high for the series v^ich extends back to The Standard and Poor! s. index of Zt80 common stocks, which is available for a longer period, surpassed the 1929 high for the first time. Prices of industrial stocks have been above the 1929 high for some time, but public utility and railroad stock prices are still well belcw the 1929 levels. - Further details on capital market developments available from exhibits - More detailed information concerning recent capital market developments will be found in the following exhibits which are attached hereto:, A - Bond Yields B -Stock Market ' C - Corporate and State and Local ' Government Security Offerings and Placements D - Large Public Security Issues for New Capital (other than U.- S. Treasury) E - Forthcoming Large Public Security Offerings for New Capital (other than U. S. Treasury) F - Yields on New and Outstanding " Public Utility Bonds, rated Aa and A

2 EXHIBIT A BOND YIELDS CORPORATE Baa PER CENT PER ANNUM 4 RPORATE GOVERNMENT / V V V = ' / HIGH-GRADE MUNICIPAL W. STANDARD AND POOR'S CORP. I UyU I I I I I I I I I I I I I I I I I I I I I I I M J 5 J S V!A1 M J S D 1954 Corporate 1/ : % i 5 = E (Per cent per annum) High High k Low High * * ' Hiph 3.1* H* * *3 195a - High 3.09 "3-71* * *6 2.kk Au~ust 27 j *7 2.1* September 3 i a? * September * September 1? ; * September 2k W / Moody's Investors Service; v.eekly average of daily figure:?/ Federal Reserve; weekly average of daily figures. 3/ Standard and Poor's Corporation; Wednesday figure. Note. Kighs and lovis i for different series. 3 for individual series and may be en different dates

3 STOCK MARKET Millions of- Share VOLUME Stock price index 1/ ( =100) Trading volume 2/ (millions of shares) Comr.cn stock yields 3/ (per cent per annum) Customers 1 balances h/ (nillicnsof dollars) Bank loans to "others"' for purchases of securities 5/ (millions r of dollars) High! It ,297 3ii0 lk ,219 ' High , Low ' 5.13., 1,21: High , 5,75.1,665 ' 327. : m.o 0.9 ' 5.15 l,311i 2# 195L - High ' ,967 U l.u ' t ii.6l. 1,653 = I1.61 1, ; , September illi4 1 September U20 September 2k n.a. n.a. L2f 1/ SEC index of 2 6; common stocks, weekly closing price, 1939=100; c onverted to 19ii7-H9=100 by Federal Reserve.. 2/ Y.'eekly averages of daily trudinn volume on Hew. York Stock Exchange. 3/ l'oody's 200 common stocks; end of month figures. IT/ End 'of month figures for nenbor firms of!'ew York- Stock Exchange;.excludes balances secured by l T. S. Cover rcnent securities.- 5/ Wednesday figures for weekly reporting aenfoer banks in 'lew York and Chicago; excludes loans for purchase cf V. S. Government securities. Cn March L, 1953, the last date on which figure? t'cr all reporting banks were available, Hew York and * Chicago accounted for per cent of?uch.leans. In the p->rt :!ev; York and Chicago loin's have fluctuated nore than total loans. n.a. "!ot available.. ' ;. Mote. Highs and lov.s: are for individual series and ray be on different dates for different series.

4 Exhibit C Corporate and State and Local Government Security Offerings and Placements (In millions.of dollars) January February March April May. June July August September October November. December 1st quarter. 2nd quarter 3rd quarter 4th quarter Year New capital Corporate" State and local 1954, ? e/72> e/t00 e/650 1,643 1,998 e/l, # 1, # ,,.1,436 2/ 1,912 2, U ,237 y ,979!:91%1/ 8:716 1/ e/250 e/250 E/% 1,372,2,335 ^/1A # # ,173 1,410 1,253 1,635 5, ' , , ,072 Excluding finance companies ^ 1st quarter 2nd quarter 3rd quarter 4th quarter Year 1,562 1,931 A ,669 1,991 1,223 2,344 7,227 ' 1,961 2,521 1,877 2,09k 3^52 issue, 2/ Includes 603 million dollar AT&T debenture issue. 3/ Total new capital issues excluding offerings of sales and personal finance companies... e/ Estimated., Mote. Details may not add to totals due to rounding.

5 Exhibit D Large Public Security Issues for New Capital "(other than U. S. Treastiry) 1/ Proceeds of Large Issues Offered (Uillions of dollars) Month, Corporate State'and [local government 1 Other 2/ August September ^ October November December k - January k 119 February March 160, April #7 May June, ' * ' July August Large'Individual Issues Offered from September 1 through Zk Issuer Type 3/ CORPORATE Amount (millions of dollars) j Coupon 1 est-cost Offering yield Rating Southern Bell Telephone and Telegraph Co. Tennessee Gas Transmission American Tel. & Tel. Co. Dayton Power & Light Co. Deb. - Deb. Deb. Istmtg.bds b k 1981; 198k 3 1/8 k 1/k 3 l/k It Aaa. Baa Aa Aa STATE AND LOCAL GOVERNMENT Cook County, Illinqls Los Angeles, California, Dept. of Y/ater &!Pov;er Jersey City Sewerage Authority, New Jersey Louisville and Jefferson Co., Sewer Dist.j Texas Veterans Lan^iBoard G.O ; ' Aa " Rev Aa Rev UO Baa Rev. G.O;. 8, L, U '' 1, Aa' Aa

6 D-2 Large Individual Issues Offered'from September 1 through 2k (Cont'd) Issuer Type 3/ STATE AID LOCAL GOVERNMENT XCont'd) Amount Coupon (millions rate or Offering of Maturity net interest yield dollars) cost Rating Public Housing Authorities Wyandotte School District,.Michigan G.C : A Pittsburgh Public School District, Pennsylvania, G.O A State of South Carolina G.O * Aa State of Connecticut G.O ) Aaa -Detroit, Michigan G.O ,85 A Kansas Turnpike Rev * 3.a 3.10 None OTHER over3 State and local government security offerings of 5 million and oyer. 2/ 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; and, L.Li, limited liability obligations secured by pledge of designated revenues. k/ Bonds maturing not reoffered.

7 Exhibit E Forthcoming Large Public Security Offerings for New Capital (j other than U. S. Treasury) 1/. Expected Proceeds /from Forthcoming Large Issues Date of computation During month following date shovm Corporate ^" a * e ^ Other 2/ ; local govt. - / - Aug. 31 b9q 226 Sept n.a. Oct n.a. Nov. 30 9k8 #7 73 Dec , Jan Feb Mar U Apr May June % July Aug h 300 Subsequent to date shovm Corporate State and Other 2/ local govt. 1,398 1,016 1,129 l,6l6 669 U g l,u6o- 1, ,7# l,o60 1,916 2,789 2,322 1,971 1,52k 1,55<3 1, :0 27 Forthcoming Large Offerings, as of September 2h Issuer CORPORATE Northern States Power Public Service Company.of Colorado Indiana and Michigan Electric Co. Texas Power and Light Co. New York Telephone Co.. National City Bank of New York Kentucky Utilities Laclede Gas. -^Continental Oil Kansas City Power and Light' Long Island Lighting Public Service of Oklahoma &TATE AND LOCAL GOVERNMENT - State of Ohio State of Tennessee Macon County, Illinois Alexandria, Virginia Mississippi River Bridge Auth., La. Kansas City, Missouri' ^Cleveland, Ohio Type Amount Approximate date (millions of dollars) of offering 1st mtg. bonds 20.0 September 28 1st mtg. bonds 20.0 October h 1st mtg. bonds 16.^ October 5 1st mtg. bonds ' October 18 Ref. mtg. bonds; ho.o. October 19 Camion stock "October 22 1st mtg. bonds October 1st mtg. bonds ; 20.0 October Deb October 1st mtg. bonds, / ' $h 1st mtg. bonds ' $H 1st mtg. bonds 20.0 January L.L September 28 G.O.. 5*h September 28 G.O. 7.0, September 29 Rev September Rev. 6^.0 October 5 Rev October 6 Rev October 7

8 E-2 Forthcoming Large Offerings, as of September '2h (Cont'd) 1 ; Issuer * Type STATE AND LOCAL GOVERNMENT (Cont'd) j S t e s s s. - Georgia State Toll Bridge Authority- n.a. 6.7 October 13 Department of Highways, Virginia Rev October li; Milwaukee,. Wisconsin n«,a. 5.0 October 19 Greater Baton Rouge Port Comm., La. n.a October 20 ^Colorado Springs, Colorado * Rev October 20 ".'.'ichita, Kansas. n.a. 6.9 October 26 Florida State Board of Education n.a October -^Southeast Alabama Gas District Rev October ^Philadelphia, Pennsylvania 25.3 October Dallas, Texas November 29 Oklahoma Turnpike Authority 175 oo Fall New Jersey Highway Authority Rev Fall Lansing, Michigan n.a. 6.0 Fall Dade County Port Authority, Fla. Rev k New York.State Power Authority Rev k Allegheny County, Pennsylvania Sanitary Authority Rev. ' k California Toll Bridge Authority Rev k Maryland State Roads Commission n.a* k ITarren, Ohio n.a Springfield, Illinois k State of Massachusetts k Davenport, Iowa ' 1 n.a k New York Thruway Rev. 50,0 195k ^-Indiana Toll Road Commission n.a k Metropolitan "Vater Dist. of So. Cal.. G.O L'os Angeles School aists., Cal >1955 Los Angeles Dept. of Water & Power Rev ,1955 Florida State Turnpike Authority Rev Jersey City Sewerage Auth., N. J. Rev None... OTHER ~~ 1/ Includes corporate and other issues of 15 million dollars and over; State"and local government issues of 5 million and over. " 2/ Includes foreign government and International Bank for Reconstruction and Development issues. n.a.-- Not available. k Included in table for first time.

9 Exhibit F " I yields on Hew and Outstanding Public.Utility. Bonds, Rated Aa and A V Date 1 Actual (per cent) j.ici Aiib,y j.cj-cio Amount above seasoned yields (basis points) Actual (per :cent).xcx XJXg, J JLCJLU.1D - Amount above seasoned yields (basis points) 195)2 average 3.18 U j average 3M ^3 - January i M one February None Karch 3.1* # 23 April L 3 Q8 kl Hay : , 37. June None. i a July * *i.00 : 30 v. August. None None September None October i: November T * December * h- - January U. r ' 2 -V ' February * March * April ' ' -6 ' Hay 5 3 ' 3.00 ' h / June J : -3 2k ' 2f> July lit. 3.13,. -1 August September / r\n1ir *3 A irft'i 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 sane day. * Single observation, not an average.