Not for Publication " " ~ DEOOHTSOIXH) AJTKR SIX Moras. H.iU April 13, 19# CAPITAL MARKET DEVELOPMENTS

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1 Not for Publication " " ~ DEOOHTSOIXH) AJTKR SIX Moras H.iU April 13, 19# CAPITAL MARKET DEVELOPMENTS Moderate volume of security offerings last week - The volume of proceeds from, large public issues for new capital was 8I4. million dollars for corporations and'18 million for State and local governments during the week ended April 8. Large issues scheduled for flotation this week total 193 million dollars and include a 112 million offering of Public Housing Authorities bonds. Bond yields - Yields on U. S. Government long-term bonds rose four basis points during the week ending April 8, and remained steady during the first part of this week as indicated by daily figures. State and local government Aaa yields rose slightly, and corporate Aaa yields remained unchanged last week. No change occurred in the yields of the lower-grade bonds As indicated in Exhibit G, the spread between yields on newly-offered 30-year first mortgage electric power bonds with A ratings and yields on similarly rated outstanding bonds of somewhat shorter maturity increased slightly. On April 6, the newly-offered yield was 17 basis points above the seasoned yields. During 19$k yields on newly-offered bonds of this type were generally below cutstanding yields. Stock prices - The SEC index of 26 common stocks rose slightly last week in the smallest trading volume of the year. According to daily indexes, stock prices rose on April 12 to slightly above the high for the year which had been reached March U. 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 - High-Grade Bond Yields B -Lower-Grade Bond Yields C - Stock Market D - Corporate and State and Local Government Security Offerings and Placements E - Large Public Security Issues for New Capital (Other than U. S. Treasury) F - Forthcoming Large Public Security Offerings for New Capital (Other than U. S. Treasury) G - Yields on New and Outstanding Electric Power Bonds, Rated Aa and A Business Finance and Capital Markets Section, Division of Research and Statistics, -Board of Governors of the Federal Reserve System.

2 HIGH - GRADE BOND YIELDS Weekly Per cent per annum CORPORATE Am Meedy U.S. GOVERNMENT STATE AND LOCAL GOVERNMENT Aee M J - S D M 1 S D M J S D M J S D Bate, High High Low 195k - Hinh Low High Low March It March 11 March 18 March 25 April 1 April 8 Corporate Aaa 1/ 3.03 (1/U) 2.91 (2/15) 3-U2 (6/19) 2.99 (1/9) 3.09 (1/8) 2.05 (k/23) 3.01 (3/11) ' 2.91 (1/7) Oli U. S. Govt, long-term 2/ State and local govt., Aaa 3/ (Per cent) Spread between U. S. Govt, and Corporate State and Aaa local Aaa 2.79 (12/27) 2.00 (10/23) (5/17) 1.65 (5/1) (6/6) 2.73 (6/25).38.8k 2.78 (12/26) 1.98 (1/8) k (1/9) 2.21 (6/10) hk (8/7) 1.90 (9/2) (k/8) 2.11 (2/10).3k (1/7) 2.06 (1/6).2k 5k k ? k.68 1/ Vfeekly average of daily figures. Average term of bonds included is years. 2/ Weekly average of daily figures. Old series. Average term tc first call of bonds included is 13-Ik years. 3/ Thursday figures. Only general obligation bonds are included; average term is 20 years. Note.--Highs and lows are for individual series and may be on different dates for different series.

3 Note. Highs and lows are for individual series and may be on different dates for different series. EXHIBIT 6 LOWH-GBADE BOND YIELDS Weekly Per cent per ann.um Date Corporate Baa 1/ State and local govt. Baa 2/ State and local govt, rev. 3/ (Per cent) 3.63 (1/U) 3.18 (.1/16) 3.89 (9/18) 3.5:0 (1/2) 3M9 (3/18) 3'h5 (1/lii) 2.98 (10/23) -2.I18 (V17) 3.79 (6/25) 2.96 (1/8) 3.32 (1/7) 2.93 (8/5) 3.08 (ii/7) 3.02 (1/6) 2.69 (12/19) 2.27 (u/25) 3.27 (6/26) 2.71 (1/2) 3.00 (1/1) 2.72 (8/13) 2.80 (U/ (1/7) * W 3.U b / Weekly average of daily figures. Average term of bonds included is years. 2/ Thursday figures. Only general obligation bonds are included; their average term is 20 years. 3/ Friday figures. Average rating of bonds included is between Baa and A; average term is 20 years.

4 STOCK MARKET EXHIBITC Stock price Trading volume 2/ (millions of shares) Common yields 3/ (per cent) Stock nartcet credit Custoners' Bank Total ' debit bal- loans to ances V "others" 5/ (Millions of dollars) High (12/26) ,986 1,332 #6 Lew (10/21*) ,80k 1,21* Hiph (1/2) ,1*1*5 1, M.0 (9/18) 0.9 ' ,055 1,3H 661* 195u - Hirh 221.lt (12/31) ,1*36 2,388 l,0l» (1/6) 1.1* It.20 2,lt05 1,653 71* Hirh (3/10 h.6 It.22 3,61*3 2,590 1,080 Low 217.1* (1/1L) * It.21 3,537 2,517 1,018 ' February It.21 3,61*3 2,590 1,053 March *.21 1,080 March ,073. April ,080 April It rnk. n.a. n.a. n.a. 1/ SEC index of 26? comon weekly clos inf prices, ; converted to 19H7-Ii9*100 by Federal Reserv e. The conversion factor is / Averages of daily trading volume on the t.'e-.y York Stock Exchange. 5/ Moody's 200 cannon stocks; end of month figures. IT/ End of month figures for member firms of the New York Stock Exchange which carry"margin accounts; excludes money borrowed for carrying U. S. Government oblirations. 5/ 'Wednesday figures for weekly reporting member banks. Excludes all loans on U. S. Governments for 195*2; since 1953 only loans secured by Governments at banks in Mew York and Chicaeo are excluded. Y / e e k l y reporting banks account for about 72 per cent of leans to others. ", n.a. Not available. x' Mote. Highs and lows are for individual series and may be on different dates for different series.

5 January February -March: April May June July August September October November December 1st quarter 2nd quarter 3rd quarter Uth quarter Year 1st quarter 2nd quarter 3rd quarter Uth quarter Year Exhibit D Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) New capital Corporate State and local iy» 1 i 1^ U 1953 e/u86 e/350 2./l,220 5UU U39 < 660 e/550 U U , e/2,0# 1,6U3 1,998 2,021 1,899 7,561 ' ,123 U U29, 1,U38V 1,912 " 2,578 2 & / d,u95 Excluding finance companies 2/ 2A, 655 1,562. 1,931 l,9ul 1,795 7,229 1,669 ' 1,991 1,223. 2,3UU 7,227 e/310 e/5u0 e/u Ull 565 ' 73U 7U U9 59U U /1,385 1,372. 2,33U 1,188 1,89U 6, U U9 U3U U75 U53 U08 77U 1,176 1,U12 1,253 1,636 5,U77 1 / i nm lirioe AH") Q mi Hi 1 1 A TP-T KAW + 1 l-.-la 2/ Total new capital issues excluding offerings of sales and personal finance companies. e/ Estimated. Note. Details may not add to totals due to rounding.

6 H.lh Exhibit E Large Public Security Issues for New Capital (Other than U.S. Treasury) 1/ Proceeds of Large Issues Offered (Millions. of dollars) Month Corporate State and local government - Other 2/ 195b - March 160" April May 32U 557. June ] July August ' September 335 1*55 -October to 388 November December 9h January i ia 3kl 35 February March Large Individual Issues Offered April 1 to Issuer Type 3/ CORPORATE National Gypsum General Dynamics Corp. Tennessee Gas Transmission STATE AND LOCAL GOVERNMENT San Francisco, California Detroit, Michigan None OTHER Common stk Conv. deb. ItO.O Deb G.O. G.O. Amount Coupon (millions rate or of Maturity net inter- Offering yield Rating dollars) est cost ll*k :3 1/2 h Aa A

7 H.lii E-2 2/ Includes corporate and other security offerings of 15 million dollars and over; State and local government security offerings of 5 million and over. 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.L., limited liability obligations secured by pledge of designated revenues.

8 H.lli Exhibit F Forthcoming large Public Security.Offerings for New Capital (Other than U. S. Treasury) 1/ Expected Proceeds from Forthcoming Large Issues "Date of computation 195k - Mar. 31 Apr. 30 May 28 June 30 July 30 Aug. 31 Sept. 30 Oct. 29 Nov. 30 Dec # - Jan. 31 Feb. 28 Mar. 31 Dm- ing month fo Hewing. date shown Corporate State and Other 2/ local govt. 20k k 3k3 15 9k 18k % 5: k $2k Subsequent to date shown Corporate State and local govt. Other 3# 2,789 6k 7 2, , ,52U 303 1, ,876 klh 2, , i;6 2, i 22 2,lkk 1, ,395 1, ,009 Forthcoming Large Offerings, as oi r April 8 Issuer CORPORATE Type Amount (millions Approximate date of dollars) of offering Southern California Gas Co. Pacific Northwest Pipeline Fruehauf Trailer Co. Philadelphia Electric Transcontinental Gas Pipe Line Pacific Lighting Public Service of Indiana, Inc. -^American Trust Co. *0hio Edison Co. Alabama Power ^Bethlehem Steel Co. Consolidated Natural Gas American Telephone and Telegraph Bonds 1*0.0 April 11 Interim notes 17.2 April 11 Conv. deb April 13 1st & ref. bds April 18 Pfd. stock 15.0 April 27 Common stock 20.0 April 21 Pfd. stock 21.3 Hay 9 Common stock 19.5 May 10 1st mtg. bonds 30.0 May 17. 1st mtg. bonds 15.0 May 2k Conv. deb May- Common stock 2U.U June Conv. deb

9 H.Ik. F-2 Forthcoming Large Offerings, as of April 8 (Cont'd) Issuer STATE AND LOCAL GOVERNMENT Type Amount (millions Approximate date of dollars) of offering Los Angeles, California G.O April 12 Public Housing Authorities April 13 San Diego County, California G.O. 8.1; April 19 "Louisville, Kentucky G.O. 7.5 April 20 Calcasieu Parish, Louisiana G.O. 5.5 April 21 ^Henderson, Kentucky Rev. S.k April 21 TJichita, Kansas n.a. 7.h April 26 State of California n.a April 27 ^Philadelphia, Pennsylvania n.a April 27 Shreeveport, Louisiana n.a April 28 ^Cincinnati, Ohio n.a May 10 Inter-American Center Auth., Fla. Rev Spring Michigan Turnpike Authority Rev Spring State of Louisiana 80.0 Spring Florida State Turnpike Authority Rev Spring Illinois Turnpike Authority Rev Connecticut Expressway Rev Texas Turnpike Authority Rev Sam Houston Turnpike Corp. Rev. Iii Texas Turnpike Company Rev.. 12: Dade County Port Authority, Fla. Rev Springfield, Illinois n.a Allegheny County, Pennsylvania Sanitary Authority Rev California Toll Bridge Authority Rev Jersey City Sewerage Auth., N._ J. Rev North'Carolina Turnpike Authority n.a ^Kingdom of Norway 'OTHER v Bonds ' April 20 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. * Included in table for first time.

10 Exhibit G Yields on New and Outstanding Electric Power Bonds, Rated Aa and A 1/ Date Aa-rated offering yields Actual (per cent) Amount above seasoned yields (basis points) A-ratcd offering yields Actual (per cent) Amount above seasoned yields (basis points) 1952 average average I& average 3.01* $h - January * February * March * April May 3.00 k 3.1h 0 June * a -2 July None * August None September * October November None None December None ,955 - January February 2k March April / 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 cn seasoned issues of similar quality for the same day. Average maturity for the seasoned issues varies from 26 to 28 years. * Single observation, not an average»