Full text of H.16 Capital Market Developments : June 1, 1971
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BBJCOUTHOELED AFTER SIX MOUTHS L-S.fl Confidential (F.R.) June 1. 1971 s~i\ CAPITAL MARKET k s- $ •tVtLOPMENTS Capital Markets Section, Division of Research and S t a t i s t i c s , Board of Governors of the Federal R e s e r v e System, Washington, D. C. INDEX 3-5 D e v e l o p m e n t s in the Corporate and Municipal Bond Markets 6-7 Capital Market Y i e l d s 8-13 Capital Market Volume 14-17 Stock Market 18-33 Mortgage Market SYMBOLS: e Estimate p Preliminary r Revised n.a. Not a v a i l a b l e TABLE 1: Yields, Volume and Reception YIELDS MOODY'S SEASONED 1 NEW ISSUE Aaa * WEEK ENDING: 1971 - M a y June 7 14 21 28 June 610 376 441 735 7.43 7.48 7.57 7.66 YIELDS BOND BUYER MOODY'S SEASONED SEASONED 20 Aaa BOND INDEX 7 14 21 28 85 85 93e 99e n.a. 300e 4 WEEK ENDING: 1971 - May 7.88 7.93 8.23 8.06 CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 5.65 5.80 5.70 5.70 4 5.84 5.96 5.96 5.86 MUNICIPAL BOND MARKET VOLUME2 PER CENT SOLD BY END GROSS OF WEEK OFFERINGS 280 550 851 534 280e 84 81 86 78 . n.a. BONDS SCHEDULED WITHIN 28 DAYS 1,505 1,299 966 n.a. n.a. 1 Derived by adjusting to a. Aaa basis, new issues of publicly-offered corporate bonds with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline and foreign companies, and bonds guaranteed by the Federal Government.) 2 Millions of dollars unless otherwise indicated. Note: Sec footnotes to Table 3 TABLE 2: Details on Inventories | 1 DATE * __ OFFERED AMOUNT (MIL. $) 5/25 OFFERED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK \ RATING AND ORIGINAL YIELD CALL PROTECTION ISSUER COUPON 35.0 DATE | RELEXSED May - 8.25 ISSUER AMOUNT INVENTORIES 1 MUNICIPALS BLUE LIST. | IN SYNDICATE DATE 1971 - Apr. B'Way Hale COUPON 8.25 A 10 yrs. ESTIMATED PROPORTION SOLD 85% ORIGINAL INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED YIELD CORPORATES IN SYNDICATE 30 756 197 48 7 14 21 28 666 622 584r 576 125 167 168 199 90 82 33 15 N.C. - No call protection. All figures in millions of dollars. Blue List is daily average for week ended Friday, except for latest week 1 for FRASER which is daily average of three days ended Wednesday. All other figures are as of Friday. Digitized 5 TABLE 3: High Grade Bond Yields DATE NEW CORPORATE Aaa 1 MOODY'S SEASONED -CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS4 8.85 6.90 (12/5) (2/21) 7.84 6.55 (12/26) (1/12) 6.97 5.96 (12/26) d/24) 6.90 4.82 (12/18) (1/28) 1970 - High Low 9.30 7.68 (6/19) (12/18) 8.60 7.48 (7/3) (12/31) 7.55 6.17 (5/29) (12/18) 7.12 5.33 (5/29) (12/11) 1971 - High Low 8.,23 6..76 (5/21) (1/29) 7.66 7.06 (5/28) (2/12) 6.42 5.69 (5/21) (3/23) 5.96 5.00 (5/20) (3/18) - 1969 - High Low 1971 - April May 30 7,.81 7.30 6.11 5.69 7 14 21 28 7,.88 7,.93 8..23 8 .06 7.43 7.48 7.57 7.66 6.25 6.33 6.42 6.29 5.84 5.96 5.96 5.86 1 New corporate issues, with call protection, adjusted (as described in footnote 1 of Table 1) to a Aaa basis. Weekly average of daily figures. Average term of bonds included is22-24 years. Weekly average of daily figures. 3 4 Thursday figures. The average rating of the 20 bonds used in this index falls midway between the four top groups as classified by Moody's Investors Service. Note--Highs and lows are for individual series and may be on different dates for different series. 2 V • :/ 6 TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS ^ STATE AND LOCAL 2 CORPORATE1 PERIOD 1971 1970 1969 i 1971 1970 1969 January February March 3,115 3,000 6,075 2,636 1,802 3,539 2,075 2,045 2,098 1 | ! 2,702 1,833 2,107 1 ,340 1:,214 1:,555 1 ,262 987 538 April May June 3,910e 3,170 3,909 3,389 2,748 2,076 2,530 | l,888e 1,,647 996 1 ,085 = 1 ,801 1:,no 737 July August September 2,768 2,274 3,518 2,478 1,427 2,427 1.,348 1.,359 1.,758 1 ,097 808 559 October November December 3,777 4,182 3,980 1,933 2,375 2,532 1,,924 1.,748 2,,190 1:,280 886 816 7,977 ^ 10,468 8,560 11,939 6,218 7,354 6,332 6,840 4,109 3,728 4,465 5,862 2 ,787 3.,648 2 ,464 2,,982 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 12,190 18,445 27,005 38,944 13,572 19,904 26,744 j 6,642 6,435 7,,837 12.,302 is;164 i?;!f£ Excluding finance companies3 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year 6,170 7,037 1 1 Securities arid Exchange Commission estimates of gross proceeds. 2 ' Investment Bankers Association of America estimates of principal amounts. 3 Total gross proceeds excluding offerings of sales and consumer finance companies. TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH TOTAL I PUBLICLY OFFERED GROSS PROCEEDS BY TYPE OF ISSUE COMMON MEMO; AND ISSUES INCLUDED MFG. PRIVATELY PFD. CONVERTIBLE STOCK FOREIGN PLACED GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER 6,994 5,987 7,827 8,369 1,282 914 1,421 1,516 2,190 1,659 2,690 2,306 135 83 226 84 710 287 737 824 2,445 2,314 3,169 3,794 2,812 2,714 3,406 3,197 2,,162 868 1 ,346 = 1 ,606 3,,048 2,,663 4,,020 3 ,594 3,170 1970 - Apr. 3,909 May 3,389 June 2,768 July 2,274 Aug. Sept. 3,518 Oct. . 3,777 4,181 Nov. 3,979 Dec. 2,022 3,041 1,931 1,831 1,731 2,425 2,390 3,001 2,436 447 399 436 320 205 389 304 283 834 701 468 1,021 617 338 704 1,083 898 709 89 20 26 68 11 \ 4 56 11 159 398 230 82 107 59 121 388 184 165 689 817 939 638 682 994 1,006 1,107 1,056 1,109 600 1,103 843 630 1,241 1,101 1,350 955 62 1,747 353 144 279 445 371 693 282 1,310 744 994 1,143 682 838 1,300 1,033 1,687 1971 - JanJ Feb. Mar. e/Apr. 2,033 2,201 4,135 2,160 594 275 647 450 489 524 1,293 43 3 38 99 168 557 716 661 2,417 676 1,069 1,452 391 683 532 1,332 587 1,675 390 1,390 860 340 872 1970 - II III IV 1971 - I l 10,468 8,560 11,907 12,190 3,115 3,000 6,075 3,910 1,300 Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. Quarterly supplements are available. TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 M a y 3 . thru M a y 3 0 , 1971 x TYPE2 Corporates Otter T a i l Pwr. Co. Northern Ind. Pub. Serv. Co. Midland Enterprises Inc. National Can Corp. G.M.A.C. Wis. Pub. Serv. Corp. Mississippi Pwr. Co. Westinghouse Credit Corp. G e n ' 1 Tel. of S.E. Boston Edison Coy Kansas Gas & Elec. Co. Hartford National Corp. T.W.A. B l a c k and Decker Southern New England Tel. Chrysler Financial Corp. flab i&ofc Public Service Elec. & Gas Co. Monongahela Power Union Tank Car Co. Southwestern Pub. Serv. Co. Conn. Gen'l Mtg. & Realty Invest Consolidated Nat. Gas Co. Gen'l Tel. Calif. Armstrong Cork Co. Gen'l Cigar Co. New England Elec. System Crocker Nat'1 Corp. AMOUNT (MILLIONS OF DOLLARS) 16.0 1st. Mtg. 50.0 1st. Mtg. 15.0 Bds. 20.0 Debs. 200.0 Debs. 25.0 1st Mtg. 15.0 1st. Mtg. Notes(7 yr.) 75.0 25.0 1st. Mtg. 1st. Mtg.. 75.0 35.0 1st. Mtg. S.F. debs. 25.0 Gtd. L o a n 53.6 Certf, 24.5 Com. Stk, 110.0 Debs. Sub. Debs. 90.0 S.F. debs. 50.0 MATURITY COUPON RATE OR NET INTEREST COST 8-3/4 8-1/8 8-7/8 8-3/8 8.00 8-1/4 8-3/8 7.20 8-3/4 8-1/8 8.13 . 8.50 2001 2001 1991 1996 1993 2001 2001 1978 2001 2001 2001 1996 1 OFFERING YIELD MOODY'S RATING 8.60 7.95 8.93 8.42 8.10 8.20. 8.30 7.20 8.79 8.00 8.04 8.50 Baa Aa Baa Baa A A . — Baa Aa — Baa 11.00 11.00 -- -- -- 2008 1986 2001 8.13 7.38 7.75 8.00 7.38 7.75 Aa 1986 Aa 1st. Mtg. 1st. M t g 70.0 20.0 2001 2001 8.38 8.88 8.32 8.70 Aa A . !iti?TrSt 1st. Mtg Debs. Debs. Debs. S.F. debs. Com. Stk. Com. Stk. Conv. Sub debs. 25.0 15.0 75.0 40.0 50.0 75.0 18.4 22.5 60.0 1991 2001 1996 1996 1996 1996 8.45 8.45 6.00 8.38 8.88 8.00 8.45 8.45 6.00 8.35 8.80 8.00 A Aa 1996 5.75 5.75 Aa Baa A TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 Mav 3 :hru Mav 30 AMOUNT (MILLIONS ISSUER TYPE2 OF DOLLARS) Coruorates fcon't) 200.0 Debs. New England Tel. & Tel. Co. Conv. debs . 25.0 Melville Shoe Corp. 50.0 1st. Mtg Northern States Pwr. Co. 200.0 Debs. Texaco Inc. 50.0 Chase Manhattan Mtg. & Realty Trst Sr. Notes 30.0 S.F. debs. Grolier Inc. 60.0 Debs. Stauffer Chemical Co. 35.0 S.F. debs. /Broadway-Hale Stores Inc. MATURITY 2004 1996 2001 2001 *1978 1991 1996 1996 COUPON RATE OR NET INTEREST COST 8.20 4.88 8.25 7.75 7.88 9.50 8.13 8.25 OFFERING YIELD 8.20 4.88 8.18 7.75 7.88 9.50 8.22 8.25 MOODY1S RATING Aaa Baa Aa Aaa — Baa . — A TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury)' ISSUER State\ and Local Van Dyke Pub. Sch. Dist. , Mich. Mass. Health & Ed. Fac. Auth. Detroit, Mich. Wash. Suburban Sanitary Dist. Md *St. Clair Co. Bldg. Comm. 111. Sacramento, Calif. Municipal Utility Dist. Erie Co. Water Authority Puerto Rico Highway Auth. Florida, State of Florida, State of Florida, State of North Shore Sanitary Dist. of Lake Co., 111. Minn-St. Paul Metro Area, Minn. Chicago Park, 111. Texas Connecticut New York State Finance Agency Nassau Co., N. Y. Austin, Texas Austin, Texas Ohio, State of West Virginia, State of D a d e Co Port Auth., Fla. D a d e Co. Port Auth. Fla King C o . , Wash. New Jersey Turnpike Fairfax Co., Va. New Housing Authority New Orleans, La. New Orleans, La. New Orleans, La. TYPE 2 AMOUNT (MILLIONS OF DOLLARS) 10 May 3. thru May 30, 1971 MATURITY COUPON RATE OR NET INTEREST COST MOODY'S RATING 6.05 3.25-6.40 4.00-5.75 3.50-7.40 3.20-6.15 4.00-6.40 1972-2001 1972-2001 1995 1974-88 2008 6. 11 6.12 6.74 5. 93 5. 93 5. 93 3.50-5.70 3.25-6.30 3.60-6.60 5.71 3.50-5.40 6.02 Aa A 27.0 14.0 12.0 30.0 100.0 156.0 1974-88 1973-1990 1972-81 1979-87&98 1972-91 1972-2001 7. 76 5.13 4..67 4,.50 5,.05 6,.62 3.75-6.00 3.20-5.90 3.20-5.00 4.40-5.00 3.10-5.60 3.50-6.75 A Aa A-l Aaa Aaa A 48.0 6.0 6.6 75.0 . 45.0 3.5 21.3 10.4 125.0 30.0 196.9 4.0 1.8 14.0 1972-2000 1971-96 1972-96 1972-91 1972-96 1975-81 1998 1973-2011 1975 1972-1993 1971-2011 1972-90 1973-91 1972-95 5,.69 3.25-6.30 2.80-5.70 3.00-6.20 3.20-5.50 3.40-6.40 5.75-7,00 8.00 3.75-6.75 4.63 3.50-6.50 2.90-5.90 3.10-5.90 3.55-6.10 3.20-6.50 A Aa Aa Aaa A-l Baa Baa A G.O. Rev. G.O. G.O. G.O. 13.5 12.0 11.5 20.0 10.0 Rev. Rev. Rev. Rev. Rev. Rev. 40.0 11.8 60.0 12.5 13.9 44.1 G.O. Rev. G.O. G.O. G.O. G.O. G.O. Rev. Rev. G.O. G.O. Rev. Rev. G.O. Rev. G.O. Bds. 1 Rev. Rev. |Rev. 1972-2000 1972-1981 1972-1986 1972-2001 -- 6.25 5. 61 6.44 OFFERING YIELD •- 5,.17 5 .50 8 .06 8 .06 6 .58 4 .63 5 .98 5 .74 5 .52 5 .78 . 5.81 — — Baa A A — Aa Aa Aa A Aaa Aa A A-l TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 ' ISSUER State and Local Jacksonville Elec. Auth., Fla. Jacksonville Elec. Auth., Fla. Los Angeles Internat'l Airport, Calif. Phoenix Arizona Phoenix, Arizona Lower Col. River Auth., Tex. Penna, State of Providence, R.I. Port of Seattle Wash . New York St. Dorm Auth. New York St. Dorm Auth. Michigan, State of TYPE 2 AMOUNT (MILLIONS OF DOLLARS) 2001 1980-90 5.88 5.88 4. 60-5. 75 4. 60-5. 75 Aa Aa 1973-81 1973-9092 1974-1990 1974-1991 1973-2000 1972-2001 1973-2001 1973-2002 1973-2002 9.08 5.42 5.58 5.62 5.75 5.96 6.39 6.73 6.75 9.08 3.40-6. 10 3.80-6. 10 3.,60-6.01 3..50-6.30 . 3..25-6., . 0 4..00-7.,00 .80 4., 00-6. 4,.00-6..80 A-l A-l A Aa A-l A A A 57.5 1973-87 4.75 3. 40-5. 10 400.0 30.0 30.0 70.0 1973 1981 1978 1997 5.70 7.38 C.00 9.00 5 .70 7 .28 8.10 9 .00 Rev. Rev. 39.2 20.8 Rev. Rev. Rev. Rev. G.O. Rev. G.O. G.O. 28.2 9.0 10.0 60.0 100.0 11.0 29.0 18.1 2.3 G.O. G;O. MATURITY May 3, thru May 30, 1971 COUPON 1 RATE OR ! OFFER - MOODY'S NET INTERII:X RATING EST COST I YIELD \ Other Federal Home Loan Bank Small Business Administration Quebec (Province of) Quebec (Province of) * Bds. Debs. Debs. Debs. • — A A Rights offering. 1 Includes corporate and other security offerings of $15 million and over; State and local security offerings of $10 million and over. 2 In case of State and local government securities, G.O. denotes genera1 obligation; !tev.-Ut., revenue obligations secured only by income from public utilities; Rev. -Q. -lit. , revenue bonds secured only by income from quasi -utilities ; Rev. -S .T . , revenue bonds secured by revenue from specific taxes only; Rev.-Rent.,.revenue bonds secured solely by lease payments. 3 Includes foreign government and International Bank for Reconstruct inn and Development issues and non-quaranteed issues by Federal Agencies. FRASER Digitized for 12 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 ISSUER TYPE Corporates Quaker Oats Co. Debs. Sperry Rand Corp. Debs. Debs. Equimark Corp. Dennison Manufacturing Co. Debs. Debs. Economics Laboratories Inc. 1st. Mtg. ' Kansas City Pwr. & Lt. Co. Debs. Itel Corp. Atlanta Gas Light Co. Bds. Northern Nat. Gas Co. Debs. Debs. Western Elec. Falconbridge Nickel Mines Ltd Debs. Georgia Pwr. Co. 1st. Mtg. Debs. *American Century Mtg. Inv. Lomas & Nettleton Financial Debs. Corp. Chase Manhattan Corp. Conv. Debs. Pub. Serv. Co. of N. Mexico 1st. Mtg. Debs. Equitable Gas Co. Ohio Edison — 1st. Mtg. debs. Genstar Ltd. S.F. debs. Harvey Aluminum Inc. Detroit Edison Co. 1st. Mtg. Debs. United Jersey Banks Bds. Michigan Bell Tel. Co. Debs. Wometco Enterprises Inc. International Multifood Corp. Debs. Bds. Marco Phelps Dodge Corp. Notes(7 yrs.) S.F. debs. Phelps Dodge Corp. 1st. Mtg. Gen'l Waterworks Corp. Com. Stk. Baltimore Gas & Elec. Debs. Guardian Mtge. Investor Debs. Industrial Nucleonics Notes Monumental Corp. Debs. *Interlake Inc. Bds. Beneficial Corp. Bds. Beneficial Corp. Notes Microdot Inc. Central Tel. & Utility Corp. 1st. Mtg. Gen'l Tel. Co. of the S.E. ]Bds. 1st. Mtg. Dayton Pwr. & Lt. Co. Dayton Pwr. & Lt. Co. ]Pref stk. Occidental Petroleum Corp. ]Debs. Republic Nat'1 Bk. of Dallas ]Prom. Notes AMOUNT (MILLIONS OF DOLLARS) 50.0 100.0 15.0 20.0 20.0 27.0 30.0 15.0 60.0 100.0 50.0 100.0 25.0 50.0 200.0 20.0 17.5 60.0 25.0 50.0 100.0 20.0 150.0 15.0 25.0 100.0 50.0 100.0 25.0 75.6 30.0 15.0 20.0 60.0 25.0 50.0 20.0 20.0 40.0 45.0 20.0 100.0 35.0 APPROXIMATE DATE OF OFFERING June 1 June 2 : . June 2 June 2 June 2 June 3 June 8 June 8 June 8 June 8 June 9 June 10 June 10 June June June June June June June June June June June June June June June June June June June June June June June June June June June June June June 10 10 14 15 15 15 16 17 17 21 21 29 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 ISSUER TYPE Corporates (con't) Debs. Jersey Central Pwr. & Lt. Texas Gas Transmission Corp. Debs. Equity Sec. Kentucky Utilities Co. Bds. Southwestern Elec. Pwr. Co. 1st. Mtg. Kentucky Utilities Co. Mass Mutual Life Insurance Co.Com. Stk. Debs. National Can Corp. G.O. Allegheny Co., Pa. Los Angeles Dept. of Wtr. & Pwr. AMOUNT (MILLIONS OF DOLLARS) 21.0 30.0 15.0 25.0 35.0 100.0 20.0 29.7 APPROXIMATE DATE OF OFFERING June June June June June June June July 1 13a TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)' ^ o f K a y 3Q, 1971 ISSUER State and Local Illinois Mukilteo S/D #6, Wash. New Jersey Memphis, Tenn. New York State University of Kentucky *New Madrid, Mo. Alaska Troy, Mich. S/D Port of Oakland, Calif. Coastal Ind. Wtr. Auth. Tex. Georgia Highway Auth. West Virginia Bergen Co., N.J. Ohio, State Louisiana Stadium & Expo. Dist. Louisiana, State of Mecklenburg Co., N.C. San Bernardino, Calif. Redevp. Agency Oakland Co., Mich. Cleveland City Sch. Dist. * 1 2 TYPE Poll. Bds. G.O. G.O. G.O. & Rev. Rev. Rev. Rev. G.O. G.O. Rev. Rev. Ren. -Rev. G.O. G.O. G.O. Rev. G.O. G.O. Bds. G.O. G.O. AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING June June June June June June June 100.0 10.0 75.0 12.0 90.0 63.8 63.0 23.8 24.0 20.0 25.0 20.0 45.0 10.9 40.0 113.0 34.6 10.0 June June June June June June June June June June 13.5 13.3 16.0 June June June 2 3 3 8 8 9 9 — 9 9 9 15 15 16 16 24 29 Included in table for first time. . Includes corporate and other issues of $15 million and over; State and local Government issues of $10 million and over. Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. M STOCK PRICES AND VOLUME STOCK PRICES 1 - TRADING VOLUME 2 ' DATE NYSE INDEX 3 " D J . INDUSTRIALS NYSE AMEX * AMEX 1969 - High Low 50.32 (5/14) 49.31 (7/29) 968.85(5/14) 32.91 (1/3) 16.5 (3/29) 769.93(12/17) 25.02 (7/29) 8.6 (8/29) 8.0 (1/31) 3.6 (11/21) 1970 - High Low 52.36 (1/5) 37.69 (5/26) 842.00(12/29) 27.02 (1/8) 18.5 (12/4) 631.16(5/26) 19.36 (5/27) 7.8 (8/14) 7.1 (1/2) 1.8 (8/14) 1971 - High Low 57.76 (4/28) 950.82(4/28) 830.57(1/4) 49.73(1/4) 26.68 (4/28) 22.1 (2/12) 22.72 (1/4) 14.9 (4/2) 6.7 (2/12) 4.3 (1/8) 1971 - Apr. May 2 9 16 23 30 55.58 56.33 57.06 57.32 57.27 903.04 920.39 940.21 947.79 941.75 26.20 26.41 26.49 26.51 26.47 14.9 19.0 20.6 18.4 20.6 5.0 5.6 5.8 5.1 5.3 7 14 21 28 56.67 56.35 55.59 54.69 936.97 936.06 921.87 26.24 26.15 25.87 17.2 16.0 L4.2r 4.7 4.8 4.1 907.81 25.71 13.2 3.7 NOTES: Figures other than highs and lows are Fridays only. Highs.and lows are for the year and are not necessarily for Fridays. NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange. Volume figures are daily averaged for the entire week, (millions of shares). Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or 27-1/2 hours per week. In recent years, however abbreviated trading to the extent, and over the time periods, shown below: Through: January 3, 19^9 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May 1, 1970 3. 12/31/65 - 50 4. Average dollar value of shares listed. Week 1 15 TABLE 9: Security Credit END OF PERIOD CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 j BANKS 2 ) TOTAL 1971 - Jan. Feb. Mar. Apr. CUSTOMERS1 NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY BROKERS AND FREE CREDIT DEALERS 3 BALANCES " Outstanding: Apr. May June July Aug. Sept. Oct. Nov. Dec. r" 4,360 4,160 3,860 3,800 3,810 3,920 4,010 4,010 4,030 2 ,330 2 ,290 2 ,290 2 ,290 2 ,300 2 ,330 2 ,270 2 ,320 2 ,330 6,690 6,450 6,150 6,090 6,110 6,250 6,280 6,330 6,360 4,000 4,090 4,300 4,530 2 ,300 2,,330 2,,360 2,340 6,300 6,420 6,660 6,870 Change in Outstanding: Apr. May June July Aug. Sept. Oct. Nov. Dec. -160 -200 -300 - 60 10 110 90 1971 - Jan. Feb. Mar. Apr—^ (4) (4) (4) (4) (4) 2,248 2,222 2,009 (5)2,180 2,083 2,236 2,163 2,197 2,286 (4) (4) (4) (4) 2,452 2,743 2,798 2,660 5,985 5,433 5,281 (4) 3,724 3,211 3,272 - (4) (4) (4) (4) (4) (4) u ( 4 ) / (4) (4) (4) . 20 10 30 • 60 50 10 -200 -240 -300 - 60 20 140 30 50 30 - 30 90 210 230 • 30 30 30 20 - 60 120 240 210 —— •40 • 40 — — -368 -552 -152 — — — — -— — -193 - 26 -213 171 97 153 - 73 34 89 166 291 55 -138 -188 -513 - 61 ^ — — -- Margin debt, as reported by the New York Stock Exchange. until March 1968 included loans secured by U.S. governments, the amount of such loans included is thought to have been small. "Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments." The difference between customers' net debit balances and customers'net free credit balances, this figure represents the net credit extended by brokers and dealers to the nonfinancial public. NOTE: With the exception of bank loan data, figures are supplied by the New York Stock Exchange and are end of month data. Bank loans are for weekly reporting large commercial banks. Broker data includes loans for regulated securities; bank data includes loans for the purpose of purchasing or carrying any security, whether regulated or not. TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE 1968 1969 1970 1970 - Feb. Mar. Apr. 1971 - Feb. Mar.g/ Apr.&/ SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS NET REGULAR DEPOSITS 3 SHARE CAPITAL NET NEW ANNUAL ANNUAL NEW 2 MONEY NET GROWTH GROWTH MONEY2 NET 1 1 FLOW RATE RATE FLOW Not Seasonally Adjusted 7,432 6.0 2,738 3.2 4,200 -1,003 11,173 8.2 5,295 4,203 2,549 4,466 7.0 4.0 6.7 1,143 -763 936 246 510 6 -- 160 -89 -136 205 1,655 207 __ 907 1,604 775 —— 811 955 625 2,444 4,103 2,000 — e. — — — -- TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW NET NEW MONEY 2 11,635 6,749 15,639 6.3 3.4 7.7 3,881 -1,766 6,231 177 537 188 451 2,165 213 —— 337 448 52 2,340 2,626 n.a. 3,35 5,707 2,775 -— 3,151 3,581 n.a. — — Seasonally Adjusted Nov. Dec. 1971 -Jan. Feb. Mar.r/ Apr . e / 1 2 3 540 796 885 939 1,287 9.3 14.5 15.5 15.8 21.2 1,150 18.6 — — -— 1,130 1,740 3,619 2,472 3,376 9.5 14.5 29.8 19.8 26.7 2,997 23.2 — — —— -- 1^670 2,536 4,504 3,411 4', 663 9.4 14.5 25.1 18.5 24.9 4,147 21.7 __ —— —— • m. Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for insured associations only, which represent 96% of industry total resources. Regular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. / TABLE 11: Mortgage Commitments at Selected Thr'ft Institutions DATE Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1971 1 - Jan. Feb. Mar. 1 NET CHANGE OUTSTANDING COMMITMENTS \ ALL ALL MUTUAL SAVINGS TOTAL SAVINGS & SAVINGS & TOTAL BANKS LOAN LOAN (N.Y. STATE) ASSOCIATIONS ASSOCIATIONS (Billions of Dollars, S(:asonally Adjusted) 1 / 7.6 7.8 8.0 8.2 8.6 MUTUAL SAVINGS BANKS (N.YA STATE) 5.2 5.4 5.8 6.1 6.5 2.5 2.4 2.2 2.1 2.0 -.31 -.08 .20 .17 .37 -.24 .21 .34 .26 4 1 -.07 -.13 - . 14 -.09 -.04 9.8 8.9 9.3 9.6 10.1 6.8 7.1 7.5 7.8 8.1 2.0 1.8 1.8 1.8 2.0 .21 .25 .30 .35 .51 .29 .36 .37 .34 .28 -.08 -.11 -.07 .01 .23 10.4 11.2 12.6 8.3 8.9 10.1 2.1 2.3 .25 .80 .20 .60 05 .20 2.5 1.36 1.16 .20 • Based on data from Federal Home Loan Bank Board and Savings Banks Associations of New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. Net changes are derived directly from unrounded Vitstandiiigs levels as reported and after seasonal adjustment by Federal Reserves. Subtotals may not add to totals because of rounding. \ ' ) 18 TABLE 12: Net Change in Mortgage Holdings TOTAL INCLUDING FNMA-GNMA TOTAL 1 FINANCIAL INSTITUTIONS LIFE MUTUAL SAVINGS 6= INSURANCE SAVINGS LOAN COMPANIES BANKS ASSOC. COMMERCIAL BANKS Not Seasonally Adjusted 20,016 23,781 24,189 21,886 18,219 21,273 19,814 16,977 4,639 6,677 5,404 2,526 3,153 2,787 2,682 1,845 7,520 9,350 9,676 10,288 2,907 2,459 2,052 2,318 r1,064 1,099 1,137 1,425 *460 566 608 948 50 50 49 125 38 106 153 160 136 223 317 486 r236 187 89 177 1,327 1,305 100 300 400 500 239 180 346 941 1,162 rl,765 2,134 25 1,542 1,330 1,351 1,485 1,749 2,083 1,817 2,091 2,074 2,187 2,604 1,044 809 844 1,050 1,281 1,575 1,409 1,727 1,754 1,958 2,504 199 140 76 65 81 165 168 228 195 224 312 Seasonally Adjusted 143 186 188 155 201 142 175 245 170 176 256 482 322 385 631 777 1,055 983 1,103 1,189 1,427 1,704 220 161 195 199 222 213 83 151 200 131 232 498 521 507 435 46Q 508 408 364 320 229 100 -33 24 1,261 225 283 -87 1,425 217 445 n.a. rl|774 380 r488 2,034 453 Monthly data for commercial banks based on Federal Reserve estimates benchmarked to Call Report data on real estate loans outstanding as available. Other data derived from mortgage debt outstanding as reported separately by National Assn. of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual savings banks and for Life Insurance companies may differ somewhat from those derived from regular quarterly series because of minor conceptual differences for which adjustments are not made in the monthly series. Altogether, these groups accounted for 87 per cent of the net increase estimated for all holders in 1970. 1,760 1,793 19 TABLE 13: Net Increases in Mortgage Debt Outstanding Billions of dollars, SAAR QUARTER TOTAL RESIDENTIAL 3 1- to 4FAMILY MULTIFAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 8.2 6.0, 1.8 7.3 8.4 1.8 2.2 1966 - II IV 18.6 15.1 10.9 9.1 8.3 7.0 2.6 2.1 5.5 4.1 1967 - I II III IV 15.9 20.7 26.6 27.3 10.3 13.9 19.2 19.8 7.0 10.5 15.3 16.0 3.3 3.4 3.9 3.8 3.9 5.0 4.9 4.8 8.4 2.8 9.4 9.2 10.2 11,1 2.3 2.2 1.8 1.8 6.2 10.4 10.1 2.2 1.5 1.5 2.0 2.3 8.8 1968 - I II III IV 27.7 26.2 26.0 29.6 19.0 18.2 17.7 20.2 15.8 15.0 14.1 16.4 3.1 3.2 3.4 3.8 6.4 5.9 6.5 7.5 1969 - I II III IV 31.3 28.9 26.5 25.1 25.0 21.5 19.3 18.3 18.6 16.8 14.6 13.0 4.4 4.7 tl 5.2 1:1 IS:? 1970 - I II III P IVp 20.3 23.4 28.5 30.3 13.8 16.9 21.0 21.4 8.8 11.5 15.0 15.1 5.0 5.4 6.0 6.3 5.0 5.0 5.5 6.6 9.8 9.8 11.5 12.9 1.8 2.5 2.2 l:i 1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations and extrapolations, where required, estimated mainly by Federal Reserve. 2 May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. 3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family and multifamily mortgage debt combined. 20 TABLE 14: FNMA Weekly "Auction" Results WEEK ENDED COMMITMENTS IN $ MILLIONS IMPLICIT YIELD2(per cent) ACCEPTED TOTAL 1-YEARN TOTAL 90901-YEAR 1 66OFFERED & OVER MONTH & OVER DAY DAY MONTH Jan. 25 44.6 35.5 -- 7.83 7.96 - 8 23.4 23.3 9.9 10.6 25.6 Feb. 12.7 — 7.67 7.67 — Mar. 1 15 29 186.0 193.5 122.5 51.8 74.0 66.9 15.2 17.9 36.7 29.3 41.2 26.3 7.3 14.9 3.9 7.43 7.33 7.32 7.43 7.45 7.44 7.56 7.55 7.54 Apr. 12 26 126.9 687.2 54.5 39.8 9.4 313.9 154.0 126.6 5.4 33.4 7.32 7.43 7.45 7.54 7.53 7.57 236.8 145.8 151.6 44.6 19.7 22.6 7.57 7.95 7.68 7.97 7.74 8.03 May May 10 24 1,168.0 785.7 71.3 84.4 \ Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, Bids accepted by FNMA. are for delivery at the seller's option, and at any time within the specified period. Bids on proposed homes relate to construction not yet started on which mortgages may be delivered only after completion and occupancy. 1 . For "proposed construction" of new homes only. 2 j Average secondary market yield after allowance for commitment fee and required purchase and holding of FNMA stock, assuming prepayment of 15 years for 30-year Government-underwritten mortgages. Yields shown are gross, before deduction of basis points fee paid by investors to servicers. Prior to August 10, 1970 the servicing fee was 50 basis points. 21 TABLE 15: Private Housing Starts and Permits _L STARTS SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE 1970 - Mar. Apr. May June July Aug. Sept. Oct. Nov, ^ D e c . 1971 Jan. Feb.r/ M a r r/ Apr. e/ UNADJUSTED TYP E OF FINANCING VA OTHER 708 1.392 1,224 697 728 1,242 835 1.393 1,603 827 838 1,425 881 1,509 890 1,583 934 1,693 2,054 1,240 684 527 514 558 776 587 627 693 759 814 114.7 128.4 125.0 135.2 ,140.8 128.7 130.9 140.9 126.9 121.4 1,725 946 1,754 985 1,950 1,045 1,903 1,081 779 769 905 822 110.6 102.2 167.2 200.4 25.2 32.4 37.1 40.7 43.4 34.1 34.3 40.4 33.7 63.2 4.8 5.4 5.2 5.1 5.3 5.6 5.3 5.8 5.5 5.7 32.3 4.6 27.3 4.7 33.4 6.9 44.6 8.4 BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE)2 84.7 90.6 80.8 89.4 92.1 87.7 91.3 94.7 87.2 52.5 1,085 1,177 1,309 1,285 1,309 1,378 1,388 1,523 1,487 1,768 72.8 68.4 124.0 147.4 1,635 1,563 1,627 1,618 Total starts are Census estimates including farm for both permit-issuing^ and nou-issuing areas. A dwelling unit is started when excavation begins; all units in an apartment structure are considered started at that time. FHA and VA starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field . office receives the first compliance inspection report, which is made before footings are poured in some cases but normally after the foundations have been completed. Other starts are derived as a residual, although total and FHA and VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages. Building permits before January 1963 are Census estimates for about 10,000 areas identified as having a local building permit system in 1959. Estimates beginning January 1963 are for approximately 12,000 and beginning January 1967 13,000, or all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per month, as well as other differences in timing and coverage. 22 TABLE 16: Mortgage and Bond Yields * FHA MORTGAGES' DATE 30-YEAR CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6.79 6.15 8.75 6.91 1.20 .26 1.08 -.13 8.60 8.30 .10 .74 9.11 7.80 .99 .01 8.50 8.45 8.30 ,47 .45 -<.10 8.63 8.34 7.80 .34 .56 .60 7.95 7.75 7.60 n,,a. 7.24 7.28 7.46 n.a. n.a. -.14, 7.52 6.78 8.62 7.99 7.40 6.75 8.35 7.55 1970 - High Low 9.29 8.40 1970 - Oct. Nov. Dec. 8.97 8.90 8.40 1971 - Jan. Feb. Mar. -- 7.32 NEW Aaa CORPORATE BONDS 4 . 02 .27 .13 .40 1968 - High Low 1969 - High Low — SPREAD BETWEEN YIELDS ON CONV. & FHA MORTGAGES • -, * &# 28 l Neither mortgage nor bond yields include allowance for servicing costs which are much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the table. 2 Based on FHA-field-office opinions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Data shown are for 36-year mortgages with minimum downpayments, and weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 15 years for 30-year mortgages. Dashed lines indicate periods of adjustment to changes in contractual interest rates. 3 Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities. 4 See note for Table 1. TABLE 17: Conventional Mortgage Terms NEW HOMES CON- FEES & TRACT CHARGES EFFEC- MATURITY RATE (PER (YEARS) TIVE (PER CENT) RATE CENT) 2 ' 3 DATE LOAN/ PRICE LOAN RATIO AMT. (PER ($000) CENT) 4 1 EXISTING HOMES CONFEES & LOAN/ TRACT CHARGES EFFEC- MATU- PRICE (PER RATE TIVE RITY RATIO CENT) RATE (PER (YEARS) (PER CENT) CENT) 2 3 ] LOAN AMT. ($000) 4 1970 8 .29 8 .24 8 .28 8 .31 8,.32 8,.35 8,.31 8..33 8.,26 8.,20 1.11 1.02 0.98 0.99 1.01 0.98 1.03 1.05 0.99 1.07 8 .47 8 .41 8 .45 8 .48 8 .49 8,.52 8..48 8..51 8..43 8.,38 25 .0 2 4 .8 25,.3 25,.1 25,.1 24..8 25.,2. 25.,1 25.,3 25. 8 71 .1 71 .3 71 .7 71,.3 71,.5 71,.6 72,.7 72..4 72.il 73. 8 25.1 24.5 25.3 25.6 24.9 25.5 25.3 24.8 25.2 25.8 8 .26 8 .19 8 .18 8 .19 8,.21 8,.25 8,.27 8..20 8..18 8.,12 0.98 0.90 0.94 0.98 0.95 0.89 0.88 0.88 0.85 0.85 8 .43 8 .34 8.34 8 .36 8.37 8,.41 8 .42 8,.35 8..32 8..26 22 .6 22,.7 22 .8 23,.0 23,.1 23..1 22,.8 22..8 22..7 23. 3 70.4 70.2 70.3 71.5 71.5 71.5 71.7 71.5 71.5 71.9 20.6 20.4 21.1 21.5 21.7 21.4 21.0 20.5 21.1 21.7 1971 ^Jan. 8. 03 Feb 7. 7 4 Mar.r/ 7. 52 0.92 1.00 0.83 8. 18 7. 91 7. 66 25. 8 26. 2 25. 9 73. 3 73. 9 73. 7 26.4 26.2 26.0 7. 9 4 7. 67 7.,47 0.82 0.79 0.77 8.,08 7. 80 7.,60 23. 5 24.0 24. 1 72.5 73.1 73.5 22.0 22.5 23.0 Apr. 2./ 7.,36 0.74 7,.48 26. 4 73. 7 26.5 .35 1. 0.74 7. 47 24.,1 73.5 23.0 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. l. - Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristies of conventional first mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single family homes. Data exelude loans for refinancing, reconditioning or modernization; construction loans to home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted opinions of field-office directors of the Federal Housing Administration, are available somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case of new home mortgage r a t e s — i n Table 16. Fees and charges—expressed as a percentage of the principal mortgage amount--include loan commissions, fees, discounts, and other charges which provide added income to the lender and are paid by the borrower. They exclude any closing costs related solely to transfer of property ownership. 3 Includes fees & charges amortized over a 10 year period in addition to the contract interest rate. 4 Derived by FRB. • ' 1 i : • : j I —i | | | | y § § | i ' 2 ; & $ || • .? | | I ;
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